♪ >> i am cory johnson aim for emily chang, and this is the best of bloomberg best. coming up, the brexit vote. we'll find out what it means for investors. and our exclusive sit down interview with billionaire investor mark cuban. and we sit with the ceo of box and ask how he is preparing for how his company is

preparing for a european square. first, how the markets were spooked by the brexit vote. investors are questioning what this means for london's future as the tech hub of europe. with a british on twitter who is actually happy about brexit outcome and voted to leave himself. we will also talk to the ceo of who know has to worry about u.k. regulations. take a listen. emily: first, why did you vote leave? leave? you vote -- and the health service are not allowed to be in britain. had britain been in europe 40 years ago, he would not be

allowed in, simply because if we look at the system, 80% of migrants come from the eu. no scope for highly skilled and highly talented migrants from the commonwealth, which we had a rather interesting history with, and refugees. we need the extra supplies. the european have system, which says we will take everybody from a certain area and exclude the rest of the populace or have what i am hoping for and what many people is ame are voting for system that allows highly skilled brilliant talent from all over the world to come to london. given how financial markets are reacting to this comment do you have any sense of regret, now that you have seen this gasket -- the cascading effects? leave: anyone who votes

well and goodknew there would be uncertainty. that is how fed up we were. you had lots of people going on to, searching "what is that you?" 26 yearsecause in the of the eu, they have not done a good job of selling to the british or most eu member states what the eu was. so it will be a short-term a short-term rough ride. but out of it, we will, out stronger. no one comes to britain for the good weather and for the good food. they come for our mind and institutions. on that note, you know him -- you work with a number of huge businesses that work in the eu and the u.k. what is the impact? >> there is a commonality. if you look at the average tech company, they have 700 different vendors they run their business on. a small percentage are based in

the u k a u.k. abbott iran's its business on applications built from around the world. the eu, north america, south america -- that will not change. one is the common teams i tell my customers is business as usual. , prevention laws. privacy laws. they are not changing. if you transact with an eu organization, over 50% of the u.k. has exports to the eu. that will not change. you still have privacy regulation. you still have to adhere to them. was a -- itit, it will stay the same. there was once we that says the u.k. will be left attractive for startups. a relief that up is from eu overregulation could make the eu more chapter for startups. what do you think? saalim: i could not agree more.

people like mark andreessen do not invest in britain. so i do not know what he is doing talking about my country. emily: he talks about a lot of things. [laughter] inlim: most investment britain comes from british funds. brexit will double or triple their investment into british tech. so i can see that being relatively positive. if hiring becomes more difficult -- one in three u.k. workers, from outside the country -- if data regulations become more confusing and more difficult, one extreme scenario that has been discussed is the idea that london's tech hub could migrate to berlin. could that happen? sanjay: there is a lot of inmate talent in the u.k. you look at our organization -- we hire folks born and bred in the u.k., some have migrated and

some are not. we are staying in the u.k., but we also operate in germany and amsterdam. that will not change. one of the things you alluded to is the tech talent that you acquire from other areas of the eu. my feeling is there will be a lot of tech talent in the u.k., regardless of where it comes from. you take of the comparison from the brexit sentiment to donald trump? a lot of people did not admit they voted for brexit like there are some people who may not want to admit they will vote for donald trump? by mostdonald trump is accounts, a little insane versus a different way of running our country. they are not the same. let's be absolutely clear. but the modernization -- the motivation is on the same path. britons are financially fed up top 5% or top 10%

are getting all the wealth but the rest of the country is getting declining living standards. people are looking for change. in the u.s., the political establishment is not living up to it. i hope this is the wake-up call to politicians in europe and the u.k. to say we are not actually doing what our people want. that is why they have done this. we should listen. cory: saalim chowdhury and sanjay beri. coming up, the dallas mavericks owner tells us what he things up presidential hopefuls hillary clinton and donald trump with some choice words. and how do cloud computing companies go through records were changes following the brexit vote? ♪

cory: billionaire businessman mark cuban has some interesting thoughts on pretty much everything, including brexit. we caught up with him on the set of "shark tank," and on the top

of his mind, brexit. absolute uncertainty. that is why it -- and i think we're in a very manipulative situation now. because there is a political aspects on both sides of the ocean. and how corporations deal with those circumstances are going to influence what happens going forward in the u.k. and also here in our election give i am talking about is if all of a sudden we see jpmorgan and all of these different date financial companies say we are just moving anyone to berlin, now there is a tangible impact on jobs. that will influence the conversation. it is the same in the united states. we are talking about all of this versuslism, trump

secretary of state clinton, if areof these businesses reacting -- if the united states is open and we adhere to our treaties, then all of a sudden, tech companies in particular in the u.k., who want to be able to work with the european union and have the treaties already in place, they may come here. if you see a big movement of tech and bunnies here because there is no better tech anddation and employee base customer base, we may have a wholesale inflow of those kind -- those companies. which on the one and says the u.k. price it was a big mistake and also sends a message to our economy and u.s. voters that protectionism and cutting off his trees would be a huge mistake. >> you mentioned immigration. that is a big part of it in the u.k. and the nationalistic discussion led by donald trump. mark: immigration takes

different forms. ,here is high and these is people being concerned about their lives and their jobs. i am not a fan of donald trump's approach. i have invested in companies that allow for and create the ability to test and evaluate people before. we work with israel and south american companies that say thise you come into country would -- into this country, we will ask a series of questions. we can help at around 80% acuracy whether you have negative impact. whether you are a terrorist. isre is technology i think the first step that everybody is ignoring. i would take a completely different approach. cory: are you concerned about the nationalistic tone? mark: absolutely. it is scary.

hate never accomplishes anything. hate. has ever won with hate does not solve problems. hate does not improve the economy. hate does not protect our people . it does not protect the borders anymore. we have to be very careful about the verbiage we use because there is no win their -- there. got mark cuban's take on this turbulent election cycle. this is a guy who know something or two about billionaire tax returns. mark: irrelevant. i know for my taxes, when it is tax time there's a big living , room table that i have and there are big stacks all around the tables and i just look at the signature pages and it takes me 45 minutes still to sign all of that stuff. any previous years to this last month i couldn't have told you , how much i made and what were my taxes. it's certainly not a reflection on net worth or a reflection on how much people give to charity.

so i do not care if they released their taxes. >> so why'd you think he is not releasing them? i have no idea. it may be that it was a down year for him. you may have said i made a fortune on the market but not by profits. he may have had a negative income. it were not match up to his brand. so it doesn't matter. >> you made some comments recently suggesting he's gotten dumber has time has gone on? mark: yes. that is pretty straightforward. if you look at how he's managed his campaign, he won from maybe i'll be the nominee to i'm the presumptive nominee before the others fell out of the race. if he was smart, he would have started to learn that in a national campaign, there are certain things i'm going to have to do, certain still sets i'm going to need to make me smarter about running a national campaign. so did he go out and hire people who can create a ground game? no. did he go out and hire people to help him on an advisory basis to

help with the political machine? that is required to get the vote out. he tried, and all of those people keep getting fired and turning over. rather than getting smarter and bringing in the help that's needed to run a campaign, he's done the exact opposite. and where we have gone to is him pretty much being dependent on his kids. they're good kids, smart, i have been them, they are impressive in every which way. but i don't know that i'd want them all of a sudden coming in to run a campaign. this isn't "shark tank." where it is like ok, you can help run this company. we're talking about running a campaign to become president of the united states. getting stupider means not being able to hire the skill sets to make you smart. cory: i had dinner with some tech ceos recently. people you know. when we're going around the table talking about politics and the vice presidential choices for hillary. one of the c.e.o.'s said you. mark: good.

cory: seriously. mark: good. it's not going to happen, but you never know until you take the first step and you put it out there. anything is possible. but i think tech illiteracy at the top for both candidates is a huge problem. we talked about how do you deal with immigration, with radical islamic terrorists trying to come into the country from where ever. there's no way just physically you can interview everybody. you're going to have to use tech. whether it's facial recognition, there's a variety of other options. tech is going to get us there. somebody has got to at least start to understand those things and how they apply to all the big issues. you talk about dealing with the future. autonomous cars, robotics. ai, machine learning. jobs are going to disappear. there are going to be jobs are gone, just like making records in terre haute, indiana were gone. making cameras for kodak in new

york are gone. coal in western kentucky. those jobs are gone. the question is what are you going to do in anticipation of the fact that we may not have replacements? notou do not anticipate, do understand the issues, you can't come up with solutions. that's a relevant problem that no one has the absolute answer, but at least i could help them understand that and come up with solutions. exclusive interview with marc even. still ahead, that challenges the cloud vote could do to computing companies. we talked to box ceo aaron levie. ♪

burton's surprise vote to leave the eu could have a huge impact on cloud computing. cloud providers like amazon web service can currently ship data throughout europe without any interference, but operators may need to have separate regulations. emily chang spoke with box ceo

aaron leavitt who uses amazon to europe. emily: does frexit change anything for you? aaron:aaron: our solution is no matter how much fragmentation happens, we will still be able to help our customers store their data in a way that keeps them compliant and safe in whatever regulatory environment they are dealing with. we launched a product called box zone, that lets you store data in germany or ireland, and we can support london in the future if we want, but we have already architected the solution to work in a post brexit world. that is separate from our philosophical views on where they're registered of happen or not. emily: what is your philosophical view? aaron: we generally believe the world should get more open and collaborative, fewer walls and more bridges. our rough sentiment is that we were against brexit. but we understand there are lots of different reasons why things voted one way or another.

emily: do you see any changes in crowd data center partnership involving amazon and ibm? aaron: not because of brexit, i would just say this has general,een a trend in whether you look at brazil, or tokyo, or canada. all of these places have different privacy laws and requirements. it is the expectation of a cloud , you will haver to acknowledge those to be successful in the future, you will have to work in different regions. our job, where our value proposition comes in, we want to make sure it is as simple as possible for the enterprise. if you are ge, in 30 or 40 countries around the world, just because there are different privacy requirements and laws around residencies, doesn't mean your people should be slow down. that they should have a worse expense to get a job done. that is our job. emily: do you think there will be different guidelines? aaron: there will be. our job is to extract that complexity away from the end

user. emily: in "usa today," you say that you think hillary's plan hits on every count. we recently spoke with mark cuban, who said this. mark: i think tech illiteracy at the top for both candidates is a huge problem. you know, we talked about how do you deal with immigration, how do you deal with radical islamic terrorists coming into the country from wherever. there's no way just physically you can interview everybody. you're going to need to use tech. emily: he thinks trump and hillary are tech illiterate. aaron: when was that? emily: that was over the weekend. aaron: ok. that was before her policy speech. it seemed like he was referring to how you use technology to prevent terrorism, he wasn't talking specifically about things like patent reform, things like how do you make sure you have better stem education throughout the country. that is what hillary's initiatives are focused on.

how do you have tech and innovation policy so you can make sure america stays at the forefront. i don't think it was meant to address the terrorism issue mark was a fairly talking about. emily: so what do you think a hillary clinton white house would mean for silicon valley? and what would a donald trump's white house mean? aaron: it is too scary to think about a donald trump white house, so let's go with hillary. obama set the country up on really good footing from additional policy standpoint. if you think about his investments in the u.s. digital service, and thinking through what a lot of these future industries will look like in life sciences and transportation, he has generally been on the side of the more progressive technology policies. there's been examples, whether it is what the nsa does, some of our encryption policies where the tech industry would disagree, that is to be expected. but he set the country up to be much more digitally-oriented than i think the country ever had.

now what we need to do is we need to continue on that path. we need to continue to invest in many of the underlying programs and initiatives that obama created, but there are also many other things we did not have -- make enough progress on. immigration reform. ensuring you get a visa if you came out here and got in your masters or phd in science program. the ability to make sure stem education is available around the world -- certainly around the world will be great, but certainly in the country. the ability to bring high-speed internet to every classroom in every community in the country. all of those things are the next set of investments we need to make, and the next initiatives we need to execute on. i'm confident that hillary would be the right person to drive those. and i'm very confident that there would be a lot of risk in a trump white house. emily: one of your competitors, dropbox, announced at the bloomberg tech conference they are cash flow positive. did that light any competitive fire in you? aaron: we have long said we will be cash flow positive by the end

of this year. we are still committed to that. information'slow positive about a quarter and a half ago. we have been on the path, and i think we are very energized by the competitive dynamic, but we are running the business the way that we are. emily: a lot of observers are projecting more m&a. what do you think is in store when it comes to tech m&a? aaron: you have a bunch of large technology incumbents, microsoft, apple, ibm, oracle. you have some of the largest companies in the world that have large amounts of cash card you have a sector on the start upside that has seen lots of information -- innovation over the past five to 10 years, with lots of funding from investors and venture capitalists, so you are seeing a natural thing emerge. which is you have great startups and great companies that are innovating and being disruptive

in their industry, and large incumbents that need to be able to continue to grow. need to bring in new talent, need to be able to count new markets. there will be an increase in mergers and acquisitions for the foreseeable future, and in fact, in perpetuity, maybe. as more startups get created, more can be acquired. emily: with fox be a target? would you be open to that? aaron: i can't say whether we will be a target, but our focus is to create as much value as we can as an independent company. cory: our interview with aaron leavy, the ceo of box. coming up, bill gates discusses pharma and much more. check is on the radio. you can listen to me and carol massar on their bloomberg radio app, bloomberg.com, and sirius fm station 119. ♪

♪ cory: welcome back to the best of "bloomberg west." i am cory johnson in for emily chang. this week, bloomberg presented a focus on a farm a -- on pharma. bill gates has made at the mission of his foundation to use modern medicine to wipe out the disease from the poor the world. he sat down with erik schatzker in boston. bill: vaccines have still been the tool that say the most lives. even today, inventing new vaccines for hiv, malaria, tb, a number of these diseases that are still out literally killing millions of people, that's a top priority for us. erik: and other areas like gene

therapies, for example, or gene editing, how much promise do you think they have relative to the perhaps easier work -- i hate to say it that way -- that can be done in vaccine development? bill: gene editing is such a basic tool, and it's going to pervade all the work in the biological sciences. i mean, those tools, even for diagnosis, doing gene knockouts to understand disease models, you really can't understate what a great set of tools they are. for ourect sense foundation season, we see them in our plant and animal work, because it will speed up better plants, and help on animal disease. they are sometimes not as hard as human disease. is a.squitoes, this system to affect mosquito -- for

mosquitoes this is a superior , system to affect mosquito populations that are carrying the virus. for something like hiv/aids, it's possible, although there's a lot of hurdles, that you do gene editing to cure somebody from the disease, which that , since weantastic do not have a cure, we just have lifelong treatment. i see it in so many of the different foundation programs. erik: many of the most advanced remedies are awfully expensive to develop, and as you know the , companies behind them are incentivized to generate the maximum profit possible. i am of course thinking of things like valeant and turing, but also the price of hep c treatments and therapy. blood disease drugs. what, in your mind, is the best way to control costs, so these medicines and treatments are not just available for the rich and well insured? bill: i think the current system, despite some extreme

cases that i think have properly been labeled as "inappropriate," i think the current system is better than most other systems one can imagine. i mean, curing hepatitis c, this is a phenomenal thing. now, you have multiple drug companies competing in terms of the quality and the price of that offering. the drug companies are turning out miracles, and we need their r&d budgets to stay strong. they need to see the opportunity. for things like alzheimer's, they can reduce medical costs so dramatically and improve the human condition. and the pharmaceutical companies have been great partners of our foundation. when we need help in doing science, they are unique in what they can do. also, they are very good about tiered pricing. if you take hep c as an example,

i think that -- and all of the responsible companies do this -- the poor countries had an approach that wasn't towards them making money, just driving access. so tiered pricing is often the way you can square the idea of access and being able to fund new miracles. you really want both. cory: you can find more of our . coverage at pharma millennial --the the man opening movie theaters to millennials. this is bloomberg. ♪

from the fall of

blockbuster to the rise of seemix, hollywood would tumultuous. our next guest has been involved in nearly every turn. with reeded netflix hastings and marc randolph and then went on to found red box. he has turned his attention to movie theaters with another startup looking to disrupt the movie theater business called movie pass. it is three dollars a month, all you can watch inception service to go to the movies the old-fashioned way. >> first of all, movie theater attendance is down. fewer people are going to the movies, let alone multiple movies every single month trade why do think this is a good business? >> seeing movies in a movie theater is absolutely the best way to see it. i have been a fan of movies all my life, and in fact that is why i love this business. the experience of going to the

movies has just started to get innovative. we have digital film being distributed now, we have theaters upgrading the environment, great seating, they deliver food. but what has not happened is the business model where consumers participate in the business has not changed in a long time. you come up to the ticket counter, you buy a ticket, you pick the films from the newspaper or online, and that i think is really ripe for change, and it is exciting for me, because i love to figure out ways to get people to see more films and to enjoy film. emily: virginia, you are nodding. do you agree or are you skeptical? virginia: i agree. first we believe that people

want to, with the rise of mp3s, they would want to be alone with the experience. now, we have seen the rise of live music. it is bigger than ever before. all people seem to want to do is sellout concerts. there is something to being together, and, in some cases, romantically being together on the classic old date, dinner and a movie. now we have "netflix and chill." there is push back on that netflix and chill model. you can hear complaints even on twitter about the worst tinder date is when the guy just wants to netflix and chill. mark: so -- emily: so do you think attendance go up as a result of movie pass and by how much? mitch: absolutely. you are right. the business has been flat to a slight decline in ticket prices. -- in ticket sales. the only reason there is more

revenue is the increase in pricing. but the experience can be a wonderful one, and i think if we can make it seamless from figuring out which movie are you are going to see to getting to the movie theater to getting your concessions to finding your seat to comfortable seats, i think it can dramatically increase. 10% or 20% is not unrealistic in the growth of the business. emily: and how are you going to make a movie off of this -- make money off of this, because you're saying the theaters are going to get full price. mitch: the theaters get full price. we're going to create an amazing amount of data. we are going to be able to move people from one movie to another, from one theater chain to another. the first stage of this business, like in any other company that i have been involved in, is to prove our value and then to determine how to monetize that. but the first thing we have got to do is build a big customer base with a great product and a great service that is very affordable, and the byproduct is it gets people to go to the movies more often. seeing -- as are

someone who was one of the cofounders of netflix -- we are seeing netflix, amazon, all these companies spending billions and billions of dollars on content, on original content. is that going to catch up with them at some point or is this really going to pay off? mitch: you know, it is a great tactic, because there are so many choices out there. it turns out that people want a little bit fewer choices but more relevant to their own interests, so as these companies use the intelligence about what people enjoy and what they like and what they come back for, there is going to be better and better content created by companies like netflix and amazon. so i think there is a big future in this. the downside is there won't be as much variety, and that is where the movie theater really comes and play. people who -- there is 400 to

700 movies made every year in the united states that are aimed for the movie theaters, and not all of them get played. it is a great environment to see those films, and if we can get more people to be more experimental in seeing their films, in the same way netflix, by having the all you can eat subscription, we got people to try films they never would have thought about watching or paying carte manner, and it opened up their eyes to great entertainment, and i think we can do the same at movie theaters. emily: again you are nodding, virginia. virginia: that all you can eat model has done interesting things for content in the sense that you get these maxi movies, that is what we used to call them, these 80 hour movies like

"house of cards" that are made with a real filmmaker's plot and complexity and yet run and run. they are an extraordinary achievement we have not seen before. what about returning to a real focus on the 90 minutes or two hours and what kind of new movies might we see on a movie pass system, or maybe you would ask viewers to spend six hours in the theater? i would do it. mitch: exactly. if you go back to what was popular in the 1920's in the 1930's, you would spend the whole saturday at the movie theater. there is no reason why many of these hit tv series or hbo series or netflix series cannot also be part of your weekend or your evening at the movie theater. so there is lots of opportunity, and there is a lot of empty time on these greens, where the seats are empty and where there's a great environment. there is lots of potential here. lowe.movie pass ceo mitch

coming up, pinterest president tim kendall has a new idea. ♪

cory: pinterest just got more serious about shopping, streamlining of user experience showing -- pinterest shop is a virtual shopping bag that will follow the user across devices. emily chang caught up with pinterest president tim kendall. tim: what we announced is a broader effort called shopping with pinterest. because we want to help you discover stuff and make it as easy as possible to buy it on pinterest when you find something you love. we announced the stuff that you just mentioned. a shopping bag that follows you. the ability to buy on web, which we didn't have before. and then within visual search we launched the ability to, within a pin, we can do automatic object detection, so if there's

a picture of an outfit or picture of a living room, we'll automatically detect the object in that picture that are for sale and buyable, and if you select one of those, you can select and purchase them if there's a match. emily: one of the frustrations as a pinterest user is you'll see a lot of things, you can't figure out where to buy it. maybe it doesn't exist anymore or it's one of a kind or out of stock. tim: the idea is to just make this better and better over time. i'd say right now it's decent, but it is something that is difficult to do. computer vision is hard, and getting that match rate and --erience is a challenge match rate and experience to be great is a challenge. we think what we have to date is pretty good and we think we're going to get better and better as we train the models. emily: the other thing you can do within the app is you can take a picture of something, i could take a picture of your shoes and it would tell me where

to buy is it, right? tim: yes, i was with the kids in the park on sunday, and i saw a stroller, and it could have parallel feet or double feet, i do not know. and with this technology, i could take a picture of that stroller and immediately results would render that would show similar or the exact stroller and allow me to buy it within pinterest without leaving. emily: it sounds like a dream scenario, and something many companies have aspired to do. there areacebook -- so many failed examples of social commerce. why do you think it can work? tim: i think on pinterest people , are there to shop. meriwether just released data, and it says 55% of people are there to shop. only 12% of that say that about social networks. so i think if you have people who are using their service to shop, retailers are going to be there. we have 20,000 retailers on the service. we've gone from two million items for sale to now 10 million

items for sale, as of today. if you have selection and people who are there to shop, we find it works pretty well. emily: so how does pinterest evolve from here? is it a shopping site now? tim: no, i think -- look, the mission is to help people discover what they love. an important piece of that is people find lots of ideas, and some of the way you make those ideas come to life is you buy something. is that subset of cases, we want to make that as easy as possible, but also, if you find a science experiment you want to do with your kids, that means taking a bunch of d.y.i. objects from your home, we want to make that as easy for you. emily: does shopping become the main revenue driver? tim: i think advertising continues to be at the main revenue driver, and it will continue to scale. but the idea is -- let's make shopping work for the retailer and for the user, and we'll

worry about sort of the advertising model that sits behind that after we get that link. emily: now, you worked at facebook for many, many years and you know what rapid growth looks like. when it comes to pinterest, you're still getting more monthly users than snapchat and twitter. but if you look at the comm s core, the numbers have dropped so slowly from april to may. how will you grow your user base? tim: we're now more international than we are u.s. the u.s. user base is great and large. i think what we've shown over the past six months or so is the ability to really scale internationally. we have a number of countries we're focused on. we are trying to make it in those focus countries, we have great content that users want to find. if we make that match, it works. emily: how well are you doing in recruiting male users? tim: we're doing well. in the united states, if you data we'rerd party

, about 80-20. 80% female, 20% male. the rest of the world, it's actually more balanced. it's about 60-40, so it's more balanced outside the united states. when i joined the company, we were 98% women 2% men. so we are making more progress. emily: when you compare your experience from facebook to pinterest, what do you see, can pinterest reaccelerate growth, is this a new chapter for the company? what is the vision? tim: the vision is that we think we can do for discovery what google did for search. google taught us that if we knew what we were looking for and we could express it in a text string or two, we could find it. we think there's an amazing opportunity on your phone that when you don't know exactly what you're looking for, we can help you discover amazing things in the world. emily: and from a technological perspective, i imagine so much

work has gone into making this even possible. what are the resources behind this, the engineering behind this that makes it a reality? tim: yes, so we have a huge number of folks that are focused on a series of discovery experiences that sit on top of this catalog of ideas. and this catalog of ideas is 75 billion pins. they're all ideas in the system. and they're all linked up with people that are linked up with collections. so think about this graph of people mapped to collections mapped to ideas, and that's all human-created. and we're basically building technologies that trace that to create two discovery experiences. one is a home feed that you can browse. that should be a personalized catalog you should be able to look at everyday on your phone. the other is a visualize search capability. cory: pinterest president tim kendall with emily chang.

that is it for best of "bloomberg west." you do not want to miss our special look at china. tune in at 6:00 p.m. eastern. this is bloomberg. ♪

carol: welcome to "bloomberg businessweek." i am carol massar. david: i am david gura. carol: under armour's battle to be the sports where king. david: all that ahead on "bloomberg businessweek." ♪ david: i'm with the editor and chief of "bloomberg businessweek ." courtwas a supreme decision that came down on immigration. deadlocked. >> it was deadlocked 4-4.