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tv   Bloomberg Technology  Bloomberg  November 27, 2019 11:00pm-12:00am EST

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>> i am taylor riggs in san for emily chang, and this is "bloomberg technology." in the next hour, full steam ahead, anti-trust chief tells bloomberg the eu will push for a tech tax even if a global push fails. we hear from her. plus, fine-tuning forecasts. we will explore how technology is changing weather forecasting with pinpoint precision, an important tool when it comes to predicting travel tie ups and potential wildfires and potential opportunities in the
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space economy industry. it is estimated to reach $1 trillion. first our top story. the e.u.'s antitrust chief has made a name for herself as a tough regulator who is not afraid to go after big tech. wednesday, she told bloomberg that the e.u. will still pursue a digital tax even if a big push at oecd fails. maria tadeo talked to her in france, where she was asked how europe's revelatory posture on -- regulatory posture on technology is different than the u.s. and china. maria first and foremost, to : promote what we have going for ourselves already because in the business-to-business environment you find a lot of impressive tech. you find engineers and research and an impressive start up environment and the willingness to balance all the possibilities.
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>> you are talking about innovation, but we do here many times from u.s. companies the reason you're focused on taxation is because we have not seen real invasion europe. -- innovation in europe. do you agree and is that fair? >> that is not fair, not just some of them but every company should contribute where they do excellent business. that is the bottom line in europe. you do very good business here. >> is that something where you think if by the end of 2020 there's no international agreement on digital taxation that it would be fair for the eu -- e.u. to go it alone? >> yes of course it would paired we are strong believers in a -- yes, of course it would. we are strong believers in a global agreement i am happy to see the progress made by the oecd. that is a very strong push. and there is positive feedback on the first draft. that would be the best solution. but if that cannot be met, when you look at the differences to pay that taxes, it would only be fair that we pick it up again if a global solution is not possible.
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>> based on what you hear now from the oecd, this time there is momentum to get this done. we have been here many times and we have not actually seeing progress made. >> normally, i would not be sort of optimistic when it comes to taxation, but i think now , actually there is a momentum, , there's a deeper understanding that we have to update corporate taxation to digital times. in that respect, the global dialogue is changing. >> we also heard today from lyon thatn -- van der data is key for the commission, data's power but it can be weaponized.
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what we do about it. what is the message to protect consumer data and europe and how you deal with that? >> fyrstenberg going to make a competence of strategy paired -- strategy. data is more than a commodity. it is also what defines us as people and digital ages. we have taken a number of steps. with the digital citizen rights. we have a lot of public data that has been made available we need a conference of strategy for data to be the driving force. and also a prosperous european economy. >> and what timeline are you looking at? >> this has to be thoughtful. it ties in with what we are planning to do with artificial intelligence and that you things will have to come together. for people to see the full scope of what data can do, we have to make a specific strategy when it comes to data. >> and mergers and acquisitions was a big theme for the old commission. use physically said you -- i know you specifically said you disagreed with a few of them and you blocked the one that led to criticism with the new commissioner. we are going to see a change in the rule. will that make it easier to create a big european champion? >> it is easier already. we have giants that come in and are making a vast majority.
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they are approved because we see no competition confirmed. we do not question the business logic. it is so rare that this happens. and actually, the example we have been discussing is that they were not the prime example. what we want to do more is make sure that when it comes to data that you cannot just acquire , access to data that you would otherwise not be able to have if that were the topic of conversation. >> that was the e.u. antitrust chief, margreth vestager. speaking to bloomberg, maria tadeo. influential marketing is more than a $6 billion industry, and big brands are getting creative with social media marketing but start of airbnb , -- start-up airbnb was early to the game with stars like beyonce and mariah carey posting about their stays at luxury airbnbs. to talk about how airbnb is benefiting from social media, we are joined by bloomberg
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van der may.ann how successful has airbnb's technology marking strategy been? >> very successful. you see posts from celebrities like justin bieber, lady gaga, britney spears, the jonas brothers, the list goes on. it has helped set them up as a luxury brand. taylor: were they early to this game? >> they really were. in not a lot of people were 2015, doing this. social media marketing was a new thing. not a lot of people were talking to celebrities about it either. they're going out there posting, they are thinking airbnb and they are posting. the lines are getting blurred as to what is an ad and what is a post. do you have to disclose if you're getting paid for this? anne: you do. the ftc or sec mandates there be a clear conspicuous disclosure. ,the rules were not quite as
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clear. you saw people saying thanks airbnb, great pad. firmedings have kind of up a little bit. the fcc has released new guidelines. you're much more likely to see a post that says, "thanks for the lovely home, courtesy of airbnb. taylor: making sure people know it was an ad or a gift. anne: exactly. taylor: i want to talk about if there was any backlash. it seems it was all fun and games until regulators come in or until there is backlash. has there ever been backlash on these brands for doing this? anne: you know it is not really , clear that there has been. sometime,s people see the -- sometimes people see the , sponsored posts and are not as likely to click on it. facebook says that making those disclosures does not lessen the impact. also, the fcc sent out a couple of letters but enforcement has not been that fierce. you still see some fudging it around the edges. taylor: and they are getting the returns on their investment
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despite what seems like a costly , investment sometimes. anne: it depends. say kylie jenner, it can cost a up to $1 million for a single post according to some reports. , is that worth it? it is arguable, but maybe. taylor: i want to switch to another story you are writing about, that has gone from influencers. influencers are kind of outdated and we are now running to memes. meme craze? new anne: an influencer is, check out the shampoo i love the shampoo. i meme is a series of jokes and this is often out teens want to relate to brands. they are really resistant to being sold to. it feels inauthentic. but if you are just making a joke or maybe even making fun of the brand, it is easier to relate to. taylor: what companies are taking this route? anne: uber is one example. a couple of dating apps. you are not seeing as many of the really big names.
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taylor: i want to talk about what this means for the state of advertising. how has it changed, and how has tech driven a lot of those changes? anne: you know, i think tech has wholesale changed the way advertising works. but one of the interesting elements of it is social media marketing in particular because , you feel you are so close to these people and on instagram and facebook, you cannot get away from them. you can use an ad blocker everywhere else on the internet but not there. ,taylor: thank you for joining us. 29 million facebook users whose data was compromised by a hack cannot seek monetary damages from the tech giant. a federal judge ruled users can band together if they want the company to improve its privacy -- security measures. the u.s. district judge says he is granting the class action measures because "facebook's repetitive losses of users' privacy requires a long-term
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need for supervision." forecasting cloud through the cloud. one company using supercomputres and big data to predict the weather. if you like bloomberg news check us out on the radio. you can listen on the bloomberg app, and at you can listen on sirius xm in the u.s. this is bloomberg. ♪
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taylor: amazon and ebay are fending off reports that some products sold on their website have high mercury levels. the items in question are skin lightening creams. activist groups including the sierra club purchased 158 of these types of products from amazon and ebay market places in
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12 countries including united states and found 60% were contaminated by mercury. some of the products have been flagged by the fda. an amazon spokeswoman said the product are prohibited and are no longer available. ebay in an emailed statement said it is reviewing the report to make sure it is removing any contaminated product. now, predicting the weather is a challenge no matter where you are in the world. to get ahead, one company is turning to supercomputers. i spoke to the ceo of the weather company, a subsidiary of ibm. cameron clayton told us the new technology will give faster and more precise forecasts and will cover the whole planet. >> we just launched a global high-resolution weather model the first of its kind in the , world. we built it because we have seen
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this divide. it is like the digital divide, but it is basically -- the rest of the world does not have the same quality weather forecasting we enjoy here in the united states. and so at ibm and the weather , company, we have been working for the past two and half years -- 2.5 years to build this new global weather model. it launched recently. we are excited about it. >> what are you hoping to achieve with it? are you really looking at forecasting to help save lives ? what is the end goal? >> at the end of the day, we do come back to saving lives. that is a mission our team has. when we look at weather and the volatility of it increasing around the world, we see that it is just proportionately impacting the poorer countries and poorer people in the world versus richer nations in the world. and we wanted to do something about that, and that is what we have been working on this global model. taylor: when you talk about the
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digital divide, how can you make sure that those developing countries that really needed get the weather infrastructure, the digital infrastructure, the technology infrastructure, that they need to be actually using your modeling system. >> the great news about this is, we have been working for two years building a supercomputer that is specifically designed to run this global model. for the first time in the world, we had a graphical processor based supercomputer that runs on nvidia gaming chips. it is a video gamers dream to access a supercomputer. we are using it for this model. and means the entire world is covered by the supercomputer. it is based in raleigh, north carolina. every two miles on the entire planet as a grid, we are now able to provide a high-resolution forecast. that was not possible until now.
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taylor: how important was it for you to make sure the nvidia's gpu's were up to snuff? ibm's cloud can also help you further advance your modeling system. cameron: people take their weather for granted a little bit and they do not understand the scale of it very well. today in the u.s. and around the world, it is a fairly normal weather day. on a normal weather day, we will runhe ibm cloud that we will do 25 billion data requests, so 25 billion different times today, you know, our cloud will be asked for weather information. on a busy weather day, with severe weather somewhere, it will increase another 10 billion requests, so another third almost increased. it has to be able to sustain these huge spikes in volume and
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severe weather strikes. those huge part of us using the ibm cloud, and also using nvidia chips, is to be able to marry this huge computing at huge scale to save peoples lives. taylor: we talk about the huge scale. i want to bring it back to a practical solution. in california, we talk about the utilities and the aging grid and the impact of wildfires and pg&e shutting down the grid in anticipation of the wildfires. what would be a practical solution in that case, to be able to use your modeling system? cameron: i will give you a couple examples. one is the model will now, at a 300% higher resolution, be able to give an accurate prediction of what is happening now and in the future at any place on the grid of the power network. the other example i would share, we have been working with utility comedies around the
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world,anies around the not just here in california on , what we called watson vegetation management. we do an ai satellite imagery that is evaluated by ai, to show where the trees are hanging over the power lines. so instead of the power companies working through in a sequential way and cutting trees, they now go out exactly to the places the vegetation is overhanging the network and fix it. taylor: that was the weather company ceo, cameron clayton. coming up, the influence of females in the tech industry. we will share some victories in the largely male-dominated sector. and bloomberg technology is livestreaming on twitter. check us out @technology. and be sure to follow our breaking news network at tictoc on twitter. this is bloomberg. ♪
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taylor: let's get a look at the top technology calls. capital markets raised disney's price target, citing optimism over the streaming service. an analyst expects 26 million subscribers for disney plus in the first year and says five of subscribers appeared to be quite conservative. he expect more than $1 billion in disney plus revenue in the companies fiscal 2020. the autodesk analysts raised their price targets on the stock after it reported third-quarter results. the outlook was seen as strong. they raised the price target to 190 dollars per share, saying they are pleased and continue to believe autodesk remains well-positioned across and markets.
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third-quarter results beat expectations, prompting commentary from analysts who noted this was in contrast to weakness from other countries. analysts said the results are solid and there is a continued positive set up in fiscal 2021 and beyond. that was a look at the top tech calls. the rise of technology firms has been the single biggest driver of growth in the u.s. in the last decade. companies including facebook, salesforce, and -- silicon valleysymbo is being explored. we continue our ongoing conversations about the bottom-line impact of diversity. she took on silicon valley's male culture and made the deal of a lifetime. >> i started casting a wide net
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and interviewing the women. i just gravitated to certain women's stories. >> the women you end up critical rolesd in creating the companies they are in, but they are not household names like elon musk, bill gates, steve jobs. do they want to be household names? is that the only way to change the narrative from something that is male driven to something that is more inclusive? >> that is a really interesting question. i think they did not set out to be household names. now, because of the book and the book being adapted for a television series, it will broaden and commercialize the story. i think that they are really proud of their stories. they were reluctant to tell their stories in a lot of ways. i think you really have to be brave to be vulnerable. for women, women had been -- these women who worked in this
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male-dominated industry, and this speaks to industries across the globe, they had not sought out the spotlight. they had been these outsiders who had found their way in to this industry. they had to learn to play by someone else's rules before they could start writing their own roles. -- rules. they had to go from navigating to trailblazing. they did not set out to be in the limelight. now, they are at this place in their lives where they want to show it is possible. they want to show that tech can be a great place for women, venture capital is a great industry, and there is something to be proud about in seeking to make a lot of money, to build companies. it is very important for women. both of those industries are really great, in particular, for young women, to change kind of this power dynamic. >> are they more secure in themselves that they are in a position to throw caution to the wind, to say you know what, , whereas before i was scared to put my name out there, now it
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does not matter, i'm going to go for it. julian: i think it is a combination of things. they reached this point in their lives and career where they do have the credibility and money and success stories and companies they have built. there is also the zeitgeist, a moment in time and a call to action for men and women to pursue equity. i see this as the biggest business issue of our time, the issue of equity. i think the women now are very proud of their stories and of telling their stories. again, it was very hard to get them to tell their personal stories. to tell their success stories, of helping to build salesforce or trulia, or grab the facebook deal, those were more of a reporting challenge, just getting a ride. but getting them to tell about -- getting it right. but getting them to tell about the broadside, what happens when you come down or diagnosed with an illness or adopting a baby at the same time, or when you as a woman make more money than your partner or your husband?
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all of those things were more difficult. but they were such an important part of alpha girls and telling that story. >> how do you think the me too movement played into this? you talk about the zeitgeist. we cannot ignore the fact that me too has been happening and has taken down a number of prominent men. did that factor into people's thinking? was that kind of in the backdrop the entire time? julian: i started my reporting before the me too movement became this galvanizing force, and i thought that women would be much more at ease in telling their stories. but that was not the case. i think it helped, because there is a community. there is a community. -- there's a network. people are being held accountable like never before, thank goodness. but at the same time, they're still working in this industry, these four women.
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taylor: that was the author of alpha women. the clock is ticking on tiktok. we look at the u.s. plans on chinese investment in america. that is next. this is bloomberg. ♪
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taylor: this is "bloomberg link," wherelobal we join "daybreak australia" to bring you the latest in global tech news. i am with shery ahn in new york and paul allen in sydney. we take a look at the top stories of the day. paul: german chancellor angela merkel wants a new european agency to handle 5g matters. an apparent move to address safety concerns over chinese equipment in the next genentech. merkel believes that allowing each e.u. nation to set its own china policy with regards to 5g would be one of the biggest
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dangers, devastating for china and europe. on monday, the u.s. will announce its response to france's digital tax. reference regulation targets companies like facebook, google and apple. ,in trump and macron tried to truce butgotiate a the 90 day deadline expired this week. it affects companies with 85 million in global revenue and digital sales of $28 million in france. and xiaomi has seen a slight profit rise in the last quarter. vendor top smartphone posted a 1% gain in profit after expansion overseas into online services helped offset slowing growth in sales. they saw hardware sales in india and europe. shipments increased 73%. those are the top global tech stories we are watching. shery. taylor: paul, think -- shery: paul, thank you.
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it is no secret the trump administration is looking the crackdown on how china interferes with u.s. tech. whether it is ip theft forced , technology transfers, or even mergers and acquisitions. one of the biggest weapons in the u.s. arsenal that can be deployed against china is the committee on foreign investment in the united states. in the new report to congress it , highlights how that group is being used. it is being used more often. in 2017 and 2018, the group investigated 73% of the foreign purchases respectively. contrast that to 46% in 2016. joining us from washington to discuss these findings is nate bolin, where he specializes in international security and international trade law. these numbers coming even before we saw pharma passing and expanding the authority of cfius.
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how will things change? nate: that is a great point. this is the tip of the iceberg in terms of the scope of the reviews that cfius has enacted and implemented since 2017. we have seen an uptick in investigations. as well as the number of filings with cfius. the legislation you mentioned, the foreign review modernization act has only expanded the scope of review. it is going to expand areas like aerospace and defense as well as increasingly companies like tictoc that may have information on americans' personal or genetic information. taylor: you mentioned the chipmakers, for example the one we just saw, broadcom and qualcomm. what other sectors do you see at risk from this heightened sense of cfius review? nate: there's certainly some of the traditional areas like infrastructure, aerospace, and defense. they remain top priorities. but increasingly, the so-called
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emerging and foundational technologies the u.s. government is in the midst of identifying. things like quantum computing, artificial intelligence, additive manufacturing are , increasingly going to be a focus. those are exactly the areas cfius is most concerned about. shery: it is interesting because we really do not find much consensus in washington. but when it comes to the china stance, it seems to be that everyone is on board. what does this mean heading into the 2020 elections and perhaps how things could change after the result? nate: that is a great point. the legislation passed by overwhelming majorities in both houses of congress. it was a bipartisan effort. agreed to and sponsored by the trump administration. the key takeaway from that is, matter what happens in november 2020, we are going to be dealing with these issues longer-term. this is not something that is just a creature of the trump administration's policy, but something that both sides of the aisle are behind and supportive of. taylor: is the increased cfius
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review warranted in your opinion? nate: certainly, the risk factors congress has identified are fairly extensive. there's been a lot of studies that came out that highlight these risk factors. and i think the administration and congress are looking for will enable a closer scrutiny of those investments. they are trying to focus on the riskiest transactions, repeating that thege frequently u.s. remains open for business remains open for , investment. they want to have an additional look at what might be coming in to threaten u.s. national security. shery: what have we seen already coming into the u.s.? how big are the chinese investments and the focus of these chinese companies in u.s. firms? nate: well certainly in the past , 10 years, there has been an uptick in chinese investment in the united states that has declined somewhat in the past 18 months to two years in part because of some additional currency controls that china has
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enacted that restricted outbound investment, but also according , to many commentators, the lookingt cfius has been more closely at inbound investments. there remains a high level of investment from other companies. this is not something intended to focus solely on china, so there is scrutiny of other transactions from other countries as well. taylor: nate what do investors , in some of these non-u.s. companies do? nate: the most important thing is to look at these issues early on. if you are scrutinizing or considering a transaction, make sure this is on the list of things to look at. at the very outset of the deal. work it into any types of deal term sheets you may be negotiating. other parts of the transaction you may be looking at strategically. factor in the cfius timelines and all the information that needs to be gathered to make a convincing case to clear the cfius review. this is not something you want to hold until the last minute. taylor: thanks to nate bolden. plenty more global stories ahead. this is bloomberg.
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taylor: the fall has been a rather quiet period for space endeavors, but that is about to change when we will see space x layout four missions in december. kicking it off, a logistics mission. the overall space economy is estimated to reach $1 trillion globally by 2040, capturing the attention of investors worldwide. our next guest is one such investor. before that, she was also a former space ex-employee as a mission manager with the falcon nine rockets. how did you get into the space? >> thanks for having me, taylor. the first american female
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astronaut went to my childhood school. when she came and spoke, i wanted to be her ever since. astronauted to be an and saw common backgrounds. taylor: you got into this field, where do you see investing opportunities? how big do you think the market has the potential to be? tess: before making predictions about what is next, it is important to look back on the technological catalyst or momentum drivers that have gotten the industry to where it is today. specifically, the private space industry. there is two of those. the first is the invention of the -- of moore's law especially decreasing the size and power of commercial off-the-shelf components. it is a 10 by 10 by 12 centimeter box, the size of a tissue box that is a new type of formfactor they can be launched and put into space.
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before that, the only way to get an asset into space was a massive school bus sized satellite, which would take years if not decades and millions of billions of dollars to make. people flocked to this cube factor and put or communication. that was the first. the second was how to get it there. being a manager, i would see satellites bumped from mission to mission. i was focused on my primary school bus sized satellite. the second was the invention of the tiny rocket. i think communications is a massive market that will help the space industry grow into the projected trillion $1 million. ubiquitous internet connectivity from space. taylor: where are you making investments? it is more than drones, it is more than a commercial
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spaceflight. what investments are you making to achieve this goal? tess: we are in the deep frontier tech umbrella. i am spending most of my time in commercial space, drones, and autonomous vehicles. within space, it is people who are coming up with unique ways to put sensors in space that will help back on our. in drones, i think it is really open to one's imagination. emergency medical supplies. imagine if someone is having a heart attack or allergic reaction. an ambulance takes on average 14 minutes to get to a person. you can dispatch a drone that can deliver an epipen or device saving lives every day. autonomous vehicles is another massive trillion dollar potential market. taylor: you peaked my interest when you talked about autonomous vehicles. we talk about them on this program frequently. how close do you think we are to fully autonomous driving? tess: i think we are entering
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the trough of disillusionment. unfortunately i think it is , going to take longer than we are expecting. when level five, true level five, will be achieved is further out. i think there is supplemental technology that can be integrated in. for example, telly operations. that can help the aia nejra ainer cases, -- the cases and ping back to a person and help a vehicle navigate. i invested in company that is helping with this. taylor: were you investing to get space travel? tess: my two companies are rocket lab, it is one of the tiny launch vehicles. the second is spire global, the largest cube set constellation. we have an ais center. the dsp for aviation and gps for weather monitoring and prediction. taylor: i am learning new stuff everyday. that was tess hatch from bessemer venture.
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in 2019, missions to the moon service by both india and israel resulted in the technology to mine and extract these potential water reserves. it is still unproven. some entrepreneurs are still optimistic. enter honeybee robotics. >> the technology exists. we can put something together. we can send something to the moon that can mine water. we are like trail blazers trying to figure out what is going on on the moon. >> meet honeybee robotics. they design drones using past missions and have sampling and mining missions going on future planned missions to the moon, saturn's moon titan, and europa.
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>> have been focusing on developing fully autonomous drilling systems from iphone size to the size that cannot fit in this chamber behind me. >> that is why nasa has long relied on their expertise. their drills overcome the numerous imitations of space, which include extreme temperatures and low gravity. >> that means you have to be very imaginative. very innovative to solve these problems. you're trying to do what we do on the earth with a fraction of the power with a fraction of the mass, with a fraction of the volume. and drilling is unforgiving. if you get stuck, there is no second chance. >> the difficulty is laying the second probe into the next day. >> one of their ideas uses compressed gas tissue material
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into a container. was chosen to go with nasa funded payloads to the moon. from mining and extracting water on the moon, they have created the planetary extractor. it not only drills, and mines. it is based off a drill that removes a cylinder of material. >> it is not just any drill. it is a system with heaters on the inside. you drill down. you heat up material on the inside of the drill. ice turns into vapor. vapor moves up the drill. you are capturing water vapor like in your freezer when you have condensation. it is a mining system. it can get into the soil. it can extract water. it can capture the water in a separate container.
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we have all the pieces together. we can go to the moon or mars and mine it. >> when it is tested on the moon, it will be the first end to end mining system deployed to space. they have even more futuristic ambitions. like this one that not only extracts and stalls water, but uses it to propel itself gay -- like a flying kettle. it is very futuristic. it is a new concept of expiration. >> the concept is to send spacecrafts all over the solar system. honeybee robotics is one of the many startups that nasa is depending on the development innovative ideas. >> a strong public-private partnership with nasa to come up with landers we can send twice a year. we are doing it.
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it is happening right now. very exciting times. taylor: still ahead, real estate investors are looking for new tech opportunities could biotech be it? this is bloomberg. ♪
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taylor: facebook is buying the studio behind a popular virtual reality game. it makes his music, music,ber's, -- mixes light sabers, and dancing. the studio will join facebook's oculus gaming unit.
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facebook has been trying to expand virtual reality to mainstream consumers. now, real estate investors continue to find opportunities in biotech. one of the top names in the business right now alexandria , real estate equities, which builds commercial properties and leases them to life science companies. the chairman spoke with bloomberg's and moss in boston about -- anne mavs in boston about where he sees growth, big tech, funding, and the lessons from wework. >> we have tried to maintain our original strategy, keeping on the west coast, seattle, san francisco, and san diego. the three greatest life science and technology markets. and on the east coast the boston , cambridge area, new york city, kind of the greater d.c. area, and then the research triangle region in north carolina. there is a lot of growth going on in the mid part of the country. we are so busy in our current markets that we have not sought
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to expand in the center of the country. texas is in our sights at some point over the next decade. taylor: looking beyond biofarma, how much of your business will be agricultural technology in the next five years? joel: we noticed a couple years ago that venture capital investment in a gtech -- in ag we did someom -- deep research and decided to research triangle region in north carolina was the center of where this was being focused. we decided to though the first multitenant ag campus with great amenities. it is a beautiful -- it was just opened over the past quarter or two. it is the first one in the world that has sought to bring together large major ag tech companies together with midsized companies and then early-stage startups with a smattering of venture capital and world-class
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amenities and greenhouses. so it is office lab greenhouses in one beautiful campus. we think that over time, maybe ag tech becomes 5%, 10%, 15% of the portfolio. hard to say, but we are very optimistic about that. >> there is a wave of venture capital and private growth capital that continues to flow into biotech. do you have any concerns anyone with half an idea can raise $1 billion right now? joel: it is a little tougher. we have been in a five-year cycle that started about 2013 or 2014. it has been five years of a strong run. the venture side has raised bigger and bigger funds, reinvested and started a lot of early-stage companies. i think maybe the wework example has taught us that if the business is not founded on a
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solid proposition with a sensible financial strategy and a management team that makes sense and is well grounded, i do not think you can raise stupid money anymore. was not saying wework stupid money, but money being thrown at companies with valuations that became somewhat astronomical. we are seeing much more discipline in the public market, which are bleeding over to the private market. taylor: talk a little bit about the reverberations of the wework drama over the past few weeks, and as a veteran what lessons , you think the situation at wework teaches. what it says about new entrants in the real estate space. joel: so i think my view of the wework model, and i am not commenting on wework as a se, but i think the model of signing long-term leases with landlords where you do not own the building, and then having short-term revenues
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from club memberships is a very significant mismatch. i think they started to realize that many years later. but they had signed so many leases that go out 5, 10, 15 , 20 years, but their membership at any given moment is monthly renewal membership. the ability to make sense of those is a challenge. so i think on the balance sheet , and p&l statement, they got it wrong. i think their concept of, would people want to work in co-working spaces or the enterprise business they have more recently developed makes some sense, but it is probably better to own buildings and then have the short-term revenues. if there was any blip in the capital markets or the economy, and people do not renew their memberships they are stuck with , these long-term leases. i think that was the real conundrum that i felt that kind of a model did not make sense.
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taylor: that was alexandria real estate chairman joel marcus. now, verizon will sit out while carriers in battle for black friday customers. at&t, t-mobile, and sprint are competing with stepped up promotional offers for smartphones. credit suisse says verizon's absence suggests it does not need to. verizon's current buy one get one free offers are similar to last year's. that does it for this edition of "bloomberg technology," and "bloomberg technology" livestreaming on twitter. check us out @technology. we should follow our global breaking news network on tictoc and on twitter. ♪ here, it all starts with a simple...
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>> the following is a paid program. the opinions and views expressed do not reflect those of bloomberg lp, its affiliates, or its employees. >> following is a paid presentation brought to you by rare collectibles tv. >> in a letter dated back to december 27, 1904, to the secretary of treasury, president theodore roosevelt wrote a short two sentence letter. this was in typical theodore roosevelt direct bravado style. my dear secretary shaw, i think our coinage is artistically of atrocious hideousness.


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