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tv   Bloomberg Technology  Bloomberg  July 3, 2017 11:00pm-12:01am EDT

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♪ caroline: i'm caroline hyde from london in for emily chang. this is "bloomberg technology." coming up, the second half of the markets caps off good we will continue to see volatility? plus, after google was slapped with a fine from the antitrust regulators. could facebook be next?
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officials are now looking into the world's biggest social network collecting information from its users. tesla's model 30 must ready to hit the road. will this car in the perfecting the auto industry? now to our lead. it was a global rally monday in equities. you do have to take into account low trading volume in the u.s. the trend is still clear with tech stocks failing to join this risk on mood. june sold the nasdaq and tech benchmark snap a seven-month winning streak. is this a short-term or long-term trend for tech. let's ask our guests today. wonderful to have you both with me. i want to start with james in new york. doubt at a record today. nasdaq is lower. volatility is low. i'm going to quickly show you a chart i have on the bloomberg, btv 859, volatility has continue to elevate itself within the
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stock market. james, what does this mean ?i wher? >> will we continue to see volatility? james: it is interesting that tech is up 16% this year versus the broader group of 8%. this is a situation where replicating the performance in the second half looks difficult, but at the same time, you can break it down into smaller components, tech continues to be was in terms of historical high-value. the times during bubbles is also lower. you can make a fundamental argument that the next move is up. our clients continue to remain long and strong. i do think you have to think about the operating in this new paradigm of the digital world. with the antitrust risks and things of that nature and what is happening in europe. are these companies getting too big?
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that does add another element of scrutiny. , from a public market analyst to a private investor, it is a good time to invest in the market when you see evaluations coming down? >> one thing that is always been the case with technology is you have markets insulated from the public markets. that is one reason companies like uber and the like have stayed private as long as they have. you can be insulated from what is happening in the public markets. at least from what i do, in the early stages of investing, and other seed stage investors, were largely insulated from what is happening. what we care about our him in a about our m&a opportunities and how much cash these companies have to acquire smaller companies coming through the pipeline. caroline: does that bode well? eileen: yes it does. look at how much cash outside of the united states for investors in london and europe, outside the united states.
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a lot of cash has not been repatriated yet that should be used for m&a. caroline: james, what about the outlook and what isn't happening and what is coming out of the market is the hope for tax changes to be happening anytime soon? the hopes and believes that the new administration would bring in have been slow. has that been affecting things? james: absolutely. when you think about the regulatory progress we were had expected to see up to this point, it would've been a lot more than what we have seen. yes, trump has signed 39 bills or something to that effect. but at the end of the day, the big agenda items have not passed , including health care and tax reform. he talked about the potential repatriation if that will happen, a lot of question marks, but it does open up the opportunity for a lot of m&a. they could put the money to work. will they be allowed to? i think we will learn a lot here from amazon/whole foods as we
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ftc is goingow the to be approaching these megadeals and putting the cash to work. caroline: that is interesting. james is talking about u.s. companies buying u.s. companies. the competition issues that come in there, but if we are seeing money coming to europe, we saw payment service provider eating being bought out by a u.s. private equity. will that be affected in europe? eileen: the european regulators are taking a more active dan stance regardless of where companies are based. i don't think that will give us or smaller companies outside the united states any greater protection. i think we are seeing a lot more activity and productivity from regulators across the board. sector choices at times like this when we have valuations potentially not spilling into the private market. what is hot for you? has that changed in the 2017 period? eileen: what people are starting
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to avoid are capital intensive businesses where customer acquisition is very expensive, so e-commerce. there has been a slowdown in the very early stages for e-commerce finance businesses, and the ones financing have taken off and are in later stages. you're seeing more dollars going into delivery companies. it is all a cycle. now we are seeing money go into deeper tech, research and development, artificial intelligence, machine learning, even autonomous vehicles to the extent that there is underlying ip, which for a while we were not sing quite as much of. caroline: james, that is where the seed money is going and actually that is where a lot of the big companies that you analyze are focusing on at the moment as well. ai.e, facebook, i know you cover facebook, and amazon is always deep within ai as well.
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where are the companies like ebay? where are your clients particularly worried about? james: our clients are not that worried. the thing you have to think about is network effects, because as these companies get bigger, the services get better. the in user expenses get better and better. the bigger the company, the better it is for you and me in terms of the services. just think about amazon. caroline: the regulators do not always think that though. james: that is why i really focus on the regulatory angle. you look at europe, regulations there are about -- how do i promote competition? that might not align with the end user. in the u.s. it is all about the end-user. if this company gets bigger, that means better for me and you. i think the rules have to change. that is why i am so interested to see how the ftc reacts to
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amazon. viewpoint, theur strengths continuing for facebook, apple, the u.s. juggernauts because they might be putting money to work for the european companies that we are seeing come through the ranks and starting to get m&a? eileen: i broadly agree with what james is saying to the extent that these companies are trying to build their services, they are trying to improve end-user experience. that is a good thing. the regulator has a genuine interest in promoting regulation. they believe competing services , someone who can compete with amazon, will force it to offer better services. so it is intense, but it may not be practically true today, but that is the goal. to what you're saying, there are a couple things. we would like to see continued m&a activity, but we would like to see these companies go
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all the way through and take it home and start to list and become behemoths on their own. we would like to expand the acronym a bit and build. one company was acquired by google early on, but it already had 20-40 engineers. they are a leading artificial intelligence center in london and the world at the time. if we could see something like that continue to progress, i do think it is probably a better force for everybody. it probably does improve o.rvices for all consumers to caroline: we will be digging much more into the ipo landscape later on. you are both sticking with me i am pleased to say for the entire hour. now a story we are watching. according to multiple reports, technology funds is in talks to acquire a stake in a u.k. delivery start up. the investment would come as it launches a new funding round. that is less than a year after it raised 210 million pounds. that catapulted it to unicorn
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territory. it is thought to be valued at more than a billion dollars. the $93 billion softbank vision fund has backers like apple, qualcomm, and saudi arabian sovereign wealth fund. coming up, facebook's fine print may be next target for european regulators. what is next for u.s. tech companies as the eu continues to put on the pressure? bloomberg technology is live streaming on twitter. check us out weekdays at 5:00 p.m. in new york. this is bloomberg. ♪
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caroline: the parent of google says a european commission antitrust fine will cut second-quarter profit by 2.7 billion dollars. alphabet cannot the top the fine from its taxes, so it will charge off the full net income. they were fined last week for using their market dominance and shopping results. facebook could be the next target for european antitrust watchdogs. germany is examining whether facebook takes advantage of its popularity by pushing users into agreeing to terms and conditions that they might not quite understand. joining us for you new york, james, who covers facebook. eileen from passion capital london. alastair, let's pick up things with you. facebook, germany looking into them saying they are more bullying when it comes to certain things. alastair: this takes the google charge from last week to a whole
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new territory in europe. privacy is a lot more important in europe, especially to regulators. there are a lot more rules and regulations in that region than in the u.s., but this really combines antitrust and privacy in the one charge. basically they are saying if you want to get on a social network, facebook is your only choice in the western world. so that dominance over data is basically forcing anyone who wants to do that to sign up to all of these terms and conditions. caroline, james, here the debate commences. sometimes scale and size is good for the consumer. sometimes here it seems as though the german antitrust authorities are feeling it is a bit too pushy. this investigation was announced back in march. does it mean anything to the company from your perspective?
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james: at this point what is happening over there, i think anything can go right now. the biggest ever fine levied on google. who is to say they won't crackdown on facebook? at the same time you are hearing her encourage other companies to sue google. anything can happen with facebook as well. it is interesting to go after the privacy angle. , it isean, right now tough to say. it is a wildcard out there. caroline: eileen, when you're looking at it from here in london, this is a german antitrust authority looking at facebook. yes, we had the european commission looking at google and now saying, maybe it is time for others to start suing it. does it need to? does it affect facebook? the fines do not matter, but do they change their way of doing business? eileen: i'm not sure that the monetary values of these finds
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fines make a difference for the companies themselves, but the one goal of the regulator is to signal. it signals to the rest of the market that there is a watchdog, somebody that is paying attention, that there's somebody trying to preserve competition and trying to preserve user privacy and benefits for consumers. a lot of it is signaling, and a lot of it is perception. the numbers, whether it is 2 billion, 3 billion, 20 billion, what will really make a dent in for make a company care is arbitrary. the point is that the industry and the sector knows that small companies trying to come up, don't give up, don't think that you can't compete, don't think that there is not a level playing field or that it can be re-level even later. caroline: alastair, talk to us about how the tech giants are are interpreting the european commission and the german antitrust authorities working on facebook at the moment. do they understand that this is
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about increasing competition? alastair: they feel like they are being targeted. the facebook case in particular is a real -- in the u.s., some people consider it to be a real overstretch, taking an antitrust argument, which understandably in europe is different, taking that and applying it to privacy specifically is quite a large leap. on the google side, there is an air of resignation with the company. they have been fighting this for about seven years. they do say they are considering an appeal. the comments they put out this time versus a year ago were a lot less combative. ofi think there is an air resignation, but when it comes to more pure antitrust cases like the one about google
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shopping. caroline: james, i want to get your thought as someone there looking at potential value cases for these companies. you have followed the facebook antitrust investigation, does it make you worry about your price target for these companies? james: last week we put a note out on google saying this is overreach. i agree with that, privacy even more so with facebook. i always joke around, saying if you don't like the privacy rules, don't accept them, but then you can't use the services. that is what we do here all the time. ultimately, -- what i am most interested in is i will worry we n from theinactio united states. if we are in a position where we see a pattern of going after and trying to change the way these companies do business and there is no recourse for response from the united states government for
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that come at that point, i will start to -- caroline: you think that the european regulators are completely overstepping the market here? you don't think there isn't any reason why they should be trying to level the sorts of accusations that facebook and google? james: i think they are picking the wrong battles. you can make the case that all these companies have done something wrong at some point or another. i think the battles they are citing and what they're trying to win with the vertical search, with google, google has done a lot worse when they scraped yelp content and used it as their own . that is a lot worse than it is what the eu regulators are going after. what i would like to see what the u.s. responses, and based on that, it would affect my ratings and targets, but as of now, i agree with eileen, it is more a signal than anything else. caroline: always about picking your battles. alistair, thank you for joining us from san francisco. as of course james, joining us
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in new york. and eileen partner at passion capital joining me in the , studio. coming up, tesla's model three will start production after it passed regulatory requirements ahead of schedule. can the automaker keep up with its ambitious manufacturing plans through the year. this is bloomberg. ♪
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♪ caroline: spacex scraps its latest lunch. on sunday, lift off of the falcon nine rocket was killed with less than 10 seconds to go before blast off. the computer automatically stopped because something in the guidance system was out of limits. the private space company has been ramping up its launch schedule. this would've been the third rocket the company launched in less than two weeks.
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from spacex to tesla, we are sticking with elon musk. he announced the highly anticipated model three will officially begin production on friday after passing requirements two weeks ahead of schedule. the beginning of the rapid ramp up, with tesla expected to make 500,000 vehicles in 2018 and one million in 2020 as it pushes into the mainstream. we are now joined by dana hull, a bloomberg news reporter who covers tesla. first of all, talk to us about this announcement. how crucial is it? we knew model threes were meant to be rolling off by july, is this sooner than we thought? dana: slightly sooner. what elon musk said is that the very first vehicle should be rolling off the production line this friday, and that there will be a handover event on july 28 to the 30 customers. good news for customers, investors, and fans eagerly awaiting details of what july would hold. caroline: i'm looking at the
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bloomberg chart. quite amazing how much we continue to see a ramp up in market capitalization of tesla versus the likes of gm and ford who had their numbers out today for june sales. we are now pretty much at $57 billion in terms of market capitalization. can they live up to this when a hefty ramp such up in production being built into this view? dana: it will be interesting. tesla is supposed to release second-quarter sales today. that number could hit at any moment. i will be curious to see how their sales are. a lot of the market capital of tesla is based on the future of this company as it hits the mainstream and expands beyond cars to solar roofs and energy storage devices. and really makes good on its promise to accelerate the transition to sustainable energy. caroline: i'm going to focus in on this chart again.
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let's look at this chart again. it is btv 6161. you will see the white line is how much higher we are starting to see tesla's market cap, ford inm in yellow and blue. i want to get eileen's take as an investor. do you have the belief system to think this is a company that can achieve that? eileen: if i was investor, yes, absolutely, and i would be rejoicing. to me, this chart makes more sense to me than uber, which also surpassed the market cap of ford does not have any asset value. ford sold close to 70 million vehicles last year. uber does not own any vehicles and does not have any production, anything tangible in terms of assets. i can see where tesla, the future value of energy conservation and what we are going to see with efficiency, i can see that that makes sense. people like the design. people like the efficiency and
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the storage as well. seven seater cars in the body size where cars of traditionally seaters. there's lot of future value built into the stock. caroline: dana, you're someone who tweets to elon musk and report on him. how crucial is the model three. how is it being interpreted by the market because elon musk felt it had not been accepted by the market in the way he wanted it to be? dana: the model three was teslas main reason for being. they wanted to bring an affordable electric car to the main stream. this is the reason for the company's being. it is critical. model three is make or break. they have to be able to sell cars. they have to be able to make cars and sell cars at high volumes. caroline: we will see if they can live up to the high volumes and indeed to those profits. thank you. brilliant reporting as ever. eileen is sticking with us in london.
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coming up, amazon's deal to acquire whole foods is shaking up the grocery market. what sector will the tech giant disrupt next? this is bloomberg. ♪ whoooo.
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>> these of the latest first word news headlines. response to the saudi list in a of kuwait.he emir is not known with the letter contains. support for the qatari leader remain strong. the saudi that block will meet in cairo on wednesday to plan their next move. opec oil production rose to the highest in june as members pumped more crude. cartel nations raised collective output by 260,000 barrels a day compared with may, half of which
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came from libya and nigeria. prices rose strongly with oil extending its longest run of gains this year. been enjoying its longest rally since 2012. the japanese finance minister is strengthening his political power base, merging fractions to give him control of the lbp. ldp. tot may force shinzo abe rethink policy, including revising japan 70-year-old pacifist constitution. global news 24 hours a day powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. >> checking markets midsession in asia. australia's asx 200 leading gains in the region come up by 1.6%, strong line from energy players, crude up for eight
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consecutive sessions, weaker in the asian session today. banking players looking strong, and we are awaiting the rba decision. the aussie dollar strong getting towards that $.77 level. csi 300 under pressure, selling out of large-cap stocks, down .8%, also weakness in hong kong's index, up by .5%. them,kkei holding on to up another .4%, so well clear of that 20,000 point level. we did see weakness coming through from the yen during monday session. thehtly stronger against dollar today, on reports that north korea has fired another missile. we have seen some flow into safety like the yen and the gold price, up like .2%. in terms of what is moving markets, banks, energy players, japanese automaker strong today.
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toyota one of the best performers in the region. you are seeing selling coming through in these tech stocks. tencent, nintendo, sony all under pressure. that is the state of play across asian markets around lunchtime this tuesday. ♪ caroline: this is bloomberg technology. i am caroline hyde. amazon's decision to acquire whole foods took many by surprise. we continue to question which industry the tech giant will disrupt next. amazon can extend far be on delivery and encroach into the territory of restaurants, and in fact the entire prepared food and delivery market, doubling up on the opportunity. back with us are our guests. talk us through your report. it is a fascinating one.
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you think this is a $1.5 trillion opportunity for amazon. were just talking about antitrust risks, and now talking about $1.5 trillion, so bear with me. there is no way that our with whats in line jeff bezos his thinking. he is probably several steps ahead. where could the opportunities be? thinking about how they could leverage the whole foods infrastructure. here are a couple of things we know. the restaurant business is an $800 billion industry, bigger than the $700 billion grocery market. digital penetration on food sales is 20% in china, 2% in the u.s., and the margins are ripe for the taking. you put that altogether, we could be in a situation where amazon can leverage data and predict the taste preferences, the pallet, of each individual
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market, average the emphasis are of whole foods to act as a commissary, cut the margins to 0%, then deliver potentially celebrity chef tied in dishes for five dollars a pop for prime numbers. it could potentially open up a whole new array of food services beyond just delivery and groceries. you were eileen, talking about as a seed investor it is not the time to be going into food delivery companies, companiesh we have that have recently ipoed. for thehe potential restaurant chains themselves to be disrupted? >> yes. i completely agree with james. there are other categories. i don't think it will end with food. as james was saying, it's all about infrastructure, list just
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logistics, and supply chain where amazon can go. of an idealist and bezos,ry than ji jeff but i think about what was done on the back end of everything, not just logistics for good whether they are food products or otherwise, but everything they have done for storage and everything else. you have to be a business already into the billions a year. there is a lot they could do even on the back end that will surprise more people. when you looks, at amazon, do you see the potential if price target can stand on the company? also talk a little bit about not only the restaurant area, but some of the other sectors that amazon can disrupt. james: we are neutral rated. i'm not taking a position on the stock because of this regulatory overhang that we talked about.
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theoretically, you can make a case for the stock to move 50% higher from here based on where the numbers are. the margins are improving in a aws, and you have theoretical margins on the research side as well. however, you do have that overhang. as far as the next avenues that they can pursue the on food, i think health care, personal care products is ripe for the taking. potentially see an acquisition on that front. that is another massive industry, drugs and all the personal care products that you have partially being fulfilled on amazon, but it could be taking to a whole another level. caroline i am just typing in endless recommendations on the bloomberg, and you see how many buy ratings remain on amazon and few sell ratings there are.
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there price continues to escalate as we see and ease in price targets just slightly. we are seeing the 12 month price target showing up on the bloomberg come the yellow life is where the price has been. this selloff is just chasing amazon slightly. we are still not seeing many sales coming from the analysts. the you have the regulatory overhang with amazon, or do you think there continuing to grow? eileen: given everything we have seen and everything we have been talking about, they are going to be in the eyes of what the regulators are looking at. they are just one of the ones. it is really obvious. they have so much consumer data, so much transactional data, they are getting into drone delivery, there will be privacy issues. i think there is a lot of ripe fruit for regulators, if they want to. if the regulators are doing this to try to pick any battle to bring companies down, there will definitely be a lot of material there for them. caroline: fascinating conversation.
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wonderful to dig into your report. they are both sticking with us. now, a chinese court ordered a freeze on 1.2 billion yuan , one hundred $83 million, worth of assets belonging to three affiliates belonging to on leeco.et giant they handed down the ruling after a china merchant back branch applied for an order on june 26. the freeze took effect june 29 and will last three years. a news agency did not say why bank requested the action. they have not made any immediate comment. eco also declined to comment and no representative was available. coming up, there has been a slew of tech ideas in 2017. at the u.s. market returns to form, we take a look at how they are faring and measure the outlook for the next crop of tech startups waiting to take the plunge. this is bloomberg. ♪
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♪ caroline: toshiba is looking to its energy metering company as a to raise cash to shore up its balance sheet. the japanese company is considering an ipo by september. it is one of several assets toshiba has up for sale. it is trying to make up for the multibillion-dollar losses at the westinghouse nuclear power unit.
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speaking of ipo's, initial public offerings are almost up in the u.s. globally, it has risen 96%, almost doubling. the news comes on the heels of blue apron's lackluster trading to view last week and the more successful listing of delivery hero on the frankfurt stock exchange. what does this mixed bag spell for the ipo outlook for the rest of the year? back with this is eileen from passion capital and james. i want to start with the european investor and the european take. delivery hero did go well, a big sigh of relief in germany. when you are looking at these figures, does that make you more optimistic for exits from companies, and where are we likely to see them coming, and
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what are the sectors that are particularly hot? eileen: as we have seen, it does give me encouragement. i think when companies have gone public, they have already been through extra rigor because there is not been enthusiasm , unchecked, unbridled enthusiasm we have seen in the states. for instance, even though numbers were down in listings last year, we had cybersecurity, fin tech offerings that were more resilient than listing of those peers in new york or the states, so yes, i do think it bodes well. i do think we will see a lot more coming from financial services. i think there will be other sectors. maybe not so much e-commerce or delivery companies, but other sectors that will come into the public markets. caroline: james, your take from more moree slightly meager blue apron? has that shaken the rest of the ipo market or do they look across the pond and see how it
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is faring in germany and think blue apron is a one-off? james: i am more pessimistic than eileen. i do agree that there are many sectors like the financials, software perhaps that are more conducive to ipo's. yes, it is up this year, but at the same time, we are below where we were a couple of years ago. in the industries that are hard, like the one eileen was mentioning, those will be facing greater and greater scrutiny. what is really going to be a test is spotify. if you look into it, are they conceivably going to go direct? is the game going to change? these are things we do not know yet. caroline: eileen, talk about the game changer. we saw snap change the game in to a certain extent, another company james analyzes, keeping all power with the ceo. then we are seeing spotify not
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raising any more money and having to come to the market. what are you seeing from companies coming through and how they are altering? eileen: what is interesting is the next generation of companies -- and it probably started with google when they tried to do an auction listing when they came to market, and zuckerberg with facebook and maintained all the control there. what we are seeing is there is a huge appetite from the market for really solid tech companies that have fundamentals that people are clearly willing to concede. plague orures in hampered companies in order to get value in those businesses. i don't know if spotify can pull it off. but if dropbox comes to market, and it was said today they are starting to look at underwriters, they will probably do something that gives them an advantage or incentive to list. we are seeing uber and other countries like that. otherwise, they will raise money on private markets. i think control is going to be a big thing.
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preservation of their status, liquidity options, preference rights, but also how much information rights they might have to yield, how much they might have to disclose, then post-listing. if they can stay within regulatory rules, whether they have to be as transparent. maybe they do a few tweets and share social media without having to digest hundreds of pages of disclosures. caroline: james, how hard is that make your job? you had to sift through snap ahead of its listing. you are the man who came out with a buy rating on it before anyone else was out the gate, but what do you see when you look at the roles of the game changing and how hard does it make it to value these companies? james: as a private company, i would not want to go public. look, it is not easy, but at the end of the day, i don't have to analyze companies that are private. i just need anecdotes and
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information flow in order to better assess the public companies. that comes from relationships and so forth. so it doesn't really change my life all that much. caroline: are you looking for dropbox this year? can you give us any names that you think will be coming to the u.s. market? james: we know that redfin is looking to come into the market. obviously, there could be some others, but the i'm keeping my one eye on the most is spotify. caroline: we will see what that means for the rest of the european tech sector as well. indeed globally as well. you are both sticking with me i am pleased to say. coming up, instagram's latest partnership is breathing new life into the idea of social shopping. can it learn from the missteps of the like of twitter and facebook? bloomberg tv tomorrow, at 8:00 p.m. eastern time, tune in for
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the boston pops fireworks spectacular live from boston's historic esplanade. this is bloomberg. ♪
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♪ caroline: nike announced plans to sell directly on instagram. retail luxury and beauty brands have long salivated over selling to social media addicted millennials. so far, nobody has gotten it right. can instagram be the game changer for social shopping. i want to get your take on this, eileen. you're someone that analyzes those coming to four seed funding. could this change the way in
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which you buy nike? will it solve the problem of less fake goods? and instagram, they did not give us that much detail on how it would work work, but assume it would be smooth. eileen: this is interesting, and this is only days after nike conceded it would sell on amazon, so you are absolutely right there whole goal is to get the clones off of the streets and off of people clicking their fingers and trying to get directly to consumers. they are experimenting. i'm not sure. there's not that much detail about how nike will do this. i have not seen a clean technical or product integration to do this. i think they have a little bit of work to do, or it is a little bit of experimentation, which instagram can afford to do because they are part of facebook. caroline: we know a man who analyzes facebook. james, where is the path for this? we know they wanted to get into
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the e-commerce play and wanted to see social media purchases flourish? can nike do it? james: i can tell you from talking to payment companies, they are very bullish on the opportunities at instagram. the guys who are powering this stuff like it. caroline: who are the guys to look out for that will be powering this? james: paypal is a prime example of a global payments company that partners with the best mobile assets in the world. so that is a company we are positive on. funny, i am neutral on facebook. ultimately, i do think this is more about experimentation from what we are seeing. kind of a geek your friends close and your enemies closer. dose companies, the fangs, wield a lot of power. in order to keep tabs on amazon and what is happening. and just to make sure they are staying relevant, where the
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eyeballs are, so i would not read into it too much just yet because my understanding from facebook is that things are still progressing extremely methodically. caroline: therefore, eileen, you are a woman who looks methodically at fintech. you will be powering these sorts of companies. is that an area that is looking still attractive to you? eileen: we are very bullish on fintech. we have invested in the company here in london called cardless. it is not too dissimilar to strike. all of these companies have a lot of growth potential. they are the companies that power all of these transactions. the threat to them comes not from banks or existing institution, but from alibaba, and the fact that facebook and apple have their own payments, so you are seeing it come from the tech sector, but that is why
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i see an opportunity for new companies to merge in the payment space. caroline: two essentially be bought by those? will we see the likes of upebook and amazon eyeing the companies? eileen: i think it is less likely they will buy payment platforms, more likely they will buy regulated activities from some of these companies that have achieved that. that has been difficult for big companies to do. i do think buying up internet platforms makes a lot of sense for companies that might not already have that. may be an ip or platform or delivery service that does not have its own and wants to redo its spending and cost side. caroline: james, you saw ebay split from paypal. are you likely to see facebook potentially look to be building its own payment system itself. they certainly seem to be teching up to the fin
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companies here in london. james: i don't think so. i think they will stick to what they said. if you want to bring this back. cold to the beginning of the show, with a are doing at the same time is enabling subscription services for the publishers in order to extend an olive branch. at the same time, as they allow the subscription side, they will be collecting payment data. then you have the privacy issues around what they do with that data as well. they have to tread lightly here. caroline: we have so much we could be talking about from a regulatory perspective, from a payment perspective. james, it has been wonderful to have you life from new york with us. eileen from passion capital, wonderful to have you joining me in london. thank you very much indeed. great discussions from you both. that does it for this edition of "bloomberg technology." we will return on wednesday after the independence day holiday in the united states. and don't forget, bloomberg technology is live streaming on twitter. check us out weekdays at 5:00 2:00 p.m. inark,
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san francisco, 10:00 p.m. right here in london. that is all for now. if you are based in the u.s., we wish you a wonderful holiday for july 4. this is bloomberg. ♪
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