♪ emily: i am emily change in san francisco. this is "bloomberg technology." coming up, data on millions of facebook users publicly exposed on amazon's cloud servers. we will speak with the cybersecurity from the discovered it. as we wait for tesla's first-quarter numbers, we look at how the carmaker can turn

things up in 2019 despite the controversies and court cases. says new tech regulation from europe has had a positive impact. bloomberg in an exclusive interview from toronto. we begin with breaking news out of the u.k., where lawmakers are voting to block the u.k. from potentially crashing out of the eu without a brexit deal, voting to block essentially and no deal brexit. will be very significant, if passed. theresa may would be required to come back with the proposed extension date for lawmakers to vote on. you can see live pictures their of lawmakers voting. we are awaiting the results of that vote. to bring in our bloomberg international government executive editor. boating has started. what are we expecting to happen? >> they are trying to rush through a bill and one day, so

there are 11 amendments to get through along with votes. then a vote on a third reading, so 14 boats. , andwill move quickly those votes will be uncontested. there are a couple of amendments important to watch, including one that stops the government from seeking extension beyond june. the ultimate vote is whether parliament will vote to rule out a no deal brexit. emily: how long are we expecting this latest low to take? -- vote to take? >> 15 minutes, but several will a nod ofh with just heads uncontested, so another hour or less for that. if that comes through, because previous votes in parliament against the no deal brexit have -- this is the

first time it would lock them into that through law. theresa may and jeremy corbyn are sitting down and chatting about a possible way through and a possible direction towards a softer brexit. that is something we are watching closely as well. emily: let's walk through these two scenarios. the first is they vote down and no deal brexit. what happens? >> that is a plus for theresa may because it could force lawmakers to vote for her deal. if they can't reach a deal, they are facing a long delay, and that could risk brexit being called off altogether, especially if there were to be another election, so those who want brexit see the only solution is to vote for anything , even if it is not what they truly wanted. emily: you can see lawmakers right now voting on a potential no deal brexit, which would

prevent the u.k. from crashing out of the eu without a deal. parliament has voted several times against the deal that theresa may has brought forward. let's walk through the second scenario, parliament doesn't vote down and no deal brexit and that is still on the table. what is next? >> that may also work to theresa may's favor. she can use that as leverage to bring the softer brexiteers into her camp. she can say the possibility of a heart exited from the eu with no rules about trading and regulations, what happens the day after is up in the air and at that is still alive. they need to rally and approved some sort of deal rather than facing that. so either outcome could be used by her to leverage, but each comes with high risks. emily: we will continue to monitor parliament right now. lawmakers currently voting on this potential no deal brexit.

.his would be a binding vote we will wait for those votes to be counted and bring you the results as we have them. thank you so much for joining us from london. we will be right back with more "bloomberg technology" after this quick break. this is bloomberg. ♪

♪ ,mily: now to a bloomberg scoop facebook user data still showing up in places where it should not be. researchers at a cyber security guard found information hiding in plain sight, posted on amazon's cloud computing servers. millions ofnce,

accounts were found. joining us now to discuss is our executive editor and director of cyber risk research for the firm that discovered this data in public. found. exactly what you >> there were two. ae biggest report was out of mexican media conglomerate. millionined over 540 records, lots of fields, reactions, friends, comments, and the responses to them. it is the same type of data that was used to create the psychographic profiles that cambridge analytica was in

trouble for. emily: you talk about another third-party developer, 20,000 records, but passwords. >> plane text passwords, not encrypted images there for anyone to see and use. chances of somebody reusing the same password is pretty high. emily: give us the bigger picture. there are multiple parties involved, facebook, third parties. facebook granted access to this data for many years, and only after kendall jenner liquor -- , thendge analytica there is amazon and the third parties themselves. >> there are multiple parties. facebook has become more aware of the fact that this data, they lost track of the data after it left their premises.

tried to crack down, but there is a lot out there. first of all, how much more is , what is theo responsibility of providers like amazon in helping shore up this data and keep it from getting into the public? >> there is a lot more out there. we are just scraping the surface cloudecured data on the available for anyone with an internet connection to access, download, whatever. where are responsibility lies is an open question. aws push inke narrative of a shared responsibly model. they are responsible for the hardware, watching the servers themselves, and it is up to the ones paying to store the data to correctly configure their storage and make sure anybody on

the internet can't access it. the europeange as crackdown on privacy starts to go into effect come a but it is still up in the air. the law isn't exactly settled in that arena. emily: facebook sent facebook's policies prohibit storing information in a public database. once alerted, we took down the databases. we are committed to working with developers on a platform to protect people's data. how easy was this to find? how long did it take you to find this data? >> all it took was using a keyword. searching,i started the combination comes up pretty fast, then it said something is here. i checked it out and i was like, oh my god. there is a lot of stuff here. it was not difficult at all. emily: we have no idea how many

other instances could be, correct? a large fine, but the number of large finds out there could be very large itself. >> i am interested in this question of your interaction with amazon. you talked to them for a while and you talked about it in your posting. you had contact with them. what was that like and how did they respond when you told them, hey, here is what we are finding on your servers? >> i notified them new the beginning of february. they tell me the bucket owner had been notified there was an issue. >> the bucket owner is? >> we still don't have absolute confirmation. they have not issued a comment confirming it. it does stem from their systems. emily: are you going to keep looking for this kind of data? >> it is part of what we do, yes. emily: tell us about the process.

what can you tell us? bit of a secret in a business sense. i don't want to give away our proprietary systems we use, but it is the same as somebody knowing where cloud data is stored and guessing at keywords to figure out if something is there, then checking to see if it is publicly accessible. it is easy to automate and do on a mass scale. emily: there is a bigger picture issue. many companies are storing data on public clouds. there could be other companies that have the same problem, right? bethere are, and the will more big discoveries, yes. it is bigger than people realize, probably. has said theyk will give rewards for researchers who find certain bugs. is that the case here? >> they do offer bug bounti

es. it gets into a weird territory if we try to make money directly from a company that had that issue or is related to that. that is a gray area. we don't accept bounties like that. my question is what can and should facebook do? thendly, what is responsibility of the amazon web services out there in the world? >> facebook needs to fundamentally change their business practices. they have enabled a lot of data to get out to lots of places and have lots of control. there will be major restructuring necessary to fix it. the responsibility of something like amazon, i hoped when they were notified they would have taken more steps to close it off. here we are in the beginning of april and it was just shut down this morning. >> that wasn't until we contacted facebook and facebook contacted them?

>> exactly. >> should they have acted sooner? >> yes, they should have acted more strongly to get shut down. is it even possible for facebook to get control of all this data now after the fact, after years of having this policy of giving the state of a way to third-party researchers, third-party developers? >> i don't think it is possible. the genie is out of the bottle. it is ingrained into many other systems. emily: so what is next? >> if you ask me, regulation is key as a next step and actual enforcement. emily: thank you so much for stopping by and sharing your discovery with us. we will wait for some more discoveries from you, as well as our own reporter. thank you. announceexpected to how many cars it built and sold for the quarter.

considering the rocky 2018 in which production tripled while still managing to fall short of targets, so what might we have in store? we have our guests to join us to discuss. one has a buy rating on tesla. we don't have the numbers, but what are you expecting? >> it is difficult to say. you have several thousand cars transiting between the factory and europe and china. that gives me a wide range. between deliveries 60,000 units and 65,000 units. to wheree is similar expectations are with a very peers.viation across my the difference between these two numbers is how much tesla has

been able to go through the initial ramp of deliveries of cars in europe, and to some extent in china. we know they did extremely well over the summer in the u.s., but that was about taking employees to deliver cars to clients. they delivered a large number of cars in the last week of the quarter. this time around is europe, sea transfer involved, so much more unsettled. emily: max, this as elon musk himself is supposed to be in a manhattan court on thursday to answer to these sec contempt charges? >> where expecting arguments in the case over the alleged, sec says elon musk violated the terms of his settlement, which were hammered out in the wake of tweet, where he

tweeted he have the funding to buy out the company at $420 a share. that turned out to be inaccurate and we have gone down this road. it is hard to see how this ends. while the judge could toss elon musk out of tesla, you don't see that as being great for investors. ,ost investors, even bears agree he is a better ceo and the next guy. them this weird position although it is the source of uncertainty on top of the uncertainty over deliveries and production numbers. emily: you are one of the biggest bulls on the street. unprecedented that he will be appearing in court on this very issue. does this concern you? >> not that much. there is this aspect that the wholeheartedly

this issue, but they will remain reasonable. they will not hurt the company. it is going to be a lot of noise , the headlines, but at the end of the day tesla as the firm will knock it hurt by that. one thing that is slightly worrying me over the summer was the sanity of elon musk. he looked very tired, overreacting on anything, tweeting this strange for 20 tweet. -- 420 tweet. i think these things are behind us. he looks to be in good shape, very stable, rested. i think he turned the corner. so i am fairly reassured by that. now the way i understand the situation is that he really accepted to settle with the sec after the summer as advised by

very close advisers and friends, but he did that against his feeling. sec is reacting too much. that is a personal reaction, but i don't think it is hiding a risky personal situation that could affect the company. emily: a distinctively positive take there. nobody actually knows what corner elon musk has turned. you will stick with me. max, thanks for stopping by. has a new ceoel poach from one of their major rivals. what it means for the semiconductor giant, next. this is bloomberg. ♪

♪ softbankparently for $100 billion is not enough.

the conglomerate is in talks to add $15 billion more to its massive vision fund, according to people familiar with the discussions. softbank lands to undergo an effort to assemble a second vision fund. the original fund has invested more than $70 billion in tech companies. u.s. semiconductor stocks are at record levels. 2% overx rose over wednesday's session continuing double-digit rise since the start of the year. two companies in particular got and amdwednesday, intel --buy rating.g , with us areown our guests. what is driving this rally? it is a combination of

expectations and the fact if the economy, the margin is getting better, semiconductors tend to amplify those gains. nobody saw this coming in terms of the substantial weakness we saw in q4 last year, and the substantial bounced back since december 25 back to the current levels. both of those were unexpected in terms of the ferocity, the speed , as well as the magnitude. i think that the april quarter earnings will be a very interesting time to look back to see if those gains are justified. nobody was looking at it and saying there is no weakness. there are some danger signals in certain pockets of iticonductors for 2019, but is the velocity and magnitude of the snapback that has me quite honestly concerned. emily: is this a rally you

expect to continue? like a would be difficult call to make across q1 earnings season. does it really reflect a significant change for these players? yes. what are the two largest drivers for the semiconductor industry today in the world? data centers come in like the cloud, google, and facebook investing in their data center, and smartphones. like last year, we saw a slowdown in spending by these players. you know what happened to apple and how it affected the overall smartphone market. what we have learned across q4 is that these players are recognizing these weaknesses, but at the same time have

remained optimistic for the full year. when we heard cloud players talking, they all talked about caex. -- capex. the top seven players are expected to grow 15% this year, so it is still a growth market, and that is what the market has been recognizing over the recent weeks. we have a temporary slowdown in that market. on smart phones, expectations -- investorslike start looking at 2020. coming through, so the talk is improving already. emily: lots to watch as another earnings season gets underway. always good to have you on the show. thank you both. coming up, lyft losing steam after its ipo. what a slump means for companies

heading to the public market, next. this is bloomberg. ♪

it has been emily: a tough few days on the public market for emily: lyft. shares continue to trade below their ipo price. the wall street journal is reporting that a investors sold his stake in lived ahead of the company's debut last week. his exact reasoning isn't known, but sources told the journal, he was unhappy with lyft's plans. give it a neutral

rating. joining us from new york is the managing director of equity research and bloomberg intelligence reporter. what is your view on left? >> a couple of things here. i'm not sure you want to read too much into the short-term activity. it is a high multiple stock. you expect to see volatility. we did launch with a neutral rating. bottom line for me, you have to look far out -- you don't have to look too far out to look at growth rate and whether or when they can get to a self-driving car future. even when i interviewed the ceo, he couldn't give us a date when self-driving car's would be on a vet -- should be available, yet many investors were betting on not having to pay drivers and relying on self driving technology. you seem to think that the expectations for lift are too high and that will be able to meet those. they -- a lot of people were

expecting them to trade at the same multiple as a software as a service company. we don't think that will happen. it is still a rudimentary market, although it will be disruptive. no one knows the long-term profitability potential, and it just goes to show, we are still in the early stages of this market. what do you make of carl icahn backing out? the lift founder has 50% of voting power. it is not unusual in technology. you see the same thing at google. for a company that doesn't have a lot of leverage, what do you make of a big name brand investor backing out? mandeep: i'm not sure -- jake: i'm not sure i make a lot of it. he made money off of it. the bigger question is, what about the other large holders?

you have folks like google, fidelity, gm in there. my guess is those are long-term holders. it would be scary to me if we saw one of those leave. emily: of course, lyft investors are backing them up. i sat down with an horowitz. he is on the board. about what to say lift has managed to pull off. the founders in silicon valley go, nobody believes in us. literally, everybody had written them off. when im to come back -- stepped onto the board, we were at 16% share in the u.s. and we're at 39% today. just amazing. really a thrilling thing. , going from 16% to 39% market share in a matter , do you not think that

is impressive enough? mandeep: i think it's impressive, but it is built on subsidies. like i said, this market is rudimentary. thelook at ride-hailing and ancillary services they are offering, if you offer subsidies , you are burning a lot of cash, you can gain market share, but at the end of the day, you have to retain subscribers, show a steady upsell and that is harder. i would wait for at least a few quarters to see that steady growth in active writers and pricing. point, themy vantage key question here is not what you have done, it's what you are going to do. the big questions around the stock, one of them that mandeep points to, you have only for ways to get there. cut driver pay, cut incentives, bring insurance costs down or get self driving cars.

none of those are immediately obvious. emily: would you have the same concerns about uber, even though it is a bigger business? jake: we don't know as much about uber. we don't have the public filings, but is a different animal. it is the market leader leader, they have a big international business, they have a large food delivery business. a bit of a different story. emily: they have a large food delivery business that they are pouring a lot of money into. they have got other bets. lyft pitched itself as focused, uber has different bets spread around. does that make uber -- make lyft a better case than over? jake: one thing we have to figure out is what is the financial profile of some of those other businesses? access ton't have the the financial details. it is hard to say. the food delivery business potentially stands out. you have public companies like grubhub where the profit margins are quite high.

emily: jake: -- , uber hasdeep released some financial data for the last several quarters, which show that uber's revenue is bigger than lyft's but also losses bigger than lyft. have you done any preliminary work on how they actually compare? mandeep: obviously, they are about five times bigger in .evenue and booking it just goes to show that they are obviously diversified, but at the end of the day, their top bye is driven more international growth as well as u.s. growth. it is a very balanced topline, whereas lyft is more u.s. focused, and i would say lyft of the thingsone we were surprised by is lyft has rates of 25% and have grown impressively over the past two years. if i compare them to the online

travel guides, they are much better. for lift and uber, the story is about containing costs. their rates are very good. it is about containing costs. almost solely u.s. focused. it is a small business in canada. thank you both. from its payment system to a partnership with uber, starbucks has redefined itself as a tech player. much of that can be treated to the ceo, a tech veteran. before starbucks, he worked at ibm, held several executive rules and now he is bringing that experience to one of the world's largest consumer brands. he sat down with david westin to discuss. >> i think of myself as a lifelong learner and to be a lifelong learner, i have always been willing to push outside my

comfort zone. by pushing aside the comfort zone is where i learned. i get great joy from the process of learning. ibm, writing at software, i made the transition from being an engineer to sales and marketing, because i love being with people and i could leverage what i learned about software, but now i could engage with people and bring it to life for them in their business. as part of that journey, i began to see the emergence of this huge new trend. the democratization of computing and the graphical user interface and how this was no longer going to be something inside a data center that only large corporations have. andd: you mentioned ibm microsoft, there is a fair amount of creative destruction involved in those companies, including around the time you were there. what did you take away from those experiences? kevin: the technology industry

has this unique property in that it goes -- waves of innovation hit the market, and those waves -- the new thing disrupts the old thing. it builds on top of the old thing. viewrt of reinforces the that if you are not constantly doing,ning what you are consumer behavior, technology, changes in the world, a dynamic economy, a dynamic geopolitical situation can leave you behind. in the reinforces process of reimagining the future, you have to know what grounds you to the past. how do you have the wisdom to know what you honor and preserved from the past and the courage to boldly reimagined the future? i believe it is that balance that is the most important thing. if all you do is hang on to the past, you will be left behind. if all you do is embrace the future and dispose of the past, you will lose your way. it is the balance between the

two that i learned and observed throughout my entire career. it is that balance that i am working to apply here. also asked johnson about starbucks evolution in the face of a mobile revolution and he talked about balancing tech with community. take a listen. the digital mobile revolution has really amplified the need state of convenience. that is true in every part of society. you can make an airline reservation, get your boarding pass and check in on your phone. go through tsa with your boarding pass. state of convenience, you have to ignore, consumers are embracing it. how do we embracing without abandoning the need state of community, but complementing it? that is what we have attempted to do and i think that's a we continue to get better at each day. what i find is the same customer who at times when use the mobile app and come and pick up their

coffee is also a customer they will come in and sit down and read the paper and converse with their neighbors or their family members. an individual may have both of those need states at different times of the day or week. it is our job to make sure we can fulfill all of those in a way that is to the level of quality that customers expect. emily: starbucks ceo kevin johnson with bloomberg david western. -- davidatch that western. you can watch that tonight. coming up, our exclusive interview with jack dorsey, ceo and cofounder of twitter. what he has to say about potential big tech regulation.

emily: blue apron sword in a newg after it named ceo. she will replace brad dickerson, who is resigning to pursue other opportunities. the cofounder and head of technology will also step down. the meal kit delivery company affirmed its forecast for the first quarter, including profitability on an adjusted basis. twitter cofounder jack dorsey is going to -- is echoing zuckerberg's comments for regulation when it comes to big tech. about fake news, hate speech and misinformation on their platform. in an exclusive interview, dorsey says he would welcome more regulation. take a listen. seen abuse,e

harassment, we've seen people the of our platform. seen voices being silenced because of what is happening on the service. that is number one. we can't build a platform of speech, of conversation and a service that will remain relevant to people if people don't feel safe to speak up. for all those who believe in free expression and free speech, it is critical that we are not utilizing technologies like twitter to shut down voices and to silence others and a lot of our policies of enforcement and now more so technology is aimed at addressing this problem. it is never going to be fully solved, because it is one of those things where you just have to constantly iterate and perfection is not a goal. we need to get people much

better controls over their experience and we need to do more for work for them. we need to take away the burden of reporting harassment or abuse. we need to utilize technology better to automatically identify where it is happening or where there is a high probability of it happening so that people don't have to see it when they fray. ask to get into the isorter: how much of it pretty focusing on that and how much is inviting more conversation from outside parties? i ask because for the past few days, the heaven headlines in themark zuckerberg washington post, about more regulation of the internet. did you have a chance to see those comments? would you said they align with your general views? generally, i think regulation is a good thing. it is a net positive. be role as a company should

that of an educator. helping regulators and legislators understand what is happening with technology. trends that we are seeing that we are aware of. how our system works. is tob of a regulator ensure protection of the individual and a level playing field. as long as we're working together on them, it has good outcomes. i've not looked at all the postfic feedback to mark's , but i generally think that things like gdpr have been net positive, not just for our platform, but for the industry in general. specifically, there is a lot more clarity around privacy, how data is being used, and typically, a service like ours, our terms of service are hard to not and to follow and

necessarily the most customer focus. gdpr put a stake in the ground to at least bring out some elements that you have a lot more control over. i think that is a net positive. if there is more room for that, then absolutely. not going toere is be any party responsible for fixing this. i think putting too much of that weight on anyone -- whether it be a corporation, individual, or government, is not going to work. we have to think about it differently. we have to think about it as a desire. we have a desire. to have ae is conversation, our desire is to increase healthy conversation. for that, we can look deeper. we can look at what we are incentivizing, at the foundational nature of the service, and make sure we are not incentivizing behaviors that would take away from health. today, there are areas where i think we are. we arere the questions

asking, and it will lead to some fundamental shifts in how the service works and how people experience it. dorseytwitter ceo jack there. a bloomberging in tech reporter. what you think about his comments? reporter: i think it is far from the grand manifesto the zuckerberg had, and when we wrote the story on facebook, twitter declined to comment. even in this interview, you don't hear dorsey addressing all the points that he laid out. he does say that regulation is a positive thing and gdpr has been beneficial. he admits that twitter's terms of service is difficult to read and it has brought some clarity around how twitter gathers data. it is also worth mentioning that twitter has less of an incentive to play a strong role in the around regulation. it is in it benefits of let

facebook take the heat and any regulation that eventually comes , it is going to impact a giant like face back and google -- facebook and google more than a smaller platform like twitter. these i wonder if some of ceos are sickly tired for being blamed for these problems and would like to shift the responsibility to somebody else. selina: there is an interesting situation where the have the ceos who go out and try to improve the public relations and the messaging around the company, but at the end of the resultshave to see the and jack dorsey loves to have idealistic visions about what the healthy of future conversation will be, but we haven't seen how that will change in the product. they have starting -- started a beta app. have looked at ways to deemphasize a follower count and how many responses people have, but to increase the encouragement of healthy conversation that is not toxic. that is still in testing phases.

it has been more than a year and we haven't seen the results. emily: i want to ask you about softbank trying to raise more money. talk about what is raising this -- until: it is not enough you start looking at the pace of dealmaking. in two years, they have invested $70 million in startups like uber and dog walking companies and cancer detection and they don't want to slow that down. we have reported that they are seeking to add another $15 billion to nearly $100 billion and they're looking at adding existing backers to debt repayment, raising more capital. they are looking at all sorts of options. we don't know the timeline and it is possible that a deal could not be struck. emily: where are they going to put this money? selina: they want to continue on this grand vision of ai and start up groups. they have been clear about

wanting to back the leading company in every industry that is critically impacting and disrupting that sector. be that dog walking or cancer detection were ride-hailing. he said that every two to three years he wants to raise another 100 billion -- $100 billion fund. emily: softbank is a small investor in lyft, a big investor in uber. do we know if they are going to make money on the uber ipo? .elina: we don't know yet when you talk to softbank, they are always talking about the and sayingision their repayments are attractive and investors are interested in doubling down. there is not a lot of transparency at this point on those numbers, but they are hoping it is positive. emily: bloomberg tech's selina wang. thanks for stopping by. companies trying to

improve their diversity statistics, but are they making a difference? we will look at google's latest disclosures next. this is bloomberg. ♪ ♪

emily:emily: google says it's u.s. workforce has become more asian and less white and male. the company cannot with its annual diversity report. very small gains any number of women, black and latino workers. asians now make up 40% of the workforce. helloke sharing startup bike plans to raise 500 million dollars in funding as it fights for customers in china. may seek as much as

$1 billion as a gauges interest from investors and new backers. netflix's pursuit of academy awards could become an antitrust issue. themberg has learned department of justice has warned the academy of motion picture arts and sciences about potential rule changes back at and other streaming platforms and the government says that may violate laws meant to protect competition. stirreds roma oscar win controversy, given the films nontraditional release four streaming. that does it for this edition of "bloomberg technology." we are live streaming on twitter. all are our global breaking news network on twitter. this is bloomberg. ♪

haidi: welcome to "bloomberg daybreak: australia." i am haidi stroud-watts in sydney. sophie: i'm sophie kamaruddin in calling for. we are counting down to the major market opens. ♪ haidi: here are the top stories we are covering in the next hour. u.s. equities staging a late rally. worries about global growth seem to be on the wane. investors optimistic about the trade deal