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tv   Bloomberg Technology  Bloomberg  December 2, 2016 12:00am-1:01am EST

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>> i am haidi lun with an update of the top story. there is an investigation into malaysia is a struggling state fund. singapore imposed fines on the bank and on it reaches of money-laundering laws. haidi: there is no evidence of willful misconduct. donald trump has confirmed retired general james mattis as his choice of defense secretary. he made the announcement at a rally to supporters in ohio. attis retired in 2014 after career in the marines. trump describes him as a true general's general.
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thailand's first new monarch in seven decades. he will be known as -- global news, 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. this is bloomberg. this is what we are seeing in the afternoon session in asia. a lot of gains getting given back amidst concerns of u.s. payroll members as the italian referendum adds more risks on the horizon this weekend. this is bloomberg. emily: i am emily chang and this
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is "bloomberg: technology," coming up, dark clouds over start of land. we'll speak to ryan hoover and mexico'ssive with richest man lays out his views on donald trump. mexico and the biggest threat to his telecom empire. after lagging in that navigation, apple gets serious about taking on google maps and in list backup from above -- and lists backup from above. angellist is buying products and shop.ate a one stop they use that to raise money from investors and product hunt is a popular site from entrepreneurs. it had already counted angellist 's ceo among its big-name investors in terms of the deal. joining us now to discuss the founder, product hunt founder
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ryan hoover and of sarah mcbride. thank you to both of you for joining us. why so, why now? he has believed in us and the very beginning and it was just the right time for us as a company to partner with them and we are thinking about our long-term future and talking more with angellist and what their plans are. we will help startups in different ways, not only from funding, to tell them to distribution and discovery. emily: i'm curious what you found in the fundraising environment. ryan: there's a lot of talk about the environment. it has changed in many ways, but today's companies are getting funded today. we are seeing more and more people building products and companies and also with less resources and time. we are living in a world where distribution channels exist, the internet and app store, amazon, these places to distribute your product. despite talking about the
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fundraising environment being difficult, the truth is, it is a great time to be a company builder. emily: whited you sell rather than raise more? ryan: if you look even 10 years down the road, how do we get there after? many of it is through partnerships. partnership with angellist makes a lot of sense. angellist has a fantastic talent platform and has invested a lot into it and continues to invest a lot and that is something we can see being part of product hunt and angellist together. the barometer eisai is down 15% from a high of last the start of barometer is down 15% from a high of last year. danielle: we figure out the data from a long time ago. the four points on the screen , howhe number of deals
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many of those deals are first financing, that is an important metric of how healthy the industry is and the future, and the number of exit. sarah: simply, how many have been acquired or how many have ipo'd. bloomberg makes is that together with its secret sauce and comes up with this barometer. very speciala sauce. would you echo what you're hearing from investors and entrepreneurs, what brian just said about the environment? sarah: i might be less optimistic than ryan. it is much harder to raise. if you look at the numbers, far ther companies are raising level, which is leading into a exits inof those big the future, but also, it is a little bit hard to tell because some of those funding round are actually going up in size, so
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fewer of them are bigger. for companies that are not kind of blockbuster, it is a little bit hard to get funding right now. for the startups, ryan, that you know, that for the sta, that you know, that maybe are in this sort of transition for apple or middle ground, what are they doing #what are they planning -- doing? what are they planning? ryan: cutting your costs is the easiest way to get to the hockey stick growth. know, people, you shut down companies when it does not work out. that is what you end up doing or raised the bridge around. the environment changes. we go through these problems ultimately and to take it back to angellist, this is what angellist was founded on to start with, to help companies and investors connect and raise money to live. the funding environment is shifting and the political environment has changed. do we see more acquisitions, tieups like this?do we see
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the cream rising to the top, if you will? cream rises to the top situation when the environment gets the call. a really good company can ipo no matter what, but then, there are just these events that are causing a lot of problems, i mean, if you look at the barometer, you will see around here in the summer, this is right after breakfast come -- be rexit, this was an interesting obligation that hit all market hard, including the startup market. upwill see how how this ends affecting startups. how do you help startups given the environment we are looking at? things will change but a
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lot of it will stay the same. what is your vision of angellist and our vision, and how do they come together? the roadmap is staying the same. that is our long-term plan. the way i equate this is thinking about what does it look like when facebook bought instagram? uptagram would be gobbled and turned into facebook photos. the opposite happened. it has grown to become a massive platform. emily: interesting. all right, ryan hoover, ceo of product hunt. capitalide, venture reporter. thank you so much for stopping by. watching,ory we are driven by large orders and yells, plus, a new product push. i sat down with ceo aaron levie to talk about what is fueling growth. >> one of the core things about
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our product is that it makes sense to any sized business in any industry around the world. we see dramatic expansion because of new customers on board. we have 69,000 businesses that use the product. accounts.ing extended some of our new products that we launched that our products in terms of the revenue model have actually been performing very well. coming up, we get our hands on snap spectacle think to jeremy lou from lightspeed. this is bloomberg. ♪
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emily: there has been a major shakeup at small books. howard schultz is stepping down as ceo next year but thing on as executive chairman. he built the coffee empire and spent two separate times as officer. johnson is known as a tech veteran before joining starbucks in 2009. since johnson became chief operating officer, starbucks has rolled out mobile ordering across the u.s. and tested delivery. investors are rushing to snap up shares of snapchat's parent lowany, but they are having look with typical private stock. this is according to a report by -- they scout out become a first
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hardware product, spectacles. of lightspeed brought over a pair for a test run. how did you get your spectacles? i have a feeling you did not wait in line for six hours. >> i have some friends at snapchat. emily: the only way to get your hands on the new spectacles is to stand in line for hours at pop up vending machines across the country. $130 a pair or up to thousands on ebay. like steve, jeremy lou was a lucky 1, 1 of snap's first investors. how does it work? button on the top and when i press it, it starts recording video and you can see the light has gone on so you are being recorded right now, and ynchs it stops, it s
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through bluetooth to my phone. it goes directly to snapchat. snaps, gusts, in -- the and edgy colors. they have a certain core factor, but you got to wonder if spectacles will actually make a cool dent in snap's business. when you heard they were going to get into hardware, what did you think? found that evan and the team have demonstrated that they know better than anyone else what their users will want. emily: ok. [laughter] emily: give it a try. >> and you are recording. can you see the white -- emily: pay. -- oh, hey. it records circular video. >> i went is planning with my
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daughter and not having to criticize dropping a camera or phone, being able to record that experience was pretty fantastic. emily: why do you think spectacles will do any better than the -- google glass? >> i think it is obvious just looking at them, don't you? emily: google glass retailed at $1500, more than 11 times more than articles. they can do a lot more things. jeremy liu believes the price point will help get the product in the hands of the masses, but will spectacles be able to have long-term staying power? bring back ryan hoover. you have not tried it, but you saw our little experience of their. i'm sure you heard a lot about re. -- experience there. i'm sure you heard a lot about it. ryan: it is difficult for a software company to execute on hardware and they are doing it in a very snap kind of way,
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making it a point, making it playful and fun and introducing a price point that is accessible for a lot of people. emily: brilliant, really? ryan: absolutely. they are creating these vending machines. since when were vending machines cool? they made them cool by dropping them into different cities. emily: they are making them feel very exclusive, that is for sure. i walked into it feeling very skeptical, but i could see a) you would love these if you were ifuge snapchat user, and b) you have kids, it takes away that awkward moment when you pull out your phone and your kid automatically stops doing that cute thing they were doing. do you think this is actually something that is going to add revenue to the bottom line or dry of usage? rive usage in a d big way? ryan: it is the first step
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towards a hardware snap, camera company. starting with something simple that takes photos versus google what started with a complex thing in the beginning. more than think it is just a gimmick, something fun around the holidays? ryan: this is more the future of what snap is actually building. emily: that said, gadgets in general are kind of struggling. i mean, google glass did not work out. you have pebble potentially selling to fitbit. you have gopro. they had a number of layoffs. you know, what is it really going to take to make some of these techie gadgets really take off? ryan: not many people can execute on that, especially software and hardware very well, that if they can, it becomes more valuable, if you can own the entire experience and platform and not depend on
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longer-term apple or google, android or other devices, it becomes even more exciting for the product builder. emily: what would've trends are you seeing between hardware and software startups? ryan: we are seeing a lot more. smart everything is coming. it has been part of the conversation for a long time. we are seeing more and more smart things whether it is smart lighting, smart ovens, all of these things connected to the internet that do interesting things, and we are super early in that space. right, ryan hoover, ceo of product hunt. thank you for stopping by. great to have you on the show. all right, a number of the voices chiming to talk about what u.s. air base and like under president-elect trump. we heard from bill mynye. take a listen. can hate me. you can hate everything. you can be a miserable heater person, but would keep the
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game is our in the technology, our innovation. so what i'm hoping is that we can find is common ground in this, invest in basic research. if we had better batteries, we would change the world. inl: if we invested renewable energy technologies, we would be having jobs right here in the united dates. -- states. emily: how to start earning an instagramough your account. bloomberg tech is moving to a new time. starting on monday, we will be 5:00 p.m. eastern, 6:00 a.m. in hong kong. don't miss that. this is bloomberg.
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emily: a story we are watching.
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airbnb is toughening up home sharing limits in london and amsterdam. host will need a license to rent for 90 days a year and for 60 days a year from amsterdam. airbnb will automatically limit home listings on its platform from 2017. turning now to instagram, it is an app where filters help average people make their lives appear more glamorous or fun withsome every day users millions of followers. our reporter finds that being in insta-famous is hard work. >> with a small amount of followers, you wanted to up that. how did you set out to become famous? >> my goal was to determine just how hard this is -- is it something anyone can do? there are these people called influencers, and they basically
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take money from marketers to try to sell stuff, and i found an agency that sort of advice to me on photography and grooming and clothing and various other matters, and i just started posting these pictures on instagram in a totally different character. bots to try to choose my following. it was difficult and, you know, it gave me an appreciation for this stuff and showed me how contrived some of it is. >> we are seeing you with your cat. i cannot imagine why that was not leading you to more followers. stylists, thee groomers, they got you more followers on instagram. >> that hurts, but i take your point. how do these services work?
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>> you are willing to pay for that to happen and it normally, you have to have a rather high threshold to be able to do that. how does one become, at the entry level, a member of instagram's national class? -- professional class? >> the professionals that provide services to these influencers normally don't talk to people with less than 100,000 followers. for thee an exception purpose of my article. the interesting thing with instagram is there is no easy way to get a following. there is no retweets or easy way to be broadcast so we have to basically jump around the internet, liking things, in the hopes that some of those people like you back and then, try to have something that is worth looking at, which were these slightly ridiculous pictures took with the help of some, you know, photography and stylist, and great lighting. you know, there is a genre of
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this and it looks a little bit like a paparazzi shot or something like that, but the thing that was most discouraging theset, you know, pictures i had taken before on instagram that i was proud of, they did nothing compared to these slightly cheesy fashion shoots that i did later, which perform much better. >> i think they look great, max. i'm struck that there is some credit here to alicia siegal. explain how this works. there is a lack of genuineness to instagram, when i post picks a her smiling, not having tantrum. >> i cannot tell you what that yellow blob on top is. basically, i was posting these fashion shoots and then also trying to post, you know, pictures i thought looked like what you would expect to be on instagram and my advisor said these are frankly terrible. you need professional help.
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there is a class of photographers that basically content toifestyle instagram influencers as if it were a magazine. emily: bring it. our bloomberg businessweek reporter with my colleague david on bloomberg markets. you can catch max's. he and this week's issue of bloomberg businessweek. it is a good one. the folks behind the fellowship program have a new venture firm. how they plan to find the next mark zuckerberg, next. ♪
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emily: it is 1:30 p.m. here in hong kong. has made itsa first comment on the new u.n. sanctions imposed after september. the news agency said pyongyang rejects the security council's exports. haidi: seoul and tokyo have announced international measures against north korea. taxes.s to waive beijing will do the same for individual the mistake investors buying chinese shares in hong kong for three years. the taxes will still be levied on institutional investors
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trading on hong kong stocks. short sellers against the australian formula maker are reaping their reward. stocks plunging. they said new regulations and there would hurt their resolve. others list companies that sell baby food products to china. tof and has moved closer pass a controversial bill to legalize casinos. a local house community -- their, it would move on to the upper house. betting on horses and boa is allowed in japan, butt casinos are currently banned. global news, 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries, this is bloomberg. let us take a look at how things are wrapping up on this friday session. taking a look at the market, here is juliet. >> a little bit of profit coming
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through. opec fueled rally. there is nervousness ahead of the jobs are coming through later tonight our time. we are seeing the australian market closing lower by 1%. juliette: it rallied 1.1% yesterday. gold is moving significantly higher and as you said, bellamy's having that big plunge, closing by 43.5%. the kospi is weaker. won againstg the the dollar. have a look at hong kong. it is down 1.1% and you are seeing these casino players really leading the declines in hong kong. this is on a cash declaration rule. we have seen shares in china dropped by as much as 5.5% today, the most in five months, after news that macau may require inbound travelers to disclose cash when they enter
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into hong kong. hong kong trading lower so we are seeing a little bit of negativity coming through a plus asian markets. bee will beive -- we will liv from londone at the top of the hour. this is bloomberg. emily: this is "bloomberg: technology," i'm emily chang. ater is known for being contrarian to say the least when it comes to everything from politics to his investing philosophy. his fellowship gives $100,000 grant to two dozen college-age students each year on the condition that they drop out and start companies. two people behind the fellowship have started their own venture fund called the 1517 fund with the aim of taking things a step further. joining me now is it danielle strachman and michael gibson. you guys have been at this for a year-and-a-half now and working with peter for a long time. talk to me about how this fund
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actually works. i know it is different from the typical fun. >> as far as a typical venture fund, all venture funds have some sort of goal or mission they are trying to achieve. ours happens to be focused on younger founders in high school and college and helping to build their companies. looking for the next mark zuckerberg because you're looking for people who are really young. talk to me, michael, a little bit about the people who are backing you because as i understand it, it is not as really a good return. interested inare this mission to find people working on things outside of tract institutions. against education in and of itself. we believe in doing and the types of individuals who are so committed and passionate about what they are working on that they can leave school. they tend to be dynamic people so a lot of our investors are interested in talking to the people we funded.
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emily: you have been working with the thiel fellowship. what drew you to this idea that kids should not go to school but start companies instead? danielle: i worked an alternative education for a long time, with homeschoolers and started a charter school i was personally drawn to the thiel fellowship. also making sure that younger dogs are not in centralized for too long. it is really important to me. success haveind of they actually had. is this a good formula? michael: absolutely. they are now tracking very strongly, you know, all told. i forget the exact number, but it is north of $1 billion in market cap aggregate. we are really excited to see the next wave. tailwinds are in our favor.
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we see young people programming by the age of 12 and by the time we meet them, maybe they have eight years experience and they have models i make and emulate. emily: what about the time that does not work out? has it been a waste of time? have they learned something? these are kids, right? danielle: for these young people, there are a lot of opportunities for them if they start a startup. there are a lot of opportunities for hiring, going back to school, those are two in particular. raiseout there able to money, to manage a team like that, that is a lot more experience than a lot of young people get. the opportunities are very bright for them. youy: what has he told about what he hopes to see, what you would like? he loves that this is
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an extension of the theme behind the fellowship, which is supporting people without any kind of authentication by some authority. the name of our fund 1517 comes from the protestant reformation, the inside joke is that martin luther nailed his thesis to a church door, protesting the sale of indulgences, pieces of paper the church sold at great cost, telling people it was a way to save their souls. likewise, we say universities ,re selling a piece of paper called a diploma, telling people it is the only way to save their souls. we think it was false than and health now. has been trying to get support in silicon valley and folks on a team to advise president-elect trump. has he asked either of you? michael: have not been asked. emily: what do you make of his support for donald trump? andr has contrary and views
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is very much against the grain of the rest of silicon valley. danielle: we were surprised like everyone else. [laughter] michael: i cannot speculate beyond peter's public statements. i think it ties into the themes he has been thinking about. ivead economic innovat stagnation of aslam periods of time and what he has said in public about shaking things up. emily: are you guys excited about donald trump? michael: as a libertarian, i look at different ways of reforming institutions and democratic votes, and i don't know. i look for other opportunities, but i hope things work out. ofly: you were on the board the institute which i had to ask you about. this is, the idea is, they are doing research to build a city or island off the coast of california where we start over and have your own new rules and laws. it was parodied on hbo's "silicon valley."
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what has the actual progress been? michael: it is not to build a floating island off the coast of california. it is really about, there is no more land left to try new experiment and governance. it is not to anarchy. it is to try to do rules set. there is good news this week. an institute has come to agreement with the french polynesia in government, a memorandum of understanding which would allow for the first creation of a zone in their coastal waters for a platform where people might be able to run businesses under a different set of rules. emily: do you believe it would happen, and if so, when? michael: the chinese are building artificial islands in the pacific. eads,don't call them seast but in the next 50 years people will build structures at the operating under different rules. i hope so, for our sake. emily: fascinating stuff.
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mike gibson and danielle strachman of the 1517 fund. thank you for stopping by. a story we are watching, state-sponsored hackers have carried out a wave of destructive attacks on saudi arabia over the last two weeks grade according to people familiar with the investigation, the hackers broke into the agency that runs saudi arabia's airport and erased data. they are believed to have hit five other target although the investigation is still in its early stages. digital evidence suggests the attacks came from iran. no it up operations were disrupted by the attack but it was believed to be a show of force. we will up on state-sponsored hacking tomorrow with laura galante. says they helped to spread fake news stories on social media. not miss that torre tomorrow. story tomorrow. maps has not been a darling of the tech world but they are
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putting resources behind it. now including drones to improve the service and take on google. we will bring you that story, coming up. ♪
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>> how bad is it? be honest. is this windows vista bad? it's not iphone 4 bad, is it? zoom bad?this is >> i'm sorry, gavin. if apple maps bad. has notpple maps exactly been loved bites users since it launched in 2012, it has been riddled with errors, leaving it with a lackluster
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reputation as google maps has dominated the place. apple is making serious moves to change all of that. mark gurman wrote about it. he joins me now. they are using drones. how will this work? >> apple maps obviously, the launch was mumbled. one of the reasons it was so terrible at launch was because they had so much data they were pulling together from different providers, some including tom-tom and other smaller companies, and they did not force their own data. emily: similar to what google has done? mark: they are collecting their own did a using camera sensors. that can only take you so far. they are expensive and require manpower, but drones, they are smaller, under 50 pounds, can fly around and get into areas that stands cannot -- that vans cannot. faaier this year, they got
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approval. in august, faa stopped requiring exemptions and approval. they got approval in march. this allows them to fly drones around. the key is, they cannot go over buildings were people yet so they are limited to regions that are not regulated such as amazon using the u.k. for prime air testing. going to, the faa is relax their restrictions so apple will be able to do more. emily: does google use drones? mark: they have used drones to their skunk works program. it is a popular technique for surveying construction sites. you see lots of people flying drones with cameras over apple's campus to get a look at how far it has gone so far in terms of construction. maps and been lots of construction related applications for drones in the past. some newey are adding
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features, indoor features, features for pedestrians. tell me about these. mark: beyond the drones, they are working on at least two new features for an ios update for next year. one would be in your mapping. apple has been using wi-fi, this technology for sensors called malls,ns," to map out airports, museums, parks and such. when they release this feature as soon as next year, you will be able to navigate these places just like you can navigate walking. another feature is to the in car navigation. you need to get into these two lanes to make it to your turn or next entry on freeway, now apple maps will be able to do that at here. emily: how optimistic are you about this? i know you talked about them assembling a new team, robotics and data expert, but do you think they are really putting in and of resources to take on google? is very much appears apple
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is taking this seriously because maps is not a financial element of the company. it is a key platform, part of the iphone and they are showing dedication to this. don't forget, apple had a bad launch, but that was years after google's launch. when google's maps launched, it was just the united states and a few other cases. apple has progressed so much over the last five years, but there is so much to grow to match google. emily: hopefully they don't get another spot on silicon valley. rate reporting as always for bloomberg tech. most inrs dropped the five months after report up is reducing orders for iphone 7 parts, and other can see, among the worst hit were broadcom, qualcomm, texas instruments. carlos slim, american mobile's chairman emeritus, one of the takest men in the world,
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on at&t's aggressive pricing strategies in mexico. this is bloomberg. ♪
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emily: billionaire carlos slim joined us for an exclusive interview from mexico city. he says at&t's aggressive pricing strategies in mexico are causing the company to "lose a lot of money." he also chimed in on trump, saying mexico needs to return its focus inward after his presidential win. bloombergs eric caught up with slim. take a listen. >> well, we are mainly in latin america, and we have a big operation in the u.s.. something in europe. take care of our investments because we cannot
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get behind in technology, capacity, and offered to our and we customer service cannot stop for any reason. it gets cheaper because now, we are less for what we are going to do in dollar terms. in dollar terms, we will be lower. in local currencies -- eric: cheaper. the concerns that you have about the effect of trump policies on the domestic economy in america -- and america's standing in the world, does that change the calculus you may have for some of your assets in the united states? you own a large did wireless wireless-- prepaid tracfone. carlos: he is talking about climate change. let us look what he is going to do because he is not telling he will get out.
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that is important. u.s.,the leadership of one time, he said he will get out of everywhere. he want to make a stronger army, a stronger military country, and maybe he is looking to negotiate the resources that we paid for that. he has said, i think that is an issue of negotiations to make the u.s. pay less for many of these things. he's talking about corruption in washington, that is good for our country, good for everybody. eric: i would like to think rooting out corruption is good for everybody. carlos: i know. eric: i mention this business you have, tracfone. what is the long-term strategy for this business. is it to continue as it is now,
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to maybe merge it with a wireless carrier or sell it? short-term, follow like we are doing. we need to follow what is happening in the industry. the industry is moving very fast, and we are alert to what is moving and coming and the pending on all the things, we'll take a decision and the right moment. eric: what is more likely to happen in the longer term? carlos: that it's very difficult , but wee in this moment are working in the short-term to do what we have done to make it profitable. we have a good operation, market share. eric: your former partners now the greatest threat to your wireless business. is at&t playing fair? carlos: we know that they were going to come to compete because we often do.
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we opened the door like you know they have a big piece for many mobile. american 10%.91, they have in 1991, 10% of telmex. .nd we open the door to them and they aregal getting very aggressive maybe a little more that they are losing a lot of money. i don't know how much, but they are losing a lot of money. you can see that in the balance sheets. what is very surprising is that for me is surprising is that they are selling very low price here, less than 50% of the pricing and that means they are
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the u.s. prices, but less than 50% of the price in u.s.. carlos: is that anticompetitive behavior? eric: -- is that anticompetitive behavior? carlos: i don't know. you judge. to stopat can you do at&t from taking your market share if they continue to price at that level? carlos: they are not taking to much market. they are subsidizing too much the assets. they are taking so market from competitors, but there is more chance it is good for the consumers. we are happy. emily: dallas carlos slim with our very own eric in mexico city. in this edition of "out of this international space
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station lost another supply mission. an unmanned russian spacecraft 5100 pounds took00 off from kazakhstan. it exploded 118 miles above the ground. space agency said most of the debris burned in the atmosphere. the crew is not in immediate danger of running out of food. an station is stopped for event such as this. this is the fourth failed cargo ship. that does it for today and a reminder that bloomberg tech is moving to a new time. it will be live 5:00 p.m. eastern, 6:00 a.m. hong kong. this is bloomberg. ♪
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♪ yousef: the future of europe it. crucial votes in italy and austria this weekend. the french president takes himself out of the running in the french elections. -- the donald trump rally runs out of steam. stability in europe is a concern. job reportit today's which will be critical for the way forward. ministerblow for prime may. the liberal democrats unexpectedly gained a seat in government.

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