my name is antonio and i'm a technician at comcast. we're working to make things simple, easy and awesome. >> i'm selina wang and for emily chang. this is "bloomberg technology." in the next hour, a shakeup in the payment space. apple and goldman sachs are teaming up for a credit card. can the companies dominate the syntax based? plus, lyft is ramping up its ipo as well as pinterest. and, the global race for 5g. president trump wants telecoms to embrace the new technology,

what will give the u.s. an edge? we speak with an sec commissioner. first, apple and goldman sachs will test a new credit card in the next few weeks. employees willed try the card first and consumers will come later this year. it's part of goldman's push into consumer finance. joining us now is julie, who covers all things syntax. also is with us is mark gurman who covers all thing apple. julie, we have known for a year that this credit card was happening and this is a crowded space. how will this work and how is goldman and apple going to set it apart? julie: it sounds like that they are trying to leverage the brands coming together and there is probably a lot of customers for each side that i can expect a lot of people that are wealthy kleins of goldman that have iphones. both have a way to benefit from a transaction like this. i want to know more about what

this credit card will offer, because like you said, this is a crowded space. is there going to be great cash back? will you get discount on apple products? probably not. one thing we found out today was --t, from acquiring startups a startup called clarity money, they will try to do more personal finance to go along with this. maybe you can say, hey siri, what do i own my credit card or something like that. that's an idea of what this could look like in the future in ways -- and ways they are trying to leverage technology and finance aspects of this. selina: mark, put this into broader context for apple. is this the beginning of a financial push for apple? mark: i think this is more on the services side. this is apple, after launching apple pay, coming out with its own use case for it. this will be the first time apple will offer its own real credit card in this space for

they offer a debit card with a feature called apple pay cash, similar to been mobile or paypal built into the iphone -- similar to venmo or paypal built into the iphone. i've seen credit card fees up to $1000 per year. this is something, if they charge people, they will likely take a five percentage of that. that would be another way to raise revenues. selina: as sales flow, services revenue offsets that. how important will financial services be compared to news, music, entertainment? mark: apple pay gets pennies on the dollar in terms of the cut, so i think they would get higher percentage because this is their own branded credit card. this is something they could push to users. i would not be surprised if there could be a message in the apple pay wallet app to subscribe to this. apple is coming out with a redesigned version of the apple pay app around april as part of

an ios update. this will likely launch as part of that. selina: julie, this is part of goldman's push into finance. how successful will this be for boosting users in market and other services for goldman sachs? julie: a lot of people don't know about this offering where you can get personal loans and there is a very high interest rate savings account they have. a lot of people don't know because goldman has never had much of a consumer arm. it's not something like bank of america or citigroup where they have done this for a long time. partnering with someone like apple who has a lot of customers could be a really easy advertising way to get the word out without having to send mailers or do ads on instagram. i think that is a big boost for goldman on this. this is a big move for -- selina: this is a big move for goldman sachs. do you think they risk alienating big banks they rely

on for apple pay by aligning themselves with goldman? julie: i think that is part of the risk. the other is that since they never offered a credit card before, it is hard to model what the losses and uses will be. when you have alone, people know how much money they will use, how much they are using every month, how much they pay back. with a credit card, it is harder to point that out and decide what it will be. someone might use $1000 one month and might have a big purchase like $5,000 the next month, and stop using it for two months afterwards. that could be a risk moving forward because goldman has never had a credit card offering before. selina: julie and mark, thanks for your analysis. tesla's model three has lost a company recommendation for consumer reports. position --n lost a

tesla owners have reported issues like loosefitting exterior parts and others. joining us to discuss is bloomberg's chester dobson. what were other things consumers were complaining about? >> there were a range of things. everything from the rear windshield glass, which apparently suffered stress fractures, to things about the trim of the vehicle, how the metal fit together. there is fairly basic things -- there are fairly basic things of the model three not easy to fix with a software patch, which is something tesla has done in the past. selina: tesla said in response to this report that they made significant improvements to many of the areas of criticism. how much progress you think has been made? chester: as you say, tesla said they have addressed in this at the manufacturing level. that does not help the car is currently on the road, but as they ramp up reduction, they

claim this is no longer an issue. we will have to wait until the next round to see, but like i said, with this issue, as they try to expand their capacity and their production line, the type of mechanical issues they face are not necessarily things they can fix with software. this is the type of problem that a lot of automakers face as they ramp up production. with tesla aspiring to produce so many of these model threes, it will be an interesting challenge to see if they have the moxie to pull it off and not have a lot of these problems continue to crop up. selina: shares fell after the report came out, and after several price cuts when it comes to the model three. how do you see this report impacting demand? chester: it is probably not a positive. you are referring to the concern that maybe demand is softer on

the margins, and for people that are maybe not huge tesla fans but are interested in the vehicle and comparing them to other vehicles, something like this does not help. as you mentioned, the stock fell to one-month lows, below $300. there's a little bit of wariness the fairly strong demand in 2018 is going to be sustainable into 2019 and beyond. selina: what i thought was interesting was that the car fell to number 19 in consumer reports, down from 11 spots -- down 11 spots. why such a dramatic fall? chester: that refers not just to the model three, but to all tesla vehicles. it has three production models, and the model x suv had issues in the consumer reports ratings. the model s has had issues too.

they don't recommend any of the three models. altogether, that is what brought down the ranking of the brand so dramatically out of the top 10. it's no longer the best american brand like it was last year. it fell below buick and lincoln in this year's rating. selina: how much weight to car buyers put on this rating? chester: it is hard to say. is seen as areport very reliable source of information. as a mentioneds, before, the ones not devoted to tesla, what are simply looking to compare it to other ones on the market, it could have impact. on the other hand, as we see with tesla, many of the early adopters are all in on tesla. one interesting finding is that

even consumer reports admit the satisfaction ratings with tesla are quite high, in part because people want to buy the car, despite the fact they have had problems. once they start driving the vehicles and encounter other issues. selina: thank you for joining us. pinterest is filed confidentially for a u.s. initial public offering. couldsual search site list for the end of june. no final decision has been made on the plans. interest has declined to comment. coming up, the race to the public market gears up for company -- for ride-hailing company lyft. that's next. if you like bloomberg news, check us out on the radio. listen on the bloomberg app, bloomberg.com, and, in the u.s., sirius xm. this is bloomberg. ♪ sirius xm. this is bloomberg. ♪

selina: will it be the first big tech i feel of the year? lyft could file for an ipo as soon as next week. they will target about you wish -- target ofllion 20 to $25 billion. is bloomberg's ipo reporter and jaclyn. jaclyn, what are the benefits to li being the first one -- lyft being the first one to tell investors how to value a right chilling company -- ride-hailing company. >> because of the government shutdown, there has not been an

ipo in over 15 weeks so there is pent up demand to see a big tech company ipo. i think it will be well received and the company is doing well. they have -- they are doing well in the markets and people really like them. the numbers are good. to add to that, i think a really want to go yesterday because uber is waiting in the wings. they don't want to have a situation where uber comes in and sucks up all of the air out of the room. they are the bigger fish year. they are rushing and trying to get this out quickly. they also don't want uber to define what ride-hailing looks like. they don't want them to define the story. they want to say this is our company, let's focus on the fact that we are a domestic company and not trying to be this global giant. we are doing well in the u.s..

it's important to get ahead of uber. selina: so they have an opportunity to explain why the smaller underdog is a great investment. what have we heard from potential shareholders? is there a lot of interest? >> the people i spoke with are really excited and are eager to see lyft go first. they want them to be out ahead, to set the stage. they don't want uber dominating the story. on the roadshow, we will expect a lot of questions about uber ipo and vice versa. interested in the company. fidelity is already an investor. it will be interesting to see how much they buy into the company. selina: you are an investor in lyft. what did you see in the company back then? >> it was about 2015 when we invested in the company. we have guys at our firm that

look at the numbers. i personally look at the relationships and personalities and story behind the business. hands down, lyft as people -- people want to see lyft be successful. i took a lyft to get here. say greatust can't things about lift and how they treat women and all of their employees and people they ride with. whereally excited to see the company goes and excited for the employees i worked with, the people in upper management. everyone deserves a good ipo. we have been waiting for four years now. selina: both of the companies, lyft and uber are losing money. >> a lot of tech companies are not profitable, but lyft is really working towards increasing their margins. they are trying to increase their market share within the u.s.. they are more streamlined strategy. they don't spend as much money as uber, and they are really

trying to expand socially and consciously. i do think they will get there, but they have to tell their story. they are getting there by expanding and all of the cities around the u.s.. selina: how concerned are you and maybe you hear this from your sources about the risk of regulation and some of these minimum pay requirements in very important cities like new york city? >> that's a good question. you will see regulations in all different companies whether it is ridesharing or the airbnb's of the world. they will all work together. at the end of the day, what they want to do is make transport more efficient in cities. they want to make it efficient and make it worth it and easier for the end-user. i think they will work with cities to make it the most

efficient and do the right thing. selina: i want to touch on pinterest. they confidentially filed for an ipo. was there thinking around the timing? >> they just keep coming. as a new ipo reporter, i feel there is a new one. pinterest confidentially filed and i think they will be one of many that we expect to see go around the summertime. a lot of interest and excitement around them as well. , what: briefly on lyft about picking the nasdaq over the new york stock exchange? >> the nasdaq is a hot place to go for tech companies. it's interesting lyft got nasdaq. it begs the question on where uber will end up. nasdaq is popular for companies for a number of reasons. they are up about 13%. you go to a big splashy presentation when you go there. it makes sense they ended up there and we will see what happens with uber. selina: we just have to wait a few more weeks.

thank you both for joining us. coming up, baidu's fourth-quarter numbers are out. how they have been affected by u.s.-china trade tensions next. this is bloomberg. ♪

selina: baidu gave an upbeat forecast for the fiscal fourth quarter -- first quarter thursday. they projected revenue will rise 2018% as new content and products energize its advertising business. baidu is spending billions on ai and younger services like newsfeed as it sets up rivals like alibaba -- fights rivals like alibaba.

joining us to discuss is stephen engle in hong kong. breakdown the numbers for us. better than expected. we even heard from the chairman, robin lee, saying it would be a chilly time in 2019. i guess he was alluding to the fact that -- fact of the trade war which could affect the slowing chinese economy and have a knockdown effect on advertising. baidu relies more so than its bigger rivals like alibaba on advertising. that's what we were really looking at was advertising spending and the topline growth. fourth-quarter adjusted profits beat estimates. expectingwe were $1.74. a fourth-quarter revenue beat even the highest of the estimates. the consensus was $3.89 billion. it came in at $3.96 billion.

new content and products have been energizing the as business -- add business then even better than robin lee expected. selina: how does the online chinese advertising industry hold itself up against the economic concerns and trade tensions? stephen: what they were trying to do is bolster their advertising business, but at the same time, they need to build out their new services that could complement that and become less reliant on advertising. they want to take the we chat module from tencent and build a super app, and app that could broad -- provides a many other services. services include ai driven content throughout that platform. they are separately building another division, the autonomous driving. they have the newsfeed. another big one they are seeing traction on is the netflix like video service, ite.

it will be a work in progress through this year with tough economic conditions and headwinds on global trade on the advertising space. i'mu, given these numbers, sure they are fairly pleased. selina: in addition to the macro factors, there is new startups, notably one valued at billion dollars, the most valuable start up in the world right now. are we seeing those companies impact baidu's advertising revenue? stephen: absolutely we are. economy is slowing and advertising rates are coming down. startups like those are siphoning off that ad span. alibaba has done well in the advertising space. they had been on the laggard focused ony

e-commerce, but their advertising has picked up. game ons to pick up its advertising, which is why they are mixing in these other services. that is what brought down operating profit in the fourth quarter. it was about half of what was a year ago because they are spending so much on other services and new content. selina: you are talking about the drag on margins as they spend all the newer services, what how are investors to making that? rid --: of the tribe tribrid, tencent has rally, by has withstood the trade headwinds. baidu has been a bit of a laggard. we see the stock already popping up and they are pleased numbers beat expectations. selina: i've been hearing some people say the new b.a.t. is bitedance and not baidu.

thank you for joining us. coming up, president donald trump argued u.s. companies must take the lead in the global race to build the next generation wireless networks. what does that entail? we hear from an sec commissioner. "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. ♪ is is bloomberg. ♪

selena: this is "bloomberg technology." planning goldman sachs the customer credit card. lisa ellis, who covers the payment sector, published a new note on this development and discussed in earlier on bloomberg television. >> this is a co-brand card, another step for apple into the payments world. they already have a prepaid card. they already have apple pay. though, bit, perhaps, unusual that they would be partnering with goldman in this.

synchrony is usually the choice for these cards. that is who paypal wicks -- paypal works with. amazon has a card with them. the goldman piece of it is a little unusual, so it will be interesting to see how that works out. >> is there much of a niche as to why they are doing this? i understand they want more readtions, but did you anything in the announcement that makes you think this is a winner? >> it will probably all hinge on the financial health. things that are embedding into the apple wallet. this will be similar to what

they do with your physical health helping you count how many steps you are taking. sort of dipping the toe into the area of personal finance management. co-brandrms of a itself, there's many out there. they typically are for a deeply niche set of consumers that deeply adores the product, which is fine, but it's nothing new. selena: that was lisa ellis, analyst at upper nathanson. president trump is weighing in. he tweeted he wants 5g and even 60 technology in the united states as soon as possible. american companies should step up their efforts or get left

behind. there's no reason we should be lagging behind in something that .s so obviously the future we must always be the leader in everything we do, especially when it comes to the very exciting world of technology. the ftc commissioner joins us. this tweet? >> at the federal communications commission, where i work, we have been really focused on 5g for about two years now and getting the u.s. performing from a technology and performative specter as well. selena: how should we understand the meaning of the tweet? it seems to conflict with reports that the white house may be doing an executive order to block telecommunication companies like huawei. >> there's a couple of issues

going on here. we look a global rates of 5g and which company will be first to deploy this new technology. china has a very different system than the u.s. does. in the u.s., we've been focused on trying to get the government out of the way, let our private sector invest and compete. we've been updating regulations to help spur investment and deployment of 5g. selena: is there anything indicating a softer stance? ifwe have been very active, it's in congress after legislation, the white house hosted a 5g summit earlier in the year. , we areec -- the fcc taking tactics. several cities saw 5g deployed last year. we expect to see 30 or 40 this year alone. selena: what are the risks to completely cutting ties with

companies like huawei? many rural areas rely on companies like walworth -- like huawei. >> we have precedence going on where we are looking at these exact issues. is there a security risk with a particular company from particular parts of the world, and if so, what steps do we need to take? even apart from that, when you think about 5g, it will connect more than just phone calls. it will be about the internet of things, smart cities. part of that question is about 5g values. do you want companies that will respect the rule of law, that will respect ip protection? u.s.nt to make sure the receives 5g first and why the up there pushing it

first. selena: the president also ,entioned pushing ahead to 6g which has not really existed at even the most basic level. >> from our perspective, we're trying to get the regulatory environment right to unleash this innovation, and then we will take this innovation to the next piece of the future, but next-generation broadband is going to take on a lot of technological forms. there's a new generation of lower orbit satellite. we just need more technology and more broadband and 5g is going to be a piece of that, but other technologies are going to be part of that. selena: how would you rate our 's ability? on >> we are in really good shape with the deployment of the infrastructure. ,e have agencies very focused

so i think we have the right people focused on these issues and i think we're looking at the right people before we see 5g fully deployed. selena: what type of changes have you seen from internet service providers? >> it has been really great results from consumers across the country. a report not long ago showed internet speeds in the u.s. are up by 40%. the s&p itself just released a draft report that shows the digital divide is closing substantially, and there is still a lot of work to do to get more broadband deployed. but investment is up. speeds are up. prices are down. i have spent a lot of time with infrastructure crews and telecom crews doing a lot of work to deploy the infrastructure, and they said they have never been busier, so i think we are really headed in the right direction.

selena: can you give more detail on investments being up? one of the main arguments for net neutrality was that are the investment would be up, but they have actually been decreasing the amount of investment. >> when you look at the end of the last administration, when they imposed these title to style regulations, investments took a pretty significant downturn for the first time out of recession. when you step back and look at the numbers for broadband investment, those numbers have turned around, and that is a great thing. if you look as well on the infrastructure side, when the in 2017 with its big push to 5g, china was deploying new cell sites at 12 times our pace. the private sector is closing the gap. one provider reported clearing cell sites for construction. other providers are doubling

infrastructure deployment, so numbers are turning around. cisco put out a report just this week that says if you look at 5g, because of regulatory changes the u.s. has made, the u.s. is going to see twice as many 5g connections as asia, for instance. has beenolicy the sec putting in place is working about will pay off for a lot of americans, but there is certainly more work ahead. selena: how do you think efforts to block huawei equipment around the world will block china's efforts to become the world leader in 5g? >> we are focused on trying to make sure u.s. companies have a fair shot to compete in this space. our number one goal has been getting the government out of the sector. china has a very different system where they can essentially snap their fingers and demand new infrastructure to be built seemingly overnight, but the u.s. double in the race

for 4g based on our free market approach. we are now in good shape. selena: thank you so much for joining us. coming up, the rise of food delivery has brought about demand for more kitchen space. this is bloomberg. ♪

selena: food delivery is on the

rise in china and with that has come a new market. a beijing-based company offers kitchen space, supplies, and marketing for restaurants to meet the demands of increasing food delivery. the company is valued at $300 million. companysident of the joined us to discuss. i spoke with the ceo yesterday. how exactly does this shared kitchen cost work? the online in china, delivery market is growing really fast. it's pretty phenomenal. offline investment trends are expanding online. growth is very impressive. with are some restaurants

ofine sales up to 30% or 40% off-line sales. selena: it works for some big restaurants as well. in terms of panda selected, they make money. they own real estate, they are purchasing supplies. how does it work? to really search for this kind of no foot traffic location to remodel that into these kind of delivery kitchens. meter 500 square locations. the main revenue model comes down to the rent of charge.

selena: companies around the world are experimenting with this model. travis kalanick's new startup cloud kitchens is also in this space. what sets panda selected a part? >> the chinese market is very different. china has this density which also combines increasing mobile penetration. we have a large online grocery market and the second thing is there are up charge traditionals from retail change. we see that restaurants will actually lineup even before it has actually opened up. we do think there is a structural market opportunity to build supplies. selena: the travis kalanick

-backed cloud kitchens reportedly looking to seek share in china. >> we did see that on the news. he has been in the business for, like, three years, and at has been a local market for two or three years. are two levels in the market. the first is you really need to participation.e there's a lot of work combined to select locations and have the construction management work. that,her level is .ctually, capital one, i think

it is deep pockets. selena: why did agricole -- -global chooseri company from the former uber ceo? we know that companies like tiger global will go after whatever strikes. ishink the market in china -- the market is much bigger in china. the second is the economic model in china makes a lot more sense then compared to the u.s. largest actually the

soyer in terms of operating, .ocated in beijing, shanghai selena: thank you for joining us. , flex port just closed a billion-dollar funding round. we will hear from the company's ceo. this is bloomberg. ♪

selena: is the low is bringing back its first chief investment zillow is bringing back its first chief investment

officer. the company, now valued at three point $2 billion after the funding round, plans to use the capital to deepen its technology and data capabilities as well as grow its global infrastructure. emily chang caught up with ryan peterson to talk about the news. global trade and international freight courting are some of the biggest markets in the world, extremely scale driven. the bigger your company's, the more advantages you can provide to your customer base -- the bigger your company is. emily: why not some of the other options that were on the table? to thes very attracted opportunity to go and aggressively expand our business

globally. we need to be in every single country in the world. our customers are global. the entire premise is he can help you expand and go global. emily: did you weigh the ethics at all of taking softbank's money given the connection to the saudi government? >> we spend a lot of time thinking about it, a lot of time working with the saudi government. i went to japan to talk with them. we talked about connecting humanity in this seamless web of commerce. last 50 years, i don't think anything lifted more people out of poverty than the shipping container and trade. looking get to work at the intersection and have an investment partner like softbank who sees that. emily: this is a government connected to the murder of a u.s. journalist. did you ask softbank about this? did you get the answers you wanted to hear? and spoke with their people

understand their vision and where they are going. we had a lot of great conversations and felt really aligned in our values. i would not want to disclose to much, but i did get to put on slippers, and it was interesting negotiating a deal of this size while wearing slippers. emily: why did you feel like this could work? >> i have been attracted to his worldview ever since i first read -- they have a great pdf of 30-year vision and 300-year vision. i've never seen a company that has a 300-your vision before and that was inspiring to me. be in the presence of a visionary and hear firsthand some of the stories about his advice to alibaba in the early days, how they could use their pricing strategy to win, he had

similar advice to us, which was to be really aggressive and go for scale and grow. emily: what are the trends that we should be watching for? how is the industry going to change? >> i think it's going to change a lot to where the consumer expectation is two-day delivery, and you cannot manage that by the phone. you need to have smart analytics that tell you where to ship cargo, how it will get there, routing decisions, if it should ship by air or ocean, and ultimately what the brand cares about is their cost, the transit time, and the predictability of the system. those are things that the freight industry is only focused on cost historically. we are saying let's look at these other factors and see how they affect your growth. emily: how is trade war uncertainty affecting the trends you are seeing? >> the trade war is fascinating. our customers are getting the brunt of it every time there is

imposed.iff within five minutes of the new code being implemented, we are the ones notified and telling them how it will impact their business and helping them plan around it. we are seeing a lot of move of factories from china to southeast asia. emily: how much? anecdotally in the last month, i've talked to 10 customers and nine of 10 are moving to other regions. emily: is that going to be longer-term? >> the one thing we know is there will be a lot of, so it's hard to make longer-term predictions, and that's the problem. supply chains are things that need to run on a routine and they do not just change overnight, and yet, at the speed of a tweet, we can change policy. one area where we can shine is be more adaptable, faster to learn new regulations, consult with customers about it.

emily: the president has set this much first deadline. we do not know what will happen, but what are you going to be doing? .> we will be up late we feel if we can respond in real time knowing the products affected and this is the amount of new duty that is imposed, our customers love it when they hear from us first and we are able to tell them this is the exact impact. you don't want to be the one researching that. you want to know you are working with a trusted freight quarter and customs broker that has your back on those things. port's ceot was flex speaking with emily chang. that does it for this edition of "bloomberg technology." isoomberg technology" livestreaming on twitter. be sure to follow our global breaking news network at tictoc on twitter. this is bloomberg. ♪

>> a very good morning. us trillion markets have just opened for trade. >> good evening from bloomberg's global headquarters in new york. asia." me to "daybreak >> our top stories this friday -- optimism rises of a trade talks in washington. china is offering to buy more u.s. food as the site edge towards a deal. the rba governor