alisa: i am alisa parenti in washington, and you are watching "bloomberg technology." let's start with a check of your first word news. president trump makes a stop at fema today before taking off for his summer vacation in new jersey. trump said states can count on his administration to dispense emergency funds efficiently. he spoke while members of his cabinet were briefed on the hurricane season. special counsel robert mueller is using a grand jury in washington as part of an investigation into potential coordination between the trump campaign and russia according to people familiar with the investigation. mueller is turning to the washington grand jury in addition to the one in virginia already involved in the inquiry.

the u.n.'s migration agency says the number of deaths of people trying to cross from mexico into the united states is up 17% with 232 deaths through the end of july. that is up from 204 a year earlier. it comes despite a drop in u.s. border arrests. they fell by nearly half this year. after deliberating five days, a brooklyn jury found martin shkreli guilty of defrauding investors into hedge funds and in a pharmaceutical company he founded. he faces 20 years in jail but is expected to get a life sentence. i am alisa parenti at bloomberg. this is "bloomberg technology" coming up. ♪

caroline: i am caroline hyde in for emily chang. this is "bloomberg technology." coming up, full steam ahead for the u.s. labor market with 209,000 jobs added in july. we talk coding and the future of automation. plus, a bloomberg scoop. the apple watch is breaking up with the iphone. we will break down the plan to introduce a cellular option and the players potentially involved. after snap fell victim to facebook's imitation game, could google be looking to copy the tech? the u.s. labor market hit its stride in july with the jobless rate hitting an 18-year low. employers added 209,000 jobs. the national economic director spoke with bloomberg earlier on the numbers. >> the president is completely right. these are good numbers. 209,000 nonfarm payroll jobs. unemployment is down to a 16-year low. we are bringing americans back into the workforce.

that is what the president set out to do and that is what the president is doing. caroline: joining us from new york is my guest cohost for the hour, david kirkpatrick, and adam enbar from the accelerated program school aiming to train the next batch of software engineers. we are seeing full steam ahead. yes, they are hiring americans. but they are hiring at the lower-wage end of the equation. how many of those in the lower wages are coming to you for retraining? >> we have a diverse population. you would be surprised. at the flatiron school, we train in intensive programs.

we take students without any background in coding and in a short time prepare them for a job. you can see all of the reporting on our website. the backgrounds range from investment bankers and lawyers who have discovered a new passion for technology to artists, musicians, who used to work in minimum wage jobs. anybody can learn this. the job market is exploding in this area. caroline: it is interesting where it is exploding. we are seeing the lower wage group starting to pick up in terms of the numbers. we are starting to see a new way to order food. david, i thought automation was meant to be eating into lower wages. is it not?

david: it does not seem to be so far. certainly, there are jobs that will be replaced by automation. as the technology industry gets more assured jobs will be destroyed by automation and artificial intelligence, we are having a hard time finding people to do the jobs now. that is happening across the developed world. it causes me to not be so worried when you hear there are 60,000 jobs unfilled in the united states today. when people start saying ai will cost jobs in the future, which might be the case in the future, we are in a good position and have time to develop automation because we need to substitute for people because there are not enough people in many spheres like coding. coding is one area that can be partially automated. caroline: we are seeing tech giants doing a lot of hiring.

50,000 jobs added by apple. drill into the jobs. are they at the big tech giants? who is hungry for the talent you are producing? >> that is the first place people jump to. people hear "coding" and think google and amazon. that represents maybe 20% of the people hiring from us. it is not a single industry. every one of these companies have a website. they have to deliver services through technology to customers. that is where the big opportunities lie. when you see organizations like facebook wanting workers with specialty skills, maybe that is good or bad. that will not impact the broad population. the vast majority of the jobs are at companies where outdated

technology is being used. that is where the opportunity is. it is not that hard to train people for these jobs. when you talk about automation like truck drivers going away, i think that is a really big fundamental shift we need to be paying attention to. those jobs exist now. we know those jobs will go away soon. whatever jobs we will create to replace them will also go away. the reality is we live in a world in which things are changing fast. we have to get used to incorporating learning new schools into our economy and making that part of how people work. nobody is going to be up to go to college for four years and worked the rest of their lives. there is a shift in how we have changing fast. we have to get used to incorporating learning new schools into our economy and to think about education broadly and how that plays into people's careers throughout the course of their lives. caroline: david, perpetual

training, that is the way it is going to be? david: i think he is right. nothing i said should be taken to mean i think people should be complacent. this is an unbelievable moving target. what adam and the flatiron school are doing is fantastic. ideally, everyone should know how to code because we are moving into a world where we are increasingly coexisting with machines. every company is automated in one way or another. every company has some degree of coding. we are moving into this hybrid landscape working alongside computers. computers are helping us do what we do. in some ways, we are helping them do what they do. that is the world we are going into. nobody should think they can keep doing things the way they were done before because that is not going to be the case. caroline: debate rages on. the flatiron school co-founder and c.e.o., adam enbar, great to have you with us. david kirkpatrick is sticking with us because i want your take on the next story.

apple is planning to release a version of its smartwatch that can connect directly to cellular networks. it aims to reduce reliance on the iphone according to people familiar with the matter. while the apple watch remains a small part of apple's overall revenue, tim cook said earlier this week it is the best-selling smartwatch by a wide margin. joining us from san francisco is mark gurman who broke the story. still with us, david kirkpatrick in new york. mark, why are they trying to get rid of the need for the iphone? >> right now, the watch requires the iphone if you want to download new apps or make phone calls on the go. now they want to turn it into its own device. this has been a goal from the beginning that now is beginning to become feasible with the help of intel. it will have a chip to control internet activities and you can leave the phone at home. caroline: you mentioned intel.

what about other companies involved? they have to be talking to carriers already. >> apple is in talks with the four major united states carriers. sprint, t-mobile, at&t, and verizon wireless, to carry the watch by the end of the year. they are talking to carriers internationally. the international coverage will be a small subset to carriers who already carry the iphone outside the u.s. caroline: europe comes last. you get to play with these things before us. david, do you think it is important we start to separate the phone from the watch to be a standalone feature and product? david: i think it is a logical idea. it is true when steve jobs returned to apple, he reduced the number of products.

we see increasingly apple a wide range of things they are doing that grows by the day. i think this is a little confusing. i also highly doubt he can keep the battery life good enough that the watch can connect to all the wireless networks. i have an apple watch for fairly elementary functions. it is hard to keep it charged for a whole day in many instances. i think it is a very appealing idea. i am somewhat skeptical it is something that there will be a huge market for. caroline: mark, respond to that. your piece talked about the battery life concerns as well. >> around this time last year, we were looking into the feasibility and possibility of the apple watch alongside the iphone 7. we knew this is something they had been working on for a while. we were told he year ago that was the plan but they were not able to pull it off with performance issues and the

battery life snags. a year later, they are likely to push forward because of the more efficient modems from intel and the work they have been doing on the apple watch's battery life. what apple has been doing with the iphone for several years is adding new features. they wanted to work at the same level as the prior year's model with added functionality. i think we will see an apple watch that gets the same battery life as previous models but with added functionality. it is a typical apple move. caroline: it will make things easier it seems. thank you very much for giving us your time. techonomy c.e.o. david kirkpatrick is sticking with us. sticking with the jobs numbers we reported on earlier, blue apron is closing in new jersey facility and moving 1200 jobs to a bigger site opening in the state later this year. more than half of the employees

have decided to move to the new warehouse. workers notified today of the changes will have the choice to relocate. today, blue apron stock hit its lowest level since going public in june. coming up, we speak with the c.e.o. of trivago and the into the company's latest earnings report. "bloomberg technology" is live streaming on twitter. check us out weekdays. this is bloomberg. ♪

caroline: trivago reported results for its fiscal second-quarter. the search platform recorded earnings of $50 billion, beating estimates. it saw the shares drop 20% amid increased marketing spending. that represents the biggest move since the ipo in december. joining us on the phone is the trivago c.e.o. from germany. thank you for staying up late and talking with us. talk to us about the ramp up in spending in terms of advertising. this seems to be what has eaten into the bottom line. >> we are always looking at opportunities where we see a positive return on investment so we keep spending. our share of the market is quite small so we still see a great opportunity to grow the company. we think it is not wise to totally go for broke.

we will always do what we promised shareholders in the beginning. we will slightly increase our market over time but reinvest in growth. i think 7% growth for the quarter is fine with us. caroline: when i'm looking at my bloomberg terminal, i can see the market capitalization dropping by $1 billion. if you are investors knew this would be a strategy, why the selloff? does it worry you? >> we can be as transparent as possible about what we are doing. we have consistently told the market what we are doing. we are always telling them the same story for the last year. i think in general what you can see in the stock price trading up from our initial ipo price, you can see the growth over time. i think it will be going up and down.

after year, see where we are. we continue to manage for long-term profitability and then we will see where we are. caroline: where are you seeing most growth globally, in terms of what the rest of the world is doing particularly well? where are you seeing yourself gaining market share and where do you want that market share to be? >> as far as i know, we are gaining share in all markets. over 40% of our established market is in europe and still growing. we see growth coming from the rest of the world markets

dominated by asian markets. there we have growth ratios of above 100% so we more than doubled revenue. caroline: i have to ask you. last time we sat down was in berlin. you told me google was the number one competitor. when you see e.u. coming for google in terms of the shopping element, do you think google should be investigated for the way in which it treats rival hotel providers such as yourself on the platform? >> i think it looks like it. it looks like they ought to go forward with it. i think you should not make yourself dependent on that. we have shown we can grow. we don't want to rely on the

e.u. to fine them. we keep on growing. in terms of being in the travel sector, i think that is the e.u. to fine them. right thing to do. caroline: it is always great to get your take. it has been wonderful speaking to you live from dusseldorf in germany. bill ackman is taking aim at automatic data processing. pershing square confirmed today it owns an 8% stake in the company but said it would only seek a minority stake in the board after it refused to extend the deadline. he is pushing for the c.e.o. carlos rodriguez to be replaced. the board rejected that request. they said in a statement we

believe our board has a fresh perspective that will help us continue the strong track record of delivering value to shareholders. coming up, it is the height of the hyperloop and elon musk wants back in. we will break it down next. this is bloomberg. ♪

caroline: elon musk introduced his vision for a futuristic transportation called the hyperloop in 2015. he made it clear he did not have any plan to execute the project because he had to remained focused on spacex and tesla. that plan has clearly changed. last month, he revealed on twitter he received "verbal government approval" to build the hyperloop between new york and washington, d.c. here to give his thoughts, guest host david kirkpatrick. this is quite a turnabout in events. do you think it adds value to the hyperloop focus and some of the startups are going to get a

boost or hindrance from this? david: anybody involved with hyperloop has already gotten a huge boost out of elon musk's initial idea and promotion of the idea and his reflective glow. he is an astonishing person to have in your community. if he goes competitive with your company, that is another matter. it is very hard to know exactly what is happening because the article and speculation is somewhat based on indirect evidence, statements coming off of spacex's website that used to say they would not go into this business for example.

then you have also the fact elon musk has a company said to build roads under city to aid in traffic management but maybe building systems to build hyperloop tubes underground. he is one of the great thinkers of all history. i think you could think of him as almost a thomas edison for our day. you would not want to be competing with him. on the other hand, you would want him talking about what you do. if you are a company already in the hyperloop business, it is sort of a yen and yang situation. caroline: we spoke with the chairman of one of those products, hyperloop 1 it is called. here is what he said the other day about potential competition. >> it will take many brilliant minds and commitment from many people to push it forward. caroline: many brilliant minds,

maybe elon musk's being one of them. do you think we will see this become a reality? david: one of the reasons the reports of his revised interest makes sense is the companies that have done work have made more rapid progress than many of us would have expected. these companies were formed partly based on the enthusiasm musk generated which sounded extremely pie-in-the-sky several years ago when it first emerged. but i do think, like so many things in our era, amazing opportunities are arising more rapidly than anticipated. i think it could come quite soon in small places. it is not going to be new york to l.a. in two hours anytime soon. but i do think we might have boston to washington within 10 years or sydney to melbourne, which is one of the hyperloop companies. i think it is possible soon.

caroline: david kirkpatrick, you're sticking with me. much more next. ♪ we check our phones 85 times a day.

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mark: i am mark crumpton in new york. you are watching "bloomberg technology." the united states has formally notified the united nations it intends to withdraw from the paris climate accord. the state department says president trump is open to re-engaging the deal. attorney general jeff sessions unveiled the government crackdown on intelligence leaks friday. >> to prevent these leaks, every agency and congress has to do better. we are taking a stand. this culture of leaking must stop. mark: there will be a new counterintelligence unit at the f.b.i. that targets leaks. venezuela's new constituent assembly unanimously selected a former foreign minister to lead the new body. the new body will have powers to rewrite the constitution. the irish prime minister says he hopes european union leaders

will see enough rest on some of the challenges facing northern ireland as britain exits the bloc before he attends the summit scheduled in october. >> we need answers to a simple question. who do we in europe speak to when we want to speak to belfast? who will speak for northern ireland? time is running out. i fear no extra time will be allowed. mark: britain is scheduled to leave the e.u. in march of 2019. in afghanistan, the taliban

stormed a market friday. the attack was met by a fierce response from afghan army forces backed by u.s. air support. the market was closed because of the muslim weekend. the taliban now control roughly 80% of helmand province. south korea admitted it tried to manipulate the results of the 2012 election. the internal probe found 30 teams worked for at least two years to make sure a conservative candidate won. the former president won but is facing trial for unrelated charges of corruption. moon is now president. vote counting is underway in rwanda's presidential election. he calls the vote a formality. he is running against the only opposition candidate allowed. the soccer star made his first appearance at the paris stadium on friday. his $262 million buyout clause from barcelona was activated thursday. at a packed press conference, he called it one of the most difficult decisions of his life. global news 24 hours a day. i am mark crumpton in new york. ♪ caroline: this is "bloomberg technology."

i am caroline hyde in for emily chang. they are trying to make managing your money easier in a matter where you are. they developed a platform allowing users to spend money with a multicurrency card accepted everywhere at the best exchange rate possible. they've raised $66 million. earning that cash from multiple vc firms did not seem to be enough. crowdfunding brought in $2 million.

joining me is the c.e.o. and tom davies. great to have you both with me this evening in london. remind us, talk to us about why you are offering it up to the crowd. you have the vc's backing you. >> we need to use it to make money. caroline: let them in. tom, it is interesting he decided to stick to the same terms. i remember retail investors is to be where you got a better deal. they were not as investors savvy. why the new strategy? >> it is a really good question. with retail investors, you get the same deal. any company we work with investing alongside the crowd, we make sure the crowd gets the same terms. the crowd in this case happens to be revolut's customers. the last thing you want to do is give them worse terms than those investing at the institutional level.

caroline: the idea is you are splashed with cash. you are going into cryptocurrencies. talk about the grand plan. >> we are setting up the product in europe. next will be asia, australia, china. caroline: how soon in new york? >> in the next three months. we are launching next week for europe registration. caroline: cryptocurrency, is that because it is on trend? >> we have had amazing number of requests from our customers to

add cryptocurrencies. that is something we have always wanted to do. two years ago, no one allowed us to do it. now we can do it. caroline: tom, as it continues to expand, how many companies are looking to raise cash in this way in the vc community and raise money from the crowd to market? >> there are two main reasons why companies use it. the first is to access 26,000 members looking to invest in great companies. the other reason is to use it as a tool to raise money for people they know. in his case, it happened he knew millions of people, his customer

base. base. it smashed our records. it was approximately 40,000 of resolut customers preregistered and expressed interest to invest. only 3.8 million was available. we ran priority access for premium customers and randomized from the remaining. they ended up with 4500 people investing $8 million. a huge success. we are seeing the same appetite from europe. caroline: why not an initial coin offering? >> too cool for us. there would be regulators. the majority of our users -- maybe the next funding will be. caroline: tom, what is interesting about seedrs is after you have cashed in on a startup, unlike vc's where you have to wait for them to exit, you can trade on the secondary market. if i was at resolut, i could start to access some of the money?

>> i will let him respond whether he wants his employees to be selling their options. we launched a secondary market three months ago today which started trading tuesday. the first tuesday of every month, it is open for one week. that is where investors who have invested in companies like resolut can sell stock to other investors. it is a way to provide liquidity to the asset class. people are making hefty returns. we have been going five years. some investors are making returns of 18 x. there is money to be made. still a long way to go. we see that is a very important step for the future.

caroline: do you want to see your employee base being able to cash in to a certain extent before you choose to exit? >> yes. we allow employees to cash out some of their holdings. as usual, almost no one sold. caroline: thinking it is going to go higher. wonderful to have you both here. enjoy your evening. nikolay storonsky and tom davies. you can read more about fintech in the cover story. the $9.2 billion startup and two of the world's youngest billionaires. check it out in the european edition.

google is working with publishers. according to a person familiar with the matter, this would have a mobile magazine design. it evolved from media relationships google has for another product meant to help load articles faster. with us is david kirkpatrick, and joining us from san francisco is sarah frier. you cover snapchat and the like. instagram copied stories very well from snap. now we see google managing to take a leap with discoveries. is this vindication for the business model or a warning? it evolved from media >> i think snap has been very inventive in terms of how we communicate. all these other internet companies are realizing we need to do some of that. there is a lot of copycatting going around. other facebook properties have copied stories. now there is the mobile media product google wants to do. it is a concern because snap is

a young company trying to prove it is providing something to users nobody else is. it is creating this addictive quality, especially among younger people. the question is whether people will feel like they do not need to download snap because they are getting the same thing elsewhere. caroline: a key concern as we head into next week with earnings coming from snap.

are you optimistic or pessimistic on the stock? david: on the stock, not usually optimistic but i think snap has a secure place in the market in general. just because google began to serve up news stories similar to the way they might look on snap, i don't think that will significantly reduce the usage of snap by people who use it almost entirely to communicate with others and project their own image to others. i think snapchat has a very strong position. it is true. snap has been an amazingly inventive company. when i look at this development, i see google borrowing from snap in large part to compete with facebook. facebook is where people increasingly get their news. google is a big news player. they are ranked second in the united states with 150 million unique visitors for news only after yahoo!. facebook is the place all the

news sites end up getting distribution. facebook has been increasing speed of news stories displayed. you will see a scrum. news is going online. it is going mobile. snap is an innovator but will not necessarily be the primary news innovator. caroline: talk about the scrum david mentioned. we are not seeing content deals coming from google. we are seeing across the board from twitter and facebook. why the obsession with media? >> there are a couple of components. first of all, there is a looming concern among brands about putting their ads next to content that is safe. remember the scare with youtube

earlier this year where some brands saw they were being placed against extremist content or racist content. these projects are working directly with publishers to help ensure brand safety. they can say we are working with cnn, vox, places you know you can put your ads by, maybe pay a premium for that. it is very important for brand safety. the way people consume news has moved so much to the internet and social networks. in the wake of the last presidential election and a lot of other conflicts around the globe, we have seen the way people consume news is not necessarily linked to the right information. we have seen a lot of misinformation, a lot of biased news. one of the things google has been working on is trying to make sure the users are informed.

to do that, they are working more closely with publishers to make sure the higher-quality content gets better play on their platforms. caroline: sarah frier, always great to get your analysis. techonomy c.e.o., david kirkpatrick, you are sticking around. coming up, the debate over who is responsible for social media posts that pits congress against silicon valley. this weekend, we bring you our best interviews from the week including our exclusive conversations. tune in this saturday for "the best of bloomberg technology." this is bloomberg. ♪

caroline: the debate over who is responsible for what people post on social media has been reignited. in the u.s., a new bill proposed would make it easier for state attorneys to go after tech companies accused of not doing enough to combat content. joining me to discuss is the c.e.o. of the internet association, the group that represents companies like airbnb

and google. great to have you joining the show. it is section 230, the communications decency act, a 20-year-old statute. this is what is looking to be overturned. what do you believe it could do in terms of the publisher's immunity or lack there of? >> first, let me say that companies like backpage, and other websites like that, that traffic and have other illegal activity have no place on the internet. they need to go after them and prosecute them to the fullest extent of the law and beyond. we are working every day with the justice department in every state to ensure these actors are knocked off the internet and out of our society. the problem with the legislation we are seeing is it will tie our hands. technology companies are working with law enforcement in every

state to stop these people. under this law if passed, it would not be able to do that. caroline: to give our viewers some background, backpage.com seems to have been accused of enabling sex trafficking in particular. that is what lawmakers have been digging into and have proposed this rule change. if not the change, what should be changed? how can they make it more focused so it does not knock away the baby out with the bathwater? >> we are working with the senate on expanding the department of justice's authority under the criminal code that would give them more tools to go after backpage and

actors like that to assure there are no more victims from today forward. caroline: you say tech is a solution. we have heard in the fight against terrorist content, facebook has been looking to use counter narrative means to take the content off-line and tackle it. what are the companies you represent actively doing to ensure sex trafficking is not ignited by their platforms and other more serious content? >> our companies are the good actors. they have a social conscience that is unparalleled in any other industry. they have a social conscience that is unparalleled in any other industry. both from starting organizations that fight this contact, to developing the technology and artificial intelligence to block ads, search ads, set up sting operations to bring down people breaking the law and hurting society. all of that technology has been coming from engineers in our companies and backed by the companies.

they are working every day with state and federal law enforcement to stop people from breaking the law and doing harm. caroline: but everyone might agree with the fact this industry is more than any other industry having a higher social conscience. they have taken some time to admit they have responsibility and a role to play. do you feel they all admit their responsibility now? >> i don't think our companies have a responsibility, but they care a lot about this. it matters to them. the internet is a place that is largely a force for good. when you have a company like

backpage.com on the internet, it gives everybody a bad name. i think the companies we represent really want to make backpage go away and all illegal content go away. they are working on that every single day. caroline: michael beckerman, thank you for joining us. coming up, more trouble at uber. reports the company knowingly rented defective cars. this is bloomberg. ♪ this is bloomberg. ♪

caroline: netflix has announced the first chinese language original series. the streaming platform announced the collaboration on a supernatural jailbreak thriller. netflix has struggled to break into the chinese market. the licensing deal finally opened a path around the country's regulators. now for an update on uber in singapore. according to "the wall street journal," the company willingly rented defective cars to its drivers. one of the defective vehicles caught fire in january while in use. the driver walked away unhurt but the accident is another mark

for a company already in turmoil. another blot on uber. david: uber clearly has an impaired corporate culture. this story of a car catching on fire after they knew it needed to be repaired and did not get it repaired is embarrassing and shameful. there are also elements in the story that show some of the uber managers were trying to do the right thing. i think we are at a point now where anything about uber that has the slightest negative is seen as a total combination of the company that has had so much bad news about it, so many bad behaviors shown within it, that we are inclined to believe the worst about uber. this is a bad story. they did the wrong thing in some

respects. i think it is seen as worse than it is because these guys are just serial, stupid people. making errors time and time again. caroline: they have been trying to overhaul. they have new talent coming in. they are trying to change things. talk about a business model of leasing cars to drivers. do you think this is one they should be in? david: that is really their call. to lease damaged cars is unconscionable. i don't think there is anything wrong with leasing cars to drivers. they need a c.e.o. and a lot of other people they have not gotten. caroline: the search continues. we remain riveted. david kirkpatrick, great to have you with us. we wish you a wonderful weekend. that is it for this edition of "bloomberg technology." we are live streaming on

twitter. check us out weekdays at 5:00 in new york, 2:00 in san francisco, 10:00 in london. that is all for now. have a wonderful weekend. this is bloomberg. ♪ is this a phone?

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