♪ caroline: i am caroline hyde. this is the "best of bloomberg technology." we bring you all the top interviews from this weekend tech. president trump met with ceos on infrastructure plans. how tech could be playing a bigger role. future.warns about its we discussed whether the company can recover. clears a regulatory

hurdle. our exclusive interview with the ceo on the future of the genetic testing market. first, president trump's message to corporate america, job creation is that the top of the agenda. he made these comments with 20 ceos on tuesday. the meeting was focused on trump's $1 trillion infrastructure program and tax policy. ceos,psico, and walmart but tech ceos were noticeably absent. in december, trump had a meeting with amazon, oracle, and apple , so how is silicon valley's relationship with the president evi evolving? alive isk just adding the only thing they seem to care about.

thing is aructure headline, not actually a plan. , theive to silicon valley actions they have taken our destructive. made it of the sec has clear he will be hostile to the , and by consumers extension entrepreneurs trying to create new businesses in technology, so i am not optimistic. think the opportunities for any president of the united states to build great value through technology are there, but the industry need some help. it got itself a little out of joint over the past few years. there are great opportunities, but also challenges. i think the industry has been -- too focused on technically the economy is at full employment, but tens of millions of people feel they have been left behind, and i think they have.

i would like to see silicon valley to have a new law, create employ people in good jobs. if you have that kind of challenge, silicon valley would rise to it and a lot of great things would come out of it. there is no reason we cannot be doing this broadly. automation is what many people feel has been eroding jobs in manufacturing, but should we not be looking for a paradigm shift in the way we work? or do you feel we need to have everyone employed, but what jobs are we creating? >> that is the challenge. the economy requires consumers. consumers spend two thirds of the money, so it doesn't work if a large percentage of the population does not participate,

so the goal has to be make jobs more remunerative and fulfilling so people have money to spend. henry ford's great innovation was the notion he was going to pay his employees well enough that they could afford to buy ford cars. a bailing ofsaw infrastructure. we facef the challenges is we have been doing the same thing, cutting taxes and getting of regulations. there were huge benefits to doing those at the early part of the cycle, but the benefits have then accruing to fewer and fewer people. caroline: a universal basic income? >> i don't know. i am not competent to make that call. it doesn't have to be the way it is now. we have -- you saw this week

united airlines with that horrible situation. we have had increasing pieces of news about wells fargo. those are the result of deregulation going so far that companies have no regard for their customers and no fear of repercussions if they treat combat pay. changes,o make some because those things are not working and are not healthy for the economy, to have people treat their customers that penalty. caroline: silicon valley entrepreneurs, wherever they are based, two great long-term gainful employment -- until 1980, companies few themselves as notches having customers and shareholders. they also have the communities in which they operate caroline. caroline: doesn't efficiency eventually erode? >> why is efficiency the only

thing we are focusing on? too much of a good thing. some efficiency is healthy. caroline: slow it down? >> reprioritize. we will reward people for creating jobs, for industries -- trying to get people in -- for creatingdit jobs by other people. there is nothing he can do on jobs. we have two qualitatively change the jobs out there. the sharing economy is not the answer. people have to have jobs where they can take of things like health care. know about universal income, but universal health care would take away one of the biggest fears people have and make it possible for the economy to do better than it is doing now, but right now we have hollowed out the economy and eliminated the middle class in

ways that are not healthy for public companies, private companies. if you want to be a business person, ask the question is there a better way then we are doing it right now. caroline: we will continue ahead. another story we are watching, in an allg a company stock deal guide at $1.16. straight path is one of the largest holders of a certain kind of spectrum to power 5g wireless services. at&t is hoping to better to compete with faster internet speeds. this is the second such acquisition for at&t this year. toshiba reports earnings results after delaying the reports twice. we will dig into the results on the company's warning about its future. your phone addiction is not entirely your fault. googleed to one former

employee who says the engineers in silicon valley are the ones creating the obsession. this is bloomberg. ♪

reveale: japan, to sheba doubts about its future after dealing with the bankruptcy of its westinghouse unit. cory johnson joined us with details. this westinghouse nuclear power business is interesting. accounting problems, whistleblowing, the books were not right. toshiba said we will publish financial results even though our accountant won't sign off on it, and by the way, we might go bankrupt. caroline: we were talking about japan's history in chips, and they used to rule the roost. >> they did.

i will never forget meeting the vice chair of toshiba when it was basically a chip company. they were so dominant at the time. the only american company that was intel. you don't need to be a semiconductor analyst because we have won. we are tempted to look at google and facebook and apple today, and toshiba gives you a sense that and technology, nothing is forever. ory: they made some dumb bets. betting on nuclear power was a bad business decision. companies make bad business decisions frequently, and that comes with the territory.

your market and look for something else that looks like it will replace it, and inevitably they are not domain experts in the things they buy, so something goes wrong. aroline: talking about japan long time ago versus the u.s. shareholders who hold publicly traded companies -- think of the purchase of whatsapp, instagram, and some question oculus. do you think the safeguards are there to rein in bad behavior? are stocks ago 20 every year. there is fraud out there. think it is also important when you look at what toshiba has done. the contracts are so wrong and so long, thatakes

when the company stumbles, it does not have the wherewithal to recover because they don't have the financial backing. cory johnson, editor at large. a growing global addiction to smartphones, concerned about your own addiction levels, and perhaps you would be right to be. -- we dug into the long-term consequences with the founder of the nonprofit movement time well spent. >> all of these companies are locked into the attention economy. no matter what you're making,

you're competing for attention. is thelove to create cost of advertising and attention economy and whether ,t's creating the world we want and in terms of how it affects children with these increasingly persuasive techniques. who are you targeting at the moment with your nonprofit movement and the people listening? >> we went on 60 minutes and there was a great piece with anderson cooper. agree.in the industry do it is hard to accept what is at stake in get off the train. if you are a product manager, your goal is to maximizing gauge meant. you leave the company two years later and say i increase this metric. all this increasing usage does

not necessarily add up to what we want world to look like. it is increasingly persuasive ucks us in. during the election season, over the course of the summer, i became alarmed by my perception that facebook had inadvertently become a tool that was being used to distort democracy first in brexit and the election cycle here. one of the things i discovered in talking to the team was initially a reluctance to accept to dismiss this stuff as we are running experiments, some of them don't work out. is this something you think can be a jury rest inside the industry or we need some kind of regulatory thing from the outside to get the proper attention brought to it? >> you are right.

we need much more attention brought to it. is it going to come from regulation or because of consumer pressure when people finally realize these companies -- they have to serve advertisers. if you think of it this way, facebook has a team of engineers to work on the fake news problem, but no matter what they do, how do we know if they are and had we know they are putting sufficient resources? the attention economy is a city of one billion people and our minds live inside of it, but we don't have any representation in that city. apple, google, and facebook run the city, but we need representation to what is that

new relationship where we have --resentation representation. what we need is that new relationship where we have representation. >> i look at the filter bubbles would you basically only see things that they believe you like already, and so you build these walls that are essentially impervious to all outside influences, and they have created as tools to allow advertisers to discriminate, and that business model has been so successful that the economic argument for the status quo must be compelling to those companies. that youd to admit caused brexit or contributed to trump getting elected if your entire business model depends on you having done the very things that enable those outcomes. >> i completely agree.

if you look back through history , there are often times in history when we discover something is morally repugnant but our whole economy is based on it. slavery took -- the british empire wanted to get off of slavery. they had to give up 2% of their gdp every year for 60 years. now our economy is propped up by advertising. it has created wealth, but when the costs are too high. -- i have a newsfeed that has filter bubbles and another that does not, if the one does not confirm your belief does not hope you come on have to shary the one that confirms your belief. on facebook, i'm locked into doing what is bad for democracy. caroline: is it best to target

the consumer, shareholders, the investor, then hold the executives to account? >> this is the thing we are working out. having moredea of shareholder control and influence when we collectively realized the costs. that is a fantastic way that has moved other kinds of industries in the past. i think the threat of regulation is another one, although there is option audi in california because there is the california legislature. that is the conversation am trying to create. coming up, and exclusive conversation with one of the well-known genetic testing startups. 23 and me ceo on the company's big win from the fda. that is next.

all episodes of bloomberg technology are live streaming on twitter. check us out at @bloombergtechtv weekdays, 5:00 p.m. in new york, 2:00 p.m. in san francisco. this is bloomberg. ♪

dna testinge company 23 and me has cleared a major hurdle with regulators. the fda has given the company the green light to sell genetic testing kits it directly to consumers, the first and only company to be cleared to provide such reports without prescription. it is a turnaround for the fda, which imposed a moratorium. the u.k. and canada embraced it. me ceoe with the 23 and and started by asking about the requirements the company had to me to earn this approval.

makee fda wanted us to sure the data was accurate so that if i tell you a certain result, we know the quality of that result can be reproduced and it is that result. the second thing we had to prove is the comprehension and go around the country and prove all different education levels could understand this data. it is one of the things that is core to 23 emmy me, anyone can andn about themselves science is within the reach of anyone. we design the product and experience so that anyone of any education level can understand it. selecte: how did you these conditions to run with first and will you be adding to them? >> we will be adding to them. we want to keep consumers up to date as more genetic discoveries are happening.

we've focused on parkinson's and alzheimer's because those are customersmmon reports want. one thing people don't realize is the medical system does not have those. found is that consumers really want this information acause they might be making lifestyle change and want to be empowered with information. caroline: they've been seeking history,on, ancestry beverages they might react to, and what their children might be inheriting. can you automatically find out int your reliability is terms of conditions you are now adding? aret is for customers who on an existing fda platform. are not on a who pre-existing platform, they

might have had an old experience and will enable them to upgrade. for people who bought a year ago, they will get these reports. are givingou education, making everyone a scientist, but how and powered are they to use that information? people to runng to doctors because they have exposure to these genetic conditions, or can they go to insurers and show they are safer than many anticipated? >> one thing people don't understand, there are a lot of aspects of health care of that don't tap into the traditional health care system. find people find out they are at risk or something and want to make lifestyle changes, exercising more, change their diet, have a coach of sorts, so thesee found when we did studies, people are not running

to their physicians. some of them do bring it up on the next scheduled physician appointment, but it is not generating more visits for physicians, but people do want to make lifestyle changes. i think that is where there is a big opportunity. we want to embrace a consumer health care movement where consumers are inking about their health care, not episodically, but every day. what am i eating? what are the choices i am making? as we think about the retail world and your daily experience an online consumer focused companies, they will help people make behavior changes that customers want to make. going to is 23 and me be providing coaching as well? >> we are not providing it. our expertise is genetics and making it clear for individuals. and enablepartner

other companies to help customers take it to the next level and execute that way. the reachwhat about of your own business and where you take it next? you have been using the data. this is the question, what is the privacy angle of 23 and me? can you confirm how the data is used and how that data might push forward research? >> data privacy has been first to us. if you want to share your data with no one, you share it with no one. share me will never individual level data without consent. the specific disease often want us to do research and partner to do research with other companies, so it is a matter of choice. caroline: that was the ceo of 23 and me. coming up, spotify may have an answer for a public market exit

that sidesteps an ipo. we will hear from an investor in the company next. comcast looking to take on netflix, the plans for an online video service. that is next. this is bloomberg. ♪

caroline: welcome back to the ."est of bloomberg technology i am caroline hyde. netflix andng on cbs, planning to introduce an online video service from the nbc universal video network. comcast is still determining many details, including whether it will have a live feed and if it will include sport. lucas shaw broke the story and joined us. cbs, you are a comcast, time warner, fox, disney, you

have watched as netflix and amazon have attracted huge audiences with their services and seeing viewership for live tv go down. what can i do about this? we clearly need to do something for the future and, with some new service. now warner has one with hbo . comcast has done a couple of small ones. for have a web service comedy fans, but this would pull together the strong programming from across the comcast universe , cable broadcast network networks, and maybe some sports as well. caroline: the advertisers could love this. they do have a certain demographic. >> yes. a product called all access, like the cbs broadcast network, online, live

feed, and on demand. they said the average viewer is lower than that of cbs. if you look at the trends in tv viewership, it is only getting older for live tv. most young people are not watching live tv, so if you want to reach them and don't want to sacrifice that demographic, you have to come up with something on their own. ,aroline: it breaks my heart because i am a massive fan of jay-z. he decided to pull his music from spotify. now i will have to get tidal. from pulled his catalog spotify with the exception of two records with r. kelly. if you want to listen the to the classic jc albums, you can only get it on

-- jc albums, you can only get it on tidal. clearly trying to send some kind of message. would be helpful if someone from his camp would give me a call back. tidal was a european-based company. do we know how successful it is doing? the big attention getter has been exclusive windows, an early frome to release new music jay-z's friends, protéges, partners and so on, but most million think it has 3 to 4 million subscribers, which

would make it the third or fourth biggest streaming service on the market, but behind spotify and apple music. the owners did sell a stake earlier this year. caroline: lucas shaw there. spotify, theof company made waves after reports it is considering an unusual way to satisfy investors. a directs weighing listing brother than a traditional ipo and would not involve underwriters and would price speculation like we saw with snap. we spoke with one of the backers at lead edge capital. take a listen. direct listing is quite positive. we think it signals confidence by management. first and foremost, the company reflects this idea that the

business is financially sound and they have enough cash to support the business and don't need to raise billions of dollars in an ipo to be sustainable and successful. is that it does challenge this notion that a business needs to go through the traditional roadshow and process , but our view is that great companies, great businesses roadshowd the ipo necessarily to have a following from the investment community. we believe in management's capacity to do the right thing for the business and shareholders and are not convinced the ipo roadshow is the to factor route to go public. caroline: there has been debt taken on by spotify and it confuses me why they with not want to pay down that debt, but the owners in some way or pushing them to go for an ipo or

direct share listing sooner rather than later. which you like to see this come in 2017 rather than 2018? >> we would love to see the business go public. our view is that the trigger for the ipo is not the debt p iece. rather the appropriate marking conditions and timing for the company. week, they did solidify negotiations with universal and field that was a huge milestone in going public, so those of the big drivers for the business rather than financial instruments we believe the company can more than support. does this reflect a changing atmosphere around tech ipos in general? you could argue that what we saw with snap and now with spotify, is there this sense that tech

companies are trying to take more control to themselves away from wall street, so what does that mean for wall street and investors? us that no surprise they are taking an innovative approach here and they think about this ipo and contemplate a potential direct listing. historicallyhat ipo roadshow's led by the investment banking community, stocks can be underpriced. in the snapchat example, the stock went up 40% the day after it was listed, so in this case, we let the market determine what the price should be. sure it may come at the expense ment banking+++

but we believe it is a fireball route for companies in general. if spotify can successfully executed transaction like this, they can generate investor following on the equity research side and have liquidity in thi r stock. they can do a direct listing versus the traditional ipo route. caroline: china's farmers are looking to the sky, and the chinese government is replacing manual labor with automated farming. that is next. plus, an e-commerce battle brewing in india with billions of dollars at stake. this is bloomberg. ♪

caroline: on the latest tech funding board, a real estate firm called real matters is gearing up to be canada's first tech ipo in years. according to people familiar, real matters is seeking a

valuation of $750 million. meantime, the european cable giant is planning an ipo for its u.s. business. billionaires founder is looking to exploit potential stock market gains to feel expansion. -- fuel expansion. it was formed from two u.s. acquisitions. investing halfis $1 billion in flipkart. it is a targeted move against amazon after jeff réseau styled to spend $5 billion there -- jeff bezos fouled to spend $5 billion there. the downside?

, the down ground. ebay's investment is part of the funding round that flipkart raised last month. that valued the company at 10 billion dollars. so what does this mean for global e-commerce competition? market there is overheated and you are seeing consolidation and companies rush in an opportune time to get on the e-commerce leader while the industry consolidates and venture capital -- it is a big deal for flipkart that venture capital will not be pouring into some of the other startups competing in this space. caroline: we spent last week talking about the opportunities for investment in india, apple,

many tech giants. is that all about indian e-commerce right now? world's number two population, 1.2 billion people. to give you a size of the opportunity these companies are chasing after, what many investors are realizing is amazon is positioning to take this marketplace, and you are seeing consolidation around the remaining companies so they can fend off amazon. in particular with ebay handing over their assets and this infusion of cash from microsoft, tencent, and ebay, these are companies position to compete against amazon. this could be a

stepping stone in this saga that is the consolidation involving flipkart, because snap deal could actually be teaming with flipkart in the next couple of weeks. that is what a lot of the speculation is, and some sources are saying that deal is in the works. ebay has wound down its ownership. it still has 5% ownership, and you are seeing this global coalition building around flipkart to fight amazon in this critical market, and your other guest mentioned the population. it is also the internet access, and internet access in india is even if so the country you limit it to the number of connected people, it is still far larger than the u.s..

caroline: a global coalition, i like that turn of phrase. do you think it is enough to stop the $5 billion bet that jeff bezos is making? >> that is the question. we want to see softbank's involvement and the combination of flipkart and snapdeal. that would consolidate two players. thing to remember about the marketplace in india is that it is still relatively nascent. the distribution channels are fine in tier one cities. there will still need investment. amazon can fund investment from its own cash flows. companies like flipkart have to rely on money from external sources. this is an industry burning a lot of cash.

we are seeing negative gross margins, so it's going to be a battle. amazon is well positioned given its capital base to succeed. they lost to alibaba and china and want to prove to investors they can win in foreign markets like india. caroline: the winner eating alibaba takingg another leaf out of the playbook there. seems to be willing to sacrifice valuation in snapdeal, which could merge with flipkart. there are rumors we could see an see at in valuation if we combination of the two. that would be an interesting transaction to watch and see how it is structured. he may be willing to take that

loss on snapdeal if he is able to get a larger stake in flipkart. we saw them do that and alibaba, a tremendous investment for them. the future of farming is heading to the sky. in china, agricultural drones are being used to spray crops. the government is encouraging farmers to move to automated farming. we have the story from china. ♪ >> this year, he is trying to technology. he has hired drone operators to spray pesticides over his crops.

atthe team of six arrived dawn and got to work. agricultural drones like these are taking off in china. used now, drones are only on 2% of china's farms, but the market could be worth $4 billion ji is betting more farmers will start automating. they use microwave radar to scan the ground and to maintain the

right distance from crops. mitigateones help to the over use of pesticides. the system is doing a lot of the work automatically. the drone has a small payload. he operator has to refill the canister every five minutes. it is tedious, but cheaper and faster than hiring labor. it is a must seven dollars cheaper per acre than manual labor. ♪ ahead, teslall

tops general motors. eclipsesric upstart the institution in market cap. what this means for the u.s. auto industry. if you like bloomberg news, check us out on the radio. app,an listen to us on the bloomberg.com, and in the u.s. on sirius xm. this is bloomberg. ♪

caroline: the ride hailing worth $7.5t is billion after a new round of financing, up from $5.5 billion, and more important is who is investing. and ackers include kkr handful of asset managing firms. is tapping investors who back public companies or provide funding ahead of an ipo. while the company has kept quiet about its exit plans, investors have long speculated it would

the smart to go public before uber. afterhit a new milestone surpassing general motors to become america's most viable auto company. take a look inside my bloomberg and see where tesla push past #7410, thetion, white line is the increasing a -- of tesla. for more, we spoke with bloomberg's detroit bureau chief. >> tesla has more debt. this is more of a symbolic moment where tesla has crossed the line of being more valuable than gm and ford. investors see tesla as this possible dominator of electric cars, maybe electric storage.

they have a lot of businesses with potential. it is a long-term play. with general motors and ford, auto sales are starting to trail down. both companies will make a lot of money this year, but investors are seeing this as the best is behind us over the last 12 months and may be we will put our money someplace else. tesla, there is hope they will grow and get it on been the stock. jeffrey put it as optimism, freedom -- struggling to replicate that symbolizes where tesla is. remind us of the disparity and the number of cars these companies are pumping out. g.m., 10 million cars this year. tesla, they got a big bump in their stock when they sold 25,000 in a month, and by a factor of 10 weight less than

general motors. it is not about car sales with tesla. model threethe coming out, there are lower priced, and being a success. .aroline: gm has the chevy volt it is showing a similar price the optimism is still much higher about the model three, which is yet to start coming off the production line. >> the big car companies had seen hybrid cars to meet regulations. cool.made electric cars the model s is a cool luxury car, sleek, and fast. vehicle, notlity

as cool, but a neat vehicle. luxury buyers who bought porsches, how these, and bmw's, a model three still has a design ike it iss like i still in the same family, but some people just fire to drive a the elona piece of musk allure. the brand has become powerful because of those initial people who canow afford a $40,000 car can get a chevy thatat, but a looks like a compact minivan, not so much. ourselveslet's remind it is number six in the world when you are looking at auto companies. get to theickly

fifth-place if honda does not look out. >> they could pass honda soon. getting to the value of toyota is another matter. the real story is that tesla own momentum. we aren't close yet to the model three launch. that is later in the year, so once that hits, it will be a thereor how much demand really is, because we don't know how quickly they can manufacture them, and can they manufactured them without defects and problems? if one of those things becomes a problem, the stock could take a hit. we will be in for an interesting ride over the rest of the year. my thanks to david welch there. that does it for this edition of "best of bloomberg technology." we will bring you the latest in tech throughout the week with

tech earnings rolling out. we kick things off on monday with netflix. all episodes of bloomberg technology are live streaming on twitter. check us out at @bloombergtechtv . that is all for now. this is bloomberg. ♪

oliver: welcome to "bloomberg businessweek." i am oliver renick. the satirical newspapers striking fear in the hearts of french politicians. what the maker of post-it notes is doing for government issued ankle bracelets. finally, the most expensive mistake for the u.s. military. ♪ carol: we are here with megan murphy.