tv Bloomberg Technology Bloomberg June 12, 2017 11:00pm-12:01am EDT
alisa: i am alisa parenti from washington and you are watching "bloomberg technology." president trump today held his first full cabinet meeting in the white house with various members offering praise to mr. trump and his legislative agenda. the president listed trade deals completed during his recent international trip. "the wall street journal" reports they do not have tapes that may have been recorded with former f.b.i. director james comey. the white house says the president would address the possibility the tapes exist when he is ready. the administration's revised travel ban has been blocked by a second federal appeals court. the ninth ciruit in san francisco backed up the previous ruling that the president's
executive order targeting majority muslim countries discriminated on the basis of religion. jeff sessions will testify publicly to the senate intelligence panel tomorrow. the attorney general will answer questions about his role in the firing of former f.b.i. director james comey. sessions requested a public event. bloomberg will have live coverage of mr. sessions' testimony beginning tomorrow at 2:30 wall street time. this is bloomberg. ♪ global news 24 hours a day powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. this is bloomberg. ♪
caroline: i am caroline hyde. this is "bloomberg technology" from london. coming up, the tech selloff goes global. investors blaming the sector's biggest names. we will analyze every turn of the worst two days contact this in tech this year. uber ousts its head of business. we have the inside track on the surprise exit. the mayor of london joins us at the launch of london tech week for a bloomberg exclusive. first to our lead, stocks follow continue to fall around the globe led lower by tech shares. in europe, the tech index had the biggest decline in almost a year since june 27 of 2016. the slide continued in the united states. some of the largest firms posted the biggest declines, including apple, netflix, and alphabet. now oliver renick joins us from
new york. we will have a bit of a chart off. i'm going to bring you my first one. i am digging into the terminal. the audience can do it, # 9317. i am looking at the slump in european stocks, down 3.6%. i'm looking at the slump in the u.s. nasdaq in the blue line. we have seen the biggest two-day selloff, $230 billion of market value wiped off. down 2.3% asia is being hit as , well. big players, apple, netflix. , this seems toou be worldwide. oliver it is not pretty. : when you look at what happened overnight, europe came into the u.s. today. we saw a repeat of what happened friday. selling parrot off as the day went on, but ultimately what happened is it is not just about technology or the fundamentals of these companies.
it may not even be about that at all. i think it is about a reversal that is unique given how far some of these companies have gone in the past six months. really, we had a first reversal in the equity market at the beginning of the year when the trump trade's stopped. then we saw investors looking to growth. we saw investors looking for momentum. companies had been doing well and built up momentum over the past six months. now that trade unwound. it is not pretty, because it is taking down tech companies that had done very well over the past six months. it is investing in strategies more than companies specifically. that is breaking down a little bit. caroline: it is fascinating as to why the unwind starts here. morgan stanley saying they have further to go. i'm interested as to whether could see not just a correction , but a full on bear market. this seems to be what is
signaled in my next chart. # 6423. this shows how far we came before this turnaround. technology stocks close to 50% reaching 52-week highs. that is one year highs. we have not seen that since 1995 and 1997. what happened after those two years? down 20%. are we about to see a bear market? >> i love that chart. i like it because that signals what has happened and to what degree. as you point out, those 52-week highs, it is nice when it is working and painful when it does not. in the tech sector in particular, it has not happened many times before. in fact, there are a lot of things that have not happened
since the dot-com era. however, the counterpoint would be that even though some signals look for me year, when we take it back to worst times, ultimately the fundamental picture is different and valuations are below where they were. there was not a lot of fundamental backing to the selloff. apple had come out and said we don't see demand for iphones or our products. amd said something similar. that was not the case. it was a few things that coalesced into this moment in which people looked at the type of thematic investing they have been doing and said it does not make sense. if we jump into my terminal, i will kick it off with my chart. this one is breaking down the losses. in white, semiconductors. blue, the growth index for the russell 1000. if we look in the gray, momentum. the orange is straight up tech. that is telling us the specific
selloff that happen, semiconductors hardest hit. you can see where tech got hit. you can see the strategy-based investment, the momentum and growth badly hurt. what is most interesting is the fact at the end of the day the s&p 500 only down about 20. for alls entire time those people fretting about concentration within the equity market, fretting about the fangs stocks, at the end, they got hit hard today. the market has been able to shrug it off. i think that is important of some underlying strength. caroline: we will see if earnings building up whether they managed to be a supporting factor going into the next quarter. brilliant reporting, oliver renick. thank you for breaking it down for us. now, a big announcement ahead at the e3 gaming conference kicking off tuesday. microsoft is targeting hard-core gamers with the new version of the xbox. the company calls the x locks
xbox one x its smallest and most powerful ever. it is designed to work with a new generation of tv sets as well as with games that offer more realistic scenes. we will be live at the e3 conference with take two ceo and the nintendo america president wednesday at 5:00 in new york, 2:00 in san francisco, and 10:00 p.m. in london. coming up, uber ousts its senior vice president for business. kalanick, that is his closest confidant. where uber can go from here. later in the show, our exclusive conversation with the london mayor on keeping innovation growing in the u.k. capital and his relationship with president trump. this is bloomberg. ♪ moment theresa may decided to invite donald trump,
caroline: after years of watching silicon valley innovate, wall street is ready to unveil its own answer. more than 30 banks are teaming up to form a new peer-to-peer lending service that will soon be offered to about 86 million mobile banking customers. it has competitors like apple pay. meanwhile, uber has decided to part ways with the head of
business, emil michael, after internal probes revealed a series of misdeeds. the embattled ride-hailing giant held a six-hour board meeting to discuss a variety of issues, including workplace harassment and even a possible leave of absence for travis kalanick. bloomberg technology's eric eric newcomer, welcome to both of you. first of all, give us the lowdown. this follows eric holder's report into the series of scandals. is emil michael leaving a big deal? >> it is a huge deal. this is travis' top confidant, a great friend of his, and sort of the guy that helped the company raise more than $10 million in
a deal with dd in china, and make partnerships with automakers like daimler. the hugely important executive who has been a central figure in many of uber's scandals. it is a big deal the board came to this decision. overall, things at uber are crazy right now with this report supposed to drop tomorrow. caroline: crazy indeed. meanwhile, it seems emil michael is fighting, saying he blames the board of directors and the legal team. talk us through as your expertise focuses on corporate governance, is this the right step to be taking? should they be pushing for travis kalanick to be taking a leave of absence? >> i think the personal issues travis has been facing have been significant for him. it may be a good time for him to step back. unfortunately now though with the leaving of his right-hand man, you have several open positions. for these positions to remain
open while he is taking a leave of absence would leave management in a little bit of turmoil because there would be nobody steering the ship at the time. caroline: talk about these independent board members being called for by the eric holder report. it feels as though perhaps they are too hard to fill at the moment, getting more people into the board. how independent is the board compared to other companies? we know a lot of founders and company leaders have a lot of control when it comes to the board level. >> correct. the dual structure for control of the company has been around since the 1920's. but it has recently become more prevalent at technology firms, especially out in silicon valley. the way the dual structure works is you have two different classes of stocks, and one class of stock has significant voting rights, more than the other. perhaps the other has none. in the case of uber uber's class , b voting shares have a voting
right of 10 to one. the class a common shares into which most of the preferred stock converts only have a 1-1 share vote. this gives significant power to those who hold the class b common shares. the person holding class b common shares are the managers, travis, and those who were founders of the company when the company began. caroline: eric, you said this is a crazy time at uber. we are hearing what could happen if they are asked to have more independent board members. what about this potential to see travis kalanick to step aside? we know he is under personal pressure. the poor man just lost his mother. >> the funeral was on friday in los angeles. so it has been a really hard time for him. everything we have seen puts the decision to take a leave of absence on his shoulders. he would need to decide himself.
the big question is who would lead the company. we have reported there could be a management committee of top but there is not a key person that could take over. there is no chief operating officer, no chief financial officer. they do not have a clear number two to take the reins. caroline: when you are advising clients you represent, when we see such a company gearing up potentially in the foreseeable future for some sort of ipo, how crucial is it to ensure we have clear corporate governance? that you have a cleaner than cleaner, whiter than white company? how much does uber need to do? >> there have been roads paved by google facebook, etc., , regarding the dual corporate structure. this is not unusual. investors have seen it before. however, when you are guiding a company as to what to do, you want to make sure everything is
fair and equitable and to keep the concerns of the shareholders in mind. so with respect to uber, what you would want to see is more independent directors join the board. all the directors have fiduciary duty or's to the shareholders and must act in the best interest of the shareholders. moreu add more and independent directors, the actions of the board become more focused on actions that benefit the company as a whole. that is not to say the founders acting with these class b common shares are not acting in the best interests of the company. in fact, the argument has always been that allowing the founders to maintain control over the company will allow the company to continue with its vision and push forward on the business plan, which is the basis for why everyone has invested in the company in the first place. it is a very delicate balance. having more independent board members on the board is a very important step. caroline: we will see how that
continues to unfold as we get more news of the eric holder report. eric newcomer has been following this story for us. nanette heide, thank you. now coming up, thousands of tech professionals are gathering in london for the launch of london technology week. the major hurdles facing the sector in the u.k. capital. that is next. and a feature i would like to bring to your attention is our new interactive tv function. you can find it at tv and watch us live. you can send our produces a message, play along with the charts on air. this is for bloomberg subscribers only. check it out at tv . this is bloomberg. ♪
introduced communications for engagement act. the legislation has the same acronym as an infamous twitter typo sent by president trump seeks to classify presidential media posts as presidential records. it would prevent a president from deleting tweets or other social media postings. it is not the first time the representative has taken aim at president trump. in march, he introduced another act also known as the mar-a-lago, a nod to the president's private club retreat in florida. you have to laugh sometimes. london technology week has officially kicked off. the tech extravaganza is touted as europe's largest showcase for technology. since its launch in 2014, it has included more than 700 events and welcomed delegations from around the world. joining us to discuss is someone
who is no stranger to the local scene. shaw.is ross schal he was the chairman of the marketing group and vice president and general manager of skype. we know each other well. it is great to have you here. it is one of the founders of tech week. talk about how important it is to ensure we are showing ourselves off that technology in london as a hub still exists and gets talent. >> london tech continues to go from strength to strength in terms of investment, talents, and startups being created. we are also in an uncertain climate after the election and upcoming brexit negotiations at the top of the agenda. a week for celebrations.
excited to kick it off today. but some challenges we have to address. caroline: talk about the survey you ran after the election and the key concern is getting talent into london. >> that's right. the day after the general election, we asked a lot of questions around the conservative party's position on immigration talent, third hardy party sponsorship for visas. the sentiment from the community is strongly against the anti-immigration approach, wanting to make sure we get access to skilled migrants , whether from the e.u. or beyond. i think a real wake-up call. i think we had 75% saying they are unhappy with the current policies and they need to change. caroline: fascinating, the is the same sort of theory we are hearing from the mayor of london, what it means for london . just a note, there are 4000 applicants now? >> we are about to hit 5000
u.k., and 50e countries around the world. caroline: what about the question of capital in london. having come back from silicon valley, that is often labeled a slightly less bigger pace in london. yes, you have the innovation. yes, you have cool startups, but you don't have the foundation of cash. they have to go to the u.s. for money. is that changing? >> i think it is. last month, i had a showcase. we brought together angels, private equity funds to talk about the state of london tech in terms of investing. where is this going with article 50 being triggered? i think there was cautious optimism. we don't want to compare ourselves to silicon valley. they have been at it for decades. we are five or six years into it. we are seeing funds being raised. brent hoberman announced a $60 million fund.
the money is there. the big tech companies are investing. look, it is still a challenge to raise money where you are and whatever stage you are in, but the money is there in london. if you have a great business and a good model and you are a strong leader, it should not be difficult to get that money. caroline: i spoke to the c.e.o. of improbable today who managed to secure $500 million from softbank. he has headquarters in london. yes, he has branches in san francisco, but he's not moving anytime soon. there is still the viewpoint that when you are an entrepreneur that if you really want to make it, go to silicon valley. remove your headquarters. do you think that still is the viewpoint of entrepreneurs? >> i think some still have that viewpoint, but i think it is starting to change. why is that starting to change? i have seen big exits from london. i think the message coming back is five or six years ago, you
had to go to silicon valley if you wanted to have a good exit. but not anymore. i think that is an encouraging signal. we have also seen a couple of unicorns fail spectacularly. yet london is still on track in terms of the investment, the capital, and vibrancy of the community you saw this morning. caroline: you will be sticking with us. thank you for digging into all of the london tech scene for us. he is going to be discussing more with us about the tech scene. of course, london tech week does not stop here. our exclusive conversation with mayor khan is coming up later this hour. coming up, just five names account for nearly 75% of the drop in the nasdaq of a last few days. we will discuss if it is time to change the outlook for big cap tech after huge gains. if you like bloomberg news, check us out on the radio. the bloomberg on radio app, bloomberg.com, and on
>> it is 11:29 in hong kong. i am paul allen with the latest first word news. china u.s.ium on relations says president trump has been weakened on the international stage while the status of his chinese counterpart is growing. said the u.s. is "mired in a political crisis that could have far-reaching implications." ambassadors that u.s. withdrawal from international agreements has listed xi jinping's image. trump's proposed travel ban has been defeated in the second appeal as the supreme
court considers whether to take b or the court of appeals in san francisco said the president exceeded his authority by suspending nationals from mostly muslim countries without showing how letting his people in hurts america's interests. the white house is confident the supreme court will uphold the ban. jeffrey immelt stepping down as chief executive of general electric ending a 10 year in which he dramatically reshape the company, but failed to win over wall street. johnll be replaced by flannery, who oversaw a jump in profits at ge's health care unit. the stock soared in more than 18 months after the announcement was made. cane have a track record we be proud of, a window in which we can be better, build on our strengths, make sure we are known as an execution company that can deliver for all constituents, including customers, employees, and shareholders.
the employees, we are the vehicle to get there. >> global news 24 hours a day powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. mark: a check on the asian markets recovering from the tech tumble with focus is shifting to central-bank decisions this week. gold dropping to the lowest in a week as a fed rate hike looms. the kospi and topix joining the regional recovery. addingnzhen benchmark 1%. in the commodities space, ace metals drifting lower as china tries to limit, giving a lift to chinese auto stocks. proppedghai composite
up by miners, but banking stocks falling with the advisor to the banking regulator saying several banks may be wound down as china looks at shadow banking in greater detail. sands china and galaxy entertainment are leading that sector higher. ♪ caroline: this is "bloomberg technology" from london. i am caroline hyde. let's return to our top story, the selloff of tech stocks. at the heart of the selloff is pressure on big cap tech stocks that have previously seen massive gains in the market this year. mark mahaney is an analyst at rbc and covers some of the biggest tech firms, including facebook, alphabet, and netflix. he joins us now from new york. always great to have you on the show. i'm looking at a note you put out on may 18 saying valuations are more robust, saying having climbed from 15 to 17 times they
are more robust. do you stand by that? >> yeah. as you pointed out, we have had a major rally in the sector, large cap consumer tech, not including apple, microsoft, and tesla. other names have participated in this rally. the big internet four, the stocks are up 20% year to date. -- 30% year to date on average. what has also happened is earnings estimates have risen so the multiples have not been that egregious. they have ramped, but not dramatically. if you step back, i know the stocks are up a lot, they came up from the trump trade off. you and i talked about this at the beginning of the year. these stocks traded off a hefty 5% to 10% last year on the trump election. so there was a little bit of a false floor. the rally may not be as strong as it appears to have been. caroline: ok. do you think the likes of morgan
stanley saying that this falloff has further to go? should we expect more losses? >> i don't think we have had a fundamental catalyst that has taken the sector down. we have not had new regulatory risk to the sector. we have not seen competitive shifts. we are seeing portfolio positioning. yes, that can take the sector down further. my point is if you look at the valuations for some of these names, you still have facebook and google trading at 24 times earnings for what are secular, almost unrivaled growth. facebook is doing close to 50% earnings growth. google has done consistently 20% earnings growth for seven years. i think valuations are still relatively reasonable. none of these are dramatic entry points. if the selloff continues, we could have dramatic opportunities. they are not there yet. caroline: fascinating. i'm looking at some of the current coverage. you have outperform on amazon. you see it going to you have $1100. outperform on facebook. you are calling it at $185.
google, alphabet could hit as high as $1050. i want to focus on netflix. i have analyst recommendations up on the bloomberg for netflix. i am still seeing a resolute sea of green. most analysts are saying to buy the stock. only three are saying to sell. you see a sudden falling down in the price, but the price target remains above it at just above $160. do we see analysts starting to recalibrate? do you think there needs to be more substantial catalysts for why we are seeing the selloff rather than profit taking? >> i don't know. i have followed this for almost 20 years. there is a herd mentality. i have participated in that from time to time. i try not to. there is this unfortunate reality of stock prices and targets moving up and down. they really shouldn't, but that
does happen. fundamentally, we see upside to the netflix stock. pricef these verses our targets show 20% material upside with the exception of facebook. that is the number one pick in the space. if you look at the last two days of the selloff of the major names, the stock that sold off the most is netflix. arguably there is rationale behind that. it has the least valuation floor. this doesn't trade at 20 times earnings. it is higher because the company is deep in investment mode as they expand internationally. you should expect the stocks to hold their prices the best in a tech selloff, probably facebook and google. that is what happened today. about 1% trade-offs only. the stocks with the least vibration support, netflix will trade off 3% or 4%. expect more of that in the future. caroline: the semiconductors, the chipmakers, seemed to have sparked this and then came the tech giants behind it. some of that seems to be vindicated looking at valuations of semiconductor makers.
a point made here in europe. you agree with that? have we got too heady when it comes to semis? i will steer away from that question. i apologize. i don't cover the semi sector specifically. i won't comment on this. caroline: ok, so just lastly, how are we set for the rest of the week? when do think would be the right time to start seeing real opportunity to buy? >> you do have one event in the middle of this week. the fed open market committee decision will occur at the end of the day on wednesday, 2:00 eastern time. we will know what the rate decision is. our guess is most people would not want to buy in front of that. we may very well have a continued trade-off in the most popular come in the
best-performing to date. we may have a reversal in some of those for another day or two. then we could see a bounce back as we get the uncertainty over the rate decision out of the way. the next catalyst has to be earnings. we will not get major earnings news for about a month. we could be in a position where large cap techs that have outperformed could trade sideways or trade-off modestly for the next month until we get into earnings news when we get more visibility on the rate decision. caroline: may be rich pickings come the 15th and then it is all about earnings. wonderful to have you with us. thank you very much. coming up, our exclusive interview with london mayor sadiq khan. how he expects brexit to impact the london tech scene. this is bloomberg. ♪
caroline: back to another top tech story. after a rocky few months, uber is getting ready for changes. emil michael has parted ways with the company after the board recommended his removal. to get a global perspective, you have just stepped down from being on the board of dialogue semiconductors, a big player in the german tech scene. as a man who knows the role and responsibility of board membership and corporate governance, what do you make of what is happening at uber? >> they are at a difficult time. they are starting to reach out and appoint independent directors. one from nestlé has joined the board as an independent. maybe one or two others. they will play key role in terms
of helping to steer the ship. where have the investors in? the investors have a lot of money at stake. we should not be having trip up after trip up like this if they have been working with the management team. it is a tricky time. i think they need fresh voices to come in from a board position. i know they are making key hires in the management team. francis from harvard business school is coming in. caroline: many are excited by him. >> from a strategy point of view, i think that is great. that is what the company needs. it will give a shot in the arm to the team in terms of how they get out of the situation and get on the front foot because they have been on the back foot too long. caroline: does travis kalanick have to go? >> part of me would hate to see him go because he has been there from the beginning. he talked a few months ago about getting leadership coaching after his rant was captured on video. i hope he stays around to some degree. when you lose the founder, it is
hard for the people who have been there from day one. they will be disappointed. caroline: you have been in the this sort of situation yourself when you had to fill in. >> 12 or 13 years ago, i came in as a later stage c.e.o. for a mobile messaging startup. the current c.e.o. was doing a good job, but was starting to get out of his depth in terms of strategy and growing the business. the investors wanted somebody to come in to take it to the next level. i think uber is behind the curve on that, but that is what they need to be doing. caroline: give a global perspective. are we seeing an impact in london in terms of brand? in terms of people wanting to use it? when you travel to different countries, how does it impact? >> i think uber is still held in good esteem. people use it. the brand is somewhat tarnished after the six months, whether here or in other parts of the world, probably particularly in the u.s. that can be recovered if they turn things around and do both
some bold things. a lot of people use them and love them. they are an important brand. many of us want them to do well. it is recoverable. caroline: it is recoverable. russ shaw, great to have you with us. thank you for spending so much time with us this evening. founder of tech london advocates. now, london tech week is upon us. the five-day event kicked off today. mayor sadiq khan has big plans. in a bloomberg exclusive, he told us his vision for tech innovation while addressing brexit, and of course his relationship with president trump. >> i am excited. it is the biggest london tech week ever. this is europe's largest tech festival. it shows the world that london is open to innovation and entrepreneurs. since brexit, we have had companies from facebook to google, snapchat to square, announcing record investment in our city, which shows the
confidence they have in london. london tech week will see more than 300 events across london, more than 55,000 visitors from across the globe coming to london because they recognize we are europe's tech capital. we are on the shoulders of silicon valley and new york as well there it caroline: talk about the vision you have for technology helping adopt london as a city. >> we are a small city. we have to be smarter. we have to use technology to deal with issues from transport , sustainable transport, to how we deal with the issues of climate change. the global disability hub, helping those who have issues access to transport and better jobs, better skills as a consequence of technology. the great thing about london has been our ability to attract talent, venture capitalists, and join the dots. the great thing about london tech week is we have a massive
connected business campus, the largest in europe, making sure we can help startups incubate and flourish. it is important for people around the world watching this to recognize the ecosystem we have here that will help you flourish and thrive. caroline: you are hiring new team members to drive the focus forward. >> i have learned from other great cities across the world. i have seen with new york did in the past, chicago, and others. what i have advertised for is london's first ever chief digital officer. we need a chief digital officer focused onsed, making us better connected and how we can use open data to allow the private sector to pioneer. how can we can make sure local authorities across london are more savvy with providing public services using technology which will be cheaper but also means better services for consumers. we have to learn from others.
i am a great believer in that. caroline: why do you think the concerns around brexit have not put off entrepreneurialism in london? >> three words are really important. "london is open." i don't want the world to think because we voted to leave the eu the country that we will stop being open-minded and become inward focused. the world must recognize that is not the case. london was one region in england to reload to remain in the e.u. we recognize the contribution talent makes to our city. one of the things i'm doing is negotiating with the government a different deal for london, if we can. in the meantime, my message to the world is we are open to talent, innovation, entrepreneurs. one of the reasons london is one of the greatest cities in the world is for 1000 years we have
been open to people from different backgrounds, different ideas. that is not going to change. caroline: what do you want to see for london? >> the key thing is to make sure the government recognizes we need a flexible deal. i appreciate and respect people in other parts of the country voted to leave the e.u. one of the reasons was concerns around immigration. whether it is in this interest or not, parts of the country do not want immigration. london voted to remain in the e.u. we need immigration and talent. we wanted as well. the government has to recognize london contributes hugely to our country in terms of revenue raised, in terms of economic growth. i think they want us to carry on being the success story we are. they will recognize we need to be able to attract talent. caroline: able to do that in the current political environment? >> what i am hoping is that theresa may and the cabinet will recognize the results of the general election. the country has rejected a tory extreme hard >> it. the government has rejected the form of brexit put forward by
theresa may in her manifesto. the government has to recognize that, otherwise they will have to deal the consequence. the consequences are businesses choosing to leave which is no good for the government or london. caroline: you were referencing an old adage that was david cameron's. that too many tweets make a twit. >> the polite version. caroline: what about the polite version of the relationship with donald trump? >> i am not sure of other people's priorities. my priority -- i don't have time to deal with tweets. my views on donald trump have been consistent. at the moment theresa may decide to invite donald trump on a state visit, to offer him the red carpet, i said it was wrong for a number of reasons. wrong because of his views and his muslim ban, from for him changing the long-standing policy to welcome refugees and a
whole host of policies and views that he says. i said at the time that the red carpet was not the right thing to be rolled out for for donald trump. we will wait and see what happens. caroline: that was our exclusive interview with the mayor of london. sticking with political affairs u.k. prime minister theresa may , and french president emmanuel macron plan to lead a joint crackdown on tech companies that fail to remove terrorism related content, including fines. the move means the u.k. government is considering the introduction of legislation to force internet giants such as facebook and twitter to improve monitoring extremism and hate content. tackling islamist extremism is a priority for both governments. britain's election campaign was interrupted by two deadly attacks, manchester and london, while more than 200 died in france in 2015 and 2016. now quick programming note. , a we will have full coverage
caroline: let's bring you a top story in corporate news. general electric shares fall after the company announced jeff immelt is stepping down as c.e.o. amidst activist pressure. he will be replaced by john flannery, ending his tenure in which he reshaped the powerhouse. during a facebook like chat today, flannery encouraged his staff to finish what his successor started. >> we have a track record we can be proud of. we have a window in the future where we will be even better. we have to build on our strengths. we have to make sure we are known as an execution company
and deliver for all constituents, including customers and employees and especially shareholders. they own the company at the end of the day. and the employees, we are the vehicle to get there. caroline: last month, we spoke to the cfo of ge who will become the vice chairman of the company. here is what he had to say about g.e. overall. >> we are a global company. we serve global customers. we have a global workforce. that is the company we are and that is the company we are going to run. caroline: meantime, mcdonald's is looking for summer help through "snap-plications." the company will use snapchat to to reach millennial workers tomorrow. the fast food chain has 14,000 locations in the u.s. and, amazon is considering
selling cars in the u.k., putting pressure on europe's biggest auto websites. amazon is trying to fill the gap as customers shift away from traditional dealerships. amazon has been using italy as a test market with limited sales. you can hear about rival apple's outlook for the car market as we air more of our exclusive conversation with tim cook on "bloomberg technology" this tuesday. we heard about the home pod. now we will hear tim cook's outlook for apple's move into the auto sector and growth in china. that does it for this edition of "bloomberg technology." "bloomberg technology" is live streaming on twitter. do check us out at @bloombergtechtv weekdays at 5:00 in new york, 2:00 in san francisco, 10:00 p.m. in london. that is all for now. this is bloomberg. ♪