alisa: you're watching bloomberg technology. french president emmanuel macron and his wife bridget have arrived in the u.s. for a three-day official state visit. this is the first by any foreign leader during this administration. macron says security, trade and talks on multilateral issues are on the agenda. senator john valley is the third support mike- to nnalelly-senator do

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emily: this is "bloomberg technology." out of it reports --out of it -- alphabet reports strong numbers. who will look at the google parent's first quarter. we will look at jeff bezos's news plans to build a robot for your home. and we will set you up for the next big weekend tech as the social media giant track to keep -- try to keep wall street happy. earnings per share for google beating-- came in, analyst's estimates. in bobore i want to bring o'donnell.

and colin colburn. overall, our interpretation of added business going strong despite the privacy concerns. googlebig takeaway is looks pretty professional compared to some of its competitors, namely facebook. that has been pretty apparent in the way that google has not really done anything since the cambridge analytical scandal with facebook and sat back and said, this is good news for us because we look like a more professional tech company in the system. emily: i did get off the phone o and we alphabet ce asked her about future privacy regulations. what she had to say about gdr,

the new regulations -- gdpr, the new regulations coming out of europe. she said we are working on gdpr for the past months. i asked how this would impact the business. she said much of our ad business is reliant on keywords. we have committed to requirements. my interpretations of that is she is indicating it is not going to impact her business very much. what is your take? >> i think it will impact the business. search ads are different from the kind of ads we see drawn by facebook. clearly we will see some impact here. emily: how much? >> that is the big question. they are adult and how they handle things, but let's be honest, there was an interesting

story that the wall street journal wrote that google has more data on all of us than facebook. if we start to see privacy regulations come out, i think we will see google even more impacted with these regulations. their business model is more balanced so they may face more sanctions but not have such a financial hit as facebook might. legislation's a new that facebook and twitter said they will support about digital transparency in advertising. google has been quiet about this. why weren't you publicly supporting the yet and thesaid they are monitoring situation. what do you make of the fact

that google has not stated their position on the honest ads -- honest ads act. >> the majority of their ad revenue is from search advertising, which is quite different from a lot of the other advertising that is been in the headlines recently. social advertising, more of a display advertising type of ad format that targets people on what they know explicitly, whereas search advertising is revolving around keywords in terms of people putting into google. yes google does make the search results different and will target advertising based on logged in know about consumers. it goes back to they are waiting to see what comes of facebook and twitter for more of the social advertising scandal

perspective. emily: we are listening to the alphabet earnings call. starting.ll what do you make of the broader trends. she spoke to me about the other big bets, which are cloud, youtube and hardware. that is where they believe the investment is going to pay off. >> there are a number of different areas we can expect alphabet to grow their business. even waymo, it is not going revenue now that the way they are positioning waymo could be very effective as people run into certain issues. italy: we just got a quote from her on waymo. check out what she said. waymo we have achieved 5 million miles of jumping on city

streets, adding the latest million in three months. we announced a long time partnership with land rover and jaguar further fully electric vehicles. comprisingo is another portion of the other bets. you have waymo, google x and fiber, that is where all their bets are. it is a big one. >> right now verily is where bets,-in terms of actual i think waymo is the actual bet. they are not trying to be more of the semi autonomous driving. they say, we know people get distracted and we know the type of situations that are going to occur. we're going to wait until our technology can do the complete picture.

that is a philosophical difference from the big picture. is, i thinking we'll see on the computer side, then being able to drive ai services. you can imagine google branded ai services as yet another cloud computing service at on that she referred to a little bit on some of the call earlier. that there told me thely -- verily is driving operating revenue bets. $500 million, which may bring the waymo investments into account. nownder if it will be less that the pie is getting smaller. small compared to its main revenue driver. big forrtising is still

them. this quarter did not reflect a much of the cambridge analytical scandal with facebook. it will be interesting to see next quarter, are they growing the ad revenue pie even more as advertisers rethink, should i be placing my bed in a place like facebook or go to somewhere that looks better and more trustworthy in a google. they'll be interesting to look at in the coming quarters. emily: do you agree that facebook's loss could be google's gain? >> -- emily: youtube is facing some similar challenges about what kind of content advertisers are advertising against. they do not want to be associated with white

nationalism or terrorism. >> advertisers are realizing, if we want to reach people, how can we drive changes in those platforms. that is what they are trying to do with you too. that is what they're trying to do with facebook and google. the regulation issues become a big issue. how google interprets gdp are and will they bring it to the u.s.? gdpr and will they bring it to the u.s.? if they take gdpr standards as a worldwide standard, --that will play out not only in months but in quarters and tears. >> if there is anyone who is looming in the background it is amazon. amazon is a company that is really growing their advertising business very quietly and they have nothing to say because they did not break out advertising revenue at all in their statements but they might be the

one to gain even more than google does with facebook in mind. emily: google is in the lead and then there is . >> amos, they are small. it was an estimate, $2 billion that amazon captured in revenue. thatoke with gdp markets invested with amazon. offering the amazon advertising platform which is their ability to buy display advertising on amazon but also on sites off amazon that advertisers can use. that astart to look at a way to say, we can use amazon's behavioral and purchase data to target them in places other than amazon. you see a bank of america start

using amazon more of that they --more of a advertising platform. ly: because of a change in accounting standards, alphabet has to report it's on investment gains. that gainw valueas -- game was valued at $3.4 million. thank you so much. we will continue to bring you any headlines from this throughout the hour. another stock we are watching, the shares of facebook dipping in monday trading as the ceo of double line capital recommended shorting the social media giant. he pointed to an equity bubble, saying they are often popped at regulation.

headlines from the conference in new york. and pick was called the first viable candidate to -- bitcoin was called the first viable candidate to replace gold. coming up, details on amazon's top-secret plan. this is bloomberg. ♪

emily: amazon is working on another big bet. amazon has embarked on a top-secret plan to build a domestic robot. amazon hopes to put robots in employee's homes in the next

year. here is brad stone. so many questions, mobile they look like, what they do? how much easier will my life the? >> we do not know. we know there is a top-secret project called vesta inside last 126. that is the hardware division of siliconased here in valley in sunnyvale. you can think of it like a mobile alexa. amazon's voice-activated system. robot, this ise something the tech industry is injuring about for --has been dreaming about for decades. emily: what unique and does edgen 00 --what unique does amazon have? >> amazon has a lot of experience in robotics in

general. they have kiva, based in massachusetts and germany, working on this. they have access to technology self driving cars use it to navigate roads. emily: this could be an employee's homes by the end of the year. his amazon pretty far along? -- is amazon pretty far along? >> we have noticed they are hiring mechanical engineers and optical engineers. the project is ramping up now. i don't suspect we'll see anything on the market in 2018. the optimistic projection is sometime next year. emily: will this replace workers and jobs? >> in terms of the kiva robots, yes. but in terms of the consumer home solution, no. this will not replace anyone's

tasks. this will be something that follows you around selling amazon products. the numeral to go into rooms were you would not normally have an echo. right now they have the echo s how, which is this in a videoconferencing system. right now it has to be plugged into your counter. now imagine for it to folly around. emily: it sounds a little terrifying honestly. alexa has been learning a lot. amazon has been learning a lot the alexa about what we want and need. what is the role that alexa will play? >> it makes sense that this new vesta robot would have alexa on board. the technology needs to advance. alexa is not very conversational. the japanese electronics

companies have been thinking about this for a long time and they see it as a elder care contained or a way to solve the problem of an aging population in japan. you can see a version of alexa, when they make it more conversational, as being useful for the robot. emily: sometimes google home is better than alexa and is more informative. where are the other tech giants on home robots? >> that is a good question. in terms of the tech giants, we know google has google x. they have been playing with this stuff for years. apple has not really talked about robots. asia, sony, companies in they have been playing with robots. the $1800 dog that barks and play soccer. that is not the price of a real

dog these days. emily: look this pepper do? >> it is really a companion and greeter. emily: coming up, french president emmanuel macron comes to washington. we'll head to europe to discuss. this is bloomberg. ♪

emily: french president emmanuel macron arrived in washington monday for the first of three days of a security visit. this is president trump threatens to of end the global trading system with tariffs on china and europe as well. president macron has been building bridges with president trump and with u.s. technology companies. caroline hyde is standing by to

explain france's rather complicated relationship with technology. remind us what the stakes are. caroline: the six or high when it comes to emmanuel macron. high when it are comes to emmanuel macron. he was only elected just under a year ago and he was talking of redefining france in a business perspective, trying to make it seem innovative, a good place to come and set up shop if you are a startup. emmanuel macron has been trying to build that perspective, cut are ape, cut taxes if you wealthy individual and investing in startups. wayshad found innovative of bringing in more technology talent. emily: we are looking at live pictures of the white house now. president trump and the first

lady, french president emmanuel macron arriving and shaking hands with president trump ahead of this very important three-day visit. toin cirilli, we are going go to our chief washington correspondent who is standing by. walk us through the agenda of the next three days. >> president emmanuel macron meeting with president trump. he arrived earlier here at andrews air force base. he spoke to reporters and said he was looking forward to a series of trade meeting about a has of issues ranging from the iran nuclear deal as well the economic ties between france and the united states. he went to the blair house, a historic house located across the street and then arrived at the white house. here he will plant a tree with president trump that the white house says is signifying the relationship between france and the united states. then the world leaders will

board marine i, president trump's helicopter --the united states helicopter rather and they will tour the monument's before going to mount vernon where they will visit the great the greatpresident -- side of president george washington. then there is private one-to-one time, the discussions on the economic ties with iran are likely to come up. tomorrow the president will host a state dinner for president macron. the first state dinner of this administration. then on wednesday president macron will address a joint session of congress. from the administration's perspective, they are noting all the economic ties the two countries have. emily: french president emmanuel macron has just arrived at the white house and is speaking with

president trump. we'll bring you more headlines as we have them throughout the show. we're talking about twitter and facebook, their earnings. this is bloomberg. ♪

>> theresa may has suffered a third brexit defeat in a week. the house of lords supported an amendment for a government bill insuring most eu bills a written into british law after brexit. critical speaker said the government's proposed legislation is not principled, not justified and confused. oil surged on the escalating conflict in yemen. iranian fact rebels launched missile attacks.

this takes oil up to $69 and brent, $75. the global benchmark traded at the widest premium since january. the canadian foreign minister says the talks in washington are in an intensive phase. president trump again that he could make mexican immigration trade a condition, highlighting that a deal is still far from certain. on twitter the president said mexico must stop people heading into the u.s. and called for more funding fast. global news, 24 hours a day on air, and on tick tock on twitter. i'm paul allen. this is bloomberg. with a check on the markets, asian stocks are on the ase, the yen, trading near two month low.

attorney stocks, signaling that liquidity conditions will improve. the hang seng, crossing the first game in three weeks and tech stocks rebounding in hong kong. chipmakers are sliding across the region. reporting% after sales that missed estimates. benchmark treasuries approach 3%. let's check in on currencies. the rupiah rising to a three-month low. the hong kong dollar, losing some ground, while high ovvol rates climbing and we have a continued plummeting in shanghai. we're looking at a snapshot of the metals markets. asian stocks sliding across the regional index.

sydney, falling by the most on record. most shares after falling in kong., sorared in hong that's the market check in askia. emily: this is bloomberg technology. alphabet's first quarter, surged ind business the first quarter. they have so far surged off a privacy backlash. here we were talking about the cloud business. >> the cloud is continuing. it has great growth. we see that across the board. we see larger deals as well. we are seeing good synergies cloud. he's sweet and

areas, where we have done good acquisitions, they are driving synergies to cloud -- emily: for more, mark bregen, covering cloud for bloomberg. we are always looking for more information on the big bets google is investing in. do we know how much these are contributing to growth? mark: not much. we know over 40% of last quarter. atonement in hardware and youtube as key drivers of growth. unlike last quarter, there was nothing new this quarter to share. emily: talk to us about the highlights as you see them. it seems the ad business is still doing well, despite privacy concerns. we spoke with some analysts earlier, which suggested

facebook could feel the brunt of this. and that facebook's loss could be google's gain. mark: they had been speaking about the privacy regulations around europe. they made an interesting comment that google's business is primarily around search. he did not mention they had this multibillion-dollar display business similar to facebook. the takeaway for investors here was spending. capex has more than doubled. they talked about how it was $2.4 billion on spending this quarter, but they did mention they were investing in the cloud market this quarter. they will keep spending heavily on googl. been: has google just quietly avoiding the limelight and could they feel the brunt,

if regulation or more legislation moves forward? mark: yeah, i think that is what a lot of people are saying in d.c. any legislation will let the facebook legislation, but across the industry and will address gogle. -- address google. they have dealt with these issues longer than facebook. interest is to's make sure that the user still have faith in the product. it is likely they will have to deal with privacy issues, the same as facebook. emily: thank you for that update, mark bergen. tech insiders are getting ready for the two other big names reporting this week, facebook and twitter will be out with their numbers on wednesday. twitter at 8:00 a.m. easter and facebook after the closing bell. i want to bring up derek

and selina wang. will we see the impact from this scandal? >> people will be looking at changes facebook made earlier than march, causing problems of the -- just features of people issues people see on their site, such as fake news. should be able to his the impact of that this quarter. is that affecting engagement or ad revenue? we are not sure yet and there is another aspect of this, which is engagement. facebook users are spending less time on faith and that is a huge issue if it is not done by facebook by design. emily: numbers were also dragged

down. how much of a impact will we see from twitter by the ancillary privacy concerns? >> twitter has managed to stay out of the limelight because of the way the platform was ca created. they are already selling to third-party services and that was made public, but they are calling for the ceo to go to capitol hill and testify. be ahere is going to question regarding how they respond to the cambridge analytica scandal and how they will adjust their advertiser policies as a result of what happened to face book. however, they have been mostly been shielded from a lot of the issues that facebook faced and on one of the zuckerberg testimoniy days, we saw that the twitter shares increased. emily: facebook also increased

because mark zuckerberg seemed to be doing well and let's be honest, the questions were not that great. sarah, what are investors saying at this point. we spoke to mark mahaney, who says, he thinks this will be a blip. he decided that people will not leave because they cannot get that kind of a market anywhere else. >> many investors are in that same camp. it is a trust crisis. it is a problem with users thinking they cannot trust facebook with their data. facebook owns instagram and messenger, and all these other properties that can contribute to the bottom line. emily: facebook is the moneymaker. >> facebook is by far the moneymaker. the number one question we see from investors is, our people still coming to facebook? has there been a significant decrease in the men of time people spend on facebook, and

can they come out and say that was their decision, to try -- remember during the private or quarter, they saw onple spending fewer time facebook because they were trying to shield them from viral videos and fake news. what if this is not by facebook's design? that is what investors will be digging into. that is what advertisers cared about, the more time people spend there. the more time they spend there, the more information that surround the ads. emily: give us contacts regarding twitter, with user growth, engagement, and how this will play out as a result of the live streaming strategy. >> the idea was that they had a really rough last couple of years and now they are stabilizing. expected toxtens

accelerate. user growth is expected to continue accelerating. a lot of that is because of jack dorsey's emphasis on artificial intelligence. it is trying to figure the most important and relevant information to you. live streaming has been a great benefit to them and we see video advertising grow. advertisers love live streaming. it is a premium way to get their brand and messaging into a more natural environment. ti's more expensive, which is better for the twitter topline. they are also starting to find their own niche. facebook obviously has facebook watch. but twitter is trying to say, we have a different strategy. we are not trying to directly compete with tv. we are trying to be that second dream, which is able to provide an augmented experience. emily:all right, sarah frier,

selina wang, thank you for stopping by. we are watching boxshare surge the most in three shares. investors are interested in tapping into artificial intelligence to go long on the stock. boxsocial capital ceo said is incredibly cheap and undervalued, the biggest intraday increase since january of 2015. coming up, should facebook employ more people to stop dodgy ads? why the ad model might not be the brightest strategy, next. ♪

emily: mark zuckerberg is in hot water again. mark lewis says he is suing facebook for defamation over dozens of unauthorized advertisements that used images of him. facebook asked users to report the viimages. mark lewis said he did exactly that. the handling of pretty much all the ads is automated. tell us. more about this lawsuit. >> there was a great story on business week, which talked about a very dodgy company. they could use a image from shark tank, for example, to promote the products. they are suing facebook because he constantly reports these sorts of events and facebook says it takes them down,

sometimes it takes them down, but he says he has a team working on this, to report these advertisements. it does speak to the problems of the facebook model. they do not have a huge amount of headcount because they automate some much. emily: how has facebook responded? alex: it is a classic facebook response. they say, we do not allow misleading or false ads on the website, or on our platform. that is not true because they are on the platform. they are being slightly mealymouthed. they place the responsibility on the user to report the ads, rather than doing it themselves to the extent they probably should. emily: obviously facebook has been dealing with a lot here in the u.s. facebook executives will also be testifying in the u.k. this week. talk to us about what we are expecting.

alex: on thursday he will see the facebook cgo come to the house of parliament and he will answer questions for the digital media select committee. this is different from the way things work on capitol hill. days ofre than two questions. each member of the house will ofve four minutes questions. there are 12 members of the house select committee. they will be able to ask pointed follow-up questions and hopefully, will be executive to account, if he is slightly evasive, in the way zuckerberg was. emily: what is the expectation? is it new expectation. gdpr, the ball is rolling there. what could we see from european regulators as a result of this testimony? alex: this is more about what establishing what went wrong. we do not know if they will

take action. the select committee from the u.k., their job is to oversee the civil servants and make sure they are doing their jobs properly. what will be interesting is if european regulators see their job differently. is european commission investigating the use of shazam. they believe they give apple too much discretion on how they use music. we have seen how the european g roup look at pricing. access to data is a flight pivot there. it will be interesting to see how they use that approach for facebook and then of course, google. emily: alex webb, thank you for stopping by. we will be covering the hearings later this week. missed, silicon

valley sunday night, bloomberg technology made a cameo. here's a clip of what happened last night. >> welcome. today is a big day for you. one day before they announce the box three, you're coming out with a competing product. tell me what your new interne t is. >> the manure. emily: state for more silicon valley and maybe in other cameo. this is bloomberg. coming up, the speak to the man behind thewheel of startup.verless ♪

emily: johnny startup horizon

robotics is looking to dominate the market for driverless cars by 2030. they will close a new round of financing that will raise double hundred million u.s. dollars. in a interview, they said they will be ramping up the people abilities. >> we expect them to raise several hundred million u.s. dollars. we're going to have some strategy maneuvers. i think last you're probably you know, we had intel as our strategy master. and this year we will have not a globallayer, silicon player, which is not intel, to be part of our team. it will also has a major global and local members as our

masters. so, that's exciting. tom: how do you compete with the likes of nvidia? what gives you the edge? al we target the artifici intelligence for autonomous driving cars. that means we need to develop the technology, facilitate the technology, low power technology. we are trajectory planning. this will open the new space. it's a new space. everyone has an opportunity. we have a global level of competence for the new technology. we have a new challenging situation. we have a very full confidnece to deliver.

tom: facebook and alibaba are making moves into the chip sector. how much of an impact will that have? >> that is extremely popular. people are really pushing forward artificial intelligence. they need to think about this to really define and innovate the a.i. processors. that is great. facebook and alibaba to primary focus for the consumer business. the small speakers to the customers. tom: so, it's not a direct threat to you? >> no. focusingnot on our level. practice of., their

erecting of barriers it makes your business more compelling? >> i would say yes. the trump administration would money.em to insert more tom: do you see ourselves as being a key part of china's made in 2020 policy? >> i think our goal is to be the leader by 2025. 30 million cars in china, we will be the number one player in that space. just think about, by 2025, i think 70% of the cars will be equipped with iprocessors. and horizon robotics is going to

be the only player in china, right? i don't see any reason we cannot achieve the goal to be the market leader. emily: horizon robotics founder simply withking tom mackenzie. verizon is on the verge of taking the leading stake in india's ecommerce. they would purchase of two 80% of flipkart. earlier, they had considered a deal with amazon. that does it for this edition of bloomberg technology. we are live streaming on twitter. 2:00p.m. in new york and p.m. in san francisco. that is it for now. this is bloomberg. ♪

>> the u.s. 10 year yield is still hovering below the key figure. how much does the psychological level matter to markets? guy: can he convince president trump to keep america in the iranian nuclear deal? manus: oil is at the highest level since 2013. guy: and sales growth is a soaring. what could the latest figures