Rivals. Just as the model 3 hits the road, why have the sales shifted down again at tesla. A massive deal in the Digital Payment space. Pay is being bought for 9. 9 billion. This comes after j. P. Morgan showed interest, but backed away. The u. S. Credit card processor hopes to gain greater exposure to ecommerce retailers and Small Businesses through this acquisition. Cory johnson and his partner at index ventures joined us for reaction at to deal. Cory this is a fascinating company. It is based in cincinnati, ohio. Why cincinnati, ohio . Whats interesting to spin off from this tells you the history of the business of payment transaction and what is happening is the way this business works, when you use your credit card in a store they , find it if youve got the money in your bank account and they approve the credit or not. There are a number of steps that happen behind the scenes. Each of those steps takes a different chunk. You get the verification from the merchant and the movement of the money between the merchant and the bank and the verification, when you go through the steps, there is money taken each hard way. Thats part of the way. It results in billions and billions of dollars. The movement of commerce has gone from physical stores to online. And the payment infrastructure the Company Servicing those businesses has changed as well. Thats why you see vantiv making this move. They want to take advantage of things happening online because they have done so well offline. Caroline they have one of the biggest tech portfolios out there in europe. Isnt all about the graduation of payments . Thats a big part of the story. Global Payment Processing there is a big market and its 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, its 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 brickandmortar. 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 its interesting that this is the key move and we are hearing of a portfolio company, what about other m a . Interestingly, it wasnt 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 years. We have seen the Traditional Companies have more exposure to ecommerce. We saw heartland acquired. That was for nearly 1 billion. There was a deal today for nearly 10 billion. Let us not forget the very specific action that amazon took in going after whole foods. Vantiv shares dropped on that. Whole foods uses vantiv to do their transactions. They are not mentioned in the report. One of amazon said we are going to stick with the existing payment structure. Well use our payment processor , which is none other than j. P. Morgan. The competitive space here is quite alive and you can see that the m a going out, they are trying to buy the new company with the notion that the Ecommerce Companies are kingmakers, none more so than amazon. Caroline its interesting, we saw another deal in europe, a Danish Company saying it was up byi doubt eyed americans. What about the company having your portfolio 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 have an ipo at some point because they have a very good advantage a very large , footprint. They dont need a backer to go all the way. That has been the pitch from the getgo. That is very much what were focusing on. Caroline that was cory johnson and martin. Facebook could be the next target for antitrust watchdogs. Germany is examining whether facebook essentially takes advantage of its popularity by pushing users into agreements they might not understand. We discuss 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. They are saying if you want to get in the social network, facebook is probably your only choice in the western world. That dominance over data is basically forcing anybody who wants to do that to sign up for all of these terms and conditions. Caroline the debate commences. You are saying sometimes scale and size is good to the consumer, but it seems here that the german antitrust that ities are feeling is making facebook with 2 with its group, 2 billion user group a bit too pushy. This investigation was announced i can march. Does it mean anything from a real perspective . What is happening over there, anything can go right now. They have the biggest ever fine levied on google. Whos to say they wont crack down on facebook . At the same time, you are hearing her encourage other companies to sue google. Anything can happen. Its interesting to go after the privacy angle. Right now, its tough to say. Its a wild card out there. Caroline when you are looking at it from here in london, this is a German Antitrust Authority looking at facebook. Yes, we had the European Commission looking down on google and saying it may be time for others to start suing here. It might, the fines dont matter. Im not sure the monetary value of these fines actually make a difference for the companys themselves. I do think one goal of the regulator is to say all. It signals to the rest of the market that there is a watchdog, somebody is paying attention. Somebody is trying to preserve competition and preserve user privacy or the benefit for consumers. A lot of this is signaling. companys care is really kind of arbitrary. But the point is that the industry in the sectors know that Small Companies coming up might have a chance, and dont give up and dont think you cant compete. Dont think there is not a level playing field. Caroline talk to us about how the tech giants are interpreting this and the European Commission and the german antiauthority who are working on facebook here. Is this about increasing competition . They feel facebook case in particular, its a real overstretch, taking an antitrust argument which understandably in europe is different than the u. S. And applying it to privacy is a leap. On the google side, there was kind of an era resignation. They do say that they are considering an appeal. The comment that they put out this time versus a year ago were less combative. There is an air resting nation, an era resignation, especially when it comes to more pure antitrust cases. Caroline i just want to get your thought of someone who is looking at potential value for these companies. You rate facebook, as it make you worry about your price targets for these companies or not . Not yet. We put out a note on google last week saying this is overreach. I agree with that. Privacy, even more so with facebook. I always joke around saying if you dont like the privacy, dont use the service. Thats what we do here all the time. Ultimately, i am most interested in our worry is we see in action from the United States. We are in a position where we see a pattern of going after and trying to change the way these companies do business. There is no recourse or any response from the United States government at that point. Caroline you think this is european regulators completely overstepping the mark . You dont think theres any reason why they should be trying to level these accusations . I think they are picking the wrong battles. You can make the case that these of all done something wrong at some point or another. I think the battle they are trying to win it with the vertical search with google, they have done a lot worse. When they scraped yelp content and used it as their own, that is a lot worse. What i would like to see is what the u. S. Responses. Response is, and based on that, that would affect my rating and targets. As of now, i agree that it is more signaling. Caroline now coming up, we will explore the vc environment outside Silicon Valley. They just raised 150 million. This is bloomberg. Caroline london is defending its title as europes tech capital. That is according to london and partners, the Promotional Agency of the city. They drove 2. 3 billion into the Technology Sector are since last brexit vote, outpacing other european cities in the area. In particular is ,earles Felix Capital announcing it is raising 150 million. The firm backs some of the biggest successes. They joined us to discuss the current landscape. When we started two years ago, that was a big precedent. There was no question about it. Especially with our position around the creative class. London is a great example of technology and creativity. Two years in postbrexit, there , were some questions. That has not stopped investors from backing us. The question Going Forward was more what kind of opportunity will you be able to find in london . Well based on the way we work, we tend to go after opportunities based on when they are. We dont expect to do everything just on our home turf in london. We met somebody in portugal. We started this conversation to become a Global Capital for fashion and luxury. Our job is to find this and convince the entrepreneurs to work with us irrespective of , location. Caroline what are you focusing on with this second fund . Where are the opportunities . Ourt is a validation of original a couple of years ago. When we invest without company invest that company, we for the longterm, it takes up to 10 years to build the company. We are humbled by the interest from the investors. The problem is we have the opportunity for a venture firm that is focused on the digital lifestyle. This focus on new, Digital First brands a are , investing the way we lead our lives. There are different lifestyle segments from fashion to food to beauty to wellbeing. Everything is changing. We are looking for those founders who have a sense of what people want, who are Building Communities in unauthentic, in an authentic, organic way, and where we can help them build business. Caroline you will be watching. What level do you see yourself going at now . This is bigger than a c brand. These numbers keep getting bigger each time. Were not dogmatic about being the first investor. We want to back the best founder in the segment. This is where we can see a big opportunity. Caroline how are you seeking these founders out . Data,k at our tools signals. These days, using social media you can track and measure customer love with the number of likes on instagram and twitter. At the same time we are very , founder centric. We like to see passion, we like to see emotion between consumers and the product, service, or brand. We combined both art and science and eventually our business is , about making decisions much later. Its not black and white or it black and white, it is always gray. Caroline last time it was unilever, is it institutional money . Is a global money . The bar to back us two years ago was very high. Even to our surprise, the Investor Base was very institutional. People understand the venture business. They came from the u. S. , from china, and they chose to back because they thought we were offering something different. Caroline coming up, there has been a slew of tech ipos as the u. S. Market returns to form. We look at how they are faring and measure the outlook for the next crop of Tech Startups waiting to take the plunge. And alibaba has a new Smart Speaker. Compete with the likes of amazon and google. Who else is in the race to own your home . We will discuss that next. This is bloomberg. Caroline initial Public Offerings are ramping up in the u. S. Ipo activity is up 243 compared to 2016. Globally, it is up 96 . This comes on the heels of blue aprons lackluster debut last week. And the more Successful Listing for the berlinbased delivery hero on the stock exchange. What does this mixed bag create for the remainder of the year . We asked analysts. It does give me a lot of encouragement. As we have seen with other types of things, we are more insulated in increased valuations and decreases as well. When companies have gone public and listed, they have been through extra rigor because there has not been this enthusiasm that is unchecked like we see in the states. , last year, even though numbers listings, we had offerings there were more resilient than listings in new york. I do think it bodes well. We are going to see a lot more coming from financial services. I think there will be other sectors as i was saying earlier. Maybe not so much ecommerce, we will see other sectors coming into the public market. Caroline your take from the slightly more meager blue apron . Has that shaken the rest of the ipo market . Or do they look across the pond and see how its faring in germany . Maybe blue apron is a oneoff . I think im a little more pessimistic. I do agree that there are many sectors like financial and software that are more conducive to ipos. It is up this year, but at the same time, we are below where we were a couple of years ago. The industries that are hard, i think those are going to be facing greater scrutiny. What is going to be a test is quantifying here, because when you look into it, are they going to go direct . Is the game going to change . These are things we dont know yet. Caroline talk about the game changes. We saw snap change the game. That is another company that james analyzes. They changed the game in terms of keeping all the power with the ceo. Then not raising any more money, just coming to the market. What do you see from companies coming through . I think this next generation of companies that started with google when they came to market and zuckerberg when he brought facebook and maintained the control there what we are seeing is a huge appetite from the market for really solid Tech Companies that have fundamentals. People are clearly willing to concede other measures for publicly listed companies in order to get value in the business. I dont know if spotify will put pull it off, but if dropbox comes to market and, it is looking like they will do them ang, and it gives incentive to list. We are seeing uber and other companies. Otherwise, they will raise money on private markets. I think control is going to be a big thing. Preservation of status, options, liquidity preference rights. How much information rights they might have to yield and disclose in the listing. But if they can stay within sec or other regulator rules whether , they have to be as transparent, they may share social media without having to go through pages of disclosures. Caroline how hard does that make your job . You have to go through snaps listing. You are a man who came out with right before anyone else did, but what do you see when you looking at the rules of the Game Changing . If i was in a private company, i would not what to go public. This based on everything we have seen. Its not easy. But at the end of the day, i dont have to analyze companies that are private. I just need anecdotes and information flow in order to assess the public companies. That comes from relationships and so forth. So it doesnt really change my life all that much. Caroline are you looking for dropbox this year . Can you give us any sort of names that might be coming to the u. S. Market . Redfin is looking to come into the market, but obviously, there could be some others. The one i am keeping my eye on the most is spotify. Caroline a new forecast says electric cars will outsell fuel powered vehicles by 2040. That is faster than previously estimated. According to bloomberg, battery plunge, turning the global Auto Industry upside down. This will also bring about economic turmoil for oil exporting companies. Coming up, how more tech employees are speaking out against Sexual Harassment. Hightech firms and startups are planning to combat this issue. And we are also Live Streaming on our website and twitter. Check us out at bloomberg tech tv. This is bloomberg. So we need tablets installed. With the menu app ready to roll. In 12 weeks. Yeah. The world of fast food is being changed by faster networks. Data, applications, customer experience. Which is why comcast business delivers Consistent Network Performance and speed across all your locations. Fast connections everywhere. Thats how you outmaneuver. So new touch screens. And biometrics. In 574 branches. All done by. Yesterday. Banks arent just undergoing a face lift. Theyre undergoing a transformation. A data fueled, security driven shift in applications and customer experience. Which is why comcast business delivers Consistent Network Performance and speed across all your locations. Hello, mr. Deets. Every Branch Running like headquarters. Thats how you outmaneuver. Caroline welcome back to the best of Bloomberg Technology. I am Caroline Hyde in london. The competition in digital speaker assistance is getting more intense. Alibaba has unveiled an echolike device. Fellow chinese internet giant tencent and samsung have each prepared to develop their own ai powered speakers. We spoke with mark gurman on the growing Artificial Intelligence entering intelligence landscape entering your home. Only for the first trial, 1000 orders, im curious to see how high the price goes, or even if there will be more t