♪ i'm emily chang in san francisco and this is "bloomberg technology." muellercounsel robert leaves a foreboding warning about systematic efforts to interfere in the 2016 u.s. election. tech was their weapon. how well-prepared are we to prevent it from happening again? american companies are rushing to boost the supply of rare to locks china looks

the supply to the united dates. these minerals are critical. it has been a rocky few weeks for uber since its ipo. what investors are watching. first, to our top story. u.s. special counsel robert mueller breaks his silence about the russian investigation. he said if he and other investigators had confident the president clearly did not commit a crime, they would have said so. before stepping away from the podium, mueller did have one last important message about russian interference in the 2016 election via social media. : i will close by reiterating that there were multiple systematic efforts to interfere in our election that allegation deserves the attention of every american. inly: joining us to discuss dallas, the chief technology

officer of the scorecard. sha with us, bloomberg's nnon in washington. we know there was foreign interference in the 2016 election though the president and others have downplayed it. what is the reaction in washington today to mueller underlining that very point before he stepped away? shannon: there wasn't much new in this press conference. he basically gave a five-minute or so summary from his report. the visual and hearing it directly from him has sort of shaken things up in washington, especially among democrats. we've seen really a renewed call or increased coal for democrats call fromeased democrats to begin impeachment hearings. the visual that you can play on the evening news with mueller in

his own words saying these things, that he was bound by justice department rules not to indict a sitting president so it was something he couldn't consider and again, using this platform to remind people that, despite what the president has said about this investigation being a hoax, a witchhunt, a politically motivated action, that it was at the core about russian interference in our election and trying to raise that issue again. i think that, while there wasn't a lot of here, it is making waves in washington and i think it will get democrats catalyzing around the eye -- around the i-word, impeachment. emily: facebook took down a bunch of accounts tied to iran, not russia, but facebook and other social media tech companies have tried to make changes but even they have said that it is an arms race.

how prepared are we from preventing the kind of interference we saw in 2016 from happening in the upcoming election? two partse really are to what was going on before. one is the targeted hacking and extraction of information. second was using the social media platform as an amplifier to distribute the misinformation. what we typically find is large organizations are better prepared than smaller organizations to defend against that first part, the extraction of information. when things don't seem to be going that great, how do we get in front and flagged the information faster and prevent the amplification on social media from really taking effect? organization can run better defense and event episodes like 2016, but there is still that process of, once information gets out and can be used in a systematic way, from a social media perspective, there really

is an amplifier affect. it gets more into disinformation campaigns than actually target hacking. emily: some of the details from the russian interference was theg what was redacted from mueller report. we have any more information about what was under those black lines and whether the public will ever see it? shannon: i certainly don't. congress is seeking to get more of those reactions lifted, to try and see some of that unredacted information. the president last week gave the attorney general authority to declassify certain information around this investigation and use his discretion. it is possible we can see more. the reason it was probably redacted on the first place is because there was a long conversation about how it -- how it could compromise sources and methods. whether it is congress or the president who wants to make that

information public. i think there is still a lot we are not going to know about this and it is a reminder that really this report only gives us a small window into all the information the intelligence community has collected. this is not all the information that robert mueller has, that is basically a summary of it. to ask yourt opinion on what you think the responsibility of some of these tech companies should be, whether facebook, twitter, youtube for example. there's this doctored video of nancy pelosi floating around facebook flagged. instead, do you think that these companies are doing enough to stop misinformation, if that is what you would call this particular video? if not, are you concerned that they won't necessarily make some of the tough choices that might be needed to prevent this kind of interference from happening again.

jasson: i think in this particular situation, facebook is claiming satire for why they didn't bring it down. i think social media platforms have a degree of responsibility. they rightly or wrongly are the amplification platforms in the u.s. or most of the western world. what they are doing right now is clearly not enough. what level they need to go to is not a simple or easy question. there are legitimate arguments fornd protection of satire reasons of protecting free speech. with that said, we can clearly do better than we are doing right now. having platforms that amplify the message of national adversaries is not in the goodwill objective of any of us. emily: shannon, the president tweeted today, "nothing changes from the mueller report, there was insufficient evidence, and

in our country, that means the case is closed. thank you." what happens next? shannon: to some extent, the ball is in democrats' court to now as to how much further they want to pursue investigations, if they want to begin for -- begin formal impeachment hearing. the democrats, this is something they have to figure out. nancy pelosi is probably going to be the key decision-maker. from a white house perspective, i think the white house has to be on the defense. they are going to try to get control of the message, try to repeat no collusion, let's move on, let's investigate the investigators. and try to sort of undercut this investigation by looking into the origins of the investigation . how it plays out politically for the president, i think it is still unclear.

everybody looks back to what happened with clinton and the republicans. the republicans suffered -- the republicans suffered big losses and clinton's popularity came up, but the republicans to election -- took the presidency in the next election george w. bush. emily: lots to continue to report on. thank you soasson, much. netflix is threatening to leave the state of georgia if a new law restricting abortion takes effect. streaming video service says it has many women working on productions in georgia whose rights along with aliens of others will be severely restricted by this law. netflix produces several shows there including stranger things and ozark. the legislation is set to become law next year. coming up, china's newest target. beijing gears up to use its dominance in the rare-earth arc it to strike. in thetrike back

escalating trade war with washington it if you like bloomberg news, check us out on the radio, the bloomberg app, and in the u.s. on sirius xm. this is bloomberg. ♪

emily: the latest twist in the u.s.-china trade. could beijing use its stocks of rare earths to hit back. china supplies about 80% of u.s. imports of rare-earths, used from smartphones to electric cars to wind turbines. we are joined by gina vasquez and also bloomberg trade reporter sarah mcgregor. what signals has china given thus far that this is a lever they might pull?

been leveraging quite a bit in-state india. when he visited -- a visit by chinese president xi jinping and history negotiated facility, saying they will use any leverage they having dominance in rare-earth try to gain leverage in the trade talks. it is no surprise that china will look at everything and has available that the u.s. really wants and try to hold that over the as they try to reach -- over them as they try to reach a trade deal. emily: talk about what rare-earth's are and how important they are to u.s. business and technology and particular -- in particular? likeey are minerals used led screens on your smartphone, electric vehicles, wind turbines. sort of the issue here is that a lot of them can only be found certain places like china, or largely found in places like

china. being one of the largest exporters of this good throughout the world, along with , to a much smaller degree, , for example,pe have comparatively small percentages of exports that they end up producing and supplying to manufacturers. emily: i have a chart here on the bloomberg that gives us the pictures of exports of rare earth from china to the united states. talk a little bit about where we are now this could be one option. what else? china the u.s. and rhetoric. since the top is collapse to couple weeks ago we are looking ahead right now to a potential meeting chinese president gigi -- chinesep g20

trumpent xi jinping and at the g20. the tariffs ramp up on june 1. trump has threatened to hit virtually every other important from the asian nation. side isperiod, each trying to gain as much leverage as possible. this rare earth threat is one of many options china has. there are questions about whether it would $1 billion in treasury holdings, u.s. treasury holdings. there are other things like consumer boycotts or increased regulation that make it harder for u.s. companies to work in china. emily: there has been this discussion of a potential boycott of the iphone but there is no evidence such a thing might happen. we talked about the importance from a product

level, but what about from a company level? what are the companies that rare suffer the most if earths are cut off? justina: one u.s. company, mp materials, that exists in the rareand minds -- and mines earths. they are potentially affected. ceo said that it feels like a tariff on them specifically. other companies in north america may not feel such as large an effect mainly because they are producing elsewhere and not actually exporting either the raw rare-earth materials or products that they produce from them, not actually exporting them to the u.s. but rather to facilities around the globe. it varies. u.s. has know that the already cut china off -- or

huawei off from u.s. supplies of chips and other technologies even though officials have repeatedly said that while way -- that huawei had nothing to do with the trade war. if china cut off rare earths from the united states, how might we respond? justina: that is why it is a scary time right now. let's say we take the huawei example, blacklisting and cutting it off from these american suppliers. china has said it will retaliate. it hasn't said how. a threat of restricting or cutting off access to rare earths, it is scary. it is something that could potentially happen. no one knows how china will retaliate. the prospect of this could hit the u.s. economy, had companies. i think that china is at least trying to send a message here and it is being sent loud and clear. emily: all right, thank you both.

much more to continue to follow. sticking with u.s.-china trade tensions, speculation that apple could be hit. the tech giant could see its earnings fall 26% if china bans sales of the iphone. an iphone ban would be a worse case scenario. >> we saw a similar trend back in january right after the huawei -- there was a little bit of a nationalistic feeling where most chinese were buying huawei phones instead of iphones. that situation reverted a little -- lastebruary when earnings call, apple mentioned how china was strong, a lot it was driven by february, march sales of iphones and also services from the gaming side from the chinese folks. i think there is definitely concern.

this is something that most investors ask. the reality is that we don't know the real outcome. fromo lay out a scenario five to 100 demand disruption. stocksave seen apple come off already sharply. how much is that from supply chain concerns that are already a problem because of the tariffs in place now? >> i would say there are two main reasons. one, the tariffs which by givent increases the cost that they pass on the price to consumers. the second, the demand in china. i would say both of them are a big factor in the price drop. a lot of it happened after the last earnings call in the stock. got lower.ock right now, i would probably say a lot of the stock reaction is the tariffs and chinese demand,

a function of politics rather than true fundamentals. >> the sales declined we could potentially see in china, could that be offset by other countries, potentially india? >> it is a good question and something investors have been asking. a lot of the sales in china and india have been driven by price concessions. in that vantage point, you could argue that they could see incremental sales in india. the reality is, at the end of the day, even the last couple of quarters, what you have seen is -- over last year, they did 200 million units of iphones. a supply constraint, you could argue they can reallocate the iphone from one geography to another. if it was more demand related, it would create more challenges. >> obviously we pay attention to the iphone because it is such a massive part of apple's business at the moment. as we have mentioned before,

other fast-growing places are sizable and maybe not as dependent on the consumer market of china. >> i would probably say, to your point, available's growing pretty nicely. the services is a long-term growth story. the reality is, over the next 6, 9, 12 months, the iphone -- keep in mind, the iphone was introduced in 2007. for the last 10, 12 years, this has been an iphone story. it is slowly transitioning away from iphone but things like that don't happen overnight. emily: breaking news in telecom. bloomberg is reporting the u.s. justice department wants t-mobile and sprint to lay the groundwork for a new wireless carrier with a phone network as a condition to clearing their 26

point $5 billion merger. this is according to a person with familiarity on the matter. yes, they want t-mobile and sprint to create a competitor. happen how this would t-mobile shares slightly up, sprint shares unchanged. this is bloomberg. ♪

emily: for years, one of the world's highest paid corporate executives. now he is facing the opposite reality, no big paychecks at all. the google executive hasn't received an equity award in over two years. a big reason, he turned down a big grant of restrict stock in 2016 because he felt he was already paid generously. another giant payday could have sparked a new round of controversy for google and i think we can assume he's doing just fine. pimco has always been headquartered in newport beach,

california, with an office in new york. they recently opened a new outpost in austin, texas. jonathan ferro spoke exclusively to pimco ceo manny roman along with the cio on the strategic move to hire more tech talent. manny: i think we felt we needed an office to hire talent in technology. when it comes to hired tech people, we compete against other financial companies but we also compete against big tech companies and also startups. at six different locations and concluded austin gives us the university, the best place for us over the next 20 years to hire a significant amount of talent and technology, then we will move some small part of the business which makes sense to be in texas.

so that was quite attractive. we did a quite in-depth study. so far, we have about 100 people down there. >> you have been expanding. you've expanded into municipals as well. any gaps that you are looking to fill? any holes you with to fill over the next couple -- you would look to fill over the next couple of years? manny: it is whether you know something about it and how you are going to grow it. i think we are of the view we want to grow organically. from time to time, there could be small things we can do, bring to the pimco organization area by and large, it is hiring, making sure we understand what we are good at and what we are not good at. there's a lot of introspection which comes into making sure that we do that well. pimco's mannys roman along with dan ivascyn, speaking exclusively with bloomberg. coming up, horowitz recently raised for two new funds.

we will sit down with managing partner scott cooper to discuss the future of the firm and his new book, "the secret of sandhill row." this is bloomberg. ♪

this is "bloomberg technology". my next guest is the ceo of a firm that is shaking up technology. he is now out with a new look. -- book. venture capital is everywhere.

how would you describe the state of it today? >> there is a tremendous amount of capital. it is probably easier to get seed capital in particular. at the same time you get a dynamic that is companies -- amount oformous capital going into the later rounds. think it is a good place to be. >> in many ways, venture capital is investing instructors. see venture capital firms trying to reinvent themselves as you see competition from hedge funds and private equity firms crowdfunding. had you see the traditional model being disrupted in the future? can the way that it exists today

exist in the future? despite being an innovative industry, it was probably -- the big thing that happened over the last 10 years is seed firms. you now have a whole new set of investors that are coming into play before the traditional capital firms. they had to figure out what they can provide. there has to be something else. softbank was a party of one a couple of years ago. it now there are a lot of other people playing in that face. that at all. about with the industry has to worry about is you have to do something other than provide capital area capital is no longer a scarce resource. for venture to survive, has to evolve. companyoes your

continue to differentiate yourself? about 160 people today. 100 of them work with companies post investment. we also have to think about being able to invest across the lifecycle of the company. we have seen a lot of tech companies going public. obviously you are not an investment in that the just went public. are you concerned for your company about exiting now? if you talk to institutional

investors like blackrock, they will tell you there is a scarcity of growth in the public markets. where you can find growth that too muchable and not cash consumption, there is still a lot of demand for that. a lot of the software companies have done extremely well in markets. that indicates where the core demand is. i interviewed the ceo of uber on the day of their ipo. are you advising companies to stay on their path to advising that now it's not a good time? the fundamental demand for ipos and growth related stocks are there. if companies are ready and they feel like they can perform -- it's perfectly fine time for them to go. that said, it is the case that i thinkhe time for --

people have to be mindful about cash consumption. >> there is discussion that we are already in the mix of a tech cold war with china. would you agree? >> i don't think we are in a cold war now but there is lots that is challenging right now. there is no question it is hard right now for companies to take non-us capital and capital from china. we have been on record that i don't think that's a good thing. right now, we are still in the early stages. i don't think it is good policy for us -- are you worried about competitiveness? >> i am yes. have been thewe beneficiary of being a hub for venture capital activity.

90% of venture capital activity was in the u.s.. now it is 20% area at emily: there has been a chorus for the tech to be broken up. hughes,h moran, chris do you think there is something to this argument is love these companies are too big? facebook, amazon, alphabet? emily: it is -- >> it is interesting from a political standpoint. the ftc is very active in these areas as well. we have to recognize that the impact of technology is just felt in many ways. sometimes inside of silicon valley we don't appreciate it. we have to do a better job of connecting with regulators.

>> does that mean breaking up or not? >> i don't have a position. i will leave that to the regulators. i think it does mean that we have to do more than we have done historically. we have been lucky in the sense that we have been able to live in our own bubble. theseality is technologies are impacting people in different ways and we have to appreciate the greater responsibility that comes with that. emily: where are you putting this new money? we raised two funds. the second will be later stage venture. 10,anies that might have 20, $30 million in revenue but they are not thinking about going public. inmade a recent investment one company. you will see us do things like that where companies have enough of the business model working and they need additional

capital. what are some of the top secrets of sentelle road? people sure all kinds of know these secrets as well? >> that is exactly why we wanted to read the book. there is no question i think there is too much information asymmetry in this business. the book is we open that up and help people understand how does the business work? how does it work with venture capital? how does it work with different genders, ethnicity, and geographic diversity? emily: you are out with a new book. thank you so much for joining us. alibaba is considering raising $20 billion through a second listing in hong kong after a record-breaking debut five years

ago. our analyst caught up for an exclusive interview to discuss this. >> i am happy if this report is indeed correct. that they are planning to come. come, it is not a surprise to us because i have said when you travel far, you will come home. everybody does that. it doesn't mean that you give up your home -- your new home. i'm sure it is going to come back and keep whatever they are doing in new york or other places and they will be coming back to asia. they could be here, or they could be in shanghai or other places. happy that they are

coming back. we will be very happy for whatever decisions they might make. >> the news around alibaba's potential secondary listing war iss the trade escalating. are you assessing your strategy in light of this? >> this trade war is a global event. it is going to affect all of us deeply. nobody likes it. we're all watching on the sidelines. is not that this divorce to take hold and maybe there are ways to scale it back. we will have to see. fromat we are hearing potential issuers, reviewing their ipo plans and elsewhere. >> everybody is looking at this and asking the question what does this -- how does this impact me? this is not only about ipos. it is about a company and

investment and somebody who wants to start a business. this is the time to do it. certainty that this created is very costly to the entire economy. leadersthe political need to take the responsibility and quickly define what really you wanted. want this would probably cannot agree. if you want this other thing, we can work it out. thatu want something fundamentally you know is unacceptable to the other side then we go into a civil and a processnd hopefully to allow everybody to get on with their lives. >> one sector has been a key focus. the stock market rules were focused in the space. what kind of feedback are you

getting regarding those reforms? what kind of changes would you see going forward? >> we are already the second biotech market globally. we have another 10 in the pipelines. we are here is that launching this important chapter in our market where huge population is aging. this is the area that i think tremendous opportunity. i am also quite worried that there are attempts to say that this conflict should also somehow spill over into this particular sector which would be ill-conceived because unlike technology,acturing you could argue that the rise of china could mean the decline of or ina in employment

military security, national security technology advancement. i agree withng that. i can see the reasonable argument. in biotech, before you are american or european or asian, we are human. we all want one thing to be healthy. we don't want to get sick. when we have a disease, we want to get the disease discovered and cured. there is only one enemy. there is no enemy between us. only one common enemy, disease. emily: that was charles lee. up, the dream of the jetsons. the room but cleaned up the messes of millions of customers. we will talk to the ceo of behind the device. this is bloomberg. ♪

emily: irobot is releasing two new cleaning robots. it is new technology to help lighten the load at home. these new robots can talk to each other. tell us about them please. >> the two new robots, the roomba and the other are designed not just to raise the bar on vacuuming and mopping but also to collaborate as a first step in a home where your devices are working together to a better result. vacuum is a beast. it is 40 times more powerful. it goes into corners aggressively to get all of the dirt. it canesigned so that

pick up allergens and pollen, trap them so that 99% of what gets picked up is captured. then the other one, that is the new mopping robot. both of these robots build maps. they understand the kitchen and the living room. important because different rooms might have different services -- surfaces or you want to use drive mapping -- drive mopping or what mopping. imagine your mudroom which can dirt andt of cake in mud and you want to vacuum it first before you mop. room but has a fervent following but you have other people who say this doesn't work for myspace. shares dropped after you reported first-quarter results.

what is your response to the skepticism? >> we have always had people who didn't yet understand. spent on% of all money a vacuum cleaners is spent on robot vacuum cleaners. for the second year in a row, number onewas the selling vacuum cleaner in america. know, we are extending from vacuuming into mopping. later this year, we will be mowing your lawn also. -- asia is a big part of your business. how is the trade war affecting you? ,> asia is 25% of our sales japan of being the largest. the trade war is more impactful because of the tariffs. areprojects -- products

subject to tariffs. despite the fact that the consumer robot industry group or to 5% last year, these price increases are reflected in increased prices of our products. they certainly are having a on the meteoric growth in the marketplace. >> 20% of your sales come from asia. we will continue to follow. thank you so much. still ahead, numbers biggest test since going public. earningsrts its first since going public. this is bloomberg. ♪

emily: amazon is updating alexa voice software to allow you to delete data using voice commands. bloomberg reported that amazon listens to voice recordings to improve the software. uber, the biggest ipo of the year, started off on a week foot. shares have fallen 9% from the $45 offering price. we will get news insights into the company after earnings results are reported on thursday. we know that some of the numbers because they came out in the ipo prospectus.

what are the new pieces of information we are looking to learn? >> we know a lot because they gave ranges around q1. of $3 billion, in revenue for the quarter, where exactly does it fall? in the range of a billion dollar loss for the quarter. it's going to be a lot of fine-tuning along those numbers then, any sort of ancillary numbers they provide then the call will be an opportunity for executives to talk about the company and explain where the vision is. them: you and i spoke with on the floor of the stock exchange when the company went public. let's listen. is a verybility significant priority for us.

the companies of the world can grow but they can grow off of a base of their internal capitalsource. we don't want to be dependent on public markets for capital. this is a very important capital raise for us but we believe that a business can and should be profitable over time. that said, investors don't necessarily buy it. i wonder what kind of color we are going to get like that about what is to come given that the shares have continued to not perform well. is if uberquestion tries to cut its losses, what effect does that have on total -- total addressable market? if prices are going up, does that limit the universe of people who will take a number if drivers are getting paid less? does that reduce the workforce? people will want to know how interconnected that is.

and try to watch what happens as uber -- but they try to cut into losses, what effect that has on and how much it is able to sustain that. knowing the pieces are interconnected will be necessary to understand this company. emily: what are you hearing from inside the company about our route? morale? >> it is happy to be out in public. that was a huge milestone for the company. for the most part, they are operating but people had huge stakes in the company from the early days and they would like to see the value of because it has a massive impact on their net worth. you will be all over the results tomorrow. thank you as always.

the parent company to we work is arranging a credit line of $2.8 billion. jpmorgan is leading the potential financing. they want the credit line in place before a planned ipo. that does it for bloomberg technology remember we are live online. check us out on tictoc on twitter. this is bloomberg. ♪

>> welcome to daybreak australia. we are counting down to asia's major market opens. >> here at the top stories we are covering. u.s. stocks slumped to a 12 week low. robert mueller breaks his silence saying his investigation did not conclusively