i'm mark crumpton, you are watching "bloomberg technology". finding national security, donald trump reluctantly trained a 1.3 spending bill to avert a shutdown.t >> while we are very disappointed in the trillion, no one more than me, because the number is so large. it will start coming down. we had no choice but to fund our military. mark: the president is not happy it the measure because doesn't include protection for dreamer immigrants or provide wall. for the boarder the us is looking forward to

working with the peruvian president, sworn in after the congress accepted the esignation of the former president. the state department praised constitutional transfer of power a> a 16-year-old girl shot at maryland high school is dead. beingne willie died after taken off life support. students from marjory stoneman douglas high school and many country are inhe washington ahead of saturday's march for our lives. organizers say half a million people are expected at the rally support of gun control. day, news, 24 hours a journalist around the world. i'm mark crumpton. this is bloomberg. ♪

this is "bloomberg technology," dropbox joins the big leagues. how the file sharer may have set of tone on the first day trading. facebook reason kareem are's facebook's - scandal. has spoke -- mark zuckerberg has spoken. here from an i.t. former c.e.o. >> and the two biggest economies more. for a trade to the league. book for scots. ne of the worst declines since january 2016. abigail dao little is in new york. what started. end up? we >> in terms of the week. facebook - all about facebook,

i go back to facebook earlier in the week. we have been talking recently. week. day, what a the market is down in a big way on the day today. in the ngly, since morning we had stocks modestly higher. progressed big, big moves to the downside, leading drop for theweekly averages since january 2016. is important. that tells us this week was for than the two big down weeks. it is taking control of the near turn. linchpin, i will have to say with facebook, if you look at thee take a six day chart of facebook, we a l see that it fell off cliff on monday. that was over the data crisis you talked about. not knowing what to make of it. but reacting in terms of the overhang, and the possibilities

regulations, possible probes. that set the tone. the possibility of a trade war. so that is not helping. this driving on big tech. we had some. ig internet names trading sharply, alphabet, netflix. in sympathy to what is happening. the big drag on the week, surprisingly to me. self-decliner, apple. down more than 7% on the week, april 2016. ce the reason it stands out. there's not a fundamental reason. that tells you investors are ahead of the ock concernseason, raising about smartphones sales. when you see this spending it how jittery investors are. you see the big tech names down, arakle is one of the worst,

14%, the worst week since 2008 on a disappointing guide. specially around the cloud. emily: now is a potential trade all of this, given everything that is going on with china. >> it gives a backdrop. of a s not give the sense friendly tone between china and he us, and what happens with technology, specific to over the s, during asian session. smartphone asian components dropped on fear that is apple would drop the for some of those components. nd on the us session, we saw the reverse, with us providers dropping in a big way, some of names down sharply after that may be some of the chinese phone makers will

not use them. to sky works. 10% of revenue. for chip ad day stocks. trading sharply on a disappointing guide. the sox. philadelphia having it's worst week. lots of bearish action. it will be interesting to see what next week brings. know i love the technicals, it may suggest more selling. >> all right. abigail for us in new york. thank you for wrapping it all up. biggest ipo of the year so far happened today. priced at 21% of shares. houston spoke to bloombergs about the significance of the day. we were growing fast, the fastest company in the history billion dollar run rate. we look at the $11 million number of. a need re addressing that every team and company has,

that s a lot more people need dropbox. says after xt guest today's debut they'll have no the em reaching $10 million. hey closed at $11 billion valuation. they surpassed what they had been seeking on the private mark. question whether they could. investors are optimistic. what is your take? you know, if up build a solid company with good fundamentals cash flow. pt streets and market will involve you. that today.rue on emily: the question is, you know, how many companies can the cloud. you have amazon, microsoft. google. dropbox. they are fighting for different pieces of it. do you think smaller companies be worried. need to > my opinion is everyone is

fighting for different parts. application side. dropbox, our company, is on providing an application, which is the service to the cloud. a zero sum game. large.rket is you can create entities here. and a as a j.d. edbergs, lose of companies out there. >> this is your business. helpful to be so optimistic. >> you have to be. i think dropbox has proven mark, the adoption concern is going from if you es, and dropbox, look at the core business. ourselves, y like market.ussed on the s&p it's huge. >> what about apple.

of apple and ipod as a bigger threat to the dropbox given it is consume erfocussed and it really dropbox's bread and butter. point you interesting make, it's a dark horse. 64% of americans has one apple device, and most have a built in i-cloud drive. if apple was serious about going functionality le of the cloud and add more of for, is le are looking could be a substantial threat. it remains to be seen what the will be.s >> as some someone in the do you think are the biggest challenges, what do you worry about when it comes to your own business given how much everyone is fighting for the even though it's

expanding. > the biggest driver is the dropbox. thers prove that cloud reduces the friction. there's a bigger focus on privacy. opinion isty, and my it's not just relevant for for mer brands, it's true every tech company providing a solution. data. er to focus on and placed on security. providing great solution, that's changing thing that companies will struggle for if they don't focus.e >> privacy has been a top topic given what is going on with facebook. our data is atat risk. companies promise that it's not. >> it's a hard question to in a hard binary way. depend on what markets you serve what you are doing with the data. usr companies are entrusting

with core content. and protecting that, making sure privacy, compliance issues are addressed. create any little tremor, you take a hit as a company. it goes with hat what target market you are trying to serve. hat's the way to look at this problem. >> all right. vineet jain. > former c.e.o. of twitter weighs in on the crisis of trust. on the bloomberg app. berg bloomberg.

♪ mily: a troubling status from facebook from elon musk. a is deleting pages following tweet saying he didn't realize page.ad a space ex they are now no longer available. out continues on the exploitation of data. c.e.o. up with former twitter dick costelo, and asked him to weigh in on the controversy. >> one of the concerns or questions i have is the impact n the way people think of a.p.i.s and access to data in future. obviously facebook had built out enabledrm approach that

andd parties to access data interact and engage. they turned it off years ago, nd are seeing the consequences of some of that. i think it will have an impact technologists and company founders and c.e.o.s going forward thinking about how be used.will how it is audited and disposed of. >> how does data use facebook in a way that is different to twitter. twitter is more protective of user data. twitter has its own issues. which we can talk about. o you think facebook has been too permissive and careless data? ser >> just to be - not to be an for what has been going on - this platform was public, a.p.i.s were public and people knew what they were of, and they have been

long disabled. the big difference between witter and facebook is that on facebook there's la lot and lot of personally identifiably and demographic information. to turns out to be helpful advertisesers, they want to demographically target, microtarget. have a lot doesn't of that information. ust to go back a few years, when i was running twitter. it was thought of a disadvantages. twitter doesn't know as much so i can't target my advertising. there are two sides to the coins. in some areas it's a benefit to the platform. areas it comes back to haunt you. are : former facebookers oming back, ashton says delete

facebook, he sold his company to $20 million. do you think delete facebook will take off. an impact on users platform.ity to use a >> i am sure these people will ill-gotten eir gains. don't think this is - these things happen. they come up every now and then news event a big around the platforms. facebook is an important part of of people's lives. it may be the case that a silicon valleyin in the bubble will delete it. don't think it will be a big movement. it's too much. too important a part of too many world.s lives around the emily: is it disingenuous for that made a lot of money from fbi... a -- from federal

bureau of investigation... facebook. >> it's easier when you are not a part of the company to sit and molotov cocktails. there are people working hard the e the companies to do right thing. the lead product user at twitter talked about the issues that twitter is trying to deal with on the platform. people inside the companies are trying to do the right thing. not love it when people sit on the sidelines, lobbing in criticism. >> mark zuckerberg in an interview says perhaps tech regulated. it's not a question of if, but how. o you think it should be regulated. and if so, how? > i think there'll be here seems that tide it in our protection. of challenge in areas

technology, if it tends to be and concepts as and details are that are difficult to understand, making susceptible to lobbying. nd, you know, there are lobbyists on all sides of the equation. most cases the regulations start to fight the last war, right. happens and his let's prevent that from happening again. changing. s are they don't anticipate the next ssue or challenge that comes up. they cause each company work and maybe are not addressing what to deal with,have or society has to deal with next. that version two of russian meddling is happening on the platform. it's happening on facebook, it's probably acting on twitter. and twitter be ahead of this. now that they know it happened. keep up?

>> it's an arms race like in the past. fishing and other challenges. the difference is there are involved on the other side. not just a few people hacking an account. when you have state actors, it will be a battle keeping up with them, going after the new attack sectors. attack like in the past. keeping up will be a challenge platforms. emily: just some of my conversation with former twitter dick costelo. catch the rest online. trade war with china could have ramifications now top apple techs and beijing for a tech forum. e will discussion, this is it bloomberg.

♪ . emily: as a possible trade war looms, some of the do

top tech leaders are heading to the mission to do more business. it's the china development forum this weekend. apple has the most at stake in china. companies that is. here to tell us why. bloomberg's mark, who covers apple for us. this o you make of the pilgrimage to china. >> it's incredible. before. sues google. apple is banned from many parts of webter china in terms services. kwolcom trying to ly an xp and china needs to sign off. the four companies are in attendance. apple, when coulding became c.e.o. en cook became there was huge success through

2015. t is going downwards in china, there's a lot at stake there. at the same time they have an emerging over the past few weeks. there's a new law in china where have to store customer data on state-run servers in china, versus servers in europe and the united states. ironically apple user will have - or china users of icloud in china will have to serve their data locally.y >> it's interesting given the putting hat america is on china, and china on the us. know how that will effect these companies. yet. don't know trump announces these things, says he will veto, then doesn't. there'll be an announcement. we don't know the details.

break down the what if. one is that trump would consider american company. and not tax them. possibility he may do it in retaliation for tim cook the us.ng to if he goes in that direction, he the steel or aluminum or other metals under down.ump law, breaking it we spoke to jean munster and he impact will be little. bottom not hurt apples line. emily: apple will have a big ven focus on education in chicago. i know you've been trying to find out about this. this ked about it earlier week. what do we know? >> well, what we recorded is event will focus around an ipad. lower cost model geared towards education. apple will have software for

alike. google made inroads in the the chromearket with books, as well as a surface classroom.gle t's a service where kid can do their homework. they have 53%. 17%. only has >> the ipads are designed to 17%. the the software that apple is will be integrated approach. they have a lot of framework, itunes for chers, class work and watching videos lesson. >> i know you'll be all over that. we'll have full coverage. mark, our tech reporter. coming up. $1.2 million investment in

dropbox. decade ago. how much is it worth. we speak to the partner brian schryer next. this is bloochl berg. ♪ retail.

under pressure like never before. and it's connected technology that's moving companies forward fast. e-commerce. real time inventory. virtual changing rooms. that's why retailers rely on comcast business to deliver consistent network speed across multiple locations. every corporate office, warehouse and store near or far covered. leaving every competitor, threat and challenge outmaneuvered. comcast business outmaneuver.

mark: here is a check of first word news. donald trump tweeted that the a ban of will issue bump stocks. announced criminal charges and sanctions against the iranians accused in a government sponsored hacking scene. he indictment alleges that the defendants worked on behalf of the iranian government. guard.lamic revolutionary they hacked the computer systems 130 university - pardon me, in 23 kunies.es

-- countries. are american universities. ark: the hackers were affiliated with an iranian prosecutors say contracted with the iranian government to steal scientific from other countries. he islamic state claimed responsibilities for an innocent in southern france where an hostages. ook the suspect was killed by police. french president praised a police officer who was seriously wounded after offering himself in a hostage swap. uropean council president donald tusk says eu nations will ake more steps against moscow following a nerve agent attack in the u.k. these difficult ircumstances, i'm pleased that

he european union demonstrated unanimous matters in the face of attack. reporter: the eu says it's highly likely that russia was attack on aarch 4th former russian spy and his daughter. hospitalized in critical condition. tusk confirmed the 28-nation withdraw its ambassador from moscow for sayings. an e.u. official has been cited says they will not provide assistance for the election vote. by unced as rigged opposition leaders and foreign overnments, and the main collision opposition is boycotting the election. lobal news 24 hours a day, powered by more than 2700 journalists and analysts in over countries. in new york, i'm mark crumpton,

this is bloomberg. ♪ emily: this is "bloomberg echnology", back to the top story, dropbox soareded its day of trading, paying offhand somely for a first investor. starting with a $1.2 million ago, tment over a decade worth $2 billion today. partner atp with the the nasdaq on friday. listen. >> we first met when dropbox was two tremendous founders with the product commission, and today you have a

billion dollar company brought people.of the finest it's a great privilege to be involved. seen the r: you have cycle. they took cycle. they took time to refocus the business, cut costs and got it nto the shape that public master investors were excited to see. what takeaways do you share with follow companies ith what -- portfolios with what dropbox did? >> it's been a decade in the making. thing is a dropbox model. ted a business they built something of scale. dropbox soars over 400 billion pieces of content. taken a lot of financial investment over the years. off in a tment paid company that has been cash flow

positive. ip o's, l company exit we get 20-30 a year. there are a lot more private start-ups that have valuations billion, what about dropbox made it a company that public.t >> dropbox combines the best of worlds. the strength of the consumer is scale and viration. and have business model. there's not another business out there like it. the other elements is it was a the business from beginning and a great product. it was a hard thing to do. partnered with one or two at anies a rear as we do sequoia, it's a one a decade two businesses like this. eporter: what are you telling other c o's when you -- c.e.o.s

dropbox. point to ? >> it's a model of a long orientation to building a business. dropbox announced it was the a test company to achieve billion in revenue. but it has taken a lot of time. means making the right decisions. number one is building something world class. for dropbox, it means people hat are the best in the world at their job, and finding people character, if character starts, and hire number one all to dropbox 2,000 today. that's why it's a privilege to work with them. i think back to 2015, when they were listed, there was kerfuffle about the fact that it was going public at evaluation. to people the last three ears in the i.p.l. silicon valley world, it seems concern been the evaluation has

taken off the table. ropbox traded under and is now trading through. when you think about the doestion question, yes, it impact business strategy and moral and customer relationships fundraising. how have things changed in terms think about a change in the ipo? > at dropbox we focussed investors and employees, anyone around the country, on the long term. we felt if we built a service of for 500 million people and 10 million customers, we'd eather ups and downs in the market. what we have seen is despite a week of volatility in the public market. last any that is built to can punch through all of that. reporter: you are an early stage company. you look at companies that are young. where else have you looking at.

a nice stake. upwards of $2 billion, trading higher. is sequoia looking to put its money? there's a oia tremendous number of opportunities, we have invested n rockets to data science to social media. the he honest answer and secret to venture capital is we are looking for the founders difference, and they are hard to find. - when : drew and arash do you look for the female pair how has your thesis hanged given the real impact that some of the strong female oices had, talking about the sexism in the silicon valley industry. >> it's changing for the better. there's a long way to go. he last two founders i backed are female so i'm glad you

asked. i think things are getting better. have a long way to go. >> when you think about exit are your , where thoughts these days. the market has run off. a route in text stocks. ut it's been a long time bull market generally. are things getting frosty, is ow the time to push your companies to exit. how do you think about the exit strategy. >> our strategy is to be the the ipo partner. we don't optimize for exists. a way we think differently from other investors, we believe the exit come, if you are building enduring value, that is with public mark investors. brian there with our own alex. it or not there's outer china, a ox news, in

60 billion valuation as it mulls going public, rivalling uber. e of it's the fourth most valuable valuation of $30 billion. big christo currency bet aying off to the tune of $1.7 million. that is next. bloomberg. ♪

investors re-elected a chip had s board at a meeting the largest proposed acquisition the. en stop 0 directors were elected unocost. the chip makers battling with and others. >> messaging telekom is on a role. has hit 200 users and is on track to raise 250 million. grand plan of its self-exiled russian founder. caroline hyde joins us with more in london. fist what is the size of elegram in relation to other apps out there. here's a specific reason that use telegram. >> yes, they boasted encipion. they were born in 2013.

they had end to end encryption. it's a minnow when you look at the size. 200 million sounds like a lot of users, it is. some has to scale by seven times to be at the size of up. 's six times to get to messenger. of growth to do. and huge plans to diversify into its own block chain protocol. network. to rival the likes of bitcoin and offer payment. will have a digital wallet to the likes age of dropbox. in which you could purchase. you could have online storage, can have a virtual store front. therefore, of course, they have a currency, and it is gram. all of this will be done by

2019. many are skeptical. they have already had a record breaking ipo. do they want more money, how they do that? >> $850 million not enough. a presale. sack oia, the main are not in it.re at that. an eyebrow they know their stuff. presail, have $150 million, and now are doing nother to big-term intisteduals, agreedible investors, then they'll go to mark to raise the other $850 million. tup, hey'll want to get in raise about $2.2 million to grow chain protocol. there's skepticism. drive the y can

efficiencies they claim to want. hey want more efficient protocols. they want faster transactions, etting a million transactions every second. at the moment you can get 7-16 second. they don't outline in the white would achieve this. there's skeptisism but they are record-breaking numbers and have broken records. on the here's an update facebook. cambridge and analytica storage. undergoing a third party audit. tell us about the actions taken. yes, let's bring it closer home. is u.k. analytica based. the probe into cambridge anna ebbinga - it has been stunted. a couldn't get a warrant from

judge. finally they have the warrant. this is the commission office in the u.k. as i say, the main regulator, watchdog. ivacy they have the all clear to go into the office, the computers cambridge analytica to come to grips with whether they have data of 50 million us citizens that they take from facebook. all of this is alleged. cambridge analytica says we that when asked to by facebook. many feel the data is on their computers. what they find out. was suspended after bragging about the tactics they used. suspend. n we now see how they deal with a they are y audit

taking on to prove that they data. have the emily: thank you, caroline hyde in london for us. thank you so much. with each passing day facebook has to answer about its to in in and obligation society. next one of its earlier cofounders, this is bloomberg.

emily: returning to the coverage of the facebook fall out. mark zuckerberg broke his silence over the cambridge data, undertaking concrete steps to ensure is happen again. a former cofounder of the

network, hughes, spoke to us on bloomberg studio 1.20. and asked him about facebook's responsibility in influencing society. nd take a listen. facebook'sbeen about responsibility in the 2016 election, and has taken stock of his own responsibilities to hink about how facebook influences politics and culture and the recent changes and hings they are doing is a reflection of that. have no idea if that will be enough. i can't say whether or not facebook will be able to prevent russian meddling. i hoe they can. hey have a deep responsibility to do so. the first step is understanding that the responsibility exists, there's an embrace in that. and it makes me hopeful. hope we see something similar across the board with other on the economic

issues which are just as urgent as much ot grabbing headlines. emily: you were critical. and now today, the focus really the news feed, and facebook as said we'll show you less news and more posts from friends and family. before we go there, take me back little and talk to be about launching news feed and what was, and how you take stock of what it became. first facebook home page, the vast get, but majority never saw it, you have photo. ges, here is the it was bland, boring. new speed in the fall of 2006. and it really revolutionized the platform. making it easier for people to what p to date with friends and family are doing, and the core of the product, if you will. today.h

best. hink that at its as one of the billions of users, hen it's engaging, entertaining, delivering you important news and information out you want when you find a friend got engaged or another had a child. they are important life event to have those, in addition to everything else. view of valuable product is what the facebook folks want to back to now, which seems to be a move in the right direction. a way it's almost as if facebook is taking a morale a way that it could help the business or could hurt the business, depending on how you evaluate what is good for the business. yes. emily: it's interesting territory to be evaluating. headline. the same it's not a long time - it's over a decade since i worked on the

team there. there's a sense - not just at acebook, but twitter, and all the social companies and platforms that they work best meaning: there's a difference between being entertaining and meaningful. and making sure that when you spend time in the product, you feeling a sense of connection. ultimately that is what the was intended, what it about. it's important for them now and in the beginning an important driving value. do the companies have a moral obligation. >> they have an obligation to understand the role that they in society, and what they it. doing to impact if we take politics, i don't know if i call it a moral. but they recognise an obligation to make sure that people are istening to others that disagree with them. >> that's from the upcoming 1.0 interview with

acebook cofounder chris hugh finely virtual reality was supposed to be the next big thing. hasn't happened. occulus is trying to change that. a first hand look. virtual reality was supposed to be the new way to look at the world. to take off the way hollywood told us it would. of facebook, sion a trying to change that. oculus. , the a new strategy, cheeper and a approach. unlike head sets from htc, sony high end range, the go is a stand alone device. to be chained to a powerful desk top or laptop. a smartphone chip and battery used similar to a phone, iphone touch.

go, can watch movies on the play games or immerse yourself are apps. has 20% ownership of vr. 40. ling sonny who has it gives oculus a lot of room for growth. to as a referred platform supplanted by ar. augmented reality, a cousin of vr. mixing virtual and real world. d believeder: is not yet as a winning strategy. thiss may be a hit product year and next. short-lived. emily: that was our own mark fur main. for this edition of bloomberg technology. check us out. that is all for now. this is bloomberg. wonderful weekend.

announcer: the following is a paid program for perricone md. it is the first of its kind treatment that can actually help you most. posted by courtney thorne smith and featuring one of the most dramatic before and after photos you have ever seen. >> don't change the