has reassured presidential aides that no staff shakeup is imminent. that is according to sarah huckabee sanders. she told reporters that john kelly informed aide there are no immediate personnel changess at this time. federal regulators say a russian government hacking operation aimed at power grids in the u.s. did not compromise operations at any of the nation' nuclear power plantss. corporate networks at some of the plants licensed by the nuclear regulatory commission were affected by the hack, but no safety security, or emergency functions were impacted. florida authorities said today that the cable suspending a pedestrian bridge were being tightened after a stress test concrete spanon collapsed over traffic thursday, killing at least six people. afteridge collapse came it was celebrated a a technological innovation. nancy pelosi took to twitter

olive and the death of new york congresswoman louise slaughter. she said she benefited from slaughter's friendship and counsel for years. globaglobal news 24 hours a day powered by more than 2700 journalists and analysts in more than 120 countries. i'm mark crumpton. ♪ emily: i'm emily chang, and this is "bloomberg technology." coming up, apple's big reveal. why the tech giant is heading for the midwest for its latest announcement, and what that means for classrooms everywhere. begin with the u.k. tech scene after brexit.a high-profile battle with uber . where do the tech firms stand as well as funding? and how amazon's bottomless

appetite "america's nightmare. why the biggest fear of so many businesses today is being amazoned. but first to our lead. when it comes to big announcements from apple, the tech world winds up in its headquarters and the company unveiled the latest iphone, who watch, or something else. but the next big reveal is coming march 27 at a different location, a chicago high school. thanks to the invitations sent outcome is rampant about what this means from a new apple pencil and ipad2 a revamped strategy to dominate classrooms across the world. here to tell us more is mark, who covers apple and technology. whether you think is going to be happening here? mark: as the invitation indicates, it will be an education focused event. this will be the first time they have done this. they did this between january and february of 2012. six years ago, they announced new features for classrooms. sounds like that is what they are going to do again this year.

this is at a high school in the chicago area, which has one of the biggest public school systems in the entire world. ipads, cheaper models, entry-level, something geared to students and teachers being able to be purchased in bulk, likely a cheaper version of the mac laptop. it'll be the 10th anniversary of the macbook macbook air. actually, that was a couple weeks ago.coming up is when it started shipping 10 years ago. new stuff in the book space, classroom space.they are working on a new framework , which allows developers to build apps and distribute them to students and teachers more easily. a new version of ibooks renamed to apple books. emily: i am sure everyone at the high school in chicago is excited about this. how big is apple in the education system at this point? what do education products add to the bottom line? mark: apple is a technology company that has become synonymous with a few key things. one of them would be design, studio production.

education has always been a really core tenet of the company from the beginning. it was what steve jobs founded upon. they are not going to let that go. they had a rejuvenated approach to music with apple music, something they forgot about in past years. let's like they will do the same thing with education and bring it back to the forefront of the company in terms of hardware and software product announcements.i am looking forward to going to chicago to check it out. emily: the ipad is a device that has struggled. the growth has researched over the last couple years. curious how the ipad is a class of device versus something that is used more broadly. mark: that is exactly right. when i was in elementary school and middle school, in our school, we had ibooks. it was a big laptop with battery life these days much better. graduatingvisited from that school 10 or 12 years ago. emily: let's not talk about that.

mark: they have ipads. clearly, there has been a change in schools from laptops to ipads. the ipad really has loyalists. emily: this is the same day as the samsung s9 launch, right? is there a samsung event happening around this time? mark: there is the announcement of a phone on march 27. speaking of simpson, you're right.over the next week, they are rolling out their new s9 phone. you can check out our review of that. that is something people will be talking about at the same time as well. emily: everyone will continue to speculate, why chicago? mark: it is interesting. it is one of the biggest school systems. they found a nice high school there. they have some connections to chicago, the mayor. there is some history there. emily: talk to us about the other events for apple this

year. mark: on june 4, apple executives in san jose will be announcing new versions of software and hardware for apple's latest products. there is going to be ios 12. fun newl have some features like for bloomberg users out there, it will have a app.stocks there will be new features for and s, facetime calls, had pros. so we might see those there. but the highlight for developers and end users will be become a appsn of amc apps -- mac and other apps. it will bring up apples game in terms of the ecosystem, which has become important. emily: last year, they unveiled the homepod. we got to speak with tim cook. it was very unusual for them to introduce a new hardware device at that time. could we expect any surprises?

mark: what apple likes to do sometimes is unveil a device geared to the ecosystem. and then actually release the hardware six months later. they did that last year with the home pod and the pro. a few years before that, they announced the macro in 2013 in june and released it in december. apple is working on a new version of the mac pro. so it could make sense for them to give us a sneak peek of that and release it to the end of the year but we will not know for sure until then. emily: in september, we are expecting another launch. mark: let's jump to september. they are going to announce three new iphones. a giant 6.5 inch screen of the iphone, bigger iphone x, and a current update to the iphone x design as well as a cheaper model with the lcd screen instead of oled. emily: what are we expecting

other companies to be rolling out? what do we expect from samsung? mark: this phone they are going to announce next week has been theained to the as some of more exciting phone launches of the year. it has a really unique design. will be in france, which is interesting. speaking of off-site introductions. they areally think is holding their fire until they at thet with a new phone end of this year. emily: all right. i know you will keep us updated every step of the way. thank you very much. warned ofr the fbi russian hackers trying to breach key u.s. infrastructure like power plants and air traffic systems, china is being accused of rampant hack attacks on u.s. companies. wave ofas launched a

attacks in the disputed south china sea. they are trying to reach u.s. engineering and defense companies linked to our operating in the area. coming up, we will discuss how london's top officials are luring big tech to the city despite brexit. that is next. if you like bloomberg news, check us out on the radio, listen on bloomberg radio app, and on sirius xm in the u.s.. this is bloomberg. ♪

planning to sell off telecom powers in france and portugal, the company is targeting 13,000 tower sites into countries in the first half of this year to dispose of assets and cut debt. the portfolio is the largest .ver come up for sale in europe the company announced it has begun exclusive talks to sell its international wholesale voice to your business in france, portugal, and the dominican republic. record levelscted of investment for venture capital last year to help fuel its tech economy, and its leaders are hoping that 2018 builds on that. just last week, the london mayor spoke at sxsw to outline his ambitions to make his city a global tech hub and let's get to caroline hyde in london for more on how london is bringing in big tech.

thank you very much, and i will speak to the man whose job is to do just that. he is the first of london's cheap officers effort. he is touring the west coast as he speaks and joins us now on "bloomberg technology." great to have you on "bloomberg technology." talk to us about how much trade and investment you are managing to her in from big tex into london. have you found any big deal is yet? >> we are here for two purposes. one is to bang the drum for the u.k. tech sector and particularly london's tech sector. london is a city of convergence with over 40 tech sectors located there from artificial intelligence to cleantech, financial capital, obviously of europe. secondly, we are here to discuss smart cities, how we use data to make london a more livable place and also open up opportunities for business. together, wengs

are over here supported by our team in london and partners which helps brings businesses to the u.k. and helps them start of their and deal with regulations. a few things make this a great opportunity for us. caroline: anywhere on the regulation or in particular brexit? theo: with brexit, you have the mayor of london, who has the biggest political mandate in the u.k. history who is banging the drum for the tech sector. he is in there talking to the government on a daily basis pretty much about the two big concerns the tech sector has about brexit. the first is access to talent. place toondon to continue to be a place where people can create world-class goods and services. you need to create a world-class team to do that so we are putting our concerns to david davis precisely on that issue. suredly, we want to make

that we are aligned with europe on the approach to data, which is so important for the development of new technology companies. say the mayor of london has dropper technology, but perhaps some of the big tech companies have been getting hot under the collar with his talk at sxsw in particular about regulation and rules. listen to what he said to us on bloomberg tv earlier this week. >> my message to uber, to everyone or how many lawyers you employ is you have to play by the rules. the rules are there for everyone. rules, ofy by the course you can do business in london. i want london to be a place where constructive companies come, where tech companies come. caroline: play by the rules. he also talked about perhaps the need for regulation to keep up with technological advances. we will see more regulation coming to london tech? theo: look, i think what he was

talking about is very much fulfilling his role as mayor of london, to promote community occasion against hate speech and get his message at sxsw was warmly welcomed by many. in the future, cities will have a crucial role to play in the creation of standards so we can promote innovation. it was standards that created the growth of the railways in the 19th century to the internet protocol in the late 20th century, and cities will be the crucibles of innovation for things like autonomous vehicles, artificial intelligence, and those will require a discussion about the ethical framework in which they develop. the u.k. with initiatives from aregovernment and cities the places where those discussions will be happening, so we welcome a debate about standards and rules and what

people should play by because we think that is also the foundation for innovation in the future. of course, there will be old rules that we will need to reform but we are happy to leave the debate on that,. london as well as the other great technology cities, new york and of course san francisco where i am at the moment. caroline: talking about wanting social media giants in particular let facebook and youtube to go further and faster when it comes to tackling the issues of hate speech, terrorist related content, and the like. what would you like to see to show and prove that they are going further and faster than perhaps regulation at the moment needs them to? theo: someone is in the process of contacting the companies to the dialogue. what cannot be the case is we allowed to go unchallenged the kind of stirring up racial

hatred and access to extremist material. sociallready a media platforms 20 to this call. what is important about this intervention is there can be debate about laws at a national level. maybe that is their proper responsibility, but for cities, which are the crystals of diversity, cities have a special responsibility in this debate too. it is important that a leading city may or may point. -- mayor made that point. it is an active are beginning to see what cities across the world. look at new york and its approach to net neutrality. cities are taking a stand on wings of importance to citizens and indeed our businesses, too. caroline: fascinating conversation. i wish we had more time. theo, the first ever chief digital officer for the city of london. great to have you traveling to the west coast.

come back to london and have a chat with us in studio. theo: thank you very much. emily: thank you so much, caroline. coming up, a cybersecurity for over takes to the market. we will catch up with the company ceo, next. check out tv if you have a blooming terminal. you can interact with us directly. just go to tv on your terminal. you can also contact us on twitter. bloombergtictoc by streaming live on twitter. this is bloomberg. ♪

emily: overstock.com says the u.s. sec's crypto probe is threatening the business. online retailer warning the investigation could delay its initial coin offering an impact

future ventures. investors eagerly await the upcoming ipos of dropbox and spotify. the public listing of a lesser-known tech company today could be an indicator of things to come. shares in cloud security scale climbed 106%r on the first day of trading. alex is standing by with more. alex: that is right. it is the first large notable tech listing in the u.s. this year. pleasure of speaking now with our guest who joins us from the nasdaq global wherege in times square the share is listed. thanks for joining us today. i want to jump right in, and i am curious to i list this time. you have been around in the tech industry for decades. you have not sold companies in the past. why is this the company you are going to hold on to? >> exactly for the same reason, alex. i did 4 companies.

most of the point products get sold. and i said i have no interest in doing one more company and flipping it. so from day one, the desire was to build a lasting company, to build a salesforce of cloud security, and take it public, and build a lasting one. that is why we are here. alex: cloud security is a very large market. breakdown for us a little bit more what exactly zscaler does for its customers. >> security is a complex topic. sits today security in the data center. that is because in the old world, employees sat in the office, applications in a data center, and you secured the office in the data center using a castle and moat approach and a drop rate, you when death - through drawbridge - bridge, you went in and

out of the internet. it is becoming irrelevant, the security center. tickle you was moved to cloud, and that is what zscaler did. it was built from a clean slate, a platform so that every user of a given customer can have great therience and use applications in the cloud or internet. it is the purposeful design that sets us apart. , with what salesforce did what they did to peoplesoft. we built an application that works for the cloud.we are born in the cloud for the cloud . alex: when you do things about -- think about the born in the , you have the older tech providers try to push contiguity, the likes of cisco, symantec, emc. you run down the chain and they are all pushing in. but this is going upwards of $4

billion in the next three years according to a number of industry analysts out there. how are you expanding to grab more of that pie? jay: some of the companies you mentioned, they build great products that were designed to sit in the data center. when paradigm shift takes place, incumbents rarely make it across because the technology is needed , they are disruptive and need to be both from a clean slate. just like you cannot take power generators designed for your home use, and thousand of them in a power plant, in a factory, and say i am a power plant. in the same way, appliances built by traditional security companies, what is known as single tenant, they really do not work for the cloud. the reason they are getting traction that all of these large enterprises, whether it is ge or siemens or automation, because of the value and we are securing they are of employees,

working anywhere and everywhere and accessing applications in the cloud, so we are designed for the new world. unless the traditional companies build something with a clean slate, they will stumble just like sable and peoplesoft bid. alex: as we continue to watch outré, we will see if that doesn't ring true. jay joining me from nasdaq in new york today. shares of 106% on listing day for his company, zscaler. emily: thank you for bringing that went to us. all right, coming up, what is corporate america most worried about? being amazon'd. domination isiant impacting almost everything. that is next. this is bloomberg. ♪

mark: that's check with first rock news. washington wants allies to further measure against iran are keeping a landmark their deal

with tehran alive according to the associated press which starts to u.s. officials. speaking in closer meetings with russia, andan, other major powers, diplomats said watching out of the deal is not a foregone conclusion and his harsh words from president trump. so-calledpposes the clause that calls restrictions on iran's enrichment program to expire in 2025. the un security council is demanding a cease-fire throughout syria and backing a endorsed roadmap for a peaceful transition. onboard met with sicker to councils and brussels. we have no cease-fire to speak of and to borrow the words of the general, people are still

living in hell on earth. scores killed and injured because workers cannot reach them because of relentless airstrikes. mark: the irish prime minister tells bloomberg that any deal the u.k. makes with the eu after it exits the block has to be beneficial for ireland. concern fora huge ireland and it is a british policy but we are very much sect if even though the united kingdom is leaving the union we are staying in the eu and --ozone and inacio market and in a single market. we are staying put and want to make sure that whatever you relationship exists with the eu and u.k. as close for us and doesn't damage our economy. the global chemical weapons watchdog says the costs of nerve agent that britain alleges was used on a russian

ask spy and his daughter has there been declared by the organization by any member state and organization for the prohibition of chemical weapons somesays that it expects action to be taken soon in response to its offer to help the british investigation. the u.k. representative to the organization says british authorities and police are working to allow the opcw to independently verify the type of nerve agent used. global news, 24 hours a day, powered by more than 2,700 journalists and analysts in more than 120 countries. i am mark crumpton. this is bloomberg. ♪ emily: this is for technology. amazonrward 24 years and

now occupies warehouses and other real estate with 90 empire state building's with a little left over. jeff bezos is an child has gone fast in life and has entered a new phase, its dominance cannot be contained and amazon has grown so large it is taking stock of why and how it has left to freake america out. transcripts, he is almost as often as taxes -- joining us now wrote this piece in the latest issue of bloomberg businessweek and the ceo of the boomerang.atform, you, weo start with know amazon is incredibly powerful and is now incredibly complicated and its power is difficult to comprehend. you start your peace out by saying amazon makes no sense.

why? companies thatw love investors -- and you think about the scope of operations and they on a 470 store grocery chain. they have this large amazon web services that does cloud computing. they have a e-commerce operation. they do one and to our deliveries in many cities and deliver restaurant food and a have a web video service. there are not many companies as sprawling as amazon is, in an era investors price focus in public corporations. emily: you talk about the fear of being amazoned. what should businesses be afraid of? >> there's a lot said about companies being affected by amazon. one story not many talk about this that of brand manufacturers

and consumer packaged goods. these companies are used to selling to retailers through human relationships. if you think about companies like pepsi and general mills, obvious public it traded companies have to completely rebuilt what they have been doing so far. amazon doesn't work with the archaic systems that other retailers have been used to. the vp of sales at a large friend -- you are going out to dinner with the chief merchant and negotiating a deal. amazon position is being made by algorithms, and you can't take algorithms to dinner. yes to depend on technology and we both your entire people. having that artificial intelligence technology has to be the base of the pyramid. emily: you brought up vacuum

cleaners, and dyson is a big brand and i searched on amazon and dyson was at the bottom of the page. that has a huge impact on sales, right? >> that is a huge problem. emily: first of all, why is it at the bottom? >> there's a lot of parameters that determine what goes at the top or bottom of the search page. is aboutn search page 90% of work legs are generated on amazon. about 80 or 90% of sales on amazon happen on the search page. and is your modern shelf aisle. that is not through retailer relationships and not by having a dinner. you have to figure out your content and profitability and pricing. there are 20 parameters that are

changing every secant that you have to be on top of. dysonoblem is if you are or redbone or duracell -- or red bull. duracell is the number-one battery in the u.s. but not even talk to be on amazon because you cannot depend on the age-old the ship model. -- have to have a technology you cannot depend on the age old relationship model. emily: should we feel sorry for these businesses? is amazon an opportunity for these businesses and for businesses that could disrupt the incumbents? >> absolutely, and that is a fair point. companiesof small amazon has been a godsend because in the olden days, if you are a small company you cannot afford to have your product in front of people on the shelves of walmart, but

amazon gives you a much bigger playing field that you can be a small person and sell merchandise on amazon.com. you needy thing is to get noticed. thatop results may not be small mom and pop garage and denver and might be a large friend or one of amazon's own brands, which i think is part of the disruptive element of amazon. duracell competes on amazon with amazon's own brands of batteries. amazon has the power if it wants to take advantage its own brands of of those of brands that are popular elsewhere. emily: that is an important point. learningand machine with amazon, what can companies do and what should they be doing

to be algorithm? >> it is not really about eating the algorithm but working with the algorithm. yes but the shopper and customer at the center. of wherehe sea shift the cpg companies should think about. and they should apply machines as opposed to having a human work with machines. what that means is you had have teams making strategic positions of where to win on marketing and where i should invest in stock levels. and have the machine start doing the tactical divisions on a day-to-day basis. technology platforms that we have been building are around that, helping these rent manufacturers make the transition of going from a human and passive retailer relationship to something that is human guided but machine driven retailer relationship

with amazon. emily: what is the next phase for businesses? butously they are learning, some companies are going to figure it out faster than others. >> if you look around the brands being on amazon, like rx park which got scooped up by kellogg's for a whopping 106 millions. that proves the point that the given byaff being technology first is so valuable and is going to write the fingerprint of future retail. that the start small and have a vision. a e-commerce for traditional stack and say i am done with e-commerce. yet to rethink and the ceo has to drive the change. you start small, you empower

your sales team with technology and empower your marketing team to start using amazon marketing services and start doing automated bidding as opposed to punching in numbers or writing marketing dollars or take dollars. then you take it to supply chain teams and supply is went to be a big problem for these companies. traditionally cbg companies have truckloads or pallets of goods. now if you order sunday on amazon -- if you order something on amazon each one is shipped by procter and gamble and coming from the warehouse. empower all your teams across your enterprise to drive business to technology as opposed to humans? you, guru.k i am sure will continue to keep us posted on how scared

businesses should be of amazon. catch the latest on bloomberg businessweek. according to be both a mother of the matter come about that walmart and competition with amazon in one of the worlds fastest growing retail like i markets. has not beensla one of its cars into can that company get them out of the company door? this is bloomberg. ♪

emily: a man who famously that

take against an run is at it again and this time his target is tesla and he thinks tesla stock is worthless. stringe conclusion is a of reports that have people questioning whether or not tesla can meet its production targets for cars like the model three. joining from new york is next check in -- is max with a deep dive with the latest newsletter is fully charged. harsh --is especially is it worthless? coming after them for a wild and he spoke at a conference in 2016. emily: i was there. t is happening here? reports are a number of -- that turnover has become a real problem. on both fronts -- executive

turnover is a red flag. it wasn't a great week for tesla. emily: we talked about the executive turnover. the stock has been resilient despite warnings from people denouncing them and the executive turnover, why? that ireasoning behind find most compelling is the idea that there is a elon musk premium. teslaors understand that is not as well run or effective as a car company as fort, but it has this potential to one day so more electric cars and a buddy. n.at is because of elon are leaves, which he has said he will at some point, then

the stock would plummet. i think that is where he is coming from and as long as elon musk is there and is continuing to project confidence and importantly continuing to come out with new ideas like the semitruck, we are going to see investors willing to go along for the ride. the problem is once these production numbers start coming out, that is where we start to see just how well or how poorly tesla is doing. emily: he hasn't left yet, other he said he will. some are dealt phil he will ever give up. eric: they just introduced a huge compensation package to keep him around. i think that is giving people confidence that he will stay. case, theree short is a lot of spending going on at tesla. at the end of the year they had 3 billion cash on hand and spent in billion dollars a quarter last year on average. there is this general march that

tesla is going to continue to need more money, and they already pushed back production targets again and again. if they don't deliver on the model three that they said they will, there will be a question about having to raise more money. emily: what do the numbers tell us of the likelihood of model three production picking up and hitting target over the course of the year? max: in terms of what tesla is say they are saying they are on track. they have revised that track a couple of times but they said they are on track with revising. the bloomberg model which is based on publicly available information as well as submissions from tesla owners suggest that they are behind schedule. we don't know how close the model is yet and it is going to take at least a few weeks before we have much of a sense. the important thing to note is because tesla has this track

record of missing expectations, you could make the argument that a missed deadline or lower production number for tesla made a little bit less than it does for other companies. at sxsw elon musk said he is trying to be a little less aspirational with his goals and deadlines. but that is definitely at plate with tesla. eric, thank you both as we continue to follow the road ahead for tesla. this treasury secretary steven mnuchin visited tim cook in cupertino and in a tweet he said thank you for your commitment to reinvest $300 billion in the usa. tebow said they will reinvest that money over the next five years and taking into account a fourth u.s. campus and several thousand you hires the committee is also a new back most of its overseas cash as part of new u.s. tax laws and risley granted most employees point $500 worth of restricted stock units.

$2500 of restricted stock units. what we think of new leadership under new ceo? will hear from him next. this is bloomberg. ♪

of the keep cup or our foundation is not for investing in companies and also

pushing for companies of social change, and he works to make big returns and push for change and investing in companies with women founders or underrepresented back rounds and has been critical of companies like uber from falling behind on social issues. caroline hyde caught up with kapor and asked he sees a positive change at the uber. take a listen. much betteroing under the new ceo who has been cleaning up mess after mass and he is genuinely committed and is not afraid to make hard decisions. a budget you will have been let go and he understands that yes preside over a fundamental change of culture or uber is not going to succeed, and so far he is doing well. >> you think that will repeat itself again at perhaps hearts and minds and ethics has changed within the startup and will not see having to sacrifice ethics and behavior? >> i think the likelihood of

more explosive growth startups developing powerful new platforms run by brilliant, young founders -- i do but we are done with that. caroline: what do we do to companies are going way> >> people are now speaking up. i do think people are going to be silenced anymore and the question is, what is the response of the community and the companies? they tried to institute comprehensive reforms from the top down that say, ok, we are going to figure out how to build cultures that are conclusive and diverse? -- and

net of itself is not going to get us where we need to get. you thinkdo companies will change that? >> i am hopeful but i am also a skeptic and we are working hard to get that window open i am not counting on it, at all. about what seems to be a focus on perhaps facebook, google, and whether ,hey should be regulated worried about the which they are scaled? how you address that? is a huge dilemma and there's no question that the big platforms have an power,dinarily amount of without intending to allow great

harm to happen to your democratic process. they are now trying to grapple with that. the fact is that good intentions aren't what counts, the impact and the affect of what to do. i would be losing sleep if i'm on the facebook board of directors because their business to the harm ital has done and can they stop messing things up and still meet their financial objectives? i don't see an answer on the table. emily: that was mitch kapor time with caroline hyde. oft does it for this edition "bloomberg technology" and a reminder we livestream on twitter. ♪

? david: when you have problems with weather, do you ever communicate directly with god? pm netanyahu: all the time. we used to say it was a local call, but you know, the internet changed all that. [laughter] david: the iranian agreement. you are skeptical. pm netanyahu: you either fully fix this deal, or you fully nix it. david: what is the pleasure of being prime minister? pm netanyahu: oh, investigations. [laughter] [applause] david: the israeli economy is doing quite well. pm netanyahu: if you are not investing in israel -- is anyone here not investing in israel? invest in israel! >> would you fix your tie, please? david: well, people wouldn't recognize me if my tie was fixed, but ok. just leave it this way. alright.