President trump blamed the appointment of special Counsel Robert Mueller on the attorney general Jeff Sessions decision to recuse himself from the russia investigation. That, according to the New York Times. They say trump blasted sessions in the oval and said he should resign. Sessions did hand in his resignation, but trump didnt accept. Trump denied asking sessions to resign. Trump toured damage caused by Hurricane Irma in florida. He was accompanied by the Vice President mike pence first lady, melania trump. Global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. Im alisa parenti. This is bloomberg. Bloomberg technology is next. Emily im emily chang. This is bloomberg technology. Oracles cloud Growth Continues to soar. Sending firstquarter revenue through the roof. We will break down the numbers from the strongerthanexpected earnings scorecard. Plus, missed opportunity at equifax. The credit monitoring giant was fully aware of the Software Flaw exploited by hackers. We will discuss the continuing fallout and lawmakers are demanding answers. Apple could be on the verge of its biggest deal ever. We will break down its possible investment into toshibas chip unit. First, to our lead. Oracle reported firstquarter earnings showing a surge in cloud growth. It was shares in extended 1. 5 million. Trading are up just under 2 . No, half a percent, about. The Company Issued guidance of 9. 5 billion for the second quarter. Oracle is in the midst of shifting services and products to the cloud. Earlier this month, Regulatory Filings show top executives would only receive their performance options if the Cloud Business showed significant growth. Joining us now to discuss, our editor at large, cory johnson, and from new york techonomy ceo. Ceo, david kirkpatrick. What is your take on the numbers when it comes to cloud growth . Cory the executives of oracle change their bonus plan to get paid better if cloud growth goes faster. Its a good idea if its going to grow faster. Oracle has created many things, not least of which paying their executives more money than anyone else in the business. These results show very Strong Movement away from on Premise Software to the cloud. They have done the thing that is so impossible to do. They have changed the fan belt. They are doing it very well. They are accelerating on a quarter for quarter basis. Accelerating the pace. The growth of the Cloud Business is very impressive. 13 weeks, 1. 5 billion of cloud revenue, up about 80 over the previous year. Emily do they deserve their bonus . Cory i think they deserve more. They are such nice people over there. Emily david, whats your take . Oracle has been behind, lets be honest, for a long time when it comes to other more forward thinking Cloud Service providers. Is it proof that they can turn themselves around or turn in a different direction when the will is there . Ingid it must have been gall to oracle executives in the last few years when companies that were not competitors of theirs oracle has been seen as an old, stodgy, packaged software maker. It is super impressive, as corey as cory said, that they are able to be making these changes, though they have been laying the groundwork for this for a long time. Even when marc benioff left oracle and started salesforce, Larry Ellison was famously kicked off the board when he created a company that competed with salesforce. Oracle bought salesforce. With the oracle brand, the platform that ellison controlled, its really coming into its own. Netsuite acquisition was a little bit controversial because ellison is part of both companies. What is the impact of that acquisition . Cory its helping the cloud revenues grow. The netsuite is not the biggest part of the story. We will see if they tell us anything on the conference call. But you also saw, interestingly, a slight pickup in gross margins. It shows me that the investment they made in the cloud, which was really expensive, is starting to tail off a little bit. You dont just see it in r d. You see it in the cost of goods sold. The margins are gross margins. They are Getting Better. That suggests the investments are starting to roll over. Were not seeing the cost of developing this new software quite as high. Now they are starting to benefit from all of these applications that have been rewritten from the cloud. Its working. Customers like it. Its costing them less to build it. Emily does it matter that they were late to the game here . Does it matter that others have such a big head start . Cory the difference is the Fourth Quarter in football is the end of the game. These guys have shown that slow and steady is winning the race here. They have become dominant, if not the dominant company in the cloud when it comes to software. Emily yet you have other cloud providers. David, you mentioned salesforce. Amazon, google, microsoft, trying to get a piece of the cloud in a different way. Its sort of a whole new kind of race we are seeing here. David in effect, oracle has no choice but to make this transition. By conventional analysis, youd say they were late. The fact that they kept their profits up, their stock is at a high, that they are somehow managing that transition is masterfully impressive, but they really dont have a choice. They wanted to keep those extraordinary margins with them as long as they could. Its ironic that they probably dont want to move all the way to the cloud, another story we will certainly touch on in the hour is equifax. That shows there are huge risks to putting too many things into the cloud and making things more accessible. Oracles clients have wanted to have control of the data, and thats why they paid such high quality Oracle Software that sat on their servers. This company is walking a tight rope in a beautiful way. Emily david kirkpatrick, my guest host for the hour. Editor atlarge cory johnson, thank you for stopping by. To another story weve been following, President Trump says he is close to a deal with Congressional Democrats differently protect nearly one Million Immigrants brought illegally to the u. S. As children from deportation, socalled dreamers. Alex, there has been a lot of back and forth. Deal, no deal . What did happen at dinner . Where are we now . Alex we think that they are still pretty close to a deal on daca. Some sort of Legal Protection for the dreamers, as their advocates call them. Trump has spent the day kind of contradicting himself about the conditions for a deal, whether a border wall will have to be part of it or not. He said several Different Things throughout the day. At this point, it looks like they are close to a deal and the border wall will not be part of it, but trump apparently wants some kind of assurance that immigrants will obstruct the wall in the future. That democrats will not obstruct the wall in the future. I dont know how hes going to secure that. Emily what was the point of the actions he took last week if today hes willing to make a deal . Alex i dont think trump really wanted to end his program. He faced pressure from his right flank to end it. He promised to do it as a candidate. He pulled the plug on an executive order that his lawyers had been telling him probably would not withstand a Court Challenge anyway, but he wants i believe him when he says this, he wants the protections for these immigrants to be an to be enacted into law so that they cant be removed by a Court Challenge. He wants a deal on this. He also wants his wall. He is stuck with his Political Base who is very upset with him for going back on his campaign promise. Ann coulter has spent all day on twitter saying he should be impeached. Breitbart, run by steve bannon again, has been hitting trump hard on this as well. Emily just another day in the life of the trump administration. I know you will keep us posted on whether a deal is indeed struck. Coming up, google has been hit with a classaction lawsuit, alleging the tech giant is biased against women when it comes to pay and promotions. We dive into the case next. This is bloomberg. Emily bitcoin fell for a fifth straight day, the longest losing streak in more than a year after one of chinas Largest Online exchanges that it would stop handling trades by the end of the month. This is part of a wider crackdown by the Chinese Government on cryptocurrencies. Bitcoin had risen more than fourfold this year with greater acceptance of the blockchain technology. Global Political Uncertainty and increased interest in asia google has been hit with a classaction lawsuit over claims the tech giant systematically pays male employees more than women. It follows a 2015 federal labor investigation which found systemic pay discrimination among the 21,000 employees at googles headquarters. The initial stages of the review found women earn less than men in nearly every job classification. Joining us now to discuss, reporter mark bergen, and still with us, david kirkpatrick, techonomy ceo in new york. Mark its been a really rough summer for google. Three former engineers and employees at google are claiming not only that the company has paid men more than women, but that women are on a different, what they call, job ladder, trajectory to have jobs like the high paid technical engineering jobs, where they are paid more. Emily how is this different from the department of labor investigation, which said that there is a difference . Mark the lawsuit cites the department of labor lawsuit. There was evidence where the department did statistical regression and showed google has paid women less for similar roles. Googles claimed response has been, you dont have all our data and we are not giving you that for various reasons. To a lot of these claims, google has come back and said the difficulty here is that men typically go into more highpaying roles. There are more men in engineering. More men in the technical jobs that are paid better across the industry. Emily meantime, employees on their own have given some data to the New York Times that they believe shows Data Collected from colleagues shows systemic pay differences. Mark that was correct. It was a couple years ago. There was an effort internally to collect compensation data across all different google has one to 10 rankings of employees. They showed that a level five employee as a man would pay more than a level five employee as a female. Googles response to that has been that they dont have all the data. Someone who is a search engineer may be paid a lot more than someone who is just working on operations. Emily this is on course on top of longstanding issues with the number of women in tech, only 20 women in the technical, critical positions at google. On the back of the james damore memo where an engineer wrote a memo to the company saying that there are biological reasons that more men are in engineering than women. Where does this leave google right now . Mark its in a tough spot. They are being hit on both sides. There was a clear message that we need to fix the issue, bring more women into the technical world. The memo said maybe the reason we dont have more women in the technical world is because they are not as good at technical roles. There was a huge backlash against that. Google has said that because they are so big, one of the first Large Companies to reveal their hiring female and people of color on staff, that they have become more of a target than others. Emily david, whats your take on this . Google has claimed to care about women. Some of the most prominent Women Leaders in Silicon Valley got their start at google. Yet you hear these things and they dont add up. David and yet its been a small percentage. I was listening and thinking about this. Men presume that men should be in the higherpaid jobs. I think thats a generic statement that, sadly, is true. I think thats a problem that we have to kind of get over. Its great that google is being forced to confront that reality. Ironically, i think that memo almost becomes a data point on behalf of the plaintiffs in this lawsuit, because it really illustrates the mindset that prevails in large parts of the company, even if he was a slight extreme outlier for that mindset. But its also very interesting to look at how a company theres no other company like google. Maybe facebook. But google is, until recently, it could hardly do any wrong. It was like riding high. Self driving cars, pharmaceuticals, you name it. They are now on the defensive in so many areas. I dont think they are as fundamentally screwed up as a company like uber. But people feel total license to come down on these companies in a way they have not before. Senators are being asked about antitrust enforcement. This is a change in the mood big time. This is very healthy. This company and the entire Silicon Valley culture does have to change. Emily larry page has now running alphabet. Sundar pichai is running google in particular. Has there been a marked change in how this is being handled within the company . Mark certainly his management team, you see a lot more women than historically google had as their leadership. They have been addressing this in unconscious bias training. Google says that at each stage of the hiring and for promotions they have this unconscious bias. Its a really tough problem to solve. The industry in general has not solved this. Google is a standin for that. I dont think the problems are as systematic as they are at uber. I dont get a sense that there are complaints about the culture, that it is a caustic workplace. A lot of women think that google is a much better place for women. Emily mark bergen who covers google for us. David kirkpatrick, you are sticking with me. Coming up, the Equifax Breach was one of the worst in american history, but could the hackers have been stopped in their tracks . This is bloomberg. Emily equifax shares continue to take a beating. The Credit Monitoring Company revealed thursday that the hackers exploited vulnerability that could have been fixed two months before the breach. The federal trade commission has announced it will be investigating the hack. Equifax also wound up in the crosshairs of Senate Minority leader Chuck Schumer earlier thursday. Equifax, stunningly and epically, failed to perform one of its two duties as a company, to protect the information of the people in its files. Thats unacceptable, and theres no other word for it. Emily joining me now to discuss bloombergs mike riley and my guest host for the hour, techonomy ceo, david kirkpatrick. Mike, how could they not have patched this vulnerability . Isnt their main job to protect our information . Mike thats right. The Consumer Credit agencies often go around telling people before this that they basically have one job, and that is security, so they clearly failed at the job. Its a story like always that is a little bit more complicated. There was a patch out for this vulnerability. It should have been fixed, but the other side of the story is those fixes arent always easy. They are built into web apps. You have to change not just one web app, but multiple to pass these things. Its a slow process. In some really big cases of vulnerabilities, sometimes it takes months to do the complete patching job. Thats one issue. Its one thing to be able to get into a website through a vulnerability like this. Its another thing to be able to steal 143 million americans data. How did those two things connect . Its not just the first failure, but the ability to get in through the web application and get all this data. We dont know if that was hard or easy. We dont know how long it took them, in part because equifax isnt telling us. Emily do we still not know who is behind this or have an idea . Mike its a little strange. It doesnt seem like a target, where the intruders immediately tried to dump all the credit cards on forums, that they were clearly out just to make a quick buck. That doesnt seem to be the case here, which raises the possibility these actors are a little more sophisticated. That could be organized crime, the cyber version of that, or it could mean there is maybe a state hand behind us. Its criminals that got in there, but maybe there was another market for it. That attribution piece often takes a long time. Emily david, basically anyone with a credit card was probably impacted by this. Yet the response has been completely fumbled. As a consumer it almost leaves , you feeling helpless. David its going to be interesting to see how urgently they did try to patch this when they found out about it. Im pretty sure we are going to find that they didnt try to do it nearly urgently enough despite how hard it might have been. This company clearly failed in its fundamental job, which is being said widely. I think the ceo has got to go. That is the kind of thing you , cant keep your job when it happens. When your stock drops 30 , it is clearly going to go down more. For consumers, im not sure what it means for consumers. The possibility that this could be a statedirected attack is a very interesting one. There are states that are trying to essentially assemble dossiers on the American Public for unknown reasons. That has been discussed before. This could be a very effective way to add to one of those efforts. When everybodys data was stolen, i wonder how much risk each one of us actually faces about our data being misused. That i havent figured out. Theres a lot of alarmist articles saying you have to freeze your credit. I just