♪ emily: i am emily chang in san francisco. this is bloomberg technology. coming up in the next hour, a look into facebook's future. will investors get on board or is it a gamble on videos and stories? a hotly debated ballot issue in san francisco, funding for the homeless, has the tech community and city divided. we will speak with one of the most outspoken advocates for new ballot measure.

and apple's hardware overhaul right before its earnings report. could the revamped ipads and macbooks be the answer to the apple or ares of there products losing their luster? facebook reported third-quarter results tuesday and one thing was clear, mark zuckerberg is betting on the company's future and that is video and disappearing stories, not facebook's famous newsfeed. while investors are buying into the vision now, who is to say facebook videos will catch up to youtube, and that facebook stories will succeed the way instagram's has. so far both features are lagging behind. zuckerberg made note of that. and a rare moment the ceo brought up the social media giant's competitors by dropping -- name dropping youtube and the rival for facebook messenger. our biggest competitor by far is imessage. in countries where there is more competition between ios and

android, like europe, people tend to prefer our services. emily: joining us to talk about the future of facebook is analyst richard greenfield, who has a buy rating on the company. also with us is bloomberg tech's sarah frier who covers facebook for us. what you make of mark zuckerberg squarely putting the target on apple here as tim cook has hit back at facebook about how it handles data and how it handles privacy? richard: i think it is less about this war between apple and facebook. you are looking at the youtube versus facebook. the reality is, facebook is one of the dominant companies in terms of mobile time spent. the reality is, despite the fear that people are abandoning facebook or not using its applications, the reality is there is 1.5 billion people using facebook everyday. facebook, not the other applications, but facebook itself. there is 800 million people

using marketplace. to me, i have never used the marketplace tab. i don't know anyone who uses the marketplace to have. they say there are 800 million people using that tab. whereighlighted cars, people are buying and selling cars. there are so many things facebook is doing better not alwaysg that are not obvious to someone in the u.s. i think there are places in the world like indonesia where facebook marketplace is the default way in which goods are bought and sold. there are some big differences globally, and i think you mentioned one of them, looking at imessage versus facebook messenger overseas. not all of that is apparent to a u.s. investor. as you look broadly over the next few years, facebook has a lot of different initiatives that are very early stages of monetization. they are just scratching the surface of messenger and whatsapp. facebook watch, the instagram

video platform, theory -- very early stages. what you do see is tremendous engagement across the facebook apps and the family of apps i should say, and that creates a big long-term opportunity. that is what the street is excited about is that they are beginning to give hints of monetization for all of these things beyond the newsfeed. emily: we talk about different battlefields we often don't discuss. with respect to apple, he talked about how apple is storing i messages on iphones in service in china. it was a different tact and tone from mark zuckerberg. much more direct then we have heard in prior years. what you think the strategy is? sarah: i think he is trying to paint the picture of how difficult it will be, but he is asked but he is excited about the future. he says facebook's stories in the whole stories product a

cash not just that is going to be tough to monetize those things, but eventually more people will be using that. he was trying to give a sense of how big these things could be, that you should think of messenger like imessage. he's trying to give people a picture of how to think about the future of the company. emily: you laid out a great argument on why we should still believe in facebook, but what about all of the skepticism and what about all of the mistakes they have made? what about some of the lackluster engagement with their core product, which is now the newsfeed? richard: i would echo sarah's comment. instagram is a huge business, huge. i look at instagram and go "this is the modern day cure for boredom." mark cuban used to talk about tv was the cure for boredom. the cure for boredom in 2018 is instagram. people are using it anywhere

they go to kill a moment in time. time spent has exploded. usage is up to one billion people. this is the dominant cure for boredom for people all around the world. it is going to grow from one billion to 2 billion users. time spent is growing and it is becoming the mall where everybody finds goods and services that they are interested in. as you look at the products, you can make a reasonable argument that over the next five years, maybe seven years, that instagram will be a bigger business than core facebook. i believe the growth potential of instagram over the next five to seven years, as they get things like stories, monetization, to kick in -- they already have the users, they just have to get monetization to kick in. a beastm seems like

that really will create tremendous value for facebook shareholders. there has definitely been mistakes and challenges in terms of cleaning up the newsfeed and making it a safer place. it is the internet, there is lots of challenges. google has those challenges, twitter obviously. have thosepanies challenges, but when you look at the long-term, three to five-year opportunities for facebook, there is a great -- opportunity. emily: midterm elections are coming up. facebook and whatsapp did not do fare so well in the brazilian elections. what are we expecting to see the next week? sarah: i think facebook is still working it out. they are every day finding new ways that the platform is being taken the vantage of. ofy are reacting to reports pockets of the universe needing

attention. that is still happening. we get to the midterms next week room,ey have their war the attention go be on this. it will be a process of whack-a-mole as they figure this out. their system is based on content going viral, content that gets shared. this is still the stuff people are clicking on, still what makes facebook money, so it will be very difficult for them to really make a meaningful change. in the meantime, it will be very reactive. emily: rich, over the last year, we have seen the founders of whatsapp, instagram, oculus, leave the company. we have seen a broader protest from users about privacy, about how facebook handles their data and there seems to be this long-term question over whether users will buy that in the future. buy this idea that facebook can rent their data and make money off of it. does that longer-term concern for you?

-- worry you? richard: i want to correct to the things that you said. they do not sell the data to third parties and they never have. i think that is an ongoing talking point that is not factually true. when we talk about users leaving over all of these issues, data shows facebook users on a daily basis grow on a sequential basis. i'm not talking from moving from facebook to instagram, but actual facebook users continue to grow. they have never gone down on a global basis. even in the u.s., they were flat, but would have actually grown this quarter. it is not growing the way it used to, which is a fair criticism, but this fall off where this change in consumer behavior is a little bit misleading. the reality is, companies that get bought, there is a natural transition.

i do not believe that instagram would be what it is today if it had not been bought by facebook. mark zuckerberg's vision for what this could become, instagram stories would not have existed if this company was not part of facebook. sarah: i just want to take a point about it. facebook sells access to those people. they are selling attention from those people. that is where the data collection is coming from. i think the company looks to have this debate, are they selling your data, are they not? that doesn't take away the privacy concerns of facebook having all of this data. more than users realized they have. richard: that is totally fair. the only thing i would respond to that is when you look at the internet, ad retargeting, click on any google link and see how you are retargeted. click on and amazon product and

see how you are retargeted. using data to target advertising is something that has been growing on the internet for years and years. i would argue where it becomes a problem is when it is done poorly. when it is done well, if you look at the ads on instagram, they feel like content where you want to buy the products and services. you want to buy these things. you see things you actually want to buy and it is driving real businesses. where it is used inappropriately, or where they usersr bad ads is where can get upset. when i go on snapchat, i see a lot of ads. i see hunting ads, dating app ads, ads completely targeted to the wrong person. that is where i feel like the lack of use of the data, where it is not becoming a good experience, is hurting the service. if the data makes the experience better, almost every consumer i have talked to would prefer that and like that experience. emily: we will see would users

decide. btig research analyst richard greenfield, always great to have you on the show, as well as sarah frier, thank you both. later this hour, marc benioff will be joining us. why he is in support of taxing some of silicon valley's biggest companies to raise money for the homeless, despite big opposition. this is bloomberg. ♪

emily: earlier this month, the irs unveiled proposed for what steve mnuchin said could be a $100 billion investment in distressed areas. the proposal details how taxpayers can qualify for special breaks by investing in low income areas. but a hidden clause could deter

venture capitalists. the rule requires businesses generate at least half of their gross income within the zone they operate. for startups, many of which seek widespread sales, this could pose a problem. here to discuss is our next guest from seattle. walk us through why investors might be for or against this. >> as you said in the intro, the treasury is trying to walk a fine line. they want good investment in these communities. they want investment that is going to help spur job creation and keep people from gaming the system, but what this one small clause in the regulation says is that the company has to get most of its gross income from a small area where the company has been. some of these zones where you can get these tax breaks are rather small. in some cases they are a few square blocks. the problem is that a lot of high-growth businesses, especially ones that want to

sell stuff over the internet or a service over the internet, will struggle to meet that test. emily: let's take the case of no pun intended, who is for this. noah: he has been trying to get investment in areas outside of traditional tech hubs. he seeded a bunch of companies in new york and silicon valley. he was a big proponent of these tax incentives. what he told me was basically this gross income requirement was going to be a challenge for starting the sorts of high-growth businesses that he would like to see in these disadvantaged areas. emily: how final are the rules? noah: that is an important thing to note. these are proposed rules. the treasury is taking feedback right now through almost the end of the year. we will see final rules hopefully at some point early next year.

emily: what does this mean for startups more specifically? noah: i think what it means is that these tax incentives were seen as something that could be especially useful if you are taking more winnings from a company you were invested in pre-ipo and wanted to make more of an impact investment and trying to fund a startup in an area that may be has not seen startups recently. it is not to say you cannot do a startup in newark new jersey, but if you are hoping to use these tax incentives to drive that investment, it is going to be much more of a challenge. emily: so is steve case an outlier? what are the majority of investors saying? noah: the majority of investors are really getting acquainted with these tax incentives. steve case has been outspoken on them for a while so he was aware

of these regulations. i spoke with a couple of venture firms that are interested in this area and these incentives and they shared similar concerns. emily: all right, noah for bloomberg in seattle. thanks so much for breaking that down. speaking of tax policy, stay salesforce'scause marc benioff will be joining us on thesupport controversial homeless ballot measure in san francisco. and waymo begins driverless tests. what this means for parent company alphabet and the future of waymo and driverless tech in the united states. this is bloomberg. ♪

emily: it is a big win for waymo. alphabet's self-driving unit has been given permission to test driverless cars on public roads.

the state is allowing waymo to be the first to field cars without a safety driver behind the wheel. this comes at an important time for automakers and the self driving tech companies. the senate has a narrow window to pass in autonomous car measure and house democrats are thinking about next steps for the technology after the elections. ish me in san francisco bloomberg's eric newcomer. what is the significant of waymo getting this? >> waymo has insisted they wanted to build the technology but do not require the driver so they would be the first company to get a permit to do that. i can work without a driver, will pay off. emily: i was one of the first ones to get into a google self driving car in 2011. it has been years. it has been years. talk to us about the importance

of having federal legislation here. >> one thing that is important to understand is there is nothing in federal law that prohibits a company from fielding a fully autonomous vehicle. where the legislation that is being debated is important is that it would allow companies to field a lot more cars exempt from federal safety standards that requires things like a steering wheel, foot pedals. if waymo is really going to go all the way toward its vision of heaven a truly driverless car, scale, they at will need these exemptions. that is one of the big reasons companies have been backing this legislation. emily: the founder of the self driving car ran google x for a long time. he told me he has driven to tahoe with his family and kids

in this car but there are still questions. are they safe and can it be done? there are articles all the time about the mistakes these cars are making. talk to us about the challenges. >> fundamentally, the problem with a self driving car is how do you know what you know you cannot solve? there are all of these edge cases as the tech people like to talk about. emily: every day there are edge cases. >> there are problems that they cannot solve yet but they hope to solve soon. the industry has been bad on predicting how long that will take. now that those problems still continue to exist, it is hard for anyone to give assurances that everything will be solved. i think there is cynicism waiting to hammer out, what do you do if someone is waving a car on but you have a fully autonomous vehicle. emily: ryan, certain states have had more issues than others. there have been accidents, there have been deaths with some of these experiments. how does what we are seeing at the federal level differ from what the states are doing when it comes to legislating?

ryan: i think you bring up a really important thing, and that the actions we have seen earlier this year in arizona and in california involving uber and t esla, in d.c. you are starting to see signs that to that is starting to have an impact in effect the way federal regulators are giving this technology. you start to see signs that even the trump administration is starting to look at this new technology with more skepticism. embolden in and giving ammunition to safety advocates who are saying this is this artificial rush to pass legislation at the federal level, it does not need to go this fast. emily: on that note, eric, someone on the board for uber for a very long time said self driving cars will take 20 to 30 years and that is one thing he

disagreed with travis kalanick about. travis really wanted to forge ahead with self driving technology. they continued that, but the strategy has changed. eric: i think one of the most fascinating questions as uber prepares for the ipo is whether the company tries to set up a separate vehicle for self driving cars. if you are a self driving bull you can invest in that and if you are a self driving bear you can have exposure to uber without worrying about itself driving cars. it is super expensive. i'm sure when they file, we will see huge research and development costs they will attribute to self driving cars. they will have to decide with the cfo if they could be more valuable with this as part of the company or this with majority owned by the company with outside investors. emily: they are also behind these flying taxis. eric: on the record, he said they get a lot of pitches from

bankers and they are considering a lot of different things. i think he has shown an openness to maximize whatever makes the most financial sense for uber, but he is not shown his hand on whether they would spit it out or get some big outside investor or anything like that. emily: thank you both. coming up, could apple's hardware overhaul be what it needs before the holiday season? we will talk about that and what to expect for the fourth quarter results, that is next. "bloomberg technology" is livestreaming on twitter. check us out @technology, and be sure to follow our global news network, @tictoc, on twitter. this is bloomberg. ♪

i am a family man. i am a techie dad. i believe the best technology should feel effortless. like magic. at comcast, it's my job to develop, apps and tools that simplify your experience. my name is mike, i'm in product development at comcast. we're working to make things simple, easy and awesome. show me movies a grinch would love. [ bark ] nu uh, i'm picking the movie tonight. [ whimpers ] be sad, i enjoy it. show me grinchy movies. oh, goody. [ whimpers ] mmm, fine! show me movies max would like.

see the grinch in theaters by saying... "get grinch tickets" into your xfinity x1 voice remote. [ laughing ] uh oh. something in my throat. emily: this is bloomberg technology, i'm emily chang. on tuesday apple unveiled a andup of revamped ipads macbooks. stock is up 28% year to date. that is after apple's market cap hit $1 trillion. can the iphone maker continue this upward path? what should we expect from its earnings report out thursday? our guests are here to discuss. companyman covers the for us as well. mark, walk us through the announcement and how you expect that to impact the holiday quarter.

mark: that is a good question. what we saw is basically part two of apple's new strategy for its results. they started this last year. they realized iphone unit sales were not growing. how do we keep growing as a company? we raise the prices. we know we are not going to grow in terms of unit sales numbers. pricess, they raised the significantly. more thanc mini is $300 the previous model. the new macbook air is $200 more than the previous model. even if they stick around to equal unit sales, their revenues will rise. we will see that play out tomorrow because apple is expected to report 18% and 20% year on year growth, but we know iphone 8 unit sales growth will be stagnant from last year. emily: we are going to get the report for the third quarter

before the fourth. we will get the forecast for the holiday quarter. what are you expecting? >> we're expecting higher asp. as mark was saying, it is going to be the story for earnings. we are looking for four things. iphone asp, china, services, and guidance. in terms of isp, apple is raising prices significantly. that seems like a source of upside for the quarter. china is a different story. china has been on a tear. 20% revenue growth for the past two quarters. in the september quarter with the dollar depreciating 5%, in a situation where you have price increases, how does demand shape up in that type of environment? for services, that is how we

want to see -- guidance will be very important. we are conservative on iphone units, but we will look for $94 billion in revenue. emily: tim cook has come out swinging at companies like facebook and google, criticizing them for their business model, how they are profiting off data users share. mark zuckerberg hit back on the earnings call talking about how i message is facebook messenger's biggest competitor. also playing up whatsapp being encrypted. and that apple stores i messages for chinese users on servers. what did you make of that? >> zuckerberg is right. one of the under told stories of apple is how hypocritical it is that they are storing their data in icloud in china. they have not been clear about where that is being stored. there are indications that it is

from companies that are state-owned. it is not entirely clear at this point. he raises a good point about i message and how sticky that is hardware sales. the most fascinating thing i am looking for in apple results is services topping $10 million for the first time in a quarter. keep in mind how impressive that is, given apple has not done anything new in services for a number of years. imagine what happens when they start doing new things in the category. emily: does the threat of whatsapp or facebook drawing a line in the sand between imessage and its own messaging service concern you? >> service is the reason you on wn this stock. we are not concerned about whatsapp. you look at something like apple music, three years old, you

compare that to spotify, it took them 12 years to hit 83 million subscribers. it underscores the power of distributing services inside of apple's ecosystem. we think apple music is a subpar competitor in the category. as apple rolls out more services over time, we think services and 2022ltimately by fiscal account for 22% of revenue. the kicker is these are internet software services. as the business shifts towards those businesses and away from thinkrdware business, we investors could be rewarded with a higher multiple. if that is the case, you are talking about a services business that could be worth yearper share by fiscal 2022. emily: we will be all over apple earnings tomorrow. thank you so much. coming up, the ceo of salesforce joins us, talking about san

francisco's homeless problem and why he is supporting the controversial prop c. that is next. this is bloomberg. ♪

emily: it's less than a week until the midterms. in san francisco there is another issue on the ballot. on november 6, voters will decide whether to boost funding for homeless services through a special tax. it would only apply to companies with revenue over it could $300 million. generate $300 million in additional tax revenue per year. the proposal has split opinions among san francisco's tech names. joining me now is a supporter of

prop c. >> thanks for inviting me. emily: you split with them some of your tech peers. you split with the mayor of san francisco. why are you so out front on this? >> just walked outside the door here. we have a very serious homeless crisis in san francisco. it is getting much worse. we have 1200 homeless families each with two kids. how are we going to get them off the streets? it is getting worse. it is a problem. we know it. that is why i am voting for prop c. emily: what about the unfairness others are citing? jack dorsey says there is an unfairness i see as my role at square. companies like square would be taxed at a significantly larger total contribution then much larger companies like salesforce. >> what i see is a crisis of inequality in san francisco. that is what is striking to me.

we have 70 billionaires in our city. that is incredible. we have companies with hundreds of billions of dollars in market cap. salesforce, we are the largest employer in san francisco. not just largest tech employer, largest employer. we have a $100 billion market cap. twitter with $20 billion. pe worth the amazing thing $20 billion. is, these companies can afford it. for us it is just a $10 million tax. $10 million doesn't mean anything. these are immaterial amounts to us. that is less than the private plane jack dorsey flies on. it is the money that we need to make a difference here in san francisco. emily: jack dorsey is saying at a certain point for square it becomes unsustainable and they will not be able to stay in the city. which, in his words, would be

heartbreaking. what do you say to that? >> that is what i see with the homeless. the homeless are not getting the treatment they need. they need shelter, they need mental health treatment. they need treatments for their addictions. kids who are on the street, that is the most touching part. these kids have to get into homes. we know how to do it. we have been running successful programs here for the homeless for years. i have been involved with them. i found we know how to do it. we need more funding now. i was just on the phone with the mayor. she needs emergency funding of $600 million from me to get a shelter open in the tenderloin because she is out of money. if you look at other supporters, nancy pelosi is supporting this, dianne feinstein is supporting this, jackie speier is supporting the spirit not just me, chuck robbins who is the ceo

of cisco, we are all supporting it. basically the region's, patient's largest tech employers right here, we are both supporting prop c. we think this is right for business because homelessness has been so tough on our business. emily: the mayor has made this one of her big issues and she is not supporting it. she thinks there should be a regional, more structured solution. shouldn't she have a say? >> of course this was created before she became our mayor. this was put together by our city's very top homeless advocates. the people on her staff have been involved in putting this together. our top homeless ngo's are putting this together. worked in salt lake city and our national vet programs, getting them off the streets, have put this together. i think it is the right thing for our city.

big business pays. consumers don't pay on this. it is just the top 50 businesses in san francisco that will have to pay a very small tax. but to deal with our number one issue, that is why i am supporting prop c. emily: i know you have tried to raise money for this privately. you have tried to raise money for other issues presently. how much does this come from your frustration that other leaders are not doing their part? >> thank you for opening that door. we are constantly raising money here in san francisco. you have helped us out quite a bit. thank you for everything you are doing and thank you for what michael bloomberg is doing. mike bloomberg may be one of the most generous people in the country, has given over $6 billion of his fortune away. here in san francisco, we have our own philanthropic needs. when we had the north bay fires a year ago, we raised $40 million. the people complaining about this did not complain about that . we now have hundreds of families

streets in san francisco with this program. they did not give us any money for that. we had our sf gives programs with tipping point to raise money to those most in need in san francisco. the only thing these guys are giving money to is the opposition to the proposition. that is the first time they have given any money do anything in san francisco. i guess it is good they are giving. emily: the country cannot seem to catch its breath ahead of the midterms. the pipe bombs, the debate on social media. shootings. what do you think can be done? would you like to see twitter go back to real names? >> i would like for people to open their hearts when they walk down the streets and you see homeless adults on the street, you say for the grace of god go there i. san francisco was built on the patron saint, st. francis.

he had a great phrase, he said, in giving, it is received. that is how i look at proposition c. the c in my mind is for compassion. the c is for charity. this is the heart of what we do in the city. if you want to make the world better, it is time to start giving. that is the best way to let people know we are caring about them. emily: you have taken a hard line on other companies like facebook, and he said that caused your troubles in your own friendships. has been done the same? [laughter] how are your relationships being affected by this? marc: the most important thing is i feel like i need to speak my truth. sometimes that means speak truth to power. i have had a lot of tough phone calls from executives to get very unhappy when i say something like facebook is the new cigarettes, it's not good for you, it's addictive. it is being manipulated.

others are trying to get you to use it in ways you don't understand. all of that has turned out to be true, and much worse than i ever imagined. that is a tough conversation. this is a tough conversation where i say business is the greatest platform for change. we can fix the homeless situation in san francisco right now. all we have to do is vote for proposition c. it is immaterial to our business, the financial numbers, but homelessness is material to my business. emily: apple ceo tim cook has taken on facebook and google how they handle user data and privacy. mark zuckerberg hit back at that on the earnings call. who will be on the right side of history in this privacy debate? marc: tim cook is on the right side of history. he and i have called for national privacy law here in the united states. we have gdpr in europe that is doing a fantastic job to protect european citizens.

they have more protection and control than any other region in the world. we need that in the united states. the privacy debates we are having in our city, we wouldn't be having them if we were in paris or london or munich. we need a national privacy law in the united states. we need some of our great senators and congresspeople to say we will write this law and get this done. we are trying to abdicate for that. -- advocate for that. right now our data is being misused in ways we don't understand. all that needs to come into the light. companies need to address their core values. what is the most important thing to facebook? what is the most important thing to salesforce? for us, it is trust. nothing is more important than the trust we have with our key stakeholders. that includes our customers, partners, shareholders, and of the homeless. the homeless are a key stakeholder of our business.

what matters in san francisco matters to me, and matters to our employees. even when they are home from work, it is becoming more difficult. that is why i am voting for proposition c. ceo, morew you are co- freedom, will we see you taking on more of these issues? marc: i have been taking on issues like this. [laughter] how many issues have we talked about? that is part of what salesforce does. we fight for the quality of every human being. we believe that when one of our impeded by aers is law or a company that we have to step in. that is why i am supporting proposition c. i strongly feel that our key stakeholders, our employees, customers -- i was even on air

with another journalist and that journalist was assaulted in a walgreens involving a homeless person while they were here for dreamforce. you know that should be something i should be involved in. i receive lots of phone calls from customers all over the world saying hey, what is happening in your city? i am sure you have your own stories and personal experiences. people come out of town to see you as well and come on the show. we are all hearing the same thing. san francisco needs to make a change. we needed now. it has hit a tipping point that is why i am supporting proposition c. emily: i want to ask you about google under fire for how it mishandled sexual allegations reports,new york times promoting certain men, giving them exit packages while women get sidelined or pushed out of the company. where did google go wrong? marc: every company should look square in the lens. this is something you will hear

from me many times -- gender equality. when will we start to treat men and women equally in business? that is about equal advancement, equal pay fority, women, and also preventing sexual harassment. that is a tone that has to start at the top. emily: you said you have fired some good people because of improper behavior. marc: of course. i have zero tolerance. you have to set the tone from the top. what do you care about? equality is very important to us. it is one of our core values. as part of equality, you have gender equality. when we look at the women in our company, we are trying to give them the support they can have to fully actualize themselves in the workforce. when it comes to this issue, you have to have zero tolerance. you have to see these huge settlements, i think it sets the wrong tone. i can see why employees are walking out of the business. by the way, they are not just

walking out of google. you saw executives walk out of facebook. uc employees and executives walking out of other companies. i have said that on this show and others. e said that during my dreamforc keynote, employees are more empowered than ever to take action. social media makes it possible. on key issues like this and others, good for them. i listened to those employees as well. i set up an office of ethical and humane use at salesforce. i want to be able to have a conversation with our employees whenever they have a question about our ethical tone and tempo. are we doing the right thing? we are not always going to do the right thing. we will have to adjust. over 20 years of salesforce, we have made a lot of adjustments. my friends who are ceos, we just had a meeting of the top 100 ceos in the country, this was part of the discussion. we had a panel on gender equality.

this is really important. emily: some would say salesforce is offering new ways to collect data on users. maybe it is a little bit hypocritical of you to be talking about privacy when this is something a lot of companies do. where do you draw the line? marc: the most important thing to us is trust. nothing is more important than the trust we have with our employees, customers, partners, even our city, our community. can i look you straight in the eye and say we are doing everything we can to have the most trusted relationships? if there are things that come up with salesforce, and there will be in the future, and has been in the past -- then we have to address those things. we will try to do the best practice and be on the right side of history. emily: thanks for being on the show, always. we should note mike bloomberg is the founder and majority owner

of bloomberg tv. coming up, how employees are responding to another allegation next. this is bloomberg. ♪

emily: a top executive at alphabet's experimental moonshot

unit left the company after it was reported he was accused of sexual harassment. he was a director at the lab which came up with futuristic projects like delivery drones. bloomberg has learned he left the company tuesday without severance. the volatile departure comes as google grapples with a new york times report that it gave some executives multimillion dollar payouts despite allegations of sexual misconduct against them. employees are planning a walk out to protest the company's thursday handling of executive misconduct. $145 milliond dollars into propertyguru. the financing will help propertyguru take full control of a vietnamese real estate site. for kkr, propertyguru represents a series of deals in southeast inga, including a ride hail service and payment app in the

philippines. that does it for bloomberg technology. tune in tomorrow for full coverage of apple results after the bell. i'm emily chang. this is bloomberg. ♪ . .

announcer: the following is a paid presentation for lifelock with norton. >> look around, so many of us are on phones or laptops, on public wi-fi, shopping online, filling out forms and applications. in the connected world we live in, our personal information is everywhere. we enter our names, birthdays, passwords, social security numbers online. what happens if that information gets in the hands of identity thieves?