>> i am mark crumpton. you're watching bloomberg technology. the white house says president trump and theresa may spoke today and agreed on the importance of dismantling russians by networks 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 the district of columbia and maryland may proceed with a lawsuit against the president according to the washington post, which reports the attorneys general alleged the president's business dealings violated the constitution's ban on receiving improper payments from individual states and foreign governments. ,he president's campaign aide

rick gates, communicated directly with a man he knew was a former russian spy a month before the presidential election, according to a court filing by special counsel robert mueller. the european union is making plans to improve military mobility among its member states and heavyequipment machinery like tanks to move across the continent faster. member states will look at where the bottlenecks are and how to ease customs formalities. the e.u. will need to look at what civil projects on roads and a defensean have component. global news, 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. i am mark crumpton. "bloomberg technology" is next.

>> i am emily chang, and this is "bloomberg technology." coming up, tech shares continue their fall. amazon replaces facebook as the biggest loser to coverage of the selloff, and head. to facebook crisis continues spread. details on why the company is delaying a new hardware debut. trump takes on china. the president's plan to keep chinese influence from dominating the tech sector. first to our lead. volatility continues to grip stocks. tech was once again the main laggard in the u.s. markets, but on this day, amazon, netflix, and tesla stood out as three of the biggest losers. we have to break out the numbers. caroline hyde. mike, i want to start with you. walk us through the biggest winners and losers today. mike: amazon took center stage today after president trump was

reported for targeting them for antitrust action. if you look at the nasdaq 100, especially, amazon is such an influential stock for that index and the s&p 500. 69 pointsdaq 100's drop today, amazon accounted for almost half of that because there was such a big drop in those shares. that really gives you a sense of where the focal point was. if you look at the tech stocks through the goggles of wall street, it is not just the technology industry that is being sold. tech has become a very important part of some of the popular there.strategies out growth being the oldest and most , but also momentum. once there is weakness in some of these stocks, it tends to cause a ripple effect. they can be highly correlated

when you look at it from the perspective of these growth strategies. emily: caroline, this is obviously spreading globally. talk to us about how markets are in europe and asia. >> we are seeing a selloff worldwide. i have a great chart. g #btv 5523. you can see how much the ripple spills into asia and europe. i am seeing in europe tech was the second worst-performing industry group. in asia, it was the worst performing industry group. we have seen the ramp up over the past six to 12 months of tech being the outperform or. down she goes when we start to see concerns build into the sector as a whole. there are concerns about the trust and -- anti-trust. it is spilling onto some of the more expensive stocks. in particular, it has got to be

known to the amazon and netflix -- two of the biggest laggards. amazon and netflix was trade more than 100 times their future earnings. the price is trading at 100 times where the analysts foresee their earnings going. tesla does not even make a profit, so no wonder, when we see the servers go down the spines of investors, they will sell out. they want to book in their profits now. emily: what is fascinating is facebook, as of today, is slightly up. if you look at how the markets broke, the cambridge analytica scandal, twitter has fallen more than facebook. mike, why is that? michael: it is a theory that is facebook is going to get in trouble for this sort of thing, perhaps twitter is not far behind, maybe also that. this was the thesis of an influential shortselling firm citroen research.

it is selling to it on the notion that if facebook is getting into trouble for this type of thing, twitter will not be far behind. it has been a lot of scrutiny on android phone and how they interact with facebook and data privacy issues there. google has caught up. as wells caught up as a result. emily: caroline, there are other things happening in brazil. we have been talking about this delete netflix campaign after a new docuseries that netflix was airing focusing on brazil. what are we seeing there? caroline: we saw netflix become one of the worst performers on the day. neff looks has been one of the best performers over the last six months, but this seems to be an ongoing concerns surrounding these tech stocks. i have a great chart showing you the record plunge in the so-called -- and the so-called

fang sterling. 7514. look at the red numbers. we see the selloff once again when it comes to the likes of netflix and the coming over from brazil. these are global companies that come across global issues. tesla is another fascinating one to focus in on. this is a cross-asset type as well. we are not seeing these stocks fall. when they have debt exposed as well, tesla's debt is trading at $.86 on the dollar. we are seeing the bond market start to see the concerns about fatal crashes affecting the likes of tesla, whether they will hit their numbers when it comes to model three. so much exuberance baked into these companies. when you start to see -- even the economy continuing to inform stocks, many people are looking to have any excuse to hit the road and run.

emily: talk to us a little bit more about tesla. we will be speaking later in a show about the model x accident and the production hold up. they are certainly feeling the pinch. what will you be watching going into tomorrow? inhael: obviously, tesla is a lot of trouble, as caroline said, both in the stock market and the bond market. it is clear they will have to figure out a way to raise more money either through an equity sale -- a lot of the market isat not the place at this time. there is a lot of optimism those into the semiconductor stocks based on the autonomous driving, autonomous car future. that is in doubt now. nvidia suspend testing of its autonomous driving chip program. resla is, i think -- the ube

crash, too. the news of that earlier this week, i think, is also hitting the chip stocks. it is really when it rains, it news goesfar as bad to another story i would point out that i don't think got a lot of attention but is sort of interesting is quebec last night saying it is looking at taxing online companies like netflix and amazon. you know, sort of a story that flew under the radar, but i think it is something to keep an eye on to see if other countries follow suit and pushback at the big e-commerce giants with higher sales taxes. emily: mike reagan, our bloomberg senior editor, and caroline hyde, for us in london. thank you both. aswill see if it is not just eventful a day tomorrow as it was today. ok. in the latest revolving door, iran is said to be leaving the

company. this comes after a deadly crash of an uber in tempe, arizona. arizona has shut down the testing of uber's self driving cars. it will not renew its permit california to test these cars on the road. in another revolving door, equifax has named mark as ceo. , he hasng director pledged to spend more on strengthening security. the appointment come seven month the shares tumbled. facebook is delaying the unveiling of new home hardware as the fallout spreads to its hardware line. and if you like bloomberg news, check us out on the radio. listen on the bloomberg radio app. this is bloomberg. ♪

emily: tim cook is weighing in on the facebook crisis. the apple ceo said he would you for if facebook and others curb their use of -- he would prefer if facebook and others curb their use of personal data. he thinks the best regulation is self-regulation. cook ri recommended termination. he thinks the company will be looking at every out in detail. his comments will be aired on msnbc on april 6. facebook, the fallout continues to unfold. giant will delay the unveiling of new home products.

according to people familiar with the matter, facebook's new products -- this announcement comes as the company announced it is redesigning a menu of privacy settings on its network. , whong us now, sarah frier covers all things facebook. 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. theh: this is really not 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, and basically, what this home device would have helped do is it would allow people to video chat with other people and other houses and use facial recognition to let them know who is talking to them. there are all sorts of more of this kindails

of artificially intelligent device, including facial recognition, that make it really difficult for somebody to say i want to buy that right now, in light of all of this news. it is not as a facebook is shelving this product altogether. they are just taking a closer look and possibly waiting for the controversy. sarah: there are a couple of things going on. this news cycle has not been friendly to them. they are trying to say that they are learning or at least internally, they are trying to what hasm happened now. they are looking at the product to figure out what could go wrong and what are the things people are going to be freaked out about? they will launch it and 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 we have seen happen from facebook year in and year out.

they each reduce this privacy checkup with a blue dinosaur to get people to care about adjusting their privacy settings. it does not matter. it does matter, but it doesn't. people give permission to these apps and facebook, they are in the moment, trying to get something done. game. to use a new years later, they see that facebook has this information and they say i do not think i never would have done that. dmily: if i really understoo what was going to happen, i never would have done it. tim cook says the burden is on facebook and not on users, but on facebook to draw a line somewhere. sarah: facebook is going to try to do that by making it very clear for their users what they have actually opted into, but a lot of these things are very simple if i do when people give their contact information to facebook, they do not realize that facebook is getting the call log.

they think they are giving them their list of contacts so they can be connected to people they are friends with on an app. it is really simplified and fun looking, brightly colored interface. these are really serious issues, and there is a balance of needing to get people to look at this, but also the seriousness of these problems. one of the problems facebook is dealing with now is not with the current privacy, but these issues they had that in 2013, when they really gave out this data without as much thought, without the consequences. emily: i wonder if facebook says they don't want all of this information or if it is not safe or right to have all this information as apple has. apple saying we don't even know what the data is. sarah: apple does not have an advertising business, and facebook does. facebook is, you know, providing this free service. apple, you buy their phone, so they don't need to make money

off user data like facebook does in order to be profitable. that said, facebook is extremely profitable, and they could maybe go with a little less. emily: all right, sarah frier. thank you as always for breaking it down. for itsying fears up direct listing, we will hear from pandora. where does the streaming service fit into the current landscape? that is next. this is bloomberg. ♪

emily: another tech company is going public. doc you sign his plan -- do cusign is planning to list on the nasdaq. it is likely a placeholder in the company plans to use proceeds are looking capital and other general corporate

purposes. the electronic document software company had a net loss of 115 million dollars for the year, ending january 2017. the music industry has seen a resurgence in the last few years things to the proliferation of streaming music. pandora has been one of the mainstays in the industry. with spotify's direct listing around the corner, the composition of streaming music is heating up. i want to bring in chris phillips, chief product officer at pandora. thank you so much for joining us. you guys just launched personalized playlists, tailored to users moods. if you will, how will this work? how will it be for the offering you have given the competitors? chris: personalized soundtracks just started rolling out to a subset of our premium subscribers today. it is really a great way to showcase the power of our personalized nation. what we are doing is taking all we know about our listeners, the music, and we are using our machine algorithms, the music

genome, personal taste, and deliver them to our listeners a playlist based on their mood, favorite genre, and it gets updated weekly for them. it is an exciting opportunity to showcase the power of our product. emily: sales climbed last year. streaming service is now account for two thirds of that pie. what is pandora's slice? chris: we are excited that we are the largest digital streaming service as far as time spent in the united states. we have a lot of the time spent so we are able to monetize that through our digital audio advertising business, so in the u.s., we have a large portion of that, and we are seeing that growing. that is exciting with audio with the use of voice-activated speakers. the music industry and even podcast and spoken word are growing. that is where pandora is positioned. emily: how do you convert more

of your free users? first of try to -- all, we have an offering that lets users have chores. if they want to stay in our product, we are continually making that better. a greatstment was example where we improve the tech to make the advertising experience with music great. we are trying to showcase we have a premium offering and on-demand features. personalized soundtracks. this way, they can see that we will give them that on-demand format with playlists, with picking the song they want to play when they want to play them. emily: pandora has been a public company for sometime now. how does the direct listing gems the game? it chris: is a good thing for the music industry. thes taking advantage of digital audio. 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 monetize that as ad supported as well

having a subscription product. we believe it is a positive thing and that we are well-positioned. emily: what are the challenges of being a public music company? it would be nice to have them in the same boat, essentially. chris: it will be. i am the product guy, so i am always focused on building a great offering and getting it out to our listeners quickly, that we have to how we are performing every quarter. and that is important data for our investors and advertisers, i focus on what we can do to keep our product being innovative for listeners and bringing new innovation for the advertisers as well as the music industry, so those are the things i focus on. fory: look, the challenge 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. you can tell pandora you want to hear this song. we play it here is the programming that happened after that is perfectly tailored to

you. in the context you are in. emily: pandora has always been that. chris: from a station experience. we had to do is we've altered to deliver that experience in an on-demand format, so if you want to create a playlist, for example, you give us a few songs, we will finish it for you. we can use the genome we have used to analyze music, the algorithms, and not just for radio, which we continue to be very strong on. we can use that same tech for the on-demand features and make those better than other services. emily: there have been a lot of leadership changes at pandora. how is the team weathering that, and what is the next phase? chris: we are excited about a lot of the new leaders in our team. roger lynch is doing a great job bringing in amazing experience. we have had a lot of new members on our board come in who really understand our business, the industry, and they are supportive. fantastic, it is because we are investing in innovation. they: i know that you are

product guy. i am curious what trend you are seeing in at sales, especially given the midterms coming up. the founder told us pandora can tell whether you are a democrat or republican, and that is something pandora can exploit as we go into 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 taste. 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, that helps us to wonderful targeting around our advertising. advertisers want to be able to tell a 121 story at scale. one-to-one story at scale. our service is really tailored to that. emily: chris phillips, thanks so much for dropping by. great to have you 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.

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>> it is 11:29 in hong kong. i am paul allen with the first would headlines. from facebook's data scandal is spreading. it is delaying the launch of products and redesigning the privacy settings on its network. connected home speakers with digital assistants and video text capability are being reviewed to ensure they make the correct trade-off regarding user data. the devices were to be previewed at facebook developer conference in may. these facebook or is -- facebook is no longer the punching bag. losing $53 billion in market cap on wednesday. the plunge came after president was said to be obsessed

with regulating the company. on december 29, he accused the company of squeezing low prices from the u.s. postal service to deliver packages. tesla plunged heavily for a second day as questions about a fatal crash involving a model x suv in california raised new doubts about the carmaker. the most in two years at the company tried to retrieve data from the vehicle. tesla has not said whether the car's autopilot system was engaged at the time. march has been brutal for tesla. the stock falling on all but five days. global news, 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. i am paul allen. this is bloomberg. >> i am sophie kamaruddin with a quick check on the markets. asian stocks looking mixed. the kospi fluctuating. we have a few corporate themes that play. more on that later. shares in shanghai has studied,

but hong kong stocks are very much under pressure. gains in tokyo have used a touch as the yen firms up. the yen regaining ground as japanese officials comment on u.s. trade actions. japanese finance minister taro aso saying the country will not be dragged into trade negotiation. he does not see a one-sided move. the dollar would rise if the rate differential reaches 3%. also with the highlight, the korean won has risen to a two-week high. the two koreas are preparing for summit.ming the dominant theme is the restructuring, which is sending most affiliated stocks lower. businessaul will see bo merging and it will improve the prospects for profitability and sales. cicada is the worst -- to cater is -- takeda is the worst

performer on the nikkei 225. a secondfighting for day. china telecom gaining ground after sales turned will us on the stock on valuations, saying it will be defensive in a volatile market. this is the look at markets here in asia. ♪ emily: this is "bloomberg technology." i am emily chang. first, he took aim at china's steel, now president trump is targeting tech. bs is said to be planning cur on 10 strategic industries, the so-called made in china 2025 initiative. here is peter navarro on the president's plan. peter: the focus of the tariffs chinaat is called the 2025 industries. thea brazenly has released 2025 plan and basically told the

rest of the world we are going to dominate every single emerging industry of the future, and therefore, your economies are not going to have any future. emily: to examine the impact on what this means for tech industries here and in china, i want to welcome someone intimately familiar with chinese technology and policy industries, adam siegel, at the council on foreign relations. there is so much speculation about who the winners and losers could be here. the reality is we do not really your but what is assessment of the possible impact? adam: i think you're right. we do not know, and when they named specific sectors they were trying to penalize, there were lots of people trying to lobby to be left out of the tariffs, and we are going to have a good sense of where you might fit on that supply chain and how you might be punished. again, who do you think the winners and the losers could be, essentially?

adam: they have been fairly they want to punish china in high tech, and iot, internet of devices, internet of automation and robotics. the made in china 2029 plan is to move china up the value chain from labor-intensive production to internet-based 3-d design, so if you are in any of those areas, it is possible you will tariffs.t up in the artificial intelligence, robotics, automation, those are areas i think would be likely targeted. emily: i wanted to ask you about a social intelligence 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 just how advanced china's efforts are there compared to the united states?

adam: the chinese really have three advantages. the first is just the size of the data. in the market. users, and that data is available to the big players. tencent, baidu, alibaba, jd.com. the other is the ability to use the data. arechinese privacy concerns not as high in the u.s. as they are in europe. sord, a government strategy, a very big push for 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 talent side, but they are clearly a fast competitor to the united states in this space. emily: we do have a bit of breaking news. is being david shulkin

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 pretty good questions on these issues on the tariffs. given the uncertainty of just who is in these jobs, how do you think that will affect how the policy actually plays out? it has certainly 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 trade deficit with i suspect, no matter who is in the positions right now, we will see consistency there. earlier, you showed us the quote from peter navarro, and he seems not to have positioned himself

to take the lead on these issues, and with the ustr 301 rp, i think there will be consistency in policy. emily: the administration is reportedly considering trying keep you eyes or influence chinese investment in u.s. tech sectors, and specifically, they have been talking about semiconductors and 5g. how do you expect that to play out? adam: as you noted, we have already seen that. president blocked the broadcom acquisition of qualcomm. we have seen leaks of documents that supposedly the government was thinking about nationalizing, the five g networks. the most likely move forward is a reform of the process, the committee on foreign investment in the united states, and it has the concern that some of waste china has been acquiring technology, they have been

either using minority positions were going after companies that are bankrupt or trying to buy ip. i think that process will be reformed. it is a bill that has pretty broad bipartisan support, and that will make it harder for the chinese to invest in a number of radical technologies. director ofsegal, the cyberspace policy of the council on foreign relations. thank you. as always, adam, for joining us on the show. softbank and the kingdom of saudi arabia are going all in on solar. signed some -- they understanding on the full or project. the venture would supply 200 gigawatts of solar energy to saudi arabia, chaplain the country's electricity supply by country'sipling the electricity supply by 2030. some think it would shave costs. tesla stock down after a fatal crash in california.

another stock to watch. general motors regaining its position as the most valuable u.s. automaker this week. tesla stocks continued to slide. this is bloomberg. ♪

emily: the new york auto show is taking place in the shadow of a recent fatal uber self driving car crash. now, while that is not something automakers from showcasing their elitist vehicles, it has some execs calling for federal and -- federal intervention. >> you need a federal standard.

that will come up with a solution for different states coming up with solutions. caution is the name of the game to read you're talking about people's lives. that is what we have always said, and we will continue to say. path forward for driverless cars is unclear, especially in the wake of two fatal crashes. the first in arizona and the other just last friday involving a tesla model x in california. tesla stock is tanking on this news. the company is working with authorities to retrieve the vehicle logs. the crash, which killed the driver of the car, adds to elon includingllenges, them not reaching their production targets for the model three sedan. i want to bring in max chatman in new york. 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 , andsignificant 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 a problem for this is they also have huge production sprint going on, trying to get as many model three is produced this year as possible. and to the extent that they are not able to hit those numbers and you have something like this that calls into question the companies 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, bloomberg has a model that is very impressive. we do not know how close it is. the model has been showing that tesla's production is likely ramping up towards the end of the quarter, so it is 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, you know, basically hundreds of thousands of cars a year, which is something no one has done with an electric car. i mean, investors are going to leaves.ng the tea whatever happens this next quarter, they will have to continue growing production just on a huge scale for the coming year, basically. emily: we do have a chart here that maps real-time negative news sentiment hitting tesla. g #btv 927. the red is negative. the green is positive. have been getting a lot of bad news lately, so not surprising the way this chart looks. tesla'syou make of response and the fact that they said they have never seen a crash like this before? they are working with government agencies. is that standard? max: yeah. theink what tesla is --

line they are trying to walk is they want to take this seriously, and we are seeing this with uber as well. they want to take this seriously, but they also want to leave open the possibility that, yes, even though there may have been a bad accident, a bad crash, maybe one in which the car did not perform as they had hoped, that their autopilot could still be better on average than a human behind the wheel. that was the argument that was made in the wake of the crash. person wasa tragically killed. it is sort of the general tension around autonomous driving in general. everyone, even people who believe in this industry, know that they are going to have bad things that are going to happen, and they helped the number of those bad things is less than what happens with humans behind the wheel. we arei wonder -- hearing that uber is not going to renew its license. arizona has taken uber self driving cars off the road.

i wonder if this will 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 way the roads are today? max: certainly. that is the reason we are seeing tesla stock take a hit. 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 is going to be how tesla is able to dominate the auto industry, and if it takes longer, even because the tech is not there or because regulators cannot get their heads around it and we as a society cannot come to terms with whatever compromises have to be made, that will slow this down and hurt companies like tesla that are betting on it. emily: max, our bloomberg businessweek commentor in new york. thank you for joining us today. coming up, adobe is known for products like photoshop.

they are looking to make a serious push into the ai. our serious conversation is next. this is bloomberg. ♪

emily: in deal news, a maker of phone headsets and accessories agrees to buy a polycon. for 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 makes consumers tick. the company is working to diversify after decades of relying on photoshop and other software. adobe systems will he adopted a cloud-based subscription model. now, the company's next goal is to turn the 35 gerald software maker into nai powerhouse. earlier, i spoke with the ceo

and asked how this compares to what his competitors are doing. shantanu: when you think of our enterprise strategy, what is unique and differentiated is that we think experiences is what distinguishes how companies are going to dustin was themselves. from our perspective, it starts at contact. we are well known for producing the world's best content. it is at the confluence of content and data where the next frontier of enabling enterprises to engage their customers is going to be. we 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. we are continuing to invest and remain the leader. emily: everyone is concerned about their personal data, especially in the wake of the facebook cambridge analytica

scandal. thesere the limits of high-end of targeted campaigns, and where are you drawing the line at adobe with respect to data privacy? shantanu: i think the two elements that need to be absolutely 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 enough, we are in an interesting position, because on the creative cloud, we have millions of subscribers, and 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 is how adobepr are stepping up and allowing them to engage with customers in a safe and trusted way. emily: do you think regulation needs to happen here, and if so,

how? shantanu: from my point of view, companies have a responsibility they need to step up to. i think customers will actually hold companies accountable and responsible. and with the space changing so fast, i think it is actually better that 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: i think, as long as you have the customer feel in want,l of what they 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 have this innate ability to want to be treated as specific individuals, so i think it is a balance. i think the adobe technology enables companies who want to deliver this personalized experience to accomplish that balance in a good way and keep

the trust that they need to with customers. emily: what potential the uc see in new formats like a rmb are -- do you see in ar and vr? shantanu: today, at the conference, we also announced a partnership with nvidia, in terms of having our artificial intelligence and their market leading gp use and ai work together. i think both companies would say 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 ar is where a lot of the action is. i think augmenting the smartphone is a great 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 have been covering how ai can be biased, especially when the teams building these systems are not diverse, and we are at the risk in an industry that is not very diverse, of rewriting that bias into some of the algorithms of the future. how do you at adobe combat that? the only way you combat that is a realization all across the company that when you are targeting a diverse set of customers, if the employee ace does not your that diverse -- mirror that diverse set of customers, prices might emerge. the way adobe continues to focus on it is ensuring we have the most diverse employee base as well as customer base. we have always been known as one of the best companies to work for. it is a core tenant to what adobe stands for. emily: looking phone, i would your creativehat business is 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 record revenue. the creative business is growing very fast because we think that creative -- it is the golden age of creativity. everyone wants to create a story whether you are a student or large enterprise engaging with customers. the marketing business had a very strong quarter. we have been moving the business to be a completely cloud based business. the revenue grew north of 20%. we are in an enviable position in that we are one of those unique companies that is growing topline incredibly well, and we have bottom line also growing well, at a very substantial margin, so we think both businesses will continue to grow in the future. emily: adobe ceo, shantanu narayen. the trump really talking continues. headlines that the president plans to tap marc rosen as executive director of the ims,

and to nominate david eisner as assistant treasury secretary. we will keep you posted right here on bloomberg television. thank you for watching. this is bloomberg. ♪ retail.

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