tv Bloomberg Technology Bloomberg August 18, 2017 5:00pm-6:00pm EDT
campaign, follows clashes with members of trump's family and other white house officials in recent weeks. bannon ally bestian faces removal from his post as a counterterrorism aide to trump. he recently worked with bannon at breitbart news. he had links to a far right group in hundred gary, allegedly. joe manchin will not join president trump's cabinet as energy secretary. according to people familiar with the discussions, the idea surfaced last week as a possible way to let the state' new republican governor name a successor. manchin faces a tough re-election campaign in 2018. president trump is at camp david meeting with his defense and foreign policy team to discuss the u.s. future role in afghanistan. 8,400 u.s. troops are still stationed there. defense secretary jim mattis and secretary of state rex tillerson attended.
so did vice president pence, steve muchein and jeff sessions. bloomberg, powered by more than 2,700 journalists in more than 120 countries. this is bloomberg. emily: i'm emily and this is "bloomberg technology." a new handset joins the race for smartphone domination. just as apple and samsung will reveal. the take on why the new device is a much-have product. plus, the battle raging of india's providers. we'll discuss the criticism inside that pushed out the c.e.o. and the road ahead for the asian tech powerhouse.
and the big screen could soon be taking center stage inside america's living rooms. we'll explore a potential new hollywood partnership that could change the movie landscape and the rush for new blockbuster release. but first, to our lead -- steve bannon is officially out at the white house. bannon was a controversial architect of president trump's election victory and the leading champion of conservative populism within the administration. as former chair of breitbart news, he served as a link to the alt-right movement. sebastian gorka, a bannon ally, who previously worked with him is said to face possible removal as a counterterrorism aide to the president. we also just learned that karl icahn says will he no longer work as an advisor. today with president trump's blessing i ceased to act as president trump's advisor to the president on issues
relating to regulatory reform. it caps a tumultuous four weeks in which they have announced their departures including reince priebus, former communications director, anthony scaramucci and press secretary sean spicer. where does this leave us and the trump administration, craig gordon and on the phone, former white house chief of staff for president clinton. craig. i want to start with you, though. we are getting news with carl icahn. it doesn't say about the events of the last few days. he speaks specifically about regulatory reform, but what's your take? craig: if you read the letter he sent to president trump, which he posted on his website, there was a new regulatory affirms chairwoman, and her job is watchdogging all the different regulations that come and go inside the government. we know donald trump has been very aggressively trying to
knock down those regular -- regulations and cut back the ones that president obama had. carl icahn says if you have a person doing that i don't want to unofficially doing it and give democrats to take a shot because one person should really lead the charge there. i don't think it seems from his letter, at least, to be related to the events of this week and trump's statement on race. emily: matthew, inside the white house inner circle but not one like this one. the ousting of steve bannon, can we look at the reaction of the president's events and him leaving the administration? matthew: emily, i think that's hard to know. i wouldn't immediately rush to that conclusion. this has been a tumultuous white house, as you have appropriately noted. what so much wants to do and needs to do and i think general kelly is focused on this, is
achieving some level of stability and focus on the president's agenda outward, not inward with this continuing telenovela. i will say, as craig noted earlier, steve bannon's decision to resign or perhaps he was asked to resign, however it plays out and we will see that in the coming days, this is i think a major development because clearly bannon was the link to the conservative alt-right, if you want to call it that, but certainly the conservative -- much of the conservative support that president trump enjoyed in the campaign. emily: so we've been looking at this photograph from january, from inside the oval office where you see the president and . ce president do you think the revolving door dysfunctional nature of this administration will stop at this point or can we only
expect it to continue? mack: it needs to. one of the questions you're hearing, of course, will there be other people serving in the administration? will they feel uncomfortable continuing to serve, particularly after the charlottesville situation and episode? we haven't seen any suggestion that might be the case. i would say part of the real issue here is you got to change, pivot from campaigning to governing and to govern you got to have a team in place. we had all of our cabinet confirmed the day after the inaugural. president trump and his team are still really struggling trying to get a government in place aside of this revolving door at high levels. the president has to be steady on the world stage, national security council is key there as well as his cabinet members. i do think general mcmaster was an excellent pick in that regard. but where you really start to get traction in a new
administration is passing legislation, getting the people's business done and to date this administration has not been successful in doing that. they got to get some stability, stop this inward focus which is the revolving door that you point to at very high-level positions. emily: now, craig, an editor at bright bart tweeted -- breitbart tweeted #war. now there are reports that breitbart might try to attack people in the inner circle. bannon may return to breitbart. how concerned does the trump administration need to be about opposition from the conservative media? craig: i think they should be very concerned, quite honestly. this is one of the arguments why steve bannon could or might keep his job, it's better to have him inside the tent than outside the tent throwing stones. breitbart has made it clear to associates, steve bannon is hearing he's perhaps ready to
go to war here. i don't know he would do that directly at donald trump who they had actually a very close relationship. it's frayed in recent weeks and months but i think there's people we know he's been battling inside the administration. the chief economic olicymakers, gary cohen, steve mnuchin, h.r. mcmaster. i would be surprised if mr. bannon could keep his tongue about those he has strong feelings in the negative. emily: mack, our white house correspondent, a source close to bannon, democrats have seized control of the white house. kelly, gary, jared, evanca are all democrats. when it comes to governing, do you think there will be any change or any shift in policy or in the rhetoric that we hear from the president himself? mack: i think you have already seen in policy, as the president has put forth some of
his major initiatives, although he has not achieved much momentum or traction on them, more traditional republican views put forward on lower taxes, less regulation, infrastructure is a natural for a bipartisan support. i think you have already seen a somewhat more muscular foreign policy with secretary tillerson, secretary mattis and general mcmaster. i'd put forth the notion what you're hearing and suggesting is this is not as radical of agenda as some of perhaps president trump's conservative supporters wanted it to be. but i think it's a far step to say it's a democratic agenda. emily: all right. mack mclarty, former white house chief of staff on the phone. thanks so much for calling in. craig gordon with us in washington. craig, thank you as well. coming up, our exclusive conversation with nick low as
emily: a new chapter in the battle for smartphone domination begins today. essential is officially celebrating the release of its phone now available to order and the phone is set to go squarely against the biggest players in the game, apple and samsung. joining us is nicolas roy, president and chief -- niccolo de masi, president and chief operating officer. so there's a lot of competition out there. why is this phone essential? niccolo: probably four areas i'd highlight. we have a unique style, titanium, ceramic. you either love it or hate it.
there's no logo on it. it's your phone. we're big in believing this is a pro-consumer brand. we don't want you to advertise for someone else. you choose what goes on there. we have a unique accessory port. this is something to upgrade the phone, extend capabilities. best of all, we have the smallest 4-k, 360 video camera. we can record this segment in 360 video as well, not just on bloomberg cameras. so if you look over my shoulder you can see -- this is the irst u.g.c. for v.r. you can put a goggle on or helmet on. you can see what it looks like to sit where i am. you can look at it on a phone, tablet, lap tap. it takes 360 photos. we'll revolutionize the selfie as well, emily. emily: can i see a selfie of myself in 360? niccolo: sure. emily: all right.
so you guys have some courage. it's the week before samsung's new phone comes out. a month before apple's new phone comes out. are you concerned about the competition? are you skurred? niccolo: we're proud of the fact that we're beating everyone to market, to be honest, with the world's biggest screen and -- emily: well, they are already on the market, ok. niccolo: not with this inowe vase. our model is to bring innovation to market faster than our competitors can. we have a number of things we changed which we are absolutely beating people to the market. no one has a 360, 4-k camera. we know we have a year or two-year lead on this. no one has the magnetic accessory port so this is something you can invest in for the long term and there will be an accessory coming about every quarter or so. we're shipping already off our website and one of the things i'm most excited about is the fact that a third of our users are actually coming off of i.o.s. phones, a third are
coming off samsung phones so only a third so far are coming from users who aren't on one of the duopoly phones. emily: all right. there have been some complaints in the reviews that i'd like you to respond following. one is the sprint exclusivity. when is that change something some people say the camera is too simple, doesn't have enough features. some people said the loud speaker, fingerprints. this is getting down in the weeds. loud speaker and fingerprint scanner not so great. niccolo: so the distribution model we have is multichannel. we're selling in simbings, m-free, best buy, amazon. you have tellis and sprint as the exclusive carrier retailer stores. they're exclusive for the time being we built a global phone and have been transparent we built one model for all countries and all channels. so this is a balance when you are a startup getting hero placement marketing, moving
units, getting that virtual circle going so you can move, drive margin and expand distribution. so you will see that same model roll out in most countries. it will be all channel model picking one carrier store to be exclusive. emily: so what about some of those other issues that reviewers are talking about, the camera, the loud speaker, the fingerprint scanner? niccolo: sure. you know, there's a lot of reviews out this morning and i'd say i'm delighted with 80%, 90% of them. there is of course a couple people who have different opinions. the software and the hardware are obviously the work of 50 people. we just got to 100 recently. let's say 50 on average. we refined it right up until ramp. during reviews we had software coming in so you will see tremendous improvements from us in the coming weeks, months, as we ship. of course those additional models to come. ily: will we get a
water-proof model one? niccolo: that's something we need to do more on as well as of course trying to enhance other elements of this and drive accessories for next year's models. emily: so talk to us what is next. this is just a starting point. so what's to come? niccolo: so we've announced a home product which i believe your colleagues have seen and reviewed in person. that's a big swing of not only the home i.o.t. space but start for us on ambient o.s. it's built for the internet of things world. it's built where you have 50 or 100 interconnected devices in your life where today most people have three or four. when andy started android, they had one, your desk top, in 2004. so every 10 years we get a change in computing platform and we're passionate about the fact in the long term you have to have a new paradigm for a.i. computing to really make this world of i.o.t. easier for you. how will you interact with 100
different devices that are data enabled. emily: and what about this idea one of the essential tenants of essential is we won't have to check our phone every 10 minutes. how will it do that? niccolo: it's a computing and sensing challenge and we outlined that in a fair amount of detail. we think the phone's important because as i like to say, as long as humans are in charge, i think we have at least 10 years where we're still in charge, screens are important. you sleep probably a couple feet away from this screen. all the other screens in your life, including the one we put on our home product, are also part how you have your environment and ecosystem and ambient will learn about you. the 360 camera, for example, will be able to collect data which will learn about your patterns of behavior and preferences. t will also be like our home product -- this magnetic accessory port will be used on the home product. emily: ok.
niccolo de masi, president and c.o.o. of essential. we will have to see how the orders come in. good luck. niccolo: thank you for having me. emily: thanks for stopping by. we do have some breaking news now. of course we were just talking out now former white house chief strategist, steve bannon. he said he will be going to war for president trump. we thought he was going to be going to war against president trump based on that tweet, especiallyly coming from the senior editor of breitbart saying #war. he's been speaking with bloomberg, steve bannon himself. he said he's still on the president's side. we will bring you more headlines as we have them from this conversation. well, a spat between the board and founders of computer company info six had shares tumbling today. we'll explain what's causing the rift. this is bloomberg.
emily: the chief executive of india's company resigned. he resigned after criticism from the company's founders. he will be replaced by the chief operating officer. shares of the company just over 5% in the news infosy s's founders criticized executive pay. they have been going through a difficult transition to database computing. joining us from london caroline hyde. talk to us what's behind this? of course he's been under pressure but why now? >> yeah, under pressure from none other than the previous chairman, previous c.e.o. and one of the founders of infosys and seems to all come too much of a head at the moment and ahead of analyst expectations, you see the share prices fall so much it seemed he left rather swiftly. most than people anticipated. basically when he took the helm back in 2014, so three years ago he was the first-ever
nonfounder c.e.o. wasn't part of the club of the founders, some seven set up back in 1981. and the criticism has been very harsh for him. not everything ran smooth, and notably is really in the last year the war was on with the former -- well, he's currently a billionaire. the co-founder of infosys, mr. murphy. he was taking aim at the c.e.o. saying -- accusing him of numerous, i say, governance lapses. he was questioning the ack significance, the executive pay. they say, look, this was continuous noise. he gave a statement saying, i cannot carry on my job as c.e.o. and continue to create value while also constantly defending against unrelenting, baseless and personal attacks. interestingly, emily, the board has got his back. they said, look, this was false allegations coming from mr. murphy. they said it harmed employee morale and therefore led to the
loss of the valued c.e.o. and mr. murphy is unrepend penitentiarying and said, look, i am worried about the detear or ating standard of -- deteriorating standard of the company. emily: workers, in response to president trump's concerns about widespread abuse of the visa program, infosys said they would hire 10,000 u.s. workers but this controversy has not only pressure on the stock but also sikka himself. how has that played into this? caroline: not a great time to be without leadership as well when you are trying to navigate these choppy waters, particularly in the u.s. when you dig into the terminal and go into s.a., the financial analysis you see how important the u.s. is for infosys. it gets 62% of its revenue from the country overyou a. the number one area of revenue growth. so it's not great when you are seeing a crackdown, especially
having 1-v visa, many to be hired inside the united states. 10,000 they promised back in april. well, that will hurt your margins because it's costly because many of these workers were coming in on temporary visas. and it's cheaper. there were head winds of people not spending so much on software at the moment that infosys provides. this means jobs cuts for infosys. emily: how does the company attract a new c.e.o. amidst all this drama from the founders and the board? caroline: really hard, i think, when you still got such voices coming from the previous founders. i think this is what needs to be backed away from. interestingly, the vice chair of infosys says they could move on, perhaps new blood could help. it's notable even in name he's no longer c.e.o. but mr. sikka will stay on and play vice
chair and help find a repolice stationment for himself. the c.o.o. will be a steady pair of hands for the time being but what they really need to do is stop this criticism coming from the previous founders and move on. meanwhile, of course, this is a company that needs to drive revenue growth that much higher. it interestingly did hit its revenue targets just last month. emily: caroline hyde there for us in london. thanks, caroline, for that update. now coming up later this hour, the total solar eclipse is on its way. we'll see how tech companies will plan to shine a light in the shadow and have that conversation between steve bannon and bloomberg. this is bloomberg. ♪
bloomberg news he is going to war for president trump and will take on the president's opponents in media, congress, and in business. his departure came following clashes with members of trump's family and other white house officials. former u.s. ambassador to nato the u.s. isrg experiencing a crisis of leadership. optimistic, but the president is a wildcard. he has shown that in issue after issue. he needs to center this administration and rely more on his cabinet secretaries who can produce that are results for him. added the president, oesn't have a grasp on the civil war." a man stabs people in finland friday before he was shot by police. they are looking for more potential suspects.
it happened 100 miles west of helsinki. flags flew at half staff friday outside european commission headquarters in brussels as a tribute to thursday's attack in barcelona. >> we express our sorrow, hours shock, ourr disbelief. there are victims of so many nationalities. mark: in the wake of the attacks, a mayor and france is planning a summit of mayors across europe next month. $35 million have been spent so far to protect targets, and cities need more money to cope with new threats. mayors are the first to be confronted by the violence. syrian forces have captured
extremist positions. this comes ahead of an anticipated lebanese offensive to clear fighters from lebanon's side of the frontier. their aircraft are supporting a damascus government offensive. the chances of finding survivors in the debris of mudslides this week are diminishing by the day. more than 400 bodies have been recovered in about 600 people are missing. more than 100 victims are said to the children. despite threats of further mudslides, the government is moving ahead with burials. global news 24 hours a day. powered by more than 2,700 journalists and analysts in more than 120 countries. i'm mark crumpton. ♪ emily: back to our lead. steve bannon has made his first public remarks. bannon is selling bloomberg he,
"will be going to war for the president." be going to war for trump against his appointmen --opponents. he made those comments to josh green of bloomberg. green joins us right now on the phone. withust got off the phone steve bannon. what more did he have to say to you? had: i wanted to know what gone down with his firing and whether he expected this. mostly what he plans on doing next. there has been a lot of speculation that bannon has been on his way out for a long time. he's a figure in the administration who has been at war with other advisors, including gary cohn. bannon told me he did not have a falling out with trump, but
that he in fact will continue this nationalist crusade on the outside. the list of the three people he was planning on targeting. capitol hill, opponents of trump trump'sedia, and opponents in corporate america whom he thinks are pushing a capitalist agenda and inhibiting trump's policies. interesting given the events of ceos stepping down from his business councils. the councils that disbanding. what does this actually mean? josh: i think it means that bannon will take up a role similar to the one he had before he went into the white house. really more broadly than that, and influential political figure who helped drive the takeover of the republican party over the last two or three years that
culminated with the rise of donald trump and his presidential victory. i think in and believes his andlist crusade is ongoing that it has been set back by opponents, even in trump's own white house. people he refers to as globalists. she is going to be uninhibited on the outside -- he is going to be uninhibited on the outside. emily: there is speculation he may return to- he a right-wing publication. are there formal plans for that? josh: he did not say on the record he will return there formally. talked to three people very close to abandon, all of them said they expect him to return there. if i were betting, i would guess
that will be his first stop. emily: he says he is still on the president's side. did you give you any more indication of why the left and why now? to draw a line between what happened in charlottesville and the idea that bannon may be taking the fall. josh: i don't think that is what led to this firing. shannon certainly didn't seem to nnon certainly didn't seem to think so. he just passed his one-year anniversary working or trump -- for trump. he was the architect of trump's victory and helped to guide him in the white house with only fitfully positive results. he indicated he plans on leaving at some point all along. there are disputes among the sources i have talked to about whether bannon was going to leave now or whether he was pushed.
decision,is was his in consultation with john kelly and president trump. there is no bad blood or animosity with the president as is reflected in the quote he gave to bloomberg news. hisy: it has been said ideologies do not fit into a new little box. much of it aligns with the alt-right, but a lot of what he pushes are much more liberal ideas. kevin cirilli tweeted he heard from a source that there are all democrats in the white house. bannones that mean for now on the outside? means he is not going to feel as though he is inhibited in the same way he was as a west wing stafford.
staffer. he made a good show from reframing of attacking any individuals he was butting heads with, but there is no secret he has been in open warfare with people like gary cohn and steven mnuchin. ther people in administration, especially in the foreign policy round, which had been such a source of contention within the west wing over the past few months. emily: if you are any -- are in any of these three groups he called out, should you be bracing yourself or will this be thanmarked -- more bark bite? beh: i don't think it will because he for a significant portion of the republican base.
mostincludes trump's ardent supporters. the fear among republicans was that ban would leave and go outside and immediately begin attacking president trump, which would essentially set off a civil war within the party. that is not what he plans on doing. what he will do instead from the outside is to put public pressure on the elements of trump's administration, especially the wall street folks bannon and believes -- believes are inhibiting trump. view, that ought to include things like increasing marginal tax rate on the rich and pursuing more of a non-interventionist foreign advisors arerump's inclined to want to pursue. i think what is going to happen is the struggles that have been
going on inside the white house and leaking out to reporters are going to be waged more openly now that steve bannon doesn't have to worry about losing his job in the white house. youy: steve bannon spoke to first, josh green. just out with a new best-selling book. this is about steve bannon's influence on the presidency. thank you so much. regulatorywhat barriers stand in the way of ridesharing companies and the future of transportation? this is bloomberg. ♪
bitcoin still has lots of room to run. the former j.p. morgan chief says the cryptocurrencies could hit $6,000 by the middle of next year. says user accounts are likely to rise 50%. he expects bitcoin to reach by 2022.,000 uber has been in the news a lot this week. there's a battle with the government in the philippines. other ridesharing company's were -- companies were ordered to halt operations. take a look at the future of transportation. it looks like he is in d.c. thank you for joining us back here on the show. it is not the first time uber has defied the government. how big of a problem do you
think this kind of thing will be for uber globally and here in the united states? i think number is used to this. they do this over and over where they push things to the limit and then begged for forgiveness. that is what has happened in the philippines. they were suspended for a month. that is a significant problem on the revenue front but it gives their competitors a big opportunity to grab market shares. that is a loss. this is a problem they will continue to face around the world, particularly in places like europe and asia because their governments might be a little more authoritarian or left-leaning. i think there's a situation where the technology is moving so fast and the governments feel like they cannot keep up. they are trying to slow things down and uber doesn't like that.
emily: it is very easy to get caught up in the idea of ridesharing as a future. but in china, we're seeing a resurgence in bike sharing. the chips fall? gabe: i'm excited about the renaissance of the bike. d.c. the commissioner in at the department of transportation. widescale bike movement. people loved it. i think sometimes people overcomplicate people's trips. one-three mile trip is perfect for biking. there are u.s. based companies and chinese-based companies
coming into the u.s.. cities are sometimes worried about it, but big picture, i think the single occupancy vehicle, the car, is really the enemy here. i shouldn't say enemy, it is the market opportunity. if that goes down, there will be huge opportunities for bikes -- for people to walk, for driverless shuttles and various modes tohnologies and fill the gap. emily: talk about other competitors. the hyperloop, there are more futuristic plans at work in july. tweeted, they will create a hyperloop. what really goes into getting approval for something like this, and how realistic is it? elon a lot ofyo credit for a lot of things. especially for getting a lot of
press in marketing out of it quickly. the reality is, a verbal a prevent -- a verbal approval from the government doesn't mean anything. you have to do with state and local jurisdictions, particularly where something like the hyperloop would begin and terminate. but above and beyond that, there is all of the funding that has to be figured out, the right-of-way issues, which means the land you have to procure and utilize to build something like this. you're talking about a process that is probably minimum five years in the grand team of things, verbal approval does not mean much but he had a lot of media out of it. emily: do you think the hyperloop can happen? gabe: yeah. people thought the interstate highway system was a crazy idea. it happens. when you think about the hyperloop, it is a vacuum and it makes a lot of sense. like anything else, it takes
emily: hollywood studios are considering a plan that could cut into business at movie theaters. the filmmakers may go ahead with the proposal to offer digital rentals of movies on video-on-demand platforms like apple and comcast. l.a. is crayton harrison. rayton: the movie studios are kind of in these conversations with potential distributors of digital downloads apple, comcast, cable companies that
sell video-on-demand to offer films even weeks after they gave you in theaters -- after they debut in theaters. they have also been talking to the theaters because they like to have their permission to do this. it would go much more smoothly for them. so far they haven't been able to reach this agreement. there are starting to feel like they might have to go it alone. emily: can movie theaters fight back? crayton: yes. there is a lot they can do to fight back. they are still the biggest generator of revenue for films. they can just boycott a movie. -- say, forand sxample, we will release holme s a few weeks after it is in theaters in the studios can say no thanks. we cannot do that. emily: have you expect this to
play out -- how do you expect this to play out? crayton: it is still a work in progress. as thedios as early beginning of next year try to ask your mitts with putting out a movie a couple weeks -- try to experiment with putting out a movie a couple weeks after it is released. you can see price points anywhere from $30, $40, $50 for that type of this. if you can bear that the cost of getting a babysitter and going out, a couple of people might come out ok. or you can see the studios back off and say we need to get the theaters on board area -- on board. emily: crayton harrison there. thank you very much. on monday, people across the u.s. will be treated to a rare event, eight total solar eclipse -- a total solar eclipse.
took a look at how the tech industry is bearing in the shadow of the moon. thousands of people will be lining up to watch the first total solar eclipse. are offering ways to watch the spectacle like never before. where i am, san francisco, isn't the ideal to the total effect of the eclipse. to see that, you need to be along the path of totality, a 70 mile wide path that will come across the country. the best view? that is reserved for nasa pilots. they will chase it with jet planes. the jet will capture the asarest images of the corona
well as the first ever thermal images of mercury. enoughse of us not lucky to go supersonic, there are other ways to watch. mysterys entering with science to handout 14,000 pairs of these classes to make it safe for kids and teachers to watch. as nasa will remind you, it is dangerous to look at the eclipse through homemade lenses. for those who are not in the path of the eclipse, they can get a page of what they are missing through google earth the a -- vr. amazon is waging a war on elders trying to pass off the glasses. the company has gone as far as issuing any no warning and refunds to customers who bought the knockoff. another business is airbnb. over 24,000 homes on the path of totality have registered on the home sharing site with 50,000
incoming guests. that is nearly four times the number that stated in the same area last year. is alsohertz -- hertz is also cashing in. the company nest is trying to save money by cooling eligible homes. it could disrupt productivity for 83% of the country,, and close to $700 million -- $700 million. to that is the equivalent of nine nuclear reactors, and that energy to power 7 million homes. -- as solar energy drops, more power plants will have to pick up the slack.
>> from our studios in new york, this is charlie rose. president trump continues to whether the fallout from charlottesville, virginia. his comments but him a odds with top military business leaders and members of the republican party. he dismantled to business advisory councils after a series of resignations. twitter thathe at it was sad to see united states history ripped apart. joining me now is robert costa. he is the moderator of