♪ >> i emily chang.his is the best of bloomberg technology where we bring our top interviews from the week in tech. another cyber attack cripples countries. chris young joins us with his take on the latest ransomware and how to contain the spread. . my local search for answers and an appropriate response after getting slapped with a record antitrust fine in eu history. the iphone turns 10. we take a look back at how the device changed the world as we know it. first to our lead. a cyber attack spread around the globe this week, infecting computers in dozens of countries. for operators in new york and rotterdam and companies like allma giant victims. the attack is being carried out by a virus. the ransomware locks infected computer systems and demands users to pay $300 in bitcoin to regain access. we spoke to chris young about the severity of the attack and what can be done to prevent future breaches. >> the real story here is the evolution of ransomware. we saw a global ransomware attack, but the way we h

emily: i'm emily chang. this is "bloomberg technology." coming up, tension in the nation's capitol as formal talks reset the trade relationship between beijing and washington get off to a rocky start. why the world's biggest two economies cancelled their closing press conferences. and we talk about the sun certainly political environment. he will unveil the latest efforts to scale. and some of the top c.e.o.'s and emerging minds in tech hold court in aspen. our roster of interviews from the annual fortune brainstorm conference in colorado. first to our lead. chinese and u.s. government officials are meeting in washington for trade talks, but the gathering between the world's two biggest economies got off a tense start in the morning and the closing news krchtion was cancelled. earlier u.s. commerce secretary criticized china over the trade imbalance. >> china now accounts for nearly 50% of the u.s. goods trade deficit. if they were just a natural product of free market forces, we could understand it, but it's not. and so it is time to reba

emily: i believe he said by the end of the year. >> it is unlikely. emily: why?n't hold that level. they got to a pretty big position and it pulled way back. that if he or he them could, in the long-term, surpass bitcoins market cap. could, in the long-term, surpass bitcoin's market cap. when you are taking a lot of risk, there's a lot of upside on that risk. i think bitcoin is pretty stable. it's a pretty safe place. in the digital currency ecosystem. emily: we have seen a lot of initial coin offerings. do we need so many cryptocurrencies? >> ipo's and tokens will be a huge market sunday. the market today is mostly scams . there are a lot of securities laws being violated by the ico. emily: in which cases? >> i believe that to the professionals. on a consumer protection front, what the industry is doing for consumers, it is something to keep a close eye on? emily: any you are excited about? >> etherium. i'm excited about what folks are doing at the academic research institutions. college, at imperial cornell is doing great work. as far as the tokens themselves,

emily: i am emily chang and this best ofest of "bloomberg technology." quarter meansd for the online retailers online and jeff bezos. will we see a preview of a bigger move? samsung unscathed despite the crises within the first half of the year. has come within striking distance of apples top spot. amazon shares dipped thursday after they reported disappointing financial guidance, especially a potential loss of a third order. the earnings per share missed the low analyst estimates. amazon is preparing to step up competition with walmart and cloud computing challenger. we looked at the numbers. >> this is a company that disinvesting. there is a cost to all that free video. emily: where are the expenses? >> its video. they are building fulfillment centers closer to cities. if they are making all these great shows like manner the high castle. that costs money. in thisk is down 2% are is an on slap of will shareholder base. there is this deal of the company. emily: shares are down 3% area -- 3%. is number why bezos one or now he hasn't. the point is, they ar

emily: that was kirsten green.ard --shares of rental card company avis jumped after reaching a deal with alphabets self driving car unit. avis will service and manage the fleet of 600 cars in phoenix. hours after the announcement, apple is working with hurts to test self driving technology. if more partnerships are expected. >> phoenix has these 600 autonomous vans. they are testing them out with volunteers. when the cars are finished or something breaks, avis will be responsible for that type of thing,. apple has some very highly paid engineers. they are looking after mechanics. hurts is responsible for that. >> how ideals are these partnerships? >> if you look at some of the really important financials in the space, the big risk for people is when you buy a car from one day to the next, it drops $10,000 in value. car,meone else owns the that depreciation is on someone else's balance sheet and not your own. that can keep your net margin high. alphabet owns these cars, but it hints at a larger payment with avis and

. ♪ emily: i am emily chang. this is "bloomberg technology."oming up, microsoft's focus on the cloud pays off as revenue , soared past the highest estimates. we will break down the tech giant's fourth quarter scorecard. elon musk says he got the green light for his underground tunnel project. we will dig into the hyperloop he says can get you from new york to d.c. in under half an hour. hulu steps up to the plate in the streaming battle against amazon and netflix. a guest joins us on the race to rule content in the golden age of television. first to our lead. microsoft shares are rising in extended trading, up as much as 2.7% after reporting sales that topped estimates in the fourth quarter. almost doubled for the azure cloud service. it points to the company's turnaround plan is working lately to reshape microsoft as a cloud computing powerhouse with new services related to azure and office 365, a shift that led to a massive sales restructuring. rose.sales other software increased 43%. joining us now to break it down is our editor at large, co

♪ emily: i am emily chang and this the "best of bloomberg technology."here we bring you all of our top stories from the week in technology. coming up, amazon's revenue. what the second quarter means for the online retailers bottom line and founder jeff bezos. will we see a preview of a bigger move? samsung is unscathed despite the crises within the first half of the year. business is booming for the south korean conglomerate. it has come within striking distance of apples top spot. amazon shares dipped thursday after they reported disappointing financial guidance, especially a potential loss in the third quarter. the second order earnings per share missed the low analyst estimates. amazon is preparing to step up competition with walmart and cloud computing challengers. we broke down the numbers. >> this is a company that is investing. there is a cost to all that free video that amazon is lavishing on its prime customers. emily: where are the expenses? >> they don't specify. it's video. they are building fulfillment centers closer to cities. they are maki

♪ emily: i am emily chang, and this is the best of "bloomberg " where we bring you all of our top interviewsrom the week in tech. another cyber attack cripples companies. chris young joins us with his take on the latest ransomware and how to contain the threat. plus, google search for answers and an appropriate response after being slapped with a record antitrust win in the eu. discuss the next step for the search giant. the iphone turns 10. how the device changed the world as we know it. a cyber attack similar to wannacry spread around the globe, infecting computers and in dozens of countries. companies like america, the vpp were all victims. it's been carried out by a virus. it locks up systems and demands $300 in bitcoin. we talked about the severity of the attack and what can be done to prevent future breaches. chris: the real story here is the evolution of ransomware. we did see a global ransomware attack, but the way we have seen this attack work, it's gone from single instances where you users fished to now you've got hybrid attacks. this ransomware attack used an exploit that we saw

♪ emily: welcome back to "best of bloomberg technology." i am emily chang.nl meeting of the minds as leaders in text converge on colorado. highlightsng you from the text conference. earningsecond-quarter results exceeded expectations. there was little room for error for the company that has seen shares climb 30% this year. the portion coming from the united states. caroline hyde sat down with cory johnson. cory johnson: they don't see the financial results. what they see is a business that might someday generate the results. how do you have the cash loan to pay for all that content? by having subscribers that pay every month. they see an accumulation of subscribers who are sending credit card numbers in and the payments keep flowing through. the hope is there will be a geography like the united states and canada that are profitable and that's the future for the rest of the world for netflix. caroline: amazing. 104 million users, for the first time international users will bring them a profit. we are looking at the financial analysis. you can see that at the

emily: are the days of double-digit growth over?think we will do better this quarter than the last several. that doesn't mean that we are growing double-digit or will grow, but i think it will be better year-over-year comp over than the previous ones. i feel pretty good about that. iphone 7 is the most popular phone in china. iphone 7+ is the third most popular smartphone in china. last year, the size of our business was almost $50 billion in greater china. so, we are going to stick at it, because i think china is a huge opportunity over time. emily: how would you characterize tim cook's apple versus steve jobs' apple? tim: well, i don't think about it very much. what would i say? i guess i will point out that steve's dna will always be the dna of apple, or it will be as long as i am ceo. and i think as long as anyone is, honestly. i think it is deeply embedded in the company and we celebrate it. and it should be like that and should stay like that. obviously, things evolve over time in some other areas as they would have if he were

♪ emily: i am emily chang and this is the best of "bloomberg technology."e bring you the top interviews from the week in tech. coming up, netflix scorches the subscriber forecast. my content is king? uber fit for business. we discuss the platform and how they work without a ceo at the wheel. in the annual meeting of the minds as leaders in tech convert on colorado to share ideas on cybersecurity at the fortune brainstorm tech conference. first, to our lead. netflix's second 40 -- second-quarter earnings results exceeded expectations. there is little room for error. shares climbed 30% this year. they delivered on a key step, adding subscribers. with the big portion of that coming from outside the united states. caroline hyde sat down with cory johnson. cory johnson: they don't see the financial results. what they see is a business that might someday generate the results. how do you have the cash loan to pay for all that content? by having subscribers that pay every month. what they see from these numbers is an accumulation of numbers -- and subscribers who a

♪ emily: i am emily chang and this is the best of "bloomberg technology."e bring you all of our top stories from the week in check. coming up, amazon defines revenue, but earnings. what the second quarter means for the online retailers online and jeff bezos. and meg whitman steps down from the board of hp ink. will this be a preview of the bigger move to come? and samsung unscathed despite the crises within the first half of the year. how it has come within striking distance of apple's top spot is the world's most profitable company. first to our lead, amazon shares dipped post market thursday after they reported disappointing financial guidance, especially a potential loss of a third quarter. the earnings per share missed second quarter the lowest analyst estimates. amazon is preparing to step up competition with walmart and cloud computing challengers alrosoft and also that -- phabet. we looked at the numbers. >> this is a company that is investing. there is a cost to all that free video. emily: where are the expenses? specify, but it is video and fulfill

emily: let's start with the new smart speaker.hy should people buy homepods over the competitors at this price? tim: what we tried to do is we tried to develop a breakthrough speaker first. music is deep in our dna, dating back from itunes and ipod. and so, we wanted something that, number one, sounded unbelievable. and of course, it does a lot of other things, right? and all of those are important, as well, but we wanted a really high quality audio experience as well. emily: you are focused on how this can reinvent music in the home. what about these other things? will i be able to make a phone call, call a car, order groceries? tim: there are a lot of things you can do with it. you know, one of the advantages we have with it is there are a lot of things that siri knows how to do from the phone. and so, we will start with a patch of those, and then you can bet that there is a nice follow-on activity there as well. emily: let's talk about e-commerce. e-commerce is very important to these devices. i can order paper towels on my ama

. ♪ ♪ emily: i am emily chang and this is "bloomberg technology."g up, the ad-pocalypse seems to have blown over at google. alphabet each bidding on earnings and revenue, so why did the stock dropped after hours? we will discuss. plus masayoshi son's , multibillion-dollar spending uber out of force ove another major market. we will discuss the softbank threat to google as rivals look to capitalize on the company's crises. a bloomberg scoop, regulators open talks with executives from time warner and at&t as the $85 billion dollar deal continues to take shape. lead, shares dipping in after-hours trading. the parent company releasing second-quarter earnings which sent shares soaring but then turned south. revenue for the search giant came in at $26 billion, up 21% year over year. but aggregate costs per click dropped 23% from a year ago. these numbers include the effect of the $2.7 billion fine from the european competition commission. i spoke with the cfo about the findings and she told me "it is so early in our analysis of the decision, this is an on

emily: i'm emily chang. this is "bloomberg technology." softbank's and game. another run at the u.s. cable market with a direct offer for charter. why the move to acquire america's second-biggest cable company is the billionaire's most ambitious target. the model three kicks off a new era in electric cars. will tesla deliver? we look ahead to tesla's earnings report. all bets are on after 400 million shares of snap hit the market. a look at the lockup expiration of that investors have had their opportunity to sell. the turmoil continues in washington. anthony scaramucci has been removed from his new job as white house communications director just 10 days after he joined president's staff. the white house said, "mr. scaramucci felt it was best to give john kelly a clean slate and the ability to build his own team." sarah huckabee sanders --mented on the exit of the during the briefing. >> he does not have a role in the trump administration at this time. we put out a statement earlier, announcing that. i don't have much else to add. emily: we are joined by alex

emily: you said cars are an area ripe for disruption.mportant is it that apple not miss out on cars? ♪ ♪ emily: let's talk about the world's second-biggest economy, china. how does apple navigate what seem to be uncertain economic and political waters there? tim: china, for us, we make all decisions for the long-term. we are not investing for next quarter or next year, we are thinking many years out. and as i stand back and look at china, i see mega-trends that make china an incredible market, and i don't mean just a market to sell in. i also mean for application developers. we have 1.5 million application developers in china now. probably closer to 2 million. it has been an incredible marketplace for talent, and in terms of the size of the marketplace. the short-term kinds of economic moves up and down, i do not get too excited about. emily: how realistic is it to expect double-digit growth to continue for apple? to continue in china? tim: it didn't continue last year. >> are the days of double-digit growth over? tim: i think we will do

." ♪ emily: i'm emily chang. this is "bloomberg technology."oming up, trump junior's show and tell. the president's eldest son takes to twitter to mount a defense on the latest email scandal to hit washington.we get the latest from the hill. plus comeback.tolo's he returns to the startup scene with a new focus on fitness. he joins us for a wide-ranging interview from everything from twitter's newly hired cfo, to the culture in silicon valley. amazon echo hits all the right notes on its way to the top of prime day's bestseller list. doubles down on the discount bonanza to push the digital assistant into more homes. the lead. that is the email bombshell coming out of washington involving president trump's eldest son, donald trump junior. trump junior used his twitter account to reveal a series of female exchanges with a british publicist showing he was promised, damaging information about hillary clinton at a meeting with a russian lawyer during the presidential campaign. donald trump junior said in a statement that he had released emails "in ord

this is bloomberg. ♪ emily: welcome to the best of bloomberg technology. i'm emily chang.s week marks the 10th anniversary of the iphone. while it wasn't the world's first smartphone, it jumped far beyond the competition and propelled the mobile revolution. the device spurred rapid changes in industries of all kinds, and society as a whole. here is a look back at the decade of the iphone. steve jobs: today, apple is going to reinvent the phone. emily: on june 29, 2007, consumers got their hands on the very first iphone. a decade later, the smartphone has proven to be the undisputed king of apple's products and in turn, revolutionized an entire ecosystem. destroying heavyweights of the day and spurring new arrivals across the globe. the iphone also open doors to what has become a large chunk f the company's revenue, pps. app sales are generated roughly $100 billion for apple, with more than 16 million developers worldwide producing apps ranging from uber to snapchat. the launch of the iphone didn't just change the way people worked and socialized, it transformed the company

emily: let's start with the new smart speaker.hy should people buy homepods over the competitors at this price? tim: what we tried to do is we tried to develop a breakthrough speaker first. music is deep in our dna, dating back from itunes and ipod. and so, we wanted something that, number one, sounded unbelievable. and of course, it does a lot of other things, right? and all of those are important, as well, but we wanted a high -- a really high quality audio experience as well. emily: you are focused on how this can reinvent music in the home. what about these other things? will i be able to make a phone call, call a car, order groceries? tim: there are a lot of things you can do with it. you know, one of the advantages we have with it is there are a lot of things that siri knows how to do from the phone. and so, we will start with a patch of those, and then you can bet that there is a nice follow-on activity there as well. emily: let's talk about e-commerce. e-commerce is very important to these devices. i can order paper towels

♪ emily: i am emily chang and this is the best of "bloomberg technology."e're bringing you all the top interviews from the week in tech. coming up, a look inside dick costolo's life after twitter. he joins us for a wide ranging conversation. an army of tens of thousands of tech companies, reddit us on the fight for net neutrality. competitive video gamers get their league. the first seven franchises and robert kraft went all in. we will bring you that conversation. a new hire at twitter. former intuit head of finance will become the chief financial officer effective in late august. he will report directly to ceo jack dorsey. he will assume the role. he will continue to serve as the coo. for more reaction on the shakeup, we spoke to dick costolo who returned to the ceotup world, currently the and cofounder of a personal fitness platform. dick: i have a lot of confidence in the team over there. anthony and jack, and the cmo. emily: they reported their first quarterly loss during the we've seen a new strategy unfolding. do you expect any change in strategy wit

emily: that was kirsten green.ce shares of , rental car company avis jumped as much as 21% after reaching a deal with alphabets self driving car unit. avis will service and manage the as part of the partnership fleet , of 600 cars in phoenix. hours after the announcement, we learned that apple is working with hurts -- hertz to test self driving technology. we asked if more partnerships are expected. >> in phoenix, there are these 600 autonomous vans. waymo has those and they are testing them out with volunteers. when the cars are finished or something breaks, avis will be responsible for that type of thing, making sure they are clean, stuff like that. emily: and apple? >> apple has some very highly paid engineers. the last thing they want those guys doing is looking after the mechanics of those cars. they released -- least those hertz, who is responsible for that. emily: how ideal are these partnerships? >> if you look at some of the really important financials in the space, the big risk for people is when you buy

. ♪ emily: i'm emily chang. this is "bloomberg technology."mazon beats on revenues, but a big miss on earnings is dragging the stock down after hours. what the second quarter scorecard means for the bottom line and founder jeff bezos. plus, twitter's flatline. it beats on revenues and earnings in the second quarter, but did not move the needle on user growth. we will discuss its prospects for a turnaround. and samsung unscathed despite the crises within over the first half of the year. business is booming for the korean conglomerate. how it is within striking distance of apple's top spot as the world's most profitable company. dipping inon after-hours trading due to disappointment with its financial guidance, especially its projection of a financial loss in the coming quarter. the earnings-per-share missed lowest analyst estimates. results showing amazon is prepping to step up competition with rival walmart and cloud computing challengers microsoft and alphabet. investors continue to have faith in ceo jeff bezos to keep the company growing by

. ♪ emily: i'm emily chang. this is "bloomberg technology."oming up, the debate over health reform is now officially ago after a senate bill that went down to the wire. the latest from washington. plus, a major rival capitalizes on the crises at uber. have business is booming at lyft. fighting words continue to fly between tech billionaires over artificial intelligence. beefs and into the barbs traded by elon musk and mark zuckerberg. first and the league. senate republicans issued a green light to issue debate about health care to the floor of the senate. there's a lot of uncertainty about what plan senators will be asked to vote on. 50-51, withte was vice president pence serving as a tiebreaker. senator john mccain, who helped the development was diagnosed with an aggressive brain tumor days ago. take a listen to his opinion on the repeal efforts. senator mccain: i will not vote for this bill as it is today. it is a shell of a bill right now. we all know that. i have changes that will have to be included to earn my support for final passage

. ♪ emily: i am emily chang and this is "bloomberg technology."ber hits reverse on russia and gives the driver seat to a rival. second retreat from a major market. doubling down on vr with a new headset and price tag. how the hardware stacks up against industry leaders. under -- the gop unveils the new health care replacement. first, to our lead. uber is handing over the keys to its business in russia. the u.s.-based ridesharing giant is teaming up with what is known as the google of russia. ofwill take more than 1/3 the stake in the venture, valued at $7 million. it is a second retreat from a major market for uber. last year they left china in exchange for a 17.5% stake from a rival. this, after losing money from its competitor. have caroline hyde from london, david kirkpatrick, ceo of techonomy. had many tech heavyweights at their annual conference. and eric newcomer. how did this deal go down? in the worksbeen for a while back when travis kalanick and emile michael were still working in operational roles of the company. luber has been negotiati

emily: you said cars are an area ripe for disruption.mportant is it that apple not miss out on cars? ♪ emily: let's talk about the world's second-biggest economy, china. how does apple navigate what seem to be uncertain economic and political waters there? tim: china, for us, we make all decisions for the long-term. we are not investing for next quarter or next year, we are thinking many years out. and as i stand back and look at china, i see mega-trends that make china an incredible market, and i don't mean just a market to sell in. i also mean for application developers. we have 1.5 million application developers in china now. probably closer to 2 million. it has been an incredible market place for talent, and in terms of the size of the marketplace. the short-term kinds of economic moves up and down, i do not get too excited about. emily: how realistic is it to expect double-digit growth to continue for apple? to continue in china? tim: it didn't continue last year. >> are the days of double-digit growth over? tim: i think we will do

♪ emily: i'm emily chang. lifeg up, a look inside after twitter.e're joined for a wide waging conversation. the sec withgainst tens of thousands of tech companies. fight for net neutrality. and competitive video gamers get their leak. activision blizzard and us of the sale of the first seven east sports fan tightness, and we went all in. we will. first to our lead, a new hire at twitter. neter head of finance single will become chief financial officer, reporting directly to the ceo. he will assume the role from anthony noto, who has been holding down two jobs. he will continue to serve as twitters coo. for more reaction on the shakeup, we spoke to the former ceo of twitter, who returned to as the ceo oforld a personal fitness platform. >> i have a lot of confidence in so i am over there, sure he is a great addition to the team. quarterer had a strong when it came to user growth. we saw a lot of strategy unfolding when it came to live video partnerships. do you expect a change in strategy with a new cfo? >> i could not say, but those guys are pretty

. ♪ ♪ emily: i am emily chang. this is "bloomberg technology."n spicer steps down as white house press secretary just after anthony scaramucci is named president trump's communications director. we have the latest on today's big white house shakeup. plus, china's master plan to lead the world in artificial intelligence. we dig into beijing's new ambition and how it plans to invest $59 billion. it rolls the dice on its own self driving technology. is it too far behind for the race? we will compare their strategy to uber ube's. a staffing shakeup at the white house. sean spicer announced his resignation after president trump hired anthony scaramucci as his medications director. sarah huckabee sanders will become the white house press secretary. scaramucci is the founder of sky bridge capital and a campaign fundraiser for trump. he joins the team amid intensifying investigation for the trump campaign and its ties to russia. with jared kushner set to speak with senate investigators next of theresident trump's sun and paul manafort are both scheduled

. ♪ ♪ emily: i am emily chang and this is "bloomberg technology."ing up, sprint is tapping warren buffett and john malone for billions of dollars. will it help turn around the struggling telecom giant? we will discuss. investor revolt at uber continues. some of the first backers are looking to sell their shares. with just a few days until "game of thrones" returns, we are taking a closer look at hbo's standalone streaming service and how it stacks up to the competition. the latest twist in the uber saga. bloomberg has learned shareholders and the board have discussed selling some of their shares to softbank and other potential investors. the deal could include an injection of new money into the ride-hailing startup. it is unclear what valuation the shares would carry or how much softbank or other investors would buy. any private share sale like this would need to be approved by uber's board. for more on this story, we are joined by peter elstrom, cory johnson, and eric newcomer who broke the story and covers uber. how will this work? >> the story is

. ♪ ♪ emily: i am emily chang and this is "bloomberg technology."g up, a bloomberg scoop, china fortifies its firewall in the latest move to tighten online censorship. we dig deep into the new crackdown. tesla's model 3e production goes into overdrive. and, two-time nba champion and emerging investor andre iguodala one timesover, how the m.v.p. is making a big play for silicon valley. first, to our lead and a bloomberg scoop. china is cracking down on what its citizens can find on the web. the chinese government has ordered the three major telecom carriers to block individual access to virtual private networks by february 1. blocking vpns basically shuts down a major window to the global internet that helps users bypass restrictions. thousands of websites are currently blocked in china , including the new york times, facebook twitter, and some , google sites, including youtube. peter elstrom is normally based in tokyo, but joins us from new york today. what do we know? >> china has been playing this game of cat and mouse with virtual private network

emily: the e.u.pped google with a massive fine based on favoring their own products in search results. does the e.u. need to take a closer look at how google handles travel? >> i read a little bit about that, but it doesn't say exactly what google would have to change. until we see what that change is we can't really comment. , but google has been a great partner for us. we have done a lot of good work with of them in the past and we hope to continue to have a great combination in the future. emily: is there space for priceline to benefit? the market seems to think so. >> we don't know what the changes in the way google operates how they will be. ,when google has had the change in the past, they have been advantageous to us because we have been able to adapt quickly. the technology people are able to take advantage. we are able to keep up as things change. and, be able to get new things out very rapidly. it's one of the benefits of scale. we can afford all these people to be able to do this. if you a

emily: i am emily chang and this is best of "bloomberg technology." coming up, netflix scorches the subscriber forecast. why content is king. , we discuss the platform how they work without a ceo at the wheel. leaders converge on colorado to exchange ideas on the fortune brainstorm tech conference. resultsearnings exceeded expectations. there is little room for the error. shares climbed 30% this year. they delivered on a key step, adding subscribers. a big portion came from outside the united states. caroline hyde sat down with cory johnson. johnson: they don't see the financial results. what they see is a business that might someday generate the results. how do you have the cash loan to paper all that content? by having subscribers that pay every month. they see an accumulation of subscribers who are sending credit card numbers in and the payments keep flowing through. like will be a geography the united states and canada that are profitable and that's the future for the rest of the world for netflix. users, for04 million the first time international