tv Bloomberg Technology Bloomberg July 10, 2017 11:00pm-12:00am EDT
♪ alisa: i am alisa parenti and you are watching "bloomberg technology." donald trump, jr., has turned to twitter to defend himself about his meeting with a russian lawyer. the president's eldest son, who said he was told the attorney had damaging information about "obviouslynton wrote i am the first person on the campaign to take a meeting to hear info about an opponent. went nowhere, but had to listen." a spokesperson said the only inappropriate aspect of the meeting is that details of it were leaked to the media. the senate intelligence committee will meet with trump campaign officials as part of
its investigation into russian meddling in the 2016 presidential election. nbc is reporting interviews begin this week. the committee has closed briefings tomorrow and thursday. president trump is pressuring senate republicans to act on health care of that as support erodes for mitch mcconnell's revised bill. a moderate republican has caused called for a bipartisan approach, which mcconnell admitted last week he might be forced to do. a vote could be held next week. global news 24 hours a day powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. i am alisa parenti. this is bloomberg. "bloomberg technology" is next. ♪ ♪
emily: i am emily chang and this is "bloomberg technology." coming up, a bloomberg scoop, china fortifies its firewall in the latest move to tighten online censorship. we dig deep into the new crackdown. tesla's model 3e production goes into overdrive. and, two-time nba champion and emerging investor andre iguodala one timesover, how the m.v.p. is making a big play for silicon valley. first, to our lead and a bloomberg scoop. china is cracking down on what its citizens can find on the web. the chinese government has ordered the three major telecom carriers to block individual access to virtual private networks by february 1. blocking vpns basically shuts down a major window to the
global internet that helps users bypass restrictions. thousands of websites are currently blocked in china , including the new york times, facebook twitter, and some , google sites, including youtube. peter elstrom is normally based in tokyo, but joins us from new york today. what do we know? >> china has been playing this game of cat and mouse with virtual private networks for many years. where for a while, people used a certain vpn and it works to get access to facebook, twitter, and other websites that are normally blocked, but then the chinese government will crackdown, so what we are seeing a more comprehensive approach where the government is going to the three major telecom companies and asking them to block all vpn services accessing the outside world for individuals. so that is a pretty big step for them to try to tighten up on the censorship around their internet and try to block people from getting outside of china and then access to these websites
that they want to be blocked. emily: i played that same cat and mouse game, having lived in china, you use a vpn for a while and it stops working so you use another. in practice, how is this actually going to be different from the status quo? >> conventional wisdom has been that china is not going to be able to keep this up, that eventually china will have to open its internet. other people will be able to get access and chinese people will be able to get access to websites outside the country. what we are seeing now is a serious tightening of that. as you mention, ex-pats certainly do this all the time to be able to get access to twitter, google, gmail, or google maps. you sort of needed. ex-pats.just as it is other people too. it is other people who want to get access to information blocked on these websites, including "the new york times"
and bloomberg.com. we are seeing a more serious crackdown. president xi jinping has talked about cyber sovereignty and how he wants to maintain control over china's internet. it looks like he is determined to keep that control. that opens up tons of opportunities for chinese companies, because many of the powerful american internet companies are not able to operate in the country. emily: what does it mean for multinational companies that operate in china? they have been operating in this legal gray area as well. they can use vpn's, but only internally. would this new rule affect them? >> it is important to distinguish, this rule, according to what people have told us -- there has not been an official announcement at this point, but that restrictions will be individuals who use vpn's, not the corporate use of the vpns, which can be for many different reasons. in terms of individuals, you will see many individuals in china who have been using services like twitter, facebook, etc. are not going to be able to access the sites, so they will
lose thousands of users on many of these websites, so that is a significant deal. it is not clear what opportunities those companies will have beyond this. emily: what could this mean for the companies that have been blocked all this time? whether it is facebook or twitter, the conversation has been for the last several years, will they ever be unblocked? now this seems to be a massive step in the opposite direction. >> these companies including facebook have been determined to get into china in some way. google was in china and decided to pull out because it did not want to comply with the censorship there. it will put more pressure on them to find new ways around this. i am sure people at facebook and twitter are looking for alternatives. the creativity of people in china to get around this great firewall has been amazing over the years. this is a pretty serious step in tightening this up, but there may be alternative ways they will be able to discover in the
future how to get around the firewall. emily: what would it mean for a company like airbnb, which has hired a china-based c.e.o. to focus on expanding in china , where other companies have tried and failed? >> airbnb runs a different business. it is not really information or a media business. they may not face the same kind of restrictions. the market has been open to western companies to come in in a certain respect. chinese technology companies have been very strong. airbnb is competing with local players that are very powerful. we may see a repeat of the efforts for american companies to compete with alibaba where alibaba ended up winning and taking the market. you have many strong players, so it will be a case-by-case basis. emily: peter elstrom in new york today, thanks so much for that update. in deal news out of china, they
pe struck a deal to allow online merchants that use the payment processing technology to receive money from users of these two massive chinese apps. chat each post about half a billion users and dominate the space in china. we will have more details later in the show. coming up, a bitcoin software battle is brewing that could send shockwaves through the $41 billion market. we will bring you the details next. "bloomberg technology" is live streaming on twitter. check us out at @bloombergtechtv at 5:00 in new york, 2:00 in san francisco. this is bloomberg. ♪
♪ emily: president trump set twitter on fire over the weekend when he proposed a partnership with russia on cybersecurity. the president tweeted, "putin and i discussed forming an impenetrable cybersecurity unit so hacking and many other negative things would be guarded and safe." after considerable backlash, including from his own party, trump went on to tweet he did not think such a thing could happen. the tweets, after trumps meeting with russian president with vladimir putin at the g 20 summit in hamburg, germany after months of controversy over russian meddling in the 2016 u.s. election and the latest revelation that his son donald trump junior met with a russian lawyer in the hopes of receiving information about hillary clinton. now a major battle is brewing in the bitcoin market. after two years of largely behind-the-scenes bickering, rival computer wizards are now poised to adopt two competing software updates at the end of the month. this has raised the possibility
bitcoin will split in two, that would send shockwaves through the $41 billion market. camila russo joins us from new york. bloomberg news has a headline referring to this as a possible civil war in the bitcoin market. could this actually happen? could the currency split in two? >> yeah, it is actually a very real risk. it is one of the major events in the cryptocurrency world this year. everyone should be really watching it because it could mean bitcoin splits in two. there are two rival camps. ers and developers. right now, there seems to be some consensus forming on one of the proposals to have bitcoin scale, but the risk is still there. emily: how did we get here?
>> basically, it is bitcoin's fault we are here. the increasing popularity of bitcoin meant that there is increasing activity, more and more transactions, and that increased fees and transaction times. that has different camps planning on how to help bitcoin scale and lower transaction times and fees. it was initially set to help. so the main camps are the miners and the developers. the miners proposed to increase the block size. on the bitcoin block chain, while the developers wanted to have some of the blockchain functionality separated from the
actual transaction processing. caroline: emily: ok. >> so right now, there was a compromise that was the developers' proposal. that agreed to increase the block size further down the line , which the miners wanted. emily: well, certainly a fascinating story. we will continue to follow it. i know you will keep us updated. camila russo, thanks so much. coming up, the rubber has it the road for tesla's new model 3. the outlook for the automakers latest offering and ambitious production plans, next. at bloombergke us news, you can listen on the bloomberg radio app and in the u.s. on sirius xm. this is bloomberg. ♪
♪ emily: tesla is ramping up production of the model three, this after the first car rolled off the line last week. the automaker already has half $1 billion in deposits for the $35,000 electric car. if tesla achieves elon musk's targets, it will build more battery-powered cars next year than all of the worlds carmakers
combined in 2016. earlier, i spoke with caroline hyde out of london and started by asking about the outlook for tesla filling all the orders. take a listen. caroline: key question. and half a billion means everyone paying about $1000. that is 500,000 people who have lined up for this particular model three. what we do not about this car is the ramp up is enormous. so far, elon musk has his car . that rolled off this weekend. now the ambition is huge. they have to deliver 30 in july for a special party on july 28. then they want to be hitting numbers such as 20,000 cars by december. they want a fourfold increase by next year, notably amount of cars they want to make in 2018 will be more than were made in terms of electric vehicles worldwide by any automaker in 2016. so the key is, can they deliver?
because there is certainly demand there. emily: elon musk has set an aggressive production schedule. is he setting the bar too high? caroline: i think this is why we are seeing a tumbling in the market capitalization. we are seeing queries from analysts as to whether they can achieve the ramp up at this pace. certainly the numbers are rather i watering if you think they will be creating more electric vehicles in 2018 than the entire globe in 2016. interestingly "bloomberg , intelligence" does think tesla can be the winner here with a ramp up in demand for electric vehicles. they managed to jump over g.m. , which currently holds the title as the biggest maker of electric vehicles. they think they can surpass them by 2021, but these are lofty aims. elon musk does set his bar high. he will get them out thick and fast. the fact that we saw market cap erode some $8 billion alone in
the last week. the fact you have competition coming from volvo in europe and volkswagen in germany saying they can take tesla on in the next few years. it really does need to start showing it can make these mass-market vehicles quickly and without reducing quality. emily: on the other hand, he has downplayed some features of the model 3. what do you make of it? caroline: i think it is interesting, and i think that first call is trying to set it apart from the more luxurious rich versions of the model s and x. there has been this worry that perhaps they are plateauing. he did not want people to think the model 3's are as good as these luxurious models. he wants them to realize the model 3 reflects the $35,000 price point. also, he tried to make his life easier. he does not want to see the same problems they had with the model x when that rolled off and you had issues perhaps with
misaligned body panels, the wing doors opening like a bird. all of these things did mean model x did not get the best writeup. they are aware of that, even though now it is the fourth biggest selling s.u.v. in the united states. but they want to make it kind of of simple so they can make themselves reach key targets. emily: we have to talk about demand in china. "bloomberg intelligence" pointed out when hong kong scrapped a tax break on electric cars, new registrations went down to zero. what is happening with that? zero. caroline: unbelievable. we did see a ramp-up prior to the tax credit coming away and we did see therefore orders come thick and fast. this is notable considering china has the biggest demand globally for electric vehicles, . they are well ahead of the united states.
they are even in front of europe , which is another key player when it comes to demand for electric vehicles. the fact that just this one tax break alone meant a complete erosion of demand does say something. , something you say com "bloomberg intelligence" has noted. therefore, it is notable. when you have $7 billion of revenue, about 15% is predicated on china. so it does not bode well for other countries that offer tax breaks. the united states does. many a country, many a geography have these sort of tax incentives. it is worth noting hong kong had been one of the most generous. so whether or not this is a warning signal for other countries as to when they can take away their subsidies or if this is a one-off and we will start to see demand pick up again from hong kong, time will tell.
emily: that was bloomberg's caroline hyde. a stock we continue to watch. snap shares falling below the ipo price to $16.95 apiece just before the new york stock exchange closed monday. this comes as investors continue to question the company's ability to grow as fast as expected and after decline in tech stocks worldwide. how can the company regain value? we are joined now by our bloomberg ipo reporter alex barinka. what is behind the pressure on the stock? >> people are not buying into this story. when snape went out on march 1 and sold it shares, it promised growth. it promised innovative products within its disappearing photo app, but it did not tell investors exactly what it intended to roll out. you have seen incremental moves from them. they bought a company last month to add mapping skills. they minted deals with time warner, who is spending $100 million on ads and for video
production on snap over the next two years, but investors have not been convinced. the thing i continue to go back to is this constant fight between what snap has to offer and what the likes of facebook and instagram have to offer. when you look at the numbers, in and, instagram came out said their stories product, which is similar to snapchat stories hastagram 250 million daily active users. snapchat as a whole has just 166 million daily active users. when you think about where the growth is coming from, if the incremental changes within the app itself are not enough to convince investors, which they haven't been, you have to win on user growth and snap has not been winning the battle there either. emily: what about international growth where snap is seriously lagging? >> they are. a lot of that has to do with the fact that a lot of international smartphone users are on the android platform.
that is a platform snap had trouble with, especially at the end of 2016. they say they are rolling out changes in those areas, but it is another front where they seem to be losing out to the competition. when you are fighting for where to share your videos and now you have the big competitor like facebook and instagram on your heels basically matching snap step for step, investors are not convinced that it warrants a valuation upwards of $20 billion. price ata stock that $17 at its ipo, you would expect it to be valued at more than that, and not just at the close today at just under the $17 price. emily: has it had a chilling effect for other ipo's? >> for the big deals, especially other tech companies that are thinking about going our thinking about their proper -- are thinking about their proper evaluation when they get out the door. weather snap or blue apron which
has fallen below its ipo price, these are two now that if you are a company and management team and approaching the go public point, you are talking very closely with your investors to decide how to price the deal. are we worth as much were valued in the private market? and what do we consider pushing out to the public markets going forward? emily: what are the companies in the pipeline for the second half of this year? >> it is fairly quiet when it comes to the tech pipeline. we saw a lot of that get cleared after a slow year last year. we saw the likes of cloud , some smaller enterprise companies come out the door. i'm hearing from sources it is a lot of small enterprise companies. that is what we will be keeping an eye on for the rest of 2017. emily: alex barinka, thanks so much. coming up, it is prime time. amazon's cargo planes are getting ready. the company's annual day of deals.
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♪ 11:29 in hong kong. i am david ingles. china's number two banks deal steel mill sees profit tripling. china turns out half of the world steel output. it has been the target of dumping complaints. the issue to scrutiny at g-20 talks in germany. >> the philippines with its biggest trade deficit on record,
may, with% in estimates for a 2.6% rise. the left to trade deficit were $2.6 billion. of >> the tpp thought dad could be making a comeback. the 11 remaining countries will meet in japan wednesday to determine what options exist to move the agreement ford without washington. in februarysigned last year after almost eight years of negotiation. president trump abandoned and soon after taking office. >> north american news outlets want collective darkening rights in talks with facebook and google. media alliance wants publishers to coordinate efforts to extract revenue from the pair without violating antitrust restrictions. more book and google took
than 70% of digital advertising last year. global news 24 hours a day powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. ♪ mark: a check on the markets. an out date for stocks, the hang seng rising over 1%, a huge rebound from a seven-week low. kiwi stocks and bonds climbing, but the dollar drawing down to a two week low. .3%, set fores up a second a of gains as begin is softer. 10-year jgb yields close to that 1% level as traders are testing the boj's resolve. n looking steady. aussie shares gaining things to miners and banks.
stocks in manila and the peso rising even as the philippines post the biggest trade deficit on record. the pacers the worst performing currency this year. ♪ -- the peso is the worst performing currency this year. ♪ ♪ emily: this is "bloomberg technology." i am emily chang. amazon is gearing up for its third annual prime day where products will go on sale for 85 million prime members. to get the packages delivered, amazon has its own fleet of planes to help with what is expected to be its biggest sales day ever. earlier today, editor at large cory johnson sat down with david clark, amazon senior vice president of worldwide operations, and asked how we should understand amazon's global fulfillment space. >> right now around the world, we have over 150 million feet of space, hundreds of
thousands of employees, and when a customer places an order, we decide which fulfillment center it will come from. we tried to ship from as close as we can to the customer. we have a vast selection. skews, many of them, there are only one or two. with a today promise in the u.s., if you are in new york and need a product in california, this is how you get it, through one of the cargo planes or one of our partners. >> the talks about lease facilities as a majority, it doesn't make any difference to you guys? >> it doesn't. these as largely custom-designed with our engineering processes and needs for transportation in mind. it is whichever financial vehicle we choose as the best way to move forward with the asset. cory: how many have the fancy paint job? >> we have 24 planes now, heading to 40 in 2018. >> they are all festooned with
amazon? >> i think there are eight right now that do not say amazon. they got in service quickly and we did not put the design on. all of the plane since have it. >> i ask because i wonder what the advantage of that is. >> we get to stand in front of it and it looks really cool. if you have cool toys, you need to put your name on it. cory: i would imagine it helps to promote the brand. >> it does. it is amazing how many people airport.he i find these pictures all the time of the amazon plane on the tarmac. it is cool for customers and employees to see them flying around. >> here we are on air cargo road. the other air cargo companies, you guys are here, and you have options. >> i think if you go to those places, you will see a lot of amazon boxes. we have a great group of partners around the world. i expect that to continue. this is all about both innovating for customers and supplementing available capacity.
again, we have great partners and expect to continue to do so. >> how much of this will be fulfillment center to fulfillment center movement of products? >> what we do is some of this is direct package transport meaning instead of having to go through a hub, we know we have a large volume going from the west coast to east coast. we can fight directly .2 point, take a step out of the process. that allows us to make the cut off much later for customers. on a two-day order, you might have 12 hours. we can go directly from point to point. cory: like being in ohio and needing to get to phoenix. >> maybe you have one particular stylus you need and only one of them we have and it is in new york and needs to come to you in san francisco. we will put that on a plane. instead of having to fight to cincinnati and connect and go to san francisco, we can put it on our plane from the east coast
directly to the san francisco hub and get it to you. you have much longer to order it instead of going just point-to-point. cory: in terms of percentage of domestic capacity, when you get to 40 planes, how much will you be moving? >> we are not specifically stating what our breakdown is by different carriers. we think of it as more on what is customer demand. we start everything with the customer and work backwards. what portion of customer demand is best suited to go through the arcs we create? we work backwards from that. cory: when you have negotiations with the carriers, do you have those discussions like we could use a route that goes from point b to d? >> we have very strategic heart ships with all of our carriers. in order to make the holiday
work and our growth rate work, it is very important we have a great relationship with them. so we partner in almost every aspect of how the operations work with them to ensure it is aligned. cory: the plane business is complicated business, involving leasing. you have been involved in leasing and financing. are there things on the amazon balance sheet that give you advantages here that other companies might not have? >> our focus from the beginning has been about customer experience side of this. it has been all about enabling faster delivery and additional capacity for customers. our approach to structuring the arrangements, as you said, there are a lot of moving parts in the airline business. we found a couple of great atsg.rs in at less and we worked with them to come up
with a great path forward that fits the company needs, works great for them, for the supplier, and provides a fantastic service to customers. cory: is this a typical amazon project that started off with a memo about what if we tried this? throw it against the wall and see if it sticks? >> somebody came to us and pointed out we had not realized that we had this much scale in air. when we looked at it, we realized we could. then it went to what you said. we went out and wrote a six-page working document about what backwards for what a prime air product would look like, what would make it special for customers, what would enable lower prices and faster delivery for customers, and ended up with this. cory: is there a metric on that scale? >> as we continue to grow, that growth provides us options to do new things perhaps we could not do in the past. it could be something like prime now, our one-hour delivery service. we had to reach a certain scale to where logistics and technology enabled the one-hour
service. same thing here. we need enough volume where moving coast-to-coast made both utilization and financial sense to provide this service to customers. cory: one last thing. is the change in amazon's approach to local tax the thing that propelled this, to get physically closer to the customer? >> we have always had the same approach. we follow all applicable laws and continue to spread across the u.s. i don't think anything particular to tax had anything to do with it. this is really all about customers. emily: david clark with our own cory johnson. sticking with amazon, the giant is playing catch-up with best buy on one front. over the last few months, amazon has been assembling what will be a competitor to best buy's geek squad. the new feature allows for gadget experts to offer free
alexa consultations and product installations for a fee inside homes. best buy plunged as much as 8.2%, the biggest intraday decline in more than a year. coming up, he is an nba champion and one of the best connected to silicon valley players around. we are talking to andre iguodala next. this is bloomberg. ♪
generating as much as $1.7 billion in sales. golden state warriors' andre iguodala is a two-time nba champion, former nba finals m.v.p., and an avid tech investor. in his four years with the warriors, he has become one of the most tech savvy and well-connected players in the game. he has built a reputation as a sharp silicon valley investor, got in early on facebook, netflix, and tesla. and has built an admirable vc's, many ofist the c.e.o.'s account for billions sitting courtside at every game. our cory johnson caught up with the superstar and asked if the tech aspect of silicon valley had an effect on him choosing to play for the warriors. take a listen. >> people always ask me how important silicon valley was in my decision to come to the bay. i would say it had a big influence, but the team was
right on the cusp of some success that i don't think anyone else could see. i guess having that tech vision, and like i said before, seeing what lies ahead and trying to read five years down the road kind of came into part as well. knowing the team was right there and i could be that key figure. when you go into a press conference after your signing and say the goal is to win championships, that is kind of a cliché thing to say, but for me, i always try to be honest. sometimes, i am too honest. that was a key factor, knowing that we had opportunities to compete for championships. and we have been to the finals three years in a row. we have three out of the four years been to the finals, and won two of them. i guess the tech disruption thought process has worked out for me in basketball terms. cory: how has silicon valley
affected the way you play ball or the way the team plays? >> like i said, when it comes to investing, you are basically betting on the future and what will happen in the future. when you bet on a company, you want it to triple in size in a certain amount of time. you look at growth projection. you think about financials. that is pretty much what you are betting on. it was the same decision i made when it came to the basketball side of things. cory: indeed. in terms of investing, i think it is an intriguing idea. it is curious to me it is a silicon valley idea. talk about that idea and high how you see that as a silicon valley idea itself. >> it is interesting how tristan walker came up with the idea. being african american, we both know how tough it is to get certain products in the regular pharmacy or convenience store,
the small section of skin care products. you look at the financial side of that and how much the urban community spends on health and skin care products, it is double all the other categories combined. we are underserved. so the idea was basically there. you just put those metrics together. we always talk about analytics. it is everywhere, not just basketball. that is how you come up with this company. that is how you see the growth. that is where the vision comes from. this company, maven as well, you can try to scale those to be global brands. i think both are trending towards that. cory: let me ask you about some of the things you and steph curry are doing with bloomberg. would you trying to do there? who are you trying to school? what do you think you might learn from the experience? >> i think we are trying to
school both sides. we will have some business moguls as well. vc's, someve top business moguls as well. we will have top athletes. we did something similar last year with nba players. we saw the reach nba players have a global scale, being the number one sport globally. i think china has had a huge influence on that as well. i think players' brands and endorsements are changing. you have to change the template that agencies have been doing for so long. it is becoming outdated. you see the players' reach are exceeding some of the companie'' reach. you talk about certain guys having 10 million followers on social networks. you see some companies who do not have half of that. cory: maybe it is not all about the next sneaker deal. >> right. you talk about ownership,
you talk about equity, and you talk about how you scale a player's reach. there is a lot of conversation to be had on both sides. the players can learn from a lot of vcs, tech companies and the companies can learn from the players. you get us all in a room with the top from both sides, and there is so much that can be learned and turned into something that has never been seen before as far as how we maximize the reach of the sides combined. it is kind of like how you talk about analytics and the feel of the game and how to combine those two. it is similar to that. emily: andre iguodala with cory johnson. coming up stripe just inked a , deal with two major players in china. what it means for its ambitious expansion efforts, next. .it out at tv
emily: facebook is slashing the price of its vr headsets for the second time this year. oculus rift will now be priced at $200, a car cry from the introductory price target of $600 a year ago. the move is a sign of continued competition in virtual reality. analysts at super data estimate the oculus rift has sold about 240,000 units through the beginning of february, well behind sales estimates for the fiv tation vr and the htv
model. stripe is betting big on china. the payment enabler unveiled a deal with two of china's biggest payment services. they dominate the market with a combined 90% share. this move gives the start of access to hundreds of millions of chinese customers. joining us to discuss, selina wang from new york. how much new business does this mean for stripe? >> this is a big deal for stripe in setting their global footprint here. wechat and alipay completely dominate the chinese market for mobile payments, have more than 90% of the market. this is a way for stripe to reach consumers that were previously hard to get. most consumers are in one of these wallets and they can access the thousands of businesses that transact through stripe. this is a great deal for stripe because more business for its merchants means more revenue for them since they get revenue by taking a cut of transactions on their platform. emily: stripe has made inroads into china before. what is different now?
>> they had a deal with alipay , but that was a more surface level one. it was just for merchants in the u.s. this expands the total market and deepens stripes partnership with alipay and wechat pay as well. they have made other inroads into asia before. they set up a hub in singapore and japan. they have rolled out in hong kong offering their services to local hong kong businesses. this is part of a much broader asia and emerging-market expansion strategy. emily: what does this mean for ant financial as well as tencent which owns wechat? >> this fits into everything they have been doing. they have been doubling down on their north american strategy. ant financial is in the works to acquire moneygram. it is a money transfer firm
based in the u.s.. . ant financial also recently inked a deal with first data that allows chinese consumers to access millions of small businesses. they're trying to reach the chinese consumer wherever they go, whether online for foreign merchants or off-line traveling abroad. tencent also has a similar strategy wanting to follow the chinese consumer online and off-line. emily: we talked about tencent's global ambitions and whether wechat could be a step in that direction. or no? >> i think this continues along the path of broadening it or the chinese consumer. this is not tencent trying to reach the u.s. consumer. it is tencent trying to make life better and more value for the people already on its platform. ,eople do everything on wechat
booking movie tickets as well as shopping. by getting at players like stripe and all of their merchants on a platform, it makes it more valuable for tencent users to stay in the wechat platform. wechat and alipay have intense competition going on right now in china, so they are both trying to do everything they can to make their platform more valuable. emily: selina wang, thank you is always for joining us. that does it for this edition of "bloomberg technology." our special coverage of the "focus on tech week" continues tuesday. and "bloomberg tech" is live streaming on twitter. check us out at @bloombergtechtv . that is all for now. check us out weekdays. this is bloomberg. ♪