alisa: i am alisa parenti in washington and you are watching "bloomberg technology." president trump and secretary of state rex tillerson held an hour-long phone call to discuss north korea and mr. tillerson's weekend trip to manila. the u.n. unanimously approved new sanctions on north korea over the nuclear and ballistic missile program. pyongyang has ruled out talks and says the u.s. will pay dearly. the pentagon has sent new guidance to the armed services on drones. the policy was approved in july. additional public information is

being sent so officials can alert communities. chicago has sued attorney general jeff sessions over his threats to withhold federal funding from sanctuary city. the city says the d.o.j. has no authority to impose sweeping conditions on chicago and other cities that do not assist the crackdown on undocumented immigrants. new york mayor bill de blasio is a tax on the wealthy. it would impact about 35,000 people. he says the move will raise about $800 million a year. global news 24 hours a day powered by more than 2700 journalists and analysts in more than 120 countries. i am alisa parenti. this is bloomberg. ♪

emily: i am emily chang and this is "bloomberg technology." masayoshi son doubles down on his quest for u.s. consolidation. an offer for charter hanging in the balance. we will weigh all the options. the memo nobody missed from google. an engineer's manifesto has gone viral. the backlash that hit resets on silicon valley's diversity problems. netflix rolls the dice on its first acquisition ever. we will break down the bet on superheroes. softbank is back in the spotlight with earnings that helped softbank beat estimates. good news for softbank's chairman and c.e.o., masayoshi son. the billionaire is in the process of creating the $1 billion visions fund.

the fund was included in the results for the first time. son says he considered various deal options. joining us to explore all of the options in new york is cory johnson and our guest host for the hour, bob o'donnell, president of technalysis research. how do you see the story softbank is trying to tell us the global dealmaker playing out? >> i think that is exactly what we are seeing masayoshi son do. he has talked about this for years. i worked for a company he bought about 25 years ago. it was a small high-tech music magazine. watching him over the years and seeing this vision evolve, he is driving himself to be the tech version of warren buffett in an interesting way. he is creating this conglomerate of component companies he sees

as being critically important to drive this vision into the future. i think it is a smart plan. not all of the bets will work but i think he is placing them in good places. emily: is he the warren buffett of asia? what do you make of that? cory: no. warren buffett is warren buffett because he has proven himself to buy things without lots of debt. this is the opposite. this is taking out enormous debt with tremendous risk on the debt. investors have looked at this and thought he was near the edge of bankruptcy over and over again. these are big swings for the fences. anything but low valuation. he is using a lot of debt to do it. he is trying very much to use politics and connections to make

these deals happen. think of the image of masayoshi son in the trump tower visiting president-elect trump talking about the jobs he will create with his investment fund that he had already announced. at the same time, he is still thinking about the t-mobile merger the obama administration said would not be good for u.s. consumers. he may have been thinking his personal appeal would get the deal through. emily: bob, respond. there is a lot of question about whether he can pull off the deals. it is very ambitious. >> it is very ambitious. i am not saying he is warren buffett. i'm saying his goal is to be like warren buffett. [laughter] bob: his approach is not on value. it is on buying the core components. people do not think about the fact he owns arm, the semiconductor company that has a

tremendous amount of influence. he has internet, robotics. he is buying a lot of technologies he thinks can drive forward. debt is a big issue. i think he is being smart. he has what he calls his 300-year plan. obviously that is a bit overkill. even having a 30-year plan these days is a big deal. i think he is making bets based on that vision. emily: we have been talking about a potential sprint/t-mobile merger for years. how do you think this will play out? cory: more than half of the u.s. mobilephone market is between two companies with virtually equal market share in at&t and verizon. that is what t-mobile and sprint are thinking about. when it comes to 5g, things will be very different in terms of who has the spectrum and who does not. maybe there is a chance to

rewrite the market share pie chart in 5g. it is also worth noting the comments he had this week to say he wants to be number one. as u.s. consumers, we think about it in terms of how the government is looking at this. he wants to be number one. he does not want u.s. consumers to have the best choices. he does not want u.s. businesses to have the most options for providers for wireless services that will go beyond making calls or getting data. we have to think about what the business changes will be if we have fewer competitors in the u.s. providing wireless service in a world of 5g when so many technology businesses will be based on the availability of 5g. if there are fewer competitors, we know prices will be higher. what will that mean for businesses and consumers and

is the trump administration care about that and see something different from the obama administration saw? emily: this is a deal that could impact hundreds of millions of customers. bob: it absolutely could. clearly, he will need to get all of the pieces together. the charter piece, as well as t-mobile and sprint, to be a viable competitor to the other two. that is a big question if he can pull it off. i think in the current administration there will be less governmental pressure. it may be those things are brought to the side. there clearly are going to be challenges to consumers and other governmental entities may say this is too big to make this happen. emily: this is the first time we saw the impact from the vision fund still being raised. what did you see in the results in terms of anymore indication about how it will be spent? cory: it is too early to see the

results of the fund under the umbrella of the larger softbank. we will start to see perhaps some fees. it depends on how they will recognize those from an accounting basis. if you look at the history of sprint, you see a couple of bets that have paid off fantastically. some of the game companies in scandinavia, alibaba. got in japan -- yahoo! japan. such great returns from those investments, so you can see why he has stars in his eyes and wants to pull it off again whether with money from other investors or sprint itself. emily: we will see what he has to say about the ride-hailing business. cory johnson, thanks so much. bob o'donnell, you are sticking with me. tesla is making its debut in the primary corporate bond market. elon musk bets on a more

affordable electric car. he plans to sell bonds to support spending on the electric car. the sale will also bolster his balance sheet. tesla burned through $1.2 billion in cash in the second quarter. coming up, it a google employee's anti-diversity plea enrages the company. megan smith joins us next. "bloomberg technology" is live streaming on twitter. this is bloomberg. ♪

emily: alibaba and marriott are teaming up to tackle the chinese

tourism boom. they will set up a joint venture. marriott has 6000 hotels. china is now the world's largest source of outbound travelers who spent more than $100 billion in 2016 spurring changes across the global tourist industry. an internal battle over diversity at google has gone public. it began when a male engineer sent out a memo arguing google has a politically correct monoculture that ignores differences between the sexes and there are biological reasons he argued for the underrepresentation of women in tech. the google diversity chief has weighed in saying he made incorrect assumptions about gender not endorsed by the company. the argument exposes women's prolonged struggle to make advances in the tech industry. 26 percent ofd

technology and not jobs are held by women in the u.s. today. joining us now from washington, former vice president of google and former u.s. chief technology officer and advisor to president obama, megan smith. great to have you with us on this day. when you read this, what was your reaction? >> it is so offensive to see what this young man was writing, but it is helpful to see it in public. many people working in silicon valley are experiencing this kind of micro-aggression culture coming from some of our younger employees who have these points of view and think they are correct. they are incorrect. it is wonderful to see the reaction. one of the alumni of google wrote a piece counteracting every single one of his arguments. it is insidious. many people, women of all races, men of color, experience what i call death by a thousand paper cuts. it is personal. it comes at you. it is insidious and all around the culture.

it is so personal at times it is hard to understand it as a pattern, but it is almost class-action if you can see the pattern. emily: you are an engineer. for anyone who believes there are biological reasons for the underrepresentation of women in engineering, please put this to rest. >> it is a lot of mythology. i was lucky to go to m.i.t. in chemical engineering. chuck vest ran a study with a lot of universities in the 1990's. when they showed all of the discrimination happening about who gets recorded in history, who gets promotions, who gets what kind of funding for research, he said i always thought it was part myth and part reality. he said i have learned it is almost all reality and we have to work to change this because we want all talent at play, especially in silicon valley

on these incredibly exciting tools and platforms and culture. the culture is wonderful. this is not unique to google. this challenge of this young engineer, it is across all of the companies. it is rampant. we have to keep working on this through diversity work. teams at intel are doing a great job. apple, facebook, google has a lot of programs. we have to be more vigilant. the most important thing is we need to move the priority up and directly address these challenges and help these engineers evolve. they are misguided. and they are destructive to their colleagues. it causes people to leave the industry. it is bad for shareholder value. we know that more diversity has better results so we want all of the people of the world in on making the products. we don't want to write this

discrimination, sexism, racism, and ageism into algorithms. that is what could happen if we do not nip this in the bud. emily: this engineer makes the point google should value diversity of opinion. former google engineer, thanks the real issue is he felt safe enough to write this. there are a lot of people asking why he still has a job. what action should google take? should this engineer be fired? >> there should be a very specific conversation with him and others and the company around it. erica'sit is eric -- memo and other memos are pointing out he is acting as if it normalizes this kind of sexist, racist conversation. all of the facts are wrong. there are moments of reality and

factual elements, but then he pulls out a conclusion that is factually incorrect. we have to catch that. the main thing is having open conversations. there is freedom of speech in our country. we value that. we also have social norms about things. there really are rules about inclusion. our minds have evolved. we are right near the jefferson memorial. thomas jefferson, the wall says i am not a fan of the rapid change of law, but as the human mind evolves, we learn new things. we can no longer where the code that fits us as a boy. we know these things have been rampant in our culture. none of us created these things. but it behooves everybody to step up. this is our moment to evolve out of this and lead the world with

the incredible technical skills we have. tech can move so fast. if it chooses to prioritize this, we can move out of it much faster. emily: you are part of the tech jon stewart to visit 50 cities and phil 100,000 open jobs. how big are the challenges you are still seeing to women truly making advances in technology and filling these jobs? >> the problems are everywhere. what is exciting about the tech jobs tour, we will be in san francisco this week, across the country, we show up. it is like a career fair meets a revival. at night, you have companies recruiting. you have apprentice programs for a couple of months into a higher paying job. tech jobs pay 50% more than the average american salary.

companies are starving for people. we're here to put together the companies, government leaders, and talent around this country to get them together in the evening. we will be in milwaukee, west virginia, kentucky. i was just in appalachia with a wonderful call minor graduating from boot camp. 1000 call minors tried for -- for these tech jobs. we can reshore a lot of jobs. great new startups all over. one of my favorites was people have taken a container and put stem work stuff in it and put it on a playground and young children were learning coding. it is fabulous. one guy had built his own portable sound studio.

wonderful entrepreneurs around the country. whether it is enterprise technology that we saw in cleveland, it is great stuff. emily: megan smith, thanks so much for joining us today. we will have highlights from our exclusive interview with the french finance minister. why he is promising a big change in the tax system across the e.u. this is bloomberg. ♪

emily: tech giants have taken advantage of tax loopholes in europe lowering costs and grabbing market share from local competitors. speaking exclusively to bloomberg, the french finance minister said the country is gearing up to impose new rules that could have big implications for the tech industry. >> it is a strategy based on a

level playing field, the same rules for everybody. when you are doing business in france or in europe, you have to pay taxes. you cannot take the benefits of doing business in france or europe without paying the taxes other companies are paying in europe or in france. the same holds for all companies and for all states. >> does that mean you want to lower the corporate tax to 25% everywhere, even the eurozone? >> we lower it from 33% to 25% until 2022. the second step, we want to have tax harmonization among the members of the eurozone. you have 19 members of the eurozone. you have one currency. and you have 19 levels of taxes. you have 19 different economic

policies. we cannot go this way anymore. that is why we are advocating for tax harmonization. the first step will be tax harmonization between france and germany. i'm quite convinced no later than 2018, we should be able to have a common corporate tax for harmonization of all corporate taxes at the level of the 19 member states of the eurozone. >> what concessions do you expect from the germans to further this european integration? in exchange, would you accept a german head of the e.c.b. for example? patient.ittle

we are in 2017. the decision must be taken in 2019. we still have some time before deciding who will be the next chair of the e.c.b. but we should not wait before taking decisions as far as the integration of the eurozone is concerned. i think we should be able at the end of 2017 to make a first step towards more integration within the eurozone. emily: that was french economy and finance minister bruno le maire in an exclusive interview. coming up, masayoshi son wants in on the u.s. ride-hailing market. will the company back uber or lyft? we will break it down next. this is bloomberg. ♪ ♪

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>> it is 11:29 in hong kong. i am deborah with the latest news. widenited states will sanctions against venezuela. we are told that the announcement could come on tuesday and it could be delayed while they await a coordinated response to the constitutional assembly. ofmakers ignore the sacking the chief prosecutor and the creation of a truth commission. afterother executives they preached money laundering

and terrorist financing laws. there is a suit over a failure to report suspicious deposits that were transferred to other accounts or abroad. russia and kuwait have begun talks to figure out why some have reduced output. fromthe representative saudi arabia attending, they have producers who are not complying with the deal. is powered by journalist and analysts in 120 countries. this is bloomberg. >> we are checking on asian markets and it has been a muted session with most major benchmarks in the red.

ofgging the most, in terms points and snapping a two-day decline. the surplus was wider than a dropt and we have seen mostina and this is the since july 18 and this has some steel prices down. aluminum and copper have eased today. this gauge has most sectors in construction talks and they are as they finance discussions there. these are climbing. with is one bright spot index spots and it is up about

1.2%. we are seeing some convergence with shares on the mainland. >> this is bloomberg technology. back to our top story. the global ambition to be a global dealmaker. they confirmed the interest in the ride hailing market. >> the interest has been discussing with over and we are thisested in discussing and we have not decided which way. the u.s. is a big market and it is the most important market. we are definitely interested in the u.s. market.

backs thisk already discussre joined now to this out in london. with us in the studio is the tech knowledge he present. bob, let's start with you. he is ambitious as ever. he has already made investments and they thought he would might -- make an alliance. what do you make of this? >> he is doing dealmaking and trying to prove himself and he is trying to build technology piece and the interesting is a notion of autonomous fleets which will affect like these car-sharing companies. if you can develop technology and leverage it across

ridesharing, there is the big opportunity to influence the market. >> we had reported that they were interested in acquiring secondary shares and then there was reports that this was not happening. what do we know about the status of the investment in these companies? >> it is convoluted and we had initially understood perhaps that. perhaps buying from the secondary market. softbank also wanted to get in on the $70 billion valuation of uber with seats on the board. that seemed to fizzle out. now it is a lyft and uber. he said he has not decided. the last time lyft raised money was about $7 billion. uber is about 10 times of that. on both, he will be getting into bed with either company. the chinese company he backs is an investor in lyft. one of uber's prime investors is backing his vision fund, a big

wealth fund backed by saudi arabia. i think it is notable he said he wants to be the world's most valuable company, softbank, and he wants to have the biggest investment portfolio in technology. he has got to get into autonomous vehicles and ridesharing. he did not speak about the autonomous end of things. take a listen. >> i think the way people use transportation and the lifestyle will be different from today, 30 years later, 50 years later. it will be very different. autonomous cars are definitely coming. when that stage comes, the rideshare business becomes even more important. caroline: he's going to back any horse to win it seems, emily.

emily: bob, i wonder if this sets off a race between uber and lyft. neither our public companies. they need funding to continue to grow and compete with each other as well as globally. does this set off increased competition between the two of them when it comes to potentially billions of dollars?

bob: i think it does. my guess is he wanted to go with uber. given the challenges they have had, i think he realized maybe there is this interesting opportunity and he can do something to drive lyft forward and still play a role. his view is long-term. he wants to see who can drive this autonomous vehicle technology and share that across other ridesharing companies and leverage the semiconductor companies he already owns a piece of an build that into this bigger vision, leveraging the vision fund as well. emily: we will keep a close eye on all of my masayoshi son's dealmaking. sticking with softbank, it acquired arm holdings last year. the company posted a quarterly loss. net sales for the past quarter reached $428 million, up from $409 million the previous quarter. it included expenses recorded following the acquisition. we will explore the shared workspace startup's global ambitions.

this is bloomberg. ♪

emily: wework is continuing its global expansion centering on southeast asia and south korea. the world's largest provider of shared workspaces says it will invest $5 million and acquire a co-working start up. the latest move comes on the heels of the announcement to expand into china, japan, and a third location in seattle. joining me to discuss the road ahead for wework, selina wang and new york, and our guest host for the hour, bob o'donnell. talk to us about the strategy and why wework is making these moves. >> this is interesting because this acquisition is the first time wework has acquired another co-working space. previous acquisitions have been for related services. with this acquisition, they are getting a local team with local expertise based in singapore. the company says they wanted to do this acquisition for the talent and local expertise. they have been in spending rapidly.

they are really taking this approach where they are finding people already there who have the expertise and finding investors together to rapidly scale in the region. emily: take a listen to what he had to say. >> co-working, even corporates are looking at it as well. it is a way for them to be flexible and learn how to be as nimble as small companies. we are hoping small companies become big. emily: how optimistic are you about this co-working-space trend? $20 billion. bob: it is impressive to have

gotten this far. there are a lot of concerns people have when they have started to do this. you find they are very noisy environments. it is hard to get work done in a lot of these places. when i looked at where people expected to be working, those type situations were growing but stalling. that is the concern. the other concern is this has traditionally been a u.s. business, tech-focused kind of thing. you find a lot of u.s. based tech companies working in these environments. whether that can translate globally and into other industries remains to be seen. emily: how is wework adjusting these concerns? >> they have a high valuation. they need to live up to that by rapidly expanding globally. a lot of the concerns are that when tech and startups are doing well, wework will have a lot of

business. they have made changes in their strategy to incorporate more enterprises and large businesses like microsoft that wants flexible working space. they are trying to diversify the revenue streams globally and with existing co-working strategy. emily: there are competitors. wework has partnered with softbank and the chinese investor to expand into asia. there is a big chinese competitor, urwork. tell us about the differences. >> it is a big competitor. it is homegrown. they have grown rapidly and have a lot of local investors that are well-connected in that area. wework is very much aware of this big competitor and hoping with the help of softbank they have enough capital to win all of these customers.

it is a similar model but urwork in china, the price is less but a similar idea. nice working spaces. it is up to the amount of capital they can put into it and if they can successfully leverage the local folks as well as their partners. as we have seen in the past, not all u.s. companies have succeeded. emily: is interesting to note they are doubling down with welive. we will keep watching how this plays out. selina wang in new york, thank you. bob o'donnell of technalysis, you are sticking with me. the financial technology startup is working with barclays in hopes of securing bids of around $200 million. the move comes as the online emily: the dow posted another

record high today gaining for the 10th straight session. one stock that failed to fully receiving the most recent funding in march. a move 20 years in the making. why netflix decided a comic book publisher was the right fit for his first acquisition, next. this is bloomberg. ♪

emily: the dow posted another record high today gaining for the 10th straight session. one stock that failed to fully join the historic run is disney. investor concerns are weighing down the stock. scarlet fu takes a look at the company in "the numbers don't lie." >> disney will reporting

earnings tuesday. they released "guardians of the galaxy 2" last quarter. disney hopes its movie and think part businesses offset any weakness in the media unit. let's look at disney. we start with how disney's revenue breaks down. you hear a lot about how the media unit is big because it represents the biggest slice of the pie at more than 40%. the runner-up is theme parks followed by the movie studio and consumer products. espn is under massive scrutiny due to the subscriber losses. the past three years, espn has lost 9 million subscribers. more recently when you look at the month of june, streaming content is helping to slow losses but espn still lost subscribers in that month. the pessimism surrounding espn was highly exaggerated.

some of that is reflected in disney's stock which has fallen due to renewed industry concerns on fewer viewers and lower ad revenue. cable ratings fell 18% in the month of june. there are reports networks are bracing for a drop in ad revenue for football games for the upcoming season. perfect timing that disney thing parks are doing better. a big driver for the unit is the shanghai disneyland resort. that park is now the fourth most popular across asia. disney's movie studio has released a number of hits. this earnings period covers these movies. later this year, disney well release the latest "star wars" movie. disney hopes it will offset concerns over the media unit. it has not shown the record double-digit rally we have seen in industrials.

we will get a better idea of their prospects after tuesday's closing bell. emily: that was scarlet fu. tune in tuesday. bob iger will be joining us talking with david. netflix has made it very first acquisition. the streaming video company announced it snapped up the comic book publisher behind characters and comic books like old man logan. rival media companies become wary of providing content to streaming services as netflix looms as a threat. lucas shaw, of all the acquisitions, why miller world as their first? >> a big part of it, coming off

the disney segment, is because disney and time warner already have pipelines of comic book material they can use. right now, all the tv shows and movies netflix offers were most of them are from disney. they are movies netflix licenses after they appear in theaters. netflix wants its own pipeline of original comic book material it can develop, own, exploit down the road if it wants to make t-shirts or a theme park ride. emily: bob, is this a smart deal? bob: i think it is. you mentioned netflix as a media company. that is different than netflix as a streaming company. to become a media company, they have to buy and create original content. if you want to create stickiness in your service, that is the kind of move you have to make. we see amazon and netflix doing

this. i expect we will see more of this. this is a challenge for apple because it is not clear what their commitment is yet. emily: when i spoke with tim cook after earnings last week, i asked him about their video and original content efforts. he said it is very experimental. what do you think this means for other big media players and unconventional players like apple? >> i think the traditional guys, disney, fox, cbs, viacom, are intrigued by this. they are not sure what to make of this. i had a couple of people i spoke with asked me to explain it. netflix has never bought anything before. this seems like an outlier. it does not mean they will be buying a bunch of libraries but it opens the door to that possibility and reinforces netflix wants to be ready for a world where no one will license them a lot.

we have seen big companies retrench and revise their strategy because they felt like they were giving something valuable a way to let netflix build its service. we report on apple, facebook, and google. we reached a point in terms of media creation, production, ownership, development, netflix and amazon are on another plane from those companies. netflix and amazon are making as much tv as the biggest media companies. they are streaming all over the world. apple and facebook are still dipping their toes. emily: hulu just had its first hit. does the fact that amazon and netflix are so far ahead mean nobody else has a chance?

bob: the content creation business is tough. there are decades of history of how difficult it is to make that a successful business. it is a hard skill to acquire. you're seeing a lot of effort. the tech industry marrying up with hollywood and bollywood to come up with compelling original content. the notion of all that content being given to -- licensed to netflix to use may go away so they have to be prepared if they want to survive long-term as a media company. we have to start thinking of them in that regard. emily: bob o'donnell, president of technalysis, thank you for joining us. lucas shaw in hollywood, thank you as always. that does it for this edition of "bloomberg technology." we are live streaming on twitter. check us out weekdays. that is all for now. this is bloomberg. ♪

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>> turning negative as the u.s. attempts to navigate a way out of the lamonica crisis. slumbering inflation has hurt rate hikes on the back burner. >> finding out why some of them are failing to comply with the output curve. >> the fight as a