>> i am mark crumpton, you're watching bloomberg technology. john dowd, president trump's lead lawyer in the russia investigation, has resigned. in a mail to the associated press dowd says he, quote, "loves the president and wishes him well." the move comes as several days after the president added a new lawyer to his team. he reportedly clashed with mr. trump over legal strategy. democrats on the house judiciary warning the president to not shut down the special counsel investigation into russian meddling in the 2016 election. >> so much of what the president says is simply factually incorrect. these tantrums are more than merely the online musings of a passionate viewer of fox news.

these statements are threats from the president of the united states against our rule of law. mark: the house has passed a $1.3 trillion spending bill. it would avert a government shutdown and increase funding for the military, border security, and other domestic programs. the compromise measure has been sent to the senate, which is expected to act tomorrow. outgoing secretary of state rex tillerson said goodbye to department employees today. he lamented what he called the mean-spirited nature of washington, but he told them, again quoting, "you don't have to choose to participate in that." i am mark crumpton in new york this is bloomberg. , "bloomberg technology" is next. ♪

emily: i'm emily chang, and this is "bloomberg technology." from los angeles. stocks drop the most in six weeks after president trump takes his biggest shot yet at china. we zero in on the markets and trade war brewing between the world's two biggest economies. plus, mark zuckerberg broke his go far, but did he enough, our continuing coverage of the cambridge analytica debacle. and a zuckerberg's potential testimony on capitol hill. the increasing scrutiny on autonomous driving technology in the wake of the fatal crash in arizona. we will get perspective on the road ahead for driverless cars from gene munster. we want to start with quick breaking news on dropbox, the at $21 aricing its ipo share, this is above the expected range, trading begins tomorrow on the nasdaq. we will be there live with alex

wawrinka. alex will join us later in the show with what to expect. first come i want to talk about we massive market selloff saw in thursday trading. president trump has talked about getting tough on china both as a candidate and now as commander in chief. on thursday, he took his boldest step to penalize china, ordering sweeping tariffs on at least $50 billion in chinese imports. the president highlighted intellectual-property theft as a major sticking point, saying it impacts hundreds of billions of dollars a year. the markets reacted the strongly. stocks falling the most in six weeks, with both the dow and s&p down to .5% on the day. the dow falling over 700 points. also with us, bloomberg gadfly columnist tim culpan, joining us now from san francisco. walk us through today. trade and tech -- the big stories of the day.

talk about the selloff. >> it was a big day. that dominated the market. we were weak all day. you look at what happened as we hit the 3:00 hour on the east coast. all of the sell orders started to pile up. no one was buying the dip. no one wanted to be holding the bag into tomorrow. the s&p and dow started having their worst day since the february panic. every sector was down. 10 of the 11 sectors in the s&p finished lower. the only sector that was up today was utilities. the reason was primarily because it was one of the few safe havens people saw they could move into. we saw a lot of other flight into safe havens, including treasuries, including the yen, including the swiss franc. into safe havens, including a lot of people are also taking concern about some of the technical levels where we are heading today. if you take a look at where the

s&p 500 traded today, we were well below the 50-day moving average heading into today, but then we broke below the 100-day moving average, which people see as an indicator of the strength or weakness in the market. remember, we hit that level a few weeks ago, bounced off it, and rally. we did not do that today. there is concern that could mean more losses are to come. a lot of that will depend on what we see out of the tech sector. day,asdaq having an awful the nasdaq 100 down for the seventh time in the last eight sessions, headed for its worst week now since that february panic. we don't have a lot of catalysts coming into this market. we have dropbox's ipo tomorrow. it could provide a little boost. fangeep in mind, the stocks, every stock in that index was down today. even after hours, not getting a lot of help. this is the moment we are in now

for this market, tech, which is shown so much great leadership is holding us back. when you see tech pressures, you will see broader market pressures as well. emily: tim, there is still some unknown information here. big u.s. companies like apple and amazon, for example, manufacture products in china. how is tech likely to be impacted by these terrorists? tim: what's interesting is, if you think of the major areas donald trump is talking about, metals and so forth, metals and minerals account for less than 7% of u.s. imports from overseas. it's not a very big area. the largest area is electrical machinery, and it's a very broad term, including everything from mobile phones to microwaves to electric motors. that's a much larger area of imports. then you look at the tech sector in the u.s. the largest company is apple, and that's a hardware maker. that you have amazon, facebook, google, microsoft.

they don't do much hardware. these are companies that, if you put up barriers, tariffs, who are you looking at? the iphone and pretty much every smartphone, apart from those made by koreans, is made in china. most computers are made in china, often by u.s. brands. when donald trump talks about putting on tariffs and protecting the united states, what is the objective? it is not clear. he seems to be lashing out. steel is a great area. he can talk about all the jobs lost. but in the tech sector, most of u.s. tech is not hardware anymore. emily: now, romaine, walk us through what exactly is happening with tech stocks. what relates to tariffs and what relates to what's going on with facebook and the cambridge analytica controversy? two issues. have

tech was the leader. most of the profits folks have seen this year in the market have largely been in that large-cap space. when you get crowded trade were everyone is benefiting on the way out, as soon as there is a negative catalyst everyone is , going to rush out the door. that is when you saw the facebook allegations coming to light last week, spilling over into this week. you are seeing it to a smaller extent with trade. there is a bigger issue about how much people trust of the market right now. we went through a period when everyone was buying on any small bit of news. now we are seeing the exact opposite. any reason people have to sell, they are selling. the facebook matter has raised a lot of questions about the viability of the business model. we are still a long way from knowing exactly how that will shake out, but not a lot of people trust the process to wait and see what is going to happen. you are seeing the same issue on trade. people are not trusting in the process of what's going on out

of washington and they don't want to wait around and see. emily: we are definitely going to talk a little more later in the show about how facebook's business model could potentially evolve as a result of this. tim, how is china specifically likely to respond to these tariffs? tim: what's interesting is, beyond the tariffs, you are giving fodder to the chinese. if the u.s. doesn't do anything or put anything in writing, it is much more difficult for the chinese to react. but when you're putting something concrete down, like tariffs, you can say, you are starting a trade war, you are doing this and that. beyond of the tariffs trump has , told the treasury secretary to to look into ways to restrict investment by chinese companies into the united states. this has been an ongoing theme for many years.

even before the trump administration. the obama administration and even the bush administration before that, this has been a concern. this has been handled by cfius. they work behind closed doors chaired by the treasury , secretary. when they come out with a recommendation, they don't have to tell anybody why. they simply recommend to the president and the president would go through with it. if they put down in writing the rules of what can and cannot be invested by chinese into the u.s., then suddenly they have put down in writing concrete steps that the chinese can then react against. they can hold up that piece of paper and say, hey, you said we can't do this, we are going to allow you to do this. the fact that cfius works behind closed doors gives the u.s. a certain amount of cover to say, we are not going to tell you exactly why the deal was not back, but if you put it down in writing, you are giving ammunition to the chinese. emily: bloomberg's tim culpan in san francisco and romaine

bostick in new york. i know you will keep us posted. coming up, we focus in on one of the bigger tech stocks to tumble this week. that is facebook, as a response to what may be its biggest crisis to date. as public opinion sour on the social network, you will hear from a former facebook executive next. check us out on the radio. listen on the bloomberg app and in the u.s. on sirius xm. this is bloomberg. ♪

emily: facebook remains embroiled in perhaps its biggest controversy to date. the fallout continues in the wake of the exploitation of data

on millions of facebook users by the political consulting firm cambridge analytica, which has ties to president trump. shares getting hammered this week. leading the larger slump in tech. facebook ceo mark zuckerberg broke his silence on the crisis with a mea culpa on cnn on wednesday. >> this was a major breach of trust, and i'm really sorry that this happened. we have a basic responsibility to protect people's data, and if we can't do that, then we don't deserve to have the opportunity to serve people. emily: zuckerberg pledged to investigate whether cambridge analytica still has the information it obtained from a third party app developer and promised to broaden the probe to other developers who may have run afoul of facebook's rules. still, these pledges were not enough for some. zuckerberg was called to appear before a house panel. thank you is the right witness. zuckerberg is the

right to witness. mike hoefflinger is the former head of global business marketing at facebook and the author of "becoming facebook." he joins us now from san francisco. i think we can safely say this is the 11th challenge that will certainly define the company, mike. just how damaging -- let's not talk about the business yet, but let's talk about the company as a whole. how damaging is this to user trust? mike: of course, it's not the first giant challenge they have had. we will look back even to the dawn of newsfeed itself or the 2007 release of beacon for the 2009 adjustment to the privacy controls. we have a unique situation because of the scale that they're operating at. we saw mark say exactly the right thing, that this is about trust. when you get into a situation like this as a leader, you have to remember it is about trust and heart and communicating that way, as opposed to communicating brain.

as opposed to communicating logistics and brain. we've seen leaders struggle with rationalizing their way through processor crisis in the 1990's and even steve jobs rationalizing the way the iphone antenna gate happened. the time is now to see how committed he is to the expectations we have made for -- made very clear to him. you have seen facebook suffer many other crises. do think this time public trust in facebook is fundamentally damaged? mike: i think it is. i think it probably comes on the back of a 15 month arc where we began to wonder a little bit how we feel about newsfeed, where we began to wonder whether we were potentially being manipulated either organically or through paid means. now we have become very cognizant of the fact that our data may be making its way to places that we had never agreed to.

facebook needs to understand that we expect facebook to take care of us. it is impacting our lives in good ways and perhaps in ways we need to take a harder look at. it is important that they hear that now. emily: there have been clips circulating of things that zuckerberg has said over the years. in 2009, he told the bbc that facebook would never sell user data, that that data belongs to users. is that a lie or is that just painfully misleading? mike: i don't think it's a lie. it's important to understand that, to the extent facebook sells anything, it is access to people, to communicate with people, to connect with people. what they have to do is really take great care of that access.

who are the players that are able to receive that access? who is given access to people and what are they able to communicate? while he wants to open the world to many many voices being able to communicate on facebook, which has been so crucial to the positive changes they have brought to 2.2 5 million people using it, they really need to take care of us when it comes to the manipulators that want to enter the system and to create a system that does not allow them to be a part of it to begin with and certainly does not allow , them to get distribution into the newsfeed that plays such an important role in our lives. emily: that said, how does facebook make that decision about who should and should not have access? in the end it is an adjustment call and we know there are malicious actors out there that want to break the rules. how does that ultimately impact the business if that data is now not available?

mike: there are some things that are incredibly clear. for many years, facebook has had to prevent nazi sympathizer content from being distributed in germany. they have had to keep nudity and other objectionable content off the platform. those are extremely black and white, very clear issues. when it comes to subtlety, communication, maybe even buy -- by smaller voices, you can't just ask yourself how big is this voice, therefore they should have access -- the point of facebook is that so many voices around the world can have access. we began to hear more from zuckerberg yesterday about their ability to use artificial intelligence to interdict what are clearly fake accounts and what are bad actors. i think we will see an era now going forward of mark really beginning to put his finger much harder on the scale of newsfeed, to really throttle and close the aperture on distribution on newsfeed for sources whom we

cannot trust clearly verifiably and also for sources that we simply may not know a lot about. at the end of the day, we need to get back to a newsfeed that we as facebook users trust, that we enjoy. that is really much more about the people that we know, the things that are happening in their lives, and much less about obscure sources of information that may or may not have our best interest at heart. emily: zuckerberg told cnn that he's not sure that tech should not be regulated. he suggested regulations around political advertising what about , regulations on data privacy? should the united states take a stronger line, much like they have in europe? mike: i think you heard zuckerberg actually say the question isn't so much whether there should be regulation, but what that regulation looks like. i do feel he was quite open in that way yesterday. as you mentioned, in europe, they have already been quite

serious about this for some time. they are getting more serious yet. i think what's important to understand is that zuckerberg will make decisions in the interest of the long arc of the mission that he is out to solve. many people don't believe that he doesn't have the profit motive in mind. i've seen him act many times in ways that are not primarily about the profit motive. he will absolutely sign that -- sign-up to things that will preserve the mission of facebook, to connect people and build community. if that includes testifying and means regulation, i think he has indicated he will step up to that bar, and i think he certainly should. emily: he said he would testify if it was the right thing to do or if he was the right person to testify. we will see how that pans out. thanks to mike hoefflinger, author of "becoming facebook." coming up, the latest news on dropbox, pricing its shares above an already increased range. this is bloomberg.

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emily: dropbox is getting ready for its public offering on friday. dropbox raised $756 million in its ipo, according to a person familiar with the matter, pricing its shares above an already increased range. the total of 36 million shares piece, saidr $21 a the person who asked not to be identified. trading begins tomorrow on the nasdaq. alex barinka covers deals in new york. obviously demand is strong. , what does this price tell us? alex: folks are willing to buy in. it also tells us that dropbox is closing the gap on this discrepancy between private and public. it's a thing a lot of people have been focused on. they set a $10 billion private valuation. this gets them a little closer to $10 billion.

we will see what happens when this starts trading tomorrow. a is a vote of confidence in market that has not been favorable for tech stocks. if you looked at the trading today, the nasdaq 100 was down 2.5% today, the steepest decline in about six weeks. dropbox was contesting not only with having to pitch their narrative, but also dealing with convincing themselves that they can rise above the fray of the concerns around facebook which, has driven that whole sector down, concerns around the tariffs that president trump laid out today, and a potential increase of pace of higher interest rates. cutting through a lot of noise here, seems like a good pricing for dropbox. we will see what the rest of markets vote in terms of their pricing tomorrow, when the shares start trading down at the nasdaq. emily: that was my next question. dropbox is diving right into the middle of this volatility. we know it has been led by

facebook and by what we are seeing going on with trade, but how could that impact the performance tomorrow? alex: if folks are chasing growth, this might be a stock to jump into. it does still seem pretty conservatively valued when you compare it to some of the comparables. dropbox wants people to look at them like -- dropbox is closer to half that at this price. if folks sees this as it has value, they might rotate into this. if you look at the history of first day of trading in ipo's, there's a lot of volume. typically the price tends to go up on some of these hotter stocks. emily: all right. alex: we will continue watching as it trades as a public company. emily: alex barinka. we will have full coverage of the dropbox ipo tomorrow on bloomberg television from the nasdaq. when it comes to cloud computing salesforce is already a towering

, force. it is looking to cement of that stature with its latest acquisition. this is bloomberg. ♪

>> it is 11:29 a.m. in singapore. i am juliette saly with your first word news. electric vehicles have been making a clear-cut impact on oil use. china is the world's biggest user of crude. oil demand last year would have been 1.5% higher, how to not been for electric starters and cars. china subsidizes electric vehicles, to ease air pollution. a saudi energy minister told bloomberg the recovery in oil prices has not sparked investment industry needs. they said opec and independent producers will work together through 2019 to train the glass and rebalance the market because

[indiscernible] far, the prices have not put investment back where we need. $1 trillion and investment levels below where we were before the downturn of oil prices. tells me with the pricing signals that have come out, they have not been sufficient. >> i am sophie kamaruddin with a check on the markets. markets, prospects of a trade war advancing global growth. steel and aluminum tariffs will be delayed to may 1. some countries made it to the trump exemptions list. japan, not on the list. losses of over 12% for the nikkei 225. the hang seng losing 2.7%. bonds are mostly rallying. chinese 10 year yields falling

six basis points. let's check on currency moves. the korean won it slipped to a three-week low. analysts say if this trade war is taken seriously, the korean won should have jumped to 1100 the dollar. the aussie should benefit from china's tariffs on the u.s., but its resilience could be tested. iron or is below $65 in singapore. steel slumping with aluminum and copper. let's check out movers in the region. this one hammered in tokyo. chinese toolmakers a sliding as a trump orders duties on machinery made in china. the chinese agricultural stock of jumping. [indiscernible] surging nearly 10%. 4%, onjumping as much as

the speculation he could get caught up in the trade war. beijing holding off on adding to the retaliation list. ♪ emily: this is "bloomberg technology." i'm emily chang. u.s. stocks posting dramatic losses in thursday's session as fears grow of an escalating trade war between the u.s. and china. tech stocks, not immune to the selloff. our bloomberg news stocks reporter abigail doolittle joins us with more from new york. we know facebook. we know trade. dig a little deeper for us on what drove the negative sentiment here. abigail: i feel i say this often when i speak, but another extraordinary day for the equity markets here in the u.s. i say that because the major averages opened lower, big declines on trade war fears, on the news that president trump was likely to put into place those $50 billion worth of

tariffs to china. we traded lower in the midmorning. another piece of the uncertainty, the d.c. drama. john dowd trump's top lawyer for , the special counsel investigation, resigning, throwing markets into a bit of a tailspin. when president trump signed those tariffs, a little relief, than a selloff. it speaks to the level of uncertainty we are seeing on the day, the week, and the year. the dow is down more than 2% on the year. investors are grappling with all these issues. plus, behind all of this, yesterday the fed did raise rates. they also reinforced the idea that there will be three rate hikes this year, then the path will steepen for 2019 and 2020. that is another macro backdrop investors are trying to contend with. lots of uncertainty. another factor is speaking to , this year's volatility, markets are tightly wound.

it does not take a lot to set them off. on monday, of course, we had the facebook linchpin, then the fed. when you put it together today , is the worst day since february 8 for the major averages. hop quickly into the bloomberg and see the technical damage done to the nasdaq 100. the beautiful uptrend with the nasdaq 100 futures above that 50-day moving average, telling us the buyers are in control, a lot of confidence. this year's big whipsaws. putting in a new high, unconfirmed, some consider it to be bearish. back down in this range, back below the 50-day moving average. we could see the nasdaq 100 futures go down to the bottom of this range. if below february's lows, it would confirm a bear market for the nasdaq 100. perhaps more uncertainty ahead. emily: that is the bigger bearish picture.

walk us through the biggest specific movers of the day. abigail: once again, facebook stole the spotlight. the fallout from facebook continues. the stock finished down about 2.7% on the day, but on the week, the stock is on pace for its worst week since august of 2012, when the company and the stock were having a tough time out of the ipo gate. investors are bearish on this data crisis, not sure what it's going to mean. will it mean a big fine for the company, will it mean regulation , not just for facebook, but big tech overall? apple, amazon, netflix, alphabet -- all lower on the day, selling off on the overhang of uncertainty. very interesting, to me at least, is the fact that some of the big chinese internet companies sold off in a big way too, including baidu. we also had shares of alibaba plus theower come up trade war. lots of uncertainty for investors to deal with. emily: abigail doolittle in new york for us, thanks for bringing it all down. another extraordinary day.

when it comes to building cloud-based customer management tools, salesforce continues to dominate the market, ahead of oracle, ahead of sap. it's the only large-cap software company with more than 20% sales growth over the last two years. they announced a bear $3.65 billion deal with mulesoft. i would like to welcome bret taylor, who has also served as facebook's chief technology officer. it's great to have you back. i believe this is the first time your joining us on television since you sold quip to salesforce. i'm curious, after having worked so many years in consumer technology at facebook, google, with quip, what has the transition to the enterprise been like for you? bret: it's been really amazing for me, actually. you look at the landscape of technology right now.

i think it's changing more rapidly today than it has in generations. they call it the fourth industrial revolution, but it is not just one change. it is artificial intelligence, the internet of things, mobility, the smart watch, amazon alexa. for a company like a google or facebook, where i was previously, we have building -- buildings full of engineers to grapple with those changes. if you are a 100-year-old insurance company or health care company trying to figure out, how do i provide a customer experience in the face of all this change, it's really challenging to do. fundamentally, that's our mission at salesforce, helping every company in the world transform their customer experiences. it is really empowering. emily: this announcement, that you have agreed to buy mulesoft for what can we read into it it? $6.5 million, it seems to be a desire to stretch beyond salesforce's core tools.

bret: if you think about what it means to transform a company that wasn't born in the digital era, this digital transformation, we fundamentally think it starts and ends with the customer, even if that means transforming a bunch of your legacy systems. the reason we are so interested in mulesoft and this concept of integrating all these legacy systems is it really unlocks the data from legacy systems to enable people to participate in all these amazing new experiences we are seeing on our phones and watches and through customer service experiences that are transforming business today. i do think that this platform is amazing. it really enables companies to turbocharge their digital transformation. for salesforce, it means they can transform the customer experience is faster, which is our mission. emily: salesforce has been very acquisitive, including buying your old company, quip. the deal chatter around salesforce buying twitter

doesn't seem to stop. your intimately familiar with twitter. you are on the board. do you see salesforce making more big deals in the near term? bret: fundamentally, we work backwards from what are the technologies that we need to have to enable our customers to achieve their goals. we always work backwards from the customer and the customer experience. we will always consider either building by or partnering to accomplish those goals. that will continue to be our strategy going forward. they: your current focus at developer conference, what are the objectives? bret: the really cool thing about salesforce as a platform is we are not just targeting developers. we are trying to make a platform that enables a much broader range of people to have access to these new technologies. this event, happening in san francisco next week, the thousands of people who come

here, many of them made a midcareer transition into technology, started outside of the technology industry, and learned for free using our self learning tools like trailhead. by doing so, they were able to actually get a career in technology. what i think is so powerful about that and why this event is so powerful, if you look at the landscape of technology and all the news stories you were just talking about, the societies -- a society's relationship with the technology industry has really shifted over the past two years. what i'm so proud of it salesforce is we are really doubling down on this platform of enablement and empowerment and trying to create a job creation engine, so that not only can we transform our customers' companies, but people can transform their careers through this platform. that's a really empowering message, and that's what we're trying to get across next week. emily: you worked at facebook for so many years you are very , close with mark zuckerberg and sheryl sandberg. i'm so curious for your thoughts on this cambridge analytica

scandal. where did facebook go wrong? what do you make of zuckerberg and sandberg's response, which many think was just far too slow? bret: the trend i see is just broadly, the technology industry coming to grips with the impact we are having on society. i brought up that fourth industrial revolution concept from the world economic forum. i think that's apt because it captures how big this is. as the technology industry is maturing, i think we need to recognize that this isn't just about technology. it's about the impact on our society. my boss, marc benioff, often talks about how important it is that modern companies lead with their values, particularly trust, and work backwards from that value in every action that you take. i do think that when i look at the lessons being learned in our industry right now, it is just reinforcing that it's the most important thing in our industry,

trust. it's extremely important that your company is crafted around your values. i think it's a lesson that we haven't really had to learn today, just because i don't think the impact of these technologies was completely understood by society. i think that's what's happening now is those two things converging. emily: but you wonder if they were completely or better understood by facebook. you have people like the cofounder of whatsapp, which facebook brought for $20 billion, saying to delete facebook. other former facebook insiders really talking about the potential threat of the social network. are you in that camp? bret: i have a great deal of personal connection and loyalty to that company. it is uncomfortable for me to talk about. the thing i would say is that i do think -- the right way to think about it is that these

technologies have changed the landscape of our society. everything from the smartphone to social networks have changed the way we interact with each other. they are much more than a technology. they change our behavior and our interactions. i think right now, we always like to say at salesforce that these companies don't exist just to serve stockholders or customers. it's about all stakeholders. that includes the communities around us, the government, all of our society. and i think that, right now, the way i think about it is, ok, these technologies are complex. their impact is very nuanced. how can we include all the stakeholders in coming up with a way to solve these problems? emily: all right, bret taylor, president and chief product officer at salesforce. great to have you back on the show. thank you. coming up, the future of self driving cars is in question after an uber autonomous car collision.

how realistic is the technology? how safe is it? we will discuss. this is bloomberg. ♪

emily: it has been a few days since uber halted its autonomous driving program due to a collision in tempe, arizona that killed a woman pedestrian. footage released on thursday brought fresh scrutiny to the ride-hailing company's autonomous car technology. the accident is causing people to question whether self driving cars are the safest answer for the future of our roads. companies including alphabet, gm, uber, and tesla are investing billions of dollars to develop the technology. tests on public roads had proved mostly trouble-free. major crashes were

not found to be the fault of technology. gene munster continues to believe humans shouldn't drive and that traffic and pedestrian fatalities will decline under autonomy. he joins us now. even in light of this tragic accident, why do you still believe in self driving technology? gene: [no audio] emily: i think -- gene: i've got you. emily: you continue to believe that self driving car technology is the future, and that fatalities will decline, even in light of this very tragic accident. why? gene: big picture, this will take longer than people think to get to the self driving world, but it's going to be a bigger change than people think, too. i look back to pictures of 1917, when horses were at a peak on roads in new york city. the most number of horses.

when i see a car today, i think of those same horses. what you should think is this is , going to change dramatically. the reason i think this will power forward and that we will see this autonomous future is that, ultimately, humans are not good drivers. every year in the u.s., 5400 people are killed -- pedestrians are killed by cars. another 1000 bicyclists are killed by cars. that rate has been increasing. it increased by 11% last year, the biggest increase it has had since they've been keeping records for the past 30 years. something is fundamentally wrong with how humans drive, so i want the big picture to be on the table. just to talk a little bit about tempe, i don't think this fundamentally changes the trajectory of all the trends we talked about, that machines are better drivers than humans. emily: you have a new note out about where specific automakers stand. talk to us about who is in the

lead and uber specifically, given that they are the ones behind this horrible crash. gene: in the league is waymo, just because they have the most miles driven. general motors claims they will have level five autonomy, which is no steering wheel, in 2019. some may say that general motors is in the lead, but i want to put a little perspective on that prediction from general motors. last week we did a call with an expert who works around these vision technologies used in self driving cars. when she talked about that prediction from general motors -- she is based in detroit -- she laughed. i have a feeling she is still laughing at that prediction. when we think about defining what is in the lead, a simple statement from general motors isn't necessarily evidence of that lead. i think waymo is, from a technology standpoint, in the lead. another company people are not talking about is what apple is

doing. they have the most self driving cars in the u.s. apple has 46 , self driving cars on california roads. they also have a shuttle, the palo alto infinite loop system they are working on. the simple answer is it is companies like waymo, tesla, apple, and uber still is in the lead. emily: how far away then, given what has happened with uber -- how many years away are we from being sure that self driving cars are actually safe, safer than humans? gene: it's probably 2025 before we actually see measurable fleets out there. self-driving car is will start with limited speeds and limited areas they work in. think of this as seven years away. you mentioned -- mark went through and looked at all the major automotive companies and what their predictions are. most of them say they will have some high level of autonomy between 2019 and 2023.

we think it is beyond that. it will naturally get pushed back, but it is inevitable. emily: all right. gene munster, loup ventures cofounder. we will talk again before 2025, i hope. thank you so much for joining us. coming up, we continue our coverage of the stock selloff. with a few charts you don't want to miss. this is bloomberg. ♪

emily: again, stocks have dropped the most in six weeks due to growing concerns of an escalating trade war between the u.s. and china. tech stocks were feeling the heat, led by facebook. joining us to round out the day that was, bloomberg's caroline hyde in london. we know there was a selloff across the board. we know that tech dragged it all down. where are we now? caroline: quite phenomenal. there goes $600 million in market cap from the s&p 500.

i have a nice little technical chart for you showing where we are with of the s&p 500. in the white, a little lower, type into your bloomberg g #btv 5437. you can see the blue line the , 100-day moving average. you is a key support level get when you look at these sorts of charts. the s&p 500 currently below that. last time we saw it fall was back in february. this time, the concern is a trade war and the tech issues with facebook. notably, the s&p 500 will feel the effects of the tech selloff. itself lost $200 billion in market cap. what are the biggest players on the s&p 500? likes of facebook, microsoft, amazon, alphabet and apple. emily: this is not just happening in the united states.

give us the global picture. what are markets doing around the world? caroline: let's put this in perspective. it's not just happening in the united states. sure we are hearing the words , coming from donald trump, but tech has been selling off across the board. i take you to another chart, g #btv 5523 puts it in perspective. not only is the u.s. turning lower in a tech perspective, the blue line, but europe also in trouble. only one single tech stock was in the green. every other one was in the red. the chipmakers were feeling the heat. the yellow line, asia not feeling so pretty either. tencent trading lower there as well, emily. emily: bloomberg's caroline hyde wrapping it up for us in london. thank you so much, caroline. that does it for this edition of "bloomberg technology." a reminder we are livestreaming , on twitter. tomorrow we will be all over the dropbox ipo and much more. we are live 5:00 p.m. in new york, 2:00 p.m. in san francisco.

that's all for now. this is bloomberg. ♪

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