emily: i am emily chang in san francisco. this is "bloomberg technology." coming up in the next 2019 could hour, be the year of silicon valley's most anticipated ipos uber to lyft. this fund takes and $9 billion loan from the same bank behind its japanese wireless ipo. plus, a tesla tear down. we talked to the company that tore apart a model three. what flaws they say the electric car has and how it could hurt the company. and, canada legalizes marijuana.

how the nation's largest grower will compete with companies joining the green rush. first, to our top story. 2019 is shaping up to be a big year for ipos. softbank has lined up commitments for a loan of about $9 billion for its giant vision fund. bloomberg learned the banks providing this money include the underwriters of softbank's riderless business ipo, among them goldman sachs and nomura. day after news broke we could see listings from on-demand delivery service post made as well as rivals uber and lyft. to discuss, we have elizabeth and selina wang. i want to start with you. first of all, explain this loan that softbank is getting from the ipo forks doing the wireless business. selina: we reported they have received commitments of a $9 billion loan for his vision fund

, which as we know, needs more and more capital to fuel enormous events and technology they are making. these are coming from the same banks underwriting the ipo of the wireless unit. it is not entirely unusual for companies to take banks that have worked with them on past deals for ipos. -- reported that masayoshi son was courting banks. besweeten the deal, could $27 billion, we would like for you to loan to another part of the softbank empire. what is unusual in this case is that the loan would not be given to the same part of the business that the banks would be underwriting. it would be given to a different unit and hurley, which would be the vision fund. this ipo is a big deal for softbank. it means masayoshi son will be able to separate the dealmaking aspect, the vision fund, with the operational telecom unit. emily: what do you make of the unusual nature of this loan in

the context of what is happening with saudi arabia, and the fact that the saudi government continues to deny the allegations connected to the murder of this journalist. at the same time, softbank's vision fund has taken a lot of money from the saudi government. elizabeth: we had already seen the effect on softbank shares over the last couple of days from the situation, but this has been going on behind the scenes for a long time. this is something masayoshi son has been talking to the banks about for a while. we reported last week that they have chosen those banks who would work on the deal, they had been talking to them for a while. this is part of that process. i think it is quite separate. it would be interesting to see how that plays out for the next couple of months. at the moment, the focus is on the ipo. emily: have we gotten any word from softbank about their response to this international scandal and how it could affect them? selina: right now there is no on the record comment.

i think what we can glean is that they are likely still in this wait and see mode. they want to see the full results of this case, although it is looking increasingly bleak and dark, before they release any statement. it's possible they would want them to cancel the event and hurley. they may want them to postpone the event. we have also been speaking to portfolio companies. uber's ceo has already pulled out. other startups are considering moving the conference as well. -- areg themselves from considering removing themselves from the conference itself as well. the perspective of the attendees. they don't want to be associated with a regime coming under so much pressure for a horrible thing. emily: uber again in an awkward position, especially given that they have taken billions of dollars in investment from softbank. in the meantime, we got new information about uber's

potentially ipo, potentially next year, potentially at eight $100 billion valuation, twice as much as what it expected in that round. elizabeth: it is not unusual for the first numbers to be large. snap ipo, thethe early valuations were $40 billion, but it went closer to $20 billion. we should think of these as early numbers as the banks pitch for this work and i want to win it. emily: talk to us about what we know about the uber and lyft offerings how we expect those to , proceed, potentially one after another or at the same time. selina: they are expected to be listed next year and it will be a race to see who goes first. who goes first will set the market expectation, the precedent for the following listing. uber is several times larger, but lyft has capitalized on the

struggles of uber increasing market share as a result of those struggles. these valuations are incredibly lush and should be taken with a grain of salt. we saw several listings recently including xiaomi and snapchat that have ended their listing at less than half and expectations months before they were sold to investors. the valuation for uber is expected to be at $120 billion , it is really coming down to what the investors make of the underlying financials of uber and lyft. both, still very unprofitable. emily: elizabeth, is there any precedent for two companies that have almost exactly the same business in many respects -- uber is much bigger and more diverse -- any precedent for two companies to go public at exactly the same time? elizabeth: there is. you have to get back to 2014 to see it. we had alibaba and jd.com go out

at the gates within months of each other. there, peopleis are looking to it to see the reaction. i think from the private market valuations, there will be investor appetite for both. what can youeth, tell us about a potential postmates offering? elizabeth: a much smaller company. sort of semi-connected, if you think about food delivery in the cars anddth of his technology happening there, but it will go into a crowded market. we are talking about the first half of 2019 here, which is the same timeline we are seeing for yft that we are expecting in april. it will be a crowded market. emily: elizabeth and selina wang, we will be charging it. thank you both.

a lawsuit accuses facebook of hiding inflated ad metrics. it misled claim that advertisers about the average time users spent doing video clips and then lied about it. facebook says the lawsuit is without merit. still ahead, credit co-founder alexis ohanian here with a company he's backing with the hope it can change the way your data is shared and stored. you don't want to miss it. if you like bloomberg news, check us out on the radio. listen on the bloomberg app, bloomberg.com, and, in the u.s., sirius xm. this is bloomberg. ♪

emily: with increasing concerns about data privacy, apple is taking another step towards transparency. the cupertino-based tech giant will now allow users to download

a copy of all the data they have stored with the company from a single portal. apple has previously rolled out this functionality in europe following the eu's new general data protection regulation rule. this will allow u.s. users to download data from their contacts, calendar, and previous apple repairs. a new privacy page will be rolled out detailing what data the company collapse. and seeing what data companies collect about you isn't enough, there is another option. in an era where you hear about another data breach, imagine if could -- if you could own your own data and house it on your own server. elm aims tot how -- h do. simple devices you can do to contact videos and photos and host your own email and calendar. today, alexis haney and of reddit fame, now it initialized

andtal, is backing helm describes it as the first company he has seen giving consumer data back to the consumer. thank you for stopping by. >> thank you. emily: you are a full-time the sena. this is the biggest check you've ever written. i, wecofounder gary and have always been long on wanting to work with founders who are seeing the future before we as investors can. they are obsessed with solving real problems. we have never seen a team as strong as gary's. tackle problem with brilliant software and hardware that is easy to use and look at. andy: so how does helm work how different is it from dropbox or icloud? >> helm is a personal service that goes in your home. it is easy to use. you can set it up in three minutes. from servicest

like dropbox in that those types of services actually take your data and host it in the cloud. with helm, you have all the data on a server in your house. emily: does that mean helm has my data. ? >> we have the company know little about the customers. we don't have access to data on the server. emily: is it encrypted? >> yes, everything is encrypted. only the user has access to the keys. emily: so you have been using the service for a while. what is the experience like an d how does it differ than what else is out there? alexis: there was no alternative aside from having to roll it yourself to install a server in your own home. there are plenty of hobbyists and hard-core techies that would go through the trouble of installing a server but it is a lot of work and upkeep. what was so appealing is that they had the vision three years ago to make something that was so user-friendly, i could hand it to my dad and he could set it up and know he was secure. emily: it is not cheap.

$499 for the server and every year you pay -- >> $99 year after the first year. emily: so how can this protect you on a practical level if you still want to use facebook or gmail? >> we look at your email account as the root of your online identity. it is the account you use to manage all of the other online account in your life. it is important to take every step you can to protect that account and own that data. this is a way people's lives -- and accounts have been turned upside down. if someone can get into your you email account, they can likely get into your bank account, social media, and even health records. this is the first step to take back ownership of your data. emily: is it inconvenient, though? alexis: it is one extra step. i think one of the signs that this team was onto something was that three years ago, they knew this was a coming trend. in the age now where the average

consumer is thinking a lot more about their privacy and data breaches, this is a very real situation, i think it is one extra step, but it is one that more and more americans and people all over the world are more keen on taking. emily: how much do you think people care about their privacy? if it came down to you can't use facebook, would they stop using facebook? despite all of these data breaches, when you look at facebook's results, they continue to see engagement and have 2 billion users. alexis: i think what was so spectacular about this is that by starting with email, you are creating a user experience that is no different from what to do today. you still go to your iphone and mail account. the difference is the server where your email is stored is physically yours, it is in your home. that is the foundation that got us so excited. emily: how many customers do you have? what sort of growth are you expecting given the costs, but also the concerns? giri: today we come out of

stealth mode and we are announcing availability for sale. we have been running a private beta program it that has been very successful. we've been getting a lot of great feedback from initial customers. we are excited about the demand we have seen so far. there has been a lot of engagement online, on hacker news -- alexis: hacker news is happy folks. >> the people we look at are the early adopter audience is, which has been highly engaged in showing interest. emily: we seem to be going through a reckoning with big tech whether it is google or facebook. some people seem to be angry with how they have been treated. do you think that is a prolonged trend or do people forget about it and go back to business as usual? alexis: people will always default toward a great experience. in the long-term, that is where we are long on these tech trends because the user experience is starting to become better and better.

i think this is a watershed moment because users want this. users care about this, but the barrier to getting access to it was a lot higher. it's no surprise to see apple proactively give users the chance to own their data. that is a direct response to users caring a lot more about this. as the user experience get better, the standard will be set and consumers will start to ask why can't i have this for so , many other parts of my digital life? emily: interesting coming from one of the founders of reddit. would you say that other social media services are vulnerable in the long-term? alexis: i'm seeing pitches for decentralized social networks. at the end of the day, there has to be a draw to get someone to want to download an app and share parts of their personal life, but i think this consumer trend in 2018 is similar to

-- very different from 2004, 2005. i think we do care more. i think just doing coming to the home of someone who has a helm device, people will see this and it will start a conversation. it will get people thinking, and i doing as much as i can to secure my family digitally as much as i am physically? emily: all right alexis and giri, we will be watching. thank you. coming up, it is a tesla teardown. a team of engineers in detroit point on major flaws in the tesla model three. how bad could this hurt the company? we will discuss, next. this is bloomberg. ♪

emily: tesla's model three has some of the most impressive technologies and one of the best motors of any electric vehicle. but, a team of engineers said there is a major flaw in the car's design and that is hurting their profit margins.

ed ludlow reports from detroit. reporter: detroit. a city you would associate with building cars at a massive scale. in an engineering warehouse, we found the man who tears them apart piece by piece. his latest project, tesla's model three. >> munro and associates does quite a bit of engineering work. mostly in reverse engineering and benchmarking the vehicle. reporter: the manufacturing guru and his engineers tore apart two model threes and compared it to a bmw and a chevy volt. their conclusion, tesla is ahead of the game in all areas but one. too complex,y is expensive, heavy, and difficult to build. >> this car has a lot of good features and a few bad ones.

i'm standing in front of the worst one right now. this is the reason that i feel tesla has problems. wait, and the closures that go along with it, are not designed for manufacturability. they don't do a good job at the part count. the weights are too high, the body is much too stiff. partseel wells have nine that would make up normally one part in a conventional car. they use so many different fastening methods, it's incredible. it goes on and on. in many cases, the design is so poor that am surprised no one caught it before it got into production. reporter: the model three they analyzed has a sticker price of $50,000 according to munro. he estimates the car would cost about $34,700 to build. that means a gross profit margin of about 30%, but there's a catch. munro believes it would cost

that much to build its it was built at a conventional car factory. the model three was built at fremont factory, where they employ 10,000 people and robotics. the cost of labor and automation is high. of the people could probably disappear from the factory based on what i know about car plants, and i would have to happen after they strip out a lot of the robots. had this product been built in a conventional ford, toyota, whoever kind of planned, this would have been a brilliant design. it would have entered the marketplace in unbelievable fashion. they could have clobbered everybody. no one would have been able to catch up. reporter: munro and associates are excited by the model threes factory developed by panasonic, that gives the car more range than anything else on the market. >> what they put together for making this battery module is a brilliant piece of engineering and i do not think there are many people that could help them

make it better. their battery management system is one of the best i have seen. this is probably going to be a long lasting battery. reporter: all cars need a motor. according to monroe, the model three's electric motor is one of the best. in the world of automotive, every dollar and kilo counts. puts the tesla motor at $750. the bmw i three has a mark -- more expensive motor at $841, and weighs more. the chevy volt motor is also more expensive at $836 and ways -- ways the most at -- weighs the most at 51.9 kilos. tesla also outshines and performance. >> this is wicked fast. this is a much more agile and exciting motor to have than the chevy volt or bmw counterpart.

munro and associates are still unsure what type of motor the has, pending further analysis, but they have discovered a unique magnet design which they think gives the model three its impressive performance. >> these are for magnets glued together. four of them. this gives us something entirely different, called the held back effect. it gives you different performance characteristics. this is one of the things we think gives tesla extra umph. reporter: tesla declined to comment on the findings, but the models munro reviewed were built in 2017, and musk has previously said in response to the analysis that the processes have gotten more efficient since then. he acknowledged the body could be more efficient. munro says elon musk should go back and benchmark the car into well-established methods of designing and building cars. at stake, potentially faster

production and higher margins, something investors are watching closely. ed ludlow, bloomberg news committee try. emily: bloomberg's ed ludlow there. after this report came out, thatness insider" reported manufacturer had left the company. speaking of tesla, $140 million will be paid to where they build a factory in china. this will be its first outside the u.s. and the first time china has allowed a foreign automaker to fully own a factory there. the facility will allow tesla to sidestep tariffs sparked by the trump administration's trade war. coming up, recreational marijuana comes to canada. will the first major economy to legalize pot start a global trend? this is bloomberg. ♪

emily: this is bloomberg technology. i'm emily chang. canada is going green. wednesday it became the second nation ever to legalize recreational marijuana. more than retail locations have 100 opened up across the country in celebration. one company is celebrating the movement. can growth, the nation's largest producer. canopy growth was the canadian first grower to debut on the new york stock exchange in 2014. it now has a valuation of more than $10 billion. joining me on the phone is the canopy growth ceo. shares have not reacted quite so positively.

there are complaints the prices have gone up from what they were on the black market. what are your responses to that? price on thee relative market is actually not cheaper. most of the people coming in the been so actively impressed that i think everywhere in canada will be sold out if not by the end of the first day probably by the end of the second day. i think our prices are on par. when you get into the market, not everybody watches their hands properly, so there are a lot of other things you don't wish to have. find itcit market will find will not easy to do that because they create punitive measures. if you are landlord hosting them, it can cost you $700,000 a day to be a landlord. if you work on selling it, it can be up to 14 years in prison. in canada, we are regulating and educating. the price and product quality is better, i think, and that's a

strong and compelling reason to switch. emily: how do you expect demand and sales to evolve? >> could you say again? i couldn't hear you well. emily: how do you expect demand and sales to evolve? it will normalize probably as we get into early 2019, if we can keep up. at this point, everything in stock is selling. the lineup has been around the block on day e-commerce stores one. have been flooded. we want to open more storage across the country to be more access. the second half of 2019, the government will introduce and expand products stuff.ng beverages and we think that will drive more demand. it will be quite a cycle for the next two years.

emily: canopy growth ceo and founder, bruce linton. thank you for joining us. coming up, we hear from congressman mike quigley who serves on the house intelligence committee. but he think that the news that china pulled off an unprecedented hardware hack that infiltrated apple and amazon. that is next. this is bloomberg. ♪

bloombergdays ago, reporting revealed that china had carried out the most significant known supply-chain attack ever on u.s. companies. according to 17 sources with direct knowledge of the compromised hardware, chinese hackers implanted tiny microchips in the servers of supermicro that infiltrated the data center that almost 30 u.s. companies including amazon, and apple. lastly, bloomberg reported on more evidence of hacked hardware via supermicro in a major u.s. telecom. my next guest is a member of the u.s. house intelligence committee and represents illinois fifth district, representative mike quigley. thank you for joining us. on a scale of one to 10, how much did the scenario for trade in this story scare the intelligence community?

rep. piggly. quigley: i think it should be beyond a 10. the real question is how surprised would they be? most of them would not be surprised that all if a story like this was found out to be true. the threats are very real. emily: i should add that we spoke to 17 different primary sources with direct knowledge of the hardware sources and inside the u.s. government. what do you believe the house intelligence committee should do as a result of this report? talk to, they should the manufacturers and the intelligence community to get more fully briefed. they should complete a thorough investigation. i believe part of that is already taking place. i understand the leadership of

the house select committee on intelligence has already asked for that briefing and i would be surprised if it didn't take face within a week. as far as meeting with manufacturers, it would probably take place when we come back after the midterms. dialogue hasort of the intelligence community had with other government agencies about this? i think there is an ongoing discussion, ongoing relationship that is taking place for some time now. this is a threat i learned about since i was on the committee and even before as a member of congress. the threat is that china will attack our intelligence community. it will attack our sources of information and our intellectual property at every possible point. we are not prepared for that at this point in time. i should add that amazon, apple, and supermicro have issued statements denying knowledge of these allegations.

you can read that on our website in full. that said, when it comes to vulnerable do you believe we really are, given that the supply chains of these companies go all the way back to china? rep. quigley: the supply-chain issue is extraordinarily complicated, but the threat is extremely real. i think we saw it borne out when we saw the zte phone issue. congress finally acted to the national defense reauthorization act. they banned -- the government purchase of these phones. they did not, demand the same from the private sector. i think you'll see more of that. the fact is, i don't know that we can pick up that demand. it just proves we are going to have to build more of these materials that are put into all of our communication of equipmentand computer

here in the u.s. in a place we trust the supply chain. as you suggest, it is an ever more complicated world and it will be harder and harder to trace sources of the materials that go into this equipment. emily: how should companies be looking at the security of their supply chain? how would they go about moving their supply chains out of china given the many years they have been entrenched there? rep. quigley: it is not just the many years, it is the sheer volume that is needed is going to be hard to make up for all of the lack of material. it will take some time. i think there needs to be partnerships within these corporations working together to understand the threats. there also needs to be an enhanced relationship with government and academics to understand the threat and to cooperate to meet this more fully head-on. the government's role needs to be to help these entities face this challenge, give them the

company information they need, and the assistance they need in ramping up the work they need to get done to create the material here or with partners that we trust. emily:. given what we know now, would you advocate apple moving their supply chains out of china? supermicro has servers in so many countries and government agencies. rep. quigley: unless they find some miraculous way to check all of this and make sure it is safe, they are going to have to. i believe it is going to take some time, but at some point in time, we will have to recognize that threat and find a way to move the supply chains elsewhere , at least with allies we trust and partners we can work with. emily: meantime, an update on the russia investigation. there are 54 transcripts being scrubbed of classified information.

when do you expect those transcripts to be released to the public? rep. quigley: most of those should have been released already. the fact of the matter is the vast majority involve only unclassified material. we attempted on the democratic side to get those released immediately and we were met with opposition. the rest of it will be scrubbed by the intel community and we are fine with that. the fact of the matter is we asked this information be released half a year ago. on the last day that we were in ofssion, in that all the kavanaugh hearings, they released this information to the intel community to be scrubbed hoping that people would forget it existed. emily: why do you think it is important for the public to see these transcripts, from don jr., from steve bannon? rep. quigley: i think it will help them begin to understand what i have learned for the last

two years of this investigation. there was an attack on the democratic process. it was the russians who acted alone. they did it to benefit one candidate and hurt another. there were those in the trump world communicating on an ongoing basis, attempting, at the very least, attempting to conspire with the russians. i believe the transcript ass -i believe the transcripts as released will- bear that out. finally, there's a lot more to learn. many pointsied that in this investigation trying to , a gagt what took place order from the white house, the fact that witnesses were not subpoenaed, at least 40, and those that did show up were not required to answer questions. emily: facebook said it is on the misinformation

platform about voter suppression, whether their vote will count. how you can vote. do you think this is enough, or should facebook be doing more? they are outsourcing other factmation to third party checkers, which if flag would be downrange, but not necessarily removed from the platform. rep. quigley: i think if facebook and other social media platforms were slow to react to this, they were woefully underprepared for the last election as the russians weaponized social media. they are slowly realizing what a threat this is on the democratic process. i welcome reforms as they come. in the final analysis, it will be up to the american people to recognize this fact and be aware of anything like the posts they have seen before that are divisive or seem very unrealistic. you satisfied with what you see facebook doing so

far? this is a gigantic platform. is it realistic that facebook itself can have control over all of this? going to takeit's more than just facebook. it will take involvement with all social media platforms and the american public playing a role as well. there's always more that they can do. it is going to require a lot of resources to do the policing of this. american public can expect this. it is all about transparency and accountability. with posts like if you voted in , the primary, you don't have to vote in the general. if you click on this, you have already voted. if that suppresses a few votes, it is worth fighting against. emily: thank you very much for joining us. blisteringnetflix's third quarter share. can it do the same thing? that is next. this is bloomberg. ♪

emily: shares of netflix got off to a big start. trading, it send up millions of customers, boosting to 130 7 million subscribers and forecasting upbeat growth, planning to add a record number of customers for the 21-year-old company. can this blistering sign-up growth be enough to lift the family of faang stocks? is it enough to boost everyone?

>> it is a reminder of the secular tailwinds the internet companies have. if you look at growth across the board, mobile advertising, search, e-commerce, it is strong. it's not changing. what is changing is the margin worries in the second half with all the compliance spending on data centers happening. still thee overhanging wary in general, but the organic demand behind the sector continues to be strong. emily: you are optimistic about netflix. can netflix keep up this kind of growth? given a lot of the growth is coming from international going tohere they are be required to make country specific language specific content, and that is at lot of different audiences. >> true, but that's a cheaper production budget. we are looking for them to continue adding to similar growth internationally, perhaps accelerating the number of growth subscribers even if the rate slows internationally. we have known for some time that the real growth story is international.

the u.s. is growing modestly. as long as they continue to add 30 million or so per year, most of it internationally, and the production budgets are localized content are relatively cheap and drive local viewers. i think that's why are the drive comes from -- growth comes from. emily: let's talk about amazon with a competing service. how do you expect amazon video to evolve, given that netflix is showing such strong growth, content? theyl just bought a studio in new mexico where they will produce more content and they say it will be more of the same. continuing and netflix is showing how this is localizing in regional and things like that. this is a part of a grander strategy for amazon. primere attracting more members and increasing spending per prime member. this is a critical element.

they are going in with a different agenda, but we continue to believe they will increase spending. emily: what about netflix spending a billion dollars on a physical studio when real estate can be a risky investment? this is at the same time they are continuing to invest billions of dollars in original content anyway. is it worth it? >> my understanding is they got a pretty good deal for that albuquerque studio. if they had been paying a lot of money to rent studio space elsewhere, it might be a good deal for them. the netflix story is very much about original content production. not just licensing originals like "house of cards," but making and producing their own shows now. , theand more over time drive will come from that. if they can achieve a lower cost to produce those, that will help the bottom line. netflix believes it has a huge potential in india. that said, amazon is already strong there.

there are other local competitors. do you think that can be were -- where the next comes from? 100 million >> i wouldn't put a hundred million subscribers as the achievable target number. i don't know what it is. it is quite an expensive service for india. you've got a lot of competing services. they can be much cheaper for the average consumer. it's a very different sort of a marketplace. there's a lot of opportunity because it is a population that loves dramatic content. i think is a huge growth opportunity. i don't know if 100 million is a real number, but it will be a major growth driver for sure. emily: thank you both. space,crowded cloud gaining speed, well-known for the enterprising software and customer relations. the tech giant is pivoting to the cloud suite. bloomberg's amanda

lang that the transition is underway. i workedou and together in 2016, i told you we would be the number one cloud company in the world. and we are. we now have 150 million users running our technology in the cloud. the cloud business model has superseded the on premise business model this year. meaning, we are getting more revenue from the crowd than the business we built over four decades. change is happening very quickly in i.t. clearly, sap is leading the way. our new system is moving everything into the crowd. companies can be intelligent enterprises so they can serve their customers better. reporter: you are also collaborating with other big tech layers in a way that feels new. it must have been interesting territory to partner up with people you must have considered rivals. scalers,k the hyper

for example, thinking about microsoft, which has been a partner of sap for four decades, and amazon anda, google in the united states, all are veryhyper scalers strong companies. they will provide solutions that are multidimensional to time it isnd over important we chose a strategy where our reference architecture and technology can also run in a hyper scaler cloud. we should be where the customer wants us to be. if that can help them to run simple and achieve their goals, we are leaning into that change. you, or we canor team up with great companies. we have chosen a collaborative approach to the partnerships in the cloud. i think it has helped. is growinghere

concern about data security and the management of data ethically. where does sap fit into that? obviously, you are right in the heart of it. >> it really is. as you know in europe, security , and privacy around data has been a long-standing issue. the europeans are way ahead in this regard. we were the first company that was certified by the british standards institute for data privacy in the world. data privacy is our forte. we do this in terms of any channel, any device, any human, any consumers worldwide. when they do business with sap, or sap customers, we make sure the customer's data is the customer's data. we make sure the privacy of the individual consumer is detected. fully protected. that is an absolute must for sap and the marketplace. reporter: do you worry about certain jurisdictions? you partner with alibaba and do

business all around the world.do you worry about china when it comes to data security ? >> we have worked in china for sometime now. if you think about state owned enterprises in china and large organizations, they all run sap. if you think about technology companies, the market leading ones, they all run sap. we have worked with china in good faith for many years now. i am confident that the cloud and the reference architecture , the security, and privacy standards we have put around the data is fully protected. particularly with our cloud standards, which we insist upon. emily: that was sap ceo bill mcdermott with bloomberg's amanda lang. that does it for this edition of "bloomberg technology." tune in tomorrow with our interview with l.a. clippers chair steve ballmer. , ♪

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