taylor: i'm taylor riggs in san francisco in for emily chang and this is "bloomberg technology." the california consumer privacy act. the law is in effect but not without controversy. we'll talk about how companies are interpreting it statute. plus, cybersecurity in 2020. what new threats work online and how will tech try to thwart it. we'll talk risks to watch out

for. and 2020's crystal ball. we'll talk predictions for tech companies in the new year as well as what tech trends we'll see in the next decade. the battle for tech privacy in 2020. wednesday marks the official start for the california consumer privacy act. this law is meant to give users transparency around what data companies select on them as well as the right to block companies from selling that information. for a look at what to expect this year in the battle to protect consumers digital lives, i talked to reese purse a partner where he co-heads cybersecurity practice. also with him is eric newcomer who covers the intersection of tech and government. >> this is probably the most important privacy legislation in the united states today. i mean, it's economic powerhouse. we don't have federal privacy legislation. this is important for california companies and users

in california but also just all over the united states. and it means that companies are going to have to disclose what data they collect to users and then let users delete data they don't want the company to keep. there also has to be much more mindful with the data they retain and disclosing the data they're going to keep for users. taylor: reese, what is it about ccpa that makes it in your opinion the largest data privacy laws we've seen? reese: we've never seen a law this comprehensive regulating privacy in the u.s. and because california is such a huge market, it's going to have a large impact on national companies and the data they collect even outside of california. privacy regulation in the u.s. has been a patchwork affair so far but is a comprehensive rigorous approach that creates

a host of privacy rights for consumers they haven't had before. taylor: eric, when you take a look in your reporting you look at ccpa coming into effect but there could be differing valid initiatives that post changes to the law. what could potential changes could we be facing? eric: there might be a referendum in california on the ballot in 2020 which would sort of lock in a lot of ccpa and expand the provisions and make it harder for california legislators to chip away at the bill. that's one thing. then you have illinois, new york, washington state looking at bills and then there's still this stream of, you know, federal legislation, the idea that the senate commerce committee could come up with a piece of compromised legislation that could solve this problem nationally. but there's a lot of moving pieces if you're a company trying to figure out, is it just about complying with the

current state of california privacy law and am i watching other states and what changes if there's a redged up. >> what initiatives on ballot oposeed could be different from what we have [reece: the ccp was created from a ballot initiative and continues to evolve and it's possible this new initiative could be on the ballot in november and it will if anything strengthen the ccpa and make a number of significant changes like changing the enforcement agency and take jurisdiction away from the california attorney general and give it to a new agency regulating privacy in california. taylor: reece, do you see california as the beginning of a federal privacy law? reece: california has always been a trendsetter in privacy regulation and i think that's definitely proving to be the

case already because as eric mentioned there are laws in new york, illinois, washington and other states that seem to take their cues from the rrpa. and i think right now the chances of federal privacy legislation appear to be stalled but if you have states around the country adopting new laws that either are similar to the ccpa or take the ccpa a step or two further, you could have an enormously complex regulatory landscape for businesses in very short order and i think if you reach that pain threshold where businesses are finding it difficult to reconcile these conflicting requirements that could finally be the impetus for federal legislation. taylor: eric, in your opinion what do you see as the big driver for federal legislation, is it frankly the fact businesses will be so confused by multiple different state laws that they really do need a federal law to lead the way? eric: right. i think there are these two

different pension plans. on one side the private right of action or general push on consumer advocates and more the democrats to give strong enforcement on any privacy legislation that passes. that's a key piece of debate in the federal raw. -- federal law. how much are the states bundling the enforcement and that's part of the california referendum like we talked about earlier. then the other side is whether we're going to have the federal law consumer everything? basically federal preemmings. and that takes over and kills the state bills and makes the federal bill the law of the land. that's what the republicans are fighting for. you see the debate, do we have federal redemption or private right of reaction, we have neither. that's where the debate remains. the small part of the bill people tenled to agree but it's the big ideas, how we enforce

it and whether the federal law is the ultimate law in privacy that's still up for debate and why congress is stuck. taylor: reece, what are you hearing from business us in a high level in terms of being compliant with ccpa and is that a big deal because they already compete with a loder level of prove answer. reecu: umpr is a privacy law that went into effect the year before last and the ccpa does draw upon a lot of the concepts in gdpr but that's a law that applies to data of european residents. so it hasn't -- even for big companies that implemented gdpr compliance they haven't done it get for their u.s. operations. and also the ccpa has its own set of requirements and nuances. o the fact you've done ggdpr

doesn't mean you're there by any means with ccpa. taylor: that was reece hirsch, partner at morgan lewis and eric new 2k7 comer. get ready for a new slew of cyberattacks in 20206789 and tell you what crowd strike is doing to address those threats next. if you like bloomberg news, check us out on the radio and listen on the bloomberg app and bloomberg.com ando in the u.s. on sirius xm. this is bloomberg. ♪

taylor: new year, new threats. cybersecurity trends in 2020 will include new mobile risks. in addition, hackers are expected to employ machine learning in attacks, and the cloud will prove fertile ground for compromise. cybersecurity tech firm crowdstrike provides threat intelligence and cyberattack response service is meant to deal with such risks. the company is also the top security pick for analyst alex henderson. >> basically, there is two points i would make. first one is, we believe security is an area that absolutely has to see more spending. it is a primary focus not just in terms of i.t., but at the board level. to that extent, we think of that there is clearly going to be a very significant increase in spending, particularly as we get closer and closer to the election.

it will become more of an issue. we particularly like companies that are in the cloud or direct segment of the marketplace that have a cloud native solution. i had heard your last guest talk about security in the cloud. what we want to highlight here is that these are companies that are in the cloud natively, that are used to protect companies directly from the cloud, as opposed to connections between aws, microsoft azure, or something like that, where it is a cloud connection, but not necessarily secure. quite different from what he was referring to. but ultimately, the reason we like crowdstrike is we think the company's growth will continue to be well in axis of 50% over the course of the next year. the street has it slowing down to about 30% growth by the end of the year. i think that is too steep of a the celebration from the 100% growth they posted last quarter. additionally, any upside you get in revenue demonstrates significant margin leverage.

so we think there is good upside to both their revenue and the margin side of the equation. we believe crowdstrike is one of the key solutions to security problems that enterprises are facing. taylor: so you paint a positive picture in terms of enterprises and corporations increasing their spend on cybersecurity. but what is crowdstrike doing specifically that perhaps other companies are not to take advantage of that positive backdrop? alex: sure. let me delineate between the winners and the losers here in the security space. we very strongly believe that the world of perimeter defense, where you basically put an i.t. stack at the edge of your data center, is no longer a valid security solution. while you still need to do that, the world is shifting to what i would call a cloud direct solution. companies like okta, zscaler, crowdstrike, companies like mine cast and proof point are

in the cloud and delivering cloud security. the companies that are in the perimeter side of it, like palo alto, checkpoint, these companies are trying to do a perimeter defense model where you are essentially trying to keep the bad guy out. you are just never going to win at that. there was a recent security survey where 76% of chief of security officers at enterprise expected that they would be hacked in the next 12 months. 60% of those said that they did not think they would know it when it happened. that is a function of the failure of perimeter defense to work. all a bad guy has to do is get there once. you have to keep them out 100% of the time. it is pretty obvious that is not working. we are moving to a world of zero trust or cloud direct security. these companies that are in the cloud that are delivering that i think, ultimately, are the

winners and will be the next generation of security companies and will gain share in perimeter in the ndustry. taylor: thanks to alex henderson of needham. as for those new cyber threats on the horizon, we got insight from one of the most renowned experts in the field, tom kellerman of vmware. he served on the commission on cybersecurity under president barack obama. tom: it has become a functionality of conducting business in today's world. you have to appreciate that all the major organized crime syndicates in the world have created business models around hacking. you have a rogue nationstates with dedicated cyberattack divisions. geopolitical tension continues to manifest in cyberspace. with things like the trade war and other current events around the global stage. taylor: you know, tom, i wonder who is most at risk. i talked to cybersecurity experts and they say it is the employees. that we are exposing the

companies. financial institutions are always a big threat. who, in your opinion, really poses the biggest risk in 2020? tom: i think there is a shift in how hackers are hacking. they have moved away from burglary to home invasion. it is a lot more dangerous in that they will take over and commandeer your digital transformation efforts and use your infrastructure, your website, your mobile app and a network to attack your customers. your brand will be used against your constituency, and that's the awakening that must be had in corporate america. taylor: i want to forward in the election. as you look at 2020, are we more prepared than 2016? tom: i would say we are more prepared, because we are aware of the antics that certain nationstates will implement to leverage democracy. there is very few states that have taken up the free assistance provided by the department of homeland security to better secure the electoral system. frankly, many states are hamstrung, with limited budgets and capabilities to do an effective job in thwarting nationstates. christopher wray says he sees activities by at least three nationstates that are targeting our electoral system.

taylor: what are the ways in which you see hackers getting to us in 2020? is it as simple as the voting machine or something much more enhanced? >> when it comes to the individual or the corporation, e need to be wary of our information supply chains, cloud service providers, outside general councils, outside marketing firms that we utilize. even as individuals in the same regard, because of those entities will be attacked, and their infrastructures will essentially be jacked in order to target us and our constituencies as a whole. more importantly, what carbon black or vmware carbon black research has shown is there is a genetic uptick of destructive attacks where hackers are manipulating the integrity of data, and changing either the way a corporation operates or an individual thinks specific to their devices and digital environments.

taylor: i love that you brought up the cloud, because we have grown up thinking the cloud is secure and safe. is the cloud more at risk than e think it is? tom: not all clouds are created equal. honestly, the whole purpose behind what we are focused on here at vmware is to build in intrinsic security into the environment across the entire stack. you can't try to retrofit security on cloud environments. you have to build it in from the beginning. you have to understand that an adversary will use that environment to attack your constituency, so you have to have greater visibility in how you suppress that adversary in real-time. it really depends on the strategy and the amount of dedication of the organization to securing their cloud. that varies by industry and corporation. taylor: tom, you were saying that some of the biggest threats are coming from russia, iran, china. how are they differing in their approaches? tom: well, frankly, you know, you have a 50 year plan espoused by china for

information dominance. i do see that as the trade war is cooling, you will see lesser and lesser attacks by chinese hackers against american corporations, hopefully. but you see north korea and iran now having teams with cyberattack capabilities and they are willing to destroy data, they are willing to attack infrastructure and leverage attacks against your constituencies. the cold war is alive and well. russian techniques are very much focused on undermining the institutions of the west and the validity and integrity we place upon all sorts of things, from democracy, to our own ata. taylor: that was tom kellerman of vmware. oming up, drumroll for tesla. the company delivered its first china-made model 3 to customers in china before the end of 2019. was it enough to help meet its delivery goal for the year? and, conversation with the cofounders of grab. from ridesharing to food

delivery, we look ahead to the future of the singapore-based tech company. this is bloomberg. â ♪

taylor: this week marked a major milestone for tesla in the world's largest market. the first 15 units of model 3 sedans assembled at tesla's new multibillion-dollar shanghai plant were delivered on monday. i discussed the significance of the occasion with bloomberg auto reporter craig trudell. craig: the red bars in that chart signify just how much people are expecting china to sort of carry the water for the general ev market. that is really the case for tesla as well, and the reason why people have been so optimistic about this

company. when you look at the rally that abigail just talked about, it is a significant portion of the reason why investors are growing so bullish with this company. obviously, people were willing to give elon musk a little more benefit of the doubt after the third quarter earnings release when they reported a surprise profit. but really, the optimism that you have seen more recently that this is a company that will be able to unlock significantly more potential in the china market is a sort of a bet that is being made here. to answer your question, though, it is a little unclear at this point just how much this will have a significant effect on tesla, because we are not seeing the price of the model 3 drop significantly yet. what we may find is that the company will be able to bring the price down for the model 3 once it is able to localize more of the content of that car and the sedans that it is building in the shanghai giga factory are more sort of, you know, localized in that market. taylor: are those production targets for that shanghai factory realistic this time around? craig: you know, it's funny. we talk about how much of a heated debate there is over the stock. part of that is because there is this shakiness of execution versus the promises musk tends to make. this is a ceo that has talked about, early on, being able to make 1000 of these cars a week, at some point getting to 3000. he's talked about the idea that the long-term demand picture for tesla in china could be around 5000 per week. but the analyst at cowen, who we have talked about earlier, ho is a little more on the bearish side, is skeptical that the company will be able to hit those levels, especially with the chinese government pulling back on subsidies. we have seen the ev market in china really struggle as a result of that pullback.

taylor: are those production targets for that shanghai factory realistic this time around? craig: you know, it's funny. we talk about how much of a heated debate there is over the stock. part of that is because there is this shakiness of execution versus the promises musk tends to make. this is a ceo that has talked about, early on, being able to make 1000 of these cars a week, at some point getting to 000. he's talked about the idea that the long-term demand picture for tesla in china could be around 5000 per week. but the analyst at cowen, who e have talked about earlier,

ho is a little more on the bearish side, is skeptical that the company will be able to hit those levels, especially with the chinese government pulling back on subsidies. we have seen the ev market in china really struggle as a result of that pullback. taylor: we heard from the general manager of tesla in china on their goals. take a listen to what he had to say. >> our goal is to sell all vehicles manufactured at our shanghai factory. we are confident in achieving that. taylor: you heard it there, they want to sell all their vehicles in shanghai. i wonder, what is the downside risk here? that maybe the bulls are wrong, and china doesn't live up to what it said? craig: that is a real question, because this is a company that has not paid a significant amount of money for the factory that they built so quickly. a sort of an under-the-radar development last week was the

company securing some financing from local banks for that factory. this is a tab that they are only sort of paying off going forward, as opposed to something they have paid for already. meanwhile, you have a company, and in musk, a company that has endless ambitions. he has already moved on to the next factory that he wants to build outside berlin. so for this rally to be sustainable, musk is going to have to deliver some sustainable earnings, something they have not been able to do up to this point. taylor: that was bloomberg's craig trudell. coming up, a conversation with the cofounders of grab. how this singapore-based tech company is entering the very competitive ridesharing and food delivery business next. this is bloomberg. ♪

â taylor: welcome back to the "best of bloomberg technology." i am taylor riggs. about 40% of singaporeans have poor access to banking and financial services access. but companies are looking to change that. his company and singapore to look at locations -- grab holdings and singapore telecommute issues have teamed up to apply for a digital banking license this year. the monetary authority of singapore wants to grant as many as five personal bank licenses to boost tradition and innovation. several other groups have expressed in applying, including alibaba founder jack ma. anthony tan and hooi ling tan

met at harvard as mba students. the two spoke to bloomberg's emily chang in an exclusive interview in may. he will hear how they have their sites set on making grab a super app. anthony: it is not just softbank. if you think about it, the first $3 billion was it raised by softbank, it was raised from oyota to hyundai, to booking to microsoft, open hammer. you talk about, we are very blessed with the global best names one can imagine. emily: why continue to raise money rather than going into public projects? hooi ling: because of ambition, which requires a broader set of services for our customers. there needs to be additional innovation and additional investments, and those are investments that are partners, we identify the opportunity and

they are like, we understand and we want you to do it. they are encouraging us to go bigger, bolder and better so we can service southeast asia more consistently. emily: tell me about your relationship with masa. he has said you can have unlimited capital from him, it i assume you are not asking for unlimited capital. anthony: masa and i are extremely close. we are blessed to have a mentor and a friend and partner in his journey. but, i will not right now need that capital or want that capital today, because we have enough capital to invest in what we need today. emily: ling, you told me you surpassed $1 billion in revenue last year, that you are on track to double that this year. where is the growth going to come from? hooi ling: in terms of countries and regions in southeast asia, the biggest

trajectory growth area we see is indonesia, and we are doubling and tripling down there as well. emily: how far away is profitability? anthony: in certain markets, it is already profitable. for us, it is important that we build and create more value. it is very easy to say, hey, you're the most popular app and just chill, as opposed to say, we are the most popular app, but there are lots of competitors, so we need to mature we deliver more value so that we underwrite our customers to keep keeping us as the single most popular leading ride-hailing app. emily: uber can't say when it will be profitable, and that has been a problem for investors. are you learning from that? anthony: it is different. it is different. first of all, uber, the majority of its business is ride-hailing today. plus, obviously, food delivery. lyft as well is

ride-hailing. the point is, we see ourselves as -- i would compare us more to wechat. emily: will grab go public? >> we have no plans to go ipo. for us, choosing long-term strategic's as part of our tech for good, working and co-nationbuilding. when we talk about nationbuilding, it is not five months, it is the next 5, 10, 5, 20 years. emily: given the u.s.-china trade tensions, and manufacturing that seems to be leaving china and heading to asia. does grab have a role, is that an opportunity for you? hooi ling: what i can share is that both regions are equally looking at southeast asia as huge future potential growth areas. i think everybody sees southeast asia as a region of growth for the future. it is not short term, not for

the next five years, it is going to be for the next few decades. that is the growth we want to help drive and lead and grow for the rest of the country. emily: we have seen many founding teams fall apart with blood on the floor. ou guys seem to have a great working relationship. how do you maintain that? hooi ling: we have just had an amazing relationship or because we share that foundational value system. we also share that passion and vision for what we believe we can contribute back to the region. we do know that it is unique, and hence, why we cherish and really it even more. at the same time, we also know that there are many more fortunate opportunities for other people to equally find the same passion, so we encourage it. we are helping back in the region. we have launched something called grab ventures velocity, an accelerated program to help other startups in the region who are trying to do good, trying to find scale, using our

platform. using our partnership. we are trying to help them as well because we were able to stand on the shoulders of giants and we are hoping we can give them the little boost they all deserve as well. taylor: that was a grab cofounder and ceo anthony town hooi ling tan. also the grab cofounder and chief operating officer. now to a business relationship resuscitative after all but ending in 2017. imagination technologies group says it struck a new license agreement with apple. "bloomberg technology's mark gurman filled me in on thursday on why it is so significant. mark: when you are building a phone or an appletv or a watch or an ipad, this is too simple ight it. there are two main types of chips that you want. you want a cpu, a main processor. a gpu, which is a graphics processor. since 2014, apple sourced gpu designs from imagination technologies.

they basically put the company to death a couple of years ago when they started to design their own gpu's. the company such a stock price limited to the point where they had to sell themselves to a china-based equity firm. now it seems like apple wants imagination technologies to come back into the fold. whether they own some patents for key technologies that apple is not able to design it self. so they are striking a new deal with them, and it is to be seen how long this will last four. taylor: i have to ask why. because he said in 2014, apple went to its own ship and did not use this company chip. now, they are going back. is this a new vote of confidence in the company, or worries about apple's own chips, or none of the above? mark: i think it is a mix. i don't think it has to do with apple worrying about its own components, they are pretty much at this point leading the industry in terms of their own in-house chip efforts. what imagination technology

likely has is key patents that apple figured it is going to need to pay royalties on anyway, and it will be cheaper for them in the next few years if they just struck a onger-term royalty deal rather than pay them on an individual device basis or deal with a public spat and also to like they did with the company a few years ago. taylor: what type of patents are we looking at, a.i., 5g? mark: this is the latest in computer vision and ar, specifically. there is a new technology called ray tracing that imagination technologies is pioneering in the u.k. that helps the quality and processing power that these devices can have. but also, imaging technology

specific to gpu's and phones. the have a lot of patents that apple could find useful. they just don't want to have to pay the big bucks that royalty fees would require. this is much simpler on their bottom line. taylor: and if they do, how soon would be start to see this technology? are we looking at next september for 5g phones, or is this later on? mark: i don't think this has anything to do with 5g. this would be later off. this would be ar-related technology. it is just that imagination technologies could be threatening to take apple to court over already behind-the-scenes. remember, this is not a public company anymore, so a lot of this can happen under the table. so it makes sense for a number of reasons why apple would want to come to this agreement. i would be shocked if we saw any new announcements specifically related to this tech. taylor: that was bloomberg's mark gurman. will google close the gap with amazon web services and

microsoft azure? big tech predictions for 2020. that is next. this is bloomberg. taylor: from ipo's to

advertising, data privacy and antitrust, 2020 is sure to offer up big challenges and opportunities for the tech sector. on tuesday, i got a reading from an analyst from mkm partners. >> there are a lot of ifs and buts here. the way i would characterize it is there is a significant supply or a significant aging

effect of mocked private companies. they are staying private longer. the only way they can get to liquidity is mostly through ipos. very few of them happen around $20 billion or $30 billion. that is one. we have a lot of those companies waiting on the sidelines. the stock market is at an all-time high. that makes the sentiment of the average joe much more positive. i am not a macro guy, but my crystal ball says that if these factors hold, we should see more ipos in the next six months, because we have elections and have uncertainty around that in the second half. that is my crystal ball. we will see how things go. taylor: you have been trying to round up the sentiment on the street. it is amazon. typically, the reason i am doing amazon, it is not in the top five. why amazon for 2020? >> i feel that there are two overarching debates on amazon. again, on the sales side, it is consensus, it is either amazon, facebook or google in no particular order, like choosing one of your best kids. i think it is amazon followed

by facebook, followed at google. for amazon, the debate is twofold. one is they are investing a lot of money in shipping. what will they return look like? i think we will see returns in the first half of this year with accelerating growth in some shape or form. may be investors can give them a pass on margins. the second equally important debate is can amazon hold up its market share on the cloud versus microsoft or google? that is the biggest debate. i feel over the next call it 6, 12, 18 months, what amazon has been doing with the machine learning, hyper compute, mega workload that migrated the cloud, that is where amazon is doing a lot better as compared to microsoft and google. that is why i'm willing to bet that amazon can add again step away from the crowd and continue to grow their market share.

that is why i like amazon heading into 2020. taylor: taking the other two favor children, facebook and google, i am showing where it is just total ad revenue and not ad revenue growth. but it is google and facebook clearly as number one and number two. are those the best two points to benefit from a constructive ad spend market? >> obviously. they are the two companies that have a asymmetric mode of rowth and asymmetric model share. facebook and google both are multi headed monsters, if you will. they have a lot of assets with more than one billion users, or active eyeballs. that is why it is hard to bet against them. but if i had to step away from either of them, i feel that among the social-media names, i like snapchat. snapchat might be positioning itself as somebody who can take away a little bit of share from twitter amongst all the political advertising debates

that are going on. taylor: within big tech, antitrust, data privacy, you shrug it off because the fundamentals are strong? >> again, i feel the order in which we like the mega caps, amazon, facebook and google, the regulatory headwinds each of these companies face, that is the order in which i feel that the companies would have sentiment weigh on them. amazon the least, facebook somewhere in the middle and google with the most. call it the next 12-24 months. that is why we rank order that way. taylor: also out with 2020 predictions was cfra vice president of equity research, john freeman. they include google cloud offerings, oracle undergoing a big reorganization, and facebook entering the cloud business. i caught up with freeman on monday.

ohn: it is credit of -- crowded at theapplication layers, he has salesforce and all the other different software and other service companies. but in terms of infrastructure as a service, what amazon does, the aws, there are only three competitors in america. there is microsoft azure, amazon aws, and google cloud. google cloud being a relatively new entrant that went from zero and now it is an $8 billion run rate. what distinguishes these guys is they have done some pretty nnovative stuff. amazon first but it's scale. facebook, amazon and google, operate infrastructures that are bigger than anybody else. that is their ticket to entry. my point of view is, why wouldn't they? i know they've discussed it. i don't have any idea they

will. it just makes total sense. and it would give them regulatory protection. they would be the last to enter into a market, three players, if we get a fourth. they would probably avoid a lot of regulatory scrutiny that they would get particularly if they do something in the consumer space, trying to expand their acquisition or back in the thing. it just seems like low hanging fruit that they could take right off the tree. taylor: you talk about the other three entrance in the market. another one of your top calls is that google's cloud will make significant roadway into that. but how do they keep up with an amazon and a microsoft, which have dominated up until this point? john: again, i think scale puts you in the game. now, one of the things google has done is they have differentiated, particularly on the analytics and getting developers to use their tenser flow framework for machine learning, for a.i., effectively.

microsoft and amazon are sort of involved in that, too. but i think that is one of the things google can do to differentiate. and tenser flow is very popular among developers. the developer community is a was a great indicator of what is going to be successful, what is going to be adopted. taylor: finally, you look at oracle splitting up hardware and software. john: yeah, i think it's time. there have been a couple of decades of acquisitions that ere really targeted at the old client/server sort of world where you wanted to give an enterprise customer, we will give you the database, the operating system, a one-stop shop value proposition, and that was effective. but in the cloud world where most of these enterprises are not trying to outsource their infrastructure to, you know, google and amazon and microsoft azure, and that value proposition actually turns

around, and i think it hurts racle. they are not able to do deals on the database side because the application side competitors get worried, and vice versa. i think there is negative synergy that they can unlock a lot of value by doing so. taylor: that was john freeman of cfra research. coming up, it is not as easy to see the future as companies make it seem. we will a look back at the decade of tech predictions for 2020. this is bloomberg. ♪

taylor: mobile phone ownership. elon musk's hyperloop. toyota's self driving cars. bitcoin. they were part of predictions of the last decade for 2020. many did not come to fruition as i learned from bloombergs, mark milian on thursday. >> erickson mobility put out a report in 2014 that by 2020, they would the nine out of 10 people over the age of six with cell phones. i think they overestimated how quickly the markets would come online and how quickly cell phones would come down in price. it is a big divide to bring so many people in developing economies into the smartphone age. taylor: i want to switch over to digital. there was a prediction that jet.com break even. i remember being in a shareholders meeting talking about jet.com, but it looks like they are still losing money, not yet breaking even. mark: jet.com was an independent entity, founded before uber and airbnb created the age of the unicorn. they were this early example of

all the silicon valley money going up in smoke. in response to the criticism, mark came on this network and said by 2020, we will be breaking even. and walmart ended up buying them the next year. but by all accounts, i don't think that really happened. wal-mart is losing a lot of money into competition with amazon right now. taylor: another of the big tech giants we talk about is google. google, alphabet. they thought business revenue would eclipse advertising revenue but we are not quite there, yet? mark: they were a little ambitious in their prediction, saying that by 2020, they would have their cloud business out this their advertising business. it is stale, very much on advertising business. i think at the end of last year, advertising made up like 85% of google's revenue. so cloud has grown a lot, it is

a far cry from what they envisioned, and they are bumping up against amazon, which is really dominant in that is this. taylor: what may have been the biggest bust of the year wasn't dyson, saying they would sell an electric car. in 2019,i think it shut down the entire business. they could not get it off the ground. what happened with dyson? mark: that was a production -- prediction that was not that far out. a couple of years ago, they were like we are working on this electric car and we will have something ready by 2020. it didn't take them long to figure out, as they described, the project was not "commercially viable." a vacuum company wanting to be much larger and realized it was a complicated business. taylor: and a very high prediction, i think, a very far off prediction that may not have ever come was uber deploying flying cars. no flying cars in our future. mark: yes. though they still maintain that

sometime in 2020, they expect to do demonstrations of these flying cars taking off and vertically landing vehicles. they do have helicopters, which are kind of like a flying car, which they are booking in new york. they hope to be able to show some type of live demonstration of the futuristic jetsons-like car. taylor: i want to end with number seven, which is toyota will make self-driving car is. there has been a lot of competition, not only in the ev space, but also with waymo. what do we know about toyota and their self driving cars? mark: this was the closest to being right. they say this was back in 2015, i think, toyota came out and said, we have cars that expect to be able to drive themselves on the highway. there will be assisted technology for drivers, it doesn't mean it you will not have a driver in the front seat.

and they plan to do that this year through their lexus brand, have a car that can drive itself on the highway, kind of like tesla does. it was sort of a way to cap the crazy hype cycle but took place the last decade over self driving cars. there were predictions about how we would be sitting in the backseat and have robots driving us around. we are nowhere near that day. taylor: that was bloomberg's mark milian. that does it for the "best of bloomberg technology." we will bring you all the latest in tech throughout the week. tune in each day at 5:00 p.m. in new york and 2:00 p.m. in san francisco. and bloomberg technology is livestreaming on twitter. check us out @technology, and be sure to follow our global breaking news network at @quicktake, on twitter. this is bloomberg. ♪

erik: how do you feel going into 2020? stanley: about the markets or my health? erik: the markets, the economy, we can talk about your health, if you'd like. stanley: let's not. well, you have very low unemployment here. fiscal stimulus in japan. fiscal stimulus and confidence coming to britain. we are running a trillion dollar deficit at full employment. apparently we will have some sort of green stimulus in europe. we have negative real rates everywh