>> I AM TAYLOR RIGGS SAN FRANCISCO.
THIS IS "BLOOMBERG TECHNOLOGY." COMING UP, CLICK BATES.
WE HAVE COMPLETE ANALYSIS OF
SEARCH ENGINE EARNINGS INCLUDING COMMENTS FROM THE CFO.
PLUS, JEDI MIND TRICK. AMAZON HAS A
RECORD , BUT SOME WORKERS ARE NOT CELEBRATING.
TO INFINITY AND BEYOND.
RICHARD BRANSON'S VIRGIN GALACTIC COULD BE THE FIRST
SPACE TOURISM BUSINESS TO GO PUBLIC. WE WILL ANALYZE DEMAND.
THE FIRST, TOP STORIES.
ALPHABET EARNINGS. THE REPORT WAS IMPACTED BY HEAVY
INVESTMENT IN GOOGLE'S CLOUD COMPUTING BUSINESS.
GOOGLE HAS BEEN BUILDING DATA CENTERS AND HIRING SALES PEOPLE
FOR ITS CLOUD UNIT
THAT RUNS SERVICES OVER THE INTERNET.
JOINING ME
, OUR CORRESPONDENT FROM BLOOMBERG INTELLIGENCE.
CLOUD IS ALL THE RAGE, POTENTIAL FOR FUTURE GROWTH.
WHAT DID YOU MAKE OF IT?
>> LIKE YOU SAID, THEY ARE SPENDING.
THEY ARE SHOWING RESULTS. WHAT WE ARE SEEING FOR THE NEXT
YEAR, THEY WILL TAKE THE
CENTER FOCUS AND YOU WILL GET SUCCESS
HERE AND THEY HAVE THE CAPACITY TO COMPETE.
YOU WILL SEE THIS BEING A BIGGER DEAL FOR GOOGLE BUT AT A COST.
TAYLOR: WHAT IS YOUR TAKE ON KEEPING UP IN THE CLOUD BUSINESS
?
>> IT WILL TAKE CONTINUED INVESTMENT AS WE JUST SAID, BUT
THERE IS A HUGE POTENTIAL FOR PAYOFF.
TAYLOR: I WANT TO TALK ABOUT THE STATEMENT -- IT LOOKS LIKE
TOPLINE REVENUE IN THE BOTTOM LINE REVENUES -- IS THIS A
REVENUE PROBLEM OR AN EXPENSE PROBLEM?
>> IT'S NOT HER REVENUE PROBLEM. -- IS NOT
A REVENUE PROBLEM. WE SEE SEARCH BECOMING MORE AND
MORE VALUABLE ON MOBILE.
THIS IS OFFSETTING THE 18%. THE WALL, THE VOLUME OF ADS
YOU'RE SEEING. I THINK THE BUSINESS WILL KEEP
HUMMING, BUT THE CLOUD BUSINESSES WHERE THIS COULD BE A
BIGGER DEAL FOR THEM NEXT YEAR. AT SCALE, THEY ARE A VERY
PROFITABLE BUSINESS. GOOGLE HAS THE SCALE.
IF THEY CAN COME OUT AND SHOW THE EXPOSURE -- LOOK, THIS IS
HOW FAST WE ARE GROWING, IT COULD SPUR THE COMPANY.
TAYLOR:
I JUST GOT OFF THE PHONE WITH THE CFO WHO SAID IT WAS THE
MESSY QUARTER. BUT THERE ARE CHANGES IN
ACCOUNTING AND MARK TO MARKET. SOME OF THOSE LOSSES ARE ON THE
INCOME STATEMENT. INCOME STATEMENT.
SHE WOULD NOT SPECIFY THAT UBER AND SLOT FOR THE COMPANIES.
IS THERE A REAL IMPACT TO THE VENTURE CAPITAL ARM OF THE
COMPANY'S THAT LEAD TO THE BOTTOM-LINE RELATIVE TO WHERE
YOU THINK THEY SHOULD THE? -- SHOULD BE?
>> I THINK THAT'S POSSIBLE. MY BIGGEST TAKE AWAY FOR GOOGLE,
WE DO FOCUS ON THE AD SIDE AND THE EXPECTATIONS FOR THEIR AT
REVENUES AND ALTHOUGH CPC'S
ARE DECLINING A BIT, THE INDIVIDUAL
CLICKS ARE WAY UP. I THINK IT'S A REALLY GOOD SIGN
FOR THE BOTTOM LINE. TAYLOR: LAST WEEK WE SAT HERE
AND SAID THE SAME THING ABOUT AMAZON.
BUT THAT AD BUSINESS IS SO STRONG. HOW MATURE ARE THEIR AD
BUSINESSES?
>> MOBILE SEARCH STILL HAS ROOM TO GROW.
AS THE RESULTS SHOW, IT'S A VERY VALUABLE FRANCHISE FOR THE
COMPANY. SO WE EXPECT
THAT MOMENT TO CONTINUE THEIR.
GOOGLE WILL SHOW MORE RESULTS ON THAT FRONT.
YOU'LL SEE THIS DYNAMIC PLAYING OUT WHICH REALLY PLAYS WELL FOR
BOTH COMPANIES. THERE'S ENOUGH ROOM FOR THE
THREE OF THEM TO ENJOY GOOD GROWTH, BUT DISCLOSURE FOR BOTH
COMPANIES ON AMAZON AND POTENTIALLY GOOGLE COULD MAKE
THE DIFFERENCE. TAYLOR: YOU HAD A GOOD NOTE ON
THIS THAT AD REVENUE ACCELERATED INTO 2018, HAVE A LITTLE SLOW
DOWN IN 2019. DID THIS ORDER GIVE YOU ENOUGH?
ARE THERE STILL POCKETS OF WORRIES, LET'S SAY?
>> I THINK AD PRICING IMPROVING IN GENERAL WOULD CONTINUE
BECAUSE THEY ARE MARKET SHARE LEADERS AND THIS IS A MATURE
BUSINESS, BUT THIS IS ENOUGH ROOM ON THE MOBILE SIDE
TO KEEP THIS MOVING AT A HEALTHY CLIP.
>> I ASKED SPECIFICALLY ABOUT YOU TO.
THERE'S ARGUABLY OUTSIDE THE CLOUD, IT COULD BE A BIG FUTURE
GROWTH AREA AND SHE REITERATED THAT SAYING WE ARE EXCITED ABOUT
THE UPSIDE POTENTIAL. ARE YOU GETTING ENOUGH OFF AND
OUTLOOK GOING INTO THE NEXT FEW QUARTERS TO BE CONFIDENT THAT
COULD BE A DRIVER.
>> I DO THINK THAT YOUTUBE WILL
BE A DRIVER. ADVERTISERS ARE VERY KEEN TO
SPEND ON VIDEO PLACEMENTS.
YOUTUBE IS THE NUMBER ONE PLACE TO DO THAT.
>> BUT THERE IS BEEN CONTROVERSY A LOT OF TIMES BY YOU TO.
THERE'S A BROADER CONCERN ABOUT DATA PRIVACY AND MISINFORMATION.
WHAT'S THE DOWNSIDE RISK? >> THE DOWNSIDE RISK IS MORE ON THE
PROFITABILITY SIDE. THE MOMENTUM AND ADVERTISING
WILL CONTINUE TO BE STRONG. BUT BECAUSE OF THE SHARED
INFRASTRUCTURE,
IF YOU LOOK AT THE COST PROFILE INDIVIDUALLY,
SIR WOULD BE'S -- SEARCH WOULD
BE SIGNIFICANTLY MORE PROFITABLE.
I THINK WE WILL KEEP ON THE TOPLINE BUT AS FAR AS DISCLOSURE
IS CONCERNS, WE DO NOT THINK THE NUMBERS WOULD BE DISCLOSED
ANYTIME SOON. CLOUD IS A REAL POTENTIAL.
TAYLOR:
NICOLE, FINALLY, WE KNOW THAT GOOGLE IS ENMESHED, AS ALL
BID -- BIG TECH IS, WITH CHINA. THEY ARE LOOKING FOR GROWTH, NOT
COMMENTING ON THE TRADE FIGHTS OR OPERATIONS IN CHINA.
WHAT DO YOU MAKE OF ANYTHING HEADWIND AS FAR AS IT COMES TO
THE MACRO ENVIRONMENTS IN CHINA AND THE TRADE FIGHTS?
NICOLE: GOOGLE'S BIGGEST HEADWINDS HAVE TO DO WITH
CURRENCY FLUCTUATIONS. AS FAR AS CHINA THEY ARE NOT
SUIT WERE INVESTED. ANY ISSUES WITH CHINA MAY AFFECT
THEM MUCH LESS THAN IN THE U.S. LIKE MANUFACTURING.
TAYLOR: THANK YOU BOTH FOR JOINING. NOW INVESTOR
-- THE FAKE MEAT MAKER BEAT ANALYST EXPECTATIONS
COMING IN AT $92 MILLION ON NET REVENUE AND RAISED THEIR
OUTLOOK. DISTRIBUTION CHANNELS ARE ALSO
KEY TO GROW. BEYOND MEET
AT'S FIRST EARNINGS AFTER GOING PUBLIC.
IF YOU LIKE BLOOMBERG NEWS,
CHECK US OUT ON THE RADIO. YOU CAN LISTEN ON THE BLOOMBERG
APP, BLOOMBERG.COM AND IN THE U.S. ON SIRIUS XM.
THIS IS BLOOMBERG.
TAYLOR: MICROSOFT SHARES ROSE TO A RECORD ON MONDAY AFTER A MAJOR
BIT THREE SECURING
A MILESTONE. THE CONTRACT UNTHINKABLE FOR
MICROSOFT EVEN A YEAR AGO WILL LIKELY COME AND IT COST, LEGAL
AND INTERNAL. GOOGLE IS LEARNING THAT THERE IS
-- BLOOMBERG IS LEARNING THAT THERE WILL BE A CHALLENGE
, CITING PRESIDENT DONALD TRUMP'S
INTERFERENCE IN THE BED PROJECT. AMAZON HAD WIDELY BEEN
CONSIDERED THE FRONT RUNNER. TO DISCUSS, WE'RE JOINED BY
BLOOMBERG'S NAOMI NICK'S WAS BEEN COVERING THIS AND DANA
BASH, WHO COVERS
MICROSOFT. HOW DID MICROSOFT DO THIS?
>>
WE ARE ALL TRYING TO FIGURE OUT TO WHAT EXTENT IT WAS THE
INVOLVEMENT OF PRESIDENT DONALD TRUMP AND TO WHAT EXTENT IT WAS
MICROSOFT'S OWN BID.
THE LAST COUPLE YEARS, MICROSOFT HAS BEEN IMPROVING ITS CLOUD
OFFERINGS. THEY BUILT DATA CENTERS THAT
WERE APPROPRIATE AND OVERALL, THEY HAVE BEEN EXPANDING
GLOBALLY. THEY ALSO HAVE A LONG HISTORY OF
GOVERNMENT CONTRACTS.
MICROSOFT WORKED WITH THE FEDERAL GOVERNMENT FOR A LONG
TIME. THEY GENERALLY BEEN SUCCESSFUL.
TAYLOR:
NOW ME, FROM THE PENTAGON, THE D.C. ANGLE, WAS
THE ADVANTAGE OF AMAZON OVER MICROSOFT?
>> AMAZON'S BEEN A LONGTIME CONTRACTOR WITH THE DOD.
THE DOD USES AMAZON PRODUCTS CURRENTLY IN ITS OFFICE SUITE.
THERE WAS SOME SYNERGY IN TERMS OF MICROSOFT ABILITY --
MICROSOFT' DISABILITY TO SAY, HEY, WE KNOW HOW THE GOVERNMENT
WORKS. AND WE HAVE THE TECHNICAL CAPABILITIES TO MEET THE DEMAND
YOU'RE LOOKING FOR. TAYLOR: NAOMI, YOU BRING UP AN
INTERESTING POINT. IS IT HEALTHY TO HAVE
COMPETITION, AMAZON WITH THE CIA, MICROSOFT WITH THE DOD, OR
IS IT BETTER TO HAVE SYNERGY WITH THE SAME COMPANY ECHO
WHAT'S THE PERSPECTIVE FROM D.C.?
NAOMI: SECURITY OFFICIALS HAVE BEEN QUITE DIVIDED.
IT HAS BEEN QUITE CONTROVERSIAL. PEOPLE IN INDUSTRY OF SAID, WITH
THINK THE DOD ANOTHER PUBLIC-SECTOR AGENCIES SHOULD BE
NOT PUTTING ALL OF THEIR EGGS IN ONE BASKET AND THEY SHOULD BE
USING MULTIPLE CLOUD PROVIDERS IN THE DOD HAS TRIED TO ALLAY
CONCERNS, ONLY RELYING ON THE
JEDI FOR THEIR CLOUD SERVICES AND SAYING WE HAVE SMALLER
CONTRACTS THAT COULD GO TO OTHER COMPANIES AND THEN YOU HAVE
OTHERS WITHIN THE DOD YOU SAY
IT'S REALLY COMPLICATED.
TAYLOR: WHAT DOES AN AMAZON CHALLENGE LOOK LIKE?
>>
THE GAO HAS 100 DAYS TO RESPOND TO IT.
THEY COULD ALSO FILE A LAWSUIT. WILL THAT BE SUCCESSFUL?
OR THERE COULD BE A POSSIBILITY LIKE KNOW ME MENTIONED THAT THEY
WILL -- NAOMI MENTIONED THAT THEY WILL -- GENERALLY
CORPORATE CUSTOMERS HAVE ONE CLOUD THAT
THEY RELY ON. THEY ARE INCREASINGLY MOVING
AWAY FROM JUST THE ONE. THERE ARE PEOPLE IN CONGRESS WHO
WOULD PREFER TO SEE MORE THAN ONE HERE AS WELL. TAYLOR:
NAOMI, TO BE FAIR, THE GOVERNMENT ACCOUNTABILITY
OFFICE, I BELIEVE, CAME OUT AND SAID THIS DEAL AND THE APPROVAL
PROCESS WITHDRAWAL THE APPROPRIATE CONTROLS.
IF AMAZON MORE TO CHALLENGE, THEY ARE CONFIDENT THEY RAISED
THE BAR HIGH ENOUGH. BUT WHAT ELSE ARE THEY SAYING
ABOUT WHAT THE CHALLENGE COULD LOOK LIKE AND IF ALL THE
CONTROLS WERE MET ECHO -- MET? NAOMI: THE GAO PREVIOUSLY RULED
ON A PROTEST FROM ORACLE AND ORACLE ALLEDGE THERE WERE
CONFLICTS OF INTEREST THAT GIVE AMAZON THE EDGE.
THE GAO HAS NOT SAID ANYTHING ABOUT ANY CLAIMS AMAZON MIGHT
MAKE IN REGARD TO THE FAIRNESS
OF THE JEDI CLOUD CONTRACT. WITHIN THE DOD, THERE HAS BEEN
AN INSPECTOR GENERAL LOOKING INTO THE CONTRACT AND THEY
RECENTLY CAME OUT WITH A
STATEMENT THAT SAID, HEY, WE HAVE NOT SEEN ANYTHING THUS FAR,
BUT WE ARE AWAITING THE FINAL RESULTS. TAYLOR:
NOT ONLY WAS MICROSOFT FACING THE PRESSURE, BUT INTERNAL
PRESSURE? WHAT ARE THE EMPLOYEES INTERNALLY PROTESTING?
DINA: AN EMPLOYEE GROUP POSTED AND ANONYMOUS LETTER -- AN
ANONYMOUS LETTER ASKING THE COMPANY NOT TO BID.
THAT SAME THE CONTRACT. THEY ARE UPSET THAT MICROSOFT IS
JUST BETTING ABETTING. THEY THINK THIS AMOUNTS TO
MICROSOFT HELPING THE GOVERNMENT IMPROVE THE LETHALITY OF ITS
WEAPONS SYSTEMS AND THEY DON'T WANT TO BE PART OF THAT.
WHETHER THEY WILL TAKE IT FURTHER THAN TWEETS, WHETHER
THERE IS ANYTHING INTERNALLY, A WALKOUT, SOMETHING LIKE THIS, SO
FAR THE COMPANY AS RESPONDED SAYING, LOOK, WE BELIEVE
WE SHOULD BE SUPPORTING AND SUPPLYING THE U.S. GOVERNMENT
AND U.S. MILITARY. THE COMPANY SAYS THEY RESPECT
THAT SOME EMPLOYEES MAY FEEL DIFFERENTLY AND TOLD THE
EMPLOYEES THAT THEY SHOULD SEEK TO WORK ON OTHER PROJECTS, BUT
WE'RE TALKING ABOUT MICROSOFT'S WEAKEST CLOUD SYSTEM.
THE PENTAGON HAS ANOTHER CONTRACT FOR WHICH THE MICROSOFT
OFFICE CLOUD WILL BE CONSIDERED. IT IS BECOMING HARDER AND HARDER
FOR MICROSOFT TO FIND JOBS THAT ARE NOT TIED INTO THESE
CONTRACTS.
TAYLOR: THANK YOU FOR JOINING. MUSIC TO
YEARS. SPOTIFY'S DEBUT ON PROFITS.
WE HAVE THE STORY NEXT. AND BLOOMBERG TECHNOLOGY IS LIVE
STREAMING ON TWITTER. BE SURE TO FOLLOW OUR GLOBAL
BREAKING NEWS NETWORK ON TICTOC ON TWITTER. THIS IS BLOOMBERG.
TAYLOR: APPLE HAS
ANNOUNCED NOISE CANCELLATION AIR PODS.
THEY WILL BE RELEASED OCTOBER 30.
EACH EARBUD WELL -- WILL SHIP WITH THREE DIFFERENT SIZES OF
YOUR TIPS LIKE AN FROM TWO DIFFERENT EAR SHAPES.
THEY COST 200 $49. -- 240 NINE DOLLARS.
AND GOOGLE HAS REPORTEDLY MADE A TAKEOVER OFFER FOR THE MAKER OF
WEARABLE AND WIRELESS FITNESS DEVICES.
THERE'S NO CERTAINTY A DEAL WILL HAPPEN.
NEITHER GOOGLE NOR FITBIT IS COMMENTING.
AND IN NORTHERN CALIFORNIA, WILDFIRES ARE PLEASING OUT OF
CONTROL. ALMOST 200,000 PEOPLE HAVE
BEEN FORCED TO LEAVE THEIR HOME SPIRIT OF THE SAME TIME, PG&E IS
SLOWLY RESTORING POWER AFTER THE BIGGEST DELIVER IT BLACKOUT
EVER. TWO .7 MILLION PEOPLE HAVE HAD
THEIR ELECTRICITY SHUT OFF. THE BLACKOUT HAS BEEN AIMED AT
KEEPING POWER LIGHTS FROM STARTING MORE FIRES.
IN SHARES OF AT&T ARE RISING. THE COMPANY WON PRAISE
FROM THE ACTIVIST INVESTOR ELLIOTT
MANAGEMENT FOR ITS NEW THREE-YOUR PLAN.
THE TELECOM PROMISE TO DO MUCH OF WHAT ELLIOTT HAD PRESSED FOR.
AND THEN SPOTIFY SHARES MOVING
TOWARD THE IPO IN APRIL. THE COMPANY BEAT ESTIMATES ON
SUBSCRIBER GROWTH THIS QUARTER. SPOTIFY HAS 113 PREMIUM
SUBSCRIBERS.
THEY ARE KEEPING RIVALS APPLE AND AMAZON IN CHECK.
JOINING ME AIR, I WANT TO TALK ABOUT APPLE EARNINGS.
WHAT DID WE LEARN?
>> INTENDS FOCUS ON THE CLOUD -- INTENSE FOCUS ON THE CLOUD.
THIS IS BEEN AN OBSESSION . GOOGLE HAS SEEN 20% REVENUE
INCREASE.
AND THIS IS BEEN ABOUT THE CROP -- ABOUT THE CLOUD.
THAT BUSINESS REALLY
SIGNIFICANTLY INCREASED. THEY HAVE BEEN BROADENING THE
CUSTOMER BASE AND WHAT'S INTERESTING, IF YOU LOOK AT THE
BREAKDOWN, THAT LITTLE BAR REFERS TO OTHER, WHICH INCLUDES
CLOUD, INCLUDES HARDWARE. THEY ARE LOOKING TO THE FUTURE
WHEN IT COMES TO REVENUE. TAYLOR: ALL THINGS OUT OF THAT
AND GOOGLE. THAT WAS AS LOLO -- ED LOLO --
ED LUDLOW. WE WILL HEAR FROM RICHARD
TAYLOR: THIS
IS BLOOMBERG TECHNOLOGY. LET'S FOCUS BACK ON THE THING.
ALPHABET SHARES FELL IN LATE TRADING AFTER REPORTING
THIRD-QUARTER EARNINGS. RESULT LARGELY IMPACTED BY THE
HEAVY INVESTMENT IN GOOGLED'S CLOUD COMPUTING BUSINESS WHICH
IS TRYING TO CATCH UP WITH RIVALS LIKE AMAZON AND
MICROSOFT. LATER THIS WEEK, WE GET NUMBERS
FROM APPLE AND FACEBOOK. THEY REPORT QUARTERLY EARNINGS
ON WEDNESDAY. JOINING ME TO DISCUSS IT ALL IS
ED LUDLOW. WALK ME THROUGHOUT OF THAT AND
GOOGLE. ED: CLOUD IS THE FUTURE AND THEY
ARE MAKING THAT CLEAR. BACK IN Q2, SUNDAR
SAID WE EXPECT THIS TO BE AN $8 BILLION
ANNUAL BUSINESS THAT CAN COMPETE WITH AMAZON'S AWS AND MICROSOFT.
$8 BILLION IS ABOUT A QUARTER OF WHAT A W'S -- EIGHT OF U.S.
MAKES FOR AMAZON BUT THERE IS STILL GROWTH POTENTIAL.
THEY ARE MOVING AWAY FROM THIS CORE ADVERTISING BUSINESS.
TODAY, THAT HAS BEEN AN INCREDIBLE ENGINE FOR GROWTH.
20% GROWTH ON REVENUE. TAYLOR: A CHART WE ARE SHOWING
TO THE AUDIENCE REALLY HIGHLIGHTING THE STRENGTHS THAT
IS THE REVENUE RELATIVE TO EVERYTHING ELSE.
THEY ARE SO DEPENDENT ON AD REVENUE. ED: THEY HAVE BEEN.
QUARTERS OF 20% PLUS ANNUAL GROWTH, THAT MAY BE SLOWING DOWN
A BIT. IN THE FIRST QUARTER, THERE WAS
A MISS ON REVENUE THAT HAD CONCERN ABOUT THE FUTURE OF THE
ADVERTISING BUSINESS. NOW IN THE THIRD QUARTER, THERE
IS SO MUCH TALK ABOUT THE CLOUD, HOW MUCH THEY ARE INVESTING.
THEY PUT A LOT OF MONEY INTO THIS BUSINESS UNIT.
THEY ARE HIRING LIKE CRAZY. FOR THEM, THEY FEEL LIKE THEY
CAN BE COMPETITIVE AGAINST AMAZON AND MICROSOFT.
THERE ARE OTHER AREAS AS WELL. THE PIXEL 3, THIS CHEAPER
HANDSET, COMPARED TO THE REST OF THE MARKET.
TAYLOR: ON BLOOMBERG TECHNOLOGY, WE LIKE TO PUSH IT FORWARD.
WEDNESDAY, APPLE AND ALL EYES ON HOW THE FIRST EARLY NUMBERS FROM
THE IPHONE 11 SALES ARE GOING. ED: THIS QUARTER WILL INCLUDE
THE FIRST SHIPMENTS. THE ESTIMATE IS AROUND 42
MILLION UNITS, A DECREASE FROM THE SAME QUARTER LAST YEAR.
THIS IS THE QUARTER BEFORE HOLIDAY SEASON.
FISCAL FOURTH-QUARTER FOR APPLE, BUT THE COURSE OF THE HOLIDAY
SEASON. APPLE'S RELIANCE ON THE IPHONE
AND HANDSETS, MOVING AWAY FROM THAT TOWARDS THE SERVICES
BUSINESS. THERE HAS BEEN 10 CALLS ON THE
STOCK THIS MONTH ALONE. PART OF THAT IS OPTIMISM ABOUT
TRAFFIC THROUGH APPLE'S U.S. STORES.
THERE COULD BE A SURPRISE EVEN THOUGH THE ESTIMATES ARE LOW.
DEFINITELY KEEP AN EYE ON SERVICES.
THEY BUNGLED AND APPLE TV PLUS WITH THE PURCHASE OF A HANDSET.
IT IS ABOUT AS MUCH GETTING EXISTING USERS TO GET MORE
PRODUCTS AND SERVICES THAN IT IS ABOUT GETTING HANDSETS TO NEW
CUSTOMERS. THAT IS WHERE WE WILL BE
LOOKING. TAYLOR: ED WILL BE FOLLOWING ALL
OF THOSE EARNINGS FOR US. CAN'T THANK YOU ENOUGH.
BILLIONAIRE RICHARD BRANSON'S VIRGIN GALACTIC HOLDINGS BECAME
THE FIRST PUBLICLY TRADED SPACE TOURISM IS THIS ON MONDAY.
THE LISTING WAS CARRIED OUT THROUGH A MERGER WITH A SHELL
INVESTMENT COMPANY THAT WAS ALREADY TRADING.
VIRGIN GALACTIC HAS BEEN RUNNING FOR THE 15 YEARS WITHOUT YET
ACHIEVING A FIRST COMMERCIAL LOSS.
YET, RICHARD BRANSON NCO GEORGE WHITESIDES SHARED THEIR
ENTHUSIASM OF THE PUBLIC TRADING DEBUT ON BLOOMBERG NEWS EARLIER
MONDAY. GEORGE: WE HAVE BEEN FLIGHT
TESTING THESE VEHICLES FOR NOW NEARLY 10 YEARS.
WE BELIEVE WE HAVE AN ARCHITECTURE THAT IS EXTREMELY
RELIABLE AND ALSO HAS ASPECT THAT ARE VERY SUITED TO THE
CUSTOMER EXPERIENCE. FOR EXAMPLE, TAKING OFF FROM A
RUNWAY, LANDING ON A RUNWAY. THOSE ARE THINGS THAT WILL HAVE
A SMOOTH START AND ENDING TO THE CUSTOMER EXPERIENCE.
ON ROCKET MOTORS, THE SIMPLEST, THUS SAFEST ROCKET MOTOR FOR OUR
CLASS OF ROCKETRY. FOR ALL THESE REASONS, WE FEEL
GOOD ABOUT THE SYSTEMS.
>> THE RICHARD: THE ROCKET CAN TURN OFF IN A SECOND'S NOTICE
WHICH IS KEY TO THE SAFETY.
>> COMING BACK TO THE ISSUE -- I UNDERSTAND WHY CELESTIAL TRAVEL
GETS ALL THE BUZZ, BUT SURELY, THERE ARE GOOD COMMERCIAL
APPLICATIONS ON EARTH. HOW MUCH WILL THE COMPANY BE
FOCUSED ON THAT, LIKE HYPERSONIC TRAVEL BETWEEN CITIES?
GEORGE: THE EXCITING THING IS THE COMMERCIAL STAKE IS A
MASSIVE BUSINESS NOW. OVER $375 BILLION ANNUALLY, NOW
GROWING TO AN EXPECTED TOTAL OF $1.5 TRILLION.
THIS IS REALLY THE FIRST TIME PEOPLE CAN INVEST IN A PEER PLAY
COMMERCIAL FLIGHT COMPANY. WE WILL BE FOCUSING ON BUILDING
OUT THIS TERRIFIC HIGH-MARGIN BUSINESS WITH HUMAN SPACE LIKE
OFFERING FROM NORTH AMERICA AND MEXICO.
WE CAN HAVE EVEN BIGGER MARKETS, WHICH IS A $200 BILLION PER
YEAR. WE HAVE A VERY EXCITING NEAR
TERM FUTURE.
>> RICHARD, YOU HAVE BEEN IN THIS RACE FOR A LONG TIME,
OBVIOUSLY COMPETING AGAINST BIG NAMES.
JEFF AND ELON MUSK AMONG THEM. WHAT IS THE FIRST MOVER
ADVANTAGE HERE? RICHARD: I THINK WE HAVE THE
ADVANTAGE OF HAVING ALREADY PUT THESE INTO SPACE.
WE HAVE MADE FIVE NEW ASTRONAUTS.
THERE HAVE NOT BEEN ANY OTHERS MADE ON U.S. SOIL SINCE 2009.
WE HAVE A TESTED AND TRIED SYSTEM THAT IS PERFORMING WELL.
WE ARE BUILDING, USING THE MONEY WE RAISED TODAY, WE CAN BUILD A
LOT MORE SPACESHIPS AND OTHER SHIPS, A LOT MORE ROCKETS.
WE CAN BUILD THE NUMBERS OF PEOPLE ABLE TO GO INTO SPACE.
>> WHAT DOES A TYPICAL CUSTOMER LOOK LIKE?
GEORGE: WE HAVE A WIDE RANGE. THERE ARE SOME FOLKS THAT ARE
REALLY INSPIRED BY THE APOLLO PROGRAM OR SPACE IN GENERAL.
A LOT OF PEOPLE WANT TO DO THE NEXT BIG ADVENTURE.
THERE ARE SOME PEOPLE INTERESTED IN THE PROSPECTIVE CHANGE THEY
WILL GET INTO SPACE. SOME PEOPLE JUST LIKE THE VIRGIN
BRAND AND RICHARD. WE WELCOME THEM ALL.
PEOPLE DO IT FOR DIFFERENT KINDS OF REASONS.
WE THINK THERE IS A TREMENDOUSLY BIG MARKET.
YOU GO TO TALK TO PEOPLE, THREE QUARTERS, EIGHT OUT OF 10 PEOPLE
ACTUALLY WANT TO GO TO SPACE IF THEY CAN AFFORD IT.
>> TALK TO ME ABOUT THAT -- GEORGE: FOR SURE, THE PRICE
POINT INITIALLY IS A FAIR AMOUNT OF MONEY.
THE ONLY OTHER WAY TO GO TO SPACE RIGHT NOW IS TO BUY A
TICKET WITH THE RUSSIANS AND THEY ARE CHARGING ABOUT $85
MILLION. IT IS A DRAMATIC PRICE DECREASE.
LONG-TERM, OUR HOPE IS TO GO DOWN. NEAR TERM, THE PRICE WILL
PROBABLY GO UP A BIT BECAUSE IT IS ACTUALLY UNDERPRICED.
OUR VISION IS TO BRING THE COST DOWN SOME MORE AND MORE PEOPLE
CAN EXPERIENCE THE WONDER AND JOY OF HUMAN SPACEFLIGHT.
>> RICHARD, LAST QUESTION. YOU HAVE BEEN AT THIS GAME FOR A
WHILE. SOMETHING THAT IS GOING ON IN
THE HOME COUNTRY, BREXIT IS DRAGGING ON AND ON.
WHAT DO YOU THINK IS GOING TO HAPPEN FIRST?
GOING INTO SPACE OR THE U.K. SUCCESSFULLY LEAVING THE
EUROPEAN UNION? RICHARD: I VERY MUCH HOPE WE
WILL HAVE TOURISTS IN SPACE, MANY, MANY, MANY YEARS BEFORE WE
EVEN CONSIDER LEAVING THE EUROPEAN UNION.
MY THOUGHTS HAVE BEEN WELL-PUBLICIZED.
I THINK IT IS THE SADDEST THING THAT WILL HAPPEN TO BRITAIN AND
EUROPE. I'M HOPING ANOTHER REFERENDUM
WILL BE ALLOWED BECAUSE ALL THE POLLS SHOW PEOPLE HAVE REALIZED
THEY WERE MISLED AND THEY WILL VOTE OVERWHELMINGLY TO STAY AS
PART OF THE EUROPEAN UNION. TAYLOR: THAT WAS VIRGIN GROUP
FOUNDER RICHARD BRANSON AND VIRGIN GALACTIC CEO GEORGE
WHITESIDES SPEAKING TO ED HAMMOND. YES, BRANSON WAS
THE SPACE SYSTEM. WE ARE CHECKING IN ON ENVOY
USING TESTS TO TRANSFORM COMPANY OFFICES.
NOW THEY WANT TO BE IN ON THE SMART OFFICE REVOLUTION.
THAT'S NEXT. THIS IS BLOOMBERG. ♪
TAYLOR: NOW TO OUR WORK SHIFTING SERIES WHERE WE LOOK AT HOW
TECHNOLOGY IS CHANGING THE NATURE OF WORKFORCES ACROSS THE
GLOBE. OUR NEXT GUEST BEGAN HIS CAREER
AT GOOGLE AT THE RIPE OLD AGE OF 18.
HE THEN WENT TO TWITTER BEFORE DECIDING TO START HIS OWN
COMPANY TO TRY TO TRANSFORM OFFICE SPACES.
SAN FRANCISCO'S BASED ENVOY IS DOING THAT BY USING OFFICE
CHECK-IN SYSTEMS IN 13,000 LOBBIES ACROSS 70 DIFFERENT
COUNTRIES. YOU CAN FIND ITS USE COMPANIES
LIKE AMERICAN EXPRESS, YELP, SPOTIFY, NIKE AND MORE.
FOR MORE, LET'S HEAD TO DETROIT WHERE ENVOY CEO LARRY IS
STANDING BY. GREAT TO HAVE YOU. GIVE ME MORE OF AN UPDATE OF
WHAT YOUR COMPANY IS DOING. LARRY: THANKS SO MUCH.
YEAH, WE ARE TRYING TO MAKE WORKPLACES WORK BETTER.
THAT I TON ERE A TON OF DIFFERENT
MONDAY AND THINGS PEOPLE PUT UP WITH.
WE ARE TRYING TO RETHINK ALL OF THIS.
WE STARTED IN A VERY SIMPLE VISITOR SIGN IN PRODUCT THAT
PEOPLE SAW EVERYWHERE. THEY WERE EXCITED ABOUT IT.
AND THEY BROUGHT IT TO THEIR OWN COMPANY.
THAT IS HOW WE GOT TO 13,000 COMPANIES USING IT TODAY.
PRETTY EXCITED ABOUT THIS AND NOW WE ARE TAKING ON THE REST OF
THE OFFICE. LOTS OF DIFFERENT PRODUCTS, LOTS
OF DIFFERENT AREAS. TAYLOR: I WANT TO TALK ABOUT THE
DIFFERENT OFFICE. WE KNOW YOU HAVE NAILED THE
CHECK-IN PROCESS. WHAT ARE YOU DOING TO MAKE THE
OFFICE A SMART WORKPLACE? LARRY: THINK ABOUT THIS.
IN YOUR HOME, THE KIND OF HAD THIS OLD THERMOSTAT THAT GOT
TRANSFORMED INTO SOMETHING BEAUTIFUL, MUCH LIKE THE NEST
THERMOSTAT. IT JUST KEPT ON GOING.
IT GOT CONNECTED. IT WOULD MEASURE WHEN YOU ARE
HOME, WHEN YOU ARE NOT. ALL THE DIFFERENT THINGS THAT
WOULD MAKE YOUR HOME A REALLY GREAT PLACE IS NOW
INTERCONNECTED. WE WANT TO DO THAT WITH THE
OFFICE. WE WANT PEOPLE TO COME INTO THE
OFFICE. A VISITOR COMES IN, THEY SIGN
IN, THEY GO INTO THE MEETING ROOM. IT WELCOMES THEM.
MAYBE IF YOU ARE IN THE MEETING ROOM, YOU CAN EXTEND THAT TIME
AS WELL. THE FUTURE IS A PLACE WHERE YOU
ARE NOT WORRIED ABOUT THE DAY-TO-DAY, MUNDANE STUFF AND
THAT IS WHAT WE ARE WORKING ON. TAYLOR: WITH ALL OF THIS COMES
HEIGHTENED SCRUTINY OVER DATA. WHAT ARE YOU DOING TO KEEP DATA
SAFE? LARRY: LET'S THINK ABOUT WHERE
SIGN IN WAS BEFORE THIS. PEOPLE WOULD GO INTO SOMEBODY'S
OFFICE AND THERE IS LITERALLY A LOGBOOK THAT WOULD BE ON THAT
FRONT DESK. YOU CAN JESSE EVERYBODY BEFORE
YOU. OUR COMPANY, WHAT YOU LITERALLY
DO IS TRYING TO BRING PEOPLE AWAY FROM THAT.
WE ARE TRYING TO MAKE IT BETTER SO NOW IT IS ON AN IPAD.
YOU WOULD SIGN IN. IT IS ONE PERSON AT A TIME.
THAT WAY YOU DON'T SEE EVERYBODY ELSE'S INFORMATION SUCH AS
DRIVER LICENSE INFO. YOU BEING IN A FACILITY, YOU
HAVE ACCESS TO ALL OF YOUR FACILITIES AROUND THE WORLD.
IF YOU HAVE 100 OFFICES, YOU CAN SEE SIGN IN INFORMATION FROM 100
DIFFERENT OFFICES YOUR COMPANY WOULD OWN.
A VERY GOOD WAY TO PROVIDE POWER FOR BIGGER ENTERPRISES.
THAT IS JUST THE ONE PRODUCT. WHEN YOU THINK ABOUT EVERYTHING
TOGETHER, THAT ADDED CONVENIENCE AND POWER BRINGS A LOT OF THINGS
YOU COULD DO. TAYLOR: A FEW WEEKS AGO, I
INTERVIEWED A GENTLEMAN AND HE HAD AND ALL REMOTE WORKFORCE.
HOW MUCH OF A HEADWIND IS THAT TO YOUR BUSINESS AS WE
INCREASINGLY MOVE TO MOVE MORE REMOTE? LARRY: GREAT QUESTION.
GENERALLY, PEOPLE WILL WANT TO SEE AND WORK WITH OTHER PEOPLE.
WE HAVE WORKPLACES BECAUSE IS THAT A LOT -- IT IS A LOT EASIER
TO COLLABORATE. NOT EVERY JOB AND NOT ALL THE
TIME, THAT IS TRUE. EVEN NOW, DATA
SHOWING 3% OR 4% OF PEOPLE WORK FROM HOME.
SO, IT IS STILL A PRETTY SMALL PERCENT.
I DON'T SEE THAT CHANGE ANYTIME SOON BECAUSE INHERENTLY, PEOPLE
WANT TO BE WITH PEOPLE. WE ARE GOING TO MAKE THAT AREA
EVEN BETTER FOR THEM. TAYLOR: LARRY GADEA, CEO OF
ENVOY. THANK YOU. STILL AHEAD, FACEBOOK FALLOUT.
EMPLOYEES OF THE SOCIAL NETWORK ARE NOT HAPPY ABOUT FACEBOOK'S
DECISION TO LET POLITICIANS LIE ON THE SOCIAL NETWORK.
THAT'S NEXT.
TAYLOR: THE PRICE OF BITCOIN FLIRTED WITH THE 10,000 MARK
OVER THE WEEKEND. IT MIGHT HAVE CHINA TO THANK FOR
THAT. THIS COMES AFTER THE CHINESE
PRESIDENT CALLED TO KEEP CHINA "VERY FOREFRONT OF BLOCKCHAIN
TECHNOLOGY" LAST WEEK. A SENIOR FINANCIAL OFFICIAL
CALLED FOR "SPECIAL ATTENTION TO BE PAID TO BLOCKCHAIN."
TO DISCUSS THAT AND HELP US KICK OFF SAN FRANCISCO BLOCKCHAIN
WEEK, THE CTO OF A BLOCKCHAIN ACCELERATOR AND ECOSYSTEM.
YOU ARE IN THE ACCELERATOR, IN THE MIDST OF IT.
WHAT I LOVE IS YOU TALK ABOUT HOW THE CRYPTO WORLD RIGHT NOW,
THE FUNDRAISING ENVIRONMENT IS BROKEN. WHY?
GUEST: WE THINK A LOT OF PROJECTS WERE ABLE TO RAISE
MONEY VERY EASILY AND THE INCENTIVES WERE NOT CORRECT FOR
THEM TO DELIVER ON THOSE. LIKE, PROJECTS NEEDED SOMETHING
BEYOND JUST INVESTMENT. THEY NEEDED EXTRA HELP FROM
THEIR INVESTORS AND SUPPORT TO ACTUALLY PUSH THEM TO DELIVER A
PRODUCT. TAYLOR: ANOTHER THING THAT WAS
REALLY INTERESTING, YOU SAID ANY START UP COULD SUCCEED IF IT IS
GIVEN THE RIGHT TOOLS. A BACKER THAT CAN SEE THE
PROJECT THROUGH. HOW MUCH OF THAT SHOULD IT BE?
NOT EVERY STARTUP SHOULD BE ACCESSIBLE.
WHY DO YOU THINK A BACKER COULD COME IN AND SEE A COMPANY
THROUGH, THAT THAT ALONE WOULD HELP IT BE SUCCESSFUL?
GALEN: WE THINK OF A STARTUP HAS A REALLY STRONG IDEA BUT IS
MISSING A FEW OF THE THINGS TO GET INTO THE NEXT PHASE, GET THE
PRODUCT TO MARKET OR GET IT BUILT, THAT IS SOMEWHERE WHERE
IN INVESTOR OR TEAM CAN HELP THEM OUT AND PUSH THEM TO THAT
PHASE. TAYLOR: IN THE INTRODUCTION, WE
TALKED ABOUT HOW VOLATILE BITCOIN HAS BEEN.
AS YOU TAKE A LOOK ACROSS THE CRYPTO LANDSCAPE, DOES THAT
VOLATILITY HELP OR HURT? GALEN: SO, IN TERMS -- FOR
PROJECTS THAT HAVE RAISED MONEY AND USED BITCOIN, VOLATILITY
DOES HURT IT. THOUGH AS THE MARKET HAS TAKEN A
DIP, IT HAS ALSO HELPED WEAN OUT PROJECTS THAT MAYBE THERE WAS
NOT ENOUGH OF SOMETHING TO THEM. TAYLOR: I WANT TO GET YOUR TAKE
ON WHAT ZUCKERBERG HAS SAID ABOUT CHINA WITH REGARD TO HIS
LIBRA CRYPTOCURRENCY. TAKE A LISTEN.
WE HAVE A SOUNDBITE. MARK: AS SOON AS WE PUT OUT THIS
WHITE PAPER ON LIBRA, WHAT WE SAW WAS IN CHINA ESPECIALLY, THE
IMMEDIATELY KICKED OFF THIS PUBLIC-PRIVATE PARTNERSHIP WITH
SOME OF THEIR BIGGEST COMPANIES IN ORDER TO RACE TO BUILD A
SYSTEM LIKE THIS QUICKLY. THAT THEY COULD USE AS PART OF
THEIR BELT AND ROAD INITIATIVE, THEIR FOREIGN AND ECONOMIC
POLICY TO GROW INFLUENCE THROUGHOUT ASIA AND AFRICA AND
OTHER AREAS. TAYLOR: HE IS REALLY
HIGHLIGHTING THAT IF WE DON'T ACT, CHINA WILL.
IS THAT A REAL THREAT? GALEN: ABSOLUTELY.
I THINK THE U.S. HAS FAILED TO SUPPLY SENSIBLE REGULATION FOR
PROJECTS IN THIS SPACE TO BUILD ON. IF YOU COMPARE THAT TO OTHER
JURISDICTIONS, PROJECTS COLLABORATE WITH LEGISLATORS TO
CREATE LAWS. HERE, THEY END UP LOOKING OVER
THEIR SHOULDER TRYING TO FIGURE OUT WHAT THE LAWS ARE AND IF
THEY WILL BE SUBJECT TO THEM IN THE FUTURE.
TAYLOR: WHAT DOES SMART REGULATION AROUND
CRYPTOCURRENCIES LOOK LIKE? GALEN: EXACTLY SOMETHING LIKE A
REGULATORY SANDBOX OR OPEN DISCUSSION ABOUT WHAT RULES
SHOULD BE AND WHAT SHOULD BE ENFORCED.
CURRENTLY IN THE U.S., IT IS NOT THAT. TAYLOR: VERY INTERESTING.
THANK YOU FOR JOINING. NOW, FACEBOOK EMPLOYEES ARE
SPEAKING OUT OVER THE COMPANY'S POLITICAL POLICY.
A LETTER FROM EMPLOYEES TO MARK ZUCKERBERG OBTAINED BY THE NEW
YORK TIMES READS "MISINFORMATION AFFECTS US ALL.
OUR CURRENT POLICIES OF BACK-CHECKING PEOPLE AND
POLITICAL OFFICE OR RUNNING FOR OFFICE ARE A THREAT TO WHAT
FACEBOOK STANDS FOR. WE OBJECT TO THIS POLICY AS IT
STANDS. IT DOES NOT PROTECT VOICES, BUT
INSTEAD ALLOWS POLITICIANS TO WEAPONIZE OUR PLATFORM BY
TARGETING PEOPLE WHO BELIEVE CONTENT POSTED BY POLITICAL
FIGURES IS TRUSTWORTHY." FOR MORE, I BRING IN SARAH FRIER
WHO COVERS FACEBOOK. WHAT DO YOU MAKE OF THAT
STATEMENT? SARAH: I THINK IT IS REALLY
HITTING ON ZUCKERBERG IN AN INTERESTING WAY BECAUSE
ZUCKERBERG IS TALKING ABOUT -- WE SAW HIM IN GEORGETOWN LAST
WEEK. WE SAW HIM IN THE HALLS OF CONGRESS SAYING IT IS ALL ABOUT
FREE SPEECH. THAT ALLOWING POLITICIANS TO
SPEAK ON ISSUES THE MATTER WHAT THEY SAY IS IMPORTANT FOR THE
MARKETPLACE. EMPLOYEES ARE HITTING BACK AND
SAYING IT IS NOT ABOUT CENSORSHIP AT ALL.
IT IS THE WAY FACEBOOK ITSELF AMPLIFIES CERTAIN IDEAS, ALLOWS
PEOPLE TO PAY TO HAVE THEIR MESSAGE KNOWN.
ALLOWS PEOPLE TO TARGET VERY SPECIFICALLY WHO THEIR ADS CAN
REACH AND WHEN THOSE ADS REACH A VERY SMALL AUDIENCE OF PEOPLE
WHO ARE LIKELY TO BE RECEPTIVE TO THEM, THERE REALLY IS NOT A
MARKETPLACE OF IDEAS CHECKING THE POLITICIANS ON THOSE
COMMENTS. SO, I THINK IT WAS A VERY SMART
INTERNAL LOOK AT THE WAYS THAT FACEBOOK NOT JUST ALLOWS SPEECH,
BUT AMPLIFIES IT. FACEBOOK DOES NOT HAVE THIS
HAPPEN AT ITS COMPANY. IT'S A VERY TRANSPARENT, OPEN
WORKPLACE WHERE PEOPLE ARE CONSTANTLY TALKING ABOUT ALL THE
ISSUES THAT AFFECT EMPLOYEES. I'VE NEVER HEARD OF A LETTER TO
EXECUTIVES OF THE SIGNATORIES LIKE THIS.
IT IS A REALLY BIG DEAL TO SEE THEM SAY SOMETHING SO FORMAL.
TAYLOR: DO YOU ASSUME THAT FACEBOOK COMING OUT AND SAYING,
WELL, WE WILL REVIEW THE WAY THE ADS ARE PRESENTED SO IT IS VERY
CLEAR IF THIS IS A POLITICAL AD OR NOT -- DOES THAT NOT GO FAR
ENOUGH? SARAH: IT DOES NOT ADDRESS THE
COMPLAINTS EMPLOYEES HAVE. CERTAINLY THE WAY THE ADS ARE
DESIGNED AND LABELED IS ONE OF THEIR TOP COMPLAINTS.
BUT, THEY ALSO WANT POLITICIANS TO BE TREATED THE SAME WAY AS
OTHERS ON FACEBOOK. ANY OTHER ADVERTISER ON
FACEBOOK, YOU CANNOT LIE ON YOUR ADS AND IT GETS TAKEN DOWN.
FACEBOOK IS NOT WANT TO BE IN THE POSITION OF HAVING TO DECIDE
IF SOMETHING IS TRUE AND THEY ALSO SAY THEY SHOULDN'T HAVE
THAT POWER. AT THE SAME TIME, BY STEPPING
BACK AND NOT TAKING ANY ACTION ON THOSE ADS, THEY ARE ALLOWING
LIES TO SPREAD AND ARE OK WITH IT. THERE HAS TO BE SOME MIDDLE
GROUND. I DON'T THINK THAT BASED ON THE
EMPLOYEES PUSHING BACK, BUT ALSO WE HAVE SEEN ELIZABETH WARREN,
JOE BIDEN, OTHERS PUSHING BACK AT FACEBOOK.
THEY WILL HAVE TO MAKE SOME SORT OF MOVE ON THIS.
IT IS UNCLEAR WHAT. TAYLOR: AMIDST ALL OF THIS, ALL
THE ANTITRUST SCRUTINY'S, DATA PRIVACY SCRUTINY AROUND
FACEBOOK, THEY ARE COMING OUT WITH A PREVENTIVE HEALTH CARE
UPDATE, IF YOU WILL, THAT REMINDS YOU TO MAYBE GET A BLOOD
PRESSURE TEST OR NOT. WHYY IS FACEBOOK COMING INTO THE
HEALTH CARE SECTOR? SARAH: FACEBOOK WANTS TO --
WHATEVER FACEBOOK DOES, THEY WANT FACEBOOK TO BE MORE USEFUL
TO THE PEOPLE WHO ARE USING ITS PRODUCTS.
NOT JUST FOR CONNECTING WITH FRIENDS AND FAMILY, BUT ALSO FOR
GETTING THE NEWS, FOR GETTING TO SELL THEIR COUCHES ON FACEBOOK
MARKETPLACE, FOR MESSAGING, AND NOW FOR HEALTH.
I THINK THIS IS ANOTHER AREA THAT THEY CAN POTENTIALLY MOVE
INTO TO GIVE YOU ANOTHER REASON TO CHECK YOUR FACEBOOK.
WE SHOULD THINK ABOUT IT THAT WAY.
I THINK THAT HEALTH PROVIDERS ARE VERY IMPORTANT TO FACEBOOK
IN THAT THEY ARE BIG ADVERTISERS.
REALLY, THIS IS TRYING TO DO SOMETHING FOR USERS THAT KIND OF
ALIGNS WITH WHAT THEY WOULD NEED IN THEIR LIVES.
IF FACEBOOK IS THE INTERNET FOR PEOPLE ACROSS A LOT OF THE
WORLD. TAYLOR: QUICKLY, THE COMPANY
SAYS IT WILL PROTECT DATA THAT YOU ENTER. IS THAT TRUSTWORTHY?
SARAH: IT IS ALWAYS GOING TO BE BAD OPTICS WHEN FACEBOOK
ANNOUNCES SOMETHING THAT PROBES DEEPER INTO OUR PERSONAL LIVES
GIVEN ALL THE PRIVACY SCANDALS OF THE PAST.
IT DOES NOT REALLY MATTER WHAT THEY SAY ABOUT HOW DATA WILL BE
USED. THEIR PAST HISTORY WILL COST
THEM CONSTERNATION AND CONCERN AMONG USERS.
TAYLOR: SARAH FRIER, THANK YOU AS ALWAYS FOR JOINING.
FINALLY, WORD LATE MONDAY, TIKTOK OWNER IS MOVING A HONG
KONG IPO AS SOON AS THE FIRST QUARTER, ACCORDING TO THE
FINANCIAL TIMES. TIKTOK'S VALUATION HAS
CONSIDERED TO SOAR PAST THAT OF BAIDU.
LATE ON MONDAY, WE LEARNED THAT TESLA CEO ELON MUSK'S DEFAMATION
CASE WILL HEAD TO TRENTON LOS ANGELES IN DECEMBER.
YOU MAY RECALL MUSK AS THEY JUDGE TO THROW OUT A DEFAMATION
LAWSUIT BY A BRITISH CAVE DIVER HE CALLED A PEDOPHILE.
MUSK'S LAWYER SAYS THE TWITTER ATTACK WAS PART OF A SCHOOLYARD
SPAT ON SOCIAL MEDIA. MUSK'S DEFAMATION CASE WILL
HEAD TO TRIAL IN L.A. IN DECEMBER.
THAT DOES IT FOR THIS EDITION OF BLOOMBERG TECHNOLOGY.
BLOOMBERG TECHNOLOGY IS LIVESTREAMING ON TWITTER.
CHECK US OUT. FOLLOW OUR GLOBAL BREAKING NEWS
NETWORK, TICTOC, ON TWITTER. THIS IS BLOOMBERG. ♪