WEBVTT - Kirkpatrick: Facebook's strategy is still growth oriented

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<v Speaker 1>This is Bloomberg surveillance. Negative interest rates or a real problem.

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<v Speaker 1>No one really knows how to deal with them. There

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<v Speaker 1>are things as simple as accounting problems. I mean, the

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<v Speaker 1>software doesn't allow you to deal with negative interest rates

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<v Speaker 1>in a lot of places. I think the Feds actually

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<v Speaker 1>increased the volatility in the market as everyone app becauses

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<v Speaker 1>on the data to try to infer from every indicator

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<v Speaker 1>whether rate increases our sooner or later, and how fast

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<v Speaker 1>they'll raise rates. There is a weaker ruble, and I

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<v Speaker 1>think one of the things that the Russian government wants

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<v Speaker 1>to make sure is that the ruble in fact doesn't strengthen.

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<v Speaker 1>The ability of the Russian stakes to get through this

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<v Speaker 1>crisis depends on a weak ruble of Bloomberg surveillance. Your

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<v Speaker 1>link to the world of economics, finance, and investment on

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<v Speaker 1>Bloomberg Radio. Good Morning, I might come a key along

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<v Speaker 1>with Tom Keen. It is seven am on Wall Street

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<v Speaker 1>eight pm in Tokyo, where the yend never sleeps. A

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<v Speaker 1>much stronger yen this morning, another seventeen month high investors

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<v Speaker 1>concluding from the Fed minutes that the US central banks

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<v Speaker 1>on hold stocks also mostly lower around the world, even

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<v Speaker 1>though ECB officials were out in force, underlining their readiness

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<v Speaker 1>to ease further right now. The end going for one

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<v Speaker 1>oh eight thirty five been as low as one oh

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<v Speaker 1>eight oh two. Tokyo did finish up to tenths, but

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<v Speaker 1>in Europe stocks are lower. The foot see is UH

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<v Speaker 1>down along with the decks of the CAC forty, the

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<v Speaker 1>stock six hundred off a point three tenths of eight percent,

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<v Speaker 1>The euro down from yesterday's close, a touch higher than

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<v Speaker 1>at this time yesterday, though at right now one thirteen

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<v Speaker 1>seventy five European bonds where you really see the reaction

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<v Speaker 1>to ECB speak. The German two year note again Pierce's

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<v Speaker 1>negative fifty basis points just above or below, depending on

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<v Speaker 1>how you want to look at it. That level here

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<v Speaker 1>in the US future is pointing to a lower open,

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<v Speaker 1>with SMP futures down ten points half a percent down.

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<v Speaker 1>Futures of seventy five four tenthss like one minis are

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<v Speaker 1>down by twenty points, also four tenths. The dollar in

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<v Speaker 1>next is down from this time yesterday. So it appears

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<v Speaker 1>markets whipsode with all the central bank talk, but the

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<v Speaker 1>yen has been moving for several days now. Tom has

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<v Speaker 1>been all over this unaffected, it seems, by any of

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<v Speaker 1>the news out of the central banks, contrary to what

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<v Speaker 1>the Bank of Japan presumably had in mind when they

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<v Speaker 1>adopted negative rates in folio is senior foreign exchange strategist

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<v Speaker 1>at Rabble Bank in London, Jane. Why is the yend

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<v Speaker 1>so strong and strengthening at a time when people are

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<v Speaker 1>talking about the Bank of Japan easing further? I mean

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<v Speaker 1>there hasn't been a flight to safety event this week.

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<v Speaker 1>Well right now, that does seem to be this feeling

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<v Speaker 1>in the market that's spectators are potentially testing the Bank

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<v Speaker 1>of Japan. The Ministry of Finance resolved because of course,

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<v Speaker 1>over the last couple of months, there's been a lot

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<v Speaker 1>of talk about whether or not there would be intervention. Now,

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<v Speaker 1>whilst they have been reports that the officials have been

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<v Speaker 1>checking prices, and whilst there has been some hotline talk

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<v Speaker 1>from some officials in Japan, well, it does seem that

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<v Speaker 1>Prime Minister Arby's comments yesterday that banks should avoid arbitrary

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<v Speaker 1>effects interventions taken as a signal that actually they're not

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<v Speaker 1>going to intervene at all, and that really did provide

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<v Speaker 1>a trigger to send Oliyan lower that today with the

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<v Speaker 1>market doesn't believe they'll intervene, while in fact it could

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<v Speaker 1>go lower and irrespective of of the easy that the

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<v Speaker 1>Bank of Japan has been warning off, Well, if the

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<v Speaker 1>Bank of Japan easies, do we catch a lot of

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<v Speaker 1>people outside, well not necessarily. Again, you know that the

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<v Speaker 1>end doesn't necessarily move around with Bank of Japan movements.

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<v Speaker 1>And part of this, and it's a little bit like

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<v Speaker 1>this with Frankenness respect is it is because the the

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<v Speaker 1>yen is the safe haven currency, so the yen is

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<v Speaker 1>likely to see most weakness when risk appetite is fun,

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<v Speaker 1>when people are using the yen as a funding currency

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<v Speaker 1>to move into too higher risk assets. Now, we saw

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<v Speaker 1>at the start of the year the end was very

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<v Speaker 1>firm because stock markets were slowly in off, etcetera. But

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<v Speaker 1>what was interesting is when stock markets started to recover

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<v Speaker 1>and around about February and through March again remained relatively firm.

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<v Speaker 1>It broke off its correlation with with the vix's index.

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<v Speaker 1>Now that could be a suggestion that there are still

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<v Speaker 1>lots of investors out there still worried about global growth,

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<v Speaker 1>still worried that we could have perhaps disappointed earnings from

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<v Speaker 1>the U s still worried about these risk factors holding

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<v Speaker 1>onto to their young positions, perhaps as a hedge, and

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<v Speaker 1>that then has fed this whole conversation about whether or

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<v Speaker 1>not that would trigger intervention. But personally, the intervention from

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<v Speaker 1>the G seven nation would be very, very difficult, and

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<v Speaker 1>it would certainly raise some criticism or the risk of

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<v Speaker 1>criticism from other major banks such as Jane Foley rather

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<v Speaker 1>by good morning everyone, Bloomberg Surveillance, marger Bay, Investco and

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<v Speaker 1>Vestco believes it's time to bench to benchmarks to consider

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<v Speaker 1>active management and factor based strategies. Find out more and

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<v Speaker 1>investco dot com slash high conviction. Jane Foley, who loses

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<v Speaker 1>when the yen strengthens? Well, of course it is really

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<v Speaker 1>those Japanese exporters and and once we can see the

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<v Speaker 1>recovery most stock markets really since February, middle of February.

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<v Speaker 1>Of course, the Nikki has been plagued from in the

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<v Speaker 1>last few weeks really because of yen strength. But you know,

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<v Speaker 1>we've spoken before about the broader value of of the en,

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<v Speaker 1>and of course the en could suffer did see a

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<v Speaker 1>huge amount of weakness in recent years, and on a

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<v Speaker 1>relative basis at the yen on an effective exchange rate basis,

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<v Speaker 1>the yen is still not an ember valued. In fact,

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<v Speaker 1>it's still under valued on many measures. So those exporters

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<v Speaker 1>year they might be struggling right now, but actually the

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<v Speaker 1>yen is not overall a particularly strong currency. Well what's

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<v Speaker 1>before we let you go? How long can it go?

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<v Speaker 1>What are those speculative positions telling you at this point? Well,

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<v Speaker 1>I think I think we saw a lot of these yesterday.

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<v Speaker 1>A lot of people had to thought that one ten

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<v Speaker 1>would really provide a line in the sand and it

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<v Speaker 1>could hold it. The fact that it hasn't really opens

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<v Speaker 1>up the prospects for perhaps at further further losses. Now, um,

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<v Speaker 1>you know, if we look at the charts, so we

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<v Speaker 1>could go a reasonably long way, but fancy one to

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<v Speaker 1>five or say, but again, I think really in order

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<v Speaker 1>to see that, we'd have to see some really big

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<v Speaker 1>movements in the dollar as well. So I'm so skeptical

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<v Speaker 1>as whether or not we fall that hard. But this

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<v Speaker 1>break of one tent is any big level for a

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<v Speaker 1>lot of people's psychological outlook. Jane, thank you so much.

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<v Speaker 1>Jane Foley with Robbo Bank this morning. We have a

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<v Speaker 1>lot of fun this morning with Steve Case Obayo well

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<v Speaker 1>and giving us terrific tech perspective of Mr. Case's new book,

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<v Speaker 1>The Third Wave as the author The Facebook Effect. David

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<v Speaker 1>Kirkpatrick joins us. Now, David, we could go for hours

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<v Speaker 1>with you right now, what is the single most I'm

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<v Speaker 1>gonna give you an open question. I usually don't do this.

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<v Speaker 1>What's the single most interesting thing that you're observing in

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<v Speaker 1>the Kirkpatrick world right now? Well, actually, I talked about

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<v Speaker 1>one of the breaks during TV. I think the Amazon

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<v Speaker 1>Echo is a really incredibly important new product that's really

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<v Speaker 1>pointing the direction at how computing is going ahead, and

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<v Speaker 1>people in the industry are amazingly excited about it. I

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<v Speaker 1>have been finding it kind of a catalytic device for

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<v Speaker 1>helping me rethink where what does The Amazon Echo is

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<v Speaker 1>a new technology product that it's a consumer product that

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<v Speaker 1>they have you put in your living room. It's basically

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<v Speaker 1>listening all the time and you just say, Alexa, you

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<v Speaker 1>know what's the weather, Alexa time might t Alexa, what's

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<v Speaker 1>the you know? Get bordered me a uber or Alexa play? Uh?

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<v Speaker 1>You know Merle Haggard on Spotify, uh. And it will

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<v Speaker 1>do all that stuff in plenty more. But the thing

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<v Speaker 1>that's amazing about it to me is that it's an

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<v Speaker 1>ambient intelligence that's just waiting for you to do things,

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<v Speaker 1>and you talk to it much like you talk to

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<v Speaker 1>a human being, and it does things you know at

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<v Speaker 1>the moment, still quite primitively, that are not that different

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<v Speaker 1>from what your wife would say if you asked her

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<v Speaker 1>a question. No, no, no, you're I have one, and

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<v Speaker 1>you're completely wrong. If I say to my wife Monique,

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<v Speaker 1>play this, She's gonna say no. But I Alex goes ahead,

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<v Speaker 1>what's the weather? Let's say. Well, but that's a good point.

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<v Speaker 1>I use it all the time and come home and

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<v Speaker 1>I say, Alexa play The Grateful Dead, or Alexa play

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<v Speaker 1>Beethoven or something like it. I love that, But I

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<v Speaker 1>don't ask it for the weather. I don't ask it

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<v Speaker 1>for the news because I'm connected on all these other

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<v Speaker 1>devices and I know what that stuff is. So I'm

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<v Speaker 1>wondering we are a more informed person? Yeah, but not

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<v Speaker 1>from what I read. Everybody's walking around running into people

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<v Speaker 1>on the street because they're staring at their Facebook screens

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<v Speaker 1>on the um. So do we really need it as

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<v Speaker 1>something that will control our lives? Given that there are

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<v Speaker 1>so many other things. I mean, we're we're not just

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<v Speaker 1>on many sites, were on many devices. I'm not saying

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<v Speaker 1>it will control our lives per se. What I'm saying

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<v Speaker 1>is that by just sitting there and waiting for you

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<v Speaker 1>to do something and not requiring you to like even

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<v Speaker 1>turn your wrist like you have to do on your

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<v Speaker 1>Apple Watch or you know, pick up your iPhone and

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<v Speaker 1>take a pick a button or say something. You just

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<v Speaker 1>do what you normally do as a human being, and

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<v Speaker 1>you get a response from computing. That is a new

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<v Speaker 1>phenomenon that I think points at the future of interfaces

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<v Speaker 1>and actually, when you really want to get into it,

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<v Speaker 1>combine that with with augmented reality and where that's going

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<v Speaker 1>in the kind of future of displays that are going

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<v Speaker 1>to be overlaid on the natural world that will probably

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<v Speaker 1>be controlled by voice, and you start to see where

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<v Speaker 1>everything's going. And that's the kind of thing I'm excited about.

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<v Speaker 1>It's still Tom has not learned how to open a beer. Um,

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<v Speaker 1>you say, Alexa, open a beer. You get I was

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<v Speaker 1>gonna say something prosaic, like Alexa, who's doing the dishes?

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<v Speaker 1>As as as as someone with children come you like this?

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<v Speaker 1>You say, Alexe stop and it stops. Okay, we're gonna

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<v Speaker 1>come back. David Kirkpatrick with us and UH, I do

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<v Speaker 1>want to focus on Facebook and the challenges of their

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<v Speaker 1>news feed much in the news now you know where

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<v Speaker 1>they go live, folks. Kirkpatrick at the bottom was screaming

0:09:49.160 --> 0:09:52.680
<v Speaker 1>time shut up, and by Facebook, I didn't you know.

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<v Speaker 1>I guess it's good to talk to David Kirkpatrick about

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<v Speaker 1>this thing that's taken over so much of our lives. Alexa.

0:09:59.320 --> 0:10:01.719
<v Speaker 1>Let's do a data check. We're gonna do that right

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<v Speaker 1>on negative eight down future negative sixty two. Gloomier earlier

0:10:06.840 --> 0:10:09.880
<v Speaker 1>is actually trying to be a bid right now out there,

0:10:10.080 --> 0:10:14.120
<v Speaker 1>oil churning rent and green thirty seven seventy three rent

0:10:14.200 --> 0:10:19.480
<v Speaker 1>crew near forty per barrel, gold up fifteen one five

0:10:20.960 --> 0:10:24.880
<v Speaker 1>fifteen dollars twelve thirty nine, the ounce and the action

0:10:24.920 --> 0:10:27.920
<v Speaker 1>again in foreign exchange, we had a one fourteen print

0:10:27.960 --> 0:10:31.480
<v Speaker 1>earlier in euro a more subdued foreign exchange market now

0:10:31.520 --> 0:10:34.000
<v Speaker 1>than the festivities of ninety minutes ago, but one oh

0:10:34.040 --> 0:10:38.640
<v Speaker 1>eight thirty three in one point four six points, that's

0:10:38.679 --> 0:10:42.439
<v Speaker 1>a huge, big figure move on the end stronger yen

0:10:42.640 --> 0:10:46.560
<v Speaker 1>one O eight thirty three UH now as well, and

0:10:46.600 --> 0:10:52.800
<v Speaker 1>again the futures Negative nine. Now let's check it with

0:10:52.800 --> 0:10:55.719
<v Speaker 1>Michael bar and get the latest world in national headlines. Michael, Mike,

0:10:56.000 --> 0:10:58.040
<v Speaker 1>thank you very much. The focus of most of the

0:10:58.040 --> 0:11:02.160
<v Speaker 1>presidential candidates is New York, which has its primary April nineteen.

0:11:02.559 --> 0:11:05.319
<v Speaker 1>Ted Cruz will meet today with former New York Mayor

0:11:05.400 --> 0:11:09.120
<v Speaker 1>Rudy Giuliani. Last night, Donald Trump spoke to a rally

0:11:09.160 --> 0:11:12.480
<v Speaker 1>of about ten thousand people on Long Island. For the Democrats,

0:11:12.559 --> 0:11:16.240
<v Speaker 1>Hillary Clinton and Bernie Sanders traded accusations yesterday about the

0:11:16.280 --> 0:11:20.120
<v Speaker 1>other's qualifications. President Obama will present his case why the

0:11:20.160 --> 0:11:23.199
<v Speaker 1>stalled nomination of Judge Merritt Garland to the Supreme Court

0:11:23.400 --> 0:11:26.720
<v Speaker 1>should go forward. President Obama will speak at the University

0:11:26.720 --> 0:11:32.000
<v Speaker 1>of Chicago Law School today. And Egyptian described as psychologically unstable,

0:11:32.080 --> 0:11:35.240
<v Speaker 1>will be returned to his home country from Cyprus to

0:11:35.320 --> 0:11:39.440
<v Speaker 1>face accusations of hijacking and egypt air flight with a

0:11:39.440 --> 0:11:42.760
<v Speaker 1>fake suicide belt. Global News twenty four hours a day,

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<v Speaker 1>powered by our journalists. I'm Michael Barr and Michael, thanks

0:11:47.240 --> 0:11:50.319
<v Speaker 1>so much again. Negative nine in the Futures Defies six

0:11:50.440 --> 0:11:53.680
<v Speaker 1>four coming up, we will speak with David Kirkpatrick about

0:11:53.960 --> 0:11:56.920
<v Speaker 1>what's forward for Facebook, so much of us A look

0:11:56.920 --> 0:11:59.920
<v Speaker 1>back for Facebook, A lot going on there. Michael mc

0:12:00.040 --> 0:12:06.480
<v Speaker 1>ke and Tom Keane. This is Bloomberg savannas Bloomberg Survantance,

0:12:06.559 --> 0:12:08.360
<v Speaker 1>brought you by s c N d V Bank for

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<v Speaker 1>I'm Karen Moscow. This update is Rozzi Uvayne National Realty

0:12:35.960 --> 0:12:38.200
<v Speaker 1>Returns on cash and rented real estate. Find them at

0:12:38.280 --> 0:12:40.960
<v Speaker 1>n r I a dot net right eight reporting fourth

0:12:41.000 --> 0:12:44.280
<v Speaker 1>quarter profit that beat analysts estimates, revenue missed, and the

0:12:44.280 --> 0:12:47.520
<v Speaker 1>first of bullishness that lifted U s stocks yesterday is

0:12:47.600 --> 0:12:50.720
<v Speaker 1>fading with U stock index future signaling equities will fall

0:12:50.800 --> 0:12:53.880
<v Speaker 1>for a third time in four days. SNP eveny futures

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<v Speaker 1>down nine points, now eveny futures down sixty four and

0:12:57.040 --> 0:13:00.160
<v Speaker 1>nastac E many futures down seventeen and a half. In

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<v Speaker 1>Germany's down about two tens per set ten. Your treasury

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<v Speaker 1>up seven thirty seconds, the yield one point seven two. No,

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<v Speaker 1>I'm x screwed oil up to ten percent or eight

0:13:08.440 --> 0:13:11.400
<v Speaker 1>cents at thirty eighties three of arrol Co mix gold

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<v Speaker 1>up one per cent or fifteen dollars twenty cents at

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<v Speaker 1>twelve thirty nine announced and the euro a dollar thirty

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<v Speaker 1>nine three again one oh eight point three four. That's

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<v Speaker 1>a Bloomberg business flash, Tom and Mike Karen, thanks so much,

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<v Speaker 1>David Kirkpatrick with this, I might read this list the

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<v Speaker 1>Facebook Effect. It's still fresh, it was still exceptionally pointed book.

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<v Speaker 1>But what's changed, David Kirkpatrick. I mean, I look at

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<v Speaker 1>Facebook now, the news feed. They're manipulating me. I hear

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<v Speaker 1>it all the time for people. What's their strategy strategy

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<v Speaker 1>to engage me more on Facebook? Well, certainly the most

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<v Speaker 1>recent thing we've heard about is their focus on video

0:13:49.440 --> 0:13:53.079
<v Speaker 1>in the in the United States and developed world. Um,

0:13:53.360 --> 0:13:56.800
<v Speaker 1>their strategy is still very growth oriented. I mean one

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<v Speaker 1>of the biggest things that's changed. You know, my book

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<v Speaker 1>came out in when they had three fifty million users,

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<v Speaker 1>and now they have one point five billion. Probably in

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<v Speaker 1>a year they'll have closer to two billion, and their

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<v Speaker 1>goal is everyone and and that's a very daunting goal

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<v Speaker 1>which I think is not going to get there. One

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<v Speaker 1>of their biggest problems in a way is that they

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<v Speaker 1>want to basically have everybody on a service that's controlled

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<v Speaker 1>by a company. And that's a kind of complex social

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<v Speaker 1>challenge in itself. And I think what we're seeing in

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<v Speaker 1>terms of the response to them and other American Internet

0:14:28.880 --> 0:14:32.200
<v Speaker 1>companies in Europe is an early indicator of the big

0:14:32.240 --> 0:14:35.560
<v Speaker 1>pushback they're going to get as their power just simply grows.

0:14:35.680 --> 0:14:38.800
<v Speaker 1>I think that's a big, big challenge for them. Well, Uh,

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<v Speaker 1>the curious thing is is what kind of credibility do

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<v Speaker 1>people And I guess this is gonna be primarily the

0:14:47.080 --> 0:14:50.320
<v Speaker 1>younger generation. Do people give to video that's going to

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<v Speaker 1>come over Facebook? Are they gonna look at it the same?

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<v Speaker 1>You know, if you have uh the example they showed

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<v Speaker 1>was to have Zuckerberg, you know, he's he's on the

0:14:59.560 --> 0:15:03.800
<v Speaker 1>video on Facebook saying watch this on TV. Um people

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<v Speaker 1>are gonna do that? Is it going to work? Uh? Well,

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<v Speaker 1>I think people are young people are getting increasingly used

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<v Speaker 1>to the idea of video coming at them from their

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<v Speaker 1>friends and you know, Snapchat is video mostly you know

0:15:14.200 --> 0:15:17.320
<v Speaker 1>it's so I don't think that's a problem for these kids.

0:15:17.400 --> 0:15:20.160
<v Speaker 1>I think that it's is it interesting, is it engaging?

0:15:20.240 --> 0:15:23.560
<v Speaker 1>Is it diverting? Um? And uh and and it probably

0:15:23.600 --> 0:15:26.280
<v Speaker 1>in many of their minds, Tom Keene and you know,

0:15:26.840 --> 0:15:30.080
<v Speaker 1>is just another image like you know, their kid brother

0:15:30.680 --> 0:15:33.480
<v Speaker 1>uh coming from the other room. And I'm I think

0:15:33.520 --> 0:15:36.880
<v Speaker 1>that's an odd new reality of media that we're in. UM.

0:15:36.960 --> 0:15:39.520
<v Speaker 1>I don't think that their their interest level is diminished

0:15:39.560 --> 0:15:43.600
<v Speaker 1>because it's on Facebook in any fundamental way, not not

0:15:43.600 --> 0:15:47.200
<v Speaker 1>not diminished. But I'm just wondering how much credibility it has. Well,

0:15:47.240 --> 0:15:48.880
<v Speaker 1>I mean, I don't think you're gonna is it gonna

0:15:49.000 --> 0:15:51.600
<v Speaker 1>drive business? I think the question for me is more

0:15:51.720 --> 0:15:55.360
<v Speaker 1>how much credibility does Tom Keane have as a news

0:15:55.400 --> 0:15:58.680
<v Speaker 1>you know, deliverer compared to your brother in the other

0:15:58.760 --> 0:16:01.600
<v Speaker 1>room telling you of that you know the goldfish has done.

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<v Speaker 1>But that comes back to the individual product. My question

0:16:04.040 --> 0:16:06.960
<v Speaker 1>is I understand the international reach of Facebook and all

0:16:06.960 --> 0:16:09.360
<v Speaker 1>that full disclosure pokes. We do ads and we build

0:16:09.400 --> 0:16:13.560
<v Speaker 1>the audience like everybody else on Facebook. Does anybody look

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<v Speaker 1>at the ads? I mean, it's a revenue model, and

0:16:15.760 --> 0:16:17.600
<v Speaker 1>I get I get the idea of all the marginal

0:16:17.640 --> 0:16:21.240
<v Speaker 1>money's going to Facebook, Google, But in three years are

0:16:21.240 --> 0:16:23.320
<v Speaker 1>they're all gonna wake up and go wait, nobody's looking

0:16:23.320 --> 0:16:26.000
<v Speaker 1>at the ads. The ads are working. They're not the

0:16:26.040 --> 0:16:29.040
<v Speaker 1>an storical banners. No. The reason the reason they're working

0:16:29.120 --> 0:16:32.440
<v Speaker 1>is because they're on mobile and they're extremely intrusive and

0:16:32.480 --> 0:16:35.880
<v Speaker 1>they're quite minimal. Uh. If they weren't working, you wouldn't

0:16:35.920 --> 0:16:38.560
<v Speaker 1>see the money. The big sucking sound of ad money

0:16:38.600 --> 0:16:41.800
<v Speaker 1>going into Facebook, which continues. And I think it's really

0:16:41.800 --> 0:16:44.880
<v Speaker 1>effective on video where it is intrusive, but they can

0:16:44.920 --> 0:16:46.880
<v Speaker 1>really put it in your face. And as long as

0:16:46.880 --> 0:16:49.600
<v Speaker 1>they don't make it too annoying, you're gonna be willing

0:16:49.640 --> 0:16:51.920
<v Speaker 1>to tolerant things like you are on YouTube. Do they

0:16:51.960 --> 0:16:54.120
<v Speaker 1>buy Vivo? Do they you know, the music like the

0:16:54.160 --> 0:16:57.200
<v Speaker 1>new MTV? I mean, I I can't get a handle

0:16:57.840 --> 0:17:00.680
<v Speaker 1>on what the strategy is other than more whisbangs that

0:17:00.720 --> 0:17:03.520
<v Speaker 1>make me want to look at Facebook. Last, let's legitiate question.

0:17:03.640 --> 0:17:06.440
<v Speaker 1>I think about what is the strategy. You could argue,

0:17:06.440 --> 0:17:09.159
<v Speaker 1>you know, look at their infesting obsession with the virtual

0:17:09.200 --> 0:17:12.000
<v Speaker 1>reality and exactly it's it's a little bit of a

0:17:12.080 --> 0:17:16.000
<v Speaker 1>distraction if you really think in the short term. Zuckerberg

0:17:16.040 --> 0:17:17.920
<v Speaker 1>does not think in the short term, and that may

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<v Speaker 1>be confusing to people like you, who really say, wait

0:17:20.480 --> 0:17:22.840
<v Speaker 1>a minute, what are they doing right now? He's like

0:17:22.960 --> 0:17:25.719
<v Speaker 1>got a He's like Jack Mak kind of you know,

0:17:26.280 --> 0:17:30.760
<v Speaker 1>hundred year Masayoshi song thinker and and and sometimes it's

0:17:30.800 --> 0:17:33.760
<v Speaker 1>goes overboard. And I think some of the verbiage about

0:17:33.800 --> 0:17:37.400
<v Speaker 1>augmented in virtual reality that they have is distracted. What's

0:17:37.400 --> 0:17:41.000
<v Speaker 1>the best practice from Jeff Bezos for Mark Zuckerberg right now?

0:17:41.040 --> 0:17:44.479
<v Speaker 1>What's Bezos doing? In Bezos hardly ever talks about what

0:17:44.520 --> 0:17:47.800
<v Speaker 1>he's actually doing. Does it? He just doesn't. He does

0:17:47.800 --> 0:17:50.760
<v Speaker 1>it extraordinarily effectively. And you know, the press is like

0:17:50.880 --> 0:17:54.600
<v Speaker 1>blocked out entirely from Amazon, but in Facebook is something

0:17:54.640 --> 0:17:58.000
<v Speaker 1>more of a of a you know, public company in

0:17:58.119 --> 0:18:01.440
<v Speaker 1>every respect, not just in the markets. But because they're

0:18:01.440 --> 0:18:04.119
<v Speaker 1>constantly under scrutiny, they've gotten used to talking about what

0:18:04.160 --> 0:18:07.960
<v Speaker 1>they do rather incessantly. And I think sometimes they one

0:18:08.000 --> 0:18:10.520
<v Speaker 1>good thing is they make a mistake and they pull

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<v Speaker 1>back from it really fast. They do a lot of

0:18:12.600 --> 0:18:14.639
<v Speaker 1>stuff and if it doesn't work, they drop it and

0:18:14.640 --> 0:18:16.240
<v Speaker 1>they go on. They've seen that from them time and

0:18:16.280 --> 0:18:19.760
<v Speaker 1>time again. Um, But but I think that, you know,

0:18:22.440 --> 0:18:25.399
<v Speaker 1>it's also confusing. I do think that on the issue

0:18:25.400 --> 0:18:29.119
<v Speaker 1>of privacy, which is increasingly one of their sin you know,

0:18:29.320 --> 0:18:34.439
<v Speaker 1>gigantic challenges, uh as they become such a dominant force

0:18:34.720 --> 0:18:38.840
<v Speaker 1>in society, and not so much among kids, but among

0:18:38.880 --> 0:18:42.760
<v Speaker 1>older people that they have all of our information, they

0:18:42.760 --> 0:18:45.000
<v Speaker 1>don't really tell us how they use it, even though

0:18:45.040 --> 0:18:47.439
<v Speaker 1>they say they don't sell it to an advertiser with

0:18:47.480 --> 0:18:50.560
<v Speaker 1>their name on it. But in Europe right now it

0:18:50.720 --> 0:18:54.520
<v Speaker 1>is a big problem. Are you using Facebook less? All?

0:18:54.600 --> 0:18:57.200
<v Speaker 1>In at the McKee house, I can't use it less.

0:18:57.400 --> 0:19:01.720
<v Speaker 1>None of us subscribe because you're David. Effect is I'm

0:19:01.760 --> 0:19:05.760
<v Speaker 1>seeing less usage Facebook is they try to manipulate my

0:19:05.840 --> 0:19:08.240
<v Speaker 1>income and I I don't sign up because of what

0:19:08.280 --> 0:19:11.520
<v Speaker 1>you were just talking about. I mean, basically, this is

0:19:11.560 --> 0:19:16.199
<v Speaker 1>an opportunity for Zuckerberg and Sendberg to sell me my

0:19:16.359 --> 0:19:19.199
<v Speaker 1>data to other people. But I mean what's interesting is

0:19:19.560 --> 0:19:22.720
<v Speaker 1>how little daverage person seems to care. They don't care.

0:19:22.800 --> 0:19:25.080
<v Speaker 1>And I think you're extremely and so why did you

0:19:25.320 --> 0:19:27.960
<v Speaker 1>worry about it? Why why did Tim Cook worries so much?

0:19:27.960 --> 0:19:30.880
<v Speaker 1>Because that struck me the whole debate. But I mean,

0:19:31.240 --> 0:19:34.040
<v Speaker 1>if you if if I'm little, if people are willing

0:19:34.040 --> 0:19:37.200
<v Speaker 1>to give all their information out, well, you know Facebook

0:19:37.240 --> 0:19:40.919
<v Speaker 1>just turned on encryption in in WhatsApp, you know, for

0:19:40.960 --> 0:19:43.320
<v Speaker 1>a billion people to go in the same direction Tim

0:19:43.320 --> 0:19:46.359
<v Speaker 1>Cook is going. You know, at Facebook, they also agree

0:19:46.400 --> 0:19:48.440
<v Speaker 1>that the government should not have the right to get

0:19:48.440 --> 0:19:51.680
<v Speaker 1>a peek. We're running out of time. David Kirkpatrick will

0:19:51.680 --> 0:19:56.439
<v Speaker 1>get you back for a full hour here, like David Patrick,

0:19:57.080 --> 0:20:01.440
<v Speaker 1>Facebook at the bottom. Unfortunately what Time Warner at the top.

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