Now, [indiscernible] sites. Back bidding. Nds on its looking to add to his assets. Global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. Let me leave you with a look across equity markets, australia closing up shop for tuesday, hong kong and china coming on in the afternoon session. We are up about 8 10 of 1 if you put everything together aggregate late. Emily this is bloomberg technology. Coming up, facebooks cool factor on the line, a Record Number of teens are jumping ship and making a beeline for snapchat. Plus, our deep dive in how to get more women into technology. On apple will double down substance over style this fall in a renewed focus on software. He will discuss changes in the Business Plan for the worlds most viable company. But first, to our lead. U. S. Stocks surged on monday, the market showing signs of recovery after its worst performance in two years. The dow and s p are only down a ofcent since the end december. Abigail, give us some context on the trends we are seeing and the way the market open today. Abigail the bulls were out, and the sellers tried to push the major averages lower at 10 00 this morning, but the buyers stepped up. We had a big rally. The s p on pace for its best day since november 2016. It is the best day for averages, and the first and we have seen that in february. All of this opposite of the action of last week and the question is what next . What way will the volatility go . Todays buying action was a little bit less enthusiastic than what we saw last tuesday and friday, but even so a lot of , old tech names trading higher, such as apple, intel, microsoft, and cisco. What makes this interesting, some of these names, all of these names in fact, last week were being sold off. Nothing has changed fundamentally, so it points to the degree that sentiment and confidence are playing into the upside and downside. That could change on a dime. Perhaps there is more work on the downside to be done. Emily the banks did well, opec rebounding, what does that mean for the future . Abigail the banks did well, and last week some of these nature being sold as well, apple, netflix, alphabet. Is 3382. A big moveay, we see higher, but interestingly, not bigger than last tuesdays action, where the selling last thursday was stronger. All of this suggests that sellers may come out in droves and perhaps cause more downside. Interestingly, the s p 500 off just slightly on the year, down slightly on the year. The fangs may shift in the days or weeks ahead. Emily abigail, thanks so much. When it comes to the sheer amount of global users, facebook reigns supreme, but it is not a completely rosy outlook. A new report shows facebook is losing ground to snapchat in the teen demographic. Facebook is set to lose 2 million users under the age of 25 in the u. S. This year. Snapchat is set to gain nearly 2 million. Here with more, principal analyst and marketer and 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 . Deborah as you mentioned, facebook is set to lose 2 million users under the age of 25 this year. Particularly in the teen demographic, 1217yearolds. We have seen some of the declining usage there over the past year or two, but the decline has steepened quite a bit this year. For the first time, we are 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 do we have any idea if facebooks algorithm changes to show more friends and family versus news had an impact here . Is this a decision that facebook is consciously making to sacrifice users in order to improve the overall experience . Deborah they did say that in their last Quarterly Earnings call, but i think this problem has to do with the fact that for teens, interacting with video is a popular way, and that is why snapchat is rising in popularity. We are seeing a factor that facebook have a lot more older people on it, so perhaps that is not cool for teens. We are also seeing that teens may not be interested in keeping things for prosperity. On facebook, you can say things snapchat,hereas on things disappear. Emily michael, how troublesome is this for facebook . Back, thehen you step Biggest Issue is that this isnt about teens anymore. 80 of the users are over the age of 25. Instagram is a lot younger, but not that much. 70 of the users are over the age of 25. If you look at snapchat, it is only 50 . How troubling . Not that troubling because 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. Yes, teens and the younger audience is going to snapchat, but we also dont know what is what to happen next. In the last week or so, snapchat redesigned its interface and there were a lot of people across the internet who were unhappy with that. These things are very much in flux, and a couple of million users one way or the other is not going to make a huge difference in the whole facebook universe. Emily deborah, would you a that . Ith facebook is the victim of the law of large numbers, but does 2 million not matter that much . Or is it part of the longerterm trend that is going to continue . Deborah we are going to be watching 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 advertising 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 over the 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. Emily michael, quickly, unilever is threatening to pull advertising from facebook and google, saying this platform has become a swamp for fake news, sexism, racism, extremism, how serious is this . Michael the problem is truly serious, and it is more likely that facebook and google will respond to their biggest customers and advertisers than they will to regulators. The biggest advertisers are concerned not just about the content going across things that are promoting hate, but they are also concerned in the wake of the 2016 election that one way or the other, these platforms contributed to the sharing of fake news and misinformation. And going for it, they dont want to be responsible for that or part of it. Emily we will continue talking about this. Michael j wolf, you are with me throughout the show. , thank you so much for sharing your report with us. Coming up, we talk to the man used to run twitter and talk about ginger inequality in tech, twitter turnaround and more. This is bloomberg. 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. Detailed in my new book, brotopia breaking up the boys 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] emily how about i call you abigail . People just tuning in are going what . Emily i want to start on a positive note. When you left twitter and start chorus, you approached hiring differently than most ceos and said im not going to hire more minutes until a higher women and you continued that one for one as you grew. Why did you do that . I tried to keep it 50 across engineering and the company because i felt like 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. You have women engineers interviewing at the company and want to meet other women engineers and there are only so many women engineers, and then the women engineers spend all of their time interviewing other women engineers and they are not writing 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. Not say 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 dont catch up. On,cided it was 5050 early and it would be easier to stay that way, and it has proven to be true. Emily why dont other founders think like you . Dick 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 for 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 deal with later. Theres probably a general sense of their is only 30 people in the company now, 40 people, 50 people, that is going to be an issue, but we will deal with that later. And the reality is that once you fall behind, it is almost impossible to catch up. Everything in the organization starts to work to favor the existing imbalance and to keep going. Not for any nefarious reason, just because that is the way everything in the company is. For example, if you have 90 men in engineering and 10 women, the way you bring people into engineering is referrals. Engineering guys are hanging out with other Junior Engineer guys. That is who gets referred in. That is what i mean that once you fall behind, that imbalance starts to reinforce itself. Emily is there anything in 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 . Dick i would frame it differently in that i always felt that when i had a more Diverse Group of perspectives on a decision that needed 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 having a very narrow set of perspectives. Emily you can move more quickly, you dont have to ask people about your products. Dick if you have a Leadership Team that is 10 guys, and your leadership base is 70 men, you are going to have a lack of what half of your user base is thinking. One of the benefits is that we had a team that matches the user base. I always thought that was something you should work toward, to have more kind of less narrow socioeconomic, demographic, genderbased perspectives in any decision being made. Emily in the book, i interview evan williams, cofounder of twitter, and he thinks that if they were more women on the Founding Team of twitter, in the early stages, then maybe Online Harassment and trolling would not be such a problem because they were not thinking about it. There were only thinking about wonderful things being done with the product and not how it could harass people. Do think if there were more women, the product would be different . Dick 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 wouldnt exist. It is hard to anticipate how the products will evolve and how it will be used. There always lots of unintended consequences, and even out there even now there will be unintended consequences from a couple of years now. I am not sure i am of the same opinion on that point. Theres no question that in the founding of any product or any organization or business that to 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. Emily you are sticking with me. Well talk more about future the future of social media. This is bloomberg. Emily it has been something of a charmed moment for twitter, with a surprise revenue gain and first real profit in its earnings results. We are continuing the discussion with the man who ran the social media platform, the former ceo of twitter. The numbers have been looking good. And yet, anthony noto recently left to become ceo of another company. How big of an impact is that . Will they fill his job . I will tell you, jack has been very careful and thoughtful backfilling the ranks of the Management Team over the past few years, since i left in 2015. There was a lot of news of executive departures in 2016 , but 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 worldclass job. The new cfo, i dont know him personally but everyone speaks highly of him, and the same would be Leadership Team. Anthony is worldclass, a great human being, he 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 anthony did a great job of bringing people and to keep the financial house in order. Emily do you think the turnaround is longterm or a shortterm thing . I know we are always rooting for twitter. Dick twitter is one of the most important platforms and mediums in the world. I have every belief and hope 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 in these sort of, 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 zigs and changes in the near term. All by way of saying, i think he is the right person, now they have the company on a financial trajectory that the market and internal team alike and work against, he will continue to be the right person to lead the company. I love that the folks at the company feel like to have the ,ind in their sales sails 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 sale chatter of who could be a likely suitor . Dick that chatter comes, it did 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 the chatter happening so frequently is that people in the company know not to pay any heed. Emily big story in wired magazine this week, inside facebooks hellish two years. We talked about unilever threatening to pull advertising from facebook and google. They call it a swamp. Do you think facebooks loss could be twitters gain, or is this something all platforms will have to reckon with . What will be the consequences . Dick i think the biggest consequence for twitter was the statement coming out of facebook a couple of fridays ago that they were going to rethink the way the newsfeed works to be much more about social sharing and what your friends are up to and less about news and publishers and media. That to me is a big move to to twitter. Twitter has always been about that, what is going on in the world, the pulse of the planet, working closely with Media Companies and publishers. To the extent they can feel that we are the place for publishers again, we are the source, the single disillusion vehicle we for them to work closely with on realtime events and was 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, thank you as always for stopping by. Bloomberg lp operates in breaking news on twitter. Up next, apples massive stock of gray. This is bloomberg. David i am david ingles with your first word news. President trumps proposed 4 moreion budget calls for cash for the military into deep domestic cuts. He wants 827 cut at the state cut at the epa, as well as medicare and other programs. Is happening what in london, the city airport is set to reopen as normal over the next hour or so following the removal of a bomb dating back to world war ii. Canceled0 flights were on monday after the device was discovered. The city airport is in londons eastern area, which was heavily bombed during the time. The currency markets, the rand was the big story. Zuma president temer has been told to resign. Was bed to be refusing to resign he. By someone else. Lets have a look at china, the country has charged a onetime rising political star with bribery. Mostmer party chief is the senior official snared in and a corruption campaign. He reportedly accepted payments thisnefits, but some say is largely political. Global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. Lets get you a quick check of the markets, trading across the region this tuesday, here is a juliette. Mostlye we are seeing positively in the markets, although japan looks like it could end the session on a negative note, and china playing catchup, the selloff coming to yesterday. Using strengthen the end today. Has good earnings numbers today, up by 1. 2 , hong kong having its tickets again in a few months. Of china is the story and hong kong leading the rally today. The pboc offering one year funds, boosting sentiment across asia today. Its pull that out, i want to show you some of the movers we are watching in the region. I mentioned earnings, lion corp. Coming through in japan. Sony optical has forecast 120 gain in 2017 numbers. To the downside, using weakness in some of the soul players today. We are live from london at the top of the hour for daybreak europe, this is bloomberg. Emily thi