>> you are watching bloomberg technology. a check of your first word news. president trump blamed the obama administration today for the "weakness" he said led to an -- a chemical weapons attack by syria. strike obama failed to -- it would cross the u.s. redline. secretary of state rex tillerson is condemning today's attack in syria and pointing the finger at russia and iran. tillerson said today the two nations bear great moral responsibility for the deaths in syria. at least 58 people were killed in today's suspected chemical attack including 11 children. , the un security council has scheduled an emergency meeting

for tomorrow in the wake of the chemical attack. u.s. ambassador nikki haley made the announcement in response today from a request from britain and france for an emergency session. susan rice says it is absolutely false to claim that there were political motivations behind her request to identify americans named in intelligence reports links to the trump transition. rice tells nbc the requests were necessary to do her job, and she has never leaked nothing to nobody." 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. ♪

caroline: this is "bloomberg technology." jpmorgan ceo jamie dimon weighs in on the debate of automation versus skilled workers. and they realize president trump's program may help them. plus indian outsourcing company says india is still a bet for u.s. tech giants. we explain why. add cash crunch to the list of growing pains. we look at the chinese tech conglomerates long list of problems. first to our lead, the concerns continue over the sanctions on visa's guidelines. jpmorgan ceo jamie dimon weighed in on the debate of keeping highly skilled workers in the united states. in his annual letter to shareholders is that it is alarming that foreigners who obtained advanced degrees cannot stay stateside. he says "we are sending talent overseas by not allowing these

young people to build their dreams here." these remarks come days after president trump made it harder. say the visa allows outsourcing companies to bring in lower paid foreign workers. but these changes might just might just help u.s. tech giants. we have an extensive researcher into the program. cory, first you. we should remind ourselves why there is so much kickback against h-1b visas. and how much it seems to help. the concentration is on indian workers with temporary jobs in the u.s.. if you want to have american employment in high-tech, it is terrible. but on the other hand, it is u.s. companies with

workers they just cannot find anywhere else. companies of to demonstrate that in order to get these workers. these are not new conditions. american companies have always had to show that the people they are bringing into the country -- they try to find american workers, posted the jobs, and the pay is better than or similar to one that american worker would get if that person was available. it seems the share prices reacted on the back of this. we saw infosys fall today. i want to jump into the bloomberg. in, infosysthis in a world of pain. we have gone down 10% in terms of share prices. spikinge, this is been the highest since 2008, this shows a significant bearish sentiment. i want to bring in the associate

professor at howard university. you have written long and at length with expertise about the outsourcing question. these moves that have been made to the h-1b visa, are they making it slightly tougher for the outsourcing companies in particular? or does it make it harder to to bring in the talent to the u.s.? >> it is focused on enforcement. as long as the forms are complying with the law, it does not make any difference at all to those firms. if they are violating the laws, rules, and regulations, they might be in trouble. otherwise, this is just a enforcement mechanism or measure. unfortunately i would disagree with cory johnson's characterization. you do not have to show there is a shortage of american workers. you do not have to recruit american workers before h-1b, you can prefer h-1b over american workers and legally

have them. workers 40%american less. we have documented cases of this. cory: i will agree that is where the abuses have happened. a lot of outsourcing companies have been accused of this. when you look at the list of the companies that use these the most you see tata and infosys, , but you also see companies using these to bring workers and the u.s. caroline: and at a cheaper price point. we have seen a lower wage being offered because they are entry-level jobs. ron, what would you propose could be done to change the h-1b that would mean u.s. companies and whoever needs the tech talent most in the u.s. and are willing to pay for it can get their hands on the right talent they need, even if it is necessary from abroad? ron: the intent of the h-1b program is a good one, to fill skill gaps when it is hard to

find u.s. workers, and to bring in and keep the best and brightest. that rhetoric is correct and that is a good thing. the problem is right now, the rules are so loosely written that is extraordinarily easy to bring in workers at much lower wages, and profitable. you have firms gaming the system that have built their business model around cheaper h-1b workers. it is quite easy to fix this. we know how to do it. we know what the problem is. we have to raise wage floors so that workers are brought in not because they are cheaper but , because they are truly the best and brightest with skills that u.s. workers don't have. caroline: but can every entry-level engineer, programmer from the united states really indicate more than $100,000? ron: $100,000 is misreported about what those salaries are. the way the minimum salary works, it is based on the geographic location, the occupation, and the skill level.

no one is talking about a minimum wage of $100,000. what we are talking about is allocating the visas based on the highest wages. that would be one way to do it. if you want the best and brightest, they should be paid like the best and brightest. and if you want to allocate 85,000 visas, those should fund the highest salaries. that would squeeze out the forms that are using it for the cheapest labor. it would help the american economy, bring you the best and brightest, and be a fairer system in a lot of ways. cory: you know more about this than anyone. it seems to me that the really is a bifurcation in the ways it is used. a lot of companies using it as body shops, almost. then you have companies who use it much less, companies like intel and microsoft and apple and facebook who really seem to be looking for best and brightest. is that a fair characterization? ron: i'm not sure i would characterize the best way.

they all have the same kind of business model. by the way they are selling to , jpmorgan, so it's a little disingenuous for jamie dimon to be talking about this when he knows he is hiring these firms to undercut the u.s. market. but certainly some of the best and brightest are being brought in and paid fair wages. the question is, how do we monitor that and make sure all firms are doing it that way? targeting just outsourcing firms is the wrong way of making policy. you should make it that no firm can pay cheap labor. all firms should be looking for u.s. workers first. caroline: indeed, whether that 85,000 cap will be reached soon. we will see if they make it easier for the likes of intel and microsoft to get the hands on the right sort of people going forward. associate professor at howard university, thank you for your time. cory johnson valued here as always.

as we mentioned, jp morgan's ceo jamie dimon said they spent with -- spent more than $95 million on technology last year. banks.r the big $9.5 billion, can we get a breakdown? reporter: i want to bring up my notes for you. he did give us a breakdown on that $9.5 billion spent in 2016. he said something around $300 million for fintech initiatives. they do compete with startups. change withn abrupt the last two years. if you go to 2014, he was saying that we should be worried about silicon valley, that silicon valley is coming for them financial industry. last year he had a different tone, much more optimistic. this year part of his letter is

spent touting the initiatives that the bank has going on the fintech front. caroline: fascinating, and $6 billion being put into fintech companies. and ventures with them going forward. is there any idea how long this will be continued? in previous years he said that tech is coming for the financial giants. is this level of spending going to be continued? reporter: he didn't give any projections as to what he will be spending next year, but he looks at it as something the bank needs to be continuing to invest. he says if we do not have that investment, we will not be growing as quickly in the future. he considers the company to be in part a tech corporation. from that perspective, he couldn't possibly stop spending on technical ventures. caroline: i want to draw our viewers' attentions to the t live go function.

brilliant analysis, and we get reports such as this, you can dig into jamie dimo'sn letter to shareholders, as well as the updated numbers we got. thank you for your time today. coming up, we give you a peek at a new index that could get startups thinking funding and upper hand. a reminder that all episodes of "bloomberg technology" are live streaming on twitter 5:00 , p.m. in new york. 2:00 p.m. in san francisco. ♪ caroline: when is the best time

to fundraise? it is a major question almost every startup faces. one new index wants to help answer. it aims to help consumer

orientated founders that are -- to better understand the venture capital fundraising environment. is created by good water capital in hopes of shedding light on private market investor sentiment. joining us is the cofounder and managing partner of goodwater capital. wonderful to have you here. spread a little light on this area of funding. this is a data-driven approach. what data points are you using to fill this index? guest: we looked at a variety of public and private data sources and back tested them against 20 years of history to see which ones are most predictive of fundraising sentiment. we ended up with ipo, and ultimately the pe at which public company's are trading. all those together, you get an index that is highly correlated with the sentiment at sand hill road.

caroline: it is showing that things are a lot better than they were 2012, 2013 but perhaps not at the peak we saw back in july 2015 or earlier at the end of 2016. are your funding statistics and barometer and index you have built at goodwater showing similar themes? guest: we saw the market peak debt 2014, continued in 2015, and took a big dip to the end of 2016, a 30% drop. the market was overfunded, but specifically linkedin dropping 43% in one day lead to a chill in the startup market. caroline: what also fascinated me is this is aimed at consumer oriented startups. no relevance to

the enterprise startups out there? chi-hua: we focused on consumer because we are consumer tech investors, but we think it is generally indicative of the overall startup funding market as it is those same partnerships funding consumer companies and enterprise companies, in many cases on the sand hill road. caroline: you help bring recommendations when it comes to actually going out there and doing your startup funding, when it comes to terms, due diligence. are they in the hands of the vcs or the startups? chi-hua: we think it is balanced. we have a four level scale, and right now it is at go for it. it is a healthy market, not a terms of balance. this is something we observed in 2016 was a real problem. companies that had raised money in 2014 or 2015 thought it was so easy to raise money, no problem. but the market dropped by 30%. if you are a public market investor, if the dow dropped by 30% you would have your hair on , fire. it would be a completely

different ballgame for investing. that is what we are trying to educate entrepreneurs on. in a shifting market, the terms and timing are going to change a lot. caroline: and of the players. we have seen more entrants wanting to come in at later stage funding, and institutional players. how does that change the landscape? 2014 andyou saw in hedge funds, foreign market 2015 investors. in 2016, they cycled outcome of which lead to a cooling trend and a lot of challenging financing, some of which were widely reported. caroline: if i'm looking at your funding index, would i also be gauging any global sentiment? we are seeing companies go to chinese investors and european investors. yours is very much u.s. based. chi-hua: that is correct our , data is u.s. based. if you were to look at the world and china, we think it is highly correlated to that sentiment.

a lot of global companies come to silicon valley to get funded. china is its own beast. it has a very healthy funding ecosystem, a vibrant venture capital market, and those trends don't necessarily correlate highly with what is going on in the u.s. caroline: so i am a startup coming to you at goodwater. looking not only for your expertise, but if i wanted money from you as well what would i be , saying to you right here, right now? what would you think the vc market wants to see out of the startup community? is it revenue, cost discipline? chi-hua: we have a specific recommendation. you want good growth, but a reasonable business model. the period of time when things were going quickly with no business model, that has cooled. that was investors now are 2014, 2015. looking for some sort of proof that a company can make money at scale. caroline: seems only necessary, doesn't it?

wonderful to have you here. thank you so much for talking us through it. i'm sure many people will be getting their teeth into this particular index. goodwater founder. coming up u.s. stocks are in , tight trading range, but there are some standouts making big moves in the tech sector. we have the details next. and a feature we like to bring to your intention is our interactive tv function. you can find it at tv on the bloomberg. you will be able to watch us live and see previous interviews around the globe. on bloomberg chart functions. this is only for bloomberg subscribers. check it out at tv . this is bloomberg. ♪ caroline: the story we are

following for you a federal , judge has blocked a seattle lyftthat allows uber and

drivers to unionize. the u.s. chamber of commerce had asked the judge to block the ordnance before it goes into effect, arguing the rule him properly treats independent contractor driving. the city of seattle says collective-bargaining would create a safer, more reliable industry. meanwhile tuesday was a pretty , tight trading session in the united states. the majors barely moved the needle. but there are some standouts in the session. let's get into them with reporter abigail doolittle. give us a sense of what really was on the move. reporter: it was a very quiet day overall for the major averages. the dow, s&p 500, and nasdaq often fractionally higher after very small gains and losses on the day. one of the smallest trading ranges on the year, in fact. bloomberg.nto the each of these yellow bars represents the full trading range on the day for the nasdaq. today's range is below that pink

line, one of the 10 smallest ranges this year. investors really don't have a lot of conviction today after some of the volatility we have seen in some of the other sessions represented by those bigger bars. where we did see some action, both amazon and alphabet. amazon finished up more than 1.7%, alphabet finished 0.5%. they say they see headwinds for alphabet from amazon relative to add revenue growth. pretty interesting there. analysts are also saying amazon is his top pick in that they -- big internet space. it is absolutely on fire this year. let's hop back into the bloomberg and take a look at g #btv 6742. with the exception of purple,

this is the s&p 500. all of these stocks are facebook, amazon, netflix, and alphabet. and in that order. up top in yellow is facebook, in blue is amazon, up 20%, netflix up about 17.5%. at 7.8%,up the least but still outpacing the s&p 500. even with this cut today and the ad issues alphabet has had more recently around youtube, those shares are still outpacing the s&p 500 on the year. trade alive once again. caroline: we will have to keep on -- give us a sense of monday taking it back. it was a big story that the apple suppliers were under pressure after he saw a huge move for imagination technology in the u.k. tuesday did we get a feel any of that was still being run out of it? reporter: it pretty much went away.

we did see an upgrade over pacific crest that helped for both sears logic and sky works, two of those apple suppliers that did fall on monday's session after imagination technology plunged 60% on the news apple would be cutting them off over the next two years. the analyst at pacific crest saying that they show accelerating growth. on the same day, pacific crest, another analyst said they cut the shares of nvidia. they are recommending that investors go instead to sky works. nvidia down 7%. lots of movement for the chip stocks. overall that semi conductor index is down about .5%, outpacing the bigger move than the small gains for the nasdaq. caroline: great roundup of all u.s. stocks. thank you very much. coming up, u.s. tech giants are looking to gain ground in india.

is it too little too late? we continue our coverage of the tech landscape in the country next. this is bloomberg. ♪ -- i am paul allen with

the latest first word news. south korean defense chiefs holding an emergency meeting after reports of the north fired another rocket. say achiefs of staff ballistic missile was fired 60 kilometers over the eastern sea, pyongyang saying it is working on a weapon. rex tillerson says they have heard enough about north korea and has no further comment. will.s. security council hold an emergency session on wednesday after an apparent chemical weapons attack in syria killed at least 58 people.

western leaders have condemned of the reported use of gas on a town, saying sources were loyal to damascus. president trump called it reprehensible and cannot be ignored by the civilized world. the gastate media says tanks were from a rebel weapon factory. france's 11 presidential hopefuls held their first debate. he repeatedly attacked the -u.k. kennedy, i marine le pen, for failing to get more supporters. she is expected to lose to an independent in the runoff. global news 24 hours a day, powered by 2600 journalists and analysts in over 120 countries. this is bloomberg. >> we have to versions with a markets given the fluctuation in the end. the nikkei 225 marginally

unchanged when it comes to coming off the lunch break. it is set for a second day higher. it seems to have lost its momentum. it is leading gainers today. the hang seng with 22 losses. trading for the highest since december, chinese stocks climbing the most in three weeks. industrials leading gainers for a plan for a new economic plan. this is supported by the surge. in chipmaker rising the most a decade on record holiday iphone sales. kospi retreating from the session high. not much reaction for the north korea launch. malaysian shares falling ahead of trade data. as of noon the local time, malaysian stocks continue to check upward for tuesday's record close.

philippines, shares gaining a third straight day. . the range itgh has seen on tuesday that is it for asian markets. ♪ caroline: this is bloomberg technology, i am caroline hyde. our top story fallout from new , guidelines to the u.s. work visa program. down ample, emphasis percentage point. consulting down 1% on concerns changes in the impact the hiring costs. while some of the biggest indian tech companies are under pressure, u.s. tech giants are eager to get into the market. joining us is a partner at lead edge capital. they manage over $1 billion in assets. welcome to the program. i want to get your take on some

of the bigger tech giants we have seen. apple, amazon, all trying to get into india with varying degrees of success. who has the right tactic? >> there are a lot of companies trying to make their way into india. over the last couple of years, we have seen a little decline in the venture capital market in india, meaning a lot of the financial players are pulling back slightly because of things like cash burn. that being said, some of the larger players that are larger global companies like apple and amazon are making their way into india. the reason they can do that because their time frames are long. a lot of these companies do not have a five-year timeframe. they had a 10 or 20 year, multi-decade type timeframe. in those circumstances, they can actually play there. you see apple trying to get into the smart phone market. it is difficult because a lot of people in india don't have as

much money to spend on smart phones. obviously, the apple phone is much more expensive than some of the lesser priced android units, but they are trying to make their way there. amazon for sure has spent a lot of money and time building up their practice in india. amazon has been the one in retail that has taken the lead with massive spend. about three or four years ago, they pledged to spend $2 billion in the region. last year, there were in his reports that said to lean dollars had been spent in a pledged another $3 billion. india is one of the last great frontiers out there. some of these companies lost out in china. it may feel like growth is tapped out in north america. they see india as a population with 1.3 billion people as a way to bolster growth and make a profit. caroline: amazon may have felt

it lost out in china to alibaba. how much do you think alibaba will directly enter india, or will it remain an investor? perhaps not going directly to tackle the market? >> that is a good question. i think so far they have spent their time and capital becoming an investor there. they made an investment a couple years ago. eal is one of the main competitors. they also made an investment in paytm.ny called they are rumored to be getting into e-commerce. from our perspective, most likely they are moving in as an investor. as the market continues to mature, i think potentially they can move in as a separate entity. it is not something i would rollout. but it is unclear they would be

anything more than just an investor, given that is where they have played so far. caroline: you mentioned uber before, another company you play heavily with as well. have they been taking the right tactics in india? in many ways they have gone against their playbook, accepting cash. do you have to bend some of your rules to be able to make things work in india? >> i think the market is incredibly different. if you look at the wealth of the people there and how they pay for things, and what the logistics systems are like, it is very different than what we know in the united states or western europe, which is that so much is done with a cash-based society. a lot of folks there they have , 1.2 billion people, many of them must have credit cards, but that's not the case. uber needs to adapt to the local geography. india is one of them. they have to say, look, maybe we have to deviate a little bit from the typical playbook, but that's ok because the prize at the end is large enough.

what they are doing there seems to make a lot of sense. in terms of bending what they would normally do. caroline: but the prize for you in india, you have portfolio companies that have exposure to it, but you have not actually delved into the indian market, unlike sequoia or nexus. why not? brian: we have spent a lot of time in india and have traveled there extensively. we as a firm have made global investments quite a bit. we invested in asia, alibaba is the largest investment we have ever made. we invested in south america and throughout europe. our concern about india was twofold. number one, the dispersion of wealth. you see a lot of businesses like i.t. outsourcing businesses. some of these are very large and

serve the rest of the world. but when you look inward in india, and companies serving the consumers of the country you have to say, what is the wealth effect? how wealthy are the people that will actually be buying goods and services in india? when you look at that, it is a little misleading. in some circumstances, you think, there are 1.2 billion people. on the other hand, when you look at gross income for cap it and divide it by the number of people the average income is something like the average in $1500. the united states is about $54,000. the average income in china is around $8,000. when you look at those numbers, you say how is there material spending capacity for all these people? for us it is a little concern the market might not be there quite yet. over time, it can grow, but right now that's how we feel. the other thing is cash burn.

the businesses have been spending a lot of cash on building and often times economics don't work at this juncture. caroline: great expertise on india. we thank you for your time today. coming up aol ceo on what his , company will look like once the merger between verizon and yahoo! is finalized. details on that. this is bloomberg. ♪ caroline: verizon will introduce

a new division called oath this summer. it is a the beer that coincides with the merger of the aol unit and yahoo!. aol ceo tim armstrong announced this on twitter, saying the new

unit will oversee more than 20 brands. he touted the launch on bloomberg daybreak america. >> we have a b2b brand in oath, which is a value-based brand. it allows us to highlight and clears the lane for us to really crunch yahoo!, aol, tech -- techcrunch, and huffington post. some of the reaction you see to the brand is very short-term thinking and we are a long-term company. we are big believers in brands and huge believers in long-term commitments of talent, which is what oath is about. >> besides being a great executive, you are also graded marketing. people have been saying, how much did they spend on this? >> we developed the brand in-house. the last 24 hours we probably have gotten $50 million worth of brand marketing. when we go to launch our brand campaigns for yahoo! and aol,

those things will be free and clear. it has turned out to be a huge benefit. >> apart from the branding, how is it going? how is the merger going to work? the main question i always ask, can you run up against-year-old shop of google and facebook? someone has to take them out at some point. >> first, let me start with verizon. for has a long-term strategy in the media space. we were the first acquisition they did. yahoo! is the next one. we will touch over one billion consumers. we are in a very good position to launch the largest house of trusted brands in the digital space. google, facebook, and amazon are partners of ours. overall we are focused on a , business models side of brand advertising. i did advertising for 20 years. i see an open lane in space in the brand, and that's where we are going. >> is marissa mayer going with you? >> right now, the executive team is marissa, plus me, planning

the executive outcomes in terms of leadership, which we will announce during quarter two. i will repeat what she said and what i've said before, which is that marissa will stay through the next phase. the next phase will be a mixture of the two executive teams together. i will look for more information in quarter two about that. caroline: that was aol ceo tim armstrong. sticking with the web, president trump has rescinded a role that requires internet service providers to ask for subscribers permissions before using their web browser history. -- history for marketing. i spoke with the founder of the world wide web and asked his thoughts on the signing of this new bill. >> i think this is a step in a bad direction. a disgusting direction, in fact. this suggests a lack of appreciation of the core values.

international values, american values, republican values. it is a bizarre way to go. it is just a step, an indication of this direction. caroline: some of the reaction to this was that the internet service dividers like at&t are being perhaps unfairly treated when an internet juggernaut like google or facebook is allowed to use our data without getting us to completely sign a wavy agreement. do you think the internet giants should have to go through more rigorous testing when it comes to use of our data, or is that the quid pro quo to having free services? >> yes, it is a good idea for these internet giants to be subjected to serious constraints over use of privacy and user data. that doesn't mean they are the same as at&t or comcast. at&t and comcast --

their job is to deliver the bids. caroline: when you see the of fake news, which is so prominent in our discourse is , this something you ever felt the world wide web would be in the state of at the moment? is this being reacted to in the right way? >> i have to say, 2016 really changed my attitude. for 25 years since the web started, i assumed that those of us who do things for the web are just try to make sure that the internet is an open platform. the web is another platform built on top of that. it should be solid, it should be neutral, and if you give humanity a good, solid, open nondiscriminatory platform, , then humanity will do good things. we've got lots of innovation. we've got wikipedia. we have open street map. all kinds of great things. but then in 2016, i think it is

not sufficient to just leave it open and let whatever happens on social networks happen. now we have to look at social networks and people who have built them, and think about the effect they are having. the emergent affect they are having on humanity. caroline: where does the world wide web go from here now with the rise of artificial intelligence? we are now using devices at home, the internet of things talking and using voice search. , where do you think we can see the web progress to? >> i've always said the next thing around the corner, we can't even imagine what's going to come. that's the case with artificial intelligence. there are some things like driverless cars that will be really valuable. the moment they become safer,

that will have a massive effect. starts having jobs, making decisions, when it , when it isdge inside a social network in deciding what new story for you to read, it already has a lot of power. when that sort of thing starts being done by ai, then that will lead to a lot more serious questions about what is happening to society and to what extent human beings are in control of it. i think the question is for people like elon musk and bill gates, asking about what happens if the ai gets smarter than us. that's a good question to ask. caroline: we will have the founder of the world wide web and newly announced winner of

the prestigious turing award. up next, a chinese conglomerate plans to be the next tesla, netflix, and apple all in one, but is facing a serious cash problem. this is bloomberg. ♪ caroline: mercedes-benz' parent

company are teaming up with the world's largest luxury carmaker and the biggest auto component producer want to put driverless taxis on the streets of the u.s. and germany within six years. this is a powerful counterweight to ride hailing giants uber and didi. which are also working on self driving vehicles. a cash crunch at the chinese leeco,onglomerate,

continues. they delayed paying u.s. employees this month. it is the latest sign that the billionaire may have overreached in his plan to create a u.s. foothold for the internet media empire. bloomberg technology reporter selina wang was first to report the story in joins us now from new york. i urge our viewers to go to bloomberg.com and read it. this is a billionaire who wanted a media and internet empire to outdo baidu and alibaba, but he's having problems. reporter: this is a really fascinating company to track. i attended their grand unveiling in october about their u.s. strategy. they bought this enormous plot of land in silicon valley and said they would hire more than 10,000 employees. and now this, month after month, we have seen a severe cash crunch. we have seen suppliers allege they missed payments. we have seen them stripped of sports broadcasting rights. this is the story of a company that went too far, too fast. sources have been telling me

this has stoked a lot of frustration with the u.s. employees. there were a lot of promises that were given, and delaying payroll for employees is always a very bad sign. although the company told employees this was due to troubles getting money out of china, a lot of sources tell me they believe there are a lot of other issues involved as well. caroline: the company has responded saying actually the payment wasn't missed, but you know differently. what do we think in terms of the high-level employees? they were lured over from big tech giants such as samsung in the u.s. and now they seem to be , looking for the exit. reporter: they hired a number of high-profile executives from qualcomm, samsung, and two of the four have left within the span of a year. he also has another division called faraday futures, a big venture in electric vehicles. that part of the company has seen significant turnover,

especially in their u.s. finance team. most of them left at the end of last year. they started to rehire folks to that team, but sources tell me it was very frustrating for them because of the end of the year they told the ceo that they can't keep spending. he said to keep on going and the money will keep coming. obviously, it didn't. that also stoked a lot of frustration, which caused a lot of turnover. caroline: they seem to be claiming they are beefing the team back up. what can we actually begin to believe here? should we be looking also at the money they have managed to bring in? they did try to get cash. reporter: yt, he is very good at fundraising money. he has been able to continually raise money. he recently got this over $2 billion lifeline from sunac. that is supposed to alleviate problems.

one of the issues is most of the , money is coming from china. they have ambitions to raise money in the u.s. and list in the u.s.. in order for u.s. investors to feel comfortable investing in the company, they need to start cleaning up the situation, getting cash flow. as far as we know, the only profitable entity is the main publicly listed one in china. with faraday futures, what can we expect? hopefully, the new cfo is able to bring in a new team to fix some of the problems, but they don't really have a new product out yet, so there's not much to go off of at this point. caroline: we will wait for your next installment. fascinating reporting from bloomberg technology reporter selina wang. that does it for this edition of "bloomberg technology." wednesday, we speak to partner at tpg capital for an exclusive interview about intel's privacy security vendor, mcafee. that is all for now. this is bloomberg. ♪

♪ yousef: theresa may flies to saudi arabia. the london stock exchange wants her to lobby for a role in aramco's appeal. trump prepares for a difficult talk with the president of china. billion dollar order from iran, a major test for u.s. relations. >> and washington has worries about westinghouse. officials don't want