tv Bloomberg Technology Bloomberg April 28, 2017 5:00pm-6:01pm EDT
for him to rescind the clean power plan. secretary of state rex tillerson plans to cut 2200 diplomats and civil servants, 9% of the agency's workforce. familiar with the matter say most of these cuts will come from attrition. critics say the plan will hollow out the diplomatic corps. and europe, british police say they disrupted an act of terror plot with the raids in london and southeastern england. one woman was shot as heavily armed counterterrorism officers stormed a house on a residential street. police say six suspects were arrested on terror related charges. authorities say 13 potential attacks have been foiled in the last 4 years. in africa, pope francis is in cairo, where he is showing solidarity with egypt's embattled christian community.
three weeks ago islamic militants killed more than 40 people in a palm sunday gathering. global news 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. i'm alisa parenti. this is bloomberg. "bloomberg technology" is next. caroline: i'm caroline hyde. this is "bloomberg technology." tech hit new records, dominating the world's most valuable list. will the earnings euphoria hold? two tech firms make their public debut with two very different performances. is the market getting too hot to handle? approachest trump his 100th day in office, we will discuss the policies that had the biggest impact on tech,
immigration, and tax reform. first, to our lead. this week has been filled with earnings from tech giants like amazon, alphabet, microsoft, just to name three, all of which have hit record highs this friday trade. alphabet reported thursday and showed the mobile boom is finally risking profits as google benefits from the surging clicks on smartphone apps. the company downplayed the effect of its advertiser crisis, citing growth from the site is the key driver. mahaney.s is mark and, bloomberg editor at large cory johnson. what a week. mark? they gaveink investors three things. they bought back stock, $1.1 billion of stock. secondly, they showed stable margins in their core business
gradethird, they showed consecutive revenue growth. have grown the revenue 20% year-over-year for 29 straight quarters, one quarter over seven years. there is no other company that done his -- that has done it, i think it history. the management and expenses and giving back of cash to shareholders, there's really not much to not like about that. cory: the revenue growth rate, at this size to be getting so much bigger, it's interesting. the thing that jumped at me with the click number, 44% growth in better.was shockingly it just shows that mobile is dominant for them. caroline: just the last two weeks of the quarter, concerns about the advertiser backlash. i spoke to an executive of alphabet, saying in the
medium-term this will be a modest effect, and we will invest longer-term. do you think it is but a small drop in the ocean? mark: i asked on the earnings call about whether they were seeing pushback from advertisers. my interpretation was that they are not seeing any impact at all, they think after the events took place they went out of their way to go to advertisers. martin sarao was saying how aggressively google was going out there. i think it will turn out to be just as momentous for google as the debate over facebook was six months ago, not material at all. what's interesting is they think eventually -- let's think of another cloud winner here, amazon. again, nominal growth in excess of 20%. for the full company. it is a spectacular machine.
i found myself in this quarter spending time looking at the retail business. when services got some much attention and they started breaking out numbers, the excel me, weree you and looking at sources and trying to understand that business. firing on business is all cylinders. the cash flow generation from the amazon web services business allows them to sink even more money to retail business and run this thing on negative margins, and grow and grow and invest in the end distribution. it is sort of interesting to see. in technology we see the leading companies, leading companies are not 2 or 3 times bigger than a leading player, they are 10 times bigger. that's the network effect. it was true of cisco and intel and google. what's interesting is that amazon brought the network effect to retail, selling stuff, and they've got that -- they are 10 times bigger than any other
online competitor in the retail business. onoline: i want to focus in my bloomberg. talking about the sheer size and scale of these companies, i went into the s&p 500. if you measure it by market cap, go to memb if you go to bloomberg, and measure it by market cap, we got dominated by the tech sector. apple at the top by quickly below in terms of market cap - -then here comes facebook, $427 billion market cap. here they come in terms of their own earnings. mark: facebook without was one of the least risky stocks going into the earnings. we were a little worried about amazon. they did not guide down. with facebook, underlying trends are as strong, probably strongest across tech. they will do something close to 50% revenue growth, faster than anybody else, and they are doing it at scale and we don't think there will be a dramatic cut to margins. we still see advertiser demand facebookemand to run
campaigns and increasingly instagram campaigns is still rising. it's one of our top picks, we think it is one of the best fundamental stories across tech. cory: he was growing at high 40% a year, two years ago. point about instagram was an important one, it's to grant was a revenue free product not that long ago. as regular instagram users, we see the ads popping up. it's also growing users in ways that twitter could only dream of. it is a bigger platform. the decision to buy it for under $1 billion a few years back looks beyond brilliant. let's look at the other fundamentals. mark, i want to be looking at the top 100 days. this is pretty simple but it turns out president trump made tech great again.
since his election, the market cap of the tech leaders that risen $400-- it has billion. $400 billion a day. that is not something people would have expected when they saw the news that trump was becoming president. there were concerns over whether he would try to remove some of their tax shelters. in fact, the fundamentals haven't changed at all. we have a relatively successful tech ipo in the first 100 days, the snapchat ipo. it looks like tech has done nothing but benefit so far from president trump. cory: it's a policy effect from the administration. caroline: taxes, even though --so much crexendo of help has been built on the tax. cory: if there's a recreational
-- repatriation, come but is. we will see the rules from that, how it's going to work. apple and intel who have overseas cash, that built structures to keep those that are very low tax rates. this tax holiday might not be something they want to take advantage of. caroline: and it's got to get through congress. what a discussion. thank you so much great dynamic as ever, mark mahaney, managing director at rbc. cory johnson, thank you for joining us. a story we are watching for you, tesla expanding its battery cell production. tesla ceo elon musk says the company is ready to build 4 fact ories. tesla has one digg a factory nearing the end of construction near reno, nevada. not reveal any future locations straight coming up, qualcomm forced to lower profit forecast it may just last week. by the chipmaker's legal dispute -- why the chipmaker's legal
now another mover we watching, shares of gopro tumble . more money was rushing out of the stock in the latest quarter, beating estimates and giving a bullish second-quarter forecast. investors still not convinced to go push ahead with the turnaround. 75% of the shares on the market are now shorted according to its latest finding. now, the legal dispute between apple and qualcomm is escalating. the chipmaker says that apple is cutting off licensing payments related to the iphone until the contract is settled. qualcomm executive vice president and general counsel
dan rosenberg said in a statement, apple is interfering with qualcomm's long-standing agreements with qualcomm's licensees. these license agreements remain valid and enforceable. the company is one of the main supply components to the iphone. joining us now to discuss is ian king. actually, is it one of the most important suppliers? what apple is trying to say is, you claim all these royalties when we are not always using your chip. >> there's two things at play here. and the patents. the patents cover the fundamental technologies of all high-speed networks and phones. so whether you use qualcomm chips or not, you pay qualcomm. that's the rule in the phone industry. apple is saying, you are paying a percentage of the full price of the phone. there are so many other things in the phone. why should i be paying for these things?
caroline: do you think it is all out more? >> absolutely. the expectations qualcomm had a week ago when they gave the forecast you just mentioned, , we don'txplicitly really expect apple to do this. caroline: when you are looking at how much they cut their profit forecast, it could be as much as 30% more, 30% less of the top of the range in terms of earning per share guidance. how much would this be done if supplier start being lent on by apple and they follow suit and stop paying qualcomm? >> is sick obligated situation. -- its a complicated situation. qualcomm has taken $5 million out of the quarterly revenue. on the licensing revenue, apple indirectly through its suppliers is paying $2 billion a year in
licensing revenue. it's almost pure profit and that's a lot of money. this will run and run. it's already been five years according to apple that they've been in a linguistic dispute, and now it's gone to the courts. could payments be on hold? look at, two ways to it. if it goes through the court and follows the usual procedures, appeals backwards and forwards, a couple years at the minimum. that's a long time to be without that license revenue. the way i look at it from qualcomm's perspective, this is just a negotiation, a way of the two trying to find a middle ground. caroline: what surprised me is shares did initially react for qualcomm, but then they bounced back and they were up 2/10 last time i looked. why is the share price not under more duress?
>> this is just confirming the less good scenarios that people already can. on a headline basis it looks horrible. as people have been predicting this might happen. ian king, great reporting. you've been all over this story. coming up, the ipo pipeline is heating up with eight listing this this week, including 2 tech firms just today. ofwill hear from the ceo's both companies, next. our interactive tv function, you can find it at tv on the bloomberg. what just live, see previous interviews. live, see previous interviews. become a part of the show by sending us if it messages during our shows. -- instant messages during our
caroline: it was a busy week for the ipo market. two tech listings friday that turned into two very different performances straight out there and act by intel managed 20%, while kobani, and e-commerce platform to buy used cars, tumbled 26% in the session. the ceosnka spoke to of both companies from the new york stock exchange. tom riley says why he thinks the company had the support of its investors. >> all of our financial investors are extremely happy. intel is an investor but also a strategic partner. they are happy with his relationship. we're working on designing software and hardware together. it is a future design for computing intensive analytics. we are speeding up the performance of it.
our partnership with intel and their investment, a strategic relationship where we are doing joint engineering together to change how computers in the future will be different. >> looking at that evaluation, the optics is not great when you have what is perceived as a down or flat round, if you could go back, would you have still taken that $4.1 billion value? i know it's a strategic partnership but there is some concerns there when it comes to pricing options, employ them are all, or the aura on the street. >> putting optics aside, we are excited about this run. we are excited about what we built and the growth trajectory we have going forward. we have so much behind us with that intel partnership, we would never have traded that. we are doing intel together in our five-year, 10 year journey -- what we are doing together in our five-year, 10 year journey, is incredible. pretty much everyone and everything is becoming connected.
that is bringing so much data. in 2020, 90% of the world's data doesn't exist today. all the new data is coming into our platform. caroline: that was thomas riley, ceo of cloudera. >> i think every cabinet goes through a couple stages. one stages exploration phase, when you are trying to figure out does your product figure audience. we are in the execution phase now and public markets are a great place to finance yourself. >> when you think about the markets you are in, i know one of your partners allies in the u.s. has talked just this month, bringing down its expectation. when you think about some of the changes in the industry, what are you blocking and tackling for 2017? >> i think the macro environment is always changing. a few cycles every five years or so. we focused on building our
companies, they continue to grow very quickly. whether it's car sales moving up or down or price moving around -- thaten you do look at growth, topline, it was about 180% last you're on a revenue basis. -- year i revenue basis. investors must have like that. what was the feedback you had? >> we have to and offering that we feel is very strong. -- got an offering that we feel is strong. a car in 15 minutes and deliver it to their door and they save $1500. that's a really high offering and that is what is driving our growth. caroline: that was the ceo of carvana. let's get a wrapup of the tech ipos. great interviews, two very different performances straight talk to us about whether we should be blaming the bankers in this, was carvana
mispriced, is the other leaving too much money on the table? alex: in my world they raise the exact same amount, selling 50 million shares for 15 million on top. thatyou look at cloudera, was arguably a very well priced offering on the basis of its past round. as i was pushing tom they're a little bit, it is a big haircut in terms of value. they did bring up the strategic partnership but it is a question that folks in silicon valley are asking, as when that last round, a little higher than what was realistic. investors seem to like that, it is pushing this idea they are willing to bet on these early-stage unprofitable tech companies. those two stocks have traded up. thedera is continuing silicon valley ipo pipeline that wear comfortable with. on the flipside, carvana, a phoenix-based company, is different. they are consumer facing. as a platform to sell used cars
online. the expectations for used car prices are coming down a little bit, and there are some rumblings in terms of the car loan industry. you have people like ally, the biggest u.s. auto financer, upping their provisions for auto loans for the end of the year. basically they are concerned about people not paying back auto loans. two very different situations here. the bottom line is, we have 5 listings today at the new york stock exchange. if you are going to go public, everyone is telling me if you are ready, you have to go now. you don't know how good how long these good conditions will last. caroline: the ipo landscape never seemed healthy but just for the short term. one of those -- what about those that are just at the starting gate? alex: the next couple weeks might be a little quieter because it is on a season and
people like to wait to get refresh financials. everyone is watching and waiting for the biggest companies. we saw news out of dropbox this week. it seems like some of these bigger ones that everyone is paying attention to a released touting the right numbers that people on the street will care about if they go public. looking forward -- it is still enterprise. there are some companies in the pipeline, but not as many hitting the road right now just because of the schedule kind of positive round earnings season. caroline: is this just america, or is it geographically based? international excitement, five years? alex: in the u.s. right now, there is less economic un-ease. right now with the market still in the u.s. at highs since basically the recession, volatility this week fell to the lowest level. contest the lowest level since 2007. -- it touch the lowest level since 2007.
if you are a u.s. company, you should go. in europe it has been at it more of a challenge. we should continue to see more activity here. caroline: all eyes on spotify. thank you very much reporting, great interviews. -- much. great reporting, great interviews. we will dig into the investment opportunities for this emerging sector. this is bloomberg. ♪
but also reiterated his immigration stance. pres. trump: we need a wall. we will build a wall. don't even think about it. but even think about it. -- don't even think about it. that's an easy one. we are going to build a wall. >> president trump is the first president in 34 years to speak to the nra. 30 houseboats were followed quickly by unanimous senate passage of a stopgap spending bill just hours before the midnight shutdown deadline. the measure now goes to president trump for his signature. a news agency reported north korea testfired a ballistic missile and it appears to have failed. earlier u.s. secretary of state rex tillerson one that north korea is wishing the world closer to conflict with these tests. the chair of the united nations security council meeting today -- >> in light of the growing
threat, the time has come for all of us to put new pressure on north korea to abandon this dangerous path. irg this council to act before north korea does. >> meanwhile, south korea's foreign minister discuss the nuclear threat posed by the north. >> in a nutshell, north korea's nuclear capability coupled with the intent to actually use them bring us ever so closer to the tipping point. it's no wonder that some experts say the world is freezing -- facing its greatest nuclear emergency since the cuban missile crisis. u.s.x tillerson says the does not seek a regime change in north korea and the taliban announce the beginning of their spring offensive today, promising to build their political base in the country while focusing military assaults on international coalition and afghan security forces. a spokesman announced the launch of that offensive, if both taliban controlled with an half
of the country, the taliban to this year's offensive operation named for the taliban leader killed in a u.s. drone strike last year. eu leaders are ready to tell the u.k. they are united when it comes to brexit heard there will be a summit tomorrow in brussels to discuss the u.k.'s departure from the bloc. leaders will talk of unity and warned the u.k. against train to create division in hopes of getting a better exit deal. a former federal prosecutor and civil rights chief at the justice department has been sworn in as president trump's labor secretary. he is alex acosta. global news 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. i'm alisa parenti. this is bloomberg. ♪ caroline: this is bloomberg. --this is "bloomberg technology ." was firstdent trump
elected, many tech leaders spoke strongly against him. where do things stand now between washington and silicon valley, after the white house's proposals on the h-1b visa program, net neutrality, and tax reform? i spoke with the bloomberg technology executive editor about this. there is still expectation that there will be some kind of a reform of the tax code. we haven't seen a lot of detail from the one sheet that we got from the oval office. but, if all goes to plan, you are going to see the tech companies can bring back billions of dollars from overseas at a much lower tax rate. and that is going to result in anddends, buybacks, possibly executive compensation, things the tech companies are eager to have. caroline: this is why we've seen the sounds, the facebook, the amazon, netflix, google all are
perform when it comes to the stock prices. what does it mean for the smaller players in silicon valley? soundre's a giant sucking in silicon valley when it comes to smaller companies. his big internet companies are doing so well. one vc told me this morning they are a natural monopoly where the scale that they get begets more customers, more spending. it's very powerful. in politics, it's the same type of thing where when you get to the net neutrality debate, netfilx is going to shrug their shoulders this week, and the startups are the ones that are screaming because they will probably lose out. caroline: we have 800 startups and investors trying to really put a lesson towards the fcc, saying why they don't need to see menu neutrality. to theto shift attention giants and a stock prices, and outperformance in terms of numbers. for the first perhaps underperformer, twitter didn't
--they certainly did in terms of numbers of users. >> user growth was key for twitter this time around. that is the thing that has been getting them quarter after quarter after order. what we saw earlier this week was, they have moved the needle in the right direction. we are not seeing the profitability, we have questions about that, revenue growth questions about that. users are back, and the hope is for investors the once you get the users, you get the advertisers to come in, hey, this is a way to reach a new segment of the audience. we saw twitter talking about people who are politically engaged. there's a lot to talk about, when donald trump tweets, people pay attention. they didn't name donald trump. certainly people are -- new users are coming to twitter as a place to have conversation about things that matter to them, and that really made a difference on the numbers. caroline: they're coming off near record low.
alphabet, amazon keeps spring boarding from their record high. >> that's right. it is a real story of continued dominance. we were worried before the earnings, the shares, it would be a record so the bar is set high, really. they continue to turn out growth above 20%, and these companies are so huge crate that's like a twitter every quarter, basically. caroline: quite phenomenal. when are we looking at the bar being set that high? we've heard so much about flying vehicles this week as well. it has been a laughable factor. it seems to be becoming a reality. from alpha that -- alphabet, page is backing one of them that we saw take to the skies. >> that's right. this one looked more like a new age jet ski that flew in the air. that is starting for kind of rich people who live on a lake, by the looks of things. larry page iserm,
obsessed with transportation and making it more efficient. the long-term play is get a few people to use this first, and then, so segue into a device in 10 or 15 years. caroline: this has been uber's moonshot. they've brought together the great, the good, the thought leaders in flying autonomous vehicles in davos this week. >> that's right. is trying to really be an innovation leader when it comes to transportation. driverless, they made big advances there. some of them have gotten them in trouble with google. flying vehicles is another one. i think it's a little bit further off. you also have to think about the other ways we going to change transportation in silicon valley. you have elon musk talking about his subterranean tunnels, he's going to start digging. he has that whole he's digging. you've got the hyperloop idea out there.
there are a lot of people that are thinking differently about our commute. there are many hurdles ahead for the sector. how do investors look at this emerging field? with us is the ceo of starburst accelerator, which helps startups raise seed funding. you were in davos at the elevate event. event.as really a great what strikes me the most is the energy was there. it was the beginning of a new era. a lot of order has been addressed, discussed. i'm sure what we are going to
see, what we discuss, we see that in the coming years very soon. caroline: uber said it would like to see flying vehicles being demo'd in 2020. is this a reality, how quickly we start to see uber using the source of flying vehicles? toyeah, i think it's going be reality. i think it will happen much quicker than we thought a year ago, because there's a couple of elements that are ready now. we look at the battery, they have the right density, the right energy storage. battery ok. the supercharger ready too. in short order you will be able to refuel or recharge your vehicle in less than 5 minutes. the architecture of this vehicle there is someed, consensus between a mix of a helicopter and a plane and what did aurora space system in terms of a demonstrator was quite interesting, and quite feasible.
when i read things that i'm going to see these first flying cars, at least in a mode of transportation doing their first test flight by next year, that's for sure. caroline: test flight by next year. maybe being used as soon as 2020. what is the market like? where does the demand currently stand? >> the new thing about the business, as uber is pushing it, uber is creating the right business case for that. in the past, all the different other platform and vehicle we have seen are more for leisure type of application. caroline: super rich. >> which is still a niche market. it's not well-suited for vc's. vc's, more for passionate business or sovereign fund that want to build their own industry. of timingy a question
and i think the timing is right. and looks at the business, they operate in more than 500 cities. they estimate, they think that's a number of this type of vehicle is between 500 to 1000. , there's a the math real market. it's a couple of billion dollars market, at least for the platform manufacturer. will see another one or two unicorns emerging out of the aerospace sequence. caroline: you say uber works in 500 cities, but i came here from berlin and it doesn't work all that pleasantly in 500 cities. sometimes they had to work with the regulators and sometimes there are taxis and certainly not individual private drivers. what are the regulatory handles looking like? >> there's two things about the new business.
new business, they are not going to fight the legacy taxi driver industry and lobby. they are going to bring more electric vehicles. it's going to commit less -- you are going to reduce traffic underground as you're going to some of it through the air. you are really going to add to the commuting experience in each of the cities. maybe berlin or paris won't be the first adopters for sure, but when you look at cities like -- they talked about in dalls and dub to the commuting ai, but when you get a city like jakarta or hong kong, shanghai, beijing or so polo, -- sao paolo, these megacities, terrible traffic, i'm sure they will be the early adopters and they will push even the into the --o evolve process or all that is necessary
to get it running quickly. caroline: who are going to be these unicorns you say are born out of this? >> we are going to release our report on these new flying vehicles. we have listed 7 different categories. kitty hawk is in one of them. this probably one that will emerge, fixed wing electric, multiple takeoff and landing category. in that category, there's a couple of players. lily amount of germany is one of them. about.i talked there's still a few that have emerged, but i know they are working. caroline: and a whole ecosystem that will wield around. it has been wonderful having your perspective. back from dallas, after you were
with all the movers and shakers when it comes to flying cars. with starburst accelerators. staying with uber, at the center of the alphabet lawsuit, sat down from his post. live in dusky will remain at uber despite his rule change. he said he will not be involved in decisions relating to lie down technology. googles autonomous driving unit accused of stealing trade secrets. wave isp, the vr cresting. we speak to a hollywood heavyweight on his plans to bring the technology to the screen. this weekend on bloomberg television, we bring you our best interviews from the week including the fcc chairman aji pipe speaking to us -- cha irman speaking to us. tune in on saturday for "the
the premiere of the rtl summit kicked off in a lay this week. the event gathered hollywood's leading innovators and storytellers in the rapidly evolving field of entertainment. one notable player in attendance is robert stromberg. the two-time academy award winner also the cofounder of the virtual reality company. it's a constant studio and production company that combines storytelling and technology to create immersive vr experiences. joining us to discuss in los angeles is robert strong. wonderful to have you on the show. i want you to tell us about the vr summit that has been kicked off. this is where we show we are at this tipping point in hollywood, whether you are gathering -- gathering to want to adopt
immersive technology that much more? >> i think everybody's really excited about this brand-new medium, and i think we are still at the early stages of what it could become. what we are finding out is that it will be a really powerful storytelling, indeed. exploringare really things like how to direct in vr, how to tell a story and how to develop characters, how to edit. i think it is still in the exploratory stages, but it's a really exciting future for the combination of cinema and the gaming community, and hollywood in general. caroline: you are a two-time academy award winner. where did you feel like you were pushing the boundaries and starting to double within the immersive entertainment world? >> i started this journey on
exploring vr when i was working on avatar. we were creating these 360 degree worlds for the first time, and actually making a movie in that world. jim cameron had a virtual camera, and he could go into those locations, and actually create a film that way. i just saw it was simply a matter of time before we would take the technology and develop it so it was actually stepped into those worlds, and that's what we see happening now. where are you finding demand already coming from, stemming from? his hollywood knocking on your door? -- is hollywood knocking on your door? >> i think originally everyone thought it would go to the gaming community. what i wanted to see was, this was something that could be a very powerful way to tell a story in a new way. what we did, we did a cinematic
test, a four-minute test to put everything a hollywood has to offer into this experiment, and that includes theatrical music and skywalker sound and all of those things that make us enjoy movies. what we found when we made these combinations together was that -- not just cinematic, but even more powerful. the immersion into this world is so powerful that it is something we haven't seen before. caroline: what are the challenges? what at a summit you have been talking about that is currently holding things back? me, but i love about what we are doing right now is we are exploring how to get real actors into these worlds. for instance, we are exploring not just the array camera capture techniques and dimensional video and those sorts of things, but what i want, the holy grail for me is to get an emotional performance
from a professional actor that we all recognize in a theme in vr that hasn't been done. i joke that we haven't seen meryl streep in vr yet. caroline: tell us about that. we've seen some big actors and big successes. we've often seen actors have to make in those roles. >> scripts being written for vr that will attract the talent we need. because we are at the early stages, we don't have $100 million at this point to make a film, so we have a smaller amount that we had make the most with. i think once there's more content, writers
and storytellers coming into the scene, i think you will start to attract many top-down. caroline: i look forward to sitting in. a virtual reality cofounder and two-time academy award winner, robert stromberg. thank you very much indeed. now a quick programming note to you. the milken institute global conference kicks off this monday from l.a. bloomberg television will be there, speaking to a great lineup of guests including the chief operating officer at goldman sachs. catch that conversation at 10:15 eastern. this is bloomberg. ♪
caroline: now a few headlines we are watching for you, facebook continues to fight against all stories that pop up on its site. its chief security officer has written a paper disclosing the government actors are using facebook to manipulate political opinions in order to change the outcome of current events.
the attention has been renewed around the french elections this month. now, looking for professionals, starting monday business travelers can use the new search tool to find homes and apartments. listings require a desk, wi-fi, and a hairdryer, among other things. the company expects business users to drupal this year and u.s. business travel spending climbed more than 5% next year. and volkswagen to bet big on electric cars. the german auto company announced plans to invest 9.8 billion dollars to develop electric and hybrid vehicles over the next five years. splurge -- split just part of volkswagen's efforts to counter the backlash. that has cost the company more than 22 billion euros so far. that is it for this edition of "bloomberg technology."
♪ announcer: from our studios in new york city, this is "charlie rose." charley: the countdown to 100 days. we continue our countdown -- the white house faced questions about how proposed tax cuts would be carried out without adding to the growing deficit. meanwhile, numbers of congress worked on a short-term spending bill that would keep the government open for another week. joining me now from los