alisa: i am alisa parenti from washington. you are watching "bloomberg technology." the deadline to increase borrowing authority and avoid default is early to mid october. a report also predicts the federal budget deficit will spike to $693 billion this year. that is $134 billion more than a predicted in january. the house votes today to ration federal funding for so-called sanctuary cities. a state in local government that has policies restricting cooperation with immigration officers. another bill will increase penalties for people attempting to reenter the u.s., if convicted of felonies before or

after deportation. president trump will meet with vladimir putin at the 20 summit in hamburg next week, their first official meeting of heads of eight. but heific agenda yet, is expected to discuss the withdraw from the paris climate accord and make a major speech in poland. president trump's revised travel ban takes place in three hours. it focuses on six majority muslim nations. but can must prove they have a business relationship in the u.s., or an immediate family member. global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. i am alisa parenti. this is bloomberg. ♪ emily: i am emily chang, and

this is "bloomberg technology." the text sell outdoors back, dragging shares to the lowest in more than a month. we will chart the wild swings and breakdowns of volatility. plus, blue apron goes public. to little fanfare. why it may have not been a winning recipe for the food delivery company and the growing challenges ahead. 10 years ago today, the world was introduced to the iphone. a trip down memory lane and the changing faces of the smartphone that made apple the world's most valuable company. first, to our lead. for the second time this week am a saw selloff in tech stocks. the nasdaq losing more than 1% to snap it seven-month winning streak. stockscalled fang weighing on the index. joining us from new york to help us dissect the decline, abigail doolittle. across thedown

board. tell us about the biggest winners and losers. abigail: today was interesting in terms of the standpoint of the selling going on. at the sellers were in control. it is important to break it down because it confirms the tech selloff that started june 9 is on. we had a bit of a rebound, but now we are down and he did way for a second time this week, telling us again that investors are selling the top sector on the year. what makes it interesting is that i have talked between half a dozen and a dozen -- nobody knows what is behind this. they do not have a theory or hypothesis, that is rare. one said it was mysterious. or -- sell sider said managers could be taking a profit. a big change in sentiment here, jitters and uncertainty on part

of the diff -- the investors. top trade allhe year, a hot factor with all the names, facebook, apple, netflix, alphabet, up more than 30%. you can see this in the chart in the bloomberg we are taking a look at. i said, what is behind this and she said, with nothing has changed at all. we are just seeing a rotation out of tech into banks. some of that money is going into the banks. at intellect partner says, while we have the same stock selling off, if you look at the fang bonds, it is fine. that supports the fundamentals that they are fine. it is just jitters on the part of stock investors. emily: there were a couple bright spots. tell us which ones. funny, you would

not guess it -- snap and fitbit. some investors may not have a lot of confidence in, in a way, whether the growth is there, the revenue and profits they are looking for. both stocks were up on the day. interesting divergence. it has a beta of more than two, outperformed on the day. i did ask and they said they had no clue what was going on. we have a big risk off session. there is still more high momentum tech names. emily: june 29 marks the iphones 10th birthday. here is a look back at the decade of the iphone.

>> today, apple will reinvent the phone. [applause] >> on june 29, 2007, consumers got their hands on their very first iphone. now, a decade later, the smartphone is proven to be the undisputed king of apple products and revolutionized an entire ecosystem, destroying heavyweights of the day and spurring new arrivals across the -- new arrivals across the globe. the iphone open the doors of what has become a large chunk of the company's revenue, apps. than 16 million developers worldwide, producing apps ranging from uber to snapchat. did notch of the iphone just change the pay people work and socialize, it also transformed the company itself. dimension,by every going from a company with staff of around pre-iphone to a 18,000 workforce of 116,000 in

2016. sales went from $19 billion in 2006 to over $215 billion a decade later. it does not stop there. since its launch apple has sold , 1.3 billion iphones, generating more than $800 billion in revenue. that blows other iconic devices out of the water. including nintendo's game boy, which sold over 118 million units in its lifetime and sony walkman, which sold a little over 200 million and a 30 year. -- in a 38 year period. with that astronomical growth rate comes heavy defendants, the iphone makes up 63% of revenue for apple, making it the company's most crucial product. some tech heavyweights are sounding the alarm about the future of smartphones, but longtime silicon valley investor peter thiel saying, there will be no innovation here. apple's ceo tim cook sees it differently. tim: we're just getting started. i am incredibly excited.

clearly, there is nothing that anybody could say is going to replace the smartphone anytime soon. emily: as apple looks for the next decade on the competition stays red hot, a major question remains --how long can the iphone remain at apple's core? joining me to dig into the iphone's first decade is my guest cohost for the hour, david kirkpatrick in new york. thank you for joining us. it is hard to sum up the iphone, but in your view, what is the biggest significance of this 10th birthday? david: you cannot come up with enough superlative's for the iphone as a business success. you have to say it is the most successful product ever. period. $800 million in sales.

it is unheard of. just the sheer financial gravity of the iphone has been a business success, combined with the way it has shifted the nature of our behavior, that is astonishing. emily: i know you have been thinking about how has the iphone changed our lives. david: or what it has changed for the worst. we all walk around, looking down like this. in new york, people bump into each other on the sidewalk constantly. you can be in a public place and look around and literally every space is looking down at a smart phone. look, this has changed our behavior in wonderful ways, it is allowed us to do all kinds of things in the economy we could not have done otherwise. that is beneficial. but let's admit it is changed our behavior in negative ways and in some ways, taken us away

from the interaction and awareness of our surroundings that used to be a central part of being human. we do not want to lose that. we had gene munster recently who thinks that iphone sales will peak in 2019, and that the next big product from apple will be augmented reality glasses, and i wonder, is that true? and how will that change that particular behavior you are referring to? david: one of the reasons why a lot of people are excited about augmented reality because if it could be implemented properly, which i don't think anyone has yet seen, it would potentially give us the ability to effectively be online and be in the real world at the same time. i think that is the reason why people like mark zuckerberg are so excited about it.

i do think tim cook is among the few people in tech that would say, nobody can imagine anything replacing the smartphone anytime soon. a lot of people are imagining a lot of stuff, including those people in seattle at amazon where their echo devices have made impacts. emily: facebook announced hitting 2 billion users. you say that the future of facebook and the iphone go hand-in-hand. david: they have gone hand-in-hand along. when people use the iphone, two hours a day, when people are looking down at their phones, the thing that they are looking down at the most is facebook. if facebook did not come along, it is possible that the iphone did not -- that the iphone would not have become the phenomenon it did. it is interesting to go back to zuckerberg with his thoughts on augmented reality. he is already thinking about other physical devices, which might be a minor concern for apple. on the other hand, short-term, apple is still is in the captain's seat, no question. emily: so much to reflect on on the iphone's 10th birthday. david kirkpatrick, you're sticking with me.

a major setback for rupert murdoch, the u.k. government is pushing back on the media's tycoon's-- media attempts to take over. 20th century fox will undergo scrutiny. the government is concerned by the growing of the murdoch family. coming up, blue apron makes its public debut we discussed the new start up's journey. and "bloomberg technology" is livestreaming on twitter. this is bloomberg. ♪

of blue apron made its debut thursday. literally unchanged by the end of the session. this, after the company lowered its ipo price to $10 a share from an original range of $17. they had a market value of $2 billion. joins us our reporter from new york. and still with us, david kirkpatrick. alex, what happened, and how much has to do with amazon and good food -- whole foods? >> you saw that big price that happen before these shares priced at to the $10 level. looking at the trading today, the fact that it was unchanged, it closed at $10 a share with an ninemarket trade at $9.95 below the

ipo price. there is a bit more investor concern. right now, they are sitting at a $1.9 billion market valuation. if i am an investor, i am looking at this company and saying where is the growth? and i am saying how are you going to afford it because when i look at this cast -- cash position it , seems like they might need some money soon. some of that could be playing into this downward or flat pressure. emily: david, should investors be concerned about blue apron because of amazon/whole foods or because of these other things? david: if i was in any kind of food delivery-related business i , would be watching amazon with incredible care. the fact that they bought whole foods, which surprised most of us, goes to show the seriousness

with which they view food as a top of the world strategy. i think they should worry, seriously. emily: alex, should there be a -- any more scrutiny in how they handle this ipo, not knowing amazon-whole foods was coming? alex: it seemed they did what they had to. i have been talking to folks around the deal, and if they launched the deal three days after the amazon announcement, or waited after labor day, this idea of amazon-whole foods will be there. the valuation they went out at is very strong. it was valued at more richly then most of the e-commerce companies. the valuation made some folks scratch their heads. it seems they did with a needed to do to get the deal done. blue apron needs the cash. if you look at their first quarter cash situation they had , $61 million on hand, and they had a cash flow

deficit of $74 million in that quarter. they told investors look, we , have cash and borrowing to get us through at least 12 months of runway. that is not a lot of time. this is a company that has to out market -- outmarket its competitors. and it is continuing to try to build out its logistic network and fulfillment centers. whether you wait a few months or go out now it will be a question , of valuation to get the deal done. emily: what does this mean for tech dealmaking and ipo plans going forward? alex: it is coming back down to the valuation point. it seems we had a lot of the tech deal pipelined for smaller companies to work their way through. you have a lofty valuations because investors were chasing these returns, and now it seems realism is sinking back into the market.

aprons niche, this blue deal cast a shadow underneath a massive shadow of amazon on exits in particular. you have sunbasket trying to go out. you have these smaller firms that venture capitalists have throwing money into the food delivery space. if you are thinking of exit valuations and you are behind the scenes, you got to be saying, we have to get our books in order and our house in order to prove we are not blue apron, and we will not exit less than our last private round valuation. emily: all right. alex barinka, thank you so much. david kirkpatrick, you're sticking with me. coming up, uber's management issues have overshadowed all others. we will bring you the latest about the legal battle. this is bloomberg. ♪

emily: korean tech giant samsung announced investments worth $1.9

billion into u.s. plants. samsung will spend $1.5 billion in its semiconductor factory in texas and over $380 million spent in south carolina for home appliances. both investments will be carried out until 2020 according to statements from the company. the announcement came just ahead of the korean president's moon jae-in first summit with the u.s. resident, who has been vocal of the trade agreement and said it is a one-way street. uber is back in the spotlight in the courtroom. the uber waymo saga continues. the ridesharing company says it was unaware of waymo data theft prior to the lawsuit. uber is looking to refute the claim. more we are joined by , bloomberg's legal reporter. you have been inside the courtroom. you think uber's assertion that

they did not know these files were stolen was extremely important. why? >> this was the first time they were able to stand up and say, if these 14,000 files that are at the center of the lawsuit, we nothing about them until the complaint was filed. it was a big change in the direction of the lawsuit. it reveals something about uber's strategy, going forward. emily: does this tip the scales in favor of uber? >> know, but we are used to seeing uber being kicked around in the courtroom. because the judge believes anthony levandowski stole the files and uber is maybe responsible somehow. they have already been on the receiving end of the judge's ire. you can feel it in the courtroom, it has changed the tide a little bit. emily: david kirkpatrick is still with us.

it is amazing that uber is going through this. the ceo leaving the company. what do you make of this sideline courtroom battle? david: it is hard to believe anything that uber says these imagine it is easy to the worst in a company that has the worst malfeasance we have heard of. it could very well be that they did not know this guy they hired was a dishonest thief even though they paid him $250 million, and he turned out to be a thief. they are saying, it was not us that stole it, it was them. that is possible, but that is he culture of uber he knew was going into, to think it was ok to do that. that is worth thinking about, considering whether we should use uber, invest in it, etc.. joel is the one who knows what is happening in the courtroom. i am just profoundly skeptical of everything uber. and certainly, love and asking ndowski comes out

terribleness. mood: tell us about the and the difference of uber and that waymo team. joel: uber is always on the receiving end. i agree, anthony levandowski is still in very big trouble. uber hired him. they haveh we have -- the distance to themselves from the 14,000 files, in the courtroom today, they're making this tricky argument that, maybe their lawyers new or a firm that was hired to investigate anthony levandowski new. -- knew. whatever you find out about anthony levandowski, do not tell us. they have changed the tide, but it is through trickery or tricky

lawyering. emily: what can you glean about uber's trial strategy going forward? joel: they have come out with a their strategy. they have laid it out now, the theme they represent to a jury, look, we are guilty of hiring anthony levandowski. you can see how that would play with the jury. that is what they did. dirty as the guide may be or seem, the lawsuit is not against anthony levandowski, it is against uber, the defendant. emily: joel, thank you. giving us all the juicy details from inside the courtroom. david kirkpatrick, you are staying with me. coming up, we dig deeper into the nasdaq's selloff. aztec reaches skyhigh valuations, our markets going to pull back? if you like bloomberg news, check us out on the radio, the radio app, bloomberg.com, or on sirius xm. this is bloomberg. ♪

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it all adds up to our most reliable network ever. one that keeps you connected to what matters most. >> it is 11:29 in hong kong, 12:29 in singapore. in, up from 61.2 in may. more robust activity has given beijing roots in coal and the property sector. china expects to hit its target of 6.5% this year. bank of america has cut forecasts to 6.4%. president trump says his talks with south korea's new leader at the white house went well, he and president moon had frank relationships about the trade

relationship and problem of north korea. a statement said they reaffirmed a long-standing agreement. nations and japan are expected to meet soon to talk. chinese company developer on trial in new york, accused of bribing u.n. ambassador rice to win protests. dollars of thousands of to others to gain support for a u.n. conference he planned to build. died as his lawyer was negotiating a plea bargain. tim cook's take-home pay was more than was reported, putting him in the bottom third of ceos on s&p 500. the real figure is somewhat million, putting him far ahead in the field. netflix topped

$100 million last year. global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. >> let's have a look at markets as we head toward midday, 30 minutes left in the session in hong kong. we are in the latter half, the back nine. down under, a few standard deviations have moved it down. 83 points. statistically, something you do not normally see. june has not been very good for australia. a good number of 1%, 1% plus drops. offloads of the day, a lot of selling pressure. australia, 0.9%. the dollar andof the fixed income space, the reviewer vix overnight, hong

kong and japan are up. last trading session of june for the first half, we are poised for another monthly gain. ♪ emily: welcome back to "bloomberg technology," i am emily chang. our top story today, the selloff in tech stocks. for the second time this week, the nasdaq losing more than a percent and on track to break the seven-month winning streak. joining me to make sense of the recent gyrations is reporter dani burger and techonomy ceo david kirkpatrick. the fundamentals have not changed at all. why are investors suddenly down on tech? dani: that is a big question, this year we have seen a violent rotations in the stock market, and tech is now the latest casualty. you remember we did have the

selloff in tech a couple weeks ago. at one thing to keep in mind is how ubiquitous semi conductors in tech stocks are. when you think about the federal reserve nerves are we ready to , raise interest rates, will that affect the economy -- i think tech is one area where you are seeing investors play the tech stocks. one thing i do want to point out is how popular tech stocks were. if we jump into the bloomberg, i bought a chart with me that is a really cool function. each one of those dots is a stock in the nasdaq 100. one line shows its yearly return, the other shows the -- its one-day percent return. if you stick with me, you can see the most popular stock over the past year pulled off the most today. the most loved stocks are now the most hated. we are seeing this rotation where people are selling off these momentumy physicians, thinking it is a bit overbought,

stretched maybe now is the time , to take profit with perhaps no specific catalyst we can point to it this moment. emily: no specific catalyst, david. is the best behind tech? absolutely not. tech may increasingly be seen as a so popular with investors and central to the economy that its movements are a macroeconomic indicator of sentiment. but long-term, tech has so much to go, it is crazy. fang stocks,he with the possible exception of netflix, these companies have unbelievable headroom. they are dominating the economy they are going to go to the , moon. i hate to say it you might say , they are already at the moon. look at it in five years. melner i interviewed in france a couple weeks ago, he has a theory based on the percentage of the economy that is digital, which he says is 6% today. all it has to do is go to 15% by

2025, and he says 4 trillion more will be created in consumer internet market caps. i think he is in the right direction. emily: dani, put it into perspective for us, is tech overcrowded? yes. i want to point to something which speaks to what david was talking about. a chart i have for you shows the market cap of tech as it relates to the s&p 500. this is the percent weight of tech in the s&p 500. that yellow line is the average over the past decade. you can see we are far above that. keep in mind if i had expanded this back to the tech bubble which i am going to do quickly , for you, you can see that we are still far below that. we've got some ways to go before hting looksg -- weig bubbly. but this is an increasingly important part of the market. it is dominating the s&p. there are days when tech sells off, and it hurts the s&p as a

whole. but still we are seeing the market remain calm. a bit of a difference. tech is not doing anything to completely cause trading to go into a frenzy at this moment. emily: our markets reporter dani burger with the roundup, and -- ceo davidorter kirkpatrick. thank you for joining us as always. coming up, as the iphone celebrates its 10th birthday, we will hear from someone who is often referred to as the godfather of the ipod. and at 8:00 a.m. eastern, the boston pops fireworks spectacular live from boston's historic esplanade. this is bloomberg. ♪

emily: let's return to our coverage of the iphone turning 10. back in steve jobs took to the 2007, stage to unveil the latest product. the new smartphone combined email, web browsing, and phone calls in a single device. he demoed the product with the head of design johnny ides. , >> johnny, do you have anything to say on the first phone call? >> it is not too shabby, is it? [laughter] >> its not too shabby. emily: tony fadell, another key executive at the iphone launch spoke to bloomberg at the opening of station f, a startup campus in paris. >> let's go back 10 years ago, what did the world look like? we had all different brands of cell phones. today, almost every different seller of cell phone was different than it was 10 years

ago. 10 years ago, we did not even have 3g networks. now people are talking about 5g and six g networks because we cannot get enough data and communications everywhere on the planet. we do not have any cloud and computing services. we did not have ridesharing services like lyft. or people delivering things. everything about our world has changed in just 10 years since the first iphone. think about that, just 10 years. so what is the next 10 years going to be like? if we think about why we are here at station f, it is here because of the mobile revolution that started 10 years ago. all the companies in here are building on top of the platform we have collectively built as a society on top of these smartphones that are in 2 billion people's hands. computers for everyone. i'm really excited about what else is going to come in 10 years. yes, we kicked it off 10 years ago, and it is wonderful to be here and see what that has created for companies around the

-- countries all around the world including france. ,>> some say apple and the iphone may have lost a bit of its innovative touch. what is your take on this? >> let's roll the clock back to laptops, or computers before that. when we look at laptops, you would say they stagnated in the 1990's and the 2000s, but what did they get? they got internet, email, all these other applications. look at the iphone and smartphones in general. they change every day with the apps that you download. and the services created on top of that platform. if you are to say laptops stagnated, well, not really. they were just an enabling platform for all these things to be created. same goes for mobile phones and smart phones. we have lots of innovation. it is not just about the phone you carry, but it is about all the things you can do, and every day you get a new feature, new function. ofthe apple is a big part

the revenues. do you think the company is too dependent on this single product? >> i think it is continuing to build other businesses and innovating. new platforms take a long time. the last platform before the iphone was the macintosh, in 1984, and that took 20 years. we are just in the first 10 years of this platform. to create another worldwide sensation like that takes time. we are trying to adapt to the one we just built in 10 years. i think we are all excited, but it takes a long time to do something really important and impactful. >> do you actually believe the next iphone could come from a place like this, paris? and what would it look like? would it be a smartphone? >> i don't know what it is going to look like. i am not a great predictor of the future by any means.

i could have never told you 10 years ago when the iphone came out that the world looks like it does today. i cannot predict the future. but when i can tell you is, when we look at these devices and the future, i am really intrigued by what happened over the last seven or eight years. if we look at the dna of devices pre-iphone or pre-android, almost all the software code and hardware was locked up with a few companies. the dna to create an operating system or application was all locked in apple or microsoft or who have you. today, with open source on the cloud and mobile handset side and all the different services, the cloud services and commoditization of the cell phone, now everyone can evolve, around the world, new phones, new products. they have the opportunities of

-- just like silicon valley did, the last 20 years. emily: that was tony fadell, a former apple executive. president donald trump has pressured apple to build a production line in the united states. we take a look at what it would look like if the company could assemble a smartphone in the u.s.. reporter: take a look at the back of any iphone. you will see a familiar phrase printed on almost a billion units of the iconic product. designed by apple in california, assembled in china. like everything, that wording is deliberate. apple designs the software, researches new technologies, and develops the phone chips, in california, which allows them to sell devices for 65% more than their cost. but iphones are assembled in china for a reason. it is easy to assume that reason is cheaper labor.

that doess are lower, not tell the whole story. in fact, assembly is only 2% of the hardware costs. today, most iphones are made in two chinese cities. favorable government policies helped shenzhen become one of the biggest manufacturing centers of the world. as a result, thousands of companies and millions of workers have moved to this city to be closer to the action. during peak iphone season foxconn hires almost a million , people, accounting its workforce to a few hundred thousand during low seasons. such a clustered effect means that most of the components need to make a phone, a laptop, or a drone are within a 50 mile radius. attempts to re-create this have so far failed. brazil is a perfect example. apple was facing high import tariffs in brazil and urged foxconn to make iphones there.

foxconn built a factory, but very little changed. rather than doing lots of high-level manufacturing in brazil foxconn continued to do , most of the work in china, where the supply chain was nearby and parts could be preassembled. this meant most of the iphone was made in china and shipped to brazil for local workers to slop together, like legos. in the end the brazil project , failed on two levels. it hired a fraction of the workers the government expected and did not attract suppliers. if an iphone is to be made in the u.s., it is more likely to follow the brazil model, not that shenzhen model. the brazil model means far fewer jobs, and making an apple would be like picking apples. while the u.s. could when they boast an iphone assembled in america, the question is, does it really want to?

don't be full by tim cook's reported 2016 pay, which ranked him in the bottom third of all ceos in the s&p 500. cook actually took home 100 $45 million, almost all from awards granted in he is not the only 2011. ceo of a publicly traded u.s. company to cross the $100 million threshold for take-home pay. reed hastings of netflix reached $106 million last year. coming up, we take a look at a group of activist hackers on the front in protecting elections from tampering. ♪ emily: xavier neil wants to put

paris on par with silicon valley for tech investing and innovation. the entrepreneur opened station

s, a co-working space next to the seine. companies including facebook, microsoft, and venture capital firms have appeared at the campus to advise entrepreneurs. >> we hope we will have the next facebook. we have programs that are completely different. peoplelooking for young outside of paris or a lot of places to come and create a company. emily: the french capital is trying to best position itself as uncertainty looms around london post-brexit. from imperfect voting machines to fake news, many countries like the united states and france are only beginning to wrestle with the ways democracy can be hacked. one country has taken on an unusual casket to combat election hacking efforts and that is germany. the country uses the chaos computer club, a tech focused watchdog assembly. spoke with someone

who reported on this as part of our global tech issue. she started by asking how , exactly the chaos computer club helped the german government. >> we were looking at the data of which countries had the worst levels of fake news. oxford had done research that put high levels in the u.s. and u.k., but a blip in the data was germany, where the levels of professionally produced news versus other political items looked really good, and one place we looked was hackers themselves. there is the chaos computer club, an organization founded in the early 1980's that has helped instill a healthy dose of skepticism and tech-savviness among germans. caroline: what hacks and roles have the chaos computer club actually done to shine a light on where some of the weaknesses are in germany?

>> what they have done is, with a bit of humor sometimes, taken on things like the voting machines themselves. a decade ago, when germany was starting to roll out voting computers, they said, i bet we can make one of these play chess. the manufacturer said, i'd like to see that. within a month, not only had they shown that you could manipulate the vote, but you could actually make it play chess. they did that, although they say it did not play chess particularly well. the real result was the decision by the constitutional court in germany that cited the chaos computer club, in rolling back what was going to be a rollout of voting computers. caroline: when we are looking at the role these hackers can play in the upcoming german election, is there concern in germany about the role of fake news, or is that not something they are concerned about considering the blip in the data?

>> there is. there is heightened concern, probably because of germany's history. there are laws against hate speech that have been a part of germany's history, and addressing past problems. also, the government now. merkel's government has threatened the social media companies with fines if they don't get the fake news phenomena under control. the role has been one of raising awareness. their leadership has gone out there. one thing they did for me in 15, 20 minutes will show me how a twitter bot worked. i thought i could recognize what a real twitter account was, plus or minus a few percentage on being able to get fooled. but it was so easy. and this is what they are doing with a lot of journalists, showing anybody can do it and build a bot army of hundreds.

spreading fake news another propaganda, if they wanted. that is the role with their hacker personas they have been playing. caroline: the chaos computer club, talk about how much this could be replicated. could we see it used as a device in other countries that have succumbed more to fake news? how formal is the arrangement that they have? >> what's interesting is what has developed in germany is kind of unique. it has been around so long, since the early 1980's. it is gone the role of a social activist human rights , activist. and because of germany's history with nazi-ism and communism, and the secret police there is a , real aversion to surveillance and the role the state can play. it is fertile ground in germany for having a hacker resistance. it is maybe not something that can be replicated in other

places, although there is something to be said for it being emulated. emily: well, finally, airbnb is said to be planning a new tier of luxury vacation rentals. the company will test a rental service for mentioned -- mansions and penthouses at the end of the year, with a broad rollout plan, if successful. they will maintain quality standards. earlier this year, airbnb acquired canada's luxury retreat, which lists more than 4000 villas and vacation homes. we will be covering this topic on friday's show with airbnb's head of global policy and public affairs. that does it with this edition of "bloomberg technology." you can check us out weekdays at 5:00 p.m. in new york, 2:00 p.m. in san francisco. that does it for now. ♪

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