tv Best of Bloomberg Technology Bloomberg April 8, 2017 6:00am-7:01am EDT
talent to other countries like india. week, president trump hosted president xi jinping in florida. blame china for stealing jobs and intellectual capital. imports come from china, and multinationals have $228 billion in investment at stake if trade war breaks out. we got the latest from ramy inocencio in florida. me as interesting that this billionaire businessman and novice politician is meeting someone , a is quite the opposite seasoned the pushing back against luxury in china. one of the big issues is jobs.
sayingtrump has been american been stealing jobs and taking them to china. another interesting topic is currency manipulation. been trying to figure out where it stands in terms of a basket of currencies and the dollar. president trump says it is potentially a currency manipulator. is the u.s.pic trade deficit, or the chinese trade surplus. in 2016 wasdollars the amount of money in terms of deficit. donald trump has been saying and has been very unfair said he will do something about it. we will be looking at jobs, the
currency, and trade. much.ne: thank you very great to have you on the show. our next guests says the betweenic relationship president xi jinping and president trump is considered to be one of the most important in the world. thank you for your time today. it is amazing the significance of the relationship. i'm looking at a craft that u.s. total trade in china, 17% of all world trade is coming from china. what is interesting is that you have heard tough rhetoric around trade, but there does appear to be two different camp's in the trump
administration right now. you have certain folks in the administration, in particular his son-in-law jared kushner, rex tillerson, who have a much more pragmatic come business-oriented approach. how can we create jobs, build the economy? camp, peterifferent navarro, who has been clear trade with china is unfair for america and ripping jobs away. ifwill be interesting to see the trump administration is able to find a middle ground. do they have a more coherent approach on what their economic and trade strategy will be with regards to china. caroline: i'm going to check in
the significance on trade, 17% reliance on china. amazing when you are thinking of certain technology industries, state backed chip industries is one that will that wilbur ross has commented on. that you think there will be concessions on both sides of the trade here? >> i'm not sure how much you deliverables out of this meeting. you will see both leaders try to lay the foundation, set the baseline, make clear what their priorities are, which industries they care about, where they
would like to see things done, and from the trump administration where they would like to see china set a level playing field. i think what they are aiming for is to lay a foundation and we will see what comes out of that in the months ahead. asian infrastructure investment bank, potentially an invitation to join that coming from china. do you think that could benefit the relationship with the u.s., including other hubs in the area, singapore, vietnam, taiwan? infrastructure is a huge priority. i think there is a recognition the this president has talked about his desire to see infrastructure investment in the united states, so perhaps infrastructure is an area where
this administration can find common cause in common ground with administrations in the region. looking at how the united states can play a greater role cooperatively in infrastructure. whether that means the united aib, that getse into broader strategic issues, but there will be an ask and push and they will consider it. cory: may be quid pro quo is you come into the aiib, and potentially china can't invest more and u.s. infrastructure. we are seeing chinese money flow into startups in the united snapchat, how important is the flow and how much is it at risk?
>> it is tremendously important. what will be interesting to watch in the coming months and is that there will be a closer eye in some camps on these investments in industry that some people in the own and states consider sensitive, where china is investing, and no doubt that is getting into u.s. technology, so that will be a double-edged sword. arene hand, companies reaping the benefits of widespread chinese investment and money they can't get elsewhere. on the other hand, there will be greater sensitivity to where and how the chinese are investing. now to germany, where angela merkel is backing
find techn that could to removeif they fail content. if passed, they would be the toughest regulations facebook would face in any country where they operate. scrutiny, increased when applying for jobs in the u.s. and later, a chinese conglomerate with grand plans to be the next tesla, netflix, and apple all-in-one, but it is facing a serious cash crunch. this is bloomberg. ♪
visas are used to secure the best and brightest talent from around the world, but critics of the program say the visas allow companies to bring in lower paid workers. andu.s. citizenship immigration services introduced new legislation. we spoke with the author of driver in the driverless car. he has written extensively on h1-b visas. >> they are doing the same stupid thing they did with the muslim ban. it doesn't make sense. it means my students can no longer get jobs here.
why do we want to lose these brilliant kids? it will hurt us. it will benefit the rest of the world. salarye: the average his for these high demand h1-b visas is $72,000. maybe this is what many believe needs to be driven up higher. ? couldyou agree the h1-b be changed? how would you advocate a change? >> the problem is the green card. when people apply for permanent resident visas, they are stuck in the h1-b visa loop. the issue about declining salaries is too untethered the visa from a company. if they get someone offering a
higher salary, they can leave and continue over there. why don't we do that? this way there is no cheap labor anymore. caroline: it is more about the green card that needs to be fixed. you have written extensively about this. that was at the heart of this, the fact people come to the united states, educate themselves, and then are driven back home. where is benefiting from the potential brain drain going on? measure this is look at the number of unicorns. 15-20 years ago, the only ones that existed where in america. of themhave about 100 in china and india, so basically we are losing our advantage, our ability to build innovative companies because we are losing
the talent. it is a brain-dead strategy frankly. caroline: have you done the research to show those being built in china and and india are ring built by educated talent. perhaps they see what silicon valley has built and they want to do it too. practically every company has returnees on their management team. them to them and told go bye-bye and they compete with us. china has more innovative technology companies than the u.s. does. apple is copying the designs of some of the social media apps in , becauseones in china china is innovating beyond what apple can do. be ours considered to
most innovative company. it has to steal from china. caroline: sad, changeable, how can we see tech talent fostered in the united states for those who indeed grew up from the beginning in the united states? >> as immigrants want to come to america. we love america. this is the place to be. make americans compete, but as long as there is not a salary disadvantage, competition is good for the country. once you have cheap labor, indentured servitude, that is when the problems occur. fix the problem and we fix the entire range of problems. caroline: it is not cheap labor that many people fuel has undone manufacturing's. .
a lot of people feel it is automation. what about the answers to that? educating to ensure everyone can have a utopian view of the world rather than a dystopian view? >> that is why i discuss extensively that amazing things are becoming possible. is allowing us to solve the grand challenges of humanity. the fact is we could benefit from this if we led the innovation and now start training our workforce. we have to train americans in becausebotics come up manufacturing is coming back to the united states, highly
automated robotic manufacturing. ,e should the implementing them and for that you need the best and brightest in the world. policymakers,said educators, and corporate leaders need to listen to this. are they? and get it. leaders they see the need for immigrants in new technology. policy makers getting dumber by the day. it is sad to see what has happened to america. is iq level of capitol hill decreasing every election it seems. the people get it. there is a big gap between the nots and the have-nots, only money, but knowledge and education, experience in social values. s. are building two america your viewers are tech savvy. they get it.
mar-a-lago, this has become trump territory and people don't want to listen. they are feeling left out and disenfranchise. we need to figure out how to offer the same technologies to everyone to educate, inspire, and motivate them to be part of this whole thing. with robots, it is good. they take our jobs away, that's bad. this is what we have to learn. thingse: do you advocate such as universal basic income, taxing robots, to provide a safety net for those who do not want to be retrained? >> the universal basic income is a critical ingredient. taxing robots does not make sense. they are going to tax my this
washer? whether we are ready or not, jobs will be eliminated. caroline: the entertainment industry is getting in on the vr craze. we take you to china, where one of the country's biggest filmmakers has plans for the technology. add cash crunch to economic pain, the chinese conglomerates long list of problems. this is bloomberg. ♪
virtual reality. a combination of a movie and a game. isall you are really doing walking around a barren, foam padded basement. venture isenture is -- >> for me, as a movie director, this technology is significant. it is not flat. you can see color and 360 degrees. you can interact with it. they want to open up a vr theme park around china. so real wants to become the universal studios of china. why universal studios?
it is backed by a wealth of intellectual property. >> as many of china smartphone the our devices, this year is pivotal. contentcapital ships to providers away from the initial equipment makers. >> wow. that is a whole other world, down the rabbit hole. it is developing its own games and plans to have 10,000 be our arcades across china. >> we don't have good enough content to get repeat customers. people play our games for 10-20 minute tops. vr right now is best suited for b2b applications for companies that can afford it.
>> when this technology becomes mature -- >> the vr industry is ready for a breakthrough, but those who left because of the bottlenecks will all swarm back. unless the virtual space zombies get them first. caroline: a cash crunch at leeco continues. the company delayed paying u.s. employs this month, the latest may havebillionaire over reached his plan to create a u.s. foothold for the internet-mediate empire. selina wang was the first report the story. fascinating company to track.
i wrote about their u.s. strategy. they bought this enormous plot of land in silicon valley and said they would hire 10,000 employees. we have seen a cash crunch, suppliers alleged they miss payments, stripped of broadcast rights. this is the story of a company that went too far too fast and this has stoked frustrations with u.s. employees. there were a lot of promises given, and delaying payrolls is a bad sign. though the company told employees this was due to getting money out of china, a lot of sources say they believe there are other issues involved as well. caroline: the company has responded, saying the payment wasn't missed, but you know differently. what therefore do we think in terms of the higher level employees they have managed to
lure over? >> they hired a number of high profile executives from qualcomm and samsung. ,e has this other division another big venture in electric vehicles, and that company has seen significant turnover, especially their u.s. finance team. to rehire some folks to that team, but sources tell me it was frustrating because they told the ceo that we can't keep spending and spending. he said keep on going, the money will keep on coming, and obviously it didn't. that stoked frustration and caused turnovers. caroline: still ahead, details on the technology being used to build the hyperloop. we will hear from rob lloyd.
company's plans in the u.s.. >> this is american-made technology. innovating has been world leading, but inground transportation and high-speed rail, there is no real american technology. it is an la-based company that 260grown from a garage to employees in less than 27 months. we are demonstrating we can build something new, something bringingin the greatest minds together. we can do this in the united states if we collaborate and get support from regulators so we can dovetail with existing transportation programs and write a few new rules for hyperloop. those of the conversations we
are having on capitol hill. , whatne: three winners happens to those projects? you said you want to aim to have hyperloop a reality by 2021. finalists, 11semi from the united states. we will bring that to a dozen, then we have to do more work, detailed engineering studies, get to the next level of specific route analysis, economic analysis, because we are doing this to transform economies and drive economic growth. to do withre work those 12 finalists, but when we find governments that are supportive and we have a route that makes sense to build that first system, we will finance that and deliver the value our
team is bringing in working with regulators and governments and designing the technology to solve real-world transportation problems am a so we are going to try to pick a route that makes sense, that can be financed, and can be built quickly. that will get us to production 220 21, and we are encouraged and hopeful that one-to could be in the u.s.. caroline: how close is the technology? we're talking routes of up to 1000 miles. how quickly can you prove the technology works? >> the company's guiding mission and the thing that has created so much excitement in this country is to build a full-scale prototype. we are near completion of a
full-scale prototype, although five hundred meters, it combines all the innovations we have developed since the company was founded, custom-designed propulsion system, the pods that people, theand control system that allows us to manage high-frequency pods. we will accelerate quickly inside that 500 meters. that's not what you and i will experience, but i will be transparent, this is a full-scale architectural system. taking that architecture, to plumbing it in a production environment is only the next step, so we are excited that within the next couple of months , we will show the world that hyperloop is real and we are getting close and we are excited that that has been the single
most important milestone for our company. aroline: can it be real in highly populated areas such as the northeast corridor? >> the beauty of hyperloop is we require much less land. or beneath grade and a tunnel because of the factors in our architecture, by reducing pressure, you reduce the size of a tunnel that could come into a city center. we need less land, two thirds the cost of high-speed rail, and our analysis and what we have been sharing today with experts from around the world, we can deliver two to three times the economic benefit of any other mode of transportation on the efficiency of economy, to create large labor pools in major cities, so we can go in places
that other modes of transportation find difficult, and the northeast corridor is one of those where hyperloop will make sense and we have more to do there. caroline: hyperloop one ceo rob lloyd. we had a chance to catch up with the company's executive chairman and ask about how this project is being funded. >> we've raised $160 million in funding in our 2.5 year history of founding, so as we talk about this ability to do loa moon shots, it is pretty spectacular. investors, present and future, who will be part of what we are building, so it is flowing quite well. we will have more to say in the
near future. caroline: such exciting projects like these are not often without controversy. one has been between you and the original ctl. how hao. o. are 250 people, incredible talent, building this, everything is looking really great. any slowdownbeen in our progress to make the hyperloop a reality. caroline: coming up, future restrictions could drive tech talent to india. we will look at how it could benefit from u.s. visa reform. the return of mcafee, reemerging as a standalone company after being scooped up by intel.
a startup is about to conclude a $60 billion round of funding, seeking to improve highway safety, hoping to generate huge savings for the trucking industry. the technology makes it less togerous for trucks travel in close proximity. visadent trump's h1-b policy have gone largely unchanged, and while wholesale another year,ait president trump remains an advocate to reform the h1-b visa
program. other countries could reap the benefit, one of them india. we spoke with the next is us cofounder. benefiting greatly from reverse brain drain. now we are seeing a big out the of talent. of the talent is greatly beneficial to india. are they largely indian born who come here to be educated? u.s. bornking at hubs?ng at other tech >> maybe they worked in the u.s. for a few years, then want to go back to india and the opportunity might be better for them. we don't see too many people born in the u.s. go to india,
but i think that would change in the next 5-10 years. caroline: what about putting off those who are coming here to be educated? at came over to be educated california, stanford and the like. did you think this could stop people from coming to the united states? >> what is stopping people are two things, opportunities in india after school in india, and secondly, the negative feeling being created about immigrants and the u.s. caroline: bpr is already the pr is already hurting? >> it is hurting big-time. caroline: perhaps these clouds of bad pr and concerns about immigration, where are the opportunities? which sectors are hot in india? , if you look at
silicon valley startups, 30% of startups have indian founders. if you're based in silicon , or beijing,i there is really not much difference in what you are able to do. how does it really matter? you are distributing globally in any case. mobile.epreneurs are they can do anything come anywhere. , anywhere. caroline: are you starting to -- i spoke with the adobe chief executive, and he said we will go where the talent is. will we see more and more satellites set up in india and
china to harness the right tech talent? >> they are doing that already in a major way. microsoft has 10,000 employees, ibm has more employees in india than anywhere else except the u.s. it is the right thing for companies to do. able, financing here, infrastructure here, culture here that can promote technology in a big way. if we lose the lead, the world will be a loser, so it is incumbent on us to keep the u.s. in the forefront. caroline: we have seen some deep pockets in china going into india. ,re you seeing more competition not only u.s. vcs, but china? >> yes.
competition is good for us. they are our partners and competitors, so net-net, it is positive. reports: facebook now 170 million users in the region, up 42% jump from 2015. facebook has been working on increasing its presence by laying down 500 miles of fiber cable and uganda and creating why try hotspots in nigeria and kenya. -- wi-fi hotspots in nigeria and kenya. mcafee is making a comeback nowr intel bought it, and the two are parting ways. mcafee will be a standalone company. jason kelly set down with brian taylor. cybersecurity is one of these
existential threats to our digital lives. it threatens our institutions. mcafee is one of those businesses that is there to protect us. it is the mission of the company. we think it is an important mission. we are thrilled to be part of it. tel.t was part of in now it is a standalone company. what gives it the advantage there? were not the natural honor for a $2 billion cyber software company. in a moment where they were reflecting whether they want to double down and reinvest or sell. we gave them an alternative, a partnership, but we refocused on the core business. >> what does the private equity playbook look like here?
what are the levers you can pull? when wed 16 months from started this deal to win a close a strategyand we had that is our strategy, keep pushing forward the product set. ,t is a great set of products and there making it better every day. second, we have deep relationships with great customers, but it is broadening that with our customers. of cybera landscape security software companies we can buy and put through the distribution channel to deliver value for our customers. >> you think you can build this buysically and maybe some out there. we think we have the platform
to buy those features sets and deliver value to customers. >> you have oversight of software and technology at tpg, and not just buyouts, but growth capital. what you see in terms of themes beyond cybersecurity? >> you are correct. we do large-scale capital deals and smaller growth deals, $15 million to $1.5 billion, and we see the whole landscape. we have been working together anyover a decade, and at time we have 8-10 themes we are pursuing in the marketplace. pursueategy is to proactive themes, build proprietary relationships around those themes, and we find it creates interesting opportunities. >> what is the one you are most excited about beyond cyber? >> health care.
they are retooling their back office and there are import and software business is being built to deliver on that promise and we have been pursuing that for a number of years and we have just closed her first major investment and we have others in the works now. >> competitively, who do you run into most in the market? these seas, private equity, strategic, all of the above every private equity firm says they have a software practice. we have been together as a team for 10 years, and if we are proactive and thematic and how we perceive the market, we are not facing a lot of competition. there is a big enough market us and the just seller trying to build a partnership instead of a transaction. ,> when you look around here
and beyond around the world, how do you feel about valuations? 2003, we hit $3 billion in software buyouts. was 55% of the overall equity industry. people have come to appreciate these businesses, and that is reflected in values. software will penetrate the enterprise and revolutionize how we will do business. side, the ipo window, active buyers out there? is it open? >> it comes and goes. our strategy is not predicated on the ipo exit. in thethe right moment
right buyer at the right time. we focus on great businesses and let the exit focus on itself. i don't focus on the macro. i focus on the micro. interesting opportunities and can we drive value around that. caroline: coming up, tim armstrong on what his company will look like. and details on the newly announced a vision called oath. we will have all the details behind the big win. this is bloomberg. ♪
field, one company's core the rights to stream thursday night football. it is a huge win for amazon. amazon will pay $50 million for 10 games, a significant increase from the $10 million twitter paid for the same number of games last season. amazon will offer the games for free to its amazon prime subscribers worldwide. freeames aren't completely cents prime membership costs $99 a year. offered thursday night games to everyone for no cost. part of twitter's appeal was having a social element while watching it on the same screen. twitter has lost key executives, cut staff, and explored a sale.
tv broadcast averaged 15.8 million viewers, so amazon has a lot to prove. its first major push into live streaming and sports. the e-commerce giant may just be getting into the game, but for now, amazon can take a victory lap. willine: also, verizon announce a new division called oath that coincides with the l unit withts ao yo its yahoo! asset. the unit willsaid oversee 20 branson reach one billion consumers. brands and reach one billion users. brand that allows us to promote yahoo!, aol, .echcrunch, and movie phone
some of the reaction is short-term thinking and we are a long-term company. we are egg believers in brand and believers and a long-term commitment to talent. >> when you get this much attention -- people have been saying, how much did they spend on this. >> we developed the brand and house. we got $50 million of rand marketing for it. -- brand marketing for it. apart from the branding and marketing, how is it going? how will this merger work? and can you run up against your old shop of google and facebook? >> first, let me start with verizon. verizon has a long-term strategy
in the media space. we will touch over one billion consumers. we are in a good position to the largest house of trusted brands in the space. we are focused on a business model, brand advertising. and space.en lane >> is marissa mayer going with you? the executivening outcomes in terms of leadership, which we will announce in q2. marissa will stay through the next phase. caroline: that does it for this edition of "best of bloomberg technology." we will bring you the latest in tech throughout the week. tune in each day.
carol: welcome to "bloomberg businessweek." i am carol massar. oliver: i am oliver renick. hackathon hustlers making a living from coding contest. on thefe is really like border between the united states and mexico. oliver: all that ahead on "bloomberg businessweek." ♪ carol: we are with the editor in chief megan murphy. so many stories, double issue. you look at hackathon's. s.