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tv   Bloomberg Technology  Bloomberg  November 9, 2018 11:00pm-12:00am EST

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♪ >> i'm alix in new york in for emily chang and this is "bloomberg technology." the biggest shopping spree in the world? not black friday, it is alibaba's singles' day this weekend. we speak with the president. plus, the race for amazon's second and potentially third headquarters is reportedly narrowing. while there is excitement in the cities on the shortlist, are they ready for the giant to set up the digs? we will see what is next for hq and what that means for
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transportation and infrastructure. 2018 has been an incredibly strong year for tech ipos. what does the future hold? a look at 2019 ideal outlooks later this hour. alibaba's annual shopping event happens this sunday. the singles' day extravaganza brings in roughly twice the value of black friday and cyber monday combined. "bloomberg technology"'s selina wang caught up with the president and shanghai and asked if trade tensions would impact the final sales numbers? >> 11/11 is not an event that relies exclusively on anyone market. the u.s. or any other markets around the world so we will be working with over 200 countries and regions as part of this enormous event. so, we do not expect anyone area to have a huge amount of influence other than china. we are not too concern of trade
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tensions between the u.s. and china as it relates to this specific event. in terms of the china economy, there is more concerns being expressed today and uncertainty about what will happen going forward. having said that, an economy growing at 6.5% is an economy growing well. we reported earnings and we talk to people about some softening in the big-ticket items like consumer durables, washing machines, televisions, and big-ticket items like automobiles. in other sectors, particularly in things like cosmetics and food and fashion and apparel, we still see a very strong growth. there will always be cyclical impact that we will have to deal with. the long-term secular trends are big part of what we're focused on with more and more people coming into the middle class over the next five years. about another 300 million and more of our business incorporating online and offline
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so that is expanding the pie in which we are participating. we feel pretty good and our 53% revenue growth seems to confirm things are holding up nicely. >> i want to zero in on american brands which are hugely popular on the alibaba platform. they generate significant sales on singles' day. do you expect sales to be lower as a result of china retaliatory tariffs on u.s. goods and as well as somewhat dampened consumer sentiment? >> i'm not expecting those sales to be lower at all. there are about 10,000, a little more than that, american brands on our platform. we love them. more importantly, our consumers love american products and american brands. we are, for this event alone, we have 180,000 brands. chinese and from around the world who are going to participate. any single market or brands within a single market will not -- market, including the u.s., will not have a significant impact on the overall result,
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but we are very excited about the brands that are participating whether it is johnson & johnson or any of the other u.s. brands that are going to be showing up this year because their products are used -- are in huge demand by chinese consumers. >> we are days after the midterm election and it would be great to get your thoughts on the interpretation of the results and how it might impact a potential trade deal when xi and trump meet at the g20. >> those election results just happened and i have been over here. they do not get as much play in the china market as in the u.s. market. both parties did pretty well and it is far too early to tell how that might have affected. >> the chinese government has been cracking down on internet sectors. we see tighter regulations.
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what has been the effect on alibaba and how are you managing that relationship with a chinese government? >> the relationship with the chinese government and alibaba is similar to the relationship we have to have with government all over the world. we have to listen to their concerns. data is a big issue over here. technology is a big issue in all countries around the world. i spent a lot of time with governments over the world and i hear the same things from them. the same concerns and questions as we here in china. i don't think it is particularly special about what is happening in china, other than the fact that this is a big market and technology companies are large. the same is true in the u.s. >> alibaba has a clear commitment to expansion in southeast asia, but what are you focused on in the u.s. now that jack ma has said the one million jobs plan is no longer a priority here as well as geopolitical tensions? >> first of all, it is not just our globalization plans in
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southeast asia. we have a big business in southeast asia and we have embassies responsible for cultivating local markets all over the world. we have a business in south asia, india, a very large business in russia and we purchased a business in turkey. we have businesses all over the world. our opportunities in the u.s. remain significant, but the biggest opportunity is to import american products for the chinese consumer. i do not think it is correct to say jack has given up on our initiative to create jobs in the u.s. for small businesses. our small businesses activities in the u.s. have been extraordinary. billions of dollars of products for thousands of small businesses we have sold to chinese consumers in the first nine months of the share. we are very proud of that.
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it is a little more difficult if tensions between these two governments continue because we do not want to get caught into the middle of the geopolitical discussions when we try to do corporate business. we continue to work hard for small businesses in the united states and we are proud of our results. >> alibaba has partnered with starbucks for coffee delivery and boosting its digital brand peasants in china. do you have other partnerships like that in the works with big u.s. brands? >> as you know, we have thousands of u.s. brands on our platform. we look to think very carefully about what opportunities exist. starbucks was something we worked on for a long time. kevin is very pleased with the results, and you can see it reflected in his stock price. that is just the beginning of the type of relationship we want to have with brands thinking not just about what they can do in the china market but in markets around the world. as you saw recently, we also announced a terrific partnership in the luxury sector. that affects not just them and
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nat but all of the 950 brands in the stable, many of which are luxury. those represents huge opportunity for consumers and for us to think about strategic partners with them in the future as well. >> just throw quick, you are a partner at goldman sachs running operations when one of these scandals happened. in retrospect, what could goldman have done to avoid this? >> i have been out of goldman for more than five years now. i'm not involved with the investigation or anything happening to it. i think it would be best to speak to goldman sachs about that rather than me. alex: that was the alibaba president with selina wang. coming up, amazon's potential arrival in long island and crystal springs, virginia. the company says its new headquarters could bring in 50,000 jobs, how would the arrival impact commuters? if you like bloomberg news, check us out on the radio.
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♪ alex: onto amazon in the cities in mind for its next headquarters. bloomberg has been reporting that amazon is in talks for a second headquarters. in both cities, excitement surrounds the potential for 50,000 new jobs and $5 billion of investment. while real estate developers and businesses expect an economic boom, some people are worried about what amazon's arrival might mean for transportation and city planning. in new york, there are more than
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5 million people riding the subway everyday. many expect amazon could bring delays and closures. hereto discuss is the cofounder of city five. he served as commissioner as the department of transportation -- in the department of transportation 40 feet -- for dc. how big is an influx of 50,000 employees going to stress the infrastructure of the cities? >> it really depends on how close people live to where they work. the nice thing about crystal city, which is the place they are looking at outside of dce, one metro stop outside of it, there is a tremendous amount of high density housing there. there's a lot of office space and there is the opportunity to build more or even repurpose some space. i think that bodes very well,
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but additionally, because we are a tri-state area like new york, there is the opportunity for people to live in washington dc or maryland and take the metro. we definitely need to put more resources into public transit and public transportation, and we now have a dedicated tax for that which i think is probably one of the things amazon is looking at. the idea they might split 25,000 in queens and 25,000 in crystal city also takes some pressure off of the system. alex: when i think about amazon's presence in its main hq in seattle, they have helped with funding some of the transportation and building some of those things. how much is the private part of that partnership important when it comes to dollars being put toward more transportation infrastructure?
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gabe: that is a great points. in seattle, you have the combination of amazon reinvigorating an entire part of the city and good city planning. a good friend of mine ran the seattle ran the department of transportation and had a, close partnership with amazon and the result of running public transit chicago, putting in separate bike facilities and other things that they did, led to not a lot of pressure on the transportation system. a lot of people say they're not transportation problems, there are ladies problems with transportation systems the more people -- symptoms. the more people we can get working close, the more pressure off the system.
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alex: i lived in new york for five years and i can tell you there is pressure on this system. subway delays happen more and more often. when it comes to land use, long island city is in a bad spot. can you talk through what you have seen in some of the cities close to new york or others in terms of bike sharing and jumping on the scooter craze we're seeing? gabe: in many cases, we are over thinking the solutions to the problems. when you look at 60% of trips in urban areas being less than five miles, when you look at 60% of trips less than a mile being taken my car, there are obvious solutions to that. i was able to work on putting in some of the first big bike sharing systems and they are absolutely essential. bikes, scooters, electric, personal, shared options are crucial. it is a much smaller envelope and it is easy for people to use. it is zero or low emission, and puts much less pressure on the system.
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you have elon musk building loop underground and all of that. i like the idea of long, underground or above ground transportation, but in cities we have so much space we can reallocate away from single occupancy automobiles into more efficient modes. alex: you perfectly opened the door for me. the exchange we saw earlier on benioff off of elon musk's tweet. benioff tweeted at elon musk asking if his boring company could do that. is that a reality? do we see that in the next couple years? gabe: i'm supportive of the private sector jumping in and utilizing technology particularly to make government's life easier and citizens when it is in partnership with governments. when you think about tunneling underground or high-speed rails above ground, i'm agnostic.
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anything we can get funding for, i'm fine with it. when it comes from one to 10 miles, we have such an efficiency when it comes to using our existing ground transportation system with single occupancy cars everywhere. i think elon and the market should know that with autonomous vehicles, autonomous connected shared vehicles, we will free up up to two thirds of our capacity on the roadways. we might have too much capacity and not not enough. alex: you have worked with a lot of cities, what is the number one thing that was the lightbulb moment that you have seen from the public sector that they were like we need to do this? gabe: there is a bunch, but i would say looking at these cases and figuring out if somebody is traveling a mile, two miles, three miles, what do they need?
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listening to the public. one company sold to ford and i think you have car companies waking up saying wait a second, people are screaming for this stuff so whether you are a government or the private sector reinventing your business model, let's look at what people are asking for. they are asking for simple, high-quality, inequality, low emission solutions. alex: cityfi co-finder, gave klein, thank you for joining. apple and amazon have struck a new deal to get the newest iphones into the hands of amazon customers. the company reached a deal to bring prime video to apple tv's. now the latest iphones, and accessories will be sold on amazon's website. the new deal does not extend to apple's home pod speaker which competes with amazon's echo. coming up, is the investor love affair with tech stocks over? we will look at what is next for faang stocks.
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♪ alex: tech stocks have been the big losers in the global equity route, but what can we expect in terms of her readout? investors focus on social media's role on higher interest rates and the war in trade with china -- are you seeing any ebbing of the worry around tech stocks right now? >> what has been interesting is that even off of the balance u.s. stocks got off of the october 29 low, tech helps lead the way. but then you look at derivatives markets and the nasdaq 100 equivalent, the accent, the spread between the two stayed
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elevated even as stocks led higher which suggested that whatever equity story -- whatever the equity story is, it is how much we are willing to pay going forward compared to the average stock. the answer has been less on every pullback. alex: to me, from the investor sees, those seem like obvious questions. things have been a little inflated in terms of the answer. what you think is mostly driving perhaps a bit more caution when it comes to the premiums they are slapping on these? luke: i think the rise of interest rates happened and nothing seemed to happen for a while. we have to discount future cash flows by these higher interest rates. when you look at long duration aspects, a lot of the expected earnings are at a terminal value x years down the road and x is a long way out.
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when they finally turn on the switch from growth to profitability. that is kind of your model, the incremental rises in interest rates. i think it is a factor of that and also this notion that value stocks have been out of favor for so long that you have had a growth momentum play going for a while, and factor rotation seems to be at the heart of the move out of tech stocks that you did see throughout october. alex: it seems to be the biggest names. i watched the ipo sectors closely and those growth stocks have been doing well. in terms of the facebook, apples, netflix, and alphabets of the world, have these been overcrowded? luke: i think that is exactly what distinguishes the selloff we had in october versus february.
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february was a systemic correction in terms of everything happening at once. it was very panic selling. this one was fund managers who are getting slaughtered and all moving out at once. it was much more orderly and because of that's, you did not see quite a big spike in metrics as you saw in february, but very painful. alex: i'm curious on the timing. we move into the and of the year here. investors do not like to make sudden moves toward the end of the year if returns are looking good. this rotation out, is this anything have to do with the end of the calendar proving those year-end returns? luke: i think it is more of a double-edged sword the net. it is a matter of locking in gains if you were able to get out before a lot of the carnage. at least you would have something to show by your end. a lot of managers were trying to protect gains, so i think that
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played a role in why some are out, however, the flip side of the coin is that fourth quarter's and after midterms have tended to be very strong. there is still this idea that we get a big day to chase and fund managers would reply lynn these big highflying names in an attempt -- would re-pile in in these big highflying names. it is really a case of nothing is working but tech is getting hit hard on down graphs. alex: you seem surprised that folks have not looked back to these stocks after the earnings cycle now that we are past the midterms and have clarity on what the government will look like. why do you think that has not happened? luke: i think it is a bit of what we saw in these couple sessions after the midterms.
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one at wells fargo -- one person at wells fargo had a good analogy that when you have high volatility options for a company stock before an event, this is pretty much the same thing. it is an earnings reports but for a country. once a country. once the volatility event passes, you get a runoff but it is back to normal. it is still the same question people have not been able to answer on how much we are willing to pay for these if we approach in and to the cycle, and we think these things are economically sensitive. the idea that some huge advertisers are economically sensitive, i think we throw that one in the been. alex: i know you will continue to watch the faangs and the rest of the markets going forward for the rest of the year. thank you for joining us. 2018 has been quite the year for tech ipos. could 2019 be even bigger? we discussed the most into -- the most anticipated tech ipos, next.
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♪ >> this is "bloomberg technology." 2018 has been an incredibly strong year for i.p.o.'s especially in the tech center. and in 2019, we could see some of the most high-tech i.p.o.'s dropping hints. joining this now is the germ partner at bullpen capital. i'm excited about going public. but there is a lot in san francisco that is happening around this space. in terms of this change in momentum, when everyone was saying let's stay private as we can.
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what is the catalyst to come around to get out and enlisting? >> the companies are getting mature. it's about time for them to go through public. i have through three of these cycles and had many, many more i.p.o.'s. next year might be a good year. won't be a great queer. we should be saying three times the number of i.p.o.'s we are seeing right now. >> i want to tap into that historical knowledge that you have. you have seen a few of these cycles. i get the question with this many companies going out, does this foreshadow a bubble like we saw in 2000. this is the last time we saw companies getting out the door. does this foreshadow some bubble? >> not at all. we had many more i.p.o.'s in 2015. 2019 won't exceed in numbers.
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i had two in the bubble in the 1990's. i lived through. we should be having many, many more companies going out. we made on it difficult to go public. most people stay on the sidelines and instead of taking money from these megafunds, this just locks them up for a much longer time in the private markets. i'm a fan of tech companies being public. i would think if uber had gone public years ago, travis would have been policed. we wouldn't see a huge fallout. i'm a fan of companies getting out in the public markets. they are better regulated and better understood. >> that governance issue is one that has been brought up more often these days. company look for acquisition capital and doing it now.
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in terms of governance, when you talk to portfolio companies who are looking to get closer to listing, what are the top things in mind, moving to the big leagues, these are the things that management needs to be focused on? >> steady earnings. predictable earnings. they have to upgrade the financial side because you have to deal with sarbanes-oxley. and the third thing, they have to stay long-term. look at apple, google, they didn't go to quarrel earnings or short-term but stayed long-term in the research in planning and development. number three is overlooked and the most important thing of all. >> when you do thing of general sentiment, public tech companies, those stocks have been hammered over the last few weeks and doesn't seem like they are getting reprieve. how much does watching the
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facebook, apple, change the decision making process for management teams that are looking to go public? >> it shouldn't change as much. the signs were overvalued in incredible companies. if you look at the tech sector today or even a few months ago and compare it to the 1990's, the disparity of valuation to earnings is much, much lower today. these companies are not in any way bubble stocks. i just think we are seeing a normal rotation out of one sector that has gotten too big into other sectors. i don't think it indicates trouble. >> do you see this as potentially a buying opportunity for companies whose valuations are depressed? is this actually a plus that things are potentially a little cheaper?
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>> i think it's a real plus for the next layer down of companies. we are having, as i said before, companies have gone public or going public. some of these will generate incredibly strong earnings. i would focus on them. the leaders of the leaders. future companies with more appreciation baked into them. >> a lot of them are consumer tech and not electric consumer tech. and bread and butter has been out of the enterprise. we are about to have a big moment with uber and lyft and airbnb. why do you think consumers are having this moment of companies timely being up to the maturity that could be the next big public company? >> they are extraordinarily well-run fast-growing companies. it is extraordinary. the rate they are generating our lives is mind boggling.
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the scooter companies will get to this point. we are seeing a complete transformation of mobility. it's why they deserve and getting high valuations. there is a lot of good companies going public and more going out. some of them in the security area, and these companies are being well valued, but very steady predictable earnings companies and not on the sexy glossy companies that get all the head lines. >> we do have a name that a lot of folks are excited about. they are looking to list. they are a competitor to survey monkey. in terms of software service companies, when you break down under the hood of what sectors will be busier, is it security, is it software or these type of applications?
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what gets you excited? >> some of the security ones get me excited. and we have a few in the future. but the other is core enterprise applications. there are things like workday is a big company with h.r. i would look there. security is actually invested in. in effect, it's too competitive. a lot of the core enterprise functions are really solid and could have a strong lock on the market sectors. >> the last time three 11 u.s. public companies, it was when clinton and apple was worth less. can you say how jazzed you are for listings in 2019? >> i'm jazzed 7, or 8. i'm not jazzed in the quantity getting out.
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to give you an example, one of our companies we decided to take public in australia. why? they are friendly to the retail investor and shouldn't overlook the fact that we changed the game. you put $10,000 in amazon, you are worth to $150 million. you can get rich off of tech. and we made the changes to i.p.o.'s and became an insider game and the retail investors were left. we went to australia, because they are a retail-friendly market for i.p.o.'s. >> duncan, thanks for joining us. the stanford university cardinals are coming off a close loss to washington. but claimed victory over its rival schools.
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plus guarding against cyberthreats. we look at tech is keeping the cyber world safe. this is bloomberg. ♪
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♪ >> after serving more than to000 nba students in 2018 find the best schools in the u.s. a west coast institution has shaken up the ranks and the winner was stanford, which jumped up five spots from its ranking last year to beat out
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morten and harvard. earlier we caught up with carol massar and jason kelly to find out how big a role tech played in the university's rise in the rankings. university's rise in the rankings. >> is definitely plays a big role in terms of here we are in the heart of silicon valley, surrounded by well-known tech giants. entrepreneurship was one of the main indexes used in ranking the nba programs around the country. and stanford is ranked number one for entrepreneurship and networking and ranked number one in another category. but it was interesting. but entrepreneurship is a key part of the component and rankings. >> are they tapping into any new technology. companies seem to be getting on a.i. and data analytics. are we seeing it as well? >> they are investing heavily in that and one of the things that came up in that regard as we
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have been talking to people here is this notion of corporate entrepreneurship and marrying innovation and sort of the out of two guys in a garage and into the bigger tech companies, whether it's the established tech companies or a more recent giant like a facebook, google and the like. >> and compensation was the other index that was important where stanford ranks number. and we caught up with an associate dean and he is involved in running a program called ignite and works with entrepreneurs who are interested in starting business. it is a mini m.b.a. program. they are thinking about people out in the world and hone their skills if they are thinking of starting a business. it is front and center. >> where are they sending these new graduates?
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i think of engineers who are going back to learn leadership skills. what are the end goals for students that are going to get their m.b.a. from stanford? >> we possessed that to the dean because ultimately, these schools are judged on where the graduates go. this is an investment after all. this is not the sort of program you come to find yourself. you want to invest and get a good job and posed that to him and here's what he had to see. >> the traditional career paths for m.b.a.'s, that has changed dramatically. we have graduates that go into more than 300 different career paths. and when you have that, it's about preparing them with the core skills of leadership. it's been technically savvy and well-founded content and at the same time having the leadership skills, having the team community building skills that
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are going to be lick cabble. >> it is interesting to hear the dean who talked about leadership and it is so timely when we talk about political and corporate leaders. there is so much divisiveness around the world that the importance in today's business leaders, that was important in their program at stanford. the graduates in the financial world, a quarter of the graduates go into the tech community. it is the second most area of business that the graduates go with. it is a big component. >> obviously, this is a new world that doesn't send graduates into wall street. this is the hot place to be and one of the reasons why stan ford is number one. >> now to europe, founders and c.e.o.'s of tech companies even
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heads of state looked ahead to the innovations. we sat down with twitter co-founder to talk the future of tech regulation. >> the system is working really well. what we have figured out in the last year and a half is to open an open platform that allows anybody to come along with a story or idea and help us find the right awedens and combining it with teams that will both contributes content and what professional writers and that goes to the wall that is driving subscriptions. the challenge right now, the focus is to scale that in all ways to really work on personalization is a big part of it and helping people finding
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the stories of what they care about is the big focus and then we are hiring a lot as well and it is a competitive market. >> how do you deal with fake news? >> fake news -- we actually choose to have this layer, which i mentioned. everything we distribute on medium, anyone can publish on medium for free. there are bad actors and people, not just fake news, but low quality or spasm. we don't distribute anything on medium unless it has been seen by -- and you are directly following it. there are cases and we are hoping there can be if we are made of it we have a trust and
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team, we will take it down. >> has twitter done enough to combat fake news? >> i'm still on the board of twitter and still in those conversations. there is more to be done at twitter. and other platforms. i think there is a major effort i can tell you. >> do you think that they did enough to prevent some of the undue influence that we had in the elections? >> i haven't heard the full report on that actually. >> how do you rate his performance as c.e.o. can he handle along side -- >> having another job? >> yeah. >> i think people are skeptical of that. i'm impressed of what he has done. the company is in a much better place a couple of years ago when he took over. and there is a lot of external evidence that that is true and when you talk to people inside,
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that is absolute. >> some people like alex jones in the space. do you think industry can self-regulate if they collaborate more together? >> i think collaborating is important and could be more collaboration. and i think everyone's interests are aligned not just for the tech industry, but for the most of the humans i know in silicon valley are aligned not necessarily politically. i think that is overblown that they are all on viewing things the same way. but people can recognize bad actors and not good for platforms and not good for humans. so i think twitter is in a little different position than the other platforms when it ca
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came to alex jones and ended up eventually removing him. but they made their own call on that. it wasn't because of apple or facebook. >> coming up next, brett clark on a potential takeover and how the cybersecurity firm is stepping up its cybersecurity efforts. this is bloomberg. ♪
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>> the tension between the u.s. and china keeps on intensifying, from the protection of ip to supply-side attack that espionage. to get the latest, selina wang said down with greg clark, had a symantec, to find out if he sees china as a cybersecurity threat. >> china has been attributed
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with many pieces what we call a persistent threat over the years and i have the agreements that president obama made with the chinese government was a landmark one. we have seen an increase in activity in recent types after that. but i think we are in a situation where nation-state espionage will continue and we have to stay diligent how we protect ourselves against it. >> he has invested heavily in cybersecurity and that a private equity firm was interested in taking over your company? >> that is speculation. >> what can you say about strategic options? >> we take a long view and we are here for the long view and invest in technology in our employees and customers. and sometimes we get some headlines. >> after this investor took a
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stock in the company, what has their impact been? >> the individuals are excellent. we have been working very well with them and i think we are happy with their contribution in the board room. >> you have been happy with the contributions? >> yes. >> can you tell us about the direction they have had on the direction of the company? >> dale fuller has a great background in security having coming from mcaf emp e and rick hill is a solid operator and enjoy their contribution. >> analysts are speculating that they may struggle and now that the internal audit has closed up and starboard is part of the company that they may push for the company to consider strategic options. >> we look forward to delivering on the guidance in the last
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conference call. we have a good setup in our products and technology and the members are a great add and i think we are focused on our customers and the future of the business and happy with how things are going. >> there has been huge scrutiny, especially on privacy data breaches. now we are seeing gdpr, how affected do you think that policy is? >> data protection is something that corporations care about. you are responsible for users and employees, customers and guests. and when you are a cuss towedian. we make some powerful data protection technology and we look forward that companies take care of their data. >> i'm sure cyber warfare have been driving security. what are some of the biggest
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emerging threats that companies need to be aware of? >> i think trade craft changes and there are methods for breaching companies. and it's important when you think about security, look at their investments, where they are investing and things that are important. we do over the horizon research what is going to come next after that. what happens in the supply chain now with software? what happens when everything is mobile on closed operating systems and when there is a docked internet. as we go forward, we will see many changes. and the kind of things we need to protect will be different. we look forward to being a long-term cyber defense partner for all of our customers and the normal citizens in the world and consumer bands and it is a vibrant road ahead.
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>> and that does it for this edition of "bloomberg technology." on monday we will be in half moon bay with an exclusive interview with microns ceo.
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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. >> the following is a paid
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program. the opinions and views expressed do not reflect bloomberg lp, its affiliates or its employees. >> the following is a paid advertisement from time life. robin: my name is robin williams. >> hold onto your hat. robin: for those of you on acid, this is a frisbee. >> the time has come for an epic entertainment event. it's mind blowing, it's jaw joe-dropping, and most of all. >> it is genius. >> genius. >> comedic genius. >> time life proudly presents a once-in-a-lifetime collection in the making. robin williams, comic genius.

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