coming off many years of trade deficit. much higher corporate gdp issues. the fundamentals of the countries are much better than they used to be. .ou can see some selloff but nothing like the 2013 taper tantrum. thise end of the day, article world is still growing 6%..5%, haslinda: thank you so much for that. let's get into the next hour bloomberg markets: asia. david: a good point.

dollar strength is not so much a problem for e.m.'s. that's one of the conversations. sessionown for a sixth in the asia-pacific. the magnitude not as much as compared to back in february. sovereign bonds pushing up, following inflation reads here here is your emerging market index, and your peek at the start of the year. basis, we are in fact in a bear market. that's down 20% from the peak. we will talk later on with a lot of our guests.

you look at asia and the situation in the philippines, for example, indonesia, india, banks are seeing interest rates. at the market -- the market is pricing in the most in the next year. words, 59 basis points is what they're saying. just to give you an indication of what the market expectations are. there is a big event risk later on today as well, just we do get an escalation in this trade spat between the chinese and americans. haslinda: that's right.

still to come, we will talk exclusively to some really big guests. for now, let's get the first word news with deborah in hong kong. debra: south korea says kim meet.n and moon will the south national security adviser says the north has already taken preemptive steps to curtail the program. a strong 6.7 magnitude earthquake hit the island of , damaging roads and buildings and triggering

landslides. at least two people were killed and several more are unaccounted for. airports and railways are suspended for the foreseeable future. and personnel are helping with search and rescue. domestic services at one of japan's biggest -- busiest airports will not be back after -- was hit byt one of the most powerful storms. therefore it was further isolated by wind that drove a taker into the only bridge to the mainland. jack dorsey has been grilled by congress on what republicans call the shadow banning of conservative voices. he insists that it is dangerous to ask twitter to regulate opinions and be the arbiter of truth. president trump and other

conservatives complain that social media is biased against right-wing opinions. global news 24 hours a day, on air and on tictoc on twitter, powered by more than 2700 journalists and analysts in over 120 countries. this is bloomberg. ♪ david: lots of moving parts across the macro picture right now, the biggest one is the countdown is on to escalation get them president trump's new tariffs on thousands of chinese goods will kick in on thursday. that is after this public comment period concludes. the dollar is slightly on the weaker foot as we get underway. expectations are building with higher interest rates in e.m. developing economies. currencies are trading stronger

with the rupiah gaining the most in six weeks. let's get more this. we are joined. by our first guest. pleasure to have you on the program. i'm sure you read about it, the concept of e.m. contagion has forms.any overall sentiment, leakage into financial markets, more direct linkages between economies -- where do you think that concept applies validly right now and where do you think we are overthinking it? well pass thegot direct exposure part of the contagion. initially, we saw some of the european banks selling off a little bit of the euro when the turkey crisis started. you know, we are in the phase where markets are focusing on the fault lines, regardless of where the epicenter of the shock is. the fault lines are defined

between deficits, how much of -- how much external debt there is. lowereconomies with reserves and high inflation vulnerableemed very to capital outflows that would leave a large gap between deficits and see a rundown in fx reserves as they start to roll over debt. we are moving into that phase. thesilver lining is that selloff we have seen outside of turkey and argentina are still with the taper tantrum we saw and not much deeper like the afc. david: the likes of indonesia, we'veample -- this has been painful for that

currency. are we in a more acute phase? or have we moved to do something more serious for the country? at theink we are still very cute phase of looking at the broad-based fundamental risks and whether indonesia will be able to get dollar liquidity. i think a lot of it is still centering around what we would and a liquidity tightening squeeze, rather than a solvency crisis that would lead to a much bigger selloff in the currency. that is where we are with indonesia. coordinated responses from the finance ministry in securing dollar funding alongside actions that bank indonesia has already taken and looking at widening. however, the broader point about this at this juncture is the real danger is a contagion risks becoming [indiscernible]

that is really what we are watching for. haslinda: what does indonesia need to do? rate rises, will they work anymore? is it about finally getting at fdi to increase even more? >> that is a very good point. the fbi would form a very solid -- fdi would form a very solid basis for slowing down capital flows. rate hikes could help to some extent. the argentina case is a warning to us. to 60 percent, it is not a case of shutting the door. this is where the next rate

hike, if it is coordinated with any move from the mof to maybe get some supranational funding in dollar terms and also in terms of ensuring sufficient dollar liquidity, i think telling investors don't worry about dollar liquidity, we will not turn to tony -- turn your tony and. if markets fear -- turn the raconian. -- turn d david: this time last year, we were all talking about the fed normalizing its balance sheet. here we are. liquidity is tight. should we even be surprised we are in the situation? with the benefit of retrospect, we can say we should not be surprised at all. what surprised us last year is markets were still very benign when the fed balance sheet unwind started.

what is exacerbating this crisis right now is the fact that, yes, we have dollar liquidity tightening as the fed shakes his balance sheet. that is a big factor and continues to move. we also have a fed fiscal stimulus that will hike rates more than otherwise would, or at least faster. that is also compounding the problem. last of all, we have the headline risk. the fact that the rupiah was meansy down to industry that any further drop we saw, like this year, that does not do much for the psyche. that is compounding the stress. david: i want to bring up india's well. india atf a problem is the moment? especially when you look at the current account? >> that is an interesting

question and a good one. that is where we draw the comparisons. indonesia and the rupiah have got a lot of flack. but the rupee is also at all-time lows. the fiscal slippage ahead of elections applied both to indonesia and india. so there are many parallels. what is not working for you right now but could turn out to be a good thing is we don't see policymakers leading against appreciation of the currency as much. some have welcomed it. that could be a risky proposition right now. but in the longer term, it may play out in favor of the rupee regaining traction. we have to leave it there. thank you again for coming on the program.

coming up, the two koreas are set to hold another summit. in less than two weeks, they will look at -- we will look at what is at stake in that meeting in pyongyang. exclusiveplus, an interview with jessica cokahn. we are live at the bloomberg sooner than you think event in the line city -- lion city.

asked at tech ceo if google not showing up with a good idea. she said i don't know. should they have been there? >> in my book, this is about getting to the bottom of dealing with this problem and developing a solution. either google wants to be a part of that or they don't. for me, not showing up today means they don't want to be a part of that solution. they are absolutely part of this problem. any attempt to act otherwise is misguided. just because they're not a social media platform, this is about manipulation of the broader online information ecosystem. youtube is a hotbed for russian activity. they are absolutely part of this.

so they either want to be part of the solution or not. the message they sent today is they do not want to be. emily: lawmakers aren't going to stop asking questions. when do we see some of this stuff discussed today actually implemented into potential legislation? >> it does say mike a matter of time before this does become regulated. we heard lawmakers say that the wild west days of social media are over. none of these ideas have come close to fruition. lawmakers brought up opioids and drugs advertised on the

platform. gdpr a type of european implemented in the us. we have yet to see what type of regulation will come from all of this. of the lawmakers derided the chairman of the house energy committee saying that, despite the litany of hearings held over the past several monster mother's almost nothing to show for it from the side of the lawmakers. emily: will we see action or will this be a lot of talk? think we will eventually see action. i think there will be a lot of talk before that your i really , in particular, on the more partisan aspects of this issue, that it will be a lot of -- difficult to get

legislation to move. there are a number of pieces of legislation that have been introduced with bipartisan support. hearings,ave not seen markets and their committees are any kind of floor time in terms of actually moving forward. at this point, the chances of serious legislation before the midterms is unrealistic. to be on moving forward. but the kinds of proposals that senator warner forward in his white paper, some of them were rather provocative, but that is what he wanted it to be. our policy makers need to be having this conversation. europe is relating in the space. alone through its market is beginning to set the global rules. fore are not setting goals a smart revelatory framework that protects privacy, consistent with three market principles, however for innovation, other countries will be setting the rules for us.

that is not in our interest either. emily: thanks so much. we will continue to cover this throughout the show. president trump is speaking right now to the white house, talking about this op-ed in the you new york times written by an anonymous trump administration official, very critical of the president's leadership. he calls it gutless, says it is a disgrace. he wasn't in office, the new york times would probably fail. up, 23 and me has high hopes about a new partnership with a pharmaceutical giant. we hear from the ceo about what could be cured in just a moment. this is bloomberg. ♪

emily: genetic testing company, 23 and me, is hoping to leverage its partnership in a company to develop new cures for diseases including parkinson's. the ceo told me why it is a

dream close to her heart. >> we started with the data so we said discovery can fundamentally change if you have an incredible amount of data. the hypothesis we have is that if we have all of this information and we discover targets that started from a human, genetic component, that we will have a higher success rate with drug drug development. the reason why it is so hard to develop a drug is because 95% of everything fails. if we can have a better beginning, starting with human genetics, we believe we have a higher likelihood of succeeding. the partnership of gsk is to help us scale. we can find tons of ideas but each idea is like a child. imagine we have 13 children, it is a lot.

we have called in the big guns to help us really develop all of our programs to enable us to scale and have the potential to bring drugs to market watch faster for customers and the whole world. or something of particular? >> we're working on a whole range. i am bias because we have this genetic variants that runs in my family on parkinson's disease so i'm most excited that gsk has a program going for that. i'm really excited because we will be able to combine some of the power of what 23 and me has which is all of our engaged customers to drug development already undergoing, specifically for the parkinson's compound. emily: the fda also approved you

doing a test for the first cancer threat in the first direct consumers test. how groundbreaking is that? >> i think it is huge. if you want to have good health care at scale, it cannot always be a one-to-one position. you have to have ways to leverage the internet and leverage ways to scale information across the entire country. this allows people to get life-saving information in an affordable fashion without having to have a physician or genetic counselor. emily: you help families reunite families separated at the u.s. border. what is the status? >> we had a number of people in government contact us on whether we could be a part of this and we said part of our business is connecting families. there's a lot of issues that other people had around it. we are always trying to help people improve their lives so this was an opportunity for us to help people that it never

came to fruition. there were too many controversies around having us involved. emily: could law enforcement subpoena the data? >> it was a shame it did not happen. a lot of the children have been reunited. there are all kinds of things that we can do. you can opt people out of research or being part of the dna relative. it's anonymous. when you choose the spit, we do not cooperate with law enforcement and do not give your data to anyone else so we felt like we had a good. so we felt like we had a good handle on privacy. that said, we will always offer you help when there is an opportunity to help. emily: there's the question that once you hand of the data -- over the data, how do you prevent it from getting hacked or misused? had you think about these questions? >> i always say that people -- i love looking at your dna but your bank account is so much

more interesting. there is so much technology dedicated to protecting bank account information. there is tons of things we can learn insecurity, privacy -- in privacy and security. what we really believe is that we had to do everything as a company to make sure we are protecting data, but we want to give you a choice. if you want to share your data with me or your mother or a friend, we give you that choice if you decide to delete your data, you can. totally fine. what we want to do is allow you to have choice about how your data is being used. it is also part of the reason we always give you back, when there is a publication out of our our research, we wanted to know about it. we are about transparency. if you want to share it or want us to use it for research, take

a survey and we will tell you the results of what we learned. we are about empowering you to be in control and sharing the information back with you. emily: law enforcement used to data to track down the golden state killer operating since the 1970's. is that an ok use? >> they are totally separate from us because that is a database where people were uploading their genetic information voluntarily and it was consented. it could be used for all kind of purposes. 23 and me is not consented for law enforcement specifically we do not allow people to upload genomes from other places to see whether there are relatives there. it could never happen within 23 and me. emily: that was the ceo and cofounder. fascinating uses of new genetic data. we will have more from tech crunch disrupt later this hour. uber is rolling out new safety features that help driver and passenger security.

we talk about them next. this is bloomberg. ♪

i'm all about my bed. this mattress is dangerously comfortable. when i get in i literally say, ahh. introducing the leesa mattress. a better place to sleep. this bed hugs my body. i'm now a morning person. the leesa mattress is designed to provide strong support, relieve pressure and optimize airflow to keep you cool. hello bed of my dreams. order online. we'll build it, box it and ship it to your door for you to enjoy. sleep on it to up to 100 nights and love it or you get a full refund. returns are free and easy. i love my leesa. today is gonna be great. read our reviews, then try the leesa mattress in your own home. order during our extended labor day mattress sale and save. for a

limited time get 150 dollars off and free shipping too. sale prices are available right now. go to buyleesa.com today. you need this bed. ♪ emily: this is bloomberg technology, i am emily chang in san francisco. it has been quite a day. sheryl sandberg and jack dorsey answering questions about the russian interference in 2016 but dorsey went on to testify before the house energy and commerce committee on the potential biases of the social network against the republican party. here is what dorsey had to say about that. >> i want to start by making something clear. we don't consider political viewpoints, perspectives, or party affiliation in any of our policies or enforcement decisions.

period. impartiality is our guiding principle. emily: joining us is the ceo of the internet association michael beckerman. we also have sarah friar who covers the hearings. you were at the hearings with mark zuckerberg as well. what is your sort of biggest take away here? does anything surprise you about what sandberg or dorsey had to say? sarah: i think what is clear to me at this point is the more senators learn about these companies, the more they want to know, the more they realize these are complicated algorithms, hard to explain policies, and the companies are really juggling a lot of different considerations here when they make decisions on what to leave up and take down. although the claims of anti-conservative bias have been debunked, it speaks to this larger discomfort that there is not a lot of public transparency

about how these companies operate. emily: you work with these companies, you are present these companies. what do you think about how sandberg and dorsey performed in the hot seat? seems lawmakers were better prepared. michael: they performed well, and transparency is important for these companies and these two in particular. coming to capitol hill, educate policymakers, talk about the platforms and open up to questions and it makes everybody better off. jack dorsey in particular. emily: what do you make of the fact dorsey and twitter shares ended down 6% today? dorsey was very contrite, almost too contrite. he talked about the way twitter was designed 12 years ago, you know, it may not be the way they

want twitter to be today, and fundamental changes are necessary to make. nobody sort of knows how to interpret that. sarah: dorsey has said before they will have to make fundamental changes how twitter works, but it depends on how you say it in front of congress. he mentioned the follower count for example, maybe it needs to be revisited. twitter could completely shift its priorities to look to a cleaner future for its users, and that could change what twitter is. at the same time, he mentioned how difficult that will be. he mentioned it is difficult for twitter to be able to know who is a bot versus who is a human. that was very concerning to me. if i am an advertiser, i want twitter to tell me what people like and what they want to look

for in terms of shopping, and if they don't know if they are human, how will they help me sell? emily: you talked about distinguishing accounts. the companies talked about how they are working together. we have to talk about how google did not show up. lawmakers did not miss an opportunity to talk about how they did not like being snubbed. take a listen to this from marco rubio on googles no-show. sen. rubio: there is an empty chair from you from google. maybe it is because they are arrogant or there is a report that, as of last night, posted night, posted at 3:36 yesterday, the group went on pretending to be kremlin linked trolls. they used the details of the research agency, a kremlin linked trolls farm and were able to buy ads online and place them on sites like cnn, cbs this morning, daily beast, so i'm

sure they don't want to answer. emily: michael, you know how important it is for tech companies to be well represented. was this a big mistake? eric schmidt used to make appearances for google, but now they don't have someone who enjoys these kinds of public interactions. larry page of alphabet hasn't done a public interview in three years. michael: i cannot get into the negotiation between the committee and company on who will be testifying. kent walker has testified. i know an offer to testify this hearing, they speak in a number of different ways and they did offer to testify a missed opportunity, but between the committee and company if they want to send somebody up or not. emily: kent walker is that the -- is not the ceo of google. not a founder of google either. you think going forward google has the representation it needs in washington as it deals with issues around trying to

potentially reenter china? the president taking aim at google over and over again for what he perceives as bias. michael: there are so many different issues the companies are facing, and frankly they are taking a lot of proactive steps, and i give them credit for doing that, making changes and improvements on their own. google's will are presented in washington and certainly have a number of experts back in mountain view, and who they want to send, that is between them and the committee. emily: in terms of next steps as the president continues to train his ire on google, facebook and twitter, these companies, they are facing a whole range of issues. are they prepared to answer questions, not just from lawmakers, but the administration? sarah: that will be even tougher. the doj came out with a statement right after the first

hearing concluded saying they thought there was stifling of american speech happening on these platforms. that is concerning because that is a little more -- the hearings were cordial. they were measured in terms of back and forth and the company has done a lot of behind-the-scenes work. both companies have to try and develop relationships for these. sandberg talked about mark warner. we don't know if they have that kind of relationship with administration or the doj, so that will be a completely new front for them to figure out how to deal with. emily: what do you think of this issue now the justice department is taking a closer look at these companies? how much of a concern is that? michael: it is their prerogative to look into it. there is no censorship of political speech. it would be ironic if they want to censor speech.

from the conservative point of view in particular, these platforms are open and transparent, and people are getting their voices heard. all the policymakers at the hearing today are on social media every day officially and in campaigns. i think it is very obvious and clear to everyone that uses the platforms, they are open for all political parties and viewpoints. emily: sarah, the question of china came up over and over again, and it was interesting listening to sheryl sandberg's statements about china. sounded like lawmakers were trying to pin her down, saying we won't get back into china. is that the way you interpreted her response? she said we would not enter a country that did not share our values. sarah: and yet facebook has attempted to enter china in other ways. they have launched apps here and there. they have one in beijing that sells ads to people that want to

export products, and people access facebook within the country via the vpn's. they would love to be in china, let's be honest. the company is having some trouble dealing with this kind kind of line of questioning from the government here. the government a couple tries to write to explain they want the companies to say they are in favor of u.s. superiority over all other countries, but these are global companies and have deals in hundreds of countries, so they can't pledge allegiance to the united states without endangering their presence elsewhere. emily: sarah friar in washington as well as michael beckerman, ceo of the internet association. we will continue to discuss. cbd ventures is in line, tackling the diversity program and making bets on companies big and small from startups to amazon.

how a security manufacturer lockheed martin is looking to drone racing. we will hear from the chief technology officer. this is bloomberg. ♪

emily: president of abc entertainment, ceo of martha stewart's media company and ceo of [indiscernible] has worn many hats, and she has been on hits like grays anatomy and desperate housewives. today she wants to see more women at the top.

she leads built by girls, a venture capital firm that looks for companies with at least one female founder and happens to be a big investor in amazon which hit $1 trillion. thank you for joining us back here on the show. susan: i am a tiny investor in amazon. emily: but you personally invested in amazon, i believe in 2009, and then again this year, so what do you think about hitting $1 trillion? susan: it is a nice story. i also think they are a very unique company. they are attacked company. their commerce company, they are a media company, and they have really diversified in the way most have not. they have created an ecosystem or flywheel that is brilliant that moves people from one part of their ecosystem to another very seamlessly. emily: there has been a huge run-up in the last three years. the stock has exploded, but

really quickly, does that concern you? emily: this could be the top plateau. susan: i don't think it is the top. when you look at -- it is a highly valued stock, let's be fair. but i do think there is still a lot of room there when you think that e-commerce is still 15% of all commerce in the country, and they are the dominant player in that space. as it expands more, they will benefit from that. they are also one of the few companies out there where you can say, they are not going to be profoundly impacted by the trade wars. emily: interesting. i want to ask about that. i have a chart comparing apple to amazon. what about the fact amazon is in the president's crosshairs? susan: i think it is, but amazon support and they enable

thousands and thousands of small businesses around the country. so you go after amazon, and you are going after really the mainstay of the president's support system. i think he will think long and hard about how and when he goes after them. emily: you know what it is like to run an e-commerce company competing with amazon. today we saw j.crew actually partner with amazon. you can get j.crew products on amazon. do you think that is the only choice for a retailer today is to work with amazon, not against, or is this going to be an isolation? susan: i think there are lots of different options for retailers and brands. so one of them is definitely to use the amazon platform because you can reach an enormous number of people, but there are plenty

of brands doing very well by going directly to consumers, and those are among the companies we back as a vc firm. there is no question there is a lot of things amazon does really well. one of them is not necessarily developing brand strength. and so for companies like morgan partner and casper and glossy eight, they develop a direct relationship with their consumer. it is an emotional connection, and it keeps the customer with them i think for longer, and on a more consistent basis. emily: talk about bbg. every company has a female founder. have you found that to be a competitive advantage?

susan: 100%. one of the reasons that we launched bbg ventures is we knew women were the dominant consumer. we are either responsible for or have the last word on 85% of all consumer purchases in every part of life. it is not just fashion and beauty. it is what health care plan you use. it is what insurer you use, it is where you buy your house. all of those things, women are the dominant force in. it made sense to us to back entrepreneurs who understood that end user, and we will speak her language, know where to find her, and how to delight her. how to serve her needs. emily: despite the fact there are people out there like you making bets on women, i have a lot of investors saying we are looking hard but cannot find them. what are they doing wrong?

susan: they aren't really looking. we have seen 4000 companies since we launched four years ago all with a female founder. i think organizations like all raise, which i imagine you have covered, all raise is doing fantastic work in that space. emily: nonprofit trying to get more women into venture and women funded. susan: correct, exactly. i think there are lots and lots of women out there starting businesses. the problem is the vc world is still dominantly male. 91% of all, all vc partners are male, so that impacts the way venture dollars get invested, and it may seem like it is an arcane part of the finance world and not really important, but it is.

venture capital has a much bigger impact than you would think. if you look at 44 years, 22% of -- 42% of the companies that went public were venture backed. if we want to have a more diverse ecosystem of companies out there, if we believe that, that a more diverse group of entrepreneurs will come up with better solutions, then we must find ways for mortgage capital to go to women. emily: the king and queen maker of silicon valley. looking for new people to bet on, so thank you for stopping by. ok, coming up more of bloomberg technology. this is bloomberg. ♪

emily: lockheed martin is looking to advance our artificial intelligence. here is one to talk about techcrunch disrupt. keoki: this is a challenge, and bringing them to the world of high speed. we are partnering with video and drone racing league. if you see this on tv, we are raising the bar and raising the excitement. we are challenging people out here at the conference today and around the world to develop the technology that will allow autonomous drones to meet and compete in a complicated race. emily: there will be no human intervention. keoki: once it goes, it has to work on its own. that is what we call edge computing, to navigate and

complete the course. these are speeds up to 80 miles per hour. emily: talk about the craft you use and the technical challenges about making this possible. keoki: a couple of things. it is all about putting really complex and high-powered computing into a very compact, lightweight, low size weight and power device at the edge. these are small drones. movement is very high speed. they are moving into -- you have seen on tv these drone racing courses, these are 3-d courses where they have to maneuver around obstacles and have to be able to complete the course in the fastest time possible. ultimately we will compete with these machines, and the ai folks out here develop against top human racing. emily: what kind of tracks are you using?

keoki: we use tracks comparable to what the pilots are using indrawn racing today. emily: lockheed martin likes to say it has been in silicon valley before silicon valley was silicon valley, but for a defense company how, how do you respond? keoki: whether it is defense-related, or it is putting people back on the moon and out to mars, these are incredibly complex challenges. they are very difficult missions and very difficult environments. they require a whole range of technology. so to meet those mission challenges, we need to be bringing in not just the challenge from around the area here. we are looking to partner with someone that has new ideas, whether it is economy, sensors, quantum information i have. these are the technologies that will bring advancements of these capabilities. emily: lockheed martin could help develop? keoki: absolutely. we are looking to collaborate

with small companies through large companies. we are here on the floor at techcrunch we have represented is from lockheed martin ventures fund, $200 million plan where we are looking for companies that have interesting technology. they have a range of challenges from undersea to deep space. emily: we talk about self driving cars, but in reality they are a long way off. are we further along when it comes to drones that can be controlled by a piloted plane with or without human interaction? keoki: let me give you examples. i will use one in the military. we had a problem with improvised explosive devices harming troops in afghanistan. our engineer said we have technology that can fuel that. is it about deploying autonomous helicopters? they did 1700 missions

autonomously delivered over 4 million pounds of food and supplies and cargo. those of the capabilities that exist today. on the commercial side we are developing what we call matrix technology. autonomous full-scale helicopters, doing that the past five years, operating in zero weather conditions, indoor or at sea. you can detect a forest fire. the helicopter has to rescue somebody, and another helicopter with a water bucket to put the fire out. emily: lockheed martin ceo speaking to me earlier at the techcrunch disrupt conference. that does it for this edition of bloomberg technology. i am emily chang in san francisco. this is bloomberg. ♪

>> the following is a paid presentation for the power air friar of an brought to you by tri-star products. announcer: we introduced the power airfyer and it becomes possible to enjoy the crispy, crunchy, fried food you love, guilt free. millions were sold and the five-star reviews say it all. people love the power airfryer. now, air frying is taking a quantum leap forward. introducing the power airfryer oven. the full oven that can air fry 75% more than traditional air fryers. air fry chicken strips wings and curly frie