♪ i read chang in san francisco and this is bloomberg technology -- i am emily chang and visit bloomberg technology -- this is bloomberg technology. the latest on the imminent direct listing. of the google shareholder meeting. asking the question, where is?

larry? and weighing in on the cryptocurrency. first, to our topsoil. a direct listing on thursday. yet waiting to see what the reference price will be. the they find themselves in beyond meat camp with a sizzling debut or will it be more like a sizzle like uber and lyft? product growth. it grew from half a million almost 6 million. new column out. let's start with you. , youformer head of growth have a beloved product, but revenue growth is slowing down. cannot be we accelerated?

accelerated?e slacker is really coming into the workforce. emily: you think that it could start to grow faster than it has? >> i cannot make predictions on how they will do, but i am excited about mistakes. anywhere have heard from 16 to $20 billion. how does that compare? these young and fast-growing companies are beating at what seems to historically rich valuation compared to their revenue. you mentioned the column that i wrote about this new stratosphere of multiples of revenue.

think we have seen it before, historically. a lot of promise, but investors are paying a steep price to get it. public and hadt a big pop. it is profitable. profits are slim, but they are there. when you are there, how much of a pop -- priority was profitability? it today? imagine >> we were focused on driving up the top line growth. we were confident that people would pay for it. emily: that is another question. i know that you think this is one of the risks. downturn,economic will companies simply decide that they do not need it?

to be fair, i have to give them credit that there is a lot of nv in the silicon valley. when growth really accelerated, people thought it might be the next chatter or other messaging software that came before. we have nott that seen a lot of these software to -- software companies tested. what happens if the company decides that they need to trim the budget? some understanding, entrenched technology, maybe that is no longer necessary. i think that remains a risk for all of these young companies. emily: we live in the silicon valley. many people cannot live without

slack. do you think it is in the nice tonight -- nice to have category or need to have? , are they going to recognize that? >> i think it is in the need category. we cannot imagine a world without email, texting, instant messaging and things like slack. about thek to us company. it is very unique. you have a blog post out about the ceo. the unique ways that he would kick off a company meeting and how that has been integrated into the product. is everybody going to get it? came withcess that building it is different. the outcome that they are

looking for is joy, engagement and for people to really love it. emily: are investors going to buy this story? on theirjust relying good name and the people who know what the product is like to buy in. bit lessa little handholding by bankers and other professionals, but at least, if you look at business software company, this is a category that investors love. companies that were warmly greeted by investors and what you have seen is that people that were stock buyers understand the model. they see predictable growth rates, subscription software

that you can model out for years. what you have seen so far is that software companies are the stars of the soft -- stock market. they buy will see if into slack. thank you so much. note that bloomberg lp is an investor in slack. sales topped estimates, marking the second i just software maker's return to growth. wass from cloud services unchanged. , they forgedmonth a partnership between them. the annual shareholder meeting became a moment to call out the company.

wantworkers and activists google to answer for. this is bloomberg. ♪

emily: alphabet shareholders asking the big question, where is larry? they descended on the location, not ok up signs reading google. activistsrs and protested a range of issues including payouts to former executives accused of sexual harassment. sizesaid their massive comes with a deep sense of responsibility to create things that improve people's lives.

ceo was not there. , where wasmore larry, garrett? >> i do not think he was sick. i do not know where he was. the chief officer did respond to one question saying that he was busy. he is engaged with the company, but that was not enough for quite a few people who felt like this was the only opportunity that a lot of smaller investors get to ask questions to the ceo. ceos do show up to keep up the appearance, but he did not show up to this one. emily: none of the proposals past. the proposal calling for google to clawback the compensation of executives that have been paid

out, despite sexual misconduct. none of those past. is there a sense that the relationship between workers and shareholders and google management is praying -- fraying. thousandsre tens of of google employees around the world and tens of thousands of contract workers who do not have all the right. when you look at some of the activist employees, leading these protests against the company, they are a small portion. it is difficult to know what the actual feeling and i the company is. seem among the ones .hat i talked to they do say that things are changing and the company in

terms of everyone being on the same page. us about howo change can happen at. to be fair, the proposals almost never pass. shareholdersyees, push for change at a company where even the ceo does not show up to the general meeting? >> is not just google dealing with this. there are founders that have complete control over their companies and not be involved day-to-day. zuckerberg can theoretically fire the entire board if you wanted to. these are at the center of a lot of clinical questions. people want accountability and it is difficult when it comes down to one or two people that may or may not show up to an event like this.

they have gotten rid of forced arbitration in response to a lot of protests and noise being generated. i think the company is still very aware of its perception. to dore in the world good, they are a force for making the world a better place for people. most of the people do believe that. you call them out like this, it is a way to slowly make change at the company. the pace is not as fast as some of the activists want it to be. you for that update. meantime, the slack reference price just cost. $26 a share. this is not an opening price. this will serve as a guide.

it would give slack evaluation in the range, which is what the company was targeting in the lead up, but it is twice as much .valuation we will be watching to see how the opening price compares to the reference price when shares start trading tomorrow. is not streaming service launching until 2020, but it is already making in the ad dollars. down at thesat conference in france to discuss what is drawing people in before it is even taking off. >> this is a mobile only platform, married with a text platform that allows video to be

viewed on mobile in an entirely different way. it is targeted to the millennial audience. targeted towards this millennial audience on the go. they think it is a unique opportunity and that was how we were able to announce that we have some of the most innovative brands as our launch partners. over 100 million already signed up. this is also a subscription model. is $4.99 a month, plus 99ertising and seven dollars cents a month without ads. customers will pick the ad for a diversion. it is similar to the hulu pricing model.

about 70% of their users have chosen the ad plan. >> some of the supporters are hollywood -- hollywood makers of content. when you have disney supporting you, disney is also launching disney plus. how do you see the competition? studios areollywood all investors. they have also made available some of their best governors. they want us to be successful. as a growths opportunity for the studios. high-quality and television oriented. we are on the mobile, on the go viewing. neither party thinks that this is competitive.

the likes of youtube and facebook. i thought it was interesting that he brought up brand safety. everything is chosen. reactionou seeing the from capitol hill and consumers, the power that social media has and how that fits within the social media and advertising realm? >> think about how different it was. whenever there is a big change, regulators want to see what is happening. we have a very clear view of what we want to offer numerous. safeile only, brand environment where we are being quite conservative with how we are sharing data with advertisers. share advice i

geisha and. access toem wanted that but they understood that this is a different time and place for a different platform and we have a chance to go from the ground up. whitman speaking with caroline hyde. coming, i.e. packing your suitcase? one of the busiest time of year for the travel community. our conversation is next. later, sheryl sandberg speaks out. our conversation with her covering all the hot topics. are calling for regulation, not just -- we are calling for it. we want to be acknowledging that companies like ours should not make as many decisions as we do. we know that.

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emily: we learned that airbnb is expanding ethics unions business and doubling down on tourism. this is an advance of an ipo, likely next year. they are trying to be a one-stop shop for all vacation needs. expedia ceo. by >> we are the future. emily: exactly. airbnb is one part of it. doingve startups that are alternative accommodations. how do you compete and keep up with that? been at thelways forefront of travel. one thing that has been -- experience.

one thing that has been consistent is this is a incredibly competitive industry. ,espite the competitive forces expedia did 1000 -- many of these players out there, we have thousands and thousands of product minds in the world focused on travel and that is how we stay ahead. rebranded.recently >> people get used to it. emily: why? why not consolidate homeaway? vrbo has been around for a long time. people used to talk about it in one for the weekend. did a ton through and of research and internationally about all the different names

that we could call the new vrbo, thatwas the one reverberated the most. emily: will we be seeing you make acquisitions and investment in this phase? >> is always part of the playbook, i -- so i would never say never. allre pretty excited about of our efforts behind vrbo. emily: it is june and peak travel season. he had a trade war, market volatility and incredible amount of hostility around the world. >> so far, so good. it looks like a healthy travel environment to us. a 5% of people are planning on taking a trip this summer.

15% was for budget constraint. americans are traveling, global travel industry looks pretty healthy. emily: are you thinking about it? do you have a plan b for it things go south? we are fortunate that we are a global business. in good times and bad times, we see the shift and travel patterns, but people often take their trip as last thing that they cut. it will not take that trip overseas, but they travel. if you look at the results, they were some of our strongest years. emily: you are looking into how ai can change the travel experience and boost your numbers. 750 million visits to expedia

group properties every single month. that gives us an incredible amount of understanding around what travelers are looking for, how we can tailor hours -- our search results. that is just the beginning. withe using ai to help pricing tactics, to help them price more effectively. just hittinge started. emily: as you have gotten more one stop shoppers, google is doubling down on travel as well. amazing. we have been doing the one-stop shop before it was cool. we are about booking and taking care of people during the trip. ceo of expedia, thank you.

coming, our exclusive interview with sheryl sandberg. this is bloomberg. ♪ . .

emily: this is "bloomberg technology." facebook coo sheryl sandberg says the social network is working to put safeguards in place to stop election interference ahead of the 2020 u.s. election, but is it too little, too late echo she spoke to caroline hyde in an exclusive interview. >> you see something that is targeted to you and you think it has violated your privacy to get there, it is scary. we have not given any individual information, but we have just

taken that ad and shown it, all of a sudden, it is a better experience. we have to do a much better job explaining our business model and explaining why targeted advertising is so important to small businesses around the world so that people feel more comfortable because it is a great service. one-on-onen a message, you would still see that ad, but it would not feel creepy because it is a one-on-one message? >> we are targeted -- we are working on it. but again, if you believe no one is reading your messages -- and let's be clear, no one is reading your messages -- that is a good experience. if it is targeted to you and you are worried about how that happens, that is less comfortable, so that's why we need to make the case in a clearer way. caroline: i like that you brought up this has become a focus point, privacy, and we , "i heard mark saying realize i did not get it quick enough. i made a mistake here."

have you come to understand the witty consumer is viewing privacy and how you are building that into your culture, into your business model -- the way the customer is viewing privacy? >> there is a growing understanding of how important privacy is and how we have to protect it. we were allowing people to share too much data early on before 2014. if i used an abp, i would share my information and i could share my friends' information -- if i an app. ap the concern then was that we were hoarding data and not sharing it. we had this vision that we would enable you to make your apps more social. you have a playlist, we are friends, i want to hear your playlist. my friend has a birthday, i want to import that to my calendar. those are great experiences. what we learned is we need to

share the minimal amount of data in ways people really understand it and have full control so we can create those experiences, and i think we are doing that now. we are also looking for the best models around the world. in europe, gdpr is the most far-reaching privacy legislation that has been passed. it did not pass anywhere else in the world, but we took those controls and made them available everywhere because we know people care about their privacy and we know we need to give them the tools to understand this. it is your information. it is your information. you choose to share it with your friends on facebook. you can choose to share it with businesses or not. that is up to you and we need to make it clearer how that works. caroline: do you think the anger you witnessed was justified? how did you take it personally? you know?s been hard, as anyone who wakes up in the morning and is working hard and trying to do the very best i can

, being attacked -- and being attacked personally not something i've experienced before and definitely hard, but i think it should be hard because mark and i and the other facebook leaders and our employees -- we have a really big responsibility. i have a really big responsibility. they're a things we missed. we wish we had understood the russian interference in the election. we have worked hard to get ahead of it and i think we have done much better in the eu elections, the u.s. midterms, but the fact that this is hard is important because we have a responsibility to people around the world who are using our services. a major responsibility. and i have a responsibility to protect them. caroline: there are nice to hear you say that. thank you. up is like you bringing gdpr, eu elections. talking about the 2020 elections in the u.s. are the right safeguards in place, do you think? >> we are on building that. what happened on our

platform. if you go back to 2016, we were worried about foreign actors interfering, but what that meant at the time was primarily hacking into data. that is what lauren actors did, -- that is what foreign actors did. we had a really good track record on that, but what we did not see at all -- we missed it, everyone missed it, but that is on us -- is a new, more insidious threat where people did not hack in and take stuff that they wrote fake stuff -- but they wrote fake stuff. once that happened and we understood it, we knew we needed to put a engineering, serious money behind it. serious engineering, serious money behind it. the u.s. department of homeland security has a task force on it now. they did not have that then. in the eu, we had a very local approach. we took everything we learned in the u.s. but worked with experts from 28 countries and had a

local operations center here, and we were able to systematically find and take things down. we are taking down one million fake accounts a day, almost all we take down before anyone has seen them. i am never, ever going to say to you or anyone else we know everything that is happening on facebook. we don't. but here's what we know -- we know we can come together with governments around the world and other companies to do better. we know that we are doing better. we have seen it in the eu, seeing that we can take down these coordinated behaviors now. we know that new threats have not been invented and we have to be really vigilant to prevent against them, and that is what we are doing. we are going into elections around the world and the u.s. 2020 elections, where going to be as prepared as we possibly can. emily: caroline hyde there with facebook coo sheryl sandberg. coming up, more of that conversation including what she has to say about facebook's new

cryptocurrency, libra, which is already facing major blowback on capitol hill. this is bloomberg. ♪

emily: facebook made big headlines announcing its own digital currency, but lawmakers are already calling for the social network to stop developing it immediately until regulators weigh in. coo sheryl sandberg says lots of details still need to be worked out. she also talked about facebook's m&a strategy in this exclusive interview with our own caroline hyde. take a listen. >> it's interesting when you think about him in a because instagram is so big now, but when we bought instagram, it had 13 employees -- 13. -- interesting when you think about m&a.

banks would call like we are here to do your immigration work, and we were like we have already given them a badge and a computer. we will see what happens with m&a. a lot of the acquisitions we made were not big at the time. caroline: and they have now become enormous platforms we know well. going back to the regulatory conversation, just to be topical, i'm sure most of you know crypto in the audience. i'm not banking on everyone having used it, but the libra announcement -- what exactly is it going to do for those in the audience? how are advertisers going to use it as well as the consumer base? >> well, we have not launched anything. we have done an announcement and even once we do, we are pretty far away from advertisers using it. we are a technology company, obviously, but we are a technology company that wants to bring everyone along. mark's vision was give people a voice all around the world. there are 4 billion people in

the world who do not have access to the internet, and that is something we have worked on. we have now connected 100 million through programs we have around the world, largely with carriers. there are one billion people in the world who are not connected to the financial system. let's talk about what that means. if you have one dollar, you have nowhere to keep it that is secure. not a surprise, that for everyone, but particularly better for women. there are 100 million women in the world who are sending what is called remittances, which means most of them are leaving their homes, working often in other people's homes so they can send money back to their families, and they are paying .uge fees and 20% more than men we want technology to help everyone. what we announced yesterday is the formation of a global association -- the libra association. it will be based in geneva. we have 27 partners -- some incredible partners, paypal, mastercard, vodafone, spotify,

ast, real companies as well in's and nonprofits, and what we would like to do is help their be a cryptocurrency that is more inclusive -- as well as ngo's and nonprofits. to not run this. it is going to be an association , not reporting to facebook. caroline: your immediate response to the regulatory scrutiny -- we've already had maxine waters and plenty of congresspeople speaking out about how you should halt it already. how do you feel about the initial take-up of this? .> well, we announced it early we announced the formation of an association and that's because we know we have a lot of people to work with. we know this is a heavily regulated space.

we need to talk with people, meet with people, and that is what we're doing, and we are then going to launch. emily: facebook coo sheryl sandberg with bloomberg's caroline hyde. for more on libra and the controversy, i want to bring in kurt wagner. caroline mentioned that maxine waters, the chair of the financial services committee, called on facebook to stop immediately.bra mark warner saying he is concerned facebook is using their dominance to dominate another industry. sheryl sort of glazed over it. >> i think there is a misunderstanding from some people that facebook just totally dropped this yesterday without having told anybody about it. that is not actually the case. as the company has said, as they told us, they have been in touch with some regulators. they have talked with people about this. we don't know exactly who or to what depth they have gone in that conversation, and i think the initial that reaction -- and

part of this is facebook's fault , right? we've spent so many years criticizing facebook for its privacy issues, its ability or inability to handle data that as soon as we hear facebook and banking, personal finance coming together, it is a scary idea. a lot of politicians are saying they want to hear more about it before they ok the concept. emily: are they modeling issues? >> i don't know that they are muddling issues. this is not a topic you can quickly come to consensus on. when we talk about personal finance, global finance, those have really deep and important questions for consumer practices . i don't necessarily think it is muddling. i just think it is more complicated than you can do overnight. facebookw does envision the currency being used? she talked about remittances.

there certainly are other use cases. >> there are and the remittance use case is something facebook has touted. you can send money to family and friends. there is a peer-to-peer element to this. the way i think they envision this being used through apps is through whatsapp and messenger, so there will be a wallet that will exist in those and you can send to friends or again maybe buy something from a retailer. you have an exchange with the customer service person at macy's or nordstrom and you pay right there through the app. i think they see this as a very commerce friendly thing with them. what we do not know is if people will actually adopt it and they they trust facebook with this information. -- say they trust facebook with this information. emily: you wonder, given the firestorm facebook has been involved in the past few years, if they were prepared for this pushback. great counter narrative, democratize currency, and very

quickly it went south. >> well, it is a grand vision, right? there is some confusion she even cleared up on stage. this is not something that launched, right? this is a plan. facebook yesterday said, here is what we want this to look like, not here is what it is. with a lot of plans, there is a aand vision, and there is best case scenario. suddenly, the fees that come with sending money to family and friends overseas disappear and you can send it over night. that is not going to happen at least right away. emily: what are your sources telling you? not going to scare them away. i think they were pretty prepared for this. in fact, it would have been pretty naive of them to launch this and think known was going to ask these types of questions. i don't think this is going to slow down their process, at least right now. emily: thank you for weighing in. ahead, trade war

uncertainty is looming over apple. new reports say apple is asking china-based suppliers to consider moving production. this is bloomberg. ♪

emily: xiaomi plans to spend another $700 million to expand its chinese retail network over the next three years to stave off huawei. bloomberg is reporting the smartphone maker will grow distribution channels and invest and sales staff. bloomberg has learned tesla is

overhauling its organization in asia to focus more on china. he company is about to start manufacturing in the world's largest electric car market. ceo elon musk betting on china to boost sales and restore investor confidence, which has tesla stock. with apple is considering moving 15% to 20% of its hardware out of china according to a new report. the tech giant is said to have asked major suppliers, including -- major suppliers to a value at the cost and feasibility of the move as the u.s.-china trade war continues to escalate. joining us from new york to director danging ives. this will be a huge shift in apple's longtime strategy for the production of its devices. what's the case? >> it will be massive, and ultimately, we think test case, 5%, 7% of production could go to

would be athis gargantuan type of shift for apple -- we think best case. with u.s., china, how much of an impact it has had, we have had to think twice about betting the farm on china. emily: talk to us about how apple would do this. foxconn has said it could move production for u.s. iphones outside of china, but where does it go? where can it go as fast as it needs to go, potentially? >> they can paint a rosy picture, but their hands are tied at this point. ultimately, apple has made its bed in china. that is where the company's focus. obviously, foxconn, 1.4 million chinese that they employ, and that is really something that could disrupt the food chain, andd disrupt the supply

perspective and ultimately lead to more costs for apple. i think right now, this is a poker game that they are playing and i continue to think that they are not going to move reduction out of china, but ultimately, it really comes down to u.s.-china trade talks. they continue to be the poster child for that situation. our reporter who covers apple for bloomberg technology joins us now. what exactly do we know about apple -- what apple asked suppliers to do and if suppliers are actually going to do this? apple asked for between 15% and 30% of production to be explored, to be moved out of china, but i essentially agree as he was saying to you in this conversation. it is a little bit of poker. apple needs the help of some of these suppliers in order to work with the chinese government, to work with the u.s. in order to get these things resolved.

my opinion is if they are going to start shifting things out of china, it's going to be a gradual process. this is not something that is going to take overnight. this is something that if apple were to go full throttle on this, this could take five to 10 years. it would require building new facilities and i think moving things from china to vietnam, malaysia, india, and other countries in asia, that is more of a stopgap. if you are going to move everything out of china, you might as well go all the way and move it to the u.s. the manufacturing world is moving towards automation, towards robotics and apple has the money to potentially put together a breakthrough facility like we never seen before where they can -- like we have never .een before emily: yet, despite the fact that apple is one of the richest companies in the world, has a huge stockpile of cash, they have kept production in china for a reason. in part, i imagine it is because

of cost. could you see, despite the rise of automation, which will come, but it is going to take time, apple really moving its production to a more expensive ? ace >> i think the robotics aspect of it and automation will actually solve that. for now, the technology to do that is not there yet. going to other places in asia that will solve the cost problem, it will not be much more expensive than it is in china. they are doing their checks here, balancing everything out, and they probably realize avoiding the tariffs will save them money in the long run is moving to malaysia, vietnam, thailand, some of those other countries, but eventually, if they are going to revamp their entire supply chain -- to be honest, this is not an easy thing. they have had this infrastructure for decades in china that could pop out hundreds of millions of devices each year. they are not going to just throw that all away to move to malaysia or indonesia long-term.

there has to be a bigger play here. apple has invented so many things. it has been the first technology giant to so many things. my true thing, and this is just opinion right now, if they are going to do this, they're going to do it did and it's going to take a long time. emily: -- they are going to do big.ed -- do it emily: it is hard to imagine the u.s. and china going back to the way it was. no matter what the outcome is, do you think apple should diversify anyway no matter what happens? >> it all comes down to what to $325 billion. if that threat is ultimately just talk and never happens, i don't think anything changes for apple in china. that would be a strategic move, a blunder if they moved out of china. as long as the trade deal gets done, there's no more tariffs.

ultimately, it would be major disruption and cause more problems than success if they ultimately did that. the only way they did that and are forced to do it is if a trade situation continues to spiral more negative. just like i think, west case, 5% to 7% in the next 18 months -- best case. right now, apple's hands are tied. cook is essentially a pseudo-ambassador between the u.s. and china. emily: we are obviously watching to see where the chips fall with these tariffs, how that impacts apple. thank you both. that does it for this edition of "bloomberg technology." we have coverage throughout the day on bloomberg television and .adio thursday be sure to tune in. bloomberg tech is livestreaming on twitter. you can check us out on technology -- check us out at technology and be sure to follow

our global news network on tictoc on twitter. this is bloomberg. ♪ we're the slowskys.

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paul: welcome to "daybreak australia p are cohen australia." here are the top stories we are covering for the next hour. law is clear that i have a four-year term and i fully intend to start it. ruf: the fed chief