playing host in her hometown of hamburg also met with trump. the priorities of the g-20 include climate change, immigration and trade. trump seems that odds with the majority of european leaders. police and protesters have been battling in the streets of hamburg. german police fought back protesters with water cannons. germany's second-biggest city brought in reinforcements to assist local police. organizers say the -- othe planned protests are over. president trump and russia's vladimir putin will meet tomorrow with analysts watching for clues about the future of relations between moscow and washington. a solution for north korea is expected on their agenda. meantime, defense secretary general jim mattis says u.s. investors are still scrutinizing details of the intercontinental ballistic missile launch. secretary mattis says the

pentagon was not taken by surprise when north korea fired off that missile on july 4. global news 24 hours a day powered by more than 2700 journalists and analysts in 120tries -- in countries. i am alisa parenti and this is bloomberg and "bloomberg technology" is next. caroline: i'm caroline hyde in london in for emily chang. this is "bloomberg technology." coming up, the bloodbath at microsoft as the software giant thes its full attention to clouds. while thousands of employees are out of work. plus, the investors banking on britain to keep its title and bragging rights of europe's leading tech hub. are pumping billions

into london's technology sector despite brexit. in battle -- the co-founder resignation and downward spiral or the chinese tycoon's plea for more time to reap high and his focused on electric cars. to our lead. a major reshuffling going on at microsoft. the tech giant confirmed it is cutting thousands of jobs. the number of jobs ranges from 3000-5 thousand and most of those jobs in sales and outside the u.s. that is out of the companies 000 person workforce are the move is part of the company's reorganization to better focus on cap -- selling close suffer. allokesperson told us "like companies, we evaluate our business on a regular basis. this can result in increased investment in some places and from time to time redeployment in others joining us now to discuss is cory johnson in san francisco. i'mlondon, frederick who

pleased to stay is staying with me the entire hour. cory, bring us up to speed. there is a focus going on in terms of the cloud and a.i., and the memo that bloomberg saw on monday seems to say that this is because of a huge $4.5 trillion market opportunity. cory: it is about a big shift at microsoft. the world go from a client server network two things happening on the cloud to a different way to sell software. pc's are not the center of the environment. microsoft built its business and built its staff around the notion of pc's. as they've made this pivot, they have decided some people are not going to bureau long for the -- to be along for the ride. they made some disastrous acquisitions, most notably nokia. having to write off those acquisition means writing off a lot of jobs. if you go to the bloomberg

terminal, there is a wonderful function called ms equity go and type in loss. and you see a table with each one of those news stories on the job losses. but you can see the long-term stock price as it goes across there. and all of those little circles are job cuts. if i zoom in, this is to he 14. playoff, playoff, playoff-- this is 2014. layoff, layoff. even as the stock creeps up, people are losing their jobs like crazy. you can imagine the big changes going on. caroline: let's get the take of an investor, because frederick, when you look at these sorts of moves, the focus is on the rivalry between amazon, ibm, and google, microsoft. all of them want into the cloud and want into a.i. frederick: absolutely.

for a company like microsoft, they are -- from both sides. they have a very strong position in the enterprise world and come a certainly, google, which is a consumer facing company is now a.i. firstion as an company. that is bound to impact the enterprise world. on the other side, the smallest startups from emerging in the enterprise world from silicon valley. guess what? we are looking to -- and attacking as well the larger enterprise business of microsoft. us throughory, talk it. it is interesting some of the reports are saying that most of going tooffs are happen outside the united states. is there any reason as to why we will not see the rest of the international business hit more? cory: a real focus on getting his house right first. if you look at the annual cuts, while these #really big and they certainly are, the 3000 cuts --

while these numbers look really big. what you really see if we go from 18,000 in 2014 to only -- and i'm sure does not feel like only to those people losing their jobs today -- but over the course of the next year -- but nonetheless, when you go from 18,000 to fewer than 4,000 this is a lot more fine-tuning than it is a massive change for microsoft. they took the big pain early, which is what all of the management people say you have to do when you look at the word ld ioof layoffs. so, when you look at these pictures we see from their headquarters in redmond, in the sunny seattle, yeah, not so sunny up there. maybe this time of year. indeed, it is the kind of move you would expect this coming to make as it starts to whittle down as opposed to taking giant cuts. caroline: you mentioned there how also microsoft and amazon and ibm and google are seeing the rise of these startup culture starting to eat into some other pie. you mentioned dropbox.

where are the opportunities to be investing in a.i. and enterprise startups at the moment? the case of theosoft, -- every task in enterprises going to be somehow a.i. enabled to a certain level. in the making. microsoft has got to react. i completely agree with what has been said. the scale of microsoft, it is not that big a change. absolutely. over the years, they have had not so great track record of making acquisitions. atting the advertising space the wrong time and mobile making the wrong pick. goingg bet for them was after lincoln which was not a big asset but not so much in terms of number of employees -- going after linked in. we are interested in where they are going next. and dropbox could be

targets for them as well. caroline: do we think m&a is in the cards? in the cards been for a long time. but i think one of the most important metrics to look at is the revenue foper employee. what is the productivity? if you look over the course of the last 10 years what you see are two things. when economic results really hurt the company. in 2009 and the recession starts in 2008, there was a big drop in productivity, revenue per annum employee. in 2014 when they had to make those first big cuts, a big decline in revenue per annum employee. andyou see a little bit 2016. you can see that microsoft has taken the seriously. they want to grow their productivity. they want to grow revenue. per employed. that is the length we should imagine microsoft trying to run their business.

and clearly, taking a big step here, smaller step than they have taken the past, but trying to get that revenue per employee up. caroline: see how analysts react to this, 27 buys and only two sells. cory johnson, always great to get your perspective. felix capital and managing partner is sticking with me. and a stock we are watching -- shares of -- continue to fall since its public debut. share closed at $8.00 a thursday compared to its ipo price. it's significant cut from its initial target price. back then it was as high as $17.00 a share. now, coming up , we dive into the european tech scene. how london plans to defend his title as the tech hub. we are live streaming on twitter check us out. 5 p.m. new york, 2:00 p.m. san francisco, 10:00 p.m. right here in london. this is bloomberg.

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caroline: now a story we are watching. uber is officially rolling out p- an in app pick u option. customers will be asked of they would like to leave a tip. it is a major reversal for the embattled company. lyft has always allowed gratuities. meanwhile, london appears to be defending his title as europe's tech capital according to london partners, an agency for the city. venture capital firms drove more than $2.3 billion into the city's technology center since last year's brexit vote. continuing to outpace other european cities, including dublin, berlin and amsterdam.

one firm is felix capital was just announce it is raising $150 million in its second funding round. the firm backed some of the city's biggest successes. still with us is the founder and managing partner frederic. congratulations. it is your second fun. only two years ago you raised $120 million. now you are back for more. is there any point, the fact you are london-based make any money -- questions about brexit? frederic: clearly, when we started two years ago, that was a big -- there was no question about it. especially with their positioning around the creative class. brilliantsuch a example of technology and creativity living together. two years post-brexit, clearly there were some questions. that has not stopped investors from backing us, but the question was what kind of -- are you going to be able to find in london?

based on the way we work, we based ono after -- where they are. we do not expect to do everything just in our home home turf in london. i first met -- in portugal where he started this company which became a global platform for fashion. and convince, find the entrepreneurs to work with us. a portuguese- leader now living here. you are in goop, which is a u.s. based company. what are you focusing on with this second fund>? where do you see the opportunities lying for you? frederic: the second fund is very much a validation of our original a couple of years ago. it is too early. we back companies for the very long-term. it takes 5, 7, 10 used to build the company.

the premise behind felix as we believe there is an opportunity to have a venture firm that focuses on the lifestyle. by this we mean the emergence of by -- first brand led founders which are impacting the way we lead our lives, the way we aspire in different lifestyle segments from fashion to beauty to food to well-being. everything is changing to digital. we are looking for those founders who've got a sense of what people want. we're building communities in a very authentic, organic way. caroline: you are going to be writing checks for -- $5 million. what sort of level do you see yourself going in at now? it's a seed round, series a or b? frederic: that is why want to be a flexible investor. we are not dogmatic that want to be the first investor.

we want to back the best founders in the segments we believe in, where we can see a very big opportunity. caroline: how do you find these founders, how are you seeking them out? frederic: it is both an art and assigns. we used data, we look at signals. these days, you can track things, you can measure looking at the number of life on instagram, and twitter. but, at the same time, we are very -- centric. at data, we like to see passion, we like to see emotion between consumers and products, a service or brand. so we combine both art and science. our business is always about making decisions on the partial data, it is never black and white, it is always gray. be askingi'm going to you later about the geopolitics in europe versus the u.s. versus the u.k. and brexit but i want to ask about valuations because

we are looking at companies, the nasdaq is down percentage point on thursday trading. we see facebook -- dominating the most valuable companies in the world. how is it affecting the private sectors and the companies you want to back? frederic: our business is -- as we invest really early, way before, but valuations are always impacted by -- [indiscernible] investing early, valuations become more of, it is more of a dilution for founders. $5we invest x, 1, 3, or million, or where does that money take the company. do we believe that the post evaluation will be fair? we need to be disciplined. but the same time, eventually, a dealld not be losing on valuation because if the company works, valuation usually nowill not be as critical.

that you $150 million race, you had plenty of that -- you're not naming who your investors were less time. it was unilever. who, is it institutional money, is a global money? frederic: we are a start up in venture capital. two years back us ago was very high. to our surprise, the investor base of the trust fund was very institutional. people understand the venture business. there were opportunities to invest across the u.s. and asia and china and chose to back felix because they thought we were offering something different, something they did not have in their portfolio. the reason why we started felix was to do something that did not exist in the markets, where reached give the opportunity to our investors to access a different opportunity. but even more importantly, we want to offer something to founders they do not get in the market. so, the investor base is very traditional, pension funds,

foundations, family offices. and for the first time now with a new fund we have investors from asia and we were able to -- and get people that can back is for the long-term. caroline: fascinating. we will be digging in so much more with the felix capital founder. we will be talking much more about the brexit debate. coming up, with the release of the u.s. jobs report coming up friday, we will hear from the ceo of hubspot. and what needs to be done to close the gap. this is bloomberg. ♪

basedne: berlin soundcloud is cutting nearly half of its staff. it's a cost-cutting move designed to increase its war chest against bigger rivals like spotify and apple music. sound cloud warned it was at risk of running out of cash. operations be consolidated into its headquarters in berlin and

an office in new york city. offices in san francisco and london will be shuttered. and the bigger picture on jobs here, of course, looking at the united states. after years of the payroll growth of 200,000 a month, hiring has been disappointing. more and more companies are complaining they cannot find the right kind of workers and particular troop in tech. on the eve of the june employment report tomorrow, or international economics reporter michael mckee joins us from cambridge, massachusetts, for more on what people are calling, mike, the skills gap. mike: yeah, caroline. if you are high-tech company you have a presence in boston to google, amazon, they are all here. with more world-class universities in one place than almost anywhere, it is no surprise. what is a surprise is the size of the skills gap here. in fact, in massachusetts they are range last in the u.s. for company's ability to hire and attract tech talent.

we sat down with brian halligan, the founder and ceo of the sales and market and software company hubspot. >> here we probably got 1600 employees and 300 openings right now. mike: how long will it take you to fill those? >> we'll fill all of those but it is continually rolling and we have new openings. in any given time over the last couple years we've had at least a couple of hundred openings. we're always hiring, always growing, 1700 people today. a year ago we had 1100. we are constantly filling new spots. mike: is there a war for talent? do you have google and amazon trying to raid you? >> we have a huge war for talent. funny story. we did in overcoming boss thing , where i command the front desk and i answered the phone and i had a headset on. it was fabulous. and i got about 30 calls over the three hours i get it, and i'm going to guess half of them were from headhunters recruiting into our organization.

they're just pounding in here. there is not much i can do about that. i do not hang up. we try to make it a fabulous place to work. and make it a fabulous place to work and attract the people and develop them and if they love it here, they will not lead. that is our attitude on it. mike: for a guy the center of higher tech education, he is critical of the way the bosses are - the business schools are preparing your students. >> i do feel the universities, they're on the cutting edge. what happens in the universities, if the computer science class is out of date, they're teaching a class in fortran or pascal, an old software language, the students sideselves are doing d projects. this do for up to speed on the latest technologies. where the schools, i have noticed, are way behind are in

marketing pete we build software to help people market better. and most schools are teaching the marketing playbook that worked in the 1990's, not the iny book that works 2017. very few schools are teaching how to sell it in the way that matches the way people buy. we're trying to work with local universities -- we work with harvard and m.i.t., on some programs like that and we have our own academies that teaches people how to do that kind of stuff. andreessen'smark maxim that every company is a software companies these days, every company needs software engineers. he says he does not see things getting better anytime soon. >> over the long haul in the united states, i just see the computer software industry eating up more and more industries. and every company today to a certain extent is becoming a software company. it is run by software. and so, i think the problem gets more acute overtime and companies like hubspot will have to be very competitive. we will have to make it a great

place to work, and have to open new location for people will have to train people. over the next 10 carbon 20 years, it will get -- 210-20 tight. it will get hubspot already has its own academies. you and i should have on into computer programming years ago. we would be rich today. caroline: woulda, coulda, shoulda. great to see you on the banks in massachusetts. michael mckee. coming up, the best possible outcome for brexit. we'll discuss our investors approach to start funding in the u.k. and across the european region. this is bloomberg. ♪

alisa: you are watching "bloomberg technology." let's start with a check of your first word news. world leaders are arriving in hamburg, germany ahead of the g-20 summit. canada's justin trudeau,

australia's prime minister malcolm turnbull, and british prime minister theresa may all touchdown today. ve president trump and japan's shinzo abe angela merkel will play host in her hometown. in the u.s., the lockdown of the illinois state capitol building after a woman threw a powdery substance into the governor's office has been lifted. it delayed the schedule vote by the house on measures to override the governor's veto of budget bills the votes today are the last step in enacting the state budget for the first time in three years. democratic attorneys general in washington, d.c., have mobilized against education secretary betsy devos's decision to suspend student loans borrowers rules. they were supposed to go into effect july 1. prosecutors filed a federal lawsuit against devos demanding to have the rules restored. california governor jerry brown

plans to convene a climate conference next year. part of his latest move to position the state as a leader in battling global warming, even as the white house receipts. set for 2018 in san francisco will mark the first time a climate gathering aimed at upholding the goals of the paris climate agreement. global news 20 for hours a day powered by more than 2700 journalists and analysts in 120 countries, i've alisa parenti. and this is bloomberg. it is just after 5:30 p.m. thursday in washington. already heading into the weekend, 7:30 friday morning in sydney where we are joined by paul allen with a look at the markets. good morning. paul: good morning. it looks like a pretty unfortunate and to the week with futures pointing 1/3 of a percent lower on it asx. nikkei futures looking weaker after a disappointing session on wall street. markets in japan will get their first chance to react to the earnings announcement from --

the convenience store operator up late thursday with first-quarter operating profit, slight miss, $742 million. although it maintained its full-year forecast. samsung preliminary earnings for the second quarter also -- all suggestions are that will come record higha operating profit for the quarter driven by higher prices. labor cash earnings for may will be out in japan, china forex reserves for june and the second-round voting in the mongolian presidential election. i'm paul allen in sydney. more from "bloomberg technology" next. ♪ caroline: this is "bloomberg technology." i'm caroline hyde third world leaders are gathering in germany ahead of the annual g-20 summit.

among and trade will be the major topics discussed but not without some resistance. thousands of protesters took to the streets ahead of president trump's meeting with the russian president vladimir putin. that is going to be at the g-20. u.k. labour party leader jeremy high johnsonwith about the future of great britain's plans for leaving the european union. >> listen, we did very well in the election. we did not win the majority of seats but we put out a very large number of boards. we put forward a credible economic alternative to this government. this government does not have a majority. it has done a very strange deal with the democratic unionist party and does not look to me to be very stable. ugy: you things can change quickly? >> we could at some point have another election. i do not know when but we are ready for it. i'm very ready for it. guy: very ready for it? there are many unknowns in british politics at the moment. >> are you going to tell me about the known and unknown's? guy: no, but one of the great

unknowns is where jeremy corbyn stands on the details of brexit. and we hear this all the time. i'm curious as to why you are being as vague as you are. and when he will provide a some transparency on your thinking. >> fundamentally, we want to make sure there is a fair free trade access to the european market. that is crucial. half of our trade is with europe. secondly, that we do not become sort of offshore tax haven on the shores of europe. hence, the response i gave to the chamber of commerce speech. i gave questions now about levels of taxation. the european nationals are guaranteed unilaterally right to remain in britain with full citizenship and writes a family reunion. i think that is crucial. end that we maintain that th university connections across europe and that we maintain a broadly similar level of

regulation of consumer products, environmental worker rights. i'm sorry, it would be a partnership with europe in the future, not membership in the european union. we accept the results of the referendum. guy: is membership in the single market compatible with brexit? >> well, the single market is a concept that is required membership in the european union. and so, what we are looking for is a tariff free access to the european market. our shaoddow team has had many discussions with the e.u. officials, members of the european parlor and we have a good relationship with socialist parties all across europe who want to work with us in the future. and i will be in brussels thursday having an extended meeting with michelle barne ier to outline what are issues are. caroline: that was bloomberg's guy johnson with u.k. labour party leader, the leader of the

opposition, jeremy corbyn. despite uncertainty surrounding brexit, as mentioned, london is still the leader in venture capital and your. in the first half of this year, venture capital investment in tech companies reached over $1.4 billion. still with us is the partner at felix capital. we were talking before about perhaps the fact that you're london-based -- it does not seem to matter. does it matter -- are we seeing the talent pool, the rich diversity of entrepreneurs still staying here? frederic: we back entrepreneurs. we provide them with capital and that is a tool for them to get the best out of their -- going forward, there is a big question on what access to ndon.t will get in lo and that is true for start ups ,and that is also true for what made london the capital of the tech ecosystem in europe to the most prominent city in europe.

facebook, google, amazon. big campuses, even apple is planning to do that. europe,mpanies come to come to london to get the best talent. so, we will see what happens, they will need access to the best people. caroline: and, therefore, when you look at the $150 million that you just raised in the second find a new look at ways to spread it, you're going to be looking globally. but how much do you think will be potentially landing in u.k. entrepreneurs' hands? go towardsn cash improbable coming from softbank. a global we have ambition for companies. we are very focused on europe and selectively invest in the u.s. we definitely are very attached to our european roots. an european angle for us to be relevant. it was interesting the numbers

mentioned earlier with london growing most of the capital in the first half of the year. there were two big transactions that kind of change those, skewed those numbers. 400robable and -- with $ million. you take those two out of the equation and the numbers look a bit more balance. in the past, what we are seeing is that london has a bigger share of those companies that could attract global capital fromsoftbank from japan, the case of far-fetched for those companies will become the big champion of tomorrow. well will they be based? in london, in berlin, in paris? or barcelona? caroline: let's talk about paris. interestingly, of course, i look at the next two years of uncertainty facing the united kingdom. meanwhile, you suddenly have leaders, like macron and justin trudeau in canada. there has become a lot more opportunity to invest in your

hometown? frederic: france has been the first market. you listen to me, you know i am french. an angle in the country, but that is not why we invest there. we invest talent. and we have been very impressed by the talent that we have been able to find there. caroline: what companies, what verticals? frederic: we look at brands, technology brands. we backed something in the food space, which is created a brand for online access to good food at affordable prices. that we backed a couple of mus ago. -- couple of months ago. software platform enabling retailers to build their own online marketplace, competing with the likes of amazon. caroline: how does your stack up versus silicon valley versus the u.s.? frederic: i't's their interest yearssee how -- over 15

as an investor. and i've seen the rise of ambition from founders. now i've got access to three things. the same platforms -- to silicon valley. everyone has got a mobile phone in the pocket. global access to the internet. kind of a level playing field. then better talent. y want toart -- the work for facebook google or the best start ups. and the third thing is capital. as we have seen, capital can fly from one country to another. limit to that. so it is a very strong environment and we are very bullish about the potential for, from europe to be global players. caroline: it has been wonderful having your -- on europe. he's my guest post for the -- guest host. a new bloomberg forecast says electric cars will outsell

fossil fuel powered vehicles by 2040. that is faster than estimated. according to a new energy finance team, battery prices will plunge, turning the global auto industry upside down. that will also signal economic turmoil for oil exporting countries.. now -- hopes to be part of this electric car push. coming up, we discussed the start up that revealed the 1050 horsepower ff91. it is under pressure from debtors. this is bloomberg. ♪ these numbers

caroline: tesla has not had agood start in july. elon musk's probably has seen

its stock plunge falling 14.5% this week, the worst three-day slump for tesla since february 2016. it was triggered by disappointing second-quarter delivery numbers. and let's dig into the bloomberg. if you want to get this graph. you will see teslas decline. back below gm. look at that white line below the yellow. much was made when tesla on the white line was able to surpass gm earlier this year. now, staying with electric cars, sprawling tech conglomerate will have more time for a future. the u.s. basis startup and is trying to raise funds to bring the ff91 ledger car to the market. jia resigned as chairman days after a chinese court forze billions of dollars in assets he controlled. -- froze billions of dollars. elena, take us to the

background. this is such a fall from grace for this chinese tycoon. he is now no longer coe or chairman. this is the latest thing to happen in the continuing downward spiral of jia. this one famed executive is now not only a step down as ceo. now he is stepping off from the board and stepping off from chairman as well. and this comes days after $182 million of his assets was frozen in china after repeated failure to repay interest on loans. now, this means he has more time to spend on farraday futures are but even ferriday is under a lot of turmoil. they struggled to raise money. they did hire a new cfo to raise $1 billion, but even then, i reported recently they face a lot of executive turnaround only several months ago and there is still a lot to be worked on there. jia's fortunes will

be much better moving his time over to ferriday. caroline: i want to bring the focus in on electric cars because -- in europe this week, we've had volvo think it is ofng all-in in terms electric vehicles. how are you seeing opportunities? is this a hot area in terms of mobility? frederic: definitely are the question for startups. these are technologies that require enormous amounts of capital. so, we are very cautious with our more limited funds. we are and this is for what we do. it is like the outside of our core. but we can definitely see the trend where people are very we'reious about the, what doing to the earth and they want to have a better life and they also want to make earth a better place, which means they will start to reduce consumption of alternativeing at technology. that is a big trend as an investor. that is not where we are playing

but we are very bullish on that trend it. / caroline: interesting tie-in is backedf course, volvo is by a chinese company. it seems as though china is taking green energy seriously. you have done a great number of stories on an amazing amount of funding going into very clean energy, into biking. selina: there was a whopping $700 million raised for a three-year-old bike sharing startup in china backed by alibaba. war that ising a unleashing a significant amount of cash to win market share in this new market. its rival is called mo-bike backed by tencent. they are almost raising this proxy war for you can get the most users. this is not actually bike sharing, it is more like rental but the user does not even have to take ownership of making sure they return the bike. they can just leave it where

ever they want on the street. there are significant risk for this model, but the cash spending is not going to stop anytime soon. caroline: $700,00 close my mind for bikes. how many countries are they looking on entering? they claim on the website they are already in the united kingdom. i have not seen many. why are they needing quite so much cash? selina: it is not like the uber or didi model. not only do they have to have the back end system in tracking and allowing people to unlock it with smartphones. th also have to produce theseey bikes. it is very expensive. and it is always very prone to thieves. there is actually been lots of beingwith these bikes strewn everywhere. it is quite expensive. over the targeting expansion, 20 countries with 20 million bikes. and they say they only have 6.5

million bikes. this is significant global expansion, and they really are neck and neck with their competitor. caroline: i mean, i know this is not your typical area of investment, but you are in the lifestyle area and in clean and healthier living. when you look at the opportunities in mobility, is bikes an interesting ones? we see electric bikes and car sharing? frederic: there is a big trend that is very interesting, that people have a very different relationship to ownership. you no longer need to own your car or your bike. and you can just share with other people. especially when you look at younger people who have more constraints financially, more constraints on the space at home. they are very much focused on experiences as opposed to owning something. so, i think that is the sense of history, and i'm bullish on the possibility with bike sharing.

we need to look at the details of the opportunity -- but i can very much see a company like this become global, and just transform the way people live in all over the world and look in london. we have got no shared bikes. this is what people are using everyday. caroline: thank you very much, indeed. it was a great discussion. brilliant reporting. of felix capital is sticking with us. coming up, social networks vying for the right for the world cup. what is at risk for traditional media companies? we'll discuss. this is bloomberg. ♪ caroline

caroline: facebook, twitter and snap are seeking online rights to video highlights from next year's world cup. that is according to two people familiar with the medicare the the companies have offered 21st century box

tens of millions of dollars. the event is an attractive target to social media companies. with more premium video and attract advertisers. but there is a risk that media companies will spend -- too many sponsors. still with me is frederic court. this is a fascinating trend, of course, but we are seeing it more more at amazon getting in with the nfl and facebook already doing a deal with european championships when it comes to football or soccer as they call it in the u.s. they just seem to have limitless amount of cash. frederic: they have a few things. they have a lot of money but they also have amazing audiences. for different kinds of age groups. them, oner, two fof of them is glued to snapchat. we are using, my wife and i, facebook and instagram. they have got our attention. they have got plenty of money. so, why not compete --

are exclusive to their eudience did caroline: will th media giants, the likes of 21st century fox allow themselves, i might be getting lots of money off of social media but it is also -- frederic: i think going forward, they will go directly to the rights owners and they can compete directly with them. so, we will see when that happens, but i can very much see this coming. facebook, in particular, but also amazon or even apple could spend very significant amounts of money or even take netflix to go directly to the owners. it's part of the transmission of the world. those companies have the audience and technology platforms to get content for the people in a very efficient way. yesterday on twitter, it worked -- caroline: what about the likes of, who ends up owning ecosystem? we've got also mobile carriers. vodafone and the life in europe,

trying to get in and make sure they own the contents. we're glued to our mobiles. are we watching it on social media that we happen to access via our pohones. frederic: what really matters is content. people love football, as an example, or soccer. people love that. they have a passion for it. they do not really care where they watch it. they want the content. we have seen price escalated. i've seen what happened in france where -- they lost the rights versus fsr, which is a mobile player. but now, they got the content. guess what? people go where the content is. frederic: the winner here is the sports company. the media.s it is all about products. eventually, media is all about the content. and that is why we've seen the likes of netflix or amazon start producing their own content, which is not something you can

do so easily in sports. right now, we start to see this with technology companies investing in e-sport, to create their own leagues. caroline: it has been wonderful having you here. frederic court, announcing the new fund. that does it for this edition of "bloomberg technology." a reminder that monday begins our focus on tech week, showcasing the breath, the depth of bloomberg's expertise in taking advantage of our multiplatform global reach. we'll talk to leaders in tech, including the former twitter ceo . reddit cofounder and from amazon. this is bloomberg. ♪

announcer: from our studios in new york city, this is "charlie rose." jeff: good evening i am sitting in for charlie rose who is traveling. we begin with north korea, on tuesday pyongyang announced that they tested a new intercontinental ballistic missile, one that analysts say to reach alaska. north korea's leader kim jong-un says the launch was a fourth of july gift to the united states. administration said the u.s. would use the full range of capabilities at our disposal against the growing threat. but experts warn the options available to washington are few and risky. joinin