♪ >> it is 1:00 in hong kong. shares are trading after the lunch break, extending gains from the morning session, up .7%. onc reporting a beat estimates. ceo stuart gulliver has been trying to maintain revenue while paring global operations. chief executives says the territory will adopt a ruling from beijing barring anyone from independence holding

public office. of the ruling came hours after a police couple with protesters -- scuffule with protesters. huei has been ousted after three years as secretary general. he will face the task of reining in excess leverage. global news 24 hours a day powered by 2600 journalists and analysts in 120 countries. this is bloomberg. we are seeing a pickup in risk appetite following the fbi saying clinton has been cleared of criminal wrongdoing with an upside in hong kong and shanghai. ♪ emily: i am emily chang and this

is the best of "bloomberg technology." we bring you our top interviews from the week. coming up facebook is projecting , a slowdown in ad growth. have expectations for the social network been too high? alibaba shrugs off the chinese economy with double-digit growth. how long can the world's biggest e-commerce company continue to defy estimates? steve ballmer weighs in on the u.s. election. why the former microsoft chief is advising ceo's to keep their political opinions to themselves. first to our lead, facebook had had a quarter that blew past expectations. that's up 50% from the same quarter last year. that is a profit of $2.4 billion. up more than 160% to year-over-year. it is the sixth straight quarterly beat for facebook. it has increased sales by 50% in the last four quarters. yet, executives suggest they won't be able to repeat the performance and investors are

taking note. james joined us along with cory johnson. take a listen. beate expectations for a were quite high. by any reasonable measure, this is a fantastic quarter for this company. the business is at scale. in particular, there was not an acceleration of mobile revenues. as a percentage of sales, maybe. it was hard to find a reason. emily: it remains relatively flat. 84%. it was at zero four years ago, right? cory: any number of statistics you look at this is a fantastic , report. emily: james, would you agree with that? james: it is a fantastic quarter, but a quarter after the trend we downgraded. i got a lot of heat for it. the reason we downgraded is coming to fruition. the reason that the stock is acting this way is when you look

at it next year, the growth has been coming from a function of ad-load growth as well growth and user growth. the users and the engagement of growing nicely. the ad load will be stalling in 2017 because you don't have another platform like instagram. messenger and instagram monetization will take more time than some investors were hoping. emily: instagram ad revenue growth is faster than the actual website. .t is what the cfo told us cory: without giving us a actual numbers. emily: in general, they are saying that the growth has been broad-based. how effective would you say facebook at this point is?

cory: one of the metrics is user value. nearly two thirds of all users are on the service every day. that's a very important metric. not just facebook members, but facebook users on a daily basis. it is part of their regular lives. you can see the value of the industry increasing dramatically. 18 months ago, it was $4.25. the quarter they just reported is up to $6.08 for every single user on the site. that's an astounding number in one order. to see that, this is not an immature business. it has yet to show the true seasonality and advertising based business much of. that is, second quarter numbers slow. it is still growing like a young company even at this size. emily: they are continuing to take a page from snapchat. instagram started doing stories.

now facebook is saying they are working on a camera first-sharing option on the main website. take a listen to what mark zuckerberg said on the call. mark: the text box is still the default way that we share. soon we believe the camera will , be the main way that we share. we are testing this in our main facebook app with the camera directly one swipe away from newsfeed. it has creative effects for photos and videos. in messenger, we are testing new camera and video features. we will experiment with more tools over the next few months as well. emily: james, does that sound like snapchat? james: i mean look, i mean it sounds great. it's not easy to change behavior. look at digital payment. it's not taking off. the apple watch is intuitive, but it's not taking off. video messaging versus textbased is a novel concept, but not easy.

the bottom line is this, i agree with cory that everything looks fantastic across the board. when you look at it from an investment standpoint, the street was looking for $40 billion in revenue. unless you get 10% upside, the stock is not going to move favorably. i thinks that what you see today. it's a good performance against a great performance expectation backdrop. emily: over one billion active users on mobile. there are 7 billion people in the world. the majority of them don't have the internet. at what point do we simply reach a ceiling? cory: we looked at this as the ipo. we said they needed to get into china or mobile or the numbers would not get better. it was too expensive a stock. and it plummeted, it fell over its first couple of months as a publicly traded stock and they figured out mobile. you have 1.66 billion users on

mobile. mobile revenue is $5.7 billion. to james's point, that flat 84% quarter-over quarter growth, that shows the lack of improvement in terms of mobile revenue. it is still a lot. 84% of all users revenue coming from mobile. it's maybe not more or not enough from a wall street perspective. i think from a business perspective, any of us would kill for these numbers. emily: that is the thing we have talked about. with the rise of snapchat, we see facebook copying snapchat. does the coolness factor come into play? cory: james knows all about coolness. emily: that is why i'm asking you this question. are you concerned that facebook is not cool enough to sustain this growth over the next avril -- several years? james: no, i don't think so. they have instagram.

it's incredibly popular. messenger. it has all of the scale. you go where the people are. people are on facebook. so, i'm not worried about the coolness factor. one point on the engagement, you were talking about a ceiling. when you look at the dau over mau, the engagement rate, that is holding around 77% domestically. it seems that we are not creeping that much higher above that figure. so the question is, are you as saturated as you possibly can be on the daily front in terms of users and extrapolate that? cory: but given that number in the u.s. they had 66%. , that would give you 1000 basis points in improvement potentially across the rest of the world. it's interesting to look at the desktop only users is down to 130 million. so increasingly you have people using facebook on mobile. that is where it is happening

every single day. emily: that was james as well as our bloomberg tv editor-at-large cory johnson. still to come, what slow down in the chinese economy? alibaba outperforms again. how long will this last? plus, we will hear from a ceo saying the internet of things will lead to a fourth i.t. revolution. this is bloomberg. ♪

list: mobada has joined a of investors getting into the softbank million dollar tech fund. they plan to incorporate money and sovereign investments into a potential $100 billion fund. softbank is in talks with european and north american investors if the fundraising target is met. the fund becomes the biggest equity fund in technology. china's largest e-commerce operator is shrugging off concerns about a slowdown in the local economy. alibaba posted second-quarter earnings up 45% and revenue up 55%. the company cited strength in cloud services. also entertainment and cooler e-commerce. we caught up with selina wang and kevin carter, whose largest holding is alibaba. take a listen. >> the emerging markets are just

now getting the internet on mobile devices. the consumer is the real growth story. just as the mobile and internet has changed the way we consume, it is changing how emerging markets consume. china being the largest. it's the reason you see such incredible growth. 55% topline growth for a company the size of alibaba is quite extraordinary. before this, you were reviewing facebook results. they also grew at 55%. there are not any companies the size of those two that can grow at faster than 50% on an annualized basis. emily: but they are saying there have been broader concerns around growth in the chinese economy slowing. i sat down with mike evans of alibaba. take a listen to what he had to say. >> china is not in the bubble. the economy is slowing but not slow. and the combination or components of the economy are changing rapidly from investment

in old industrial and manufacturing to service and consumption. emily: as someone who focuses on emerging markets, do the numbers in china concern you at all? >> they don't concern me. they are obviously slowing down. they have been slowing down for a decade. but it is absolutely right. i do not think china is in a bubble. there may be pockets of overvaluation or excess. this is a secular story. this is the emerging markets consumer, the chinese consumer is a big deal. mckinsey calls it the biggest growth opportunity in the history of capitalism. you are taking those consumers and you are now giving them the internet on a smart phone and ing what are leapfrogg we would think of as traditional consumption. they don't have malls like we do.

when you urge the consumer into low-cost smartphones and broadband internet access and local entrepreneurs backed by u.s. venture capital investors, you get this incredible confluence of growth. the emerging markets internet sector is growing at about 40%, the publicly traded companies, of which there are 45. emily: break down the individual alibaba, from in e-commerce to the cloud, and how each fared individually. some impressive growth, as kevin said. it was 50% in that core business. cloud computing is something investors have been watching mostly. >> there was triple digit growth again as well as the new entertainment unit. cloud computing still had some losses this quarter. but given the rate of growth, analysts say it could be profitable in the coming quarter. core business is still strong. you are seeing triple digit growth in some of the new

, faster growing businesses. emily: at the same time, they are facing questions about transparency. they say they are making efforts to make the financials more transparent. at the same time, there is concern around singles day that is coming up. how do they calculate revenue there? tell us what is going on with that. >> they did not give any more details this time. they reiterated what they have said, they are voluntarily cooperating with the sec on accounting processes. there was a recent new york post article that said a whistleblower is cooperating and giving them information. joe said, that's completely false. that's not real news. not a lot of details on what is going on. to break it down, it would be how they were accounting for their logistics business and how they were accounting for singles day. emily: transparency issues

around chinese companies is not a new issue. are these things you think about? kevin: they are in the news. i am not concerned about them much at all to be frank with you. i think alibaba is a very clean company. i think it is a well-managed company. one thing investors forget is everything is relative. investing in emerging markets is risky. one of the big risks is corporate governance. look at petrobras, the giant brazilian oil company, they have serious governance problems. it is not just petrobras, but all of the chinese state-owned enterprises that dominate the chinese indexes and emerging markets indexes, 30% of the big emerging market etf's are in state owned enterprises where corruption and fraud are rampant frankly. all you have to do is look at he headlines every day in brazil with petrobras, and you see there is a lot of risk and corporate governance risk.

the rest of the emerging markets, i would say alibaba and other emerging companies backed by u.s. institutional investors have better corporate governance then you find on average. emily: singles day is a few days away. mike evans told me that they are expecting more revenue than ever before. that is not a surprise. talk to us about broader expectations for this particular day and how they will be accounting for it given this additional scrutiny. >> it's not clear how they will account for this differently. we will see that in the coming days and weeks. mike evans in your interview said he expects the numbers to be even greater and something they are emphasizing is lead up activities. they have already announced katy perry is one of their global ambassadors. they have a slew of celebrities that are going to be on stage during singles day. they have a virtual reality shopping they will test out. they have a fashion show where you can see what the models are wearing as they walk down the

catwalk. you can buy those products ahead of time. they started to roll out so many more products and games and activities to hook people into singles day. the minute the clock hits november 11, we will see numbers skyrocket. emily: that was selina wang and kevin carter. coming up, elon musk unveils his latest project and it's not the self driving car or a rocket to mars. we will take a look into tesla 's first ever solar product next. there has never been a u.s. presidential election with his much big data analysis. what kind of impact is it having with just days to go before the u.s. election? we will discuss that later this hour. this is bloomberg. ♪

emily: tesla's balance sheet may get a boost from solar city. the impending acquisition could add a billion dollars to its cash balance in three years. elon musk, chairman of solar city, has been making the case for a tie up since august. the deal has been criticized, with some calling it a distraction from tesla's carmaking business. meantime, tesla is out with its first solar product, the solar roof. tom randall explains musk's plan

for a solar trifecta. >> take a look at the roof of these four houses. can you spot the one covered in solar cells? that is a trick question. they all are. tesla just unveiled its first ever solar product. and it is stunning. it is not a solar panel. it is a range of solar roofing materials that look virtually indistinguishable from slate or modern asphalt shingles. >> people love their homes. they really want them to be better. i think taking this approach it can be. >> here is how it works. the top of the tile is made of textured glass. it looks like shingles from most angles but it allows a sunlight to pass through from above and into a standard solar cell with almost no loss in efficiency. tesla says the glass is as tough as steel and can weather a

lifetime of abuse from the elements. it can be fitted with heating elements to melt off snow in a colder climate. >> you will call your neighbors over and say, check out this sweet roof. it's not a phrase you hear often. >> this is the planned unification of tesla's plans to -vehicle energy company. the idea is you can run your home on solar power and use that electricity to power your home and car. tesla doubled the capacity for that power battery creating the cheapest lithium-ion storage for solar power into the night. this combination is the closest we have ever come to affordable off grid electricity. musk was fuzzy on the pricing. >> the goal is to make solar roofs that look better than a

normal roof, and generate electricity, last longer with better insulation and have a cost that is less than a normal roof plus the cost of electricity. why would you buy anything else? >> the solar roof was the closing argument to shareholders to approve a bid to buy the the biggest u.s. rooftop solar installer to make it possible. there are plenty of reasons to be skeptical, but if he can pull it off, this trifecta of tesla products, the solar roof, the power wall and the electric , car will be available at the end of 2017. emily: competition to reign over the internet of things is heating up. one company looking to make its is ct i3. their aim is to connect manufacturing equipment and

medical devices and all of the things used by the world's largest companies. funding peaked last year, hitting a whopping $3.2 billion, double what it was in 2012. those numbers are expected to decrease to $3 billion this year according to insight. the founder and ceo worked at oracle back in the day. he joined us to discuss the current iot landscape. tom: i have been in the business for four decades. i have seen the transition to mini computing to mainstream computing to cloud computing. each of these was a replacement market. i think that the next generation of computing is all about smart connected devices and the internet of things. this is an entire replacement market for everything that's happening in enterprise software. just like all of the others used to be. emily: what are the limits of iot?

we hear that there will be chips in our bodies. chips in our food. chips in our clothes. where won't there be chips? tom: i think that is correct. i think at the beginning of this century, there might have been a half-million sensors out there. today there are 39 billion. in five years, there will be 50 billion. in 10 years, each of us will have them embedded in our bodies or wearing perhaps 10 sensors. everything is being sensored. health care, financial services, telecommunications, transportation, the energy industry, you name it. emily: you are taking on companies as big as ge. as well as a host of small startups. microsoft is backing some of these upstarts. what do you have on them? >> when we started oracle we , took on all the big software companies and we did pretty well. we took on all the large software companies like ibm and we did pretty well. in each of those markets, we established and maintained market leadership positions globally. we have about 100 million

sensors under management today. that is 100 million more than anyone else in the market. so far we are doing well. , emily: what about the security issues, the cyber attack issues? the fact that, you know, for every chip, that means another potential vulnerability? >> this is a critically important issue that we do not pay enough attention to. you look at the threat, the critical infrastructure threat we are under. there is a myth that we are more secure behind our own firewall than in cyberspace. i would argue the opposite is true. see the nsa for details, the department of state for details. emily: what do you mean by that? >> the data used to be secure in our own data rooms when it took a forklift to move storage devices. it no longer takes a forklift. that is the opportunity where we

can secure data. ok, using encryption and avoiding penetration is in cyberspace. i think this is the place where we can secure it. emily: that was c3 iot founder and ceo tom siebel. coming up, we will hear from l.a. clippers owner steve ballmer. his take on the election, donald trump versus hillary clinton. and peter thiel defends his support of donald trump and says he's not the only one. ♪

>> it is 1:30 in hong kong. i am haidi lun with an update. shares are extending gains 2% after they reported profit of $5.6 billion, a beat on estimates. hsbc ceo stuart gulliver is trying to maintain revenue. efforts to reach global assets into asia have been complicated by china's slowing economy. hong kong's chief executive says there will be the immediate adoption of a ruling from beijing that came from the national people's congress committee hours after police

scuffled with protesters in the biggest anti-beijing rally in two years. hong kong stock is plunging. prices are falling between 5% and 8%. on friday, the government announced plans to raise the stamp duty to 15% for residential purchases. a japanese company is cooperating with investigators. raids wered that over suspected breach of overtime limits. 24 hours a day powered by 2600 journalists and analysts in 120 countries, this is bloomberg. let's look at how the rest of the markets across the asia-pacific have been trading today. >> look at this for monday.

a lot of buying coming through across the board. this is after the fbi basically went back to what it said in july that hillary clinton's use of an e-mail server as secretary of state was not a crime. we have a lot of buying in equity markets. the yen is having its biggest drop in a month. that has sent the nikkei up 1.6%. a lot of solid buying in export companies and upside in nearly every asian market. the one downturn we have seen is property stocks in hong kong. , rebounding .6% from the three-month low reached last week. the australian share market closing at 1.4%. new zealand closes up 2.5%, the seen in new we've

zealand equities in five years. this is a market that has been in correction territory. in asianrecall equities. we will be live from london at the top of the hour. ♪ emily: welcome back to the best of "bloomberg technology." i'm emily chang. with the u.s. election just days away, we have been covering how the results could impact silicon valley and the repercussions for tech globally. i sat down with steve ballmer and got his take on the pending election and what businesses can gain or lose. take a listen. i know you typically vote republican. steve: i never said that. i am an independent. i am not registered with either party. i am an independent. i care about issues deeply. i will vote for anyone who shares my interests. emily: what do you think a hillary clinton presidency would

mean for innovation? what would a donald trump presidency mean? steve: neither plan has much to do with job creation. i am probably less convinced that federal government action versus local government action has anything to do with job creation. i think job creation comes out of productivity gains, which comes out of innovation. emily: do you think this election has become too much about not the issues, not enough about what's important? steve: it's become a lot about personality. that should always be a little part of things. but on both sides, that's been blown up. emily: we have seen so many people in silicon valley come out and say they are against donald trump. they are voting for hillary clinton. why not be more public about it? steve: i would advise ceos to

keep their political opinions to themselves. emily: why? steve: they will be running their business under either administration. their shareholders may not agree with their views. companies should represent their shareholders. whatever happens, probably at least 40% will vote for either of the candidates. i don't think that's a good thing to do. a company should stand up for their issues, but i don't think they should pick a candidate. at least i wouldn't want a company in which i am an investor to do so. as a private citizen, i will vote my mind. the thing i will emphasize is the issues i care about and the facts. emily: my conversation with steve ballmer. be sure to catch my full interview with ballmer on studio 1.0 on bloomberg television this weekend. silicon valley investor peter thiel opened up at a national

press club event about his support of donald trump. he said the presidential nominee represents a new republican party. peter: no matter what happens, what trump represents isn't crazy and it's not going away. he points toward a new republican party beyond the dogma of reaganism. he points even beyond the remaking of one party to a new american politics that overcomes denial, rejects bubble thinking and reckons with reality. emily: he has been a political lightning rod this election season, attracting scorn from silicon valley leaders who almost uniformly oppose the republican nominee. despite the criticism, he recently increased support by donating $1.25 million to donald trump's campaign. let's turn to big data and what it can tell us about voter sentiment at this moment. crowdpack is a startup that makes it easier for people to

learn about who is running for office. you can log on, get information about which candidates share your views. this data is based on public information from fundraising to voting records. take a listen to our interview with the ceo steve hilton. >> there is an interesting thing that has happened in relation to people who used to support those aggressive challengers to establishment republicans like paul ryan. they seem to have flocked to trump, which says that the tea party has become the trump party. the other thing that has happened is a lot of consolidation behind hillary clinton, where a lot of the holdouts, the bernie sanders supporters, finally seem to be in terms ofay donations, if not necessarily their opinions. there are some interesting

changes. i think actually the kind of data that we are providing now for our users, where it's going to be most useful is not at the presidential level, but lower down the ballot where people haven't got any idea about who the candidates are for state legislature or so on. those really important positions that affect education and health care and play a big part in people's lives. and yet, candidates often get on the ballot without anyone understanding where they are coming from. we think our data which looks at who is giving them money gives users a good guide to where the candidates stand and who might be closest to their view. emily: you mentioned that hillary clinton has finally consolidated the democrats. it has happened in the last few weeks. trumpas vastly outraised in every industry except for agriculture. steve: to be honest, he hasn't put that much money into

fund-raising. you do not go out and try to raise as much as possible. it is interesting that the republican candidate is not getting the support of business across the board, apart from that one sector. it's a particular interest, the tech sector is united behind clinton. obviously peter thiel has been a high profile exception to that. but generally speaking, technology, like other industries, is getting behind clinton. emily: what about smaller donors in general? how have both of the candidates handled that? steve: trump has done really well with small donors. he has made more of an effort. that happened over the summer. clinton has certainly diversified her base somewhat. but she is still very reliant on some of those big donors and trump is the one who seems in more recent time to have done

better at mobilizing small donors. i think that frankly, at the presidential level, there is still far too much influence of the big check writers, the big donors, and we've got a long way to go before we get that true democratization of political fundraising, which is one of the reasons we started crowdpack. in a last week before the election what benefit can , fund-raising have? i know there is last-minute fundraising going on. what impact does it really have? steve: there are two important things to bear in mind. first of all, at this late stage, one of the most familiar things that campaigns do is spend money on ads in certain parts of the country get absolutely sick of because they can barely turn on the tv without seeing a political ad. that does not deliver very much benefit at this late stage because you can barely even purchase the inventory.

the crucial point is the way the system works. because of the electoral college, the election is decided state-by-state. if you live in one of the many states that are solidly democratic or republican, your vote is unlikely to shape the outcome of the election. that's why we hear so much about the battleground states. one thing that is interesting is something that happened recently. someone has created a crowdfunding campaign on to raise money to give people rides the polls. they are teaming up with lyft. this is right on our homepage right now. even if you live somewhere like if you are-- watching this from california or a democratic state, frankly looking for something to do to support hillary clinton, this is one of the practical things you can do, give money, so people

who live in the battleground states where the election is going to be decided can actually get to the polls and vote on election day. emily: it's good to hear that you're doing that. pack not existwd in the last election. do you see evidence it is working? >> i don't know. that is definitely a big part of our mission. we want people to participate in politics at every level. we are trying to build tools that help them run for office. especially at the local level , where we want people to engage and be better informed when it comes to voting. and, as we just discussed, to raise money, so we don't have a system that is so dependent on big donors. i think there is a real problem with the fact that so many people are not interested and really turned off by this election season where the candidates at the top of the

ticket, in different ways, have proved so unattractive. focusing ondpack the local aspect of politics is the best place. people feel if they run for office in their community, they can make a difference. you can see the difference you make. there is less cynicism and less partisan bickering. we think local politics may be the best place to get people engaged. emily: on the presidential election, there are concerns the polling might not be representative of the actual result. we saw this with brexit. which you are very familiar with. what are the chances that this election turns out that the results are different than what we believe them to be? steve: i think there is a high chance of that. i think it speaks to one of the

big similarities between the election and brexit. you've got a huge group of people in america as you have in the u.k. who for many years have felt that no one is really listening to them. their incomes have fallen. they are losing their jobs. they feel let down by whoever has been in power. whether that is labor or conservative in the u.k. or republicans or democrats here. their attitude is what difference does it make? they haven't voted in many years. those are the people that, with brexit thought here is a chance , to make a statement and get a big change. they see the same thing with donald trump. i would not be surprised if there are a lot of people out there who are secret trump supporters who have given up on politics and think he might be the disruptive shakeup the system needs. they are afraid to say so. because of all the attacks they see, particularly in the media. emily: that was crowd pac ceo steve hilton.

coming up, toyota is heading down the ridesharing route. the automaker's new deal with get around. if you like bloomberg news, check us out on the radio. you can listen to us on the new radio app, and in the u.s., on sirius xm. this is bloomberg. ♪ emily: india's largest

ride-hailing startup is raising $600 million. this is according to someone familiar with the matter that says that would give them enough capital for 18 months. current investor softbank is said to be participating. staying with ridesharing, toyota is the latest auto maker to hop in. they are partnering with a san francisco-based startup that allows owners to rent out vehicles when they are not in use. the program will start in san francisco in we caught up with

january 17. the ceo. take a listen. sam: we are partnering with toyota in two ways. so, one is on the technology side. the other is really on the finance side. the simple way to think of it is, you can walk into a toyota dealership and buy a car or lease a car that you will share on getaround and pay for it out of your earnings. emily: i have talked to you a couple of times over the years. you saw your first burst of publicity before uber and lyft were anything. and i am so curious how this has evolved as ridesharing has taken off. sam: we see them as complementary. i think the shift we are seeing with consumers is the move towards accessing transportation through a smartphone on demand. more and more people are moving to a world where they're living car free and need access to mobility services. you can use something like uber and lyft and getaround in a

very, very complementary way. that is great for us. as companies like uber are changing how consumers use and consume transportation, that is creating a new market for get around. emily: in a future of self driving cars, why would i want to own a car at all? sam: you have a choice. i mean, what's happening now is we are making it easy to own a car for free. we are integrating our technology with toyota to make it come that way right out of the factory. so you could choose to own because you want a particular car or you need one every day of the week. but you could also choose to live entirely car-free and just rent cars on get around. it gives more power to the consumer and allows them to make that choice. it makes things that much more fluid. emily: elon musk says he is trying to do something similar to what you do. what do you make of musk's plan? sam: we love it. it is great to see elon

embracing car sharing that way. we have had tesla share on get around for four years at this point. for us, it's validation that this is happening, it's just going to happen a faster. emily: paint a picture for me in five or 10 years. do you see a certain number of people just will not want to have a car? some will want to have a car? what sort of percentage do you see doing each thing? >> so we believe that 5-10 years from now, sharing cars will be the predominant way people use the vehicle. the concept of everyone buying a car today and using it themselves, with technology that's going to go away. it doesn't make sense. it's not sustainable. we have 250 million cars in the u.s. and we use them 5% of the time. that is just like a waste of a massive amount of resources. technology is enabling consumers to be much more efficient and that trend will only accelerate. emily: how big of a market will this be?

for getaround? >> this is the car market, the same as the ownership market. what you are seeing is a reorientation, a change out in the value of how you own and operate vehicles as an individual consumer. emily: hang on a second. i want to turn to the larger industry. uber announcing a partnership with gm's maven. gm is a major backer of lyft. i want to bring in eric newcomer. what more can you tell us? >> it's a pilot program right now between uber and gm. it's 90 days in san francisco but there is interest to work together more. you know, general motors has been building out its own car sharing business called maven. it wants to find ways to get cars out to consumers and businesses like lyft and uber. emily: sam, you are not just competing with uber, lift, and tesla. also gm.

what do you think will differentiate getaround from all of these different options? sam: our model is different. these are cars people are sharing with other people. we don't own the cars. like gm and maven. that is, fundamentally, a very big difference. we've been doing this for a number of years. we have developed quite a lot of unique technology and intellectual property in this space. we feel that is one of the reasons why toyota chose to work with us. they looked at all the partners globally and decided that what we developed and how we see the future of the world, those two things are very aligned. so we feel like that puts us in a very unique position and we intend to continue innovating like we have for the past three years. emily: eric, there are a ton of different automakers and ridesharing services. there are different permutations of how they serve customers. is there room for everyone or will there be some sort of

consolidation? eric: i think there will be some consolidation. but at the same time i think all of these companies see the same trends that show what they are growing toward a move away from car ownership. so, if those things happen and more people live in cities and those cities are crowded, they don't want to deal with managing their own cars, you could see a number of successful players and successful models. you take an uber around the city, but then you want to go for a hike and you use a car share. i think there is room for multiple types of companies with the space, especially if there is a movement culturally. emily: how do self driving cars fit into your vision of the future? sam: we welcome self driving technology. we anticipated this would happen eventually, maybe starting with the connected car.

but that makes the model that much more fluid, if you can share your car with more people in the city. emily: do you see people wanting to own a self driving car? is the model for self driving car ownership different than car ownership as we've known it? sam: i think car ownership will change. i think you will see individuals still owning cars. you might see entrepreneurs own a small fleets of cars. you may see large fleets of autonomous cars. i think what you're going to find is that the idea of everyone owning a car will change. i do not think the pendulum is going to swing entirely to just having a couple of companies owning all of the cars in the world. emily: that was getaround ceo sam zaid and eric newcomer. electronic arts is boosting its outlook or the holiday quarter. we will break down the latest in gaming next. remember that all episodes of bloomberg tech are live streaming on twitter. check us out on bloomberg tech

tv. this is bloomberg. ♪

emily: the two biggest fantasy sports sites are close to a merger under jack kingston ceo -- draftkings ceo. investors have been encouraging a tie up for months as the two companies have spent millions competing against one another and fighting legal battles. well, electronic arts beat estimates for the second quarter, earnings fell 18% on

revenue that fell 4% to $1.1 billion. investors closely watching guidance for the holiday quarter. ea raised its forecast but still lower than some analysts estimated. matthew: ea delivers on very strong results. the core franchise, the madden business, the other sports games are performing very well with fifa engagement up significantly year-on-year. they have some new games coming out for the holiday quarter. battlefield i and titan fall ii. it appears to be off to a good start. all in all, the new games are doing very well in the early stages. it looks like the company is executing its strategy well. emily: you mentioned the new shooter games. ea is mostly known though for their sports titles. michael, how do you expect the category to stack up? michael: sports is pretty stable.

maddens been growing, has not. basketball has kind of faded into obscurity. overall, you're talking about modest growth. in the shooter category, they have two big games this quarter. they only had one last year. the star wars battlefront games. so, they should be up hundreds of millions of dollars in that category. it's a much bigger growth vehicle for them. emily: matt, last year at this time we were focused on the star , wars game. what is the big focus this year? matthew: the new shooters. also, the expansion into new platforms. mobile gaming growth is a big opportunity for them. star wars galaxy of heroes launched almost a year ago and continues to be the driver of growth. they have some new games coming in that area. they have done some new things with new platforms and technology such as virtual reality that's coming online this quarter. emily: michael, we talk a lot about the transformation of these companies.

in a digital world, online purchases make up 63% of the quarter. how well has ea managed the transition to a digital world? michael: i think they are better than anybody. the only company that compares to them in the west is activision. purchased games. that's a third of their revenue. ea has been doing a mobile for 15 years. they are not particularly good at it, but they are positioned finally to thrive. they are as good as anybody in downloadable content and full game digital downloads. they have been good at anticipating the shift and they were ahead of the curve. it hurt them five years ago. the stock could not get out of its own way. but they just started to execute in the last three years and the stock has been on fire. emily: that does it for this edition of the best of "bloomberg tech." remember to tune in for our

latest episode of of studio 1.0. my full interview with steve ballmer, former ceo of microsoft and owner of the l.a. clippers. this is bloomberg. ♪

>> the mexican currency strengthens with asian equities as the fbi clears clinton over e-mails again. we have the latest from the united states ahead of tomorrow's big vote. talking trade. theresa may arising india to lay the groundwork for a post-brexit deal. and a beat for europe's biggest bank. hsbc tops estimates as it benefits from cost-cutting. ♪