♪ emily: i am emily chang and this is the "best of bloomberg technology." coming up, global leaders that gathered in new york for the inaugural bloomberg global business forum. we bring you the highlights, including conversations with jack ma and 10 cook. made a name for itself in the smart home world. new home security

system. we will hear from the ceo. wins are abig emmy major breakthrough. , highlights from the bloomberg global business forum, a gathering of more than 50 heads of state and hundreds of ceos addressing economic growth and prosperity. let's begin with jack ma. the company has seen massive growth this year. it stuck easily outpacing and other tech giant, amazon, thanks to dominating child -- sales in china. here is what he had to say between the comparison between alibaba and amazon. jack: amazon is an e-commerce andany and very successful we respect a lot, but alibaba is not an e-commerce company. we are an e-commerce enabler, infrastructure builder. job is to enable more companies to become amazon.

we see amazon is doing a good job, successful. we are telling everybody, you know, e-commerce works. we are not necessarily competing, but investors like to put his as competitors. i spent very little time very little time, how we compete with amazon. how we can learn from amazon to me more efficient. -- to be more efficient. emily: you have been investing in groceries for a long time. i am curious where you see similarities and differences in your strategy. jack: in china, and the past 15 years, we grow so fast on retail. a lot of people say, you destroyed traditional retail. destroying retail is not our purpose. our vision is helping do business easier.

we say, how can we use our technology, data, market power to help in the traditional retail. it is not about destroying them. we want to enable them. that is like we invest and by a lot of traditional supermarkets, malls. we want to learn and help. this is opportunity. emily: alibaba is trying to get approval for the money come acquisition. -- for money gram acquisition. i honestly, i left this job to do that. today, i cannot make comment. they are applying for the third time. i cannot make a comment about that. i trust the world is going to be more open-minded, and globalization should not stop it. protectionism will stop.

it takes time for a chinese company and the american government to committee. emily: you said alibaba will create a million jobs in the u.s. by 2021. tell us more. start --five years, we we create one million jobs. we want to enable more small business in america to sell products to china, asia. we think in china we created 33 million jobs. each business, if online, and create new jobs. we hope we can help one million small businesses. we can help them sell to asia, to china. emily: you have said alibaba has

a 3, 5, and 10 year plan. what are those plans? jack: we are working on that. in five years, the direction, the strategy direction. we always have to think about the future. since 1999 when i started the business, doing business on e-commerce is like a marathon. we should run as fast as a rabbit and had the pace of a turtle. we have to be very patient. otherwise, you have so many problems. 2101 is your plan? why? in 102 years we will cross

three centuries. emily: i conversation there with jack ma. there was a powerhouse panel at the global business forum. with rubenstein sat down aco. set down with various ceos. the last 30 years, the innovation of the microprocessor, using it as a base to create internet. that has changed the lives of almost everybody on the earth. isng forward, i think it accelerating even more. career,arlier in your you were a technology innovator. at one point, in 2000, you lost

$70 billion of net worth. what did feel like? it was a crash. everybody crashed. [laughter] somehow, at the bottom of the mysh, i actually revived spirit of fighting. actually, it felt good. [laughter] , for three days, i became richer then -- [laughter] later, i became almost broke. [laughter] 99% broken now share price. 99% in one year. david: let me ask you a question about your career. at one point, you made a

investment of $20 million in alibaba. it became worth $90 billion now worth $130 billion. how did you decide it was a good investment? do you have any more like that you can recommend? [laughter] jack ma, not because of the business model, not because of the technology. it is because of his charisma and leadership. opportunityormous on the upside. i said, this is a guy that can be the leader for this innovation. david: you have tried to take a company that was known for selling sugar water and make it a more nutritionally safe and better company. was that hard to be the bureaucracy back when many people didn't want to do the things he wanted? >> it was hard within and outside the company. even investors were telling me,

don't forget, we americans we like soda and chips, don't try to change us. when i asked them if they change their habits they said, oh yes, we changed our habits, will we don't want you to change what you are doing. change does not happen quickly in our industries. we have to change consumer tastes, portfolio, business system. it is a work in process. david: when you go to summer's house for dinner and they say, would you like coke, what do you say? does that ever happened? >> i say, it was nice knowing you, and i leave. [laughter] >> i do leave. without a doubt. [laughter] actually, my secretary send the list ahead of time. david: i would like to ask a question, but people are arerested in this, people

used to turning personal computers on. you have to have three computers -- three fingers to do so. control, alt, delete. it is awkward to do that. you are the person who came up with that idea. why did you do that? [laughter] bill: the ibm pc hardware way itd only had one could get a guaranteed interrupt generated, so clearly the people involved should have put another key on in order to make that work. a lot of machines these days have that more obvious function. david: no regrets about doing it that way? bill: i'm not sure you can go back and change small things in your life without putting other things that risk. if i could make one small edits, i would make that a single key operation. david: by the way, you dropped

out of college. do you think, had you got your degree, your life would have been better off? [laughter] like at the time, it felt there was a huge sense of urgency that the microprocessor was revolutionary and wording -- and writing software for it, a lot of existing countries -- companies, including ibm, would go on to do that. if we were to have any hope, the sooner we did it, the more hard-core we were about it. i didn't want to waste today. in my 20's, i worked weekends, didn't believe in vacation. we had to move at high speed, because eventually, ibm did come in and did compete with us. came alongpanies later. of the companies that were formed in that. , we were theriod sole survivor. oracle did another type of

software. those are the only two companies .hat survived out of that era of, because we were a broad product company. we were very international. it would have been hard to hold me back after i saw the opportunity. harvard, which i loved, was a very relaxing were you would sit in classes and stay up all night and talk to people. it'd have that same intensity. -- it didn't have that same intensity. after i saw the opportunity, i was going to leave. david: your parents, what did they say? bill: they said, we are paring your tuition, what does this mean? i said, i am on leave. sure if it would succeed or not, so they thought

maybe i would head back. single andas maniacal in those days, it was a perfect thing for me. was david rubenstein . buy parts agreed to of a design team in a deal. it helps boost its growing hardware business by owning a manufacturer outright loathing tighter control over production of its smartphone and other devices. coming up, more coverage from bloomberg's global business forum. stepped explains why he up his rhetoric on immigration policy. this is bloomberg. ♪ emily: john chambers is stepping

down from the board after 24 years. chuck robbins has been ceo since 2015 and will take on the role of executive chairman. steer cisco away from reliance on hardware. let's return to bloomberg's global business forum. tim cook outspoken on his views on immigration told bloomberg why he believes it is the biggest issue of our time. we are pushing extremely hard on this. i think it is the biggest issue of our time, currently, among all these big issues. values of being american.

this is, are we human? with, in a track of morality? these people, if you haven't met we have many that came to the u.s. when they were two years old. they didn't exactly make a decision to come. they came here, they only know our country. this is their home. they love america deeply. when you talk to them, i wish everyone in america loved america this much. , arehave jobs, pay taxes pillars of their communities. , andare incredible people so, to me, it would be like mike and say,g to

you just -- i just found out you are not a season and you need to leave. this is not who we are as a country. i'm personally shocked that there is even a discussion of this. this is one of those things .here it is so clear and it is not a political thing. i don't see it like that. this is about basic human dignity and respect. that simple and straightforward. subject ofder served immigration, if i were a country leader, michael would be to monopolize the world's talent. -- my goal would be to monopolize the world's talent. i would want every smart person coming to my country, because smart people create jobs. thing that ultimate creates a great environment and country. in land of opportunity, a land

where everybody can do well if you work hard. these are the things that drive people, gives people a sense of purpose. plan, a very aggressive not just to let a few people in. i went to ellis island on sunday , because i wanted to feel myself what it was like to come to the country. if you have ever set in the great hall. one of the benches that was there in the early 1900s, you can feel the people in that room. you can feel both the anxiety and the hope. that is where we all started from. maybe not ellis island. debbie was virginia, like my family, but we all started

somewhere. we are all descendents of immigrants in the united states. emily: that was tim cook speaking with michael bloomberg. coming up, she is the most powerful regulator in europe. barbara chrisrom taylor. biggest cities are vying to be the second location for amazon headquarters. robert kraft this is bloomberg. -- this is bloomberg. ♪ ♪

media uber is suing flash -- fletch media. is depends fourth-largest advertising company.

millions ofking dollars in damaging. after record fine from the e.u., google is figuring out how to comply with an order to stop promoting its own shopping search results over competitors. while the clock ticks down -- withs down, we sat down margrethe vestager. margrethe: we have found google is dominant and has been misusing this very strong withion to promote itself the google shopping product and to deem it -- on average, you find competitors on page four in search results. you are always finding google shopping in the best placement. you have to apply a principal of

equal treatment. 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, because screen sizes will change, everything will change. we still need this to be adhered to. it remains to be seen how google will live up to this. reporter: google is proposing an auction that would sell space to rivals. it is something they proposed in 2013. can you confirm that is the case? margrethe: yes. we got a first draft of what they were thinking about two weeks ago. we got a broad outline about what they are thinking, but the thing is that it is not for us to prove. it is for google to find a way to live up to the decision. ifs is important, because google does not live up to the decision, then we will start investigating, what is the

situation? is competition still harmed so consumers have less choice? deadline,if come the when do you begin to speculate and assess fines against a google? this -- wewe can can backdate the fines. if we find market competitors complain, consumers complain, saying this is not what it was supposed to be, if we find recent, we will start investigating and then we can predate the fines if we find erisa breach of following up on the decision. -- if we find there is a breach of following up on the decision. reporter: how close are you to resolution on the android case? margrethe: they are very

different, the two cases. one case involves placement of ads on third-party sites and whether or not that market was -- the android case is how android is used to stay dominant. the experience from the box when you opened the box of your phone is the google experience. we treat those cases as high-priority cases, but it is very difficult to say when we will be will to have a final decision. reporter: are those proceedings in tandem? margrethe: we have two case teams. i don't know if they are competing, but we put a lot of effort into this, because it is important for all market participants to know what will be the final decision. reporter: a couple months ago, we spoke with the head of expedia. he is now at uber. he was expressing concern about google with regard to travel. other other parts of the

business that concern you or might lead to an investigation? margrethe: we have quite a lot of complaints on other verticals. with the google shopping decision, having established google is dominant in general search, and when company is dominant, competition is already weakened a little. is where this special responsibility comes from, that you shouldn't misuse your power. another starting point looking at travel or locals. in that respect, yes, we still take a strong interest in google behavior in these other markets. yet, after going for almost a new device, nest is rolling out new products. we will look at the items and speak with the company's ceo. bloomberges of

technology are like streaming on twitter. check us out. this is bloomberg. ♪ what did we do before phones?

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♪ emily: welcome back. on emily chang. nest is known for its cameras that can be set up in the home and watched from anywhere. now it is rolling out new devices with a slew of bells and whistles. mark gurman got his hand on some of the new devices. >> this is product much number three for 2017 for alphabet's nest. after watching a cheaper thermostat and a security camera, now necessary on the home security ecosystem in a big way with four new products. the first is a doorbell called nest hello. it uses your existing doorbell

system, butted at the camera you can record who is at your front door. it has come up with a digital door wall. it may not have much unique functionality, but it looks like a nest product with sleek design and productivity of a nest devices. number three, the new outdoor security camera. the most significant new device launched is the nest secure. it comes with three main pieces. a main hub, window and door fob.rs, and key you can install the $500 device without needing expert help. if you want to fork out more, you can have a monitored for monthly fee. on the software side, nest is turning some of its cameras into mini google phones by adding support. products with new

the bar forward for the industry. these are all concepts that are not only been tried before but executed successfully. thestill it is critical for unit to continue releasing products so customers will remain in the ecosystem and so nest can keep selling them subscriptions on a monthly basis. mark gurman, bloomberg news, san francisco. emily: on the product releases i cut up with the nest ceo for exclusive interview and discussed how he planned to grow the company. >> is not just about the product, it is about the whole ecosystem. the ecosystem, the software behind it, the integrations with other devices in the home. for example our cameras. every product we build will work closely with any other product we've had in the past. we want to make sure they talk to each other and make sure they are seamlessly -- they are a

seamless experience, as well as installation and maintenance of the products. that takes a while. emily: you took over for tony fidel. how are you similar and different? marwan: we had different backgrounds. mine is mostly the service provider background. i focus a lot on customer around, service, areas standing behind our products. i bring a lot of that background to nest. obviously that is one big difference. the company's have the same dna. reports thereere were cultural issues, infighting, recalls. i'm curious how you moved beyond that in the stamp you want to put on the company. marwan: we want to be a global company.

yesterday we doubled our portfolio products. that was a big milestone for us. that was one step of many. emily: how about the culture within the company itself? do you feel like things have changed, things are grown? -- have grown? there are reports of a difficulty in making the transition. n: this is the most talented team i have worked with in my career. great talent, great team. i inherited a very strong team and lucky to have that. just building on that. each leader has a different style. my style is different but the core business and core message for the company has not changed. emily: what is your mandate from larry page? grow the business and be a meaningful business. we collaborate very closely.

we collaborate closely in our products. we work closely on integrating. yesterday we announced google assistant. that's a milestone. we work across different areas within google. we leverage a lot of great technologies, especially around machine learning and a.i. being part beauty of of alphabet. we have the independence to grow our business and leverage different technologies. emily: google just a game big stake in htc. i'm wondering what that means for nest and what you know about the strategy. marwan: it is a great opportunity for the hardware team. well.nows the business

i think it is just a natural extension for them. emily: you mentioned google home. this is huge competitive territory. google, amazon has the eco. -- echo. idc the competition shaping up? marwan: it is in the early stage for all of us. there are a lot of opportunities to change the experience for consumers. at the end of the day consumers will decide what is best for them. emily: how is the rest of the business doing? you unveiled the new thermostat. talk about sales in general. marwan: we are doing very well and continue to grow. we talk about our products growing at a pace -- it is accelerating. this year we will ship more product than we ship in the last two years combined. that gives you the opportunity. the growth is there. the footprint is very important to us.

doubling our portfolio is a big deal as well. emily: there has been some speculation out of that might consider selling off nest. is there any truth to that? marwan: no. when i started i major all of our employees new nest would not be pushed out. emily: the japanese partnered with lyft to work on self driving technology. they will talk about the deal in the future for autonomous cars next. the competition for workplace messaging apps is heating up. slack is looking for a boost. we will talk with the ceo. this is bloomberg. ♪

♪ hunt forazon is on the a city that could be the home of its second headquarters. if new york city secures the

bid, brooklyn could be the big winner. the compound is inspected 350,000 jobs over the next 15 years. a real estate firm says brooklyn's reputation as a hub for millennials could give it a leg up. it has come up short so far in attracting big-name companies. >> we would love it obviously. 50,000 tech workers in brooklyn. that would be fantastic. i think the chance is low. new york is a very expensive place to set up a business. and the current administration new york is not particularly business friendly. i'm not sure new york is bidding. i'm talking about the local administration. i think that new york should be looking for those kinds of opportunities. those of the kinds of jobs that are higher-paying, information-based. essentially what we need.

i don't know the city of new york is actively looking at attracting them. emily: with you think amazon should be looking for in a second headquarters? it can't build a tech quarters in seattle. they are at capacity. what should they be looking for elsewhere? wherea city or place there is higher education. a lot of young people that are looking for the jobs of the new economy. and a business from the environment. -- business-friendly environment. emily: we have a sound bite from the mayor of philadelphia. take a listen. >> we have criticism about corporate tax rates. dealis too big of a and too great of a company. we would love to have it here. we have a lot of folks who could use the work and a lot of i.t. startups in tech companies and philadelphia recently. emily: how does the city benefit?

eric: you do have to give them some tax breaks, i imagine. you are providing if the thousand really good paying jobs. -- 50,000 really good paying jobs. there are people that will buy their products and services. there is a definite plus for a city. new york just opened the cornell tech. bloomberg was involved in that. give-and-go well attracting the second headquarters of this company. emily: i wonder if new york would do a good job of attracting younger talent. who doesn't want to move to new york? eric: most of my companies are here. it's a great place for startups. most people would love to be in new york. there is a lot of diversity and things to do. the city needs to have a plan in place to attract a company like amazon. emily: how would you describe the evolution of new york's scene?

it is changing. how much closer is silicon alley to silicon valley? eric: new york is the second-largest center of technology in the united states, one of the largest in the world. what new york is good at is software development, services. we will not be reinventing the plumbing of the internet. we will not create the next in a ration. we are starting to see robotics companies. all kinds of companies in all kinds of sectors because we have access to the same technology that people in silicon valley have. emily: what is it $10 billion company coming out of new york? eric: hopefully it is in the pipeline. there are a number of countries that have reached the $1 billion market valuation that is think of the potential to be one of those companies. tech crunch disrupt 2017 kicked off in san francisco.

one of the big-name speakers was sebastian --, founder of you intro to- it has an self driving cars nano degree program. the new partnership with lyft this funding 400 scholarships the program. --ning me was sebastian: everybody talks about it. we all understand if they succeed, there may be more than 2 million jobs in the line. we want to help everyone to become an engineer and a conservator. you can actually learn how to be a self-driving car engineer and join other companies in creating these amazing technologies. emily: in partnering with lyft, our you explicitly aiming to target women and minorities? those who might not be your typical applicants? sebastian: yes. we have a strong social mission.

we try to bring in minorities, women, people of color. geographically we have a strong presence in the middle east. we make sure young people in the middle east have a perspective on life. we care about people learning something interesting. so many of us are left behind. smart people are left behind. we try to reach people of all ages, all geographies, all ethnicities and all financial backgrounds. >> i want to talk to you more broadly developed going on. there is a great deal of excitement, but from the likes of google and apple they fundamentally recalibrated their plans. why you think that is happening? what is it about the industry forcing them to make these changes? it is a toughhink technical problem. we still don't have a car that is level 5, or you can fall asleep and drive safely. in the last two years a number

of start up companies have joined the game. it's been staggering. i would say the self driving cars the hot topic. >> how do you know you're creating a program, a training given the speed at which this technology is adapting and moving? how much does it cost? what job translation have you seen of the student set of taking your program? how many are actually getting jobs in the industry? sebastian: the program cost less than $2500, which is nothing compared to college tuition. we built this directly with companies like google and tesla and many others. those companies voucher it. -- vouch for it. last year there were over 40,000 applications. even though not a single degree has been the stowed, 60 people have already found jobs.

a newew way of teaching, way of building a university. we strongly believe companies that hire should be the ones responsible for the syllabus and helping us make a perfect. emily: wo -- that is what we have been doing all along. intelligence, really hot topics. they are from google, facebook, leading companies in the space. we see this as a platform that makes leading industries give them a voice and students take those classes individually have a good chance of finding jobs. we have been operating for many years now. roughly half of our students find a new job within the first

six months of graduation. emily: sebastian thrun from san francisco. amazon is out with an update to one of its products. they debuted the new version of a fire hd tablet, up to 64 gigabytes of storage, lower price and a processor that runs 30% faster. than a significant new feature is hands-free voice control, which lets users -- it will be available next month. coming up, the historic night at the emmys. neithery had done that netflix or amazon have anyone to achieve. you can listen to us on the bloomberg radio app. this is bloomberg. ♪

♪ emily: workplace messaging

service slack has secured $250 million in its latest round of funding. more than half coming from softbank's vision fund. earlier this month, slack, which has more than 6 million daily users, announced they will expand beyond the english language to german, french, spanish and japanese. stewart butterfield spoke with bloomberg about the company's valuation and eight potential for an ipo -- and for the potential for an ipo. stewart: we are growing as quickly as we can't. we had a first user conference in san francisco. we announced a number of new partnerships. we announced the launch of slack in german, french and spanish. that's why i'm here in london kicking off the european tour. with products like that we have very little ability to predict how fast we will be growing. predictability is one thing we are looking at is a public company. >> i expect t-shirts to be put out with concert venues. you are from vancouver, so maybe

it will be like hart from long ago and far away. vcs look at extrapolation of fundraising two $5 billion plus and ask what kind of dumb accounting is this? how you respond to the fancy guys in suits and ties telling you you are worth $5 billion? i don't buy it for a minute. : stewart i love the question. we are a little under four years in market. because $200 million in annual revenue earlier. 50,000 plus customers around the world. 50% of the fortune 100. up to this point we have an english-language only. it set strong growth in europe and asia. notes onhave in your your european tour the odd thing you are building revenue. what is the quality of the revenue stream? is amazon quality? is it ebay quality, or pie in

the sky? stewart: i'm not sure exactly how to take the comparison. one of the great things about that is generally an slack in particular is revenue is recurring. over 3.5 years with had 50% jim lifted turns -- humility of turn -- cumulative turns. we are building on that at a pretty rapid pace. emily: that was stewart butterfield. it was a historic night at the emmys. hulu became the first remain service to take him a win for outstanding drama. " to comemaidens tale the top prize. ten enemies in all, including elisabeth moss winning outstanding actress in a drama. i asked mike hopkins about the

show and it looked like he was looking into a crystal ball. mike: 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 the best in the business, but this one was really special. it has broken through in a way that nothing ever has for us. we are really excited about it. emily: lucas shaw joined us to discuss streaming's big night. lucas: surprised really. if you asked anyone a couple of years ago which a be the first streaming service to win a big award, they said netflix, maybe amazon. they have a lot more shows in attention. hulu, with this is their first breakout. i spoke with most of their executives and they thought elizabeth moss was going to win for best actress and they hoped to win best drama. no one saw them taking five different categories and sweeping the drama field. emily: does the prestigious

translate into viewership? lucas: that the great question. i think it matters -- it really matters in the industry. it will be a good lore for talent to say we can compete with the hbo's and netflixes of the world. hulu just hired a new head of marketing and her job just got a lot easier. you put on every single campaign, "emmy-winning show." is not a show that is mattered in culture as much as the oscars in the grammys. last night about 11 million or 12 million watched. not as big an audience for the other award shows. emily: doesn't get netflix and amazon concern? lucas: certainly 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 it can help them in some way. i'm sure they don't like that hulu was there to beat them. they are big media companies that bash them in the press. they say are streaming service won first. but in the grand scheme, w netflixon -- netflix won 20 awards. they probably feel like it's a matter of time before they have that show they really breaks through. youy: talk to us about how expect the online content race to now shape up between hulu and amazon and netflix and apple. this makes it clear they can be anyone's game. lucas: all it takes is one hit. that is what anyone in the intimate business will tell you. the question is how many chances you get at it. netflix is spending so much money and making so many shows

that they have more chances to get that one hit. hbo have asaid, fx, more disciplined and they would argue they only make the highest quality as compared to some of the garbage netflix throws out. apple orion is, can an any other tech companies now entering this space find that project? netflix early on had to take a lot of b or c scripts because people were not sure what they were, or what an original project a necklace would look like. now that apple was coming around there is so much competition. will they be able to get their hands on great material? that we don't know. emily: that was lucas shaw. that does it for this edition of "best of bloomberg technology." we will bring you the best in tech about the week -- throughout the week. all episodes are live streaming on twitter. check us out weekdays. that is all for now.

this is bloomberg. ♪ what did we do before phones?

they save us from getting lost, getting hungry, and getting nervous in places like this. now phones can save us money too. introducing xfinity mobile. with unlimited data for just $45. that's the lowest price out there for one line. and you can get the same price on up to five. see how much you can save when you get unlimited on a new kind of network designed to save you money. call, visit, or go to xfinitymobile.com.

welcome to "bloomberg businessweek." what happens when investors win out over workers? is mark zuckerberg running for president are not? julia: all that ahead on lyf "bloomberg businessweek." ♪ carol: i'm here with the editor in chief, megan murphy.