tv Bloomberg Technology Bloomberg March 6, 2018 5:00pm-6:00pm EST
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with sweden's prime minister. >> we are behind with every single country, and trade wars are not bad, do you understand what i mean by that? million, the trade war hurts them, not us. million, the trade war hurts them, not us. alisa: robert ashley is wary of dope north korean claim that it is ready to renegotiate its north korean program. north korea will agree to stop testing weapons if the u.s. holds talks about denuclearization. kellyannee aide conway is accused of violating law that prevents government officials from using their position to influence political campaign. the office of special counsel says conway violated the hatch act last year and she advocated
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for roy moore in the alabama senate race. global news, 24 hours a day, powered by more than 2,700 journalists and analysts in more than 120 countries. i am alisa parenti. this is bloomberg. and "bloomberg technology" with emily chang is next. ♪ emily: this is "bloomberg technology". the amazon agenda and anddeep dive and e-commerce the industries and its crosshairs. exey big spender. the cash for it in the world's most valuable startup. and box shares take a beating.
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but first to our lead. the stock of amazon to its at newing e-commerce foray into groceries and hardware, and in january amazon announced a health care venture j.p. morgan chase and berkshire hathaway, and in february they acquired ring, and now in march amazon is looking to provide customers with checking accounts and has iveries to prime customers in more u.s. cities. how do these announcements fit into the complex amazon operation? for more i bring in bloomberg -- how doeswriter this fit altogether under the umbrella of amazon operations? >> everything you mentioned -- it is a company that is a culture in the way it these centralizes and empowers teams
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to innovate and acquired to innovate. yet tens of thousands of people around the world looking for growth and expansion opportunities. emily: not every business day have started has exceeded, right? brad: absolutely, they have spent 10 years of trying to get groceries to work, amazon fresh to work as well as they hope and resulted and last year's blockbuster acquisition of whole foods. emily: talk about the delivery business and what that means. brad: there's so much they can do, they can bring in amazon paid to check out, and they want to do a loyalty club for prime members and redesign the grocery store and make it friendlier for customers. is delivering from supermarkets to the whole foods supply chain to people's homes, and that is what we are starting to see in cities including san francisco. my colleague wrote a story today about how poor instacart happy relationship with whole foods
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and it is getting shunned to the side as amazon workers come in and deliver groceries to people's homes. it was predicted that amazon might buy target next. take a listen to what he had to say in january. the future of retail is going to be a combination and i would bet investors would view this as -- the takeaway is amazon is taking over the world, and that is a good thing. emily: is amazon taking over the world a good thing? for amazon investors, obviously. the company performance has been stellar and the stock prices have multiplied by a factor of four -- but no, the bigger it gets, the more industries it enters, the more questions of the market power arise.
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it could be great for customer certainly that amazon brings long-term orientation and willingness to lose money to pass on the benefits over to the customers in the form of lower prices. great for customers but destabilizing other industries and raising questions about market consolidation. it hasn't been all great news for amazon, amazon studio is struggling to get back on its high-profile a big departure today, amazon prime's greg really leaving for airbnb. brad: greg was an old timer and the first guy -- people don't remember, super saver shipping where for the first time if people wanted to wait a few extra days they can get shipping for free. itcost amazon money but entered the loyalty of customers and that was the beginning of the pathway for prime. they were basically using their efficiencies in the supply chain bass on benefits the customers. member of the team and
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someone was going to spend more time in the whole foods division -- but that bench is extremely deep at the bigger story is how little turnover they have in the upper ranks. to be brought them over the head of the home division, and this is an experienced executive. the cost ofing of delivery, these things they offer customers don't come cheap, and to our deliveries is expensive on the amazon site. is that going to hurt them when they start to raise prices that are comparable to what they actually are? aad: you can look at it as cost curve, and will cost many when the distribution of customers ordering rum prime now is small. that jefferm thing bezos talks about, they are willing to do that and as they get the concentration higher, the cost for delivery comes down and they are uniquely situated to do that and suffer the early
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economics for a payoff. it might look back now when you have one trick making one delivery in one neighborhood, but fast-forward to five years and suddenly that truck is full of stuff. emily: when you think of amazon buying ring for a billion dollars and the efforts of amazon t to have a concierge service to have someone come inside your door and drop off packages. i wrote about this in our text newsletter on monday. in the short-term, amazon is up against google and apple on the boy's assistant home i one automation world. is going toity that be opening your door, dimming your lights, and amazon works with third party appliance makers -- and the more they bring in houston better experience it is. over the longer term, not only
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allowing the delivery guy to come into your door, but also monitored your door from work and letting your housekeeper in. letting the plumber in and not having to wait for the cable guy, it is a true lock-in where they control your doorway, and it is powerful. emily: maybe even scary. brad stone, thank you for stopping by. and will be speaking with amazon vice president of prime now and amazon fresh, and that conversation is this thursday. another twist in the broadcom versus qualcomm zika, and the attempt to buy qualcomm could pose a national security risk and agencies of the sale could hurt competitiveness which would threaten security. the government panel that oversees foreign investment delayed a shareholder vote, going the way for a broadcom takeover.
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fory: if you see a number truck on the highways of arizona, will notice the driver will not have his or her hands on the steering will, and self driving trucks are on the run since 2017 and the trucks have a human driver in the cap but can only pick up card was at stations and can only go to the arizona border because they cannot navigate on city streets. no word if the companies are
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accompanied by a self driving trans am, and uber might be the most viable starter, but has a problem with cash burn. since its founding nine years ago, they have plowed through $10.7 billion according to a person familiar with the matter, where is that money going? we took a look girl are today on bloomberg television. >> it started become more open and shared -- and fourth-quarter results, it is not a public company. you know exactly where all the money is going, but autonomous vehicles and driver subsidies, legal fights, software engineers and insurance costs are all of the major expenses that uber has faced. >> bloomberg says it doesn't matter there is plenty of venture capital where that came from. >> does it matter to them
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running out of money, the last we saw was $6 billion of cash in hand, they have the money but it is more amazing the amount to have been able to raise -- 70.3 billion, and the amount they have been able to spend, about 10 point 7 billion, and there's the question of whether the losses will ever get under control. they lost 4.5 billion and their loss in 2017. >> how does it stack up with other companies? when look at companies they had similar valuation around uber at $54 billion look atn, and if you google, facebook, delta, even amazon -- they were all making money when they had similar valuations. some of them had larger revenues, so uber seems not to have bought bigger revenues with all the money it has spent. >> what are the counter
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arguments that uber makes? >> the key is growth. this is a company that year over q4 over to fort was around 60%. there's a lot of growth in the business at a big scale and i think uber believes it is transforming transportation. 1%and there's opportunity for growth if you believe that the ridesharing industry is going to transform how we get around. >> i also thought they were doing better with the new ceo at the helm. some time but it takes a while to turn a ship as big as uber -- but i think one thing that is interesting when he spoke at the goldman sachs conference is that he struck a
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growth focused tone. and theybout uber eats are working on uber freight. it is still a company focused on -- we are a world changing business and not one focused or talking about generating cash flows anytime soon. >> i love how you talk about a peter pan syndrome in your story. stillenture capital support if they go out of the peter pan stage? >> it is beyond venture capital, saudi arabia -- they have a $3.5 billion into uber and are a softbank'sr and vision fund, which made a huge share purchase at the beginning of the year. there is so much momentum and support around the company, it seems uber wanted to cap other global sovereign
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wealth funds. ande is that opportunity they have softbank on their team now. it is a matter of macro investing conditions, but for the time being, there is plenty of interest to invest in uber. emily: that was bloomberg tax eric newcomer talking to shery ahn and vonnie quinn. coming up, bitcoin mining has heat a lot of heat for the it generates and will talk to the men behind one company that went public today. this is bloomberg. ♪
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past facebook has complained that the tech industry copping what works is sometimes necessary. credit publicly snapchat. was positively a banner day for a cryptocurrency mining company as it make its debut on the exchange, but instead the company act by billionaire investor slumped during its first day of listing. caroline hyde spoke with sean clark to get his thoughts on the future of cryptocurrency on its debut. it was formed with the intention of providing victory with capital markets, and the proxy in north america -- hot eight is listed today in the toronto stock exchange venture. an on rap for retail investors to gain access to cryptocurrency minds run by bit which will give an
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exposure to underlying cryptocurrency without having to purchase cryptocurrency itself. what is in it for bit fury and by that extent, hot 8. does it allow you to raise more money in the future? the listing doesn't raise money in and of itself. sean: what it does this that it grants access to capital in a much more efficient way. that a private company, hot eight is a reporting issue and publicly traded stock. we can pre-finance our electricity footprints across north america. that also gives institution access to the future potential growth, which we are investing in through the data central rollout. >> who do think will be the main investor base interested in hut
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8. ? will it be retail investors? sean: we have raised over $200 million to private placements. but share has the largest minority stake, and most is on by 46 financial institutions in canada and the united states. with the listing we expect retail investors will gain exposure and we are confident that the stock will perform based on sound fundamentals. at the and of the day, what is unique about is is the it fury.ship with nicb andave zero operating risk in addition to that we will gain capital in an efficient way through capital markets which will allow us to establish large electricity footprints with
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large data centers. electricityabout footprints, and there is a concern about bitcoin acid mining and that climate change needed -- there is a push particularly by the community to of work concept that mining has. is that business model a risk for you? it is not, and there is reasons for that. it ensures immutability. fivein will be one of the to seven major protocols that currency assethe class, and by consuming electricity, the bitcoin blockchain will contain immutability.
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is efficient for other cryptocurrencies, however, at the end of the day, the bitcoin launching will always be , in proof of work consuming electricity because that is the security it represents. the second point i want to say in terms of height electricity consumption of bitcoin -- there is a little bit of cash limit put in perspective. if you look at gold and mining resources, the traditional banking financial rails -- the amount of electricity those industries consume from soup to nuts is in magnitude more than what the bitcoin blockchain is consuming. furthermore, you can actually guarantee that sustainable energy as it becomes a lower cost will drive adoption and more innovation will come in renewable energy, sadly because it is more efficient.
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at the end of the day, the digital currency causes going to help the economy and make energy consumption and production which more proficient. beingtalked about bitcoin key in the next five to seven years, is it scaling currently to be able to ensure its future path in seven years? we heard from mark carney, the nk -- how do you know "is your to stay? be one ofoin will many major particles but it is the proof of work and the security protocol aspect of bitcoin and its immutability that will guarantee its long-term success. bitcoin itself is working on off chain transactions like lightning network, which will allow the bitcoin blockchain to be used in transactions will be able to process one million econd,ctions per s
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whereas the zen master card have 50,000 transactions per second, and is how the bitcoin blockchain will remain rather looked because of the security-based has -- but the protocol is also important and it is the smart contract protocol, it is the glue and logic that operates all the code. there's going to be three to five other protocols that maybe haven't yet been created. but we are still in a nascent stage of this asset class, it is a $500 billion asset class and rbc projected to be a $10 trillion asset class. we are bullish and absolutely agree, and when you buy shares of hut 8 -- we are laying industrial sized data centers that will mine all major particles. when you purchase shares, you royalty, and we keep that underlie cryptocurrencies, and investors
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like that royalty profile for a stock. that is something that would interest them when they purchase shares. emily: that was sean clark speaking with caroline hyde. coming up, the battle of the falcon continues to heat up and what company looking to stave off giants like microsoft and amazon. that is next. this is bloomberg. ♪ mom, dad, can we talk?
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that's a good one. seems a bit long, but okay... set a memorable wifi password with xfinity my account. one more way comcast is working to fit into your life, not the other way around. retail. under pressure like never before. and it's connected technology that's moving companies forward fast. e-commerce. real time inventory. virtual changing rooms. that's why retailers rely on comcast business to deliver consistent network speed across multiple locations. every corporate office, warehouse and store near or far covered. leaving every competitor, threat and challenge outmaneuvered. comcast business outmaneuver. alisa: you are watching bloomberg technology and here is a check of first world news. rex tillerson says china's approach to development in africa encourages dependency that undermines its sovereignty.
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spoke before embarking on a five nation tour across the continent. >> we have an opportunity to be part of africa's journey to a prosperous future for its people. each of these priorities, trade investment, good governance, respect for human rights, combating terrorism and instability, had the same guiding principle in mind. alisa: the senate top republican has added his voice to a court of concerns over president trump's plan to impose new tariffs. kentucky senator mitch mcconnell get his first comments since the white house announcement. >> concern republican senators that this could be a larger trade war. many of our members are discussing what administration -- just how broad and sweeping
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this might be. alisa: a federal judge says the trump administration decision to was awful and the ruling increases chances that issue will wind up in supreme court. we have breaking news to share, the new york times is reporting that gary cohn will resign as trump's top economic advisor. the new york times is reporting that gary cohn plans to step down. we'll have more on this throughout the hour. global news, 24 hours a day, powered by more than 2,700 journalists and analysts in more than 120 countries. i am alisa parenti. this is bloomberg. it is after 5:30 p.m. in washington, and we are joined by davidg kong i gave it in d ingles. >> as you mentioned, reported that gary cohn is going to resign as the trump top economic
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adviser, have a look at the dollar-yen, we are down on the back of that news, and when you look at major currencies, we expect a little bit more movement in about an hour's time when tokyo gets underway. we see a fairly noticeable move with the dollar-yen. another thing to mention with the equity space, we are looking , especially in korea where you look at futures bring -- being up. hongdavid ingles from kong. more from "bloomberg technology" next. ♪ emily: this is "bloomberg technology". the world of cloud content management got big news when ox announced it will file
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for an ideal, and one company that began is rival company box. shares went down and then pick back up in the last couple of days, and for recent results, i want to welcome the box ceo and cofounder. the last couple of days have been better, but there's concern about competition and concern about dropbox decelerating growth. what you have to say about that? >> i will clarify as much as possible. q4 by all accounts was strong. we did 136.7 million in revenue and analyst numbers were exactly that number, and that is the range we got into. with over 13 million in cash flow, so a strong quarter overall and it boxes what box looks like, one of the largest
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customers in the market, major banks and government agencies -- we did 70 deals of over $100,000, and what ended up happening is that it to a decelerate rate of 2019, and that was lower than analysts expectations, hence the pressure on the stock. the reason for this is we are transitioning from a single part company to a multiproduct company, and as we do that come at the way we are selling is to bigger customers and bigger deals i want to make sure we set ourselves up for a good foundation for the year that would have leverage for excluded growth you do for later this year or especially next year. we are on a path for over a billion in revenue but we want to be conservative and how we are guiding. emily: now that you have seen the numbers and they have filed to go public, are you concerned
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about the competition? aaron: i don't think the numbers change the competitiveness of the business. know had a general high-level how they perform come and dropbox intel's two types of companies, consumer revenue business which is 60 or 70% of revenue, like you and i using it for professional or personal use. and then a third of revenue is b2b. it is part of the business that looks like anything like box and tilts more towards small business or teams where is our revenue goes to midsized companies. the have been trying in past five or 10 years -- and they have and the tilting focus back to where they are good, on the consumer side. our company has evolved to look very different and the kind of salesforce and consultants and professional services you need, compliance, regulatory control if the building to the platform.
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they end up looking like a different company in scale, so the think our 1800 employees do everyday is different than what dropbox employees do. even though in name we are similar and let you store and share files, the general electric of the world and needing a different type of optionality, and that is what we largest focus on. emily: any advice? aaron: i generally don't give advice to competitors, but the more we can build as clear as possible our two businesses, the better. it will put a massive spotlight on this industry, and that is good for us. we are collectively going after a 40 to $50 billion market, and so we are focusing more on enterprises and their focusing on consumers and s&p's, and there is consumers for both of our businesses. emily: where are the futures out there of companies you might like to acquire? aaron: i am not going to announce any moves today.
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emily: why not? pr and the sec has problems of this, but some they will get their. re. we are focused on organic investment and rmb -- but the best way to think about our roadmap is, if you are a 50,000 person company or 100,000 person company and our is forming how your business works, if you are a bank or life-sciences company or a government, want to be a backbone of how you manage security and information, and we are products that bring more intelligence and ai to the box. solutions go into compliance to better serve customers, and they tend to be the folks areas of business right now. emily: bloomberg has confirmed that gary cohn is leaving his post at the white house. sachs, doesoldman
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is inspect related for a well-known, yet been in outspoken opponent of the trump administration. what you make of this in the context in general are we are in a year into this administration? are we better or worse off than we would be? aaron: we are so off the path where i could imagine. thinklly, we tend to linearly in this is nonlinear. there is more internal chaos that we have seen, and it is hard to know how i would compare where we are today versus where you could have been a year ago. it is not good to see that lack of stabilityof some of the people who he was surrounded by. emily: you think it will hurt business? aaron: i have no idea. businesses appreciated someone of gary cohn's background and political views involving the administration.
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very pro-trade and oriented towards a growth economy, and so i think this could put risk for policies. this is what matters a lot of these roles, who is advising the president and ultimately what are the policies we see and acted. having somebody like gary out of the system not advising trump -- i can't imagine is a positive thing. emily: great to have you here on the show. thank you so much. we'll talk much more about gary cohn's resignation. top economicmp's advisor gary cohn is stepping down and president trump says in a statement that gary has been my chief economic advisor and done a superb job of driving the agenda and reforms unleashing the market economy once again. talent and i thanked him for his dedicated service to the american people. we will continue to bring you
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emily: a developing story coming out of washington, and boomer is a party their economy is resigning as president trump's top economic advisor. : in addition to the white house says was a highlight has historic tax reform, and he wishes the administration had success in the future. marty schecter is here in san francisco joining me in the studio with more. we heard this was coming -- we heard four months it was coming, and now it has.
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what do you make of it? >> we reported a story this morning that donald trump was going to impose tariffs she is strongly against and he would resign. does this signal that donald trump is not going to change his mind? if you listen to donald trump today, you heard him say he went, and out was his chief economic advisor. if you are the chief economic advisor and person you are advising is not taking your advice, it is time to go. emily: gary cohn is a democrat and contributed to hillary clinton's campaign and to his unlikely for this job in the first place, but he took it. would you make of it coming to an end so quickly? i suppose in the context of other positions, maybe it was not so quick at all. >> when you're in the trump administration like four years in any other one. it was not a normal work environment in terms of
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presidential administrations. he did orchestrate the tax bill and said that was the reason he was there to try to get that through. issue if it isme truly tax reform, there are a lot of people critical of that tax package. you'll be interesting to see who replaces gary cohn in this issueadministration and what ie going to be -- or she, going to be part of the free trade wing or protectionist wing. emily: what do you suspect? suspect it will be more towards the protectionist wing. this has been a pro business ministration, and the issue of being protectionist has not been suspect it will be more towards the protectionist wing. tremendously fulfilled by the trump administration so far. the tariffs are the strongest efforts yes taken on that front, and is donald trump doubling down on his rhetoric? and thatry well be,
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will not be good for business as the markets have shown. emily: where do you think gary cohn's ends up after this? some thought he was going to be that heir apparent at goldman sachs. so what next? after his departure comes the end of powell was rehired by goldman sachs and elevated. the idea of him returning is probably a nonstarter. i do think -- there was disenchantment with him and the firm, will he return to wall street? he has some credentials he has to reestablish with wall street. don't forget, his tax package removed local and state productions in places like new york where investment bankers live, and california. he does philanthropic work, he is active in that area, remains to be seen.
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him and't have to work he is independently wealthy and can take his shots, but i do not think will wind up on wall street. emily: what about his reputation now that yes taken this job, that some people might not have approved of? marty: i think he has to overcome that. aactually think his legacy as financier will override concerns, but it is going to take time. he will probably take time to decide what you will do next, and whatever he does, it is something he wants to do our that forced to do. emily: let's talk about what this means for the trump administration. day after day it seems like somebody is leaving every day. marty: but it is not chaos. emily: it is not chaos. how does the administration recover? marty: that's not overstate things. gary cohn was an important force
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a free trade and market forces within the administration but ultimately donald trump runs his presidency and every thing goes to him. accomplished tax reform and do regulation, and it looks unlikely delegate infrastructure. it will be interesting to see, who gets this position after. if it is peter navarro, who seems to be ascending, i think that sends a very troubling message to some participants in the market feel that the progrowth globalization that has propelled the economy for so long will be held back. emily: it is not just about gary cohn, there are reports of other departures coming -- in the last few weeks we have seen more turnover than any administration in history. marty: that is true, and what is troubling is that inability -- this seeming disruptive atmosphere to attract and hire really quality people.
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having that they are trouble getting qualified people to join this white house because chaos thathe emanates from this white house. emily: since you are here in silicon valley, i spoke to aaron levy was vocal against donald trump and most of silicon valley was very open about not supporting this president. we have seen a couple of meetings between the president and silicon valley ceos and not a lot has come of them. do you have any indication of the state of the relationship between silicon valley and washington at this point or is it on cause? marty: it is basically on cause. donald trump knows where he stands in silicon valley and frankly doesn't care. one thing interesting that is coming up is the whole issue of intellectual property theft by china. donald's promise to do something about that will be viewed as a very positive development in silicon valley and a very strong
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step against something that is the devil to this industry for a long time. despite the fact that silicon valley doesn't support donald trump, he will actually take steps to protect some of their most valuable assets. emily: there is a report to president has canceled a carrot meeting that gary cohn has arranged. marty: the thursday meeting. emily: the process of undoing is underway. marty: we had donald trump was going to announce his tariffs during that meeting, which would be a huge snub to gary cohn. emily: marty shanker, i am glad you are in town. will continue to follow this story. coming up, as the annual national people's congress is under way in china come up will look at tech leaders and the chinese president -- the most powerful leader in china in decades. this is bloomberg. ♪
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emily: we continue covering breaking news of gary cohn of gary cohn officially resigning as president trump's top economic advisor. for more from tokyo, this is they'll beews noticed in china, and what is the impact of this, especially considering the issues surviving tariffs? it is big news here -- and it looks like gary cohn, wet opposed many of these threats that the administration was making about imposing tariffs on the aluminum and steel -- is now leaving the administration. it is a sign they are getting
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serious on these tariffs and trade restrictions and that is a concern for many will have supported more free trade. i think in particular, in the case of technology companies, they shine a light of protectionist measures are allegations of protectionist measures within technology industries. as we see with facebook, twitter, google, many american tech companies cannot operate within the chinese market because of restrictions there. at the same time, companies like tencent come at most trouble company in china, is able to market its services in the u.s.. that is an issue that ambassador to china has raised in the past and it may more attention because of these tensions. emily: is there any likelihood that would change in the future? now we know the chinese government has removed this two term for the chinese president, which makes president she can be
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in power for many more years. and the communist party in the last two years has not budged on their position of censorship and how that impacts some of the u.s. technology companies. if anything, they have gotten more strict. peter: it certainly doesn't look that way, for a long time there was the expectation china cannot maintain censorship and controls over the internet. but that has changed over the has two years, and xi imposed stricter controls and you will see new controls going into effect on internet companies that operate there that have to do about data sharing and government axis the data. they are moving in the opposite direction, and that means tha for facebook and other companies that hope to get into this in august market that their chances are long. the npc, what we are seeing is the technology leaders in china are coming out and voicing their support for xi and communist
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party and feel like the system in place works very well. and why not? alibaba are among the most routable companies in the world and they're using that profit haven to expand globally. emily: as you mentioned the npc, the national people's congress, the meetings happening this week and there will be various tech attendance. what are you watching for and what are the importance of these meetings? news is going to be that they are going to remove term limits for the president so that xi can stay longer in power than the two terms that has been accepted up to this point. for tech leadership it is important to show their faces. they have support for the
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administration, the head of tencent came out and said the importance of integrating southern china and hong kong in particular. many ceos talk about how they want to have shares trade with mainland china come the trade in the u.s. right now and they are signaling support for the communist party. and that helped signal more junior officials in the country that these guys are part of the political leadership. , thanks so much for that update. edition oft for this bloomberg technology and a reminder we are live streaming on twitter on weekdays at 5 p.m. in new york. that is all for now. this is bloomberg. ♪ mom, dad, can we talk?
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sure. what's up, son? i can't be your it guy anymore. what? you guys have xfinity. you can do this. what's a good wifi password, mom? you still have to visit us. i will. no. make that the password: "you_stillóhave_toóvisit_us." that's a good one. seems a bit long, but okay... set a memorable wifi password with xfinity my account. one more way comcast is working to fit into your life, not the other way around. retail. under pressure like never before. and it's connected technology that's moving companies forward fast. e-commerce. real time inventory. virtual changing rooms. that's why retailers rely on comcast business to deliver consistent network speed across multiple locations. every corporate office, warehouse and store
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near or far covered. leaving every competitor, threat and challenge outmaneuvered. comcast business outmaneuver. kong, liven hong from the asian headquarters. welcome to daybreak: asia. the top story, the war in the white house, president trump says he has no choice but to impose tariffs. sent, it is not want to trade war but is supportive of the president's plan. i'm betty, it is just after 6 p.m. on this tuesday evening. the news will send the shockwave through the market. easing, autos are falling after hours. the party is over, t
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