As predicted. The effects of the recent decline in again and President Trumps policy. The doj will continue to buy bonds, global news 24 hours a day powered by more than 2600 journalists and analysts in more. Han 120 countries you are watching bloomberg. China, taiwan, nikkei trading down 1. 3 . Again is gaining another session. This is bloombeg. Caroline Bloomberg Technology bill gates ways and ahead. Digging into what could be the biggest tech ipo since facebook. Silicon valley pundits its voice as the immigration dan feels outrage. Friday President Trump restricted immigrants from seven muslim countries. His next order on immigration may be an even greater blow to the u. S. Tech future. Seanhe works spicer address it later. Earlier. Spouse whether that the visas, there is a needed to look at these programs. You will see both through executive action and legislative measures. A way to address legislation as a whole. Were joined by alex wayne in washington. Consternation from the tech leaders in Silicon Valley when it comes to the executive order. Now that could be attacks against the visa as well . Alex this is a much bigger threat to Silicon Valley then the order he issued friday. I think this order could be more popular among average americans and the immigration order on friday. Congress been in concerns that Tech Companies have abused the process, they have used it to recruit overseas engineers at the expense of american ones. They essentially use that to suppress salaries to protect workers in the United States. Caroline there has been fighting back about this, perhaps the chaos in the airport. He said this order was entirely aimed at making the u. S. Safer. A compared it to a review iraqi refugee in 2011 by barack obama. Here are key differences in 2011 the Obama Administration said they had credible evidence that iraqi nationals may be planning a terrorist attacks in the United States into a people were arrested in kentucky shortly before he arrested that order. The trumpet ministration has not assertedny evidence or that there was specific Credible Threats to the United States. There simply imposed in order and claimed it has to be in place. Asserted caroline fascinating analysis. Alex wayne, thank you. U. S. Tech leaders came together in a unified anger over the anger over the immigration order. Reporter Mark Zuckerberg was one of the first tech leaders to speak out. In postfriday he wrote i am concerned about the impact of the recent executive order signed by President Trump. We need to keep this country safe but we should do that by focusing on people who actual pose a threat. Day,ix ceo wrote the next trumps actions are hurting networks employees around the world. They are so unamerican in paints us all. Intensity,o grow in in\at jfk airport amid protests and a taxi strike. The travel ban is against everything cooper stands for. A driver who cant work because of the vienna will be compensated for lost earnings. We set up a 3 Million Legal Defense Fund as well. Lyft promising to donate 1 million over four years to the aclu. Area be offering free housing to anyone not allowed in the United States. Elon musk also weighed in. The blanket entry ban on citizens from certain primarily bestm country is not the way to address the countrys challenges. He went on to ask followers to read the order saying, let me know specific amendments. We will seek Advisory Council consensus and presented to the president. U. S. Teche top 20 committees were founded or are currently held by an immigrant. Those microsoft ceo, google ceo, and apple ceo. All supporting their immigrant employees. Caroline for more on his order, and petern brad stone ahlstrom. We are seeing tech standup unified. Brad two things are going on, as caitlin and said there is enormous strength in immigrants going back to microsoft. These are blue state companies. By and large did not want to see a donald trump president. They are reacting negatively to this order and are putting a lot of pressure on their leaders to take a stand steve jobs himself was son of a syrian. Next will be the visas analyzed and maybe executive ordered. They help to bring in workers workers from around the world. They are from a longerterm assignments. Maybe it is good to begin with caveats. It was saw the draft, not signed and may be modified before it is signed. There are a couple of things that are very clear. The programs that exist right now do not work to the original purpose of the legislation. The changes are consistent with a populist statement that he has made. It looks like he and congress will look at a variety of aides to give American Workers priority and giving the workers outside more money instead of working lowwage workers. Caroline perhaps more fuel to the fire for tech leaders. This of her 14th we saw the tech leaders in the room with donald trump. Will that unwind . Alex this is why we keep seeing eric smith going to the white house. Boomer evenk and needs to be on the Business Council despite the pr price they are paying among their employees. Seat to push their agendas. And andt to maintain that is why they are trying to advocate on their own behalf. Said the executive power is not quite as strong on this front but could we see it this week . Laryen it will be difficult to tell given the original outlast. Splithink you will see a between the u. S. Tech companies that are recruiting highly played highly paid workers and therseas outsourcing companies. Workers that are paid more less money. Theyre looking at the differences between them. Fewer outsourcing companies, more available to apple and google premium specialized work bringing in a specialized work. Caroline some actions we are aclu, sontiracist the the leaders in Tech Community not speaking out directly against President Trump but perhaps trying to put in place for those workers. Guest youre seeing tech ceos striding to check their bona fides. Brian chesky hit a home run. Left donated 1 million to the sco you. Aclu. Over stumbling. Stumbling. T uber concludedrump crowd they were not being strident enough in their communications on the immigration executive order and here they are stumbling to strengthen their own statements. But of play. Caroline sometimes not always the master of pr. Peter ahlstrom joining us from a beautiful Tuesday Morning tokyo. Also keeping a close watch on the market. U. S. Stocks pulled back in a big way. The dow forced to drop since before the election. Joining me from new york, takeaway abigail. It was rough day for stocks in the u. S. Their worst thing of the year led by the tech heavy nasdaq. Nasdaq at a little. Down nearly 1. 5 . Let it the charge down leading the nasdaq and the big drags on the s p 500. Drags outt point about microsoft, netflix. What they have in common is what you have been talking about. The heads of these companies came out against the trunk trouble dan creating the concern that perhaps this could work against these companies. Some are saying the criticism against the travel ban was the strongest. Mean, i didit could speak to paul sweeney moments ago. An issue ofinst headcount, the ability to attract new talents, and it could truly be a negative. Restraint could be against immigration, could be a negative for the sector. Terminal, this chart suggests that tech is overextended the on d the 200 day average while the relative strength index is an overbought territory coming down. Todays declines could be beginning of of a pullback for the tech sector in the week ahead. Caroline thanks so much. Great to have you. The longawaited ipo. Why it decided to lift on the New York Stock Exchange. Nasdaq, popularity on tech debuts or lack thereof. This is bloombeg. Caroline after a long purchase, hip, lifting shares on the New York Stock Exchange. The California Based Company is following in the footstepship, f the Largest Technology listed. The nasdaq watched facebooks 2012 trading. Seems those memories live long in the nasdaq. Sarah there are a lot of people in the market worried. Now that it has a technical glitch, no one wants to to happen again. Shied away from using the nasdaq and have gone to the New York Stock Exchange. Another factor is that they New York Stock Exchange has been using Snapchat White trickling quite frequently. They have certainly been working to appeal to snapchat separately. Caroline amazing when social media know how seems to pay dividends. What about how it is coming forward in its own mojo . Sarah snap the stock message be made public by the end of the week. We will finally get a sans on how the business has been doing. We will see revenue, think of it as the very first Earnings Report we will ever see for snapchat. Caroline fascinating. I know you will be pouring through it. Thank you for joining us as ever. Debra williamson, the demographics of social media. Great to have you on the show. Flying into seattle for us. What he wants to get into the nittygritty of . Debra this is a company that is growing so substantially. It is becoming part of the lexicon of like facebook. Exciting to watch just how much they have changed the way young people communicate. What in terms of . Are still left in terms of question marks are still left . Perhaps not just millennials. What are you concerned about . Debra they have done a lot to make the advertising more effective but very experimental for advertisers. We see a lot of teens and young adults using snapchat. Are the moms, the grandmas going to use snapchat . Maybe not, does that matter . Caroline we are actually seeing facebook, they could not buy them, they are trying to beat them. Stories, having the facebook taking many leaves out of snapchats book. I am fascinated by the ea function on the bloomberg which shows you that maybe theres a slowdown in the growth to facebook income. Suddenly averaging at 37 the next year. Can you talk to me about the Revenue Streams of facebook . Debra we are seeing the main platform performed really well. Estimating facebook will have 33. 76 billion in ad revenue. Second only to google. That is only the beginning. They have instagram generating 3. 6 billion in revenue. Messenger coming online with advertising, most likely sometime this year. A multiple platform strategy. They initially said whatsapp wont be monetized, now it will be. facebook, as we know, changes its mind and to area it is going to be a long process. Facebook is just now starting to test advertising in messenger. Has not started to advertise in whatsapp. Ideank it is against the of ad load being an issue for facebook area that came in the Quarterly Earnings i think and all these individual platforms that facebook offers are going to be put give facebook the boost it needs if the ad load does become a problem. Caroline any of the backlash from the fake news . Institutions like norse news organizations . News combined with fatigue that will have over the relentless political discussion that is going on right now. Branded safety is number one. They want to be an environment where their brand will be safe and protected. They dont want to be up against anything that could be particularly negative or wrong. We are seeing that problem happening in social media. I expect facebook to continue to newse the facebook fake issue. Powerfulis such a platform for communication and advertising. It remains to be seen but i think facebook has a way out of this. Is it good to have a way out . Is in a loss of challenges. We are seeing usage decline, ad revenue starting to slow. We are seeing the Company Start to jettison Properties Like vine. \ this is a Company Starting to bess and it down the hatches or preparing itself to have the Assets Available if and when a failed should come. Caroline thank you very much. Coming up, fitbit struggling to maintain momentum for its fitness tracker and the stock is taking a hit. More details ahead. This is bloombeg. Caroline fitbit to having a rough day. The company is in amazing 6 of its workforce. 110 jobs because of falling demand. Inouryear revenue grew 17 2016. Down from the previous cost of 26 . What this means for the future of fitbit later in the show. Cks showing over showed coming up we have a ceos speaking out against resident trump immigration orders. Venture this affect capital . We will hear from Venky Ganesan next. Ive spent my life planting a sizesix, nonslip shoe into that door. On this side, i want my customers to relax and enjoy themselves. But these days its phones before forks. They want wifi out here. But behind that door, i need a private connection for my business. Wifi pro from comcast business. Public wifi for your customers. Private wifi for your business. Strong and secure. Good for a door. And a network. Comcast business. Built for security. Built for business. Ahn the finance industry says they will say one half of 1 from fullyear growth. Annual Economic Survey says expansion would have been 7 before the ban. As flag higher capital expenditure. Heading down the budget on wednesday. The japanese Prime Minister is pushing back as white house criticism about auto sales. President trump claims that there are reasons for american cars in japan. His comments indicate that alsos may be a contentious issue in bilateral trade negotiations. The investigation of the socalled mirror traits that whole come between 2012 and 2014. The bank is also closed to a same chargesr the in the u. K. A Canadian Student has been charged with a quebec shooting that killed six people and left to in extensive care. Heres a 27yearold. Investigators have no motive for canadas worst attacks. Says lessdeau violence. Global news 24 hours a day powered by more than 2600 journalists and analysts in more than 120 countries you are watching bloomberg. Lets get a check of the markets in the asian specific the asian pacific. We really do have this across the board on wall street. We have a little bit of concern about the Trump Administration. We have seen the s p 500 futures dropped gold and the yen rally. Down 1. 5 as the dns gains. The yen gains. We did see quite a bit of weakness coming through from the energy players. You are seeing the markets open under a lot of water. China, taiwan still close. A quick look at the japanese yen, it is a lie. 3 against the dollar. Live from london at the top of the hour, this is bloomberg. This is Bloomberg TechnologyBloomberg Technology the response to the executive , executives from google, apple, uber, left condemning the action and vowing to support immigrant employees. A bigger fights may be around the corner. Here is sean spicer. Er part of a larger Immigration Reform effort the president will continue to talk about his executive order working with congress. Caroline the h1b the set is something the Tech Industry heavily relies on. Brad stone still with us from new york at the moment. Give us the lowdown on the h1b visa. Who is it crucial to you and how is it not always used in the right way . Brad it is used primarily in two ways, one of four highlevel thatpaid Technology Talent the big u. S. Tech companies cannot find the mystically. We talk about problems with the Stem Education in the u. S. And tech comedies are looking outside the country to bring in those executives. That is the original premise of the program. There is this other use and reuse where Tech Companies are bringing in lower paid talent to work in their i. T. Department, sometimes in partnership with the outsourcing companies from india. That is what from the draft looks like the Trump Administration is looking to reform. Heardne weve already that we dont have elon musk and uber speaking to the president. They are on his forum to have a discussion with mainly about the order thus far. Societyeres a lot of anxiety that they have not been acting with nuance. Strokes to uphold his campaign promises. The devil is in the details but caroline ll girding for a fight. We will see how that plays out probably on twitter. Now staying with hiS Immigration order, we spoke with the managing partner at chairman of the national capitalist association. Possible moves to limiting h1b visas. Venky we dont want to throw off the baby with the bathwater. What the startup of visa does is give immigrants who start a company in america and create five jobs the opportunity to stay in america. That is how we build american companies, by an american, and higher american. We get it will to come here and create companies here. That somedo we think they made could prevent people wanting to think the u. S. Is the best place to start a tech company . Venky i understand of jolt the goal to create jobs in america. We do this by setting up a program that allows immigrants to come here and Start Companies here and hire americans. That is how i would like they modify the program to do that so that people can Start Companies in america. Caroline where do you think we might see it go to . Do you think we might see the talent pool dry up . If you get the data, it used to be that 90 of them started in america. In 2015, our share is 52 to other countries, india, china, israel, canada, australia, europe, they are catching up. If we make it harder for the best and brightest to come here, all of skilled legal immigrants, they will go elsewhere. That is what we have to stop. We have to make sure they come over here and create jobs in america. Caroline with donald trump scare, however you want to be communicating, what would you be seeing right now when it came down to the visa . Venky i would say to him that immigrants play a incredible role in our economy. If you look at the number of startups in Silicon Valley that are immigrants pounded, half of it unit cons have immigrant founders. They create jobs and wealth in america. When they would tell mr. Trump is find a way to keep them. They make us better. Caroline Silicon Valleys best response to his executive order is drawing raise. Larry summers spoke earlier. Ive been glad to see what many in the Tech Committee has said, they have recognized that they had a huge stake in the United States being a nation of the statue of liberty rather than the nation of refugee camps and barbed wire. They have a huge stake in the United States supporting an open, tolerant global section system. They have it for the reputation of the United States. What we heard out of the tech sector, we have heard rather less so far. I will be watching in particular the members of the Advisory Board that President Trump has appointed to make America Great again. Caroline that was larry summers. Microsoft cofounder bill gates weighing in on the executive order on immigration and the impact on tech. His thoughts coming up next. Two veryng up, different reactions to the travel ban. Their diversions between airbnb and uber and what it reveals about the success of each company. This is bloombeg. Caroline General Motors and honda taking their Tech Partnership to the next level. A fuel cell system for use around the year 2020. Cooperating three years ago on technology to animate tailpipe emissions. And 85 Million Investment and operated within gms existing battery pack manufacturing initiative. Plus 48 hours has put a lot of focus on tech buddies and leadership. Ceo of air being the headstrong words, pleasing they will provide free housing to refugees for anybody not allowed in the United States. Gained in deleteuber despite the taxi strike. We once again be joined by brad stone following the two companies for years and the difference in all about them and his latest book. how uber, airbnb, are changing the world. Out tuesday. Im pleased to say i had a sneak peek at this book and i love it. Talk to us about the indigenous. S of airbnb and uber postinauguration of the donald trump. Jamin thank you brad it really is from or call these two companies started eight years ago. Both sets of founders were kicking around at the inauguration of barack obama talking about their crazy ideas. The book intertwines the two stories, very similar and represented a of the last wave of Silicon Valley innovation and unlike the previous franchises of the past like facebook, it was a fight for companies in every city. Did it and why the ceos had to be different. They leased together political , bringing their customers to support them to create international companies. Theirne you say how characters were different from the founders of google and microsoft and apple. Always fit well with the big investors. Won . Brad we expect venture capitalists to be the soothsayers of the world but one hundred 50 out of 165 investors got mill in 2010 about a company cab did not even reply to the now. A seems like it is really fight. The ceo was different, they were not sure. They were not sure they could trust him. He had a reputation as a pugilist. It turns out that the executive what you needed. Thats exactly what you needed. Interesting that is aligning himself with donald trump to an extent. To come not afraid close to authority. This is the source of the backlash. If travis is on this business Advisory Council with elon musk and the ceos of ibm and gm and nike and they want a seat at the table, it is not unusual. Say, people have an ambivalent relationship with uber. They seem to be willing to expect the worst from it for whatever reason. All of the history that they lay out. Facilitating rights to jfk, left for that matter. Dont tell their drivers what to do. Nevertheless they leave a message going to channel so depressing. Now we have a mess of an antiher campaign right now. Perhaps a few pr gone wrong. If you think about it, airbnb is a threat to one of Donald Trumps own business lines. Brad he is of course the worlds most visible hotel. Briannot a good chesky had a relationship with the president. The challenge is the company fastpaced has been fundamentally local. Cities and states are governing their future. Twitterverse he could get on his twitter soap walks and create trouble. A conflict of interest because he does on hotel properties. That is not stop the president in the past. Seene of the reasons why we travis of uber stay on the council. They want a seat at the table and further their agenda. Elon musk has an agenda. Energy, you dont think of the criticism because it is high profile. Caroline uber has been called ethically challenged. I am sure he will be taking that directly to the president. Thank you again. Bloomberg technology redstone. Brad stone. Been discussing the Tech Community has been quite vocal in its opposition of trumpS Immigration. Gatese rose and though and berkshire hathaway. Discussing the importance of immigration to the u. S. Economy. The most important import the u. S. Has ever had is in human talent. A lot of the hardest working best and brightest from every country in the world has wanted to come to the United States. If you look at University Apartments were doctors engineers. People starting up companies. It has been a strength of hours. We have not made it super easy for that to work. It has worked very well. Butg back it is meaningful we are still huge beneficiaries of human talents. You can catch the full interview at 6 p. M. And 10 p. M. In new york. Tech leaders from alphabet to uber weighing in on the trump travel restriction over the weekend. Caught uptv canada with a republican who advised president george w. Bush. He shared his views on why he opposed the ban. Reasons of protecting the safety and ofof the country. This quite an extreme move. And one that came quite suddenly. They say the travel restrictions were too broad and restricting to be successfully implemented. At 6 of its workforce fitbit. What does the future of wearables look like . This is bloombeg. Caroline fitbit feelings of pain. Limiting 6 of the workforce, 110 jobs because of falling demand. At shares fell almost record low, 6 . Fitbit facing more competition from apple watch and cheaper models from china. Joining us now is selina wang who covers the company. What they are trying to do is cut costs. How much will be helped by the job cuts . They are limiting 6 of the workforce and if you do the math that is just a relatively small proportion of the 200 million. Pretty high and paling paring back the expenses. Another interesting thing that was buried in this announcement is that they want to reset performance incentives to retain employees. They say james park is looking to reduce their salary to one dollar. This will have one impact that will have an operating impact on the expenses you parkine we spoke to james and he sounded optimistic. , we think our numbers show are number one in a most every country we are competing in. Is this a fitbit problem . Caroline he was talking the big talk but you are right. This is not just a fitbit problem but a secular decline. A slowdown recently as we have seen companies from job on the, pebble, microsoft, nike startled to gain traction in the markets. Fitbit is still the Market Leader in this industry. They are as you mentioned facing increasing competition from the end,. Ost and they really struggle to gain traction in china. Another big problem is overall wearables have not found its niche. It is become relegated to this gadget category. Caroline they have been trying to make this more omnipresent. They are going into relationships with insurers. Give us your idea of where they go from here. How can they salvage this . Reporter he has said he what he can turn it into more than a hardware company. They wanted it to be a Digital SoftwareHealth Company that works with the of Care Industry and selling them fda approved medical devices. They have made some headway into this goal. A Corporate Wellness program, that is only less than 10 of revenue. Theyve been putting other deals with players in the health Care Industry. In the more immediate future theireed to execute strategy of diversifying their revenue stream. You are looking to expand into smart watches. And they have acquired coin, pebble, and vector. The near term, it will probably still be very painful for it because it does take a lot of time to develop the smart watch. Painful for investors. How the mighty have fallen. Great analysis, thank you. That does this for this edition of Bloomberg Technology on tuesday, a blockbuster day for earnings. Apple is set for fiscal firstquarter results. Full coverage, highlights, and instant analysis. All episodes of Bloomberg Technology on Live Streaming on twitter. That is all for now. This is bloombeg. Manus trump fires the acting attorney general after she refuses to uphold the president S Immigration order. Standing past the bank of japan. Stimulus unchanged as policymakers race to assess the impact of the yens slide. We have the latest from tokyo. U. K. Lawmakers begin a twoday debate on the terms of brexit. We are live to westminster. Manus welcome to