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tv   Bloomberg Technology  Bloomberg  October 31, 2016 6:00pm-7:01pm EDT

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concerns people have overheard use of a personal e-mail server from which she again apologized. mrs. clinton: now, they apparently want to look at e-mails from one of my staffers and they should. i'm sure they will reach the same conclusion they did when they look at my e-mails in the last year. there is no case. mark: meantime, donald trump says hillary clinton is not a victim, the american people are the victims. in michigan, he praised james comey. mr. trump: i have to give the fbi credit. that was so bad that happened originally that it took guts for director comey to make the move he made in light of the kind of opposition he had with them trying to protect her from criminal prosecution. italian prime
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minister promises to find temporary housing for more than 15,000 displaced people suffering from a series of earthquakes. a magnitude 6.6 which rocked the same mountainous regions dealing with quakes in august and last week. bloomberg technology is next. ♪ chang and thisy is bloomberg technology. silicon valley's most divisive voice stands his ground. peter thiel defends his support of donald trump. another blockbuster week of tech earnings. everything you need to know before facebook and alibaba report results. theexposing interview with a
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impact of machines and more. peter thiel opens up about his support for donald trump. at a national press club event in washington, he said the presidential nominee represents a new republican party. >> no matter what happens in this election, it is not crazy and it is not going away. trump points to a new republican party beyond the dogmas of reaganism. he points beyond the remaking of one party to a new american politics that overcomes denial, rejects bubble thinking and reckons with reality. emily: thiel has been a political lightning rod this election season. m siliconrned fro valley that almost uniformly oppose the republican nominee. thiel recently increased his $1.25 toby donating the campaign.
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joined me is bob o'donnell and lizette chaplan. it was interesting around those allegations of sexual assault around donald trump, peter thiel said i'm giving you more money. anything surprising about what he had to say today? >> yeah, for the first time he talked about his donation. what he said was he didn't think money was a big issue in this campaign. he hadn't consider donating. they asked him to and he did. called trump's comments inappropriate and offensive. emily: let's take a look to what he had to say about trump's actions, or alleged interactions with women. peter: i don't agree with everything donald trump has said and done.
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and, i don't think the millions of other people voting for him either. nobody thinks his comments about women were acceptable. i agree they were clearly offensive and inappropriate. emily: still, bob, he's supporting him for president of the united states. bob: regardless of -- i don't feel very positively about what he had to say and certainly donald trump have to say -- the only comment i will make is there is an argument to be mad is there is not a lot of diversity of opinion in silicon valley. and in theesting fundamental nature of american society, we have always had room for debate. that is the only potentiall positivly positive think i could savay. emily: the founder of oculus is a trump supporter.
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thetweets rolled in as speech was going. "there is peter thiel and everybody else in tech." , "listen tosaying what he means and not what he says." he is referring to something that thiel said today about take trump seriously, not literally. think about what he means. what do we have to take away from that? lizette: he did say that. i think when he says build a wall -- i don't know what he means by that. emily: it just means i have different views on immigration. lizette: the big thing that came that hethe statement was surprised how controversial
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his position was. done things that are far more far-fetched than this, yet this is the one he agrees with half of the country but taking the most flack for it. businesswise, he suffered very minimal blowback which is a serious statement given some of the comments and the things we have reported on last week with venture firms and some companies. you have said mark zuckerberg said he will maintain his seat on the board. it is a very dangerous road to kick someone off a board because they have different political views. should company separate themselves from peter thiel and they don't believe what he said. >> i can speak to social capital.
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we decided we will spend the time to create a more bottoms up world. i think it is fundamentally about a positive view of inclusion. i cannot stand to work with people directly at social capital who would have views that transcend policies and enters this gray area bordering on hate. i would have a difficult issue with it. emily: you would kick him off? >> i think sober social capital. if it was romney versus obama, that is politics. i'm not so sure this is politics anymore. emily: he would kick him off. bob: other people would as well. we are in the throes of a lot of things going on. it would be interesting to see what the situation is like after the election, after things settle down presumably. what is the reaction and what is
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the long-term impact? i think there are a lot of questions because he's clearly upset a lot of people, thiel and trump. emily: i have spoken to many of and theyel's friends, all, even though they don't support donald trump, they voice support for peter thiel. even though they disagree with him, they respect his views. do you think this will have any impact longer-term on w hether entrepreneurs want to take funding from peter thiel? lizette: i think it will be split depending on how some people feel one way or another. you have the mark zuckerbergs saying we support a difference of opinion. you have the right to support
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whatever political party, beliefs you have. people on the other side are saying this is not just political beliefs, this is hatemongering. that is something that peter did not address in his speech today. you get a little bit of literally versus -- i don't kn ow. bob: he didn't really say that -- i completely agree -- i think that is where the line gets drawn. if you think this moves beyond politics, clearly it will have a longer-term effect. emily: we need an outsider to fix a problem. enough, interestingly it would seem that donald trump was not peter thiel's first pick. he actually first donated to carly fiorina. wishede said that he
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this election would have been between sanders and trump. clearly, his vote is for an outsider. what that outsider looks like is the issue. emily: lizette chapman and bob o'donnell. coming up, staying with peter thiel. the company he cofounded is getting a second chance with a u.s. army contract. a federal judge ruled the army piloted bidding rules by failing to consider commercially available options, effectively shutting down the firm. the court has ordered the army to reevaluate all tech sectors. another jampacked week of tech company earnings. we will break down everything you need to know ahead of square and facebook's results. all episodes of bloomberg technology are live on bloomberg tv. this is bloomberg. ♪
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emily: one-story we are watching, alibaba is doubling down with a new media group and a fund of nearly $1.5 billion. the new group consolidates its media holdings from a video website to the pictures group and gaming and music units under the leadership of the former ceo of alibaba's web browser. report directly to the ceo. time now for our weekly roundup of tech stories of our radar including alibaba. another big week for earnings. alibaba and facebook coming up. videogame makers over the next
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few days. a key deadline on friday for the doubt.ion oracle ceo in joining us now for the most important topics to watch is bob o'donnell and cory johnson. we will start with square. last quarter was a good quarter for square. not so much for twitter. it is apparently a high buy for twitter. cory: i think the biggest focus will be the management issues and whether or not jack dorsey could do a half-time job and when the change will happen. it will have to happen at some point. certainly come of the performance of twitter and perhaps square as well. bob: the other question i have for square is as we start to see the banks get much more involved with these sorts of transactions, easier transactions, they are coming from a position of power. c they really weigh in more
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than they actually have? may have given square a fair amount of running room. will they start to catch up to them? emily: so, alibaba coming up later this week. we have a letter from jack ma to shareholders that alibaba will have to differentiate itself more from regular e-commerce companies. you have to be something more, which rattled investors momentarily. cory: it was fake. bob: it's a fake. cory: they sell it over the course of many days. they already have pr people out there. it is the biggest shopping day of the year. they might record them in one day but it happens over time. that is exaggerated by their accounting. emily: let's talk about the actual results and the efforts
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to be more transparent. are they actually more transparent? cory: i'm unaware of said efforts. it would be good of them to be more transparent . i don't expect them to do so. bob: i think this investment will be interesting longer-term because it puts them in an amazon-like position because they have these content services as well as that. the only question i have is we have heard some rumblings on the issues of the chinese economy. does that start to impact than a little bit? my guess is probably not immediately. longer-term, are there concerns because part of the economy that is supposedly being hit, we have seen matches very well with what alibaba is selling. emily: facebook is coming out this week. the biggest company of the week. cory: perhaps the most important with the impacts of the market. facebook is seeing really celebration of user growth. we have seen twitter sputtering
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with user growth. the numbers out of facebook have been impressive. they have increased the pace in which they are adding users which is amazing given the size of the space. they are able to charge more and more towards advertisers. you look at any basis, year-over-year, straight dollar amount, $5.80 is fantastic for this company. what they were making two months ago was great. the growth is accelerating so they are really hitting on all cylinders. they are growing on the way they collect. emily: is it really just facebook and google in this digital advertising? they are the heavyweights. everyone is just nipping at their heels. bob: that is a fair assessment. to cory's point, they are figuring out other ways to generate more revenue.
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you have the messaging services, direct commerce services. it is a pretty impressive how they are really extending themselves. the other question is there has been this scussion in the wall street journal today, are they a media company or a tech company? media evaluations are significantly lower than tech companies. the question is can they continue to innovate in that regard? for the near term, absolutely and i expect them to have big results. emily: let's talk about oracle next week. is it going to happen? cory: they are certainly playing hardball. they were talking about this very subject. they want more money in this deal. it is because of the corporate governance policies they put into place. this is what she had to say to me. thee have offered $109,
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board accepted that. every shareholder will have to make their own decision. we believe that is the price. they say top of that, it is the best and final offer. cory: if you can read that poker face -- that face looks pretty resolute to me. emily: if it does not happen, is that bad for oracle? cory: it is bad for both. i don't think another bidder will emerge. deck, theorce documents showed us that salesforce does not want to put into a bid. there is not likely to be a second bidder. they may want to take what they can get here. bob: netsuite could lose more than oracle would in this case.
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based on that ownership, it will be tough for somebody else in a similar market -- unless someone from the outside comes around, but i don't think that makes long-term sense. i think oracle is the obvious choice. maybe it does not happen now and they delay it a couple of months, or years, but it will eventually probably happen. emily: bob o'donnell and cory johnson. it is a big week of earnings. thank you both. now to a story that is trending. new research has found racial discrimination by uber and lyft drivers. a study found drivers canceled rides for men with black sounding men twice as much as other passengers. the research has been published by mit and stanford university. the companies say they do not tolerate discrimination.
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coming up, elon musk unveils his latest project and it is not the self driving car or a rockets a mars. s first look at tesla' ever solar project next. this is bloomberg. ♪
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emily: tesla shares fell after the company unveiled its first ever solar car. the soallar roof was elon musk's closing arguments to investors on why they should approve their merger. we explain musk's plan for a solar energy trifecta. >> take a look at the roof of these houses. can you tell which one is covered in solar cells? they all are. its first unveiled product and it is stunning. it is not a solar panel.
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it is a range of four solar roofing materials that look indistinguishable from other products. >> people really love their homes and they want it to be better. with this approach, it can be. >> the top of the roof tile is made of glass. it looks like shingles, but it allows sunlight to pass through from oveabove into cells. tesla says the glass is as tough as steel an can whether a lifetime of abuse from the elements. heatinge fitted with elements to melt off snow. >> you can call your neighbors over and check out this sweet roof. phrase you hear often. >> it is tesla's plan to become
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a son to energy the company. you can run your home on solar power and use the electricity to power your home and car. tesla also doubled the capacity of the battery, creating the world's cheapest storage to extend rooftop solar power into the night. this combination is perhaps the closest we have ever come to affordable off grid electricity. he was a little fuzzy on the pricing details. >> the goal is to make solar roofs that look better than normal roofs. it is less than a normal roof charges for the price of electricity. why would you buy anything else? musk'ssolar roof was closing argument to shareholders before closing the bid to merge
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with solar city to make it all possible. there are plenty of reasons to be skeptical. if musk's polls it off, this trifecta of solar products will be available in stores across the u.s. at the end of 2017. emily: that was tom randall. sitsg up, vinod khosla down on bloomberg studio 1.0. we discussed everything from investments in so-called black swan to a company that has a nearly complete chance of failure. machines he believes will take over the majority of jobs today in four years. this is bloomberg. ♪
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mark: i'm mark crumpton. you are watching "bloomberg technology."
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cnn says it is completely uncomfortable to learn through wikileaks that a former commentator had contacted the clinton campaign ahead of time about a question would be posed during a primary town hall. the material released today from the hacked file of clinton campaign chairman john podesta reportedly revealed at least the second time she had revealed questions the candidate might be asked on the air. an offense of to retake most of from islamicul state is in its third week. the united nations humanitarian chief says is he's is not reached in yemen soon, the country could collapse. -- if peace is not reached in yemen soon. complicated matters desktop locating matters, yemen also has veral confirmed cases of
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cholera. the world's largest producer and consumer of coal but has announced plans to close more than 1000 old mines. i'm mark crumpton. this is bloomberg. it is just after 6:30 here in 9:30 in sydney tuesday. has theague paul allen report. new zealand has been running for 90 minutes. futures indicate the a a sex is expected to be off by the same amount at the open. a lot of earnings coming out of japan today. a lot of the action will be focused on the japanese yen today with the bank of japan holding its policy meeting, expecting to see the cash rate of aunchanged at -.1
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percent, and we will be watching for information on inflation growth and also any information on how bank of japan might want to meet its targets for the 10-year yield. we're watching the australian dollar as well with the reserve bank of australia also holding its meeting today. stay unchangedo at this record low. third quarter exchange last week was still weak but showed some improvement. surveyed 28 economists say there will be no change. more from "bloomberg technology" next. this is "bloomberg technology." i'm emily chang. now to bloomberg studio
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1.0 where we speak to the rs of media andce technology. i started by asking vinod khosla about his humble beginnings in delhi, india. khosla: we started another company called the data dump about three months before we started sun. story for the following reason -- nobody remembers your failures. this is great about entrepreneurship -- failure does not matter, but one's willingness to fail gives one the ability to succeed. if you are not willing to take risks, if you are not willing to fail, you're not going to do anything interesting because most interesting things are new, and new things involved risk,
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and risk involved failure. emily: why did you leave when you did and what was your biggest take away? khosla: i started a company called daisy systems. it was quite successful and went public in 1986, and it made more money for me than i thought i needed ever in my life, so i then want to do -- i then wanted .he freedom i joined one of my lead investors to mentor and help entrepreneurs. emily: how did the industry back then compared to today? khosla: there's many more .nvestors now many bad ones, some good ones. i think entrepreneurs need to understand that. i make it in trouble for saying that, but entrepreneurs have much more options. you got multiple degrees,
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engineering at the institute of technology, biomedical at carnegie mellon can, and -- carnegie mellon, and an mba at stanford. you wrote that it does not necessarily set you up for success. this caused some controversy, which i know you're not shy about. one commentor wrote that the humanityrtion is that the accumulation of wealth. what is your response? khosla: that is a nonsensical response. i speak to 80% of students who do it for the wrong reason, but bottom line, if liberal arts goals are the goal, then liberal arts is the wrong curriculum. logic and philosophy should absolutely be part of any liberal arts curriculum because
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otherwise, you do not learn how to think. linguistics, economics, learning how computers work because we live in a computer age. a second language that is french for some esoteric language when the most important second language is computing? not that most people ever need to code, but because it is a style of thinking. the critique is all from people i feel they'll to understand, which is exactly the point i was making. should there, like the one you mention reinforced the notion they did not get a good education? emily: do you think college is important at all? should kids go to college? peter thiel is paying them not to go. khosla: i disagree with peter. i think college and high school are very urgent. there are people who do well without an education and people who will do well no matter what subject to take. i think college gives you a grounding to be able to do
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things that adapt over time. on bloombergkhosla ."tudio 1.0 more khosla giveswhen us his take on the gender gap in silicon valley. this is bloomberg. ♪
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emily: an partita of our conversation with vinod khosla, we talk about the advice he gives to entrepreneurs -- in part two. we talked about why he believes most vc's actually hurt rather than help. take a listen. khosla: applying business metrics to innovative startups is the wrong thing.
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when people do that, they actually hurt and company. i do not believe just because you have earned the right to advise an entrepreneur, but being a board member. if you are going to advise entrepreneurs, you should have started companies, known how hard and painful it is, how difficult the trade-offs are. it is painful being an entrepreneur. life is not see, not unless you have empathy for an entrepreneur by having done it yourself -- easy.s not in 30 years, i have never ever voted against an entrepreneur. they do not need hypocritical politeness from board members trying to be their friends and not help them think through all the risks they are going to face and challenge them. you also do not go to board meetings if you can help it. khosla: i do not go to board
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meetings because i cannot and -- cannot stand to listen to other vc's talk about things -- emily: what is your advice? khosla: do not take advice because it is from the board. ignore the board to the maximum extent you can, but consider the input of people who have real experience as input to your thinking. emily: we have talked about the lack of women in the venture capital industry. what do you think it takes to be a successful vc? do you need to have a stem degree? some of your top partners do not. do you need to have been a round or? you do not need to have a stem degree. it helps because you are dealing with technology. speaking their language makes it easier. probably, and this is not even
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essential, the most important requirement is having been an entrepreneur. emily: is that why it is harder to find women in these roles? khosla: i think there are fewer women in these roles, so as more women play and offer powerful, -- weat is increasin have more women playing in entrepreneurial role in deeply technical areas -- they, when they get enough experience, will .e a powerful influence we need to encourage more women to be entrepreneurs. emily: you have a broad range of unusuallympanies with high failure rates. you say every four or i've years you go into an area you know nothing about -- every war or five years -- every four or five years. khosla: i really enjoy learning
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about a new area. independent of if the company is successful or not, i will have learned a lot. the two most important things that can happen in technology that really change humanity for the better is artificial intelligence and nuclear power. two thingsink of any that would impact humanity more than those inks. emily: you recently tweeted it ai scenario happens, we will have abundant gdp to take care of everyone. only people who want to work will need to work. paint a picture for us. ai does what humans can do, it is pretty likely in existrs all the jobs that today, the majority, more than 50% will be done by machines, if it is a farm worker, a hamburger flipper, a
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legal researcher, a radiologist, pathologist, or oncologist. if that happens, we will have dramatic gdp growth, dramatic productivity growth, all the tradition of economic metrics, and because more people are able to work, more income disparity. it's hard to say if that will happen in 30 years or 50 years, but it will, i'm sure, happen. the question is how we rarely address the people who are left out of this. addressed thely people who are left out. we will have enough gdp to provide basic income to everybody. butow it sounds horrific, if per capita income is $150,000, $200,000, $300,000, i
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think some kind of income as per capita income climbs above $100,000, will become very important, and that will be a social and political issue we have to address. there.vinod khosla oft, we dive into the future maker-- eggless mayo hampton creek. this is bloomberg. ♪
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emily: returning to my exclusive conversation with vinod khosla, khosla ventures and hampton creek -- investor and hampton creek. khosla for his thoughts on the troubled company's future. vinod khosla there was a --
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khosla: there was a bloomberg article recently. formerorter believed a employee who bought some stock and accused the company of giving false information. stock. have bought his if he thought he was defrauded, why not sell the stock back and not lose a penny? is an investor. he did not feel defrauded. his wife is on the board. stuff were is other will discover. i personally went and talked to him. he did not have one credible allegation. i talked to the people he suggested i talk to. botherdo the allegations you? do they concern you? eddie company that has
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employees leave, they have allegations. sometimes they are right. 70% of the time, they are just bitterness. we look into them when they are serious. i will not comment on the specifics, but suffice it to say we are always looking. is the buyback relevant? the 77,000 dollars reported? completely irrelevant to our .nvestment decision egg board was plotting to destroy hampton creek because the egg industry hated them. unilever sued hampton creek for calling their mayo mayo and then withdrew it because they realize how bad it was.
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the use federal funds in the department of agriculture to target a company with e-mails asking how we could prevent them from getting distribution. why would a federal agency be trying? because there's interest involved here, people who are being disrupted and will get hurt. complexell you it is a story, but i cannot go into specifics. do you still think this will be a winner in your portfolio? do you still think this company can transform the food chain as we know it? khosla: hampton creek has already done a lot to change the food chain. when they ares born are crushed live -- it's worth it. changing that practice,
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bringing visibility to it. caged hens -- he is bringing visibility to it. even if they are not successful, they will have made a difference by bringing visibility to these real industry -- these real issues that the egg industry is trying to distract from. as far as the ceo is concerned, we normally talk to his team and see if the team supports the ceo . when they do not, do we have to talk to the ceo? do ceo's make mistakes? absolutely. do we make mistakes? absolutely. emily: you are very passionately about cleantech. some might say you have made a mistake going into this field. tech is anan important area. climate change is an important risk. i view climate change no homelandly than i view
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security, nuclear proliferation, terrorism -- they are all risks society faces, and we should -- that.ainst the how much of our gdp do we spend insuring against foreign attack, national defense, homeland security? we should treat climate change the same way. we should encourage new competitive technologies to come up and then stop supporting them when they get to a certain size. it is time to stop supporting wind. maybe even solar, the subsidies should start to decline. we have done ok in cleantech. we probably have six companies that could be worth $1 billion still, but i would rather try and fail than fail to try, something that is really important. clear you care deeply about the environment. you are incredibly philanthropic, you have pledged
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to give away half your wealth. yet, a story that gets that to you is a lawsuit you are involved in around public access to your beach. some would say that is at all is. i normally do not like to talabout ongoing litigation, the giving up half your wealth does not affect my lifestyle. i find that i can spend more of my time working with technologies. i will probably have way more impact than from my giving. the other half of that is having principles, having a point of view, having a belief system. it is amazing to me how many read the00 ceo's press, read "wall street journal" and respond to it instead of saying, "here is what we believe in as a company." they have a passion that far
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desire forir short-term profit, and because of that, they make more wealth and more profitable the long haul. is to give you freedom to do what you want to do and many people get trapped in the cycle of making more. that is not that interesting. thinksll the deals, he it is smart to avoid taxes. it just blows my mind. i am religious about my belief systems. back to your question, the battle on the beach is about property rights and about a set who told me they would like to embarrass me into giving up my rights. if you have a belief system, even though it is unpopular, even though the press and knocks you for it, you want to live by your principles. if it's that or protecting private property rights and
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fighting or what the law is, and with it is not clear, there are clearly some things that are not clear in the law. it is important to get them legally resolved. emily: our exclusive interview there with vinod khosla, founder khosla ventures. do not miss our interview with steve ballmer. chipmaker broadcom is believed of the potential buyers. in acquisition could be announced as soon as this week. to growhas struggled its networking business, which has competed with much bigger rival, cisco. speaking of deals, the two biggest daily fantasy sports sites are close to joining.
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is expected to serve as ceo of the combined company, still unnamed. investors have been encouraging a tie up for months after the companies spend millions competing against one another. that does it for this edition of "bloomberg technology." tomorrow, 10 in foursquare's latest earnings report -- square's tune in for latest earnings report, another test for jack dorsey after twitter reported earnings last week. this is bloomberg. ♪
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narrator: from our studios in new york city, this is "charlie ose." rose: ted koppel is here. he served as anchor of "nightline" from 1980 32 thousand 5, 25 years and earlier this year became a special contributor to cbs sunday morning. recent book, lights out, a cyber attack, a nation unprepared surviving the aftermath"

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