alisa: i'm alisa parenti, and you are watching "bloomberg technology." president trump may meet with the turkish president next month. a white house official says the administration is discussing the possibility of a face-to-face meeting between them ahead of a nato summit. mr. trump called erdogan on monday to congratulate him on his victory in the referendum on expanding presidential powers in turkey. the chicago cubs owner has withdrawn his nomination to be president trump's deputy commerce secretary. that is according to a person familiar with the matter. he has reportedly had a tough time unwinding his ownership of the baseball team to meet ethics rules. he was among trump's first batch of nominees.

utah republican congressman jason chaffetz is returning to the private sector. in a facebook post, the house oversight committee chair said he will not run for reelection or for any office in 2018. he said his decision was not based on either health or political concerns. the middle east's biggest airline is reducing its number of flights to the united states. emirates says there has been a drop in demand caused by tougher u.s. security measures and attempts by the trump administration to ban travelers from some muslim majority nations. the airline says the cuts will impact five of its 12 u.s. destinations. global news, 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. this is bloomberg. ♪

caroline: i'm caroline hyde. this is "bloomberg technology." coming up, tech giants continue to report earnings. qualcomm out with numbers. the chipmaker beat expectations amid its high profile court battle with apple. plus, the life of an apple supplier is about to get even tougher. we will unveil the company's plans to expand its design of components. a $400 juicer grabbed the interest of high-profile tech investors, but now it is feeling squeezed. first, qualcomm reporting second-quarter results that beat analyst expectations and revenue that topped estimates. a $1.34 earning per share. on revenue of $5.9 billion. go into my terminal, we will see that the bloomberg is showing you -- there it is, up almost three percentage points. clearly, we are seeing this movement even amid the ongoing court battle with apple. that was discussed in the

earnings report. joining us to break this down, anand srinivasan. anand, fascinating, numbers beating, revenue up about 5%, talk of networking and the internet of things. there was a clear apple effect. $1 billion of payments withheld by suppliers? anand: the near-term results don't matter, to be quite honest, caroline. we had good results. some china renders doing better than expected, offsetting some of the weakness from apple. in the fourth quarter, remember that they report royalty arrears -- royalties in arrears. we are talking about december payments now. the march quarter guidance is wider than expected, indicating that, if apple were to withhold payments, then revenue would be a little lighter and eps would be a little lighter as well. it's the ongoing effective apple that is going to have an impact on qualcomm over the next four

quarters and over the next two years. this litigation is going to take two years, mind you. the biggest issue is not even apple. if apple were to win against qualcomm, what does that do to the qualcomm royalty model? i think that is the crux of the question. if apple were to get a better deal from qualcomm, with that -- would that apply to all of its handset customers? that is an even bigger issue. and if apple were to win outright in court, then the value of the intellectual property to be based on the chip, not on the value of the handset, as qualcomm contends, then the royalty model is broken wide-open. caroline: defunct. what's fascinating is you're talking some of the risks. the market seems to be shrugging it off. the shares are rising after hours. i've got a chart on my bloomberg.

it shows you that only once have we seen shares pop after earnings in the past few quarters, and that was in the third quarter of 2016. usually, they fall, come what may. i want to get to the bottom of the optimism here. is there optimism in china in terms of growth? is there optimism elsewhere? anand: this is a near-term relief rally. i think the cloud overhang on qualcomm was pretty dark for a substantial period of time. the rhetoric was mostly one-sided and was pretty sharp. that said, none of this has changed. just because this one particular quarter they were slightly better than anticipated, in a quarter that didn't really have the full apple detriment, we should not take our eye off the ball with respect to the apple litigation. that is far and away the most important thing on the qualcomm story in the near and intermediate term, in our view.

caroline: you're right, as we dig into the bloomberg at how share prices have reacted in the past few months. a big tumble in january when they learned of these ongoing regulatory issues. what about capital return plans? are there any ways in which they can keep the shareholder a little bit happy, maybe bump up the share price from where we see it? anand: the capital return story is going to aid them some. most of their caches overseas, -- cash is overseas, so any sort of repatriation would help them substantially. those are two areas where they can make some hay. the -- is on track to be closed by the end of this year. that could change the optics of the company and change the revenue exposure, reduce it a little bit towards the handset market and increase it towards the auto market, where nxb is substantially exposed.

all these things are very nice, but again, i want to come back to the royalty model. even though the revenues are lower in that area, relative to the other revenues, the margin that the royalty business carries is upwards of 90%. so, the eps impact as a result of a dollar of royalty income is substantially bigger than anything else. so, unfortunately, as much as they would like to change the optics, i think that the most critical issue is the apple litigation. qualcomm has seen this before. this is not an unheard-of story for qualcomm. they have done this with nokia, samsung. there is precedent for them to have one -- won through the courts and in settlement of deals. the question is will they have the same result with apple. caroline: the question is how

long will this relief rally last. anand srinivasan, thank you very much. now, another company out with earnings, ebay's first quarter profit was $.49 per share on revenue of $2.2 billion. it gave a dimmer outlook in the current quarter it is trading in as it struggled with its turnaround. it gained almost 2 million active buyers in the past quarter, but it's up against an industry dominated by amazon. check in on my bloomberg. shares have been pretty volatile in after-hours trading. currently trading down one percentage point. they just peaked above the flat level. coming up, the life of an apple supplier is about to get tougher. details on the company's expansion of its designer components, next. this is bloomberg. ♪

caroline: in wednesday's trading, we saw a little bit of mixed trading action from the major trading averages, but there was one big laggard. let's go to abigail doolittle in new york with more. abigail: to your point about the trading action at the major averages, it was choppy. the dow and s&p 500 both finished down, the dow shedding more than 100 points. the lowest level since february. behind that, ibm. down about 5% on the day, it's worst day since june of last year during that big brexit selloff. the company did miss revenue estimates by about 1%.

bloomberg's analyst says much of this has to do with weakness in the legacy i.t. business and he expects it to continue. that's what wade on both the dow and s&p -- what weighed on both the dow and s&p 500. let's hop into the bloomberg and see what else is happening for the nasdaq. this is the mov function. on the right-hand side -- excuse me, the left-hand side, we see facebook up nearly 1%, the biggest point boost for the nasdaq on the day. trends remain "very strong." isurge, the surgical systems company, up more than 6%. a big beat. they also raised the view for procedure growth. that stock of more than 6% on the day. caroline: interesting movers i'm looking at how -- interesting movers. i'm looking at how asia was

down. take us into chip equipment stocks in the u.s. that shows the individual member-ranked returns. the results seem to be driving some of the uptick. can you talk us through it? abigail: break point. with that function, intuitive surgical, 10 court -- tencore, these are chip equipment companies. lam research put up a monster quarter. according to one analyst, they beat both topline and bottom-line estimates. this sector, the chip sector has been week in recent weeks -- been weak in recent weeks. it is seen as a leading tell.

dan russo, a technical analyst, thinks this is probably short-lived. pc's that stock potentially dropping by 5% or more -- he sees that stock potentially dropping by 5% or more. this is qualcomm. the chip company did report its second quarter after the bell. it beat both top and bottom line estimates, but this stock has had a really rough year. this is a downtrend. that area in yellow is basically congestion. it is breaking to the downside, suggesting that qualcomm, despite a little pop after hours, could drop further to the downside. i know anand srinivasan was just talking about how earnings are just completely eclipsed by the bigger issues the company is facing. this chart supports that qualcomm could have a bumpy ride ahead. caroline: bigger issues being tied up with apple and litigation issues. that do so much, abigail doolittle. brilliant analysis, as ever. earlier this month, apple

ditched a supplier. now, other suppliers seem to be suffering the same fate. for years, apple has developed its own processors. more recently, the tech giant is expanding into areas that need special chips designed in-house. this is just one more way for apple to maintain leverage over suppliers. joining us now to explain is bloomberg technology's alex webb, who covers all things apple. talk to us first about what sparked, perhaps, the initial wariness. alex: i think we have to clarify cause and effect has been developing its chips for a decade or so -- clarify cause and effect. apple has been developing its chips for a decade or so. what we have seen in the past tenet years is a huge consolidation in the industry. that fact has given it a fair amount of power. consolidation means there are fewer companies in the industry.

therefore, they have more price power over themselves, more power to negotiate with apple because there is less competition in the market. apple, because it's developing its own ships, regains a certain amount of leverage. we can go with our own in-house solutions unless you give us better prices. that might be a tactic they use. caroline: talk to us about where this is produced in-house. which specialties are they getting in on? who is most at risk? alex: we've seen a number of companies identified by analysts. at this stage, it is purely speculation. the investor community is wary. we've seen dialog semiconductor as a company which might be vulnerable because of a number of rmb locations apple is opening up in california and munich -- r&d locations apple is opening up in california and munich. they have a big employer base in germany, so they had in taking a lot of employees from there. they've also highlighted a company who makes some of the hardware which helps run your

touchscreen on your iphone. another consideration is cirrus logic, but less of a concern than the others. they make audio drivers. caroline: interesting. it's an interesting story that's happening at the same time as we are seeing samsung make more chips in-house. perhaps a bit of pressure on qualcomm. is this something we are going to see across the board? alex: it is something that nokia did back in the day as they got richer and richer. how do you spend that money? spending it on rmb is a good idea -- on r&d is a good idea. they have their own stores and everything. doing more of the fundamental technology in-house gives them a lot more control. the risk is -- i think apple is a long way from doing this, because they have a huge amount of money, far more than nokia did. nokia missed out on some of the innovations coming out of the

supplier community because they were setting up their own solutions. caroline: thank you very much, alex webb. now we will hear what microsoft cofounder bill gates says about brexit and how it could affect scientific research in the united kingdom. that's next. and we would like to bring to your attention are interactive tv function. find it at tv on the bloomberg. see any previous interviews. become part of the conversation by sending us instant messages during our shows. this is for subscribers only. check it out. this is bloomberg. ♪

caroline: celebrations for the fifth anniversary of the london declaration on neglected tropical diseases are underway in geneva, switzerland. they produced a landmark plan to

eliminate or control 10 of the world's 18 -- neglected tropical diseases by the end of the decade. bill gates helped kick off the event. manus cranny sat down with bill gates for an exclusive interview. they discussed the impact of u.s. taxes on innovation, the buzz over immigration, and the possible effects of brexit. take a listen. bill: tech structures -- tax structures -- you can't say they are unimportant. the basic idea of what's going on, whether it's drug companies coming up with new drugs or software, it's the potential for innovation. are you meeting basic needs people have to communicate, create, manage their business and things like that? so, you know, california is a very high tax location, yet silicon valley remains as a center of huge innovation, stronger today in terms of its share of digital innovation than at any time in history. so, i'm not downplaying tax issues, but what ceo's in tech companies wake up thinking about every day is how they are going to use ai and where does their

ai connect up to customer problems. manus: you mentioned your meeting in terms of informing the president and building his knowledge base. you talk about the threat of an insular america, an america with more immigration rules. how big is the threat of immigration change in the united states? is it america insular rather than america first? bill: america hasn't had an open door for immigration for a long time. we have a lot of propagated policies that have to do with bringing family members over -- complicated policies that have to do with bringing family members over. some skill programs, like the

h-1b, if you're feeling a job that could not otherwise be filled, it can do that. there is an uncertainty. if you want to grow jobs, bringing talent in, filling new roles, that's a net job -- people worried that you are lowering wages. having systems that differentiate between the job says egyptian -- job substitution piece versus building jobs around that unique talent -- the government will probably try to do that harder. the fact that it's all evaluated in this framework of jobs and economic growth, that's fine. high skills immigration actually can meet that test. educating somebody and having them leave the country where other jobs will be created around that person isn't a great jobs move.

manus: i have finished -- you, as a global technology man, how do you look at the u.k.? do you look at this as this is a long goodbye or this is an opportunity for the u.k.? what is the threat from brexit as you look at your vantage point? bill: the u.k., whether it's for microsoft where they have a huge lab, which does amazing work right next to cambridge, or for the foundation, where we have over $1 billion of active grants to institutions in the u.k. to help build new tools for us, it, after the united states, is by far the number two place with a huge distance to number three. so, maintaining that scientific excellence, which sometimes

involves foreign-born scientists coming in and joining teams there, and having the right type of r&d collaboration, the u.k. has been a huge net recipient of r&d dollars. i have been pleased that both the chancellor and the prime minister have said scientific leadership, creating good jobs, having the strength that is really fantastic and the u.k. -- that they are going to work to maintain that, because it would be a huge loss to the world and the u.k. if that wasn't done. it can be done. they have made it a bit more complicated. just the uncertainty of, ok, what will the rules be about people and pooling of money. some people are getting concerned about that. our foundation is going to be here 10 years from now, 20 years from now. we can be calm.

i'm sure we will get asked as these choices are being made how do you keep that very strong momentum, whether it's up in scotland, where livestock stuff is just unbelievable, the traditional universities -- like imperial oxford, london school -- anyway the u.k. , strength is there. i think they are being terrible -- careful to make sure that they are not dropping off on that. caroline: that was, of course, microsoft cofounder bill gates and manus cranny. aiming to create a google maps for health care. the google life sciences are is launching a four-year study. the study is aimed at connecting the dots to why people transition from being generally healthy to becoming sick. the symptom value-based company is working with partners, including duke university, to enroll 10,000 participants from diverse backgrounds at half a dozen study sites in carolina -- california and north carolina.

coming up day two of facebook's , conference. details on how they plan to help you hear through your skin. up next. this is bloomberg. ♪

>> it's 11:29 a.m. in hong kong and 1:29 p.m. in sydney. the fed says the u.s. economy continued growing a motorist to moderate pace in recent weeks, although consumer spending was mixed. the beige book says household purchases outside automobiles was softer. picture of the economy maintaining a steady expansion without the rapid take-up among consumers and businesses. a welcome boost with japan's both smashingort expectations. the economy ended the quarter with shipments overseas rising for a fourth consecutive month. exports jumped 12% from a year

earlier, doubled expectations while imports surged to almost 16%. the trade surplus was almost $5.6 billion in line with or cast. china continues to further the corporate and individual tax burden as part of a drive to boost consumption and support the economy. the state council led by premier li ka-shing says the changes should ease the tax burden by about 55 alien dollars. opec says produces are closer to ending the global oil glut and the cartel will decide next month if they will extend output curves beyond june. theking in abu dhabi, secretary-general said opec and its allies were committed to reducing inventories to boost prices. he also said the current restrictions are working and will prove effective.

global news 24 hours a day powered by more than 2600 journalists and analysts in more than 120 countries. this is bloomberg. >> asian investors trying to find their footing after most of the weekend has been characterized by risk-averse tenement, but look at what is going on in chinese stocks, seeing gains and losses there, just looking to extend its four-day drop, but again, it comes down to what leaders are saying where it comes to clamping down on trading in the market. take a look elsewhere. we do have a hong kong currency up about 3%, snapping a three-day drop and we had the kiwi rebounding from its drop. the japanese stock continuing to rise. electronics and automakers being propped up.

the yen also getting a boost from strong export figures, but energy producers in the doldrums after oil slumped overnight. financials, though, jumping in tokyo as u.s. treasury yields advanced on wednesday. caroline: this is "bloomberg technology." i'm caroline hyde. qualcomm continuing to gain after reporting earnings after the bell. the company's semiconductor unit was listed by demand in new markets. this helped to bolster sales in the second quarter. qualcomm's ceo says the company also did well in the chinese phone market. day two of facebook's f8 conference is underway. it kicked off tuesday with ceo mark zuckerberg detailing the

company's plans to dive deep into augmented reality. it has revealed its working on building a brain computer in space that will let you type with just your mind, without invasive implants. joining us to discuss, sarah frier, who is live from the conference. mind reading tech, hearing through your skin. tell us more about some of these new, slightly more, perhaps, crazy and announcements. sarah: the second day of f8 is where facebook tries to blow you away with all the crazy, innovative things they are thinking about. is this going to be a product in the next year? absolutely not. but the building -- this lab they started last year by hiring from google is working on ways to try to not tether us so much to our phones in the future, the next step of socializing may not

require us -- the first step is to make it easier to communicate telepathically. this is just one of the many things they are looking into. zuckerberg has been fascinated with this kind of technology for years. caroline: we also heard about new cameras, 360-degree cameras is something they unveiled through samsung a while ago, but they would be producing their own and handing them out free to anyone who wants one. sarah: every guest of the conference got a little 360-degree camera they can click on to their phone -- can clip onto their phone. there is a mega camera that facebook has been designing, this improvement to the camera they unveiled last year. it looks kind of like a black disco ball or bug eye. it allows you to take the phone, and when some of the watches it, they can move from the spot where they are in, and still get

a sense of the film, as opposed to where you have to be on a stationary plane. this is a big technological advancement. caroline: lastly, there was a long-term vision being spelled out for a.r., and, indeed, perhaps the cooler way to look. sarah: not the age of the google glass, clips onto your head and everyone looks like a dork. they think a.r. will not be widely accessible until you are wearing it in a way that is socially acceptable. nothing will be socially accessible if you cannot see the eyes of the person you're talking to. the lenses of these glasses of the future, which have not been developed yet, must be clear. facebook is giving us a little bit more insight into what their vision of the ideal future starts to look like in the 10-year, maybe even 20-year

timeframe. caroline: fascinating. we will be looking into it augmented reality even more. sticking with facebook, the social media giant's bet on a -- on augmented reality remains a major highlight of the conference, as we discussed. joining us is sunny dhillon. he focuses on seed investments and virtual and augmented reality. what an unveiling we have seen from facebook. talk to us about the opening of the ecosystem here. this is getting developers involved. sunny: i think the common belief for a long time was they were copying elements of snapchat, from the augmented reality perspective with the filters, the masks, the lenses. facebook famously bought a company called masquerade about a year-and-a-half ago that was all about putting the augmented reality masks on its own standalone app. facebook quietly bought them.

i think we are starting to see some of their technology open up. i think this is what's happening with facebook now. they will offer you the computer vision, the depth sensing, the simultaneous location for free, so that developers can build their masks and filters and augmented reality apps on top of the facebook platform. facebook becomes the app store for augmented reality brand sponsored advertising. caroline: in a way, does snapchat remain a legitimate competitor in the ar space? sunny: turning down the $3 billion offer, evan spiegel -- now it's $25 billion. a nice kick on valuation. i think gen-z and millennials -- you are still going to have a very young user base on

snapchat. it is novelty driven. it does not have a solid ar road ahead of it. facebook opening up this platform to third-party developers is key, because it means facebook doesn't have to develop the tier -- killer ar app itself. whereas snapchat was charging up to $800,000 a day for -- i think there was an ed sheeran lens or something during the promotion of his album that was targeted heavily within certain areas for a limited period of time. if you open this up, you give a lot of the tech away for free. you're raising a flag and saying come build with us. we want you hanging out here. anywhere that you are being social, we want you to do that with facebook. caroline: come build with us, come by with us -- come buy with us.

this offers a whole plethora of ways companies can now spend with facebook. sunny: yeah. other elements they have announced that f8 are largely focused on the platform of the messenger tool. they have a multifaceted approach to what they can offer you as a brand now. come engage with your audience on facebook through messenger with our bots. infiltrate various social communications between friends by inserting a bot that is organic to that conversation. try our facebook app install network. come get this new-to-monetize stuff. this is been learning more about what you are doing in the real world, and how can they better target you with brand dollars. caroline: augmented reality is something they have been pushing into potentially copying snapchat to an extent, but they have always been there from the sense of virtual reality. can you talk to us about those announcements as well? sunny: with virtual reality,

oculus is an amazing piece of technology, but it was a missed market opportunity. it was first to market. facebook got the venture capitalists all excited. we start investing in vr and ar. i think they recently announced something called spaces at f8, which is a way of us having 3-d avatars of ourselves being able to communicate, watch contents together, share photos, etc. a real presence. it's pretty cool. i tried it yesterday. they want to go cross-platform. they are not tying themselves to their own hardware, much in the way that apple often does with the os layer on its smartphone. i think we are is very exciting

for certain applications -- i think vr is very exciting for certain applications, such as cinematic storytelling. ar is the cash killer. that disrupts the world the same way that the smartphone did in 2008. caroline: i always learn something new with you coming on. thank you very much, sunny dhillon. now, a setback for a company that is delaying and scaling back the first full test of its prototype. this according to the wall street journal. hyperloop had plans to hold a public test of a prototype in late spring. several months past its original estimate. we spoke to the ceo earlier this month when he was optimistic about the future. >> we are very excited that, within the next couple of months, we are going to show the world that hyperloop is real. we are pretty excited. caroline: coming up, major tech firms are speaking out about the need for diversity, but the

numbers show little change. we will discuss what companies are doing to make their workforce more diverse. this is bloomberg. ♪

caroline: companies have grown more transparent about diversity. they have poured millions into initiatives with the aim of recruiting and retaining more women and minorities, but much of what they've done just hasn't worked. apple reported that in 22 -- in 2016, 30 2% of its employees were female, but look back over the last two years since the company started reporting these stats, apple's increase in female employees has been incremental. where do things stand now for tech firms, big and small, and what's being done to fix it? that was the topic of this week's "game plan" podcast. the host, bloomberg news

reporter rebecca greenfield joins me, as does ellen huet. who has been covering technology for several years. first of all, let's ask you, ellen, for some of the statistics. give us a sense of how little things have changed. ellen: you look at these numbers year-over-year and we see companies releasing their numbers year-over-year and you see changes of a percent here or there. companies are trying to slice and dice things in a way that makes them look good, so they often show percentages of the new hires they've made in the last year. what percentage of them was women? if you are alphabet, 60,000 employees, you could hire women and underrepresented minorities all day long and you wouldn't see a ton of change in the percentages of the company. it has been interesting to see how companies react to showing the same or similar statistics year after year. caroline: still more work to do. rebecca, can you tell us some of the inside facts of what they are trying to do, perhaps more innovative ways of bringing in

ethnic minorities, more females, and holding onto that talent? rebecca: something that was pretty en vogue has been this unconscious bias training, where people will come in and tell you how we are all biased in the workplace and it is not your fault, though we all have these biases. that was supposed to help these companies solve these problems, but it turns out unconscious bias training on its own doesn't really work. it makes people feel very defensive, even though it is not someone saying, oh, no, you are a bad person, but it does make people feel like they are called out. research has shown that girl -- bringing up biases in the workplace makes people accept them. that training is not working. there are some things, more technological things that these companies are hoping will work. new hiring or recruiting

techniques that they hope to get rid of some of the biases that happen when people are picking other people to work at their companies. caroline: perhaps -- i was listening to a podcast. maybe change the language. that can help to bring women on board, for example. what about the solution -- solutions you have seen work? which companies are really making inroads? ellen: seeming to make it work is hard, but there are companies that are public and vocal about what they have been trying to do. last year or maybe two years ago, we had facebook put out videos of what was their unconscious bias training modules, these videos that they were really encouraging other companies to watch them and try to figure out how they could implement them at their own companies. echoing what rebecca was saying, it is interesting to see how many companies really want to just check the box, like, oh, yeah, we did unconscious bias training. we have this new software we use in our hiring process that is supposed to eliminate bias, yet it's hard to know whether they actually work.

many companies jumped into wanting to implement these without actually testing what the effects might be. caroline: interesting looking at the statistics, showing how few black and latinos work in technology. is there any area of hope for and optimism lacqua thetalked about some of technology-focus areas and the way it could be working. are there any standouts that you have heard going through your podcast that you think there is opportunity to scale? rebecca: like i mentioned, hiring is a big place where these companies are hoping to move the needle. ellen mentioned it's hard to know what exactly works. but there are companies, for example -- it starts at the very beginning of the process. companies that will write jobs listings that will appeal to more diverse candidates. they found that certain words, for example, like, might appeal to men over women or certain races over others. they will have a software that reads resumes, so that the person reading the resume -- their bias doesn't come in. you go down from there.

the new move if you are really trying to fix this is a holistic approach from hiring throughout the entire employee lifecycle at the company. caroline: fascinating to see which geographies seem to be leading the way as well. wonderful to have you both on. i think we need to discuss it much more. thank you very much, bloomberg's ellen huet and rebecca greenfield. you can hear new episodes of "game plan" every wednesday on the bloomberg. be sure to catch up on the station on diversity with ellen pao and anita hill, professor of social policy, law, and william -- and women's study at brandeis university. that's on "bloomberg technology" this thursday. coming up, bloomberg gets its hands on a $400 you sir that raised millions -- $400 juicer that raised millions.

but now seems to be feeling the squeeze. we will explain next. and a program note. coming up on an exclusive thursday, interview with the dallas fed president. catch that conversation at 7:30 a.m. eastern. this is bloomberg. ♪

caroline: u.s. based juicera raised $120 million by convincing venture capitalists it could create the tesla of juicers. we got our hands on and to see if the price tag was really worth it. >> it is made by a startup based in san francisco. when the machine first launched, it costs $699. in january, the price dropped to $399. it makes juice by squeezing these packs of cutup juice -- fruit and vegetables. it uses up to four tons of force to get the juice out of their packs.

we decided to give them a test of our own. and after two minutes of squeezing, no expensive juice machine needed. caroline: that was the voice of bloomberg's ellen huet, who wrote the story, which is gaining major traction online and on the bloomberg. here to dig into it a little bit more, the co-author of the peace. -- of the piece. joining us live from new york. fantastic piece, fantastic reaction. this is backed by some standout vc's. they are perhaps a little bit embarrassed. >> huge venture capital group funds invested in this company. thrive, which is jared kushner's company. kleiner perkins. google ventures. all putting in about $120 million into juicero.

caroline: has there been any response in terms of how juicero is reacting to this? because this is such a punchy price tag. doesn't admit you don't really need this machine? -- does it admit you don't really need this machine? >> one investor did go on the record and did say he did figure out on his own that the bags could be squeezed, but our understanding from speaking with sources at the company and investors in the company is that it's an issue that has not been broached or discussed. perhaps the company does not see it as an issue. they would not go on the record with us. caroline: but the company also has a significant background in terms of design. it was meant to be a tesla for juicers. that thisd say machine has 400 parts, several gears, a scanner, a microprocessor giving it, it's high price tag -- giving it its high price tag. it used to be about $700. it dropped to about $400 in january. the company wants to be considered an innovative tech leader.

food tech is a huge topic right now. a lot of venture capital funds are pouring money into companies like impossible foods. juicero is one of them that really caught the eye of a lot of firms are in san francisco. caroline: maybe catching the eyes of firms and users for all the wrong reasons. great piece. i urge our viewers to watch it and read the story in depth on bloomberg.com. that does it for this edition of "bloomberg technology." remember, all episodes are now live streaming on twitter. 5:00 as out weekdays at p.m. in new york, 2:00 p.m. right here in san francisco. that's all for now. this is bloomberg. ♪

>> washington announces a review of the iran deal. nationally -- be sell assetsnts to after last year's $5 billion loss. the global is draining, but there more -- maybe more time to balance the market. >> the fed sees