selina: i'm selina wang and this is the best of "bloomberg technology," where we bring you all of our top interviews and this week in tech. apple unveils a faster iphone x. at luxury prices. will it kickstart more growth for the first trillion dollar tech giant? some investors aren't convinced. plus, coffee on the run. how convenience in tech is plain -- is playing into starbucks's global

strategy. we hear from the company's ceo. and it's the new start of an era for alibaba. jack ma announces his succession plan as he shifts his focus to philanthropy and education. a big week for apple as the company unveils its new iphone strategy, tripling down on its upgrade to the iphone x. the new models are named iphone x s, the iphone x s max, and a new entry-level version, the iphone x are. -- x r. we got a first look at the handsets after the announcement. >> it looks just like an iphone x as expected. some of the new enhancements include upgraded camera equal processor. it is supposed to be quite a bit speedier. it starts at the same price. it has new wallpapers. overall, it is just like an iphone x. face id, same general design,

features, stainless steel casing. the big differences there is a -sgger version known as the x max. it starts at $1050. it has a 6.5 inch screen. this one has a 5.8 inch screen. and the iphone xr and the 10 are -r has aluminum around the side. this is the iphone x s max. it makes it quite a bit bigger than the iphone x. the reason they're calling it the max's it is quite a bit bigger than the plus. 6.5 inches, the overall phone, it is the same size as a roman seven. you have that much more screen. there will be one inch more diagonally. you can see their website with the interface, it's much bigger. it's sort of like an ipad where you have some of your content on one side and other content on the other side. same camera, same chip.

someone on this one as you have on the iphone x as well. it's in the silver color. it's got a new gold finish. that's the iphone x. this is the lower-cost one. this is the 10 r. it's sandwiched in between on the pricing scale. 6.1 inch screen. the bevels are slightly thicker shan they are on the iphone x and iphone x s max. it's an lcd screen. at first glance, looks quite a bit similar. edges instead of the stainless steel. it also comes in new colors. they kind of looks like an iphone 8 from the back. a glass back, single lens

camera, led flash below it. from the front, it really looks like an iphone x because of the headset screen for face id. selina: investors seem mixed on the triple phone strategy, but were surprised by the new apple series 4. it has more health features than ever before, and the first over-the-counter ecg reader. our reporter share her thoughts after the announcement. >> the redesign and how the face is now different, because the complications can be different, the experience is richer, more powerful. it's a bit more powerful but it can also be simple. i think it's a smart idea to keep the generation in at $479. people that have been waiting, it's a much more affordable dip your toes in the water move.

obviously, the health side of things is important. how long will it be before we can actually get our insurance to pay for it? emily: a lot of people who got the first generation of the apple watch, or it for a few weeks and tossed it aside. it is because they didn't need it, they had their phone. can those people be convinced that this is enough to have a completely different experience? >> you have to put some time into the watch to really understand what it can do for you. emily: it does take a of time and energy. not everyone has that. >> we are at a time where people are trying to disconnect from the phone, and i think the watch helps you. if you are a control freak like i am, i want to know what is going on, but i don't want to get sucked into my phone. you look at one tweet and 40 minutes later you're still looking at your screen. i think the watch helps you with

that and is a good cutting the cord but still being connected. emily: how would you evaluate the breadth of the phones that apple has now, all the way down to the iphone 7 in the $400 maxe up to the iphone x s for $1100? how well does this position apple going into the holiday season? >> it's a stronger lineup for apple for sure. but of course different , countries have different price points and $450 for an iphone 7 is not cheap in india. it's the first time you have that breadth, $450 to $1100 for the basic models. everything from a formfactor perspective as well. x came out,when the people appreciated more screen but if you were on a plus model before, it felt strange in your hand. you missed that larger form factor, which is what i think the max will address this year.

, the newhave the r attempt that apple is taking to the more affordable price point, and a smart one, too. emily: but you think it could cannibalize sales of the more high-end phones? >> apple says as long as you buy apple they don't mind. i think it is quite differentiated from the standpoint of feature set and the colors itself. consumers will go towards one or the other. i think what is important is it doesn't matter which one of the iphone x you buy. apple is selling you the next generation experience when it comes to iphone, so they will be happy with either one. emily: what are the biggest risks ahead? what are the roadblocks? shares didn't react particularly well. there is usually not much reaction on announcement days. if the company is already at $1

trillion, on the top of the world, is up the only way to go? or could there be another direction? >> there's a lot of attention on their services side. this is what they have done today with the different models. the larger screens, when are we going to see the tv service, it will play into that. and maybe the other part is china and the economic and political situation with china. you saw today how much china means to apple with the fact they came out with a model that has two physical things when the rest of the world will have an e-sim. emily: there could be an additional set of tariffs. $267 billion more worth of goods. how much will that hurt apple? >> it will hurt apple more than it would samsung. that's the other big name in the u.s. market for smartphones. they don't have to get caught in

the u.s. versus china battle. there are other ways. apple will have to pass on those tariffs to the final consumers. it's not as simple as saying bring it all to america and build it here, because the costs will be even higher. emily: great to have you back here on the show. thanks for sharing your perspective. selina: investors seem sort of convinced about this new suite of iphones and watches. shares finished 1.24% lower and mostly down throughout the day we are here at the steve jobs theater. for more on this, we are joined by shannon cross. why do you think the shares reacted this way? >> the stock has been relatively strong since earnings. i think that a lot of what they announced were in line with people's expectations. i do think there will be some sort of digesting from an asp perspective from what they

announced. based on our estimates there's about a 10% potential year-over-year increase. that's significant given the increase the prior year. there is definitely a shifting up. whereas there are a lot of questions from their ability last year when they launched the iphone x, i think at this point they have significant experience to know what the market could take and absorb. i am more confident in the pricing moves they made today. emily: asp the average selling price, $724. it could go up to as far as $793. we talked to pierre ferragu. they have the long view on apple. the iphone x has done so well so far, that there is not a lot of room for upgrades at this point. next year, in their view, will be a disappointment. what you think about that theory?

that isf the things interesting from an apple perspective is they've gone up double digits the last several years on an annual basis. that is significantly large to target. i think the $749 phone will be very attractive to a large number of those players. based on our research and conversations with people, china likes the newest and greatest and big. that will help with the max. i think again, there are a group of people were on the every year cycle who will go out and buy the latest one. i am not thinking that they have exhausted the potential pool of iphone x purchasers with what they did last year. clearly, it surprised both them and the street in terms of how iphone x didn't fall off. it gives them a lot of support. they can also give them a lot of

support for going through almost $1100 for the high-end phone. i think they will get it. would be a huge percentage? no, maybe not necessarily, but i think the combination of the two oled devices will sell well. selina: still ahead, coffee to go. starbucks looks to get back in the delivery game with a new partner. we will hear from the company ceo next. and if you like bloomberg news, check us out on the radio. you can listen on the bloomberg app, bloomberg.com, and in the u.s. on sirius xm. this is bloomberg. ♪

selina: this is the best of bloomberg technology. i'm selina wang. starbucks is giving delivery service in the u.s. another chance. the world's largest chain of coffee shops is teaming up to test a delivery in more than 100 locations in the miami area. several years ago, starbucks tested delivery service in seattle with post mates.

starbucks ceo kevin johnson joined bloomberg at the global action summit with how convenience is playing a role in the global strategy. >> sustainability has been a pillar of our agenda for years. starting with sustainability of coffee and making it the first sustainable agricultural product, to greener cups, to leed certified stores. today, we are announcing a new greener store framework, but we are going beyond the store into how we operate the store. it has to do with renewable energy, buying renewable energy credits so all energy in starbucks stores is renewable. it's about water stewardship and ensuring we are being thoughtful about water and waterways. it's about managing waste. we have a complete program we put together with our partners that we are announcing today that will help make us a greener, more sustainable company.

emily: will you install solar on the story? >> what we do is we buy renewable energy credits and then basically ensure that we are funding and supporting growth of renewable energy sources to find the energy consumed in our stores. we do work to ensure that all the equipment in our stores is consuming the minimal amount of power necessary, and that's why leed certified store and have a lot of innovation in store and that a lot of commitment to things like renewable energy and water and waste reduction. emily: you get a lot of feedback from coffee farmers around the world. by 2025, we will lose half the world's area suitable for growing coffee. do farmers tell you about how climate change is affecting them? where do you see the global coffee crop evolving over time? >> we source coffee from over

300,000 different coffee farms around the world. we have farmer support in every geography that we source coffee from. amiss --egro nimists that work in that network. what we are hearing, it has created a manifestation of coffee rust. it gets on the leaves of coffee trees and kills. we have worked to create a rust resistant coffee tree that we give to coffee farmers and then we work to develop best practices on how to get the best quality of coffee and the best yield from their coffee. with farmer support centers, and we open source all of that information to coffee farmers around the world. emily: given the commitment you have to stating off climate change, what is your reaction to the administration's actions with the rollback on methane protections? >> for us, sustainability has

been a pillar of our social impact agenda for more than a decade. it goes back to the origin and foundation of the company. it's our belief that the pursuit of profit is not in direct conflict with the pursuit of doing good. in the case of sustainability, whether it's coffee, greener cups, greener stores, that's good for business. we stay focused on what starbucks does, which is let's create a great experience in our stores and serve some of the best coffees from around the world. emily: 2020 will be the year of the final straw. you have pledged to eliminate plastic straws. i know you have been planning for years to do so, but it has not been easy. what are some of the biggest challenges of getting there? >> this is a challenge of innovation. we do that not only by working not only within starbucks, but with many partners outside of starbucks by innovating many things like the straw-less lid. the things we are introducing

them in the united states and they are being deployed around the world. we come up with newly designed straws that are composed of all or biodegradable. emily: what are they going to be made of and who will supply them? >> some are paper and some are compostable plastic. there's a supply chain being built to supply the volume straws that not only starbucks customers use, but are used in many other beverage establishments. emily: some would say that straws are just a drop in the bucket in the amount of plastic going into the ecosystem. what else can you do to push the needle? >> the other thing that we do is really work with local government to make sure they have recycling capabilities. we are focused on getting our recyclable cups and plastic into the appropriate recycling system in these local communities. , we can make a big difference there as well. you have to focus on a variety of domains.

that is what we are doing. selina: that was kevin johnson. we will have more from the global climate action summit next when we hear from the san francisco mayor. a little later in the show, canada stocks are heating up. fueled by upcoming recreational sales in canada and a growing u.s. market. we will take a look at the tech behind the drug's regulation. this is bloomberg. ♪

selina: welcome back to the best of bloomberg technology. since she was sworn in as the 45th mayor of san francisco in july, she has been vocal on clean initiatives. it she talked about her commitment to reducing waste and a 100% renewable energy target. >> we are well on our way to 100% renewable energy by 2023. -- by 2030. we are committed to that. haveve launched and

100,000 customers already enrolled in the program. i'm excited about getting to a place where we can produce zero waste and coming up with creative solutions like green bonds that help with our infrastructure. we have the technology to do amazing things and we should use it. just because someone says it's not possible doesn't mean that we don't roll up our sleeves and do everything we can to try. emily: this is a low-lying city. what is the plan to fight rising seas? >> right now, i'm glad you asked that. we have initiative on the ballot for our seawall. our seawall is really protecting us from sea level rise. we have over a $1 billion project. we have a bond on the ballot where we are raising money so people can understand that the things we don't see are sometimes the things that are more important than what we do. this is the difference between protecting us when a big comes, or anything of that nature. we are moving forward to provide protections for our seawall. emily: what do you get about the

president's decision for pulling out of paris. >> everyone who cares about our planet has to be disappointed. but, what that has done has inspired people from around the world to come together for this climate action summit to not just talk about what we want to do, but actually put words into deed and get things done. emily: what is the strategy for accelerating the use of electric cars in the city? >> we have provided additional stations and charging stations here in san francisco. a new purchase of all of our vehicles are going to be clean energy vehicles. we put forth legislation a couple years ago to make that commitment. because, there are options out there that we can use to get to a 100% clean slate here in san cityisco for all of our vehicles. including our dump trucks, police vehicles, all of those

things are headed in the right direction. emily: where is the city on self -driving cars? >> the testing of self driving cars a little complicated. we are trying to work with the industry on responsible practices. what we are most concerned about is safety. we want to make sure people don't get hurt. we are working with industry to provide safe testing and regulations that are appropriate to keep people safe. emily: san francisco just passed some surprisingly strict relations on scooters. do you think these regulations could loosen in the future to allow other companies to participate? >> i think what happened when the scooters just started showing up all over the sidewalks a couple of months ago, people were like, what do we do with this? we are now trying to see whether or not this can be something that can work in san francisco. frankly, i'm excited about the

scooters, especially when you wear dresses. you can go from one block to the next. but safety is the number one option. people riding on narrow sidewalks where people are walking is really a problem. our goal is to make sure people are using them safely. that we test this to see how it works. but i think it could be a great addition to san francisco. emily: there are some other policies the tech community might see as unfriendly. are you taking on big business? >> i think part of what i believe as mayor is that big business definitely has to pay their fair share in helping san francisco with all the challenges that exist, but i think there is a fine line between helping and being responsible, overburdening the business community with things that drive them away. i want to make sure that our strong economy continues in san francisco. i want to make sure we have balanced and fair regulation and that will definitely take time.

emily: do you think the tech community needs to do more when it comes to homelessness and being a good city citizen? we need more, of course. but the flipside of that is the people we have that are sadly homeless on our streets are struggling with drug addiction and mental illness. we've gotten people into our navigation centers, which are 24-hour shelters that help people find permanent supportive housing and they have not always , stayed in that housing. they would get in there one day and be gone the next, and it is continuing to be a challenge. it's why am pushing to some reforms for mental health conservatorship. it is why i am pushing for safe injection sites. we will hopefully find a better place. it's not going to completely problem, because we know people are struggling but , we have to do more and we have to do something different. selina: that was san francisco mayor london breed. still ahead, the changing of the guard at alibaba. jack ma's plan to step away from the e-commerce giant.

bloomberg technology's live streaming twitter. check us out, and be sure to follow our global breaking news network at tictoc on twitter. this is bloomberg. ♪ xfinity mobile is a new wireless network

designed to save you money. even when you've got serious binging to do. wherever your phone takes you, your wireless bill is about to cost a whole lot less. use less data with a network that has the most wifi hotspots where you need them and the best 4g lte everywhere else. saving you hundreds of dollars a year. and ask how you get xfinity mobile included with your internet. plus, get $300 back when you buy a new smartphone. xfinity mobile. it's simple. easy. awesome. click, call or visit a store today.

selina: welcome back to the best of "bloomberg technology," i'm selina wang. another high-ranking tesla executive is leaving the company. that's according to sources that the global vice president of finance operation is parting ways with the electric car company. we are getting news of longer delivery response time for vehicles. customers may experience longer response times. resolving this is our top priority. the chiefith investment officer. is talkingsition

about people requesting service on their cars, and what is happening now is tesla is in the middle of a sprint to get as many cars manufactured and delivered to customers as possible. it feels like they are having some normal customer service snafu. until we learn more, i wouldn't read too much into it although i definitely want to start looking at what customers are saying and i haven't got a chance to do that. emily: perhaps more serious is this continued executive turnover. specifically in the finance department. we had the chief accounting officer leave as well as other finance executives. and now coming yet another. -- and now, yet another. how concerning is it that tesla can't keep people in these very important positions? the company is working toward profitability. >> it's never good to have turnover especially with these

exits. i do believe there's is a long line of people who would love to work in tesla. i don't think they're going to have a hard time replacing anyone in these positions. the opportunity to get in on the ground floor of a company that is making huge changes to the automobile industry and that is very appealing to people who are in silicon valley and a lot of companies do have high turnover. people in silicon valley tend to look for the next big opportunity. the turnover is never good but i think there is opportunity to fill the positions pretty easily. emily: this is extremely high turnover. we are focused on it. we've got an entire bloomberg team trying to talk to current and former tesla employees. what are employees saying? >> what is happening and has been happening for the past few weeks i think would be extremely demotivating too many many tesla employees.

you have people who have been working around the clock including elon musk. and while that is going on, you have this kind of whole drama that feels like self sabotage. while i think that ivan is right and they will be able to hire people. this is a company with a lot of growth potential ahead. there is the problem that when you have a lot of turnover, it saps productivity and we have the self-inflicted wounds. aps distractions, that also s productivity. this company can't really afford that right now. they are trying to work as fast as they can't get the cars out the door. emily: we heard the coo of other, elon musk's company, comment on what she believes elon to be as capable and lucid as ever been. she wishes people wouldn't focus on the trivialities. as someone who is analyzing the company, what are the

trivialities and what of all the news that has made headlines, what matters? what matters when it comes to your evaluation of the capability of elon musk and the potential of tesla? >> recent events surrounding elon have been pretty shocking. however, the focus is still on the car. i don't believe anyone in a tesla showroom considering purchasing a tesla is thinking about what elon is doing. they are thinking about if they like the car and the car has a lot of appeal. the interest in the car is still very high. they have a long pipeline of people who want model 3's. i don't really know if it affects the key thing, which is the sale of the vehicles. case? is that the ir customers out there who might be questioning is my car safe? will i be able to buy another one of these in three years? >> the legacy tesla customer, the people who bought the

roadster and the model s, those people are turned off by elon musk going on a podcast and using some drugs. but i do think as his company tries to make a "mass-market" car, electric toyota corolla or whatever, toyota corolla buyers don't care about corolla, they want a car that is safe and reliable. i do think there is some long-term risk if the company isn't able to get its image under control. the other thing is, this is a situation where you have a lot of little cuts. if they get things turned around and have a good quarter and elon keeps things relatively buttoned up on twitter for a while, maybe things die down and it goes back to business as usual. but if there is another problem like an accident at the factory car situation,s

that could start to pile on and create the narrative that would be bad and unprofessional. selena: it's the end of an era at alibaba with jack ma this week announcing his plans to step away day to day running of the company. he will hand the reigns over to his successor in 12 months time. he will stay on board until 2020. emqq founder kevin carter joined us to share his thoughts on alibaba. >> i don't think he is exiting the company. he is exiting one particular role. he's doing it in the methodical way that has been talked about and broadcast. it is new information, but it is not really really news. he stepped down from the ceo role several years ago. and now he is making it more formal. the timeline for his handing over the chairmanship, he handed over the ceo role many years ago. it's more about changing his

mh the philanthropist role he's two planning on taking on in the future. as well as being a teacher. emily: is anything surprising? >> it has been a long time coming. he has been talking about this for many years. he has always said he was to pass the baton to the younger generation and wants to die on the beach and not in his office. it's not a surprise. the successor is much quieter but he has been the ceo for nearly three years. he has executed extremely well and is credited with bringing things to the forefront of the company, for spearheading singles' day and executing on a new retail strategy. it doesn't come as a surprise. i think the most surprising part is the timing of the announcement, though analysts have known for quite some time it was looming large. emily: is it any surprise that it's not the vice chair?

selina: he was hired in 2007. he came on as a cfo and is really credited with making it an established organization. jack ma has said that him leaving means his company is no longer reliant on specific individuals and personalities, but can rely on the organizational structure. jack ma will probably never leave his role as being the public face of the company but behind the scenes there have many players propping the company up for quite some time. emily: we spoke to jack ma on bloomberg television. take a listen to what he had to say about the company's future. >> i don't think any problem solving won't happen. i have full confidence in my team and i'm fully confident in our structure. the partner structure which a lot of investors don't like. hong kong doesn't like, new york doesn't like -- it's so perfect.

it's the system that i think is the contribution that i and my team built to this world. and people in the future will love it. they can make the company last a long time. emily: hopefully we will continue to get interviews of him, because the fire is always fun to watch. kevin, what is your view on the future of the company? that was beautiful, by the way. he has already been gone. he's made it very clear that what is important to him his culture, handing the baton, empowering other people. isyou alluded to, daniel considered -- i saw a story that called him clark kent, where jack ma is superman. i think the company is in great hands and the fundamental story here, you have billions of consumers in china, in india, in africa that are getting their

first computer and first internet access. 5g coming soon and a big deal. emily: soon-ish. >> i don't have a projection when someone in the u.s. will have access to this, but it is soon enough to matter. the point is, the fundamental story behind alibaba, this is a big story of all the consumers in china and the rest of the world moving on up, wanting stuff, getting a computer, getting the internet, and doing it on the phone. he set a great culture for the company, and i think they will continue fundamentally to do quite well. emily: what you think are the challenges that lie ahead? especially in the middle of the u.s.-china trade war? >> i think the stock risk and problems have have been related to the trade war. i think if you look at the different parts of the emerging market, china economy, and stock

market, the companies are going to struggle with the trade war feed, thingsicken like that. all the sectors that are going to be hurt by trade wars, this emerging market internet sector will be hurt the least. it will certainly affect the stock. selina: starting a new business is tough but the former , ebay ceo has successfully led several. now he wants to share his expertise and we will hear from him next. this is bloomberg. ♪

selina: ebay coo and yahoo! chairman peter webb is a 40 year chairman of the tech industry. he continues to serve on the boards of visa and salesforce. today, he is investing in the entrepreneurs tomorrow through his web investment network.

but it's not just about giving them funding but advice. in his latest book, he shares z delivering words of wisdom to anyone who wants to start a business. >> it is way different. there's not a boss that tells you what to do all day long. today, we have to inspire people and motivate them and make sure they can do what they want to do. emily: you talk about ego and entrepreneurs can sometimes lose their way. how do you counsel entrepreneurs to make sure they don't get caught up in the wealth, power, and arrogance, quite frankly, that can be silicon valley? >> we build values into a from day one, and teach how to be honest, and transparent, and humble. and the higher up you go in the company or the world, the more you have an obligation to do better. i work really hard and try to

select for founders that want coaching. because it is not just about money. you have seen our events. want to bring an army to help a company get better. it's not so fun to get somebody doesn't want help. emily: you try to connect them to people that you think will be valuable based on your own network in the network you developed. what do you really want to accomplish here? do you think founders are getting straight talk? >> they might get straight talk but they are not getting a lot wisdom from the park bench where you spent a lot of years making things happen. it's a lonely job. i don't have an agenda, i am just here to help founders get better. my son came up with this idea based on a post about a dad dying in writing letters in

certain stages of his life. we were like, this is cool. we give advice all day long, but there's 100 ceos are everyone we go give advice to, is there way to codify this. we did the network first with a small deal. the network said take this to the world. there is advice that helps a lot. emily: let's talk about the founders in the news. if you are writing a letter that started with tear , elon musk, but with that letter say? >> i would start it with you are amazing and you brought more innovation to the world than most people could ever dream about and you need to keep feeling amazing. you and your board should make sure that happens. emily: the media has an criticized for trivializing some of this headlines and we see him smoke marijuana and tweet nasty things. we are seeing him share what seems to be untruths with "the

new york times." how do you control someone like that? >> i think you have to give him some advice. emily: what about his board? >> his board should be stepping up to work with him. it can never be just about the person running the company. you actually have an entity this behind you, and all the company and the employees and the shareholders are counting on the board and him to do the right thing for them. emily: what about mark zuckerberg? what would that letter say? >> i think mark has come a long way. i met him when he first started the company. back then, it was can we even build anything anyone cares about? then, oh my god, we have to celebrate how far along they have come. every year, every new launch, the bar gets higher what you are obligated to two, and the

more people are using your product, the more responsibility you have to make sure it's done well. i think he knows that there's more to do. i would encourage him to do that as quickly as he can. emily: you worked closely with melissa mayer and you navigated very complex issues. what are some of the learnings there? >> she is amazing. i love partnering with her. it became a friendship as it went on. but it was hard. she never ever ever backed down from trying to make everything work. but we had lots of hurdles to get over. thank god we got to the finish line and returned good shareholder value. selena: that was maynard webb. coming up, manager turned troy carterutive

is known for smooth interactions with artist and now he is chosen to lee spotify. we have an interview next. this is bloomberg. ♪

selina: cannabis stocks are heating up. the north american marijuana indexes gained over 50% since mid-august. there is a growing market in the u.s. bloomberg tv has an inside look at the technology driving the and how of retail sales could be common anchor market for the multibillion-dollar industry on the east coast.

the next state in the u.s. to sell recreational marijuana is gearing up slowly. pot sales are legal in massachusetts as of july 1, but by law it can't be sold until tested at a licensed lab. the certified products are free from mold and dangerous pesticides. >> the biggest obstacle has been labs not being licensed. before anything can be sold it has to be tested. selena: now, it can. marijuana testing labs cdx analytics is one of two that won the state approval. brian strasnick runs the lab. they have been testing marijuana since 2016. >> we have 13 or 14 clients. in the medical marijuana space. selina: these clients send their cdx for testing

before selling to consumers at their dispensaries. >> we have about 60 samples a day. we expect that to go crazy once recreational comes on board. i would imagine that we will triple or quadruple our samples probably in the next year. selina: the chief science officer oversees testing. profileally, a full test will take between 48 and 72 hours. selina: how labs test is key to their business plan. one technique uses a petri dish to show harmful organisms. dnais betting millions on a technique. >> we are qualifying the dna. we get a snapshot of what microorganisms at what ratio are present on cannabis on the shelf. selina: which technique works better is up for debate. in either case, the successful

tests will cultivate sales. >> by the end of september, beginning of the october, dispensaries that are up and running now will start to be able to sell. selina: the state needs to rollout seed to sales software to monitor marijuana at all stages. once underway, the market is expected to hit $325 million this year. reach $1 billion by 2020. >> right now there is no profitability because it has been all money out to get the infrastructure up and running. i am hoping by the first quarter of 2019, we will be showing a pretty significant profit. selina: massachusetts the seven state to legalize sales in the first on the east coast where it could prompt neighbors maine, vermont, new york, and new jersey to follow. >> we have the format and infrastructure in place to

be able to duplicate this all over the country. it's just in its infancy. selina: staying in boston, he first made a name for himself as manager to lady gaga and john legend and now is one of the biggest names in music. as global head of spotify's greater services he is credited , with repairing the company's relationship with artists. he continues to work with star talent as well as investing in technology. emily chang sat down with him on his last day of spotify to talk about his exit. take a listen. >> you know what, we had a great time. it's been two and a half years. i am an entrepreneur at heart. it's in my blood. i wanted to take on a challenge. i felt like the music industry was taking a shift.

daniel lives light-years ahead of everybody else when it comes to seeing what the future looks like. being able to spend some real time with him and real time within the company, it did a lot for me in terms of understanding how companies scale. being there to see the company go from start up to big privately owned company. but also just for me, i was excited about some of the entrepreneurial opportunities. the white space that exists. emily: what do you think will happen in terms of how the pie will be divvied up? spotify or apple music are you

-- apple music is it going to? is the high going to keep getting higher, or is one of them going to rise to the top and dominate? >> i think daniel has been clear, it's not going to be a winner take all market. a lot of it has to do with the different constituencies of consumers. you have consumers who are never going to pay for music whether they don't believe in paying for music or more to the point, a lot of consumers can't afford to pay for music so they will consume a certain type of way. radio has always been an option. you have people who are still going to still buy cds. your people who are vinyl enthusiasts. you have all these different types of consumers. and then, also, do you have voice. voice is going to develop a certain type of consumer. the car will have a certain type of consumer. you are going to have all different types. i don't think it is winner take all by any means. ,elina: that was troy carter ceo of atom factory. that does it for this

edition of the best of "bloomberg technology." we will bring you the latest tech throughout the week. bloomberg technology is also live streaming on twitter. check us out and be sure to follow all of our global breaking news networks. at tictoc on twitter. this is bloomberg. ♪

♪ welcome to bloomberg businessweek. jason: we are inside bloomberg headquarters in new york. >> coming up, donald trump promised to drain the swamp in washington. tim o'brien, his biographer, shows he has done quite the opposite. jason: also in washington facebook and twitter executives , were there last week, promising more transparency. google founder larry tate was