>> you are watching bloomberg technology and here is a check of your first word news. white house communications director hope takes is stepping down. she reportedly had been considering resigning for a month. her resignation comes a day after she testified before a house intelligence panel, telling them her job required her to sell white lies. president trump wants congress to put a number of gun safety measures into a senate bill that would increase background checks. telling members of congress that "you have a different president now," mr. trump pointed to the failure of previous administrations to address gun violence. president trump says the u.s.

will use all available tools at its disposal to prevent china from undermining global competition. the remarks come as the u.s. weighs a series of potential trade actions against china. new york's banking regulator reportedly has given deutsche bank and a couple others until march 5 to respond to requests to provide clarity on the business relationship with president trump's son-in-law jared kushner. the department of financial services once more information on previous loan request. we have breaking news. the white house's point top-secret clearances for more than 30 staff. more of that, straight ahead. i am alisa parenti and this is bloomberg.

emily: i am emily chang and this is bloomberg technology. on itsfiles to go public own terms. why the music's jim or is skipping the traditional -- why the music company is skipping the traditional ipo dance. techhe backlash from big reservation. side on guna control. one of the most highly anticipated public offerings of the year is here. spotify is going public. the company is not filing for a traditional ipo instead, a direct listing on the new york stock exchange. filing, spotify revealed it is holding onto the top spot with 159 million active paying by170 million

the end of december. backe thrilled to welcome to bloomberg's caroline hyde. caroline, we have missed you. it is great to have you back and we have been talking about spotify's plans the last few months. what do you make of the way they have chosen to do this? caroline: fascinating, really, and i know alex can speak eloquently to all of this. i had to come back, didn't i, for what will be one of the key european coming of age? nmmodify, not filing form ipo ad just listing shares -- it is interesting because we think it is to say banking fees. because they do not need any more cash. you might think they do not want the drama of an ipo. hot in their minds might be the previous companies that went public, king digital. maybe they do not want that.

notably though, i think this is very swedish. swedes are known to play it cool. the ceo, the chairman and cofounder of spotify, he does not like the limelight. you can hardly find any videos of him, dating back to 2012. this is a company that wants to do things a little bit differently. emily: very swedish. what did we learn about the actual perspective today? alex: they do not get to go on these roadshows and they do not daniel questions. they will be looking at the financial results. of 4.1see revenue growth million dollars. but the company continues to lose money and that is something people will be paying a lot of attention to. emily: is it going to hurt them not to have access to the ceo? alex: when you think of the

music's trimming business, the big, number one question is, is this a viable moneymaking, potentially profitable industry. spotify is the leader by more than double of apple music. but that is great. 71 million subscribers, that is a numbermall slice of of possible people out there that could be consuming music content. you're going to be potentially getting a lot of combing through this 264 prospective that investors are looking at as they decide, what is the real violation for this company, because they will not be the ones making that decision on listing day. this listingoes mean for the european tech scene? caroline: this is crucial because some of the numbers we reacheing with spotify the tune of $20 billion and that is very significant. we have to look back to super

tencent, which was just $10 million. last year, one of the biggest ones that we got super excited had ain europe valuation of $5 billion. thinking of recent ones that have come to the market, some do not live up to the heavy highs that spotify is going to hit. market germany's rocket as well, about $4 billion to $5 billion. the funding circle in london also wants to tap the public market. of deliveruhe likes . thinking of

different local companies, wellington and axle. these companies will make money if they sell their shares on listing day and then funnel is back into european tech. emily: we saw slowing with the traditional ipo route. but do you think other tech companies will take this nontraditional listing route? or is this an anomaly? : i think tech companies are looking at it and a lot of this will come down to the evaluation process with the risk lot onhat it depends a valuation. it depends on what price they are willing to change hands. spotify has given some indications and in private transactions it has traded between $6 billion to $23 billion. depending on how this stock goes

open process goes and what the volatility looks like going forward, it will be something to watch. when asked about going public, the ceo's talk about the distraction of the stop price. , then maybe wildly back to the ipo process before you decide to list those shares. obviously, pandora hast struggled and they were a much bigger competitor to spotify in the earlier days. grownmusic has considerably. there are those that have grown on your side of the pond. modify really distinguished itself as the number one or number two player here? i think it is amazing how much they managed to break away from juggernauts that have such huge cache files. they are claiming to be double the size of the nearest

competitor. , but it is not a direct threat. soundcloud, which is bred in sweden as well, it had such dire straits that at one point, they were thinking of buying it itself. this is a company that has shown it can sustain that growth. we have seen significant in subscriber growth. and they have got to maintain that, though, particularly when you have the chairman and ceo wanting to maintain so much control of this company, like we have seen with mark zuckerberg with facebook. he wants to maintain control. can he keep fighting off the competitors? emily: caroline hyde with us in london. you will be with us every day. thank you both. after the bell, sales report

gained 20% during the first quarter with growth across all product categories. we will have more coverage of force results later this hour. u.s. stocks see their worst month in two years with the dow dropping 1.5% and the s&p falling just over 1%. the nasdaq falling nearly 0.75% and three of the four stocks were also in the red, except for netflix. facebook shares took the biggest hits of the day. brendan carr joins us to discuss his renewed push for5g. that is next. ♪

emily: the u.s. maine commodity regulators are allowing employees to invest in cryptocurrencies. can trade digital tokens as long as they are not purchased on margin or involve insider information obtained on the job. investing in bitcoin futures however is barred. the agency began overseeing bitcoin futures several weeks ago. in just a few weeks, the fcc will vote on a plan to ease federal regulations for 5g wireless equipment. brendan carr will install new rules for the 5g networks, and a will cells that carriers use to power the new speedy

network. this is part of a larger effort by wireless carriers and chipmakers to ensure u.s. leadership when it comes to 5g. brendan carr joins us now from washington. how does your proposal today fit into the larger picture of developing 5g, and moving aside some of the roadblocks? brendan: we are in the middle of this transition now, from what people understand as the current to this 5g4g technology. the big difference is that transition will enable a lot of the innovation you see now, utonomoust is a vehicles., or arey: the regulatory costs one thing and the financial costs are another. networks are extremely

costly. how do telecoms handle that? brendan: that is right. we estimate it should take $275 billion to employ 5g. and these are forms we're looking at to inform our infrastructure deployment rules. the big difference is making that economical. the ideas we put out there today for streamlining are estimated to cut 30% from the cost of employment, meaning thousands of more cell sites that are economical to deploy and they will push these 5g networks emilyt.out emily: how does this fit into the infrastructure plan overall? brendan: broadband is a big piece of that. our broadband infrastructure rules are right there. at the sec, we have the authority to do that and march 22, we are voting on a plan that will help speed the deployment

of that broadband infrastructure. emily: the mayor of san jose california to quit a task force that was examining these issues a wireless deployment, saying that local regulators will lose control. what is your response to that? brendan: there are a couple to options and the one we are getting ready for march looks at the otherocesses and goes to a question of state and local rules and their rules in deployment. there also taking a look at state and local. i think we all have in port and roll here to make sure that these deployments are economical. the cost of deploying these networks is high enough. we don't need to necessarily go into regulatory red tape. we're allcal, the sec looking to streamline these rules.

this week coming from the mobile world congress in barcelona, we have been talking about this -- where does the u.s. fault within the hierarchy? brendan: right now we lead the world when it comes to 4g wireless. a lot of countries look to the united states and they saw we lead the world in 4g. they want to lead the world in 5g. that is why for this global competitiveness, we need to step up to the plate and reform our regulatory structures. if we do that, we will also lead the world in 5g. i think as a country we are in good shape now, we just need to reform our regulatory structures. emily: why do you think the u.s. needs to lead and 5g? can you talk of a the economic benefits when it comes to jobs, when it comes to actual people? brendan: the deployment of 5g is estimated to deploy 3 million new jobs in this country. if we get it right, it is half $1 billion

to the gdp. myself.from selling it we get these high-speed broadband connections to more givecans and it will then them more jobs and more access to opportunity. that is why we are trying to take these actions. emily: if the u.s. does not lead u.s., how might you see citizens being harmed? rendon: there are countries around the world that want to deploy 5g. inant the $275 billion investment to happen here in the u.s. first. i want to see all of those products consumers are reading about launch here first. are waiting for private sector investment and innovation

to take place here. emily: while i have you i want to ask you about net neutrality. the lawsuits have been piling up. sec's topo be the lawyer. what are your chances of winning in court? >> in 2005, these up in court looked at whether they could qualify a title i service and this is a good. we already have legal footing when it comes to our decision to restore free and open internet with the 2015 decision. emily: speaking of media ownership, there has been criticism that chairman pi has paved the way for too much broadcast consolidation, mainly with the sinclair deal. what is your response to that fcc'sw do you think the merger review policies it should be adapted going forward?

our regulations assume that consumers get the news twice a day. once in the morning when the newspaper clunks the front doorstep and at night when they tune into three television broadcasts. the media landscape today is vastly different. so, when we look at media generally, we need to be acting conscious of a modern media marketplace and the different ballots that are there. commissioner, brendan carr, thank you for joining us from washington. coming up, we break down salesforce's fourth quarter and what is driving growth at the cloud giant. this is bloomberg emily: in the world of

automobiles, alphabet has hit a new milestone. cars have logged more than 5 million miles. the unit is currently testing out the autonomous suite in phoenix. salesforce giving a revenue forecast that topped analyst estimates, thanks to the growth of the system. it helps companies build a custom application. for more, i want to bring in cory johnson. you have been looking through the results. what are the highlights? cory: from a wall street perspective, they are looking at the analysis. whether, earnings were up or down and earnings and sales were

up. we saw a 23% pace on a year on year basis and that is important for this company. three years ago they were around 35% a year. growth -- the thought was that when the sales growth slowed down the stock growth would slow down. that was not the case. that is enough to keep this thing going apparently. announced aalso partnership with cool cloud last year. how is that going? different aspects of the business are performing at different paces, but generally, that is performing pretty well. the wall street gain of, keep the estimate conservative. you could go to my bloomberg is in that will how i

move my. face around. emily: so cool. cory: i think there was concern about the billings number. understand the way that salesforce collects money. clients pay for the service and events. what that means is the results really are based there before they get to the quarter. and for that reading, the guidance is really important. i think there was a concern that the bookings slowed them down. but salesforce should be commended for having so many small and midsized businesses with the suggestion that there is a lot more out there to get. emily: and they say the average deal size for large deals is rising. this company has an very inquisitive in the past. twitter is one of the bigger companies that has been rumored that salesforce is eyeing.

how does a company like twitter fit into salesforce? begin towould not present to predict such a thing. as commendable as growth is, they have spent billions of dollars to add to their company in that timeframe. that certainly 80 the growth and we do not really now on a piece by piece basis how the acquisitions have done, how much they have contributed to the growth and how much is organic and very importantly at least to me, whining about something less than 35% growth. he raised the guidance for the next quarter to a limited growth of 20% on the earlier basis. not at least dipping into the teens yet. cory johnson, our editor at large. y'sing up, spotif

turf is being closed in on. this is bloomberg. ♪ mom, dad, can we talk?

sure. what's up, son? i can't be your it guy anymore. what? you guys have xfinity. you can do this. what's a good wifi password, mom? you still have to visit us. i will. no. make that the password: "you_stillóhave_toóvisit_us." that's a good one. seems a bit long, but okay... set a memorable wifi password with xfinity my account. one more way comcast is working to fit into your life, not the other way around. white house

communications director hope hicks is stepping down. her departure comes one day after she testified before a house intelligence panel, telling them her job required her to tell white lies. theresa may says she could never accept some of the passages in eu's document on brexit. u.s. oil production reached a new high in november as the shale boom puts the nation amongst of the world's biggest suppliers. provided a boom

in output. the u.s. is now closing in on russia to become the world's top reserve. vengeanceback with a in europe with flights and transports disrupted across the continent. the u.k. issue the first ever red alert for scotland, which indicates a genuine threat to life. the storm has been located the juliett.t juliette: we are starting off march on a dire note. the aussi dollar, coming under pressure after we saw capex miss. upsidere, you do see coming through in the chinese market. the index has been hit hard

particularly in february, but we had a positive rate on the manufacturing gauge. this is due to a lot of weakness that we see within those material players. let's look at some of the stocks we are watching in the region. mining is one of the worst falling. it is down 1.5% and the oil search and australia is also under pressure. ubs kept saying an earthquake might hold the lng production for at least six weeks. on the upside, you see little bit of positive movement coming through in aussie property stocks listed in hong kong. that is after they forecast sales in china. the materiald, players amongst the worst performers, but you have also got the i.t. stocks.

investors do not have anywhere to hide, financial stocks are 0.5%, along with telcos. that is a quick look at the market in march. emily: this is bloomberg technology and i am emily chang. back to the top story. but if i filed for a direct listing on the new york stock exchange of plans to trade under the symbol spot. the music streaming company is not following the traditional ipo route and instead, plans to skip the price conventional share process. the price will be determined by the buy and sell orders that will be collected. joining us from los angeles is lucas shaw. the us how this will impact $25 billion music streaming industry. --

the music business shrank 15 years uninterrupted from 1999 or 2015.014 spotify is far and away the market leader with music streaming. if in going public evaluation plummets, that would be bad for these investors to pay them more and more money throughout the year. especially because universal, sony and warner owns stakes in spotify. sony, listed in the filing today, owns 2% of the company. it would be pretty bad for them is bona fide tanks in some way. and modified it very well and that would likely be because it is adding a lot of subscribers and growing revenue and almost all of that money is going to those rights holders, more than

70%. as a spotify goes, so go most of the us music base. emily: other music streaming companies that have gone forward have struggled, such as pandora. could this company see a turnaround, or is the story written? lucas: it is hard to see a sharp turnaround for pandora because one of the reasons it has fallen is spot of five. pandora was the first is successful, big online music company with the radio product and then spotify and apple pay around with the on-demand service and it replaced a lot of the use cases for pandora. they could be enough room in the market for three or four room services and most companies hope there is roo so they are not too beholden to spotify. statistics in the perspective that we saw today are particularly promising

around spotify premium service. spotifys that signified has struggled to develop a real ad business. the future, i mean all the money and growth in music has been in getting people to pay for a service and the question for spotify, the question for the market and investors is how many people will be willing to sign up for this. it is going to be something that 500 million people will sign up for? will it completely replace buying cds? or will it be something that only a certain number of people are willing to pay and there is a cap on that growth? spotify is making the argument that it is introducing a new use case, like netflix, and will continue to grow in the years to come. shaw, thank you for

weighing in. has issued scores of subpoenas to take companies and invite her's involved in initial point offerings. what does this mean cory johnson? from theaking news journal, reporting the sec has issued scores of subpoenas to the issuers of these initial point home. over $6 billion was raised last year's new $2 billion, some money has been flowing into these things. the sec is clearly looking into what these icus unpromising investors. we notice very little regulatory action when it comes to the stocks that there.

we see a $4 billion market cap and right here i read a story that says the experience of the investors was not in blockchain, but in bed wetting -- yes, i said bedwetting. the sec alter the stock what about here, but it is open for trading right now and still has a sizable market valuation. that is on the equity side. but these subpoenas are about the initial point offering. the initial card offering has so many companies interested .elling coins to investors eminem, the gun control that the tech world. we look at the growing backlash over the nra and streaming services, next. if you like bloomberg news, check us out on the radio. listen to us on the bloomberg , bloomberg.com, or

sirius xm. this is bloomberg. ♪

emily: youtube's new moderator was brought in to spot fake new s. they stumble during one of the first major tests. the video says screeners mistakenly pulled right wing channels in the wake of the parkland shooting. and on tuesday some begin complaining about their accounts being pulled entirely. youtube says it will continue enforcing the existing policies. since the parkland high school

shooting over two weeks ago, gun control activists have managed to get companies like hertz rent a car to sever ties with the national rifle association. one group that has not been swayed yeah, big tech companies, like apple. these companies still offer access to nra tv, the gun lobby group's free online channel focusing on program content. can these activists do something that they are often loath to do? pick a side in a hot debate. through what is happening, first of all, and what has happened over the last few days in terms of backlash against these streaming services. >> since the shooting happened in florida, we see growing calls on twitter from activist and them fromto stop streaming nra tv.

we have seen david, one of the survivors of the shooting, make thousandlls, 100 dollars, to move over to competing services. do have a couple tweets, one from alyssa milano, calling for a one-day boycott of and we have a tweet from the student david. at this point, we should just use ebay instead of amazon. ebay uses the u.s. postal service and does not support nra tv. reporter: now, for the car , for them it is just about ending a financial relationship. they are no longer offering these member discounts. for the streaming services, like amazon and apple tv, roku, they could run into free speech

issues by silencing a media source. and there are concerns they could be alienating a large portion of their user base and a significant part of the u.s. population doesn't fact, own guns. emily: amazon does not sell that's an apple does not sell them, so what do you make of this threat of a boycott. >> this shows how far gun control activists are willing to go in terms of brand recognition. people understand it is associated with the inner a merely by offering the nra tv through the devices and services. it is a question of association. nra.comyou can go to right now and watch that all they long. but any association at all with the nra brand is coming under target from gun-control activists who feel they just

want to see some sort of action taken to marginalize this pro-gun lobby. roku specifically said they would not remove nra tv, and they would only remove a channel if they did something illegal. what have the other companies decided? >> they have declined to respond and they really attended to stay politically neutral. they do not want to alienate the user base. over the last couple days, we have seen the call for amazon really escalate. primeeople are canceling subscriptions and we have seen more people talk about ways you can purchase the products you one on amazon without going to the website. there are also people tweeting the responses they are getting from amazon, asking them to cancel this nra tv streaming. currently, amazon is feeling the pressure, but i think the response from the companies will rokury similar to what

said. emily: you have been following this on social media. at some point, they will have to respond here. spencer: yes, that is what has been fascinating, the standoff. people are encouraging each other to keep up the momentum. tohas gone beyond one tweet encourage amazon to stop streaming and or a tv. now people are proudly posting photos of the response they get when they cancel their prime account. like selena said, they are even coaching one another had to purchase things online without using amazon. that part is actually kind of funny. whoa, you can buy something online without going to amazon? yes, you can. they are strategizing to use amazon for reverse shouldering. you can bypass amazon and find

the shareholder in a different way. there is a big conversation about boycotting amazon and people boasting about canceling prime memberships and even coaching each other on how to the experts say they are affected once they threaten the reputation of the company. at what point would it come to that. these are companies that are fairly used to getting pummeled. and they have in many cases not made that political stand. the firstis was not time. they face this year after year, over a decade of their existence, and they survived and we haveand all those

seen protests in the streets to remove donald trump on the platform. not wanth companies do to have to control the type of information flow going through. just want to be the platform. i do think it will be surprising if amazon does nothing. thanang, thankabg you for sharing that update. joshg up, we hear from silverman about how he crafted the company's best quarter to date. this is bloomberg. ♪

emily: facebook already has the marketplace to purchase goods and services and now wants to be the only destination when looking for a job. they are expanding the job section, meaning users in 40 countries can search for new

employment there. facebook will also invest nearly $1 billion in teens, technology and more programs in 201 e.r'this, after the fourth quarter beat estimates. marketplace hit more than $1 billion in gross merchandising sales. i sat down with josh silverman and asked what the company is doing to boost the seller and company revenue. of sameness we'll need etsy more than ever. we are proud of the fact that we had a $1 billion quarter. billion of international sales in the course of 2017. importantly, we grew faster in the fourth quarter. right now we are working a better job of search and

discovery with 50 million unique items for sale. so, finding the right feud to show is very important. onare doing a better job trusting the liability. capabilities in fact, we announced we've done more than three and 50 product enhancements just since may with over trade percent of them leading to demonstrably higher gms. so, we are going much faster, making the community better. changesow are these

coming up internally and externally? >> they went through hard times over the summer, the team. but what we are seeing is we are serving the selling community better. emily: you have got giants in the room, amazon especially. how big a threat do you think amazon is. unique, inis really if you think about our space, the way that theory better pricing is by purchasing 10,000 units and passing it on savings.

is selling itself on the table? >> now, we feel great about the market opportunity we have a. when i joined the ceo in may, i said, i believe we have a good market opportunity and that we can grow quickly. we feel great about the next three we are on. emily: but could you thrive better within a larger company, the great thingin

has been the day job. 86% of the users are women and they count on us to wake up every single day and deliver on their behalf. we are socially responsible and socially conscious as an organization. focuses changed is our 86% of our sellers are women in our buyers are disproportionately female as well, so having a diverse

culture that reflects the diversity of our market is important. we also get better ideas when we have people coming from many different backgrounds. we embrace all forms of diversity. we are making progress, but there is still room to go. the results show that we are looking at the worst group of candidates. silverman. was just and that does it for this edition of bloomberg technology. a reminder, we are live streaming on twitter. that is all for now.

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