♪ jessica: i am jessica summers in new york and you are watching "bloomberg technology." here is the first word news. president trump plans to sign a formal order imposing 25% tariffs on steel imports and 10% tariffs on aluminum. he says today's move will provide a boost to american producers. pres. trump: they have been unfairly treated by bad policy, bad trade deals, by other countries. they have been horribly treated by other countries, and they have not been properly represented. more importantly, because of that, workers in our country have not been properly represented. jessica: president trump is discussing suing opioid manufacturers along with jeff sessions.

he confirmed the administration is rolling out a policy on fighting narcotics. national security adviser h.r. mcmaster could be replaced by as -- replaced as early as next month. his exit is reportedly being orchestrated by chief of staff john kelly and secretary james mattis. he could be replaced by an executive. the u.s. ambassador to mexico roberta jacobsen will resign her post this spring, in the wake of escalating tensions between both countries. mayresignation takes effect 5. global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. i am jessica summers. this is bloomberg. ♪ emily: i am emily chang and this

is "bloomberg technology." coming up, doordash becomes a unicorn after a funding round led by softbank. 100 billion dollar vision fund lottery. platforms have a deadline on hate speech and terror propaganda. we're live with an update from london. one year ago tomorrow, snap officially went public but , employee morale is an all-time low. we look at the hard year that was for the social media company and the road ahead. first to our lead. u.s. stocks continued to selloff, all the major averages tumbled more than 4% after president trump promise to impose substantial tariffs on foreign metals. tech stocks were also hard-hit with tesla, nvidia and alpha that among the biggest decliners.

we are joined by an editor in new york. walk us through the day that was. >> we started out in a good place. the market seemed to like the comments coming out of the jerome powell, testifying on the hill earlier this morning. stocks were higher. right around noon eastern time, the president came out with a statement saying he's going to slap tariffs, 25% on steel, 10% on imported aluminum, and that just started a long and slow decline. we ended up down 1.4% on s&p, 1.3% onon the dow, and the nasdaq. it was not a good day and a lot of this has to do with the fact that people were not expecting some of the trade rhetoric and the trade talk that has been coming out of the administration to culminate into decisive action the way he had indicated today. emily: this kicks off the first session of march after a

disappointing monthly performance in february. what are we looking ahead to? romaine: we started out today -- this was not the right way to kick off the month. right now you are talking about a scenario where the last few weeks we have worried about monetary policy, fiscal policy, and now you have a trade policy factoring into the equation as well. that is causing a lot of people to retrench or re-price where they think equities should be. we saw people coming out of equities primarily with mega cap and multinational companies, you saw it with google, apple, pfizer, these companies get over 50% of sales overseas or at least outside of north america. that is going to play into how investors value them should this escalate into some kind of prolonged trade war. emily: do you think the volatility we are seeing now will spread globally? romaine: it is certainly not going to be good for asia tomorrow.

the vix is up 35% this week alone. you are seeing a lot of volatility. the dollar weakened against all of the major currencies. when you have this type of uncertainty where investors cannot look at their portfolio and make an accurate assessment where that portfolio will be one to two months from now, you will get these types of swings as people take different sides of the trades. emily: thank you so much for giving us that update. the latest winner of the softbank lottery is doordash. a food delivery app. softbank the vision fund is investing $555 million in the san francisco-based company almost triple than what it has , raised in the last five years. they have poured billions into tech firms such as uber, lift k, flipkart.

olivia from bloomberg technology joins us now. i was shocked, it's a lot of money. >> it is a huge amount of money and it speaks to the confidence that these major investors have in the food delivery . a year ago they were floundering. emily: many have not survived and it is like a graveyard at some of these companies. >> yes but uber eats has come out as a popular app. uber's ceo dara khosrowshahi saying uber eats will be the most successful food delivery business in the entire world. speaking to how it is one of uber's most successful options. -- offshoots. emily: is there a conflict of interest because softbank also invests in uber? >> they put money into uber last year and a huge amount of money, over 50% of this $535 million

into doordash. it is a conflict of interest. i think that softbank wants to spend a lot of money on different bets and is placing another chip on the roulette table. it sees that there is space for both to win. emily: in barcelona earlier this week, the ceo of the softbank visions fund. take a listen to what he had to say. to do is toant empower the consumer because we believe we are in a secular trend where technology is not going to bring access to one million more consumers around the globe, to the internet and the digital world, but to the existing consumers, giving them better services and products. we can eliminate distance and time, no matter where they live. emily: he is speaking to the consumer focused strategy. they have invested in these

flipkart. nvidia, but why doordash over popular alternatives? >> postmates is different, and people don't realize this. doordash is building relationships with restaurants, building partnerships and allegiances with them building , data for the backend and letting customers let them know what they want. but a company like postmates is focused on developing relationships with customers. what we are saying, investors approach istaurant more defensible. especially a large chain like wendy's or mcdonald's will be less nimble. they will pick one partner to work with. customers are fickle and will go where the best deal is and least expensive delivery. emily: it is interesting because doordash was struggling to make -- to raise money. these vision fund investments are so large and you have to

wonder, are they keeping companies afloat that should not be afloat, or are they giving companies a chance that wouldn't have gotten it otherwise? >> that is a tricky question. it is a good question to ask toni who was going to come on the show tomorrow. sometimes they needed just a little more time to get settled, a little more runway. softbank certainly thinks it is a good business and sees potential in the delivery . one thing they said was, we've only scratched the surface of food delivery. 95% of deliveries are still made through the telephone. which is remarkable. only 5% are made through mobile and websites. we think there is a large opportunity here. tony says he sees this market as they $200 billion potential market, potentially worldwide. millennials don't want to get off the couch.

emily: i don't want to, either. bloomberg tech reporter olivia zaleski covering food, thank you so much. as olivia mentioned, we have more on this story and we speak with doordash's ceo. media could bet filing for bankruptcy. the ceo spoke about bankruptcy papers that could be used on the first day of court proceedings. there is an effort to save iheart media, but the bit is not high enough to sway creditors. the company has struggled to meet payments, missing interests due on the first of february and on two more sets of bonds. coming up, european regulators giving big tech firms new orders concerning illegal content on its platforms. can the likes of facebook and google keep up with removing of material? and if you like bloomberg news, check us out on the radio and in sirius xm. this is bloomberg. ♪

emily: customers of the sky tv, the uk's programming will soon , be getting access to netflix. users who already have it will be able to bundle the streaming giant into their existing bills. the move comes as netflix gains traction in the u.k., getting subscribers since it began operating there. big tech firms have new orders from the european union. erase illegal terror content within an hour of being flagged

or risk facing new laws and stricter regulations. in a statement, they stressed the importance of the policy saying considering that , terrorist content is most harmful in the first hour of appearance online, all companies should remove the such content within one hour from its referral as a general rule. , caroline hyde has been covering this from london. has been the e.u. putting pressure on these companies for some time. one hour, is that possible? carolina: and they seem to think it is. i wonder if facebook, youtube, and the like have been a victim of their own success. they have been getting faster, putting artificial intelligence to work, bringing in bigger teams, facebook said we have 150 people dedicated to taking terrorist content off our network. therefore the e.u. is saying, go faster, go faster. two years ago, we heard from the

companies themselves as saying, we personally will sign up to taking down this sort of content within 24 hours. but then the top got tougher from the likes of the government. germany said if you do not take it down in 24 hours, we will find you up to 50 million euros. another prime minister saying we want it down in two hours. now the e.u. saying we want it down in one hour. these are soft laws, not on the books. they clearly feel they can double down to get more efficient. emily: how have these companies reacted? caroline: they are straining with this. they have not come out individually, but we have heard from representatives of the companies, i will bring your attention to the computer and communication association. they say such a tight timeline which doesn't take into due account all the restraints linked to the account removal

and will force providers to take down all reported content. here is the kicker -- what if it impedes free speech? this has been brought up again and again to the governments of the e.u. and they do not have a good answer for it. content if youst , only give it one hour, maybe you will mix it up with people's views and a stifle free speech. as long as it is not inciting hatred maybe it has a place , online. therefore there is a difficulty rising. digital rights people are saying you are asking facebook and google to be censors here. you are institutionalizing facebook and google to be regulating free speech in europe. emily: europe has been putting more pressure on these companies than the united states. why do you think that is? caroline: i think it is cultural

and i think there are more terrorist attacks in europe than in the u.s.. we had a whole spate of them. think of the atrocities in paris just over the last few years. they got brought to the fore with the united kingdom. we had the terrorist attack in westminster and the music event in manchester. the governments remain powerless as to how to control this. one area they felt they could control, the social media giants, they could attack the u.s. that little bit more. notably, they have been trying to show authority and response in this way. it is interesting also the governments have realized artificial intelligence could help them in this area. they could get faster. like i said they could be a , victim of their own success. twitter had to ban almost one million user accounts because of terrorist and hate speech coming from them. we do see more cause for this.

but i raise your attention to the general counsel of google. he said about six months ago the , computers are not there yet and you need a human touch. therefore, can you really bring down this content in just one hour? emily: when it comes to ai, how does that play a role? ai versus humans? facebook has come out and said, we are deploying artificial intelligence to see what is terrorist-like activity. maybe the computer will be able to recognize this is terrorist related activity. companies have been working together. we have gathered together and can play can placate a marker on one video where if we see it being , uploaded to a different social resource such as youtube, or twitter, it will automatically come up with those companies' books, and they will

automatically take it down. artificial intelligence and camaraderie could work to a certain extent. what the e.u. is calling on, we know you have money to put into ai, but what about the smaller players? what they don't want to see is illegal content come off of the big players but suddenly rear their ugly heads into the smaller platforms that don't have the resources that the bigger players do. they want more computers involved but as these big companies say, we need humans as well. emily: caroline hyde in london thank you so much. coming up, snap is celebrating its first birthday. as a publicly traded company. we take a look at the volatile year that was and what is next. bloomberg tech is live streaming on twitter. check us out weekdays 5:00 p.m. new york 2:00 p.m. san francisco. this is bloomberg. ♪

emily: snap is celebrating its

ipo university but it has not , been all smooth sailing for this social media upstart. sarah frier looks at the highs, lows, and the road ahead. >> it has been one year since snap's ipo. and we still have a lot of questions. after snap went public it made huge it changes, it rolled out a bidding based advertising model, which caused at prices to fall. it also separated friend posts from post by celebrities in the media. that is a move that has seen lots of public backlash. in fact there was one tweet by a , social media superstar that wiped out $1.3 billion of their market value in one day. last month that the company posted its first quarter, beating analyst estimates, causing the stock to surge. fan base isp's growing steadily with daily active users pushing 200 million.

internally, snap did not reach their own goals so employees , didn't get the 2017 cash bonuses that were planned. the leadership team has been working to improve employee morale and work on their transparency. but chief executive officer evan spiegel has a reputation of not appreciating criticism. and has lost a slew of top executives. defenset made in snap's . it is crazy. emily: joining us now, our very , sarah frier.t talk about the bigger picture when it comes to morale. what is happening? sarah: there is a company where there is a feeling you cannot criticize evan in meetings. he is aware of this criticism and yet when people have left the company, they have been replaced with people who understand the culture. including the general counsel

who was his personal lawyer beforehand. there is concern that he is not willing to take feedback. but the company is aware of this and are trying to fix it. and evan sent a memo to employees saying don't make dishes and's because you think it is what i would like. do it you think is best for the company. beyond that, they are doing surveys and open q&a sessions. he is talking more about what is going on. maybe it is a positive step. emily: we saw mark zuckerberg for example make a huge evolution over the course of running facebook. is the same possible with evan spiegel? sarah: i think it will have to be. he has gotten to the point where snap is trying to establish itself as an advertiser. but if you look at the first year of the company, it has been a very volatile year in part because of the decisions the company made as far as what it

wanted to change. there was the advertising business, where used to be a very premium buy to get a snap ad. now it is an automated bidding system. because the bidding system, everyone is used to it more , marketers are playing along and the demand is low for now so , the price went way down. they are building that up, it will become more familiar. on the flip side, the redesign which is a complete rethinking of how users should use the app. separating social from the media. it has gotten public criticism. as we mentioned in that segment. they have a lot to build from. it seems they have established themselves and now they need to make sure that people understand that they have a clear vision going forward. emily: speaking of, mark zuckerberg sold nearly $500 million in facebook stocks last month. what is the story there? sarah: this is not a surprise.

he would try to unload a lot of shares to be able to spend that money on his philanthropic investments. this is something we will see more of in the future because he is trying to get rid of -- the thing that is interesting about this now, he tries to get through this provision that it would not reduce his voting power to offload shares. shareholders went against that. a suit was dropped. they settled it, they said they were not going to do this change after all. as zuckerberg unloads his stock, he has less voting power. emily: also interesting, given it was not a good month for the market. sarah frier, thank you so much for that update. coming up, spotify is seeking support on wall street after rolling out an unusual ipo plan. we hear from an investor from the streaming music service. this is bloomberg. ♪ mom, dad, can we talk?

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>> it is 12:30 in hong kong, i am debra mao with an update of the top stories. the u.s. will impose tariffs on steel and aluminum next -- imports. meeting with an executive at the white house, president trump the industry mean has been treated unfairly by global rivals. ? they have been horribly treated by other countries and they have not been properly represented. more importantly, because of that call, workers in our country have not been properly represented. is a stupidd it

trade protection measure, which will only make the u.s. weaker. australia warned it would distort trade and threaten dogs. -- threatenjuncker jobs. china's crackdown on financial risk may have netted another catch. china energy, ye jianming, is under pressure for what is described as economic issues. they said it was unfounded and irresponsible. global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. let's check on how the markets have been trading in the asian pacific. here is juliette saly in singapore. >> as you can expect some of the trump towers weighing on sentiment. asian stocks down a fourth consecutive the session,

following a third session of losses on wall street on the s&p 500. the nikkei index leading the declines, down 2.2%. we have seen the dollar fall across the board. jay powell speaking at the senate testimony. the yen pushing through that 106 level briefly earlier today. you can see widespread selling across the asian market, including hong kong and china, which had a rebound. yesterday we focused heavily on the steel producers. 1.6%.re in singapore down aluminum fairly steady, up by 0.1%. as you would expect, many producers affected here in asia. blue scope steel rising because they said they had a north american business and could benefit from trade tariffs. elsewhere, steel producers in south korea, taiwan, japan, all

coming under pressure. posco down 5.4%. this index of steel producers in asia off by 2%. we are counting down to the open of hong kong and china at the top of the hour. this is bloomberg. ♪ this is "bloomberg technology" and i am emily chang. we continue to dig into what could be the biggest tech ipo's of the year. spotify's direct listing. to company's valuation rose 23 $.4 billion in the private market this year. co-founders are holding a majority of the shares. tencent ranks as the second-biggest shareholder. they snapped up 8 million shares of spotify last year. for more, i would like to bring in nimay mehta, a partner and also an investor of spotify. thank you so much for joining us. we have been talking about this nontraditional listing.

what do you make of it, because it is a bigger risk. get signals a lot of strength by the company and management. most businesses put money on their balance sheet with the intention of spending it. spotify's management team is saying we don't have to raise money, our business is free cash flow positive, we have a strong balance sheet, we're adding subscribers, so we don't need to raise new funds to fuel our growth. at the same time, they do have an ambition of being publicly traded. they want to recognize some of the value that shareholders have created over time in the business. this is a happy medium between being publicly traded but not to -- traded, but not necessarily deluding themselves or shareholders with money they don't need to spend. emily: earlier, was that something you plan to take advantage of? nimay: we are very bullish in

the business. we had a long-term view on spotify. the company has posted growth for a very long time. they have 70 million subscribers but we think that number can grow into hundreds of millions of subscribers overtime. and be a business valued similar to netflix. our goal is to be long-term investors. we have been investors for a while, but there is nothing stopping the business at this point. the market leadership, they have more subscribers than apple music, almost twice the amount. they are scratching the surface for what is a long journey of streaming adoption in music. emily: we have been talking about tencent's relationship to spotify. obviously they have tencent music. do think that investment from tencent could catalyze more global growth for spotify? spotify made an

investment or share swap with tencent in the fourth quarter. so spotify does own a piece of tencent music. that is their angle to getting in the china market. spotify is already operating in 61 countries today. they do have a global audience and footprint. they have more than one billion smartphones operating in the markets today and over 3 billion folks that listen to the radio. it is a global business already. as it relates to china, their angle is the exposure to the tencent music aspect. emily: we have also been talking about the vision fund, they made a $500 million plus investment into doordash, a company that had struggled to raise money. do you think softbank is good or bad for the tech startup ecosystem? nimay: in general -- we thought about this a lot and had debates internally -- the idea of a

investorwell oriented is well-received by entrepreneurs and investors combined. softbank has demonstrated their ability to be long-term. we saw what they did in alibaba, investors for more than 15 years now. having a patient investor by your side is valuable. in many ways, softbank is offering an alternative to some of these businesses going public. we think that is a positive. i think the debate we have it internally is around quantum and the amount of money. what is the appropriate check sizes for some of these businesses? some of these investments we and some -- wend are trying to figure out what we are missing and build a better understanding of what softbank sees long-term in these opportunities. emily: it is also more competition for investors like yourself, regardless of what stage you are investing at. i am curious if it is going to be tough to compete in a world

where they have an unlimited amount of cash? typically, at lead edge, we are investing a bit earlier in the lifecycle of the business. it's possible that we can hand our shares to softbank. i think the global tech markets and the amount of enterprise value created over the last five years, you look at amazon and facebook, we are talking trillions of dollars in market cap. the question is not so much what comes out of the pockets of private market investors, but rather, most of these businesses decide to go public even later than they otherwise would have. amazon went public at less than a $1 billion valuation. we saw facebook at $50 billion or $100 billion. there is more value that accrues to folks on the public side versus the private side. emily: you have a fairly diverse portfolio. where do we see you placing bets in 2018? nimay: we continue to look at artificial of -- artificial

intelligence as an area of focus. security is a huge area of focus for us. there was a lot of spending going into security by a cio's. and internet marketplaces globally. the ridesharing phenomenon we continue to explore abroad, and derivatives above it. lead edge capital partner, thank you for joining us. microchip technology has agreed continuing aemi, wave of the consolidation that has swept through the conductors industry. 7% on theemium of holding price. the deal is subject to approval andicrosemi shareholders should close in the second quarter. coming up, can twitter finally be nice and end its online

harassment problems? that is what their ceo's latest tweet says must happen. this is bloomberg. ♪

-- insiders and violent rulesers and crystal-clear breakers. nonhuman actors are massive problems and it is not just the russians. undermines all the principles of the site. there was a lot to unpack. let's talk about this public outcry. they're asking for submissions to help them decide. jack is admitting they need to less toxicnversation and more civil, but do not quite know how. it is open to anyone in the

public. they will provide data access to twitter as well as significant funding. isly: part of the problem that twitter does not clearly enforce the rules it already has. a prime example is donald trump, the fact the president of the united states is still allowed to tweet controversial, hateful and abusive content. fine line to walk. how did they determine the difference between hateful content and not running into free speech issues? let's be real. a lot of these more controversial and hateful account have huge followings. >> they don't want to lose their monthly active users and the type of audience those players draw to the platform. emily: what about bots? >> this is part of the bot problem they face. there is still a lot of skepticism about the technicalities they can fix, given the fact they don't have a

huge engineering headcount like facebook or google can do to hire these people. as they are trying to clamp out these automated bots, we're seeing more and more fake accounts and bots being created. wang, thank you so much. lots to do. emily: bloomberg lp operates a global breaking news network on twitter called tictoc. when it comes to social media facebook, instagram, and snap , reign supreme, but a new upstart wants to be your go to sharing destination. this is bloomberg. ♪

emily: equifax says that an additional 2.4 million americans were impacted by last year's data breach. to the a lesser extent people who had their social security numbers compromised. the credit union says that newly impacted consumers have their names and partial drivers

license numbers stolen but not , information on when or where they were issued or expiration dates. it is called vero. last week it was practically unheard of. now it is a push to be your go to cap. it promises to be free of all the things users hate, from its social media rivals, things like ads and algorithms that keep your feet at chronological. -- from being -- that keeps your feed from being chronological. >> i think there has been a growing sentiment with people who use social media today where they feel the network does not allow them to grow their audience in a way that makes sense to them. and differs between vero

other networks, we provide a platform free of algorithms, free of ads, bots. it is your relationship with your audience directly, using a chronological feed. >> can you give us an update of how many people are coming onto the app on a daily basis? >> we just announced one million users have registered on vero. growthseeing tremendous on an hourly basis, which is affecting the performance of our servers. we are working very hard to put things back into a normal operational state. >> you say the difference is you have with the like of facebook and instagram. while you have these technical issues you will not bring , payments to subscribe to vero. will you overcome those

challenges and will we start to see advertisements come for you or any kind of moneymaking from this particular app? is,hat we announced today oute we are sourcing technical difficulties associated with this tremendous growth, we are not going to turn .n subscription therefore, everyone who registers today gets vero free for life. what we will announce in the future is a date when we will and thata subscription will be for new users. everybody registering today gets to use vero free for life. we won't charge them. it will only be for new users downloading the app. they will see clearly a subscription amount and all the details with a that. about the reason

for your sudden popularity and perhaps frustrations in rival social media. perhaps instagram, facebook, and algorithms, the advertisements. what about the rise of fake news? what has been the sudden catalyst? vero has been around since 2015. >> we have been building things purposely, looking at every --ture to always question not for the target to create addiction but to make vero a useful tool and a habit. we are not in strict -- we are not instrument -- we are not interested in the amount of times you open the app. we just care that you find it useful. in whichever of the features it has. thing.ot a normal everyone uses the word algorithm.

i am a computer science major. that should be as far as it goes for people talking about algorithms. today, the algorithmic approach has become something quite understood by people and it comes out of the frustration in the way it has been applied. >> what do you want people to be using vero for? sharingimarily a photo app, but you can do other things within it. >> we put as much emphasis on the different types of things you can share. yes, you can share photos and video. anything from your camera world, essentially. you can also share any linked to anywhere online. we allow you to do that in numerous places. between your bio, the caption of a photo youte on

post or a video. but you can share links as well. you can share music that you are listening to, books that you are reading, movies and tv shows you are watching, and places that you go. essentially what we want people to do this for is to really express themselves in the way that they want. >> what about rival reaction? how do you expect the likes of facebook and instagram to react? will they move away from the algorithms you talked about, the advertisements use adjusted? if the things we are doing inspire others to do better, that is extremely satisfying. think the business models they are currently in make it very difficult for them to move away from that. it is not that there are gains to chronological feed, it just does not make sense for their business model.

their business model requires people to use the app as much as possible. therefore, they need to always come up with ways to increase growth, etc. always have something that can bring you back into the app and use it more often. we are not about that. we believe technology should serve us, we should not serve it. we should be free to live our lives the way that we want. and technology should be an enabler, not a detraction from life. emily: that was vero ceo and bloomberg's caroline hyde. that does it for this edition of bloomberg technology. check us out on twitter at 5 p.m. new york 2:00 p.m. san francisco. that is all for now, this is bloomberg. ♪ retail.

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