does cryptocurrency mining. they had to eliminate several things because they resource -- wasted resources. day rally0 helps in a with the biggest drop in two weeks. as the trump administration threatened tariffs on that and the international monetary fund cut its growth outlook to the lowest since the financial crisis, but tech stocks are close to all-time highs. 20% this year.up what is going -- looking at most promising, faang stocks and semi conductors. here is a founder of techonomy. what is the reason for the selloff? >> you have to step back and the s&p had just finished a streak of eight days in a row where it had risen. that is the longest streak in 18 months. no matter what sort of gauge or momentum you look at, it was clear that stocks were going to go up every day. the market was due for a pullback. imfr on top of that the came out with its forecast for global economic growth. data fromsappointing the u.s. in the terms of the jobs opening index. and the trump administration making some noises about considering tariffs on europe. the market was due for a pullback. and on top of those other stories, it makes it worse than it would have been. here thatave a chart shows the faang stocks rebounding from their those at the end of december. which of the tech stories in particular do you think are the standouts? facebook for one certainly cannot avoid any bad news. david: it gets tons of bad news and people still want to buy the stock. apple similarly, people were underwhelmed by the announcement of the services a week or two ago but the stock is climbing cents. i am surprised by the overall strength of the sector on the other hand. with every passing day we are entering more into a truly digital economy. either the ones that lead in that -- these are the ones that lead in that. every other company is trying to be like these companies. i don't think it is crazy these companies are doing well. facebook got more bad news than the market is pricing in. emily: apple shares ended up closing below today, but they were on track for a big rally. why do you think tech is defined the trends in the broader market -- defining the trends in the the -- tech is defying trends in the broader market? mike: the federal reserve has indicated it is on hold with interest rate hikes. when you look at the trade issue , there was concerns about the possibility of europe, there being tensions there. investors in general are hoping for the light at the end of the tunnel soon as far as trade issues with china. peaceng with some sort of when it comes to the trade tension with china -- especially for semi conductor set -- conductors stocks, really some things for semi conductors stocks, looking at declines of 20% plus for the first three quarters of the year. i think people are realizing that david said this is the digital economy that semi conductors can go through boom and bust cycles, but in the long run demand will be there. estimates are strong. and the issues that china will be resolved, it will cause earnings estimates to go up. investors are trying to get ahead of that trend. emily: thank you so much for stopping by. david kirkpatrick will be with us later in the show. we will talk about what else but facebook. to $16 value has risen billion in pre-listing deals. ahead of their trading debut, some investors are buying stock for more than double the price of their last funding round which valued the company at seven $.1 billion. prices were held as high as 25 or $26 apiece as the company plans to directly list its shares on the new york stock exchange in june or july. what is happening? >> slack is preparing to go listingy a direct rather than traditional ipo. in preparation for doing so, there is a thing spotify did that slack it seems is doing as well, starting to release some of its stock on the secondary market, allowing sales to go through with the idea of two goals, to do price discovery around which range they want for when they go public and trying to manage volatility ahead of the listing. this is based on reporting we have done with people familiar, checked the sales, company not commenting but demand is really high. the last time slack raise money was in august. -- raised money was in august. and now based on the sales we have seen go through, which granted it could be small one-off type stuff, but it does seem to indicate an interest in slack stock double the price. emily: now in the middle of a to raise it is aiming money at $3 billion less than its last private funding valuation. why is there so much enthusiasm? ellen: investors see opportunity for growth. have always had strong performance, people paying for the service. they have a free version but people also pay. people see it as a strong software bed. there are questions remain given the stock price performance of lyft. slack will about how be different from a traditional ipo route? ellen: it seems like slack is preparing to list on the new york stock exchange probably june or july, but we never really know how it will happen until it does. ipo, thetraditional --ect listing is no thing to it is just current shareholders have the ability to sell. emily: employees can sell right away. ellen: very different for a lot of employees were waiting for the ipo moment to realize the value they have made in their equity. emily: what is the motivation? ellen: it is different with every company. works well with companies that have a few things going for them. if they have cash on hand which side is, and if they don't need publicity, af household name -- broad range of consumer service, slack a little bit, more business focused but something many people have exposure to. they know it, like it. they don't need to raise additional capital and don't need to do the marketing associated with ipo. they can do this instead which tends to be favorable if you meet qualifications. everyone has said slack is in a good position to do this. other companies that have been potential direct listings, if this becomes more popular, strong similarly performing company with a lot of consumer -- really well-known. emily: thank you so much. we will watch for your reporting. thank you. softbank hiring a trio of industry veterans to oversee a .ew $5 billion technology fund our exclusive interview with him is next. if you like bloomberg news, check us out on the app and in the u.s. on sirius xm. this is bloomberg. ♪ emily: facebook committed to changing its terms and services to meet demand by e.u. regulators to show users how their data is sold to third parties and how their accounts can be closed or disabled. the european union said failure to make changes could lead to possible sanctions. a major move for softbank, they have tapped industry veterans from j.p. morgan and others to oversee a $5 billion technology fund focused on latin america. i spoke with the softbank group on --out the new fund and and interest in opportunities. >> look at the size of the market, the latin american market is twice the size of india and is in the right place, right population, right technology adoption. at openings that are leveraging artificial intelligence to disrupt traditional models. in the first few weeks we are looking at 140 companies so it is above expectations for potential investment we plan to launch in the latin american region. 140 companies in a few weeks. raising records about of capital when [indiscernible] is already at record highs. how do softbank stay disciplined and put so much capital to work at the same time? marcelo: we have been quite disciplined in terms of a clear investment. this is an investment and we are working -- looking for that company that has the ability to leverage artificial intelligence , leverage data to disrupt traditional business models to enhance people's lives. because of artificial intelligence, the level of disruption in the next few years is significant. pretty much every industry in disruption, we choose that when a company we can put a capital and our growth strategy, make it consistent and help them grow. on the business fund metal -- level we have 70 companies we have invested. we are applying this logic of just one to the same in latin america. the vision fund has traditionally focused on india, china and the u.s. and no we have decided to focus on latin america because of the fact of the market and technology trends applied to that region of the world. emily: how much time will you spend on this latin american part of your job and your duties as coo of softbank? organizede are well in this system. we have a ceo division fund in charge of managing division fund. , itbank group international run most of the operating groups . we have a majority ownership or arm or also the dynamics. -- bolsa dynamics. in latinend much time america but my core is running companies in the group and eating the coo of the entire group. .e work in the partnership we are the four leaders in the company and basically are able to accommodate response abilities accordingly. we have an amazing group of people throughout the world, we areng investors -- busy. there is a lot of activity and built on the same type, applying rigor. emily: you have a big ipo coming up. what are your expectations for uber's ipo? marcelo: we try not to comment potential, but what we do, we have a lot of potential ipo's coming in the future. we have invested in a lot of tech companies growing at an amazing rate. we are hoping that investments we have made are going to be translated into great returns for recurrent investors in our funds and shareholders of those ipo's. uber is a fantastic company. travis did an incredible job disrupting transportation and have done a great job taking the company to another level. do aner uber decides to ipo, we are sure he will be great. emily: you are reportedly getting one of softbank's two uber board seats. what is happening with that? marcelo: it is complicated to the fact we invested so many different companies and we are a foreign direct investor and all of that is in process through different government agencies. we believe that in many cases because we are invested in so many different areas, we have put other people on board area there is no -- company is doing great. management is doing great. they already have quite a sizable board. emily: our interview there with softbank's coo. we also talked about the pending sprint-t-mobile merger which appears to not be on a track for easy approval. twitter is also growing its global operations. how the social media company is attempting to capitalize on video content in the middle east. livestreaming on twitter, check us out at technology and follower breaking news network on twitter. this is bloomberg. ♪ ♪ emily: while softbank is going to latin america, twitter is prioritizing the middle east and north africa. they have signed 16 premium content video agreements including with tv networks and sports channels as video advertising becomes a key revenue source. >> twitter is expanding in the middle east and north africa region with more content partnerships. earlier we have seen them signed 16 agreements that include new and expanded deals with tv networks and clubs and broader agreements with current partners like formula one, vm sports and others. new deals will also include contents from nbc group holdings which will manifest itself into recaps of regional flagship shows like got talent and the voice. alone generated 300 million views on the platform. dick bremer are getting in more action with expanded deals generated more than 1.5 billion impressions on the last year on the platform. the social network considers ofdi arabia, the location the most revenue for the region and is looking at egypt to expand next. to discuss further, david kirkpatrick and in the studio, covers twitter. talk to us about the significant of these partnerships. selina: the middle east strategy is part of twitter's broader strategy. to become ubiquitous for a place of what is happening now, they in eachque content region that makes it feel local. in the middle east they are striking deals with the biggest entertainment and sports companies in the region. we have seen them do that in the u.s., across asia. in japan they have been successful at video content. it is twitter's second-largest market. woman look at live video in general, the video category is extremely important to twitter. it is the largest ad format and the fastest-growing one as well. advertisers love being able to brand themselves with content. emily: what is the significance of twitter focusing on the middle east and north africa given all of the other priorities the company has and pressing issues around hate speech, harassment, violence on the platform in addition to the need to grow? grow, andy have to this is a great ways to do it. they can't disregard political speech challenges. the company knows they are real and has been handling them their than some of internet competitors. in terms of the middle east, the brand of twitter is super strong in that region. when i look at the big picture, jack dorsey has always had this vision twitter was in some ways a media distribution platform. it is not the way we think of it. we think of a place you tweet and forget a lot of those are links to media, but it is becoming a media platform, video platform for the smartphone age. did i heard about what they today, i was impressed and feel like this is the kind of thing that could take twitter to a new level of respect and consistency of results. emily: certainly a globalizing company. our investors excited? -- are investors excited? selina: numbers have been stagnant in the u.s., and sometimes you saw double-digit rose in international markets, so you really -- growth in international markets so you have to move out. it is good for twitter, but what they did in the middle east they id do in the u.s. we saw it impacted daily active usage to some extent but monthly active users still stagnant despite content deals. around the world twitter's biggest struggle, how do they get this overall pie of users to come every day? there is a big gap between daily and monthly active users. even though they don't get big blockbuster deals like the nfl which he may lose to amazon -- they may lose to amazon, they are going to be unique in terms of finding behind the scenes video shoots or after show talks and chats. emily: for a fun little story, we learned jack dorsey hasn't really been taken -- taking a salary but his salary was one dollar 40 8/10, symbolic of the 140 characters that could be written in the initial iteration of a tweet. it is not unusual. steve jobs took one dollar. many of these founders who make a lot in terms of equity elect to not have a salary. david: jack dorsey is a minimalist in every way. we also heard he eats one meal a day. this is a guy who is just very, very disciplined and also i would say unusually sort of ethical in his own mind. lotecognizes he has made a on stock in a number of different companies including many we haven't heard about. she doesn't need the cash salary. -- he doesn't need the cash salary. emily: i don't know how i could anchor a show with one meal a day. david kirkpatrick will be sticking with me. selina wang, thanks for stopping by. big tech was under the capital lights once again, this time to talk about what it is doing to fight hate speech. we are going into this hearing next. this is bloomberg. ♪ g. ♪ this is bloomberg technology. representatives from google and facebook testify before the how she was to a committee. they showed up along with a handful of civil rights and right-wing activists to talk about the spread of hate crime and white nationalism in an online world. and, in the middle of it all, youtube's livestream of the hearing itself had to have its content disabled because it was flooded with hate speech. jerry nadler described what was going on. >> these jews want to destroy when patients -- not putting in ame -- etc. this illustrates part of the problem with dealing with. >> could that be a hate hoax? what?> emily: the other voice you heard was louie gohmert asking if the comments were a hoax. all of this with a speech about hate speech. still with us is garrett did devinck. still political than some might have expected. very little focus on tech actually. >> that is exactly right. we have seen this in a couple of hearings with tech, other issues. the format fights the goal. eight witnesses, panelists to take various questions on all kinds of aspects of the white nationalism problem. some of that was on civil society. five minutes of questioning going back and forth to the most of our thing that came out of the hearing was the youtube livestream. chairmand-most was the gambling down one of the conservative commentators on the panel. we did not learn a lot about tech policy we do know before. emily: hate speech has no place on youtube. we have invested on teams and technology to removing hateful comments and video. we disabled comments on the livestream. david, hearing another representative ask if it is a hoax, it is another part of the problem. what is real, what is fake? what is fake and what is not? big forproblem too tech and government? david: it is a massive problem. congressmane a cumbersom asking if it is a hoax, it is an attempt to disseminate fake news on the congressional hearing floor. it is not fake. this stuff happens. there is an enormous inability to face up with what is happening. on the other hand, a huge inability to acknowledge how badly they are doing this job. it really distressed me that facebook, in the form of the guy testifying and google when they made their statement about youtube, saying there is no place for hate speech. e.ere's clearly a spac. they should be saying we are deeply distressed about our inability to restrain this problem. it is inexcusable they cannot own up to the fact they are failing. they are not doing the job they need to do. this incident with youtube is classic. emily: aloso an example of how the folks driving this arguments. re humans. hate existed before the internet and has taken on greater velocity. take a look at what christian the -- resident of >> they're using online platforms to recruit new members, activate followers, target communities, organize rallies, stream their, murders and incite violence. instead of hiding under hoods, they organize behind computer screens. emily: harr what has been the company's response broader to these issues of recruitment, of the fact that -- you know -- youtube did not create white nationalism but stretches much more far with the rise of the internet. garret: one of the big concerns is whether you to, the recommendation algorithm does not know about these things. start showing the videos and they go down these rabbit holes and potentially become radicalized. videos they have identified as potentially along the lines, they will not show them in recommendations. if someone wants to see a video -- whether it is its conspiracy video or videos that are out right people, they get off the platform. there is a lot in the in between zone and has connections, but not obviously hateful in the video itself. if people want to look for those things, it will not sensor that. at the end of the day, youtube and the other platforms have not budged regardless of the changes they have made from the core position that they see themselves as an overlap form for people to talk. i think putting comment on this hearing was going to be a good idea in the workplace shows that is where they are operating from. let's have a format for people to talk about and respond maybe in the civil matter. of course, the first comments are immediately to degenerate. emily: the tech companies themselves do not take much of note, but there was about whatsapp and how they tackled these issues. >> whatsapp has its own policy towards content. they are working with law enforcement and they do often. emily: david, i thought it was interesting he said well, whatsapp has its own things. an interesting question on how issuesp handles i the while the service is encrypted. what did you make of that? david: they are asking him how the company he works for handles this problem. and he says they have their own policies. wait, you are them, why are you saying that? that is a really disturbing, evasive answer which is difficult unfortunately. they keep saying the same non-things over and over again. it is really scary. to the degree you worry about this problem, it is gary to scary that all the services could potentially be encrypted and much harder for external observers, whether facebook itself or law enforcement to get any visibility into. it is true whatsapp is a very abusive from the easy to distribute, very toxic content line because nobody can really see what is happening except in metadata which sometimes allows facebook to detect patterns. in many parts of the world, whatsapp has been the most socially destructive platform. emily: interestingly then, th facebook policy director will be testifying tomorrow before the senate committee on these issues. representative of twitter will be there as well, but ask es has axios has reported that google's representative will not be accepted as a suitable witness to testify. what do you make of that? >> it is interesting because it is not the first time a senate committee has turned down a google witness. ben: back in the fall, google wanted to send ken walker to a senate intel committee hearing and they said they wanted larry o sundar. the house was able to get the ceo. what i think wil what will be interesting is it will be different. today was about not doing enough to moderate some of the horrible stuff on facebook, on youtube. tomorrow will he b be about taking down too much. it goes to the anger a lot of lawmakers are hearing about the platforms, a lot of users are hearing about the platforms. sometimes they are doing too much, too litte. tle. there is a lot of anger. emily: i know you will be all over that senate judiciary committee hearing tomorrow. thank you so much, ben brody. gerrit de vynch. david kirkpatrick. great to have all of you here on the show. as we mentioned earlier, softbank has launched a $5 million tech fund focused on latin america. but they are not the only when investing in the region. according to the association for private capital investment in latin america, the region drew a record $1.598 billion in venture capital funding last year. scarlet fu and caroline hyde spoke with the mentioned director about -- managing director about softbank's latest fund. take a listen. >> latin america is the next big thing. we will always be looking for the next billion users online. we have seen that happening in u.s. and china and india and indonesia. it is next. we were debating and discussing how soft bank once again is doubling down on investing. $100 billion vision fund. how difficult does the whale that is softbank, the division , make it forhen people trying to get into the startups? hans: we want to see more softbank funds. in order to grow these unicorns, it takes hundreds of billions of dollars to make it work. you need more capital to follow, to deliver and build great businesses. we are investors. we are in there. usually, we're there before softbank does. they have been great partners. >> let's talk about one of your investments. you made the largest investment in yellow which is based in brazil and none for the bike sharing service. the idea is urban mobility and really leveraging the promise of that. how do you go about doing that when so much of the population is unbent and do not have smartphones they can use to tap into urban mobility? hans: two ways regarding l of. g yellow. we think ridesharing is not limited to cars, but also bikes and other forms of transportation. investing since 2015. yellow was a in continuation of believing in ability, scooter sharing, bike sharing is a global phenomenon, especially in huge markets. the second thing is we think we want to be in markets where it is underbanked. consumers will be able to top off. money into the wall it in order to build the business. we are an investor in alibaba. ali pays a huge part of the growth. we think this model will be replicated in subdivision. >> it can be replicated. you made a lot of investments globally in urban mobility. is there a lesson from asia to north america that you cannot apply to a market like latin america? hans: i think people always struggle for differences after the similarities. we have large rising middle class. a lot of consumers on the smartphone. there is a chance with very similar business models. a lot of the consumers worldwide and more incumbent veteran differences so i think what we're seeing in silicon valley, especially china, have great parallel to look at. >> let's talk about lessons being learned right here, right now when it comes to the ipo market. lyft opening up the herd of your unicorns, and you have invested. aton, airbnb. are you positive? started in iphone 2007, we had a 12 year run of three chill around the world. now the world has 4.4 billion users on the internet. tohas been a great base build business. peleton ar e great examples. zoom, a company we are not in, is also an example. but think over the next year or two years, you will see a lot of interesting tech ipos in a timeframe where a number of which we have never seen before. the next two years will be truly exciting .>> does that mean the ipo does not close over the next two years? hans: [laughter] a lot of companies ipos now started in 2008, 2009, 2010. these businesses have taken advantage of the fast growth of smartphones. they are coming up for i po's. we look at tech and internet, its impact will continue beyond the next two years. right now in latin america, less than 10 unicorns. india, less than 30. look at china, 113. u.s., 115. so, there is a reason for southeast asia, india and long america, you cannot see more coming up. we are bullish on what internet and tech will do. emily: bloomberg's scarlet fu and caroline hyde with hans. coming up, china's war on the crypto industry. what beijing plans to ban next. this is bloomberg. ♪ emily: another blow to the cryptocurrency industry in china.beijing signals bending crypto mining and wants to abolish the whole sector. max has followed the story in joins us now. interesting that like kumal what is it? 50% of bitcoin money used to be based in china so what happens if they dented altogether. ? max: this is something the chinese government has been signaling for some time. cracking down on exchanges and ipo's in 2017. last year, signaling it might try to crack down on this. a lot of the big mining companies have already started with opening facilities in countries. places that are close to hydropower which has this continuous power for mining. you expect that to tolerate. accelerate. it is on a great development for companies which manufacturing a lot of mining rates and operates these kind of server farms in china and elsewhere. emily: now, authorities are concerned about things we have talked about. many regulators are concerned about speculation fraud and energy consumption. how much energy does it actually take to mine bitcoins? ? max: it is a lot. i think what is going on is that the chinese government looks at bitcoin as a threat on a couple of fronts. one, as you said, is energy useage. they have been using the cheap, coal power that china regards as a strategic resource. the other piece of this is bitcoin is obviously a decentralized technology. division of these crypto heads is a centralized internet where governments will not have much power and that is the opposite way the chinese government has been pushing and also to directions. at the same time, you have china pursuing these aggressive, heavy-handed approach is to internet censorship. you have a crackdown on things like bitcoin. emily: max chafkin, thank you for continuing to cover this story. you can read all of the stories he writes and edits on bloomberg businessweek and here more every saturday and sunday on bloomberg television and radio. still ahead, apple has unveiled its credit card with very little details. so, when a cardholder once customer service, who will they call? apple, goldman sachs? we will discuss, next. this is bloomberg. ♪ emily: 16 parents in the u.s. college cheating scandal, including bill mcglashan, were indicted by a federal grand jury as prosecutors aggressively pursued the biggest admission skim. managerrivate equity ma basis two charges and a new charge of money-laundering conspiracy. the parents will be required to appear in court in boston to enter replete. a plea. several other parents have pleaded guilty to similar charges. just last month, apple unveiled a sleek, titanium credit card its flashy forum. the problem is apple and goldman sachs are relative newbies to consumer credit. apple has dabbled in the consumer service, apple pay. goldman markets personal loans, but what about customer services? to discuss, i want to bring in mark gurman. you are taking a deeper dive on what this means for apple. why would apple want to expose itself to credit card disputes, financial regulations and all that messy stuff? mark: good question. the simple answer is they probably would not. that is why, is our story indicates today, they are handing off of that for all intents and purposes to goldman sachs.goldman sachs will have call centers to the deal with disputes. there will be a panel through apple pay app, but all the financials the, the nitty-gritty will be done by goldman sachs. that will tap into the goldman sachs resented. to call apple with a concern about your apple card, it will connect you to goldman sachs about statements and disputes. emily: do you think that apple can transfer the sort of aspirational nature of the apple brand to a credit card? i really do.i reall having to integration with the wallet integration and see a breakdown of your spending will powerful for a lot of people. there are a lot of apps online. i have tried a bunch of them but none of them are very good, but it seems like apple's interface will be one of the simplest efforts. i think it will get a lot of customers. emily: you and i were at the unveiledre apple its content streaming plans. a lot more questions than answers, but certainly a lot of celebrity funk. over the last several days, what has been the buzz in hollywood, especially with disney coming out with its service on thursday? how optimistic are hollywood insiders about apple? mark: everyone wants to know the price. they want to know what apple will charge. i think it will be around $10 to match the apple news plus service. down the road, i'm expecting them to bundle it together. right now, it is super early. we have not seen much of the content, but there are a lot of different players. in my opinion, it will only take hits for or hthree people to be glued to this thing. emily: well, they have reese witherspoon and opera. two things going for them. mark gurman, thank you for stopping by. that does it for this edition of bloomberg technology. we are live string on twitter @tehcchnology. follow tictoc on twitter. this is bloomberg. ♪ haidi: welcome to daybreak australia. in bloomberg's world headquarters. sophie: i am sophie kamaruddin in hong kong. we are counting down to me asia's major market open. ♪ growing pains with the global economy yet again. tit for tat tariffs are damaging world trade. the eu and china bans together in brussels, presenting a united

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