east peace process. both leaders are in new york for this week's u.n. general assembly meeting. prime minister netanyahu said israel's alliance with the u.s. has never been stronger than with the trump administration. is backtracking on his pledge to withdraw from the paris climate accord. officialstold conditions do not exist for the u.s. to stay in the deal. demonstrators marched again in st. louis as protests continue over a white officer's acquittal in killing a black suspect. they arrested more than 80 people. be interior secretary is recommending six of 27 national monuments under review by the trump administration be reduced inside -- in size.

utahrecommend two monuments be reduced. i am emma chandra. this is bloomberg. ♪ ♪ emily: i have emily chang and this is "bloomberg technology." coming up, margaret vestager goes to washington. it is for job to keep big tech in check. the european commission joins us for a wide-ranging interview. a message to the competition with a funding round led by softbank. he spoke to us about a potential ipo and beefing up ammo in war

for the corporate servicing market. it makes one of its biggest marks to date on television's biggest night. why the big win is throwing hollywood into flux. european regulators are stepping up the pressure on u.s. tech companies. the european commissioner for competition at the helm, the e.u. has announced massive fines against apple and google. this week, she is in the u.s. visiting her counterparts as well as top political leaders. i want to get to david griffin washington. david, take it away. time thisou for the afternoon on a busy day. let me ask you about the meetings you had today. share the substance of those conversations. what were you talking to those counterparts about today? >> we do not share this often

because often we have the opportunity to take stock of open cases. since they are open, this is not something we can share with a wider audience. >> given what we have read in the news about vacancies of this them -- these departments in fact that you people in interim roles, is that a frustration or proving to be difficult as you work with counterparts across the atlantic? is it different not having permanent appointees in place? >> maybe to some degree in the beginning, i wondered. now i have gotten to know maureen and andrew rather well. we have met a couple of times. there is such a strong culture of complete cooperation between the teams because they share this culture of serving the consumer in the market. therefore, it is very direct. it is a very good cooperation. >> give me some insight into that cooperation. you are doing your own

investigation. that is happening in the u.s. as well. what is the ideal relationship like? >> to some degree, we have a different legal basis so it is not the same. waivers the necessary from businesses, we can discuss and exchange to test hypotheses about whether this would be a competition concern. the case team called each other. sometimes, they come together. we have had u.s. people coming over for our hearings. we go here if something concrete is happening. it is quite intertwined. of course, very respectful of the differences but very concrete on making it right and getting a high quality in the casework. >> a question to you as an observer of this place, you were here after the election so you have spent some time in the seat -- d.c.

does the rhetoric sound different coming to washington now eight months into this president's term? >> it is as if there is a renewed interest, more debate. i saw it already in the election campaign. i think there is more debate about how to make sure consumers are well served, have to make sure you have vibrant competition because competition is a driver not only for low prices and choice but also for innovation to be able to in the future be able to produce affordable prices and choice. a lot is going on here. i find that very inspiring. >> a couple of days ago, senators proposed a new mechanism for enforcement. amy klobuchar among them. the points was making is the rules and policies are outdated, we need to refresh them. taking a broad perspective on that, when you look at enforcement policy, does it need

to be updated? do you feel policy has not kept to step with technology? i haveobvious reasons, been looking at the european situation. we have been asking ourselves this in question because markets are developing fast. things are changing. i find our basic rules are fine because some of the motives are the same. it is greed and fear combined with power. that can be a strong combination. we can deal with that. our challenge is to keep our tools sharp and develop new tools because we have to be as skilled when it comes to going through massive amounts of data as anyone else. that is a challenge, but we accept it to develop with the pace of the market participants. >> we talked about cooperation. how problematic is it if you are

not on the same page? it seems you are in different camps. what problems does that pose when you and the u.s. are not on the same page? >> it remains to be seen because we are not done yet. it happens quite rarely. when it happens, i think very often there are very concrete reasons the market situation is not the same. the market participants play different roles. very often i find you have objective reasons when we divide in how we look at a case. >> how do you assess the efficacy of what you are doing? i think we first spoke after you levied a tax on apple of 13 billion euros. have you started to see results of that? has a had an effect on the way companies work from a policy

perspective? >> yes, i think that change is coming. it is slow because it takes some time. i think it will be faster when our courts have dealt with the cases. you also see member states change their legislation. in luxembourg and cyprus, in ireland on legislation allowing things being outraised. the legislature in the european union has changed. there is much more vigor. member states are much more ready to say we want a level playing field and we want our tax authorities to work together to get it right because we see so many businesses that pay their taxes as one would expect. that should not just be for the many. it should be for everyone. you are seeing a lot of consolidation of very big companies reducing the size of the playing field in a number of

sectors. is that inherently a problematic thing? does it raise concerns to see big companies merging, acquiring, and the field of players becoming smaller? >> it always depends because sometimes we see it may be enablee for a merger to lower prices to consumers. efficiencies can be passed on to consumers. we never have an opinion beforehand. we go into the analysis with an open mind to make sure post-merger consumers will be well served. >> give us some insight into how you decide which cases to take up, what the process is like that leads to the opening of a case. >> mergers walk in our door. those we do head on. in the antitrust cases, we would start looking into under the

radar to see if there is something here. then we may do unannounced inspections to see if there is evidence to support our hypothesis. if we findentually, we have a strong case. it is for any company troublesome to be in the searchlight of an antitrust investigation so we are very careful to make sure we find we have a strong case. that does not mean we have anything but a preliminary look at a case when we start it. of course, it has to be something serious. otherwise, we should not do it. >> there is a perception that you are targeting american companies. i look back at the google fine of 2 billion euros. it seems to give risk to those who think you are going after american companies. ini just a lot of what you are doing here is explaining yourself in the process and what companies you are looking at.

what do you say to somebody who feel as though you are in fairly seeking out american companies for action? >> first of all, i take this very seriously. pius has no home in european antitrust. it would be legitimizing the de legitimizing what we are doing. we are open for business but not open for bending rules. statistics one our side. when you look at mergers or antitrust enforcement, you do not find any kind of u.s. bias. that is very important because it is not the flag or ownership of the company. it is the behavior in the markets we are concerned about. >> let's talk about google. we have more with the commissioner coming up on "bloomberg technology." this is bloomberg. ♪

emily: welcome back to "bloomberg technology." i'm emily chang. let's get back to washington with david gura standing by with the european commissioner for competition. david, take it away. david: thank you very much. let's get into google. i think a lot of people are eager to hear about that issue in particular. google has 10 days to comply with the ruling you issued a few weeks back. what are you hoping to see by then? do you have any sense of what google will try to do? >> yes. soon to be 90 days ago, we took the decision we found google is dominant in the european market

general search and that google has been misusing this strong and dominant position to promote itself with the google shopping product and demote competitors. on average, you would find competitors on page for in your search results. you're always finding google shopping in the top left corner in the best placement. the decision says you have to apply equal treatment between google shopping and competitors because you dominate. now it is up to google to figure out how to do this because this is the only way to make a remedy future-proof. everything will change. but we still need these to be adhered to. it remains to be seen how google will live up to this. david: bloomberg is reporting proposing anis

auction system. that was proposed in 2013 with another issue. have they floated that as an idea? >> we got a first draft of what they were thinking about two weeks ago so we got a broad outline about what they are thinking. it is not for us to approve. it is for google to find a way to live up to the decision. this is very important because if google does not live up to the decision, we will start investigating. what is the situation? is competition still harmed? so consumers have less choice. david: if you are not satisfied, assess you begin to fines against google if they had not met the burden you would like them to meet? >> we can backdate the fine so will start from the first day we find there has been

noncompliance with the decision. marketly, if we find competitors that complain, consumers complain to say this is not what it was supposed to be, if we find reason, we will start investigating. we can predate the fine if we find there is a breach of following up on the decision. david: can you give us a sense of the timetable with the other google cases? how close are you to resolution of those? >> they are very different because one case concerns the placement of ads on third-party sites and whether or not that market was foreclosed. the android case is how android is used to stay dominant when we experiencele so the from when you open the box of your new phone, you see google experience. we treat those cases of high-priority cases, but it is

very difficult to say when we will be able to take a final decision. david: can you say which is farther along than the other? are they proceeding in tandem? >> they are different. we have two case teams. we put a lot of effort into this because it is important for all market participants to know what will be the final decision. david: a couple of months ago, dara khosrowshahi was the head of expedia and expressing concern about google with regard to travel services. are there other parts of the business that concern you or might lead to investigations? complaintsa lot of on other verticals. with the google shopping decision, having established google is dominant in general search, when a company is dominant, competition is already weakened a little if you hold 90% of the market. this is where the special

responsibility comes from, that you should not be shoes your misuse- miss years -- your power. this gives us a starting point looking at travel or locals. in that respect, we will still take a strong interest in google behavior in article markets -- other markets. david: in the context of google, you have levied this 2 billion euro fine. have you seen the company begin to change its ways, to work with your office to for stall further findings? is there a dialogue between you and the company? >> yes, there is a dialogue. i find them to be very personal. issuest agree on these but i think it is important no matter your disagreement. and here we are talking about a , bution by the commission it is still important to have a professional relationship because we want a change in

market behavior to enable competition so the markets serve the consumer. on that, hopefully we can find a way. david: thank you for your time. emily, in san francisco. emily: thank you so much. coming up, the european commissioner for justice will be joining "bloomberg technology" this thursday to discuss the latest on the privacy shield. the former cisco c.e.o. john chambers is stepping down from the board after 24 years. the c.e.o. since 2014 will take on the role of executive chairman. it gives robin more complete control to steer cisco away from high-priced hardware which provides most of its revenue. the competition for what place -- workplace messaging apps is heating up. that is next.

this is bloomberg. ♪

emily: the workplace messaging slack has secured $250 million in its latest round of funding. more than half came from softbank's vision fund. earlier this month, slack, which has more than 6 million daily users, announced its service will expand to germany. "wey, the c.e.o. spoke with work surveillance" about the evaluation and potential for ipo. >> we are still relatively early although we have grown fairly large. we are still growing as quickly as we can. we just had our first user conference in san francisco last week. we have partnerships. significantly, we have the launch of slack in german and french.

with projects like that, we have little ability to predict how fast it will be growing. for debility -- predict ability is one thing we are missing. >> i expect t-shirts to be put out for a concert venue. here is the issue. guys in dark suits and bow ties look at an extrapolation of funds raised to $5 billion plus and go, what kind of dumb accounting is this? how do you as c.e.o. respond when the fancy guys in suits show you are worth $5 billion? i don't buy it for a minute. >> we a little under four years in the market. we are still growing at 100% a year. 42% of the fortune 100. up to this point, we have been english language only. with strong growth in europe and asia. >> you have in your notes on

your european tour that you are building revenue. what is the quality of that revenue stream? is it amazon quality, ebay quality, or is it pie-in-the-sky? >> i am not sure exactly how to take the comparison. is thethe great things revenue is recurring. over the three and a half years, we have had about 15% cumulative churn per month. i will not say it is the best in the industry but it has got to be close. we are building on that at a rapid pace. emily: the slack c.e.o. speaking with tom keene earlier today. is aiming to raise as much as $219 million in its initial public offering. the company and shareholders are marketing shares for $12 to $14

apiece. 9 million will be sold by roku efforting to a filing. roku has yet to turn a profit since its inception in tw2002 and faces increasing competition. how has the mega breach at equifax impacted the demand for cyber insurance? we will talk to the lloyd's of london c.e.o. inga beale. this is bloomberg. ♪

mark: i am mark crumpton in new york. you are watching "bloomberg technology." let's begin with a check of first word news. president trump says he and israeli prime minister benjamin netanyahu are giving it an absolute go in the middle east

peace process. both leaders are in new york for this week's u.n. general assembly meeting. prime minister netanyahu said israel's alliance with the u.s. has never been stronger than now under the trump administration. the canadian prime minister and british prime minister say their countries are working toward a new bilateral trade deal that would be in effect after the e.u. leaves the european union --u.k. leaves the european union. the comprehensive trade agreement comes into effect this week. >> this agreement will create jobs and stimulate growth for people in canada and across europe. prime minister may and i discussed the u.k.'s ratification as well as the importance of stability and continuity in the canada/u.k. trading partnership into the future. prime minister may has criticized her foreign secretary

for his unauthorized intervention in the debate. johnson wrote a newspaper article that led to the accusation he was trying to undermine the prime minister's approach to brexit. russia held military drills about 60 miles east of estonia's border today. the maneuvers have raised concerns about a lack of trust rossi --transparency and moscow's true intentions. global news 24 hours a day. i am mark crumpton. this is bloomberg. it is just after 5:30 in new york, 7:30 in the morning in sydney. i am joined by paul allen with a look at the markets. good morning. paul: good morning. the positive lead from u.s. markets is expected to push things higher around the asia-pacific as well. nikkei futures up better than .1% now. the japanese prime minister has admitted he is considering calling an election up to a year early.

there will be a decision on that when he returns from the united states. in australia, futures up better .1%, i beg your pardon. theing on earnings from embattled broadcaster today. keep an eye on the aussie dollar. that may move on the release of the bank minutes. it was kept on hold at 1.5%. we are looking for commentary there. that is all for me in sydney. more from "bloomberg technology" next. ♪ ♪ emily: i am emily chang and this is "bloomberg technology." opened a criminal

investigation into whether top executives at equifax violated insider-trading laws. it will look into whether the c.f.o. and presidents of the workforce solution units were aware of the massive data breach before they sold shares. equifax announced a discovered the breach july 29. the three sold shares in early august. in addition, equifax's insurance against cyber breaches is far from enough needed to cover the costs tied to one of the biggest hacks in history. joining us for an exclusive conversation about cybersecurity insurance is inga beale, c.e.o. of lloyd's of london. great to have you here in san francisco. high risk insurance, that is what you do. how many businesses have this? how does it work? >> cyber insurance varies quite a lot. we can offer all types of insurance. it has been in existence about 20 years.

what has happened is in the u.s. in particular, the government introduced regulations around breach reporting. the total cyber insurance market is worth about $2.5 billion. about 80% is coming from u.s. businesses. in terms of businesses that buy it, is basically in the u.s. emily: it is still a fairly small number of businesses that offer this. is seems there is a lot of risk involved. it is inevitable almost that companies will get hacked. why bother? >> no business is immune from being hacked. however complacent people might be, they should be very aware of the threat. we have done some research. businessesout 92% of think they are going to be

hacked but very few buy insurance against it. i think a lot of people have a lot of trust in their own risk mitigation. a lot of breaches actually happen because of human error. we have all the technology in place. a lot of the time, it is some human mistake, not militias -- malicious, but some employee mistake. no business can think themselves immune. what is happening around the world to boost demand for cyber insurance is regulation is coming in, in many other parts of the world. in the e.u. next year, there will be new data regulations, meaning businesses can be fined a lot of money if they are found not to be looking after their , notmers properly informing customers of breaches. australia introduced

regulations. there was a 2000% uptick in cyber insurance demand. emily: have you seen an increase since equifax? >> i think it is too early. for any headline news about cyberattacks gets people thinking differently about it. emily: as we reported, equifax's insurance likely covers around $150 million. we are talking about damages in the tens of billions of dollars. what is the point if your insurance cannot cover the vast majority of it? >> i think we are all learning. in the scale of insurance, 20 years is not a big space of time to have been selling this product. we are all learning. there were under norma's number of customers affected with equifax. we are always trying to learn from events, learning to assess damages. limit --dn't choose a

people choose a limit to the insurance that makes sense at the time. every time we learn something, we have to reassess rising and scale of damages. emily: talk about how you build your policies. it can take months or years before you realize a hack has happened. how does that impact the policies you are selling? >> lloyd's is unique in being a market and not a single carrier. we have over 80 businesses writing insurance in our market. it is through that collaborative nature of sharing risk that we have a lot of experts who get together. we work with modeling firms. we are doing a lot of work with science trying to understand how we can model the interconnectivity of this across the world. while some of the hacks affect only one firm, we see other

attacks which affect numerous firms. for us, it is not necessarily working out for an individual company, it is how we aggregate it across the world when this risk knows no geographic boundaries. emily: in the equifax situation, there is concern some executives may have known about it before the public and government was alerted. how does that impact the policies? >> we do expect a certain professional behavior when we issue a policy. we have caveats around expected behavior. there might be such restrictions, and i'm not talking about any individual firm, restrictions on what mitigation they must take themselves in terms of employee training, firewalls, things like that. as usual with insurance, we like to stipulate certain requirements.

emily: it is a fairly small part of the market now. do you see this becoming as standard as general liability insurance? do you think it will always be a niche part of the market? >> i think it will become fairly standard. when we think of what technology is doing to all businesses, it is going to be one of the biggest risks businesses face. we look at the companies that make up the s&p 500. we look 40 years ago. 84% of the assets on the s&p 500 were tangible. they were physical assets. we understood physical buildings. now it is completely reversed. 84% of those assets are intangible. it is technology, systems, data. that trend is going to continue. we have all got to get our heads around the changing nature of risk, particularly in the insurance sector, to make sure we are innovating to keep up with how businesses are changing. emily: inga beale, c.e.o. of

lloyd's of london. fascinating part of your business. thanks for stopping by. there is a lot of debate around bitcoin. one thing for certain is it is full of volatility. the cryptocurrency rebounded from last week's slide and talk $4000 again. investor concern is easing the crackdown by chinese regulators will hinder growth. there is a belief they are likely to turn to alternative exchanges or seek loopholes. china vanke initial coin offerings and plans to ban trading virtual currencies on domestic exchanges. emmys.re tonight at the what the streaming service did that neither netflix or amazon have been able to achieve. this is bloomberg. ♪

emily: the most iconic magazine in the music industry is up for sale. stone" manager is putting his stake up for sale. it is struggling with years of living -- losing advertising and membership. in september stake of 2016. it was an historic night at the emmys as google became the first streaming service to take home a win for outstanding drama. tale" to calms the big prize --took home the big prize. amazon took home 20 trophies.

won 10 in all. in july, i asked the c.e.o. about the show and he sounded like he was looking into a crystal ball. >> we started original programming five years ago. our most recent batch started about a year and a half ago. we have been in business with some of the best. but this one is really special. it has broken through in a way nothing ever has for us, so we are really excited about it. emily: joining from l.a. to discuss streaming's big night, lucas shaw. i'm curious what the buzz is now in hollywood and what this means for hulu going forward. >> surprise, really. if you asked anyone a couple of years ago which would be the first streaming service to win a big award at the emmys, they probably would have said netflix, maybe amazon. they have made more shows and got more attention. with hulu, this is the first

breakout. i spoke with most of the executives last night. they thought elisabeth moss was going to win for best actress. some hoped they would win best trauma. nobody saw them taking five different categories and sweeping the drama field. does the press didn't translate into viewership? >> that is a great question. it matters in the industry. it is going to be a good lure for talent and producers to say we can compete with amazon, netflix. in terms of viewership, i'm sure they getting marketing advantage. hulu just hired a new head of marketing from google. her job just got easier. you can put on everything "in the-winning show -- anti-winning show." last night about 12 million people watched. not as big as an audience for

other shows. emily: does it give netflix and amazon concern? >> a little bit. netflix has been the leader in streaming tv. even though they will downplay how much they care about winning awards, they spend a fortune trying to win because they know it can help them in some way. i am sure they do not like that hulu was there to beat them, that these big media companies that best them can say our streaming service won first. in the grand scheme of things, netflix still won 20 awards, four last night. i think they probably also feel it is a matter of time before they had that show that breaks through. emily: talk to us about how you racet the online content to shape up between hulu, amazon, netflix, and apple.

this certainly makes it clear it can be anyone's game. >> yeah. all it takes is one hit. that is what anybody in the entertainment business will tell you. the chassis how many -- the question is how many chances you get. netflix is spinning so much money and making so many shows they have more chances to get one hit than other people. fx and hbo have been more disciplined and how much they spend. they would argue they only make the highest quality as compared to some of the garbage netflix throws out there. the question is, can apple or other tech companies entering the space find that project? netflix early on had to take a scriptshe b or c because people were not sure what they were or what an original project on netflix would look like. now there is so much competition for great material. emily: lucas shaw in hollywood.

it is going to be an exciting race. thanks so much. coming up, how one company is ewing u.s.-based teachers to teach english to children in china. we will dig into the latest ed tech trend. this is bloomberg. ♪

emily: vipkid is an online education company matching chinese students with teachers in north america. it has been valued at more than

$1.5 million after a funding round including tencent. i spoke with the c.e.o. and asked about the rapid growth since it was founded four years ago. studentse over 200,000 and over 20,000 teachers. $750 millionving u.s. for 2017 on august 31. 5e saw a revenue of 9.9 million per day. students are mostly in china. we have other students from other countries merging. we launched a couple of weeks ago teaching kids around the globe through mentoring. now we have over a few hundred students on our platform. emily: you have teachers in

china teaching mandarin to students around the world. about why online education seems to have taken off in china more than in the u.s. and other places around the world. >> i would say the growth factor contributes. one is demographic reasons. parents are big and learning english -- in learning english. it is a $15 billion u.s. market withrowing by 20% per year 18 million new babies each year. the market demand is huge. the supply is limited. we have over 27,000 north american teachers in china. vipkid alone has more teachers than we do in the country. parents love high-quality teaching and are willing to invest in this. we are seeing more than 10% penetration of online learning and it is growing really fast.

emily: some skeptics say online education will remain a small part of the total industry. do you agree with that? >> i do not necessarily agree for the past few years, it was 2% penetration. this year, it will be close to 10%. when e-commerce takes over the retail market. delivered online so it is knowledge sharing. the penetration will be way higher than what happened with retail. emily: how much higher than 10% do you think it could be? >> 30%, 40%. this can be ubiquitous because of the nature of the service connecting learners and teachers across the globe. this is beautiful. emily: do you think it will work

best with foreign languages? do you see this working across all disciplines? >> i think this will work across all disciplines. we are seeing a lot of adult learning online on other platforms. k12with the possibility of across the globe, you see the kids using all these tools from when they are little and they are using it not only for english learning the content-based learning. emily: talk about your strategy. you set yourself apart by recruiting american teachers. explain. >> this is unique for the children in china because we focus on the highest quality teachersnd the best that can work with them. its strategy, parents love

because it provides the best quality program for the kids. not only that. as a company, our strategy is always to events learning science. with others.rking emily: what do you mean by learning science? >> all the data we are creating , weur platform every day have 2.1 9 million classes in august so we are creating 100 terabyte data every month. all this data are very unique learning data. from that we are able to discover how they can best learn, how their interests can be best stimulated and how we can tailor the content so they can learn well. we can make learning more efficacious by empowering both

learners and teachers by all this research in data and ai. emily: that was the c.e.o. of vipkid. that does it for this edition of "bloomberg technology." a reminder, we are live streaming on twitter. check us out on weekdays. that is all for now. this is bloomberg. ♪

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♪ from our studios in new york city, this is "charlie rose." another terrorist attack on friday, this time in the london subway. home a bomb exploded during the morning rush hour inside a train at the parsons green tube station. at least two dozen were injured. in new york, the united nations was holding a conference on what could be done to combat violent extremism that leads to terrorist attacks. he was one of the speakers at the conference. he is the survivor of a terrorist attack six years ago. in 2011, a right-wing gunman killed 77 p