alisa: i'm alisa parenti. you are watching "bloomberg technology." a judge has blocked a president trump order to withhold funding from so-called sanctuary cities or communities that limit cooperation with immigration authorities. the government may ask the court of appeals in san francisco to overturn the ruling. former national security adviser michael flynn could be prosecuted for failing to report payments from russia. the chairman of the house oversight committee says there's no evidence he cleared a trip or paid the secretary of state or the army. former acting attorney general sally yates will testify before a congressional committee on russian interference in the 2016 election.

the senate says she is scheduled for may 8 with former national director james clapper. president trump will sign an executive order on the antiquities act to review national monument designations by some of his predecessors. the law gives the president the authority to designate national monuments from federal land. derek jeter is one person who has won an option to buy the miami marlins. reportedly selling due to the expected to be named ambassador to france. global news 24 hours a day, powered by 2600 journalists and analysts, in more than 120 countries. i'm alisa parenti. this is bloomberg. "bloomberg technology," is next. ♪ caroline: i'm caroline hyde. this is "bloomberg technology."

coming up, uber sets the time and a place to officially test fly its floating taxis. we tell you how it all went down. plus, self driving is the future in phoenix. why arizona's capital city is ground zero for monetizing. and the nfl teams up with wearable tech. how players can cash in using their own health data. first, to our lead the rally in , stocks continue. the tech heavy nasdaq crossing a big milestone in the session. we are up 7/10 of 1% of an important figure. >> we are. especially for the tech heavy nasdaq closing above 6000. the last time the nasdaq closed above a big round number for the first time, 5000, it was back in

march of 2000. it has taken more than 17 years for nasdaq to close above another big round number. thisologically though, might be more of a psychological level as opposed to an indication more gains are ahead. driving the nasdaq about 6000 today we are looking at netflix, , baidu, and biogen above. -- among other winners. netflix is one of the top percentage performers, having its best day since last year. octoberwe were told this has to do with the company cost deal with baidu, helping netflix enter china the only major , market netflix has not been as of yet. and biogen, a big day. investors there really like the company's rare muscle disease drug, suggesting there could be more growth ahead. relative to the overall strength

we are seeing just days, weeks ago, there was talk about whether the reflation rally was reversing. let's hop into the bloomberg and take a look at the chart. these are the three major averages out of the election. we see a beautiful uptrend and the nasdaq in blue on the top, a leading the dow and s&p 500, of -- up 16%. lots of strength for stocks at the end of april. caroline: and it's across-the-board globally. we saw asia rally, europe followed, and the u.s. garnering these new highs. talk to us about the earnings season. we are seeing a lot of the big players we will hear from also hitting new highs. reporter: it's interesting you should say that, because our equity strategist at bloomberg told me earlier she thinks the reason the tech sector has resumed the uptrend is the positive earnings season. but relative to the nasdaq technology earnings reports to

come later this week we are , looking at lots of big names including alphabet and microsoft. both of those companies report on alphabet, everyone will be thursday. looking to see if the youtube ad issue affected growth. another said microsoft, it could be the best third fiscal quarter report ever on both cloud and server business. let's not forget amazon. amazon up in a big way, here today. they report on thursday as well. their last quarterly report -- estimates have been coming down for this report. our bloomberg intelligence analyst says it could lead to upside and we will be looking to see what the cloud business looks like. let's hop back into the bloomberg and take a look at a chart as to whether or not the strength in the nasdaq can continue. this is the nasdaq relative to the 200 day moving average. a momentum indicator. 11% above that, basically the

most over thee last three years. look at that rsi on the bottom. this one is about 70. it is not started to around back down but it may suggest around , the earnings period, perhaps some of the strength of the nasdaq could consolidate a little bit. something that may be healthy. caroline: bloomberg tech news reporter abigail doolittle, thank you. let's shift gears. the promise of flying cars inching towards reality. uber kicked off its elevate conference in dallas announcing it will test flying vehicles in dallas and dubai in three years. that's right. chief productr's officer says the public will get to live in the era of flying cars. three years until they start testing, but this is still pretty ambitious. whatever timeline you are looking at. now,other three years from they will try to have the service going. i think flying cars is one of the technologies that feels like it is right around the horizon.

it will be interesting to see if uber can execute on it. they are striking out of partnerships and hedging their bets on what type of vertical takeoff vehicles -- trying to create the infrastructure and ecosystem to make it happen. infrastructure, ecosystem, and also talent. they had been hiring from nasa. how important was his particular -- this particular hire? >> i think it is important. it is not key to their business --at a time for pr crisis is ses, we are convening to create flying cars. caroline: certainly, another moonshot helps in the valuation perspective, as well as competition. i was speaking to brad stone earlier. we were talking about kitty hawk.

everyone wants in on the flying car. >> hard to believe it is a coincidence that video from kitty hawk showing their flying cars working. it came out just yesterday ahead of uber's big announcement. it's not just self driving cars. in this case, it is larry page alphabet's ceo, but this inherent competition between alphabet and google versus uber. we see it on self driving and now flying cars. caroline: the videos are spectacular. none of them really look like a car to me at the moment. they look like motorbikes. >> that's why everyone takes that calls them vertical takeoff and landing. it is a lot of blades safely packaged in a small vehicle that looks nothing like a car. we are just attached to that idea. caroline: "back to the future." >> exactly.

it is a san francisco to san jose idea. something you don't necessarily want to take a flight for, you are not replacing it, it is like a uber trip. caroline: san jose to san francisco in 15 minutes would be a joy for some of the vc community. -- commuters out there. this is a three day event in dallas from uber. what else are we going to seem? it really is the great and good from the industry trying to think forward. partnerships with the manufacturers in dallas and dubai. then it is batteries so they can try and better charge cars, and even the real estate creating partnerships. the cars would literally land here. it is trying to bring a lot of people together. i think they have five manufacturers they partner with and there will probably be more. uber can bring people together and have organizational powers -- prowess with these players trying to build flying cars, and

they will contribute to make an -- making it happen. they benefit when they have the network at the end of the day. you call the car on their app, and they make money without doing the heavy lifting in terms of research and development. caroline: what is first, autonomous or flying? thank you very much from "bloomberg technology." we will be able to continue monitoring events out of the uber elevate conference this week. another story we are watching, alphabet's self driving vehicle pairing up with the public. letting residents in phoenix test out the of thomas vehicles. they had been testing out self driving tech for nearly 10 years. sticking to that theme, nissan has joined bmw and volkswagen and allowing the driving data collected by chips to be used in a collective map. they have been lobbying traditional manufacturers to

install and share the data. called then has gathered technology the missing piece of fully autonomous driving. coming up, nfl players can sell their health data. the technology behind it, and the money to be made, next. a reminder all episodes of "bloomberg technology," are live streaming on twitter. check us out weekdays at 5:00 p.m. in new york in 2:00 p.m. in san francisco. this is bloomberg. ♪

caroline: the company is taking its tech talents to the nfl. the fitness wearable analyzes data and helps athletes in training.

this partnership is another way for athletes to score big. compiling the data gives them the ability to sell it. why sell personal health information? the man behind it, whoop ceo joins us. welcome to bloomberg technology. you are pairing up with the nfl players association, co-owning their data. talk to us about the business opportunities here. >> our core mission at whoop is to empower athletes. meeting with the nfl players association and understanding their needs, especially around player safety and health, we felt there was an opportunity to partner. the nfl players association has become an investor in whoop. we are distributing whoop to every incoming and current player in the nfl. this is the first time a pro sports league has partnered with a wearable technology company. it will be exciting to see the data and ultimately improve

player safety. caroline: player safety paramount, but talk to us about the other area the data will be used. i'm imagining those who want to analyze how much sleep one of the players is getting, how quickly they are recovering, and the selling of it at the end. >> we are going to work really close with the nfl players association and the players to ultimately collect and control the data. beyond that, to look at the commercialization. to your point, you can imagine a lot of potential buyers of this data. you think about broadcasters and the engagement they could create with fans talk about the recovery of players before games. you've got the offensive line peaking physically and the defensive line rundown, how can that affect the quarterbacks passer rating? there's a lot of interesting ways a broadcaster could be

talking about this information. also, if you think beyond that, fantasy football is becoming a really popular industry. how can the data be used to empower fantasy football and connect with fans? beyond those industries, there's a whole host of health applications in terms of having the first data set of its kind continuously around professional athletes. in the process, as this data gets more personal, it also gets much more lucrative. what's unique about this partnership with the nfl pa is it will give players the opportunity to generate meaningful revenue from the value of their data. caroline: they can springboard off of it. this is not the first time significant athletes have used whoop. at the rio olympics it was employed. we have seen it in baseball. but the nba has not liked it. why not more commercialization or sports teams wanting to send

-- sign this sort of deal? reporter: i think the nfl pa was pretty innovative and forward thinking about where this technology can go for the game. i think every league and the players association needs to decide for themselves what is the right process to evaluate technology. we went through a very rigorous competition with the nfl players association, and they had just formed a group called one team collective. it was a technology advisory group. hundreds of companies apply to work with them and ultimately five pitched to them. we wanted to have the ability to go into partnership discussion. you will see the other players associations probably take notice of the deal. we are looking forward to having more conversations there, and those conversations have begun. at the league level as well it's , an opportunity to connect

better with fans, an opportunity to keep players in the game for a longer period of time when they can understand their health. i think everyone stands to benefit, in my opinion, from this technology and the data. caroline: what about others wanting in? and thinking of fitbit or job on. are we going to see other companies wearable devices , trying to offer themselves to sports teams? >> first and foremost, the technology has to be able to understand the athlete's daily lifestyle. what makes whoop unique is the focus on recovery. we can tell an athlete how prepared their body is for strain or to perform, and we do a lot to optimize around the rate of recovery. what are you doing the other 20 hours of the day to perform better as an athlete? that's a story that hasn't been told yet in sports. it is the real differentiator in this deal, because that data, the other 20 hours of the day when the athlete is not playing,

that is the athlete's data. we are collecting that data for the first time and giving the athlete the ability to monetize it. that is what is so special about the deal. caroline: we will see what kind of opportunities arrive. whoop ceo, thank you for having -- being with us. a story out of france, presidential runoff candidate emmanuel macron has been hit repeatedly by cyberattacks. similar to those used by the hacked democratic party. that is according to trend micro, which blames the attacks on a group that has hit more than a dozen countries. they have linked it to moscow, but trend micro has-- definitive proof of russian involvement. coming up, weibo has run rampant in rural china, helping businesses. we will hear exclusively from a ceo, next. you can find our tv function at

tv on the bloomberg. you can watch us live in see previous interviews from our television coverage and dive into any of the securities are -- or bloomberg functions we talk about. this is for subscribers only. check it out, tv . this is bloomberg. ♪

caroline: now a story we are watching for you. remember when alibaba's jack ma pledged to create one million jobs in the u.s., working with president trump? there is an update. he announced the launch of a new program to make good on the pledge. alibaba will hold a conference in detroit in june to teach u.s. companies how to celtic companies in china. this is the first part of a larger plan to ller small businesses to work with alibaba.

weibo is commonly known as china's twitter. its parent company has enjoyed exploding revenue growth over the last year and the chinese telecom giant says that is largely due to -- due to the rapid use -- uptake of weibo in rural areas. we spoke with the ceo about what he plans to keep driving forward. >> last year we grew independent revenue by 110%. that is actually very big. at that moment it is continuing this year. you will see there was still be significant growth. to a lesser extent to other spaces. >> weibo, the messaging service that provides so much of your revenue stream, you've done a very successful job in growing weibo's users.

how much more growth have you got following that strategy where are the new markets? , >> we will still grow faster than most competitors in user growth, but our overall basis, the market is slowing down. we will focus on time spent in competition. products andase more diversification into our offerings, especially in the video area. you can see that will have tremendous growth in terms of video usage in short media last year, and tremendous growth of usage in live streaming. this year, we just started beta testing video stories similar to what snapchat has. this is the area we will be focused on. video is the key for future growth. >> you said you think there is too much money flooding into the tech sector. are you suggesting there are bubbles in china's tech sector, and if so, where?

>> it's everywhere. not just one particular area. i was talking about the internet in general. especially in the last five or six years, we see a tremendous amount of money pouring into the market, whether from vc, foreign funds, or local funds. there's too much money. whenever there's a new concept emerge, for example live streaming, for example news app, or the so-called shared economy like the uber model, there are hundreds of companies being treated. in theory, these companies will never be successful. but everybody, whenever there's a new concept, they think it will work. they don't want to miss it. there's a lot of money pouring into creating new companies and businesses.

the result is that in a huge competition in terms of market share, you have to put in cash to get the market share to be bigger. a lot of it is irrational. caroline: charles chou, sina chairman. if you like bloomberg news, check us out on the radio. you can listen on the bloomberg news radio app, bloomberg.com, and in the u.s. on sirius xm. this is bloomberg. ♪ >> i am yvonne man with the

latest first word news. china's leaders say they will approve support for the real economy while maintaining prudent monetary policy and a proactive fiscal chance. growth accelerated in the first quarter, accelerated by domestic demand. there are signs the market is recovering. selling below 4% since the first time in 2002. they were trying to cut jobs in industries with excess capacity. the first billion in of the year. the largest ship contracts since three years. shipson orders for 18

this month alone. they're optimistic more will follow. shares of extended since the end of last month. the japanese reconstruction minister has resigned over remarks he made over the devastating 2011 earthquake and tsunami. he said it was "good that the disaster happened," he later retracted that, saying it would have been far worse if the earthquake had been around tokyo. prime minister shinzo abe condemned to the comment. global news 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. i am yvonne man, this is bloomberg. >> that stock rally in asia kicking out as global shares are at an all-time high. as dave pointed out, the global market is worth trip -- $50 trillion now. mid-2015 levels, benchmarks trading above key psychological

levels. we have the nikkei 225 coming up 8/10 of 1% higher. focusing on hong kong, we have the hang seng recovering from a two-week slide helped along by china stocks as well as jobs in chinese banks and insurers writing on the recent surge in chinese bond yields. leading gains when it comes to the share market. here after6% canceling its a 1.5 billion yuan bond sale. they turned around property sales, as well. returning to this function here, look at the bond space. must -- much comfort from the latest cpi data. that is also driving the aussie dollar. the taiwanese dollar breaking below the 30 level. it has not been around this mark since september of 2014. the hong kong dollar the weakest in several months.

the ringgit, that is looking at it is breaking past consolidation phase for the past five months. ♪ caroline: this is "bloomberg technology," i am caroline hyde. as we discussed at the top of the hour, it was another banner day if you are long equities. sincest today performance the nasdaq closing above 6000 november. for the first time ever. at large coryor johnson has been looking at all the key movers of the day. it is fascinating because we have a cyclical earnings season upon us at the same time as this crescendo back into tech stocks, t-mobile was in interesting one fighting against at&t. we have yet another mobile company coming out with numbers. it was not pretty for at&t.

cory: the biggest story in technology right now is the big change going on in telecommunications. the reason we care about earnings is because it lets us see what companies are actually doing. instead of what their press releases announce. what we have seen from verizon last week and t-mobile yesterday, at&t today, a dramatic shift in the business. at&t's numbers the stock after , hours surged initially, then it was down. we saw the same with t-mobile yesterday. the stock did not move a lot and they had a much more significant report. the biggest change from at&t was the same thing we saw from verizon last week, which is the number of subscribers shrunk, and the postpaid subs shrunk. yes it is a small percentage 0.3%, but a very dramatic change. why is it happening? because of all the things t-mobile is forcing on the industry, which is changes by unlimited data, the ability to switch between phones, things carriers refused to do in the past.

it wasn't too long ago you only had the iphone on at&t. palm phones were available to other carriers exclusively. that battle let carriers create a moat around users. now users can get whatever phone they want and don't want to pay for data. they are willing to jump from carrier to carrier. the result is subscriber losses big time. big subscriber losses as -- the at at&t. the post-market trade might not tell us a lot about this. but jon leger out there today on his instagram saying holy -- i won't say everything he said, because i want to keep my job, and he is not volunteered to pay my fcc fines yet, but he said holy whenever, at&t missed consensus by 100,000. i wonder where they went? they went to t-mobile. you have consumers willing to move around here. more volatility introduced to

the business model. caroline: it's interesting you are mentioning apple. one of the key movers in europe was an apple supplier. they were swiss-listed, austrian-based and the volume on the stock was phenomenal. we are seeing up 20% in trading. again, down earnings, down to how we are seeing the overall backlog of orders. this is a company not just depending on apple. they have samsung, 3-d sensors, autonomous vehicles as well. i am loving ams in europe. cory: it hardly trades at all in the u.s. it has not traded in many days, maybe a few hundred shares. caroline: it is a small stock, but one that moves significantly on the back of its earnings, and on the back of china. netflix, another record. cory: netflix is a stock that is not a very big company in terms of revenues, but moving fantastically with the announcement that reed hastings has talked about for many quarters. saying they will finally be in

china, they struck a deal with the company associated with baidu. the stock surged tremendously. very positive on the market. shares of netflix up over 5%. the growth story for netflix has been about international growth. international has become a big part of the company. the question is, where can they go next? maybe china is possible. caroline: lastly, texas instruments keeping an eye on the chipmaker. it is that a 2000 high. cory: they are hitting on also -- texas instruments off to the races in terms of revenue growth. the big story is the change. texas instruments growth rate turning around from a shrinking business to a growing business into the double digits, 13% revenue growth on year-over-year basis. what that means is the stock continues to benefit from strong results. caroline: up 40% in the past year. what a whirlwind. cory johnson, thank you very much.

it'll be over the rest of earnings season for us. about a quarter of the nasdaq has come so far. a german company reported sales topping analysts estimates for the fourth straight week. businesses are spending more on cloud computing software. and a new version of its suite. bloomberg matt miller and guy johnson spoke to the cfo from headquarters in germany. they started by asking how the business software company is faring in one of the top markets, the u.s. take a listen. u.s. in particular did remarkably well with double-digit growth both in software licenses in the cloud. so we are off to a strong march. emerging markets, it is good news for s.a.p. >> that is your established market established products , doing well. what about the new s4 suite?

how is that running? how many people are running it in production versus testing, and what is your goal for getting customers to hop on the s4 suite? >> we had a remarkable first quarter as well. we were up in significant double digits. 0 on s4 more than 580 now. it has a fortifying effect as customers come back as references, spreading the news to other prospects. s4see our growth rates in hana accelerating. there one of the reasons our software license is growing. s4 hana more importantly also invigorates growth across the entire portfolio, including the cloud solutions.

you can see this from the fact our order entry from deals above the 5 million euro mark was actually up from 17% of total revenues in q1 2016 to 27% q1 2017. that is what i call a cross-fortifying effect across our entire portfolio. >> good morning, i am calling from london. what would a 50% u.s. corporation tax rate mean for s.a.p.? >> it would mean a lower effective tax rate, as our business is growing in the u.s. any lowering of the corporate tax rate would be beneficial to s.a.p. we had a good performance in q1 from an effective tax rate perspective. we have remained a lower than in q1 of let's see what the future 2016. brings. i think there's still a lot of time that needs to pass until we

see entirely clear u.s. tax reforms. but certainly any reduction in the corporate tax rate would also benefit s.a.p. >> put a change in the way you invest in the business geographically? >> i would say we have always been very committed to the u.s., not only has a distribution market, but also as a research and development center. we have about 19,000 employees in the u.s. and we continue to invest in our fast growing cloud assayed that are predominantly in the u.s.. we double down on areas like success factors, hr cloud they are seeing a lot of additional investment. we are looking to continue this and believe with a friendly environment, both from a an investment climate perspective as well as the surrounding regulatory conditions, there is no reason to hold back. we are actually quite bullish about the american market.

caroline: that was the s.a.p. cfo. in the meantime, the ceo of ericsson is promising to step up efforts to cut costs and get rid of unprofitable contrast. -- contracts. in a bid to revive the struggling swedish network provider, they promise to get rid of more than $1 billion in unprofitable networks. >> we are very competitive with our new radio platform that was introduced about a year ago. we have said we will target a 50% penetration for this year, and are well on track to do that. caroline: ericsson announced he would take over as ceo on october 26. since then the stock has gained , 28%. coming up, tim cook heading to space to find talent for the next augmented reality project. more details next. this is bloomberg. ♪ caroline: google is attempting

to combat the circulation of fake news. the internet giant announced their rolling out changes to search results. changes will include alterations that choose which websites surface in response to a query. afterok has taken heat the presidential election. many claim both companies did not do enough to protect users from misleading information, propaganda, and fake news. apple looks to space for the next augmented reality project. the silicon valley hired a nasa specialist to help. this is part of tim cook's vision to bring ar hardware to

the market as soon as next year. you helped bring this to our isention, the fact that ar the next big frontier. they have to go to space to get the next talent. >> they have been building up this team. they are building this ar team with the goal of functionality to the iphone with wearables. now they are extending that with the higher of director jeff norris, known for his work with ar in space. inyou can make it work caroline: hello some of the space, you can make it work on earth. mindbending things he's working on. mark: he worked on putting hololenses on the heads of astronauts in the international space station. microsoft's mixed reality headsets. they can come up with new applications for nasa to use it to improve scientific

discoveries on mars. he worked on the mars rover as one of his first projects at nasa. that was almost 20 years ago. more recently he used ar and vr to allow people on the ground that work for nasa to feel like they are actually in space on mars and control things through the headsets. caroline: it shows the focus apple has on augmented reality. what about the size of the team? i'm seeing analysts saying there this is big. could be 1000 engineers dedicated to this. mark: our report said there are several hundred people working on it. i do not know if thousands is correct. maybe been hit the 1000 number if they talk about people from other teams contributing, but i don't think the core team is above certainly they are going 1000. to all ends of the world, all ends of the atmosphere, the solar system -- to use a pun --

to get people familiar with ar on this project. it is similar to what they did when they sold the apple watch. they hired all sorts of people from all projects. caroline: it's not just a figurehead of jeff norris. mike rothwell is spearheading this. there is talent across the board. mark: they hired people from oculus, microsoft. the graphics industry, this organization in new zealand helped create graphics for lord of the rings and other movies. it really contributes a lot to ar, having the right graphics for user interfaces, maybe gaming. fromhave specialists across every industry can think of that involves ar on this team. caroline: fascinating. i know you will be all over every inch of the way, bringing augmented reality to reality. thank you. coming up, show business could be close to its first shut down in a decade. the details behind the writers guild of america writers strike. this is bloomberg. ♪ caroline: it may be bad news

for tv and movie lovers. the writers guild of america has started a strike that could start as soon as next week. the current contract expires monday of next week, and if in agreement is not met, businesses could be hit hard. bring us up to speed on what writers are feeling. last night, we got the votes results. an overwhelming turnout from the 12,000 members of the writers guild across america voting for strike action. they basically want better compensation for their work in the tv and film business, which has changed radically over the past several years. particularly that thing at the heart of this is how they get paid for tv shows, for example.

over the past several years we have seen a digital shift for digital distributors, which have much shorter series of shows. instead of 20 episode seasons of your favorite show, they might be less than 14 episodes, but writers are getting paid the same and for less work, and you are hearing about more burdens put on writers like exclusivity for shows. it freezes them out of writing for other opportunities. that's what the writers are pushing for. caroline: i see. and the timing is pretty precarious. or could indeed be. we have upfront coming up. it is a key time that cable companies start selling to advertisers. how much could this crimp advertising in cable? >> talking to analysts this morning, i got off the phone with one is says it depends how long the writers strike goes on

for. there were negotiations between the writers guild and the association that represents major media companies like walt disney and cbs. they have a several weeks to try to come to a compromise. if they do not there will be a , walkout. sorry, not several weeks, several days. it depends how long. there's already talk like shows like "the walking dead," being affected, where you see a season split across a year. hollywood is a busy place. there is so much more content produced to fill out so many platforms like netflix and amazon. if you think about the shows across those let alone on , broadcast networks, it is a huge pipeline, and also hollywood movies pumping out installment after installment of blockbuster films. writers have a crucial role in hollywood and they are using

their leverage. caroline: very briefly, i am thinking of when this happened last, 2007. how could it be different? if they did sacrifice millions in payments, like they did in 2007? the numbers i have looked at say the writers lost nearly $300 million in compensation from work they lost. but the industry itself, there were estimates that say the impact was $2 billion. the repercussions can be huge. some are still trying to repay loans. caroline: fascinating. we will see if it comes down to the wire. we will tune in with you. twitter is set to report earnings before wednesday's u.s. opening. the social media company may be the preferred communications tool for president trump, but it is facing its third revenue

-- first revenue decline since going public. scarlet fu took a look at twitter with the latest edition of the numbers don't lie. >> twitter stock, the white line, has been on a steady decline. the blue line is revenue, has staggered to a 1% gain a last quarter. so far, things have not improved since a jack dorsey took over as ceo in 2015. revenue growth is not forecast to turn positive until 2018. analysts expect a 14% drop in the first quarter of the fiscal year. dorsey originally set 2017 at the year twitter would stop losing money. analysts do not expected to be profitable anytime soon. twitter says it's focused on making progress. sales headwinds come as user growth stalls. data shows twitter app users have started falling from december through february. the question is, to what extent twitter's numbers reflect this

stagnation. confidencedvertiser as marketers it shifted spending away from twitter. competition from instagram and the snapchat may cause twitter's share of ad spending to drop. one study shows 11% of surveyed global marketers plan to reduce their spending on twitter. that has wall street worried. of the big u.s. tech names twitter has the third lowest , percentage of analyst by ratings. disney and others have backed away from a deal with twitter. the problem is perspective spectiveective -- pro buyers may not see a clear return on investment since twitter has not been able to revive user growth. caroline: that was bloomberg's scarlet fu. of course we will be all over , those numbers tomorrow. that does it for this edition of "bloomberg technology." we will have full coverage of twitter's earnings results, plus an all-important interview with drew houston, ceo of dropbox.

you do not want to miss it. all episodes of bloomberg technology are live streaming on twitter. check us out at bloomberg tech tv. this is bloomberg. ♪

♪ yousef: president trump repairs delay office tax proposals. he wants a 10% levy on offshore corporate or -- corporate earnings. a 13 yearia had absence with a license to offer a full range of financial services. rbs it may be on the way out. it is planning to merge its unit , having tried for years to sell it.