♪ >> i'm selina wang. 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 they dominate the syntax space? wrapping up plans to file ipo, along with pinterest. and the global race for 5g. president trump says he wants telecom to embrace the new

technology. but what will give the u.s. the edge? we will speak with the commissioner. first, apple and goldman sachs will start testing a new credit card. bloomberg learned employees will try out the card first and a rollout will come later this year. as part of the push into consumer finance. joining us is julie brays, who covers it. mark, who covers all things apple. that thisn for a year was happening. how exactly is this going to work? how are they going to set it apart? julie: sounds like they are trying to leverage the brand. probably a lot of customers that expect a lot of people, wealthy clients of goldman, that have iphones. they have a way to benefit from a transaction like this. i want to know more about what this credit card is actually

going to offer. this is a credit space. cashback, discounts on apple products -- public not. -- probably not. one thing we did find out, from adam della startup, founded this. they are going to try to find personal finance to go along with this. hey siri, what do i/o on my credit card? something like that. that's something. selina: is this just the beginning of a big financial push? mark: no, i think this is more on the service side. ais is apple coming out with don't use case, the first time apple will offer its own real credit card before they offer a debit card with a feature called

apple pay cash, similar to then mel or paypal. i think this is going to raise awareness for apple pay. but also, if you look at the credit card landscape, there are some with annual fees, some that range between $100. i've seen it up to $1000 a year. if they charge an annual fee for, apple will -- with its revenues. selina: how important will financial services be --? mark: apple pay right now is pennies on the dollar in terms of the cut. they would probably get a higher percent to theoretically push to users. i wouldn't be surprised if there would be a message to subscribe. apple is coming out with a redesigned version of the apple pay app at the end of march,

early april. so this will likely launch as part of that. selina: goldman's big push into consumer finance. how successful will this be in boosting markets? julie: something that could help . lot, a lot of people know it's an offering where you can get personal loans and very high interest rate, savings account. goldman has never had much of a department. it is not like jpmorgan or citigroup. i think partnering with apple who has a lot of customers, could be a really easy advertising way to get the word out without having to send mailers, do ads on instagram. that's a big boost for goldman. selina: this is the first big new move for goldman sachs, and there are risk factors. do you think they risk alienating other banks?

julie: i think that's part of the risk. since they never offered a credit card, it's hard to model what the loss is. when you have a low, people know -- a loan, people know how much they are using every month, how much they are paying back. with a credit card, it's a lot harder to point that out and decide what it's going to be. somebody might use $1000 one-month, $5,000, then stop using it for two months. a lot harder to model what that's going to be. that could be a risk moving forward. goldman has never had a credit card offering before. selina: julie page and mark durbin, thank you. the model three has lost a recommendation. the publication dropped the electric carmakers estimates in a closely watched annual ranking. tesla has complained about

issues like exterior parts and effective glass. joining us is chester. what are some of other things customers were complaining about? chester: there were a range of things, everything from the rear windshield glass, which apparently suffered stress fractures, two things about the trim of the vehicle, how the metal fit together. there are some fairly basic things from the model three that are not easy to fix with a software patch, which is something tesla has done in the past and are likely to doggett for some time to come. selina: tesla said in response, they've made significant improvements. how much progress do you think has been made? chester: as you say, they say they've addressed this at the manufacturing level. that doesn't help the cars currently on the road, but as they ramp up production, they

claim that this is no longer an issue. we'll just have to wait until the next round to see. but, like i said, with this issue, they tried to expand their capacity and their production run. the type of mechanical issues they face are not necessarily things they fix with software. this is a type of problem that a lot of automakers face as they ramp up production. with tesla firing to produce so many model threes, it will be very interesting challenge to see whether they've got the moxie to pull it off and not have these problems continued to cross off. selina: this comes after several price cuts to the model three. how do you see this report impacting demand? chester: well, it's probably not a positive. what you're referring to is the concern may be demand is softer on the margins.

and for people that may be aren't huge tesla fans but are comparing them to other pickles, -- vehicles, something like this doesn't help. the stock fell to one-month lows below $300, and i think there's worrying us out there to make sure the fairly strong demand we saw in 2018 is going to be sustainable into 2019 and beyond. selina: what i thought was interesting is the car fell to number 19 in consumer points, down 11 spots, its lowest ever. why such a dramatic fall? chester: that refers not just to the model three, but all tesla vehicles. certainly it's not three production models and the model x suv has issues in the consumer report ratings. and the model s had some issues, too.

basically, they do not recommend any of the three models and i think altogether, that's what brought down the ranking of the brand so dramatically out of the top 10. it's no longer even 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 consumer report? say.er: well, it's hard to the consumer report is a very reliable and independent source of information. i think among car buyers who, as a mentioned before, may not be devoted to tesla but certainly looking to compare it to other vehicles on the market, it could have some impact. on the other hand, what we've seen with tesla is that many of its initial buyers, early adopters, are all in on tesla. one interesting finding is that

even the consumer reports admit the satisfaction ratings are quite high, in parts because people just buy the car despite the fact they have problems once they start driving the vehicles and encounter mechanical, other issues. selina: thanks for joining us,. chester dawson interest filed -- pinterest filed for u.s. public offering. they could list for the end of june. no decision has been made. pinterest declined to comment. coming up, race to the public market gears up for lyft. why the company hopes to make it to the finish line before uber, of next. check us out on the radio. this is bloomberg. ♪

selina: will it be the first big tech ipo of the year? bloomberg learned the company will target a valuation of $20 billion to $25 billion, with a roadshow march 18. that could put the company ahead in a race to go public before the larger rival, uber. joining us is -- also with us is olivia celeste. what are the benefits in risk, as far as being the first one to tell investors how one should value a ride hailing company? guest: i think there's a lot of benefits. first of all, because of the market shutdown and the government shutdown, there hasn't been an ipo in over 15

weeks. is a lot of pent-up demand to see a really big tech company ipo. i think it's going to be well received. i think lyft is doing very well. they're doing well in the market. people really like them. their numbers are good. people are waiting to see what is going to happen. olivia: they really want to go, like yesterday they want to come out. uber is waiting in the wings. they don't want a situation where uber is sucking up all the air. they're rushing, trying to get this out quickly. the also don't want uber to define what ride-hailing looks like. they don't want to define the story. they want to say this is our company. let's focus on a domestic company. we're not trying to be a global ride-hailing giant. we're doing things well in the

u.s. they have a chance to be the underdog. what have we heard from investors? guest: people i spoke with are really excited. they're eager to see lyft go first. to set the stage. they don't want uber coming in and dominate the story. i think on their roadshow, you'll expect a lot of questions about uber on the fact of the roadshow and vice versa. shareholders seem interested in the company. it will be interesting to see what happens there. investornd you're an in lyft. guest: it was about 2015 when we invested in the company. we had guys at our firm that looked at the numbers.

i look at personalities and the story behind the business. lyft, people like lyft. i took a lyft here to get here. people, how they treat women, all their employees, and the people they ride with. i'm really excited. i'm excited for the employees that i worked with, the people and upper management. i think everyone deserves a really good ipo. we've been waiting for four years. selina: lyft an uber are losing money. how do you see people stop making it? guest: i think a lot of tech companies are not profitable but yft is working toward increasing their margins. they have a more streamlined strategy they don't spend as

much money as a uber and they are really trying to expand socially -- socially and consciously and i think they're going to get there but they have to tell their story but they are expanding and all the cities around the u.s.. selina: how concerned are you? you are hearing from your sources about the risk of regulation and of being the requirements important to cities like new york. guest: that's a good question. you're going to see and also its of risk companies, whether ridesharing or other companies. they are all going to work together. at the end of the day, what they want to do is make transportation more efficient in cities. they want to make it worth it, easier for the end user. i think they used to make it the most efficient and pay what they

need to pay. selina: i want to touch on pinterest. they filed for ipo. what was there thinking about that, the timing? can't catch a break. olivia: pinterest filed. they're going to be one of many we expect to see go. a lot of interest in them, and excitement as well. selina: briefly on lyft, what about picking the nasdaq over the new york stock exchange? a: i think the nasdaq is a hot place to go for tech companies. it begs the question, wearable uber and up? -- where will uber end up? you go to big, splashy presentations to go there. we'll see what happens with uber. selina: we'll wait a few weeks

to see. thank you both for joining us. coming up, baidu's fourth-quarter numbers are up. this is bloomberg. ♪

selina: baidu gave an updated forecast. they will rise 12% to 18% as new content and products energize the advertising business. baidu is spending billions on ai and younger services as it fights off alibaba amid a slowing economy.

joining us is bloomberg's stephen engle and hong kong. it looks like things were better than expected. break down the numbers for us. they were better than expected. the chairman said because of the trade war, that could affect the slowing chinese economy and that what have an effect on the advertising. baidu relies heavily or more so than is bigger rivals like tencent on alibaba -- and alibaba. that's what we were looking at is advertise spending and also the topline growth. fourth-quarter adjusted profits beat estimates for adr. we're expecting $1.74. fourth-quarter revenue beat the highest estimates. billion.nsus was $3.89 it came in at 3.9 6 billion.

they are energizing the ad business better than robert lee expected. selina: how has the broader chinese advertising industry held itself up against the macroeconomic concerns, the trade tensions? stephen: yeah, so, what they were trying to do is bolster the advertising business. the same time, they need to build out the news services that can complement that to become less reliant on advertising. they want to take the wechat model from tencent and build a super app, an app that can provide so many different services. you mentioned some of those services. it includes ai driven content throughout that platform. they're also building a separate division. they have their newsfeed. the other big one that they are seeing traction on is their netflix-like video service, ice.

it's going to be a work in progress. numbers,, given these i'm sure robin lee is pleased that he gives him a chilly year in 2019. selina: in addition to those factors, there's also a new startup, valued at billions of dollars, the most viable startup in the world. are we seeing those companies impact i do'-- baidu's advertising revenue? stephen: absolutely we are. advertising rates are coming down, and they are siphoning off at spending. -- ad spending. alibaba has done better in the advertising space. they have been on the laggards side as they focus on e-commerce. but their advertising business has also picked up.

sure, baidu has to pick up its game and that's why they are trying to mix in all of these other services. that's what brought down operator profits in the third quarter. it was about half of what it was a year ago simply because they are spending so much on other services. selina: we talked about the drag on margins. how are investors stomach and that? well, well of the that triumphant, baidu, alibaba, and tencent, alibaba withstood the global trade headwinds, traded in new york. baidu has been a laggard, but we are seeing the stock already popping up a bit. they are pleased the numbers beat expectations. selina: fascinating. some people saying the new one is not baidu. stephen: could be. selina: thank you for joining

us. coming up, donald trump argued u.s. companies must take the lead to build wireless networks. what does that entail? we'll hear from brenda car. bloomberg technology is livestreaming on twitter. --sure to follow our global on twitter. this is bloomberg. ♪

selina: this is bloomberg technology. i'm selina wang in san francisco. apple and goldman sachs are planning a test of a credit card in a push for consumer credit card. lisa, who covers the credit section, published it and discussed it on bloomberg television. lisa: it's another step for apple into the finance world. they are a have a prepaid card. they are a have apple pay, sort of a five-year journey for them. a little unusual they would partner with goldman on this.

they are usually the bank of choice for cobra and cards. that's who paypal works with. amazon also has a card in the same vein. the goldman piece is a little bit unusual, a little bit new. it will be interesting to see how that plays out. anna: a little bit of a risk. back to apple, is it has much of a niece -- nich to why they are doing this? addiction, but are they going to win that many users, you think? did you read anything that makes you think this is a winner? lisa: we will probably all hinge on what the financial health think they are embedding into the apple wallet in conjunction with the car, some financial help types of things, similar to what you do with your physical

health, like tracking how many steps you take, helping manage your balances, sort of dipping their toe into personal finance management. if that is truly differentiated, that will bear fair watching. in terms of a cobranded itself, there are many brands up there, every major retailer. icey typically attract a n set of consumershe -- totally fine. years, the world has been looking ahead to five g as a solution to growing demand for global data. trump is weighing in on the issue. and 60 technology as soon as possible. american companies must step up efforts or be left behind. there is no reason we should be left behind on what is obviously

the future. we must always be the leader in everything we do, especially when it comes to the exciting world of technology." brendan carr joins us in washington. commissioner car, why now? brendan: well, we've been focused on 5g for two years now, getting ready for this transformative and economic perspective. there a u.s. delegation going to barcelona at the end of the week. we will be talking more about 5g . selina: it seems to conflict with reports that the white house made an executive order to block a company like huawei. brendan: there are a couple of

issues. when you look at this global race, china has a very different system than the u.s. does in terms of commanding control. in the u.s., we've been focused on trying to get the government out of the way and let the private sector invest and succeed. they been updating regulations to spur the private sector of 5g. selina: but is there anything that suggests a softer stance on huawei? brendan: i wouldn't know the president's thoughts on those tweets, that we been alsoed and the sbc, we're taking action to see more of this 5g deployment. there are 14 cities that saw 5g devoid last year, adnd we're expecting to see 30 or 40 this year alone. selina: what are the risks to cutting ties with a carrier like huawei? for instance, many rural areas

rely on them because they are much cheaper. right, andhat's we're looking at these issues. is there a security threat of a particular company or particular parts of the world? if so, what steps do you need to take? that's an ongoing proceeding. we thinkt from that, about 5g, it will connect more than phone calls. it will be about the internet of things, telehealth applications. part of that question is about 5g values. when you have companies deploying these networks, you want companies that respect the rule of law, respect ip protections, respect first amendment rights. that's partly why we want to make the u.s. 5g first and why companies are deploying these two networks. selina: it not only mentioned 5g, but pushing forward to 6g,

which is not existed at the basic level. what is your take? an: we are trying to get the plainfield right. then we'll let the private sector take it from there. next-generation broadband is going to take on a lot of technological forms. there's a new generation of satellites. core, we want more broadband for more americans. there's other technologies we're also excited about. selina: how would you rate our administration's ability to secure those networks from several threats? inndan: right now we're really good shape. we have agencies across the administration, independent agencies as well, very focused on this issue.

we've got the right people focused on these issues. we're looking at it at the right time, before we see 5g fully deployed. selina: i want to shift gears to net neutrality. what type of changes have you seen from service providers? brendan: it's been really great results for consumers. there was a report that show internet speeds are now up by 40%. the s&p released a draft report that shows the digital divide is closing substantially. and there's still a lot of work to do to get more broadband deployed to harder parts of the country. down.ed is up, prices are a lot of time with the infrastructure cruz, -- and the structure cruise. from florida to iowa to alaska, they said they've never been busier. we're headed in the right direction. selina: can you give more detail?

one of the main arguments was that ids would increase investment. capital expenditures show that they've been decreasing the amount of investments. brendan: when you look at the end of the last administration, when the s&p imposed these title ii regulations, investment took a significant downturn for the first time out of recession. when you look at the numbers of broadband investment across all providers, those numbers turned around. that's a great thing. if you look at the infrastructure side, when the sbc started in 2017 with a big push to 5g, china was deploying new cell sites at 12 times our pace. we've updated infrastructure rules. the private sector is closing the gap. one provider reported they are deploying new cell sites at six times before. others are doubling.

numbers are turning around. cisco put out a report that says if you look at 5g, because of the regulatory changes the u.s. has made, the u.s. will see twice as many 5g connections as asia on a percentage basis. the new policy they are putting in place is working, and that's going to pay off for a lot of americans. but there's certainly more work ahead. scrutiny --hink the selina: how do you think the scrutiny is going to affect the world of 5g? brendnaan: good question. we are focused on whether they will have a fair shot and the number one goal the sbc has been getting the government out of the way so they can can the. -- can compete. they can snap their fingers and new infrastructure will be built. 4g the u.s. won the race to

and we're confident we're in good shape for 5g or the next generation. selina: brendan carr, thanks for joining us. coming up, the rise of food delivery has brought about demand for more kitchen space. this is bloomberg. ♪

selina: food delivery on the rise in china. a new market, kitchen space.

they seek billions of dollars in new funding. they offer marketing for restaurants looking to reduce costs and increasing food delivery. the investment values the company as much as $300 million. joining us to discuss is the best -- vice president sarah way. i actually spoke to -- who spoke a lot about -- how exactly does this shared kitchen concept work? sarah: nowadays, online delivery markets are going really fast, really phenomenal. trendss -- we do observe like off-line restaurant spend. they are expanding online. online growth is intrepid. there are some restaurants, there on my growth exists 30-40%

of their total sale. they have a strong need to expand kitchen supply all around the city. selina: it works with big restaurants, as well. how do they make money? they're owning real estate. they're purchasing supplies. how does it work? this: they'll look into locationsearch for where the rent will be low. it will remodel that into this delivery system. , 400-500 divide it square meters, and then rented out. the model -- selina: companies around the world are experimenting with

this model. peru, london, startups doing this. and a selection apart from the rest? sarah: i think it's quite different because the market is going fast and it's really big. population,dense combined with increase in mobile space, we have larger delivery market. opportunities between version needs. what they see is that it doesn't line up. even before it opens up. we do think there is a structural -- to build the kind of supplies. selina: they are reportedly

trying to expand into china. you think an international player can succeed in the market? sarah: we did see that on the news. they been in the business three years. we have investment two years ago. we have been in the local market for two or three years, accumulated a lot of cheap. to succeed in the market, there are two lovers. to first, you really need have the off-line doing right. there are a lot of words like compliance to select the right locations and to have the construction management work. and also to get all the customers to go in. and the other lever is the capital. the capital one, i think like

tiger global for this run. it's big pocket. selina: speaking of tiger global, why did they choose to back panda selected, instead of the one with uber's final? understand. i cannot speak for tiger global. what we observe, we all know the technology like tiger global, they will go after whatever will make it. first of all, the market in china, for the delivery kitchens market, it is much bigger. the second thing is, i think the -- maybe then to the u.s. player in largest

terms of operating sales. we have over 100 kitchens located in beijing, shanghai, the bigger cities. selina: thank you for joining us. closedup, flux port just a billion dollar fund with the goal to change global shipping and logistics. we hear from the ceo. this is bloomberg. ♪

backa: zillow is bringing the chief executive officer as it pursues a plan to buy homes. the ceo is handing the reins to his active chairman, the cofounded the company in 2005.

secured $1 billion in funding. the company, valued at $3.2 billion, plans to use the capital to deepen technology and data capabilities and grow with global infrastructure. emily chang caught up with the ceo to discuss. guest: global trade and international freight boarding are some of the biggest markets in the world, extremely scale driven and the bigger your company is, the more advantages you can provide to your customer base. we felt this level of capital will allow staff of the investments we need. emily: why the investment rather than the other options on the table? guest: we have a lot of options. i was attracted by the ability to go and aggressively expand our business. we need to be in every country

in the world. we are working with flexible or and we can help expand and go global. emily: did you way the ethics of "taking stock's money -- taking softbank's money? guest: of course. i want to japan, spent a lot of time with them, felt there was a real alignment with what our issue is. every planet connecting humanity. i don't think anybody left it out of poverty than shi pping. we're so lucky to work at the intersection and we're fortunate to have an investment partner who sees that. emily: this is the government connected to the murder of a u.s. journalist. did you ask softbank about this? guest: i spent a lot of time, and i think we both a lot of comfort the last several years

and understood what their vision is and where they are going. we had a lot of great conversations and felt aligned in our values. emily: did you personally talked to masayoshi son? guest: i did. he invited me to his house. i don't want to disclose too much, but i did get to put on slippers. it was interesting to negotiate a deal wearing slippers. emily: what was your impression of him and why you felt this would work? guest: i've always been attracted to his worldview, ever since i read they have a pdf of their 30 year vision document. i've never seen a company that has a 300 year vision. that was inspiring to me to play the long game. in all of everything he has achieved, to hear firsthand some of the stories about his advice to alibaba in the early days, the strategy to win in that market, he's had similar

thoughts for us, to be really aggressive. emily: what are the trends we should be watching? how is this industry going to change? guest: i think it's going to change a lot. consumer expectation, you can't manage it by the phone. you need to be able to have smart analytics, how it's going to get there, routing decisions, whether by air or ocean. what the brand cares about is their cost. companiesthings that are usually only focused on cost, historically. let's see how it affects growth. emily: how does the trade war affect uncertainty run what is going to happen? guest: the trade war is fascinating. we're on the front lines. it hurts bad when new tariffs are exposed.

we're trying to figure out in five minutes of terrorists -- tariffs being in demented -- implemented, we immediately notify our customers. we have a lot of supplier base from china into southeast asia. emily: how much movement? guest: in the last month, 10 customers, nine out of 10 are moving from china to other regions. it's a big impact. emily: is that going to be longer-term? guest: it's very hard to make longer-term predictions. these brands need to plan. they've gone on a routine and they don't change overnight. but at the speed of a tweet, you can change what the policy is. that's one area, we could be more adaptable, learn the new regulations, consult with customers about it, help the planet. emily: we don't know what's

going to happen on the deadline, but what are you going to be doing march 1? guest: we will be up late that night and find out exactly what is implemented. if we can respond in real time, knowing here are the problem -- problems affected, our customers love it when they hear from us first. we're able to tell them this is the impact on you. you don't want to be the one researching that. you want to be the one working with the broker that's got your back. selina: that was ryan peterson speaking with emily chang. and that does it for this edition of bloomberg technology. on friday's show, we speak key for boy. bloomberg's technology is lecturing on twitter. check us out and follow our network at tictoc on twitter. this is bloomberg. ♪ the latest innovation from xfinity

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