inprotest -- conflict talks protest of the strikes in syria. the u.s. and russia clashed today on whether to maintain the hotline aimed at preventing midair collisions of warplanes in syria. officials also said they are looking into whether russia participated in the chemical weapons attack. the u.s. ambassador to the united nations says the u.s. took "a very measured step last night in syria and is prepared to do more." >> our military destroyed the airfield from witch this week's chemical strikes took place. we will fully justified in doing so. mark: the senate has voted to confirm neil gorsuch to the supreme court. 53 yesterday,4-40 republicans lowered the number of votes needed to advance the supreme court nominee to a simple majority from 60 votes after democrats filibustered and blocking judge gorsuch.

the chinese president returned home this afternoon following his 20 summit with president trump. the president called their time together very interesting. both leaders spent part of today holding talks in florida. i am mark crumpton in new york. ♪ caroline: i am caroline hyde. this is "bloomberg technology." coming up, the fallout continues in the google controversy. are the change that youtube enough to keep competitors from chipping away at its massive digital ad sales? 23 and me clears a major regulatory hurdle. c.e.o. oniew with the the future of the genetic testing market. samsung investors shrug off scandals to report

higher-than-expected earnings. could the south korean giant be bouncing back? googleo our lead, continues to fight back from its at controversy. youtube will now require video channels to reach 10,000 total views before pairing videos with advertisers, raising the bar for those posting on the site. is it enough after advertisers found their ads running next to offensive and extremist content? are they already jumping in to grab a larger chair -- share? joining us is jitendra waral at our guest host for the hour. a great way to be ticking off the show --kicking off the show. who could be eating away at a dominant force? >> first of all, it is important to understand the measurement problem, the classification

problem of user-generated content does not have a one-time fix. this is an evolving problem which will have an evolving platform. it is not just related to youtube or google. it is an industrywide issue. it started with you to -- youtube. we had some escalation leading up to the event. we had the fake news concerns. we had facebook reporting metrics incorrectly and things like that. in general, it is making advertisers think again. do we need to look at the metrics these companies are self-reported? how do we make sure we are getting what we think we are getting? they are pausing. it is a near-term issue. it is not a one-time fix. this is an evolving problem straight as the content evolves, these solutions will have to evolve. caroline: get a little bit of market share?

1.8% of the digital ad market in the u.s.. can it get any more? near-term, you have publishers that have more control over the content. you have measurement companies individually that work with google and facebook to vet their metrics. and of course, you have amazon and the other folks who are very slowly growing the ad business. if you look at projections for amazon this year, it will be $1.8 billion in business for them. the retail market is pretty big for advertising. it is essentially, who can provide better roi, better measurement, and more transparency? if they can longer term, i have a business -- they have a business they can longer-term target. caroline: is something the market has been calling for for years. . this is something youtube and

google have to tackle. is this going to cause bigger changes than the changes we are seeing? bob: i think eventually it will. this is an important first step. getting to the 10,000 level on youtube, you are raising yourself above the noise. at the same time, what is interesting, we think about who has opportunities moving forward. in a world where we have specific information, theoretically there is an opportunity for smaller players who are well targeted at particular audiences to do reasonably well. i think that could be an interesting development. aroundck issue has been for decades since the web began. it almost falls back to the same old problem. here we are again trying to debate that. i think intermediaries play a role. i think there will have to be a couple of well-known standards. we will see other developments

on the web we can say is a reasonable metric of volume. there has to be a lot of work done. luckily, ai can be used to be smart about what things can be served even if the numbers are where above where they should be. caroline: this is such a broad problem. this is just one element of it, despite back against youtube and the changes they are making. we have heard of the fake news element, the pressure across the board. back-checking -- fact-checking is something google announced today. to ensure theble wrong answers do not come up anymore. >> we are seeing a lot of movement. this is evolutionary. it is not going to be revolutionary. this is a blessing in disguise for digital advertising.

advertising is not moved away from tv as quickly as anticipated. one of the bigger problems was brand safety and classification. if they come up with a standard solution with machine learning, audits, if there is a standard cracked onde is radio advertising. this is a blessing in disguise if you think about it longer-term. steps willthese continue to evolve i think. bob: to your question on the fact-checking, i think it will be important. it looks like what i read on what they are doing, it is possible somebody could game the system. they could claim to be a fact-checking site. whether or not they were valid is yet another question. these things get pushed further and further out in terms of who you can trust. fundamentally, it is a good step forward to try and see how we

can evolve this. people are no longer simply going to be blatant the able to rely what they had seen -- blatantly rely on what they have seen under will be more checks and balances in place. o'donnell will be sticking with me. a story we are watching. it is said to be exporting a sale after it has received interest from potential buyers according to a report. the company has raised her eat million dollars -- $38 million. it is one of the best-known startups that links freelance workers with jobs. coming up, an exclusive conversation with one of the most well-known startups. the 23 and me c.e.o. on the company's big win with the fda. that is coming up next. this is bloomberg. ♪

caroline: the federal communications commission chief may present a proposal to gut net rules as soon as this month according to a person fully with the issue. he has said he wants to maintain the basic principles of net neutrality laws which legally prevent internet providers from blocking or prioritizing certain content for financial gain. he previously voted against the 2015 net neutrality order saying the laws were trying to solve a problem that did not exist. meanwhile, the d.n.a. testing company 23andme has cleared a major hurdle with u.s. regulators. the food and drug administrator has given the company the green light to sell genetic testing kits to consumers. the first and only company in the u.s. to be cleared to provide reports. in a turnaround for the fda

which previously imposed a moratorium on home testing kits, while the u.k. and canada embraced it. earlier, i spoke with the c.e.o. in an exclusive interview. i started by asking about the requirements the company has to meet to earn the approval. >> the fda wanted us to prove two points. one, to make sure the data is accurate and if i tell you a certain result we know the quality of that result is reproducible. that that is in fact the result. the second thing we had to prove is comprehension and go around the country improve all different education levels could understand the data. it is one of the things that is core to 23andme, we have the belief anyone can learn about themselves and science is within the reach of anyone. and so, we designed the product and experience specifically so anyone of any education level can understand this information. caroline: 10 conditions have been granted thus far.

how did you select these conditions to run with first and will you be adding to them? >> we will definitely be adding to them. that is part of the whole process. we want to keep consumers up-to-date as more genetic discoveries are happening. we focused originally on parkinson's and alzheimer's because those are two of the most commonly requested reports our customers want. i think one people thing -- thing people do not fully realize is the medical system does not have that information. consumers want this information because they might be making a lifestyle change. they want to be empowered with this information. caroline: they have been seeking information for other things prior to this. since 2013, they have been able to find out ancestry history, beverages they might react to, and what their children might be inheriting. you have already done a 23 and me test, can you automatically find out what your reliability

is in terms of the 10 conditions? >> it is for customers on an existing fda cleared platform. that means they have gotten on in the last few years. they will get these reports. for customers on a pre-existing platform, we will enable some way for them to upgrade to it. for people who bought a year ago, they will get these reports. caroline: you are giving education. you are making everyone a scientist, as you say. helen howard are they to use that information? are we expecting people to run to the doctors because they have more exposure to these genetic conditions? can they use it and go to their insurance and show they are safer than indicated? >> i think one thing people do not fully understand, there are a lot of aspects of health care in the prevention world that do not cap into what we see as the traditional health care system. we find people find out they are

at risk for something and they want to make lifestyle changes. they might want to start exercising more. they might want to change their diet. they want to have a coach of sorts. when we didd studies and the u.k. is we found people are not running to their physicians to ask more questions. some do it ring -- some do bring it up on the next scheduled appointment but it is not generating more visits for physicians. people do want to make lifestyle changes. that is where there is a real opportunity. we want to embrace a consumer health care movement. where consumers are thinking about their health care, not episodically when they go to the doctor, but they are thinking about it every day. what am i eating? emma exercising? theink as we think about retail world and the daily experience and other consumer focused companies, those groups will help people make behavior changes we know customers want to make. caroline: on the coaching, is

23andme going to be providing coaching as well? >> we are not providing it. we provide links to individuals. we see our expertise as genetics and making it clear for individuals the risk they have. we want to partner and enable other companies to help customers take it to the next level and execute in that way. caroline: what about the reach of your own business and where you take it next? you have been using the data. what is the privacy angle? that springs to mind for many users. can you confirm how the data is used and what the data might do to help push forward research into certain diseases? >> data privacy has always been first to us. we have defined privacy based on customer choice. if you want to share your data with no one, you share with no one. 23andme will never share individual data without customers' exquisite consent. privacy is a huge priority.

we have found people with a disease want us to do research and partner to do research with other companies. it is a matter of choice. people have the ability to opt into that. we have a consent form. 85% of our customers are opting into that research. we want to -- the mission of the companies to help people access, understand, and benefit from the human genome. the way we will all benefit is with a big data set of genetic information and information about those customers. we have over 2 million individuals today. we have probably the largest genetic phenotype database in the world where we can make discoveries. i think anyone who has ever been to the doctor has suffered from the expense of not necessarily knowing the best path forward. if you have a disease, you may or may not know exactly what you should do. that is one of the things we are hoping to solve. with all this information, help individuals have personalized health care and treatment. caroline: dallas 23andme c.e.o.

anne wojcicki. samsung investors shrugged off scandals over safety and corruption claims report higher-than-expected quarterly earnings. we will bring you the details next. a feature we would like to bring to your attention is our interactive tv function. you can find it on the bloomberg. you will be able to watch us live and see previous interviews and dive into any of the functions we talk about. you can become part of the conversation by sending us instant messages during our shows. this is for bloomberg subscribers only. this is bloomberg. ♪

caroline: despite a handful of serious scandals, samsung has posted its best operating profit in almost four years. perhaps thanks to strong sales of memory chips. samsung is still trying to bounce back from last year's galaxy note 7 crisis and counting on its new flagship

model to restore its reputation after the exposing --exploding battery debacle. but effective leader made his first appearance in court friday in a massive corruption trial. joining us in washington is troy stangarone. also with us, the guest host of the hour, bob o'donnell. these numbers surprised me. it would not have anticipated perhaps the best profit, quarterly profit in more than three years. what is driving the resilience from your point of view? are you surprised how much they weathered the storm? >> i think this is being driven largely by the chip business. we are expecting to see profits on the smartphones are going to be down maybe as much as 50%. but if you look at them specifically, there has been a boost in demand for dram and the price. samsung is positioned well to take advantage of that.

caroline: bob o'donnell, i need to get your point of view. what blows my mind is when you go on to the bloomberg terminal, you can see 41 advise and only one cell. the price target remains higher than the current share price. you may sustain this bullishness? bob: i think they can for a while. samsung is made up of a lot of different pieces. the component piece that otheres the displays and kinds of components is very robust and built not just by what samsung does book i what apple does -- but by what apple does and what of the other competitors do. s8 is an that, the impressive new device. i think it will do quite well. barring any other major disasters, which i think they have protected themselves against with all the testing

they are doing, i think it will do quite well. that will give them more momentum again. . they continue to branch out. we see the smart hub device they offer as well, moving more into the smart home space. they are building themselves a very strong, interesting platform play even though they do not have an os. caroline: not as good as android. bob: they are building these platforms and services out with samsung pay. they have an identity service. these other things they are starting to build up that i think will make them a competitive threat long-term. caroline: it was the number one mobile player in the world. troy, i want to show the viewers on our bloomberg. how important samsung is to south korea in terms of the economy, 19% of the total south korean market cap is this one

standalone juggernaut that is samsung. i want to get onto the other debacle we mentioned. that being the political scandal engulfing the company. jay y. lee in court today. what are you seeing? what is south korea seeing? what should we look for as to whether he could be prosecuted for this and what it meant for the company? >> i think as we expected, young said he was not guilty of the charges. this has been samsung's case the whole time going forward, that .hey were extorted but they did not take and seek a bribe to push forward the earlier merger. going forward, i think there are three things we need to look at. this is taking place in a very unique lyrical environment. one factor i think going forward is going to be the trial that

has started. guilty, thatnd not will have significant impact potentially on young's case. if she is convicted, it may have repercussions on his case but it might not. caroline: remind us. >> she is the one who was the go-between is claimed between samsung and the others. she is the one who took and did the requests for the bribes, if this is proven. i think beyond her, we also need to look at the president who may get charged, what those charges are may give indications. i think we also need to look at the ongoing presidential race. hello question of pardons has come up in the election. depending on who wins, it might have an impact on young's future if he is convicted. caroline: when you're looking at samsung, do you look at it as a

part by part company? do you worry about the political corruption scandal engulfing it? none of the analysts seem to be caring. bob: you do look at all of the components. i think there is opportunity. my bigger fear is what happens with north korea because of the influence it would have on south korea and samsung in particular. caroline: to add that political element to the conversation as well. coming up, the court saga between waymo and uber rages on as both sides step up their argument. we will discuss next. this is bloomberg. ♪

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and add phone and tv for only $34.90 more a month. call today. comcast business. built for business. si'm happy for the distraction. i'll be right there. and the butchery begins. what am i gonna wear? this party is super fancy. are you my uber? [ horn honks ] hold on. [ upbeat music playing ] the biggest week in tv is back. [ doorbell rings ] who's that? show me watchathon. xfinity watchathon week now until april 9. get unlimited access to all of netflix and more, free with xfinity on demand. ♪ nikki haley says the u.s. military action in syria was

justified. she described possible reasons for russia's failure to rein in serious chemical weapons program. >> it could be russia is knowingly allowing chemical weapons to remain in syria. has beenbe that russia incompetent in its efforts to remove the chemical weapons. it could be that the assad regime is playing the russians for fools, telling them there are no chemical weapons while stockpiling them on their bases. mark: reaction to the military act was mixed. russia and iran condemned the attack which they claim was conducted under a false pretext. israel and saudi arabia welcomed the bombardment. also supported the move.

meantime, i muted response from china. china's foreign ministry cautioned against the escalation of tensions. the chinese president returns home following that visit with president trump. reporters about his first face-to-face meeting with the chinese leader. in ourendous progress relationship with china. we made progress in the relationship developed. i think it is outstanding. mark: swedish police have

arrested a person who may have a connection to the attack in stockholm. someone drove a beer truck into a building. the country's prime minister is calling it an act of terror. droppedauthorities have terror charges against a tunisian man in antwerp. no one was hurt in the incident. prosecutors said they lacked evidence of terrorism. south africans demonstrated, calling for the resignation of president zuma. i am mark crumpton. ♪ this is the "bloomberg technology." the h one b visa program open this week.

the highly competitive program is even tougher for applicants. about the impact of these changes on giants like google. rules is aimed at the lower in, the outsourcers of the world. they bring in workers and send them back overseas. caroline: what about the start of community? how much do they depend on h-1b visas? u.k. and friends even use these visas. there are lots of immigrant founders. they hire a lot of people from

outside the united states. it is an important program to them. a lot of people saw this coming. i think we have not seen the same backlash as the immigration bans. caroline: i'm going to move on to the next story. it was perhaps a leak of what name theas going to combination of its assets. it's not the first thing that springs to mind. i want to bring in tim armstrong. have a listen. promoteears the lane to yahoo! and others.

to the brandtion is short-term thinking. he said $50 million worth of marketing garnered by this leak. heat ontook a lot of this one. they have integrity. it's not a bad name. i don't see the problem with it. it is an umbrella name for them organizationally. the property names come the individual brands, don't go away. these companies have brand recognition, techcrunch, yahoo!. there are still one billion people who use this. exactly.

how many people have left yahoo! as a result of that? people are still tied to their female providers. does this hurt them? i don't see it as a bad thing. >> i think it's ok. hipper company, they would probably get credit for it. caroline: four tim armstrong. >> you could've done a lot worse. dalez? not a real thing. it is made up. caroline: the joy of rebranding. in to an uber's scandal. you are all over it. of self driving car unit google. >> uber file third response.

they are arguing we are not using way most technology. waymo's technology. we are not using it, so we are fine. we shouldn't get a preliminary injunction against us. over whetherting the court will snap its fingers and order them to stop right away. another big court case. twitter withdraws its lawsuit against the u.s. government one day after filing it. block a was intended to summons to identify an anonymous twitter user. company,er covers the and bob o'donnell.

great reporting throughout. is it possible to call this a victory? >> this is a victory for twitter. when i saw the headlines come i thought oh, my god, they already with drew their suit? us about some to of the background to all of this. twitter was taking the government head on. is fascinating considering how much trump has driven the agenda. cooperate when there is a criminal case. there was a case a couple of sent ano where a user epilepsy inducing tweet to a journalist and he had a seizure. gave the government

information about that user and he was arrested. in those cases, twitter will and actually provided a transparence report of all the government request they have gotten around the world. when it comes to free speech , they are steadfast about not giving information to the government. twitter has been shut down when they have refused to give information. caroline: rather fascinating what it shows. shows how much they want to shut down criticism. >> it does. this is not a criminal case. it is a great win for twitter. it is good news for them. it shows they are willing to stand up.

i think that's right. i think they need to do that. that reflects and independence they need to maintain. didn't, it would reflect poorly on them. this is critical for them to turn this one around. caroline: shares still down. what can you do? great to have you on. wonderful reporting. watching making .ts public debut friday shares popped 39% and has a market cap of $2 billion. it is backed by andreessen horowitz, greylock partners, and sequoia capital. up, and answer the

sidesteps of frenzy, and the snap ipo. this is bloomberg. ♪

caroline: the struggling music streaming company pandora has asked better deal terms. labels are unlikely to heed these requests. cash,a still generates but it is under pressure to prove its better days are still ahead as an independent company. thees slid and remain below 2011 ipo price. spotify made waves over reports

it is considering an unusual way to satisfy investors, weighing a direct listing rather than a traditional ipo and would not involve underwriters and sidestep price speculation. joining us now is one of spotify's backers. also, bob oh donald. direct market listings, circumventing ipos. with this be a positive step? >> good to be with you. our review on the direct listing is positive. we think it signals confidence. ideaompany reflects this that the business is financially sound and they have enough cash

to support their growth and don't need to raise billions of dollars to be sustainable and successful. notion challenge this that the business needs to go through the traditional ipo roadshow to market the story. businesses don't need the ipo roadshow necessarily to have a following from the investment community. management'sd ability to do the right thing for the business and shareholders. has been debte taken on by spotify. me why they wouldn't want more money to pay down the debt. areterms of the debt pushing them to go for an ipo or direct share listing sooner rather than later.

commentike to see this 2017 rather than 2018? >> we would love for the business to go public. management is looking for the right time for an offering. the trigger for the ipo is not the debt piece. they are not driving the thesion to go public, but appropriate market conditions and timing for this company. they did solidify negotiations with universal. we think that was a huge milestone, so those of the drivers for the business rather than a financial instrument the company can more than support. bob: does this reflect a changing atmosphere around tech ipos in general? snapould argue that with and spotify, is there the sense that tech companies are trying

to take more control to themselves away from wall street? what does that mean for wall street and investors? surprise that they are taking an innovative approach here as they think about this ipo and contemplate a direct listing. that ipo roadshow's led by the investment banking community, stocks can be underpriced. snapchat, the stock went up 40% after it was listed, so we let the market determine the price of the stock. it may come at the expense of some investment banking fees, but it is better for shareholders, the company, and we believe it is a viable route companies in general. execute a can transaction like this, they can generate investor following on side.uity research

this could become a template for companies in the future to go public and do a direct listing versus the traditional ipo route. caroline: i'm thinking of another company you invest in, .ver -- uber which you rather see them go sooner than later? , the companyn uber is doing tremendously well as a private business. they have flexibility to execute and strategize the way they want to. we are no strangers to being patient about waiting for an ipo. our largest investment was in the alibaba group. alibaba took 15 years to go public, and it was worth the wait. , there are af uber

lot of things in flux. the business is only eight years old and it is still early in its broader development. we are behind management. at some point in the future, and ipo is likely in the cards of a company this size. it doesn't seem that there are any other paths for liquidity for shareholders. we are supported of that. caroline: worth the wait. wonderful having you on. to bob oh donald. great to have you with us. coming up, amazon disrupted e-commerce, but now targeting in a prize customers. what can suppliers due to stay ahead of the goliath. this is bloomberg. ♪

caroline: amazon business said to disrupt the supply chain. the group by 20% month over month. how is amazon taking aim on this fragmented market and is it the new area of disruption? wonderful to have you with us. perhaps not a new threat. perhaps something going on for 20 years. where would amazon want to make inroads? >> there are court documents released last fall. citing the industrial supply industry, which includes

maintenance, repair, and operational products. those are disturbed by companies like granger or msc direct. caroline: fascinating you bring up with granger and msc. bloomberg intelligence was digging into some of these theories. ro's arel that in mark a value added element. do you think amazon has the discipline to compete on the value added services sector? granger is more vulnerable than msc. both companies have a large portion of revenue that comes from mro products.

msc has 60% of their products sold online through their website. you first,n attacks the pack and ship products. those tend to have a good amount of margin. a lot of companies are moving towards value added services. amazon can cause a lot of disruption to a distributor's bottom line i just taking an attack at that pack and ship revenue, also spot buys. the granger, that is 40% of revenue. they plan on reducing prices by 15% to 25% for their spot by product segment. caroline: the price pressure is being put on. companies like yours are hoping that these companies might come

to you for help to build her own marketplaces in reaction to amazon. maybe disruption would help your particular business. is this generally a negative? a lot of consumers love the disruption amazon has brought. what can it bring to the economy of large? >> there is a huge opportunity for distribution companies. which is also a retailer, is the same thing what these distribution companies are. they need to embrace the third-party seller marketplace, which is what amazon has been doing for 20 years now. that business mantle is called the -- model is called the platform business model. those business models have a winner take all dynamic, which means there are only one or two companies that dominate in industries market share, so they

are highly fragmented. morearketplace is valued than the veneer distribution model, so they could be in a position to drastically increase market share if they were to look at revising their business model structure and embracing that marketplace model, letting third-party sellers sell alongside them on their website. how quicklyt's see that disruption comes are these companies respond. wonderful to have you with us. that does it for this edition of "bloomberg technology." on monday, we speak with the latest founder about his adventure in mobile gaming. this is bloomberg. ♪

♪ announcer: from our studios in new york city, this is "charlie rose." begin with the chinese-american summit in florida. president xi jinping arrived today for a meeting with president trump. it is the first bilateral meeting between the two leaders and an important step in improving relations. trump is expected to press his counterpart on trade deficit and north korea. president xi jinping is seeking assurances that washington will adhere to the one china policy. joining me now is tom