mark: i am mark crumpton. white house press secretary sean spicer says the u.s. is open to more airstrikes in syria and said he cannot envision a peaceful or stable syria with president bashar al-assad still in office. concluded that russia had advance knowledge of the chemical weapons attack in syria. a russian-made fighter jet bombed the hospital in what was a cover up attend.

british prime minister theresa may and president trump spoke by phone today. the u.k. foreign secretary boris johnson said russian and syrian senior military figures could be had with fresh sanctions. judge neil gorsuch was sworn in today as the 113th justice of the u.s. supreme court after a senate battle exposed a bitter partisan divide. convicted charleston church shooter dylan roof pleaded guilty, sparing his victims and their families a second trial. ♪ caroline: i am caroline hyde.

this is the "bloomberg technology." an e-commerce battle brewing in india with billions of dollars at stake. tesla tops general motors, eclipsing the american auto institution and market cap. and, a new player in the online video service space. comcast looking to take on netflix and amazon. we will bring you all the details in a bloomberg scoop. tesla hit a new milestone after motors tot general become america's most viable auto company. you can see just when tesla pushed past the competition. $51 billion in terms of market capitalization above the two other

juggernauts and u.s. autos. how much of a stepping stone is this. $51 billion is phenomenal. i'm looking at the enterprise value. it is even bigger than gm and the 55en you look at billion dollar enterprise value and gm at $40 billion. >> that's right. edge to their value. this is more of a symbolic ament when tesla has crossed line of being more five hole than gm and ford. you have to look at why. investors are seeing tesla as the leader in autonomous vehicles, of electric storage. they have a lot of businesses with potential, and that is what everyone is playing for. general motors and ford, auto

sales are trailing down. both companies will still make a lot of money this year, but investors are seeing this as the and maybe wed us will put our money someplace else. tesla, there is still hope they can grow and get a bump in the stock. jaffray put it as optimism, freedom, defiance, the thing that auto companies are struggling to replicate. the disparity and number of cars these companies are pumping out. 10 millionl sell cars this year. tesla got a big bump in their stock when they sold 25,000 in a month. 10 less thanf general motors. look, it is not about car sales right now with tesla. model threethe

coming out, there lower price car, and being a success. you are talking about a vehicle that will sell for 35,000 or $40,000. caroline: gm has its share of chevy volt. the road,h that is on the optimism is still much higher about the model three, which is yet to start coming off the production line. that's right. the big car companies had seen electric cars and hybrid cars to meet regulations. americansthings typically didn't like. tesla made things cool. these cars, people have latched

on, particularly luxury buyers. you take it down scale with something like a model three, it still has a design that looks is fore model s, but it people who aspire to have a tesla, a piece of elon musk allure. he has a lot of fans and enthusiasm behind him. the brand has become powerful because of those initial vehicles, and people who can afford a $40,000 car can get a piece of that. a chevy that looks like a compact minivan, not so much. caroline: let's remind ourselves that it is now number six in the world when you look at auto get toes, and it could the fifth-place if honda does not look out. >> that's right. they could pass honda soon to

getting to the value of toyota is another matter. stockal story is tesla has a ton of momentum, and we are not close yet to the model three launch. once that hits come it will be a test for how much demand there is because we don't know how quickly they can manufacture them, and can they manufacture them without defects or problems. if any one of those three things become a problem, the stock could take a hit. it has always been a volatile issue. we will be in for an interesting ride over the rest of the year. caroline: we certainly will. with that price target below where trading is, we will see how analysts update their price targets. thank you very much. another key top story, ebay investing half $1 billion in to flipkart.

ebay ist of the deal handing over its local business. so-called down .round for flipkart that valued the company at $10 billion. int is down from $15 billion 2015. what does this mean for the global e-commerce competition. flipkart, $1.4 billion, money pouring into indian commerce.

why the valuation? >> the internet market there is overheated and you are seeing consolidation. it is an opportune time to get in on the e-commerce leader while the industry consolidates and venture capital, even though it is a big deal for flipkart, venture capital one not be pouring into these other startups. caroline: we just spent last week talking about the opportunities for investment in india, whether a tech investor, and it seems apple and many tech giants. we understand india is hot while china cools down. is it all about indian commerce. roughly 1.2 billion people behind china with 1.4 billion, and the united states with 300 million.

went many investors are realizing is that amazon is positioning to take this marketplace, and you are seeing consolidation happening around the remaining companies. with ebay handing over there assets and this infusion of cash from microsoft, tencent, and ebay, these are companies position to compete against amazon, so they are consolidating around flipkart to have a viable competitor to amazon. this could just be as stepping stone in this saga involving flipkart, because actually beld teeming with flipkart in the next couple of weeks. of the is what a lot speculation is, and sources are saying the deal is in the works. its snapdeald down

ownership. you are seeing this global coalition to fight amazon and this critical market, and your other guests mentioned the population. access,so the internet and internet access in india is growing quickly, along with wealth. the country, even if you limit it to the number of connected people, it is still far larger than the u.s.. a global coalition. i like that turn of phrase. the global coalition is forming. do you think it is enough to stop that that jeff bezos is making? >> that is the question. we want to see softbank's involvement and the combination of flipkart and snapdeal, consolidating two of the

players. you have that formidable rival to amazon. the thing about to remember about the marketplace in india is that it is still relatively nascent. other areas, you have a massive need for investment. amazon can fund investment from its cash flows. companies like flipkart will have to depend on money from external sources. this is an industry burning a lot of cash, negative gross margins come of billions invested every year, so it will be a battle, and amazon is well-positioned with its capital base to succeed. they lost in china to alibaba. they want to prove to investors they can win in foreign markets like india. caroline: alibaba was back to a softbank, sot by

taking a leaf out of his playbook there. he seems to be willing to sacrifice some valuation in snapdeal, which could merge with flipkart. there are rumors we might see an 85% cut and very wish and for snapdeal if we see a combination from the two teams. it looks like softbank is willing to take a hit to win in the long term. >> he may be willing to take that loss on snapdeal if he can get a larger stake in flipkart. he likes to have stakes in that more meaningful category of 20%, 25%, 30%. we saw them do that with alibaba. we will see if they can do that again in india. thank you very much indeed.

another story we are watching, at&t is buying a company in an all stock deal. it is one of the largest holders of a certain type of spectrum the power 5g wireless services. at&t is hoping to better compete with rivals with fast internet speeds. this is the second such acquisition for at&t this year. up, chipmakers have been outperforming nearly every other sector over the last year, and despite rapid growth, some analysts think they have room to run. we will dig into this industry next. this is bloomberg. ♪

caroline: now a story we are

watching, a proposed merger visio. leeco and reportsust last week of of a continuing cash crunch was worsening. turning now to a rally that has exceeded every industry, semiconductors. an unprecedented flood of mergers has helped fuel the rally. you were crunching the numbers. this is a phenomenal outperformance. is it vindicated?

the number say that is it. this is the np we should be taking money off the table. when we started speaking to investors, they believe there is more room to run. they believe with the markets these days, that can happen. caroline: earnings can be driven higher. it seems to be cars that are the player for chips going forward. >> everyone is excited about that one. it is the immediate one that people can connect with ec is. year compareds a to one billion smartphones, so does it make sense? has thelly this potential to have a big impact.

caroline: more value. fundamental drivers, the internet of things. we were talking about how at&t is plowing money into 5g. >> the phrase everybody uses is internet of things. what does that actually mean? our research and when we speak to people, industrial automation is where the volume is at this point. even ethernet connections for factories is something they are just about to get. in terms of connections, remote management, bringing the data of the machines to manage them to be more efficient, right at the beginning stages. the potential is supposedly huge. caroline: what about the runaway successes when you dig into the chipmakers? nvidia comes to mind. is it still the standout? >> sentiment has turned against it. there have been downgrades that

have brought it back close to being in line with where everybody else was. nvidia was ai, self-driving cars, we will be the heart of it. to be fair to them, they posted some numbers. they are not particularly huge. they are better than anybody else's. they have shown progress. ultimately, that will attract competition from companies like intel that are bigger with more resources. that is where some of the sobering sentiment has come from recently. caroline: is there a divergence as to who the key players are to watch in semiconductors? >> potentially this year, if you listen to analysts and investors, they are due for one. memory is old school. why does anybody care about that? it is just computers. a lot of the data has to be stored somewhere. traditionally, that was stored on spinning disks. there are only three or four

companies that make that. increasing demand limited to supply. prices go up and everybody does better. caroline: ian king, we will be dragging you back on. china's farmers are looking to the sky. how the chinese government is planning to replace manual labor. that is next. this is bloomberg. ♪

caroline: the future of farming is heading to the sky. on a southern chinese island, agricultural drones are being used to spray pesticides over

crops. the government is encouraging farmers to move from manual labor to automated farming. we have this story from china. ♪ >> the farm is about 44 acres. this year, he is trying out new technology. he has hired a team of drone operators to spray pesticides over his crops. ♪ [speaking chinese] >> the team of six arrives at dawn and got to work. [speaking chinese] ♪ >> agricultural drones are taking off in china. in recent years, the government has encouraged farmers to move

away from manual labor to automated farming. right now, drones are only used on about 2% of chinese farms. the market could be worth $4 billion u.s. a year. the world's top drone maker is betting more farmers will start automating. the company has introduced two drones for pesticide spraying. they use radar to maintain the right distance from crops. >> our drone helps to mitigate the overuse of has to sides by following a planned route. the system is doing a lot of the work automatically. we can ensure more precise spraying. >> the drone has a small payload. the operators have to refill the canister every five minutes and change the battery every 10 minutes, which means it can only be used on smaller farms of about 50 acres. it is tedious, but cheaper, and faster than hiring manual labor. he paid about $22 u.s. per acre. that is almost $7 cheaper per

acre than hiring men with backpack sprayers. ♪ >> [speaking chinese] ♪ caroline: fascinating. coming up, we speak with former apple c.e.o. john sculley. his futures on the thoughts of artificial intelligence. that is next. if you like bloomberg news, check us out on radio. you can listen on the bloomberg radio app, bloomberg.com, and in the u.s. on sirius xm. this is bloomberg. ♪

11:29 a.m. in the lion city. i have the latest first word news. toshiba tumbling ahead of the deadline to deliver delayed earnings. made besaying it released with a disclaimer from toshiba's auditor. another postponement could affect its tokyo listing status. oflcomm has accused apple lying and making threats in a dispute over smartphone chips.

had issue is how much qualcomm can charge for its patented technology. qualcomm monopolizes the marketing claims it withheld a repeat of $1 billion. qualcomm claims apple breached contracts and misrepresented facts. the south korean presidential hopeful said he would confront north korea's nuclear ambitions through talks with kim jong-un. he said the south is currently a spectator to the actions of china and the u.s. the u.s. has diverted warships to the region, while the north says it may conduct a nuclear test in the coming days. the ministry of environmental protection and china is launching a year-long campaign against smog.

the teams will go to beijing and surrounding provinces. global news 24 hours a day powered by more than 2600 journalists and analysts in more than 120 countries. this is bloomberg. >> caution is the name of the game this tuesday, cold on the rise, treasury yields adding to declines. equity markets, japanese stocks napping a two day rise. the biggest dent in asia stocks coming from the drop in chinese shares on the mainland and in hong kong, h-shares falling over one percent. the won and the kospi slipping. if thisaiting to see

thursday's job report could be the catalyst to 6000. the euro falling against the yen, which means it could unwind its post-brexit rally. ♪ caroline: this is "bloomberg technology." i am caroline hyde. back to our top story this hour. a battle of billionaires brewing in india. on one hand, amazon c.e.o. jeff bezos has pledged $5 billion for growing the e-commerce is giants presence and taking on the local leader. the other c.e.o. is said to be closing in on the deal to merge snapdeal with flipkart to fend off amazon. also joining the fray is ebay. it just gave flipkart $500 million in india for exchange for equity in a cross-border

deal. one number worth noting. the latest funds valuation, $10 billion. that is down from the more than $15 billion valuation given in 2015, making this a down round and serving as a warning that the indian e-commerce market may not be the same growth driver for these companies as china was. now, artificial intelligence is quickly being adopted across every sector, including the fintech sector. one company utilizing this creditogy is lantern based in newport beach. the startup provides an interactive credit report that allows customers to see how actions might impact their credit score. the company also partners with banks and uses computer learning to provide offers to customers. joining us from new york is the vice-chairman john sculley, former c.e.o. and chairman of apple no less. it is great to have you here on "bloomberg technology." thank you for joining us. first of all, tell us what is different about lantern credit.

i am looking at it and i know plenty of companies that offer free credit ratings, scores, and offer you loans. how does lantern credit make it different? john: credit scores have been a central part of financial wellness for many years. until now, there has not been an easy way for people to be able to know more about what their real credit worthiness is, find whether they can get much lower cost loans to be able to improve their credit scores rapidly. and then on the side of the banks, being able to make much better informed decisions. what makes lantern credit unique is we turbocharged it with the ability to use machine learning to do things that have not been possible before in consumer credit finance. caroline: like? john: for example, the ability to have an intelligent credit score, which enables someone to in real time be able to

determine what their credit score is and be able to improve that credit score. this is the thing that has been missing in the market for consumer credit scores. normally, it takes many months to know whether you can improve your credit score. we can use machine learning to look at the behavior of consumers. these could be bank customers who are our partners. we can predict before they do anything if they will be turned down for a credit card, what they can do to improve their chances of being accepted for a credit card, how they can get a lower interest rate for a big-ticket item. all of these things can be done with machine learning. it is something i think will set us off on a whole new way of thinking about consumer credit. caroline: you say you are working with the banks. you got a luminary from the banking industry, the chairman of morgan stanley.

what about working with banks internationally? is it a u.s.-focused product at the moment? are you looking globally? john: we will look globally virtually. right now, we are focused on the u.s. we have a number of bank partners. we will be in the market later this year with our first release products. the thing that is exciting about lantern credit is we made an acquisition of a very advanced machine learning company based on what is called nonlinear symbolic regression. this means we are a white box solution. white box is different from google deep learning. no one knows how that is done because it is all black box. when you are in a regulated industry like consumer finance, the ability to have it human readable is incredibly important. we have a white box solution. it has been proven in the market. now we have adapted it for being able to determine the risk of a

loan for a lender based on the underwriting requirements of that specific consumer. what is really interest in about bank partnerships is they have massive amounts of consumer data, but they are only using about 1%, maybe 2% at best. that other 98% of data, we can start to harness that with our ai machine learning technology. that is what i think is going to help change the way people think about alternatives, options, what they can do, and help educate people, which is a big deal for the consumer finance protection board, to see consumers better educated and eliminate confusion about credit finance. regulationou mention , the white box helping without. is the regulatory environment helping or hindering in the u.s.? john: we are on very good terms with the consumer financial

protection bureau because they love the idea we are educating consumers, that we are giving full transparency. no one has been able to give this level of transparency before and yet the able to enable consumers to be empowered with wellness tools that open up all kinds of new options for them, really expanding the credit possibilities by lowering the cost of interest rates for many consumers, particularly on the larger ticket items. i think the way we are positioning for the market is not only going to be good for lantern credit, but it is going to set a new bar for the whole consumer credit industry. you have got credit bureaus, credit report companies, but this is a chance to say, how can we all work together and take it up to a new level? caroline: i could not have you on and not ask you about apple. is there optimism aplenty when you're looking at innovation levels at your previous company? john: i think apple is going to

have a great year. probably a great three years because the refresh cycle for the iphone, 10th anniversary, everyone is looking forward to it. it is coming later in the year than some of us thought it was going to. it looks like it will be announced in september and maybe not delivered until after that. it looks like it will be a spectacular product. apple is the iphone company these days. caroline: should it be more? john: you will see a lot of growth around innovation of services for the iphone. caroline: does it need more than an iphone? john: >> the stock is up almost 50% over the last 5.5 months. at the moment, i think the market is saying it is doing a good job. caroline: john sculley, great to get your opinion. thank you so much. former c.e.o. of apple and now vice-chairman of lantern credit. thank you very much for joining us. now, speaking of tech and finance, bank of america has named a new head of its

technology banking. he replaces the man who announced his retirement last month. he has been with bank of america since 1996. most recently, serving had of software banking. he helped close large deals. coming up, the mobile game maker eye an ipo. how jam city plans to stay above the competition. we will hear from the myspace cofounder next. this is bloomberg. ♪

caroline: google's artificial intelligence technology is moving on to the next challenge. the deep mind ai software will

take on a top ranked chinese go player in may in a formal rematch between the man and the machine. last year, the program had a lopsided victory over the south korean master. the technologies success astounded experts, who thought it would take as much as a decade before ai could beat top-ranked professional players at the game. the mobile game maker jam city is getting set to release a new game this spring, including a "family guy" game available at the end of the month. the company will have five additional titles launching this year. joining us is chris dewolfe, ce and cofounder of jam city, and myspace. tell us about the new games. it is an interesting tactic you use. you are based in l.a. it seems no surprise you would join entertainment with technology. chris: we have been very successful developing our own titles.

moving forward, starting about two years ago, half the new games we develop come from third-party i.p. living in los angeles makes it really interesting because there are so many great storytellers. i think what we do particularly well as a company is we are able to interpret that brand or intellectual property from a television show or movie into the format of a mobile game. caroline: keeping the humor behind "family guy" and trying to replicate it in a game must be hard. your numbers are pretty stellar. are you monetizing the business at the right pace for your and enthusiasm? chris: and enthusiasm? i think . we have grown at an average of about 100% a year over the last five years. our growth topline and bottom

line have been phenomenal. we have been profitable for many years. we are running our own race. we have had several seminal moments in our history. 2015, we raised $130 million from korean strategic. last year, we bought a san francisco company that got us into the intellectual property market. they did the original "family guy" game. we just announce a future game within. they have a marvel game. about half of our employees are currently in san francisco. caroline: is m&a where it is at? will that remain in your playbook going forward? chris: we are growing organically. we have a long history of doing a great job with m&a. i sold my company to fox so i understand it on both ends. as we get into new genres, we will do that mostly through m&a because the mobile gaming market is consolidating in a huge way. there are only a handful of big companies left. caroline: consolidating. would you ever be prey or do you

aim to remain independent? chris: an ipo is a natural great ending to a great start up or a natural beginning, as it were. we will see what happens. we will keep our options open. ipo is interesting to me. caroline: this year? chris: i don't think this year. i think it will probably be sometime next year if we end up doing it. caroline: why play it slow and steady in the ipo ramp-up when you're seeing the window wide open? snap did well in the beginning. chris: i never believed in timing things like ipo's. as long as your profitable, you don't have to worry about it. caroline: you don't even have to be profitable. chris: i guess, but from our standpoint, we don't have to raise money. we don't have to do an ipo if we don't want to. we wait until we are ready. we will have had four years of increasing profitability kind behind us.

six or seven years of topline growth behind us. we will be very ready. we want to make sure there are no stumbles after we do it. caroline: looking at some of the mobile gaming companies that have gone public, there is always the age-old question of, when are you going to have another hit? how do you level off that kind of stress that you have to keep on bringing these winning formulas to the fore? chris: i think you need to make sure, for example, the hit games we built three or four years ago have all-time to highs in revenues. for example, cookie jam has done over $500 million in revenue. we released back in 2014. panda pop has $259 million in revenue. we released that about three years ago. the key is to keep these things fresh and new. you add new levels, so the players in the games never want

to leave because there is always something new and fresh. every year, you launch new games. this year, we are launching six new games, which is going to be incredible. those revenues and profits stack on top of the games we have launched over the last three years. you have a lot of diversity in your revenue streams and a lot of durability, almost an evergreen nature to the revenue streams. caroline: what about your diversity and durability in tech talent? you have a couple of u.s. sites inut you also have one buenos aires. how are you able to find the right talent in the u.s.? are the travel bans concerning you as the leader of a business? chris: visas are always tough. we are always looking to aggregate the best talent. our headquarters are in los angeles, but the majority of our employees are in san francisco. so between those two, we have about 375 in san diego.

we try to spread our talent along the coast to make it easy to hop from town to town to see what is going on. there is a great talent base on the west coast as well as in buenos aires. we are really happy with how things are going. caroline: it has been great having you stop by making your tour of the west coast. thank you for coming in. chris dewolfe, we hope to have you on again soon. c.e.o. and founder of jam city. this wednesday, a conversation with christine lagarde live from brussels. catch that conversation wednesday at 6:30 a.m. in new york, 11:30 a.m. in london. coming up, comcast is looking to take on netflix and amazon. we will bring you their plans for an online video service next. this is bloomberg. ♪

caroline: now, to a bloomberg

scoop. comcast is taking on netflix and cbs. the company plans to introduce an online video service in the next 12 to 18 months. comcast is still determining many details, including whether it will have a live feed of the broadcast network and if it will include sports. there are plenty more details for us to digest with lucas shaw , who broke the great story for us. you and alex got together and broke this element of news. is it netflix and amazon they are gunning for? why are they slowed to the party? >> if you are a traditional media company, comcast, cbs, time warner, fox, or disney, you have watched as netflix and amazon have attracted huge audiences with their on-demand services. at the same time, you're seeing the viewership for live, traditional tv go down. so you are saying, what can i do about this? we are still making billions

from our tv networks, but clearly need to do something for the future, come up with some new service. cbs has tried with a couple of services. time warner has one with hbo now. comcast has done a couple of small ones. they have a web service for comedy fans. this would be a much bigger endeavor pulling together programming from across the comcast universe. nbc's broadcast network, football, reality program, cable networks, and maybe some sports as well. caroline: advertisers could love this because they have a certain demographic which perhaps are younger than the rest of them. >> yes. cbs has a product in the marketplace called all access. it is like the cbs broadcast network, but it is online. you get a live feed on demand. they made a point of saying the average viewer for that is significantly lower than for cbs. if you look at the trends in tv viewership, it is only getting older for live tv. most young people are not watching as much live tv.

if you want to reach them and you don't want to sacrifice that demographic to facebook and so on and netflix, you have to come up with something of your own. caroline: something of their own. talking as a man who has come up own,something of his it breaks my heart because i am a fan of jay-z and he decided to pull his music from spotify. i will have to get tidal. is that why? >> it is the only reason i can come up with. he pulled his whole catalog from spotify with the exception of two records he made with r. kelly a long time ago. about half of his catalog is off of apple music. if you want to listen to classic jay-z albums, you cannot get it anywhere but tidal or song by song on youtube or pandora. jc, the timing confuses me because universal music group which has a deal with jay-z just made a big deal with spotify last week. over the weekend, his music disappears.

he is clearly trying to send some kind of message. maybe he is trying to give some boost to tidal. it would be helpful if someone from his camp would give me a call back. caroline: hopefully we will chase them for you. tidal is his rival streaming music company he bought. it was a european-based company. do we know how well tidal is doing? it was not a huge success as the businessman might have liked to have seen. >> the big attention getter for them has been exclusive windows or getting an early chance to release new music from several of jay-z's friends, partners, so on. rihanna, kanye west. but most analysts think it has got three or 4 million subscribers, which would make it the third or fourth paid streaming service, but way behind apple and spotify. the owners did manage to sell a stake in tidal earlier this year. caroline: i will have to go back to my c.d. collection of jay-z.

bloomberg's lucas shaw taking me old school. thank you very much. a great scoop. that does it for this edition of "bloomberg technology." on tuesday, the cofounder of elevation partners joins us. do not miss it. this is bloomberg. ♪

♪ >> the markets way geopolitical list as tillerson meet spirit -- meets. the global economy is healthy and he is continuing. future rate hikes will still be fresh. yousef: kuwait is the latest oil producer to see it coming down. some still want the opec curve extended. david: overhaul