Top shareholders. Chinas biggest coal miner jumped the most in eight years. 3. 6 billion dollars last year. The news was flagged in january but investors were surprised the dividend. It says that will be maintained in the foreseeable future. Mobileme, 24 hours a day, powered by more than 2600 morealists and analysts in than 120 countries. This is bloomberg. Let us take a look at the justts, afternoon trading, an getting underway. Hang seng up. 6 . Shanghai is relatively unchanged. Shenzhen down. 1 . Caroline i am caroline hyde. This is the best of Bloomberg Technology, where we bring you all of our top interviews from this week in tech. Coming up, elon musk is looking for money. He is out to raise 1 billion to bring his model three to the market. Plus, intel hit the ignition switch on its dream for the driverless car with its 15 billion acquisition. How mobileye went down. Another twist in a massive 2014 yahoo hack. U. S. Officials blame russian intelligence. First, to our lead. Elon musk needs to raise 1. 15 billion more to bring his model three to market. His believers, along with investors, could hardly be happier. Tesla shares rose on the news. Ceo elon musk is personally participating by purchasing 25 million of common stock. The teslas model three is set to begin production in july and will start at 35,000. We caught up with a bullish analyst and bloombergs david welsh. Analysts are skeptical. Yesterday, after this, some we were still hearing that he would have to go back and get the money. One possible explanation is it will be a soft launch of the model three. In other words, later in the year, we will not see a lot of production of the car, so they will not be building it so rapidly. They will be building production more quickly next year when they need to come back for more money, maybe early in 2018. Caroline from the analyst perspective, jamie from consumer edge research, are you convinced that really 1. 5 billion is enough . Because they are burning like mad. You just almost 1 billion in the Fourth Quarter alone. Thank you for having me. I dont think it is enough. Not a bigger was transaction. You strike when the iron is hot. There is a lot of positive sentiment among the Investment Community looking ahead to the model three launch. You know, the other guest here mentioned, his comments was accurate. We are going to see a continued spend as the model three progresses from an initial soft launch well into 2018, as they try to work their way towards 500,000 units. I am just surprised they did not take this opportunity to raise more capital and put that risk off into the future. You have to go back to the market for another secondary offering. Caroline david, there might be potentially a slightly larger than 1. 15 billion capitalization in the market, but what else do we think of the the money that elon musk himself is putting behind this deal . He is the number one stockholder intesa and he is committing a little bit more. David sure, hes buying another 25 million of stock which is not a lot. That is what elon does. He borrows money and secures it against his own shares in the company. He does not take a salary, so the money he borrows from his underwriters is what he is living on. And, you know he continues to , buy more shares, and he has a lot of skin in the game. Investors like that. I think that is something they have always admired about him. He will probably need to come back and get more money, and investors are prepared for it. Maybe it is a matter of waiting until the model three cash needs really starts to stretch out, and then have to go back to the market again. Caroline jamie looking at your , price target, it is pretty bullish. Do you think the price could rise further . Does this mean there has to be a really smooth process with the model three coming onto market . Or have you factored in any other risk factors here . Guest i think it has to be reasonably smooth. I mean i dont know if it slips , from the Third Quarter into the Fourth Quarter that it is sort of game over, but they have talked about the back half of the year, not late 2017, so the implication is that there is going to be some production in the Fourth Quarter. Investors are polling suppliers to make sure they are on track to keep up with that Third Quarter soft launch or otherwise. So, yeah. So, the risk factor is they dont hit that target. That could be a negative catalyst. Clearly, there is going to be more cash burn here as there always is with a new launch at an auto manufacturer. I look at the Quarterly Results as an opportunity for bears to sink in and say look at all this cash going out the door. We do not know where it is going. It is more than we thought for the model three. And that is where, you know, i think you have to take a more , balanced view. They are spending more money on the model three, but they are also spending money to expand structures and globally. Quite frankly, 10 to 15 of what they are spending is on projects and products we have not heard about yet. As has been the case historically. Yeah i think there is more , negative catalyst around the quarters and the model three kind of hitting that thirdquarter target. Caroline another top story, the u. S. Government indicted four people for hacking yahoo accounts for the russian government. Justice Department Officials charged two russian intelligence agents and a pair of hackers. In the wideranging scheme that included the 2014 reach at yahoo that affected half of indian users. U. S. Officials explain the charges and a News Conference on wednesday. Targeted yahoo accounts of russian and government officials including cybersecurity, diplomatic, and military personnel. They also targeted russian journalists, numerous employees of other providers whose networks the conspirators sought to exploit, and employees of Financial Services and other commercial entities. Caroline we spoke with mike riley, who covers cybersecurity for us. Mike there are a lot of things going on. This is the russia equivalent to the indictments the doj released against the pla hackers. It is their effort to paint a picture of how russian intelligence is cooperating with criminal hackers that help them hide intelligence gathering operations, but also help them to be much more effective than they might be on their own. It is a devastating picture of what happened inside yahoo these guys got access to internal systems that allow them to basically create these encrypted cookies and therefore access any users actual email accounts anytime they wanted over a period of years. Basically, what the picture is, is they have indicted two fsb agents. These are basically russian spies. And two criminal hackers who they say were handled by the spies, given tasks, given missions, told to get information on particular people both inside russia and outside russia, and when they came back with information, they got paid for it. Caroline what is fascinating here, mike, is of course, this , is something spearheaded a while ago, probably by obama when he was president , now this has been followed through and completed by donald trump as president. Someone who has been offering olive branches to russia. Is that a help or a hindrance . Mike that is the interesting question that will play out in the next couple of weeks or months. In fact, some people were saying this is something that the Obama Administration left for the trump white house. They did not pull the trigger on it before they departed the white house, and they left it for trump to make that decision. It would have been hard from a political point of view for trump not to pull a trigger on Something Like this, because the the case was pretty well documented. But if you do, then there is the possibility it upsets this reset with russia you are trying to do. And there is no doubt that putin will not hand over two of his spies to the u. S. Government, and i doubt people in the kremlin are happy this is going on. So, the question is, what will trump do now with his effort to build a new kind of bridge to russia . Caroline it really does pull back the curtain of what russia has been doing in terms of using illegal or criminal hackers by their own spy institutions. Does it delve anymore into the hacking that was laid at russias feet in the run up to the election . Mike you know the department of , justice officials are saying the cases are unrelated, but they are related in the way you suggest which is the indictment , is really detailed and does sort of pull back the curtain on russias entire Cyber Operations especially one of the , unique aspects which is the , way they use cyber criminals in order to do things for the intelligence agencies. In one of the cases, one of the two hackers have been there was evidence that emerged that they were doing illegal acts in cyberspace, and the fsb, rather than picking them up and prosecuting them, use that over their heads to say, look, you will either go to jail or work for us. They became a recruit that help their operations on a global scale. Caroline this week, gopro spiked after the Company Announced a second round of job cuts. Now remember gopro already , slashed its workforce by 200 or the equivalent of 15 back in november. Now, it is cutting another 270 positions. The move is meant to reduce costs. That as wall street expresses skepticism the action camera maker can return to growth. Gopro also says its forecast for firstquarter revenue will be on the upper end of its guidance, between 190 million and 210 million, and it will make a profit this year. Excluding certain items. Still to come, intels 15 billion car tech deal could be a boost for the israeli tech scene. We will explain why, next. Plus, we speak with a Massachusetts Attorney general on President Trumps continued push for a travel ban. This is bloomberg. Caroline now, to intel spending , 15 billion for a foothold in the selfdriving car market. The chipmaker is buying Israeli Company mobileye. Secondlargest acquisition ever for intel, and the largest ever for an Israeli Company. Shares for mobileye surged on the news as it represents a 30 premium to last fridays closing price. As part of the deal, intel will move its existing car tech to israel and keep mobileyes business in the nation. Bloomberg editor at large cory johnson caught up with reinke signage and ask him about that decision and its associated cost figure. We built about 175 million in synergies into this deal. As you said, it is right. They were going to go and move our autonomous driving resources to israel where mobileye is centered. And you know, there is a lot of sgna and r d that will bring the two synergies to that 175 million over time. Cory there was a lot of options trading in the days before this deal was announced, and i should say purchase of calls. Expectations the stock was going to go higher and really soon. And it seemed to be near record levels for mobileye. Yes, there was excitement about the stock, but nothing like this. I wonder how long you have been working on this deal and if this concerns you at all . We have been working on this deal for a while, but we take a lot of care with the bankers we work with and the pr teams to keep this quiet. If you take a look, it has been , you know pretty quiet relative , to other deals out there, and so we were pretty comfortable with the level of secrecy we were able to keep until the last 12 to 24 hours. And you know we took a look at , what we were doing and what was going on in the market. It seemed like everything was pretty okay from that perspective. Cory yeah, well actually expectations of changes in tax repatriation, which can sometimes lead to a lot of m a, can lead to technologies. Is that one of the reasons why you wanted to get this deal done now . The price tag might go up . Cory know, we would never do m a as result of Something Like that. We are always going to target around the technologies and doing the technologies at the right time relative to bringing those products to market. That is purely what we steered by. We started these discussions before the elections to give you some clarity on just how long these take. , so we had nothing to do with what the tax policies were. This was about getting these two technologies together to provide solutions. Cory got it. The intel ceo was and brain johnson. Intel noted in the announcement that mobileye operations will stay where they are. Prime minister Benjamin Netanyahu of israel tweeted, congratulations mobileye, israeli genius, israeli pride. And while it is the biggest acquisition of an Israeli Tech Firm ever it is not the first. ,others include google buying waiz. Joining us now for more context on the israeli tech scene are two venture capitalists in new york. The cofounding partner at the lab. Thank you for joining us. You are helping to manage Israeli Companies on the syndicate list. Just how big is the scene . I think that is right. I think this kind of seminal book on israel, startup nation, was written in 2009, so the story isnt new, but i fervently believe that the world still has no idea about the innovation and shareholder Value Creation that will come out of israel in the coming years. Caroline give us some stats. Because i know you have some great ones in terms of the sheer amount of ipos per person. Sure, well when the book was , written in 2009, it was written based on any stat you looked at, the number of startups per capita, the number of exits, israel was crushing the rest of the world. Here in the u. S. , on the nasdaq for instance, israel leads all the other countries in the world on a per capita basis. It is more than two times the number of ipos on the nasdaq versus canada, and it is more than 100 times on a per capita basis the number of ipos out of china. Lou so again what is happening , in israel is really quite amazing. Caroline you founded the californiaisraeli chamber of commerce and are helping to build bridges between Silicon Valley and israel. I am finding it fascinating that intel last year got in on another company. 360 degree super bowl players. They are one of the largest hirers in israel. Just how much does Silicon Valley already know israel . Guest so first of all, we are , based in Silicon Valley and invested in over 60 companies in israel. And it is no surprise i think that all eyes are on israel. It has been that way for more than 20 years. If you look at some of the leading companies that are based here out of israel, whether checkpoint or others, companies that are innovating in both the hardware as well as the software space, then you see also that a lot of the local funds and investors are looking to israel for innovation. Waiz has created a lot of waves in the last few years with its acquisition, and i think that mobileye is not a big surprise. In 2016 alone, almost 5 billion was invested into israel in capital, so there is a lot of infusion of capital, and there is a lot of interest in the innovation that is going into israel today. Caroline where is it going for example . Nds is a td software company. Waiz, mapping. What are the key areas of growth do you think for israel . Nds was a tv settop company and the majority of the , value was in the cybersecurity, the encryption of nds. And if you take a look at kind of the major areas where israel is amazing at, obviously cybersecurity is one of the amazing areas. Also, there are a lot of areas that come out of what i described as imaging. So, it started with satellite imaging in the 1950s so israel the israelis could see what their neighbors were up to, and now they have some of the greatest photo companies. There is an Amazing Company called light tricks doing amazing stuff with photography. They are going to be the adobe of photos. Amazing companies in the yard. Napchat just bought a company that same technology is in cars, that Lidar Technology out of mobileye is that same technology. Caroline surely it is interesting. We have been hearing about how active the ipo scene is from nasdaq for person and israel killing it there, but do they ,eed more mega ipos to decide to put it largely on the map . Because most of it seems to be m a. Shuly true, a lot of the great technologies today are being acquired, and if you look at the israeli system, the biggest question among investors outside of israel and in israel, also is can israel produce massive , companies . That is always the question on the mind. Can they scale . Can Companies Start but also scale globally and create impact . Aroline that was shuly galili meanwhile uber competitor halo , is coming to a full stop in london. Customers are now being encouraged to switch to another ride hailing app. My taxi. The hamburgbased company has more than 70,000 drivers who use halo system. Halo users in london have until the end of may to switch. They have moved 17,000 drivers who previously used the halo xi app. To the myta they have until the end of may to switch. Coming up, maryborough joins us on trump, emission standards, and regulations facing the auto industry. This is bloomberg. Hadline this week, bill another change of heart. After pulling the plug on a 230 Million Healthcare Fund in december, he will now proceed with a smaller fund of 100 million named section 32. Bloomberg emily chang spoke with him in december where he explained why he scrapped the plan. Take a listen. I did this crazy thing called changing my mind. [laughter] it is wild, i know. But i did it. I left hundreds of millions of dollars behind, but i did it, because i feel like there are a lot of venture funds in the valley right now. Every couple of days, i feel like i see announcements of new funds. I felt like after 10 years in the business or close to it that there might be other ways to have a bigger impact. Caroline maris new fund will have the same focus on biotech and Health Care Startups and is expected to close later this month or early april. Now President Trump was in , michigan wednesday. He announced that the white house will reexamine fuel economy standards set by the Obama Administration. And signaled he was willing to cut automakers a break if they hire more workers in return. Now, bloombergs david westin caught up with the gm chair and Ceo Mary Barra in michigan, near ann arbor, and asked what she thought about the review. Mary what really would happen is we would not be able to give customers the choice we give them today. I mean they choose if they will , buy an suv, a small car, or an electric vehicle. We are full range. We are continuing to invest in the Chevrolet Volt ev. We are proud of it. Mary it is doing well. The Chevrolet Volt in its Second Generation is doing well. So we are making the investments, but at the end it is consumer choice. That is why i think it is so important. You and i have talked about it in the past. There is more change happening now in the industry than in the last 50 years. When you look at this legislation that was done five years ago before sharing, before we even were talking about autonomous the way we talk about it now, so take a pause, be datadriven, and look at how we can improve the environment in the most effective way come i think, makes the sense. It is what we all agreed to in 2012. Caroline that was gm chair and Ceo Mary Barra. Meantime, uber drivers across the globe are fighting for benefits, like paid time off. The question keeps arising do the drivers actually work for the ride hailing app . That has been the debate in courts from l. A. To london. Bloombergs Caitlin Meehan reports. Battle ubert is the is facing in courts all around the world as it aims to keep his its drivers classified as contractors. Why . Let us break down the two sides. Uber claims it is not an employer. It is just a platform that connects drivers to customers. In a blog post last year travis , kalanick said, uber drivers valued their independence as contractors. As such, uber is not responsible or paying drivers minimum wage, providing insurance, or providing holiday pay. Caitlin critics say many drivers work more than 40 hours a week and should be entitled to these benefits. Employers across the globe have taken different stances on the matter. In europe on wednesday, paris tribunal dismissed the request for uber to make Social Security payments to drivers. This, after the u. K. World uber ruled uber drivers should get holiday pay. Uber and its rival lyft are arguing that drivers are contractors, preventing drivers from unionizing and collecting benefits like overtime pay. In a statement lyft told , Bloomberg News its drivers are independent contractors, and federal law unequivocably prohibits independent contractors from collective bargaining. Under current seattle law uber , and lyft would have to provide driver names to the Union Beginning caroline trumps april 3. Travel ban blocked again. We speak to the Massachusetts Attorney general maurice healy, ahead. All episodes of bloomberg are now Live Streaming on twitter. Check us out bloombergtechtv at 5 00 p. M. In new york, and 2 00 p. M. In san francisco. This is bloomberg. Says 2017 is going to be equally challenging. Income was just over 1 million, about 100 billion bolo forecast about 100 million below forecast. They expect to deliver what he calls head of market volume growth. Oil is following as higher u. S. Activity offsets the price of opec, extending the output reduction. Producers added more rigs, extending a drilling surgeon to a 10th month. The Saudi Energy Minister says he expects sales to come down. Uber has confirmed its president amid reports that he is tired of a growing number of controversies, ranging from Sexual Harassment to the combative behavior of the ceo. The Vice President is also leaving the company. And a new report says u. K. Lawmakers may have to pass as many as 15 pieces of legislation before the country leaves the european union. The government has been examining what it calls the huge burden of brexit on parliament and Civil Servants start negotiations. Global news, 24 hours a day, powered by over 2600 journalists and analysts in more than 120 countries. Is bloomberg. Lets check now on how markets across the asiapacific have been trading today. Heres juliette saly. Deborah, we have japan on holiday today. You are seeing weakness in the new zealand session, it closed down 1. 4 . Singapore underwater. There has been a pickup coming through on the hang seng, with coal stocks very much lifted by that big gain through in chinois. Australia closing lower. Youre seeing a lot of buying coming through into the emergingmarket assets, the Malaysian Ringgit up, won also rising against the dollar. Bonds back in favor, yields on the singapore and new zealand following after we saw quite some significant gains. On friday copper is coming off, halting its sixday rally. Then if you look at the regional index, its pretty flat at the moment. Health care stocks are bid, healt, rebound coming through. You are seeing weakness coming that,h from the back of with copper leading industrial metals. Certainly a mixed picture to start the new trading week. We will be live from london the top of the hour for bloomberg daybreak europe. This is bloomberg. Caroline welcome back to the best of Bloomberg Technology. I am caroline hyde. This week, we saw a rebuttal of round two of President Trumps travel ban. A federal judge in hawaii halted the ban hours before it was set to take effect. A maryland judge followed suit hours later. We caught up with Massachusetts Attorney general maura healey on wednesday, ahead of those rulings, for an exclusive interview from boston. It is what it has always been, which is a muslim ban, and more than being unconstitutional and discriminatory, what this also is it something that is causing a tremendous amount of uncertainty and creating real harm for businesses, research institutions, colleges and universities, and for Major Tech Companies across this land. And that is one of the reasons why we filed suit weeks ago and renewed our lawsuit earlier this week, joining with hawaii, washington state, new york, and others we had standing alongside us leaders from the Tech Community and business who say this is wrong and this order has got to go. You mentioned you say a lot of it is still discriminatory, but a lot of that thesis is based on past statements from the Election Campaign made by donald trump. How do you distinguish between what was said in the past and the current writing of the executive order . He has still created a serious issue in denying visas and creating uncertainty about whether visas will be renewed. We have Tech Companies here in a massachusetts who are employing employees that have a those visas. We have students at Major Research institutions who dont know whether they will be able to stay on and continue their fellowship. This order create problems for those already working in this country to create a vibrant Tech Community and industry. It is why i have spoken with so many Business Leaders and leaders in tech and researchers who say this order is bad for us and needs to go. Caroline boston is such a thriving tech area. It is a biotech hub. Such an area of growth in terms of the talent needed there. What are the businesses you are speaking to say they will have to do if it does indeed stand . Do you know what the alternative will be . They are standing alongside us and challenging this discriminatory travel ban. Not only is it unconstitutional, but it makes no sense. In speaking with heads of our Major Hospital institutions and research institutions, they right now do not know if they can go ahead and bring over the Research Fellows and professors who have been hired who want to come over and do scholarship here. They have people who work for them as researchers and professors who they dont know if they can continue to keep on because they dont know if they will be allowed to fulfill contractual obligations given the president s order. So, this creates all sorts of havoc. Tech, life sciences, biotech, they are the driving force in massachusetts, and they are also a driving force in other regions of the country. You were just talking about Silicon Valley. This hurts and has economic impact. It is why you have seen not only states come forward and challenge what the president has done it, but you also see major businesses and Industries Come forward and say this is wrong. Not only is it not american and consistent with who we are as a nation, you think about the Amazing Companies that have been built by immigrants, but it is also counterproductive and harmful to our business interests. Caroline but is it unconstitutional . Absolutely. I think our arguments are well made and have an heard and and have been heard in multiple courts today. I am glad we will soon see a decision from the hawaii district court. Other cases are ongoing and we will continue to press ahead and fight this right to the end because it is unconstitutional. Caroline i am going to ask you again, because you mentioned about what happens if if the legal challenge does not work. Have you got any ways in which you can legally bypass this executive order . Unfortunately, immigration issues and the control of people coming into and out of our country is controlled at the federal level. It is why we are challenging to say the right thing needs to happen here. No federal determination, no policy, no president is above the law, so we are looking to the courts now to uphold the rule of law, uphold the constitution. We will await the courts decision, but stand at the ready to stand up for residents, businesses, industry here in our state and across this country, but make a mistake about it, President Trump has issued a second order. It does not change the fundamental flaws with this order. It is discriminatory based on religion and national origin. As you know, National Security experts have discredited this to say this is not what you are looking for if you want to deal with issues of terrorism. Caroline that was Massachusetts Attorney general maura healey. Meantime, president has tweeted out he may have been wiretapped. In addition, a House Intelligence Committee has asked the government for any evidence by this coming monday. Bloombergs david gura spoke with Michael Hayden and asked how confident he is that any evidence will actually come to light. I am confident we will know by monday of next week that there is no evidence. My instincts are really, really powerful on this. I know how this works. I know how you get a fisa, how the u. S. Government gets the authority to listen in on the phone calls of a u. S. Person. None of those things are suggested by what the president tweeted out about 10 days ago. It just doesnt happen that way. The president hasnt had the authority to order such a thing for about 40 years. You have to go to a court, and there is no evidence that happened, because the guy who would have gone to the court james comey and james clapper, have each said they did not do that. If it didnt happen and there is no evidence it happened, what should be consequences be . We have party suffered a lot of damage, because the Intelligence Community knows it not to be true. This is what they do for a living. So, it is one more logged on that fire that seems to be holding the confrontation between the new administration and the Intelligence Community. I would just suggest as a member of the Old Community and a concerned citizen, everyone take a deep rest and back away from this. The president needs the Intelligence Community, and the Intelligence Community knows their only purpose is to help him succeed. David so there is this cash of information that wikileaks say is hacking data from the cia. What recourse does this administration have against wikileaks . They really are in a problematic situation. I think wikileaks has proven themselves to be an enemy of the United States of america, and by that my definition is they are doing things whose only purpose can be to harm america, americas friends, and the way america keeps itself and its friends safe. If it were good answers, david, an order to shut this thing down, we would have exercised those answers already. I think we just keep plugging away. One thought i had, and it really and i really cannot claim i have explored it have we enacted any consequences against ecuador for giving Julian Assange sanctuary in the ecuadorian and the sea in london . Embassy in london . We are not required to make life as comfortable as possible for the ecuadorian government. David we are expecting an executive order on cybersecurity from the white house, expected, but delayed. If you were to talk to the white house, what would you say is per 31 when it comes to cybersecurity . David i have seen some drafts of that order, and i think it is quite good. It puts tasking out into the federal bureaucracy with short timelines to come back and tell me how you are going to do these things. If you are looking for a philosophers stone, i think the key is that our success or failure in cybersecurity is going to be more dependent on the success of American Private industry and the private sector than anything the u. S. Government is able to do on itself. So, i would counsel the president think of things that unleash, liberate, get out of the way of the private sector doing things only the private sector can do when it comes to cybersecurity. Caroline that was david gura speaking with a former cia director Michael Hayden. Coming up, our exclusive conversation with the node khosla and the ceo and cofounder of rubric. If you like Bloomberg News, check us out on the radio. You can now listen on the Bloomberg Radio app, bloomberg. Com, and in the u. S. On sirius xm. This is bloomberg. Caroline a story we are watching germany is threatening to fine social Networks Like facebook more than 50 million if they fail to give users the option to complain about hate speech or fake news. The punishment would apply if the company also refused to remove illegal content. If passed, it would be the steepest challenge facebook faces in any country where it operates. The move comes as germany prepares for september elections, and the government is under pressure to curb the spread of fake news. Now, will 2017 be a big year for tech ipos . We have already seen snaps volatile ipo, and we are waiting on other countries to go public. Companies to go ahead. We spoke exclusively with vinod khosla, partner at Lightspeed Ventures and ceo of rubric, and i asked if now is the time to go public. Lightspeed ventures was the First Institution to back snap, and vinod khosla is an investor in okta. What you are seeing is that High Companies with a real Business Model and a path to profitability and longterm sustainability are the Companies Going public. Not every company is going public. We still feel the bar is high, but we have a number of companies with differentiate product getting into the marketplace. Caroline when you have your viewpoint as chief executive of rubric, you are looking at these companies that have followed on from snap. Is it time for rubric to look at the Public Market . We are probably two years away from the Public Market, but are building a company to become a Public Company in long term sustainable business. I think fundamentals of Enterprise Business and selling into the larger end of the market and driving six figures, seven figures, eight figure deals is one side of the Enterprise Business. So, we are focused on fortune 500, global 2000 companies, where they have a real need around cloud, date of orchestration, Data Management, data security. Caroline when youre looking at your portfolio of companies, we have some juggernauts with proven Business Models and already bringing in revenue. Uber and airbnb, dropbox. What needs to happen . Do these Companies Need to come to the market . Is it up to the Investor Base to say the time is now . Or do you Like Companies remaining private . A choice of whether a Company Stays private or goes public is entirely with the entrepreneurs. There is some flexibility to do some things when you get to the Public Markets. You need to be predictable and set longterm goals. Entrepreneurial Companies Like rubric change strategy continuously. They are a very Young Company at only three years old. So, you want that lets ability to change. With private investors, it is much easier to do. When you get to a highly predictable stage, then an entrepreneur can choose to go public or not. We always support entrepreneurs in their choice. Caroline you never apply any pressure . Almost never really. It is the wrong thing to do, apply treasure. Caroline you dont need exits . You must have your own needs . I am proud of the fact that we never worry about exits. They happened when they happen. They happen often enough, but we almost never worry about it. I have a rule, if someone talks about exits when we are investing, we wont invest in a company that talks about exits. Fascinating. It is the wrong approach to building really durable long companies, thinking about exits. I would rather have somebody trying to build really Large Companies over the long haul, and whether you get liquidity in one year or four years, it almost does not matter if you are building real value. Caroline you were saying before that you are an optimist. We have cloud as a driver, data as a driver, i want to know about some of the environments in which you work with in Silicon Valley and whether they help to foster optimism or not. Particularly as it comes to the administration and the second iteration of the travel ban. Do you worry about perhaps limitations to some of the immigration . I do worry about it. If people cant start a company here, they will move operations to india. We are starting to see more and more people talking about building outside, because they cannot acquire the talent here. For educated talent, theres global competition. Canada is dying to get more of this talent. The National Foundation for american policy just issued a little thing that said 83 of the finalists in intels science competition were born to immigrant parents. Think about it. 83 . Immigrants, especially well educated ones, renew our country, and countries that have gone into stasis like japan did so because they were so insular, so i think it is a huge advantage and has been a source of growth in america and vibrancy. Caroline you are a man growing your headquarters in Silicon Valley, but you are also growing internationally. Is this something that worries you . How has it affected your business here or elsewhere . For us, the way we look at it is politics and these kind of rules will take care of itself. I believe our country, the fundamentals are very strong in america. That we have rule of law and a structure that fosters innovation. So, i view this as a transient phenomenon were over time it things will take care of themselves. When we go international, we do business in 30 countries right now, and so far we have not seen any headwind in our growth or any kind of backlash because of it. Caroline h1b visas, is that some thing you have used . We use h1b visas on a casebycase basis. There is a lottery system and very few people can get it. So, we think of a comprehensive strategy on where we get talent from, and how we grow our talent pool. We are cognizant of h1b visas and the number of applicants available and things like that, but we are thinking of this business as a longterm sustaining business with our sales and marketing around the world, and we are looking at innovation and saying how do we continue to drive innovation and bring people together on this mission to go change the Data Management platform for the multicloud world. Caroline where are you looking geographically if not in Silicon Valley . Outside of Silicon Valley, there are plenty of exciting things going on in your, israel, india, in europe, israel, india, china. China is a whole different thing. We tend to not do a lot in china, but there are interesting things happen. Caroline why not china . We have the geographic focus. We feel we dont understand how to do business in china. Caroline that was vinod khosla founder of Khosla Ventures and founder of rubric. We next head to boston, massachusetts where a company that sees the future of factories growing. More on that story next. This is bloomberg. Caroline ginkgo bioworks is at the forefront of bringing Biology Technology to the forefront. Based in boston, the start of his Building Tools for a future where factories are powered by biology. The company is helping clients design flavors and fragrances by modifying the dna of microbes like yeast. We took a trip to their labs and got a behindthescenes look at the company. A team of phds from m. I. T. Started ginkgo bioworks in boston a few miles away. Inside, they are Building Tools for a future where factories stop manufacturing goods and start growing them. At the heart of biology is digital code in the form of dna. We have now the ability to read that code through dna sequencing and the ability to write that code with dna synthesis. If we can read and write code, we can program. Can you program biology to make stuff . Yes, because dna is code. Before they can grow their own iphones, ginkgo is focusing on something similar reprogramming microbes to produce artificial flavors and scents. The company is working on that in this robot filled lab. So this is our secondgeneration lab. If you soon in, it looks like a regular academic lab, but if you soon out, you can see all the robotics. Thats what we are trying to do here, make things move faster. Right now, ginkgo is using genetically modified yeast to create fragrances. They can then compare that with the dna and modify it to produce a similar smelling substance. The process then becomes a lot like brewing beer. They can extract out a peach sent for clients scent for clients. Into these is a different gene combination that will make a slightly different smell. But soon what we have. It smells a little like vinegar which i think is the east. The yeast. Samples that smell the past tests are destined to be inside perfume bottles, but once you start thinking about it, you can see this Technology Applied to some unexpected places. What it this was a patch you could put on your skin, so your skin would produce your perfume so you dont have to spread yourself all the time. It is producing that sent on its own. A lot of the smells that you might associate with human bodies are actually are ready actually already coming from microbes. So a matching of those microbes might be a little different and make a different smell. It is not that hard to believe. Things are looking good these days for ginkgo. They recently bought a dna splicing company and race 100 million from investors. Its too soon to say whether they will make the leap from perfume to electronics, but ginkgo sees its gene modified yeast as a first step to where they can make him us anything. Make almost anything. We could use biology to make a semiconductor chip. Its ability to place atoms is superior to intel today. The applications for this are sort of endless. Caroline that does it for this edition of best of Bloomberg Technology. Next week, we speak week the ceo of oneweb discusses their merger. Tune in each day at 5 00 p. M. In new york, 2 00 p. M. In san francisco. Remember, all episodes of Bloomberg Technology are Live Streaming on twitter. Check us out at bloombergtechtv weekdays. That is all for now. This is bloomberg. Anna tradeoff. G20 finance chiefs resist protectionism as the trump trade trickles into the communique. Deutsche discount. Germanys biggest banks will raise 8 billion euros with share sales at a 35 markdown. And exit strategy. Policymakers could step away from their commitment to keep rates low for a long time. A warm welcome to bloomber