language to the u.s. commitment to defending other nations in the alliance. the trump administration is no longer considering utah senator. -- for the federal trade commission. that is according to people familiar with the matter. reyes had been in the running to lead the agency. bill cosby's sexual assault trial is deadlocked after 30 hours of deliberation over a four-day stretch. is charged with indecent assault after allegedly drugging and assaulting a woman in 2004. otto warmbier suffered eight neurological injury, he was released by north korea in a coma. global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. i am alisa parenti. this is bloomberg. ♪ emily: i am emily chang and this is "bloomberg technology." tech stocks rally slightly. we will break down all the action. send a $9 billion message. what could be the biggest acquisition to date for the world's largest online retailer. a tech job bonanza unfolds in the u.k. the workforce cannot seem to keep up. why it is still a struggle. first, to our lead. tech stocks started the day lower end made up some losses. fourthl marked of the out of five days the nasdaq has finished lower. joining us to discuss the recent selloff is abigail doolittle from new york. give us a tech roundup. >> we did have tech down sharply, the debt -- nasdaq down 1%, session lows down 1.4%. even so, the nasdaq did finish down 0.5%. it seems we saw a little bit of that mentality overall. to your point about the last five days, the s&p 500 tech index is down more than 3.5%. the worst five-day stretch since the brexit last year. lots of big names participating once again, apple, facebook, alphabet. alphabet had the rare downgrade. most are bullish on this one. that is what is at play here. whether or not these highflying stocks deserve to be highflying. that is true for the tech space. this one up more than 55%. lots of valuation. lots of guys on the street wondering when that sector would come down to earth. even though those losses were pared at the end of the day, it seems that selloff was down a bit? its iponap is down to price, one of the more newly public ipo companies. what is your take? abigail: it is a real sign of the times. 55%ad a hot tech ipo, up from the ipo price of the 17. today, in the middle of the selloff, even as we see the losses being paired, it hit the $17 ipo price. it speaks to the fact investors are uncertain. do they want to take on this kind of risk for the possibility of a continued new hire? that is not the case necessarily with snap. still abandoning all the babies with the bathwater, snap included today. emily: let's take a look at the chip sector coming back to earth. bigail: valuation is a play, one point on a trailing basis. pe for the stocks up 30 times. s&p 500, closer to 20 times. people are wondering how long can this sector continue to fly? we have seen a big reversal. citroen research had a piece of this, bearish on nvidia. up to hundred percent, a real rocket rise. he is saying they have to show more. it has gone too far too fast. along with a goldman sachs know, we saw that factor common -- sector come in and take other names with it. nvidia finish slightly higher but the other ones came down. one last point, even though we do have a tech selloff on the year, the nasdaq and nasdaq 100 are up sharply, 17%. we will see whether that dip continues or if we are going to see tech continue this selloff. emily: abigail doolittle with the roundup for us, thank you so much. for a broader perspective on the tech landscape we are joined by mitchell green, partner at lead age capital with $1 billion in capital under management. alibaba,ts include uber, and spotify. what is your reaction to the downs we have seen in tech over the last few days? >> we take a very long-term view. thank you for having me on. we have seen dips and ups and flows. we still own a lot of alibaba and we take a 10 year view. silly, but we have a huge opportunity to have time arbitrage. a $400 to $500 stock in a decade, earning $25 per share, compounding it 24%. it is similar to what amazon compounded revenue at for the last decade. emily: when you look at the tech valuations in the private and public markets, do they seem justified? mitchell: in some cases, yes. in many, we think some of their stuff is expensive. there was a selloff, a lot of stuff came down. the reality is, there is too much money for too few great companies. if you're growing superfast, you can still command a premium valuation. in terms of public stocks, stuff is definitely not cheap. a there is a class of companies that are cheap. we would say they are garbage companies. people are willing to pay for growth. in a zero interest rate environment, what will you own? emily: do you conditions impacting ipo's and dealmaking? mitchell: it is interesting you ask that. i was a lunch with a friend, we were talking about how we cannot believe there is not an ipo every other day because the market cannot get any better than it is today. it is incredible there are not more. there are a couple companies about to file. hero -- it delivery surprises up there is not -- us there is not more activity. emily: you see a difference in european versus u.s. valuations? mitchell: we do, there is frankly less capital in europe, looking at all these opportunities. there is another interesting thing in that, we will be encouraging more very european companies to go public in europe. there is an interesting phenomenon. there is very little growth effectively in europe in the public markets. if you look at the frankfurt exchange, london exchange, netherlands, amsterdam. some of these companies that compete with grubhub in the u.k. or take away, another one, they trade at substantially higher multiples. a lot of these european session and sovereign funds have to invest in european equities. we're encouraging these companies to go public in europe. emily: you got into uber at eight $40 billion valuation. what is your take on travis taking a leave of absence from the company and the incredible cultural challenges they now face? mitchell: that is a hot topic right now. it is important to remember, has something horrible personal going on. his mom passed away suddenly and his dad is in the hospital from accident. i think a lot of the leave of absence as a result of that. we are big believers in travis, and in founders remaining it companies. look at bill gates for microsoft, sheryl sandberg -- mark zuckerberg bringing in sheryl sandberg. we believe founder should be at the company. visionary, he built this service that people around the world cannot live without. it is amazing, people want to go from point a to point b, get there fast, cheap. emily: are you a big believer in new birth sustaining its valuation? they last traded at $70 billion. they are concerned the brand has taken a huge hit and that they will not live up to that. mitchell: they have started releasing to the press some of their numbers. q1you know, the key -- numbers were strong. this started with unfortunate news about the sexual harassment stuff, which is horrible. they need to make changes. it is great to see the board making changes. i think they will continue to make more. they are continuing to bring in world-class people. david richter will be the number two guy there. we have heard from numerous people he is phenomenal. we believe in management and the board. you are also an investor in alibaba. a $1.5 billion investor in the ridesharing -- ride hailing company, the competitor in southeast asia. uber'sn one of competitors is a bet against uber. mitchell: that is fine, they invested in lyft a few years ago, as well. a lot of people give them a lot of grief about their investment. at they invested in lyft couple years ago and i think they will do quite well. we prefer to think of southeast asia in the ridesharing space as too much capital going into it. grab, asso looking at we speak. we think the market opportunity is enormous there. the fact that jack and alibaba are looking at it does not surprise us. they're looking to expand outside of asia. emily: mitchell green, thank you so much for joining us. facebook debuted a new blog today called, hard questions, will -- which will address philosophical questions about the role of social media and society. theyirst post showed it have 150 counterterrorism experts. the company acknowledges political pressures and oppose, writing, though academic research shows radicalization of members for groups like isis and al qaeda occurred primarily online, we note the internet plays a role and we do not want facebook to be used for any terrorist activity whatsoever. in a relaunched business week, tim cook takes the cover story. we will take a look at what he had to say about politics. this is bloomberg. ♪ emily: the price of bitcoin tumbled thursday, on track for the worst week since january 2015. a comes after the price of most tripled in value this year. other digital coins are falling after the currency exchange suffered an outage monday due to high trading volume. for 88 years, bloomberg businessweek has covered the companies, people and products that have reshaped the world economy. just as the business landscape evolved, so as bloomberg's businessweek. they relaunch the magazine with a whole new feel and editorial direction. this week's features tim cook. we're joined by megan murphy. you flew in and sat down with him right after we did on television. i am curious what your impressions were of mr. cook? >> as you know, we did the interviews almost back to back. some of the things you touched on, the big surprise at the actual conference was in introducing the homepod, what everyone thought would be a rival to the echo and moving into that space aggressively. but he was focused on the music capability as opposed to the internet of things and integrating into your home. i thought it was quite interesting and humorous how focused he was on saying the kids will be rocking, it will be banging. very passionate about just owning that specific segment. it ties in with so many things about apple. being the focused on first and so many markets, but we are focused on being the best. emily: he also talked about politics. and i felt fairly sincerely, the full quote is, america is more important than bloody politics. what did you make of his strategy in terms of dealing with president trump and the administration? he was using bloody in the sense of the english word bloody. meaning, shorthand for ridiculous politics, then america is worth more. passionate, eloquent, genuine on this point. as everyone knows, he has had tremendous differences with the administration on policies on climate change, immigration, lgbtq writes, bathroom laws. one issue they can find common ground, dobbs, manufacturing -- jobs, manufacturing, how to up-skill the up -- workforce. not just that apple but across the country and communities that need new jobs up the social ladder. he will find ways to have his voice be heard and be a positive contribution. he said how much he takes the -- as the ceo of of an american companies seriously and he will do his best to make an impact. and work with, not against the administration. let's talk about your responsibility shepherding bloomberg businessweek into a new era. megan: we have done a lot of things with this new relaunch. we have streamlined the print magazine, to showcase the journalism. we want that to shine through. business week has been the greatest consumer outlet for the amazing journalism that you and our journalists and analysts across 120 countries do. at the same time, we are layering digital products. wherevero get people they are to consume the products. whether it is on an apple or redesigned vertical or newsletter format, events, tv. we want businessweek to be the best in business and finance technology, political journalism we have out there. it is really about the journalism making it easier for the reader and making it stand out. and making it relevant on a daily and weekly basis. emily: that issue out today. definitely worth checking out. thanks so much for stopping by. keeping -- we will hear more from businessweek reporters every saturday and sunday on bloomberg television and radio. we will talk about amazon's interest and a potential $9 billion valuation. this is bloomberg. ♪ emily: a merger has been in the works for quite some time. but, the deal could be blocked it is serious competition concerns raised by the u.s. federal trade commission. the combination of the fantasy sports companies would give more than 80% on the market. for now, to draft -- block the still- the decision will fall to the commissioners to vote on. it can happen in the next week to read we spoke to draftkings last month. here's what he had to say about merging the companies. >> so far it has been going great to read we have regular meetings and getting the team introduced to each other, used to working together. i have been incredibly surprised in a positive way how well the team has gelled. emily: to a bloomberg askew, amazon may be looking to acquire the messaging startup, slack. at $9 billion. a hefty price for the company valued at $3.5 billion in its last public funding round in april, 2016. if it does work out, it could be the largest acquisition to date by amazon. joining us from new york, alex barinka. talk to us about what we know. of at least is one one other company that has expressed interest in acquiring slack. my colleagues and i wrote the story late last night. alex sherman has heard at least one company is further ahead, that has put pressure on slack to engage in these talks. if slack does not come they're potentially looking to move on. price, $9g sticker billion. amazon being the interesting one because frankly, a lot of folks in the tech industry i spoke with today are feeling at what they think about it. this is not necessarily the first company that came to their minds. -- amazonzon not has has their own conferencing surface -- service. alex: if you think about amazon's future aims with time and business goals, it looks twofold. you can look at the actual consumer selling on the business side. oralexa at a net go every business, this could integrate into that and selling into businesses, which is something amazon has been pushing further into. on the more tech side, which blends in closer with that aws cloud business, slack is the definitive developer chat system. think about integration, it does make a lot more sense in terms of the earth enterprise business side. if you have folks working on an aws platform, building applications there, perhaps you have slack as an easy communications tool. ceo was onk the bloomberg, did not indicate plans for an exit anytime soon. take a listen. years away.uld be we are growing at a fair clip. thatf the things is predictability is hard not to have. the privates is, capital markets are friendly to companies like ours right now. there is no reason to have a public offering. does slack want to sell? his baby, but i have been around this environment long enough to know everyone has a price. when you think about how quickly this company has fired up and how big of a price tagged this is, you would think a person would be full hearty cannot at least think about it. emily: great scoop from you guys, thanks so much for joining us. cisco executive chair john chambers says the tech scene and france is stronger than ever. his comments from the conference in paris. this is bloomberg. ♪ >> it is 11:29 a.m. in hong kong, 12:29 p.m. in tokyo. the number of people killed in the london fire has risen to 17, with police warning some victims may never be identified. six bodies have been recovered from the 24 story tower in north kensington. butyone has been located, cannot yet be removed. there is a full public inquiry into the disaster. some say it might have been preventable. greece's creditors want to ease the country's debt burden. they want $9.5 million in emergency aid. measures, and the imf loans by astend much as 15 years. the u.s. military said to be beefing up its presence in afghanistan. an official told the associated press the president has authorized the deployment of almost 4000 extra troops. the pentagon says no decision has been made. say they do not have the manpower to have record forces against a resurgent taliban. global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. >> i am juliette saly in hong kong, checking markets the final trading day of the week. japan's nikkei index coming back online with no change from the boj. right above the 20,000 point level, up 0.9%. hell done by the weakness we have been seeing the japanese yen, yesterday posting its biggest slide against the u.s. dollar by january, down 1.2%. down 0.3% as we await comments from governor kuroda. a rebound in a lot of these commodities-based markets. up one third of 1%. we still have crude holding at the seven-month low. certainly more coming back from investors. in terms of the bond market, you are seeing bonds sold off today. strong movement coming through in the yield market. up by 4.6to their basis points. let's see what is moving in terms of basis points. rebounds coming through from tech stops -- stocks. former --top for performer in the region. that is the state of play across asian markets this session. it is friday here in hong kong. ♪ this is "bloomberg technology," i am emily chang. the tech selloff, u.s. stocks retreated as large-cap names in tech continued their recent slide, weighing on the overall market. joining me from new york, our and an analyst. james, you think tech is undervalued. where and why? >> if you look at facebook, facebook is growing the bottom line at over 70%, priced under 40. adjusted for growth, its actual peg is a 0.5. the market is 2.5. is one fifth it the price of the general market, that is quite controversial. but i am not afraid to be controversial. it is the right call. emily: oliver, you disagree. why? oliver: when you take it from a sector or macro level it is hard to say that tech is not overvalued as a set her. if you jump into the terminal i have a chart that shows the tech index versus various other metrics. tech,ite line is normalized to last year. it is beating stuff not just like energy stocks, but in terms of relative value to the s&p and the bottom value. you can see that shows a little correction. tech is still pretty expensive. point, the ratio is an interesting way to look at it. it takes earning growth into account. if you different story break down the sectors, there are only two or three only sectors in the s&p 500 that have a lower peg, which is good in this case. if you are looking for growth and juan earnings growth, people are willing to pay up for it. james, what is impacting the selloff in what does it have to do with the fed? james: i do not think it has much to do with the fed. i doubt they spend so much as 30 seconds thinking about fed policy. are entering new markets with secular growth and they have clear strategies not dependent on any central banking policy. i do not think it has anything to do with the fed. it is probably the optimism built into the market, on a steady growth trajectory this year. it is healthy to have a correction once in a while. i prefer bull markets do not die in that we go steady. emily: oliver, dig into specifics and the biggest losers of the selloff. oliver: you look at tesla, snap, some of the companies where perhaps there are not earnings investors are looking for. it is more about expectations for growth. highly valued stocks. if you have pressure in the market, whether or not it is due to valuations, some investors will look at this lineup and say, i need to take some off the top. if you look at sector-based, some semiconductor stocks have been really lagging. , some were semantic on the downside. it is not necessarily all about valuations. pickis the momentum that up in the past six months or so since the trump trade stop. that gave momentum. a lot of these companies are mixed up. perhaps it is quantitative, as well. they fit into these factor models, for sure. emily: james, where do you see the tech market specifically heading later this year? james: in times like this where you have a little selloff, it is time to zoom out and look at the broader trend. if you do that, you can see growth is quite the same. some of the core fundamental technology is just getting started. deep learningbout and artificial intelligence, we have been having a lot of media on that. but that core technology is just maturing. that is generating and multiple trillions of valuation for the s&p 500. is other upsetting area blocked chain. the crypto space is borderline at a frenzy. it has that even more brutal correction today. that is also maturing. longtime investors need to look at the underlying technology to see where that is an buy it at a reasonable price. emily: oliver, you sent me a chart i am looking at on the bloomberg. will earnings save tech? what is going on here? oliver: this fits well into what james was just saying. i will try to connect two poi nts. if you are banking on disruptive technologies and companies to move into mature lifecycles, that is what you see when you look at the estimated earnings per share growth for this year in tech. that is the white line. you can see how much that is changed in terms of analysts upping earnings expectations. situation energy, a comparable, tech is pulling for the most earnings growth over the next year, relative to its sector peers in the s&p 500. there is a caveat to that. whenever is such high expectations, there is room for error. a lot of this will be whether revisions for earnings come down, if economic data weakens. as long as it stays there, i think you will see investors come back. emily: thank you both for a hearty debate this afternoon. tech scenethe u.k.'s showing no signs of slowing down. but is it enough to keep the party going? this is bloomberg. ♪ emily: france's start up seen gaining traction after investment. have seen $2.7 billion investment in the country last year. cisco chair joins us from the vivatech conference in paris to discuss why he is so optimistic about business in france. >> two and a half years ago i said france would be the next big thing. my friends in the u.s. said, france, business, that does not make sense. i said it would become the startup nation in europe. people said, i do not think so. it is the startup nation in europe. they went from an average of 130 companies in venture capital and high-tech per year, to 226, to this year, 486. there is excitement going on here, which the new president is emphasizing further. i do not think people grasp how great the opportunities are. you have not seen anything yet in terms of what can occur in france. i think france will lead europe in the digitization revolution and transition and leave europe for the next generation. i am extremely bullish on france. it has gone up dramatically. >> let's talk about the reality of labor market flexibility. it does not lead europe there or the western world at all. the challenges for president macron are pretty big. can he achieve that? for someone who has run cisco, as you look at the company, to invest in france, how hard is it with labor laws the currently exist? what you have to look at his three things. first, i had a chance to get to macron when he was minister of the economy. i have been on sessions with him in front of mba students at schools. we have done joint craft interviews. i have seen how he is evolving. if you watch the momentum with the prior government, they are a country i think will disrupt others. i would be very careful to judge the french as only a place to go on a great vacation and have dinner. it is also a great place for business. does he have issues to address in terms of tax regulation and the social issues from a labor perspective? yes. and my optimistic he will bring the whole country with him? yes. i came offstage with three hot startups in europe. you would have thought not only were you in silicon valley with of the three startups. france, one from israel, one from germany. you would realize how much faster the europe is moving than the u.s. in terms of new startups and jobs from those. i am optimistic about what president mccrone -- macron will do. emily: cisco chairman john chambers there. meantime, the u.k. tech scene is flourishing. more than 10% new jobs created in the u.k. this year have been in tech fields. this according to a newly replaced -- released report. ia and data science were primary drivers, showing almost 200% growth and a 136% increase since 2015. still, filling the positions is tough. the 50 most difficult roles to fill of the 44% were software and tech developers. joining us now from london, caroline hyde. a lot of uncertainty businesses are facing. this is given brexit and concerns about the economy. yet, they are still looking to hire. caroline: one in 10 jobs goes to the tech sector in the u.k. it is more than the financial sector. that was the sector the u.k. over dependent on prior to the financial crisis. and more than professional services. it is a key area of growth, almost double the growth in the last year. we have seen it in ai in particular. apple is pushing on siri, google aia -- pushing on android, and machine learning is where it is at. software developers in general. jobs -- there are jobs available in junior positions, but senior jobs are harder to fill. workers are hacks not want to come so much. in terms oftrends what types of jobs they are trying to fill? developers, is developers, developers, it engineers. do you really need your engineering talent to be based in london, which is quite expensive? or could you look into the , theppines, lithuania eastern block countries, where we know there is a rich pull of talent and that is cheap to come by? the bulk of the talent is in the united kingdom, but they also look to estonia, where the current owners come from a rich lease. this is what is slightly worrying. i was at a founders forum, where leading -- leaders in the u.k. and the u.s. assemble. a lot of people i am talking to her saying, they're worried about e.u. talent currently based in the u.k. wanting to go back home. the pound is fallen in value, they are worried about repaying their visas and citizenship. all the time, maybe -- many saying, it is not a problem. there are other talent polls to call upon. but i think tech talent is a number one priority for those founding businesses in the u.k.. can they get the most amid frexit uncertainty? thank you for giving us that update from london. co-owner of the tampa bay lightning broadening -- broadening into key sports. -- e-sports. decision,the fed rate we sit down with blackrock. that is this friday at 12:00 p.m. in new york. this is bloomberg. ♪ emily: korean mobile games maker search the most in two weeks in seoul. south korea's biggest, raising more than $2 billion. they spoke to bloomberg from the e3 conference in los angeles. we wanted work on a specific area we are missing. we want to invest in more ip collaboration. the marketing is very important. we want to invest in marketing technology. emily: tampa bay lightning owner and chair made a name for himself, as a hedge fund manager at fidelity. e-sports. bet is on he just joined fellow owners e-r an investment group, axiomatic. multiplayer game competitions and there are investors like magic johnson and tony robbins. we spoke about the potential for the industry. >> it is a very young industry and rapidly growing industry. you cannot beat the revenues of the game publishers, who are in very good shape within the industry. of are talking many billions dollars. there are also opportunities and sponsorship, buying elements during the games, media, etc.. it is approaching $1 billion or more. if you look at the amount of money for the -- that is 300 people worldwide. about three dollars per participant in e-sports. nhlou look at an nfl, nba, fan, it is 10 times as much. that level,et to but there are upside in terms of generating revenue in the industry. fan,u are a massive sports owner of the santa fe lightning hockey team. i am wondering, are you concerned this kind of sporting event and watching of other people playing sports is a little like what guitar hero is to playing guitar? it is cannibalizing the real thing? >> no, i am not concerned about that. if you look at the typical e-sports player or e-sports visitor or watcher, a different profile then you see in traditional sports. the world haset not been tapping into previously. when we do our research on these people, we are talking about a demographic that is right where you want to be in terms -- college 70% male, educated, above average income. a great demographic. and of these millennials younger had not been traditional sports followers. we think both have great looks. sports is fantastic, one of the few places these days when you can make communities and show it on tv and other media live. that does not exist anywhere else. e-sports, you talk to those involved, this thing has legs and it is going places. in a huge number of countries worldwide, this is another thing about e-sports, it is a big industry already. axiomatic and the ceo of mattel, you know things about selling games and toys to young people. how many franchises do you think this market can take? >> thank you for mentioning bruce stein, the ceo of axiomatic, a talented gentleman on board. entertainment,he video games industry. in terms of franchises, it is not that simple. there are a number of games, league of legends one of the most popular worldwide right now. there in the process of franchising in the u.s. other games like overwatches doing the same. this is early in the e-sports space. we believe between owners and all our different skills, we will be able to play in the entire ecosystem of these sports. beingnly, through teams, a member of the league's -- leagues, it is media, sponsorships, fans. this is a wide-open field. we think axiomatic is positioned to take advantage of all aspects of this. emily: that was the owner of the tampa lightning, coexecutive chair at axiomatic. that does it for this edition of "bloomberg technology." all episodes are live streaming on twitter. that is all for now. this is bloomberg. ♪ >> the following is a paid program. the views expressed do not represent those of bloomberg lp, its affiliates, or its employees. >> the following is an important paid program about humana papers government drug plans. there are many reasons why you could be eligible to enroll right now. call to see if you qualify. your medicare, your decision, the program that guides you through the medicare options available from humana. there are many different medicare choices available today, but are you sure you have the right medicare plan? are you with the right company?

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