tv Bloomberg Technology Bloomberg July 26, 2017 5:00pm-6:00pm EDT
the repeal only plan. lawmakers are still in the early stages of a floor debate on health care as doubts continue to surface that republicans can get the 50 votes needed to the 50 but he did to pass any measure. >> it is a cruel and arbitrary humiliatedesigned to transgender americans who have stepped forward to defend and preserve our country. weets revealss t the president has no respect for the men and women who risk their lives to defend our freedom. mark: pelosi and the department of defense revealed that the department of defense spence 20 times more on viagra -- spends
10 times more on viagra than transgender care. when the blackid hawk helicopter was shot down, she did not care if the troops sent to rescue her were gay, straight, or transgender. ♪ this is "bloomberg ."chnology the $2 billionst mark. meg whitman is stepping down from hp. could this be part of a bigger move? plunging?s stock
first to our lead. president is expected in a few moments to announce that the taiwanese manufacturing giant plans to open a factory in the united states in wisconsin. the facility will be located in the home state of house speaker paul ryan. is expected to employ 3000 people at first and expand. our bloombergg in reporter who covers the white house. what exactly do we know? that thewhat you said, white house is trying to get as much press for this as they can. they have a big event. and is not something they will just have foxconn announce in a press release. issues thatof those
the president is strongest in, jobs, manufacturing. this is what the administration got here on, so it makes sense for them to talk about it. they started off the day distracting from all of this with these tweets about transgender military service members. he threw in another tweet about his attorney general that distracted the conversation that could have been leading up all day to this foxconn jobs announcement. emily: foxconn is the maker of apple products. we do not know if this factory will assemble any apple products. what could this mean for u.s.-china trade relations? reporter: we have been reporting screens.could be lcd some could involve sharp. it was reported yesterday that there will be three apple manufacturing plants opening
here. the could be something to come from apple. 3000 jobsere is that are a significant number. this goes to the president's agenda of what he said he would do, bring jobs back to america. this is a business decision for foxconn. the numbers have to make sense. for other companies, it is clear, and business consultants say that this pressure from the president to encourage companies to come to the u.s. is one of the factors driving them. that political pressure is sometimes the nudge that they need. emily: we will come back to you in a moment when we hear from the president. facebook turned out faster than expected quarterly sales growth, fueled by strengthen mobile video advertising. the social network has over 2 billion monthly active users and
is driving revenue faster than other tech giants. facebook has been investing in original content, with the first chose coming in august. i just got off the phone with their spokesman who explained the strategy. >> we are seeing a lot of content shift to mobile, and our goal is to be a platform for content providers to find their audience and monetize. we're doing a lot of investing to kickstart the ecosystem. we have a lot of video views on facebook, but not really that kind. we think that kind is important. over the long run, our goal is to be a content platform. emily: shares are at an all-time high after second-quarter results. author ofpatrick, "the facebook effect." your first reaction on the top line results? >> ho-hum, just another quarter
with 40% revenue growth, profits going through the roof, everything doing great on mobile. execution is their middle name. fortunately or unfortunately. they have got it down. emily: listen to what sheryl sandberg told me that drove this quarter's results. >> we had a strong second-quarter, and that is case on increased engagement, and increased ability to work with marketers so that they can reach their audiences. we are up 17% year-over-year. that is exciting on a large base. the and revenue is up 40% year-over-year. we are announcing that we have over 15 million business profiles on instagram. that joins a 70 million business pages we have on facebook. emily: they did not break down
it seems revenue, but to be contracting meaningfully to the bottom line. that will bring in 3.2 billion dollars -- that is about -- we are hoping to receive some calls about how some of these other platforms are contributing. what do you make of the fact that facebook is experimenting, yet we do not know how they are contributing overall? guest: i don't think there is any question that instagram is proving to be a commercial success as well as a user success. it is an addictive platform. my 25 euro-dollar cannot stop ughter-- 25 year old da cannot stop using it. everyone else that i know at that age are incorporating instagram in a deft way. i use it and i am surprised the ads are not offensive.
i thought i would not like them, but they almost seem like they belong there more than on facebook. something about the visuals of instagram is perfect to the moment we are living in. emily: we are getting more headlines from the facebook earnings call. they are talking about artificial intelligence, and how it will be used to flag inappropriate content. facebook has said they will hire thousands of workers to moderate this content. that technology will be able to do a greater part of this job. how great of an challenge will in termsn the future, of balancing humans and machines? guest: it is a huge challenge, though facebook is investing a lot and doing excellent work in artificial intelligence. we are not at a point where machines do what people do. they are taking the burden off people in key areas.
ai will make that accelerate. everything in tech is an arms race. ai will help facebook monitor and manage the content that viewers see. challenges will grow because the nature of both content from bad actors, as well as weird content by ordinary users will continue to get more complex. the tools needed to combat it will be more complex. these will be an analyst -- they will chase after perfect success. facebook has had issues with the content on it. there are interesting questions about how they make the decisions about what should and should not be allowed. it is helpful to have ai but it is not the end
the news comes on the heels of our report that whitman is on the short list of candidates to fill uber's vacant ceo spot. they are hoping to name a new ceo by september, and have noted -- and have shortened it to fewer than six contenders. that is according to a person familiar with the matter. joining me now is eric, finally has real information. reporter: i could not stomach coming on without some sort of answer. what do we know about meg whitman? reporter: she has long been someone in my mind who was a possible candidate. what do we knowshe has been ad, she is close to ryan graves, their board member and former ceo. emily: she is also an early investor. reporter: right. she has been in the mix. she has the statesmanlike reputation. a lot of the pieces you would imagine. but shet a guarantee,
is definitely in the mix, one of five or fewer candidates. the hope for them is to get it together before labor day. emily: david, what do you think of meg whitman? guest: i was just thinking, listening to eric, there is an interesting analogy between what meg whitman did well, which was run ebay, and uber. they are both marketplaces. they are both places where you bring buyers and sellers together. i think it is the kind of company she could run better than she has been able to run hp and hp inc. you might say she is ut shetionally too old, b valley that are in, an sheep -- veteran, and she brings a lot of the right characteristics to the job. i think she would be a strong candidate at a minimum. emily: valley that are in, an sheep -- one source is reporg that meg whitman is unlikely to
take the job and may not be a top contender. your reaction? reporter: she is definitely a top contender. hp's statement is that she will be here until the job is done, which is super vague. rico and i disagree on this one. cara said she is in the mix. there is a little bit of shade, but we'll see. i'm not saying that she will definitely be the ceo, and these things get some technical, when you are friends with people in the mix. a lot of gains here. emily: us talk about travis kalanick getting the -- getting legal representation. reporter: two attorneys from attorneyformer u.s. who dealt with what color crime. obviously, he needs his own counsel now that he is not the ceo of the company. he has different interests, and
needs his own advisors. emily: how serious could this impact travis personally? reporter: right now, it is a civil lawsuit. we have no signs that it escalates to -- it is about uber. uber is named and he has a big stake in uber. we have to wait and see whether anything else comes of it. emily: the problems facing uber are many. ceo,lawsuit, lack of a cultural issues. do you think that uber's culture can be fixed? guest: i think any culture can be fixed. certainly this one can. may be any culture could not, but if they copy with enormous momentum, with than tet -- if a company with enormous moment -- in ournterest
enormous a compliment. -- accomplishments. you need someone who can rally the troops. that would be hard for anybody. i would imagine that uber is a highly demoralized company. because the business remains so good, people are willing to keep foraging -- forging ahead. they are looking for leadership, and a lot of things need to shift. somebody needs to lead that company with real vision and real leadership capability. emily: what are your employees telling you about what you -- about what they want? reporter: the reason we have this six-week timeline is because they are trying to give employees hope in their all hands meeting, that there would
be an end point to this lost in the wilderness period. there is hope that they can have leadership. they are trying to be optimistic about this committee-run company, but it needs to have huge ambitions if it will meet its valuation. they had to do stock offering changes to keep employees happy. it is a workforce that needs to be reassured. it is a work in progress. emily: lyft, nipping at the heels. we will have another candidate tomorrow. david kirkpatrick, you are sticking with me. better work ceo, chris duggan, is stepping down from the head of the startup he started. hes under a lawsuit alleging sexually harassed a former employee. director will serve in the
of big data with artificial intelligence, and a new ecosystem. it is the key for the future. a.k. will enable new medical solutions. to limit loss in surgery. anden pain in treatment, gradually reduce the cost of health care. foxconn and sharp are committed to building in america this most ecosystem.k. why do it here? yetas invented in america,
thank you and your leadership teams. you,ld also like to thank mr. jared kushner, the white house office of american innovation, for your hard work to make this investment a reality. speaker ryan, thank you for all your advice and support on capitol hill. pence.esident we have a strangers. facility in your home state. your support is appreciated. mr. president, we just met i nside. [laughter] 15 minutes to
talking. i met you three times. each time, you have emphasized the importance of manufacturing in america. in providing high skilled jobs for american workers. i feel confident to say this is a win-win-win strategy. mr. president, with you, the vice president, the speaker, and congressman walker. byongly supported americans, we are confident that ans -- will be a great success. [applause]
i know that you are committed to grow manufacturing in the united states. because of you, we are also committed to great jobs for the american people. mr. president, the eagle flies. thank you. [applause] >> first off, thank you to the president for hosting us. you will hear from him in a moment. mr. vice president, my good friend, and former colleague, to the speaker, my friend and longtime legislator. for all of you, to terry, and
your team, louis and alan, we spent a lot of time with your great team. we are really appreciative. personally, i want to say, terry give a great speech there, but he us, he and bod -- embodies a success story in terms of hard work, determination, and building the company with a few thousand dollars in 1994, starting out by building the knobs for the black and white tv. some of you may render. gallagher, i am thinking of you. building the atari joystick. i can member that. -- remember that. now, being one of the leaders in the world. we are thrilled to have you here and to have your success story part of the american success story and coming to the state of
wisconsin. terry, thank you. [applause] walker: it is a great day for america, a great day for wisconsin, and a great day for foxconn. [applause] today, we are announcing the single largest economic development project in the history of the state of wisconsin and one of the largest in the history of this country. [applause] this will be the investment from a foreign-based company in u.s. history as measured by jobs. this is literally number one. thank you, terry. foxconn, the state of wisconsin
will, tomorrow, enter into a memorandum of understanding where foxconn will invest $10 billion, excuse me. [laughter] i'm glad to see that speaker ryan is keeping track of millions and billions. [laughter] $10 billion. for a minute i thought i was on a tv show. $10 billion which will create 13,000 jobs in the state of wisconsin. [applause] turn, the state of wisconsin, to fulfill that commitment, our partnership with terry and the foxconn team, will invest $3 billion in economic incentives to make that go forward. these 13,000 jobs have an
average annual salary of over $53,000 plus benefits. [applause] in addition to the 13,000 jobs directly created by the foxconn investment, the project is expected to create at least 22,000 indirect and induced jobs throughout the state of wisconsin. the foxconn manufacturing campus will be a combination of a variety of buildings totaling 20 million square feet. think about that. that is three times the size of the u.s. pentagon, or for packer 11s, that is big enough for lambeau fields inside of that space. [applause] jobs10,000 construction will be needed to build that campus.
we will need people from all across the state of wisconsin to help. the firstll be facility in the united states that will build lcd panels for everything from the automotive business, to health care, to entertainment. this is some of the most exciting technology in the world. going forward, i want all of you, but particularly the president, to know that these panels will be made proudly and america, particularly in the state of wisconsin. [applause] willnn's new ecosystem transform wisconsin. terry and i came up with a name. we call it wisconn valley. [applause] --conn, with two n's, will
the region we will call wisconn valley will be the new global home to cutting-edge technology and innovation. it will help us attract top talent from across the country and the world. wisconn valley will help us with one more tool to keep our employedraduates .ithin our borders terry fron to thanking want tonn, and sharp, i thank the president of the united states. as terry alluded to, the president in late april, met with terry -- emily: wisconsin governor scott walker talking about a new facility that foxconn is opening in wisconsin.
we heard from the foxconn chair, terry gao. they plan to invest $20 billion in the united states by 2020 to create 13,000 jobs. david, one thing that we do not know is whether any of these products produced at this plant will be apple products. we know that they will be lcd panels, which may be used in some apple products. trump has been hard on apple and talked about convincing apple to move manufacturing efforts to the united states. what is your take? guest: i don't know if it has anything to do with apple but it is an impressive announcement. it is an advanced plant. the lcd's they are talking about is like building gigantic chips. if the state is investing $3 billion in incentives, the
state, local, and federal together, 13,000 jobs, that is $230,000 per job by my rudimentary math, for jobs that he said will pay an average of $53,000 per year. this is great, and it suits the agenda, paul ryan's agenda, and governor walker's agenda, but it's not cheap. it looks like foxconn is getting a good deal. emily: we are waiting for the president's remarks. we will come back. david, thank you for sticking with me. we will speak with tom leighton in an exclusive earnings report. he will talk to us about jobs. this is bloomberg. ♪
emily: the cloud delivery platform akamai reporting better-than-expected second-quarter revenue. they boosted their top line with year-over-year increase, but forecasts missed estimates. ceo tom leighton joins us now. how do you explain the slowdown in traffic? guest: the important thing to realize -- we have lost some share to do-it-yourself efforts, but outside of that, our traffic growth is bigger than the internet as a whole. the important thing to take away from the q2 results are that now, our performance and
security business, the majority of our revenue, is very profitable. growing at 16% year-over-year. our security business is almost $500 million. we expect it to be $1 million in the next five years. emily: you mentioned that revenue growth is strong while slowing down. is that just the law of large numbers? are you past the adapter stage? guest: crowing at the rate we -- growing at the rate we are is good. we are confident we can make it a $1 billion business. we are just now launching our first two enterprise security products. we think they have more runway than the existing web security business. emily: when you think we will see more products contributed to growth? guest: i think next year. they are on a track record that
exceeds what we did in the first year with web security products. emily: you see a lot of what is happening with streaming services like sling tv, youtube tv, hulu live, etc, can you give us any color on how these services are being adopted? guest: that is a great question. we deliver for a lot of those companies. video is the majority of traffic on our platform, growing at a good clip. that makes us optimistic about the future of our media business. the question is, how fast will the adoption be? everybody in the industry thinks thet over a period of years, majority of video watching will be on the internet. emily: what is your take on the takeover of the fcc and the argument about fast lanes or no fast lanes, the big internet
giants going up against the at&ts and verizons of the world. guest: there has been a shift fr om the big content folks to the big carriers. a lot of rules are going away. in terms of akamai, we are neutral on that. we were not regular did before or now. this is find from our perspective. emily: what does it mean for innovation? guest: i think it will be fined for innovation. this books -- this puts us back to where we were before. there will be less legal engagement. i think that things will be fun. emily: just hearing out of washington, foxconn announcing they will open a manufacturing plant in wisconsin greeting 13,000 jobs. a big victory for president trump, who i am hearing is coming up to speak. let's listen in. [applause]
pres. trump: thank you veyry much. i want to thank our great vice president. thank you to speaker ryan, we are working closely and getting a lot done. governor walker has been so tremendous, from the first time that we announced that terry had a small amount of interest going into this country some place. when you give that to governor walker, it is pretty much a done deal. [laughter] ron johnson, senator. he has been so helpful to us on a thing you have not heard much about recently, healthcare. i think we are doing ok, ron. i'm hearing good things. secretary mnuchin, secretary ross. all of the congressman, the great congressman and senators
that we have in the audience, thank you very much. friend,specially to my one of the great businessman anywhere in the world, terry gao. [applause] i would see terry and say, you have to give us a couple of massive -- these are massive places that you do such great work with. he will be doing that in a state that is close to my heart, wisconsin. we are very happy. big job producers, anywhere at anytime. it will be fantastic for the
people. it a great day for american workers and manufacturing, and for everyone who believes in the uncept and label "made in the sa." [applause] today, i am pleased to announce that foxconn, a world leader in manufacturing for computers, communications, and consumer electronics, one of the great companies of the world, will build a state-of-the-art manufacturing facility for the production of lcd panel products in wisconsin, investing many billions of dollars, right here in america, and creating thousands of jobs, american jobs. that's what we want.
[applause] another big investor in our country, steve wynn. he is raising so much money for our great republican party. andrea, please stand up. thank you. thank you, steve. you have done a great job. thank you. foxconn will invest in southeast wisconsin, while a larger facility is constructed over the coming years. that facility is currently under negotiation. it will be about the biggest there is anywhere. the company's initial investment of more than $10 billion will minimum,00 jobs at a
with the potential for up to 13,000 jobs in the very near future. minimumthe construction of this facility represents the concern of lcd electronics, and electronic manufacturing to the united states, the country that we love. that is where we want our jobs. to make such an incredible investment, chairman gou put his faith and confidence in the future of the american economy. if i did not get elected, he would not be spending $10 billion. [laughter] [applause] his great company -- you see what i am seeing, has seen our administration's work to remove job-killing regulations. he has been watching. to hire american.
to pursue the steps necessary to revitalize american industry, including repealing and replacing obamacare, we had better get that done fellas, please. we need that so badly. cutting taxes, fixing our trade deals, and rebuilding our infrastructure. we will be submitting an infrastructure bill in the not very distant future. we will be submitting a tax bill in the very near future. [applause] when this investment is complete, foxconn has the potential to create more manufacturing jobs than we have seen in many decades. chairman gou, i thank you for your investment in the american
worker. down.ever let us terry gou told me that he believes in america. he really believes in america. entrepreneur,t one of the greatest in the world. he won't say it, but i will. one of the great entrepreneurs of the world. he has a real bond with the administration and americans. foxconn joins a growing list of industry leaders who understand that america's capabilities are limitless, and that america's thatrs are unmatched, and america's most prosperous days are just ahead. we are going to have some very magnificent decades.
thank you forthank you for bein. emily: president trump taking a victory lap at the white house, talking about the foxconn chair, theirgou, talking about commitment to invest $10 billion in the united states by 2020 to create a manufacturing facility in wisconsin. initially it will create 3000 jobs, but president trump making a point to mention this would not have happened had he not been elected. he also mentioned the embattled health care bill, thing that needs to be done so badly. i will bring back in tom leighton from akamai. what is your take? guest: anything that brings jobs to the u.s. is all good. at akamai, we have created several thousand jobs in tech. the majority being in the united states. in tech, one of the issues we have is gender balance and diversity. that is an area where we are making special efforts. we have created something called
the occam i technical academy. akamaiesigned -- the technical academy. it is designed to provide training for women vets. the hope is they will come to akamai when they are done. so far we have been pleased with that. emily: great to have you back here on the show. we will continue to monitor any headlines from president trump's remarks, right now at the white house. u.s. regulators finally weighed in on initial coin offerings. we will talk to the ceo on the type of coin offerings. this is bloomberg. ♪
the sale of digital assets must now adhere to federal security laws. i want to bring in caroline hyde from london. the pace of future coin offerings, and the growth of assets. ours bring in the ceo, guest. brad, you were not surprised. the sec have been eying this up. guest: i do think it is a surprise for anyone paying attention. for decades we have had securities laws developed for the protection of consumers, investors, and also companies. the name itself, an initial coin offering, and ico, sounds like an ipo. i have been fond of saying if it walks like a duck, and talks like a duck, it probably is. now the sec will regulate it
like it is a duck. it is good for the industry. caroline: what does it mean if you are in the u.s., looking at doing an initial coin offering, what does it mean for the new information that you have to give your investor base? yout: what it means is, need to have the same kind of thoughtful process that goes through any securities offering. what was happening -- you had over $1 billion raised through initial coin offerings. i think you'll see that slow because there will be discipline included in that process. disclosures, transparency, and making sure the investors know what they're buying, and what they should expect going forward. it is operating in a gray area for awhile. the sec is providing clarity around that. it will be good for the industry at large, and separating what
would be at the edge of fraud, to better use cases. ultimately, digital assets have a valuable role to play. the more utility you can derive, the more valuable it will be. in some of these token offerings, it was unclear. caroline: will it tried it off shore? the isle of man has been known as bitcoin island. could you do offshore offering? guest: sure. people have talked about how you can just avoid u.s. regulation, but i think governments around the world will recognize it. governments around the world have protections for companies, consumers, and investors in terms of how securities are offered. they can go offshore and focus on non-british, non-european investors, but i think that is a shortsighted opportunity. we are focused on, how do we
work with regulators, governments, and banks to take advantage of a new asset class, and the technology that can accelerate the engine of commerce globally. caroline: you are working with the bank of england. how are banks adopting this? are they looking to build their own ecosystem? their own block chains and areas of growth, or are they adopting ripple and your own xrp? guest: ripple is working with 90 banks around the world. for starters, we are working on a cross-border payment solution. you are in london, if i wanted to send you $10,000, the fastest way to get the money today is to drive to san francisco's international airport and fly it to you. you can stream video from the space station, but you cannot move your own money. if i were to use the existing
infrastructure, it would take me three to five days, and it would be expensive. we think we live in the world of internet, and you expect information on demand. their is the reason why you should not think about value and money the same way. we talk about the internet of value and how we enable that. bankers -- trying to start up their on things. i'm sure this will keep growing. that is brad, the ceo of ripple. emily: caroline hyde in london. paypal is rising in late u.s. trading. the company boosting their adjusted earnings forecast for the whole year. paypal topped earnings and revenue estimates for the second quarter. president trump's military transgender ban is meeting opposition from several tech leaders. tim cook tweeted his response this afternoon saying, we are
indebted to all who serve. discrimination against anyone holds everyone back. rve.themse other ceos treated their -- tweeted their disappointment on trump's transgender ban. that does it for "bloomberg technology." we are live streaming on twitter. check us out weekdays. find a clock p.m. in new york, 2:00 p.m. in san francisco. this is bloomberg. ♪
>> from our studios in new york city, this is "charlie rose ." charlie: we begin this evening with politics. president trump deals with speculations that he will fire jeff sessions. he said he was a disappointed in sessions. news, thepolitical senate voted this afternoon to move forward and begin debate on the gop health care bill after by's president pence -- v