people killed in niger deserve answers. was with trump singapore's prime minister for a contract with boeing to be some. the prime minister said that the relations between the countries are prospering. trump meets with the philippines president next month. te has been criticized on drug dealers and cutting ties with the u.s. and eu. meeting with the leaders as he eeks to pursue the strategy

to fight the telegraph. the stops for the first as tillerson's tenure as secretary of state. i am alisa. this is bloomberg. bloomberg technology is next. host: this is bloomberg technology. increasing a footprint in the cloud and a deal to buy br oadsoft. electionefore the testimony. a california house representative put silicon valley on notice. the congressman joins us this hour. the earnings parade continues

this week and we preview what to expect from amazon, alphabet, and twitter. broadsoft in a deal that expands the presence in software and the cloud, which has been a priority for the company and it capped off ai year of deal making. for more reaction, we are joined by ed and corey in the studio. why did they buy this? >> they were looking to acquire them and cisco is famous for this. it matches a lot of product areas where this already exists. it is software that is used for networks and communications platforms. they have a lot of these offerings. they have been competing against

them for some time and, in some ways, it is a natural fit, and others, you wonder how it will be with product categories. >> especially with the acquisitions this year. talk about the terms of the deal and what stands out. >> it is a reasonably large premium and we are looking at the price from august before the rumors first started and it is a 20% -- 28% premium and that is healthy for the sector. it is not a huge deal, by cisco standards. 200 takeovers in their history, a phenomenal number. we have seen them do private market deals and this is unusual. what we understand, it was a reasonably competitive process and there were others interested inthis and that is reflected a decent premium that they ended up paying.

i interviewed the ceo and asked him about how open they are to bigger deals and more revenue-driving deals. take a look. >> we are open to acquisitions that a line with where we are trying to go and i have said that repeatedly. innovation and we spend a lot of money on internal research and development and we are focusing some of that into our core. i think we have between -- but 15-20 company since i have been ceo. >> are we going to see more of this? the: the says been bread-and-butter for a long time. they try to acquire companies and use and keep the people. ay shareholder's -- from theeholder's perspective, number of shares go up because

they issue so many shares as options in deals. even if this is a cash deal, employees are getting options those shares convert. this is a longer-term concern. e chronic standpoint, the notion you can contact the employee on a cell phone with a voicemail that follows them where they do not have to check multiple devices going on, this is a unified messaging product and my question is about the additive revenue gain they get. traditionally, when they buy a product they compete with, they say they have a good product and they are going to take their sales force and sell this everywhere. adsoft was already selling. the question is where they can really add any leverage the

provided.e that >> will we see changes at cisco because of this or more of cisco selling what they have to offer? one of thethey have greatest sales organizations and they are going to plug this in. this is not a huge deal for them going to move the needle. this will allow cisco to do more servicing contracts, rather than just servicing hardware and we are seeing that across industrial companies. they do similar things because it creates more stability in an otherwise volatile environment. and we spoke chuck

about how they are making a transition fro. how are they weathering the change in the business? >> i will grade them on the curve. they have had greater success than other competitors. almost all of them have fallen to the wayside. you look at companies like hewlett-packard, dell, the sun haveess, ibm, all of those face planted. they get gobbled up by a software company. eating the world. that already happened to sun. you see the results in a prior life as a software-slinger. this could also be a more recurring part of the business, but is not big enough to do that yet.

>> all right, cory johnson. thank you both so much. we will keep watching. may.iggest move since pressure is on the stock after they launched a gift shop site that went into competition with etsy. the house of representatives as strong words for silicon valley. what he had to say is next. days. us out week this is bloomberg.

host: a new function is coming to facebook messenger. deposits and access quarterly performances and receive weekly alerts. this is the first to offer trading services on that platform. a november 1, three of the top tech firms will testify before congress and lawmakers want them to answer about russian interference in u.s. election. one congressman is not waiting until then to challenge silicon valley and has a stirring op-ed in the washington post.

that big tech must be taken to task over elections and diversity. thank you for joining us. you say that trump used the tools to win, despite the overwhelming support for hillary clinton. it is almost that he bested them at the game they invented. >> he was effective in using facebook and twitter to get his message out and a lot of these platforms were abused and they that pretendvoices to be 10,000 people. they trafficked in false news and technology needs to figure out how to solve these issues. we know it empowers people, but we need to fix what we saw in the 2016 election cycle. >> you think that it should

strengthen and not weakened democracy. some would argue that social media has dramatic the increase the number of voices that are being heard. tech companies be responsible for all of this? >> i think it has played a positive role overall. you had barack obama and bernie sanders and i joke that the average person has more of a voice with a clever tweet than i can in an empty chamber in congress. people inowered extraordinary ways. now, they are a platform where people get 50% of their news and they need to have basic differentiation between fact and opinion. televisionand stations have third-party verification and independently check facts and there can be

third-party verification on posts. they can look at providing alternative perspective. they can look at what the journalistic responsibilities can be without suppressing the freedom of expression and i'm encouraged a number of companies are doing that. >> you have wondered how long they can distinguish between fact and opinion when our president may have a different opinion of facts than the facts. >> it is a difficult issue. they can rate content. if somebody is saying that the sky is green or that barack obama is not an american citizen, they can have a rating and a verification, just like newspapers and television stations. or, they can provide a link to alternative perspectives. i think that this is different

than television. television is not as interactive personhnology is a -to-person communication. they cannot fears possible for the content of every single post . that being said, they need to move to journalistic standards so that theyion give users an informed perspective. host: i wonder how much we can rely on companies to do the right thing and what is in the best interest to society, rather than a business. how much can government be in interferencesian on these platforms? should there be regulation? >> these are different questions. there is a silicon valley tradition was some of the early

founders talking about building technology in a way that would help society and empower people. you talk to leaders and that is what they hope. they want the platforms to lead to a more connected world and create more jobs. tim cook said that business leaders have a moral responsibility to care about education and jobs. a $1er recently announced billion initiative to prepare people for jobs in the future. there is something that tech ,eaders have to care about given that they are some the largest companies in the nation and has such great responsibility and so many viewers. on the pressure issue, i think we definitely need better intelligence sharing between technology companies and the

government, so that they can get advanced notice, if there is suspicious activity, to act on it. and, they need to look at bad accounts and bad actors the way that banks do. some of that is hiring more people. ofn if they hire thousands more people, they need more investments in machine learning and artificial intelligence to do some of that work. i hope some of that will be tech coming to their own conclusions, but there will be a rule for congress to create rules that tech can follow. >> you talk about diversity and upward mobility. is this something that you think companies can do on their own? we know that the representation of women and minorities at tech companies is low. >> it is in there and vantage to

expand their imagination in recruiting. 45% of african-americans who have stem degrees or go to a historically-black college or 45%.rsity, that is they should go to some of those colleges and recruit from there. the nfl, the oakland raiders, they did that and started acruiting and it gave them competitive advantage over other teams in the nfl. in a time where we have scarcity poolalent, expanding this thisoing to places like would make a difference. >> the question is whether the government should force them to do so or legislate various requirements for representation of women and minorities. >> i am not sure about quotas or

government regulation, but i think that making investments in schools to focus on stem and providing greater opportunities incentivess to give for women leaders, i think that government can incentivize the creation of a pipeline to getting people into those ranks, but i don't think they should regulate a number that companies have to meet as a quota. that would be going too far. host: thank you so much for joining us here on the show. on tuesday, we will bring you the latest on the congressional to the trump campaign manager russia with eric swalwell. the seattle-based tech giant says they received proposals from across the u.s., mexico,

and canada. lastannounced a search month and promised 50,000 new jobs and spending $5 billion on construction. only seven states refrained from entering the bidding process. still going strong after the blue apron ipo struggle. this is bloomberg.

int: uber is expanding europe. they will provide assistance to drivers and passengers in france, spain, and portugal. in the meantime, they are seeking an appeal of the license ban. a valuation, the

company plans to be a number one player in the space by overtaking blue apron, which is receiving challenges since going public this year. first of all, how does oflofresh avoid the fate blue apron? >> they have to distance themselves from the blue apron narrative. they listed in june and shares have fallen 50%. they have seen customers declining and they have had to cut 6% of the workforce. things are not going well for them at all. for a hellofresh, they are doing well. have been up from the previous quarter and they are trying to go for blue apron and target them. the ceo has said that they are going to overtake blue apron in

the u.s. by the third of fourth quarter of next year. sets hellofresh apart from blue apron, so they do not fall from the same things? once they are relying on a customer base. they have 1.3 million active customers and that is really the strength. and theyin 10 markets are moving ahead in the u.s.. like blue apron, they are not profitable and they are relying on getting up there. >> how much of a threat is the amazon factor? retail, a threat to pharmacy, any industry you can think of. four hello fresh, it is the same. blue apron is down a lot because of the amazon deal with whole

foods. that affected investor sentiment. affect amazon in the new world is the question. >> what are we looking ahead to with ipo's this year? scattereden a few success stories. >> snap and lou apron were failures. we saw a few good ones in europe. investors have been receptive to the ipo's. the market is running ahead of the u.s. market. they are expected to pick up. investors are looking for gross stories and there is not a lot of growth to be found in markets. if hellofresh can prove they can generate earnings and sales, i'm sure they will do well. >> all right. thank you so much.

we will be following that when it comes out of the gate. coming up, a few tech giants report earnings this week and we will have a look at what to expect out of amazon, of that, and twitter. you can find our interactive function and watch us live. if you miss an interview, you can go back to it. this is for bloomberg subscribers only. check it out. this is bloomberg.

♪ mark: i: -and- you will is i am mark crumpton. deserve killed in niger

answers about this month's deadly ambush. the families as much information that we can find out about what happened and the american people, what their men and women were doing, and when i say that, anywhere in the world. they should know what the mission is and what we're trying to accomplish while we are there. the general said the men died on october 4 in what he called a difficult firefight. jean-claude juncker says talks with the united kingdom are on hold until the rights of citizens are assured and i financial settlement is reached. a financial settlement is reached. he discussed things with theresa may last week. catalonia's parliament is set to talk about mariano rivera i -- rajoy's plans, and they plan to

block government efforts with human shields. 19 state attorneys general want a federal judge to force the trump administration to pay health care subsidies the president cut off this month. the attorneys general argued that the payments are required under law and that stopping them will hurt consumers. the government says they cannot can and you to legally pay it because there is no -- cannot continue to legally pay them because there is no law. global news, 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. i am mark crumpton. my colleague, paul allen, has a look at the markets. paul, good morning. paul: good morning. markets closed weaker. of 1% onef about 1/5 half an hour into tuesday morning trade. here in australia, the asx

futures looking flat, up by about five points. we have seen the iron or price -- the iron ore price weaken to $62. were highs after the election result in japan. keep an eye on toshiba. they are recommending voting against the annual earnings, citing the governance, but it looks like they will win that, regardless that is a look at what we are watching today. " bloomberg technology," next. ♪ this is "bloomberg technology." i am emily chang.

on thursday.report the companies are expected in court on november 1. also reporting thursday, amazon, looking for a new city to build its new headquarters. rbcing us is an analyst at capital. what are the numbers you are watching? whether the quarter can sustain topline growth. that is the most important number. on the cost side are acquisition costs three and they are now spending $5 billion a quarter with partners like google and acquisition costs. they are now spending $5 million a quarter with partners like google. acceleratings been , so the question is can the company manage those traffic acquisition costs? those of the numbers to watch. emily: can they? we have done surveys, and

we see growing at increasing adoption of google. i know that sounds at this stage, but we are seeing rising advertising interest, facebook but still google, so i do not think there is any change in that 20% year over year. emily: we know they do not break a lot of stats out. yes, i wish we had stats. i guess they are doing better with youtube. i think the never could be closer to $15 million or $20 million. i think we are clearly seeing a migration online, and i think youtube, they are school and get up faster than people realize. interesting. google, facebook, and twitter to testify before congress. foreign actors interfering on these platforms, does that hurt the businesses of these companies down the line? think so. not i will give you another take.

you are telling me that someone could spend a couple hundred thousand dollars, and that could swing an election? what other things could they sell? i am struck by how powerful these platforms are. of course, with that comes responsibility and whether these companies are living up to that responsibility. another issue. really does two platforms -- is it a different category. it is experimental for advertisers. emily: is so continued concerns about user and revenue growth with twitter. and they turned the tide? mark: there is a lack. this is down 11% year over year to get last quarter, it was down 8%, so it is getting worse. it is hard to buy a stock in the secular growth industry where the growth is declining, and you mentioned universe. last quarter, those monday average users declined.

why is that happening? with twitter, it probably says they have got a product problem, a usage problem, or they peeked out, and those are hard to fix. out, and those are hard to fix. emily: they are doing things, " campaign. too can they affect how people use it? mark: i think it is one of the most important things they need to change. there is a lot of interesting things on twitter. you can see something inappropriate written in response, and they know there is a safety issue. i know it is a tough line. you do not want to cut off people's ability to speak their minds, but i do not know how you do it technically, but if there is a way to remove it, that cesspool of content that is in

there, remove that, i do emily: not know how that is possible. -- i do not know that is possible. emily: how is that hurting? u's, i think it depresses usage. ofly: and the acquisition whole foods. how is that going? mark: isaac we are going to get limited disclosure. we only had -- i think we going to get limited disclosure. month, so whone knows? i would like to hear the amazon playbook. we never really heard it. aws, theest of it, cloud growth, and can those margins expand was to mark mid-20's. it is the most profitable and fastest-growing part of the business. there probably would be some miss execution -- would not be some miss execution --

misexecution. into the holiday season, anything particular you will be watching with amazon? they are expanding distribution centers and faster and faster delivery, and amazon said one day and faster, so this should -- this should lead to greater customer satisfaction. that ordering deadline going into the holidays shorter and shorter. i would expect them to have stronger christmases every year just because of the shorter delivery time. alwaysall right, mark, good to have you here. we look forward to your report. and a global breaking news network for twitter. the heat of aling theded smartphone market, newest creation getting a price cut of 200 dollars, and the price is now $499.

it is eventually cost $699, this comes after disappointing sales. customers who already bought a device are being offered a $200 credit. coming up, there is a new player in silicon valley, to match corporations with startups. this is bloomberg. ♪

♪ emily: there is a new matchmaking service in silicon valley. announced a new

targeted advisory service called silicon foundry. it aims to connect startups with big companies looking for insights into the latest technology that might affect their industry. the company says it aims to avoid a comment by u.s.-made in venture capital networking, were people make connections to support their own investments. comment issue in venture capital marketing, where people make connections to support their own investments. started in 2013 and have been at this for a few years, but this was our announcement today with the partnership with and we have been independent from day one. we work with corporations the world over, helping them to navigate the start of ecosystem. part are members that are of our business model, and we are using ourselves as a resource for the entire ecosystem. emily: you call them clients. right.hat is

many venture firms have built out corporate outreach arms, executive briefing centers, is this development functions, who work for the fund and whose interests are in promoting the interests are in promoting the interest of the funds. we are an independent company. our model comes from our members. we work with all of the funds, and the introductions we make and the private events that we from allhave v.c.'s over the valley. course, sherpa has funds, early stage and late stage. there is a shared history there of the cofounders. we operate as an independent company, and we work with our members. our members want to find the best companies, the best emerging technologies. they want to be where the new business models are emerging, regardless of who has backed them or where they are based in the world. companies like

salesforce, who has strong connections in silicon valley, why would they want something like this? neal: each is different, where they are in their life cycle, where we can provide the most value. with someone like salesforce, network within the portfolio. also, we spent all day long meeting with people around the world, so we can provide connections in europe and the states and asia. is the demand for acquisition, start up acquisitions, is that impacting the interest here? neal: i think so. when we work with these operations, it is for one or multiple outcomes. they are looking to identify startups where they can be a customer or perhaps a partner or strategic investor. one third of all venture deals also have a bag, and, of course, m&a activity. -- also have a bank, and, of course, m&a activity. emily: on that note, where does

your responsibility to a member stop? do you help the acquisition from beginning to end, or do you handoff? post introduction. again, it all starts with identification. we have members who have been a part of the diligence process. on the m&a deal. the business of deal sourcing and qualify. what we do not do is we do not compete with banks. that is an important part of our motto. there is a flat, annual fee. our incentives are entirely aligned and unbiased, so we are not pushing to do a deal, but we are helping through the deal process. emily: you happen at this for a couple of years now. what are some of the biggest have been at this for a couple of years now. what are some of the biggest success stories? neal: we used to have a single

page, even though we have been at this for year. strategic investments. we have a european business that made a three quarters of $1 billion deal, and we had a hand in that process. a lot of what we do is more qualitative. we are helping our members, providing insight and intelligence and making recommendations. those don't make their way into press releases. of their ownrms product roadmap and their ecosystem. emily: there have been some dramatic changes. softbank, for of course, with their fund, and the cofounder of paypal told me it was like the asteroid in the room -- how much do the changing macroeconomic conditions impact the weather in switzerland, let's say? neal: i think one of the things we have seen is demand where our message has resonated, within our national players, and you talk softbank -- asia, alibaba -- we have so many of these

players coming here. so i think maybe where we see it play out in switzerland, many of the companies we are working with have members from the middle east, japan -- so it is truly a global series of who are increasingly committing attention, time, resources, dollars, boots on the ground here in the valley. of foundryright, ceo , thank you. coming up, the automation wave is cresting. how it will impact jobs from silicon valley to wall street. that is next. and a quick programming note. alix steel will be in washington at the annual meeting. tune in for a great lineup of guests, including the goldman and others.ent catch that conversation at 9:00 a.m. eastern. this is bloomberg. ♪

♪ rise of automation

and artificial intelligence is causing anxiety about upheaval in the workforce, the fear that it will leave millions of americans unemployed in the next decade. the founder and ceo of a messaging platform that develops products for online messaging and analytics spoke with julia chatterley and others. like in the u.k., about 70% of the time, we are getting a positive hit rate, and to answer the question. unfortunately, because it is like the wild west, people are throwing up things on facebook and different messaging platforms, and sometimes it works, and sometimes they do not, but we are working with t-mobile and vodafone, citibank, and we do it at a different scale. julia: how many of those were answered by a not real life person and go on to the

interaction to a live person, and how do you think that would change? we are talking jobs. today, it is still through human interactions, but what i can see over time, we do 15 million chats a month on our platform, so we see these conversations, but over time, i believe that 80% of the conversation will be automated, and 20% will be a human being, and there is one where a human or together, side by side, and that seems optimal. in call centers, and you are saying that 80% of those in sometime in the future will not be there anymore? think it isally, i different. i think they will transform their businesses. today, they are answering a lot of questions over and over again, which is not high value, and where we are going is the more high-value customer

engagement. they are kind of stuck. they are not happy. even the agents are not happy. you call up call centers and experience what an agent feels, but there is a better way to use them. whatr: does it matter customers want? i am thrilled when i call my bank and get a pressing zerohan repeatedly until someone comes to me. we do messaging. consumers want to message. 80% of the time, they are using a device to message friends and family. now when we implement that with businesses, with consumer behavior, nobody wants to call you we are forced to call. we want answers to questions, 2,ere you press 1, press often, we are put on hold, and we lose our valuable time. that massive commitment is going to change our lives. anchor: why do you think this is

going to change? 4.2%.employment rate is for all of the talk of replacing jobs, there is very little evidence that it is happening large-scale. productivity, which you would expect to see surging if there was an a.i.-led change in the workplace, it is rather muted. years ago, putting other people on the other side of the cameras, some things are automated now. jobseality is, there are that become automated, and then you guys are here talking, so i of iting the uncertainty is that am i going to lose my job -- i think there is a lot of hype about it, but the reality, someone who is behind the camera now has a job somewhere else. someone here is now doing some thing else that is high value in the bloomberg organization, so things will shift, and you cannot stop it, but things are

shifting, and in customer care, it is happening really quick. a.i.: let's talk about mark zuckerberg. steve mnuchin, you said he was naïve about the impact of a.i. robert: yes, when i hear the i don't know what we are about. everybody throws things under there. automation. automated tasks. dot can we get done where we not need a human on the other side of that? that is where i think he is a little naïve, because even a company today, hr, can il -- talk to ise an interface? so "a.i." a catchall for the fear and anxiety, but things will get automated, and that is what is

happening in our enterprises. governments are not yet keeping up. robert: that is another story. we can automate government. things like the irs, things like asking the government questions, there are big parts of the government that we could automate that we would want. more as consumers, we decide what we want to do, and if we want automation, if we want to preserve our time and get through these very basic tasks and have some help from an automated service, we will take it, and we will -- no one can stop us. ascio. that was robert loc and finally a story we have been watching, snap says it has overestimated the desire for its units, many sitting and warehouses. this is another setback for the struggling social media company. it cut jobs and decided to slow

down hiring for next year. and that does it for this edition of "bloomberg technology." are streaming, we online. that is all for now. this is bloomberg. ♪

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from our studios in new york city, this is charlie rose. charlie: we begin with politics and are joined by mike allen, a ofounder of ask he is -- axios. let me begin with general kelly. i thought that was a very, very emotional moment. and not just externally. we are hearing inside, a huge impact about the staff. one of the insiders of the white house saying general kelly is lo