>> the president said it was in his executive powers. the department of justice is -- ing to turn over before has strengthened shinzo abe. concern is growing trump and abe may clash over whether a weekend contributing to a deficit. >> stocks will rally rallied

entering anstry is era of mega consolidation. a quick look at what is going on market wise. a mixed back in the asian pacific. shanghai moving to the downside. tokyo, let's take a look at that. closinga just about half a percent up. ♪ cory: this is "bloomberg technology."

a disturbance in the force at disney. we will break down the first quarter earnings. twitter crackdown on hate and harassment. and meeting the makers. we are live from the toys 17 makers conference and we have tim armstrong and susan lyne. first, disney shares dipping after hours. the company reporting its first-quarter shares fell short of estimates. revenues shrank 3% year-over-year. they saw $3 billion of profit decline. espn had a lower viewership. it dragged down the result of the cable operations. theme stocks were a bright spot and were 13% higher than one year ago. joining us is paul sweeney, our intelligence director. i just got off of bloomberg radio, and the take was the

numbers weren't terrible but not superstrong. paul: we will call it a mixed bag. i think what disney has set up the street for, fiscal 17 is going to be a tough profit growth quarter. the nba contract at espn, that is a new contract, $600 million inexpensive -- in expenses, that has tough cost comparisons. in the film entertainment business, they are only releasing seven films this year, they typically release about 11. the comparisons in that business difficult, as well. and we have challenges at espn dealing with subscriber losses and the impacts on affiliate revenue and advertising revenue. the company is suggesting, if you look past 2017 into 2018, the cost comparisons will be

easier, they will have 11 films in 2018 including four from marvel, a couple from star wars and three animation films. they're trying to set people up to look at 2018. the stock today is down a couple of percent on mixed numbers, that is suggesting the street is willing to give them the benefit of the doubt for the near term. cory: it seems like it picked up a little bit. is it just about cost? it has been a remarkable story over the last 10 years. was: i think what disappointing this quarter, the company did disappoint a little bit on the revenue line. that really calls into question the number one concern for investors, the cable network business, principally espn. when you start to lose subscribers, you have lower advertising revenue and lower affiliate revenue. on a fixed cost business like espn where you are locked into

long-term contracts, that is not a good profit outlook. investors for disney are sensitive to the top line because a lot of the costs at this company are fixed in nature. cory: disconcerting. are they losing the subscribers because of cord cutting? is that the reason for the loss? that would be really disconcerting. because it seems like a trend and not a one-time thing. paul: they highlighted this trend in 2015. this spooked media stocks in general. we know that cord cutting is occurring, all the cable networks are experiencing a 1%-2% decline in subscribers every year, including espn. it is a fundamental issue all the cable networks have to deal with. do they get some of the subscribers back in the skinny bundles or going direct to the consumer with a service like hbo

now? are they going to get some of those subscribers back? that is uncertain right now, and i think investors are sensitive to the subscriber numbers and revenue numbers. cory: check out what bob iger had to say. >> i've been with this company 43 years and i have been ceo for almost a dozen years and i will do what is in the best interest of the company, which the board will help determine. i'm confident my successor will be chosen on a timely basis and chosen well. if it is in the best interest of the company for me to extend my term, i am open to it. paul: i just jumped off that earnings call myself. i suspect he will stay until the board will find internally or externally who can fill his very

big shoes. the challenge for the company is they do not have a very good succession plan. they had one, they identified two good candidates, but at the 11th hour they were not able to agree. they are in uncharted territory. the good news is that bob iger will stay on. cory: i like him personally. i'm a friend of his wife. he has done an incredible job. the gold standard fare. -- there. i want as you about twitter. one of twitter's issues is and abusiveng tweets and so on. what you think it means for their business? it is good for them to crack down on this in new ways, but from a business standpoint, i wonder what you make of this and does it matter if we look at it as an investment or business? move: i think it is the

they had to take from a business perspective. they are trying to grow their user base, and it is perceived as a somewhat hostile platform and they needed to address that issue. they want to increase their user base. if they increase the user base, you increase advertising, and advertisers want to make sure their messages are being displayed in a hospitable environment. this is something that had to do from a user experience in -- and advertising perspective. and you can make the argument that they had to make this move that to the extent they ever want to sell themselves to another company, say to disney, they need to clean up their act in terms of some of the content on their platform. cory: do we expect revenue impact? might this help them make more money? paul: i don't think the street is buying off on it. this is very much a wait-and-see situation for twitter. the company has tried a number of product enhancements, technology enhancements to make it easier to attract new users. we just have not seen it in the

user numbers. this is a company that is going have to deliver before the street will buy off on it. cory: paul sweeney, thank you very much. coming up, we talk to susan lyne, a venture investor coming live from the makers conference. after this. ♪

cory: this year's makers conference is currently underway in california. caroline hyde is standing by with susan lyne in sunny southern california. maybe not so much. caroline: great to see you.

the sun is peeking out here. i am joined by susan lyne, bgrrently president of b ventures. it is a fund backed by aol. many of our viewers will know her. she was the ceo of a wellspring group and was a tech entrepreneur herself. great to have you here with us. susan: thank you so much. caroline: talk to us about the state of female entrepreneurship. where does it stand? susan: the good news is women are starting companies at an extraordinary rate. we have seen 1400 companies with a female founder since we centers -- ventures 2.5 years ago. obviously that is not all of them.

this is a very fertile arena right now. the problem is that the vc world, the legacy vc world still does not have the network to reach into this female entrepreneur base, and women are still only getting about 10% of the venture capital that goes to startups in this country. we looked at that and said that is an opportunity. if women are the dominant consumers, and there are more and more women coming out not just of engineering schools, but with real vertical expertise, we should be backing the best of these because they understand the end user. caroline: what would be the tipping point for vcs to see talent coming into their own hemisphere? the data already proves that if you are an s&p 500 company, it tends to be female lead. it is outperforming the rest. what is the data not showing for

the typical vc right now? susan: it is less about what the data shows. a lot of companies are in early stages. it can take 5-10 years for a company to show what he can become. -- it can become. but, i think what you're seeing is that there is at least a recognition that they need to open up their partnerships, and several of the most storied vcs, sequoia for example, they just brought in their first female partner. caroline: just now? why did it take so long? susan: it is understandable on a certain level. most of the early startups were selling to large technology companies. they were enterprise plays, and being able to talk to the guys working at those companies was important.

but as the world changes and as technology becomes a part of every company, there is a bigger world out there and bigger opportunities. caroline: a lot of the key startups in silicon valley have been led by immigrants, as well. how are you seeing the trump travel ban coming into play and how is it affecting females as well as immigrants? susan: we only invest in companies that are u.s. based, but there are certainly plenty of founders who have come to this country to go to university, really, and stayed, and they are starting companies now. there is no question that this particular sector, the startup world, technology startups would be impacted dramatically by this ban. caroline: you have spoken a lot throughout the election cycle,

that perhaps there was an echo chamber within social media. do you think social media is becoming accountable? susan: i think everyone, whether they wanted to take responsibility for the outcome of the election or not, i know for a fact that every company really looked hard at what their current policies were, how they could make sure the echo chambers were opened up if that was a problem, and all of them have gone after the fake news problem, as well. i think that there is -- nobody is being cavalier about this. it is a problem everybody recognized, and i think they are doing a pretty good job of trying to find solutions. caroline: we are here at the makers conference, we can hear the music and shouting behind

us, more than 500 women. it is all about leadership and storytelling. it feels optimistic. are you optimistic about the talent pool currently coming subjectsnd the stem being adopted as a talent pool as an investor? susan: i am optimistic about a lot of things. i'm optimistic about this conference. everybody talked about it coming in as the meeting after the march. if you were in d.c. and in any of the number of marches around the country, it was such a spectacular day. it was one of those days that remind you of how much progress has been made and what a unified group women in the united states are, and women around the world right now. the message was very simple, we are not going back, right?

i think what an event like this is great for is it gets people thinking about what that is like in practice. what we need to do going forward to make sure our daughters have even more opportunities, and certainly in this area of entrepreneurship where you can create your own company, that is key. it is an arena that we need more women in. women are natural problem solvers. take any consumer problem out there, and there is a woman, i promise you, who is working on a solution for it. being able to find ways for more women to understand how to use technology in order to solve problems, and then getting more vcs, more investors interested in supporting the next generation of women to do that is great.

caroline: susan lyne talking solutions, and we will be talking with tim armstrong of aol who has been focusing on equal pay and other areas that can be a force for promotion of women. cory: great stuff. thank you very much. shocking news -- carl bass is leaving his company, but he is here to talk to us after the break. this is bloomberg. ♪

cory: autodesk has announced that carl bass is stepping down. there are also some investors on the way out the door. carl bass is joining us. someone thisfrom

morning that you are out. what is up? carl: i have been doing this job for a while, i've been seeing you for the last 14 years. it has been a while and this was in the works for a while. this was a long-term plan. cory: investors have been asking for some changes. you have been in the midst of making big changes. it seems like they finally started to see your plan was working. carl: i think they as well as the rest of the investment community. edit with the exact number is, but if you look at stec performance -- stock performance over the last year, stock is probably up 60%-70%. cory: 44.26%. 12 months. bad, that was ebay. you were right. as carl: help me out a little bit.

i think the activist investments -- investors as well as the rest of the community. they came along at the trough as things were at the worst and the company was vulnerable. i think we have proven out over months that we had a good, solid plan and things are going well. they figured they could move on. i had been planning on leaving, i had decided it wasn't a good time to leave and that stable leadership would be helpful. cory: you got the full one-year return, from february 8 until the end of the day, 95%. a good number. carl: investors are happy. more importantly than the day-to-day returns is that it plan and therm

changes in the business. plan and the changes in the business. the other important thing we have been doing is moving all of our engineering software to the cloud. cory: you've seen companies left by the roadside as they have not made that change. carl: i think whenever you look at a technology platform transition, mainframes to workstations or windows comes or mobile and cloud, that is when companies get left behind. a strength becomes their weakness. i think we moved early and decisively. some people thought we were being rash, investing so much ahead of it, but it has been borne out by the result. cory: you have still seen revenue decline. do you think we're going to be in an atmosphere where we will see it lower across the board because it is being offered a different way? carl: no. we moved from a perpetual license to a subscription business so we now have an annual subscription, which means over the course of 3-4 years, customers pay more but the upfront payment is lower.

that is why the financials look worse in the short term. if you look at the balance sheet the moneyit, you see has moved. cory: it seems to me at least that, maybe because you're right across the street, you offered a lot of new products that really take advantage of things you could do in the cloud that you could not do before that open you to bigger markets. carl: when think about it, the thing to do when you get this opportunity is not to repeat your last act in the new way. don't take the old idea and do it in the new platform, think what can you do that is different than what has been done before? what customer problems can you solve? i think we've done a good job in the world of construction, we have taken things to the jobsite that weren't there, in manufacturing, we have allowed supply chains around the world to collaborate. we have talked about before our move into manufacturing. cory: 3-d printing. carl: yes.

we look at what we could do differently. not what we can do the same way in a new medium. cory: lots of ceos when they say they want to spend more time with their family, not you. carl: i wrote a note to the troops this morning and i said, the first thing that presumes is that your family wants to spend more time with you. i joked that i would spend more time in my studio and working with my robots. cory: more time with your robots, good for you. i know we will see you in the neighborhood. carl: i will see you at the local restaurant. cory: congratulations on a great run. i appreciate you coming by, we know you're busy. coming up, tim armstrong live from the makers conference. this is bloomberg. ♪

saidstralia's minister has he wants a version of the tpp. foraid any plan would be up discussion at a meeting next week in july. -- chile. gainsre were hard-fought in relation to tpp. to let those gains slip through our fingers. that is why i put focus on whether we could have a tpp 12 minus one, less the united

states. chilel have a meeting in in march to kansas the options. >> singapore airlines shares are rising after they had steps after a 30% drop in quarterly profit. down after thet rebranding of tiger air. they have warned that 2017 will be another challenging year. we are a few hours away from india's rate decision. most are betting the r.b.i. will cut the interest rates to 6%. the central bank has been on a reduction streak, that something they will keep the benchmark at 6% until at least 2018. global news 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. this is bloomberg. ♪

>> apologies. let's check on the markets. >> steve, don't go too fast. we are seeing the regional benchmark index trading between gains and losses in the morning session. not clear the direction right now, but for japan it has turned positive. it is up 3/10 of 1%. we're seeing strength in the japanese yen faltering a little bit. the cost is down 7/10 of 1%. we're seeing outflows of the south korean market at around of0 million for the month february. the shanghai composite down 1/10 of 1%. taiwan also not clear on a direction. we saw january rise the most since almost a year there. caution aheadof

of the r.b.i. decision in a few hours. they are expected to cut the rate .5 basis points. -- 25 basis points. we are live in london next. ♪ cory: this is "bloomberg technology." disney earnings, shares are down. there is some weakness in the espn is this, showing falling membership and higher fees paid to the nba. had suggested to investors that fiscal 2017 with -- would see modest earnings growth. themepark profits are up 13% to over $1 billion. ceo bob iger confirmed he will remain with the company beyond his scheduled june 2018 retirement if it is good for the company. back to live coverage from the makers conference in california.

caroline hyde is standing by with aol ceo tim armstrong. caroline: i am indeed. a little bit from his bio. ceo of aol, helped with the acquisition of verizon. he has tech in his back pocket. senior executive of google. even cofounded a newspaper in boston. i want to first of all really hit what you are announcing here at this female leadership conference. you are aiming for 50-50 in terms of female-male executives. how do you do that? ago the started six years as we partnered with makers as a brand. there are 4500 women stories on makers, the largest catalog online of women's leadership stories. we also want to lead as a company in this space. it is clear to us with our

executives and up-and-coming executives, we asked them if there was one thing we could do to send a message as a company? they said, could we get to 50-50 gender diversity at the top of the company, and we made a commitment to it. we announced it on stage about an hour ago, and we are in the process of getting the company reestablished, we are recruiting. by 2020, we want to be 50-50 across the board in our executive team and top management of the company. it is a bold goal but we will figure it out. caroline: and equal pay by 2020. give us the step-by-step approach you need. tim: we diagnosed the issues we have around it, and i think it starts outside the company with a lot of pools where we get talent from.

we need to reconnect our recruiting efforts into bigger pools. in some cases, areas we are not into today. going, let's go faster, we cannot go to the same areas, we are rewiring our recruiting. secondly, at the company, when you come in to interview, we have to represent what you think the company is in the space and what we will be doing. if you are a female executive coming in, part of the interview process should be you meeting with female executives. last is internal development process. if you are diverse talent, if you are a female executive and you want to move your career along in general, we have to put the fundamental steps in place, which we have been doing to do that. our plan over the next 2-3 years is to put investment, just like , we arecrunch deal

going to do a deal around this issue and we announce that today. we are serious about it, just like any start up issue you deal with, we will figure out how to do it and our employees are engaged and excited. caroline: how optimistic are you about the yahoo! deal? tim: the yahoo! brand and talent, i think the brand remains a brand we care about as many people care about around the world. the talent, we have had great experience with them with the integration process. caroline: that is going well? tim: it has been on track. they had the data breaches. where the deal sits right now, we're waiting for information come back from yahoo! on the second breach and to find out if there it are any changes -- caroline: a timeline on that? tim: it is ongoing. i would assume that during q1 we'll have more information. we can sit down with them a

discuss in a coherent way next steps. it is too early to have that discussion. i'm hopeful the deal closes. we have a high appreciation for yahoo! overall, we just want to figure out value changes based on the breaches. caroline: the driver for yahoo! is to bring on more web users. to become the number three player when you're looking at mobile advertising. google dominates the space. can you be the number three player? tim: we bring something unique to the table. google and facebook are gold medal athletes. they have done a very good job and continue to do a good job. the one space we want to be an olympic athlete in is the brand space. the same way google cares about search and facebook cares about social, we care about brand. as you have noticed on social networks with fake news and things like that, and the search ai, brande it is more

has become an important role. we want to have a brand advertising system that really helps find new consumers for customers and pushes them all the way through the conversion funnel. if i said to you simply, facebook's social, google's search and we want to be brand. everything we are doing is around brand and we are really excited about the future of advertising brand for digital, because it has not really been cracked yet and we are one of a few companies that can do that. caroline: makers is one of those key rants. thank you so much, it is wonderful to have you. it is a joy. thank you so much. ceo of aol. cory: good stuff, thank you caroline and tim. coming up, 120 companies have lined up against president trump and san francisco continues to be the epicenter of the fight. this is bloomberg. ♪

cory: facebook expanding paid leave for employees facing hardship. sheryl sandberg spoke about why. >> this is personal for me. i lost my husband suddenly almost two years ago and facebook provided me the flexibility i needed and we are doing even more. cory: it will allow for up to 20 days in the case of an immediate family member's death and 10 for extended family. san francisco has become ground zero for the debate over donald trumps immigration policy. san francisco's ninth circuit

court is deciding its fate. sector from the tech were among the and most first outspoken critics of this executive order. 120 companies signed a legal brief opposing the order. alphabet is organizing the funding for this fight. we're going to talk with mark and greg. mark, i'm going to start with you. google's role is really remarkable. over the weekend, one of the ceos of google, his family fled soviet oppression. he was a refugee. we have google to thank for that. he was at the airport protesting in person and also backing this legally. mark: google has played an outsized role to coordinate funding and is working with a bunch of companies to organize this brief. sergey brin has been a vocal opponent of the immigration order and they had a walkout

protest at the google campus last week that he participated in and spoke at. google is taking a principled stand. cory: it is remarkable to see corporate america involved in politics in such a way. mark: it is not just silicon valley, which is traditionally liberal, but you are seeing the biotech industry, which we did a story on today in bloomberg, they are taking a strong stance against this because the scientists developing some of the drugs that are saving people, many of them are coming from other countries to develop them here. cory: there is a legal battle, as well, it is not just the meta-issue. these are the actual nuts and bolts. greg, let's turn to you. there is going to be a decision of some kind out of the court, perhaps today or perhaps tomorrow. either way, this looks like it might be headed to the supreme court. ago, just a few minutes

the court said they would not have a ruling today, but probably this week. i would think the losing side would go to the supreme court. it might not be a full blown, please hear this case, but it might just be intervene some of -- so the ban can go back into effect temporarily or to stop it temporarily. there is a good chance the supreme court will be involved in the next few days. cory: and it only has eight members. greg: say the administration loses at the ninth circuit, they will go to the supreme court. they will need five of eight justices to agree with them. ultimately, the court probably sometime was in the next few months will take up the issue of the constitutionality of the order and whether the president has power under the immigration laws to do this. there's a good chance we will have a nine justice court for that, but for the time being we just have the eight.

cory: does it matter how the ninth circuit frames their decision? greg: it does. the technical question before them right now is whether to put a hold on the nationwide order that has halted the travel ban. the court does not have to go beyond that, it does not have to say whether the ban is constitutional and in accordance with immigration laws. but it could go there in the course of its ruling. that would be more sweeping and make it more likely the supreme court would feel the need to get involved earlier in the case. cory: it would also give the companies behind this, or during -- joining this fight, more time to draft their support of it. mark: it showing no signs of slowing down. just this morning, more than 200 startup founders and vcs signed an open letter that is becoming a thing to sort of oppose the

immigration. cory: what is an open letter? mark: it essentially means very they're notse actually joining the fight, but they are voicing their opposition together saying this is not something we believe in. cory: it means something. i do think -- is interesting because there is a sense of creating a movement, and the businesses and technology companies in particular are not just making it easy because of the technology platforms like facebook and twitter, but also putting their money where their mouth is. mark: it is interesting to see because some of these companies often have the religion of the platform and want to remain neutral and seem a place for both sides to engage in discord -- discourse, which is been facebook's stand.

now even the executives of facebook taking a very political stance against this immigration order, which has been a key part of donald trump's platform. cory: thank you very much, and greg, as well. let's get more reaction on the travel ban. caroline hyde spoke with a former chief technology officer smith atsmith -- megan the makers conference about the restrictions and what it means for bringing talent to the u.s.. >> we have to keep the pressure on and make sure we can keep great talent on our shores. it is critically important. really, our opportunity is here. it is the artificial intelligence work we do for the president. it is becoming a time of automation. we really need everyone. there is training an extraordinary work happening. minersre's -- 32 coal

just graduated in kentucky. coding is being taught at school. let's get it done. some of the governors are very bipartisan. also continue to welcome the talent. lift all americans and bring everybody in. pay attention in a smart way to how we are doing. security hasmeland tremendous programs where we review those coming in, they are very capable. we need to continue to expand how we do that, not ban people. caroline: they're taking executive orders on visas, and concerns have been raised on how those have been deployed. are they being used in the right way? are there more efficient ways we could be bringing in the top talent? megan: we could be doing more with modernized entrepreneur

visas. you see it in britain and canada. we want to have entrepreneurs creating jobs here. the department of labor, i think we should call it labor and talent, they had a great program fees from million of the visas were used for grant making. albuquerque, they are accelerating veterans and people coming out of prisons and foster care. they're going straight into the tech sector. you see people go from $10 per hour to $60,000 per year in three months. that is a real thing and exciting to see. 70 different regions are growing and making the ecosystem work and training people who had stereotypes. we welcome people in. we have to do that because ai and automation will drive our economic transformation and we need to get ready.

that was caroline hyde and megan smith. on wednesday, catch us at 7:30 in the morning. coming up, a rivalry has turned criminal. this is bloomberg. ♪

cory: the wearables battle is getting interesting, a contentious fight. a fascinating legal battle going --between fitbit and job on jawbone. shares have been down a lot, but they succeeded fantastically in the marketplace. jawbone is suing fitbit. the case is getting weird and criminal.

selena: the case is getting uglier and uglier. it started back in may 2015 when this case started, they said that fitbit have gotten secret information from jawbone. it was thrown out of itc and wbone wents ago,, ja to homeland security to open a criminal grand jury investigation into this that -- and that shows that jawbone is not backing down just because part of the case got thrown out. they are not stopping. cory: let's unpack that a little bit. three employees left jawbone. they went to fitbit. selina: five employees. cory: they go to fitbit. it seems strange to me that they went to the itc. if it is theft of secrets, that seems unusual.

ina: i think quite often they go to the itc. they deal a lot with patent steps. i spoke to some lawyers who said it was unusual they went to the criminal courts. they brought compelling evidence to go through the grand jury process, and the timing is interesting. usually the cases are not made public, and they mentioned it in the filing that just came out. it is jawbone's opposition to fitbit wanting to throw out the trade secrets case. they're saying now, we think they should still be investigated and on top of that, and we have escalated this to criminal status and there has been a grand jury investigation going on for the last five months. fitbit says they are complying and this is completely false and ridiculous and jawbone is in deep financial trouble. this is their way to get some money back. i talked to jawbone and they would not comment. fitbit says, the itc already looked at this and they said

there were no trade secrets theft. were 25,000here digital documents that had to be given back to jawbone. selina: the only ones making money off of this are the lawyers. cory: shocker. selina: if this was a booming industry, they could probably settle their differences and get over it, but because of the market conditions, they are still fighting. jawbone is still deep in this. they are wanting to continue and get a payout. it is really escalated. cory: selina wang, thank you so much. that does it for this edition of "bloomberg technology." remember all of our episodes can be live streamed on twitter at bloombertechtv.

that is it for now. this is bloomberg. ♪

anna: the fight over doldrums travel restrictions rages in court but no ruling yet as the immigration policy hangs in the balance. manus: theresa may promising parliament of vote on the draft agreement. anna: we get numbers from rio tinto and others this hour. we break down all the numbers and speak to the management, later today. welcome