in the u.k. and the u.s. they also agreed to work together in preventing chemical attacks in both nations. a federal judge has ruled that anddistrict of columbia maryland may proceed with an unprecedented lawsuit against the president. that's according to, "the washington post," which reports that the business dealings 's maned the constitution on receiving improper payments from individual states and foreign governments. the president's former campaign aide rick dates -- gates communicated directly with the man he knew was a russian spy month before -- a month before the presidential election. through your -- the european union is making plans to improve mobility among its number states and allow equipment and heavy machinery to move across the continent faster. member states will look at where the bottlenecks are and how to ease customs formalities. the eu also will need to look at which civil projects on roads

and railways can have a defense component. global news, 24 hours a day, powered by more than 2700 journalists and analysts in over 120 countries. i'm mark crumpton. "bloomberg technology" is next. ♪ emily: i'm emily chang. this is "bloomberg technology." make it happen tech shares -- megacap tech shares continue their fall. full coverage of the market selloff ahead. still the facebook crisis continues to spread. details on why the company is delaying a new hardware debut. the president's plan to keep chinese influence from dominating the tech sector. first, to our lede, volatility

continues to grip big tech stocks. tech was once again the main laggard in the u.s. markets. on this day, amazon, netflix, and tesla stood out as three of the biggest losers in wednesday's session. we have to break down the numbers. hyde.egan and caroline mike, i want to start with you. walk us through the biggest winners and losers today. mike: like you said, amazon took center stage today after it was reported that president trump is -- might be targeting them for some sort of antitrust action. if you look at the nasdaq 100 especially, amazon is such an influential stock for that index and the s&p 500, of the nasdaq today,9 point drop amazon accounted for almost half of that because it was such a big drop in those shares. that really gives you a sense of where the focal point was, but,

that said, if you look at the tech stocks through the goggles of wall street, it's not just the technology industry that is being sold, most likely. tech has become a very important part of some of the popular factor and quant investing strategies out there, growth being probably the oldest and most well-known, but also momentum. once there is weakness in some of these stocks, it tends to cause a ripple effect. it can be highly correlated when you look at it from the perspective of these quant momentum and growth strategies. emily: so, caroline, this is obviously spreading globally. talk to us about how markets are reacting in europe and asia. caroline: it's the same thing. we are seeing the selloff worldwide here. i've got a great short -- chart. you can see how much they echo the ripple effects from the u.s., spilled over into asia and europe. wasseeing in europe, tech

the second worst performing industry group. asia, it was the worst. like in the u.s. as well, we've seen the ramp up over the past six months to 12 months of tech being the outperform or. -- outperformer. so, down she goes. asia, it was the worst. like in the u.s. asthere are cot antitrust, concerns about regulatory overhang, concerns spilling from facebook's data debacle on to some of the other far more expensive stocks. it has to be noted that amazon and netflix are two of the biggest laggards. tesla, one of the most expensive. amazon and netflix trade 100 times their future earnings. the price, currently trading at 100 times where the analysts have seen their earnings going. meanwhile, tesla doesn't even make a profit. no wonder, when we see these shivers go down the spines of investors, they want to lock in profits now.

emily: facebook ended the day slightly up. if you look at how the markets have profits now. emily: performed since the facebook news broke, the cambridge analytica data scandal, twitter has fallen more than facebook. ike, why is that -- mike, why is that? mike: if facebook is going to get in trouble for this type of thing, perhaps twitter will not be too far behind. maybe even alphabet. this was the thesis of a very intellectual -- influential shortselling firm. he's shorting twitter on the notion that, if facebook is getting into trouble for this type of thing, twitter will not be far behind. there's also obviously been a lot of scrutiny on android phones and how they interact with facebook and the data privacy issues there. --gle is kind of caught up and alphabet is kind of caught up in this as well, as a result. emily: so, caroline, there are other things, of course, happening around the world.

in brazil, we've been talking about this delete netflix campaign after a new docuseries netflix has been airing focusing on brazil. what are we seeing there? caroline: we saw netflix become one of the worst performers on the day. netflix had been one of the best performers over the past six months, but this does seem to be an ongoing concern, significantly, surrounding these tech stocks. the record plunge we have seen in the so-called f.a.gn.g. darlings. yesterday was the biggest selloff we've seen in these names. look at the red numbers. we've seen that selloff once again when it comes to the likes of netflix, with this delete netflix coming over from brazil. these are global companies that come across global issues. tesla is fascinating to focus in on, because this is across asset type. asn they have debt exposed well, tesla's debt is trading at

about $.86 on the dollar. we are seeing the money market start to see the concerns about whether we see fatal crashes, tragic as they are, affecting the likes of tesla. so much exuberance has been baked into these companies. when you start to see even the economy continue to perform, individual province starts to waear -- wear on the stoxx. many people are looking for an excuse to cut and run. emily: talk a little bit more about the model x accident and production hold up -- holdups. what are you watching? what will you be watching going into tomorrow? mike: obviously, tesla is in a lot of trouble, as caroline said, both in the stock and bond market. it's looking pretty clear that they will have to figure out a way to raise more money, either through an equity sale --

a lot of speculation that the debt market is just not the place for them this time. more broadly, i think there was a lot of optimism built into semiconductor stocks based on the autonomous driving, autonomous car future, and that is certainly in doubt now. suspend testing of its autonomous driving chip program. think -- and the uber crash, too, the news of that earlier this week -- i think it is also hitting the chip stocks at the same time. when it rains, it pours, as far as bad news goes for this group. one other story i would point out that i don't think got a lot of attention but it's sort of interesting,, is québec last night saying it is looking at taxing online companies like netflix and amazon. sort of a story that flew under the radar. i think it's something to keep

an eye on to see if other countries, follow suit and push back at the big e-commerce giants with higher sales taxes. emily: all right. mike regan, our bloomberg senior editor, and caroline hyde, live for us in london. thank you both. tomorrow.entful a day in the latest tech revolving door, over' -- uveber's self on isng executive lior r said to be leaving the company. uber has shut down the testing of self driving cars and will not renew its permit in california to test these cars on the road. another revolving door, equifax has named a ceo, effective april 16. he was formerly a managing director at warburg pincus. the appointment comes seven months after a massive data

breach sent the credit bureau's shares tumbling. coming up, facebook is delaying the unveiling of new home hardware as fallout over its data controversy spreads to its hardware line. and if you like bloomberg news, check us out on the radio. listen on the bloomberg radio app, bloomberg.com, and in the u.s. on sirius xm. this is bloomberg. ♪

emily: tim cook is weighing in on the facebook crisis. the apple ceo said he would prefer facebook and others curb their use of personal data, taking a strong stand yet again

on the side of user privacy. in terms of regulation, he says he thinks the best regulation is self-regulation. when asked what zuckerberg should be doing, cook recommended duration -- curation. he says apple will be looking at every app in detail. comments will be aired on msnbc on april 6. sticking with facebook, the fallout continues to unfold. the social media giant will delay the unveiling of new home products. according to people familiar with the matter, facebook's new hardware products are undergoing a deeper review to ensure they make the right trade-offs regarding user data. this announcement comes as the company announced it is redesigning a menu of privacy settings on its network. joining us now, seven -- sarah frier. talk to me about this home speaker and how it was going to work, because there are some troubling details about just what this speaker would know about me. sarah: this is not the right

time to ask people to put a listening device in their living rooms. this is a time when people are really worried about all the data facebook has on them. basically what this home device would have helped do is it would allow you to video chat with other people in other houses and use facial recognition to let them know who was talking to them. there are all sorts of more intrusive details that -- of this kind of artificially intelligent device, including facial recognition, that make it really difficult for somebody to say, yes, i want to buy that right now, in light of all this news. emily: it's not as if they are shelving this product altogether. they are just taking a closer look, possibly waiting for the controversy to die down. sarah: there are a couple things going on. first, this news cycle has not been very friendly to them. second, they are trying to say that they are -- internally,

they are trying to learn from what has happened now. they are looking at the product to figure out what could go wrong, what are the things that, when we launch this, people are going to be freaked out about. then they are going to have the hardware done in the fall, so we expect them to announce it sometime before the fall. emily: they are redesigning their privacy settings menu on mobile. what exactly is happening here? sarah: the same thing that we've seen happen from facebook year in and year out. i remember back in 2014 they introduced this privacy checkup with a blue dinosaur to get people to care about adjusting their privacy settings. it doesn't matter. it does matter, but it doesn't. when people give permission to these apps, they give permission to facebook, they are in the moment, trying to get something done, trying to use a new game. here's later, they see that facebook has this information and they say, oh, i would not have done that. emily: or if i really

understood what was going to happen, i wouldn't have done that. you saw what tim cook is saying, the best regulation is self-regulation, that the burden is on facebook and not on users to opt in or opt out, but on facebook to draw a line somewhere. sarah: facebook is going to try to do that by making it very clear to their users what they have actually opted into. a lot of these things are very simplified. when people give their contact information to facebook, they don't realize that facebook is getting their call logs. they think they are just giving them their list of contacts so they can be connected to people they are friends with on an app. it is simplified and fun looking, brightly colored interface, but these are really serious issues. there is a balance of needing to get people to look at this, but also the seriousness of these problems. a lot of the problems that facebook is dealing with now are not with the current privacy. it is these issues they had back in 2012 and 2013, when they just

gave out this data without as much thought about the consequences. emily: i wonder if at a certain point, facebook will say it's not safe or write for us to have all this information, as apple has -- safe or right for us to have all this information, as apple has. sarah: apple doesn't have an advertising business, and facebook does. facebook is providing this free service. apple, you buy their phone, so they don't need to make money off your data in the way facebook does in order to basically be profitable. that said, facebook is extremely profitable, and they could maybe go with a little less. emily: all right, sarah frier, who covers facebook for us, thank you as always for breaking it all down. coming up, as spotify gears up for its direct listing, we will hear from competitor pandora. where does the streaming service fit into the current landscape and how are they luring ore -- more premium subscribers?

this is bloomberg. ♪

emily: another tech company is going public. docusign is planning to list on the nasdaq. the initial $100 million ipo amount is likely a placeholder. the company plans to use proceeds for working capital and other general corporate purposes. the electronic document software company had a net loss of $115 million for the year ending january 2017. the music industry has seen a resurgence in the last few years thanks to the proliferation of streaming music. since going public, pandora has been one of the mainstays in the industry, but with spotify's direct listing around the corner, the competition is heating up. i want to bring in the chief products officer at pandora. thanks so much for joining us. you guys just launched

personalized playlists. they go live today, tailored to users' moods. if they go well, how will this work and beef up the offering you have? christopher: they just started rolling out to a subset of our premium subscribers today. it's a great way to showcase the power of our personalization. what we're doing is we are taking all that we know about our listeners, what we know about music and using our machine algorithms, the music , ande, personal taste delivering to our listeners based on their mood, favorite genre. it gets updated weekly for them. it's an exciting new opportunity to showcase the power of our new on-demand product. emily: u.s. music sales climbed last year. streaming service is now account for about 2/3 -- streaming services now account for about 2/3 of that pie.

largeste are the digital streaming service as far as time spent in the united states. we are able to monetize a lot of that through our digital audio advertising business. in the u.s., we have a large portion of that and we've seen that growing. that's really exciting with audio right now, with the use of voice-activated speakers. the music industry, even podcasts, the spoken word, is growing. that's where pandora is well-positioned to take part of that. emily: time spent is one thing. how do you convert more of your free users to paid? chris: we have an offering that lets users have choice. if our listeners want to stay in our ad-supported product, we are continually making that better. our investment last week is a great example where we improve the tech to make the advertising experience with music great, and we are trying to showcase that we have a premium offering and on-demand features, such as personalized soundtracks. this way they can see the power of that on-demand format with

playlists, with picking the songs they want to play when they want to play them. emily: pandora has been a public company for some time now. hottest spotify's direct listing -- how does spotify's direct listing change the game? chris: it's a great thing for the music industry. there is investment coming into the space. we think we are well-positioned, given the size of our audience and the expertise we have in delivering super personalized programming and being able to monetize that ad supported, as well as having a subscription product. we believe it's a positive thing, and we are well-positioned. emily: what are the challenges of being a public music company? it will be nice to have them in the same boat, essentially? chris: it will be. on the product guy so i'm focused -- i'm the product guy, so i'm focused on building a great offering and getting it out to our listeners quickly. we have to showcase how we are performing every quarter. that's important data for our investors and advertisers. i focus a lot on what we can do to up our game and keep our

product innovative for the listeners and bring in new innovation for the advertisers as well as the music industry. those are the things that i focus on. emily: look, the challenge for pandora is that apple music and spotify are getting an increasing share of the pie. how do you lure some of those users back? chris: the quality of the service is key. there is something about the fact that you can tell pandora you want to hear this song, we play it, and then the programming that happens after that is perfectly tailored to you and the context you are in. emily: pandora has always been that. chris: we have always been that from a station experience. we've had to evolve to deliver that experience in an on-demand format. if you want to create a playlist, for example, give us a few songs and we will finish it for you. we can use the genome that we have used to analyze music, the algorithms, and not just for radio, which we continue to be very strong on, but we can use that same tech for the on-demand features and make those really different and better than other

services. emily: there have been a lot of leadership changes at pandora over the years. how is the team weathering that, and what is the next phase? chris: we are really excited about a lot of the new leaders on our team. roger is doing a great job, bringing an amazing experience. we've had a lot of new members on our board come in, who really understand our business. they understand the industry and are supportive. it's fantastic because we are investing in our product and in innovation. emily: i know that you are the product guy. i'm curious, though, what trends you're seeing in ad sales, especially given the midterms coming up. the founder told me once that pandora can tell whether you are a democrat or a republican. that's something pandora can potentially exploit as we going to the midterm elections. is there anything interesting or special that pandora is doing? chris: we spend so much time with listeners, so we know a lot about their tastes. we can anticipate the language they might speak and the fact

that they might have children and where they are in the context of their life and that helps us, do wonderful targeting around our advertising. advertisers want to be able to tell a one to one story at scale. how can i reach the right listener at the right moment with the right message and then measure it and see the effectiveness? our service is really tailored towards that. emily: chris phillips, pandora's chief product officer. great to have you here on the show. coming up, more about targeting technology and why the president is taking aim at china's tech sector. are we entering a tech cold war? that's next. this is bloomberg. ♪ 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 c.: i'm mark crumpton, and you are watching "bloomberg technology." here is a check of "first word news." the white house press secretary says president trump has not considered pardoning his former top aides michael flynn and paul

manafort in the russia investigation. she adds the president's lawyer has said as much. >> i would refer you back to tie cobb's statement that there is not discussion or consideration of that at this time, so there would be no reason for me to have to have a conversation with the president about that, because that is not currently being discussed at the white house. mark c.: the kremlin says a summit with president trump is still on the table, despite the expulsions this week of 60 russian diplomat. moscow says it is up to the u.s. to decide if it still wants to meet. the japanese prime minister, shinzo abe, says he worries that north korean security threats to japan may not be discussed at a u.s.-north korea summit this spring. abe told parliament of his concerns that president trump will focus on intercontinental ballistic missiles and forget shorter range missiles that threaten japan, but not america. france today bestowed its highest honor upon the officer

who was killed last week after volunteering to exchange places with a female hostage at a supermarket. the lieutenant colonel gave up his weapon and went inside the supermarket where people were being held. global news, 24 hours a day, powered by more than 2700 journalists and analysts in over 120 countries. i'm mark crumpton. this is bloomberg. it is just after 5:30 p.m. here in new york, 8:30 thursday morning in sydney, where my colleague paul allen has a look at the markets. paul, good morning. paul: good morning, mark. it looks like a down day to end the week. tomorrow, a public holiday. following wall street in this is lower -- wall street indices lower. amazon really weighing on the nasdaq. despite that, futures in this part of the world looking reasonably optimistic. modest gains ahead of the open here in australia.

futures,mp for nikkei up more than 2.7% there. the aussie dollar is showing more weakness against a resurgent u.s. dollar. the same for the japanese yen, also weaker against the u.s. dollar. the commodities complex, not doing so well. gold and oil both weakening. oil lower on swelling crude inventories in the u.s. copper and iron ore, weaker. waiting on japan retail sales for february due out later on. more from "bloomberg technology" next. ♪ emily: this is "bloomberg technology." i'm emily chang. first, he took aim at china's steel. now president trump is targeting china's tech.

on 10is planning curbs industries that beijing dominates, the so-called made in china 2025 initiative. here is peter navarro on the president's plan. >> certainly the focus of the tariffs are on what's called the china 2025 industries. hasa, in my view, brazenly released this china 2025 plan, that basically told the rest of the world, we are going to dominate every single emerging industry of the future and therefore your economies aren't going to have any future. emily: to examine the impact on what this means for tech industry both here and in china, i want to welcome someone intimately familiar with chinese technology and policy issues, , from the council on foreign relations. there is so much speculation about who the winners and losers could be here. the reality is we don't really know. what is your assessment of the

possible impact? adam: i think you are right. we don't know. when they name a specific sector that they are going to try to penalize, then we are going to see a lot of people trying to lobby to be left out of the tariffs. we are going to have a good sense of where you might fit on that supply chain and how you might be punished. emily: so, you know, again, who do you think the winners and losers could be, essentially? adam: well, they have been fairly clear that they want to punish china in high-tech. things,ot, internet of devices, automation, robotics. the made in china 2025 plan is basically an attempt to move china up the value chain from just labor-intensive production to internet-based, 3-d design. if you are in any of those

areas, it's very possible that you are going to be caught up in the tariffs. artificial intelligence, robotics, automation -- those are all areas that would be likely targeted. emily: i wanted to ask you about artificial intelligence specifically, because there has been so much talk about how the chinese could win in the race for the most sophisticated artificial intelligence. talk to us a little bit about how advanced china's efforts are there, compared to the united states. adam: well, the chinese really have three advantages. the first is just the size of the data and the market. -- thatese web users data is available to the big players, tencent, baidu, alibaba, jd.com. the other is an ability to use that data. chinese privacy concerns, not as high in the u.s. and europe.

third, government strategy. a very big push from the top for china to be a competitor in this space. the chinese firms are still not as competitive as u.s. firms. most of the important research is still being done in the u.s. china lacks on the town outside, but they are -- on the talent side, but they are clearly a competitor in this space. emily: veteran affairs secretary david shulkin is being replaced by president trump. the president will nominate his personal physician, ronnie jackson, to succeed him. the turnover in the white house, adam, continues. it leads to a pretty good question on these issues on the terror ofs -- the tariffs. given the uncertainty of who is in these jobs, how do you think that will affect how the policy actually plays out? adam: it certainly has affected

the chinese. they have been scrambling to figure out who they should talk to and who they should negotiate with. i think the president has been pretty consistent about wanting to reduce the deficit, the trade deficit with china. so, i suspect no matter who is in the positions right now, we will see consistency there. earlier, you showed us a quote from peter navarro, and he seems to have really, after a year, positioned himself to take the lead on these issues. and with the report out, i think they will be -- there will be consistency in policy, even if there is more moving around of the deck chairs. emily: the administration is also reportedly considering trying to penalize or influence chinese investment in u.s. tech sector, specifically talking about semiconductors and 5-g. how do you expect that to play out? adam: as you know, i think we've

already seen that. the president blocked the broadcom acquisition of qualcomm. we've seen leaks of documents that supposedly the government was thinking about nationalizing the 5-g networks. the most likely move forward is reform of the cfius process, the committee on foreign investment in the united states. there has been concern that some of the ways that china has been acquiring technology -- they've been either using minority positions or going after companies that have bankrupt -- have gone bankrupt. that process will be reformed by a bill that has pretty good bipartisan support, and that will make it harder for chinese investors to invest in critical technologies. emily: adam segal thank you, -- emily: adam segal, thank you for joining us on the show. softbank and the kingdom of saudi arabia are going all in on solar.

they signed a memo of understanding for the $200 billion solar power project. it would supply 200 gigawatts to saudi arabia, tripling the electricity's country supply by 2030. overclaim it will create 100,000 jobs. concerns over a fatal crash in california. another stock to watch in autos. general motors regaining its position as the most valuable u.s. automaker this week, as tesla stocks continue to slide. this is bloomberg. ♪

york auto show is taking place in the shadow of a recent fatal uber self driving car crash. that is not stopping automakers from showcasing their latest vehicles. take a listen to the president of audi. >> you do need a federal standard, because that will get away from a lot of these states coming up with different initiatives in how they work towards it. clearly caution is the name of the game because you're talking about people's lives. that's what we've always said, and that's what we will continue to say. emily: meanwhile, the path forward for driverless car's is still unclear, especially in the wake of two fatal crashes, the first involving that uber autonomous car in arizona and another involving a tesla model x in california. tesla stock is taking on this news. the company said it is working with authorities to retrieve the

vehicle logs. to crash as to -- adds tesla's challenges. for more, i want to bring in max chafkin in new york. max, we are learning more about this model x crash. at this point, where do we stand? max: we don't really know much of anything, except there was a very significant accident. tesla is saying it is the most damage they have ever seen to one of their model x suv's. the reason this is sort of a problem for tesla is that they also have this huge production sprint going on, trying to get as many model three's produced this year as possible. to the extent that they are not able to hit those numbers and you have something like this that calls into question the company's long-term prospects, that could be sort of a toxic mess for a company like tesla. emily: combine all of that with

the general news about production delays. how much does this really set tesla back? max: i mean, so, bloomberg has a model that is very impressive. we don't know how close it is. the model has been showing that tesla's production is likely ramping up toward the end of the quarter, so it's possible that, even though the numbers have not looked super good, that elon musk will come out and say, we knocked it out of the ballpark. because they were able to do a last-second sprint. that said, this is more than a sprint. they have to get to basically hundreds of thousands of cars a year, which is something they haven't done, no one has done with an electric car. so, investors are going to be reading the tea leaves. whatever happens this next quarter, they are going to have to continue growing production on a huge scale for the coming year, basically. emily: we do have a chart here on tesla.

the red is negative, the green is positive. and they've been getting a lot of bad news lately, so not surprising the way this chart looks. what do you make of tesla's response and the fact that even they said they've never seen a crash like this before? they are working with government agencies. is that standard? max: yeah. i think what tesla is trying to -- the line they are trying to walk is, they want to take this seriously. we are seeing this with uber. as well they want to take -- uber as well. they want to take this seriously, but leave open the possibility that, even though there may have been a bad crash, maybe even one in which the car didn't perform as they hoped, that their autopilot could still be better on average than a human behind the wheel. that was the argument made in the wake of the crash last year,

where a person was tragically killed. it's sort of the general tension around autonomous driving in general. even people who believe in this industry know that there are going to be bad things that are and they justn, hope that the number of those bad things is less than what happens today with humans behind the wheel. isly: we are hearing uber not going to renew its license to test cars in california. off taken self driving cars the road in arizona. is this going to take a lot longer than some would have hoped to get self driving cars out on the road en masse in a way that is surely safer than the roads are today? max: 100%. that's one of the reasons you're seeing tesla stock take this hit. elon musk has said the cars on the road today could be self-driving cars with some updates and stuff. part of the bet on tesla is betting that self driving is going to come sooner than people think, that that's going to be how tesla is able to dominate

the auto industry. if it takes longer, either because the tech isn't there or because regulators can't get their heads around it and we as a society can't come to terms with whatever compromises have to be made, then that's going to hurt the companies like tesla that are betting on it. york, max chafkin in new thank you for joining us today. coming up, adobe, best known for programs like photoshop, but its ceo is looking to make a serious push into ai. our conversation with shantanu narayen is next. this is bloomberg. ♪

in deal news, plantronics, the maker of phone headsets and accessories, agrees billion. valued at $2

the move helps plantronics gain a leading position in voice and video services. the deal is expected to close in the third quarter. adobe systems has been spending time trying to figure out what tick.consumers the company is working to diversify after decades of relying on photoshop and other creative software used to alter digital media. adobe adopted a cloud-based business model and shares have soared. next goal isny's to turn the 35-year-old software maker into nai powerhouse. -- into an ai powerhouse. i spoke to show intent in orion -- to shantanu narayen. shantanu: what's unique and differentiated about the strategy we have is that we think experience is what distinguishes how companies are going to distinguish themselves. from our perspective, it starts at content. we are well known for producing the world's best content, and i think it's at the confluence of

content and data where the next frontier of enabling enterprises to engage their customers is going to be. --created this category we are the undisputed leader in the category. there are a number of other companies looking at that opportunity, but at our core we are a product company and the innovation we talked about at our summit today shows we continue to invest and remain the leader. emily: everyone is concerned about their personal data, especially in the wake of the facebook/cambridge analytica scandal. what are the limits of these kinds of targeted campaigns, and where are you drawing the lines at adobe with respect to data privacy? shantanu: the two elements that need to be sacrosanct in this equation, the first is the responsibility that all companies have towards protecting people's data, because the trust that customers are placing in us -- we are in an interesting position, because on the creative cloud, we have millions of subscribers. so, we understand better than

other enterprise companies what it takes to really deal with all of that data. so, having a technology that allows the customers to be in control and staying ahead of some of the regulations that are coming is how adobe is stepping up and enabling our enterprise customers to engage with their customers in a safe and trusted way. emily: so, do you think regulation needs to happen here? if so, how? shantanu: from my point of view, i think companies have this awesome responsibility that they need to step up to. i believe that customers will actually hold companies accountable and responsible. and with the space changing so fast, i think it's actually better the companies step up to that responsibility and deal with it appropriately. emily: will rising privacy concerns make it harder to do targeted marketing campaigns? shantanu:, as long as you have the custome feel in control of

what they want, companies that are targeting them to know about them and deal with it in a systematic and pure way -- i think we will continue to find ways to deliver personalized experiences, because customers also have this in eight ability to want to be treated -- this innate ability to want to be treated as individuals. i think it's a balance. the adobe technology enables companies who want to deliver a personalized experience to accomplish that balance in a good way and keep the trust they need to with customers. emily: what potential do you see in new formats like ar and vr? especially given the vr revolution that was supposedly coming hasn't nearly happened yet. shantanu: today at the conference, we also announced a partnership with nvidia, in terms of having our artificial intelligence and their market-leading gpu's work together. i think both companies would say

the ar is closer in terms of augmented reality and getting that immersive experience. virtual reality is applicable for some specialized use cases right now, but i think ar is where a lot of the action is. i think augmenting the smartphone is clearly a great altering device for ar. it feels like ar is a little bit closer, and the technology for vr will continue to need to mature. emily: we've been covering how ai can be biased, especially when the teams building these systems are not diverse. we are at the risk in an industry that is not very diverse of rewriting some of that bias into the algorithms of the future. how do you at adobe combat that? shantanu: i think the only way you combat that is the realization all across the company that when you are targeting a diverse set of customers, if the employee base doesn't mirror that diverse set of customers that you are targeting, then, to your point,

bias might emerge. the way adobe continues to focus on it is ensuring that we have the most diverse employee base, as well as customer base. we've always been known as one of the best companies to work for, and it's a core tenet to what adobe stands for. emily: looking forward, i would love to hear an outlook on the business, your creative business still growing faster than the marketing business. will that continue, and what is your outlook for the enterprise cloud side of the business? shantanu: emily, we had a very strong q1, as you know. we had again record revenue. the creative business is certainly growing very fast, because we think that creativity is the golden age -- we think it is the creative golden age. whether you are a student or a large enterprise, the marketing business also had a very strong quarter. underlying that, we've been moving the business to be a completely cloud based business. the revenue grew north of 20%.

position,an enviable in that we are one of those unique companies that is growing topline in incredibly well, and we have bottom line also growing well, and a very substantial margin. we think both businesses will continue to grow in the future. emily: adobe ceo shantanu narayen. the trump revolving door continues. the president plans to tap mark andn as director of the imf to nominate david eisner as assistant treasury secretary. we will keep you posted on all these moves right here on bloomberg television. thank you for watching. this is bloomberg. ♪ retail.

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♪ haidi: u.s. market sliding again as tech remains weak and amazon replacing facebook as the fed top punch bag. tesla sure stumbling for -- sure stumbling for tesla. and we did it to a deadline in queensland and the latest. betty: any warning from the wto and that and we did sees the fif me trade war that cade