mark: i am mark crumpton. you are watching "bloomberg west." the supreme court today struck down restrictions on abortion in texas by a 5-3 vote. justices rejected the state position that its 2013 law was needed to protect women's health. opponents argue the regulations were a veiled attempt to make it harder for women to get abortions. s&p global ratings is cutting the u.k.'s from aaa to aa. the agency cited a risk of less protectable policy framework. the s&p said there are constitutional issues arising from the majority of voters in scotland and northern ireland having opted to remain in the e.u. former u.s. secretary of state

madeleine albright say she is not sure the british people understood what they were voting for when they decided to exit the e.u. albright told bloomberg one world leader is happy with the outcome, vladimir putin. >> mr. putin is very pleased with what happened with brexit. this works to his advantage because one of his agenda items has been to cause this reduction within the european union, to make sure it splits apart. mark: albright says nato will continue to be the stabilizer in europe. global news 24 hours a day powered by more than 2600 journalists and analysts in more than 120 countries. i am mark crumpton. "bloomberg west" is next. ♪

emily: i am emily chang and this is "bloomberg west." coming up, the brexit vote and backlash. we will find out what it means for investors. plus, the largest tech ipo of the year shedding its price range off brexit concerns. we will dig into implications ahead. we will hear from megan smith on how the white house is making it easier for to bring their ideas to market. but first to our lead, global markets continue to reel in the aftermath of brexit. u.s. stocks followed europe lower in monday trading. the s&p 500 has wiped out more than $120 billion of value over the last two days. the pound also weaker after hitting a 30-year low at one point monday. s&p stripped the u.k. of its top credit rating. investors are continuing to position themselves for a britain-less european union. i want to focus on what this

means for london's future and what it means for multinational tech companies dependent on the u.k. economy. joining us to discuss, the chief strategy officer. he is a british voter and very happy with the brexit vote. also, the c.e.o. of netskope who works with big tech companies to make sure their cloud policies comply with e.u. and u.k. regulations. why did you vote leave? you are here on business. >> put it this way, i could not vote for a policy that would mean my father, a doctor for comply with e.u. and u.k. regulations. over 40 years in the government health service, would not be elected be in britain. had britain been in europe 40 years ago, he would not be allowed in. if we look at the system today, 80% of migrants come from the

e.u. the rest is a small supply. in the commonwealth, we have an interesting history with refugees. we need the extra supply. britain is like the coolest school in a district. we can have the european system which says we will take everyone from a catchment area and exclude the rest of the populace or we can have what we are hoping for and what many people are hoping for, a system that allows highly skilled talent from all over the world to come to london, which is a cosmopolitan hub. emily: given how markets are reacting, the volatility, uncertainty, do you have any regret now that you have seen the cascading effects? >> let's be honest. anybody who voted to leave knew there would be volatility. we voted for uncertainty instead

of certainty. that is how fed up with work. you had lots of people searching "what is the e.u." in the 26 years of the e.u., they had not done a good job of selling to the british people or member states what the e.u. was. to be honest, it is going to be a short-term rough ride. but ultimately we will become stronger. nobody comes to britain for the good weather and food. they come for our minds and talent and institutions. emily: sanjay, what is the impact for big companies one to be? >> if you look at the tech industry, there is a commonality that will still exist. the average tech company has 700 different vendors. a small percentage based in the u.k. they run their businesses on applications built around the world. the e.u., north america, south

america. that is not going to change. one of the common themes i tell our customers and my own company is business as usual. general data and privacy laws are not changing. if you transact with an e.u. organization, over 50% of the u.k. has exports to the e.u. that is not going to change. you still have to have privacy regulations. we still have to adhere to them. they were formed partly with the u.k. and britain. much of it will stay the same. emily: he retweeted one article saying the u.k. will be less attractive for startups. one of the most important things is to be able to hire easily. he followed up saying that is one argument and the other is relief from overregulation could make the e.u. more attractive for startups. but i could not agree more. in reality, people like marc andreessen are saying i don't

invest in britain. i don't know what he's doing talking about my country. most investment in britain comes from british funds. brexit will force them to redouble their investment into british talent and tech. i can see that being a positive situation. emily: hiring becomes more difficult, there is a stat that one in three u.k. tech workers come from outside the country. if data regulations become more confusing, one extreme scenario discussed is the idea london's tech hub could migrate to berlin. could that happen? >> there's a lot of innate talent in the u.k. we have hired folks born and bred in the u.k. we are staying in the u.k. we also operate in germany and amsterdam.

that is not going to change. one of the things you alluded to is the tech talent coming from other areas outside the e.u. my feeling is there will be a lot of tech talent in the u.k. regardless of where it comes. emily: what do you make of the comparison of the brexit sentiment to donald trump in the united states? and this idea a lot of people did not even admit they were voting for brexit, in the same way there might be some people that do not want to admit they are voting for donald trump. >> one is voting for somebody who is by most accounts a little insane versus a different way of running a country. they are not the same. let's be absolutely clear. but the motivation is on the same path. britons were fundamentally fed up. like the u.s., the top 5% or 10% are getting the wealth. the rest of the country are seeing declines in living standards. people are looking for change and alternatives.

as in the u.s., the political establishment are not living up to it. i hope this is a wake-up call to politicians in europe and the u.k. to say we are not doing what our people want, that is why they have done this. we should listen. emily: it is so fascinating. thank you so much for joining us. obviously something we will continue to talk about the next weeks and months. appreciate you both dropping by. now for a bigger dive into the tech companies likely to feel the brexit, cory johnson is standing by. apple, facebook. these are companies that have huge businesses in europe. how exposed are they as a result of this vote? are they vulnerable? cory: i think exposure and vulnerability are two different things. when you look at big tech companies, it is not as simple

as just looking for percentage of revenues. nsp is a dutch-based company. the effect on the business based in the netherlands in terms of stock has been significant. the initial analysis wall street was doing on these companies was looking at percentage of revenues in europe, get out of the way if it is a lot. emily: you have been looking at another u.s.-based tech company that has much greater risk given their exposure in the market. tell us about that. cory: when you look at the european tech companies that will face this headache, look to the big companies. surprisingly, the biggest tech companies getting the effect, activision and priceline.

6.3% of revenues. that stock has been taken out to the woodshed as a result of european exposure. the exposure is interesting. it has been the largest piece of growth for priceline over the last five years because europe does not have the same kind of hotel chains we are accustomed to in the states. they had been the beneficiary of creating an experience of all the different disparate hotels in europe. the question fundamentally is not just the change but is that going to affect their businesses. i think you need to do a business analysis. if you look at the growth of revenues this company has had over the last six years, we have seen steady aggressive growth. more slowly but still steady, progressive growth.

a big part of that is the way the technology works and that europeans vacation and continue to spend money. that is unlikely to change with or without a brexit. i think it requires analysis on a company by company basis. i think over time we will see whether this actually affects spending. that is what corporate earnings will be so important in the next two weeks. we will be listening for what executives have to say about the change in their business on conference calls in the coming weeks. emily: priceline the one to watch. cory johnson, thanks so much. coming up, the european union is clamping down. we will dig into the renewed regulatory battle the e.u. is waging against google. later, how brexit is sitting tech stocks in asia as aftershocks of the vote ripple around the world. ♪

emily: now to our interview with the advertising giant. he has built a powerhouse that employs 194,000 people in 112 countries. david westin and alix steel caught up with the c.o.o. who was outspoken in his support for the u.k. to remain in the e.u. they asked what went wrong with the campaign. take a listen. >> there were three issues. the first was the economy. the second was sovereignty. the third was immigration. force johnson is saying sovereignty was the key issue, not immigration. the governmental "remain campaign" focused almost totally on the economy and left the

question of sovereignty on the table and lastly immigration which is a very emotional issue. the other area they forgot about is this was not a general election. this was a referendum. if you look at some of the vox pop stuff, middle england, the southeast of england voted against it, as did northern island. the concern was mainly about the impact on jobs, health service, education, wage rates, and general social services. that played to the emotional level. >> if you were advising the new prime minister -- >> an american advisor to cameron said, the quote i was given was in for size the economic issues until you think the electorate are sick of hearing about it. maybe that was the problem. >> they got sick of it. if you were advising the new

prime minister, how would you advise them to put this country back together? it is badly divided on an emotional issue. >> it is an extremely difficult situation. i have some sympathy for those who say we should get this article 50 process over as quickly as possible. but it is so technically difficult. i remember talking to somebody before the vote. he came out of the foreign office for it his view, he will take 10 years to renegotiate all the trade agreements with the many nations the u.k. will have to renegotiate with. this is externally complicated. what business want and what i want is the elimination of uncertainty. what has happened since friday is people -- since the announcement of the referendum month ago, people have been reassessing and postponing decisions. you in a world that has been so short term, this just provides another excuse to put off the

evil day and not make decisions about investments, plants, moving people, or employing people. it adds to the great uncertainty. effect on gdp is clear. it will hurt the u.k.'s gdp most, e.u. second, and the world third. >> some are saying what david cameron did by saying i'm not the one struggle with article 50, it will be the next guy. who will want to be the next guy? >> i don't think he deliberately did that. i was interrupted in the middle of an interview to be asked about what i thought of the prime minister's resignation. i was surprised it came so quickly. i was surprised how quickly he decided to do it. i don't think he was setting anybody up for it. what is really interesting is the brexit supporters did not have any detailed plan.

i don't think they had any detailed plan. the reason they wish to delay it is they have to sort through the debris. there is a considerable amount of debris to sort through. and formulate a plan. it seems they are trying to hammer out some plan. from my point of view, although i would like to see a quick decision made and the uncertainty removed, you don't want serious mistakes made by undue haste. it is an extreme the difficult decision. we have the referendum in europe itself. there will be other brexit-type

events. we have seen it talked about in france, denmark, other countries in europe. we have the question of scotland, northern ireland,. there is a lot of stuff to be sorted out. the last thing business wants is this sort of uncertainty. emily: that was sir martin sorrell. staying with the european union, the crackdown on big tech and ipo's. european authorities are reportedly taking steps that could lead to a third antitrust complaint against google over advertising services. they have requested critics allow the evidence to be shared with google. it is typically a precursor to a formal e.u. complaint. it displays promotions alongside web content. it has been a key driver in helping google grow sales. google is still fighting two other e.u. investigations, one on it shopping service and one on its android operating service. catalyst is contacting companies about buying a stake in lyft.

one person familiar with the matter says it is unclear if it is looking to sell or raise new funds. next, the mood is changing in the world of cyber startups. is consolidation ahead? we will discuss. ♪

emily: is the party over for cybersecurity? it has been one of the hottest sectors for investors rising from $1.1 billion in 2011 to $3.8 billion in 2015. more recently, we have seen reports say intel is looking for a buyer. shira ovide joining us from new york. news floating around fireeye is fielding takeover offers. how is that impacted by brexit? >> good question.

you saw martin sorrell talk about how uncertainty is the enemy of decision-making. there has been a little bit of buyers and potential sellers in technology coming to agreement. fires have money and have a willingness to grow and by young companies to grow. the sellers are seeing their share prices rebound a little bit from earlier lows this year. now it is all in tumult with the brexit referendum. emily: there have been mixed feelings about the sector. some bullish on it. somebody said there are too many companies. i recently spoke with a c.e.o. who is never shy about talking about the lack of competition.

take a listen to what he had to say. >> i think there are a lot of companies that don't deserve to exist. i think they are going to shake out. in aggregate, there are going to be some companies, and we hope to be one of them, that will break out and become $30 billion companies in the next few years. the flip side a lot of companies funded today don't have anything worth funding. emily: intel is looking to sell mcafee at the same price they bought it for six years ago. is there a reckoning shaping up? >> for sure. this is a shakeout moment for the cybersecurity industry. on one hand, you have relatively young companies and this is their moment to prove they have technology people want and the business model that can be durable. if not, they are going to have to sell because funding for startup companies is going to

get harder to come by. on the other hand, you have companies like mcafee and symantec that are at this moment with their technology is not relevant anymore for modern cybersecurity threats. so they either have to buy something new and make themselves relevant or they have to milk their companies for cash flow and not growth. emily: talk about the old versus the new guard and how companies are approaching the technology aspect of cybersecurity differently. >> very broadly, the old guard companies like symantec were about keeping the bad guys out. kind of building a wall around corporate digital networks and trying to keep the bad guys from breaching those walls. the newer guard has the philosophy the bad guys will get in no matter what we do. we have too many vulnerabilities, so the trick is

to minimize the damage once they get in and protect the assets that matter. emily: we will have to leave it there. thanks so much. we will talk more about brexit and ipo's. ♪

>> you're watching "bloomberg west." let's begin with a check of your first word news. massachusetts senator elizabeth warren joined hillary clinton on the campaign trail today in cincinnati, ohio. warren offered a harsh critique of clinton's likely presidential challenger. >> donald trump believes poor, sad, little wall street bankers need to be free to defraud anyone they want. hillary clinton believes that we need strong rules to prevent another financial crisis. >> mr. trump took to twitter writing, "crooked hillary is

let's get the latest from the markets. that we go to david. better.ng a lot we're look at loss for the most part. you had buying pick up across some of the markets. of it comes to value after

markets [indiscernible] all coming out to a scheduled meeting to talk about the yen closely.watching a lot stronger language. that is helping get back into evaluations. the bond markets yields continue fall.

>> this is bloomberg west. i'm emily chang. it's a blood bath in the markets as investors try to make sense of britain's vote to exit the e.u. tech stocks not immune. we'll go to new york to break it down. a rollercoaster of a day. break it down for us. >> sure will. earlier of course we were hearing from corey johnson talking about u.s. tech stocks. i want to take you on a little tour of what's happening elsewhere around the world starting over in japan.

of course everyone thinks of technology, thinks of north asia and japan looking at kenan for example it gets about 80% of its sales abroad about 20% of its revenue directly from europe. the company says that for every one yen movement it gets hit by about $38 million when it wants to repatientary at earnings so it's been hurt by about $150 million in terms of profits. the share price has been falling and it's been seeing a loss of about $2.7 billion in terms of market cap. hitachi a similar story. one yen cuts about $50 million there and their share prices lost about $450 million there. also $700 million in terms of loss there. looking over in south korea of course some big names there happening with samsung as well as l.g. interestingly their exposure to the u.k. is not much at all. it's only about 0.7%. you can see right here china accounts for most of its exports. # 4% there. the lion's share. looking a little further down southeast asia makes up about 16%.

then europe the e.u. makes up just about 6% there. so not as much of an impact as one might expect there. but india interestingly does get a huge impact from what's happening with the e.u. pulling out -- u.k. pulling out of the e.u. there. this is india's biggest exporter of software services. a lot of analysts say this is the company that is going to get hit the hardest. in the past two days in fact because of its fall in the equities, it's lost about $4.3 billion. info sis similar there has lost about $1.7 billion and h.c.l. technologies down about 7% but has lost about $20 million. india getting a big hit. japan also getting a big hit. south korea not so much and taiwan just to make sure we cover everything. most of that is also financial shares. >> what about u.k. and european tech stocks in particular? >> interesting. there is one stock to speak of

that is actually going the other way. not everything is bad when it comes to brexit. there is a little bright side and that is with a.r.m. holdings. you can see in the past week up by nearly 2%. actually gained about $350 million on its market cap. in just the past two days since+

>> they snuck out right before we saw this vote and now the stock is up, you know, nearly 80% since its ipo. it is up quite a bit. for them there was some head scratching. why are they deciding to list then? hindsight is 20/20. you look back and you see they have the d.c. backed tech deal tech ipo in the u.s. this year. they have a business that, you know, investors can see a path to profitability. that is a point that is increasingly important in the past nine months or so. now, look, we're half way through the year. what i am hearing from people on the by side and close to the buy side is that people are starting to look at their portfolios and say i need to start showing returns for 2016. that makes some of the new listings which are seen as a little more risky because they're new stocks more attractive. so for the deals that do go out if the companies can show strong fundamentals then it seems like they've been doing okay. there just aren't as many companies ready to ipo so folks are free to kind of hit the volatile markets here in the u.s. >> we'll end here. listen to what mark told us at the bloomberg tech conference about how they're coaching their company to be ipo ready. take a listen. >> it's harder to go public and i mean it is just observationally, the number of public companies in the u.s. continues to fall.

on the other hand i think we believe that the pendulum has probably swung too far against going public and in fact that is where we are with our companies. we have actually created a team inside our firm, a team in our development group focused on literally ipo preparedness. >> so counseling his companies about ipo preparedness. we'll see how many of those companies actually take the plunge especially in this new world order that we're now faced with. our bloomberg news ipo reporter, thanks so much. coming up, leading the white house charge to make entrepreneurship work for everyone. we'll hear from america's chief technology officer, next.

>> last week we smoke to tech

leaders across the tech world who gathered at the global entrepreneurship summit an effort led by president obama to spread startup values across the world. we caught up with the u.s. chief technology officer megan smith and i began by asking about the white house initiative to help founders start their companies in a single day and whether that goal has really -- is really possible. the president's focus on modernizing government can we work with our state and local colleagues, small business administration, to really allow an entrepreneur to sort of come in and set up all the things they need to do to register permits and licenses all of it may not complete in the 24 hours but let's get all the horses in the ring and really help entrepreneurs get rid of this red tape that slows down what results in economic growth and fabulous job generation. >> it's been suggested millennials today think it is easier to start a company than to just get a job. is that okay? >> we definitely need our millennials to start companies. >> it is really hard to start a company. >> it is. that one percent inspiration and

99% perspiration. most of the economic growth in our country comes from small businesses and the start of new things. so veterans when they return from world war ii, 39% of them started businesses. we want to keep that tradition and welcome the millennials to join in as much as they can. sometimes it's the founder himself and the founding team so having people have the entrepreneurial spirit as well as within our greatest companies how we have entrepreneurs from within transforming them and continuing to evolve the products and services that come. >> big tech companies committing to diversity, inclusion intel, air b & b for example coming together. explain how this is more than just talk. >> with the white house summit the president reele pushed on not only entrepreneurship but also exclusivity in tech. we don't want to -- we want everybody in. in the tech area, venture capital for entrepreneurs goes to only 3% women founded and less than 1% african-american founded companies.

we want everybody in so there has been a push and the tech inclusion pledge today is for over 30 companies committing to measure, produce their results as well as work together and collaborate as partners to try to it rate and debug and get more of the work force in advancement into the suite as much as hiring and as well as work to get more people in the pipeline for tech. >> i know this is a really important issue for you. where have you seen the most progress and where do you think you really would like to see more? there is just not enough. >> you can see from different places whether the advancement but also we saw with the united state of women last week the advertising association stepping up to change the imagery we see of women. right now in children's television it's 15-1 boy programmers to girl programmers shown to our kids. with the president's computer initiative we all want -- want all people to have the 21st century coding skills. we want the media to tell kids they don't do this or who doesn't, we want everybody in

and feeling the confidence and to see her -- less objectifying women in ads and changing the power jobs like tech and entrepreneurship, what we're seeing on tv and in shows and also in ads. >> so broad based efforts not just in companies but everywhere. >> yes. >> hard to change culture. >> so much a bias no longer -- it lives in institutional systems we have. media programs as well as training we see that through silicon valley and our companies advancing in best practices and the challenge is to get ve into the game whether they're going to found companies or join these folks or whether they'll do that within their larger companies and their jobs. >> the relationship between washington and silicon valley has been especially strained since the apple-f.b.i. situation. i'm wondering in the last few months have you seen improvement?

>> so much welcome from our colleagues here. i come from this --. the president has been doing an excellent job of bringing united states civil service together with our great colleagues in d.c., it's a great conversation. we see extraordinary commitment from the tech companies to continue to not only support in the fight against counterterrorism work as well as work with entrepreneurs in this way and really help the administration with the agenda the american people really deserve. >> what would hillary clinton's white house mean for silicon valley? what would a trump white house mean for silicon valley? >> we don't really count on the election. the president said it is a successful fourth quarter is our focus and accelerating and handing off an extraordinary, much more modernized government. much more solving problems with this kind of entrepreneurial effort and handing that off well. the president said the other day, what lame duck?

>> and that was the u.s. chief technology officer megan smith. coming up president obama dined with tech leaders including google c.e.r., the lincoln chairman while in san francisco. we'll catch up with another person who made the guest list next.

>> on thursday president obama attended the global entrepreneurship summit in palo alto. stanford university and held a dinner with a group of tech industry leaders including google's c.e.o. and the linked in chair and the stanford university outgoing president. the director of google for entrepreneurs was also on the list but before dining with the president she caught up with our own editor at large who began by asking how does google benefit from working with startups? >> our global effort is bringing together startup communities and really foster ecosystems around the world to help the next generation of start-ups launch and grow and be successful.

>> why? >> google began as a startup in a garage. now about 20 years ago. i think increasingly we think about start-ups not just being born in garages but really born among communities and in shared spaces. so our goal is to really help foster the next generation. >> to the benefit of google how? >> i think the work benefits us in numerous ways, one by investing in the next generation of companies, with more jobs created, companies coming online and launching definitely will benefit google business as well. at the same time benefit users who have more choice of products helping these companies succeed. >> what does the company fundamentally get out of this? >> two things. one entrepreneurship is a huge part of our d.n.a. and it makes sense to give back and invest in the next generation. two we're really focused on the economic impact entrepreneurs have on society. we focus a lot on jobs created, funding raised by the companies and how they contribute to our

economies oaf all. >> it is interesting that here we are in stanford, the heart of silicon valley if there is such a place in silicon valley. but people continue to come from all over the world to look at the infrastructure we have here. but you guys are all over the world looking at different start-ups. what are the keys you try to replicate around the world? >> i think there is a variety of factors that make startup eek -- ecosystems thrive. we are constantly focused on that. one is density, accelerators of entrepreneurs, universities producing great talent. a second factor is access to capital. are there resources and infrastructure to help start-ups once they actually do get off the ground, take it to the next level?

the third thing is culture. so is there a culture that embraces taking risk and failing quickly and it rating and launching and failing and so that is really important. and then i would say regulatory environment is another important factor we think about. is the environment easy for me as an entrepreneur to get started? >> and more specifically nuts and bolts what do you guys do to just foster this? >> sure. there are two things we focus on. one is partnership. we partner with about # 5 organizations that reach about 125 countries. these are physical spaces, accelerators, education groups venture funds helping bring the resources i talked about. groups like startup angels, tech starts. the second part is interacting directly with entrepreneurs and inviting them in. we run six campuses around the world for start-ups. one is in tel aviv, seoul, madrid, warsaw and just opened last week in sao paulo, brazil. >> that's crazy. no wonder you have frequent flyer miles. how many people, how do you allocate funding to these

organizations. >> across the world we have 55 organizations who reach 125 countries but 100,000 entrepreneurs are coming through those programs every year. at our campuses which we have six of we have over a hundred thousand members now. >> how are google resources going? dollars or people? >> we're investing tens of thousands of dollars in the program into communities so through partners and the infrastructure we've set up. >> how many people work on this at google? >> directly dozens of us work on it. really one of the things that i'm fortunate for is the thousands of googlers around the world as we call ourselves are very passionate about this and come out and volunteer their time and mentorship and support. so in total thousands. >> as you measure success what are the metrics? >> two ways. >> or failure. measure both i guess. >> sure. >> i wish you the best. >> thank you. on one hand we measure what is the reach? how many countries are we in? are we directly supporting entrepreneurs? how many start-ups are coming through the program?

on the second side we think about impact. how many -- what is the survival rate of the companies launching, what number of jobs, what type of funding? what is the economic contribution? >> our bloomberg editor at large with mary grove director of google for entrepreneurs at the global entrepreneurship summit. time now to find out who is having the best day ever and today's winner is walt disney's finding dorey. the pixar movie placed first in the box office for the second weekend in a row the sequel to "finding nemo" with dory taking in almost $400 million globally in the 10 days since it's been released. that does it for this edition of "bloomberg west." that is all today from san francisco. ♪

rishaad: brexit continues to unsettle the markets, korea announces new stimulus while japan repeats its readiness to act. rishaad: crude oil is having its biggbiggest loss since february. a 25 year deal to operate the biggest oilfield in qatar.