♪ emily: i'm emily chang in san francisco and this is "bloomberg technology." coming up in the next hour, worker protests come to a head at google. the company is doing away with one policy that thousands of employees criticized. plus, we sit down with an investor who made a big move in the vc world. we talk about his strategy in 2019. netflix could be crowned the big winner at the oscars on sunday. we will take a look at their strategy to take over hollywood.

first, to the top story. president trump and chinese lead negotiators agreed a trade deal will probably happen. both parties decide to work into the weekend. a reporter with bloomberg economic joins us now with more. tom, the president said he would be willing to extend the timeline on the terrace. what is the latest we know? tom: there was discussion around exchange rates and the yuan in china and how much it has devalued, but we don't view that as a big development. the larger question has been tariffs. it will continue to be tariffs. last year, the trump administration put 250 billion -- tariffs on $250 billion of chinese goods. that is a substantial number. the rate on those goods is different. you have 10% tariffs on $200 billion and 25% on $50 billion. that has been the story, and has

very little impact on the u.s. economy. emily: how much has this impacted the u.s. economy and vice versa? how much has it affected the chinese? tom: economy the impact to the tom: the impact on the chinese economy is much more severe. consumer confidence matters more than trade. that is less true for the chinese economy. the impact here has been mostly price pressures. the tariffs increase the price of goods, which means producers of things like steel and cars who are buying products from china, that means modest price pressures. that's not translated into a reduction in real reduction of

production, so far. looking ahead, it could be different. emily: all right, tim, thank you so much for that update. a victory for employees at google. after months of protests, the company announced it will end the policy of forcing its employees to waive the rights to bring class-action suits and courts. it was a policy that caused 20,000 employees to walk out in protest last year. i want to bring in mark bergen who covers alphabet. if you have any claim against google, you can take the case to court? mark: yes. starting in march, you can. there was mandatory of attrition agreements signing with google, but what has been important with yesterday, a lot of employees said after the case in the fall, there was a big walk out and

they changed the policy around sexual harassment. that was not the case for google contractors. there are possibly twice as meant he contractors -- or as many google contractors are there are -- as there are employees. they said they will enforce that with the contractors they work with. they are saying they will no longer be written into the contract with google. the contract companies that hire those agencies could still have their own terms. those employees might not be forced into arbitration with those companies. emily: will we see a lot of lawsuits with google? >> that's a possibility. i don't think investors are concerned about because the stock is not move. it is certainly a victory for the employee base that has spoken up in the protests that mobilized around the pentagon contract and around the work in china. it speaks volumes about the way

the employees are able to deal with the company. emily: i want to get an update on this youtube pedophilia story where we see comments in the comments section that somehow indicated towards pedophilia -- a pedophilia ring. you came out that said there are clear policies prohibiting this on youtube and deleted accounts. do you think this will have an impact on advertising? >> we saw another cycle from almost two years ago now. there was this boy cut -- boycott. youtube is still growing, even though it is a big longtail advertising stream. if at&t paused their spending, there are plenty of other advertisers willing to spend. it's unclear if it was like last

time where a lot of the advertisers will have a week or two of pausing, or if it will be sustained. emily: this is a much bigger problem, this particular story being incredibly awful. if you look in the comments section on any youtube video, it is nasty and hateful, no matter what the video is about. it could be monday and "bloomberg technology" video and you still have it. >> the question is, why does you to keep comments. youtube sees it as a social media platform and the sharing platform. they're are competing with video dollars from facebook. in the same way, they want to build communities. there are certain creators that have communities with their comments, that this is another

case where youtube in particular is this massive platform and google does not quite have the ai or personnel to contain a problem, so they contemplate this cat and mouse game with a new type of predatory behavior. emily: i know this is something you have been covering a lot and continue to cover for us. thank you. coming up, keith is on the move in joining his former colleague, peter thiel, at founders fund. we ask him why, next. this is bloomberg. ♪

♪ emily: twitter announced that the cofounder, ed williams, will step down at the end of the month. he said "it has been an

incredible 13 years and am probably twitter accomplished during my time with the company. i will continue rooting for the team as i focus my time on other projects." he was previously chairman and ceo of twitter. keith rabois had his hands -- has had his hands in many startups. he was part of the early paypal team with elon musk and peter thiel. he is joining back up with thiel at founders fund. that has invested in companies like facebook, airbnb, lyft and more. he will be a general partner, investing at all sectors and all stages of growth. he joins me in studio. keith, my favorite tweet about your move was, amide to believe

-- am i to believe that keith rabois joined the nba? you set twitter of letter. why the been -- set twitter aflutter. keith: you have to find and discover talent. you can't build a start up by processing the thing people in the same way everyone else does. i learned that in november 2000. i apply that to assess talent across the last 18 years. doubling down on that, going back to my roots, is exciting. every single person that works at founders fund as a partner if somebody that is a friend, associate, or someone i have recruited over my career. to work with everybody that was a friend is great. it's a great experience. i think the center of gravity has moved to the city. i just prefer to be in san

francisco. emily: you mentioned the center of gravity, but peter thiel moved to l.a.. you have all these investors saying the future is outside of silicon valley. keith: i disagree with that. he moved to allay, but founders fund is based in san francisco and is staying in san francisco. you need to hold this critical density together a sustained period of time.

the critical density of talent is still here. you can build outrageously successful companies elsewhere, but it is difficult. here, in any field, you can find extraordinary people that know how to scale a company. that's difficult to do another geo's. emily: so investing in other cities is a tough sell? keith: for me. one of the reasons i invested in silicon valley is because i'm actively involved in most of the companies i back. as geographic distance expands my ability to influence, the company contracts. emily: you have 14 or 15 board seats, what happens to the board ct racked up? keith: it is not yet resolved. we will discuss it on monday. emily: what is your strategy and 2019? as political and economic uncertainty, and i heard some investors say there's not a lot of exciting startups.

keith: there are a lot of exciting startups if you know where to look. if you look in the same places from five to 10 years ago, they are not exciting. at the frontier technology, there is innovation going on in health care, space, so there is definitely a lot of raw material. i like to focus on early-stage investing, the people that have a ridiculous idea and absurd notion that they will take over the world. those companies are insulated from the current macro environments. i will continue to lead investments at the very beginning of the company's trajectories.

that is what i like to do. emily: what is your strategy? are there specific sectors you have your eye on? keith: no. i'm a people driven investor. really, it is the spark from individuals or spark from a team that they communicate to me and portray to me that there is a different future in some vertical and i'm along for the ride. emily: how important is diversity for you when you look for people? keith: i think the most important thing is that someone has with peter called secrets. to be successful and start a company from scratch in an industry that has a lot of power and money, one has to have a projection of the future no one else agrees with that turned out to be insightful. that diversity of ideas is indispensable to the success. if one were to follow the conventional wisdom, there's no way anyone would start these companies. tesla would seem crazy in 2005, at every review of every automobile in the world rates tesla as the single best product. i think that is true for any field. outrageous people with different ideas and conquer the world. emily: there are many people who work at founders fund aside from peter thiel, but he gets a disproportionate amount of the attention by reporting president trump, which was a bets not to let in silicon valley agreed

with. do you think trump has hurt or helped silicon valley at all in his term? what has the biggest impact? keith: there are pros and cons. the fda has become more aggressive, is more innovation friendly, and everybody agrees with that. it has been harder on immigration. something like 60% of companies in silicon valley over the last 40 years has a first-generation immigrant as a cofounder. the debate and confrontation of china on trade is split 50-50 probably. about half of the people in silicon valley think it is a good idea and the other half

think it is a little more establishment on their thinking. the divergence is interesting. i a lot of friends -- i've a lot of friends that both think it is the right and don't think it is the right thing to do. emily: so you didn't vote, right? keith: right. emily: is anyone catching your eye this time around? i know it is off-topic, but i'm curious. keith: i will be a nikki haley supporter when she runs for president, i don't know when that will be. [laughter] emily: we expect a big tech ipo market. what is your outlook, including lyft, which you invested before -- invested with before. keith: there are a lot of great companies built over the last decade. airbnb, lyft, and there will be others my view has always been that companies should i feel early in their trajectory or careers. i wrote a chapter about why about the cheap proponents of ipo's. it's nice to see these companies go public sooner rather than later.

emily: i do you think about uber versus lyft? keith: lyft, i have been on this for many years. a lot of people predicted the death of lyft, and people overestimated the network effect in that business. in any city in the united states, as long as you can get the car within three to four minutes, there's no network effect. you have to get enough supply to you can satisfy demand within roughly three to five minutes, but after that, it is hurting returns. uber has gone internationally and lost a lot of money, and lyft focused on nationally. keith: i don't think money is a good solution for most startups. enough oxygen to prove you are right is indispensable, but i don't think money solves

problems. a usually creates more problems than it solves. if you have a value proposition that resonates with people, money is not that critical. emily: do you think softbank could be messing things up? keith: i think a lot of companies are not disciplined and they spend money when it is available. when the price of capital is too cheap, it creates distortion. historically, over the last three to seven years, the price of capital has been inexpensive. it's like if oxygen is free, you don't think about oxygen. if you had to pay for oxygen with every breath, you would be judicious going for a run. i think a lot of these companies will fail. i don't think softbank's returns will be exceptional. the journal criticized softbank

from an infesting -- an investment point. the returns will be pretty subprime at softbank because they are powering money into companies, and money is not the solution. if money was the solution, microsoft would have dominated the last 20 years and apple would always be dominating. but that's not true, apple is on the precipice of bankruptcy. emily: what are the moral issues? keith: most of the money comes from saudi arabia. in saudi arabia, it is illegal to begin a or discriminate against women in many dimensions -- to be gay or discriminate against women in many dimensions. i'm proud of the lps i've worked with, major universities, major hospitals. at some point, you want to make money for people who are up to interesting things and having

positive impacts on society, versus for people who are propelling the future. we always appreciate you sharing your opinions. keith: pleasure to be back. emily: we will be waiting to see how you perform in the nba. some of tech biggest names are heading to barcelona for this year's mobile world congress -- conference. will political tensions overshadow the launches? we will discuss, next. this is bloomberg. ♪

♪ emily: over two thousand companies are expected to showcase their products in barcelona next week at mobile world congress. while the mobile industry's biggest show has been in place for dealmaking, it turned out to be a showdown between huawei and the u.s. government.

joining us to discuss his bloomberg intelligence's senior analysis. what could we be seeing out of this? >> i think there will be an overarching negative view towards huawei from the u.s. and allies. if you look at the 5g market shaping up where mobile world congress has been the leading -- leader in showcasing this technology, it this has been a distraction. you have the china tariff issue, the huawei issue, the 5g slower launching because of the network not being strong enough, so you have all of these issues. unfortunately, this is becoming a distraction. when you look at mobile world congress this year, we may find it is more shiny stuff and less

substance. this is one of those distractions. emily: one of the substantive announcements you are expecting? >> i explicitly want to see the shape and potential -- growth potential for carriers in the near term. even just random use cases. this is when we are launching 5g, these are five ideas we could use 5g to make money above what we were doing in 4g. we're not launching it and mass, we are launching it -- in mass, we are launching into these areas and this is how we will make more money. that is going to be interesting.

i expect stuff from as a telecom and even verizon -- sk telecom and even verizon. those could be the specialty use cases. they might not be as widespread as we like, but i need to see more ideas. number two, i would like to see specific launches on how fast this can grow in 2020. the third part of it, potentially the least interesting for me, is 5g handsets and what shape that could be in 2019 and 2020. my expectations are low and i want to be surprised, but i'm not holding my breath. emily: where watching to see what the reception will be the foldable phones. as always, thank you so much for stopping by. coming up, lenovo stocks surge as stronger numbers come out. we hear from the ceo, next.

this is bloomberg. ♪

that could disrupt a supply chain in the electronics market.

>> it has been spread around the four major regions. we have from a supply chain perspective, probably some of are i think manufacturers. they will be able to move much faster. ofe the changes as result trade negotiations. seat eo at the lenovo talking with us. tech titans have become some of the biggest philanthropists in the world. there is a strategy aimed at supporting companies that support social change.

and as a 2017, $1 billion in impact assets. gene case joins me in the studio to discuss. you out with a new book called "be fearless." thank you so much for being here. >> it is really great to be with you. emily: stories of ordinary people who accomplish extraordinary. what is the one thing you found that ordinary people have in common? >> that we were able to uncover the researchers whatever transformational change has taken place, these five principles of presentation most -- are present. we were able to debunk that many the myth people live with. it takes some kind of special genius. that is exciting news. today in the u.s., a number of startups are at a 30 year low.

and aa clarion call playbook for anybody who has ideas. to get on the playing field and take them forward. emily: how could we apply some of these principles to investment or starting a company? jean: one of the principals is called reach beyond your bubble. the idea is bring together a diverse amount of people with different perspective. what i love about impact investing is it combines the expertise and the rigor of people who have been in the financial world for a long time with those that understand how social impact and social change happens. as you know, impact investment provides financial return and a social return. it is a whole new category of investing. there are $228 billion under investment today, but that number doubled in the last year. we have seen really strong momentum. you mentioned mark andreessen and bill gates, but marquee names coming including the funds

and the big banks, it is really exciting. there is tremendous momentum going forward. emily: it does not do impact investing. jean: we support the field. we have resources, the short guide on impact investment. a 10-year look back. i personally do the impact investing. emily: have you found you can actually make money? jean: absolutely. there is a tremendous amount of research to debunk another myth that impact investing is necessarily concessionary. it is not. they looked at different asset classes, but particularly private equity and demonstrated the impact investments not only performed at market rate or did well in terms of their vintage year, in many years outperformed. emily: why doesn't the foundation do impact investment? jean: the goal is to build market and support movements. we have used a blended approach in our impact work where we use

resources of foundation, our personal wealth to invest in things to really move. emily: what are some trends you see coming into philanthropy and impact investing over the next five years? jean: one trend i'm excited by is rigor around impact. for many years, foundations have been out there trying to have impact but not really sure when they have actually achieved it. tpg rise and bono just announced they will have rigor around measurement and impact. there is another coalition we are supporting which is called the impact measurement project which is also trying to make sure that that kind of careful measurement is taken place. emily: talking about the importance of looking outside silicon valley. are you seeing those opportunities in investing outside of silicon valley? jean: it is super exciting. you know the data. last year in america, only 2% of venture capital went to firms with a woman led founder, less

than 1% african-american. the more shocking thing is 75% went to three places -- california, new york and massachusetts. take an entire state like florida, the third largest in the nation, less than 2% of venture capital last year. rise of the rest -- steve has done a great job of spotlighting the great innovation and entrepreneurs we are seeing between the costs. emily: i asked the same question and he thinks the nucleus is still in silicon valley, this is where most of the talent is. this is where it is easiest to scale a huge company. jean: we give respect to silicon valley but it is part of the solution, not the solution in america. if you look at where fortune 500 companies have been founded, most have been founded outside of silicon valley. understanding our own secret sauce both in terms of doing everything we can to increase

the number of startups, getting all the players on the field because right now about 50% are left on the sidelines, between women and people of color -- it is an economic imperative in our nation. startups bring the jobs and provide the economic engine. emily: i wanted to ask you about amazon hq2. it is also setting up in your backyard. jean: it is. emily: there was a lot of development with aol. jean: started and build our company there. emily: amazon just pulled out of new york because of the protests. we have not heard much about northern virginia. jean: virginia is embracing amazon. i think it is unclear to me but it seems the new york decision came late in the game and they had not done the consensus building that they had done in virginia. as a result, the communities around virginia and washington, d.c. were prepared. i am not sure that is the same thing happened in new york. quite honestly, my hope is they

will go to numerous communities. we were disappointed to think they would go to new york, where new startups are not dying there. they are in different parts of the country. if they build headquarters for even a significant office, as many silicon valley companies have done. i was in indianapolis, salesforce has a huge office there. we are beginning to see these west coast companies move into the midwest. my hope is amazon will do the same. emily: jean case, thank you so much for being here. jean: great to be with you. emily: ok. well, a group of microsoft employees are defending the -- demanding the company abandoned a contract with the u.s. army to build versions of its holo lens for the battlefield. a new letter addressed to the ceo and the chief legal officer is calling on the company to cancel a $480 million military contract. the move is the latest in a series of protests from workers at tech companies are objecting

to certain uses of the product they are building. coming up, will texting a personal shopper help customers who feel overwhelmed? a startup thinks so. we will hear from jenny slice next. this is bloomberg. ♪

emily: walmart unveiled jet

black, a concierge for urban families back in may. members can text there request and receive same-day delivery from walmart and other retailers. how has consumer traction been? as part of the reach a transform -- retail transform series, i caught up with the co-founder jenny. jenny: customers are fanatical about the service which is so rewarding to be investing time into something that is really needed. the average customer is ordering 10 items a week. two thirds of ordering something on any given week so it is a level of engagement and while it -- wallet share i have not seen before. emily: what is the most common reason people call you? jenny: one is i need to reorder something. basic paper towels, laundry detergent. the other is recommendations like a birthday gift. your kid is going to a birthday party. the third is a specific product. you might take a photo of someone's sneakers you really like or screen shot something you think is cool and don't have time to order it yourself or do not want to put in payment

information. emily: how do you keep users engaged and coming back? jenny: there is personal shopping over text messages. it is so front and center in the consumer's life. we do give you updates of, hey, your order is delivered. keeping the customer reminded of that. it is truly behavior. the moment you think of something you need, whether it is a valentines day gift, you contact us, get it off your plate. we find that people find it so convenient that that is enough to keep people coming back. emily: it sounds great for upscale new yorkers, but what about the rest of us? is a diverse population going to use this? jenny: we launched jetblack eight months ago. this business will grow and evolve. much in the way that uber and instacart have different models in different cities, we are very aware we have to have different tiers depending on the target demographic and the city we are

in. emily: it could be cheaper somewhere else? jenny: it could be cheaper or a different tief. right now, we do giftwrapping, we can shop for any and everything. all the perks for this member saves them so much time but it is worth it. i think you need to rethink about the service, not compare it to others, but as a way to save time. time is worth that $50 a month. emily: are women your primary consumer? jenny: a lot of the consumers are busy moms. doing the bulk of household shopping and purchase decisions. busier than ever. macro trends, women are working more than ever before. primary breadwinner, yet they are still in charge of the household. emily: you can save me on valentine's day and other holidays? jenny: the surprise gift for your kids, the back-to-school sign. the last minute birthday gift

for a kids party. or something that maybe you would want to buy but did not have time to get around to. emily: amazon makes things pretty easy and it is $100 a year for prime. they also have same-day delivery. how do you compete? jenny: a few things we find our missing in consumer's life, the whitespace opportunity. one is a brand that has been emotional connection. consumers are looking for a brand that is magical. shopping is a chore. it is not delightful, it is something you check off your list. it is like a burden. that is one big opportunity. there are also things like delivery in bags instead of boxes, easy returns, a good gift wrapping experience. lastly, conversational commerce. the ability to text or use your voice is really powerful in helping people whittle down options. the internet has given us tens of thousands of options, and as a result, you can go into a tailspin in researching the perfect area rug for your entryway.

all these considerations. searching for that ideal fit. if we can leverage personal recommendation tools to hone to three options and let you choose, that is powerful. emily: when will you launch in other cities? jenny: new york is a huge opportunity. it is a large market. we see other competitors doing billions of dollars in sales so we really focused in the next year on new york. i think there is potential all over the country, if not all over the world. emily: when will we see more coming out of walmart tech incubators? jenny: we were the first. there are five companies that are coming out of the woodwork. i'm really excited about both the progress they have made, but how they converged together. emily: that was jetblack ceo jenny fleiss. still ahead will the academy , awards this sunday mark netflix's biggest win yet? how the streaming giant took on the film industry, next. this is bloomberg.

♪

emily: elon musk's spacex has launched its second rocket of the year. the falcon nine was carrying three payloads, including an indonesian satellite and israeli lunar lander. the israeli craft will travel to the moon after deployment using its own power. the netflix movie "roma" is a favorite to win best picture this saturday. the highest accolade at the american films' most procedures -- prestigious award show. it would complete the transformation to hollywood insider for netflix. we have more. if netflix wins an oscar on sunday, would that really change netflix's status in hollywood or has it already changed?

>> obviously, netflix has made a huge change in hollywood and across most countries in terms of how we consume content. and it has really changed things because we stay at home. it is not just netflix content, it is promoting other content creators and other studios like hbo to up their game and put out other content. that has changed the model and put pressure on it changed it even further. to get this accolade does something different. it means if you are the highest technician in hollywood, the best director and you make the most acclaimed content like alfonso cuaron, the director of "gravity," it means it will not just be a fluke one-time thing with "roma." more people like him will go to netflix to make movies. emily: alfonso cuaron is nominated in three different categories. if there is an upset in any category, where do you expect to see it?

>> best picture, because there is this kind of mystery and the mathematics of probability. you can look at different awards that have happened over the recent months at different guilds. those people actually vote on the oscars. some of them are very closely correlated. for example, the directors guild gave their top award to alfonso cuaron, and it is almost always the case that person goes to win the oscar. there are other elements that affect best picture. the screen actors guild, the biggest bloc of voters in the academy, they actually picked "black panther." you could see an upset. it goes to the heart of the question. who saw "roma?" we don't know. netflix has not told anyone. they split in convention in not only how they rolled the film out, but how they disclosed viewing numbers.

the academy is overwhelmingly white, older. that is the one where i see a chance of an upset. emily: i will have the popcorn out this week and you will be hard at work covering the awards. thank you for that friday update. that does it for this edition of bloomberg technology. we are live streaming on twitter @technology. follow our global breaking news network, tictoc, on twitter. this is bloomberg. ♪ the latest innovation from xfinity

isn't just a store. it's a save more with a new kind of wireless network store. it's a look what your wifi can do now store. a get your questions answered by awesome experts store. it's a now there's one store that connects your life like never before store. the xfinity store is here. and it's simple, easy, awesome. >> the following is a paid

program. the opinions and views expressed do not reflect those of bloomberg lp, its affiliates or its employees. >> the following is a paid program for u-box sponsored by u-haul. ♪ nick: i am nick. teresa: i am teresa. we want to welcome you to this episode today. we have the amazing u-box by u-haul. nick: when it comes to moving, u-haul is the go to company to move your stuff.