>> this is the best of bloomberg technology where we bring you top interviews. they are filing an ideal. willie attract investors? the smartphone maker debuted its most expensive lineup. they are taking on apple and rising cap petition from china. the president says he wants new

technology. what will give the u.s. and edge? we will talk to the commissioner. could file its ipo. it will target a valuation of $25 billion. they are planning ipos for the first half of the year. it appears the latter is on track to go first. investors.ith >> because of the market shutdown, the government shutdown, there has not been an ipo in 15 weeks. a tech company ipo. i think it's going to be well received. the company is doing very well. >> i think they really want to go. is waiting in the wings.

they don't want to have a situation where google is taking the air out of the rooms. there are some bigger fish here. they are trying to get this done quickly. whatwant uber to define ride-hailing looks like. they want to say this is our company and let's focus on this. we are not trying to be a global giant. we do things well in the u.s. its import for them to get out ahead. >> they can explain why it's a great investment. when we hold from shareholders? >> the people i spoke with seemed really excited. --y are eager to see nejra: lyft go first. they don't want uber to dominate the story. lot abouting to see a uber on the ipo roadshow.

shareholders are interested. fidelity is already an investor. it will be interesting to see what they end up continuing with. >> you are and investor. what did you see in the company back them? >> when we invested in the company, we have guys that look at the numbers. i look for relationships. has -- peopleft want to see lyft be successful. say great things about how they treat women and all of their employees and the people they ride with. i'm excited to see where the company goes. management, everybody there is really good.

it's going to be really exciting. >> both are losing money. how do you see investors stomach in that? >> a lot of tech companies are not profitable. lyft is working toward increasing their margins. theirre trying to make market share in the u.s.. they don't spend as much money. expande trying to socially unconsciously. i think they are going to get there. they have to tell their story. they are expanding in cities around the u.s. >> maybe you are hearing this from your sources about the risk of regulation and requirements. >> that's a good question.

you are going to see regulation in different companies, whether it's ridesharing or the airbnb's of the world. at the end the day, what they want to do is make transport more efficient in cities. easier foro make it the user. worknk they are going to and pay what they need to pay. they confidentially filed for an ipo. what was there thinking about that? >> they keep coming. i feel like every day there's a new ipo. i think they are going to be one of many who will go around the summertime. there is a lot of interest in them. the nafta act?

placenasdaq has been a for tech companies to go. lyft took nasdaq. for reasons right now, they are about 13%. you get a big splashy recitation when you go there. we will see what happens with uber. selena: that was oceanic partners. coming up, samsung unveils a smart phone with a price point the tops $2000. could this be the next big trend for consumers? check us out on the radio. you can listen on the bloomberg gap and bloomberg.com. this is bloomberg. ♪

selena: samsung unveiled the

biggest redesign of its smartphones. .he introduced for new phones they are blowing with 3-d cameras and fingerprint scanners. phone, they have a 4.6 inch screen and can unfold into a tablet with a 7.3 inch screen. they can use three applications at once. we attended the event and spoke with emily chang. mark: this is going to be the first phone and the prices about $2000. that would make it the most expensive namebrand phone on the market. emily: talk to us about what specifically you think will be a competitor to apple here?

mark: what samsung is coming out with is quite impressive. for devices. there is 15 g device. yearsre going to be 1.5 ahead of apple on 5g. the s 10 he can take on the r.one x i've been able to use the phones. the hardware seems ahead of apple. the camera technology, the 3-d sensing, the 5g. i still think apple is ahead on software. emily: you said apple is not working on 5g. you think that capability will be a big draw for consumers this year? i think so in terms of the

marketing prowess in places like at&t. will there be enough people this year? it's not clear. in the first half of 2020, 5g will be in a lot of markets across the u.s. the problem for apple is they release phones in october and november. unless they pushed their release they are going to be six months or so behind on 5g. we also weighed in on how the device will fit into the smartphone entity. surprised ateally the quality of the screens, the fingerprint technology, that makes samsung very competitive. the one thing to keep in mind here is they are not competing with apple. sort of competing with

these rising chinese vendors that have very good devices. they aren't really low price points. emily: what do you think will convince consumers to upgrade? we know the market is flowing. what do these products offer that prior phones don't question mark people don't need to upgrade. that's a problem we will live with for a while in this industry. you can see it reflected in the shipment decline we saw this year. market5% decline in the in 2018. the next to big push to upgrade is likely going to be 5g. the foldable phone introduced by samsung is a move in the right direction. i'm not sure it quite gets them there in terms of sparking upgrade activity. emily: how does it position

samsung to compete with the chinese makers that are offering half-price or even less phones that work just as well? john: they have been pushed out of the chinese market by these vendors. list.e is on that they have great devices. as you look more broadly across the world, there is a lot of buying behavior aimed at quality devices with a good display. becominghe display is more and more important as video traffic grows as a percent of mobile traffic out there. people are migrating to video. samsung has an edge there with its display. emily: how would you expect the market share to look different at the end of this year?

john: that's a great question. samsung share has been flat for the past couple of years. on the strength of this upgrade cycle, the introduction of the phone, youoldable will see them trend up a little bit. i suspect apple is going to be stable or down a little bit. it depends on what we see in september. with the chinese vendors steady as she goes. update baidu have an forecast. they said revenue will rise 18% in march. that is helped their advertising business. aiy are spending billions on as alibaba is helping the flowing economy. joining us to discuss is stephen. things are better than expected.

>> they were better than expected. we heard from robin lee earlier saying it's going to be a chilly time in 2019 for chinese companies. he was alluding to the fact that the trade war. the slowing chinese economy, that would have a knocked down affect. on itselies heavily advertising. that's what we were looking at, advertising spending. fourth-quarter adjusted profits beat estimates. $1.74.expecting fourth-quarter revenue hit the and theestimates consensus was $3.89 billion. basically, new content and products have been energizing

the ad business better than robin lee expected. selena: how has the broader advertising industry helped against the macro economic concerns and trade tensions? what they are trying to do is bolster their advertising business. they need to build out their new services that can complement that. they will be less reliant on advertising. model andthe we chat build a super app, simply can provide so many different services. you mentioned some of those other services. it includes ai driven content throughout the platform. they are building another .ivision they have their news feed. netflixbig one is the like video service.

it's going to be a work in progress through this year with top -- tough economic conditions. given these numbers, i am sure robin lee is fairly pleased that he has some momentum. those: in addition to factors, there are new startups, valued billions and billions of dollars. are we seeing those companies impact their advertising revenue? stephen: absolutely. the economy is slowing and advertising rates are coming down. they are slicing some of that and spin. alibaba has done much better of late in the advertising section. they have been on the lagging side of advertising as they focus on e-commerce. that has picked up.

baidu has picked up its game and that is why they are trying to make sin all of these other services. that has brought down operating profit. it was half what it was a year ago because they are spending so much on new content. hadna: coming up, walmart strong sales growth over the holiday quarter. where it now stands in competition with amazon up next. ftc about thee global race for 5g. this is bloomberg. ♪

selena: walmart had its best holiday quarter in a decade. comparable sales beat expectations well e-commerce

rose 43%. while they continue to take on amazon, they are weighing on the markets. and sara chicago joined emily to weigh in. one area was toys. they expanded by 40%. it was the first christmas without toys arrests and they wanted that market share. the other area is grocery. invest ining to grocery delivery. their fleet of stores is so large, that was a boost for them. selena: they have a redesigned website. they went after toys "r" us. themthe you think helps closed the deal? andrew: they are firing all cylinders.

brick-and-mortar has been strong. they've invested in their store experience. online, there is a headline there with 43% growth. especially where a lot of other retailers faltered late in the season, walmart was able to get a lot of those last-minute sales because of their strong on the channel. emily: let's talk about the competitive landscape. i've got a chart right here. it shows comparison market caps of amazon and walmart. amazon is much higher than walmart. revenue,look at walmart brings in far more revenue. amazon profits for walmart. it shows a lot of interesting conflicting trends at play.

how do investors see this story? sara: i think they see walmart is finding its niche. amazon is slowing down. --s the end this beaded undisputed leader. that is tough to compete with. a galaxytrying to find of other businesses that can support a different type of customer through the wayne -- main walmart brand. this is why they bought bear necessities. to focus on an affluent urban millennial customer, one that would not shop at walmart under other circumstances. trying to build a stable brand that meets customers in different places. that is unique compared to amazon.

emily: are they ever going to squeeze the profit that amazon is squeezing from its customers? andrew: their profitability comes from adjacent businesses with their advertising business. they have a different margin profile. whileg question is walmart is moving in the right direction, will they lay her on some more profitable businesses? they talk about the advertising business. they have a ton of potential there. amazon has a big head start. that is something to watch for the next couple of years. the inuld leverage normandy of customer data they have at their exposer. battlehow is a grocery shaping up? walmart is the leader.

sara: walmart has strong geographic coverage. they have 70% of the u.s. population by their pickup services. services.delivery that is pretty strong coverage. if you compare what amazon is working with, whole foods only has 400 stores. that's a real advantage for walmart. the dynamics are changing. is a major competitive force has struck a deal with cotto. be bringingng to technology over to the states, it's warehouse technology to it'skroger ramped up its delivery game. it is so penetrated. certain categories are 40% online. grocery is only 2% online.

says it's walmart ceo weighing on gross margin. how do they combat that? i think right now a lot flip cart.ming from they know that's going to be a drag on the margins. india is a massive market. everyone is hoping it becomes the next china as an e-commerce market. it's about how that plays out over the next 10 years. they are going to have to incur some of that hit. it is smart strategically. emily: that acquisition was hotly contested. what do we know about how well it's going? sara: we don't know that much yet.

what people were watching for was the new e-commerce regulations going into effect in india. that creates challenges for walmart and amazon is foreign participants. arehe call today, they disappointed with those regulations. they will have to figure out how to work within them. they did not adjust the guidance. they did not revise that today. they do clue that while have work to do to adapt to these regulations, they don't perceive them to be catastrophic for their progress. is a long-term play. that was andrew and sara. comment, donald trump argues u.s. companies must take the lead in the wireless networks.

what does that entail? we will hear from the ftc commissioner. we are live on twitter. newsw our global breaking network at tick-tock on twitter. this is bloomberg. ♪

selena: welcome back to the best of bloomberg technology. the world is been looking ahead to five g, the next generation of wireless networks. president trump is weighing in on the issue. he said he wants five g and six g as soon as possible. american companies must step up their efforts or get left behind. there is no reason why we should be lagging behind.

we must always be the leaders in everything we do. caught up with the sec commissioner and asked him about 5g deployment in the u.s. commissioner: we've been focused on 5g for about two years. we are getting ready for this transformative technology and economic perspective. there is a delegation going to barcelona, we will talk more about 5g. his statement that we ,hould win through competition that seems to conflict with reports that the white house may be doing an executive order to block telecommunications company. commissioner: we live in a global race to 5g. china has a different system than the u.s. does in terms of

command-and-control. we are focused on trying to get the government out of the way and let our private sector invest and compete. the sec has been updating our regulations. is there anything that suggests a softer stance? commissioner: i would not know his thinking. we been very active in congress through legislation. a 5ghite house posted summit earlier in the year. we are taking action to try and see this to climate. there are 14 cities that saw it the floyd last year. we will see 30 or 40 with this new technology this year alone. the rest toof cutting ties with a carrier like while way. many rural areas rely on it.

commissioner: we have a proceeding where we are looking at these issues. is there a security threat from a particular company? what steps do we need to take? we haven't reached a final decision yet. apart from that, it's going to connect more than phone calls. it's going to be about the internet of things, health applications. question is about values. you want companies that will respect the rule of law, that will protect ip protection, first amendment rights. that's why we want to make sure the u.s. sees 5g first and we are deploying these new networks. selena: the tweet we talked about earlier talked about six g. .hat doesn't even exist what is your take on that?

commissioner: we're trying to get the regulatory playing field right. we will at the private sector take it from there. 5g is a big piece of the future. next-generation broadband will take on different forms. satellites, we just want more broadband for more americans. there is technology out there. rate ourow would you ability and thinking to secure those networks from cyber threats? commissioner: we are in good shape. we have agencies across the focused onion very this cybersecurity issue. i think we've got the right people focused on these issues. we are looking at it before we see 5g fully deployed.

what type of changes have you seen from internet service providers? commissioner: it's been a great result. a report came out that showed internet fees are up 40%. the sec just released a draft report that shows the digital divide exposes. investment is up, speeds are up. prices are down. i spent a lot of time with the infrastructure crew. they are doing the hard work. from florida to iowa, they said they have never been busier. we are headed in the right direction. one of the main arguments about net neutrality expenditurestal

showed they have been decreasing the amount of investment. commissioner: we look at the lastof the -- end of the administration, investment took a downturn. when you step back and look at the numbers for broadband investment, those numbers of turned around. when the sec started in 2017, china was deployment new cell sites. we updated our infrastructure rules. private sectors are closing the gap. are clearing more cell structures at six times what was done before. the numbers are turning around. we put out a report this week that said because of the

regulatory changes, we will see twice as many 5g connections as asia. we've put iny place is working. that will pay off for a lot of americans. there is more work ahead. up, modernizing global trade through shipping just closed a funding round. we will hear from the company's ceo next. from $14ow they went billion in debt to a serious challenge for alibaba and amazon. this is bloomberg. ♪

selena: they have secured a $1 billion in funding. the company is valued at $3.2 billion. technology asning well is growing mobile infrastructure. emily caught up with the ceo on thursday. global trade and international exporting are some the biggest markets in the world, extremely scale driven. the bigger you are, the more advantages you have for your customer base. we thought this level of capital would make the investment. emily: why take a billion-dollar investment? ryan: i was very attracted to go it aggressively expand the business globally. we need to be in every single customer in the world. the premise of working with flex

port is to go global. the kopelmanu way of softbank's money? ryan: i went to japan and spent a lot of time with them. we thought there was an alignment in what are mission is, connecting humanity in a seamless web of commerce. we have lifted more people out of poverty. it's going to be the internet and technology, we are lucky to work at the intersection. we are fortunate to have a business partner like softbank. emily: did you ask softbank about this? ryan: i spent a lot of time with their people. understood them as people and

what their vision is. we had a lot of great conversations. talk: did you personally to him? househe invited me to his . i wouldn't want to disclose too much. it was interesting to negotiate a deal this size. emily: what was your impression of him? ryan: i was attracted to his worldview. they have a 30 and 300 year vision. i've never seen a company with a hundred year vision. that was expiring -- inspiring to me. i am in all of what he has achieved in his career. about hisear stories advice to alibaba in the early days, how they could win in that market. he had similar advice for us to

be aggressive and go for sale. emily: what should we be watching for in the next five years? ryan: the consumer expectation is today delivery. to do that, you can't manage it by the phone. you have to have smart analytics telling you win to ship cargo and how it's going to get there, whether by air or ocean. ,ith the brand cares about transit times and predictability of the system. it's only focused on cost. let's accuse at these other patterns and see how they develop growth. selena: that was ryan peterson. imagine an internet company andarable to yelp, eharmony. if it was an american company, you would know its name.

are probably not alone. the japanese tech company owns a constellation of apps and portals. of $46ve a valuation billion. they want to attract the most consumers in the world by 23 year -- 2030. we discussed. recruittory about starts with a scandal. this was a scandal of massive proportions. in 1960.ny was founded mid-1980's, the founder gave shares of stock that was about to go public to about 70 government officials and high ranking executives. ins of the scandal broke 1988. it was a sensation.

it caused the recognition of the prime minister and his entire cabinet and brought down 150 people. it is still in the schoolbooks in japan. says his thing someone scandal. it was unlike that of most other companies. the first thing you should know about recruit is it has been entrusted and lost trust. they have learned how to regain trust. these hear about transparency issues. i wonder how they managed to stage that turnaround. that was an existential crisis for the company. was thehappened employees thought the company had six months of life after the

scandal. they decided if anybody was going to save the company, it was going to be them. they went to their customers and told them are founder did this. we weren't involved. we will try to serve you the way we have in the past. they were very convincing. they were convinced they could still run a good business. they lost very few customers. that was the beginning. they went through a time of the norm us that. they also managed to pay that off in 2006. this is a company that has learned that on the one hand you could do bad things. it can really be humble and serious and extremely confident in its ability to handle difficult situations. that's the spirit they bring to

everything they do now. emily: they also own a real estate portal that provides direct loans to businesses based on traffic. how does this fit together? >> they have three segments in their business. businesses that are very involved with artificial intelligence and matching platforms for jobs. they have one that is in the middle, those are their ribbon models. this is the model that says they want to create value for the consumer and for the client who is paying to be matched with the consumer. staffingusiness is the business. they have always had this makes in the company of being interested in trying to help people get around education and

finding jobs. that was a professor at harvard business school. up, another twitter snafu part?n musk's we discussed that up next. this is bloomberg. ♪

selena: the tesla turnover continues. they are leaving after two months of the job. the trial lawyer that represented elon musk, legal battle was in response to a tweet about taking tesla private. they have kept a close watch on his twitter. tweetedht have it, he too soon. takeeeted that they would

500,000 vehicles this year. he revised that tweet. about 10,000 cars per week. and analyst joined emily to discuss. have as supposed to system of approval that would be considered material. productions, that was inconsistent with what they had said previously. was consistent the day of earnings. they have a figure of 400,000. they could deliver as many as 500,000.

he has been a little bit all over the place with the outlook for this year. this is a continuation of that. the settlement would be against this kind of thing happening. emily: does this concern you? >> in the past, he has said similar things. he talked about the model 3 production. not -- i think in general this focus on production , certainly institutional isestors, our point of view its electric vehicle company. this is part of the long-term story we care about. in talking about production and targets, that's

not going to change long-term. emily: the general counsel leaving after two months, there is an internal lawyer taking the cfo wouldsaid be leaving earlier this year. past the't know much vague reference of this being a poor cultural fit. that is reminiscent of something we heard from some of the many executives the departed last year. justin maca near comes to mind. he joined the company and was supposed to be the chief accounting officer. he left a couple of months into his time there. they took for granted how much tension there was on his company. you had a situation where he was coming from washington where he

has been a long time lawyer. on a part-time basis and decided against it. it's unclear if the tweet had anything to do with this. it doesn't appear to be the case. generally, it's another indication that elon musk may be a difficult person to work for. emily: turnover is nothing new it tesla. we are talking about key roles, the general counsel, the cfo. does it concern you that he can't keep these roles filled? >> must is a particular person to work for. styleed to jive with that to be happy it tesla. cfo, you could view that as he came in during a difficult time and felt like the

company was ready to fly on its own. archer,this particular people were worried. this is probably going to get a lot of litigation. again, there are more worries. case,k in this particular it could be a sign that he did not get what he expected. think if there was a relationship damage that he might not want to do that. emily: he made some interesting comments this week. he said people

person. i am an engineer. we have vastly more data and increasing exponentially. talk to us a little bit about what he said here. >> the podcast was on autonomous driving. that is the picture. our target is $4000 on the stock. what he talked about here is focused on collecting data off cars on the road. no one really else has. they are testing on this intervention rate. they have 10 million miles. miles,as billions of roughly 8 billion. advantage.mazing that will get them to autonomous driving.

they understand that and they are willing to invest. satisfied with the answers he gave? >> we were happy to highlight the at thomas driving. it's great to have a company like tesla where they understand the technology. he spends a lot of time with the autopilot team. case withat's not the a traditional auto company. there is a lot of education that needs to be done. we were happy with the outcome. about thisy to talk story a bit more. that does it for this edition of best of bloomberg technology. we will bring you the latest throughout the week. in new york.00

we are livestreaming on twitter. you can check us out on the mobile breaking news network. this is bloomberg. ♪ the latest innovation from xfinity

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