pizza restaurant east of paris. officials say the act was intentional. the driver has been arrested. signed antrump executive order to launch a trade investigation of china for the alleged theft of u.s. technology and intellectual property. the order gives the office of the u.s. trade representative the authority to consider the probe. a news conference is underway in after president oj opened anhe d investigation. the president also called out white supremacist for the role. there had been backlash for his initial failure to identify hate groups by name. the man accused of running into protesters will remain in jail until he has an attorney. the judge declined to set bond at the hearing today for james fields who faces second-degree

murder and other charges. i am emma chandra. this is bloomberg. "bloomberg technology" is next. ♪ caroline: i am caroline hyde from london in for emily chang. this is "bloomberg technology." racismbilizes against and hate sco's take to social media to condemn the violence in charlottesville. the latest on what they are saying and how it impacts silicon valley's relationship with washington. past $4000 to another record high. we will track its course into

uncharted territory and the reasons behind its winning run. angry birds is hatching an ipo. uy in?nvestors b we will consider options and challenges for the parent company. president donald trump call. white supremacists for their role in the deadly violence over the weekend in the state of virginia, this as the administration sought to counter backlash against the initial though your to directly hold hate groups accountable. president trump: racism is evil. and those who cause violence in its name are criminal and thugs, including the kkk, neo-nazis, white supremacists, and other hate groups that are repugnant to everything we hold dear as americans. initial: trump's remarks of the weekend faced criticism from business leaders and lawmakers on both sides of

the aisle, claiming his statement was inadequate. it also prompted the merc c.e.o. ken frazier to resign from the prompted's council and responses from silicon valley, including tim cook who tweeted this. the h.p. c.e.o. also said this. with us from san francisco, tom giles. and from the white house, jennifer epstein. i want to start with you, jennifer. we have seen the business trumpity holding donald to account. it is an important demographic for him given he considers himself a business leader as well. >> every time there has been something, you have seen a bit

of pushback. one or two people involved in his councils and people he might have considered to be of his level. out of theopped c.e.o. council over the immigration push trump had a couple of months ago about banning certain groups from entering the country. today we saw ken frazier from merck resign. within less than an hour from when he did that, president trump responded saying now that you are not on my commission, maybe it is time to lower drug prices. i think that reflects tension going on for a lot of executives. they know that if they speak out against him on any of these issues that are controversial and seem to have a large part of

the country turn against the president, if you do speak out, does the president tweet against you and does your stock price go down? does the president try to regulate against your company? what comes next? that is what a lot of executives are dealing with when they are not happy with how the president responded over the weekend and today. caroline: tom, we have seen companies responding in different manners today. not just directly to donald trump but directly to right-wing media outlets. remove then them domain for the daily swarm and we have seen google cancel that domain. violation of terms of service, we understand. airbnb has stopped some white supremacists from using their service. how difficult is it for technology companies to weigh in here? flex i think the tech companies have a lot of leeway.

they can look at their terms of service. they have rules against types of hate speech, inciting violence. it is not that much of a stretch for a company to say if you are encouraging violence, if you are encouraging hate speech against groups, jews, people of color, the list goes on and on. i think there is a lot of leeway. none of these companies are toced to appear -- adhere principlesamendment where you can say or do whatever you want on their sites. it does not work that way. it is interesting the way c.e.o.'s have been responding. i would say response to jennifer, yes, to some degree you are concerned about what he will say. elon musk after having left the council in response to the climate accord move by trump, he

has not gotten any retribution from trump. ditto for uber who left over immigration issues. you don't see trump talking about uber. trump is very selective. a hot buttonere issue for him so it was not that surprising he would use some opportunity to do this. and they tone deaf timing could not be worse. iger from disney and elon musk stepping down over the climate change issues with donald trump. the uber c.e.o. moving back on immigration. would we expect anymore to start standing down? as donald trump done enough to ease the concerns of the business community? we already saw one resignation, to be fair. >> it sounds like there are a few people on various councils who are considering their

options. we saw the president of the afl-cio today say he is considering his options. a very big move for labor if they chose to pull out of this. i think one of the challenges a lot of these people on these commissions are taking into consideration is that they want to be a voice at the table. they want to be part of the economic conversations. at the same time, they want to take a stand on moral issues. they are balancing those two things. each time there has been a controversy, a few people finally say enough is enough. that may continue to happen if this president continues on the same course. talk aboutom, what you have been writing about on twitter. this is a difficult balancing act. we have seen their policies tested. there is a twitter account

identifying the actual protesters. identifyinga handle or getting crowdsourcing people to take photos of people who participated in the protest. they have gotten the twitter hive to identify who those people are. you are seeing some backlash. you are seeing one guy from berkeley who lost his job. i read another family disowned one of the individuals identified as having been in this protest. or questionscerns about whether we are identifying the right person. on the other hand, once you get out there and put yourself in public, to appear in a march, they're going to be photographers. it is a public space. you are making a public statement. you are not hiding behind some costume. you make yourself honorable to the public identifying you --

vulnerable to the public identifying you. there are consequences to what you do and participate in. this is what people are recognizing. twitter has become a means for identifying who these people are. caroline: fascinating discussion. we will see how the tech community continues to respond. thank you, jennifer epstein and tom giles. president trump has been pushing forward a new policy towards china. trump signed an executive memoranda that authorizes u.s. trade representatives to review and investigate china's potential intellectual property violations, in particular the practice of forcing u.s. companies to transfer technological know-how. chinese state media on monday for decisive trump's plans for a probe saying the action will do more harm than good. surge, thisinues to time past $4000. what is driving this demand? we will discuss next.

this is bloomberg. ♪

caroline: it is another successful landing for spacex, the 14th. rocket carried a dry contextual loaded with over 6400 pounds of cargo destined for the international space station. the dragon will spend the next couple days in orbit for meeting up with the station on wednesday. bitcoin continues to show no signs of slowing down. the cryptocurrency soared past $4000 for the first time ever. this rally comes after a split last week that threatened to jeopardize growing mainstream interest. joining us, adam white.

coinbase allows users to buy or sell bitcoin by connecting with their bank accounts and other digital currencies. the exchange of announced thursday it received a $100 million investment. congratulations. let's get back to the bitcoin search -- surge. this asset never sleeps. what is driving it higher at the moment. is it down to the hope we can as larger transaction sizes the asset growth? >> i think that is right. we are seeing the market respond to a really forward in technology that stands behind bitcoin. isregated witness improvement to the core protocol that could have bitcoin processing the same number of transactions as we see from the likes of visa and mastercard. caroline: what about

geopolitics? talk of dealst of in south korea. is geopolitics driving it higher? >> i do think bitcoin and other cryptocurrencies are influenced by the macroeconomic factors at work. a good example is what we saw last week at fidelity. so i'lling integration point customers can attach their accounts to fidelity and see their digital holdings in line with their traditional assets. it is those types of partnerships, international exchanges like in korea and japan, these all influence traders any corresponding price of bitcoin. are -- fidelity is one of the institutions ahead of the game.

they are mining their own bitcoin let alone integrating it into their own users being able to access the coinbase account. why are some institutional players reticent to get in? why do they need more trust to build and exchanges such as yourself? >> i think the c.e.o. of fidelity is a visionary. she sees something in where the industry is heading that is exciting. others may not be as quickly moving in the space but are absolutely investigating it. helping ranji dax -- run g firms am speaking with starting to say help us understand what digital assets can become. help us understand the market. if i had to pick one thing i think will be a watershed moment, it is when we see more clear and consistent regulations . that helps give the confidence to institutions to begin trading

this digital asset. that is at the forefront of every decision we make, how we become the most compliant institutional customer provider in the space. caroline: you deem yourselves the most trusted digital asset exchange. there have been worries about the hack in may. you have been gaining so many users. there are also issues about liquidity. how do you settle these concerns to ensure it can keep growing and taking on the institutional demand as it grows? >> to be clear, it was not a hack. of illiquidroduct assets. we can see movements quickly in the marketplace when customers place large orders. that is what happened in may and june. we have recommitted to providing stability, transparency, the market integrity institutional

traders require. we do that partly through the new fund-raising round. having raised $100 million, we are able to continue to reinvest to provide world-class service to our customers and what they expect. caroline: the individual who lost $8,000 by coinbase because of his verizon phone, that was not a hack? >> we call that an account takeover. that is when individuals have methods by which they will be targeted for either having their phone ported or their password compromised because they did not choose a strong password. we have a significant team to revive fraud prevention. we help proactively notify customers when we see signs of things happening. we have a number of proprietary steps internally we do. when we look at something suspicious, we lock down the and help the customer as well. caroline: you have $100 million.

plenty of priorities. customer support as you mentioned. what about expansion of the cryptocurrency base you accept? her,have bitcoin, et you are looking into bitcoin cash. anything else? >> we spend considerable time being thoughtful and provide a curated collection of digital assets to trade. on gdax, there will probably be more than we see on coinbase. we want to get our current product to a place where customers are getting the experience they expect and we have a stable exchange. after that, we will look at adding more digital assets. caroline: i'm sure the investor community waits with anticipation. thank you, adam white. coming up, we dive into the latest uber headlines. but one of the company's backers

-- what one of the company's backers is saying. this is bloomberg. ♪

caroline: now to a story we have been watching, travis kalanick is eyeing private arbitration for the lawsuit brought against him by benchmark capital. his attorney said benchmark's claims are subject to the mandatory arbitration in the voting agreement. benchmark sued him saying he duped the company. the suit escalated a simmering feud. joining us to discuss is eric newcomer in san francisco has been on top of all things uber. great to have you back. talk to us about why he wants the private arbitration. >> benchmark put out this letter

today. it's sort of illustrates why he wanted it to be private. benchmark criticizing traffic -- travis for not hiring a c.f.o. and the result of the former attorney general's investigation into the company. that report to uber's board of directors has remained private. benchmark in a letter to uber employees made it clear it was a damming report and there is a lot in there that would look bad for him. given that benchmark is trying to say there are these things you failed to do, it makes sense travis would not want that fight to happen in the public eye. caroline: travis trying to go private. benchmark trying to go public. make clearter, they as to why they have decided to sue him. ofre were a lot of questions

why they did it so quickly. benchmark point of view is they got this huge report from eric holder that documented a toxic culture and that the board agreed with the recommendations, including an independent chair, and even the public recommendations pointed to the fact that maybe travis could not be the one to fix the problems. they asked for a chief operating officer. looking at that report and the problems with kalanick, this is their complaint. there is cause in the letter for why they would want to do this.

♪

mark: i am mark crumpton in new york. you are watching "bloomberg technology." charlottesville, virginia, police chief says a hotline is being set up to enable people to report criminal activity that

may have occurred at saturday's violent rally. attendeesys alt-right failed to follow agreed-upon plan on entering emancipation park. the attendees were gathering to protest plans to remove the confederate statue. >> we did have mutually combative individuals in the crowd. we tried to be patient. we tried to give the individuals in the crowd who wanted to leave, we wanted to make sure they were able to leave safely. we facilitated that process. we had a number of individuals that chose to remain and cause disturbances in our community. mark: authorities say james fields drove his car into counterprotesters. at least two dozen were wounded. one woman was killed. senator john mccain says smear tactics by alt-right groups on h.r. mcmaster deserve an

emphatic response. mcmaster has been criticized by far right news outlets. in a written statement, mccain said mcmaster had served honorably in uniform and sacrificed more for the country than any of his detractors. defense secretary jim mattis says the u.s. will know within moments of a launch if a north korean missile is headed to guam. secretary mattis says if it hits, things could escalate gray quickly into war. he says it is game on if north korea fires at the united states. he confirmed guam is considered part of the united states. i am mark crumpton in new york. paul allen in sydney with reports in a moment. good morning. >> good morning. it is looking like a positive day across the asia-pacific after the strong rally in the u.s. nikkei futures stronger. toshiba will have more difficulties over the sale of the chip unit and issues overpayment could mean the deal

gets slow down. in australia, futures higher by .4% as we wait on the third quarter update from one of the big banks later today. later today, minutes from the reserve bank of australia's august meeting. the cash rate was held at 1.5%. we saw the aussie dollar surge after that meeting after talk of the new show cash rate might be more like 3.5%. elsewhere, we are waiting on earnings from china and japan's industrial production from june. i am paul allen in sydney. more from "bloomberg technology" next. ♪ caroline: this is "bloomberg technology." i am caroline hyde. controversial h-1b visa program has been widely criticized for

costing american workers their jobs. president trump: h-1b visas are awarded in a totally random lottery. that is wrong. instead, they should begin given to the most skilled and highest-paid applicants and should never be used to replace americans. no one can compete with american workers when they are given a fair and level playing field, which has not happened for decades. caroline: however, according to , this piece of program has provided -- visa program has provided economic benefits for the united states and india. the combined income as a result of the program rose by more than 2010 accordingin to the research report. for an us in washington in-depth look into the program is the author of the study.

thank you for joining us. talk to us about where the economic benefits are sprouting from for the united states and the countries where these foreign, talented workers flow from. >> most of this is because of the nature of the jobs these h-1b workers are doing. most are coming as computer scientists from countries like india working in the u.s. it in sepp -- ends up expanding tech production. is not justnology something you and i consume in terms of software, but technology is also something used by other sectors of the economy in the production process. car manufacturers use technology. the banking sector uses technology. innovation and expansion in technology production essentially benefits other

sectors of the economy as well. this expansion in productivity is what raises incomes in the u.s. india benefited a lot from the program. they are the major suppliers of computer scientists. of h-1b visas were awarded to india. indian workers and students acquiring skills valued in the u.s. in the hopes of winning this visa and coming to the u.s.. time, visas expire and return migrants go back to india and bring with them knowledge and connections to help the indian tech sector which group rapidly. there was an increase in tech production and economic growth in india as well. up in a visa ended fitting both the u.s. and india.

--benefiting both the u.s. and india. caroline: the numbers you cite are dating back to 2010. can we extrapolate this was the case from then until 2017? will this be damaged by the u.s. announcing new measures to make the program curtailed and perhaps eliminate the so-called widespread abuse of it? >> the results on average that the two countries are better off is robust. i expect on average both countries to be better off under the h-1b program even down the line. there are distribution consequences. some workers might be hurt by the program. what we find in our research is wage growth for u.s. computer scientists with slightly lower because of the h-1b program. u.s. computer scientists are a small part of the labor force.

the benefits far outweigh the cost of the program. since 2010, there have been other major developments. other countries are becoming major players, china and canada. it is important to take into account there are other countries competing. restricts. tries to the flow of talent from countries like india, we may see some migration flown to other countries like canada. that might in that hurting the competitiveness of the u.s. tech sector down the line. caroline: interesting. this is a global theme to a certain extent. i sat in the united kingdom as we debate the exit of the u.k. from the european union. issues about the free throw -- flow of migrants labor here as well. the less freedom of movement, the more you will damage

economics? >> often you need to look at this on a case-by-case basis. our research focused on h-1b migration. in different contexts, you might find different results. mind important to keep in there are certain costs and benefits. even though certain workers might be adversely affected, you might have to think about whether the benefits really outweigh the costs and are there ways to compensate workers that may have been adversely affected because of the free flow of migrant labor or trade in goods and services. it is important for policymakers to keep in mind that when there are these distributional impacts, that there should be ways to relocate some of the benefits to compensate workers who may have been adversely affected. boom another i.t.

unintended consequence of chasing the dream. what of these changes to the h-1b visa and whether we will see india continue to benefit or not therefore? do you expect overall we will see continuation? do you think this needed to be changed because there have been many speaking out on both sides it was note saying fit for purpose in the way it was being used? >> i am somewhat less concerned about what people thought the original purpose of the program was. i think it is important to evaluate the program on its current benefits and costs. right now, we find the benefits really do outweigh the costs. down the line, essentially what happened is india has become a

major producer of tech, i.t. india has overtaken the u.s. in technology exports. because a lot of this work is being outsourced to india, that is going to affect the technology production in the u.s. the good thing about outsourcing it to a country like india is in as it imports the technology back from india it is cheaper. that means you and i can purchase software at lower prices. other sectors of the u.s. economy as well can purchase better software at lower prices. that is essentially what allows there to be productivity growth in manufacturing that uses this kind of software. that leads to income growth across the board. caroline: productivity growth, something the u.s. is

desperately looking out for at the moment. that was a great report. thank you for joining us. fund has announced a 2% stake in meal kit delivery service blue apron. the stock price is at nearly half the ipo price in june. shares inarly 1000 another company. jana sold its stake in whole foods in july. we will explore the plans to go public and any bumps the game maker may face. this is bloomberg. ♪

in today's revolving door, pandora media will have a new c.e.o. the company announced it has hired the sling tv head. it will be the fourth leader in less than five years charged with reviving the struggling online music company. the appointment is effective in october. birds is one of the most recognizable games on the planet. now the maker of the game is planning an ipo as early as next month. -based game maker could raise about $400 million with a valuation of about $2 billion. i caught up with the c.e.o. and asked him how rovio is planning it. many times, they have tried

to sell the business. a few times over the last few years. there have always been issues about valuation, how much is the business worth. we have seen a new wave of consolidation in the online gaming industry, rio games -- video games. they have been very successful with that. the problem for investors is what is next, what else do they have to offer? i guess that is the main challenge business owners are going to face. caroline: there are signs of diversification. angry birds has been a one-hit wonder so far, but they had newer versions of the game coming out doing well. they are also doing well themselves. >> exactly. some of the funds for the potential ipo will be used to of the the follow-up first which was successful last year. is we areteresting

seeing a lot of companies in this space. some in scandinavia. rovio is being bought by chinese which have nothing to do with video games by the way. with all the issues going on in china with financing and acquisitions, people wonder what is going to happen with this company in particular. are they going to be able to find a buyer at the last minute before the ipo? they tried in the past and were not successful. is the ipo the only route for them as an exit? how are they going to believe in the valuation of the company? that is the main question. caroline: evaluation is pretty high. they are looking for 10 times 2016 revenue. >> that is correct. worriedinvestors are

about these types of ipo's that have not been very successful in the past. the problem is they have tried to sell the business and are seen as a seller so that will create pressure. the franchise is there. they have an amazing brand. especiallynvestors in a shaky ipo market may see that as positive. caroline: it is a local listing? we will not see them go to america? >> one of the main questions is where they will list. our understanding is it will be in europe, most likely scandinavia. that remains to be seen. the u.s. would make a lot of sense as well. caroline: going back to the zyngay of rovio, we saw approached them and offer more than $2 billion and they said

wo we do not want it. this time they are coming out potentially with an ipo. chinese buyers could be looking at them. consent could be eyeing them. >> tencent has been eyeing video games for a long time. they have been successful and aggressive in terms of pricing. bought onehey company. >> it was last year, like a $6 billion acquisition. at bloomberg, we followed that one closely. buyerould be a potential even at the last minute. it comes back to the issues facing chinese companies now. we have seen many of those acquisitions in the last few months. many of them are falling apart. that will be the key factor to keep tension between public and

private investors coming along at the last minute. one interesting idea about rovio is you take a look at two of the crown jewels of finland. i remember 10 years ago, both companies were seen as the paradigm of the finish tech industry. both have struggled big-time. nokia has been able to rearrange a little bit and now they seem to be doing better. as with many other toh companies, they refused sell at a good valuation a few years ago and now find themselves with a lot of challenges. we are seeing it across the board. it will be an interesting story to follow in the next few weeks. caroline: that with some of my conversation with men while the gory -- manuel baigorri.

why alibaba and tencent investors may have more to cheer about. that is next. this is bloomberg. ♪

caroline: alibaba is on a run. the company predicts its revenue will increase almost 50% this year on china's booming ranks of middle-class consumers. shares have risen over 76% since the beginning of the year. investors may have even more to cheer about when the company reports its latest earnings on thursday. joining us to discuss alibaba and other asia tech earnings catching our eye, selina wang. alibaba, what are the key takeaways? >> we are expecting very strong profit and sales growth. alibaba has a lot of macro trends in china. more chinese consumers are buying online.

bloomberg intelligence estimates alibaba makes up 95% of the e-commerce transactions in china. as long as that market is growing, alibaba will continue to grow as well. we probably expect to see more growth in new or lines of business. cloud computing has seen triple digit growth the last few quarters trade digital media and entertainment. investors will be looking to see if losses narrowed in that area. one thing that might have investors slightly where he is as they spendins aggressively to move into new lines of business and target rural customers, where it is expected to have the most growth. atoline: alibaba now trading 64 times earnings. heavy price to earnings ratio. what are we expecting from tencent? >> tencent is expecting another

stellar quarter with double-digit traffic growth. sales growth is said to be secure as well. tencent has not missed earnings in over a decade. there is no reason to expect this year will be different. they have huge growth coming from the new game. it is estimated to generate as much as $3 billion of revenue this year. it is so popular the chinese government said it was causing a negative impact throughout the youth, so they had to put controls on how much time people could spend on the game. are supposed to continue to grow market share. tension has almost -- tencent has almost one billion users. it is the dominant social networking player. there is no reason they will not continue to grow as sales and newer investments like video as well. caroline: just amazing looking at analyst recommendations for the stocks. tencent does not have a single sell.

can we expect these heady directions in share prices continuing? are there any risks? >> both companies have very high expectations they need to reach. both have made risky and large bets. they have both spent a total of $55 billion in deals just for 2016 and so far 2017. alibaba has mainly been investing in off-line retail and tencent in entertainment and content. i want to read a few interesting stats that are very telling. projections for share gains are rising faster than actual earnings. in 2016 --g 70% tencent is trading at 56 times profit. that is almost twice alphabet's 30 and facebook's 38. those are dramatic differences. some analysts say it is

inevitable after time there will be a market pullback and these valuations are much too high. sayinge: they have been the same thing about amazon which is 100 times earnings. thank you so much, selina wang. that does it for this edition of "bloomberg technology." on tuesday, we will have coverage from san francisco and hear from the men who created the event. you do not want to miss it. a reminder we are on twitter. check us out weekdays. this is bloomberg. ♪ ♪

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♪ from our studios in new york city, this is "charlie rose." charlie: the news in washington this week is dominated by missiles, mcconnell, and manafort. despite the crisis over north korea, president trump found time to call out mitch mcconnell over the failure to pass health care. the president's lawyer reportedly accused robert mueller of gross abuse of the judicial process after the f.b.i. searched the home of the former campaign chairman. joining me for perspective is the host of "face the nation," john