debate. a new poll from bloomberg politics shows hillary clinton ahead in a four-way matchup. mark halperin and john heilemann atl host a pregame broadcast 8:30 p.m. the mile and settlement is being overbillingor medicaid for the epipen. quicklyppened so without an investigation and full fact-finding and accountability. mylan can take a pretax charge against its quarterly earnings. mark: a spokeswoman for mylan .eclined comment russia's threatening to retaliate after a british bank terminated the account of a russian state tv channel. the kremlin warned moscow would respond in a practical matter.

a record 60% of american adults support legalization of to a new according gallup poll. when gallup first asked about the issue in 1969, just 12% of americans were in favor. i mark crumpton. this is bloomberg. "bloomberg technology" is next. emily: i'm emily chang and this ." weloomberg technology are at the vanity fair summit in san francisco where we are hearing from some of the most influential voices in tech. we will be joined by matt comstock and the discovery to medications ceo. most outspoken venture capitalists, bill gurley.

plus we will head to austin for an exclusive conversation with michael dell. first, to our lead. we begin with ge. the company has made a big push to position itself as a digital industrial co., but it's not wonderingnd skeptics whether a big industrial conglomerate can hold its own. brad stone joins us. -- you have been in this advice chair role for about a year. what has surprised you most about this? beth: more meetings. fact that we are at this very interesting time in the company and the vision is happening in summary different mentions and we are trying to keep pace with everything. the fact we are focused on it is a great thing.

: emily mentioned the pitch as ge as an industrial company. you in the marketplace for your digital services? beth: we declared the industrial internet as part of our future. for us, it is the intersection of the visit goal and digital, the hardware and the software for top we need to continue growing the hardware base. here in theioned san francisco area and we are hiring great talent. ofis a different kind challenge than people have been hiring for, so i think that creates its own kind of momentum. big challenges with health care, energy and transportation. with that comes a different mission. for some people looking for what is next in the software space. some people feel like we

are in a time of technological stagnation but we are also in a time of rockets and self driving cars stop -- self driving cars. beth: is a big company, you have to do all of those things. you have seen us evolve our model where we continue to do core innovation. i don't think often that core innovation does not get enough attention. we have done quite a bit at going into new spaces. that is part of what has brought us out here to silicon valley. you are seeing more and more bigger companies realizing you have to have a portfolio of all of those things. the predictso had operating system.

is part of the industrial internet and has to be billed for industrial scale data. the ability to crush -- crunch large-scale data sets, not everything is in the cloud. there are unique challenges that industry data brings about. we announced a partnership with microsoft and i think that's one of the things you are seeing with bigger companies -- you can't do it all yourself. you have to figure out where is your competitive advantage and how you partner. emily: you oversee innovations, people here in silicon valley are curious about this specific area. >> we are in menlo park and we someble to track entrepreneurs and residents. what is ge going to do here

question market has created good momentum. not only do we invest with some startups, but we are ordering with them, creating a drone as a service opportunity that we are developing right now. working with railroad customers for example. we are also incubating is this is. about a newed immunotherapy data play being incubated here in a partnership with the mayo clinic. i think you are seeing more of those models coming from us and we are able to draw from great entrepreneurs that want to take on these kinds of challenges. you moved your headquarters to boston. why boston? integrating in a big way with a local startup community. if you look at us over the past decade, much more global and

embedded. this understanding of the ecosystem is about partnerships. at our headquarters, it makes sense that we could be part of an academic ecosystem startup. a lot happening in life science and robotics in boston that made it good for ge. brad: are you required to be a red sox fan now? beth: i'm not quite ready to go there, but i'm sure a lot of people are. emily: we are poised for a technological disruption, the rise of ai and other technologies, given that we are three weeks away from a big election, how much is at stake when it comes to innovation and entrepreneurs? do you need for innovation? great education, right infrastructure, the hardware and the software and less bureaucracy.

you need to incense innovators to go fast and forward. happens, you want to hope those things are put in place and i think a vision helps . where do we go to get everyone focused? emily: great to have you here. just discussing, that the 16 presidential election is on the mind of everyone here. donald trump and hillary clinton are set to battle it out tonight in the final debate before election day. with the editor of vanity fair and asked him why he decided to take such a public stance on trump? >> donald trump is not your average candidate. we've never endorsed anybody, look atve had a closer

him and i wanted to write about what i have seen in this man. whatever happens in the election, it's going to leave a stain on the process. brad stone is still with me. it is interesting, talking about whether the media has become a whipping boy in this conversation. brad: nobody took donald trump's candidacy seriously last year. everyone thought he was good for ratings and everyone is talking about the debate and the election here today. but i don't get the sense anyone is particularly worried about the election. i think there's a lot of interest but i think the polls have taken care of it. calledi think people are by the polls but if it doesn't happen, they are interested.

brad: everybody wants to watch. emily: we will be back with more. coming up, we will head to austin for an exclusive interview with michael dell and whether the economy is as bad as the candidate claims. this is bloomberg. ♪

emily: this is "bloomberg technology." in extendedplunging trading. forecast may miss analysts estimates. ebay has been struggling to expand its online market lace. innovators and influencers

are gathered here in san francisco for the vanity fair new establishment summit. in austin, the annual dell world conferences underway. erik schatzker sat down with michael dell for an exclusive conversation and asked about the topics on everyone's mind -- what at stake in this presidential election? michael: we will work with whoever is in charge. we are quite focused on issues around cyber security, trade, competitiveness, those are the things reported to us -- some of the rhetoric i'm hearing in this election is absolutely ridiculous. if you think about trade, we have a small percentage of the

world population, yet we have a much higher proportion of gdp. as it relates to global trade, america has already won. we export things that are driving the world forward. not going to trade with the rest of the world makes no sense at all. you have been a republican donor in the past. if the election were held today, who would you vote for? exercise myill constitutional right to keep my own ballot private. i will be voting. erik: everybody should be voting. one aspect of post crisis recovering has been this low pace of business spending. what do ceos tell you about why they have not been spending? seeael: in some areas, we reactive spending.

security, they are very worried about the whole cyber security world. the tools, wend see more and more organizations realizing if they don't have the best and most modern tools for their workforce, the workforce is not going to want to be there, yet productivity growth is a huge problem for the economy. as tof it is normalized firms both utilize the same tool and productivity gets washed out. to morehave access information and the president had 25 years ago for free. there are some big changes going on. i think both political parties

have been calling the economy much worse than it really is. erik: you don't see it is that bad? michael: i don't. the u.s. economy is in a far better spot than most economies around the world. the view thathare the surge we have seen in the public sector debt, the rise of populism, manifestations like brexit, demographic and other structural changes mean the economy is stuck in this new normal or du have a different view? michael: i don't really know the answer to that. the pace of change is accelerating and that creates problems and harmonic distortion in the sense that can people terms oflikely in skills and capabilities as the world is changing? if you look at it from the

fundamental view of technology, they don't have feelings. they are not waiting for somebody to be ready. it is important to recognize there have been some big changes. there's been an enormous surge of an emerging market and a workforce that has come in, then you have all the automation, productivity, technology that is much more efficient. manufacturing does not require as many people as it used to 10 or 20 years ago and it creates difficult challenges for our society. was michael dell speaking to our very own erik schatzker. discovery communications $100 million bet in media. we will talk to the ceo about the investment in group nine. this is bloomberg.

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emily: welcome back. frome coming to you live the vanity fair new establishment summit in san francisco. discovery communications is investing $100 million in group nine media, made up of several focus brands. the investment will let discovery move beyond its legacy-linear television business. joining me here is the ceo of discovery communications and still with us is brad stone. thank you so much for being here. you are a sponsor of the summit and have a big virtual reality set up. you have announced a new initiative. tell us more about this. >> we love the vanity fair summit. great and carter is a great curator of things we should be paying attention to and it's a

platform to talk about our vr with -- we are the leader in virtual reality. , we are approaching 100 million people. our content, whether it is , operary, animal planet or science, when our content gets closer to real, we think our content can shine. we were really able to take advantage of the conversion to hd. we invested last week in a new company that we are excited about. videok our short form production entity in silicon valley and contributed that. that was getting about half a billion streams a month and we put it together with this and now, we haven't entity approaching 4 billion streams or month. we have a greatly to running it, but we also have some real stakes in the ground.

the third orwe fourth largest player in short form media, but now this is the leader in facebook with news, the number one place people get news on facebook. they have a number of snapchat channels and a great data infrastructure. we think we are going to be a scale player. then is going to run it. he is a charismatic ceo. we own 30% and have a right to take control after two years. we can focus on supporting then and building our core longform business. rad: is there a part of hedging your business that maybe this is a step forward into the new world? david: there are 7 billion

screens. around comes to the tv the world, we are the number one platform media company. we have about 12 channels in every country in the world. when it comes to people consuming brands on television, our business is growing and is quite strong. we just need to make sure our ip is on every platform and get as much share of audience on each one. this group nine venture gets us one short form and makes us of the most meaningful players on facebook with snapchat. separate from that, we are really working on our ip, not just for tv, but with sports in europe, we are the leader of sports in europe and we have ip. aggregating we have the olympics, cycling, winter sports, so in the

aggregate, we are the number one sports provider in europe and we just launched in the last year a product that is really sports netflix. for eight dollars, you get all of our sports ip on every one of your devices. mentioned netflix. there is speculated that's a takeover as target. we've seen cbs, viacom back in the day. do you see disney wedding acquisitive? if one domino falls, what happens to the rest? david: we think netflix is a great model and that's one of the reasons we are imitating it. netflix spends about $6 billion year and their model is to get subscribers to pay eight dollars or $10 a month. with our sports netflix, we have billion dollars or $7 billion over the next several years and

we are offering it direct to consumer, but our cost of content to zero because we make money on eurosport by using that content. we have looked at what netflix has done. not only is it appealing, but the market gives a great multiple. if we could take our ip, all the ip we have, whether it science, animals, discovery, that all gets paid for when we have a significant margin on that. looking at direct to consumer across the board. we think we are big enough, but we did feel the need over the last four or five years to drive ourselves and to a leadership position. number one network for african-americans in the u.s. and in latin america, we are the number one provider of

kids content. to survive,oing it's not size but you have to be super dominant in these fan groups, whether it is sports or kids, nonfiction. have to keep your eye on the kind of ip that people have. that is what we will continue to gravitate to. the ceo of discovery communications, thank you for joining us. theext, our coverage from vanity fair new establishment summit continues. we will sit down with bill gurley. check us out on the radio and on twitter. we are everywhere. this is bloomberg. ♪

mark: i'm mark crumpton. you're watching "bloomberg technology." the leaders of germany, ukraine and france met in berlin for talks aimed at reviving the stalled peace

process in eastern ukraine. the talks were the first time the four have met in over a year. the 2014 minsk agreement brokered by germany and france scaleelped and large battles between ukrainian troops and pro-russian forces, however attempt a political settlement have failed. british consumers are starting to feel the bite of brexit. rising as oil prices at the weaker pound stoke inflation's. andsure set to intensify price gains by as much as 3% are predicted by next year. ran intoice van protesters at the american embassy in manila. there are reports three activists were hospitalized. protesters are demanding an end to the presence of u.s. troops in the country and backing a call by the president for an independent foreign policy.

into theyphoon slammed northeastern philippines on wednesday. winds were gusting up to 145 miles an hour. many villages lost power and intends wins lou the roofs off houses. people were urged to move to higher ground. i'm mark crumpton. this is bloomberg. it's just after 6:30 in new york. my colleague paul allen in sydney has a look at the markets. paul: good morning. a mixed morning today. the index off a fifth of 1%. we are expecting modest gains here in the open we are keeping an eye on the mining stocks -- fortescue out with production tinto releasing their third-quarter numbers. iron ore shipments down at rail

facilities. coal's areal something of a nice earner at the moment. again, shares in crown resorts. holds its operator agm in person in a couple of hours time. shareholders will likely ask a lot of questions about why the price step off a cliff this morning and what is going on. also out today, australian unemployment is expected to take up. i'm paul allen in sydney. more from bloomberg technology coming up. emily: this is "bloomberg technology." i'm emily chang.

the vanity fair new establishment summit in san francisco. we are speaking with some of the most influential names in technology. bill gurley came in a number 26 on the establishment list. the influential venture capitalists made it bets on uber and snapchat death -- just to name a few. great to have you here. uber.e to start with moving from wartime to maybe peacetime, but it is difficult to understand how this is going to work with travis as an observer. explain how this plays out in reality? know if i can

explain it. i'm fairly optimistic there would be multiple points of collaboration. when you think about things like autonomous cars and mapping me if the, it strikes companies are not directly competing, that there are ways they can get in if it's from sharing. i think it will depend on the evolution of the relationship. brad: uber is spending heavily in china. where does it redeployed at capital? competitor,t uber that it is are you now on you? >> the global ridesharing market is one that has attracted a ton of capital and most of the competitive assaults are not better features.

it can get sloppy fast and i happen to be aware that some of our competitors in their fundraising pitches have said uber will worry about getting profitable because they want to go profitable. if that is how they are going to were, we have to take our chest and be prepared for battle. i think we are in that mindset. emily: are you surprised snapchat is looking at going public earlier than uber? why is it the right time for snapchat but not uber? bill: i could talk for an hour about the ipo situation. there has been a bad meme spreading about ipo's being bad and i think it is in everyone's worst interests that has anything in mark zuckerberg famously said you should have gone public two years earlier.

evan is not in the silicon valley world. perhaps that allows him to have a more liberating -- ridesharing is an exceptional business because of what we just talked about. if all of our competitors are going to say we're going to take it vantage them because they are going public, then we will have to figure that out. on,e those things are going it doesn't make sense. we had two or three ipo's here and if you talk to the bankers, they say early 17 has a strong pipeline coming. so i am hope. : this morning, they were talking about softbank's fund and thought that it would tilt the playing field away from investors. what is the impact of that

massive fund and what effect is it likely to have in the valley? bill: i disagree. i think excessive amounts of capital make it harder to compete and it is negative for because entrepreneurs they can raise money in any environment and if money is relatively free, it leads to excessive competition and it makes it harder to succeed. i disagree with that point. one reason i do not think we have seen a wide red reset is people have gotten a little harder and they are not doing as many dumb things. see the occasional company go bankrupt, but nothing wholesale. there's a tremendous amount of money available and a lot of it is coming from russia, the middle east and china. it wants to diversify into american assets and this is a large example of that.

you were to talk to a realtor, you would hear the exact same story. what are the dangerous possibilities? is there a reckoning coming? phil: the promise of excessive capital can cause the cap charge to get loaded. $300 unicorns have raised million. the only way to deploy that is to take huge burn rates. they are losing tons of money and there are going to be very few unicorns that look anything other than that because of this dynamic. excessive amounts of capital to ploy lead to excessive losses. have more then you than doubled --

bill: there's a lot of scarcity and until you get a lockup, it's hard to know. rates will interest lead to really wacky things. i'm not into macroeconomics, so it is hard to predict but it is nutty because of the nutty things that happen with valuations. : could any events create a seismic event? out ofike an ipo california? that might work. what could happen as a result of the influx of cash and a lack of very compelling ideas? bill: you could end up in situations where the last dollar standing when. i don't know much about the soft tank thing. you start handing out that and

people can't repay it, you take the whole company. someone could theoretically use capital in a leeway which is not something silicon valley has brad: jime for up chanos has called elon musk half company image of science fiction gone awry. bill: there are signs on both smartthat could lead people to either conclusion. if you have written and were driven a tesla, it's a remarkable piece of machinery and they have integrated software in a way that no american or european automaker ever has. they really understand doing things differently. time, if you look at the losses, the missed production schedules and this decision to merge with solar city, you could take that point of view presented here at the

conference. out? where do you shake l: i see both sides. i'm not a public investor, so not going to make that decision. emily: we have talked about rob hub -- because of uber eats, do you think uber -- venture capital takes on more risk and one of the ways they take on more risk is they choose businesses with lower and lower gross margins. most of them are consumer businesses and you can attract customers. lot, but misses this a if you are losing money on every transaction come a you are giving something away that's going to end and i like to remind people that web than had

the highest score right up until it when bankrupt. excessive capital can lead to these price wars and things can go downhill quick. emily: bill gurley, thank you so much for being with us. and 20 something. thank you. still to come, we will catch up with a power angel investor from sure by capital. technology" continues next. this is bloomberg. ♪

emily: continuing now with a special edition of bloomberg technology from the vanity fair summit in san francisco. our guest is known for investments in uber, airbnb and is the cofounder of the moonshot transportation start up. brad stone is with us. rate to have you back here on the show. just raise the new round of funding and people are so curious about the technology. timelines about the and when we will see this come to fruition. announcedfriday, we the former ceo of uber has joined us. and it is$50 million operator inrgest the world and join the board as part of the $50 million round

and that's feeling the timeline to do the full scale hyperloop test. that is coming really fast. some you have come through negative press surrounding a former partner in the business. are you pass that now? he's not the cfo at hyperloop. he is the special advisor. and do the distinction you feel like the company has passed the difficulty? guest: absolutely. .e have rob lloyd as our ceo he was the top guy, one of the top engineers at spacex. haveng the company and we 200 people full-time, mostly engineers and we are hitting our

milestones. that will be in nevada in 21 and we are signing bills all over the world and the leader of dubai just announce they wanted to build a hyperloop, so we are sending them all over the world. : how much more expensive is it to build underwater? guest: we have designs to do that. able to do cargo offshore and inland. if you look at on beach, that's $200 billion of real estate eluent a lot of these port operators have to spend billions of dollars because they are at full capacity. annalee: let's talk about it. you were one of the earliest investors top we are so far into

the ride hailing war. how do you see ridesharing market share shaking out globally? of two winners or five in the world? what does --s actually look like mark look like? money into uber china, so we own a piece of didi as well. we think uber as a standalone company, you are looking at 2018 and beyond. it is a major force in the global economy. emily: profitable by 2018? guest: that is my analysis. in terms of our belief, we think it is a $200 billion plus company. within china is

probably going to go to a $100 billion company. aboutare you worried regulatory obstacles? guest: as much as i worried about it in china. sherpa is very happy because our instment in china. we think the leaders there are incredible and executing at and i think it will be a major company. john zimmer was on the show yesterday. do you think lyft survives? them amy number to call sideshow. i agree, not just because as a

cofounder i like them, but i think they are in a weekend precarious edition compared to a very strong uber. my comrades has been writing about these companies and one of his stories and he looked about the sustainability of the business and the potential turnover of the ceo. do you believe in the company that makes its own meals and the amazon model in half a dozen cities right now? do you believe in it as much as you did? absolutely. having jeff is one of the most esteemed ceos joining the board. one of the names in the ring of talented people we are looking at. if you look at the unit of economics today, they are very

positive. the cities are contribute to the business and we are getting ready to cook meal tips across the country, similar to blue apron. delivered.ionally we've unlocked the ability to deliver from the new york kitchen down to d.c. in the same day. up?: do those meals hold guest: they do. emily: the structure of sherpa is very unique and i'm curious how it is working out. have you made any investments from that fun and do you expect to? guest: one of the things we say is silicon valley is not a physical place anymore. it's an idea and spreads file really in the world is a startup.

the opportunity to invest in incredible companies, nobody could have predicted didi growing to this scale and a couple of years from scratch. these opportunities in china and india and around the world are in terms ofuations the opportunities we are seeing are rational these days, so that's a great opportunity. investments in companies where we let a $100 million round. that company had only raised $3 million for and is doing incredibly well. brad: what do you think andrew cuomo does with the airbnb bill on his desk? i know you are an investor in the company. guest: we are investors and big levers in the model.

brad: does he sign or veto it? guest: i can predict what he is going to do. emily: we will be watching it. rate to have you on the show. thank you for dropping by. we will be right back with more from the vanity fair new establishment summit. this is bloomberg. ♪

emily: shares of tesla spiked after elon musk did the company would post information about a product update at 8 p.m. new ark time today followed by q&a. he has been secretive about what is coming, saying that this will be unexpected by most and is related to the model three. it was suggested in a note that it might he and energy storage

enhancement or different vehicle class showing altogether. coming up, bloomberg's coverage of the presidential debate continues. mark halperin and john heilemann kick things off at 8:30 followed by the bait at nine. afterward, bloomberg's live where we will speak with the barclays ceo and the elian's chief economic advisor, mohamed el-erian. that is it for "bloomberg technology." tomorrow we will be joined by mike evans. all episodes of "bloomberg tech" are streaming on twitter. at 6 p.m. in new york and 3 p.m. in san francisco.

♪ >> stocks rose to a 15 month high, lifting energy producers. the biggest back-to-back gains in a month. >> top level indictments handed biggestorea's corruption investigation in years. >> trump and clinton meet again in the final presidential debate. clouds gathering over mitsubishi with