emily: i'm emily chang in san francisco and this is "bloomberg technology." coming up the next hour, the social network is about to get a lot less social. mark zuckerberg says he thinks the future is a more private platform. day in court. we look at how the legal battle between a chinese telecom giant and the u.s. accounted a is heating up -- u.s. and canada is

heating up. to the top story, facebook's ceo , who has spent his entire career pushing for open communication, said the future is going to be more private. in a blog post wednesday, he declared the company's future product development will be focused on encrypted communication as more users want to interact privately. he wrote "i believe the future of communication will switch to private, and corrupted services where people can be confident about what they say to each other to stay secure and their message and content will stick around forever. this is the future i hope we will bring about." this amid heightened scrutiny about facebook's data collection practices which are being probed by several governments around the world. joining us is activate ceo and sarah frier. facebook doesn't necessarily have the same -- good track

record of keeping anything private. what you make of this distinct change in strategy? sarah: to your point, i think it is a little about increasing that trust with users around privacy, but in my opinion, a lot of it is about the facingntal problems -- facebook's public and private scrutiny. programs are encrypted, facebook can't see what people are saying, and therefore doesn't have to fix it. askerberg phrased this something users want. it's the fastest-growing aspect of their business and they are doing this because of the demand. it is worth noting how it will affect them. emily: can we trust facebook to make facebook more try that -- more private? >> zuckerberg wants to go from the digital town hall to the

digital home. he says this because he recognizes this trust challenge, but in reality, they are talking about detecting the privacy of people in a broader conversation, but not necessarily the privacy versus facebook. facebook is ultimately in the advertising business. emily: you will still be giving all of your information to facebook. michael: the battleground will be around messaging. if you look at facebook and trolls between messenger, whatsapp, and instagram, they control the messaging -- majority of the messaging around the world. that doesn't mean people worried about privacy are not going to go to other platforms like telegram and signal. let's not forget we chat, which will dominate other parts that don't have the others in china. these are merely defensive actions, and users will be skeptical. emily: sarah, talk about what he said. he said services would be opt in, and if you want your

messages to disappear, maybe they will be able to disappear. how do you think this will look or feel different for a user? think about the position facebook is in. they are being scrutinized by governments around the world who say they don't give users enough choice. thought italways would give people choice, they probably would pick an advertising supported network, postbly would pick to publicly. a lot of this maybe won't be as big of an impact on facebook as we think. that said, he was deliberate about explaining everyone has been using instagram stories and whatsapp statuses, these parts of the services that only last for 24 hours. he wants to bring that disappearing nature to more of facebook's content so it becomes less of a permanent record of your life and more of a rotating version of you. so things can disappear maybe in

three months, maybe in three years, you can decide. emily: michael, you have done a ton of research on digital advertising. how do you think changes like how they are put into practice, will affect facebook's business? michael: a lot of what the platform enabled -- allows is to enable the advertiser to find specific groups of people and surmise their interests. it's not likely to affect facebook's advertising business. it could enhance them. they spoke is going to emerge from being a broadcast platform, which is where a lot of the problems were, a lot of the misinformation, foreign data operations took place on that surrounding. they say it is more private and a lot of users will wonder to see what happens. facebook began as a private platform. it was something for university students to talk to each other. in order to become a commercial enterprise, it had to open up

more. be engineered and designed in a way that it will only enhance facebook's advertising business, versus impair it. emily: there was a new development in terms of the government scrutiny. facebook wanted a freeze on some of the disclosure -- disclosures. hasd.c. attorney general been suing the company, claiming it failed to protect consumer data tied to gamers analytica -- cambridge analytica. what does this mean? variousacebook has had leaks and the companies will face regulators, lawmakers, and this is the year it will happen. be proactive about coming up with solutions before the government comes up with solutions for them. that is how that ties into the news you hear today where

facebook says we are going to give users more choice, we have heard them, but like michael said, i think that will still be in service to their advertising business. emily: michael, what is your outlook on facebook, instagram, whatsapp, and whether users are going to keep coming back? will these privacy issues, ultimately, be the downfall? on instagramgement already surpasses that on facebook. there is a group of people who keep coming back every day to instagram. to some extent, since they are younger, they are less focused on privacy, and the contents shared on instagram doesn't have the same level of depth that it doesn't facebook. they will be less vulnerable. facebook itself, we should expect a lot of people are going to continue to be skeptical about it. then, you look at whatsapp and

messenger, and there is no barrier to entry. somebody can come in with a new service, it immediately scrapes your context, so you can get up and running on another service. that is where facebook might be the most honorable. he might see a wave of social splinter as a result of that. emily: social splintering, i will use that. michael and sarah frier, thank you. apple, lucky margin, and walmart -- lockheed martin, joined a board that will shape the administration's efforts to create job programs that meet the demands of u.s. employees. education,romote training, and better identify company's hiring needs.

funding rounds dominated venture capital in 2018, but could a macroeconomic slowdown dent this year's funding? we'll discuss. 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: 2018 was a historic year for venture capital. spente capital firms roughly 100 $31 billion across 8000 deals. that's more than a 57% increase from the year prior. will that trend continued this year? his ourus to discuss

next guest. how will 2019 compared to 2018? >> at the end of last year, we ,aw the yield curve inversion and some sort of concern about slowdown, but into the first quarter of this year, we have not seen that slowdown. deals are just as competed as they were last year. funding rounds are as big, if not bigger. more yield is being preempted, go onto markets, someone will come in and give them a term sheet or do a deal. emily: if you take softbank out of the equation, is it still as robust? beth: that's a good question. i think so. more and more are funds being raised. they are bigger and bigger. while softbank has invested a 2018, i think the overof the funds increases

the last year or so will make up for that. emily: are you concerned about the political uncertainty tied to the economic uncertainty given the election cycle and what is going on with china? ,eth: in the private markets particularly venture capital and early-stage venture capital, while we keep an eye on it, we don't necessarily see the trends for 6-12-18 months. emily: let's talk about the public markets. out,ve lyft on track to go potentially, in a couple of weeks. uber and pinterest. what is your outlook on deals this year? beth: it will be a big year. it will be a big year for ipos. excited asme most an early-stage investor is that after a wave of ipos, we see a

lot of innovations. the people who were building in scaling the businesses come out and think of new businesses and starting those businesses. we will continue to see a bunch of innovation six to 12 months out. where the coo of fab. worstve seen the best and of competing with amazon and other retail giants. what do you expect to happen in the e-commerce landscape over the next year? it seems like we see a rise in these players who can compete against amazon, but for how long? beth: when we are looking for companies, we look for the companies capturing the hearts and minds of the consumer. that isg differentiated, something that amazon is not quite doing right now. we are seeing a trend to investors having a closer eye on profitability and sustainability. emily: are they though?

lyft is losing have as much money as it is making. yeah. especially in the e-commerce space and where scaling -- there feels like there is caps on the scaling pieces of some of those companies -. emily: 8000 bc deals last year. year.vc deals last 2% went to women. such a fraction. do you think it'll take longer? beth: i think it will take longer. emily: what are you doing in your firm to try to make sure you see more women entrepreneurs and surfacing all of these people who may have been overlooked? beth: one, we are spending more also havingg and someone like me, which looks like some of those female entrepreneurs, helps the pipeline as well.

in the last year, we have increased the number of female founders we've backed. quick 30 seconds, what are the hot trends in 2019? where will you put your money? beth: i spent a lot of time in the consumer space, but also the backend businesses, supply chain, customer service, how do we get these companies up and running and continue to scale? as we think about the profitability piece, make them more efficient. emily: thank you for stopping by. has secured new funding from softbank. the company will use the investment to take on its rivals, next. this is bloomberg. ♪

emily: this art has been created by artificial intelligence. this art, collectors wanted. there will be a sale in london next month. four months ago the first piece of art was sold and a human was involved in that case. this new artwork was totally created by a computer. leading right's heller, grab, announced its raising of $4.5 billion in financing. bloombergident told what they plan to do with the new funds. >> we are very excited to have closed $4.5 billion in new funding. this is a new record, the largest private financing of its kind in southeast asia. we continue to see tremendous investor support and interest in joining around. >> you've raised more than $7

billion. why do you need additional funding? ming: if you look at the southeast asia reading -- region, it is an incredibly dynamic market where the consumer class is rapidly digitizing. digitization, we see tremendous opportunities to grow our super app platform across every market we operate in. if you look at the go to market strategy last year, our revenues doubled to over $1.1 billion. our food delivery business is now the only regional platform for food present in six different countries. revenues improve -- revenues have grown in 2019. our payment businesses is the only -- business is the only platform across all countries -- all of the six countries. as we think about this financing, we will be investing a bulk of the capital into

continuing to develop our super app services, particularly in food delivery and platform in asia -- in indonesia. >> in indonesia, can this be a game changer for you in indonesia? our: indonesia is one of strongest and fasting gross markets. in ridesharing, we have 60 to 70% market share. our food delivery business has volumes.e than 10x in see tremendous opportunities to continue growing, not just in asia, but in cross -- in indonesia, but across the entire region. >> what is the valuation of grab? >> we don't disclose valuation, but i will say we have been pleased with the valuation investors have given to us in this round. we aretwo, i think pleased with the universal

support we have seen from investors around the world. >> m thank you for joining thank you for, joining us. how much of this money goes toward firming up your trajectory for profitability, and in other words, when would you make profitability? say wet of all, i will are already profitable in some of our most mature business segments. in our more mature markets. in the markets where we are not yet profitable, we have a clear line of sight to getting there. i will mention what makes us the otherrom some of global ridesharing companies is the platform of services we offer, and the ways we are able to engage with our customers is much broader than purely ridesharing or food delivery alone. longer-term, the economics on our platform will be significantly better than ridesharing companies around the world. >> when you look at the

businesses and you take a look at exactly what will be profitable -- when you will be profitable, is there a point where you will say ok, now we will ipo? how far away are you from that point or the ipo itself? ming: we certainly do not have plans for an ipo at this point. that, we haveind a healthy balance sheet, particularly after this financing. see tremendous opportunity to continue growing our regional super app platform. for now, we are laser focused on executing our strategy. this naturally brings me to the obvious question, which is, how closely are you watching lyft as it comes to the market? ming: we're certainly rooting lyft.th ipos for uber and

those ideas will go a long way toward educating the public markets about the sector we are in. having said that, a very distinct difference between our business and the ridesharing companies globally is our focus around a much broader platform, not just solely ridesharing or food delivery, but also grocery deliveries, mobile payments, much broader ways to monetize engage with customers. been scrutiny in terms of regulation as well as new challenges to the business model, especially in the u.s. do you see this environment happening here in asia? ming: we don't see the same dynamics happening in southeast asia. if you go back to one of our core missions, really around how do we enable entrepreneurs to thrive across southeast asia, our goal is to create over 100 million entrepreneurs on our platform. whether they are drivers,

restaurant tours, people that operate their own businesses. if you look at the average , acrossof our partners the region, they generate roughly 30% plus higher incomes than the national averages. as we continue to promote and enable entrepreneurs him -- entrepreneurism, that is the key to advance our platform. >> we look at all of the businesses and there has been criticism you have too many silos. how do you respond to that? we don't think of ourselves as a sideload business -- siloed business. we think of ourselves as a business that provides the most relevant services to our customers and markets. some of those markets may be ridesharing, other markets may

be food delivery and mobile payments. it is around how do we identify and best understand the customers in achieve -- in each of our markets in for by the most relevant services to our customers. we saw go? merging in singapore. is that causing a dent in your business? ming: we love competition. we are fond of saying iron sharpens iron. i don't believe we would be where we are without having great competition in the past. we are very battle tested. emily: that was the grab president ming maa. coming up, huawei's they in court. the company's cfo knows when her extradition battle will officially start. we will discuss the latest, next. and tesla is not off to a hot start in 2019. what is to come. this is bloomberg. ♪

this is bloomberg technology. inbring you the latest global tech news. i'm emily chang in new york with shery ahn in sydney. let's look at the global tech stories of the day. >> singapore's data agency is proposing the people be allowed to take their digital -- digital data with them with a leave the company. the agency says the data portability would benefit consumers. the proposal would be an amendment to the country's privacy laws. forced technology transfers in

china will soon be a thing of the past. they are trying to pass a law to make things in legal. -- illegal. the move could come as early as next week. samsung's portable phone is not available until april that is not stopping the company from creating more models that full. they are said to be developing a clamshell device as well as another that fouled away from the user. others are working on full double phones. introduced its first and last month. >> may 8, that is when extradition hearings for huawei 's cfo begins. this comes the day after it was reported that the telecom giant

intends to sue the u.s. government. they claim the u.s. is out of line by banning the 5g network. they are also suing the canadian government for allegedly violating the constitutional rights. for the latest, let's go to their headquarters in china where we are standing by. the headquarters have paper cups asking for her return. i put my hands on one of those cups yesterday. they do exist. this is a multipronged counter attacked by the company. it is a push back or a campaign -- counter attack by the company on the legal front and we outlined some of those cases there. also on a public relations front as well. opened up their

campus to us. they are trying to portray themselves as an open and transparent company that operates privately and separate from the chinese government. on the legal side, we have heard to sue there looking u.s. government over what is effectively a ban on the carriers using their equipment. canada had that case in where the canadian government has been sued for what she believes is a violation of her rights. this is a legal push and a push on the public relations side by the company who are trying to commit themselves to argue against the u.s. campaign. the u.s. is trying to push back and fan the equipment saying they pose a significant security risk. >> how is this all being covered in chinese media? they are clearly watching

this closely. it is fair to say there has been an outpouring of support for the cfo. you have two canadians jailed in beijing. they have had no access to lawyers. the lights are on 24/7 and they have had little access to the consulate as well. the concerns about those individuals were articulated outside the courtroom in canada a few hours ago. what is being written in the press, they have to be careful about how they portray this. and there isathy public support for the company. >> what about u.s. allies?

the u.s. government has been trying to argue that the company is a security risk. how is that being perceived by u.s. allied -- allies who are being lobbied by u.s. officials? a real conundrum. particularly for companies like germany and the czech republic and poland who are wrestling with these issues. they want to have access to what is a cheap and high-performing gear from the company. they want to maintain the security alliances with the u.s.. we heard from mike pompeo and mike pence saying that essentially, if you were to incorporate huawei technology, the u.s. would not be able to do business with you. in europe, this debate is well underway. countries like the u.k. have their own system set up overseeing some of huawei code and hardware.

clearly, the u.s. is determined to try to pressure its allies to block huawei as much as possible. is on the counteroffensive. >> it is interesting that the extradition hearing is coming up after a trade deal is reached between the u.s. and china. does that mean that china has less leverage in those negotiations? china will be paying close attention to the comments of president trump who has suggested that he may or could intervene in the case if trade talks were going well. that has concerned other officials in his administration. china is aware of those comments and president trump. ensure out of his way to that there was a softer set of punishments for zte.

they are aware of that as well. something that potentially china might put on the table as you get closer to a potential deal. now, our reporting suggests that trump is keen to sign off on this deal in mar-a-lago by the end of march. >> you will be following that as well as us. thank you so much. much more ahead here on bloomberg. stick with us. ♪

the semiconductor reported earnings that beat estimates. the british chipmaker told investors to expect a decline this year because of changes and its relationship with its largest customer, apple.

milliongned a 600 dollar deal to license the technology. it is also acquiring certain assets area tesla did not have the hottest start in 2019. shares are down and stores are closing. the sec is ramping up its fight to get elon musk to pump the brakes on his tweets. morgan stanley is saying investors should temper expectations of profits in china. guest are here to talk about it. tell us what is happening in china. there have been model threes held up at customs. >> it is hard to say how serious to take this but it is a labeling issue where labels were there were labels not in chinese language.

it all makes me think back to a few weeks ago when our san francisco reporter did a story about how tesla was in the midst of a mad rush to get as many cars over to china as it could. they were worried about the idea that the trade war could ratchet back up and the tariffs could go get asthey wanted to many cars there as they could. it seems that they missed some steps along the way or were a little sloppy. >> you don't think it is tesla becoming a victim of the trade war? >> i don't think so. that remains to be seen. you mentioned the morgan stanley report. i think it is interesting that everyone has thought china is the biggest auto market and the biggest ev market. therefore, once tesla gets a cheaper car in the market they are going to do great. one investor at morgan stanley said not so fast. aboutwere just talking elon musk being a diplomatic

liaison between the u.s. and china. how he could to over trade tensions. side of theanother coin which is that elon musk could get caught up in trade tensions and that is what we are seeing. another part is that demand for the model three is so up in the air with tesla closing stores and people raising questions about how many people will buy these cars on the internet. then you put china in the mix and it is not great for tesla right now. >> are you concerned about this issue like morgan stanley? >> not so much for the demand for the car. behink demand will still strong. it is an incredible automobile. look at how far tesla has come. to build a car company from scratch takes a lot of work. factoring andade put out an incredible car and built distribution channels. the car is incredible. the brand equity is incredible

and i think there is a lot of demand. you are there visiting the tesla factory. what did you see of significance? in the context of elon musk seemingly deciding to close the stores and go online only? >> the choice to close the stores is to reduce costs to deliver the cars that can start at $35,000. toyota psion sells their cars over the internet even know you go to a toyota dealership to pick it up. prices are sold at fixed just like tesla's. precedent.ithout the thing i think we might miss out is that if you drive the model three, it is impressive. you can't even get to know how

impressive it is unless you drive it. an electric car drives differently than a traditional gas car because when you throttle back on the accelerator, it slows the car down. you don't have to use the break as much as you do in a traditional car. it is different and a lot of fun. us, you context for don't know how the car drives if you can't test drive it. >> that is important. they are closing most stores and they are talking about how the stores will convert to service centers and that is a big issue because it is hard to listen to elon musk talk about closing the stores to cut costs while at the same time putting emphasis on the idea that they will improve their service which has been showing signs of strain. to their credit, they have been delivering more cars. it is hard to get the infrastructure to handle repair work.

have a lot more cars out there than before. this idea of doing a 180 on your retail strategy, that's what is freaking everybody out. >> someone earlier said elon musk needs to step away. from the public discourse and tweets. it is not only that he is so polarizing, there are people who love him and don't love him. there are people who do and don't love tesla. why is there no common ground? >> it gets to some of what makes him a good marketer is that he is good at creating the polarization and painting a picture of the future that is so fantastic that it excites people. in doing so, you end up tuning -- turning people off area it is imagine him -- stepping fully away because he has been so effective at selling the car and selling his vision.

without his twitter feed, what do you have? they don't have commercials, they don't have stores. you need him out there or it will be hard for people to learn about this company. people drive this car and they like it. you can imagine a word-of-mouth you want to test drive your friends car. it is hard to understand -- to sustaining without spending money on advertising. >> let's take the tweet out of the equation. do you see a lot of crazy demand? >> the demand for the car is there. it is a quality car. it is a good value. people like them and tesla has a tremendous -- tremendous first mover status in the ev space. idea that tesla has not done traditional advertising and has been able to do the volume that they have is impressive.

predominantlyis the sales in this country have been in california in their theyard where they do have greatest presence from a real tale perspective. where they have a lot of stores and people already were inclined green vehicles. we saw the previous sketch on a year ago -- decade ago in california. it was a phenomenon there and not in the rest of the country. whetherns to be seen the initial demand we have seen for tesla that has been impressive for the model three, whether they can carry it over to the rest of the country once they get past the first movers or initial people who are excited about elon and this company. >> do you think the model y will impact the model three? will it cannibalize demand? in elonu are sitting

musk's shoes. he is excited about getting people excited on his products. people want the model three and then they see the model y. >> thank you for joining us to talk about this. larson takingrie on online trolls over the captain marvel role. disney was prepared. that is next. ♪

amazon is andy biggs experiment with pop-up stores. they plan to shut 87 kiosks

located inside shopping malls and stores across the united states. the closings are expected to be completed by the end of april. it is not clear whether any amazon pop-ups outside the u.s. would be impacted. disney was ready for online trolls attacking brie larson. actressio and the responded by pictures of her workouts on instagram. itney is not saying what is spending to fight the trolls. to talk more about this is a software engineer who is running for congress area you are not just any software engineer. you have been on the receiving end of online trolls. what do you think about this? i'm sure it does not surprise

you. >> it is a familiar story. we are here with ghostbusters. anytime a woman steps forward and tries to put her toe in the water for a male-dominated field, we are right back here. social media friends have been working hard. that theygo to show are just not getting it? >> your first story was about facebook moving toward privacy. i feel like part of the backlash of women being exhausted or being targeted online, it makes sense that people want to move toward more private profiles. usis exhausting for all of dealing with this. >> you think that privacy is a gender issue? >> i do. it affects men as well. that -- they are trying to get it under control will seezuckerberg

what private facebook looks like. we need legislation? >> i think there is a role in washington for us to address what women and the tech industry -- what we face and what they face on the other side. big promises from facebook and twitter and read it and all of these companies that they are going to address the situation. in 2019,ooking at this it is hard for me to point to one thing that has changed for women in the tech industry. i do think washington has a role to play. >> what does that regulation look like? i know this is something you campaigned on. >> it starts with letting these companies know that washington is going to take it seriously. theye videogame industry, held hearings about the in the 90's. the industry look at it and said if we don't get serious about this, they are going to regulate us. selfour industry

regulated. it works amazingly well. if you have people in washington sitting on the subcommittee looking at this, that threat of real legislation coming down the pike will cause these companies to finally do the right thing. you are an important character in the book. how much progress do you think there has been for women in technology? believed stood up, i it was going to change the tech industry. i wish i can tell you that would happen -- little fundamentally changed in that field. just did a story about have venture capital funds, only 2% went to women last year.

this is not because women can compete, we are just not getting a fair shake. we have a lot of work to do. you are back in the saddle and running again. how are these issues and how is technology going to play in your 2020 campaign and what will you do differently? >> big thing i learned in my 2018 race, i got 17,000 votes. you cannot run a political campaign like a startup. i come from the start of world. i thought that formula would work. like having a small team of people of shared values with. this time, we are being more traditional. we are hiring people with decades of experience. >> what will be your tech platform? >> it is almost amorphous but people in tech want someone in washington to understand their

issues. they can have a conversation about whether it is cybersecurity, harassment, trying to launch ipos, all of these different issues. i come from that field so i understand these things. they are looking for technological literacy. >> it's going to be a year and a half of fighting a lot could happen in that time. we are potentially waiting for privacy legislation. what is the single most important issue to you? >> what people in my district are facing particularly with wealth inequality and not being able to make a living wage. that is the number one issue. kitchen table issues. health care, sending your kids to college. thank you, it is so great to see you. it for this edition of

bloomberg technology. i will be back in san francisco tomorrow. it has been fun in new york. thank you for watching. this is bloomberg. ♪ this isn't just any moving day.

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>> good morning. australian markets have just opened for trade. >> i'm shery ahn. i'm in hong kong. looking to daybreak, asia. to daybreak, asia. >> our top story, and low slow start for equities in asia. is cutting its forecast for europe and asia. president trump wants a swift trade deal with china to give the markets a boost and t