♪ emily: i am emily chang and this is the "best of bloomberg technology." coming up, and that he makes his exit from twitter. as ceo plans to put the ride-hailing giant on the road to profitability. highlights from his conversation. amazon go is open for business. we open the doors for an inside look at the brick-and-mortar convenience store.

first, to our lead. a shakeup for the leadership team at twitter. the ceo has resigned from the company to take the ceo position at a thing tech startup. ch startup.t a finte work cut out for him. he will feel a leadership void that has existed since the cofounder resigned as ceo last year, amid activations of sexual harassment. we got all the details from selina wang. that delivers a blow to twitter, especially just at the very early beginnings of their turnaround strategy. several analysts upgraded their company. they are finally showing revenue and user growth. noto did put in place much of the structure they needed to continue this turnaround.

some sources have said that this could provide a good opportunity for jackson. he and noto haven't always agreed on product division. this could be a way for him to pursue other paths that haven't been possible. tweet.there was a one of my favorite commentaries is that twitter now house three interns and a part-time ceo. but talk about the logistics. twitter now has three interns and a part-time ceo. we justlk about the exterior -- let's talk about the

logistics. >> do they keep the current organizational structure that was reporting to noto? the businessrge of structure. do they want to change that? so, do they want to promote someone to fill that role, or do they want to hire someone from outside? as of now, they will disperse that and have the top ring fill in the position that he is now leaving. you are right, we have a dual ceo at this company, and without a coo, a present the problem. emily: by all accounts, this seems to be a win for sofi. what is the word you are getting? >> it is a boom to their business. as a darlingmpany of fintech.

2017 wasn't a great year. they lost their cfo, their chief revenue officer. now they have clarity, bringing leadership in, and a big-name. it should be good to get the company back on track. they are answering questions a lot of people at the company have into what the direction of the firm's. years ago, cagney said ipo is on the horizon for 2016 was the original timeline. we are already in 2018. can only imagine that the culture there has been somewhat beaten down by all of the sexual harassment allegations, we didn't just surface with mike cagney, but other executives. how would you describe the culture of the company now, the sentiment among employees? -- onet now, people are to wait and see what anthony brings in. they are glad to have an adult in the room, to have a leader,

someone to look to. to say,there was no one all right, this is our strategy, this is where we are going. everyone was in wait-and-see mode. emily: twitter is about to report earnings. the company has been improving when you look at the numbers. what are we expecting? is anthony noto leaving on a high note? in place a lot of the fundamentals. he planted the seeds, and now they are ready to bloom. it is an opportune time for him to leave. expectations are good. analysts don't think him leaving is going to change the company. twitter has stopped shrinkage and are starting to grow. the growth rate as the them looking positive in terms of the users coming to the platform, time they are spending on the platform, and a lot of that

should be credited to jack as well. he is the one spearheading a lot of the user interface and product updates, like the algorithmic timeline and notification changes, explorer does. there has been an effort between them. lp operates arg global news network on twitter called tick-tock. blow to thest renewable energy industry yet, president trump decided on monday to slap tariffs on imported solar panels. the u.s. will impose duties as much as 30% on solar equipment made abroad. if princeton handicap a $20 billion industry that relies on parts made abroad for 80% of its supply. the industry has predicted tens of thousands of job losses in a sector that employed 200 -- that implied 200 60,000. coming up, uber's ceo speaks to

bloomberg tv from davos. you like bloomberg news, check us out on the radio. this is bloomberg. ♪ ♪

has openedle's ceo

to paying more in taxes. he explained the more important question was where google should pay. the company's current minded global tax rate is 20%. u.s.'s have accused large technology companies like a google of paying too little tax having the u.s., despite a large portion of the revenue from other countries. one of the biggest startups on the planet is turning a corner when it comes to profitability. uber has been losing billions of dollars a year. john mickelthwait spoke to uber's ceo at the world economic forum. the ridesharing business can be profitable within three years. we will continue to make very aggressive investments in building autonomy, because that

is a terrific opportunity for building new technologies such near-termevate, where profitability is not a goal, but long-term growth is. we will look at the balance of near-term profitability, but as a company, we will always be a company that take the -- takes big risks. do think that drive fights a little bit against of this culture change? you talk about making money, but not at all costs. dara: i don't think that profitability and culture all culture are the issue. the company come in the past, was willing to make trade-offs as it related to how it did business. i think it was guilty of hubris, of the game they knew better than others, and i think that what we know now clearly is that

breakneck growth can hide cultural issues, that there are no excuses for not doing the right thing, and that you do have to make trade-offs. as a management team, we are talking about those trade-offs that you have to make. patient,o be more because it sometimes takes longer. in the end, you build a more lasting as this. maybe what we want for was necessary, but we are here. we can control our actions from this moment onwards, and i think everyone at uber from this moment onwards wants to build a great company, notably in terms of growth but in terms of the kind of company anyone would want to work at. john: can i ask you one thing, the hangover from last year, all problems.tory

if you take all the cases against you, six criminal probes going on. 7 lawyers are --dara: lawyers are lining up. john: which ones do you fear the most? think all of i them are serious issues, and my response is that we are going to be transparent and we are going to take responsibility for our actions in the past. that there are certain circumstances where there was smoke but no fire. as a company, we have to defend ourselves and work within the appropriate frameworks. my goal is to get beyond this stuff. pricing policies, surely they go right to the heart of what uber is, or am i wrong? dara: i think they do, but i to be smartis a way and transparent at the same time, and that is where we got to take the company. emily: we continued with the ceo

from davos. future of hishe interest he liked autonomous cars and how technology will help bring changes. dara: we think there are three keys to transport and for the industry is going. upon, electric, and shared. -- the tana missed, electric, and shared. i think all three are necessary to get to the next level. -- of the the cities space in any cities is for parking these cars. you need a taunus, electric, and shared. it will take some time. true autonomy for every single use case is some ways a bank that we bring to bear is our developing autonomy, and we will have autonomous on -- have autonomous cars on the road in

the next 18 months, not as a test case, but as a real case out there. over time, we will bring a taunus -- a thomas transportation --autonomous institution and feather it in with other transportation. in means, if you are for example in phoenix, and you make a request to go from a to b, which is what you do with uber, there will be 95% of cases where we might not have everything mapped perm thickly or it may not be the right weather or there may be an accident on the road or you may not have two or three ways of getting from a to b mueller you may think that is not an autonomous use case. for 5% of cases, everything is going to fall in place, and we car.send an autonomous

the user will be able to pick. we will service that. that 5% of going to 10% and 15% and20%, as our computers our algorithms learn more and more about what it takes to drive in a city in a real-life situation. every -- every minute of every day, that driver, the computer is going to get better and no phoenix better and better, and in five years, we will have the perfect driver in phoenix. we will have to retrain that driver in every single city. we will have to build that 3-d map of the cities, and it will time, you but over essentially have a driver who becomes the perfect driver. it will take 10 to 15 years, but that is the feathering in. john: will a child born today ever need to learn to drive?

dara: a child born today? no. ceoy: that was uber's speaking to bloomberg in davos. it is an all or nothing pay package for the founder of tesla. tesla has granted elon musk the largest of its kind to $.6 billion stock award. decade, vested over a stock 8 -- stock options could make him billions of dollars. he must agree not to get salary or bonus. up, amazon added again, further disrupting the brick-and-mortar industry by introducing cashierless convenience stores. we will take a closer look at the impact to the bottom line. this is bloomberg. ♪ ♪

emily: amazon announced a two dollars a month increase for prime monthly members. the spike in price will generate an extra $300 million annually for amazon. cowen estimated that $300 million given the analysis of monthly customers. theon is making a play for struggling 500 $50 billion u.s. convenience store industry, unveiling amazon go to the public in downtown seattle this week. the sure lets shoppers grab what they want and leave without paying a cashier. we went live to seattle from the

store. >> we have been here since lunchtime, and at lunchtime the line was around the corner. there is a lot of excitement. it has died down as the afternoon has worn on. this is a store where you walk in, have an app on your smart it,e, getty qr code, scan that open the glass turnstile, then you walk in. inside, you pick from sandwiches, salads, drinks, a lot of traditional convenience store staples, and everything is billed automatically. there is no cashier. you just walk out. they are trying to make the check out counter logjam i think of history. >> how well staffed is the store? ,re there security guards clerks to help? theft is not an issue. today, there is a lot of amazon people on board. have part of the sidewalk court

and off to accommodate the line. they are rolling out the carpet. they are limited by the fire code. they say the technology can handle big crowds, but you can only get 100 people in there at a time, and that includes staff. inside the store, they have a number of employees, mostly .reparing sandwiches and salads have people constantly stocking and replenishing the shelves, as low as they have a small beer and wine section, and they have to have a person their monitoring to make sure anyone is of legal age. >> this is the first door. how quickly do we expect amazon to roll these out? >> you broke up a little bit on me. >> how quickly do you expect amazon to roll out more stores? broadcastven't anything. they said they are going to

focus on the store for now, and they have been beta testing for more than a year, having it employee only. they have hired and listed job openings for people specifically for amazon go. to bring thisthem to other markets, as long as they are happy with what they are seeing here, similar to what they did with their bookstores. how much do you think these amazon go stores could disrupt the brick-and-mortar convenience store industry? store convenience industry is fragmented. you mentioned it earlier. more than half of it as gasoline sales. than $200 billion in food and moving towards fresh food, and so they are looking for a market for the on the go person looking for a quick bite to eat.

it is a mini whole foods inside. there is largely for amazon with their brick-and-mortar strategy, their e-commerce operation is distanced from its customers. they have warehouses around the country, but generally you don't see them. you don't even know how something gets to your door. get closerrying to to customers, and there is nothing closer than convenience stores. they are everywhere. emily: a emmanuel macron has been calling prepare is be an innovation hub. facebook and google are working to fulfill that. google says it will create an ai lab dedicated to fundamental research on the topic. facebook says it will double its lab there to 100 by 2022. that includes $12 million in hardware spending. intel reported earnings this week since the chip flaws were

revealed. ♪ cef 2018, the biggest party in technology, and among the keynotes, until the ceo. ceo.tel's through a legion of drones, you just witnessed the world's first 100 drone indoor flight show without gps. why not? the real tony romo. the flaws in intel chip design. hackers to still better from cpus. intel makes 90% of the world's computer processors and make 9%

of the server chips. puts every pc, smartphone, and server in the world at risk. >> as of now, we have not received any information that these exploits have been used to obtain customer data. hackers haveut proven themselves to be persistent. the patch to the flaws is flawed itself. it can slow chips 30%. will the security threat britain sales -- security threat threaten sales? worse, --tters the last time intel had to make 1994 fix like this was a

pentium recall. that kind of problem might not fly with investors. that was cory johnson. coming up next, we will hear from the former apple and alphabet executive as the voices concerns over tech addiction in children. but one of the original iphone creators has to say, next. bloomberges of technology are live streaming on twitter. check us out. this is bloomberg. ♪ ♪

emily: welcome back to the "best of bloomberg technology." i am emily chang. the topic of tech addiction is grabbing the attention of parents, teachers, and tech giants. this includes tony fadell. concerns continue to circle the tech industry about being addicted to your iphone, smartphone phone, or being absorbed by social media. howat down with tony fadell he is handling this issue is one of the creators of the original iphone. as a wholek at it set of unintended consequences that allowed kids and adults to beyond the mob a time. them all the time.

we have tech free sundays where the family is off of electronics, including the parents. , not other things together that tech is bad, but there are times we should just be face-to-face and talking about things and doing things together without screens coming between us. do that. we have screen time limits. it is difficult, because we don't have many controls to do that. we look at our behaviors with screens at night. these kinds of things to understand that moderating use of these devices. emily: what you think the impact is on adults and on children? -- i amlook at this as not a researcher. i am not a doctor. i am not looking at it as an addiction. i have seen stories and i have

had friends who have kids with addiction is his -- addiction issues as well as adults. i look at this as we need to have tools and data information to allow us to understand how we consume digital media. if we look at this and draw the with something like food, think about food. today, we have skills so we can measure our wait. we have nutritional information on the side of boxes and different foods is so we know what is in there. us toe programs to allow control our eating habits. we have definitions for words like, what is approaching? -- what is a protein? so what is a protein in a digital world? is a sugar a social mobile app? is something like water the camera app?

we need to build nomenclatures around these kinds of habits and start to talk about them instead of saying it is addiction or not. languageo get finer and start to understand that the iphone is just a refrigerator. it isn't the addiction. it delivers food. we can then choose to pick what we want, what is a protein, what is a fat from that refrigerator, and hopefully consume it in the right portions. we have a scale to measure ourselves for seeing how much we have consumed each day or each week. emily: the business models of companies are predicated on how long we use their products. do you think facebook should be telling us how long we have been using facebook? first, i think not all of the business models are based on how much screen time you have. some are and some aren't. you have to look at the individual business and figure out what their key metrics are.

i know, back in the day when i is that -- when i was at apple, that was not revenue driver. for apple, it is about selling more devices. if you think about it, i think users will buy more devices if they have the information and control over those devices. a lot of peers consider, should , buy them a cell phone or not a tablet or not? they would buy multiple devices if they knew they could control them. they are wary, because their likes, i have to collect all of these devices and set controls on all of them. limiting the business to central -- the business potential for a device manufacturer like apple. emily: what about facebook where the business literally gives -- where the business literally is the more we can show you, the more money we can make? tony: my kids are under 11 years

old. they don't have any kind of social mobile accounts. our family doesn't use them. at the end of the day, you need to look at the contents of that social mobile app. what is a protein? there is a great protein inside facebook where you can connect with family and friends and share stories. is there a nicotine or sugar component where stories and adds distract you? we to look at each app and think about its benefits and distractions. i get all kinds of different emails to get me to reengage with certain apps or notifications. those are interruptions. those are dopamine hits to get you to use that app more. this isn't something apple did. this is something social mobile apps what you to engage with. it also happens with youtube, apph games with in

purchases. we have to look at each app and understand what is good about it, what is not good about it, where is their interruptions, and people to assess which apps we should put on our phones or tablets, as well as to our kids. emily: have you ever had any personal moments of guilt, like a frankenstein type moment, where you say to yourself, oh my goodness, what have we built? you: at the end of the day, look around and you go, my god, the massive amount of the population, over half the world in has a smart phone you are i think that is great. there are unintended consequences and we need to work on it. when you look at the app

store's, there are certain things inside of an app store, especially the apple app store, and certain things their arch. there aren't gambling applications. there are kinds of applications were you can get addicted to losing your money, but we have to think about that in terms of the social mobile applications or other ones that have different non-beneficial customer metrics for their revenue. always worry about how to improve the technology, and in this case, we have unintended consequences. these are easy problems for the platform of any fight apple and google to solve. this is not like self driving cars. this is easier to implement and cheaper. emily: give me some specifics. what you think apple and google should be doing? the first thing is they

already have all of the information across all the devices. ipad,n have an iphone, apple tv, mac laptop, and between all of those, they know how much you are using, how much we are emailing, texting, browsing. they can give us back a calendar of events just like they do on the apple watch for how many steps, how well we sleep, how our heart rate is doing. they can do the same thing and give us our digital information in metrics about our days in the life of the digital world. it'd be a combination of the calendar showing history of physical use as well as digital use. much we are using these devices and then moderate our behavior saying, that seems ike we are doing too much. in my case, i am not using my

french language app enough to learn french. i would love to be able to set goals and set controls on this to control howe i use these devices. a way to set my device so that when i am listening to music i'm not interrupted being buzzed or another notification. i want to enjoy my music without interruption, like i did in the old days with an ipod or when i am reading. have all these different notifications coming in, all these different or -- all these different interruptions. get this notification, i would like to say never get the certification ever again. when that happens, that happens across all platforms. i don't have to get disturbed and go to every single device to turn off these notifications. you could probably get tim cook on the phone in 10 minutes.

have you told the stem directly? -- have you told this to him record? this -- have you told to him directly? tony: i have told multiple people. i look forward to that conversation. emily: the future of cryptocurrency. this is bloomberg. ♪ emily: stripe is getting out of

the bitcoin business. the company says it will stop processing bitcoin transactions on april 23. bitcoin has become less useful, explaining transaction confirmation times and fees have risen for the cryptocurrency. isn'tgorman says bitcoin going away, but he does have some reservations about the frenzy over the cryptocurrency. bloomberg in davos. james: i think bitcoin is not

going away. it is not a fad. cap ofregate market then --globally is less reporter: they could buy you? james: we think we are an important institution, but we don't deserve the price that bitcoin is getting everyday. for filling a need at the moment, but it is not something fundamentally changing the global landscape. thing is another big automation. do you think in wealth management and investment banking you are relatively safe from that? which way do you see that going? james: to the core question of

automation and how they are related. i was asked recently about how much i focus on competitors, and i said, you are in the same industry, but it is not what we get up at night worrying about. i worry about artificial intelligence, automation, cyber risk, digital. all of these new technologies coming to the market at the same time are transforming the way business is getting done. we try him look at each of our businesses. complexh-priced, highly global transactions. it is hard to automate that. it is hard to advise the board. a look -- a laconic trading in equities has long been going on an increasingly in fixed income. with wealth management, the evolution of the digital space is not new.

they have been providing effectively digital transaction and advice for two and a half decades. to caused to continue firms like ours to provide human capability and best in class technical capability emily: -- technical keep ability. -- technical capability. emily: take a listen. thee have been working with industry and every partner to look at whether or not it is the right thing for us to do. reporter: is it? >> we are still evaluating that. we have been talking with the industry to say, is this something? we already have two bitcoin futures out there. would there be demand? if we are going to create a product, we were to know, are they going to be using? certify as alf futures exchange for this.

we would use our license to do that, but we have to make sure from a risk management perspective we are prepared. those are the things we are working on. reporter: any prillaman or conclusions? -- any preliminary conclusions? does it seem appealing? digitalur view is that currencies and cryptocurrencies will have a role in the global economy. will they mature to a state that is of use for the transfer of goods? then -- intime can the meantime, there is a lot of demand out there. it is just a matter of, can we create a construct that is unique enough? reporter: would you think of building a futures contract for something other than bitcoin? we have two exchange notes that are listed in our nordic markets that have been done through another market.

we would look more holistically at cryptocurrencies and not just at one. emily: that was adena friedman and davos. gates says president trump's america first agenda could damage the u.s.'s long-term influence in africa. he spoke with our bloomberg editor-in-chief and devils. they talked about his foundation's efforts in africa and their fight against malaria. there is a tendency, unless you stay committed, one is you get drug resistance, either the insecticide, and we have drug resistance now. we are working in the private sector to get innovation there. the drugs themselves the we use these combinations in southeast asia. put intoenergy people these programs. one of the great ironies is that , as you get malaria cases down,

then the government will tend to move on. you will see a rebound. the last three years, because a lot of it has been wearing out. few years we have had where theyof cases have gone up. the wet season is when mosquitoes proliferate in an exponential way. the community needs to get its act together. the central america thing is a key part of that. john: the chinese are really looking at doing pro bono work as opposed to doing things with a commercial advantage. becomingthey are richer, seeing a stronger role in the world, china has had a conference with african leaders on regular basis that i will

attend later this year. compared to the u.s. in history -- is verychinese small. .frican countries appreciate under president bush, the u.s. made big increases. they totally appreciate that we have done that. to keep doingd it. it's a small part of the budget. i don't think going to them and saying we need to increase aid to malaria deaths because we are short of something is the best idea. john: there is social good but this question of soft powder -- soft power. worry about,ng you especially with the current administration? bill: the u.s. uniquely has the ratio emphasizing hard power. i would hate to see it shift even further. as part of these budget discussions, do you grow the

state department does that same budget --theefense state department at the same time as the defense budget? you don't want to give up your soft power tools. it is all being debated. john: isn't this arguably the willingly giving way that power by not investing in soft power? america is actually pulling back from helping the rest of the world. say it isuldn't unique. the u.s. has often had this debate. our relationship with the united nations has had its ups and downs under different administrations. keeping some pressure on the you is not ae -- on the un crazy thing. it is all to do with specifics. in the case of health, lives are

being saved through very small amounts of money, and you can aim to both with the country up so it is self-sufficient. it is not a commitment you are stuck with forever. atmosphere, it makes the cut. john: you think george w. bush never got the credit he deserves for tried to save lives and never got? -- for trying to save lives in africa? bill: no, he didn't. i do think, in some circles, he does get credit for those things, but not as much as he deserves. president trump has described these countries and i'm not terribly nice phrase. -- countries in a not terribly nice phrase.

shouldthink you concentrate on this part of the world? bill: i think you should. .hat is what i have done i understand that money can be very well spent. i am in there saying, come on, let's keep up the good work. gates andt was bill devils. .- in davos taiwan is trying to make sure it's scooters are eco-friendly. this is bloomberg. ♪ ♪

emily: tencent is investing in a french retailer to help to challenge alibaba. iny have signed for a stake a china unit. the investment could revive the

struggling french retailer's business in china. give them 800 plus stores, second only to an alibaba backed company. taiwanese -- a time when electric scooter -- a taiwanese electric scooter maker wants to make sure it's scooters don't add smog to the air. how this tech upstart is disrupting a gas entrenched market. reporter: locals call this the scooter waterfall, a daily torrent in taipei of taiwan's nearly 14 million motorized two wheelers, noisy and noxious, albeit necessary mode of transport. taiwan is banning fossil fuel engines in such view calls by -- in suchh vehicles

vehicles. >> for about 10 years, the taiwan government has been pushing for an electric scooter to turn this very dirty motive cusp tatian to cleaner transportation. wasughout 10 years, it unsuccessful to we came along. go zero: they say i can to 50 kilometers an hour in just foreign to a half seconds. let's give it a go. perspeed is 100 kilometers hour with a hundred and 10, and her range. when the body -- when the batteries go bad, just swap an amount -- just swap them out. pop it in, and then

reevaluate if anything is wrong with the vehicle. talk to the server, program the new battery. seconds, not minutes, not hours. reporter: another green tech company has been profitable for the past four years. it turns taiwan's abundance of manufacturing waste to 1200 recycled materials, whether window shades made of discarded circuit boards or tiles from nike shoes and apparel. >> what drives us is anger, actually. with this new intelligence, artificial intelligence, software we can play with, i feel like there is not as many people doing what we can do for the environment. reporter: both companies simply want to give toxicity -- get toxicity out of the city. emily: stephen engle from taipei. that does it for this edition of the "best of bloomberg technology."

tune in each day 5:00 p.m. in new york, and remember all asset -- and remember all episodes are live streaming on twitter. check us out. that is all for now. this is bloomberg. ♪

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♪ nejra: the mifid squeeze, moody says europe's new regulations are damaging to asset managers. how credit negative is mifid ii? a deal favorable for the city of london. plus, trump one year on, the differences the president has made towards differences in the american financial sector and what is next. welcome to "bloomberg markets: rules and returns". i am nejra cehic in london. "rules and returns", is the show