Global news, 24 hours a day, powered by more than 2,700 journalists and analysts in more than 120 countries. I am alisa parenti, this is Bloomberg Technology with emily chang is next. Emily this is Bloomberg Technology. On theks cool factor line, a Record Number of teens are jumping ship and making a beeline for snapchat. Plus our deprived of getting more women into technology. Deep dive of getting women into technology. Changeenewed focus and a of the worlds most fallible company. But first, to our lead. Market surged after its worst performance in two years last week it the dow and s p are only down a percent since the and of december, and for more of like the reagan the mark markets reporter abigail doolittle. Please give us some context on the trends and the way the market open today. The bulls were out, and the sellers try to push the major averages lower at 10 a. M. This morning, but the buyer stepped up, and we had a big rally. Days p on pace for its best since november of 2016, and it is the best day for averages, and the first and we have seen that in february. Of thethis opposite action of last week and the question is what next . What way will the volatility go . Even so, a lot of old tech names trading higher, such as apple, intel, microsoft, and cisco. Being these names were sold off, and nothing has changed fundamentally, so it points to the degree that sentiment and confidence displayed to the upside and downside, and that could change on a dime, so there is perhaps more work to the downside to be done. Emily the banks did well, opec rebounding, what does that mean for the future . Well, andhe banks did last week these names were being sold as well, they a big rally. If we hopped on to the bloomberg, Something Interesting shows here, these are the daily moves for the Merrill Lynch bank index, and here today we see a big move higher, not bigger than last tuesdays action where the selling last thursday was stronger. All of this suggests that sellers pay came out may come out in droves and cause more downside. It is slightly down on the year, gs may shift in the days or weeks ahead. Much. Abigail, thanks so when it comes to the sheer amount of global users, facebook reign supreme, but it is not a completely rosy outlook. A new report shows facebook is losing ground to snapchat in the teen demographic. Lose 2 million users and dad states this year, and snapchat is set to gain nearly 2 million. , activate ceo and my guest post for the hour. Deborah, lets start with you. What did you find and how do you come up with this 2 million number . As you mentioned, facebook is set to lose 2 million users under the age of 25 does your, particularly the teen demographic. Theave seen some of declining usage there over the past year or two, but the decline has steepened quite a bit this year. For the first time where also seeing a decline in usage this year among people 18 to 24 in the u. S. , and people ages zero to 11. We know facebook isnt technically allowed for that age group but we know people are using it in that age group, unfortunately not as many as perhaps facebook had hoped. As far as how we got the numbers, they come from an analysis of thirdparty survey data as well as Public Information released by facebook and government information as well on Population Trends and Internet Usage trends. Emily we have any idea if facebooks algorithm changes to show more friends and family versus news had an impact here . Facebook decision that is consciously making to sacrifice users in order to improve the overall experience . They did say that in their last earnings call, but i think this problem has to do with the fact that 14s internet for teens, interacting with video is a popular way, and that is why snapchat is rising in popularity. People on it,lder so perhaps that is not cool for teens. Teens may not be interested in keeping things for prosperity. On facebook you can say things forever, where snapchat things disappear. How troublesome is this for facebook . Issue is that this isnt about teens anymore. The average user is over the age of 25, and instagram is younger, so 70 percent of the users are over the age of 25, if you look at snapchat, it is only 50 . Becauset that troubling a lot of what facebook is going to do in terms of growth is it is going to be among people who are older and it is about people who have the time for more usage. Teens and the younger audience is going to snapchat, but we also dont know what is what to happen next. Itschat redesigned interface and there were a lot of people across the internet who were unhappy with that. Are in flux, and a couple of million users one way or the other is want to make a huge difference in the whole facebook universe. Emily deborah, would you a growth that . Facebook is the victim of the law of large numbers, but does 2 million not matter that much . Or as a part of a longer term trend that is going to continue . Be watchinging to the numbers to see if this is a longerterm trend, but michael is right when it comes to the important work of facebook, which is how much revenue they are generating. We are not seeing any impact at all, we are forecasting facebook will have a quarter of all u. S. Digital ad revenues this year, and 10 of all media spending and United States this year. That is still expected to grow up in double digit percentages next couple of years, so advertisers are still very interested in that facebook audience, even if the teen audience is not using facebook itself. They may be using instagram. Instagram is also popular with teens and young adults, and that is growing its ad revenue as well. Facebook has a lot of hedges against this potential problem. Quickly,chael, threatening to pull from facebook and google, saying this platform has become a swap for fake news, sexism, racism, extremism, how serious is this . The problem is truly serious and is more likely that facebook and google will respond to their biggest customers, to advertisers, and they went to regulators. The biggest advertisers are concerned not just about the content going across things that are promoting hate, but they are also concerned about the wake of that one waytion or the other, these platforms contributed to the sharing of fake news and misinformation. Going forward, data want to be responsible for that or part of it. Emily we will continue talking about this. This, and Michael J Wolf, you are with me throughout the show. And deborah, thank you so much for sharing your report with us. Coming up, we talk to the man used to run twitter and talk about gender inequality and tech and twitters turn around. This is bloomberg. Emily over the last week or more, we have been examining the maledominated culture in tech, and my next guest is well aware of the problem. You get in my new book, brotopia breaking up the boy club of silicon valley. He has made it his mission to hire as many women as men, and i would like to welcome former twitter ceo, great to have you back on the show. Great to be back, i was hoping you would call me abigail. [laughter] going. People tuning in our going, what . When you left twitter and start chorus, you approached hiring differently than most ceos and said im not going to why did youypg d do that . 50 acrossto keep it all engineering, because when you fall behind, which is Common Knowledge based on gender and diversity studies at comes out from all of these companies once you get behind on things like gender diversity in your Engineering Team, it becomes frankly impossible to catch up. Have women engineers interviewing at the company and want to meet other women areneers and theiere only so many women engineers, and then it comes to writing election code, and it is hard to catch up when you fall behind, and i just decided that the way to deal with that is to start off by not falling behind. Give yourself the excuse in the early days that we have to get the right seven people in here on day one, and if there is seven men, you catch up later, but you can catch up. I decided if it was 5050 early on, it would be easier to stay that way, and it has proven to be true. Emily why dont other founders think like you . I dont think they think about it. You are trying to raise money and waking up every morning, im responsible for people i havent been responsible before, and you want to squeeze your head together and cry about all the things you are worried about, so you dont think about it. Or they feel like it is something i can do with later, and theres probably a general sense of the resulting 30 people in the company now, that is going to be an issue because where out of whack here, but will do with that later, and the reality is that once you fall the hide, it is almost impossible to catch up. Everything in the organization starts to work to favor the existing imbalance and to keep going. Reason,any nefarious just because that is the way everything in the company is. For example if you have 90 of in engineering and 10 women, the way you bring peoples referrals, and a Junior Engineer guy is handy out with other Junior Engineer guys, and they know mostly guys, and that is who gets referred in. That is what i mean that once you fall behind, that imbalance starts to reinforce itself. Anything inere particular we know twitter is not unique in this, but is there anything in particular you learned at twitter where you saw things go the wrong way that could have been better if there had been more equality . I would frame it differently and that i always felt that when i had a more Diverse Group of perspectives on the decision to be made when you are a leader or manager, 80 of what you are doing is listening and gathering feedback in order to make the best decisions. If you have the broadest set of perspectives to make a decision, that is better than making having a very narrow set of perspectives. Emily and think about your product. Leadership team that is 10 guys, and your leader base you are going to have a lack of what halfyear user base is thinking. That wehe benefits is had a team that matches the user base. It wasfelt that something you should work towards, to have more kinds of socioeconomic, demographic, genderbased perspectives in any decision being made. I interviewe book evan williams, cofounder of twitter, and he thinks that if there were more women in the early stages, then maybe Online Harassment and trolling would be such a problem because they were thinking about it. There were only thinking about wonderful things being done with the product and not how to arrest people harass people. Do think if there were more women, the product would be different . There are two Different Things there, im not sure i necessarily agree that if there were more women on the founding of twitter that some of the issues would exist. It is hard to anticipate how the product will evolve and how it will be used. There always lots of unintended consequences, and even out there will be unintended consequences from a couple of years now. I am not sure of the same opinion on that point. Theres no question that in the founding of any product or any toanization or business that the extent there are more women around the table at the beginning, you are going to end up with a different set of decisions from day one. And that is a good thing. Well talk more about future social media in the future. This is bloomberg. Ofly it has been something a charmed moment for twitter, with a surprise revenue gain and first real pop and earnings results, and we are continuing the discussion of the man who ran the social media platform, the former ceo of twitter. Numbers have been looking good, but the coo recently left to become ceo of another company. How big of an impact is that . Jack has been very careful and thoughtful and backfilling the ranks of the Management Team over the past few years since i left in 2015. Use of executive departures in 2016 come up at the same time jack was doing a great job of bringing people to fill those positions. The cmo from American Express has done a great job, and the new cfo, i do know personally but everyone speaks highly of him, since the document engineering leadership team. Anthony is world and a great human being, is going to be an extraordinary ceo and im excited for him. But jack has done a great job of building the bench over there, and keep the financial house in order. Emily do you think the turnaround is longterm or a shortterm thing . We are always rooting for twitter. Twitter is one of the most important forms and mediums in the world. I have every belief and hope that not very long as a shareholder, it will continue to be an independent company and thrive. One of the many things that i adore about jack is that he is a very calm and patient and thoughtful leader. Which is exactly what you want over the long course of the future, this is how we are going to steer the ship and build a Successful Company and not freak out when the market is zigs and changes in the near term. Nowhe right person they have the company on a financial reject every marketory that the can work against, will continue to be the right person to work at that company. I love that the focus feels like they have the wind in their cells, and you can see it when you hang out with folks in the company now. They are more confident and happy and they feel they have momentum. Emily what do you make of the chatter of who could be a likely suitor . It did chatter comes, when i ran the company, and every couple of months there was a story about someone or the other being interested in the company. I am confident and sure that jack has them focused on what they need to be focused on internally. The beauty of that chatter going on so frequently is that people in the company know not to pay any heed. Emily big story in wired facebook s week, pulling advertising from facebook and google and calling it a swap. A swamp. You think facebook slots to be twitters game or is this something all platforms will have to reckon with . What will be the consequences . I think the biggest consequence for twitter was the statement coming out of facebook a couple of fridays ago that rethink theing to way the newsfeed work to be much more about social sharing and what your friends are up to and less about news and publishers and media. If i heard mark correctly, that to me is a big move to twitter. Twitter has always been about that, what is going on in the world, the pulse of the planet, working close to media companies, publishers. They can feel that we are the place for publishers again, we are the source, the single disillusion vehicle we are closely with on realtime event and what is going on while an event is happening. That is a giant boon to twitter and its relationship with content providers and advertisers. Emily we will be watching over the next year. Former twitter ceo and founder, big as always for stopping by. Operates inw breaking news on twitter. To talk. Apples massive stock upgrade. 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. Leaving every competitor, threat and challenge outmaneuvered. 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. I am alisa parenti. You are watching Bloomberg Technology. Proposaldent spending would cut the subsidy for amtrak in half. , the the Budget Proposal administration aims to cut the 738al contribution to million for the fiscal year. Rex tillerson met with the egyptian president in cairo today as the two countries reaffirmed their commitment to rattle in islamic militants in the middle east. Comes as egypt is undertaking a Major Military operation in sinai. Needsities estimate iraq 88 billion to restore that country. Among the hardest hit areas is which iraqis forces aided by shiite militias and the u. S. Coalition recaptured in july 2017. , president jacob zuma has been given 48 hours to resign according to south africa state broadcaster and other networks. Zuma has defied pressure to step down since he was replaced as head of the anc ruling party. His years in office have been marred by scandal. Global news 24 hours a day powered by more than 2700 journalists and analysts in more than 120 countries. This is bloomberg. I am alisa parenti. This is bloomberg. After 5 30 p. M. In washington, 6 30 Tuesday Morning in hong kong, where we are joined by david ingles with a look at the markets. Good morning. It was a good day for wall street. Looks like we will be extending that global rally. Japan was closed on the holiday. We are looking to see the nikkei 225 futures at the moment, looking to gap 300 points of the open there. Days ine of the first two weeks that we are going in with not just gains from wall street, but proper upward momentum. It is a retest of resistance levels, we pretty much blew through key support levels and are quite deep when you look at the key benchmarks. That being said, earnings might provide some support, and also ecodata out of japan might nudge the markets higher. We are looking at gains of the open in major markets here in the asiapacific. More with Bloomberg Technology next. Emily this is the Bloomberg Technology. I am emily chang. While apple plans unveiling new features in the fall, the most important improvement is what is not being debuted. Namely redesigned home screens and revamped photo apps. It is trying to renew its focus on quality in response to criticism that some of the companys software has become prone to bugs and underdeveloped features. I guests are st