The chief of staff, john kelly, has not offered to resign after an abc news report said he wakeed to step down in the of the rob porter scandal. Reportedly fought to keep him on the job despite the accusations reportedly fought tp of spousal abuse. Porter resigned this week. A person familiar with the matter said in a meeting of subordinates on friday, kelly encouraged them to spread the word. Global news 24 hours a day powered by our 2700 journalists and analysts in more than 120 countries. Crumpton in new york. Bloomberg technology is next. I am cory johnson in for emily chang and this is bloomberg technology. Coming up, a volatile week in Global Equity markets come to a close. Finally and thank god u. S. Stocks gaining on the day. The big tech names were the leaders on the downside and on the upside. We will take a look. Plus, uber settles. And amazon is stepping up its o create deliver tw its own delivery business, leaving ups and fedex behind. First, what a day on wall street. Stocks finishing higher ultimately. Down in the last hour. More than 1 across the board. Tech Companies Leading some of the gains. Anyones guess for what can happen. Friday with so much volatility, it is turning out more than 1000 points today. Amazing to watch. A massive decline earlier this week. This is the biggest weekly losses of the year and going back quite a ways. Let us go to Abigail Doolittle with a look at it. On bloomberg radio, we were all watching the crazy swing in the last hour when the market went down to way up. Abigail unbelievable. The entire week is unbelievable. Today mimicking tuesday. Relative to the week. Selloffwe had the huge and on we have the markets tuesday, swinging between gains and losses in a rebound rally. Similar to today. We have a big selloff yesterday. One point near the open, major averages up more than 1 then down 2 then up down, up down. At the end it was hard to watch at the end, it was almost hard to watch. It was like watching tennis. What way will it go . The end of the day, the buyers did take it and frenzied buying action. Buy the dip, if you will or the fomo, fear of missing out. It is a nice way for investors to end a wild week but interestingly, cory, when you take look at the technicals, a lot of the major averages look vulnerable to the downside, considering their below important moving averages. The 50 and 100. The s p 500 hit the 200 moving day average. That tells you sellers are lurking. Itll be interesting to see how it plays out next week. Cory i know how you love your technicals. Yesterday, there was a really decided bounce when that happens. Abigail there was a bounce but it was interesting. I will show a chart i have been showing all day of the s p 500 relative to its 200day moving average. This is the nasdaq relative to its 200day moving average. The work to the downside is ahead for the major averages. In fact, the russell 2000 is moving definitively. Cory what is at the bottom . Abigail this is pretty interesting. It is actually the spread between the nasdaq 100 and its 200day moving average brady moving average. It goes all the way back to 2011. If you recall the big rally out of week 2 from 2010 into 2011, at that point the nasdaq 100 was about 18 above its 200day moving average. Very overbought. In august and september of 2011, we had a big correction dipping back down. Similar situation here. Not so long ago we were 60 above the 200day moving , now getting closer to the 200day moving average about 4 above. If we do anything similar to 2011 are any corrective time periods, it could be overbought. Apple is a piece of that. They put a somewhat disappointing quarter. Missing that shipments, apple right now on pace if you can believe it for its worst year since 2008. That is a piece that some investors are forgetting about. Some disappointing earnings reports there. Cory Joe Weisenthal tweeted today the dow is moving in 100point increments. The changes were so extreme. I think i really do want to see you do one of those hashtags and emojis up your analysis using the tools of modern society. Fomo for example, why not . Fomo. Abigail i sent out a tweet not long ago talking about a wild week. It ended on a high. But i put a little jaws emoji because that is what it is like. You have the jawsbiting investors and everyone think there is a bottom. And then the floor drops. It seems like it can continue as it goes on. Those names having their worst week since 2016. Sort of a bright spot. Bitcoin. Bitcoin has been higher on the week. Investors a little less worried about regulatory pressures. And the great quarter out of nvidia. Cory bitcoin miners is an important part of bitcoin chips. Abigail great stuff. , we will have to fomo without you all weekend but we will see more of you next week. Thank you very much. Let us bring in dan flax, our Senior Analyst covering the debt sector in new york. He has seen a couple of market cycles. What is your emoji about what we saw this week in trading . A little bit of a Lightning Strike because the markets have a clearly, the markets had strong 2017. I think some of the volatility we are seeing is concerns about inflation and rising Interest Rates. Stepping back, if you look at some of the fundamental drivers for many of the technology companies, the build out of cloud, next generation networks, we think the fundamental story remains on track. If you look at the microsoft result they were healthy and we continue to like that name on the longterm basis. Cisco, which reports next week, we think they are continuing to execute well on the transition to more software and services. Theyve executed well in the security business. Isther name we point to Motorola Solutions. They hate they have done a good job executing in public safety. We think there are a lot of opportunities in the market while the volatility may continue longterm. We think there are attractive names here. Cory one thing i think people do not understand when they think about a rising rate environment, if you have this cash flowing out, that number goes higher. Companies have to earn more. An appropriate revaluation down of even highgrowth names we see in technology. Dan i think that is reasonable. What i would point out is if the revenue and earnings and cash flow are able to grow at outsized rates for these companies in our view, there are , still shares for the companys there are still shares for the companies to outperform. Cory then why is motorola losing . It is 5 topline yearoveryear. Dan we think the magic of Motorola Solutions have been a Margin Expansion and earnings story. We think the earningspershare growth is actually more than two x that rate. The reason i mentioned in my guys because we think there are pockets of opportunity in the market and there are stories that have powerful drivers in the case of Motorola Solutions. Cory we are seeing operating margins go up from 20 to 27 over about a year. That is what we want to see. As we start to select these names, let us imagine we have a market bumping along for lows instead of the rise we have going back to 2009. What is one of the characteristics of the Technology Stocks i should Say Technology companies, postsox you want to invest in . Dan were looking about companies that want to build platforms. The advantage of being a Platform Company as you can attract people on both sides. For example, if you look at amazon which theres obviously a lot of debate about the growth rates and the future of the company, but ultimately they are bringing together buyers and sellers in their core business. They have also built up amazon web services, the biggest cloud platform. Companies able to build these Digital Assets have robust Growth Opportunities over multiple years. We are still likely to have volatility in the stocks. These Companies Need to execute and competition is fierce but, if they are able to manage through different cycles, they have the ability to create tremendous amount of value for all of their stakeholders. Cory there is also a weird thing that weve seen. There are people on wall street who have never been around an environment of raising rates. They are going to see things they have never seen before. They are not young, just younger than the bull market. Dan i think that is a fair point. Looking at companies specifically and their fundamentals, in our view, even in an environment where rates are rising, if companies are able to develop their businesses and grow and take advantage of new opportunities, even in that environment, there are opportunities for them to continue to create value. Certainly, rising Interest Rate environment can have an impact. I would suggest if rates rise gradually, it is a little bit easier. If you have shocks to the system, certainly the market can react more negatively in the short term. That is what we tried to do, day in and day out. Cory i did pull up the operating margins in green for the Motorola Solutions. Were pointing out exactly you are saying if there is moderate growth the business is kicking more into the bottom line. You should go to your bosses and get a raise. You have done a fine job this week. Billions ofs dollars with a stake in the ecommerce market in india. Walmarts stake will be as much as 20 . Part of the deal will boost the valuation 20 billion u. S. Dollars. Coming up a trial that , captivated Silicon Valley. For a week. It is over. A deal with waymo and uber comes to a surprising end. We will bring you the details, next. If you like bloomberg, check out the radio and check us out on our radio show. Go to bloomberg. Com and serious xm station 119. This is bloomberg. Cory the trial of the year for Silicon Valley is over. Already. It is only uber to pay waymo february. 245 million worth of equity and cut to an end the trial of Self Driving Technology that may have been stolen. It is less than a week since the trial started and gives waymo 0. 34 percent stake in uber. Guys, let us start with our legal guy. You cover a lot of trials. These trials rarely settle early. They rarely make it to court. He spent a lot of time in the court. How unusual is this . It is surprising that this case took as long as it did to settle. I think it is a reflection of the emotions behind it for each side. There is an emotional component to trade secret suits. Cory what do you mean emotional . I think google generally genuinely felt alphabet ceo here was angrytt about everything that went on. All the former they saw all their former employees go to their competitor, right . There is evidence hard evidence that there was wrongdoing done by the former employee, anthony levandowski. Real evidence a very bad behavior that over, in fact, uber condoned by hiring away from waymo. Cory that does not necessarily condone. Anyone can hire away and it does not mean you are condoning illegal behavior. What was it like when travis, the ceo showed into court and had a couple of days of testimony . It seemed like this really hinged on what he said. I think that is a bit overrated, though he did a good job. There is no denying that, and that certainly helped ubers position and gave him leverage. Cory maybe google are waymo thought we will win the case based on his testimony. Not the case. The testimony that came after was when they were trying to hit hard. I think they knew they werent going to get the goods out of him and that was the gamble. Ultimately, waymo got what it wanted out of the lawsuit. Cory look at this great video our team captured in the wee hours. It sound like there was a scene. So many journalists, when of those parties. Yeah, tons of reporters there. Different people from a company. Tony west, ubers chief legal officer. [laughter] tony west. Chief legal officer was there. People coming in and out. Who we didnt see was larry page, alphabets ceo. They settled before he had to testify. On the standquirm before their of executive had to get on the stand. This cost a lot of money. 235 million in equity that over had. They spent 680 million to acquire lewandowskis company and they probably spent out our Bloomberg Analyst was on the radio and said it probably cost them 50 million to go to trial. Eric can speak to the money, which it was not at all. I think the real cost are here for over was a Public Relations disaster. This was a steady drip of that information coming out about uber and what it did to get the engineer at the center of the lawsuit. That was the real price exacted, i think. They paid rich dividends over a course of the year and a Public Relations attack. The acquisition of auto in the first place and developing 600 million in equity earn outs. A lot of those earn outs have not occurred. Some of the payments may have been 100,000, were talking about. I would take that number. The number is 0. 4 . The important number is 0. 34 . They are taking less than 1 of over, one of the most uber. Softbank valued uber at 54 billion blended. The 74 billion they are using to come up cory is that what theyre using . Yes. Cory and they have to do that or else we do not know but we think you might trigger issue into new shares to late investors, so they will continue this phone evaluation of 72 billion. This comes from waymo. What this is actually working, you can do the math. Cory it is not worth that much. Yeah yeah yeah. We did a news story somewhat between 150 million in 250 million. Still a ton of money. Cory let me try to explain a little more clearly. For those of you keeping the score at home. There was a valuation at softbank that agreed to pay for a little bit of their investment equal to the earlier valuations of uber. It is possible that the people who paid those valuations got a promise that there was ever an official lower valuation they would be issued more shares, which would have diluted everyone else. Uber does not want to trigger that so they continue to use this ridiculous number of serving the 72 million, even though they let softbank by lower than that. To do get a sense that something changed this week . That it was going in a different direction . It was not going as well for waymo as i think they thought it would help hopes and i think it went better for uber than would have been the case. When you got your most of waymos case and they had sized up what they had, in terms of the settlements and the money, i think the money did not matter. I said all along the money did not matter. What we learned is uber has agreed to not use the trade secrets that they would do the design around in the hardware and they also agreed to not use waymo software, which they tried to get into the case and failed. Underneath the surface, they got what they wanted out of the settlement. To zoom out i think we lose track of how much waymo got out of this. Ubers ceo has changed in a letter the demands made against travis, part one, one of the big problems was waymo. Anthony levandowski, the man that got everyone angry, was fired. Cory let me give myself the last word. Two things. A friend of mine worked with lewandowski and said the sky was so impressive that he could walk into a room and listen to eight different arguments and put them into two ideas and have people start to figure things out and he was a truly impressive guy. He might still have a future in Silicon Valley, which would not think. Another thing i will say is everyone in the valley had such interest in this thing because the idea of dealing ideas and moving with documents from one company to the next, i cannot believe how many parents of lacrosse games are people at cocktail parties would bring this up. Thank you much both of you, both for bloomberg news. Covering a brief trial for us. Thanks guys. Alibaba pledged to create one million jobs in the u. S. , but will they . Well head to the Olympic Village to hear about the companys impact on that promise so far. This is bloomberg. Cory alibaba president cut up Stephen Engle at the winter the met with Stephen Engle at the Winter Olympics in pyeongchang and says the company is on its way to great million jobs by millions way to create of jobs by 2021. We created millions of jobs in 18 years sitting in our platform and it is too early to quantify how many we have created, but we know based on the mime a business we are doing that jobs are being created. Cory he talks volatility in the equities market. Global take a listen. He talks volatility in the Global Equities market. Take a listen. I am not concerned about shortterm volatility, i think the fundamentals in the world in terms of gdp growth and the way markets have responded on the back of the financial crisis, while not everywhere, is looking good. Most of the world looks pretty good. Cory coming up, amazon continues its move towards world domination. Leaving ups and fedex in their wake. Bloomberg technology is livestreaming on twitter. Every weekday at 2 00 on the east coast this is bloomberg. Retail. Under pressure like never before. And its connected technology thats moving companies forward fast. Ecommerce. Real time inventory. Virtual changing rooms. Thats why retailers rely on comcast business to deliver consistent Network Speed across multiple locations. Every corporate office, warehouse and store near or far covered. Leaving every competitor, threat and challenge outmaneuvered. Comcast business outmaneuver. Mark i am Mark Crumpton in new york. You are watching bloomberg technology. The budget bill President Trump signed on friday include huge spending increases for the military. The biggest year over year windfall since the budget soared in the nation was fighting the wars in afghanistan and iraq and expanding National Defense after the 9 11 attacks. In total, the 700 billion budget spends more on defense spending been china and russia. The number two at the Justice Department plans to step