tv Bloomberg Technology Bloomberg August 19, 2019 5:00pm-6:00pm EDT
♪ emily: i'm emily chang in san francisco and this is "bloomberg technology." twitter and facebook say they have proof of fake accounts backed by the chinese government aimed to undermine chinese protests. plus, deadline extended. commerce secretary wilbur ross says they will ease huawei sanctions for another 90 days.
is there an echo in here? amazon wants to put alexa in cars. has foundtter says it and deleted more than 1000 fake accounts created by the chinese government used to undermine the hong kong protestant -- hong kong protests. acebook said it also acted on tip from twitter, finding some fake accounts. they say they will no longer state advertising from act media worldwide. we are joined by a fellow from new america and in washington, brett, who set up the first tax force -- first task force to counter disinformation in the white house. sarah, what exactly do we know?
sarah: they are finding these coordinated efforts from china trying to discredit the protesters, calling them violent, saying what they are doing is maybe backed by western resources, just trying to cause tension within the group. emily: twitter says it kicked off 936 accounts. facebook, seven pages, three groups. we have statements from both companies. they said, overall, these accounts were attempting to sow discord in hong kong. facebook saying, although the people behind this activity attempted to conceal their identities, our investigation found links to individuals associated with the chinese government. twitter said the same. obviously, it doesn't sound like
a huge number of accounts. but an image can go a long way and have an impact on the world. what is your reaction to this given the work you did with russia and your reaction to media crises? >> china has been building over the last several years capabilities to influence domestic, regional conversations around sensitive topics. what has happened over the last several days based on the information facebook and twitter uncovered, they have chosen to weaponize those capabilities. many felt china would hold back on some of those capabilities, let russia take the heat, but clearly, they feel threatened. they have not yet even begun to scratch the surface software
china supporters that are backed by china are trying to influence these debates. emily: you are looking at some of these posts that they are saying were backed by the chinese government. it is not necessarily surprising given the army of internet mediators behind the scenes in china that we have reported on for many years, but there is some irony that facebook and twitter are blocked in mainland china but not hong kong. >> this is classic chinese state propaganda. the chinese government knows that they need to influence the international perspective of what is going on. so they are going to where the conversation is taking place, facebook and twitter. emily: given the power that you are indicating the chinese
government has, and the levers that they could pull, what are the longer-term dangers of this or longer-term threats of this, given that the u.s. is going into another presidential election? brett: quite significant. the expectation many of us had was that china was going to wait testontinue to develop and some of these capabilities. we see the china daily paper. we have easily have on television. that,here is, behind all a well articulated strategy and one that china has chosen in this instance to activate. what concerns me is, if it is activated not only on hong kong, perhaps on other issues. south china sea, taiwan, let alone global issues, it would be
devastating. china has capabilities that far surpass that of russia. they are able to combine not only this information capability but influence capabilities with the aid they give, with their trade and economic portfolio, which would be much more devastating both to markets as well as political conversations should they choose to go down that path. emily: brett just mentioned the china daily. what exactly does twitter mean when they say they are not going to take advertising from state run media? there is a big asterisk, which is that if it is taxpayer-funded media, bbc for example, or npr, those will be
ok. but there are other organizations like the chinese newspapers you mentioned but also pressure today and others that would fall under this state backed media ban. it is a very small concession for them to make to try to say they are not going to allow propaganda essentially to turn into an advertisement. emily: there are obviously a laundry list of issues that the chinese government cares deeply -- about.it how do you expect this situation with hong kong to play out and the longer-term situation of how the chinese government utilizes power to shape not just chinese media but international media. the chinese government does not want to send
in the military. using tech aches like misinformation, mass propaganda -- using techniques like misinformation, mass propaganda, is a better route than the chinese government saying, we have lost the hearts and minds of the chinese people so we had to send in the security forces. i think that is what they are hoping rather than a full on mobilized security forces. emily: it certainly doesn't look good, these revelations from facebook and twitter. given that we are in the middle of a trade standoff with china, what do you think the appropriate response is from president trump, the white house, in response to these revelations in the midst of obviously a complicated ongoing situation with hong kong and a
trade war. brett: let's remember, for the past 2.5 years, the u.s. government has done very little to tackle this problem. there was a reluctance on the part of the trumpet ministration because of the president -- the trump administration because of the president's own sense of illegitimacy when it came to the russian operations in the 2016 election. we have really fallen behind when it came both to tracking these kind of issues as well as the response. we've got to play catch-up, got to do it quickly. the resourcese, that people have are paltry. it is really just superficial to say that we are doing something. i hope that this most recent bells onses some alarm
capitol hill and people are pressed to do more. former durhamnt, engagement at the white house. -- armor director of engagement at the white house. sarah, thank you. lyft shares experiencing volatility monday after the first lockup period expired, meaning some were able to sell for the first time. shares dropped right after the open before bouncing back. lyft estimated over 2 million of these shares may have been eligible today. coming up, another lifeline for huawei? the u.s. easing sanctions for another 90 days. this is bloomberg. ♪
emily: on monday, commerce secretary wilbur ross announced have abutted would protections to prevent a ban on huawei. the extension would last 90 days. ross further explained how some telecom companies in the u.s. are dependent. what the announcement does not address is the wider national security concerns and it doesn't answer the bigger question of whether u.s. chip companies or other major suppliers will be able to sell parts in china. channel -- a china digital economy fellow. some of the rural carriers we are talking about, eastern oregon telecom, these are companies that supposedly would be crippled if they could not
continue to buy parts from huawei. what do you make of this announcement by secretary ross in the midst of trump himself saying, over the last couple of days, that he wasn't interested in a reprieve. . >> there was drama even late last night where kudlow came out and said we would do the rollover, then trump tweeted and said, wait a second, we are not. these temporary general licenses have almost been expected to rollover. it would be disruptive not only but alsonetworks because you could get updates. i think it was expected that there would be a rollover. now the question was, what will be the resolution if any to what is shaping up to be an impossible dilemma over what to
do about huawei. emily: huawei itself wasn't particularly impressed by this. what are they saying about how much this helps them given that there are still so many outstanding questions? is an important market for any technology player that wants to be relevant. apple goes far beyond the united states and huawei's ambitions are to go far beyond china and the asia-pacific. it actually just proves its point about how vital the networking business is across the world. this issue, like some of the others the administration is pointing to, there is a point where it starts hurting the u.s. itself as well. emily: it has become almost impossible to separate huawei
from the trade war. china has said that they are going to prove -- going to prevent certain u.s. companies or foreign companies from doing business in the u.s. as well. this has been happening for a long time. facebook and twitter haven't been able to operate in china for almost a decade or more. how do all of these pieces sort of fit together in the broader narrative as the u.s. and china try to hammer out a deal. >> the answer is that these pieces don't fit together. there are competing and games for what this administration is actually trying to accomplish. you have a growing number that want to kill huawei as a company globally and significantly weaken it in china. you have others like trump who want to use huawei as leverage
in the trade deal. extending the temporary licenses buys the administration more time to figure out how to square the circle on something that doesn't work. market access for u.s. firms in china has been a long issue. ais is about how we create level playing field when we are talking about a very complex regulatory environment that favors domestic companies. his huawei the right bargaining chip? i would say it is not. emily: late friday, we had a surprise tweet from the president saying, having dinner tonight with tim of apple. they will be spending lots of money in the u.s.. great! after that dinner, the president told reporters some of what they had discussed and that tim cook was making an argument that the
samsung ane advantage. what more do we know about the conversation between tim cook and president trump? is this likely to sway the president to not put tariffs on apple and other products? mark: tim cook has been meeting with president trump and his administration for plenty of time, so this is a purely business meeting. responsibility to by appleuy -- new best shareholders and his company. you have the tariff situation and tim cook needs to do everything to avoid this. they are going to put us at a disadvantage to a south korean company. one could think that is a fair argument. president trump seems to think
that was a good argument. apple'sther hand, .roducts are there's a way to sort of meet in the middle. apple is able to take in a 10% tariff without much of an impact on its bottom line if it is willing to suffer a little bit of a margin hit. emily: we haven't gotten a statement or readout on the meeting from apple but we should wait and see. the deadline for the tariffs to start is september 1. that would hit potential iphone tariffs coming in december. thank you both. foe.g up, finding a common for trump and tech, it is french president macron. why they say no way to france's new digital tax.
emily: one of the largest cryptocurrency exchanges wants to compete with facebook. to partneres looking with other exchanges and governments to create new digital currencies to take on the social media giant's digital going libra. they want to create a "regional" version of libra. a rare moment of unity between the trumpet ministration and tech -- the trump administration and tech titans. the subject of their ire is a new digital tax. they just wrapped up testimony
before government officials, calling on france to end its digital services tax. joining us to discuss, bloomberg tax reporter laura davison. join us --talk to us about the motivation for the tax. it is not just u.s. companies. there are also french companies, british companies, chinese companies. laura: basically, the tax applies to any large technology company operating across borders. google, amazon, facebook are upset because it seems to them that the tax was designed to just hit these big american companies and exclude some smaller european companies. they are quite angry at this and saying this taxes is committed tory against them and saying others consider -- is discriminatory against them and saying others considering this are looking to go after u.s. tech companies without taxing
their own companies within their borders. emily: u.s. companies have been pushing back along with the u.s. administration. a spokesperson for a trade group representing the tech industry said, our members are concerned with the tax, specifically against successful american companies. the tax will disproportionately harm some of the most successful enterprises based in the united states. made the argument that it would be difficult and costly for them to collect the data necessary to pay this tax. can you explain that and do you buy the argument? laura: basically, instead of where you book the income to pay the tax, it is where the user is. facebook says, we track where our users are generally for business purposes but not for tax purposes. as an american, we are in france and we opened up facebook on our
that wouldaw an ad, technically be taxed but they are not tracking that movement. a french person checking their social media account would fall out of the bucket. it gets very complicated for facebook and these tech companies to be tracking whether users are as well as where their advertisers are at all times. emily: how much could it cost these companies? laura: they have been really shy about getting specific they have said millions. it is going to be a costly endeavor. particularly if different countries start adding on slightly different versions that have different requirements. it could be a technological as well as a monetary nightmare. that is why they are sort of banding together with the help of the u.s. government to say, look, can we come up with some broad solution that is global?
there are talks ongoing at the g7 this weekend and they will be more talks. emily: is there any sign of the french government potentially relenting given the threats from president trump? laura: he said he wants to put a 100% tariff on french wine, maybe other goods. in a tweet not long ago, he was saying that american wine is so much better than french wine. the french government so far as seemed undeterred. that is a good negotiating tactic for them as well, to wait until the u.s. comes to the table. here is the time that we can actually sit down and talk. emily: i know you will continue to follow that one, thank you for the additional context. coming up, next time you go on a road trip and call shotgun, alexa may be able to reserve you the front seat. amazon's journey into your car,
this is bloomberg technology. i'm emily chang. let's continue the look at the u.s. versus huawei. huawei off the hook for another 90 days, according to wilbur ross. a limited set of exemptions to be granted to telecom companies that are dependent on huawei, but the question on whether u.s. chip companies and other suppliers will be able to sell products to huawei. to discuss, sarah mcgregor who leads economic coverage, coverage of u.s. economic policy for bloomberg joins us now. we are talking about rural mobile networks.
how much does this reprieve actually helped huawei? sarah: according to huawei itself who a statement today, this really does not help their business a lot. they still see the blacklisting of the company as an unjust move, as they put it. the trump administration gave this 90 day extension which really was an olive branch to u.s. companies that do business with huawei and the consumers who use those networks or smart folks where that reprieve will be necessary to keep those things going. in addition, the trump administration and 46 more affiliates of huawei towards the blacklist from all over the world. it offered this small reprieve but it piles the pressure on huawei more too by adding those affiliates to the blacklist. emily: now, continuing mixed messages from the president and the administration, the president saying he was not so excited about a reprieve for huawei. over the weekend, talking about
trade in general, saying we are doing very well with china and talking. he's suggesting the u.s. will make a deal when it is ready and china is desperate. how true is that? sarah: as you said, it was confusing over the weekend because trump suggested he may not even grant this extension that was granted today. again, it is really mixed messages. it is hard to tell where these talks are at. huawei was never part of the official talks but more of a wink-wink type of situation. the broader issue of huawei and really opening up and allowing those big companies to do business with huawei, get those special licenses on a broader scale, we are still waiting. it was always tied to agriculture purchases. that is what we heard all along. china has halted those because of the trade talks breaking down. the two sides are speaking. low-level talks going on right
now. they are supposed to meet in early september so there is no room for progress within those talks. there is a window right now. you know, i'm sure huawei, these licenses are part of that. emily: the administration officials did outline next steps for talks over the weekend. what actually is coming next given the talks are supposed to restart in september, but there's a long couple weeks between now and then? sarah: it is such a roller coaster. what we heard from larry kudlow over the weekend is over the next 10 days, deputies are speaking. the mid-level negotiators. they will not be the decision-makers but they will lay a path forward. the top officials may speak by phone before the tariffs take effect, but early september, the chinese are expected to come here. that could be sort of days or weeks after these new tariffs take effect at $110 billion of chinese goods. china says they will retaliate.
again, it is this esau where we see progress being made but then an escalation happening. at any point, the whole thing could fall apart or maybe they will come up with a deal. i don't know. emily: sarah mcgregor, busy for us. thank you so much for that update. ok, when it comes to america's favorite smart speaker, amazon's alexa and echo technology rein supreme. nearly 64% of all u.s. smart speaker users used alexa. but, when it comes to hitting the open road, putting the pedal to the metal, amazon takes a backseat to google and apple. amazon is hoping to change that with the introduction of echo auto, a dashboard voice assistant that will help auto enthusiast to have alexa accompany them on their drive. to tell us more, we have met in seattle who covers amazon for us. how much traction has amazon
actually gained in the car market? matt: with echo auto, it is really early. they said they had one million preorders which is still in invite only mode. we don't know how many of the one million orders they say they got have been shipped out. in terms of customer reception, it has been a mixed bag. people say it is good at picking up your voice over air conditioning or open windows. people complain about crashes and some hangups. it seems to be a year after they introduced the product work in progress. emily: aren't bmw and audi using cars that integrate alexa? matt: it should be distinct from the smart speaker add-on that you put on your dash. the long game amazon is going for and that led to those partnerships. they are try to get inside the dashboard by default. relationships with automakers they hope to strike where it
will come with alexa natively. there have been a few of those. they say they would like to get more, but they are a bit behind, google particularly in getting inside the dashboard. emily: how does this compare to apple and google? it's always a surprise when i get a rental car and it has one of them integrated. you see it in the wild. how much traction has apple and google themselves had? matt: pretty good deal of traction, largely because of the smartphones that are in our pockets. android and ios on the part of apple. they kind of forced the automakers that people often time want a smart phone in their car. that led to car play and android auto. they are ready to be powered by your smartphone. that is something amazon does not have and cannot compete with without owning a smartphone platform. that is why they have tried to go with an end-around.
these business relationship with the automakers themselves to put it in the dashboard. emily: there is this bigger question about how much will voice command actually be in the car? is it the new future interface or will it not be as popular as some might think it could be? matt: great question. we have seen questions pop up just in the home. these are music boxes, trivia boxes. people don't use them for a lot more than that. i think the car has similar scenarios -- directions to a gas station or starbucks. you would rather not have to thumb through a phone to get. beyond those couple of first applications, i am not sure where this goes but amazon is betting on it. emily: ok, matt day, thank you so much. esrning now to baidu, shar
surging after revenue rose to $3.84 billion, beating estimates. it proves china's biggest source giant managed to hold onto advertising despite challenges from local rivals. baidu's better-than-expected results will soothe investor concerns that the 19-year-old company is losing steam as china internet evolves. coming up, is ai killing jobs? zip recruiter claims it may be creating them. we will talk about the future of job automation, next. this is bloomberg. ♪
emily: as a.i. continues to advance, so do fears about job displacement. according to a study, 50% of the work we currently do could be automated. that same study predicts by 2030, 30% of workers will potentially be displaced by technology. online employment marketplace ziprecruiter is a bit more optimistic, actually a lot more optimistic. according to the company's report, a.i. created three times as many jobs as it replaced in 2018. joining us for our work shifted series, ian segal. ian, explain why such a disparity between popular belief about how a.i. is going to impact the job market? did ziprecruiter, what we
is we looked at over 50 million job postings that came online over the last six months. we looked at a number of them that had been impacted by a.i. both positively and negatively. three times as many jobs created as a result of a.i. has been destroyed. will that trend continue over time? it is hard to say with precision but in every industry we looked at, we did a deep dive in five different industries where a.i. is growing. it is being used in partnership with humans as opposed to a replacement. so far, the evidence would suggest it is not on the horizon. emily: ziprecruiter comes across 25 million users looking for jobs every month. how are you using a.i. to improve the job search and argue replacing any humans with technology? ian: i think it is fair to say that 100 out of 100 jobseekers would tell you that they would prefer to be recruited rather than apply to a job.
what is happening with a.i. is the technology has become so advanced that we are capable of putting a job seeker together with an employer before the job seeker has even applied. that is really transforming the way jobseekers look for work and i think that will be the trend of the future. emily: what does it mean for a company like linkin, for example? ian: linkedin is a social network. go to connect with the peers they meet. ziprecruiter is a place you go to find work. we are a place that is very task oriented for someone who is in the process of looking for their next job. putting up your profile on ziprecruiter, enabling yourself to get recruited, that is the reason you come to the site. emily: talk to us about the current trends you are seeing. unemployment is low but there is a lot of geopolitical uncertainty. and, macro economic uncertainty
and market volatility. how is that impacting the trends you are seeing in the job market right now? ian: at ziprecruiter, we have job postings so in many ways, we have indicators that predict where the industry is going. one of the things that is staying consistently true is a number of job postings in 2019 is up over the number of job postings in 2018. there is wage increase. there's a record number of jobs going online with benefits. at least for right now, it is still very much a job seeker's market and it is a golden age to be a job seeker because with sub 4% on appointment, there is a dogfight for talent amongst employers. emily: here in silicon valley, we have been talking about techlash, the backlash against the tech industry. increasing scrutiny from governments around the world of big tech in general. are you seeing any changes in the places that people want to
go? do people still want to work for some of these big, historically popular tech companies, or are they looking for something else? ian: it is really interesting because of you look at the top three things jobseekers care about, number one is salary. number two is location. number three is flex ability. if you look at the modern age of jobseekers, millennials, they have flip-flopped a number two and number three. flexibility is the thing they care about second and then location is third. what that is doing is it is opening opportunity for companies that are willing to allow telecommuting which is becoming a viable solution. while there may not be as many people going to look for work in silicon valley or other tech hubs, the tech industry is one of the three fastest growing in the country. emily: meantime, many people might know ziprecruiter because they have heard your commercial. i think i could recite your commercial word for word. your marketing is reaching me.
how effective has your marketing budget been in driving business? ian: i started the business at ziprecruiter because i had worked for a number of startups that were too small to have an hr department. i was doing my own recruiting. i had to post the same job to different job boards. i just wish for a magic button i could push that would send it to all job boards at once. the a reallyt to appealing solution and value proposition to most of the businesses in america. ziprecruiter is growing fantastically well. we have been pushing the edge on innovation with things like a.i. in terms of matching. emily: is the marketing plan working? ian: it's working really well, yes. emily: ziprecruiter ceo and cofounder ian siegel, thank you for joining us. ahead, venture capital firm clio capital is betting big on female
toly: tesla has a plan revive its flagging solar roof division. the company is offering no contract packages. elon musk tweeting "with the no lower pricing, it is like having a monte -- money printer on your roof." it comes a month after tesla reported its third quarterly decline in solar installations. we will keep following that story. while venture capital funding
has soared to record heights in recent years, the number of women in the field has remained almost stagnant. only 11% of venture capitalists and 71% of u.s. firms have no female investors. still. one venture capital firm is looking to put the power back in women's hands. raisedpital announced it $3.5 million for a dv fund that will invest in female entrepreneur is will act as scouts who will then use the funding to make their own investments. joining us to discuss, cleo capital managing director, sarah. good to have you on the show. you are actually betting women entrepreneurs can find the next topic, right? sarah: scott investing has existed for over a decade now. all of the big venture capital firms at some point in the lifecycle have tried this which is basically you take -- usually founders who are incredibly well-connected. they have worked at top companies but not personally
liquid because they are struggling to get their own startup and have not taken money off the table. they don't have liquidity but they have access to an amazing network. and they geteturn the track record and experience and they can help companies really come to life. this has been around for a decade. it works. people have seen immediate returns. emily: sequoia, legendary venture capital firm, has had a scout program for a long time. you were a scout for sequoia. the vast majority of scouts have been men. meant and nowre the new classes 30%. 6% more women and now they are saying 30% are women. so, unfortunately, this has perpetuated the all-male v.c. network. how does this help break that? sarah: by putting women in. it is not just sequoia.
a number of big venture funds have scout networks. tom the date i was able gather, it is about 90% men. even if there are 200 scouts running around the bay area, investing in these deals, 90% of them are men. when you look at what happens when you are giving them that access to capital and not giving that to women, right, then you end up in seeing who is able to get interesting deals, become an investor, make money and then recycle it back into the ecosystem. women are shut out at every piece of that and hopefully we will change that. emily: i feel like i have to trumpet -- you are not just a woman, you are a black female entrepreneur. it is very rare to see black women in venture capital, let alone women. what was the fundraising environment like for you? how receptive are people to your idea and how did it make you feel about how much progress
there has been? sarah: raising venture capital funds is hard for everyone when you first start. that being said, my $3.5 million fund which is a very small amount of money, the second largest venture capital first time fund ever raised by a black female v.c. in the country ever. right? when you think about that, given the magnitude, there is another fund who announced today, we have a nin $9 billion equity fund. i cannot even afford one month of your rent. there's a huge dichotomy and that is a systemic problem. that is a problem when you look at what happens to returns, the entrepreneurs you back. there's a huge missing piece. we talk about that on the startup side and a little bit on the side of who is being employed by venture funds. when you look at it, who is starting venture funds, that's another piece of the ecosystem that is in desperate shape.
women of color are just not well represented. emily: you were a critical part of silicon valley's me too movement. you spoke out about your experiences with dave mcclure. i know you have been involved in the community and helping to keep the movement going since then. do you think things in silicon valley? sarah: i think there's a lot more willingness to talk about the problem, and that is a huge start in the right direction, but it's not enough. venture capitalists, we run on capital so if we are not getting money, deploy money into more diverse founders, that is where we change things in our industry. i think it is wonderful that journalists like yourselves, people are taking me seriously, i think it is a first step. until there is more people who look like me running funds, then
i think we are going to have a long way to go. emily: absolutely. in terms of strategy for you, how did you decide who to fund? ofraise has gotten a lot publicity in the efforts they have made. i have heard women entrepreneurs say it is hard to get them to take me seriously. there are so few opportunity for women of color still. how do you decide who to bet on? you are trying to anoint some of the changemakers of the future. sarah: it has been awesome to see our scout group come together because they are incredibly diverse. we have women in almost every geography, bay area, new york, detroit, denver. all over the country. they are incredibly diverse racially, sexually orientation. the companies they built, little rocket scientists who work at nasa to a former magazine editor.
there's a huge diversity in that. what they are able to do as they can go out and invest in what they are drawn to and what they love so they don't have to sit there and think how do i make sure every in vestment i do is as diverse it can be because they are naturally drawn to different things, people and networks. that is how you get real diversity. you put a diverse group of people together and let them go find what they are passionate about. emily: quickly, what are the hot trends? a.i., crypto? sarah: i am still a crypto fan. it has actually been interesting. i have been hearing a lot about ocean technology. i have been hearing the shift towards things that are directly or indirectly going to help climate change, it has been one of the biggest shifts over the last year or so. a huge push towards that. i also think there is a lot of innovation everywhere right now, so we are seeing interesting companies come out of every sector. emily: sarah kunst, thank you.
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paul: welcome to daybreak australia. shery: i'm shery ahn in new york. sophie: i'm sophie kamaruddin in hong kong. we are counting down to asia's major market open. ♪ storiesre are the top we are covering in the next hour. huawei wins a waiver extension in the u.s. but still says it is being treated unfairly. the new reprieve will last for 90 days. baidu's earnings top estimates and holding onto advertising