♪ sometimes parents said it will speak earnestly with prosecutors after being summoned for allegations of investments. andecutors wish to arrest -- issue a arrest warrant. stronger global demand for japanese products outweighed sluggish consumption at home. grew 1%. the first time in more than three years the economy has expended for four is a quarters. the tailwind for japanese

exporters. selling a stake to raise over $1 billion. 1% last close.r ccw says it will invested in media and a general corporate purposes. global news 24 hours a day powered by more than 2600 journalists and analysts in more than 120 countries. this is bloomberg. watchinge bloomberg. as thein hong kong longest winning streak in two months. ♪ corey: --

caroline: all of our top interviews from this week in technology. the resistant continues -- resistance continues. ground zero in at the fight against the travel ban. twitter,bump for plunging after the user base remains flat. all the details ahead. intel faces the $7 billion chip. why the presidential bet on arizona, not as fresh as it may seem. the epicenter for the international debate of president jumbled trump is right here in san francisco. the case took on increased business importance, 120 of the biggest companies filed a legal brief condemning it. leaders from the tech sector were among the most outspoken

critics be haps -- lot of theause a technology companies of today would not exist without immigrants. ♪

caroline: cory johnson caught up with the founder of joyous. former advisor to twitter. to look toe's a lot in terms of data historically. even today in silicon valley, 58% of the high skilled workers here are immigrants. step back and look at the liverpool, a source of braggedon, it has been by openness. open immigration allows the

minds to flow freely. cory: moore a 20 b visas will keep the people across the -- visas -- the people that will do good things let's keep them and keep the others out. singh: in practice these are very broad strokes. tore is very little data suggest u.s. terrorism has been affected by the countries whose people are being kept out. cory: the 9/11 terrorists were from saudi arabia -- if you looksingh: at solving terrorism on the one

hand and a broadbrush swap that says immigration has to be stopped from these countries. it is fairly ludicrous to suggest that keeping these countries out will somehow keep america safe. the converse is not true. when you create broad policies that keep innovation and us from accepting the smartest and brightest people in the world, who are willing to come and bring -- lowe's companies here. the u.s. economy will prosper. a large argument in favor area little data -- favor. cory: we want those people to start companies here is not taken back to china and other countries. ironies isof the donald trump talks about being pro-business and making america great again. one of the ways to make the american economy great again is to have great economy started here -- great countries are to hear -- started here.

if you want to have a robust economy it starts with fostering innovation here which starts policycopen immigration o. ry: -- cory: h-1b visa program, some people complained that those people cannot find other jobs because their ability to live in the country is stapled to their id card where they can't pursue employment elsewhere. do you look at that as necessary or needs reform? singh: it is absolutely necessary and i happen to be one of those immigrants who started my company based on the fact that i got here through an h-1b and converted through an extraordinary persons present. that allowed me to leave the company and start my own company. committees large and small, mine is smaller than google and

benefits from h-1b. let's put it this way, it allows you to find a way here. caroline: as an open critic of the trump administration, aol cofounder has voiced his disapproval of trumps dan -- trump's ban. the also discussed changes we need to see and the u.s. regardless of change in policy. trump'sguest: one of the reasons president trump one is a lots of people feel left behind. they are not seeing the benefits of innovation, the benefits of job creation and there is a reason that is the case. last year 85% of the venture capital went to the states that clinton at one. only 15% went to the states that trump one. -- won. california got 15% of the venture capital. they are funding the disruptive companies in silicon valley that are creating new technology to

disrupt jobs in the middle of the country. we are not offsetting that white backing entrepreneurs in the middle of the company so they can create jobs in pennsylvania and ohio. the has to change. watch for newer's in more places so everybody everywhere has a chance at the american dream a. -- dream. caroline: he proposed immigration policy continues to make waves in the u.s. and abroad. our next guest says it would be fantastic news for china. usually based in taipei joins us economyw, david of tech in new york. it is their job to hire the best people around the world no matter where they are from. if they cannot get those people to come in here and work in

cupertino they have to go somewhere else. the visas take a long time. sit inas had people places like japan waiting for visas. they sit there and work and do what they are supposed to do before they can get to cupertino. government. more people from coming in, some point leaders in the u.s. tech companies will say let's put more people overseas where we don't face that problem. one of those places will be china. r&de has already set up a center in china. whencan't really plan for they can get into the u.s. and work full-time. they will say let's put them somewhere else and work there. that is that the u.s. because local hires in places like china and japan will learn from the people who happen employed by u.s. companies. --y will look alongside them worked alongside them and take

them to other companies in china and japan. caroline: build an ecosystem elsewhere. david, are you hearing from the companies, the leaders you are talking to? r&d?ding microsoft are you expecting this to remain abroad? tim is expressing a legitimate set of concerns that many of us had over what can happen to the tech industry if these immigration attitudes continue to get more and more --trictive area restrictive. there's an article in the new york times about how the entire economies growth be dramatically increased if we had more immigration broadly. immigration and migration is generally believed by economy -- economists to be an unmitigated positive for economic growth.

caroline: despite president trump being a big fan, twitter finds itself stuck in neutral. user growth missing. more from thursday's earnings report next. to hear nasa veteran is leaving the agency for silicon valley. nasa veteran is leaving the agency for silicon valley. this is bloomberg.

♪ caroline: twitter is getting tough on harassment. new changes by hiding a piece of content and banning users from creating new accounts. a push to clean up twitter. they follow years of criticism that not enough has been done to curb abuse and harassment. afterer, shares tumble profit outlook misses assessment. it added 2 million monthly active users, this deceleration is causing appetizing sales to say. -- sag. presidentntion over trump's frequent tweets and the lead up to the election, his impact on twitter, they cannot

list on the lack to capitalize on the attention. -- andt: we will analyze it talk to you about the end of the quarter. caroline: we spoke with cory johnson and james for more. they are getting better engagement from those users on their platform. at the end of the day of twitter needs to decide what it is and what it isn't. they are trying to continue this growth story but it is not happening. when you are going through the biggest world events, with donald trump now in the trump administration, utilizing him as tool to the world and still not seeing any improvement in the conversion rate. getting at least 2 million new visitors coming to their site every single day in some capacity. they are not able to convert

those users. the rocky road ahead is just about to get even rockier. caroline: get even rockier, cory, dig into the sea -- key issues here. your own analysis on some of the dilution in shares. cory: in the midst of this, inability to grow users, inability to grow revenue, they are giving a lots of stock options out. a very different business from an income statement point. the stock compensation for this company is at massive levels and you have gone from an buddy with hitter 60 million shares to a 714 million shares. it continues to have massive stock expanse that if it were not for all the stock compensation they would be profitable. is a non-cash expense, they

don't have to spend to get these options. the result is there are so many shares in the market, you see this company, the insiders people areriched as selling businesses to twitter and getting more shares with every knocked down in price. flooding the market with shares even as investors are stuck holding back. caroline: is it something you as an analyst are keeping an io -- eye on? cory: you're seeing them up move kosher toward more of a gap reporting basis. something to scrutinize when you consider the 20% of their expenses are -- revenue are in the form of dust stock -- stock-based compensation. something that doesn't baltimore scrutiny. -- company has an ipo

you expect to see a lot of stock in the initial income statement but it should drop off after the ipo because the shares after the ipo are no longer the expense. these guys are issuing shares. james: you go through the conference call and there seems to be so much confidence that they are reporting and belief that this turnaround in the a daus bring confidence. put your money where your mouth is and by back stock. i believe in it today, i will buy my shares today. we are not seeing that, a lot of rhetoric. the results are not matching. needed to do,ly look in the mirror, what are we and westerly wants to be? answer those questions -- what

do we want to be? answer these questions. caroline: they will have live video in particular. can they minister have that market of profitability by the joys of video? don't -- i am so exhausted from giving the benefit of the doubt to twitter. with video, every incremental dollar of video that you get comes with a higher cost associated with it because -- as they move into more premium categories those costs structures could change from the one that people believed in at the time of the ipo. who else is going after video? youtube, andpchat, twitter with its 319 million users. good luck.

on the 600 hours of video they had in the first quarter, 31 million users -- unique viewers watched that content. on. caroline: we explored dynamic between twitter and the twitter president. what the user numbers are telling us since the election. president donald trump's use of twitter is unprecedented for a world leader considering the audience. account has roughly 24 million followers. compare that to his neighboring leaders, mexican president at 6 million. canadian prime minister justin trudeau with less than 3 million. barack obama's personal account has four times as many followers us trump but half as many tweets. the ideapaigned around of speaking frankly to people and twitter provides the ideal

platform. he tweeted 240 time since inauguration. often directing the news flow in 140 characters or less. sometimes to scare -- share his schedule, discuss foreign affairs, and sometimes none of the above. with all of the added attention that he brought to twitter over the last few months, is the company attracting new users? not according to comscore. they fell 6% in november and 5% again and december. snapchat has 82 million in the same month. facebook, twice that. trumps swap -- spotlight on twitter has not helped. shares are flat since election day and on the days that he tweets something particularly engaging, twitter is not usually rewarded with a bump in the stock price. tweetst popular like --

is this one from sunday, january 22. retweeted over 83,000 times. shares closed nearly flat. -- fighting -- citing usage growth. if twitter the company is not benefiting from president trump, who is? democracy? actually uber is researching floating taxis. the man who literally wrote the book on twitter's flying car -- uber's flying car. the 2017 makers conference and catching up with the aol ceo tim armstrong. this is bloomberg. ♪

♪ caroline: tired of the morning commute? uber may have a solution in the

works. the director of engineering for aviation. the end goal is to develop a flying car. cory johnson sat down with wipro technologies brad stone for more . --with bloomberg technology spread stone for more. guest: it is just cool. a little background, seven years ago a guy named mark moore wrote a paper about the feasibility of this. stanford professor talked to larry page and the sponsor to companies. kitty hawk and the arrow. cory: a noted name in the world of aviation. of course, the right brothers. who percent they wanted to play a role in this ecosystem of flying cars. necessarily build them themselves but they have a role

to play in changing regulations and negotiating with suppliers and creating battery technology. they recently hired mark moore who wrote the paper in 2010. this is very real. silicon valley is working on it. you will be soaring through the air to your job one day. cory: or not. it is interesting that uber is a company that could have been all the clouds. - all cloud. instead they are doing things that they easily could have left to others. one hand all about leverage in the cloud and using computers -- consumers from -- phones on the front end. but no actual cars.

this willy worry happen without them. that google will develop a arrow or acar or the boeing wouldn't develop a flying car and they don't need uber. uber needs to be involved or they are being left behind. on the other hand, you invent the future you want to see. it is the same reason amazon developed alexa and the kindle. realu want to solve problems arrest transportation you have to be involved in advocating for it to -- it. they are sucking up these guys -- the cherry picking of academia. ofst: google got a lot criticism for doing these things and house. a driverless car, the waymo division, central to google's plan. out oflying car projects

the company, uber is developing technology -- capability in-house. caroline: that was cory johnson and brad stone. be sure to check out the upstarts. outs now. -- out now. the grand ambitions with president trump. is it a case of deja vu? the details next. news" like " bloomberg check us out on the radio. this is bloomberg.

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♪ ♪ shery ahn: the update of the top stories. toshiba expects a net loss when it reports earnings for the nine months ending in december. it is still working on tomorrow's release including what it calls a goodwill impairment for one of its westinghouse units. calling off the fight with the board saying the company will deal with questions about corporate government. he and several other billionaire founders have raised concerns about the governance and executive a at asia's second-largest i.t. services company.

the un security council made me on tuesday to discuss north korea's ballistic missile test. medium-range a missile on sunday, the first test of the trump administration -- presidency has been widely condemned. the prime minister calling it intolerable. >> president trump assured me that the united states will always stand with japan 100%. and i completely share the view that we are going to promote further cooperation between our two nations and further reinforce our lives. shery ahn: global news 24 hours a day powered by more than 2600 journalists and analysts in more than 120 countries. you are watching bloomberg. let's get a check of the markets, the asian pacific great start to the equities market. a great start to the

week. the regional index tracking higher. we've not seen this since july 2015. strengths across every single market in the asia pac region. taking a rally that we saw from u.s. stocks. iron ore and copper search. some great moves coming through from resource stocks today. up 6% and sydney. yes trillion sharemarket closing by .7% -- the australian sharemarket closed by .7%. we are seeing the yen jump. love those safe havens being down along with gold and treasuries. the nikkei is trading by .5%. led by hong kong as well. listed in hong kong tracking very strongly at a two month high. up by .1%. a quick check on the yen, it is continuing to weaken against the dollar. the yen at 113.90.

quite a bit of weakness from gold at .4%. life from london at the top of the hour, this is bloomberg. ♪ caroline: welcome back, i am caroline hyde. intel will spend $7 billion on a production company in arizona. the meeting with president trump. presencet expands the in arizona and will create more jobs. capitalincluded in spending forecast. the plants construction was already started so by the announcement now? withjohnson caught up intel vice president and asked why they are focused on building in the u.s. guest: to put this in

perspective, we tended to be among 1, 2, three in the world in terms of capital spending every year. 1, 2, 3 in terms of r&d. we are huge. the majority of that investment is in the u.s.. we invest all over the world but the majority of it is here. the reasons we invest in the u.s. is first and foremost, we can hire great people here. we have really good infrastructure and access to worldwide markets. we build our capacity in the u.s.. 80% of sales are outside the u.s.. that is important to us. we do all that against the disincentive of the highest tax rates in the world. disadvantaged relative to our competitors in korea or taiwan. as a place where we are working closely with the administration to try to get a more pro-investment policy such that it makes more sense for us to continue to make these kinds of

investments here. : it's 8 billion the price tag for intel? guest: we are starting with a shell of that has been built. outfit it and get into full production, another $7 billion. just aere starting from piece of land, you are probably in excess of $10 billion to cory: --e of these areas areas. cory: i wonder, in terms of the time, you have the shell of but if you were to start with vacant land to complete this, how long does that take? guest: from start to finish, depending on where you are a, whether you have a shell or not, 3-4 years. in perspective, in addition to the direct's employment we are creating, these are among the largest

construction objects on the planet. -- 3000already have constructions employees getting this thing ready for production. they are enormous and the impact they have on communities is enormous. y: here you have intel, and he drove himself, a refugee and sameer of intel you at the time the federal district court in san francisco in the bay area is debating this immigration ban. the ceo at the white house with president trump. intel's -how is much does and tell me immigrant labor- and from refugees? how important is immigrant labor? guest: the r&d that they do is among the most complex problems on the planet.

to put this in perspective, intel is not political. we engage with democratic and menstruation, provoking administrations. defendantto put this in -- democ administration, republican administrations. in other places we disagree. issues about immigration and being able to hire the best talents. clear as well.at we engage on issues, not necessarily down political lines. the issues are investment, being able to hire the best talents. being able to build in the u.s. all around the world and make the investments that make is a great company. : talk to me what the use of h-1b visas and how important that is to you. it comes back to the simple concept of we need to be able to hire the best talent in the world. many cases the phd's, people

come in from overseas to get phd's in math and science areas. those people that come in his make intel he great company. we would like to hire a proportion of those visas being used for the most high skilled technical people. -- of the poisons that places that brian is using with the ministration right now. a story we are following, apple has yet again put in a request to sell it used iphones in india. over concessions to start production in the company. last attempt at this was met with resistance as industry executives and government believes this could undermine the made in india program. apple is exerting the brand influence at the negotiating table as preowned devices will be cheaper and target the price-sensitive markets.

we will sit down with the aol ceo tim armstrong from the makers conference and quiz him about his role to have women represent 50% of the leadership by 2020. all episodes of bloomberg technology --"bloomberg technology" "bloomberg daybreak" --

♪ the zenefits ceo will be j porter. -- david sacks announced in december he would be stepping down as chief executive, his tenure lasted less than one year after taking the reins from parker conrad. while cutting 45% of the workforce. inning to reduce costs in the point of regulatory scrutiny and management shakeup. life from palos verdes

california -- palos verdes, california. tim armstrong announced the goal to have women represent 50% of the organization leadership by 2020. he is targeting equal pay in the same timeframe. a well joins a push by corporate america to make them reflect the population. they caught up with tim armstrong. im: this journey started six years ago when we cofounded the dylan miggy. a first real investment in the 4500 women stories on makers, the largest catalog online. we also want a leader of the company. we are doing immediate -- meeting with our executives and they asked us, is the one thing we can do as a company that would send a message and be great for the company? they said could be gets to 50-50 gender diversity at the top of the company?

we discussed it and made a commitment, announced that an hour ago. we are in the process, getting the company reestablished. internal employee development and in the suit future -- in the future we want to be 50-50 across the board. of the management company, a bold goal but we will figure out how to do it. caroline: equal pay by 2020. if you're not for new watching a business leader, a step-by-step approach to achieve that. tim: we have diagnosed the issues around it. one starts outside the company where we will get the talent from -- talent pools. in some cases pools we're not in by 2020e must be 50-50 and i said gets going, we would

go to the same pools. we have to change what we are doing. the second is having the environment as the company. -- at the company. if you're a-- female executive coming in, part of the interview process is a meeting with female executives and getting that side of the story in terms of why you want to come. the last piece is internal development process, if you are diverse talent, a female executive and he wants to move along in general, we have to put the fundamental steps in place. our plan over the next 2-3 years is to put investment, just like we bought huffington post, we are going to do a deal around this issue. that is what we announced on stage. we are serious about it. we will figure out how to do it and our employees are very engaged in it. this is bloomberg.

-- caroline: tell me about the author deal. the yahoo! brand and talents, the brand remains one we care about and many people care about. we have had a great experience with him over the last six months. the integration process has been on track. breaches, so where the deal sits is where we are waiting for information to come back about the sake -- second data breach. caroline: timeline? it is ongoing, i don't want to give a timeline, during q1 we will have more information. that we can sit down and discuss with them in a coherent way next steps in terms of outcome. it is too early to have that discussion. deal closes, we

have a high appreciation for yahoo! overall. is how simple it is. caroline: the driver is tipping on more web users. facebook and google dominate the space. how will you be the number three player? tim: we bring something unique. google and facebook are gold medal athletes. performing, executing well. a very good job and they continue to do a good job. he wants a sweet wants to be in a athlete and it is in the brand space. the one place we want to be an athlete and is the brand space. news, noticed with fake and in the search space where going to moreen ai then user directed search. brand because a very important role. we wants to be owners and partners and have a brand advertising system that really helps find new consumers

simplyt -- if i said facebook is social, google's search, we will be a brand, everything we are doing is around brand. we're excited about the future of advertising. we are probably one of the two or three companies in the world. caroline: that was tim armstrong. at the makers conference we caught up with megan smith. her about the proposed visa restrictions and what they mean for luring talent the united states. smith: make sure we welcome great talent to the shores like we have through history. it is critically important. opportunity is here. we do the artificial intelligence work for the president. it is becoming automation and we

miners 35 coal regimented in eastern kentucky. what we doing to get america to have the talent -- a huge amount of -- nine out of 10 parents at school. taught we are getting it done. the governor is very bipartisan. continuing to welcome the town. attention in the smart way to how we are reviewing. those in a way that is very -- they are really capable to we just need to continue to advance the field. caroline: some of the concerns switching to executive orders on visas, h-1b visas, a loss of concerns have been raised about how these will be deployed. are they used in the right way

or are there more efficient ways to bring in the top talents to the united states? that: many countries have -- you see it in britain, canada, other places. we want those entrepreneurs making companies here. labor, which iof think we should call labor and talents, they did a great million from $135 the visas was used for grants to help them accelerate albuquerque. four counties represent half the population of new mexico, people coming out of prison, foster care, those with disabilities, trait into the tech sector. you see people going from $10 per hour to 65, $85,000 per year in three months. that is the real thing. they are exciting to see reagan's making that ecosystem work for employers and bringing we have to do it

because ai and automation nearly drives the economy. former chieft is technology officer megan smith. facebook made announcements there at the conference. the company is expanding paid leave for employees facing hardship. sheryl sandberg spoke about why. guest: i lost my husband very suddenly almost two years ago. provided leave, i was able to take it and flexibility. now we are doing even more. caroline: the new briefs policy will allow up to 20 days in the case of an immediate -- family members death and 10 days for extended family. why are firms waiting to hire female investors? a question to susan lyne at this year's conference. this is bloomberg. ♪

♪ aroline: pinterest unveils feature that lets users search for products by accessing their camera. thetifying objects in picture. other features help users find more product's relating to images users have already saved. make verdes, california, desk kicking off the women's conference. ventureswith bbd president susan's lines -- susan e.ne' susan: women are starting companies at an extraordinary rates. 1400 companies with a female founder since we started the bg ventures 2.5 years ago.

obviously that is not all of them. this is a very fertile arena right now. the legacy is that does not have the networks that reach into this female entrepreneur ace. women -- base. women are getting 2% of venture capital that goes to startups. that is an opportunity. if women are the dominant and there are more and more women that are coming out of engineering with reald companies vertical expertise, we should be backing the best of these because they understand that and the user. caroline: what would be the tipping point for these talent ?o come in to their

-- what is the data not showing right now? whatthink it is less about the data shows, because a lot of these companies are still very early stage. 5, 8, 10 years for a company to really show what it can become. i think you are seeing is that there is at least a recognition that they need to open up their partnership. several of the most storied vcs rushing their first penal partner caroline:. what took so long? >> it is understandable on a certain level. most of the early startups were selling to large technology companies. they were enterprise place.

to talk to the guys working at those companies was important to as the world changes and as technology becomes a part of there is just a bigger world out there and a bigger opportunity. caroline: what we've seen a lot is key startups have been led by immigrants. how are you seeing the trump trouble then coming into play? how much is that affecting female immigrants as well. i was seeing it come from outside the united states? . we only invest in companies that are u.s. based. there are certainly plenty of founders who have come to this country to go to university. and stayed. they are starting companies now. there's no question that this particular sector, technology

startups, would be impacted dramatically by this game. -- ban. caroline: perhaps there was an echoed chamber within social media. think? >> everyone, whether they wanted to take responsibility for the outcome of the election or not, i know for a fact that every atpany really looked hard what their current policies were, how they could make sure that the echoed chambers were opened up if that was a problem. all of them have gone to the figure news problem as well. -- fake news problem as well. nobody is being cavalier about this.

a problem that everybody recognizes. they are doing it pretty good job of trying to find solutions. caroline: at the makers conference, weekend or the shouting behind us. more than 500 women. all about leadership and storytelling. it feels optimistic, are you optimistic about the talent pool coming through? guest: i'm optimistic about a lot of things. about thistimistic conference. anybody talks about it as the meeting after the march. --you were in d.c. it was such a spectacular day. those days that remind you of how much progress has been made and what a unified group women in the united states

are. women around the world right now. the message was simple, we are not going back. what's an event like this is great for is to get people really thinking about what that means in practice. what are the things we needed to do going forward to make sure our daughters have even more opportunity? 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. 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 this next generation of women to do that. that was the bg ventures president, the mole best invests in phenol led in female -- invests lead businesses. caroline: this week investors of snap interactive. eight files for the first public offering. latee started to rise in january after reports of the oncoming -- upcoming ipo. that comes it -- that does it for this edition. all the latest in tech throughout the week. thursday we hear from cisco ceo after they report earnings. p.m.in each day at 5:00

new york, six a clock a.m. and hong kong. all episodes of "bloomberg technology" are now live streaming on twitter. check us out weekdays.

♪ >> and growth spurt, japan's economy expands for a fourth straight quarter as shinzo abe tackles trade tensions. reject a bid to reform corporate tax, government looking for new ways to stay competitive. rbs said to plan more than one billion pounds of cost savings by cutting jobs and closing branches. welcome