WEBVTT - Bloomberg Markets: Snap Fallout, Lyft Parking Parable

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<v Speaker 1>Globile Business News twenty four hours a day, cast Bloomberg

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<v Speaker 1>dot Com. The radio blows mobile lamp and on your radio.

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<v Speaker 1>He's a Bloomberg business plan from Bloomberg World Headquarters. I'm

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<v Speaker 1>Charlie Pellett's stocks have halted a three days slide. Volatility

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<v Speaker 1>is easing. The Dow, the SMP, NEZDAK. They are all advancing.

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<v Speaker 1>SMP up eight now to twenty four or forty six,

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<v Speaker 1>that is a gain of three tenths of one percent. Down.

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<v Speaker 1>Industrial is up fifty three to twenty one thousand, eight

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<v Speaker 1>hundred ninety seven, up two tenths of one percent, and

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<v Speaker 1>stack up forty eight up by eight tenths of one percent.

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<v Speaker 1>Ten you're up one thirty second. The yield there two

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<v Speaker 1>point one nine percent. Cold up three ninety beans to

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<v Speaker 1>twelve ninety, up three tenths of one percent. West Texas

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<v Speaker 1>ENEMYEDIAC crued up twenty five cents of barrel to eighty four,

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<v Speaker 1>a game ere of five tenths of one percent. I'm

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<v Speaker 1>Charlie Pelloton. That's a Bloomberg business flash. Thank you for much,

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<v Speaker 1>Charlie Pellet. You are listening to Bloomberg Markets on Bloomberg Radio.

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<v Speaker 1>Influence snapchats in trouble. You might think that big the

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<v Speaker 1>stock price. Stock prices down big time today, big time

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<v Speaker 1>from its high trades of the i fo it got

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<v Speaker 1>up up over the second to the IDEO it got

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<v Speaker 1>up over twenty dollars a share, look shares a Snap

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<v Speaker 1>today stocks trading at twelve dollars and twelve cents, down

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<v Speaker 1>twelve percent for the day. All those unlucky twelve gere

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<v Speaker 1>tender we're all bloom were intelligence global Internet analysts, and

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<v Speaker 1>there tender. Flying hot dogs aren't enough for these guys.

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<v Speaker 1>Dancing hot dogs, I should say dancing hot dogs. Well,

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<v Speaker 1>basically they're not growing users as fast as expected. Same

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<v Speaker 1>thing with sales and this quota particularly, they had the

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<v Speaker 1>increasing revenue coming from the self self platform, which is

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<v Speaker 1>great for long term revenue scaling, but it hammers pricing.

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<v Speaker 1>So basically, you know, the business revenues and the expectations

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<v Speaker 1>for a second half because of that is going to

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<v Speaker 1>be muted. Well yeah, so you're talking abou analysts expectations. Yes,

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<v Speaker 1>people like you who cares what you think? No, No,

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<v Speaker 1>I care problem, no, no it seriously, But the problem

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<v Speaker 1>with business is what's even more important to me as

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<v Speaker 1>much as I care about you. Okay, Yeah, like you mentioned,

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<v Speaker 1>you know, the bigger problem here is a mismatch between

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<v Speaker 1>expectations and what stage of monetization the company is right now.

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<v Speaker 1>And those expectations come from valuation. I mean, we saw

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<v Speaker 1>that the valuation was significantly high and it came to

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<v Speaker 1>the market. Even now it's training higher than Facebook um

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<v Speaker 1>on on some multiples if you actually look at you know,

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<v Speaker 1>the fully deluded basis. So with those high evaluation comes

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<v Speaker 1>high expectations and written lack of transparency into exactly when

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<v Speaker 1>some of these monetization avenue is gonna kick in, when

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<v Speaker 1>are they going to accelerate. It just becomes difficult, and

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<v Speaker 1>that's why you see all this volatility. Yeah, and it

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<v Speaker 1>is interesting to see this because you know, one of

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<v Speaker 1>the parts of this is that the business tell me,

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<v Speaker 1>if I'm wrong with this, that the notion was, uh,

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<v Speaker 1>Snapchat has a bunch of users and they spend a

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<v Speaker 1>lot of time on their phones on on Snapchat, but

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<v Speaker 1>they're not seeing a lot of ads now, so like

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<v Speaker 1>it just throws some ads in front of people that

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<v Speaker 1>are already there and and the little a lot more revenue, yes,

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<v Speaker 1>but how they're throwing those ads is what's sort of

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<v Speaker 1>changing right now. It's much more automated and it's only

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<v Speaker 1>going to increase. And one of the problems with that

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<v Speaker 1>is or side effects of that, is pricing. Uh So

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<v Speaker 1>until the pricing normalizes, it becomes difficult to gauge like

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<v Speaker 1>if the revenue growth will meet expectations or not. You know,

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<v Speaker 1>one thing that's really working for them though, is the

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<v Speaker 1>TV show pivot that they're doing. They're trying to pitch

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<v Speaker 1>these exclusive millennial focus TV shows with partners. They're getting

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<v Speaker 1>good traction. I think that's uh that's something unique that

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<v Speaker 1>they can double down on. Well, and let's talk a

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<v Speaker 1>little bit more about that. So you know, it sounds

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<v Speaker 1>like what you were saying, is that the typical ad

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<v Speaker 1>campaign for for Pinterest. Well, it might have been had

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<v Speaker 1>a lot a lot of revenue was custom created where

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<v Speaker 1>the the images or whatever the ad was had to

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<v Speaker 1>be custom created for the size of the screen and

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<v Speaker 1>to a certain kind of user, and it wasn't a

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<v Speaker 1>program like if they go to website. Quite often there's

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<v Speaker 1>a similar design between different websites and there's a little

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<v Speaker 1>the web banner on the top and there's a little

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<v Speaker 1>square on the upper right hand corner, and those are

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<v Speaker 1>standard size, so the advertisers can program ads to show

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<v Speaker 1>up where they want. And Pinterest meanwhile has to have

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<v Speaker 1>every ad has to be customers that they're limiting how

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<v Speaker 1>much volume they can accept the ads. Yeah. So interestingly,

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<v Speaker 1>like now basically they're making it easier for advertisers to

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<v Speaker 1>advertise on the platform, so you can log in and

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<v Speaker 1>advertise to Mortel versus. Before it was more salesforce driven model,

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<v Speaker 1>if you may, while they were building these tools. I

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<v Speaker 1>think the bigger question we're here is buil the volume

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<v Speaker 1>of ads can overcome the pricing in the near term,

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<v Speaker 1>because you know, we're seeing that with the sales miss

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<v Speaker 1>that they have in second quarter. Technically they have incremental

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<v Speaker 1>sales coming from this new avenue, but still you missed expectations,

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<v Speaker 1>which you know weren't that high to be honest. So

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<v Speaker 1>having some guidance into like exactly how this trajectory is

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<v Speaker 1>going to move for this year until you have that

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<v Speaker 1>this is this volatility is going to continue. Yeah, it's

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<v Speaker 1>it's interesting too with these guys, what are the issues

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<v Speaker 1>around the Android phones. I didn't understand that as I

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<v Speaker 1>mentioned the conference call saying that they didn't expect the

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<v Speaker 1>issues to go away until two thousand eighteen, and I thought, yes,

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<v Speaker 1>second quarter of two eighteen, And that's that's kind of important.

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<v Speaker 1>That is, like most phones, that is very important. You

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<v Speaker 1>see the growth, the user growth that we're seeing, the

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<v Speaker 1>slowdown and user growth that we're slaying seeing it as Snap.

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<v Speaker 1>You know this is this is not going to change

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<v Speaker 1>anytime soon, really because Instagram and Facebook has a much

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<v Speaker 1>larger president presence outside of the US versus Snap, and

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<v Speaker 1>they're taking all these features and getting great traction there,

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<v Speaker 1>and androids penetration is higher in some of these areas,

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<v Speaker 1>and basically users who are using an androids are facing

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<v Speaker 1>performances shoes in terms of like how free flowing the

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<v Speaker 1>app is versus iOS, and that's what they're they're struggling with.

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<v Speaker 1>It baffles me why it's taking them so long to

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<v Speaker 1>to actually fix those issues. But having those uh, that

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<v Speaker 1>timeline of two q eighteen actually works against the theory

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<v Speaker 1>that user growth could recover well. And although it also

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<v Speaker 1>says to me that what they're doing is actually really hard.

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<v Speaker 1>That I can mock the dancing hot dogs and I'll

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<v Speaker 1>send you a picture of my daughter with the video

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<v Speaker 1>with the dancing hot dogs, My ten year old. She

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<v Speaker 1>loves it. Me. I'll put it on the Instagram, on

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<v Speaker 1>the Twitter. Um, but uh, you know, dancing hot dogs. Actually,

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<v Speaker 1>it looks like it's really hard to do, and you

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<v Speaker 1>can see it in the numbers. You can see the

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<v Speaker 1>the big expenses that they've got. You can see the

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<v Speaker 1>cost for hosting due to the technological problems are having

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<v Speaker 1>the Android. As to me, what they're doing technologically might

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<v Speaker 1>be stupid, but it's really hard. It is it is.

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<v Speaker 1>It is hard. That is true. But you look at

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<v Speaker 1>the pace of innovation of competition to write like how

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<v Speaker 1>quickly they're catching up. In one quarter you almost get

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<v Speaker 1>as much as the audience that Snapchat has by coving

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<v Speaker 1>the features and things like that. So you have copy

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<v Speaker 1>the hot dog or the puppy dog with the top.

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<v Speaker 1>It's so cute. Remember the emoji couch? I ever show

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<v Speaker 1>that video? Yeah? Yeah, so that's so that's the exclusive

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<v Speaker 1>content pitch right. I think you know, that's what could

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<v Speaker 1>differentiate them. They're better off becoming TV for millennials, uh

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<v Speaker 1>than just becoming a full flat social network and being

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<v Speaker 1>identified as you know, direct competition to Facebook. Or um

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<v Speaker 1>or Instagram particularly and things like that's a differentiation on

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<v Speaker 1>that front, and increasing monetization on that front is the

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<v Speaker 1>same in grace here the general Wall I do care

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<v Speaker 1>about you think? Uh mud Wall from Bloomed Intelligence joining

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<v Speaker 1>us from our ninety six supposed todios in San Francisco.

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<v Speaker 1>You're listening Bloomberg Markets on Bloomer Radio snapschairs as I mentioned,

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<v Speaker 1>still at twelve twelve down twelve percent four of the day,

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<v Speaker 1>there's Bloomer Markets. This is Bloomberg broadcasting live to New York,

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<v Speaker 1>Bloomberg Living FO to Washington, d C, Bloomberg to Boston,

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<v Speaker 1>Bloomberg one O six one to San Francisco, Bloomberg nine

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<v Speaker 1>six to the country Sirius XM Cho one nine and

0:08:15.200 --> 0:08:18.280
<v Speaker 1>around the globe of Bloomberg Radio plus app and Bloomberg

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<v Speaker 1>Radio dot Com. This is Bloomberg Markets, indeed Bloomberg Markets.

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<v Speaker 1>Corey Johnson here, I can't give any Carol Master today

0:08:25.120 --> 0:08:27.880
<v Speaker 1>she's off. But you know, we tell you what time

0:08:27.920 --> 0:08:29.680
<v Speaker 1>it is, we tell you what the weather is, we

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<v Speaker 1>tell you what the traffic is. But where to park.

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<v Speaker 1>The fascinating story about the parable of parking, presented by

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<v Speaker 1>Lift the first, some business news headlines. Charlie, tell it

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<v Speaker 1>and we'll tell you what's going on with oil right now,

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<v Speaker 1>let us get the numbers that the close of floor

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<v Speaker 1>trading on that i'm x brought to you by U

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<v Speaker 1>s c F invest in. What's real Visit usc F

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<v Speaker 1>Investments dot com. That's U s c F Investments dot com.

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<v Speaker 1>West Texas Eni Media Crude up four tenths of one

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<v Speaker 1>percent of A, eighteen cents of arrel forty eight seventy

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<v Speaker 1>six on W E, T I, U S. Equities higher

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<v Speaker 1>across the board, stocks halting a three days slide. Volatility

0:09:10.160 --> 0:09:14.000
<v Speaker 1>is easing, Treasuries slipping as markets begin to stabilize After

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<v Speaker 1>a week of verbal sparring between the United States and

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<v Speaker 1>North Korea. The dollar fell after American inflation remains subdued.

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<v Speaker 1>Jim Paulson is chief investment strategist at luth Old Wheeden

0:09:25.160 --> 0:09:28.760
<v Speaker 1>Capital Management. He says, consumers are doing well right now.

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<v Speaker 1>There could be you know, a couple of rough months here,

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<v Speaker 1>who knows. Um, I think we might end the year higher,

0:09:34.520 --> 0:09:36.959
<v Speaker 1>and uh, I think that's more important to keep keep

0:09:37.000 --> 0:09:38.760
<v Speaker 1>focused on. And right now we do have the S

0:09:38.800 --> 0:09:40.719
<v Speaker 1>and P up six at twenty four or forty four,

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<v Speaker 1>a gain there of three tenths of one percent, as

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<v Speaker 1>stack up forty three, up seven tenths of one percent,

0:09:46.920 --> 0:09:50.400
<v Speaker 1>and the Dow Jones Industrial average up thirty seven points,

0:09:50.400 --> 0:09:53.200
<v Speaker 1>again there of two tenths of one percent. Some big

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<v Speaker 1>investors have been warning now would be a good time

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<v Speaker 1>to reduce levels of risk in portfolios. Ray Dalio, who

0:09:59.200 --> 0:10:02.559
<v Speaker 1>leads the world's Are Just Hedge fund at Bridgewater Associates,

0:10:02.840 --> 0:10:06.560
<v Speaker 1>recommends investors consider placing five to ten percent of their

0:10:06.559 --> 0:10:10.120
<v Speaker 1>assets in gold as a hedge against current political and

0:10:10.440 --> 0:10:13.160
<v Speaker 1>economic risks. Right now, we've got gold up three tenths

0:10:13.200 --> 0:10:15.720
<v Speaker 1>of one percent to twelve ninety the ounce are by

0:10:15.760 --> 0:10:20.040
<v Speaker 1>four dollars and twenty cents. J C. Petty reported earnings

0:10:20.120 --> 0:10:23.880
<v Speaker 1>this morning, shares plunging now by sixteen point eight percent.

0:10:24.240 --> 0:10:27.760
<v Speaker 1>I'm Charlie Pellett, and that's a Bloomberg business flash. Thank

0:10:27.760 --> 0:10:29.640
<v Speaker 1>you very much, Charlie Pelly listening to Boomer Markets on

0:10:29.640 --> 0:10:40.640
<v Speaker 1>Bloomberg Radio. Parking for parking to dance for what about

0:10:40.640 --> 0:10:44.160
<v Speaker 1>parking for a lift? For uber and the like? And

0:10:44.200 --> 0:10:45.720
<v Speaker 1>what does it mean? What is the what are the

0:10:45.800 --> 0:10:48.079
<v Speaker 1>lessons to be learned from these companies that consider everything

0:10:48.080 --> 0:10:52.319
<v Speaker 1>that affects their business model. Bloomberg News, Bloomer, I should say.

0:10:52.320 --> 0:10:55.360
<v Speaker 1>Business Week technology writer Joshua Burstein joined us right now

0:10:55.640 --> 0:10:58.800
<v Speaker 1>and uh with this wonderful story in Business Week, the

0:10:59.000 --> 0:11:02.600
<v Speaker 1>peculiar horrable of the lift lot. What is the lift lot?

0:11:03.040 --> 0:11:05.800
<v Speaker 1>So the lift lot is just the parking lot that

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<v Speaker 1>the that lift inherited when they moved into a new

0:11:10.000 --> 0:11:13.480
<v Speaker 1>building in the Mission District, in Mission District in San Francis,

0:11:13.520 --> 0:11:15.760
<v Speaker 1>in San Francisco. Yeah, which is which is which is

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<v Speaker 1>sort of their first real big headquarters as a business

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<v Speaker 1>is getting started. And the Mission District as a peculiar

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<v Speaker 1>part of all parts of San Francisco are peculiar, but

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<v Speaker 1>it is a place, among other things, it's noted for

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<v Speaker 1>its distinct lack of parking. Absolutely, and so they had

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<v Speaker 1>a lot that had fifty three spots in it, and

0:11:32.040 --> 0:11:34.199
<v Speaker 1>this seemed like just such a great boon at first.

0:11:34.280 --> 0:11:36.120
<v Speaker 1>I don't know where their offices are in the mission,

0:11:36.160 --> 0:11:38.560
<v Speaker 1>but fifty three spots in the mission is a ton. Yeah,

0:11:39.480 --> 0:11:40.960
<v Speaker 1>it was. It was a lot, and it was a

0:11:41.000 --> 0:11:43.360
<v Speaker 1>surprise for them. Have a friend whose restaurant was next

0:11:43.360 --> 0:11:45.079
<v Speaker 1>to a funeral home and that was like the it

0:11:45.160 --> 0:11:46.920
<v Speaker 1>was slanted door. One of the one of the great

0:11:46.920 --> 0:11:49.560
<v Speaker 1>restaurants in San Francisco got off the ground in part

0:11:49.640 --> 0:11:52.439
<v Speaker 1>because they had access to the mortuary is parking lot

0:11:52.440 --> 0:11:54.640
<v Speaker 1>around the corner, so people could actually drive into park there,

0:11:54.640 --> 0:11:56.280
<v Speaker 1>and they could charge more money for food because they

0:11:56.280 --> 0:11:58.960
<v Speaker 1>can get a higher income client. Element completely changed the

0:11:59.000 --> 0:12:03.320
<v Speaker 1>trajectory of his right business. That's amazing soft spots, so

0:12:03.400 --> 0:12:08.120
<v Speaker 1>fifty three spots um And what happened was everyone started driving,

0:12:08.880 --> 0:12:12.000
<v Speaker 1>even people who hadn't been driving before decided, well, if

0:12:12.000 --> 0:12:14.559
<v Speaker 1>there's a chance i'll get a spot, then I'll come in.

0:12:14.960 --> 0:12:18.959
<v Speaker 1>And uh. People at the company realized that they wanted

0:12:19.000 --> 0:12:22.360
<v Speaker 1>to try to do something about this. And at first

0:12:22.360 --> 0:12:24.840
<v Speaker 1>they were giving the spots away for free. It was,

0:12:24.920 --> 0:12:27.560
<v Speaker 1>you know, it was a company benefit. And so a

0:12:27.640 --> 0:12:30.920
<v Speaker 1>couple of employees came up with the idea to start

0:12:31.000 --> 0:12:35.439
<v Speaker 1>charging the market rate for parking, the market being whatever

0:12:35.480 --> 0:12:39.120
<v Speaker 1>lift employees would be willing to pay. And the idea

0:12:39.240 --> 0:12:42.160
<v Speaker 1>was that this would discourage people from driving as much.

0:12:42.320 --> 0:12:45.400
<v Speaker 1>And then they take to create an auction within the company.

0:12:45.520 --> 0:12:48.080
<v Speaker 1>Yeah pretty much, And and then the money that they

0:12:48.120 --> 0:12:53.280
<v Speaker 1>made would be used to help fund alternative commuting benefits,

0:12:53.600 --> 0:12:57.800
<v Speaker 1>so you know, lift credits, uh, credits to take the

0:12:57.840 --> 0:13:01.960
<v Speaker 1>bart or so on. What happened, Well, at first people

0:13:02.000 --> 0:13:04.520
<v Speaker 1>were angry. No one likes to lose their free parking,

0:13:05.280 --> 0:13:12.920
<v Speaker 1>and there were some concerns that for instance, yeah, exactly

0:13:12.960 --> 0:13:16.080
<v Speaker 1>and and so Uh. People were concerned that oh if

0:13:16.120 --> 0:13:18.920
<v Speaker 1>I was you know, that only only the highest paid

0:13:18.920 --> 0:13:21.600
<v Speaker 1>employees would be able to afford afford the parking and

0:13:21.640 --> 0:13:24.720
<v Speaker 1>so on. Um. But after a little bit, people really

0:13:24.720 --> 0:13:28.920
<v Speaker 1>warmed up to the idea. It created predictability. Um. People

0:13:29.120 --> 0:13:31.679
<v Speaker 1>who paid for spots knew they would have them, and

0:13:32.200 --> 0:13:34.520
<v Speaker 1>people who didn't pay for spots, you know, we're getting

0:13:34.559 --> 0:13:37.600
<v Speaker 1>something extra on the side. Uh. There was also a

0:13:37.640 --> 0:13:40.880
<v Speaker 1>secondary market that actually arose where people would sell off

0:13:41.640 --> 0:13:44.920
<v Speaker 1>a day's worth of their pump monthly spot if they

0:13:44.920 --> 0:13:48.480
<v Speaker 1>didn't need to drive in the scalping it lift it was.

0:13:48.559 --> 0:13:52.080
<v Speaker 1>There was actually a it wasn't a set formally set price,

0:13:52.240 --> 0:13:55.200
<v Speaker 1>but it was socially unacceptable to charge more than ten

0:13:55.240 --> 0:13:58.640
<v Speaker 1>dollars per day, but it was. But there was literally

0:13:58.720 --> 0:14:01.240
<v Speaker 1>scalping of your You could have a secondary market for

0:14:01.320 --> 0:14:04.080
<v Speaker 1>your parking passy to acquire through a bidding process exactly.

0:14:04.080 --> 0:14:06.160
<v Speaker 1>It was like a stub hub for parking spots, but

0:14:06.200 --> 0:14:08.360
<v Speaker 1>only for LIFT employees. I know a guy in college

0:14:08.360 --> 0:14:12.360
<v Speaker 1>who was it would sell his career as a ticket scalper,

0:14:12.640 --> 0:14:15.079
<v Speaker 1>began his scalping tickets to the the high holidays of his

0:14:15.600 --> 0:14:18.560
<v Speaker 1>synagogue back home. You get that experience that didn't happen

0:14:18.559 --> 0:14:20.720
<v Speaker 1>to LIFT, and so, so what's the status of a hunt?

0:14:21.120 --> 0:14:25.200
<v Speaker 1>So interestingly, UM, the people who started the program got

0:14:25.320 --> 0:14:28.040
<v Speaker 1>very excited and thought everyone will adopt this. It's working

0:14:28.080 --> 0:14:30.600
<v Speaker 1>so well for us UM and they went to other

0:14:30.840 --> 0:14:34.520
<v Speaker 1>tech companies who they knew had bad parking situations, and

0:14:34.560 --> 0:14:37.320
<v Speaker 1>everyone said, yeah, there's no way we're doing that. We're

0:14:37.320 --> 0:14:39.720
<v Speaker 1>not taking away a benefit. No matter what the benefit is,

0:14:40.400 --> 0:14:43.240
<v Speaker 1>people will leave and they'll go, you know, from Facebook

0:14:43.240 --> 0:14:45.440
<v Speaker 1>to Google or whatever. If we take away their parking.

0:14:45.520 --> 0:14:48.280
<v Speaker 1>You mean the Affordable Care Act, the same deal wasn't

0:14:48.280 --> 0:14:50.800
<v Speaker 1>benefit once given does not get carder to take away.

0:14:51.120 --> 0:14:53.440
<v Speaker 1>That's really interesting that also this sort of market approach

0:14:53.680 --> 0:14:55.880
<v Speaker 1>is coming from from Lift, which is seen as the kinder,

0:14:55.920 --> 0:15:00.640
<v Speaker 1>gentler uber. Yeah. Absolutely. The funny thing is that this park,

0:15:00.800 --> 0:15:04.400
<v Speaker 1>this idea to parking is seen um within sort of

0:15:04.440 --> 0:15:08.040
<v Speaker 1>transportation nerds. This is like one of the fantasies to

0:15:08.120 --> 0:15:11.360
<v Speaker 1>be able to charge market rate for parking because right

0:15:11.400 --> 0:15:14.120
<v Speaker 1>now cities generally have a lot of free street parking,

0:15:14.520 --> 0:15:16.800
<v Speaker 1>and there's a thought that this contributes to a lot

0:15:16.840 --> 0:15:19.680
<v Speaker 1>of the traffic problems because everyone just circles looking for

0:15:19.760 --> 0:15:23.760
<v Speaker 1>spots and people aren't really paying what they what it

0:15:23.840 --> 0:15:27.120
<v Speaker 1>should cost them to drive. But maybe, you know, market

0:15:27.160 --> 0:15:30.760
<v Speaker 1>rates for everything isn't the best way to solve It

0:15:30.800 --> 0:15:32.920
<v Speaker 1>does not It does not provide sort of equality from

0:15:32.920 --> 0:15:35.360
<v Speaker 1>our government to all people that really know more benefits

0:15:35.360 --> 0:15:37.360
<v Speaker 1>accrue to the rich when you charge for everything. Yeah,

0:15:37.400 --> 0:15:40.320
<v Speaker 1>and absolutely that's a good point as well. Um, fascinating

0:15:40.360 --> 0:15:43.600
<v Speaker 1>story from left and so. So these employees try to

0:15:43.600 --> 0:15:46.480
<v Speaker 1>create a start they're always parking startups in in technology

0:15:46.480 --> 0:15:48.880
<v Speaker 1>as well. Yeah. So the last um, the last I

0:15:49.000 --> 0:15:51.240
<v Speaker 1>talked to them, both of both of the guys who

0:15:51.320 --> 0:15:54.920
<v Speaker 1>started have left the company. Uh, they're both interested in

0:15:55.080 --> 0:15:58.240
<v Speaker 1>something along these lines, but haven't hit on exactly the

0:15:58.280 --> 0:16:00.760
<v Speaker 1>way that they would do it. So you know, TVD

0:16:01.280 --> 0:16:04.120
<v Speaker 1>start off, watch this space start up to come ever,

0:16:04.200 --> 0:16:07.560
<v Speaker 1>the story of Silicon Valley, great story again. The story

0:16:07.800 --> 0:16:11.040
<v Speaker 1>in Bloomberg business Week, it's called the Parable. The particular

0:16:11.120 --> 0:16:15.080
<v Speaker 1>peculiar parable of the lift Loop. Fantastic stuff. Joshua Brusting,

0:16:15.520 --> 0:16:18.160
<v Speaker 1>the author of this illustrated piece. Even it's like a

0:16:18.200 --> 0:16:21.280
<v Speaker 1>graphic novel in two pages. Um, maybe all of business

0:16:21.280 --> 0:16:22.960
<v Speaker 1>weeks should be a graphic novels some issue. I think

0:16:23.000 --> 0:16:25.120
<v Speaker 1>that's the next plan. Are right? Listen to Bloomer Markets

0:16:25.160 --> 0:16:28.080
<v Speaker 1>on Bloomberg Radio Nathan Hagar Right now he's gonna look

0:16:28.120 --> 0:16:30.320
<v Speaker 1>a world of national news headlines for many nine ones

0:16:30.360 --> 0:16:33.440
<v Speaker 1>studios in Washington, d C. Thanks Scory. First, President Trump

0:16:33.480 --> 0:16:35.800
<v Speaker 1>warned to fire and fury. Now he has tweeted that

0:16:35.880 --> 0:16:40.280
<v Speaker 1>military options are locked and loaded should North Korea act unwisely.

0:16:40.360 --> 0:16:43.720
<v Speaker 1>The rhetoric is ramping up, but Bloomberg National Security Team

0:16:43.800 --> 0:16:46.960
<v Speaker 1>leader Bill Ferries notes the military posture doesn't appear to

0:16:46.960 --> 0:16:49.600
<v Speaker 1>be doing the same. Secretary of Defense James Maddis has

0:16:49.600 --> 0:16:52.160
<v Speaker 1>been on a tour of the West Coast. He visited

0:16:52.400 --> 0:16:57.440
<v Speaker 1>Amazon's headquarters, He's visiting Google today. I would I would

0:16:57.480 --> 0:17:01.600
<v Speaker 1>think that if if US military act and we're more eminent, Uh,

0:17:01.720 --> 0:17:04.119
<v Speaker 1>you'd expect the Secretary of Defense to be jumping on

0:17:04.160 --> 0:17:06.760
<v Speaker 1>a plane and heading back to Washington. So far, that's

0:17:06.760 --> 0:17:08.680
<v Speaker 1>not what we're saying. The President does plan to get

0:17:08.680 --> 0:17:11.560
<v Speaker 1>a briefing today from Secretary of State Rex Tillerson and

0:17:11.800 --> 0:17:16.439
<v Speaker 1>UN Ambassador Nicky Haley about Tillerson's recent trip to Southeast Asia.

0:17:16.800 --> 0:17:19.360
<v Speaker 1>A train crash in Alexandria, Egypt, has left at least

0:17:19.400 --> 0:17:21.800
<v Speaker 1>thirty six people dead more than a hundred others hurt.

0:17:22.160 --> 0:17:24.280
<v Speaker 1>The head of ambulance services in Egypt says the train

0:17:24.320 --> 0:17:26.440
<v Speaker 1>coming from Cairo hit another one that was arriving from

0:17:26.440 --> 0:17:30.200
<v Speaker 1>port said they're still lifting wreckage to save people trapped inside.

0:17:30.240 --> 0:17:34.040
<v Speaker 1>Deadly train crashes are relatively common in Egypt, mainly due

0:17:34.080 --> 0:17:37.760
<v Speaker 1>to decades of poorly maintained equipment and bad management. A

0:17:37.800 --> 0:17:40.800
<v Speaker 1>handful of Democratic lawmakers is renewing it push for an

0:17:40.840 --> 0:17:43.840
<v Speaker 1>investigation into Deutsche banks loans to President Trump and its

0:17:43.920 --> 0:17:47.080
<v Speaker 1>role in helping Russians shift billions of dollars to the West.

0:17:47.440 --> 0:17:50.200
<v Speaker 1>House Financial Services ranking member Maxine Waters has written to

0:17:50.280 --> 0:17:53.639
<v Speaker 1>Chairman Jeb Penzeling, urging him to issue subpoenas to Deutsche.

0:17:53.760 --> 0:17:57.800
<v Speaker 1>This is waters fourth attempt to force an investigation. Checking

0:17:57.840 --> 0:18:00.400
<v Speaker 1>the leaderboard of the PGA Championship and sharp that North

0:18:00.440 --> 0:18:04.120
<v Speaker 1>Carolina Kevin Kissner remains alone at the top eight under

0:18:04.600 --> 0:18:08.399
<v Speaker 1>through two rounds. The one thirty four global news twenty

0:18:08.400 --> 0:18:10.240
<v Speaker 1>four hours a day, powered by more than twenty seven

0:18:10.280 --> 0:18:13.040
<v Speaker 1>hundred journalists and analysts in more than one hundred twenty countries.

0:18:13.040 --> 0:18:14.400
<v Speaker 1>This is Bloomberg