♪ emily: i'm emily in san francisco. this is "bloomberg technology." in the next hour, lyft in reverse. shares fall after investors highlight concerns about how fast ridesharing company can start making money. tesla, after a tumultuous 2018, will give new production numbers this week. bloomberg's tracker shows the estimate looks unusually high.

facebook ceo mark zuckerberg calls for more government oversight of social media companies but the comments were met with skepticism as more lawmakers call for big tech be broken up. on its second day of trading, lyft shares have fallen below the ipo price. investors are warning it could be an ominous sign for other uniform -- other unicorns looking to go public, and raises questions about lyft's growth trajectory. ives,g us to discuss, dan who currently has a neutral rating. shares dropping 12% today, -- down from the end of last week. >> it is amazing how a little bit of where the prices sat and

expectations setting has sort of fallen away from them. clearly, the market just hasn't as -- as busy astec enthusiastic as the opening. people looking at the company just trying to figure out what howiples they should have, do you think about a company, a story-based narrative. the bulls and bears figuring out where they fall. it is sort of a natural settling process. a gut dan, you call this and for other companies, a gut check. do you think this is a fair valuation? dan: it has been a mini nightmare scenario. to roll out, to drop the ipo

price second day, was something that i think not just tech investors, but everyone in the valley are watching. the big issue here is profitability. that is the fundamental issue i continue to hear from investors all day on valuation. we have an eight hour price target. it continues to trade down now that the fears about valuation continue to speculate. will: you don't think lyft be profitable in our lifetime? >> they are losing a billion dollars every year. we seem to be way behind uber. that seems to be the issue here for investors, the growth that the company has is phenomenal. it is a trillion dollar market

opportunity. ,rom a valuation perspective what do you pay for that? i think, this continues to go lower, it does get more attractive, but profitability is really what caps the valuation. that is what we continue to hear is putting more and more pressure on the stocks. emily: on friday, the ceo said two things. one, that lyft would be profitable. two, that self driving cars are a long way off. if profitability can only come with more self driving cars and fewer drivers, how do you square those two things? 's foundersthink lyft have given a clear answer on how they get to profitability. some people say, they must mean that self driving cars came around.

other people are looking to figure out for themselves, it is making it harder for investors know what this story is to get to profitability. hang on a moment because we are getting some breaking news about brexit. parliament has been voting on four alternatives to theresa may's plan, four versions of brexit. we are seeing those votes start to come in. guy johnson is standing in -- is live. guy: the speaker of the houses is reading out the results of the four votes that are taking place on the four options put

forth early on. once again, it looks as if parliament is rejecting pretty much everything that has been put in front of them. rejecting staying in the customs union. parliament is also rejecting staying in the single market. arehe brexit deal, they rejecting the motion for a referendum on the brexit deal. and they have rejected the emergency -- parliament has rejected every other option, every other alternative, to theresa may's deal. it once again puts us in a position where it is very difficult to see which way forward the u.k. is going to move when it comes to the brexit process. theresa may could still put her deal back to the house of commons. last time we spoke, they will rejecting all eight

alternatives. it doesn't seem like there is much consensus. it didn't seem like there was some momentum in the direction of a softer brexit. the u.k. has to decide by april 12. what happens between now and april 12? guy: that is a good question. tomorrow morning, we will have a cabinet meeting in which theresa may will figure out which way we go forward. i'm just going through the math. these votes are very close. it looks as if we have the customs union rejected 273 to 276. that is only three boats. cabinet members have been not allowed to vote in this. single market is slightly wider. 280-292.endum, these are very close. in many ways, we are getting closer to the probability of a deal getting done. at this point in time, it is basically theresa may's deal

that is the only one that is on the table. they are very close. all of these soft brexit options are only out by around 10 votes. nevertheless, we are seeing theresa may's deal being the only one on the table. the pound has slipped fractionally. what you are seeing now is the leader of the opposition, jeremy corbyn, the leader of the labour party. he is basically saying that there are reasonably big majorities in favor of these but not enough to get over the line. the u.k. finds itself in a difficult position. tomorrow morning, we will have a cabinet meeting. ultimately, this could still go the way of a general election or a referendum. house doesnt, the not have a consensus on any of those and it does not have a consensus on any of these options. i would add that many of these options got more than theresa may's deal.

it will be very difficult to see which way we go from here. incredibly confusing, incredibly perplexing, and in london, incredibly frustrating. emily: where does this leave prime minister may? her last move was to make the ultimate sacrifice and say, if you vote for my deal, i'm out. you have some hard brexiteers for the first time say, ok, i'll do it. but now that is off the table because they didn't vote for her deal. what does this mean for her? theory, she will go when brexit happens. what we saw over the weekend was a series of cabinet ministers basically positioning themselves to take over the leadership of the conservative party, the party that is in power at this point. theresa may's time looks very, very limited at this point. the conservative party is terrified of a general election

because there's a possibility it will lose. it is terrified of producing a soft brexit because it is concerned it will split the party down the middle. any leader will have a very difficult job coalescing the conservative party, the government, and parliament at this point in time. theresa may's time is limited but she has defined expectations and is still here as prime minister. you for the recap. once again, u.k. parliament has rejected all of the brexit options on the table, showing it is still difficult to find common ground among lawmakers. a lot of questions over what will happen over the next 10 to 11 days. back with more "bloomberg technology" after this quick break. ♪

emily: this week is an important one for tesla. they will announce how many cars were sold in the fourth quarter. it is always a suspenseful day for investors, especially after a tumultuous 2018. investment tripled while still managing to fall short of the dramatic targets set by ceo elon musk. suggestsmental tool the production total could surpass 80,000 cars through march, higher than the estimated 64,000. still with us, dan ives. i want to start with you. talk to us about what the bloomberg tracker is showing us for expectations around production this week.

dan: what we were discussing with how quickly things change, where it felt like everyone was all eyes on the production numbers out of tesla, and how quickly it has changed to everyone's attention is on the delivery figures. the reason for that, the company has seemed to sort of overcome .he production bottlenecks elon musk has very famously is sort of in he a predicament where it is not just issues with manufacturing a lot of cars, evidenced by this tracker, which has been on point for some time now, it is really a point of deliveries and demand, and delivery logistics. there are concerns about with model three starting deliveries to europe and china this quarter , that those deliveries may have been held up in china.

problemy be sort of a on the delivery side that may suggest issues with demand or depending on your perspective, a problem of sort of short-term snafus with getting cars into the hands of customers. emily: what are your expectations around production and delivery? dan: fundamentally, one key we continue to view is what we call air pocket. we believe there is anything 15,000 model threes in transit in europe. did they get to the customers in time or do they sort of crossover into q2. what the street will be focused on is the delivery number but any sort of team leaves with what we see in transit number as well as 2q. --duction continues

production is obviously ramping to a point we feel very comfortable with. now the streetht is glass half-empty. the question is this week, is that a tied turner? we continue seeing second half of the year that demand looks a lot stronger, but this is sort of a light production period. some: musk has said that 10,000 cars could be held up in customs, held up in transit, which could have a big impact on some of those numbers? the model three hit the port in belgium in february. those need to hit customers driveways by march 31. we believe those are really the issues that investors are focused on in terms of how many cars are focused on shifting over. is key to model three

demand at the first half of the year. obviously, the u.s. is soft, and that is where the second half as to come back with the lower-priced model three. emily: meantime, it is april fools' day, a day when elon musk historically makes a joke. he is now facing this suit with the sec, the sec trying to get a judge to hold him in consent -- hold him in contempt. have we heard anything from musk today, any jokes? craig: i'm going to knock on the table and say he's been in his best behavior so far today. praisedernoon, he security researchers findings of some flaws with autopilot and said they did good work. interestingly, some of that work included putting markings on the road to sort of trick autopilot to potentially go into the other

lane of traffic that is going the other direction, which sounds pretty scary. tesla sort of downplayed those findings but it was interesting to see musk on his twitter feed praising the work done by that group. he had an eventful weekend but so far, so good. i guess we are now after the close here. just a few more hours for him to behave himself and not get into further trouble with the sec. emily: on thursday, that hearing will happen in federal court about those contempt charges. we will bring you that story and any headlines as we have them. thank you so much. coming up, apple finally gets a glimpse into its video streaming strategy. after years of anticipation, many questions still remain. what investors are still act -- still asking about apple tv plus. this is bloomberg. ♪

ago, apple a week held a star-studded event about new subscription services, but the event prompted more questions than answers. they brought in a parade of celebrities to bring in its new streaming service, the company was light on some key details including pricing and subscription models, leaving some questioning how it intends to compete. still with us is dan ives, and also dallas. streaming, into otp you found some things that were unexpected, one that apple could charge more than netflix for its service? >> one thing we saw is that the majority of adults are now streamers. a heavy appetite for more than one content provider. the average three different content providers.

it is similar across cable and television. 15. adults watch about channels and spend about $100 on cable. they are also willing to watch 15 streaming channels with about $100 in total, a maximum of about $24 for subscriptions. the average consumer is saying, we want more than one device, that shows a good competitive landscape. price i assume a higher point would not be good for your model, right? think it is agh i great point that dallas makes, i think initially we see that a dollar or two dollars less than netflix. shareem, it is a market arms race they need to get to.

right now, the big issue is obviously details. deep -- down to really original content where they are spending $1 billion a year as opposed to the $20 billion that netflix, amazon, and disney are spending. we do believe that a large content acquisition is something that will finally happen at apple in 2019. apple rarely makes big acquisitions. what kind of acquisition are you looking at? dan: it obviously beats the last one in terms of m&a, $3 billion. we talked about cbs viacom as a potential acquisition candidate. obviously the longshot is netflix. right now, when you look at that

services business, the $50 billion per year, the valuation to $450 billion. they cannot trip over their shoelaces on services. right now, they need to put more fuel in the engine for content. we see them doing it with m&a. emily: something else that you point out is you believe content isn't necessarily king, so the fact that they don't have all the original content isn't necessarily a game changer. dallas: i agree with dan, that distribution here is king. the biggest news is they are moving away from the device and hardware strategy and allowing ownle to access on their platforms this year. have: but apple has to shows that people want to watch. one thing they have is a

billion subscribers and day billion devices. people are watching more streaming content on their smartphones than devices. netflix doesn't have a single top 10 show. not a single netflix, amazon, or hulu show ranks as a top 10. the number one show on netflix is "friends." i think the key is the distribution not all -- distribution model and i completely agree with dan. about what do you think that, that maybe content doesn't matter that much? dan: i couldn't agree more with dallas. it comes down to 1.4 billion active devices, which is why we ultimately believe the key here and how we get to 100 million potential subscribers, is distribution. that continues to be their position of strength. content, they are definitely playing from behind the eight ball. right now, distribution first,

then content. that will be the focus for coke and company. their back is against the wall. this is, in our opinion, going to be the most defining period for cook and apple in the history of the company. their future will be determined on the success of services and monetizing that install base over the next decade. dallas, users are overwhelmed. dallas: too many choices. emily: i feel like i spend 30 minutes a night just trying to figure out what to watch. dallas: i think that's what apple does really well. they organize content in a way that is really user-friendly. that was a real key, to make sure all the content you watch, whenever skinny bundle you want, hbo now or whatever you have it wrapped up. dallas lawrence, dan ives.

to have you. coming up, bring on the regulations. so says mark zuckerberg. -- thek down this facebook ceo's call for world governments to make new laws for the internet. ♪

emily: this is "bloomberg technology." i'm emily chang instruments is go. in april last year, mark zuckerberg told congress the writing was on the wall when it comes to policing social media. >> i think it is inevitable there will need to be some regulation. my position is not that there should be no regulation, but i think you have to be careful about what regulation you put in place. emily: over the weekend, we got insight into what he thinks those rules should be. zuckerberg made the call for global internet regulations in a facebook post saturday writing, i believe we need a more active by updatingernments

the rules for the internet. we can preserve what is best about it, the freedom for people to express themselves and for entrepreneurs to build new things and protecting society from broader harms. director for enforcement policy of the open market institute is with us. she served as assistant attorney general for the state of new york. studio, we have selina wang. tell us more about what mark zuckerberg is arguing for and who would create these global internet roles? selena: the sentiment here is mark zuckerberg is trying to get in front of any regulations that may come. it is into facebook's self interest to have a strong voice. whatever regulation comes, inevitably it will have an impact on facebook. he is calling for a new global internet regime. he touches on four key areas. harmful content come issues like abusive content, talks about he calls forgrity, gdpr to be spread around the world and data portability which

talks about allowing few -- alone users to freely take information from what network to another. emily: this is something you or the open market supports? fory: i think it is silly zuckerberg to be out there promoting regulations to fix problems that his business model is causing. he has the power to fix these problems by changing his business model. the targeted advertising business model is the reason why fake news and harmful content is being amplified by facebook's rhythm. it is the reason why facebook is collecting so much data on us that foreign agents are able to target us on social media platforms. fix these problems, he doesn't need regulators to fix it for him. emily: selena, there has been a lot of criticism. mark zuckerberg's plan. we have one lawmaker saying row number five should be mark zuckerberg does not get to make

the rules anymore. facebook is under criminal and civil investigations. it has shown it cannot regulate itself. fair, he is not saying facebook should regulate itself. he is saying facebook cannot regulate itself. selena: i think the criticism is doesn't it amount to any more than a glorified public relations document that is trying to punt off the blame onto the government and shield itself from any future criticism? talking about these regulations are run harmful content, this is beneficial to facebook because inevitably, mistakes will happen and when they do happen, they can say we were following the line. the other issue is around things like global complex regulatory regime. something like gdpr has been argued that it actually helps the larger players more than smaller players because it is cumbersome for a small company to have to comply with these rules. and by making this a global standard, it could increase facebook's wherewithal. emily:, facebook's behaviors

have been counter to what they have been saying. this backend integration they are doing of whatsapp come instagram come and facebook messenger increases its power over user data and brings it into question issues like data privacy and makes it harder for regulators at facebook to moderate what is going on if they are encrypted and don't have access to what is being said. emily: is it possible that both could bethings helpful, that facebook could do more to regulate itself, but also that governments around the world could do more to cooperate to regulate facebook? sally: they think governments around the world definitely need to regulate facebook. i don't think they should take their cues from mark zuckerberg. i think there are options, things like interoperability that could open up competition. i also think these have measures

that he knows will not be effective, like the gdpr has not been very effective at accomplishing its goals, so he is proposing things that he knows will not really fix the problem. don't require facebook to change the way it does is business and want impact facebook's profitability. regulators need to get involved but they do not need to take advice from mark zuckerberg. emily: what will fix the problem? sally: i think interoperability would be a big way to allow entry into competition, which the -- forings like example, verizon wireless phone can communicate with and at&t phone. allowing communication between networks could allow competition to open up. data portability will not do that. where will i take my data to? any to be where my friends are. that is my interoperability is a better solution. competitorspis for in a secure way is another

proposal that has been made. the integration of whatsapp, instagram, and messenger that is planned should be prohibited by the ftc. and those deals should be online. -- unwound. there are questions about whether the ftc would have oversight of this marriage of the backend of facebook messenger, instagram, whatsapp. how are we expecting these investigations to play out? it will likely be years. right? be difficult to, -- keep up with the global investigations are going on. the ftc is looking into these issues. potentially unwinding parts of facebook. but that will be complex, difficult, and drawn out. the backay integrating and makes it harder for regulators to be able to separate the data. there is concern that section 230 and may be under pressure. this is part of the lot that

essentially exempts the social platforms from being liable for the content that is on their platforms. if that was rolled back, that could have an impact on facebook. we are already seeing other governments move ahead with regulations even as the u.s. stalls. we reported that singapore is coming out with new laws that would hold companies like facebook liable for false information, for some to take it down and show what -- force them to take it down and show what corrections they are doing. emily: are there any other companies of doing it right or have a good model that other countries could follow when it comes to creating some sort of govern bigo better tex, given big tex clearly is not doing a good job of regulating itself? even though you and many other people think they should. sally: i think gdpr had promised. unfortunately, i do not think it is being adhered to and it is not being enforced. i think there are things you can learn from the gdpr.

i think the california privacy measure also has promise. is concerned that big tech out there promoting other laws and states like washington state with the goal of eventually getting a weaker privacy law at the federal level to preempt the stronger california law. from the antitrust perspective, the german authority did a very innovative case where they said facebook abused its dominance by violating the gdpr and collecting too much data from consumers. i think they have a good clue of where things are going. the year p.m. commission has at least enforced its antitrust laws against tech platforms. although it has not done a great job following up on the remedies. the openlly hubbard of markets institute and our selina wang, thank you both. a german banking app backed by peter thiel and another is taking aim at the united states. n26 will try to woo young consumers.

itscompany has changed strategy and decided not to offer clients a wide range of banking services. the ceo says regional expansion is more important than product. -- product expansion. a software company wants to help businesses hold onto employees. how it is using ai and machine learning to do it. who hacked jeff bezos? has a new theory and it is a bombshell. we will discuss. this is bloomberg. ♪ scuss. this is bloomberg. ♪

emily: it is time for our work shifting series where we look at how businesses are leveraging technology to improve the workplace. peakon is embracing machine

learning to build what it claims to be the largest real-time database of employee voices. peakon, and employee retention platform lets managers collect feedback through surveys i can be used to address roadblocks box and compare engagement levels with competitors. millionaised $35 bringing its total series than -- funding to $67 million. casper.us to discuss, thank you for joining us. tell us more about how it works. really, nowadays we --peakon is an employee experience platform. we help companies really gather feedback more in a continuous way. and then we use really intelligent -- intelligence to provide the inside so companies can take the priorities, make a better employee engagement and ultimately help employees grow

and stay in the company. emily: can you give us examples of how the ai has improved employee engagement? kasper: yeah. in order to build the ai, you need to create this continuous movement. takent know if you have one, but most people have taken an annual survey. if you look at the survey, the real thing is that it really looks backwards. it looks at the last 6, 9, 12 months. everything happens in 12 months nowadays. in order to start looking forward, we need to have a more continuous movement. monitors their employees every week, every month, every quarter. in that way, we can apply intelligence to it, so we can predict things going on and we can even generate manager training when you need it. emily: what trends are you seeing in today's workforce? kasper: the overall trend is technology in the past decades

have transformed the way we are looking at all of the other things in our business. way we understand and continuously improve the experience for our customers has long been the thing. that trend is coming to the employee side of the house. for instance, we start seeing heronies like delivery start reporting that -- of their peakon in their reports which is really interesting because of course the people side of the business is a key metric in order to create a sustainable business over time. emily: you did a study about female led companies. tell me what you found. kasper: we have a person in the world that answers every question. we collected tremendous amount of data. data isy all of that comparable across the entire customer base. gender, age.ted

what we did was look at, what is the difference between companies that have more than 50% women and their leadership versus companies that have more than 50% men? drivers that are driving engagement. if you look at those, there was one thing that stood out. everything regarding strategy came out very much in favor of the women led side. really, the interesting thing here is that the strategy in a company seems to be much better in companies where women are in leadership, and more so also that they believe in the products woody's -- which is supporting this. whether it is because women are in leadership or a great strategy. nonetheless, it is really an important finding. emily: important information. employees need to know. thank you so much for stopping by.

that caused issue flight delays at multiple u.s. airlines over monday has been resolved. that is according to the faa. delta, united, jetblue, and alaska were among the carriers affected. they were using a flight planning weight and balance program called aero data. still ahead, all the riches in the world could not keep jeff bezos from getting hacked to at the national enquirer or a foreign power? we will make -- breakdown what his security team thanks. that's next. this is bloomberg. ♪ this is bloomberg. ♪

emily: amazon says it will cut prices on hundreds of items across aisles throughout whole foods, starting on wednesday. the company said prices will be 20% lower on these items on average with even deeper discounts for prime members. ago thatder two months

washington post owner and amazon ceo jeff bezos took to media to accuse the parent company of trying to blackmail him with his own private text messages. in the post, lasers pointed out the washington post coverage of the murder of journalist jamal khashoggi in a consulate seemed to "hit a particular nerve." taken upve been another level thanks to his personal security consultant. he made the following accusation in a daily beast offset -- op-ed saying "our investigators concluded with high confidence that the saudi's have access to bezos's phone. it is unclear to what degree, if any, ami was aware of the details." to discuss the latest, we have spencer in seattle and in the studio, brad stone. what is gavin to becker saying here? he is disputing the

prevailing consensus about this whole episode which i call the occam's razor. sanchez'shat lauren brother -- emily: the woman who he was alleged to have had an affair with by the national enquirer. brad: right. the consensus is her brother provided all of the text messages starting in the fall of last year to the national enquirer. i think bezos and to becker are frustrated without explanation. they believe and this has been clear since jeff's post that saudi arabia, the country and its leader, were involved. they see a couple discrepancies with occam's razor solution. michael sanchez actually claims when he was contacted first by the national enquirer, that they already had some text messages. he is pointing to these other forces that may or may not be at work. to becker says he turned information about this over to u.s. law enforcement. emily: gavin makes these

proclamations but does not provide evidence. does that undermine the argument at all for the point is trying to make? spencer: absolutely. at this point we do not know if a bezos is buying the narrative of his choosing through an intermediary or if they have evidence to back up these claims. all of the evidence he put in his 2000 word, you can only describe it as a conspiracy theory at this point, the circumstantial. it is all interesting and intriguing, but show us the goods. emily: it certainly is intriguing. why? brad: one thing that has changed as i believe one or two weeks ago, the new york times had a fascinating story about these companies, many former law enforcement secret private security folks from israel and united arab emirates who now had companies, they mentioned a that ouramusso is one, sleuthing on behalf of governments.

and basically stealing communications. points to that story and says this is possible, this is happening. we know this contributed to the murder of jamal khashoggi and perhaps a bezos was targeted. why are they doing this? i think they're frustrated with -- frustrated with the simplistic narrative. emily: ami is saying despite the claims of mr. tobacco or, american media continues to review the unsubstantiated claims that the materials for our report were acquired with the help of anyone other than a single source who brought them to us. sanchez'sauren brother. when the story broke, to be fair, most of the texts that were published seemed to be from her side. how do we explain that? well, i'm sorry, how do we explain that the texts we have seen so far is from bezos to his -- emily: right.

spencer: that is a major thing thing. if the saudi government had access to jeff bezos's phone, is this the best they could come up with? that is a very good question. by the very nature of what has been revealed so far, it does look like the person with access to the messages as someone who potentially was close to lauren sanchez. brad: it is a great point. but michael santos is not denying he provided some of the texts. the question is, where did it originate? michael sanchez says the national enquirer already knew about it. this is certainly what gavin to becker, the theory he is proposing, the more complex theory. it almost comes off as juvenile. like who started it? the point.what is brad: right. i think it is -- who knows? amazon spends $1.6 million on jeff bezos's personal security. theer way, then that is

financial disclosures, it is kind of amazing a lot of people paid very well to do their jobs for protecting this executive. clearly did not do their jobs properly. story,spencer, another amazon saying they will lower the price of goods at whole foods across the board. what do we know about this? spencer: we know hundreds of products, that is a small fraction of their inventory, we know whole foods remains more expensive than most other places you can buy your groceries. brad, jeff bezos still has a job. what do you make of this in the context of the larger amazon narrative right now? brad: the whole foods price lowering? that groceries remain a 10 year plus work in progress. they have been trying their own services, they have acquired whole foods. they do not have much to show for it. posted sales have been basically flat, a little down last year.

they continue to try to try new things. innovate new kinds of store formats. and lowering the prices to try to choose that particular business segment. emily: brad stone and spencer soper, bring us more juicy details please. thank you. shares of roku jumped 7% in monday's trading session. the price target was saved to $76 from $63, which published a new report saying it is seeing positive momentum with the company's platform business. a trend that could lead to estimates being revised higher. keybank added that the engagement on the platform remains strong and they see minimal impact from apple's recently announced streaming service. 15 years ago on monday, google launched what some people thought was an april fools' day joke. it launched with a than a whopping one gigabyte worth of was dozens ofthat times more than its competitors back in the day and more exciting, the fan blocker.

it has become one of the world's top female platforms -- email platforms. to clean out that spam folder. google is giving its android users to new features -- two new features, and a send later. -- creation of gmail rees raised privacy concerns as it could access keywords in your mail and come up with advertising's tailored to your inbox. that is a debate that still rages on today. that it -- that does it for this edition of "bloomberg technology." i will be anchoring the show from boston and be with natasha lamb, joining us to discuss the gender pay gap and equal payday. ishe is a big fake -- facebook shareholder. bloomberg tech live streaming on twitter, check us out on technology and follow our network on twitter. this is bloomberg. ♪

bloomberg. ♪

>> welcome to "daybreak australia." >> i'm shery ahn in new york. >> and in hong kong, we are counting down to asia's major market open. >> here are the top stories we are covering. the sterling falls as the u.k. parliament rejects options to replace the brexit deal. the split is 11 days away. and political action in australia, handing down the last budget before the election. an