longtime french to erase the affordable care act. in the senate it is not expected to come to a vote in its current form. a one point joining dollars spending bill with no provisions for president trump's priorities. trump is excepted to sign the bill, which funds the government through september 30. the president says he will make good on his campaign promise to bans groupsaw" that from endorsing religious candidates. he says his first trip as a head of state will include stops in saudi arabia, israel, and the vatican, where he will meet with pope francis. he will move on for visits to nato and a summit in italy. include meetings

with muslim leaders run the world. powered by 2600 journalists and analysts in 120 countries. this is bloomberg. "bloomberg technology" is next. ♪ emily: coming up, big media comes up small on and revenue in the first quarter. our roundtable discussion. plus, banking on britain. whyred ceo sarah frier on the payment of any circles the u.k. as its starting point of european expansion. two of the world's biggest retailers prepare for digital war. acquisition spree

may be the mlt takedown amazon. media companies are getting clobbered with ad revenue emerging as a trend. cbs reported its results after the bell, revenue totaling $3.4 billion. that is a beat. still the fear of core cutting is intensifying. pay-tv subscribers are moving online. let's break down cbs first. how are they bucking or reinforcing some of these trends? >> cbs had pretty good numbers today. they beat on the bottom and top line. when you strip out the super bowl and other top line items, they say that revenue was down just slightly. they are also feeling the impacts of a slowing advertising environment. anything -- they are benefiting from other revenue streams. they are licensing tv content to

other players like netflix domestically and internationally. they have had good revenue from the licensing side of the business. they are the most bullish on the advertising outlook into the upfront season in a couple weeks. emily: our bloomberg news media reporter is joining us now. i want to ask you about this loss in subscribers. we are seeing an impact on the stocks. cord cutting has been around for the last several years. why are investors now so spooked by this? as we saw in the first quarter, it appears to be accelerating again. we just saw it -- this is the worst first quarter for paid tv subscribers -- atv distributors -- paid tv distributors. this is something that investors look closely at, cord cutting.

in the past quarter it has become more of an issue. emily: in the meantime, hulu, dish, sony, youtube, are convinced they can lure customers back by a slimmer tv package. our customers going to buy in? paul: that remains to be seen. i think the expectation is for the content company, the viacoms and time warners of the world, they believe they will come out in just fine shape going forward, as long as they can get paid by whomever is carrying their service, whether it is a traditional cable company like comcast or a new player like netflix. they need to make sure they get paid every step of the way by whoever distributes their

content. emily: we are seeing drops in and revenue at time warner, amc network. it is sometimes a vicious cycle. what is behind this? say therexecutives are broader economic concerns that are coughing -- that are causing advertisers to hold back. tv and rates are declining. the tv networks are trying to charge higher prices for commercials, but advertisers are saying, you are charging me higher rates, but i am reaching fewer viewers. we are seeing those higher commercials are not making up for the fact that ratings continue to decline. it is also related to the tv industry itself. emily: what about uncertainty over president trump's policies? is that at play? paul: i think it is. we have heard from the global

advertising agencies. one of the largest in the world cited uncertainty around the new administration as one of the reasons why the north american market for them was weak in the first quarter. a lot of advertisers are sitting on the sidelines with their discretionary advertising budgets. they want to see how things shake out in terms of u.s. economic policy. the question is, will they come back in the year? that is why the upfront selling season, where the networks sell most of their advertising inventory, and it will be an important time for these big media companies as to the health of advertising in the market. emily: meantime up and comers like netflix are spending billions of dollars on original content. there are more original shows on

these streaming companies that i can keep up with. is it going to pay off or will there be some kind of comeuppance? gerry: we are starting to see some of these cable networks that were not big into original series are now trying to create more original shows. there have been a few examples where it hasn't worked out for them and they have stepped back and. -- back a bit. it is difficult to make scripted shows. the television networks are trying to keep up. there have been a few immediate executives sounding the alarm on this, saying that we may be reaching peak tv, that the economics of the television industry can't sustain this. this is because the viewers are getting fragmented in many ways. the advertising is not there like it used to be. emily: obviously something we

will continue to follow. thank you both. facebook has backed away from the pricey venture of life streaming sporting events. speaking on wednesdays earning call, mark zuckerberg said the plan was to pay for content by sharing and revenue. the league rejected that model, planning to sell rights for lucrative fees. amazon agreed to pay $50 million for nfl 10 thursday night games. verizon will pay $24 million to stream just one nfl game. analysts say square has hit its weak spot with earnings wednesday. we hear from square cfo. bloomberg tech is livestreaming on twitter. 2:00 p.m. in san francisco. this is bloomberg. ♪

emily: square climbed to an intraday high after reporting better than expected first-quarter results. the company wooed larger merchants. still analysts are skeptical about long-term growth. the company processed $13.6 billion in payments this quarter, up 13% year-over-year. i caught up with cfo sarah friar and asked if that rapid growth rate could keep up. sarah: there are a lot of growth drivers in front of us. i would never want to undersell the core. what we do in terms of small businesses and micro merchants coming onto the scene, still plenty of opportunities.

we are starting to move up markets. as the product becomes more feature full, this is resonating with larger businesses. i mentioned that u.k., but we are in five countries total. it is the other products we have built around our ecosystem that are starting to gain momentum -- capital, cash, and so forth. emily: what have you learned from your launch in the u.k. in the midst of brexit? sarah: we love the u.k. market. 5.5 million small businesses. an incredible lifeblood that they generate. similar to what we see in the u.s., half of them don't accept don'ts, so we know -- accept credit cards, so we know they are missing a sale. what is different for us in the u.k. launch is that we launched with a full set of products.

ouroduct like invoices, whole api filled with square platform, so you can be online and off-line. is we aree learning seeing businesses of all sizes coming to square from the beginning. emily: what are the biggest risk factors with international expansion? sarah: ultimately making sure we maintain our culture and the brand we have built strongly in the u.s. as soon as you are at a distant, you make sure that that culture is strong. you want a strong maintaining of the culture and the value, but you also have to allow international markets to be a little different. i was just in australia this quarter. leans toalian market being a more quirky, a bit more competitive in how they brand,

something that we probably would not do in the u.s. but are more comfortable doing in australia. we have to allow our country managers the leeway to grow their market. emily: how far market does square want to go? -- far up market does square want to go? we know that starbucks is off the table. would you get to a point like that? to make surey is we do it in a more methodical move up market. it seems like bigger customers like the small guys come to us. the key is making sure that we are not customizing software for bigger companies. this is where the api platform comes into its own. if you are a merchant and want to do something innovative and , square can work really well them to but we need

feed back into the system. they cannot rip and replace all at once. we are not at that scale get at square. emily: between apple pay and paypal -- what does this look like in two years? sarah: there are market trends that are holding all of us. the shift to using electronic payment and card instead of cass and check. the in the last five years u.s. has made a big shift there. thinking back to signs that say we are cash only. that is becoming less and less viable. are going in and they don't have cash on them. u.s. amazing to me in the how low the penetration is of

contactless payments. that, but itlow to will happen. it is an inevitability. when i look at the environment opening up, i think that is good for all of us in the technology excepthelping the seller anything, and having the buyer have a unique experience. emily: you mentioned caviar. square once tried to sell caviar, but it seems very much on the table in terms of something you are building out. what is the future of caviar, and will we see more of it? sarah: it is reminding the strategy of why. when we look at the vertical of food, square is very strong going into quick service restaurants. when we go into full-service restaurants, we do not that we serve that category. delivery was one of the things they needed to never miss a

sale. we bought caviar at the time with the idea that we wanted a whole ecosystem of restaurants. we wanted to jump ahead a little. it does delivery. we moved in to pick up this quarter. slowly the point of sale and payments piece is becoming fully featured enough that a restaurant can fully use it. it goes back to the strategy of being a technology platform for food delivery and pickup, not just, why are you in the food business? emily: will we see more acquisitions along those lines? we always want to keep flexible of the across-the-board. in the quarter we raised the convertible debt instrument. $40 million on the balance sheet. i got asked why. nothing imminent, but i just

want to make sure that square has the flex ability to grow as a business. we can also be hyper opportunistic. the debt market has not seen a lot in action. with that balance sheet we can aep looking at the m and landscape. if we see some with a good return, we won't be shy of that either. emily: that was square cfo sarah friar. the paris prosecutor office investigating whether fake news is investigating -- is influencing sunday's election in france. candidate emmanuel macron filed a lawsuit. a report estimates one quarter frenchlinks shared about elections are likely fabricated stories. coming up, inside wi-fi provider has seen a surge since last

quarter and has signed a deal with nine satellite providers to keep up with the pace. we will hear from ceo michael small next. this is bloomberg. ♪

emily: airline wi-fi provider gogo shares went soaring after the company reported q1 results. nearly 7%, topping expectations. the company just struck a deal with airbus. however quality remains a concern. gogo uses air to ground network that offer speeds of 10 megabits per second, which is fairly slow. the companies looking to change that. an exclusive interview with michael small. thank you so much for joining us. you have had a strong report. satellitethat the technology that your competitors use is better. what are you doing to work on quality?

michael: we are rapidly deploying our proprietary solution delivering industry-leading performance. it is fast and it works everywhere around the globe and it works all the time. customers are loving it wherever we deploy it. we are on 170 aircraft with it today and expect to deploy aircraft.00 to 1500 t compared tos i the current technology? michael: we have a proprietary antenna design that goes on top of the plane that points to the satellite. it is just a better architecture. rounder,are larger and so therefore we can get higher speeds more consistently over the globe to passengers. we have seen full planes use it at the same time, doing whatever

they want -- streaming or browsing -- two rave reviews repeatedly. emily: i just flew from san francisco to new york, and i know every experience is different. the credit card i initially used was rejected. when i landed there were five charges that i had to then reverse. the quality was very poor. websites took an incredible amount of time to load. some did not load at all. on the way back my critic artwork, but it was so slow that i just turned off my computer and turn on a movie. how do you address these things? well, i explained we need to bring more bandwidth to the sky. i don't know if you are on our flight or some other flight -- regardless, we need to get more capacity. era whereering in

capacity is more bountiful. -- peak atpeek at 10 10 megabits per second, but now we have a technology capable of delivering 100 megabits per second. not only is it faster, there is more capacity. the speed limit is higher and we have more lanes on the road. as fast as we can go, we are adding more aircraft. we announced in our earnings that we have passed a major milestone with our next generation air to ground network. in the lab recently we achieved over 100 megabits per second with that technology. we invented this technology. it got slow when i got congested, but now we have the capacity everyone is going to need. it will be coming this year and next. emily: it was a gogo flight just

to be clear. what are you doing about hacking insecurity? our public wi-fi hotspot in the sky is about as secure as any public wi-fi. we are working with relevant agencies to make sure that we comply with the security requirements of the aviation industry. we think we do a good job at that. emily: michal smolen, ceo of - gogochael small, ceo of joining us from chicago. if you like bloomberg news, check us out on the radio. you can listen on the bloomberg xm.o app and on sirius this is bloomberg. ♪

i am i am in washington, and you are watching "bloomberg technology." let's check your news. the paris prosecutors office is investigating whether fake news is being used to influence sunday's french presidential

election. it started the probe into accounts of forgery and spreading false news after the front runner filed a lawsuit against his rival. former president obama has endorsed him for the presidency. he leads marie lapenn by 20 points. bloomberg will bring you coverage of the run off results on sunday. anti-government protests in venezuela continued to intensify with protestors and police clashing today in downtown caracas. police fired tear gas as they tried to march to the electoral commission. a south african high court ruled today jacob zuma must hand over an intelligence report that the former finance minister was plotting to undermine his government.

and moscow says it is ready to send peace keepers to syria. turkey and iran have signed on to a russian plan to make safe zones. global news, 24 hours a day, powered by more than 2,600 journalists and analysts in more than 120 countries. this is bloomberg. it is just after 5:30 p.m. thursday here in washington. 7:30 friday morning in sydney. we are joined by paul allen with a look at the markets. good morning. paul: good morning. well, japan is closed again today for a public holiday, but trading as normal here in australia. futures looking weaker again for a fourth straight date. we will keep an eye on the quarry pang. it is reporting full year earnings. he medianest made is for $2.13 billion. the stock has been on a tear, hitting record highs.

always expectations for this bank's earnings. lock og for a third quarter update on the airline qantas. keeping on the reserve back of australia as well, keeping up with his quarterly statement. we are going to get an update on inflation and growth outlooks as well as comment on domestic and international markets. globally, keep an eye on tobacco stocks as australia won a ruling on packaging. more from "bloomberg technology" next. emily: is this is "bloomberg technology." i am emily challenge. it seems like softbank has been

a near constant source of fascination. a lot of the headlines involving around investing in big tech companies around the world. many wonder where this tech giant stands. joining me now from new york, steve murray, partner at revolution and former partner on softbank capital. first i want to start with revolution. evans two decades of experience investing in asia, which is a place that revolution doesn't focus on. why make the move? >> first thanks for having me. thanks for teague the time to talk. i joined revolution about a year ago. it is a great firm out of washington, d.c. load by ted and steve. we do a lot of investments in cities outside of northern california. it is a great brand and one that i was very comfortable with after a great and long career at softbank.

emily: steve case has talked to us a lot about his strategy and he idea of investing outside silicon valley. where do you see the most promise? >> it has been very consistent down our time at softbank capital. we look at the world the same way. there is great opportunities in northern california and sal con valley, but it is also an area with a lot of great firms with deep roots and great money. at softbank capital and here at revolution, we find that we can find great opportunities in other cities. whether that be l.a., chicago, new york, washington, d.c., baltimore, maryland. we find there are great entrepreneurs across the country, and that is very consistent with steve case's rice of the rest program. emily: does any one of those

geographic centers stand out to you? >> what we find is different parts of the country have different things they are good at. as an example, atlanta has a great fin-tech community because they have such great history in payment processes. l.a. has great video because of all the studio and video production that has been done there. we see great things out of chicago now in particular with respect to data analytics and machine learning, partly because of the great institutions that exist in chicago. each one of the pieces of the country that we look hard at has different things to offer. emily: let's talk a little bit about this softbank vision fund there. is so much speculation about it. it still hasn't closed yet, to a loft people are wondering where this stand. you haven't worked there in a while, but what is your take? >> the softbank vision fund is exciting. i am still very close to a lot of folks there.

ron fisher, i was a partner with him for 20 years and still a great and dear friend of mine who helps lead that effort. i think the softbank vision fund is going to be one of the most important technology investors over next several years on the private side. it is certainly an entity that at revolution we will continue to stay close to. they have a lot of capital to deploy. they have a global focus, and they will be looking at big opportunities where they can put a lot of capital to work for long periods of time. when they set out their investment agenda, they are quite clear. they want to find the next thing if you will and looking depressively to do that. you can't underestimate the importance of the vision fund over the next several years in the private marks because of the sheer size and aspirations that they have. emily: we hear, though, that the fund won't close for six to nine months. what is the hold up?

>> that one i can't answer. don't have any inside information on that. i am sorry. >> let's talk a little bit about softbank in general. the heir apparent is now out of the company. the son, is he the decider on these investments? >> i don't know how their investment committee process works, although i know that he is very involved in the company. some of the companies i am familiar with have worked with the vision fund recently. as you probably know, if you talk to him in the past, he is an amazing character. he has amazing passion for entrepreneurship, and at his heart he really is an entrepreneur. he loves to connect to new businesses. entrepreneurs value his in put, and he gets deep into these businesses and can be very helpful the i am sure he is critically involved in a lot of key decisions. emily: you are also on the

board of draft kings, in the middle of merger talks. >> that process -- i believe that the signed agreement to merge was in november of last year, and now we are awaiting a final ruling from the f.t.c. over the next month or two hopefully about that process and then can go about the business of combining the companies. there has been obviously some work that has been done on thinking through things like technology platforms, and team, and brand and approach and other things. but some of those, until the formal approve from the government, some of that has to be on hold. hopefully that will happy over the next 30 or 60 days, and we can get to borque at building what we think is a revolutionary company and an exciting one that is changing the way that people interact with sports and information. emily: alright. steve, murray, partner at revolution and former partner

at softbank capital. thanks for joining us. meantime, apple has $148 billion invested in corporate bonds according to a new filing. more than 90% of that debt is invested abroad. apple announced it is selling about $7 billion of that to fund a stock repurchase program who will reign supreme in the battle of market places. we take on amazon next. this is bloomberg. ♪

emily: wal-mart's feud with amazon isn't just business. it is personal. wal-mart has witness visiting regularly sin the retail

wrought jet.com. his goal is to help topple amazon's dominance in retail. we talked with brad stone, who did a deep deep in the ee commerce aspirations in the latest edition of bloomberg business week. >> it is still early. it has been less than a year. but the last quarter in february when we got a wal-mart earnings announcement, e commerce growth was about 28% or 29%. that is not only far above the industry average it is actually above amazon's growth rate. now wal-mart is starting from a much smaller base, but it was a promising sign. investors reacted well. the stock is up. there are reasons for optimism. what mesoraco lawrie has done at wal-mart.com, he has administered some of the medicine that wal-mart needed. he has broadened that marketplace selection, which wal-mart resilsed for a long time. he has done what is sort of

necessary online in terms of matching lowest possible price. wal-mart historically was a little unwilling to do that because the store is supposed to have the lowest price. then he has gone on an acquisition spree. moose jaw, there are rumors about bonoboth. he has been pretty aggressive. >> why is he buying these smaller companies? >> for a couple of reasons. one, to bring product selection on to wal-mart.com. there are some brands that won't sell to an amazon or wal-mart. these websites have that selection. some of the selection we bring over to wal-mart.com or jet.com. then the third reason is he is getting some very skilled founder entrepreneurs, who they will then put in charge of outdoor, shoes and the properties. it is a strategy to hire some great e-commerce operators. >> what did he learn at amazon that he is bringing this

moment? >> it is almost more interesting to talk about what he is not bringing, what he almost learned not to do. he was very sort of gentle, or maybe reserved is the better word when talking about his amazon experience. but one thing that clearly he a bad taste in his mouth around the willingness of the company to empower the start ups they were acquiring. they started the diapers.com business, but is competing with other people that sold diapers. at wal-mart, the c.e.o. of wal-mart has put him in charge of e-commerce as cross the board, and he is following that model. he is got moose jaw, use them. emily: so what do you think

wal-mart's chances really are of given amazon a run for its money? >> the truth is this is not a zero sum game. e-commerce is 10% of all of retail. it is only going up. more and more people are discovering the convenience of shopping from their coach or office. so i think it is far likelier -- the better question to ask is what are the chances that what wal-mart can create a sustainable, growing and profitable e-commerce billing that can exist alongside amazon. amazon is an unstoppable juggernaut, and wal-mart can never displace it. they are an internet cloud computing company to a great extent. so he don't think wal-mart can unset amazon, but it has advantages. it is particularly strong in groceries. it could lead in that category, perhaps in apparel. the challenge is to create a

business along site amazon. emily: brad stone there. deep map is a new start up focused on 3-d maps. hey are designed to assist self-driving cards. alex webb reports. >> if you are trying to control a robot, which is what we are trying to do, the robot needs to know within centimeterers where it is with respect to its surroundings. >> a mile away from where google builds their maps, a 25-person start up is doing the same for robots. deep man is building maps allowing cars to steer threw complex city escapes. >> we collect all the data. usually we will collect it over several runs of the same location. we will bring it into the cloud. run a bunch of processing

algorithms to create a single unified pick of all the centers of the data. high create a fairly resolution 3-d image of the area. from there we can create with accuracy all the gee metic features on the road. >> the team of former google and other engineers is racing to beat uber and others. the deep map system is aim the at helping robots navigate rather than humans. the 3-d maps complement the car's sensors by giving them a detailed awareness outside the car's field of view. >> here is the usage map we have created. now it nonals the lanes are here, and where the signs are indicated. now it can start making decision buss things in its environment and planning accordingly. >> this is really the end

product then of the maps you got. >> yes. this is the ultimate goal of using the map. >> and with $30 million in venture capital funding, the company is confident it can avigate a path to success. emily: that was bloomberg technology's alex webb. the global market tablet markets continue toss slirn. shipments totaled an estimated 26.2 million units, an eight and a half year over year deadline. it marks the 10th straight quarter the mark as shrunk. they attribute that to an increasing interest in smart phones. >> coming up, slack is opening a new hub in home run do not. the c.e.o. speaks to bloomberg about concerns about brexit and a possibly i.p.o. this is bloomberg.

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emily: the c.e.o. is going against the grain, saying the u.k. will remain a key market regardless of brexit. the c.e.o. of butterfield spoke in london ahead of the official hub. g of slack's new he explains why the company is laying down roots in the country. >> we have a lot of customers. one that most viewers in the u.k. would recognize, retailers like lush, broadcasters like skie, save software. and we want to have a relationship with them and other customers yet to come on board. it is much easier to physically be here. it is a sales-led office with customer success teams and solutions engineering as well. we are still going to grow. it is a country of 65 million. >> yes. we keep expanding. >> good on you.

>> tell me, one of the things we sfee a lot of tech companies do is base themselves in ireland, which is much less of a problem regarding of brexit. we have stories about companies considering other countries? did you consider ireland as an option? >> we already have a pretty large office in dublin. we have been there a year and a half with 70 people or some. and we are continuing to grow there. we will eventually open offices on the continent as well. we have customers in nearly every country in europe as well. we have seven offices in five countries around the world, and we will be expanding at a pretty good clip over the next 18 months or so. >> now, one of the topics, there has been a lot of discussion about over the last 100 days or so is hiring and talent under the trump administration. i am curious, is that something that has been affecting you or

that you are going to have to think a lot more carefully about over the coming months and years? >> we started off with an office in san francisco, and vancouver, canada. vancouver is a great city for many large u.s. companies who are having trouble bringing someone into the u.s. they bring them into vancouver instead. that has been part of our structure from the beginning. so it has been less of an impact for us. we also have offices in dublin as i just mention, in melbourne, in toronto and new york. so the immigration issues have been less -- they make people who work as slack as citizens are more concerned about than i am as the chief executive of the company. but there is a general atmosphere of uncertainty when it comes to trade policy, when it comes to tax policy, when it mes to immigration, and in

that context, it will be different for business toss make decisions. communication software is going to be need either way. >> talking about talent be and acquiring threaten, specifically internationally is another issue that we are having to consider seriously in britain as well. lot of the talent comes from continent, and brate problems can be caused. do you have to consider both sides of the atlantic and the talent? >> yes. we don't have a great number of remote employees now, but it is something that as we get larger and more mature as an organization we are not able to accommodate. if we can't get one in that location, we can consider opening an oakes office in that location and bringing them on. it is a competitive market, but because web growing quickly and because of your presence in the

tech industry, there are very, very few tech start-ups in the south africans areas that aren't existent software users. if you are in the bay area, especially if you are in tech, the perception is that everyone uses slack. so everyone wants to go where they have a big impact. we have a recruiting advantage. >> i have to ask what is next for slack? do weapon an i.p.o. in sight in the near future? >> i.p.o. would be years away. we are growing at a fair clip. predictability is hard, not the kind of predictability they will want in a public market. but private exapt is friendly to companies like ours, so is there is no need for the public offering. the focus is on growth, customers and increasing the value of the core product. we are doing a lot of work on machine learning and a.ism, and bringing those -- and a.i.

bringing those things to market over the coming year. emily: a disclosure, bloomberg beta is an investor in slack. that does it for this edition of tech particular. we are live streaking on twitter. check us there week days, 5:00 p.m. in new york, 2:00 p.m. in san francisco. this isberg. ♪ this is bloomberg. ♪

>> from our studios in new york city, this is "charlie rose." this eveningegin with the fbi director james comey comey's testimony today before the senate judiciary committee. comey extended his decision to inform congress was revisiting the hillary clinton emailing you before last november's election. concealed information, he said, would be the death of the fbi. will he stood by his actions, comey said it made him mildly nauseous to think we would have had some impact on the election. he also notice questions about russia, wikileaks, and president trump