in sanselina wang francisco and this is "bloomberg technology." coming up, tesla shares stumbled the carmaker announces it is causing back on productions of the model x. will profitability once again come under pressure for the company? plus, uber makes a splash at the world economic forum in davos, giving new details about the self-driving car units. we will bring you the highlights.

is set to become the world's biggest retail market this year thanks to online spending. we explore why e-commerce remains strong in the region. story, teslatop shares have plummeted after the electric carmaker announced it has reduced the number of hours it is producing model three sedans and model x crossovers. the move has added to concerns about demands that tesla's higher price and more profitable vehicles. tesla has gotten rid of the option for customers to order the vehicles equipped with entry-level batteries. break down for us what exactly this means and what you have been hearing for your sources -- from your sources. reporter: workers at the tesla factory last week were concerned that layoffs were in the works, because they had heard concerns that productions would be laying off. there was any mail that there would be 7% losses from the workforce. this is the first time that layoffs are hitting production

workers, not just salaried workers like a sales and hr, but people actually in the factory. now we are hearing that the production has been cut back. we don't know how much. it's not that surprising because they did drop the lower-priced model and know all efforts are on the model three. selina:selina: as all of this a sign that the challenges of scaling up, sailing at high prices, delivering large margins, is it coming to a head? reporter: it seems to bp or the model s and model x have been out for a while. sst people who want a model have one already the demand for those cars may not be as strong as it used to be. the price difference between the three price model s and is not a lot. selina: it seems like demand is coming to a ceiling. reporter: perhaps. we will find out more when tesla report earnings. how many do they plan to make this year? is it still 100,000?

we have not gotten forward-looking guidance for the year. selina: they said in october that europe and china might slow down the slowdown -- see a slowdown in the u.s.. now we are seeing economic slowdowns in china and weak retail sales. will this hurt the prediction? reporter: china has always been a wild card, but tesla is a strong brand. now everyone is concerned about the chinese auto market slowing down. is tesla going to be able to cut through that or not? how fast are they going to get the gige factory up and running? selina: we saw china -- apple forecasts.na revenue is there a sense that the growing nationalism in china in addition to the economic slowdown could hurt numbers? reporter: it could. i don't think we have a clear indication yet. tesla got a very warm reception when it went to saint -- shanghai for this gige factory groundbreaking. are wantinghat they to start producing there. selina: how did the factory

factor in? you have this huge plant and shanghai. reporter: we still don't have a lot of details as to how it's being financed. the rumor is it is through local trainees debt, but we don't know the terms or which banks. they have to build the plant in order to avoid the tariff issue, which makes it cost prohibitive in china. selina: we had some recent negative analyst reports on tesla. they keep falling after each round of news. reporter: for a long time, the narrative is it is a high-growth company, they spend a lot, but they are growing because there is off demand -- off the hook demand for the product. now the demand is up for grabs because it's the first time they have pulled back on production. selina: when we talk about production, how much of the layoff is actually increasing efficiency at tesla, and how much of it is we just can't sell enough cars?

reporter: that is a good question. we don't have details from the state of california yet as to which positions were cut, but certainly production hours and production go hand in hand. on the one hand if you become efficient, you don't need as much labor, but you don't need as much labor if you don't make as many cars. selina: what is morel like? reporter: it's pretty bad. 9%,une, elon musk laid off saying it was hard and he would not do it again. seven months later, he is laying off another 7%. a lot of these folks made it through the first round in june thinking they were safe and they turned down other job opportunities so it came as a real surprise. selina: in that announcement, elon musk said it will be a difficult road ahead. what are some of the turning point we are expecting to see in 2019? reporter: they need to get this $35,000 car that they have been promising since march 2016 out the door. until that is out, they will be in trouble. that's what people have been waiting for for years. they already sold the higher priced version to everyone in the u.s. that they can. selina: dan a whole, great job

breaking this news. netflixesponding to price hikes by lowering the cost of subscription spread they cut the price of the entry-level ad supported product by 25% to just six dollars a month. last week, netflix raised the price to 13. lawyers a month -- dollars a month. top tech leaders joining at the world economic forum. the top themes of this year's forum, next. if you like bloomberg news, check us out on the radio. listen at bloomberg.com and in the u.s. on sirius xm. this is bloomberg. ♪

selina: investor bill smedes says financial euphoria episodes are a common occurrence in the market. along,e a new one comes they accelerate at those the awesome the end -- enthusiasm at the end. he questions the current rally insurance of netflix and amazon could be part of the process of bottoming. seattle, chief executive and she's -- chief investment officer of smedes p let's talk about the recent decline in the popular tech stocks in the past four months. is this just a temporary interruption? you never know anything absolutely in the investment business. that is the beauty of it. you make your money because you

can look really foolish in six months. let me take my best crack at it. the last time tech dominated the market in the u.s. this much was in late 1999 and early 2000. and that for years, growth has outperformed value by 50%. four months ago, it's interesting amazon and netflix topped out at the same spread microsoft and cisco and intel topped out in late 1999 and early 2000. selina: what does this mean for investors like yourself and asset allocators who need exposure to large u.s. equities? attentionle paid some to what jack vogel said three or four months ago, it was starting to trouble him how much concentration of wealth had developed in the s&p 500 index and etf's that concentrate on tech and growth, because what

will happen, let's say you have a cheap tech stock you like, and it is not part of the mania, yet it is in the index and the etf's. if the big-name ones go into the extended bear market and stay depressed for an extended period of time your shares will get net liquidated even though you are not part of the problem. it could be an interesting fiasco if it's anything like what happened in 2000. selina: in your recent report, you talk about dead stocks, stocks that may spend the next 10 years or more, getting back to the peak time. what are the current dead stocks? >> there are always two kinds of dead stocks in a mania. we might not be the end of the mania. for a long-term investor with a five to 10 year outlook, it will end by than unless all economic history will be rewritten.

the two kinds of dead stocks are the ones that the business ends up being really great. they are the geocities, aol, the total disasters out of the tech bubble. kmart, out of the nifty 50 in the 1970's. those are dead. people will never have the chance to get that money back. i focus on the companies that people have good reason for having long-term confidence like coca-cola, disney, mcdonald's. in thestock gets smashed bear market, then you go for 10 to 20 years of purgatory where the stock never makes it back to the prices it was before the decline started. week, piece we wrote this we compared intel, cisco, and microsoft to amazon and netflix and just asked that question. microsoft was the big winner. they got back to their old high

in 16 years from the peak, i think december 23, 1999, getting back to the old high. 15 years of a stock going absolutely nowhere. not because the company didn't succeed, not because it's not a great company, not because they didn't have a great total adjustable market, just because the stock had too much enthusiasm. selina: what about amazon and netflix? have they already peaked? >> if the history of the markets is any indication, on this decline from 2000 and amazon, you see a lot of people going on tv and saying this is just a temporary correction, just like the corrections they have had through the last 20 years and it could double in three years. if you want to stock the bottom, you want all the analysts took cut their rating, you want everyone to go on tv and say "i never want to own this stock

again," and you probably have a bottom. we are not there in any way, shape, or form. in many ways, people are more excited than before they dropped. selina: speaking of netflix, hulu recently lowered prices after netflix raised prices.is this enough to improve hulu's competitive positioning? >> you don't want to get me started their. the disney corporation and comcast corporation, they've got 30 or 40 years of creating content. i love this. these johnny-come-lately's come in to produce content, and everyone knows money only goes into hollywood, it never comes out. this idea that they will make all these wonderful shows like these companies that worked at it for 40 or 50 years, it might happen, but the problem is those stocks are priced as if that's not only going to happen, but they will go to the sky on top of that. selina: amazon has surprisingly positive earnings.

ibm did. texas instruments gave a weak forecast. what are your expectations for the big tech earnings like apple, amazon, facebook, google? >> if i'm running apple and the to 155move from 220 down and people have bailed out, i would shovel whatever bad news into this report that i could put in. clean the slate for the following year. what we are watching on apple -- by the way, apple is depressed and price and looks reasonably see,d, but what i want to i want to see if the directors are calling up their brokers and going into the online account to buy shares themselves and filing with the sec. i don't want just buffett buying it, i want to see them. in the case of amazon and netflix, it works the reverse. in other words, it's almost more of a curse if the results are fantastic, because when you are trading at 80 times earnings, coca-cola's earnings were fantastic in 1972. disney's, but that did

not stop the p/e ratio from contracting for the following 10 years. who on the planet is left to love these? what analyst is left to tout them and raise the price target? there could be more out there, but it would surprise me. selina: thank you, bill smead. i enjoyed reading your report. the ceo of smead capital management. thank you. the world economic forum is underway in davos, switzerland and tech is at the center of conversation. sheryl sandberg and uber's ceo joined several world leaders to address global problems. our global editor of global technology brad stone sent us this report. reporter: transportation was on the agenda at the world economic forum in davos this week. i sat down for a panel discussion with the uber ceo, the ups ceo, and boeing ceo.

there were no regulators on the panel, so all three ceos were able to wax optimistically about the future of mobility. we talked about autonomous driving, air taxis, drones, the hyperloop. all three of them are eager to change how people view companies and to bring new solutions to moving around within cities and between cities and around the world to their customers. it's difficult to pinpoint one consistent theme when it comes to technology at the world economic forum in davos this week. the topics of discussions have ranged widely from the impact of facial recognition to privacy in the digital age to the demographics of the gig workforce. devils always provides an opportunity for ceos to signal their virtues. marc benioff is talking about responsibility he believes ceos have to give back to the community. bill gates is here talking about his objectives in terms of global health.

sheryl sandberg is here talking about the way in which she thinks publishers can succeed on the facebook ecosystem. year, there was a clear sense that tech ceos were here to apologize for the impact they had on democracy. this year, there is a prevailing sense that the world's problems, d.c.,ction in washington, the brexit stalemate in the u.k., that the world's problems have eclipsed the problems of valley. this is brad stone from bloomberg reporting from the world economic forum in davos. selina: much more coming up. as a reminder, bloomberg technology is live streaming on twitter. check us out. be sure to follow our global breaking news network @tictoc on twitter. this is bloomberg. ♪

selina: open force event theaming platform joined unicorn club tuesday, announcing a $125 million in funding. the latest round led by sequoia apital brings the company to $2.5 billion valuation. likework with companies audi, jp morgan, and priceline to transport massive volumes of data between applications. here to discuss more is mike. for a long time, investors ignore this category because they couldn't get past the free part. what has changed? >> the companies have really changed. the early open source models were about taking free software and selling support services. if something broke or went wrong, you would call someone up and they would tell you how to get out of a jam.

modern open so's companies are about -- open source companies mean some part of his free and some parts are paid for the parts that are paid for are the features large corporations need to use to operationalize software. that has created a new revenue model for these open source companies. selina: is it profitable? >> not yet. selina: how does it compare to other startups in the space and amazon, which has a competing product? >> the basic idea is 10 years ago, companies ignored data. it is how these decisions are made all the time the tricky part is data is created everywhere. every time you tap a mobile app, or step on the accelerator in a car, you are creating data. lots of organizations need the data to do their job. a product designer might need to know how often you push the accelerator. a marketer might want to know how frequently you click on the mobile app. those people in the company need

to have that data. something needs to connect them. if you connect everything one by one, you get a mess of spaghetti of data in your corporations. confluent are the roadways that create -- connect creators of data, publishers, and subscribers to analyze it and understand what's happening. selina:selina: open source software has been a hot space for m&a. are you expecting to see more of that? >> i don't know if you will see more m&a, but you will see a lot more primetime open source companies. the fundamental reason is because the software, or part of the software, is visible and free, corporations that are customers trust they don't have lock in anymore. unlike the old days of oracle or microsoft where you had to buy it from them, the openness gives a level of comfort. you also have an entire community find it creating and innovating. rather than being focused on the employees of the one or better

of software, you have a community around it, so the pace of development is much quicker. you are seeing open source momentum driving across many applications. selina: and 2018 was a very successful year. what is in the pipeline for 2019? >> we have to be a little quiet about what's in the pipeline. we have some companies that are exciting. slack is one of them. we have a pump and he called data dog in the data monitoring -- company called data dog in the data monitoring business. we are lucky enough to have a good portfolio right now. selina: on the note of slack, why go for a direct listing versus an ipo? > we can't talk about timing specifically, but generally the idea of a direct listing is relatively interesting for a certain type of company. obviously, the direct listing means you don't go through an underwriting process and you

sell shares directly to the public. there are no lockups. there is no dilution. for a company that is cash rich like spotify and also has high brand recognition, so they don't need the benefit of a roadshow like an ipo, direct the stings are useful. there are a number of companies that have matured who have the same cash richness and recognition that can utilize direct listings. selina: we are seeing the government shutdown delay ipo's for some companies. uber and lyft are expected to go public this year. is that impacting the portfolio? much.tech, not so most companies that go public don't need cash at all or just need it for a rainy day. is not business particularly cash hungry, like all of these companies i mentioned fitting into that category, i don't think going public this month or next month is necessary. you have to figure out some

point the markets will reopen. selina: what do you see is the biggest risk factor to the tech sector this year? regulation, geopolitical concerns? >> at the end of the day as much as we love tech, it's a byproduct of the general economy. if the economy is doing well, people will spend more money on tech. if the economy slows down, it's challenging. looking at the global economy, the big powers are the u.s. and china. the u.s. economy is in great shape. china is a little softer, so you worry a little bit. most startups don't selloff to china. at least right now, the prospects look good. selina: mike volpi, general partner, thank you. coming up, a new report from a marketer outlining why china's e-commerce growth is still booming despite an economic slowdown in the region. this is bloomberg. ♪

selina: this is "bloomberg technology." we are joining daybreak australia to bring you the latest in global news. i am selina wang in san francisco. >> i'm haidi stroud-watts. >> i'm shery ahn. let's get the top global tech scores. china deleted more than 9300 smartphone apps for information deemed inappropriate or handful -- harmful. $.10 new service was singled out. microsoft says it's planning to implement self design ethical principles for facial recognition technology by the end of march.

it is also urging governments to push ahead with matching regulation in the field of calling for new legislation. the french government is aiming to ensure the security of its 5g network without banning chinese equipment sold flyer huawei -- supplier what way. this is according to a french lawmaker. 5gir plan for a full-scale network is by 2020. selina: those are the top global tech stories today. edge out the u.s. as the biggest retail market in the world this year, according to a new forecast by a research firm. part ofales are a big china's growth. areany of a percentage estimated to be from e-commerce. we are joined by the principal

analyst from a marketer in chicago. china is outpacing u.s. retail sales despite the trade war, and the economic slowdown. that?s offsetting >> it is dampening the forecast, and we saw retail growth in excess of 8% last year. we are bringing it down 7.5%, but it will still run ahead of gdp growth. certainly that is a strong growth rate on a very large number for china. a big part of what's driving it is continuing growth of the middle class over there, particularly in tier three markets and rural areas as those consumers come online and engage in commerce for the first time. great deal of that still has to do with mobile penetration. at what point do we see some semblance of saturation when it comes to retail sales online in china? every three out of dollars in retail will be

transacted online. what's incredible is we will see that number for mobile commerce surpass 80% this year. weht out of $10 in the u.s., are at about half of that percentage. that is fuelinga lot of the growth we are seeing . if you look at mobile in the context of all of retail, it will push upwards to around 30% of all spending. i spoke to alibaba president mike evans last year and he said big-ticket items are slowing, but other areas like cosmetics, fashion, and apparel are growing strong. is that a broader trend you are seeing in china? >> yes. with trying to rein in the credit in china, that will affect big-ticket purchases. we saw the slowdown in the smartphone market already. i think that is something that is obviously a concern and can push up growth numbers quite a bit. we are seeing the u.s. being bolstered by high ticket purchases in e-commerce. the reverse is actually happening here in china now.

haidi: for the longest time, it feels like e-commerce like alibaba is having head scratching moments. i want to pull up this graphic that i found really intriguing in terms of chinese internet users outnumbering, in fact, more than doubling the entire u.s. population. i wonder if you look at statistics like this, do these companies in china actually need overseas markets? >> i think they can certainly grow to be huge. in fact, we are forecasting that alibaba's growth merchandise value in 2019 surpass $1 trillion, which is really incredible to think about. obviously, that doesn't all fall into their revenue, but a huge amount of value that happening to these platforms, do they need the other markets? no, but if they want to continue expansion, they will

extend into these markets. they can extend into other parts of asia, but it gets harder and harder when you think about other markets in europe and north america. the data shows smaller players are starting to eat into alibaba and other businesses. if you look into this chart, you can see almost $70 billion in sales in 2018.what are the smaller players doing that alibaba and jb are not? >> even alibaba will grow at almost 20% this year. the market is growing, but it's eating into their shares. pinduoduo is like groupon on steroids. it took the phenomenon and hook it to the rural and tier three markets and grew it quickly. it is well aligned with the fastest-growing segment of the population with the e-commerce market. that is incredible growth, to

think about the fact that the company was founded in 2015 and is already going to take 7% of the e-commerce market in china almost overnight. selina: lastly, despite the broader economic slowdown in china and growing nationalism, are you still seeing retailers internationally want to double down in the market to reach a large growing middle-class consumers you were just talking about? >> it's always a double-edged sword. i think the complexity of going into china is always difficult. every company kind of wants to go into that market, but when they actually try and do it, they find it's a little more anticipated,n they and you also see pullback spear they will continue to try.i don't know how successful all of them will be. we will have to see what happens. haidi: what is the next big thing we are not already talking about in this space? induoduo is something that

is new and novel that is taking off. i wonder if we will see some new flavors of retail. almost cut of brings and gimmicks to precipitate a new form of buying.that's what i'm looking at . what is the next one that's going to take shape? will it take shape in china, or will we see copycats and other parts of the world? di: we appreciate your time. andrew lipscomb with emarketer. much more coming up here on bloomberg.this is bloomberg . ♪

selina: amazon, in a move to improve its delivery service, will test a fleet of robots in the seattle suburbs. they announced a trial of amazon scout, the autonomous delivery device that is a cooler that walks on the sidewalks on a walking pace. they will use six robots designed to navigate around people and pets. as the world's population tops 7 billion people, more important is being placed on how to identify and track people around the globe. a new report outlines the benefits of adopting a digital id, which can impact the government benefits, health care, financial services. here to discuss is olivia white, partner at mckinsey and lead author of the report. what exactly is a digital id and what are the objectives/ > in a place like the u.s., it's easy to take identification for granted, but if you go to

countries, there are roughly one billion people with no form of legal identification. they can interact with their government, they can't open a bank account. if they wanted to start a business and register, they couldn't. probably 4 billion people to 5 billion people have id but they don't give full functionality. i don't know about you, but i forget passwords regularly. it is hard to interact with companies. what we want to do is say given those challenges, what is the benefit of an identification that can allow you to identify yourself via digital channels and in a high authentication white? selina: it would make our lives easier to not remember one this hasasswords, but had pretty mixed results. where has it been successfully done? >> i would say it's at the early stages, so that's the reason for mixed results. if you look at estonia, a small

population, most of the country using digital id. on the larger side, india has 1.2 billion people on a digital identification system. selina: in your research on seven countries, extending full digital id coverage could unlock economic activity. how does that creation happen? >> we looked at seven countries across the developed and developing world. we looked at brazil, china, ethiopia, nigeria, the u.s., and the u.k. you can see across all of those countries there are really six kinds of ways in which individuals interact and where value can be created through hundreds of use cases. one is i interact as a consumer with a company. another is i interact as a worker with my employer. another is i have a micro-enterprise and i want to start a business. i can interact as a taxpayer or a beneficiary, or just be a citizen.

selina: india's digital id program, the world's largest, was shown to be compromised. what is the greatest risk when it comes to privacy and identity fraud? > this is an incredibly important question. on the one hand, there is potential for enormous good that can be unlocked by digital idea, but there are risks. in some ways, it can be thought of as a dual use technology, like nuclear energy where there is potential to unleash a huge amount of potential value, but also potential for downside if it is in the wrong hands.as a result, things like the proper government and the right legal framework, very careful controls and rules around privacy and user can set our encounter billy incredibly- are important and are what's needed. selina: some critics have called digital id is one of the greatest risks to human privacy and identity. how do governments limit the downside? could technologies like blockchain help?

look atnments need to this as very similar. there are lots of governments working with this like the u.k., or even here at california, the ways to set up legal frameworks around how data can be shared and what sort of consent people need to give in order to get those benefits. technologies like blockchain can help, but they are distantly not the solution alone. you really need the legal framework and the right government. selina: what are the differences and the ways emerging economies versus developed economies should implement these programs? is it expected emerging economies will leapfrog developing once? >> it is a tremendous opportunity for leapfrogging and developing countries. they are going to places where it -- let me give you a statistic. 45% of women in low income countries don't have legal identification, compared to 30% of men. gap.ave a huge gender

you also have instances in which not enough people are included. it provides mechanisms for inclusive growth and allowing people access to the digital world. selina: how will some of these biometric technologies like improving facial recognition, fingerprint scanning, iris scanning? >> the technology answer to that is they are getting cheaper as they are getting better at reducing false positives and false negatives. it is better at identifying the right person. those technologies really need to go along with the right protections. selina: and what countries have you seen a sort of private-public partnership help to achieve this program? >> estonia is a really interesting and good example. on the one hand, the government in many ways is the real driver, enables andy do elicits the participation of the private sector.you then have a country like sweden.

in sweden, there is an identification program that was started by a consortium of banks that have worked together to establish this program that has been used also for certain public purposes. selina: olivia white, fascinating report from mckinsey and company. thank you for joining us. still ahead, venture capital faces the diversity cap head on. how the founders want to take on silicon valley's boys club and put more women in vc's. this is bloomberg. ♪

selina: a drone prompted the federal government to briefly shut down newark international airport because it flew within 30 feet of a jetline. first reported the

device as he was landing a plane. a crew operated on a separate flight made a similar report three minutes later. all venturet 15% of funding went to female founders. that's according to all raise, a nonprofit dedicated to increasing diversity in founders. their mission is to double the percentage of female partners in venture firms in the next 10 years. emily chang sat down with the founders on "studio 1.0" and asked about regulation and technology. ourhe tariffs that government have put in place are in the long-term, and maybe this is my economist background speaking, they are ruinous for our economy. they are ruinous for the global economy. even when i look at our micro little world in silicon valley, when we think about prices going and thefor direct goods

supplied goods that are components, effectively, these are unnecessary price changes that the only beneficiary of that is frankly nobody that needs to have that money. i do believe that the tariffs that have been put into place are anti-capitalism and will come in the long term, negatively affect gdp around the world. emily: i wonder if some of these companies have also shot themselves in the foot. if you look at a company like facebook, is the damage self-inflicted? think the consumer response or sentiment around facebook, one opportunity is it creates windows for new startups because if there is a start up that's going to promise certain things around privacy or your data, and you can share it, i think we

have learned a lot about social media in the past five or 10 years. ofis part of the cycle creation and destruction or evolution in technology. you learn from the predecessors and then people come up with new products. >> mark zuckerberg and sheryl sandberg have been scrutinized for their leadership. where do you think they went wrong? >> pursuing dollars at any cost, at the end of the day. they were willing to -- whether it's them or people under them, i have no idea. that's for you to pick out as journalists, but i think they were willing to sacrifice a lot of their principles for the price.y daughte dollar and shae emily: sheryl sandberg specifically has been heavily criticized for whatever shortcomings she may have had. do you think that criticism has been fair or do you think that has been disproportionate? >> i think in many sectors of society, we are witnessing how

women are treated and viewed differently in the public media than they are -- than men are treated. emily: you think she's getting treated differently because she's a woman? >> i think it's not binary. she is the chief business officer of the company. there are a lot of business issues or business decisions and policy decisions that fall under her purview, but i think if you look at politics in particular, and you look at how females in office are being viewed by the media or by the public versus men, there is clearly a double standard the same is true in business. emily: if elon musk can talk to the new york times or cry -- >> or smoke in an interview. [laughter] emily: can women do that? >> no. >> no. [laughter] >> it's not ok, but i think

realistically, we are on a continuum of integrating women into different roles in different businesses. while we are on a path to carving that opportunity out, we are held to a higher standard. >> i wonder if we are doing this to our detriment, that we are doing that to these companies. like marissa mayer who was so picked apart, where is she now? >> there has to be an acknowledgment that we are not all uniform. one woman does not equal the next, does not equal the next. >> totally. >> very different investment styles, very different personalities. that doesn't mean we can't come together and produce something that is excellent. that means we can come together and do great things. >> the other thing that i think has changed in the past year that i'm excited about is i think we are all seeing more men stand up and call these things out. i think it's exciting to see more men willing to stand up and say what they think about these

issues. emily: there's talk of amazon meeting regulation. are you concerned about meeting regulation for tech? >> when i think about it from a business and consumer perspective i don't want to think, about a world where there are five choices for everything. it's not enough. it's not interesting and i don't think it will ultimately be good for us.if you go back and think about why do regulations exist, why does the antitrust law exist? it is to protect the consumer. i think this is your definition of what protects the consumer, it has been price and access. that's where we are running into some interference around how those companies, if they interfere with that, but i think that needs to be re-explored about what are the standards that govern the way we think about when a company is too big. malika lynn are you concerned because of a slowdown that funding could dry up? > i am concerned. why companies

raise capital they did. i think fear was driving large, -- decisions. this has to end at some point in time for the problem is i don't really see the parting ending. there is still a huge amount of cash in the system that is looking for returns. they are not getting it in the stock market, they are not getting it in emerging markets. it's a macro fund flows issue. data,l go towards high high innovation, high potential return, which is venture. selina: that was emily chang's interview with the general , ventures, andan cowboy ventures. you can watch the full episode tonight at 9:30 p.m. eastern, 6:30 p.m. pacific. that does it for this edition of "bloomberg technology." on tomorrow's show, we will bring you an exclusive interview

with priscilla chan, founder of chan-zuckerberg initiatives to improve housing in san francisco. "bloomberg technology" reporte e streaming on twitter. follow our global news network @tictoc on twitter. this is bloomberg. ♪

haidi: australia markets have just opened for trade. evening, i amd shery ahn. asia --me to daybreak "bloomberg daybreak: asia" haidi: u.s. stocks closing stronger.