burdens for most individuals and adding over $1 trillion to the deficit over the next decade. continues its sin debate its own separate plan. -- his codefendant, the panel first told judges they couldn't reach a unanimous verdict on any of the indictments against menendez. the trump administration is considering having mick mulvaney serve as interim head of the consumer financial protection bureau. the current head will -- announce he would step down --

announced he would step down. bloomberg and bloomberg technology is next. ♪ this is bloomberg technology. coming up, u.s. tax reform clears the house. we will discuss what comes next and what it means for tax caps. plus, inside google's fake news fight. behind the spike in tech ipos in asia.

but first, to our lead. lawmakers have passed their version of the u.s. tax code. ratesshes corporate tax while adding over $1 trillion to the deficit over the next decade. the senate is preparing its own version of the bill, one would -- one that would delay the corporate tax cut for a year. joining me now, we have our bloomberg tax reporter and in new york david kirkpatrick. losers?the winners and >> in this bill, corporations will see their rate fell from 35% down to 20%. businesses also see a corporate -- their tax rate cut,

but it is a little bit more confusing. companies that are really excited about this as this moves towards a territorial system which means companies are not tax as much on their profits overseas. apple being one company known keeping cash overseas. they can bring them back, but they still have to pay a 14% tax on it. folks are seeing if the rate can go down as it goes forward. on the loser side, this is where things are up in the air. the house bill doesn't do this, but the senate bill does. individual rate cuts are temporary. they expire in 2026. that is the same for startup and mom-and-pop shops. people are watching to see if

there could be some extension there. we were talking earlier about a provision in the bill that would have not been good for startup employees. that is out and generally, text got everything they wanted. >> a good day so far. if you look at the big picture, it is great for corporations, not so good for middle-class individuals. specific stock-option -- they were going to tax them much earlier. sayin the senate bill, they based on the current system, you will get seven more years rather than paid up front. >> we also saw changes that are good for you vc's. >> yes.

asically, the new rule is three-year -- you have to hold your business for three years. >> i've been talking to a lot of tech executives who are skeptical that tax reform will happen at all. >> it is funny, because we used -- tax about cap rocket implications. if you are big tech company, the commission of a lower corporate tax rate and to repatriate 1-2seas is an amazing punch. that is really good for big companies. whether they should get that treatment am a given the way some of them are viewed now is an interesting question, but certainly the win over option treatment is a big deal for the of theinnovation economy united states. if that had gone through earlier, we had -- we would have

been in a crisis for entrepreneurs and startups. >> talk about the process. what happens next? what is the likelihood that any of this becomes law? >> the next step is the senate is working to improve the bill and then they're looking to vote on the week after thanksgiving, so some time in december. then, the house internet has to conference the bill and figure out meshing the two together. if history is an indication, it will look more like the senate bill. there are a lot of things that could trip the bill up. it could be the inclusion of the individual mandate repeal. collins, john mccain, lisa murkowski -- the folks that

voted against the health care revealed -- repeal back in the summertime. it is not a done deal and there are still several steps to go. look at the senate bill, what do you see for sadr employees that is good or bad? >> i think one of the basicallyg things is corporation -- that for these tech companies. that is another great thing. even though these companies have been putting their money , in effect, they don't pay the 35% tax anyway.

say the majority of these provisions as they are get past. we said they're good for the big tech companies are at how does that impact the innovation economy? >> i>> would say based on what i heard, it is mostly neutral. you could argue that one thing that might be good is if these companies like apple were to bring money home, what would they do with it? they might invest in more startups or research and development. bet if say i would there's any general trend, it is positive for the innovation economy. >> there you see tim cook shaking hands with people buying the iphone x.

thanks so much. ireland is set to miss a deadline in the appeal over apple's taxes and the european commission. the irish that office was to award contracts for the estimated $15 billion in back taxes that the country has been ordered to collect. last year, the european commission slapped apple with a tax bill for as much as 13 billion euros. the company -- commission also sued in october for failing to collect the taxes. coming up, fake news. changing theook algorithm. tech tv.this is bloomberg. ♪

>> twitter is cracking down on verified accounts. a new policy remove the blue checkmark next to a user's name without any notice. this comes after twitter took oft for verifying the count someone who orchestrated the white supremacist march. world loves talking about its unicorns, startups that reach the $1 billion value mark.

did you know there is such thing called an evil unicorn? it has nothing to do with the company's value. shooting,las vegas history,iest in u.s. google promoted a story that wrongly identified the shooter. it is fake news like this that maybe his footing it weakness at the core of google's other rhythm -- algorithm. here with us to discuss, david kirkpatrick. -- mark corrupt -- mark kirkpatrick. >> this is something similar to spam. monthked to the ceo last and said this is a search quality issue. is a term that

google came up with. it is triggered by a long tail of obscure keywords. you have something like child vaccinations. a lot of people believe you shouldn't. with breaking news is there's not a lot of information and so these tolls have been able to exploit the system. earlier this month, we saw around the shooting in texas. >> explained to us how google's algorithm will make you lose the spread faster. >> in recent years, google has shifted content. they are seeing a lot more competition from facebook and twitter. algorithms have

started to prioritize fresh content. , theyhere is a big event post on reddit or for 10 or twitterhan -- 4 chan or twitter. -- >> the bigger question is now that society relies on a very limited number of places for their information -- facebook and goal -- google -- we don't really know how to interpret or govern these systems. i think mark's story about what google is doing is really important and fascinating, but i come away really concern that there really isn't a solution inside. the good part is google seems concerned about it.

they're talking about it candidly. they want to do the right thing, but it isn't always there with the right thing is. they don't want to suppress all the information because many of the sites after an emergency or want are legitimate and we to see that and how do that is a tough challenge. >> so, what is google doing and is it going to work question -- going to work? time there is verified news, it is pulled away from the longer-term search queries. example, -- buried and they are doing it for their users. is dok the other concern

we want google and facebook to determine what is news and what is newsworthy? beckett into this whole political message they were trying to avoid. >> there's all this talk about the rise of machine learning to respect going to make the problem worse? month,n interview last we said our adversaries are going to use machine learning too. this is where google and tech companies are pushing to make machine learning more acceptable. we may see trolls in that actors using it. it -- that actors using ad actors using his request these things are not a problem when you're talking about just news, also youtube. there was an incredible piece last week on what is happening

with youtube kids. gamed in content that you probably don't want to show your kids. what is the responsibility of youtube? we want thenoted, content to be more responsibly presented and we want some kind of authenticity to be appropriately represented on all these services, but we don't want the companies to be in the role of gatekeepers. my own opinion is ultimately they will have to become that anyway. the children's content on youtube kids -- these are people who are gaming the system out of some perverse desire to torment -- dren and >> or make money. is about clicks? >> i guess it is. it is really disturbing.

they are sporting a system that is there for exportation and i believe that machine learning is going to be aligned by all parties in these cap and mouse games -- in everything on the internet, it is really an arms race between the good people in the bad people. amazon will make artificial intelligence tools available by the hours -- the hour themselves. i don't know what the answer is, but these problems will be more discussed going forward. you.vid kirkpatrick, thank and our bloomberg tech reporter. tesla expected to announce in heavy-duty truck. details of the upcoming unveiling next. this is bloomberg.

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>> for the first time, tom eric has confirmed that his firm walked away from rescuing the one company cofounded by harvey weinstein. i think the patient is on life support. the directors are doing the best job they can trying to put many of the disjointed pieces together, but it is quite complicated. i doubt whether the current plan will be successful for very long. i the studio was rock accusations against everyone seen for a tesla set to announce

an all electric heavy-duty truck with economist technology. elon musk tweeting about the unveiling, saying this will blow your mind out of your skull and into an alternate dimension. ,oining us now from detroit jamie butters. do you buy? it? >> coming from mr. musk, you always have to take it with a grain of salt. most of the time he gets there eventually. one. this will be another one of the things he excels at is getting people excited about potential new technology so the stage is set. >> what do you think of the potential of this truck as a business? will be exciting because

there will be interesting technology and the challenging -- challenge of making electric truck -- nd electric tesla is running about $10 billion per year so to be another nice revenue string, but it has potential to be much bigger in terms of changing the way trucking works. it is very efficient use of diesel.but still using great place to employ the economist -- economist -- >> some analysts are not interested. distractings is from what tesla's primary focus should be.

how do you respond to that? >> i can't say he's wrong. -- the make or break model for tesla is the model 3. elon musk has so many businesses going on -- the regular tesla, solarcity, the boring company, there's so much going on that adding a truck is one thing to many. it is a bit of a distraction, but if they can figure out the , atlenecks of the model free lot of those solutions feet into what is going to be needing for making a truck. i think they have to get the model 3 right, but it could be beneficial anyway. >> already expecting any surprises tonight? what will you be watching for? >> it is one of those do we even know what we don't know about this truck? i think we start with when will

it get made? #if he gives many us an idea of how he sees the business being then we can dig into other details like the range, charging infrastructure going to be? look at the big -- the way they trucks are used -- hundreds and hundreds of miles. >> all right, jamie butters in detroit. thanks so much. startup inand indian the midst of a downturn. bloomk at what cop ventures i next -- we look at ehat caught bloom ventures ey next. this is bloomberg.

>> you're watching bloomberg technology. here's a check of your first word news. the los angeles radio anchor who accuse out franken of forcibly kissing her 11 years ago except

his apology, but he could have apologized for the -- earlier. the apology, i accepted. people make mistakes. investigation -- if that's what mitch mcconnell wants to the than that is on them. i'm not calling for that. if that is what he wants to do than that is up to them. >> senator franken issued a statement saying i respect women and i don't spec men who don't and my own actions made me feel ashamed. two of france's biggest workers unions are leading a nationwide protests against emmanuel macron and his economic reform. thursday's demonstration market four-time since protesters had taken to the street over my crohn's policies. global news 24 hours a day,

powered by more than 27 -- 2700 journalist and analysts in over 120 countries. we are joined with david for you look at the markets. we might get to a record high. through it with that being said, just a few things for us it has been quite a week. you seem like we were on track for the first weekly lost -- lost in september. sincet since september. will -- might just help the benchmark

eke out. out with trade data. plus, we're watching all the movements in the currency markets. moment, let's leave it at that. ♪ this is bloomberg technology. i'm emily chang. venture capital's base out of india is want to get's largest

firm today. -- largest fun today. date.d to still with us from new york, david kirkpatrick. and here with me in the studio, a managing partner from bloom ventures. what you think are the biggest opportunities and the biggest hurdle? >> for the first time in about -- it is a lot of digital infrastructure. -- theyhe government really ambitious will rollout of 4g.- ambitious rollout of just fiveople from

for less at 4g speed than $10 per month. the structure has shifted dramatically the last yourself and that is a huge opportunity. >> what about the challenges? >> physical infrastructures are still behind. the government is trying hard. the exit map is still challenging. without that playing out, it will be hard to prove we can build massive unicom. >> according to the numbers we have come a this year no more than 1000 significant startups, down from 6000 last year. what does that mean?

>> that is a dramatic drop. i think it is a new cycle that mentioned. bc'ss built with a lot of between 2005 and 2012 and -- a surge of tech in the market. the tope very wide at and it was little guys writing the checks. to three years of this and everyone is stuck with liquidity problems or waiting and watching. suddenly, they have taken a step back on what next. we have seen this happen in -- a and then things

>> you have done business in india. we are seeing companies like amazon getting a lot more serious, apple as well. what you see when you look at the 360 degree view question mark >> i think long-term is the key point. if you have a long-term view i don't see how you couldn't be super excited. 300 million people with smartphones already and getting this inexpensive content. one billion people still to go and not only that, this identity system has basically rolled out to a very large percentage of the population. there's really no part of the economy that can be improved by digitization. i think the inferiority of the structure now maybe next an

opportunity for some leapfrog opportunities if people have good ideas which am confident they can come up with creative clearly, he is. alibaba, flipped car, what are the prospects that you think for amazon? game andal long-term if they are willing to make the commitment. a long timeto take before they make a lot of profits. it is verified conscience economy. by the time you get the 200 million person to contract, i think you are about seven years out. surprising that softbank and alibaba discovered that.

you are essentially saying the chinese in big japanese investor which has been developed by the liquidity of alibaba -- these are the two big investors saying we can stand up to be giants. bc uber as well, everyone is fighting over in india. if you go past these, i don't think there are other large american companies yet. that is because there's a lot of complexity, so they might start acquiring businesses. and googleacebook being dominant. that is probably because of the speaking country. >> what do you think the impact will be for the trump administration? many people come from india,

especially in technology. >> i think the education applications and the work applications have dropped off this year. it little fear of retribution. others, happily trying to figure or how to join more startups get them back in india. the idea is hopefully will show enough attractive opportunities to come back to india. side, huger contingents of americans lining up from the government to silicon valley bank. still bring talent here. we're doing that with a little fun called bloom. bloom. called

maybe a little later in the game. >> fascinating. thank you so much. david kirkpatrick, you're sticking with us. spotify is doubling down on its presence in london. it is moving to a new office and planning to double its workforce in the next two years. how the employees working on engineering, data and machine learning -- this appears to be another post-brexit vote of confidence. facebook and google have announced to increase hiring in the u.k. >> coming up, what we know about comcast interest in 21st century fox's properties next. this is bloomberg. ♪

agreeme warner and at&t to extend their timing agreement with the department of justice. the parties continued to discuss mitigation opportunities. and 21st century fox shares are .opping as much as 8% comcast's express in acquiring a big portion of its film and tv assets after talks with disney cooled. kirkpatricks david coverso from l.a. who

21st century fox. yesterday, the talk with disney it sounds like have been shelved. tell us what you know about comcast. very fluid like a situation in the comcast has been kicking the tires. assets ofest in these 21st entry fox and it is also unclear of the situation with disney. there could be suggestion they might be interested as last time -- eported, things it is interesting because yesterday at the annual general meeting they were talking about not only compete with media companies, but also tech companies.

that has paid off, really showing in the last quarter they were able to get a good increase in the revenue. they have some of the most popular tv shows showing on like this is us. it makes some sense. there are so much happening in the original content arena. 21st century fox is an interesting position. an idea and business generally that you have to consolidate business distribution and content with warner sot&t and time this is in line with that. comcast has been buying more content and clearly knows how to deploy it on its distribution. it is surprising if you think

about how we see on the one hand this extraordinary enthusiasm for the internet giants and the revenues and yet, these companies see an attempt -- they have an idea they can build an alternative senator -- alternative senator of gravity. >> what would a comcast bring to the table that disney would not? comcast has made a great effort in turnaround the businesses it has acquired such as nbc universal. it has been able to take many of the properties and really maximize the revenue out of them and that is what he hoped they would do with the fox assets. so in a way, they would really be combined to his most powerful entities in hollywood when it comes to movie content. the other area, which may be

different from disney is a lack of clarity around what each of these parties want. could there be more interest from comcast on the sports i? it is unclear. that is one area that is different between the two of them. fox is clearly benefiting from the interest with their stock price. yesterday, fox had been frustrated by the discount at which its shares trade. financiallyes sense , investors have this question murdoch family want to sell the's crown jewels right now. >> on that note, because things are happening in the offers are being entertained, does it make you more convinced they want to sell? >> the fact they have entered into the conversations, why would you strategically have

these conversations if he were not thinking about it? there were a lot of conspiracy theories about what this means for their business. commitment ifess they can get the sky deal done? people i spoke with said that is not really the case because there has not been more saidmation and fox has they think it will close next year. i think there has to be consolidation in order to drive the consolidation. if you chose look at the movie studios, there are six of them. -- fox, sonic, per month -- are not doing great and disney in universal pictures are pulling away and doing super major studios. there is that happening in fox entering the talks that only gets a boost in share prices, maybe there's something else they can do.

maybe they can concentrate on news and sports instead. >> thank you. , thank you forck joining us. coming up, the asian tech ipo market is white-hot. we will hear from a company that made its debut this week. this is bloomberg. ♪

>> baidu is jumping into the smart speaker market with the brazen h. it costs about $200. the chinese tech giant also announced updates to its mobile app to more closely integrate news with search results. viewe latest eye-popping in a hong kong stock market grip by tech fever. we spoke with the tech giant tencent. traffic.ts, user risk management. very different facets. -- rather than just the stock market. bloomberg correspondent

joins us from hong kong. they made a big splash, pricing at the top of the range for to is behind interest question mark >> it is the intent backed moniker before the name. i was down there at the stock exchange yesterday and there were four other ipos in this one -- becauseessarily it is linked to tencent, i think tencent owns about 21% of the company. also, in a sector that is kind of booming right now in the auto leasing and they provide that online. they are only a three-year-old company. -- my carght my chart in china, the availability was very limited. you to go and cash for car. mes is what andy john told

about how they plan to triple the number of cars they plan on leasing. what we are currently operating on, we are looking to add millions more. use a lot of the proceeds to boost their marketing. it is not her that they have those billion plus users and -- 10 payhave can pay built-in. changed? has that it is changing a bit because hong kong is traditionally offering a big state on enterprises -- the banks and construction companies. as of late, there has been lackluster demand.

now we are starting to see some of the tech companies and companies that respond across the border here. you are seeing more interest and keep in mind, this is a heavily retail driven market. -- this mom-and-pop particular one was 500 times over prescribed. -- oversubscribed. -- there's a lot of retail investment going this is a new sector, we have to get on board or we will get left behind. all right, stephen engle in hong kong for us. thank you as always for something by. that doesn't for this edition of bloomberg technology. on friday, we will talk about google, ai and economist cars. and a reminder, we are live

streaming on twitter. that is all for now. this is bloomberg. ♪ retail.

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