♪ emily: i'm emily chang. this is "the best of bloomberg technology." we bring you all of our top interviews from this week in tech. facebook crushes on revenue and continues to add new users. we will put the earnings report in focus after one of the most challenging reports of the biggest social media platform. alphabet embarks on a new spending spree to change its biggest rivals. we will break down the earnings report. tim cook faces face-to-face with president trump. details on the apple ceos trip to the white house and the potential impact on u.s. trade tension with china.

first to our lead, facebook shook off any whiff of the cambridge analytica scandal on wednesday when it reported first-quarter results. analysts across the board were impressed with the financial results. the stock rally. -- rallied. wall street seems to believe management has address privacy issues, which have had minimal impact on earnings so far. though we could see more of a dent in the quarters ahead. the social media giant's ad sales are near records and users keep flocking to the social network. we spoke to the ceo and bloomberg editor, and e market analyst on wednesday right after facebook reported. >> the revelations happened solely in the quarter that anything, any impact will likely happen in q2. this quarter's earnings would -- looked strong, the revenues look strong, user growth look strong. there is a lot of positive things that happened in the quarter. we are finding it hard to find much negative at this point.

emily: obviously, some remains to be seen, but there are some analysts who told us that he thinks this is a blip and today, he said facebook will continue to have long runway. david, would you agree? david: it is a tough thing to answer in the same language that mark would use. i do think that we will see advertisers essentially having no choice but to use facebook for the most exact targeting they can get anywhere on a global basis. that is a huge asset for the company. on the other hand, this company is in an absolutely unique new position where it's very legitimacy is being questioned by society and governments around the world. i do not think it is possible to predict how the company and sub -- ends up having to adapt to that, and what its profit and revenue implications could be, and advertising implications. i think we are entering a new

phase for the company, which impressively continues, and financially continues, but it is by no means out of the woods. this company is in a position that no company has ever been in before and it might get bad. emily: i sat down with sheryl sandberg to talk about the controversy. she said that they never have run the company for short-term profitability. yet, we are seeing these numbers. debra, what do you think the impact will be on the current quarter? how are you building your model? debra: we are watching user engagements really closely. it seems like facebook has always been able to increase the total monthly user base. we are watching for any sign that there is reduced engagement in terms of time spent on facebook, or the activity that people do there. we are also watching for any

signs that advertisers will have less access to targeting capabilities. we see facebook rolling back certain things that advertisers used to be able to do in terms of targeting. it remains to be seen whether advertisers will continue to use facebook in other ways and establish new ways of using it. those other things that we are paying attention to. i think david is right, this is a time when there is a lot oquestion about facebook. q2 will give us a lot more information. about how facebook is addressing some of these issues than we saw in today's earnings from q1. emily: mark zuckerberg is speaking on the call now. he started off addressing the controversy and it is clear he did not do enough. also promising to get things in order in time for the u.s. midterm elections. until now, he has couched it, saying it is an arms race. but that they would try to. he is saying they will be ready

for the u.s. midterm elections on the hopes that something like this will not happen again. talk a little bit about impending regulation and how all of that could impact facebook over the much longer-term. david: every government in the world is considering whether, or how they should regulate facebook. since they operate in somewhere around 190 countries, that is a huge overhead of management for them that they will have to deal with. i also think there is a bigger trend, which debra might have thoughts on. i think it is possible that consumer attitudes about targeting to them could be changing, at least in the developed countries. i don't think that there are a lot of signs in the country's growth that it is the greatest in the developing world. if that were to happen, it think

there are so many variables that are so hard to predict that it is lucky for facebook in a sense that they are so phenomenally profitable. they are a company in a position that no other has ever been. their profitability is like no other company has been. they have slightly under $12 billion in revenue, that is a phenomenal profitability. they have so many things about them that could not be said about any company before their scale, their global footprint. their impact on politics, their impact on the public square in every country. their impact on media. this is a very unprecedented position for a commercial company to be in and the world is finally realizing it, which means a lot of weird things could happen going forward and regulation is one of them. emily: zuckerberg's saying that we have a responsibility to move forward and wrinkles in new -- and build tools to bring

people together in new ways. he is reemphasizing the new focus on meaningful interactions, not just interaction. debra, do you think that change in focus will impact engagement? as they make this shift back towards focusing on personal updates rather than news updates, and have to make some potentially tough compromises? debra: yeah, absolutely. i think the focus on a gauge meant is a really strong when for facebook right now. i really believe that consumers have some concern about ad targeting and how their information is being used. about how facebook is targeting them and if they are sharing data about them with other people or other entities. those are questions consumers have. that could impact their likelihood to use facebook.

they might change their privacy settings. they might desire to share less information. they might think twice about the things they do on facebook. these are all things that could happen, we have not seen it yet. we saw surveys in the course of q1 that said, hey, consumers we are more serious and we are thinking about our privacy. the proof is going to be if people actually do make any changes. in situations in the past we have not seen a lot of people leaving facebook due to other concerns that the company has faced. emily: another stock we are watching, box shares surge the most in over three years. investors interested in tapping into artificial intelligence should go long on the stock. speaking up a conference in new -- at a conference in new york, they said box is incredibly cheap and undervalued. this is box's biggest increase since january, 2015.

coming up, we speak to twitter ceo and he opens up about everything from regulation to the president's twitter habits. 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: the earnings roundup continues. qualcomm reported its second-quarter with $5.23 billion, beating analyst estimates. it indicates china smartphone market is improving. ebay ranked in $2.58 billion in net revenue and shares of $.53. ebay's paypal the estimates hitting $3.7 billion. and eps of $.57, also beating estimates. and twitter over estimates for first-quarter sales as it is pushing live video and more personalized content start to

pay off. revenue jumped 21% to nearly $655 million and active users rose to 636 million. we caught up with twitter's chief financial officer about the results. >> we had a great quarter. we were thrilled with the outcome. double digits for the six quarter in a row. we accelerated our revenue growth. we grew 27% and we were thrilled with the outcome of the quarter. we were thrilled. it gives us the opportunity to go back to the areas where we have been interesting, which is -- investing which is the health , of the platform, audience and engagement growth, revenue products that the advertisers use and sales. we will be investing in all of that over the course of the year. the 15% this year as well and we are focused on those priorities. emily: despite this, shares are down, why do you think that is? look at thenot

stock one day from another. we are trying to build a twitter that everybody enjoys. we are trying to put up good result and we know the market will reflect it. emily: you did say it will be difficult to grow at the same rate in the second half of the year. why are the expectations more muted? >> we have a margin guidance for the second quarter and we want people to think about the full year and reminding them that the comps are harder in the second half of the year because we start to lap the business recovery that began in that third quarter last year. we will talk about the second half of the year when we get there. we had advertiser sentiment omentum, the pace and feeling on the floor at twitter feels so much better than when i started eight months ago. we feel good about things. emily: everybody is wondering how the concerns about data privacy and regulation and how it will impact you with tighter privacy restrictions and how it will impact twitters model? -- twitter's model? ned: it is different than how it will affect us in a revenue

perspective. one of the great things about our business is it tends to be brand focused. brand advertising may be less impacting been other types of advertising. we rolled out our new privacy policy around the world yesterday and we view privacy as a right that we all have. it is important for us to communicate clearly with our users about how their data will be used on twitter. just remind you, everything that happens on twitter is public. that is one of the great things about the platform. the api's that we give people access to are just helping people organize the data. there is not anything in there that you cannot do yourself. emily: are advertisers leaving facebook and spending more time on twitter? ned: i don't know what is happening. what i could tell you is it feels like it is tied to the hard work we are putting into the platform and our relationship with advertisers. emily: mark zuckerberg has expressed support for more

regulations. is that something twitter is for? and if so, what kind? ned: we are definitely open to regulation. a lot of things that people are talking about is about making sure people know how their data is used. they are about making sure that we are hearing people. -- clear with people. those are things we believe in in twitter. emily: will twitter testify again if invited to congress? ned: we are always open a stretch open to conversations that can help figure out the best way to help users understand how their data is used. emily: let's talk about what is happening around the world. twitter's international growth was strong but it was weaker domestically. how long will that balance continue? ned: the thing about how our business started in the united states and grew from there, we have a larger piece of business in the u.s. that we do internationally. there are more net new opportunities, such as the china export market or some of the spike that we saw in brazil. international at 53%. the u.s., when you back out of

business that we shut down, it grew 9%. we feel really good about the momentum in the united states. it is growing off of a larger basin has turned slower than the rest of the business has. emily: do you have a game plan if president trump stops tweeting? ned: we think about our platform as so much more than any one user. there is so much great stuff happening on the platform. a place for people to find out what is happening in the world and be a part of that conversation. we are thrilled it is a place where people go to break news whether it is politics or sports. i noticed as a san franciscan, just came on twitter after the giants game. we see new people on twitter for the first time and we are thrilled it is the place so much is happening. emily: is there a way to quantify how much traffic trump is driving, whether people following him what a conversation around it?

ned: at the same time that he has been more active, so much has happened on the platform, it is hard to unpack any one event or user. we have made so many improvements to the product. we have done so much to make the experience better, whether it is about on boarding or a timeline experience, or the notifications that people get, or more is topics driven approach. emily: we as journalists always hear chatter about twitter getting bought. whether it is real or rumor, how should we digest that? ned: we think about the opportunity in front of us and are excited about it. we feel there is so much to do to prosecute in front of us. everyone in the world ought to be able to benefit from what's happening on twitter. we have 336 million monthly active users. we have a lot of work to do. that is what we go to work thinking about. emily: so no plan to change being an independent company? ned: we are a public company. our board has a fiduciary right. when we are thinking about what gets us excited to be at work every day, we think about the

opportunity to get twitter in everybody's hands. emily: on the call, jack said "we are not a social network." what does he mean by that? ned: we are in interest network. people may care about what certain people are saying about certain topics, but people often go because they want to find out what is happening, or what happened in the stock market. they want to know what is happening around the particular thing that is important to them. although it is social in nature, it is not about the people to whom you are connected, it is about the topics and even to care about. emily: that was some of my conversation with twitter cfo. still ahead, we stay on the air and breakdown amazon. have the presidents attack had any impact on the e-commerce giant? that story is next. this is bloomberg. ♪

♪ emily: amazon wants in on your car. they can now unlock and deliver packages to your car if you own a chevrolet, buick or cadillac. thanks to a new partnership. the vehicles must be a 2015 model year or newer and have an active service plan. the new services now available to all amazon prime members through amazon key app. if the u.s. postal service raises rates, amazon profits could be cut by $1.3 billion. that is just more than 1% of its annual earnings. president trump claims that the post office loses money in its contract with amazon. the post office says it makes money on the amazon deal and is legally prohibited from charging shippers less than its delivery cost. speaking of amazon, the tech giant released first-quarter results thursday.

we worked on in numbers with bloomberg tech brad stone. >> first of all, i have the same feeling that i did on tuesday with facebook, which is, what was all the noise about? the environment around amazon captured by president trump's tweet, the post office and none of that matters today. it is a beat on all dimensions. amazon is growing quickly. they added 60% increase in hiring year-over-year and yet 6 billion net profit, unheard of at amazon. and for a couple reasons. one, the very profitable parts of the business and the other category, which is advertising are increasing. that north american retail business is going up. also, probably because of the one hundred million prime members which jeff bezos emphasized. emily: so the tweets from president trump didn't have much of an impact, but shipping costs did rise 38%. lots of noise about the u.s. postal service and whether they might raise prices as a result

of some of the things that president trump has been dumping on. when you take a look at these numbers, do you see any red flags, any weakness? >> it is kind of the opposite right now. as brad was saying, you are seeing this massive, multiplied scale that the company is experiencing. you will see shipping cost rise because that is related to the top line and the amount of business they are doing on the consumer and parts of the commercial side where they do business. to me, in his quote where he talks about the significant lead they have, and how they had little competition for the last seven years, what they are doing as they are adding services to aws. that translate into, not only -- translates into, not only revenue, but significant profits. it is a subscription business on a subscription business. we are seeing that multiplied scale on a huge increase. almost 50% increase.

emily: i should mention that microsoft is also reporting today. microsoft is also sells strong. aws is far in the lead. are companies like microsoft and google a threat, or is the pie increasing? >> the pie is increasing. aws was accelerating in the 44% last quarter. it is just that this is a win that is propelling all these companies forward. the companies that are suffering are the ones that were not as early in the clouds. emily: what about younger businesses like grocery delivery and whole foods like alexa and amazon echo. these are small businesses now, but how big could they become? they could become quite large. we are going to see very significant growth in alexa

because -- and again, that will be had, double digit growth for a long time. they are trying to build the platform for the foreseeable future. they have a significant lead over, guess what, google. a very significant lead over microsoft and apple in that platform. what they want to do is start connecting these services together. you will see a huge push towards combining the power of aws to alexa, platform to platform to be able to connect and intelligently control more devices in no life. -- in your life. whole foods, on the other hand, is a fascinating acquisition. we are seeing the benefit of that acquisition now in terms of a year later. i think we have just begun to see them unlock some of the power there in terms of how you can combine the aws platform to the alexa platform, to the whole foods experience. that party is just getting started. emily: let's talk about advertising. the other revenue doubled to more than $2 billion.

that is in part because of amazon's advertising business. some analysts are excited about, thinking that it could surpass facebook and rival google. what do think about that? crawford: you don't want to get too far ahead on your expectations. i think people are probably really, really excited because they really have not known what to make about this business and how fast to model it going forward. clearly, the statement today is that this business is a real business and it is accelerating and it can accelerate based on the platforms that amazon is building. emily: on the sidelines of this earnings call they have announced that the nfl is renewing its agreement with amazon prime video. brad: right. this is a part of the business that does not bring in revenue. they say there is a connection to prime and retention. there are clearly concerned about netflix, which is on its

own runaway growth streak. they are investing heavily in new shows. it is multimillion to do that lord of the rings series. they are renewing some of their more high profile shows. emily: this is a part of amazon that has been in turmoil. >> i would argue that they have not figured it out yet, certainly not in the way netflix has. it is remarkable that this is a company that shows 1.6 billion that income even though they are spending like a drunk sailor in hollywood. emily: thanks to bloomberg technology's brad stone and crawford del pratt of idc there. ahead, another big tech company out. alphabet reported on monday showing how much google is investing in the cloud and home devices and hoping to catch up with amazon and apple. a reminder, all episodes of "bloomberg technology" are livestreaming on twitter.

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♪ emily: welcome back to the best of bloomberg technology. i'm emily chang. google's parent company reported sales of $24.9 billion, topping estimates by it beat highest $600 million. estimates. paid clicks jumping 55%. capital expenditures for the tech giant tripled from $2.4 billion to $7.7 billion. the results also came with a clear message to wall street. the company is embarking on a new spending binge. we spoke with the tech research president rob o'donnell and forrester research colin hoberman on monday for more. >> i think the real big takeaway here is that google looks pretty

professional compared to some of its competitors, namely facebook. i think that's been pretty apparent and the way google has sort of not really said anything recently since the cambridge analytica scandal with facebook. they sat back and said, this is all good news for us because we are the ones that kind of look like the big guys, the more professional tech company in this instance. emily: i did just get off the phone call with alphabet cfo and we asked her about future privacy regulations, how this could impact the business. you know, what she had to say about gdpr, the new regulations in europe. she said we have been working on gdpr for months, we have a strong privacy program and we are building on it. we feel well-prepared to meet these requirements. i asked aesthetically how this would impact the business and she didn't give a straight answer.

she said most of our ad business is related to search which relates from keywords. we have been committed to requirements. my interpretation of that is that she's indicating it will not impact business very much. what is your take? >> i think it will impact business, but to be fair, search ads are different than the kinds of ads we have seen drawn by facebook. there is a difference. i will give them that much. but i -- clearly we are going to see impact here. emily: how much? >> that is of course the big question mark is how much. and they are more adult like, in the manner with which they handle things, but let's be honest, there was an interesting story in the wall street journal that chris mims wrote that google has more data on all of us than facebook. so yes, they have been conveniently ignoring some of these issues, but as if we start to see privacy regulations come out, i think we could see google even more impacted by those regulations. now their business model is more

balanced, so in that regard so they may face more sanctions and not have as big a financial hit as perhaps facebook might. emily: interestingly i asked her about the new legislation facebook and twitter said they would support around political transparency in digital advertising. google has been notably silent and some lawmakers have noticed this and called on google to state their position. i did ask her why aren't you , publicly supporting this yet, and she says we are continuing monitor for emerging threats and put in safeguards. she talked about the transparency. but what do you make of the fact that google hasn't stated their position on the honest ads act and that lawmakers are asking? >> yeah, i think google has been quiet, and it goes back to what bob was saying. the majority of their ad revenue is from search advertising, which is quite different from a lot of the other ad that have

been and headlines. social advertising is more of a display advertising ad format that targets people based on what they know explicitly about different customers, different customer segments, whereas search advertising is revolving around keywords and terms people are putting into google. yes, google does make the search results different and will target advertising based on stuff that they know about logged in consumers, but it is quite different. so i think that's part of the reason google has been hesitant to say anything. i think it also goes back to, they are sort of 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 right now. the q and a portion of the call is starting. the ceo of google also on that call. what do you make on sort of the broader trends you are seeing here? she spoke to me about the big

bets which are cloud, youtube, and hardware. that is really where they are investing and where they believe the investment is going to pay off. >> i think they are right. there is a number of areas we can expect to see alphabet grow their business. obviously -- even waymo, it's not generating revenue now, but the way they are positioning waymo is interesting and could be very effective as people like tesla run into certain issues. emily: speaking of that actually, we just got a quote on waymo, i will play and then we will follow that up. take a listen to what she said about the self-driving car unit. >> at waymo, we have achieved 5 million miles of driving on city streets, adding the latest million in just three months. we also announced a long-term partnership with jaguar, land rover for their fully electric high pace vehicles. emily: now waymo is really comprising a bigger portion of the bets because they have moved

nest under the google umbrella or it now you have waymo and that's where they all are at the bets at this point, and it is a big one. >> i think it is. verily is the revenue they are getting a little bit from fiber, but longer-term in terms of actual bets, waymo is the most important bet, and philosophically, they are not trying to do more of the semiautonomous driving. they are trying to say, look. we know people get distracted and we know the situation that occur are going to occur and we are going to wait until the technology can do that complete picture. i think that is a very interesting philosophical difference from some of the other vendors. bottom line, that will be a good bet for them in the long run. the other thing i think we will see on the compute side, they will be able to drive ai what ibmkind of like does with watson. google branded services is yet another cloud service add-on that she referred to a little

bit and some of the comments on the call earlier. emily: ruth told me that verily and fiber are driving only $150 million at this point but the operating is $571 million, which may bring that google accident and waymo investment into account. there has always been so much focus on these other bets since google started bringing them out, but i wonder if that will be less and less now that the pie is essentially getting smaller. >> yeah, you know, i think google does do with a lot less on some of these bets, merely -- primarily because it's so small compared to its main revenue driver. the advertising revenue is pretty high margin for them. they are the dominator there, and it will be interesting to see. this quarter didn't reflect too much of the scandal, of the cambridge analytica scandal with facebook since there was only two weeks we were able to look at. it will be interesting to see next quarter. you know are they growing the asd revenue pie even more

advertisers think, should they be placing bets in facebook or go someplace that looks better to me and a little bit more trustworthy than google? that will be interesting to look at in the coming quarters. emily: google is in the lead, then it is facebook. amazon is a very -- >> they are small. estimates are $2 billion last year. what amazon captured in advertising revenue, but we spoke with a number of cpg marketers listing their products on amazon and are increasing their spend on amazon as much as 60% year over year. and they are also offering amazon advertising platform, which is their demand-side that the platform. their ability to provide display advertising on amazon and sites off amazon advertisers can use. basically a competitor to google double-click. and as people look at that as a n interesting way to say, we can use amazon's behavioral and

purchase data they have on consumers to target them in other places outside of just amazon, you start to see people like bmw or bank of america, who can't even list products on amazon obviously today, use amazon more as an advertising platform. this week spotify introduced a free version that targets 1.5 billion youtube users. the offering rolls out ahead of youtube's new subscription music product. sweden's spotify already operates the biggest music downloader in the world. it is expanding what it offers for free to reach a targeted 1.5 million users. coming up apple ceo tim cook meets one-on-one with donald trump after a state dinner. we tell you what we discussed -- what was discussed behind closed doors. and the man behind the wheel at the chinese startup robotics, looking to dominate the market for driverless cars in 2030. this is bloomberg. ♪

♪ emily: more headlines from amazon this week. the company is working on yet another big bet robots for , the home. according to people familiar with the matter, amazon has embarked on a top-secret plan to build a domestic robot. amazon hopes to begin putting the robot and employee homes by the end of the year. a rollout for consumers in 2019 could follow. and the e-commerce giant is now promising to entertain ford -- entertain board children. it's releasing a new focus skills for alexa digital assistant. plus there will be an echodot speaker designed for children. a magic word feature will make it say please when asking alexa questions.

apple ceo tim cook made his way to the oval office to meet with president trump. the head-to-head comes amid the trade war between beijing. trump has been vocal that he would get apple to build their computers in this country instead of other countries. and before the meeting, he tweeted, looking forward to my meeting with tim cook from apple. we will be talking about many things, including how u.s. has been treated unfairly for many years on trade. bloomberg's white house editor brought us all the details. >> we know the topic of what was discussed, and we know what both of them think about that. it was about trade and of coarse, for apple it is very important to have open trade especially with asia and president trump wants a more limited so-called fair trade. but the white house and apple haven't told us much about what was said. we know that cook met with the president in the oval office, and we know he also met with the president's chief economic advisor, larry kudlow, and he

also had a meeting in the office of the u.s. trade representative. clearly very focused on trade. emily: obviously the president has decided to pursuit tariffs on chinese goods, which could disproportionately hurt apple given how many of its products are manufactured in china. do you think there is any chance that tim cook could influence the president in the opposite direction? >> i think there's a real chance that it has some influence on the president, maybe not enough to persuade him absent other things, but he does listen to and admire successful ceo's, maybe more so than academics or other politicians. so he does value those people's opinions, and he has had a conversation with cook before and in fact, after the tax break, which cook praised and which apple benefited enormously from, apple talked about building more facilities in the

u.s. and having a fourth headquarters here in a new location in the united states. and trump was very happy with that and sort of repeated that and praised that. so there is a rapport there, at least a working relationship, and this category a person, the high-powered ceo, is someone trump admires. maybe not enough to stop him, though. emily: bloomberg's mike dorning there. chinese startup horizon robotics is looking to dominate the market for driverless cars like -- cars by 2030. they are about to close a new round of financing that will raise $700 million. in an exclusive interview the , founder and ceo told bloomberg the money will be spent on ramping up its research capabilities. take a listen. >> we expected to raise several hundred millions u.s. dollar. we can have, we are going to have some new strategy masters. i think last year, we had intel

as our strategy master. not --s year we can have another major player, semiconductor global player which is not intel to be part of our team. we also going to have some major leading oem's, mobile and local, -- global and local, as our masters. right, so that's very exciting. yeah. paul: how do you compete with the likes of nvidia or mobileye? what gives you the edge? >> we actually targeted a new space, which is the artificial intelligence for autonomous driving cars. so that means we need to develop the technology, facilitating the competition, very efficient competition low power , consumption all the way to decision-making, like trajectory

planning. this is a totally open new space. in this new space, everyone has opportunity. now we have like a global level of competence for technology and then we have a really really , challenging traffic situation. we have massive markets. right, i think putting all those three sectors together, we have a very full confidence to deliver you know the cutting edge of technology. tom: facebook, alibaba, they are also making moves into the chips sector. how much of an impact is that likely to have? >> well that's extremely , positive. that means i think people really push forward artificial intelligence. they need to think about to really define and innovate the ai processors. i think that's great. that's great. i think alibaba and facebook, their primary focus is for the consumer to handle business.

right, like a cell in the speakers, like the smart speakers to the customers. tom: so this stage is not a direct threat to you? >> no, we are doing something like a moonshot, right? and i think they are not doing the same thing, that level. so we are not competing. tom: whether or not the u.s. decision to erect barriers to its tech assets makes your business proposition more compelling. >> i would say probably in reality, yes, because trump administration's decision probably will urge the china government to spend more money on the type of core technology around the business. tom: do you see yourself as being a key part of china's made in china 2025 strategy? >> i think what is essential for us is to be the leader by 2025.

you know, 30 million cars in china equipped with our processors. and we are going to be the number one player in that space. just think about, by 2025, i think the most of the cars, 70% , of the cars, will be equipped with ai processors. and horizon robotics is going to be the only player in china, right? i don't see any reason we don't we cannot achieve the goal to be , the market leader. emily: horizon robotics founder and ceo yu kai speaking exclusively to tom mackenzie in beijing. coming up, uber is out with its second annual diversity report. but was there enough progress made to keep up with some of the other silicon valley giants? we will talk about it next. and in case you missed hbo's silicon valley last bloomberg

sunday, technology made a little cameo with two of the stars of the show. here's a clip from episode five. >> welcome. today's a big day for you. one day before hula announces their box three, you are coming out with a competing product. tell me what your new internet is and why they should be afraid of it? >> manure? emily: spoken like a true coo. don't miss the rest of silicon valley on hbo this season. this is bloomberg. ♪

♪ emily: didi chuxing has replaced the ceo of the brazilian ride-hailing app with one of its executives. this according to a report in recode. tony qiu will take it on the startup. he was previously a general manager at didi and also ran the luxury business. didi also bought 99 taxis in january, gaining a foothold in

latin america and broadened its global war with uber. meantime uber has increased the , number of women working in tech roles by 2.5 percentage points in the last year. but the company still lags behind its peers in silicon valley. bloomberg look at the reported diversity last year after an account of sexual harassment written by former software engineer susan fowler rocked the industry and the company, in its second annual report, bloomberg said 18% of the employees are women globally. eric newcomer joined with more. reporter: i mean, i think 2.5% is not a lot, but this guy started in september. he has basically been ceo for seven months. it will probably take some time to really turn things around. interestingly, you know a lot of , progress was made outside the u.s. and canada. the u.s. and canada actually somewhat, becoming more male while other regions

became more. emily: what about other minorities? reporter: i think african americans are about 8% of employees in the u.s. where they really track it. clearly there is more work to be done, and i think the growth was similarly small in terms of improvement. emily: what are you hearing from inside the company about the cultural transformation? reporter: i think people are more optimistic generally and think the company is taking steps. i think we haven't seen sort of a close look at their diversity work since he took over. he hired the chief of diversity inclusion, the reports into the the old human resources had. so the company says it is working, but we will still sort of have to see how it pans out. emily: now what do we know about , market shares? because we know when we spoke with john zimmer, the president

of lyft, and they have been gaining some significant market share on uber in certain markets. is that, i wonder if that, the needle is turning back little bit. reporter: i don't think we have seen that yet. i think uber will be shouting from the rooftops if there was a real sort of shift backwards. lyft's been talking about 40% to 50% in some markets. obviously uber remains the dominant player in the united states and is a global player where lyft is focused in the u.s. and i think toronto. great --as definitely gained ground and i think is holding on to it. emily: speaking of ride-hailing on the other side of the pond, chinese rate -- ride-hailing service didi talks about what could happen this year. the wall street journal says it could be valued at $80 billion, which is more than uber. according to the journal of the company they are considering , other ways of raising capital, including selling convertible bonds. what do we know? reporter: yeah, i mean a lot of

these valuations, as we learned, are on paper until something real happens, and it's been a situation where companies, especially didi from softbank, have raised a lot of money on the private markets. so i think we will just have to see. uber says if they want to go public towards the end of next year, and we reported that they are sort of looking at, as their -- looking at a new chief financial officer, which would be a key piece to going public. all these companies have gotten so big, they are certainly talking about ipo's, so it's credible. but you know what the actual , value is and whether didi goes this year, i don't know. we'll see. emily: they have been upfront about uber targeting an ipo somewhere in the 2019 range. does it matter if didi gets to market first? reporter: you know there's , always a positioning story. this was like the box, dropbox

composition. i think it will be relevant. uber owns a significant stake in didi and also the markets value ridesharing, that's good news for uber. they are largely competing in different markets. so i think if anything, the question is, who is the better marketer? would it be uber or didi? but one doing well is probably going to be good for the other. emily: eric newcomer there. and that does it for this edition of the best of bloomberg technology. be sure to tune in this coming week for a busy week. we are going to be live from the milken institute 21st global conference to kick off the week with a fantastic guest lineup. in addition, we will hear from mark zuckerberg tuesday and bring you coverage of apple earnings and tesla on tuesday and wednesday. tune in every day 5:00 new york, 2:00 san francisco, and remember, all episodes of bloomberg technology are now

live streaming on twitter. that's all for now. this is bloomberg. ♪ this wi-fi is fast.

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♪ paul: dialing up a deal, sprint ,nd t-mobile agreed to merge ending years of will they or won't they talks. betty: aiming to shakeup american wireless through innovation and playing good old deals. paul: wilbur ross says the u.s. will exempt some allies from the steel and aluminum tariffs, but not all. the announcement on tuesday. betty: north korea will allow observers to see the decommissioning of its nuclear sites.