office followed by a joint news conference. abe will spend the weekend with the president at his palm beach resort. nominationte on the of steven mnuchin as treasury secretary is scheduled for monday. senate leaders have agreed to thekly take up and vote on nomination of david shocking, a holdover from the obama administration to serve as secretary of veterans affairs. georgia has been sworn in as health and human services secretary. setting the stage for him to play a leading role in dismantling obamacare. vice president mike pence administered the o's to price hours after he won the senate confirmation. estors gathered outside washington dc school where betsy devos. been promoting charter schools and voucher programs which critics say would hurt public schools. global news 24 hours a day powered by more than 2600

journalists and analysts in more than 120 countries. i'm alisa parenti. this is bloomberg. "bloomberg technology" is next. welcome. i'm caroline hyde. this is "bloomberg technology." welcome to this friday. headline coming up, a trump business tax bump. we look into how investors are weighing the impact of u.s. politics on tech. a tale of two ceo's. while uber's chief is getting vilified, elon musk seems unscathed. we'll explain. from mobilizing against the

travel ban to twitter's lackluster fourth quarter. we will break down the week that was in tech. first to our lead. adding to records for all three of the major indices. appearsthe enthusiasm to be driven by president trump pledge to overhaul business taxes. but, of course, this comes amid a week of legal drama over the president's executive order on immigration, which remains on hold. tech companies largely oppose the travel ban and 100 firms that together in a legal brief voicing their concerns at the start of this week. so, how are investors wayne impact of u.s. politics on tech stocks? joining us is kathy woods from the york and with us in the studio is our editor at large cory johnson. trump says new action today, promises new action regarding immigration. heards the tech -- we

technology has been against this travel ban. 120 companies signing that legal doctrine. -- document. kathy: as we look at the technology sector, we're actually, believe it or not, somewhat encouraged by some of the behind-the-scenes activity. visas arehat h1b going to go up 30% per year. i think that first roundtable that president trump had with technology leaders started to seep in. they are talking about needing a high end talent, and they're going to allocate the h1b visas towards the higher end. so, we think president trump believe it or not is listening to some of what they said. caroline: wow, an optimistic cathie woods. cory: she gave it like a believe it or not. i was really struck by the decision by the ninth district court in san francisco. i happened to be here when

it happened. when i read the decision it was interesting. because one of the things the judges said was that the white house's current interpretation of its own order was different than its original interpretation. was nott, therefore, certain that tomorrow or next week there would be yet another interpretation of this ban on immigration. i think it applies to business. it applies to tax breaks. . it applies to of repatriation of cash it applies to economic stimulus. the 140 character nature of this presidency thus far suggests to thehat the devil is in details. when we try to find out what these policies look like, we don't know. the stock market has reacted as if it will all be positive, no negatives, and that they will be clear. what we have seen so far from this presidency is that there are some negatives. there are always some negatives, some give-and-take. also that maybe things will not be that clear in the interpretation will not declare.

the market does not think so yet, but the market is a little bit of leading indicator as to optimism writer. optimism. to are you thinking the tax limits, the promises we had dangled in front of us this friday could help? cathie: very much so. i think tax reform, the market has been crying out for it. we have not had capital spending growth and many, many years, and i think that is one thing that president trump is going to encourage. i think we are going to see huge productivity growth. i think what is misunderstood his president trump is really focused on the u.s. as an innovator. his first roundtable was a tech roundtable. elon musk was there. second was a manufacturing roundtable. rusk was -- elon musk was there. third was an auto roundtable.

elon musk was not there p right i think he is focused on innovation which is all that ark does. we're very focused on what he is doing there. caroline: he talked about the tesla founder several times. your bullish on tessler and have been in the past. i am sitting at the table with a man who tends not to be. how are you still feeling about tesla as we head into the earnings in a couple of weeks? cathie: we have a longer-term focus, and we just published a "per, a white paper, called mobility as a service -- self driving cars could change everything." our analyst authored it. and it's on our website. we believe that mobility as a service is a huge opportunity. the global mobility market right now is a $10 trillion market and we think between electric vehicles and autonomous taxi networks, that that $10 trillion

market is going to be disruptive severely. we think tesla has its eyes on the autonomous taxi market and we know it is leading the charge in electric cars. cory: why wouldn't you buy ford? it is only four times more expensive. more autonomous vehicles are selling development, we've seen it every year for the last 20. but it seems to me from a valuation standpoint, if tesla is a certain valuation, based on what they might someday do, ford is already doing it. cathie: if i could answer quickly. tesla, we do not believe, is company.uto it is a technology, battery, internet of things company. we don't think you can put it in the same category as ford. ford has to overcome the

internal combustion engine shifting over to electric vehicles. that is one big transition. then october that, they will have to try and phase this networkus taxi which we think we think could create local monopolies or even country monopolies. i think tesla or google would have to lead here. perhaps toyota in japan. we do not know who in your. maybe volkswagen -- we do not know who in europoe. we are very focused on who is leading the charge into this new age of electric vehicles and autonomous taxi networks. caroline: a little bit of a debate on this program. we thank you very much, indeed. in new york.e wood enter editor at large cory johnson. staying with tech company sentiment, expedia posted mixed earnings in the latest report after the bell thursday. sales rose 23% but spending rose as the company hired for people

to work on the integration of residential units home away. they called it the election a president trump, but it had no real effect on the business yet. but it has did with many tech leaders who'd criticized trump 's travel ban. we spoke exclusively to the ceo. on how the company is bracing for impact from the ban. >> i think it is a real risk. at the time of the travel ban, we did see some volatility. we had about 1000 customers who had passports from the seven countries impacted that were really in a state of chaos. to the extent that the brand of the u.s.a. that stands for openness, tolerance, freedom is damaged by these travel bans, it impact our tourism industry and that is something we would be very concerned about. caroline: the expedia cfo speaking to us earlier. now, coming up, rising cloud and content expenses challenging

snap's road to profitability. we will take a closer look -- and both amazon and google on data storage space. this is bloomberg. ♪

caroline: a story we are watching. facebook is promising better transparency in going board and has committed to audits by an media watchdog. the move could appease advertising executives who are growing skeptical of the social networks metrics. facebook admitted recently to mistakes to reporting metrics to partners and advertisers. and will provide more data showing how long users were -- viewed an ad, and how much of it was visible on screen. now snap has a deal to pay amazon at least $1 billion in internet services over the next five years. this in addition to the $2 billion agreement already it has

with google. details of the deal were released in an update to snap's official public offering document which states that sannp could build its own infrastructure but for now splitting it between google and amazon decreases the companies are lines on a single company. joining us is -- an analyst who leads investments and cloud companies. just the man to talk to us about this sort of diversification. you have put out a report. i was digging into it. i'm fascinated to see, really, companies should optimize their cloud -- that is what you're calling for. what snap's doing, optimizing it? the popular emerging conventional wisdom. public cloud is faster, and cheaper than building it yourself we are seeing that across the board. the art becomes optimizing for scale. at their scott -- their cost structure, they are starting to do the manufacturing and that matters.

caroline: so, the diversification going forward at snap. what about some of the companies in your portfolio, the mario eurs.-- the entrepreneur what is the sweet spot? >> this trade-off of growth versus burn. wer the alaska but years have seen the sensitivity to efficient growth. we -- over the last couple of years we have seen the sensitivity to efficient growth. what you see is the best private companies can manage about a 70% efficiency score, meaning if they grow at 100%, they are burning 30%. if they get to scale on the public markets, that trends down to 50%, the famous role of 40 and 30% several years into their public life. caroline: it is amazing how quickly almost the half-life is now of getting to. we saw dropbox announce they had hit $1 billion in terms of average revenue. >> the bar keeps being raise. part of the public cloud

advantage is that you can go straight to product innovation leverage. back end that creates huge collectibility and they also have infinite scale. you have these resources on demand. there are not bottlenecks anymore. it is all about building a product that gets in customers hands. dropbox is the new standard. caroline: we're talking cloud companies you are investing in. you mentioned the bottleneck. there was a bit of a bottleneck when it came to ipo's. >> it was a tough last several years. since thefewest ipo's financial crisis of 2008. we were fortunate to be part of five of those so we had a front row seat, but it was a horrifically slow year where only the very best companies got out.

that has created a backlog now of hundreds of high quality companies. areenxnext 100 private valued at well over $100 billion collectively. that is the -- what we see cued up. caroline: how big is cloud company market cap, if you're looking globally, public-private. >> if you go across the pure play public-private companies, about $300 billion. but 40% of that has been acquired in the last several years. so, the market took a crack last year, pulled back dramatically. 30% down and cloud. that created the window of opportunity, buying opportunity. $60 billion of cloud, m&a activity happened last year, four times the next highest average. blinged in history. if you take them out, it would have been a record hereby 2x. there is this backlog now of great high quality private cloud

company's wedding to go public that will reveal themselves in the coming quarters. caroline: so, 2017 you think will be much bigger than 2016. >> we are going to start a seat in the end of the second quarter to the back half of the year. the app dynamics deal would've been one of the first. cisco had other plans and credit to both of them, that was a fantastic deal. we absolutely believe in the latter half of the second quarter through to september through november, that window, we will see some great companies tap the markets. caroline: we will have to get you back on to talk about when they start coming out of the box. eanwhile, key is staying with us. a story we have been following her president trump says he is considering signing a new executive order on immigration. thi according to ap. the one he has already signed which bars citizens from seven muslim countries remains on hold and held up in the courts. trump told reporters aboard air force one on his way to florida that he is confident he will win

his court battle so that other options including a brand-new executive order are also on the table. we will bring a more on the story as we get details. coming up, now the man that helped create the rumor vacuum is developing a ofrobots - a new line robots. we will take a look inside re-think robotics next. this is bloomberg. ♪

making a $1rd is million bet on autonomous cars been allocated that much over the next five years to its new base in argo a.i. pittsburgh, pennsylvania for the firm was cofounded a few months ago by google car project veteran brian celestin an uber engineered for president trump has made american manufacturing signature issues on the campaign trail and in the white house. president trump: we're going to

create jobs. i said that i will be the greatest jobs producer that god ever created, and i mean that, i really, i'm going to work very hard on that. caroline: but automation could to thatsterisk statement. companies are investing in robotics and software instead of human labor to boost productivity. re-think robotics is looking to find a balance. an industrial robot designed to work alongside people. >> our robots have a lot of sensors, they have vision and four sensors. reporter: rodney brooks, the founder of re-think robotics, is changing the way we think about robots in the workplace. >> actually, it is our first robot, two arms, large. sawyer h learned from. we made it smaller. reporter: with cameras and

sensors, sawyer is a collaborative robot designed to work safely alongside humans. >> we have run out of low-cost labor in the world to do manufacturing. so, it has to be through tools that help workers be more productive. $29,000 a unit, sawyer helps package products or check quality control to the idea started more than a decade ago. doingas in china a lot, the manufacturing for the roomba. reporter: that is the robotic vacuum made by i-robot, a company he cofounded. >> i was sad to see labor was getting shorter and shorter in 2004, 205,05. reporter: re-think robotics has raised $130 million in funding and is using its latest investment to expand globally. >> eruope has become a major market very quickly. as has china. i think there is can -- incredible potential to grow the c-oo-bot market.

reporter: it could go from just over $100 million last year to $3 billion by 2020. >> i am out to make manufacturing more real everywhere. i think manufacturing has been undervalued in silicon valley. it has been about the next app, next social interaction, but we have sort of neglected technology for manufacturing for the last 30 years. while sawyer is designed to work alongside people, there is fear robots will limited jobs. according to mckinsey, about work tasks globally could be automated with currently demonstrated technology but only 5% of jobs can be fully automated. according to an mit professor, the economy now needs to adapt. >> what we need to be looking now is more fundamental restructuring of the economy. as robots and other technologies big online, there are some tectonic changes in a kind of

skills that are needed in the labor force, the types of organizations, the types of regulations are technology is a tool that can be used to create more job losses and many companies are doing that. it can be used to create new jobs. the way we respond is going to make all the difference. >> our manufacturing, worker population is aging. by giving them tools, it lets them stay longer in their jobs. maybe it also attracts younger workers because the jobs become less repetitive, a a little more cognitive, a little more interesting. a revolving door update. as the fallout of an accounting scandal continues at b.t. group. theu.k.-based telecom giant continental europe chief has resigned after spending more than a decade at the company. his departure follows the disclosure of a deeper accounting debacle in italy last month. have openedin milan

a criminal probe into allegations of false accounting and embezzlement. now another tech revolving door, shares of the u.k.'s largest restaurant takeaway have fallen after the company's ceo is stepping down to family members. the chairman john hughes will step into the role of the board searches for a permanent ceo. -- stock more than doubled in value. however food orders slowed amid rising competition for coming up, as the president trump's travel ban continues to be fought out in court, tech leaders have come together to speak out against the present immigration policy. we will discuss where things stand as we wrap up the week in tech. and if you like bloomberg news, check us out on the radio. you can now listen on the uber radio app -- on the bloomberg radio app and in the u.s. on sirius x.m.

this is bloomberg. ♪

[ alarm clock beeping ] weather. ♪ [ laughter ] cartoons. wait for it. [ cat screech ] [ laughter ] ♪ [ screaming ] [ laughter ] make everyday awesome with the power of xfinity x1... hi grandma! and the fastest internet. [ girl screaming ] [ laughter ] >> you are watching "bloomberg technology." let's start with a check of your first word news. president trump and japanese prime minister shinzo abe started two days of talks.

the -- abe called >> the japanese have gained in business and wealth. relationship.n abe in his first meeting with a foreign leader right after he became president. says eu lawmakers are aware u.s. lawmakers expected germany and europe to take on more responsibility. former u.k. prime minister nick clegg says there are similarities between exit and -- xit and the election of donald trump. >> many of the people who

claimed they are the voice of the people are often people from the elite. nigel farage with a whoic-school educated chap spent his time being paid to live it up in strasburg. francois hollande -- fillion 's efforts to get back into the -- frenchace officials say they prevented a terrorist attack after arresting four people including a 16-year-old girl. police raided a home in southern france were they uncovered a makeshift lab with live explosives and bomb making ingredients. police say the teen had pledged loyalty to islamic state and one of the suspects had been planning an attack.

and a u.s.ircraft navy patrol plane had an unsafe encounter in the u.s. china -- south china sea. this is the first known incident to have taken place under the trump administration. pacific command said it took place in international space. the russian runner was also years of theur court of arbitration after footage appeared to show her using a banned substance. local news 24 hours a day powered by over 2600 journalists and analysts in over 120 countries. this is bloomberg. ♪ caroline: this is "bloomberg technology." as we discussed, u.s. stocks ended to an all-time high as

investors reacted from -- two new details from the trump administration on cutting taxes. tech companies continue to shift how they operate. lead thet helped charge against the executive order on immigration. me torrespondents join discuss the top tech stories of the week. >> this legal battle is far from over. we saw donald trump's all caps tweet on twitter. this into the next court and these companies are still going to be very involved in the fight. we saw google taking the lead on negotiation with the lawyers. everyone is going to pay them back when it is all done. caroline: from a financial perspective, how are companies feeling ramifications? we are hearing that tech companies are postponing hiring.

>> we are hearing the companies are getting in touch with people who are abroad and traveling and affected by the seven country ban. they are offering legal advice. that is the first level. it could affect hiring and recruitment and how much do foreigners want to come and work for a u.s. firm. these companies have been built on innovation on the part of immigrants in many cases. immigrants are leading the biggest companies in this country. wholefundamental to the tech ecosystem that we bring in immigrants, that we have people who have the qualifications who are engineers from overseas. caroline: we see technology facing off against.

up, a $7 million splash they will be putting into a arizona-based technology manufacturer. -- intel hadplant been planning and spending on this are many years. interestingly, obama made an announcement about this. this is not the first president to want to benefit with association with manufacturers in the u.s.. intel has plants throughout the u.s. and does employ thousands of people. they will employ 3000 people and they say there will be an added 7000 indirectly as a result of this. the question is, is there new spending? they told us there is no changes to their protections -- their cap x projections.

there is some ability for them to tweak things based on demand. caroline: perhaps a little bit of pr smoke and mirrors there. you saw clearly the reaction to twitter's earnings. twitterlion with the valuation. >> and lots of it was at the expectation that twitter might ride some bump from president trump's use of the platform. that get twitter in the media every day. that has done nothing for their user base. their user base grew 2 million in the quarter. grew 72 million.

the bright spot is there daily active users growth which grew 11%. they do not tell us from what to what. how does that compare to snapchat? we have no idea. they gave earnings projections for the current quarter saying they will be far short of estimates. it is not looking easy for this company to crawl itself out of a hole of slowing user growth and now slowing revenue growth. caroline: there are new headlines crossing the bloomberg. is said to bep considering a new executive order on immigration. the current one is being held up in court. a white house aide said the administration will not take a temporary travel ban hold to the supreme court. looking at the capital letter tweet we got from president trump yesterday seemed he was going to court. >> guarantee this one is going

to go right before the court again. i don't think the court is going to be too fond of having put a hold on this thing and the president coming up with another negative order. vague andclear it was changing and it's grand legal green cardholders. the white house over the course of the weekend said they didn't mean the green card people. appeals courthe in san francisco said which policy is it? is it the interpretation by the white house counsel which it does not seem to us to have the power to supersede what the president said himself. this one might be more clearly written but that does not mean it will protect it from going right back before the court and getting the same sort of protest that people across america engendered.

isoline: whether or not this unnecessarily and unconstitutionally against a was one of the interpretations of it the court did not like. >> they seemed to be unclear on their interpretation. cited it was ok to look back not just at the order but the comments of that led to the order. --candidateump trump saying i'm going to have a muslim ban and saying it over and over again. rudyhe advisor to trump giuliani saying trump asked him to craft a muslim ban. he previously promised he would enact a muslim ban and asked rudy giuliani to come up with a muslim ban.

that could be part of the next court case if there is indeed another order to follow. she actually seemed relatively optimistic that we land in florida -- she said maybe he is listening. it would be significant surprising -- >> she is a much more positive person that i am. i think that shows he is not listening to protesters. it is notable that he is going to try to do another round in court. there is a segment of the white house who really likes of this argument. they preferred that there are protesters out there. they preferred there is a fight. they take on the media and the white house press corps by

saying completely untrue facts and i think some of the people like the battle with the press because they want to say to their core supporters, see, the press is always against us. they want to point out that they ,re fighting against the people so they are getting the fight that they want. caroline: break yourself at the airports. -- brace yourself at the airports. thank you, cory johnson. --ing up, uber we will break down the backlash. and this week on bloomberg television, we bring you our best interviews from this week in tech. including aol cofounder steve k. he discussed some of the other changes we need to see within

the u.s. regardless of any change in policy. tune in the saturday for the best of bloomberg technology. this is bloomberg. ♪

caroline: now while many ceos have joined trump's business advisory council, there is one notable tech send out -- standout. tesla ceo elon musk. biographer with musk ashlee vance to talk about how -- >> it is a strange turn of events. if you look at his personality and where he will fall on the political spectrum, trump is not

the first person you would assume he would be united with. peter thiel has been this big supporter of trump. he sees himself as the voice of reason. someone who can offer a big perspective on things like global warming, manufacturing and he is very opportunistic. he seems to be taking this moment to seize it. caroline: have you see the balancing act he plays on twitter at times trying to castigate the president and trying to back him up? intense getting pushback from his customers. a lot of the tesla customers in particular tend to be liberal and green thinkers trump and -- and trump has so -- shown no interest on that line of

thought. ultimately elon musk is this a logical guy. that is the core of who he is. i don't think it is bs. when he says i want to have a line directly to the president to try to convince him on things like global warming or carbon tax, no, i think he means that sincerely. there will be a cost to pay for that. caroline: in some ways, what he is built with tesla is something donald trump has been talking about -- made in america, u.s. jobs. >> you could not find a better person than elon musk for the things trump has talked about. he built his cars in silicon valley and his rockets in los angeles. he has factories in new york, nevada, texas. he has created 35,000 jobs over the last 10 years and modernize industries that had grown stagnant.

this is exactly the model you want to put. not only can we build things in america but we can do it in expensive cities if you put your mind to it. from that standpoint it is mutually beneficial. tesla and solarcity need a lot of help. they have been underdogs in congress -- the company's they are competing against 10 to the big donors to congressional leaders and now elon musk has a to the president. it gives him an edge. caroline: do you think he is putting money behind his relationship? if he lobbying or looking at tech help -- tax help? he has fun toy just about everybody. because of the nature of his company, particularly spacex,

which does a lot of government business, he has given to democrats and republicans. he is very logical and opportunistic about these things. with stuff like global warming in particular, elon musk has dedicated his whole life to fixing this problem. if he really thinks he can convince trump about some policies to curb global warming, he is going to take advantage of that. caroline: that was bloomberg businessweek. while elon musk is facing minimal backlash from his letter to president trump, there has been another tech titan not so lucky. uber's ceo. uber became a mockery on social media, leading him to quit the presidential advisory board. eric, you have a great story.

uber feels there is a double standard. keepsknocked off and moving and meanwhile uber has delete uber trending on social media. they felt a lot of pain. he ultimately left the advisory panel because of strong user backlash. yesterdayat an event sequoia and benchmark capital were saying this was unfair. to -- you think it was right or wrong for travelers to step away -- for him to step away from a advisory position? hard to claimis

that you want to be a household are aboveet you reproach for your actions. at the end of the day, you have to have a persona and you have to accept the published/. backlash. caroline: this is not the first uber feels outdone by tesla. >> uses are saying tesla does not have to register, why do we? caroline: you were quite an outspoken critic. you are a tesla user. you have the model s and you

felt perhaps safety was not front and center. , but i would qualify that by saying i am a geek at heart. i was speaking about the issues. software glitches were amusing and in some cases annoying but i love the incremental software advances. i love what they are doing and i am a big fan. the safety issues are real. i think they're going through the exact right steps in terms of how they are pushing hardware and software update. i'm a big fan of what they are doing. i was commenting on the user experience throughout. musk writes to .he business advisory council he has built up trust and

support. is clearly ae mission driven ceo and travis has not established the same public persona and history. at the end of the day elon musk will benefit financially, but he is not trying to be an application on everyone's fun -- some. --everyone's phone. people can opt in and out as they choose to. travis is reacting to people deleting the application which is an active move by thousands. caroline: thank you for joining us. up, spotify is adding music from a big artist just in time for the grammys. we will tell you about the royal deal next. this is bloomberg. ♪

caroline: as we wrap up this

edition of "bloomberg technology ." willapp has announced it roll out a two-step verification for all of its users. it will allow users to protect their account with a six digit passcode. it will provide an additional layer of security. arelix followed by disney named as the two biggest acquisition targets for apple. say thatt goes on to while deals are possible, and acquisition is unlikely. why does tesla rank at the top of the list? a recent consumer survey said 20% of the respondents wanted to see apple developed a car. and a royal addition to spotify. the streaming service will include music from prince's

warner bros. catalog. companies representing his rights have been working to get songs like "purple rain" online in time for the grammys. the show will feature a tribute to the late musician. that does it for this edition of "bloomberg technology." next week we will be at goldman sachs technology conference. you do not want to miss our amazing lineup of guest. all episodes are life-threatening on twitter. check us out weekdays 5 p.m. in new york and 2 p.m. in san francisco. that is all for now. this is bloomberg. have a great weekend. ♪

♪ announcer: from our studios in new york city, this is "charlie rose." >> i am filling in for charlie rose. america first has been the guiding egos into the forays of president trump's early days as president. the phrase was first can need in 19 warning by an organization that championed appeasement in the wake of hitler's rise. rump's revival