underpricing risk with everything going on in the world, not just this. things in europe and elsewhere in the middle east. i would continue to be bracing for what i would have expected by now to be a lot more volatility. looking at what is going on i , would be surprised if it continues to be the case for an extended period of time. emily: how about in the private markets? >> it has been the case recently that these very late stage private market valuations of company staying private for 6, 7, 8, 10 years now and of being -- end up being much higher than when the company's debut in the public markets. that's probably going to continue to be the case in the near-term, meaning you will see companies go public in 18 and maybe early 19, whose late round private valuations were much higher than the initial public valuations. i don't see that changing anytime soon. i see continued, lots of money in the private markets chasing few deals, which drives up the price is, and when they finally see the light of day in the retail markets, it's sort of probably, rightly turns out to be they are not worth as

, emily, with the volatility word. very volatile quarter. emily: caroline, how have a job and europe compared -- asia and europe compared? caroline: asia managed to post 14% of gains in the quarter. we have g #btv if you want to get in, type in his magic letters and a number 669. in the yellow, it is how asia has outperformed. index ineck out asia's terms of technology we have not seen this long of a winning streak on a monthly basis since 1999. meanwhile, in the white line, that is how much the euro underperformed the rest of the market. we had a brutal week, the worst one we have seen since everywhere a 2016. the chipmakers, equipment makers, like nokia, underperforming. on the month it was down. on the quarter, european tech stocks were down. is it because they are one of the out performers? emily: abigail, biotech, offset some of the losses in the shang stocks. abigail: that is a good point. if it were not for the biotech sector, their best month was in june in quite some time we could have seen much bigger losses for the nasdaq, and perhaps the quarterly gains would not have bee

editor at large, thank you for breaking it down. more earnings we are watching out of europe. sap fell 1.3% in europe. it raised its revenue outlook and sales forecast and said it would buy back up to half a billion euros in stock. ubs said the higher guidance and buy back may balance disappointing margins. sap ceo bill mcdermott spoke to bloomberg earlier today. >> we have invested very heavily in two areas in the first half of the year. one is hiring the very best people at a real accelerated clip because we want to get the leverage from those hires in the back end of the year. you will see us slowing down, because we went fast. the second thing is is we , invested in the cloud. emily: coming up, elon musk's hyperloop project may have cleared a huge hurdle. we will explain next. "bloomberg technology" is live streaming on twitter. check us out weekdays at 5:00 in new york, 2:00 p.m. in san francisco. this is bloomberg. ♪ emily: shares of qualcomm fell the most in six months. the stock slid 5% in friday session. the biggest maker of chips used in mobile phones forecasting steep decl

. time will tell. we still have earnings season again. caroline: europe, we saw technology at number two. it was up on the week. asia was down for technology stocks. abigail mentioned fang. are you a buyer when we see this dip and volatility? david: keep in mind, my company is called techonomy. i'm a big believer this is the way the economy is moving. in general, i would buy on the dips, especially for great companies not going anywhere and that show every sign of consolidating more profit for them and perhaps at the cost of the rest of the economy. techonomy, technology -- technology is the future of the u.s. and global economy. it is as simple as that. caroline: abigail, you kept a close eye on the volatility we are seeing. talk us through how it is across the board in sentiment. abigail: it is pretty fantastic what is happening relative to volatility, especially volatility for tech. kevin kelly was making a big deal of the spread between the s&p 500 vix and the tech vix. we have the s&p 500 vix down and 11, near all-time lows. you made a big deal of the fact the s&p 500 vix droppe

have had to pay a $2.7 billion fine in europe because of their practices in terms of how they pointed traffic to their own products is worrisome. that is going to hit their earnings this quarter. it will not have a hugely negative impact because they are such a profitable company. but i would say that is the concern long-term. but it is long-term for all these companies. regulatory pushback as their dominance and monopoly behavior becomes more a matter of concern to governments all over the world. from the standpoint of their earnings and ability to make money, i don't see a lot of concern. emily: what about me comes to fake news and online harassment? facebook has added 3000 people to deal with it. has added what the c.e.o. calls kindness to combat that. how big of a challenge is that going forward? david: she takes these things very seriously. facebook has done an amazing job in my opinion of pivoting. zuckerberg said last year it is a crazy newspaper this is a problem on facebook to now saying yes it is a problem. we have a responsibility to the global community to do something abo

asia, going forward. emily: what about europe, caroline? it is not all rosy there. new world a new administrations. caroline: precisely. there has been an aggressive push in germany and france by uber. there was a lot of backlash. when i was living in berlin, you cannot access uber via the app. you could only use licensed taxis. this is rearing its head in russia. they are looking at whether they should only be using licensed taxis rather than normal drivers. paris, we had donald trump and macron there. are they focused on u.s. tech advances and allowing uber to survive in their countries? that is something the lights of yandex taxi will come across. together worth $3.7 billion. we saw them yandex share price spike today. havenalysts themselves seen a valuation of their taxi units. emily: meanwhile, david, the u.s. times out with names in the ceofor the potential uber job, including the ceo of youtube and a few seasons executives that are available. former yahoo! ceo marissa mayer, america,o of virgin what do you make of these names? david: i saw marissa in london the day after tra

europe, that has always been the case. i cannot think of any tech idea in europe where the company has not been profitable or had a clear path to profitability. u.s., that has not necessarily been the case. there have been a few that have managed to get out purely on growth. we have not seen that here. , have the dynamics changed? not really. growth is what people get excited by. caroline: are there any portfolio companies that are potentially ready to ipo? >> i think there are a couple of hours in that window. it is starting to get at the right price. we did an ipo in thailand. success story for us to think about for other portfolio companies. caroline: m&a not the only route to exit. there's also ipo. are we seeing others wanting to get into startups? >> i think the start of -- startup -- softbank fund is a good indication. caroline: does that worry you? >> they are out of our range. they want to invest $500 million. our maximum is $15 million. they are not short of ambition. they're willing to take out the biggest public tech company in the u.k. that is an interesting strategic

were small. in europe, our biggest customer, booking.com, nobody had ever heard of it. we are used to undercutting bigger people. i am aware of people much smaller than us who are coming up quickly. that's why we are spending so much time, energy, and money building out our own home, apartments, and product. we have over 700,000 properties on our system. people aren't as aware in america about this, but we will actively make that happen. i believe that being able to see both that type of home apartment and hotels in the same search -- i'm going to iceland with my family next month. when i looked, i wasn't sure what i wanted. people, do we want an apartment or hotel? i looked online, it was instantly bookable. a lot of people do this but it is not instantly bookable. 100% of our stuff is instantly bookable. when i press, i'm done. our goal is to get rid of the friction. emily: when you say you will actively make that happen, what does it mean? >> it means we have people out there getting more inventory. over 700,000 properties. we want a lot more of every type. it means making sure som

on in the world, not just this. things going on in europe and elsewhere in the middle east. i guess i would continue to be bracing for what i would have expected by now to be more volatility. volatility has been at record lows recently. just sort of looking at what is going on would be surprising , that continues to be the case for an extended amount of time. emily: what about the private markets? what do you see happening? dick: it has been the case recently that these very late stage private market valuations, companies are staying private for 6, 7, 8, 9, 10 years now. it ends up being significantly higher than when they debut in the public markets. that's probably going to continue to be the case in the near term. meaning that you will see 2018 ors go public in 2019 whose price of valuations were much higher than their public valuations. i don't see that changing anytime soon. i see continued lots of money in , the private markets chasing few deals, which drives up the prices. when these things finally see the light of day in the retail market, it's sort of probably rightly turns

to keep adding more and more international markets over time. caroline: europe, done. you've got u.s. on the agenda. what about asia? would you look to her further abroad? samir: well, we are not quite done with europe yet. i think we are in three markets. there are many more that we would like to go to. but what we've found with our business model is it does work regardless of the market. we want funding circle to be the first choice for small businesses globally, wherever they are, when they want to access finances to expand and grow. i think we've got a little bit more work to do in europe before we start looking to other markets. caroline: how has, of course, the ever ongoing brexit debate affected you? has it affected lending on funding circle? has it affected the investor base or the business looking for small loans? samir: when brexit happened, we were concerned, to put it mildly. it was a big dislocation event. we didn't really know how people would react. what we came out and said to our small business customers and the wider market, we are very much open for business. we st

things of that nature and what is happening in europe. are these companies getting to bake? too big?g -- that does add another element. tooline: it is a good time invest in the market when you see evaluations coming down? always been that is the case with technology is you have it inflated from the public markets. uber and the like have state private first long as they have. you can be insulated from what is happening in the public markets. at least from what i do, in the early stages of investing, and other stage investors were largely inflated from what is happening. what we care about our am opportunities and how much cash these companies have to acquire smaller companies coming through the pipeline. caroline: does that bode well? eileen: yes it does. look at how much cash outside of the united states for investors in london and europe, outside the united states. not beencash has repatriated yet they can be used for m&a. caroline: james, what about the outlook and what isn't happening and what is coming out of the market for the hope for tax changes to be happening anytime soon?

prime video into europe. amazon had already said they would add 5000 jobs in the u.k. they are not alone. from google, they are said to add 3000 by 2020. we heard from facebook, snap, apple, all of them pledging allegiance to the u.k. when we heard of brexit. quite the reverse when you look at the banking where you have worries, predictions of 10,000 jobs going in banking and 20,000 going in financials. amazon says they are very optimistic. they say brexit won't impede hiring talent. i have been on a rooftop near here with the so-called future 50, a celebration of the 50 fastest growing companies in the u.k. in the tech sector. speaking to those founders, they say that they are worried about getting talent. how can i persuade a developer in portugal or spain to come over to the u.k. when i don't have any certainty of what they will be offered in terms of the exit from the e.u.? i don't know any certainty of how they can be employed here. it is hitting smaller companies, if not the big tech giants. emily: also, there's cash going in opposite direction across the pond from the u.k. t

to solve that same problem. caroline: all eyes on hellofresh in europe, owned in large part by rocket internet. thank you, cory johnson. coming up, tesla adds two new executives to its board. this after months of pressure from investors. we will break down the decision next. this is bloomberg. ♪ caroline: tesla shares falling as much as 4% in monday's session after a man initially claimed his vehicle suddenly accelerated after he engaged the cars of driver assistant system and crashed into a marsh. despite the day's decline, is has rallied on anticipation of starting production. elon musk in fact queried if it had gone too far over the weekend. it added two new executives today. the c.e.o. of 21st century fox and the chair of johnson publishing will join tesla's board. joining us is david welch from detroit. plenty to digest. let's do the new board members first. this comes after plenty of pressure from investors. i think we are having technical difficulties with david. david, can you hear me? >> i can hear you now. caroline: let's talk about the board members first. plenty o

: let's talk about soundcloud, a force in europe. spotify was at one point eyeing soundcloud. what is going on? >> another desperate attempt, it would seem. growths such a beacon of and a standup performer in europe. in berlin, i used to talk a lot, they had real problems. they have been closing offices in london and san francisco. they had to axe 40% of their workforce and they are looking to sell a majority stake to two privates -- private equity companies. they are close to deals with selling these two particular stakes. it would hand over control of would notablyt it give them some cash to keep funding themselves. this is still a company that is loved by independent musicians in particular. they have 175 million unique users per month. compare that is spotify that has 140 million. -- compare that to spotify that has 140 million. a lot of people love the content soundcloud brings. -- never been able to monetize it or charge for subscriptions. they haven't gotten off the ground enough to make money. it now seems like another area they are trying to push into keep themselves approach

have competition coming from volvo in europe and volkswagen in germany, it really does need to start showing it can make these mass-market vehicles quickly and without reducing quality. emily: on the other hand, he has downplayed some features of the model 3. what do you make of it? caroline: i think it is interesting and trying to set it apart from the more luxurious versions. that has been this worry perhaps they are plateauing. he did not want people to think the model 3 are as good as these luxurious models. he was them to realize the model 3 reflects the $35,000 price point. he is trying to make his life easier. he does not want to see the same problems they had with the model when that rolled off and you had problems with misaligned body panels, the wing doors opening like a bird. all of these things did mean model x did not get the best writeup even though now it is the fourth biggest selling s.u.v. in the united states. they want to make it kind of simple so they can make themselves reach key targets. emily: we have to talk about demand in china. bloomberg intelligence pointe

started in 1999 and grew up to be the most leading site in europe. it was the dominant. we were in 10 countries. -- we were in seven out of 10 countries. we were the leading cost comparison site. we are well-known in the u.k. then, google basically decided around 2005 that these vertical search players, these rice comparison sites were a threat. they started to figure out how they were going to take us on. what they decided to do was they were going to go to merchants and say to them give us your fee, we will send you traffic for free. at first we weren't worried. as soon as algorithms hit in 2011, our traffic fell off a cliff. >> by how much? >> since we have lost 95% of 2011, traffic that came from google. we are not the only ones. i don't know of a single price comparison site that has been smashed to the tune of 90% or 95% or at least 60% or 70%. they are not just talking about european price comparison sites . we are talking about american companies. caroline: when you hear the allegation that the e.u. is being too tough on the u.s. giants, what the you say? richard: absolutely r

. paymente the first processor in the u.k. in 1994. also have a very global presence in europe and in asia. -- which has been under attack against more online players. companies, the , which is very-- much playing on the same footprint- a global -- thatring a channel is been very important to us. interesting that this is the key move. what about other -- jpmorgan was looking in but perhaps backed away. >> there have been a number of acquisitions over the last few years. we have seen the traditional companies. one, they have more exposure to e-commerce. course, the deal today for nearly $10 million. what is at play here, too, that is not forget the very specific action that amazon took and going after whole foods. shares dropped in that acquisition. used -- to process their payments. up 4%. the shares drop amazon says, where going to stick with our existing payment structure. space is quite a live here and you can see, with , but also the notion that the , e-commerce companies are already kingmakers. kingmaker -- caroline: amazon the kingmaker. what about the companies you have in your

from behind when we started out. we were small. in europe, our biggest subsidiary, booking.com, no one had ever heard of it. we are used to undercutting bigger people, so i'm aware of people smaller than us. who are coming up quickly and saying, what are they doing? that is why we are spending so much time, energy and money building on our own home, apartments and villa products. we have over 700,000 properties like that in our system. people are not as aware in america about this, but we are going to actively make that happen because i believe being able to see both, that type of home, apartment, hotel, and villa in the same search. i'm going to iceland my family. when i looked, i wasn't sure if i wanted an apartment or a hotel. on the booking.com site, i saw all of it and they were all bookable. a lot of other people who do this home stuff, it is not instantly bookable sometimes. 100% of ours is instantly bookable. when i press, i'm done. i am like, a message goes off, maybe it will come back in 48 hours, that's annoying. that's friction. our goal is to get rid of that friction.

contracts in europe and in asia, and we are going to develop also our technology in the u.s. the goal before the end of the year is to unveil several contracts around the world with content and service providers embedding our technology. the second step is to do the --e step in automat automotive domain, and be able to announce the first contract by the end of the year with a carmaker. caroline: you are a company that was one of the biggest fundraising rounds in europe last year, 100 million euros that you raised. what are you looking to do with this particular funding? is it also about building your own brand, or is it helping foster the new partnership? >> both. in fact, our technology -- we are developing our technology and we need firms to invest more and more in our technology to make it more affordable. it's what we are doing with sky, for example. in another way, we are going to open new stores as we are doing in, for example, new york city. we are opening -- we are going to open stores in the u.s. in san francisco in the coming weeks or in asia, as we did last week with two ne

kingmakers, none more so than amazon. caroline: it's interesting, we saw another deal in europe, a danish company saying it was being eyed up by americans. what about the company having your port folio, good m&a be the exit route? >> we would like for this to see potential in be as big as it can be. we feel europe can build these $10 billion companies that can stand alone. they can become public ipo at some point. some of them have a technological advantage. they have a very large footprint. they don't need a backer to go all the way. that has been the pitch from the get-go. that is very much what we're focusing on. caroline: that was cory johnson and martin. facebook could be the next target for antitrust watchdogs. germany is examining whether facebook is taking advantage of its popularity by pushing users into agreements they might not understand. we discussed what is next for european regulators. >> privacy is more important in europe to regulators. there are more rules and regulations in that region than in the u.s. this combines antitrust and privacy in the one charge here. t

player blippar. it is one of your's so-called -- europe's so-called unicorns with the valuation of more than $1 billion. the company is known for its visual discovery apps which boast 65 million active users. it recently launched a facial recognition feature which claims accuracy.e than 95% i recently caught up with the c.o.o., danny lopez, in london. aboutted about asking application for the latest feature. >> it is fun, social. we want people to play around with it and learn from the experience. the key for us is the accuracy of the recognition. ar facial recognition has 99.67 percent accuracy rate. when it is working well, you can take that and use it in a host of sectors. think global banking with facial recognition as a way to transact, building access where there is a camera lens that recognizes you as an employee. ,o many smart networking things trying to for your out who might be relevant to you, having the ability to scan a photograph and get that information is exciting. caroline: security issues or worries about that as well in terms of being able to scan a picture and know t

significant competition. i think they will still try to make a major play there. europe, most of south america, uber is strong. they can streamline business and it is not necessarily a defeat. but, we have come a long way from the early sentiment this could be a globe spanning platform. clearly it is not. also putftbank has money behind the indian competitor ola. what do you make of softbank supporting the anti-uber alliance? >> masayoshi son has a lot of conviction in this category and a commitment to online payments. softbank may be interested in taking a stake in uber buying shares from investors and investing more money into uber. softbank has denied that publicly. we think there is still something to it. watch this you've all. evolve. we could have a global peace treaty where all these companies take an ownership stake in each other and we reduce the level of competition causing them to lose money. emily: softbank potentially taking shares of uber because investors seem to want to liquidate stock. is that because they want to cash out or they are losing faith in the company? >> i

have a global presence in europe and in asia. i think that's part of the story that is attractive to vantiv, which has been mostly focused on more traditional, brick and mortar retailers, which have been under attack against online players. it is a trend we have seen in some of our companies, the main one being a company based in holland, but with a very global footprint, which is very much playing on the same strengths of a new infrastructure stack, a global footprint, and offering an omnichannel offering. i think that's been very important. caroline: cory, interesting that this is the key move. what about other m&a in this sector? it has been hot. interestingly, it wasn't the only suitor to begin with. jpmorgan was looking in, but perhaps backed away. cory: there have been a number of acquisitions in this area over the last few years, where you've seen the traditional companies that have had such great business want to have more exposure to e-commerce. you saw heartland payment acquired. you saw the deal today for nearly $10 billion. there is a play here. let's not forget the very

and bragging rights of europe's leading tech hub. are pumping billions into london's technology sector despite brexit. in battle -- the co-founder resignation and downward spiral or the chinese tycoon's plea for more time to reap high and his focused on electric cars. to our lead. a major reshuffling going on at microsoft. the tech giant confirmed it is cutting thousands of jobs. the number of jobs ranges from 3000-5 thousand and most of those jobs in sales and outside the u.s. that is out of the companies 000 person workforce are the move is part of the company's reorganization to better focus on cap -- selling close suffer. allokesperson told us "like companies, we evaluate our business on a regular basis. this can result in increased investment in some places and from time to time redeployment in others joining us now to discuss is cory johnson in san francisco. i'mlondon, frederick who pleased to stay is staying with me the entire hour. cory, bring us up to speed. there is a focus going on in terms of the cloud and a.i., and the memo that bloomberg saw on monday seems to say

the biggest tech portfolios out there in europe. isn't all about the graduation of payments? >> that's a big part of the story. global payment processing there is a big market and it's growing fast as we go from cash to card and online. the story is very much a part of that move. 40% of transactions are online, it's very much part of the dna. they have a very big global presence in asia. that is part of the story. ntiv had beena focused on more traditional brick-and-mortar. that had been under attack under more online. one way to do that is to have the main one being commodity -- the main one, being a company based in holland. it is very much playing on the same strengths of a new global footprint and offering an omni channel offering online. that has been very important to us. caroline: it's interesting that this is the key move and we are hearing of a portfolio company, what about other m&a? interestingly, it wasn't the only suture to begin with. suitor to begin with. jpmorgan was looking at it. cory: there have been a number of acquisitions in this area over the last few