alisa: i'm alisa parenti from washington, and you are watching "bloomberg technology." let's start with a check of your "first word news." several world leaders are reacting to president trump's decision to withdraw the u.s. from the paris climate accord. the european commissioner on climate action said "the world can continue to count on europe as a climate leader." belgium's prime minister charles michel called the decision "a brutal act." germany's foreign minister says the u.s. harms itself and the world by withdrawing. house speaker paul ryan commended president trump and called the paris accord simply a raw deal for america. the earliest of the u.s. can

withdraw from the climate deal is november former president 2020. obama is also reacting. he says the trump administration is joining, quote, "a handful of nations that reject the future." mr. obama says he is confident states, cities, and businesses will step up. james comey will testify before the senate intelligence committee on june 8. comey will discuss the circumstances that led to his firing on may 9. the committee will also look into potential ties between president trump's campaign and russian election meddling. global news, 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. from washington, i'm alisa parenti. this is bloomberg. "bloomberg technology" is next. ♪

emily: i'm emily chang. this is "bloomberg technology." coming up, the u.s. officially takes a step back from the global effort to save the planet. our deep dive on president trump's decision to withdraw from the 2015 landmark paris accord, and how tech industry is responding. plus, a new smartphone to challenge apple and samsung seizes the spotlight. it is designed by the same guy who created android. we will hear from the company about why this so-called anti-iphone is a must-have seizes the spotlight. product. the internet of things to come. chinese giant baidu partners with german automotive heavyweights. first, to our lead. president trump has announced united states will be withdrawing from the paris climate pact and that he will seek to renegotiate the international agreement in a way that treats american workers better. president trump: i'm willing to immediately work with democratic leaders to either negotiate our

way back into paris under the terms that are fair to the united states and its workers or to negotiate a new deal that protects our country and its taxpayers. oury: jennifer dlouhy , environment and energy reporter for bloomberg news joins us now from our washington bureau. first of all, walk us through the import of this moment. jennifer it is hugely : significant. the u.s. basically brought other nations to the table under president obama in trying to create this accord two years ago. the u.s. played a leadership role in bringing it together, and there is a real question here of whether trump's decision to withdraw from the accord over the next 3 1/2 years will encourage other countries to follow suit and leave. so far, that doesn't seem to be the case. it might actually be emboldening other countries to step up and do more. emily: when he says he wants to renegotiate, when does that process start?

jen: it's really unclear. there's no real formal mechanism for renegotiating this deal. if you are looking at the construct of the paris agreement, individual countries made individual pledges that they could change at any time, generally, with an idea that they would go stronger, that they would get stronger over time. but there is no formal mechanism to come back to the table and force other countries to re-up their commitments, to strengthen their pledges. trump did talk about the possibility of a separate deal. there is the possibility of separate action on greenhouse gas emissions outside of the paris agreement. but we've seen already indications that other countries are pushing back against this idea that there could be any kind of substantive negotiation. emily: bloomberg's jen dlouhy, thanks for joining us with the latest from washington. the tech industry has already begun to respond to trump's announcement. tesla's elon musk announcing his departure from the president's council in a tweet.

"i am departing. climate change is real. leaving paris is not good for america or the world." we also got statements from microsoft's chief legal officer, brad smith, hp's meg whitman, and salesforce ceo marc benioff, who said, "deeply disappointed by the present's decision to withdraw from the paris -- agreemente out cap facebook, google, and apple did sign a letter in may asking trump to stay in the paris climate agreement. we know tim cook called the president to urge him to remain. joining us now to discuss, colleen regan, and our guest host for the hour and techonomy ceo david kirkpatrick. what does it mean for technology and business leaders who may not have voted for the president, but were prepared to work with him, to desert him now? david: i think they've already deserted the president on most substantive issues.

it's not like they are deserting him now. the gap between president trump and silicon valley is a grand canyon at this point. what's more interesting to me is how committed business has become, not just silicon valley, but most big businesses towards climate change remediation. the issue of whether climate change is happening or not is not controversial among most business leaders. it is accepted. clearly, a lot of progress is going to be possible, even as the u.s. in the paris agreement despite the fact that everyone , agrees it is a stupid thing to pull us out. emily: let's talk about this, colleen. howard tech companies and businesses going to respond in action? colleen: great question, we've seen some action coming out of silicon valley from these tech companies.

if you look at these companies, they got together in defense of the clean power plan earlier in 2016. we've seen them since repeat the -- that climate change is one of the most significant issues facing our generation globally. they are putting action behind these words. they said all four of these companies, which represent $2.5 trillion of market cap have set 100% renewable energy goals. google came out on record as saying that they are going to hit the target in 2017. we saw amazon be the number one procurer of clean energy in 2016 in the united states. apple is even signing deals for wind farms in china in order to get clean energy for their suppliers. so, they are very much behind this and it's not just words. they are really taking action. emily: china has reiterated their support for the paris agreement. i want to take a look at the bloomberg.

we have a map of the solar plants across the country. green shows plants already in operation. yellow shows plants that are planned. how does this map change in five years as a result of this, or does it? colleen: that's a great question. in some ways, you would expect to see the green up here even more heavily in those states in which solar is already very concentrated. it's important to talk about what's going on on the federal level, but it's equally important in the u.s. to be thinking about what's happening on the state level, too. just yesterday, the california senate passed a bill to get 100% renewable energy by 2045. that still needs to make its way through the assembly, but there is activity going on at state level that will continue to drive wind and solar build. at the same time, we've seen costs fall dramatically, which means it's becoming more economic to install solar in more areas of the country. from 2008 to 2016, we saw the

cost of part of the panel fall by 90%. this is helping more states to actually invest in solar as well. emily: david, president trump is saying he is trying to protect american jobs. there are concerns about jobs in cleantech, jobs in new energy. are we seeing this potential big market opportunity -- are we ceding this potential big market opportunity to other countries like china? david: there is a massive long-term business opportunity in remediating climate change. if you think about what world war ii did or what wars due to motivate a country to

really gather all its energies together and make rapid progress or look at what the depression and allreate the wpa the infrastructure we created. facing a crisis can be one of the most motivating things in the economy, and it's happening in china right now. they are really aggressively moving forward on remediation technologies across the board with solar being a leading example. i want to quickly to something else relevant. in most states where they operate, the tech companies are the number one power consumers. cloud centers are such a gigantic consumer of power. there was an article not long ago. even in west virginia, the coal state, the utility there is now shutting down coal plants and putting in more renewables, partly because microsoft and other companies are their biggest customers. and they are saying, "we want renewable power." emily: this story is quickly developing. david, that's a very good point.

you are sticking with me, david kirkpatrick. colleen regan. we will continue to follow headlines as we have them. another developing story, blue apron has filed for an ipo. the meal delivery service will be listed on the new york stock exchange under the ticker aprn. the company reported a loss of $52.2 million on the first quarter of the year. we will have more on this story later this hour. coming up, the mastermind behind android has unveiled his latest creation. but is there room in the market for yet another smartphone? we will catch up with niccolo de masi next. this is bloomberg. ♪ emily: andy rubin is back and

betting on a new smartphone. earlier this week, the creator of android unveiled a new product from his new company, calling it "the essential phone," but it will have some serious competition since the market has been dominated by apple and samsung for so many years. he says his company and products have the it factor and that appeals to the masses. joining us is niccolo de masi. i need a little more than the it factor. what makes you think you can take on apple and samsung in a market where growth is slowing? niccolo: premium materials, craftsmanship, and passion is what we are bringing back to this space. emily: you don't think apple has that? niccolo: i think there has been a little bit of incrementalism in the last few years. i think there's been a little bit of boredom setting in. your grandparents have the same devices as your grandkids. we have a very distinctive device, obviously. it's got the first ceramic titanium enclosure. we have the biggest screen.

we have a unique access report on the back. world's smallest, most amazing 360 camera that snaps right on the back. what i think will happen with our device is it's going to evolve with you. it's going to allow you to make your phone meaningfully more powerful over time. we will focus on only what is significant innovation and only significant accessories. this device, for example, we are selling for $49.99. it will not only democratize 360 video access, but it is something you can affordably bring with you at all times and capture any important moment, whether it is a sporting event, musical event, your kid's first steps. emily: you have worked at five mobile companies come of is your first hardware. what are some custom components of the phone? niccolo: it's enclosure materials. we are the only premium product using premium materials. we are not marking up our building materials by a factor of three.

we think we need to be a pro consumer brand that offers our materials and our phone and all our devices at a great value proposition. our full display is the first rounded screen. we have a camera notched through the middle of it. ultimately you can think about , what we are doing in the long term of this device by looking at the back. we are using a fingerprint sensor on the back. we have an internal camera that has a black and white fusion color system. our next device will actually swallow all the edges up. we're almost bevelless at the moment because of the titanium. frankly, it's distinctive. we are bringing back the cool factor. emily: what sort of software customizations are there on top of the android base? - niccolo: andy's operating system has been around for a while.

it is 85% of the market. we think we know how to take better and vantage of it. we are trying to unleash the full power of the. android operating system. emily: will third-party accessory makers be able to make things for the connector on the back? niccolo: they will, in the fullness of time. we are big on open ecosystems. there will be developer network around that. our android ecosystem will have no preloaded apps. we think people want choice. we will turn the back into a real standard. emily: the home operating system os you are putting out, the connected home has yet to take off. when will it? what do we need to get there? niccolo: andy and i believe that the home is at about the stage of development as the phone was

in 2004 when we started android. we are intent on building out that horizontal play. in developed nations, it's going to take the better part of a decade for us to go from single, just digital appliances is what people have in the home. we are trying to build the first device to help you choreograph your home, automate, connect it all together, and we're doing that without being another walled garden. emily: you think android is just fine. will you ever build your own phone os? niccolo: never say never in the long run. in the short run, we think there is a lot we can do to add premium hardware to a great operating system. we feel no one has ever done full justice to the android operating system with the hardware. we are a hardware business when it comes to the phone with things like our 360 camera. we are software/hardware full stack on the phone. apple is launching a full siri speaker to take on amazon alexa and google home.

niccolo: we are like the phone market in 2004 and 2005 when we we were just scratching the surface of capabilities. there will be a lot of change. we are passionate on believing that in the long run consumers want stuff to work. we don't think the winning model is going to be, you have to use all my stuff for it to play well together. we want to provide a horizontal layer that enables you to pick whatever you want for your speakers, your stereo system, your tv, your lights, your front door locks, your baby monitor. it's a much longer tail than a mobile device market. a lot of sentimental value still to come. emily: thanks for stopping by and breaking it all down. niccolo de masi, essential president and coo. great to have you back. coming up, box is standing out in the crowded cloud space and generating cash. we will hear from ceo aaron levie about the company's latest earnings report and what they

plan to tackle next. this is bloomberg. ♪ emily: it was a banner quarter

for cloud content management company box. , positive earnings results helped push the stock to a 52-week high. two analysts raised the targets on the company. investors were particularly pleased the company maintained its goal of being cash flow positive, a big challenge for a tech firm looking to grow. we spoke with box ceo aaron levie about the results and the company's partnerships with amazon, google, and facebook, and how important they are to the company. aaron: we have to make sure we are plugged into the different applications our customers are using. if you are using facebook for the enterprise, their new workplace product, we want to make sure the content can be served up securely within that environment. if you're using ibm's workflow technology, we want to plug into that software very seamlessly as well. if you are using slack for communication on teams, we want to make sure box can be the backend system for that content. any application that gets

created or used in the enterprise, we want to ensure that we have a deep integration to power the content management and underlying data management within that app for our customers. partnering is fundamental to our strategy. you have seen some pretty expansive partnerships. with companies like microsoft, google, ibm, and others. those are core tour strategy. emily: how does being cash flow positive impact the business? aaron: this is one of the biggest concerns or questions wall street had when we were going public. we were growing very quickly but burning a lot of cash. the big question was what was the business going to look like at scale and was there going to be a convergence point. we told the market that q4 of fy 17, january that we just came through, we would be cash flow positive in that quarter, and we did achieve that. that was what we guided wall street to.

for the full year, for fiscal year 2018, the year we are in right now, we also guided that we will be cash flow positive on a full-year basis. we don't have to raise outside capital anymore. we have over $200 million in the bank. that's really positive. as we are growing still pretty rapidly with 30% growth on the top line, we are generating a very healthy core business model and we have very strong and healthy economics at the foundation of the business, which obviously is incredibly important to just running our company, but equally important to wall street's understanding of what we are building. emily: you have been critical of president trump. when he was a candidate last summer, you signed a letter along with 100 other tech leaders saying he would be a , disaster for innovation. box shares are up 30%. has trump been a disaster for innovation that you expected him to be? aaron: i would separate our business performance from some

of the policies that have been enacted. as it relates to tech innovation and the innovation economy, we really haven't got much of a clear message from this new administration about what they believe are going to be the defining factors over the next decade and coming decades to really truly driving a high innovation economy. that would range from things like high skilled immigration, stem education, digital policy issues, like encryption reform, patent reform. you have a lot of issues where there -- it is still really unknown what the administration's viewpoint is on these major issues that are going to be not just fundamental to the tech sector and silicon valley, but the broader economy as more and more of our economy moves into the digital age. i think it is still very, very early. unfortunately, we haven't seen some of the policies we would like to see that would drive innovation forward in a much

longer-term picture, as opposed to just the past 100 or 140 days or so. emily: what about climate change? what are the biggest threats to the tech industry with regard to to trump's stance on the paris accord? aaron: we have a real risk in things like climate change and immigration reform and the travel ban. when you look at things like internet policy, where we have historically been a leader around the world in setting the tone and sending a message to the rest of the world about what we are going to stand for and what our philosophies are as a country. emily: aaron levie, ceo of box. coming up, blue apron is the latest tech startup to file for an ipo, but is the timing right? in an increasingly crowded food tech space. a reminder of our new interactive tv function at tv on the bloomberg. you can watch us live, send our producers a message. check it out. this is bloomberg.

♪ >> it is 11:29 in hong kong.

i am rosalind chin with the latest first word news. the trump administration is trying to reinstate the stalled travel ban, asking the supreme court to reverse lower court decisions. temporarily barring entry into the u.s. i people from six predominantly muslim countries. he wants the nine justices to roll that the president is unfairly targeting muslims. president trump's decision to abandon the paris climate accord has been met with widespread protests. leaders,d world

opponents, and the leading corporate figures, saying it is an unfair deal that works at danced america. the president says he will push for a new deal, although critics say that is not possible. tesla boss elon musk has quit in role as an advisory role protest. he says it leaving paris is not good for america or the world. bob iger resigned from the president council. apple ceo tim cook said he tried to convince president trump to remain in the accord. global news 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. this is bloomberg. i have a check on the markets. asian markets continue to rally, the nikkei 225 up 1.6%. the topics above 1500, the best week. the s&p 500 edging closer to the

5800 level. , 300 down, about 0.5%. it was a change of pace for the falling forrates the first day in five. it is on course for its guest weekly rise in 10 months. for the offshore yuan, we are seeing weakness there. little changed by the pboc this friday. checking offshore intraday rates on your terminal, after that recent spike we saw this week, the overnight rates dropping essentially down to the lowest since january. 8.68ight highs falling to %. jumping over 17% ahead of its

agm. this is the best rise for the stock since 2015. this after three record drops, over 56% this week. teas only the latest agile when it comes to short seller attacks. ♪ emily: this is "bloomberg technology." i'm emily chang. president trump has decided to pull the u.s. out of the paris climate accord. the move has huge implications across the globe and throughout several industries, and ceos are already speaking out. google's ceo just responded, "disappointed with today's decision. google will keep working hard for a cleaner, more prosperous future for all." ge's ceo tweeted -- earlier on bloomberg television, we heard from richard branson. here is his reaction.

richard: i have been to the antarctic and the arctic. i live on an island. the effects are just beginning. you can see it in slightly higher tides, slightly less -- quite a lot less ice in the arctic. glaciers moving backwards. it's just a start. and that's what's so sad. trump says we are only going to reduce it by a tinier bit if we all do this together. that's not the case. if we move quickly and determinedly, we can protect our grandchildren from the effects of climate change and we can have a wonderful environment that we live in, a clean environment, where people are not going to get ill from pollution. we can have fuel -- we are not in danger of it

suddenly spiking at $150 per barrel. it will forever be under $30 per barrel. the biggest solar park is now less than $.10 per kilowatt. it is four times cheaper than oil was only two or three years ago, and the price is coming down and down and down. it is just incomprehensible. presidentca has a that is lying, basically. it's just too sad for words. >> it's interesting we have this nationalist movement, not just in the u.s., but in the u.k. as well. the entire brexit campaign also seems to be focused very much on sort of looking inwardly. i wonder, your notions of brexit right here how does brexit , affect both climate and your business interests there? richard: look, i think --

i personally believe that what happened with brexit, what happened with trump -- the reaction against both will be so strong. we are beginning to see it in france. i think we will see it in germany. that the world will come back to a much more sensible, normal way of thinking again. and a thinking where nations will work together again in everybody's interest. this whole thing about, let's just fight for our country, nobody else's country, our people, nobody else's people, it's horrible. we ought to be united. -- we ought to be a united world that works together and fights for all our interests. emily: that was virgin group founder richard branson, speaking with our editor at large cory johnson. a story we reported earlier. blue apron has filed for an ipo.

the meal delivery service will be listed on the new york stock exchange under the ticker aprn. each month, blue apron delivers about 8 million meal kits, complete with recipes and raw ingredients. the company has been signing up subscribers at an impressive clip. last year they generated between seven hundred $50 million and $1 billion in revenue, according to one person familiar with the finances. our bloomberg ipo reporter alex barinka joins us from new york. techonomy ceo david kirkpatrick is also with us from l.a. what exactly do we know? alex: we know now they are moving forward. according to our sources, they delayed this ipo process as they tried to preen up their finances. we know the company posted a net loss of about $55 million last year on revenue of about $795 million. revenue did double in 2016 from 2015.

you can see now that they have some growth to preach to investors as they are down this ipo process. what i think is interesting, digging into this, you do start to see how they position itself. for a company in the food delivery industry, that's going to be increasingly important. it's a very competitive industry. we have already seen casualties by the wayside. apron is coming in and saying they have a powerful brand connection. they have superior product at compelling values. they are constantly innovating on their product. what that actually means for a company that sends -- delivers kits of food for their customers, i think we need a bit more clarity on, but we are getting to see behind the scenes on some of the financials of one of these food delivery companies. emily: david, what's your take on the food delivery industry? it's clear there are going to be losers. will there be winners? will there be many?

david: i would echo some of what alex was saying. their growth is spectacular, 10 times over two years. $75 million in 2014. in 2016, they had something close to $800 million. that's amazing. i was reading the prospectus. i have to say, i am impressed. they are talking about themselves as a lifestyle brand. if you look at this not as the food delivery business, but as the creation of a new lifestyle brand around crucial human activities, that might be the way to think of this company. it might suggest if they can actually fulfill that vision, they would have a potentially promising future. but they are going to go up against amazon. let's just name that one. that's the company i would worry about most for them. anything to do with any kind of delivery, including food, amazon is the company to worry about. that's what any company in this industry will be focusing on, including them. emily: i'm getting hungry watching this video. talk to us about momentum in the

tech ipo market in general. snap went out earlier this year. this is another sign that the door is open. what's next? alex: the door is opening. we've had about $6 billion worth of tech ipos this year, compared to last year's just over $3 billion. it's already doubled and we are only in june. the momentum is definitely there. the markets seem to be behaving. calm is always good for the market. i saw another enterprise company dropped. companies like this are moving. for blue apron specifically, people will be looking at its close competitor, sun basket. when it comes to blue apron the , toughest competitor, whether it's beating them to the market or not, it's going to be sunbasket and, as david said, amazon. all signs are to the green for ipos in general. this will be our first consumer

tech listing since snap went public earlier this year. emily: alex barinka, thanks so much for joining us. techonomy ceo david kirkpatrick, you are sticking with me. shares of blackberry jumped in thursday trading, reaching their highest price in more than two years. this after citroen research said the company was likely a target for a buyout at a high premium. the report added blackberry security software for the automotive industry could be a good game changer in self driving car technology. baidu has brought two heavyweights to its side in the race to develop autonomous driverless technology. we will dive into the implications. ♪ emily: after a long search

airbnb has finally found an , executive to run its china operations. the vacation rental company has appointed a vice president in charge of its business in the asian nation. the job will be to help airbnb crack what could be its toughest market yet. it has spent years and a lot of money preparing to expand into china, a country where laws have humbled tech giants like uber and google. he previously worked at google and facebook but has been working for airbnb the past year. the company has about 30 employees and 75,000 listings in china and said last year that it plans to increase staff in the country to 300 in two years. he will report to airbnb's ceo directly. speaking of the china market, one of the country's largest internet providers just made a major move to help bring their autonomous driving aspirations to fruition. baidu has partnered with two german auto industry heavyweights to work on

automated driving, connected cars, and mobility services. the alliance pits baidu against other leading internet companies, putting alphabet, and established automakers like ford and gm. joining me is adam coates. still with us from l.a., my guest host, techonomy ceo david kirkpatrick. adam, as the tech develops, as these other giants move forward with their plans, what does baidu have on anyone else? adam: baidu is the ai leader in china. it is an incredible technology brand and it has incredible technology talent. when it comes to things like self driving cars, this is going to be powered by things like the project apollo, baidu's recently open sourced software for self driving cars. that's one of the points where we are excited to collaborate with top suppliers like bosch and continental to further develop the technology.

emily: do you see baidu as a leader in self driving cars in china or globally? adam: i think definitely globally. we have the technical capabilities to do this. especially with these sorts of partnerships, i think also the ability to work well with others, to get these technologies into actual products. emily: how do you see ai being integrated across baidu products? adam: i'm excited about smart devices, for example. they look very different on the surface, but a lot of the ai techniques we develop that we , are experts in, are still amenable to that, things like speech recognition and text-to-speech that make it possible for you to talk to any device in your home or car -- these are all part of this ai ecosystem. and baidu will be a major player in all of that. emily: every day, there are new

developments in self driving cars, and new setbacks as well. which company do you think is best positioned to lead here? david: i would say it's a tough thing to say you're going to be the leader in self driving car technology because there are a , lot of competitors trying to do that. ultimately, with all due respect, i think google is the company i would bet on the most through its waymo subsidiary. it's interesting to think about baidu's opportunity as the world's second-largest search engine after google. in developing ai, one of the key factors is the quantity of data you have to test your software against. search engines have a fundamental advantage, which is one reason observers believe google is ahead on ai of the other american companies. but baidu has a lot of intrinsic advantages for developing ai, which could then be applied to other technologies.

i would consider them a legitimate in serious contender. every automaker and a lot of even out of left field companies are really targeting this market, because it's going to be huge. then again, china may be where it's going to take off first for all kinds of reasons, so that's another advantage baidu has. emily: how would you respond? i think the observation about data is fantastic and correct. i think it underestimates how hard it is to create a leading edge ai team. is recognized as the leader in china, they have all the technology and the talent to do this. part of what's important to me in the silicon valley ai lab is how do we share that with the rest of the world and make this revolution happen. emily: the talent wars are fierce in self driving car technology. we've seen this big showdown between google and uber when it comes to anthony levandowski. how would you describe the competition for talent behind the scenes? adam: it's definitely really

hot. a fantastic time to be in the field. because ai is affecting so many different industries, it's going to be more than any one person. it's going to take thousands of people to really make this happen. i'm pretty grateful that baidu has attracted a lot of that talent already. emily: how do you see some of these other products being integrated into the self-driving platform? adam: once you are into automated driving, i think things like voice recognition and having a natural experience is fantastic. i think increasingly all of these smart devices are moving not just from being in our homes, but also in the automobiles and other places that we spend a lot of our time and that convenience and naturalness is going to be critical to the future of how we interact with technology. emily: adam coates, director of baidu's silicon valley ai lab. thank you so much for stopping by. david kirkpatrick, techonomy ceo, my guest host for the hour. thank you so much for joining us. david: thanks for having me. emily: coming up, the videogame industry's rapid growth.

now worth over $100 billion with china accounting for almost 1/4 of global market share. we will dig into the new gaming report. quick programming note, we will have full coverage this friday of the u.s. jobs report on bloomberg television and radio. bill gross will be giving instant reaction with the bloomberg: daybreak america team. ♪ emily: in another move to

compete with amazon, walmart is testing a delivery service using its own workers. employees can earn extra pay to deliver goods at the end of their work shift. the workers have to use their own car to deliver packages assigned near their homes. the test is being run at three locations in arkansas, new jersey, and aimed to better compete with the delivery services of amazon. china just topped the u.s. as the gaming capital of the world in terms of market size.

revenue from computer games exceeded $100 billion globally in a single year for the very first time. of the that number 600 million , gamers in china generated -- just ahead of the u.s.'s $24.1 billion. earlier, we spoke about the gaming report. are we close to having a single videogame with one billion users? >> i think that's something really exciting to think about, but i think we are pretty far from getting there right now. what we can say is that the games today are becoming much more enduring than we thought they would be. i think previously we thought these mobile games would be a flash in the pan and would disappear. they are becoming quite old companies and lasting brands. "angry birds," "clash of clans" are standing the test of time.

>> what about in terms of the chinese market? are they spending significantly more per user in the world? >> most people would think that china is a place where you have lots of users and not a lot of spend, but it's a little bit of the reverse at the moment. the trend has been incredible. over the last three years, the amount the chinese are spending online has increased by 10 times. they have jumped up the table. today, a chinese gamer is spending 30% more than a u.s. gamer. the transition has been pretty incredible. >> one of the big surprises for me, i think, was how loyal chinese gamers are to the chinese headquartered companies making the games. something like 93% of gamers in china are playing games -- spending on games developed by chinese companies.

is that figure accurate? how does that compare to what you expected? >> that's right. the chinese market in terms of games is the most localized in the world, even more so than other very local markets such as japan or korea. if you look at other content categories, whether it is the film industry or the music industry, what we've seen is that there is strong demand in china for great international content. film franchises such as "the serious," or "transformers" have had enormous success in china. these have all had a lot of success in china. some of the numbers we found were that european game companies had been able to increase their revenue in china ninefold in just the space of two years. we are now seeing those companies already generating hundreds of millions of dollars in that market.

given the scale of the chinese market, they are barely scratching the surface. what we take away from that is there is an enormous opportunity here. able to capture that their deeper collaboration. what we stand on the verge of is a period whereby you will see much closer collaboration and partnership between chinese games companies on the one hand and those from other regions, whether from europe or elsewhere. tencent or blizzard are two examples of that. emily: that does it for this edition of "bloomberg technology." all episodes live streaming on twitter. check us out at 5 p.m. in new york. that's all for now. this is bloomberg. ♪

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