Of a u. S. Trade war, is it a risk to investors . First, to our top story, facebook shares took a hit earlier today after the wall street journal reported Mark Zuckerberg knew about the social networks problematic privacy practices. Facebook uncovered emails in the process of responding to a federal privacy investigation, raising concerns that they would be harmful to the company if they became public. The journal says that is part of the reason why the company salt sought a quick settlement. Here in me in san francisco, our bloomberg tech executive editor, so, tom, explained this to me here. The nuts and bolts here. What is the journal saying that facebook uncovered . Tom they are referring to an email exchange, which, by the way, they have not seen them. We certainly havent. We dont know where they got them. Apparently there was this exchange in 2012, around the time that the ftc was handing down this consent degree punishment about facebook and its privacy practices. At the time, there was an interchange among some employees at facebook, including zuckerberg, about certain types of information on millions of facebook users that were available on this thirdparty app available to its users. The question went something along the lines of, is this possible, and is there anything that we should do about it . And the Exchange Went on after that, but, again it raised , questions about what it facebook know, what did Mark Zuckerberg know, when did he know it, did the company take adequate steps to deal with privacy concerns on the data that was leaving the platform . Emily now, based on my read of the journals reporting, there is also indication that this happened around the time of the ftc consent degree that facebook agreed to abide by and indicated that perhaps abiding by that decree or following those new orders was not a priority, Mark Zuckerberg, however, a spokesperson for facebook said today that at no point did mark or any other employee knowingly violate the companys obligations under the ftc consent order, nor do any emails exist that indicate that we did. How do we make sense of that . Tom look. The issue is this is why Companies Settle litigation or settle internal investigations and regulatory probes, but inevitably what happens whenever somebody goes crawling around into executive email boxes, things come out that may not reflect well on those executives. We have seen that over and over again, including in the case of facebook earlier this year. Lawmakers in the u. K. Released at this selective disclosure of emails and internal documents from facebooks earlier days, which did not paint Mark Zuckerberg in a flattering light. He appeared to be this very moneygrubbing executive who cared more about facebooks bottom line and growth than about protecting users. Again we have seen this movie , before, where emails can be released that, at least without additional context, may not look great for these companies and that is why we may see facebook settle this ftc case, as they may do other similar cases. Emily the ftc does have the option of taking facebook to court. But, as i understand it, that would be more risky for both sides. They might get less. Meantime facebook has said they , set aside 5 million for settlement. We have been waiting for news about the settlement, but it hasnt happened yet. Tom, what is the latest on that . Tom right. They set aside 5 billion for that, which i haste to say that that adds up to chump change for facebook. Is that enough for penalty, and are there people in the regulatory side of the Trump Administration who are saying, that is not enough . And so, we do have to ask the question of do we have evidence, and do we leak it to the journal or other publications, which as it may portrayt, zuckerberg and others in an unflattering light and raise questions about whether the 3 billion to 5 billion that they might be fined is sufficient. Should we go to the place where we ask them to change their practices and extract a bigger chunk of flesh from facebook . Emily meantime, shira, the punches keep coming. There has been another fake video posted on facebook, this time of Mark Zuckerberg in the style of the nancy pelosi video. Facebook has decided not to take it down. Meantime, Mark Zuckerberg has reportedly called nancy pelosi a couple of times, but she has not return his calls, so the plot thickens. Shira it does, indeed. All this goes to show that the only bipartisan issue in washington right now is hating Big Tech Companies. Facebook most of all. We have seen this from nancy pelosi, from donald trump, who has said we may need to take a look at the monopoly power of some of these Big Tech Companies and also he said that facebook and google and other Tech Companies suppress conservative voices. There has not been evidence of that, but you see on the left and the right side of the political spectrum that facebook is not popular. Emily so, tom, what is next . Tom well we are waiting to see , what the settlement is going to be, what kind of fine is going to come down. Were also looking at what this division of big tech between the doj and the ftc what does that hold for us . Doj, it seems like it is gearing up for some kind of probe of google. Doj will have oversight on apple. Ftc has got amazon and facebook. So lots of potential for headline risk to these companies in the months and weeks ahead. Emily ok, we are keeping a watch on the very latest. Tom giles, thank you. Meantime, on spacex launched the wednesday, radar constellation carrying a new generation of satellite observation satellites. The falcon 9 rocket and payload rumbled along wednesday from foggy Vandenberg Air force base on californias central coast. The three satellites began to deploy about 54 minutes after launch. Rockets laed the unch for a landing on a military base. Coming up, the year of the tech ipo continues. We will talk to george kurtz about going public next. If you like bloomberg news, check us out on the radio. In the u. S. On sirius xm. This is bloomberg. Emily the year of tech ipos continues. Shares of a Cybersecurity Company soared in its first they are trading. Stop jumping 97 at one point. Crowdstrike raised millions in its ipo, giving it an 11. 4 billion market cap. Still like many recent tech ipos, crowdstrike is unprofitable. The reported a net loss on revenue of georgia 50 million. Lets bring in the ceo who joins , us from the nasdaq in new york. Congratulations. It is a volatile market, so the pop in the stock is welcome. What made you decide, given all of the issues, a lingering trade war between the u. S. And china, for example that now was the , right time to go public . We are, at crowdstrike, focused on going public when we are ready. Im our perspective, we have always taken a longterm view and today is one day where we raised financing round and we are to focus on the future. So i think we should look back at today and celebrate, but tomorrow, we are back at it and focusing on Customer Success and preventing breaches for companies around the globe. Emily how much are you following what is happening globally and how much exposure do you have to china . George we dont really sell in china. So that hasnt really affected us. I think from a china perspective, we typically see a lot of activity around geopolitical tensions and the activity tends to manifest itself in cyberattacks. So with some of this unrest, we continue to see nationstate attacks, and, again, why we started the company was to help organizations around the globe event against these determined adversaries and nationstate actors. Emily it is certainly what is happening with the u. S. China trade war impacting u. S. Companies. The cybersecurity landscape continues to change. The Threat Landscape continues to change. How do you stay competitive in an everchanging world . George a big part of our success has been the fact that we have built a cloud that form and in security, there hasnt really been a security cloud. If you think about service day, and workforce, there has not been adequately company. Part of our approach has been to collect a lot of endpoint data, Security Threat information. That has driven a lot of our Artificial Intelligence algorithms that we have. The more data we consume, the smarter our technology tends to get in identifying breaches that have never been seen before. So that is a big part of the overall story, and i think what we focused on is that platform approach, as opposed to building yet another point product, and that has resonated with our customers. Emily what are the biggest trends you see on the horizon, given that we are going into the heat of the u. S. Election season , and the last u. S. Election was certainly not secure . George well, whether it is elections, intellectual property theft or distraction from ransomware, these are threats that organizations have to deal with. I think what it does underscore is just how Vulnerable Companies and organizations are to these sort of cyber attacks. Unfortunately, they have been burdened with Legacy Technology that has been incapable of identifying these breaches. Again, that is part of what we really focus on, which is Building Technology not only to stop malware, but the broader issue is actually stopping breaches. Emily what trends are you seeing and company decisionmaking . Rising to this threat . Are they as protected as they should be, or are they still very vulnerable . George i think, more broadly, they are still viable. Unfortunately, there is a tapestry of Security Products they have been using that have not given them the visibility or the protection that they need. From an awareness perspective, the good news is boards of directors are taking this seriously. This is a board issue, a risk issue, and when you look at some of the attacks we have seen a few years back, where ransomware literally took companies off the map for many weeks and months on end, in some cases. It moved from purely being wow, this can be a Systemic Risk for corporation, and worst case, they are spending hundreds of millions of dollars in trying to recover their company and bring it back to health. Emily meantime, we reported that cisco held talks with possibleke about a deal. That deal did not happen. Why did you decide that the right course was staying independent . George i cant comment on rumors, but our goal has always been to be an independent company. I think we built the company, we have operated it as if it were a Public Company when we are private, and i think our growth and our financials are, again, of the scale of what a company should be. We went public when we wanted to , and i think we have seen a warm reception today from institutional investors. Z, ceo of, george kurt the now publicly traded crowdstrike. Thanks so much for joining us on a busy day. Coming up, the sec has been debating its own ban that could stifle huawei. Can the Chinese Telecom convince them they are not a threat . That is next. This is bloomberg. Emily last year, the ftc chair ajit pai weighed in on u. S. Efforts to ban huawei by suggesting his company may prohibit companies from using huawei increment. Huawei has responded, telling the fcc that banning particular vendors on grounds of National Security will do little or nothing to protect the security of americas telecommunications networks. To discuss, we have todd shields who covers the ftc. How big a deal is this potential action . It would be a big deal in u. S. Domestic terms. This is a problem over the fcc. It is one everyone can watch. We can see the filings by companies by National Security experts. It is a bellwether in that sense. In terms of huaweis business, small rural 40 , providers. In terms of rural providers, big deal. They use huawei equivalent and need to continue to do so. Emily does huawei have a point in that changing out the equipment could actually make u. S. Networks more vulnerable rather than less . Todd the point is a little obscure to me in their filing. You know they would be buying , presumably somebody other than huawei. Perhaps the point huawei is making is that it would undermine the performance of those networks. And they point to some rural providers say, look. If you make a shut down our equipment, we may lose network performance, so would be hard to some and first responders, emergency services. Emily when will the fcc make a final decision . Obviously, there are a lot of simmering and lingering issues around huawei . Todd this is interesting. The fcc chairman ajit pai was in Congress Today and was asked, what will you do if mr. Trump decides to resolve the huawei question as part of a trade deal. He said he would still be strong on National Security, didnt tell us when there might be a decision or what it might be. So it looks like they are delaying waiting for some things , that are floating around here to resolve. Emily ok, bloombergs todd shields, thank you. I want to continue this discussion on the security of five g networks. Our next guest in new york, a , and justat deloitte named the new leader of its u. S. Cyber practice. In washington, ceo of National Security services. I will start with you. What is your take on the ratcheting up of u. S. Action on huawei while we are still waiting for the u. K. Government to make a determination about whether to use huawei in its networks at all . Hi, emily. The geopolitical underpinnings of 5g are pretty interesting. The reality is the u. S. Government feels that some companies in china, because of the strong leadership or ability to influence these companies and what they do, potentially could create problems in some of the hardware that they provide. This is a dialogue that has been going on with huawei since 2012 in the House Intel Committee report related to it, so this is just a natural continuation. Underneath all of this, you have the larger issue of the dynamic between the u. S. And china and who is going to control and have the most influence on information in the future . And 5g is central to that. It really is the next generation orthe Industrial Revolution as some call it the fourth generation of the Industrial Revolution. Emily is the u. S. Government making the right call on huawei, given the importance of the future of 5g . Yes, and i think incredibly well said that when we look at 5g, it is the combination of industry and automation and when you think of all the different ways that we could be looking at the information coming in, it is billions and trillions amounts of information, whether that is facial recognition, Artificial Intelligence, just the sheer amount of data, you will have to have a harder look at the cyber activity and threats occurring around that data. Emily mark, lets talk about 5g in general and where, if not huawei, the market will be concentrated. I, what companies will be running the 5g networks . Whose equipment will be embedded in these networks around the world . Mark that is a great question and somewhat misunderstood. There are three and to end hardware infrastructure providers. And others. Kson, they can do endtoend. We have a bunch of Device Manufacturers and all sorts of other players. A lot of the chips that go in our u. S. Companies. If you go away from huawei as the core provider, a lot of it would be nokia or ericsson and a potential combination of others. What is important is what 5g brings us. This is a huge change. Deborah alluded to a lot of this. We will be able to enable robotics. We are taking data that have been centrally managed in the early generations of the internet, and we are spreading it out to the edge, and there is going to be a lot more layers of Security Associated with that an opportunity around security. This is going to change the way we operate business and the way we as humans operate, much like 10 years ago when we had the advent of 4g, we didnt realize what smartphones would be like. We will have similar things here. So i think there are plenty of providers. I think the market will stabilize itself. Primarily, these are offshore providers. The u. S. Does not have a major player in that core backend. We do have the key telecommunication Going Companies and other players in this business. Deborah, ashile, the world becomes more connected, as we move toward 5g, whoevers equipment is running it, there is a huge talent gap in cybersecurity. How big is that gap and what is being done to fill it . Deborah i mean, the gap just continues to get larger. As was mentioned, when you think about supply chain, thirdparty risk management, we no longer have to look at cyber inside the four walls. Cyber truly is everywhere. Cyber is in everything we do. It is everything that we do. When you think about the cyber workforce, the talent, and where we will have to look to solve these problems and these challenges, we have to start looking broadly in creating new ecosystems, looking at k12 programs looking at how to align , with universities and joint ventures and venture capitalist organizations to find and identify new and distinct ways to be quite disciplined in the way we look at finding these workforces. Emily now, mark, what direction do you think we are going . Obviously, the u. S. Is cutting off huawei. That could mean china will cut off u. S. And foreign suppliers. Were seeing moves by russia to create a sovereign internet. Is that the trend, isolationism . At least digital isolationism globally over the next decade . Well, lets not confuse the prism of 2019 with where we may be in five years. I think that is critical to understand. I mean, ultimately, we have created a Global Internet and we will always have these connect points regardless of who provides what capabilities, and the security is really about the data. Deborah talked about the types of it is about protecting the data. That is what we do in 4g. We are going to do there will ultimately be resolutions from a standpoint where we can work with the various architectures, and infrastructures, but the security opportunity around 5g is also great. It is a huge opportunity, which is why you see Companies Like crowdstrike going up so much on the first day of an ipo. There is going to be a tremendous amount of business opportunity. Someone estimated something along the lines of 22 trillion worth of impacts globally in the next 15 years. I mean this is a significant , move. Emily right. Mark we will figure all this out, i am confident. Emily thank you, mark and deborah. Coming up, hong kong falls into chaos as citizens protest a but whatibition bill, does it mean for investors in the region . And we are livestreaming on twitter. Check us out there. More coming up next. This is bloomberg. At comcast, we didnt build the nations largest gigspeed network just to make businesses run faster. We built it to help them go beyond. Because beyond risk. Welcome to the neighborhood, guys. There is reward. Beyond work and life. Who else could he be . There is the moment. Beyond technology. There is human ingenuity. Every day, comcast business is helping businesses go beyond the expected, to do the extraordinary. Take your business beyond. Emily this is bloomberg technology. Im emily chang in san francisco. In hong kong, chaos in the streets. Thousands of protesters have been demonstrating against a proposal to allow extraditions to china. They have thrown bricks and other objects at police. Officers responding with pepper spray and water cannons. This has all led Hong Kongs Legislative Council to postpone debate on the extradition plan. Critics say the legislation would blow up the legal wall intended to keep Hong Kongs Justice system separate from chinas. What does this mean for chinas business climate, especially at a time when wall street is lending billions of dollars to tech unicorns . I want to bring in our reporter on why u. S. Banks are interested in china technology. Obviously, there has been some sort of pay off, but have you sensed any amount of cooling in the willingness of investors to lend money to chinese Tech Companies in the midst of a u. S. China trade war . We have seen quite the opposite in fact in the private market. We have Seen Technology startups in china are tapping into the syndicated loan market at an unprecedented pace. A lot of wall street lenders are taking their playbook into China Lending these startups billions of dollars and hoping they will get further offerings. What we are seeing from this particular protest in hong kong did have some impact on the market. We have seen that trade has caused some of the ipos to pause. They have decided to wait until the environment clears up. It is unclear no deal has been pulled because of the extradition protest, but we should monitor very closely these companies that will be looking to go public in the next three, six months, if they will change their mind or have any other sort of contingency plan. Emily these Companies May have a lot of potential, but they are assetlight. They are unprofitable. What is the attraction for investors . Investors are looking for highgrowth when they look at chinese Tech Companies. As you said, these are assetlight companies. They do not have a track of profit making, but it is not an unfamiliar notion. It is happening in the u. S. For a long time. I think wall street banks are looking at this as a Good Opportunity to build relationships early on with these companies in the hopes that further down the road when they go public, if they become, like, a billiondollar company, they would get the mandate for more lucrative fees. Emily give us an example of specific deals. Your story mentioned baidan, a big and growing company, but also a company that has run in withallenges, specifically the u. S. Government. Crystal several companies have raised fixed loans in the past. You mentioned tiktok, a popular streaming app. They have raised billions of dollars, and that includes big names like Goldman Sachs morgan stanley. Some auto financing deals. This is probably the trend, instead of raising private equity where you would dilute investors at a lower price, you are raising private loans instead, so you keep that valuation and still achieve the goal of raising funds for further growth. Emily we have seen many u. S. Tech companies wait many years to go public. Is that the trend with chinese Tech Companies as well . Crystal it is increasingly going that way. Tiktoks mothership has been talking about raising funds, but nowhere close to going public yet. We are seeing other big unicorns h as alibabafinancial alibabas financial affiliate. These are the big leading Tech Companies in china. They are taking their time instead of rushing to the public market, unlike their other peers in china. Emily thank you so much for your reporting. Meanwhile chinas socalled father of electric cars said hydrogen will be the next big push for the chinese government. He spoke exclusively to us and talked about what the ultimate goals are for the ev market. The market is huge. The key is to sort out the factors that have been hindering the development of fuel cell vehicles in the most appropriate markets. We should establish a Hydrogen Society. Compared to the Hydrogen Society, the electric society has been established, but it would be a process for the Hydrogen Society to be established. The next step, we will promote the adoption of Hydrogen Vehicles in selected trial regions, instead of all over the country. We will work on setting up the includingem, hydrogen production, storage, transport, and refueling as well as a car transportation network. Based on chinas energy structure, having no oil, based on pollution in the cities being a problem, do those add together to make fuel cells the best option for china in the future . What i want to stress is that it is not only fuel cells. It would be electric as well. The electric and fuel cell cars are both important. They have their own focuses. For example, in cities, people prefer to take electric cars, while intercity, people prefer fuelcell cars. They are based on market segmentation. Do you think its possible that some of the achievements, the progress china has made in developing its new Energy Vehicle industry, that has somehow prompted the u. S. To be a little more concerned and want to do things to try to contain chinas development . Of all the american and european friends i have been in touch with, there is not anyone who believes there should be concern because of chinas development. They think if china does not develop, that is a big problem. Coping with Climate Change is our common responsibility. We must recognize we are one of the Worlds Largest emitters of carbon dioxide. We have a responsibility to reduce emissions. We have a responsibility to contribute to ecological civilization, which is why we have been working hard in this area for more than five years. Thehe last year in china, sale of new cars in china fell for the first time in almost 30 years. Do you think that was an important signal for development . Actually, i think it is a natural phenomenon. Just like you mentioned, the core issue of this phenomenon is not the problems in the markets have not been solved. It is those problems that made the market hesitate and fall. At the same time, the sale of new energy cars has increased nearly 60 , which is very fast growth. If there was a signal, it tells us we need new energy cars. Emily that was chinas former science and tech minister wan gong. Bloomberg has learned google is shifting hardware production away from china to allow the company to avoid u. S. Tariffs and an increasingly hostile government in beijing. Google has moved much of the production of u. S. Bound motherboards for its computers to taiwan. Coming up, slack is gearing up for its public trading debut. What investors are expecting from the untraditional listing next. This is bloomberg. Emily electric Scooter Company is acquiring its rival to help with moving to san francisco. The two one of Scooter Companies given permission to operate in the city. The companies did not disclose an Acquisition Price but said scoot will operate under its own brand as a bird subsidiary. Slack is expected to be valued between 16 billion and 17 billion when it lists its shares publicly. Unlike Many Companies that have gone public this year, slack is forgoing the traditional ipo route with a direct listing, and investors will be allowed to begin selling shares immediately. Joining us to discuss, bloombergs ellen hewitt. Is this being floated by bankers, is this coming from the company . Ellen it is coming from people familiar with talks about the deal as they get ready for the direct listing next thursday. So we dont specify with whom, but obviously, people involved with the company investors, bankers, people thinking about how much the company will be worth when it lists next week. What is interesting is they are doing this math based off of some projections about the companys expected revenue for next year. They are looking at this years projected revenue, the expected growth rate and forwarding to fiscal year 2021 because of the way the fiscal year calendar works, and expecting basically a 20 times revenue to make the valuation. Emily this brings to mind the headline in which uber was targeting a 120 billion valuation, which i understand was floated by companys bankers and had nothing to do with actual demand. That is far out from the ipo. We are now one week from slacks ipo, so this feels specific. This will be different because it is a direct listing rather than an ipo. My understanding is that an ipo, theres a little more control over where the bank and the company, where everyone will agree where the stock will open. They will set a price and everyone will set boundaries around that. With a direct listing, its a little different. At some point there will be a Reference Price will come out either from the exchange or the bank. As we found with spotify last year, the reference range was quite large. Somewhere between 40 per share up to 130. Pretty wide, not very specific. On the morning of trading, the exchange and direct market maker, which in this case is citadel, will collect, buy, and sell orders from a bunch of different groups and then try to figure out based on those orders where to open trading. That may take several hours. Emily the skeptics say slack s financials do not appear to be as positive as, lets say, dropbox or docusign when those Companies Went public. What is the response to that . Slack has not been talking a lot. If you look at the growth rate of its revenue, it has been declining over the last few years. What is interesting is when we talk about the forward projections for the valuation of the company, they are based off an assumption that the revenue will grow 50 next year because they have just seen that it is expected to grow 50 this year, but if you look at it, it grew near 80 the year before and over 100 the year before that, so it has actually been declining. It is unclear to investors and people deciding whether to buy this stock that the growth rate slack saw in some of its earlier years will continue at the same rate. Emily because they are doing the direct listing, it means investors and employees can sell their shares right away. Should people buying into this company for the first time be worried about a talent exit us if employeesexodus can suddenly cash out . Ellen we have already seen there has been some trading happening on the private market ahead of time. It has been pretty consistent with the expected price for the valuation of this listing, somewhere around 16 billion or 17 billion, and volume has been as expected. I think people are looking at that as an indication on if they will sell a bunch. Spotify looking at the first few days of trading, there was not a lot of volume, and in the end, people will probably have faith that slack is a company to be held in the longterm and will not have a big selloff. Emily spotify was very quiet on the day of its direct listing. Do we expect to see slack executives in new york on the floor of the exchange celebrating . Ellen im not sure if there will be banners and all that, its but the ceo will the in new york i believe, doing something that morning on the new york stock exchange. When you talk to experts about what they expect or what they hope will the a win for the slack listing, i think no news is good news. If it is quiet, if it stays stable, if there is some trading and nothing crazy happens, it will probably be seen as a pretty big win. Emily ellen huet, we will be watching for your reports over the next week. The capital arm of bloomberg lp is an investor in slack. Lawmakers and Business Leaders had to london for bloombergs sooner than you think conference. We will look at the future of the london tech scene as the city looks to redefine its relationship with europe. This is bloomberg. Emily netflix is the latest tech giant making its way into video games. The streaming Company Announced it is working with top videogame developers on games based on it s shows. Stranger things 3 the game will come out on july 4, the same day the third season debuts and netflix referenced the dark crystal, a game that will debut later this year. Netflixs first two games will be available on major gaming consoles as well as pcs. A Food Delivery Service is planning a major u. K. Expansion. Last month the Company Secured 575 million in new funding in a round led by amazon, bringing its total raise to 1. 5 billion. The ceo says it wants to reach half of the u. K. s population by the end of the year. Deliveroos ceo and cofounder spoke with our Caroline Hyde about the plan at bloombergs sooner than you think tech conference in london. In terms of what we will do with the money, one is just expansion in general, right . Today, we cover about 1 3 of the u. K. Population. By the end of the year, we want to be at 50 . What that means is will go into suburbs, not just city centers. We will go to some smaller towns as well. We think that this is a universal problem, getting great food delivered quickly, and we think it will resonate with a lot more people as well. We will do this in other European Countries as well. That is probably number one. Number two, we have been building an amazing tech team in london and we want to really scale that up and hire more worldclass people. That has been really exciting for us. Caroline lets go to the first prong of that, the expansion into the suburbs and into the smaller towns, the regions. How do you do that when it comes to, first of all, targeting the restaurants . You want to be a partner of choice, its clear. Are there enough restaurants in these areas . Talk to us about relationships that start with restaurants that already exist there. Theres always great restaurants in every community, and making sure to work with all of them and making sure you work with just about every restaurant out there. People have different choices. We started as a business in central london. I personally curated all the restaurants in the very beginning, and luckily, that resonated with our initial customers, but ive learned over time that when you become more of a mainstream business, we need to work with all different types of restaurants and let our personalization algorithms take over and then people will discover new foods or go to the ones they really like. That is probably point number one. Number two, probably the third thing we do with capital is really push out our delivery kitchens concept. Carolyn remind us, what is additions . Will think about it as a warehouse segmented into 10 different kitchens. We look at our data and say we set this kitchen up in a call it off the high street area, and say these cuisines at these price points we think will be really popular in this neighborhood, and then we invite our Restaurant Partners to take up occupancy. What we have done is built a physical infrastructure layer for them as well as a Software Layer where they can operate their business. It is their staff, their concept, but we are facilitating that, really allowing restaurants to expand into new areas. My favorite example is actually this restaurant, one of the first restaurants i ever signed up off lexington street in soho. You guys should go check it out. It is a tamaki place. They specialize in brazilianjapanese tamakis. We have helped them expand into seven different additional sites in the u. K. And now two in paris. Carolyn so you took them to france. Will we took them to france, and they have been really doing super well in paris. It has been awesome to work with nicholas on that. Deliveroo ceo and cofounder will shu. Caroline hyde also spoke with the u. K. Digital culture secretary at the conference and asked him about the countrys position in the race to 5g given questions surrounding huawei. This as the u. S. Continues to press allies like the u. K. To nextgeneration telecom networks. It is important that we do have good quality equipment. It is important that we are at the forefront of the 5g revolution. What is just as important, if not more so, is that we have a safe and secure telecom infrastructure. What we are doing is focused on huawei or even just china. Im looking in my department for a way in which we can develop a system for the whole Telecom Supply Chain to make sure whoever supplies this equipment meets our requirements on safety and security. We will bring those forward as soon as we can. Caroline when will the council come to an end of its review . Jeremy i cannot say exactly when decisions will be made. The americans have made decisions recently that we have to take into account, which in a Telecom World will have an impact on huawei. We have to work through the consequences of that before we make a decision, but we will do that as soon as we can. Caroline how difficult does that make the decision, the u. S. Blacklist . Jeremy you cant pretend decisions around the world dont have a bearing. Components in america go into components supplied by huawei into the u. K. Telecom system so we have to work through the implications of all these decisions, understand them, then make our own decision. It is for us to decide what is best for the u. K. , but we have to accept the reality, which is that this is a hugely interconnected world. Caroline your background as a lawyer coming into play in a big way, im sure. Talk to us about the growth we are still seeing in london, outside of london as well. The u. K. Has been focusing on technology growth. How much of a distraction do you think brexit has been . First ofwo things all, youre right. Growth is happening across the u. K. , and thats very pleasing. We are seeing huge growth in places like manchester. If you look at the report they came out today, Job Opportunities for oxford, reading, newcastle and belfast. All across the country. In relation to brexit, people are concerned that when we leave the European Union, if you are in the tech sector, you will still have access to the talent you want to bring in, and some of that talent comes from the European Union. What will happen as we leave the European Union is we will be able to design our own immigration system. We should do that if we are sensible in a way that makes sure we bring in the people we need and want. What were saying to the tech sector is we have this opportunity to design the immigration system that we want. Help us design it, tell us what it is you want to see in our immigration system that will enable you to continue to access that talent. Emily u. K. Digital and culture secretary jeremy wright. That does it for this edition of bloomberg technology. Remember, were always livestreaming on twitter. 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