emily: i'm emily chang, and this is the "best of bloomberg technology," where we bring you tech comingop in up, after its rocky debut, uber reports its first earning results as a public company. is the ride-hailing giant really on a path to profitability? plus, alibaba is considering a megadeal it will bring china's largest company to investors on its home turf. we have the details on a potential second listing. and facebook shareholders pressed for more checks on ceo mark zuckerberg's power.

we'll bring you highlights from its annual investor meeting. first, to the top story, uber, the biggest ipo of the year has had a bumpy start to public life. investors remain concerned about the size of the ride-hailing market, the reality of self - driving cars, and taking on another risky asset amid a worsening u.s.-china trade dispute. the ride-hailer gave insights into its growth, reporting first-quarter results thursday. dan ives, managing director for wedbush securities and bloomberg intelligence is mandeep singh doing me shortly after they came out. dan: right now for investors, the focus is on the growth and take rates and bookings. the last is back yourself into a corner talking about profitability. it is going to take a few years. right now, they are doing the right things. i view this as a step in the right direction, especially after what has been a shaky start since the ipo. emily: mandeep, what is your take on this continued level of

losses? the cfo says it will be an investment year and they will continue to invest. mandeep: and you know where they are investing. they are investing in the food delivery business. that is where they are heavily subsidizing the drivers and that is why the rates are coming down. you can see the reason why. the average prices for food delivery business is much higher. you can scale it up over time and that is the one that is the most fragmented. even amazon invested in a company and so you know the market is big and that is what they are striving for here. emily: dan, what is your assessment of uber's ability to get to profitability? i asked him on the floor of the new york stock exchange if this was the peak spending year and he would not commit to that. so how likely do you think it is that uber gets to profitability in the near term?

dan: i think that is the smart move because when you look at lyft, that is maybe something they regret saying because it puts that mark up in terms of what they can do from a profitability perspective. now uber is doubling down. not only do they need to invest in uber eats and autonomous , but in the next two to three years, there is a better chance of me playing for the golden state warriors than them hitting profitability. that is what i think in the next two to three years. if you look at five years, it will be more realistic in terms of where they could hit. right now, the focuses on growth -- the focus is on growth and international and putting a fence around their backyard and making sure that the 90 to 100 million users continues to ramp and they monetize especially in the eats. : so i won't be seeing you

in the nba finals tonight, but he did say on the call that marketing expenses were going to start to go down. that is presumably welcome news given that both lyft and uber have been spending heavily to attract new writers. riders. mandeep: and he called out the rationale of the pricing in the u.s. markets. lyft and uber are not subsidizing. i still feel they are subsidizing the drivers and that is why uber's take rates are coming up. i think it is a duopoly. when you look at this kind of structure of online travel and booking.com and expedia, over time it will pay off in the sense that these guys at least can maintain stable take rates in the ridesharing business. emily: dan, what are you looking for over the current quarter, which they did not give a forecast for? what is next? dan: i think it is important that they did talk about take rates and other metrics they

expect to improve throughout the year. right now, it comes down to the take rate number. can that spike back up? what bookings looks like the second half of the year? do they monetize eats? when you look at eats, especially when you look at grubhub and door dash, there is a lot of competition in terms of pressure on take rates. if they can manifest, it is an execution story. and no doubt it is in the penalty box. investors will grapple with the valuation, especially with no profitability even with binoculars. we believe they execute some of the parts in the hundred billion plus valuation and you start to get a stock that gets re-rated throughout the next three to four years. it comes down to execution. that is why this was such a

n important quarter. the next few quarters will be laser focused on industry. emily: i am looking at a chart that looks at short interest for the biggest and most recent ipo's and a short interest in lyft is higher than the short interest in uber. what do you make of that? dan: i think right away, because of domestic ridesharing made it an lyft easier target as well as the timing with uber coming out. they shot themselves in the foot a little on the first calling and not giving take rates and bookings. they have essentially smelled blood in the water and that is why you are seeing that. i think it is overdone and lyft has improved some of the communication, at least with investors over the last week. investorlyft is in the penalty box and that will be where they need to prove themselves for the short to cover which is why there is more focus on lyft and uber, at least where we are today. emily: that was dan ives, managing director at wedbush securities and mandeep singh with bloomberg intelligence. coming up, special counsel robert mueller leaves u.s. citizens with a foreboding warning about systematic efforts

to interfere in the 2016 u.s. election, and tech was their weapon. how well-prepared are we to prevent it from happening again? if you like bloomberg news, out -- check us out on the radio or listen on the app at bloomberg.com and in the u.s. on sirius xm. this is bloomberg. ♪

emily: on wednesday, u.s. special counsel robert mueller broke his silence about the russia investigation. perhaps the most telling statement, he said if he and other investigators had confidence the president clearly did not commit a crime, they would have said so. before stepping away from the podium, robert mueller also had one last important research -- message about russian interference in the 2016 election via social media. robert mueller: i will close by reiterating the central allegation of our indictments that there were multiple systematic efforts to interfere in our election.

that allegation deserves the attention of every american. emily: jason casey, chief technology officer of securities scorecard and bloomberg's shannon pettypiece joined us in washington this reaction. shannon: there wasn't much new in this spirit basically gave a five-minute or so summary of his report. but the visuals and hearing it directly from him i think has really sort of shaken things up in washington, especially among democrats. we have seen a renewed call or increased call from democrats to begin impeachment hearings. i think just the visual that you can play on tv and on cable news and on the evening news of robert mueller in his own words saying these things that if the president didn't commit a crime and i had confidence and that i would say so, saying he was bound by justice department rules not to indict a sitting president. again using this platform to

remind people that despite what the president has said about this investigation being a hoax and witchhunt and a politically motivated action here, that it was at the core about russian interference in our election and trying to raise that issue and questions about how prepared we are. while there wasn't a lot of news here, it is making waves in washington and it will get democrats catalyzing around the impeachment word here. emily: let's take a look at that. facebook took down more accounts tied to iran, not russia, but the social network and other big tech companies have tried to make various changes to prevent these things from happening that even they have said it is an arms race and it is hard to keep up. how well-prepared are we from preventing the kind of interference we saw in 2016 from happening in the upcoming elections? jason: there really are two parts to what was going on.

one was the targeted hacking and extraction of information. second was using the social media platform as an amplifier to distribute the disinformation. what we typically find is larger organizations are better prepared than smaller organizations to defend against that first part, the extraction of information. where things don't seem to be going that great is -- how do we get in front and flagged the flag the information faster and prevent the amplification and social media from taking effect? there really are those two key elements. an organization can run better defense and prevent episodes from happening in 2016 but there still is the process of once information gets out and can be used in a systematic way from a social media perspective, there is an amplifier effect that is quite a bit different and it gets more into disinformation campaigns rather than targeted hacking. emily: shannon, some of the details of the russian interference was among what was

redacted from the robert mueller report. do we have any more indication about what could be under those black lines and whether or not the public will ever see it? shannon: i certainly don't have any indication what is under the black lines. congress is seeking to get more actions -- of those redactions lifted to try and seek some of the unredacted information. the president last week the attorney general authority to declassify certain information around this investigation and uses discussion. it is possible we could see more. the reason it was probably redacted was because there was a long conversation about how it could compromise intelligence sources and methods and those arguments will be in place whether it is congress or the president who wants to make the information public. i think there is a lot we will not know and it is a reminder that this robert mueller report

only gives us a small window into all the information that the intelligence community has collected. this is not all the information that robert has in his report. it is a summary of it and we are only seeing a few pieces of the puzzle. emily: jason, i want to ask your opinion on what you think the responsibility of some of the tech companies should be, whether it is facebook or twitter or youtube, there is this doctored video of nancy pelosi that was taken down and others have not taken it down. facebook has flagged the video. instead, do you think these companies are doing enough to stop misinformation if that is what you would call this and if not, are you concerned that they will not necessarily make some of the tough choices that might be needed to prevent this kind of inference from happening? jason: i think in this particular situation, facebook is claiming satire in terms of why they didn't bring it down. i think the social media platforms do have a greater responsibility.

they rightly or wrongly are the amplification platform of communicating information to the masses, both in the u.s. and most of the western world. what they are doing is clearly not enough. what level need to go to is honestly not a simple and easy question. there are legitimate arguments against protection of satire for reasons of protecting free speech. with that said, clearly we can do better than we are doing right now and having platforms that amplify the message of national adversaries is not in the goodwill or objective of any of us. emily: shannon, the president tweeted today, "nothing changes from the mueller report. there was insufficient evidence and therefore in our country, a person is innocent. the case is closed! thank you." what happens next? this is certainly not the last we will be hearing about the robert mueller report. shannon: i think the ball is in the democrats' court as to how much further they want to pursue investigations into the

president's time in office if they want to begin formal impeachment hearings. i think the democrats, this is something they have to figure out and solve amongst themselves as a caucus and nancy pelosi is probably going to be the key decision-maker on that. from the white house perspective, i think now the white house has to be on the defense. they have to try to get control of the message and try to repeat this no collusion and let's move on, case closed, let's investigate the investigators. those are the talking points of where they go from here. they will try to undercut this investigation by looking into the origins of the investigation and create a side narrative. how that plays out politically for the president, the democrats pursue impeachment or not i think is unclear. everyone looks back to what happened with clinton and the republicans. the republicans suffered big lots and clinton saw his popularity go up during his

impeachment. but remember republicans took the white house in the next election with george w. bush. it is all up in the air right now and there is a lot of path that things can go down from here on out. emily: bloombergs shannon -- bloomberg's shannon pettypiece and jason casey technology officer of securityscorecard there. coming up, investors pushing for change at the top after a cascade of scandals. we will tell you what happened at facebook's annual shareholder meeting. still ahead, following its record-breaking ipo in 2014, alibaba is considering a second listing in hong kong. we will discuss. this is bloomberg. ♪

emily: at this year's facebook shareholder meeting, half of the eight shareholder proposals called for changes at the top , amidst numerous scandals and controversies. bloomberg's kurt wagner and shira ovide joining me to discuss the challenges and what lies ahead. kurt: i spoke to some people who were in the room. i was not in the room but they said it was tense. they said it was sober. i think you could tell by the

questions that were asked and the statements that people made that there are a lot of angry people at facebook and a lot of people who want to have more or better answers from mark zuckerberg and sheryl sandberg. emily: investors asked zuckerberg several times about the amount of power he holds over the company. there was one who asked a follow-up saying something on the lines of -- i am asking if you should still be ceo or if you should step down and he said, let's get to one question, moving on. what do you make -- obviously the proposals were rejected but also the evasive nature of the answers? shira: in a way, facebook is in a no-win situation right now. everybody is furious at them or a whole host of sins. one of the people who stood up to ask a question was asking why facebook has banned her small business that sells hoodie sweatshirts that read men are trash.

it was that level of shareholder questioning from should mark zuckerberg be a dictator over facebook and why are you blocking my hoodie business? that shows you the scope of anger at facebook right now from the sublime to the ridiculous. emily: there was one investor who tried to ask the independent board member what she thought of this whole thing. she also defected. tell us about it. kurt: they had to bring her out -- up to answer the question. she was not on the stage at that point. they had to make this whole special thing that we want to ask sue a question so let's bring sue up. it was about, you are the lead independent chair -- are you going to call a meeting of independent board members without mark zuckerberg there? is that something you would ever do? would you consider holding him to account by may be making decisions while he is not around. she basically said no and was very pointed about it. this is not something we are considering and we are very happy with the structure as it is right now. we feel this is the appropriate set up.

emily: if she wanted to, could she limit his power? kurt: they say as the independent chair she would be the only person who he really kind of has to report to. there are rules in the proxy that say she can call a special -- meeting of the independent board. she said she does not want to and doesn't plan to. for all intents and purposes, he has the run of the show. emily: mark zuckerberg did answer many questions, including questions about counts as speech that should stay up and what should come down. take a listen to one of his answers there. >> if the rules for the internet were getting rewritten from scratch today, i don't think most people would want private companies to be making so many decisions by themselves about what constitutes acceptable speech or what people are allowed to say around elections or especially in different countries around the world where we may operate but may not have

a large physical presence. emily: this as controversy continues to swirl around this doctored video of house speaker nancy pelosi that facebook has chosen to leave on the platform. youtube has taken it down. nancy pelosi has commented on this. she said this earlier. >> facebook knows that this is false. they know this is false and yet they have decided. we have said all along that for was unwittingly exploited by the russians, i think wittingly. they are willing to put something on they know to be false. emily: what do you make of that? shira: it is harsh and maybe unfair and i can understand her anger. there is a doctored video of her that has been seen millions of times on facebook and the company did do things to sort of make sure that it got slightly

less distribution in people's newsfeeds and made sure to put a tag on it that said there is more information about this video and linked to third-party articles that said this is a doctored video and is false. millions of people have seen it and some people have chosen to believe it. pelosi is reacting to that episode that embarrassed her. you make of the fact that this is the issue that facebook is digging its heels in on? this is the content that facebook is saying that we know it is doctored but it doesn't truly violate our policies. kurt: i said this and it is a good reminder that facebook's policy actually does not mean they take stuff down because it is fake. this happens all the time. this is a high-profile example and is getting attention. when facebook does take stuff

down, it is because the people who posted it might be misleading who they are or pretending to be in the united states but are really in russia and stuff like that. they don't take it down because it is inaccurate. this was just a high-profile example and reminder of that policy and this policy may not be as great as we think because now it involves us. -- involves nancy pelosi. emily: is it simply too much to expect? is it impossible for facebook to be the arbiter of truth for everything on its platform? kurt: i think it is. you think about there are 2.4 billion people on facebook monthly as users. are you going to stop every person who says this guy is red? are you going to stop anyone who mispeaks?

i do not think it is a feasible task right now and they certainly don't want the responsibility of doing it and that is why they are asking the government to step in and help out. emily: meanwhile, a billboard went up in san francisco from elizabeth warren saying break up big tech. text us if you want to join our fight. facebook is not the only company she is talking about. they are able to throw this up in the heart of silicon valley. shira: elizabeth warren talking about breaking up big tech, her campaign knows what it is doing to get attention. facebook is not the only company that is part of her policy paper about breaking up tech and amazon is a prime example and apple and others. this is not a facebook specific kind of target. emily: given that facebook is such a large platform and in a way because of all the content that is on their, should they be -- that is on there, should they be? should they be in the position of being the arbiter's of truth of truth even if we

, believe it is possible the way that facebook is architected and that if they were smaller and in smaller parts, would it be a more realistic proposition? shira: i am not sure. breakup facebook has become this catchall solution to this problem of facebook -- to any problem of facebook. i am not sure it solves the problems that people are articulating. if facebook get woken up -- broken up into baby bells and instagram and whatsapp and facebook, you still have multiple internet hangouts with more than one billion users a piece that are still going to have to make these difficult content decisions. i am not sure it gets much easier dealing with individual companies with a billion plus users as opposed to one company with multiple products. emily: bloomberg's kurt wagner and shira ovide.

coming up, it was one of the biggest u.s. tech ipos ever and hong kong is getting a second chance to land alibaba's second listing. we will hear from hong kong exchange chief executive charles li. and bloomberg tech is livestreaming on twitter. check us out. this is bloomberg. ♪

emily: welcome back to "best of bloomberg technology." i'm emily chang. alibaba is said to be continuing a $20 billion share sale in hong kong, following the record-breaking ipo in new york in 2014. the news coming as tensions between the u.s. and china escalates, leaving chinese companies grappling with how to deal with an increasingly hostile u.s. government. the megadeal would bring china closer to home. elizabeth: what we know is alibaba is looking at applying for permission to file this ipo later this year. this is a big coup for hong kong

after missing out on the initial ipo five years ago, the biggest one ever. this is their opportunity to win back their national treasure of a company. emily: how much if anything does this have to do with trade tensions between the u.s. and china? the timing is interesting. this is being called trade war ipo. people think this is an unattractive time to look for domestic investors, the kind of investors that use this company every day unlike american investors who could start turning away from chinese investments. the other thing here in the timing is that the hong kong stock exchange has changed its listing rules around companies that have multiple share classes. they started doing that after they lost out on alibaba the first time around, had this long period of consultation, and now it is allowed. it has opened up the market to

companies like this to start looking for those listings. emily: alibaba shares have taken a dive over the past six weeks or so. can we attribute that to trade tensions? elizabeth: it is hard to tell. tech stocks are always first to get hit when there is market uncertainty. over the last five years, this has become a huge company and way up based on when they went public. overall, a big success. emily: what is next? what steps could alibaba be taking that we will be looking for toward making a final decision about this listing? elizabeth: one of the big things we will be looking at is if the bank mandates around this, who they will be getting, and how things are going in terms of conversations with local investors and the demand they are looking at. we are looking at the second half of this year for them to

start this process. they are going in at a very busy time for these tech listings. we had uber and lyft, not so successful, and other companies expecting to come to market. this is joining the big march of tech companies raising money from investors. emily: sophie cameron caught up with charles li to talk about their courtship of alibaba. charles: i am happy if this report is indeed correct, that they are planning to come. if they do come, it is not a surprise to us because i have said, when you travel far you come home. everybody does that. it does not mean that you give up your home, your new home. i am sure it is going to come back and keep whatever they are doing in new york and other

places, and coming back to asia. they could be here or they could be shanghai or shenzhen. we are very happy that they are coming back and we will be very happy for whatever decisions they make. sophie: the news around alibaba's potential listing comes as a trade war is escalating between the u.s. and china. are you assessing your strategy? charles: obviously, this trade war is a global event that will affect all of us in very deep ways. nobody likes it. it is almost watching on the sidelines, praying that this divorce does not take hold and maybe there are ways to scale it back, but we have to see. sophie: what messages are you hearing from potential issuers

when it comes to reviewing their ipo plans in hong kong and elsewhere? charles: everyone is looking at this and asking the question, what does this impact me? this -- this is not only about ipo's, but about the company, the investment, even somebody that just wants to start a business, is this the time to do it? should i wait? the uncertainty that has been created is very costly to the entire economy. they need to take responsibility, quickly define what is really wanted. if you want a, we can probably agree. if you want b, it might be hard but we can work on it. if you want something fundamentally that you know is unacceptable to the other side, we are going through a divorce and go into a civil and peaceful

process to allow everybody to get on with our lives. sophie: the sector has been a key focus of part of the rebound with the stock market. they have seen pre-revenue terms come to hong what are you getting for those changes going forward? charles: we had 10 listings and we are the second largest biotech market locally, and we -- globally, and we have another 10 in the pipelines. the key here is that we are launching this very important chapter in the market where a huge population is aging. this is the area i see tremendous opportunity, but i am also quite worried that there are also attempts to say that this u.s.-china conflict should also somehow spill over to this sector, which would be really ill-conceived.

unlike trade, manufacturing, technology, you could argue that the rights of china could mean the decline of the market and employment or military security, national security, technology advancement. i am not saying i agree with that, but i could see the reasonable argument. in biotech, before you are american, asian, we are humans. we all want -- we want to be healthy. we don't want to get sick. we want the disease discovered and cured. there is only one enemy. there is no enemy between us. there is one common enemy, disease. emily: that was charles li. the hong kong exchange chief executive. coming up, horwitz raised $2.5 billion for new funds.

we will meet with scott kuper to talk about it. later, a galaxy far, far away just got a lot closer. we will take you inside the debut of disney's star wars land. ♪

emily: it is a firm that started shaking up silicon valley after its founding in 2009, scott kuper has become -- one of the most. it has companies like lyft, airbnb, facebook live, and now kuper is out with a new book. he joined us to discuss the current vc landscape. scott: it is good in the sense that there is a tremendous amount of capital.

it is easier than ever to get seed capital. you have this funny dynamic that companies are staying private longer so you have a huge amount of seed capital and a lot of capital going in, in the later rounds. in that respect, it is healthy and a good place to be. emily: venture capital is investing in disruptors but for a long time was never disrupted itself. now you see venture capital firms trying to reinvent themselves. how do you see the traditional model being disrupted in the future? can the way this exists today exist in the future? scott: you are right. the big thing that happened over the last 10 years as we had this introduction of seed firms and it is hard to underestimate how that changed the competitive dynamic, because you have investors coming into play

before venture capital firms. this has forced firms to figure out, what other than money can we provide? emily: are you worried about a softbank that comes in with $100 million? scott: softbank was a party of years ago and now there are others playing in that space. what the industry has to worry about is do something other than provide capital. capital is no longer a scarce resource, so for venture to survive it has to evolve and figure out what other than capital can offer. emily: how does andreasen horowitz continue to be disruptors? scott: we have about 160 people today and about 100 work with our investments, everything from marketing to sales to business opportunities.

we have to think about across the lifecycle for companies so we need to have more emphasis as they go through later and larger advancing cycles. emily: you look across the pipeline in the early stage to the public market. a lot of volatility, trade war, a lot of tech companies going public results. you were an investor in lyft, and you have airbnb and slack coming. are you worried about your company's exiting now? companies exiting now? scott: i think the market is healthy. some companies have not performed as well as we would like, but if you talk to investors like blackrock or fidelity, there is a scarcity of growth in public markets and where you can find growth that is reasonable, there is a lot of demand for that. even though you see some companies have not done well, a

lot of the software companies have done extremely well and we think that reflects the core demand. emily: i was interviewing the uber ceo on the day of the ipo. that is also the date the trade war ramped up. are you urging companies to stay on their path or take a look at the environment? maybe now is not a good time? scott: you always have to look at the environment. the fundamental demand for ipo's and stock growth is there. if the companies are ready and feel like they can perform, this is a fine time for them to go. it is the case that there is more of a preference for software-based companies that have better lines of sight and visibility. people have to be mindful about cash consumption and make sure they know what the street is looking for. emily: there is discussion we are in the middle of a tech cold war with china. would you agree? scott: i don't think we are in a cold war now, but a lot of stuff

is challenging. and it is veryd hard for u.s. companies to take non-us n in and particularly from china. we have been on record that i do not think that is a good thing. we are in the early stages. i do not think it is good policy over the long-term. emily: are you worried about u.s. competitors? scott: i am. we have talked about this. i think capital is free-flowing is entrepreneurship free-flowing. we have been a hub for venture capital activity. today, 50% of venture capital activity is in the u.s. a policy perspective that does not encourage entrepreneurship, i don't think that is good. emily: there have been increasing voices for big tech to be broken up.

facebook isn't the only company we are talking about. elizabeth warren, chris hughes. do you think there is something to this argument that some of these companies are too big, facebook, amazon, alphabet? scott: it is interesting from a political perspective that there is so much going on, and you see it both from the people running for the presidential elections and people in the administration. the ftc is very active. we have to recognize that the impact of technology is felt in many ways that sometimes in silicon valley we do not appreciate, and we have to do a better job connecting with regulators and figuring out if we can have rational regulations that allows entrepreneurship to thrive. emily: does that mean breaking up or not? scott: i don't have a position, quite frankly. it means 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 hermetically sealed bubble in the valley. the reality is these technologies are impacting people in different ways and we have to appreciate the greater responsibility that comes with that. emily: you say you are looking at companies that are just heading there escape velocity? scott: we have two funds. the second will be later stage venture, companies that might have $10 million, $20 million, $30 million of revenue but are not thinking of going public. you will see us do things like make a recent investment in a company called carta, where they have enough of the business model working and they need more capital to expand. emily: the secrets of sandhill road, what are some of the top secrets that entrepreneurs need to know? how do we make sure that all people know these? scott: that is exactly why we wanted to write the book.

there is still too much asymmetry in this business. you have certainly talked about the work you have done as well. my hope with the book is we open that up and help people understand how does the vc business work, what does it mean to pitch vc? how do you live with and work with it? my hope is that encourages more entrepreneurship, not just in terms of gender and ethnicity, but geographic diversity. emily: scott kuper, managing partner of andreessen horowitz. : still ahead, as global smartphone sales continue to slow, apple is betting on its first handheld to make a comeback. why they are rolling out a new ipod touch. this is bloomberg. ♪

emily: apple has unveiled its first updated ipod touch in four years. it will cost $199 and support

new services, including appleseed eplus and apple arcade. the ipod was an instant hit when it came out in 2001, but has been overshadowed by the iphone. bloombergs mark gurman joined us with the details. mark: every time they come out with a major new ios release, the software that runs on these devices, it occasionally loses some compatibility. the ipod touch not updated since 2015 is prime for that because it has older components and a -- and an older processor. they are adding the chip from the iphone 7 that came out three years ago, basically extending the lifecycle of the ipod touch another few years, and making it compatible with the next software update. emily: who is in the market for an ipod touch? you think, just get an iphone or

ipad. who wants to buy an ipod touch? : what you are seeing is some parents are putting them in the christmas stockings of their kids. this is an entry-level ios device for kids who might not want or need a cellular plan. it is much cheaper. the iphone x costs $1000. this is $200, 1/5 of the price. if you are in the android ecosystem in terms of your phone and you want ios as a secondary device, ipod touch is something you might be looking at if you want something like an ipad but is pocketable. someone who wants to use it as a digital camera, likewise. these are really big in enterprise. a lot of stores are using them as point-of-sale devices. it makes sense that apple would update it, but not too much. they are not doing much other

than swapping out the processor, which makes it compatible with services they have been rolling out over the past several months. emily: i stuff my stockings with bubblegum, but ok. how does this fit into apple's broader content and services push? mark: the ipod touch is the cheapest way to subscribe for apple services. that is what they are pushing this thing as and positioning it for, to go on their website. their marketing and pr is all about the services, which makes sense given what we have seen lately. they have talked about the prices of the augmented reality device. the processor of the ipod from 2015 was not fast enough. other than that, you are not seeing a big update. you can do all the stuff you can already do on the iphone or an ipad. emily: we have got wwdc coming up next week and you reported on a lot of things we expect apple to unveil.

what are you looking forward to for the event itself? mark: it should be action-packed. i am expecting big updates for the ios and the os that run on the ipad and the mac. the big entree will be unlocking ipads for the imac. twitter, netflix, facebook to get into the mac app ecosystem for the first time, or the first time in a while in the case of twitter. the apple watch will become more independent. that is a big theme driving the app store to the watch, a big move for consumers and developers looking for additional exposure. on the iphone side, i don't think it will be a significant update but there will be lots of tweaks around the system, hitting on the wish lists of some consumers.

the ipad will get an update to make it more compatible with pro features. what you saw them do last year was amazing. the ipad pro harbor wide is one of the best tablets you can buy. the software has been behind and they are going to fix that. emily: it is a galaxy now not so far, far away. disney unveiled its wildly anticipated star wars, galaxy edge theme park in california. the 14-acre project has officially opened to the public. bloomberg's ed ludlow got an early look inside. ed: the newest addition may not be in a galaxy far far away, but standing in the first full-size millennium falcon ever built, it feels like it. edge, anded galaxies two main attractions, one is

centered around the millennial falcon. you attempt to smuggle goods across the galaxy. later this year, they will open rise of the resistance, which will mimic a fight with the world order. it will open by the end of 2019. fans can build their own lightsaber or droid. neither come cheap. the lightsaber is $200 and the droid, $100. galaxies edge is disney's biggest ever park expansion and the park segment accounts for more than 40% of disney's revenue and it is becoming more important at a time that disney's those profitable business, tv, is losing viewership. disney invested $4 billion across parks in 2018. i spoke to the chairman and he said investors should expect that kind of investment to continue. >> walt disney said disneyland will never be complete as long

as there is imagination left in the world. you couple that with walt disney imagineering. i suspect this is a new high watermark but it certainly is not the end. it is just the beginning. ed: the gross receipts from the films closed with almost $5 billion. disney hopes a galaxy edge park would drive more merchandise. the star wars franchise has had less traction in key markets like asia and specifically, china. reservations for the land in california sold out in two hours. bloomberg expects the force to be strong with disney, especially when they report third-quarter revenues in august. emily: that does it for this edition of "the of bloomberg technology." you can tune in every day, 5:00 p.m. new york, 2:00 p.m. san francisco.

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viviana: coming up on "bloomberg best," the stories that shaped the week in business around the world. elections in europe send political and economic shockwaves across the block. >> the pro european majority is holding. what does it mean for who is going to succeed theresa may? viviana: trade tensions continue to move markets. investors seek safe havens as the mood music darkens. >> people are sort of saying let me get into safety, and then let's see how this uncertainty shakes out. viviana: an alliance of carmakers may shakeup the auto industry. alibaba mulls an asia ipo.