mark: i am mark crumpton here you are watching "bloomberg technology." donald trump is denying allegations of sexual assault. at a rally in florida, he says the media and the clinton campaign are engaged in a coordinated attack against him. mr. trump: these vicious slights about me of inappropriate conduct with women are totally and absolutely false. mark: mr. trump says he has evidence to disprove the claims and will release it at "the appropriate time." campaigning in new hampshire, michelle obama said the audio from 2005 left her "shaken."

mrs. obama: it is untolerable, and it does not matter what party you belong to -- democratic, republican, independent -- no woman deserves to be treated like this. mark: 21 of nigeria's schoolgirls could by boko haram have been freed. they have been swapped for detained leaders of islamic state. nearly 200 girls remain captive. it is unclear how many may have died. global news 24 hours a day, i am mark crumpton in new york. "bloomberg technology" is next. ♪ emily: i am emily chang, and

this is "bloomberg technology." coming up, another round of layoffs at hp. we will bring you the latest. plus, verizon says yahoo!'s 2014 breach may affect its acquisition. and alibaba chairman jack ma signals tremendous challenges ahead for e-commerce. should investors be worried? first, to our lead. hp inc planning to cut as many as 4000 jobs on top of 3000 positions due to be cut by the end of 2016. the pc and printer segments have been under pressure because of weak hardware and supply sales. our editor at large, cory johnson, with me now here in the studio, as well as bloomberg contributing editor david kirkpatrick joining us from new york. cory, what did the latest round of cuts mean?

is this the end? cory: it is unprecedented for a company to take cuts for 16 years and announce there are more. i cannot even believe the numbers. they have taken well over $18 billion since 2000, and they have taken these consistently. there is also sort of this -- you cannot look at 16 years or 17 years of problem and say management has nothing to do with it. the companies have not been able to find their way out of it. with every strategic decision i have made, one after another, and if he will not pay for it have been the employees. emily: david, would you believe or agree that management is to blame? david: it looks like the stock is the same price that was in 1995. cory: [laughs]

david: you have to blame management for not doing something different. but what they should have done, i do not know. if you're in the pc business and do not have a smart phone business cycles along with that, it is a very difficult place to be right now, at least if you're trying to sell the consumers. hp obviously has a lot of enterprise customers. but even for them, a smartphone more mobile strategy, that is something clearly they should have done. they bought palm and then basically squandered it. there is a case of something they did poorly. i think they are kind of inapt over there, unbalanced. emily: we talk about it the enterprise, which meg whitman still runs. talk about hp inc. cory: it is cleverly named because it could be ink, although it is inc. carly fiorina, meg whitman, the company certainly had better

results under her. what you have seen from this company, while pc's have contracted, think of it as a surprise contraction. the printer business in the last six quarters also have really underperformed feared it goes across the industry. that is something the business has been able to rely on to it it is a big free cash flow business. the sale of ink and paper are most of the business, and they have done well in the past. the slowdown of enters have really exposed the weakest parts. emily: david, you wonder how the tale of two hp's will play out over the next three years to five years. david: dell going private is a threat to them because it will give dell more flexibly. lenovo, a chinese company, gets a lot of strength and sometimes significant advantage because there is an opacity to that that

we do not really match year. i will say is a tough road for hp inc. hp enterprise is a whole other story. they have made some smart moves, they have made some moves i disagree with. i with a hp inc. is the company of the two that probably is more of something to worry about. emily: interesting, cory, given that meg whitman and michael dell have choice words for each other. meg saying leaner is better, michael saying they are is better. cory: if you look at dell, emc, hp, oracle, throw in cisco, the hardware slingers of yore are all struggling, cisco the only one that has had consisting gains. cisco has done maybe more acquisitions than hp, but we are in a different world now. we are in a world where even google's cloud efforts are an and dominant form of computing going forward. the company is not trying to sell a box into every server room, they are not any sample

position they were in a few years ago. emily: all right, well, another 4000 employees being laid off at hp inc. cory johnson, our editor at large, david kirkpatrick, bloomberg contributing editor, you are staying with us. another story where following, yahoo!'s deal with verizon is in jeopardy. it would be "reasonable to assume that the yahoo! 2014 breach represents the material impact to impending acquisitions." that is according to someone familiar with the matter. they can withdraw completely from the $4.8 billion deal. crayton harrison joins us now live from new york along with david kirkpatrick, who is still with me.

creighton, what is the likelihood at this point that the deal does still get done? crayton: it is likely. verizon is still in the deal because it wants pieces that yahoo! can provide. the users themselves, maybe one billion people, a little less since the breach has been announced, but those are still things that it wants. what it could come into play as they could use as a way to go back and say maybe $4.38 billion is a little more than we should pay given the knowledge that we have now. emily: david, there is some precedent for terms of deals getting changed, for deals not happening. what is your take on how serious this issue with yahoo! is and if it will materially impact this particular deal? david: i am with crayton. the chances are best that verizon will use as negotiating tool to get a lower price. there really is not another

place they can go get another billion users of internet product if what they want to do is bolster their own business in the content direction. the e-mail system problems are real, but we have not really seen any evidence at what the cost to yahoo! is going to be. if i were in the position of verizon, i would use it to bargain down the price. that is what they seem to be doing, even making a statement like they made today. that is probably part of the goal, making that statement. emily: crayton, how long is the investigational process going to take? crayton: our understanding is that yahoo! is about halfway through this investigation. yahoo! is the one who has to do this. verizon cannot because they are not officially one company, verizon cannot go and look and verify that it was 500 million accounts, look at each one, make sure they know exactly what was

breached and compromised, so yahoo! is doing that. it's going to take him i guess, probably a few more weeks before they wrap things up. emily: so, david, what are you thinking if you armor is a meyer right now? david: oh, i am probably really, really tired of all of this. she is not having a good month, maybe a good year. my guess is she is going to be very relieved once verizon does buy it, which, like crayton, i do believe does happen. i doubt her haying around will be very likely. she is really concerned about her family right now, which has been growing, and i know is very important to her. what a tough challenge she has had. emily: we are of course going to continue the story as it goes forward. crayton harrison of bloomberg

news, thank you so much for that update. david kirkpatrick is staying with me. coming up, alibaba's jack ma signals from it as challenges ahead for e-commerce. should investors be worried? later, donald trump embraces an unlikely ally in the final weeks of the campaign -- wikileaks -- but does julian assange return the admiration? we will discuss. this is bloomberg. ♪

emily: amazon is anticipating a strong holiday season, the e-commerce giant saying it will add 120,000 seasonal workers to support growing customer growth, 20% more than last year.

meantime, competitors have taken more cautious view spirit macy's and target say they will hire about the same number of seasonal workers as last year. another story we are watching -- alibaba chair jack ma and ceo daniel zhang released the annual letter to shareholders. the letter recaps some impressive achievements to date as well as active buyers generating more than 75% of their business on mobile, translating into growth transactions of nearly 3 trillion yuan. as e-commerce becomes the main way people shop, the industry may become disrupted again. quote -- emily: joining me now for more,

hans tung and selina wang, and our guess was for the hour, david kirkpatrick in new york. hans, we will start with you. how unusual is it to hear jack ma saying these things publicly? hans: what was private, jack had no problems sharing his vision. this is the first time he has on that since the company went public. he has a renewed sense of confidence. what he did say in the shareholder letter is the investor in china, there are number one in the probability, so he is the only one who is in the position to do this strategy, and that is what he is saying what he is saying. emily: why say this publicly? what are the implications of it? selina: jack ma is feeling very confident, as hans said.

it is not just the ipo. he is feeling very good about the result. you just said, some very impressive numbers. also, they have off-line retailers, high-end department stores, so they are really saying e-commerce is now old. it is traditional. we have to push to the next phase, which means helping those off-line guys get online, and we can help you bring it all together. emily: how well-positioned is alibaba to incorporate, innovate their supply chain, logistics, payments, to beat their competitors? hans: over the last few years, they actually accrued great engineers from google, linkedin, facebook here in the valley to go to china. their engine has become so much more efficient. other pure e-commerce companies

need to pay attention to what alibaba is doing. they are investing a lot of money and logistics, payment, and making the supply chain work better for them. one of the things they have not talked about as they are actively working with influencers who are popular in china to get them to encourage consumers to come up with products they like and have a very fortunate supply chain to manufacture that and meet the demand on a very rapid pace. that is what they will talk about over the next 1, 2 years. emily: let's talk let the health of the chinese consumer because there have been concerns about the macroeconomic environment in china, the chinese economy being flat, however, you hear repeatedly from leadership at alibaba that consumers are still spending money. in fact, they are spending more money than ever before. from a western perspective, perhaps, it has been a little bit incongruent because some people continue to believe well, the numbers in the chinese

economy do not look that great. i spoke to joe site, cofounder of alibaba. take a listen to what he had to say. joe: in the long run, you look at the chinese household, there is $4.6 trillion u.s. of net cash savings on the balance sheet of chinese households. this is because they come over the last few years, they have had real wage increases, they do not have a lot of mortgage debt on the books, and this is all going to provide the foundation for very, very strong growth of consumption. emily: david, what do you make of sort of the potentially-conflicting narratives of what we see from the government and the overall health of the chinese economy and what we see from the chinese consumer? david: they are making bold statements. what hans was saying before about their ability to integrate

social influence with sales and predict sales, and then they're extremely sophisticated supply-chain kicking in, that is pretty exciting. the chinese economy -- it is not my expertise, but one thing i know, despite all that saving, a lot of chinese are very concerned about their long-term retirement. people save a lot there because they do not have a lot of long-term economic security in their own minds. spending a something it is hard to force them to do. on the other hand, alibaba's growth, they have done better at making people spend than any other institution in china, i would say, so you have got to admire these guys. by the way, i just want to say, calling themselves traditional -- their industry, a traditional business is really bold, and i think the stock should not have dropped on that, it should really go up because it shows they are looking beyond the present. emily: hans, do you see consumer spending habits changing?

do you see household spending declining? hans: the millennials and china, it is a 300 million block, they travel, they travel frequent, they go on airbnb, they take coffee at starbucks, ice cream from haagen-dazs. those are the shoppers that will spend more with ali. and then the internet, consumer gdp, is only 5%. so they are pushing for a bigger segment of the population. premiums on the ground despite what is happening at the macro level. emily: selina? selina: they are turning shopping into a social habit. look at how taobao. you can shop on it, talk on it, they have very famous people who live stream, makeup, showcasing

different products. people open this app seven times a day. that is insane. those are not e-commerce numbers. i do not open amazon seven times a day. emily: hans, the rise of cloud computing and the data as part of alibaba's business model, they have been touting as a big part of their future, again, saying cloud and data will become ubiquitous. data is already the new natural. it is as vital as oil and electricity. how big do think this business will be? hans: right now, the number before this quarter was 187 million. they have been going at it 3, 4 years.

before, alibaba was great at sales, great at television, but not so much sales. it is a bigger campus here in the bay area, another office in seattle, they are creating the best of the best to join them. technology is catching up to their vision. emily: how do you see them comparing to google, amazon, or microsoft? hans: there is still a gap. emily: will they get there globally? hans: i think china for sure, but globally, we will have to see. emily: all right, selina wang, our bloomberg news reporter, hans tung, david kirkpatrick, you are sticking with us. sony banking on virtual reality, hoping to bring its headset to the masses. we will seek with shawn layden and the next hour. remember, all "bloomberg technology" is streaming.

check us out weekdays 6:00 p.m. new york, 3:00 p.m. san francisco. this is bloomberg. ♪

emily: softbank is forming a global technology fund is that the bank says could eventually be worth as much as $100 billion. immediate plans include investing $25 billion over the next five years. the fund would be managed in the u.k. softbank says it is in talks with a few global investors, one may be saudi arabia's public investment fund, which is considering an investment as much as $45 billion for it is a price for tesla investors after ceo elon musk says he will not need to raise equities or borrow money this quarter.

the electric car maker could potentially keep the company going into next year. analysts said it will use as much as $2.5 billion for production of its sedan. discovery communications is investing $100 million in a new digital media holding company. group nine media is made up of several millennial companies like thrillist, nowthis, and the dodo. they have an option of buying a controlling stake later in the day. it is the latest partnership between achieving networks and web publishers. they invested $200 million last year. this year, turner led investments for refineries. coming up, artificial intelligence is a product. we will give you the latest from the white house reports on how to handle the rise of ai.

10 if you like bloomberg news, you can listen on the bloomberg radio app, bloomberg.com and, and in the u.s. on sirius xm. this is bloomberg. ♪

at shots outoking of bangkok where crowds are gathering dress in black and morning a very popular, well left king. baht hadght -- the hit its lowest this week when the monarch passed away after a seven-decade rain. the monarch indicated that his son, the crown prince, will succeed him. factories rose last month for the first time since 2012.

indicating further stabilization. , the ctiroducer cost also be estimates last month rising 1.9%. poor's central bank has refrained from using monetary .olicy third-quarter gdp fell and toualized 4.1%, compared analyst estimates for zero change. growth in the export driven economy has been under pressure since last year. dayal news 24 hours a powered by more than 2600 in 120ists and analysts countries. this is bloomberg. marketsing the midsession in asia, a bit of a mixed picture coming through. read from china

showing a little bit more stabilization and calming nerves datae wake of that trade that disappointed during thursday's session, but you are still seeing weakness from shanghai composite as it heads into its lunch break. they hang seng market has certainly been underperforming the region over the course of the week but you are seeing a bit of upside today coming through from some of those energy players and also consumer stocks. incourse, these set thailand focus, its biggest rally since july 2014 and you see some as samsung is in the black and we also continue to see that rally coming through for shipping as well. a little bit more upside from the nikkei in the afternoon session as it reopens. this as we see the yen weakened against the dollar. flat session in australia, still seeing a bit of

weakness coming through from those mining players and banks today. new zealand also looking fairly flat. the other big story of the day, the rally we have seen in commodity banks, currency, the .ussie dollar up by about .3% that is the state of play across asian markets. emily: this is "bloomberg technology." i'm emily chang. is the world on the brink of an industrial revolution spurred by the rise of robotics and artificial intelligence? by 2020, over 5 million jobs could be lost in 16 major and emerging economies 30 white house issued a 48-page report on how to handle the rise of ai. joining us to discuss from seattle, allen institute for artificial intelligence ceo oren etzioni, and alex moore, ceo of boomerang, a company uses ai. and then my guest post, david kirkpatrick.

oren, i want to start with you. what a day it right, and what did they miss? oren: it is a lengthy report come as you pointed out. i have it right here. i think it is sane and balanced. some of these worries really come from hollywood, like "the terminator," and at the same time, i think there is a valid concern about jobs, and we need to do something about it. emily: david, obviously you talk to a lead o's, a lot of people at the top about ai. it is something that you guys are evading at techonomy. do you think it is overblown, or do you think this is a real, potential problem? david: i do not think the fact that ai will be transformative is overblown.

i think we are in something that could be called the fourth industrial revolution, and i think is wonderful to see the white house put this kind of attention on the issue. i think it is really unknown how the job issue plays out, and i think it has a lot to do with how we as a society handle this incredible new resource that this kind of intelligence brings to us. one of my friends, who is at the conference today, tweeted, this is jesse hempel, said, "the conference is really about humans, which is really good because the key question is going to be -- how do we manage the intersection between people and this extraordinarily powerful technology?" i think if we do it sensitively, it could be by far a benefit to society. emily: alex, you are nodding. 46% of u.s. jobs are at risk of being handled by machines over the next two decades.

there is a concern about mass unemployment year you run a company where you do incorporate ai into your product, and i wonder -- if ai did not exist, how many more jobs would exist? alex: one thing i was delighted to see in the report as they did take time to look at how ai and humans can work together and decided the best chance in the world is not being played by ai or people, it is being played by humans and ai working together. i think that has informed our philosophy, too. it helps you write a better e-mail. they do not write it for you. that is really a somewhat underappreciated aspect of the ai revolution that is coming, the capability of us and machines to work together and do really amazing things get it. emily: oren, president obama and others have said the only way to do this in the future is universal basic income. is that realistic/

is that going to be widely accepted? oren: i definitely disagree that universal basic income is the only way to deal with this, and i think, in the report, the issue was raised that there was not a definitive declaration. i think we need to think about training, i think we need to think about new jobs, like alex said, combining abilities, third-highest cause of preventable death in american hospitals is medical error. can computers be a part of that and save lives? is ai part of the equation? absolutely. we do need to think about jobs. we also need to think about consumers. we are all getting older. we would love to have extra care, but we cannot afford it as a society. can robots, can ai systems be a part of the? can self driving cars healthy elderly be safer drivers but be

self-sufficient longer? there is so much here, and jobs is one component, but there is a lot more. emily: alex, you just came from a big hillary clinton event in downtown san francisco, and a lot of this is about what the government can do. what do you think whoever is elected, what do you think that the white house should be doing, and what should their role be and whether it supports an industrial revolution will not, but helping to manage it? alex: there are two areas where the government will make a big difference. the report highlighted how important it is to focus on getting open data sets available. i think that is a huge thing. some of the data that we used to build our product comes from open data sets. if we don't have a good set of those, the information for ai will come from google, microsoft, apple, coming to arty have the data, and the small companies will get frozen out. the ability for machines to do tasks that they could not do previously make us as a broad

society richer. they give us a love more flexibility, a lover opportunity, so i think there will be a big role in politics or determining, ok, there are going to be some winners and losers. can we make sure the gains are shared i everybody, and that everybody has the opportunity to benefit from it. emily: all right, alex moore, ceo of boomerang, oren etzioni joining us from seattle, david kirkpatrick, our bloomberg contributing editor, you are sticking with us. still ahead, the world's most famous hacktivist found most unlikely ally in the world. we are talking about wikileaks founder julian assange and the republican presidential candidate donald trump. this is bloomberg. ♪

emily: republican presidential candidate donald trump is embracing an unusual ally -- wikileaks founder julian assange. mr. trump: the hillary documents -- have you been seeing this, what is going on? -- released by wikileaks make more clear than ever just how much is at stake in november and how unattractive and dishonest our country has become. emily: the latest batch of e-mails released apparently urged clinton to the nicely ever sent classified information on her private e-mail. reporter max chafkin of "bloomberg businessweek" writes about this in the latest edition of the magazine. max, i want to start with you. some say this allegiance to trump that wikileaks seems to have is a trail to the very foundation of wikileaks. is this really a change in

value. max: when you think of wikileaks, you think of the cable gate leaks, which happened in 2010, and this was video of a helicopter attack on some journalists. julian assange, the founder of wikileaks, has long been a critic of u.s. basically overreach overseas, and basically, in effect, embracing a candidate who is in favor of the banding that reach. donald trump has called for "closing the internet," he has talked about expanding the guantanamo bay prison, so it is a big departure. and it is a bid for relevance. emily: i interviewed kim dotcom, the founder of megaupload who is under house arrest in new zealand for massive copyright

infringement about a year and a half ago, and he corresponds with julian assange and told me in 2015 that julian assange would be a big problem for hillary clinton this year. take a look at what he had to say. you are saying julian assange will be hillary clinton's worst nightmare? how so? kim: well, he has access to information. emily: what information? kim: i do notof the way. emily: why hillary in particular? kim: hillary hates julian. emily: i corresponded a bit with kim, and he maintained be the mother coming, they are coming, and now here they are. what does you and assigns get out of this, max? max: what do and assigns get out of it is an audience. there is a large contingent of very committed supporters of donald trump, and as wikileaks has sort of, you know, started to read the sort of, what we

might think of as the albright meme machine, people who are on the donald forum on reddit, people who are on breitbart, he has a mass contingent of supporters that i do not think existed before, and i think he has been able to tap into something. in a lot of ways, wikileaks is contrary to the whole donald trump phenomenon. on the other hand, a lot of these people are very skeptical of government. they are very extreme in their beliefs, and i think there is some overlap. he is all about trying to get an audience. emily: david, this is a campaign that is changing -- literally -- by the minute. it is estimating to see how the trump campaign has embraced online, embraced new platforms. david: what a start contrast to obama's event that he is having today. i do not think trump would even

be capable of understanding why that event is happening. i have to admit -- max's story is fantastic or do you have got to believe that julian assange has an really frustrated. he released those you melt, and they got overwhelmed in the news cycle by trump's behavior and did not get the attention it would have otherwise. the other thing that is interesting to me, and i would like to hear max talk about it, is this potential to alter these e-mails and the talk that the russians may have been doing that, and at one point, as i understand it, trump reacted to an e-mail that was in some of these released materials that was clearly altered and had been documented as being altered, so this is really scary to me. emily: max, go ahead. max: a couple of things. one is, and what a super

interesting about this put us -- is it actually came after the nbc access hollywood week. and it happened mere minutes afterwards, so it seems like assange has been holding these, and he dropped them in an effort to basically deflect attention from the leak. that is clearly what is going on. he has been doling these out as a way to help kind of change the news cycle and to benefit the trump campaign. sorry. emily: no, we will have to leave it there, max. it is fascinating. so much is happening literally every minute, the campaign is changing. our "bloomberg businessweek" reporter max chafkin, check it out. david kirkpatrick, you are sticking with me. we will be right back. ♪

emily: sony's $500 vr handset is a high-end device competing with the oculus but is aimed at the mass market. cory johnson and carol massar caught up with chief shawn layden. shawn: we reckon with the launch window, we will have 20 or 30, and we are tracking about 50 by the end of 2016. carol: when people talk about virtual reality, i get excited because there are so many different ways you can use it appeared industrial, health care, what other potential markets are you looking at? gaming is certainly a big one, but is your horizon bigger? shawn: our entree into vr is beginning. sony has been the leader of the consul game in the home, and that is where we are attacking the market from, but i will tell you, we have had interest from places as far away as hollywood

studios, music and record companies, the smithsonian jet propulsion laboratory. looking at vr, it is a new medium for entertainment and education. cory: do you expect that the killer app for these, the game that works the best, might be very different from what has worked in playstation? shawn: i am pretty sure that it's point to be true, cory. you will see that carrying on into early 2017. virtual reality is a complete greenfield technology, a place where nobody has really gone before, so all of us are trying to learn what plays best in that immersive environments, and i think he will see a lot of experimentation in the next 1218 months. carol: you have got to have exciting games to get consumers to go out and say i will lay down $500 on a new piece of hardware, if you will. gamers, programmers, they kind of wait for the audience to come.

where are you guys in that cycle? do you have enough to bring in that consumer audience? shawn: i think we do. vr is already compatible with the 40 million plus playstation 4's that are already in the world. if you own a playstation 4, you are already halfway to the experience. as far as the content goes, we have a wide array of titles that we are coming out with now, from not only independent developers and people new to the technology, but from names you know and trust, like electronic arts and warner bros. it is such a new technology, we are still try to find out exactly what plays best in that experience. cory: as the development process goes on, how has development for virtual-reality games differed from a first-person shooter game, but also lots of thought about the environment to play those in? shawn: we still have not developed the syntax and grammar, if you will, to

describe it. the idea of narrative, where it is most so much linear, but it is all around you, and the player can do with a want at any time and can see things occurring not only in front of them but behind them creates a whole new experience at our designers are just starting to put their head around what sort of special features. carol: shawn, my husband says i am a stubborn kind of gal. i want to go to numbers. i'm curious, what kind of market size you think this is for sony? one number i saw thought it might not even be a $1 billion market not just for you but all the players this year. i don't know, i mean, you guys are smart guys. you look at market size, market potential. how big a market could it be for you in terms of revenue? shawn: vr allows itself to be a much broader experience than straightahead gaming. we will know exactly what that looks like it in the last 20 years, 1, 2, 3, 4 -- 4 is the

fastest of all time. honestly, virtual-reality comes in a perpendicular into that business model, and we will have to learn exactly how big is big on that. but i do believe in my heart it is very broad, and i think it can appeal to a very wide range of users. cory: why is it a broader range? shawn: because it allows a different type of experience. a lot of things you will see if you get your hands on the gaming kit is that we have a really high-powered, high intense action game, as you would imagine, but there is a very considered, there is a very deep experience one has with vr that is even slower, more exploratory. a lot of the detective, adventure, investigated kind of games, those are doing well in our consumer feedback as well. i think it is a broad range could once you put the headset on, it is very intuitive. i think it will appeal to a large audience.

emily: sony playstation chief shawn layden sticking to our editor at large or johnson and carol massar. our guest host for the hour, david kirkpatrick, still with me. you have interesting thoughts on virtual reality. david: i think sony is really smart to embrace vr the way they are. noting my own thoughts about sony are shifting because they seemed kind of out of it in recent years, and this could really improve their brand image, even if gaming is not going to be a gigantic market for them. i think the social experience that vr can eventually create our where the big opportunities like him and oculus, which is owned by facebook, heather big event just last week, a week and a half ago, and zuckerberg gave a demonstration on stage, and the part that i do not think wes sufficiently enough written about and talked about was the

social vr experience is that he demonstrated command actually, they have two different ways that facebook and oculus are developing social vr. i even think for things like travel experiences where you can really model an entire city with photographic vr, and you can trouble there with your friends, it may be more like shared experiences rather than games where large numbers of citizens of the planet start to really get involved with this new technology. i do believe, eventually, this could be as big as smartphones, but it is not anywhere near that anytime soon, and it will not get there with games alone. emily: all right, well, the race between sony and oculus is on. david kirkpatrick, ceo of techonomy, always thrilled to have you on this show. that does it for this edition of "bloomberg technology." tomorrow, i speak with the four founders of bot, all still with the company a decade after they

started it. we will see you tomorrow. ♪

>> it is new here in hong kong. angie: i am angie lau with an update of your top stories. the overheating phone crisis could cost samsung. has doubled the recall to almost 2 million devices in the u.s.. samsung shares climbing more than 1%. over to china now, prices rose for the first time since 2012, indicating further stabilization in the world's second-largest economy. 0.1% fromindex rose september a year ago. china's producer