Lawmakers have begun debating whether to approve the government plans for leaving the eu. Davies says any rejection of the timetable would destroy public trust in politicians. The Supreme Court could order Prime Minister may to seek parliamentary approval for her plan. Global news 24 hours a day, powered by 2600 journalists and analysts in more than 120 countries around the world. You are watching bloomberg. Lets get a check of the Market Action right now. We are seeing hong kong with afternoon trading, down. 7 . Playing catch up to the Global Equities sell of, despite the fact that other benchmarks in asia are seeing a rebound. Caroline i am Caroline Hyde and this is bloomberg technology. Apple sales are at an alltime high. We will crunch the best ever revenue quarter for the tech giant. The ceo breaks down the most ambitious move yet in a bloomberg exclusive interview. Tech rebellion against the travel ban. We will break down a potential thecon valley plan with pipeline to challenge the administration in court. First, to our lead. Apple shares popping in afterhours trading. When you look at the bloomberg, you can see just two Percentage Points higher, reporting a first revenue revenue of 78. 5 billion. Also encouraging investors, the beat on iphone sales. Apple pulled over 78 million iphoneecause of stronger se 7 plus. 18 Revenue Growth year over year. Julie, great to have you here. Thank you. Caroline the numbers are pretty share, the share actually rising. And the cfo told me on a call that it seems to be about the iphone 7 plus. Absolutely. Iphone sales make up the majority of apples revenue. While we look at global smartphones subscribers, that number will grow about 50 over the next five years. That is a big number. Apple makes a lot of money selling phones, unlike some of their competitors. When we look at the markets they are pursuing, the middle class and upper class, the growth curve will not be as high. When we take that into account, it is doubly impressive. Caroline speaking to the cfo, but also came across was that they are doubling down on the services area. They said they will double the size of this particular unit, which on a standalone basis is as big as a fortune 100 company. They will be doubling that over the next four years. How much do you think services is the right bet for apple . Absolutely the right back. Until they start selling other appliances, like refrigerators or cars. There is a lot of upside in the Services Business. There are also some areas, like apple pay, which has a relatively low consumer adoption of 11 in the u. S. Caroline it was interesting. When you are looking at the other products they sell, there was a slight slowdown. The cfo, trying to say, ipods are included, the apple tv. But do they need another product . It looks like it is selling relatively well. I dont know that they need another product. If we look at the adoption of smart watches today, they are only a fraction of total wearables sold today, but they will be about 40 of wearables sales in five years. There is a lot of upside in that market as we move from 18 of u. S. Adults owning a wearable device in four years. Caroline what struck me is the lack of a mention of china this time around. The cfo said brazil and turkey are going really well. China does seem to be a slowdown area. Are they write to be focusing on china, or switching attention to india a little bit more . They want to cell phones profitably and you have to look at the markets where there is the most upside. In the market like china it is crowded with lowcost android producers. I think they have done well so far. But not where their biggest growth will come from. Caroline would india be the right country, given the average earnings power in india is less than china . Do they have as much of an opportunity in that country . There is more of an opportunity in india. If we look at the growth of the smartphone adoption in china, that will grow 50 in the next five years, but that will double in india. If you look at these markets, the middle class and upper class are very large market, even thicker than the u. S. A lot of upside. Caroline a lot of upside. We will have more upside from you because he will be sticking with us. We are going to be sticking on apple, our top story throughout the show. Back to another story that continues to spark controversy. Donald trumps travel ban. Tech titans are continuing to react. Amazons ceo says his company is working handinhand with state officials. On top of that, reuters is reporting a group of Tech Companies are planning to meet to discuss filing legal documents in support of a lawsuit challenging the ban. Among the companies invited, airbnb, netflix, and google. Joining us is mark bergen who is covering the story. Are we likely to see a concerted approach from the tech giants . I think so. This has touched a nerve in silicon valley. It is likely they will Work Together. A risk for the one country to stick his neck out without the others. The trumpet of restoration is retaliatory on companies. They are also try to work with him on issues like taxes and trade and antitrust. Caroline you said touched a nerve. You were reporting on how much this has touched a nerve. They were demonstrating all of yesterday as well. Right. They were over 2004 is that came out. They walked out of their offices among eight different offices around the country and the world. We had the ceo of google that spoke in support. Sergey brin shared his story. He came here when he was young as a refugee from russia. I have talked to a lot of people at google who were inspired by what sergey has done. He was at the protest at the San Francisco airport as well. Caroline this is not the only potential executive order they are going to be pushing up against. There will be the one we are expecting, the move on visas that are crucial for the tech giants. What are the other policies that could see tech giants Work Together on . Potentials a proposal about visas affecting immigrants. The bigger issue here is a lot here are in d. C. And unclear about what the administration is going to do on a number of policies. Right now they are sort of on their toes, anticipating the next move. Caroline absolutely great to have you on. I know you will be covering this analysis from a google perspectives. The new republican head of the federal Communications Commission declined to say whether the agency will enforce ruleet it probably put in place by democrats. Secnew chairman says the moves toward granting relief to smaller providers. Beyond that, he would not comment. We do know that he is a longtime critic of the role. He dissented in the original vote. Coming up, an exclusive conversation with stewart butterfield. How he plans to fend off larger rivals, like microsoft and facebook. And what he thinks of the travel ban. And all throughout the hour, we continue to follow the apple earnings. ,hares remaining up 2. 5 trading on an alltime revenue record for the iphone with more than 78 million sold. Terminal users can follow along instantlive blog for highlights and analysis. This is bloomberg. Caroline slack is taking aim at the corporate sector. Aimednching a new product at corporations and other Large Enterprises. The Company Hopes this will make slack easier to use on a larger scale. This as competition from microsoft and facebook continues to ramp up. Joining us is slack ceo, stewart butterfield. I hear the launch was brilliant today. What exactly are you hoping to achieve with this new platform . How does this change work practices . Slack has been around for a few youyears now. We work well obtains. Once you get into the thousands, people are only metaphorically one team. What you have is this interconnected tapestry. It is teams of teens and they are overlapping and interconnected. Grid is a new product for administered is to gritty structure out of slack that mirrors the shape of their organization. Caroline it is a fresh approach. How will you ensure that the tech heads of businesses will adopt this fresh approach . Slack has got into companies by stealth to a certain extent. It has very much. It is interesting. A lot of the products we made where shaped by conversations we had with cios. At our launch event today, we had jeff smith, the cio of ibm. The vehicle to establish a great the kind of cultural change that executives want to see other companies. As often thinks of a cio enabling technology. Jeff is a good example of somebody who is opinionated, who has a point of view, who has a mission to drive agility. We have talked to dozens of people, has of i. T. , cios, other executives, managers. Literally, thousands of individual users in shaping this product. Caroline competition is fierce. A lot of startups are focusing on the opportunity. We just had an event here from dropbox. Is it microsoft, google that are the big challenge, is it the startups . Are you collaborative . We try to take a collaborative approach. The regard ourselves as having very few direct competitors. The number of Software Product categories has proliferated like crazy. We have Specialty Software for recruiting, for finance, for i. T. For sales. We will never be able to compete and create products that work in all of those functions. Instead, we provide a connective tissue layer throughout the organization and whatever products our customers already use, we want to make the experience better. Pbox, we wantro to make their experience better. Caroline you say collaborative. What is your vision for slack . Is it your vision to be purchased by microsoft . Would it be to stay independent . I can tell you this. Myself and the three other cofounders of the company, we are all part of the original team that made flickr. We were acquired by yahoo . We had that experience once. We are clever and we work hard. However, we also have incredible planning. We brought the product to the market when the world wanted it in the Capital Markets were looking for Something Like us. If we ever wanted to see how far we could take something, this is the shot. We will never have this opportunity again. I would like to see how far we could take it. Caroline i am sure the rest of the market will agree. The Venture Capital on bloomberg llp is an investor. Butterfield is staying with me. We have to get your take on a top story. President trumps immigration order, that is still ahead. Moments agod just that the Companys Services business, which covers itunes, apple pay, will be the service of a fortune 100 business in 2017. Of a fortune 100 business. Here he is with more. Tim cook it was our best quarter ever for services with almost 7. 2 billion in revenue. Customers broke alltime records during the holiday quarter, including 3 billion in purchases in december alone, making it the app stores best month ever. Caroline a story we are watching. Sprint shares, popping as much as 5 in trading today. The wireless carrier added more mobile subscribers than expected in the fourth quarter. Sales also the estimates because of data offers. Sprint is the fourth largest wireless carrier in the u. S. And has completed two years of subscriber growth. President trumps ban has been fueling outrage across the tech sector. Many have been condemning the actions and supporting the immigrant employees. Slacks ceo is one of them. Thing, because it is right over the weekend. Stewart is back with us. This is a passionate respective of yours because you yourself come from polish heritage. What does it mean, not only for you as an individual, but as the head of the company . It is a disruption for us. Its something that could in a longterm, have impact our abilities to hire. Today we have employees who are affected by this and some who are potentially affected. We cannot tell you because of the ambiguity. Were taking care of that. To me, this is not a business issue. I also want to make sure that i e this isthat whil potentially a problem for Technology Companies in particular, it is in the background of a lot of changes. We were on the verge as a country of being able to have a real conversation about criminal justice reform. I think we will look back at 25 years from now, as a critical moment in Climate Change and we are doing nothing. There are many other issues that i think are in the background very much as we talk about this one issue of immigration reform. Not immigration reform, the travel ban. The thing that i am not sure that people understand is, thisll not make us safer. This will make us angrier. And the people who are refugees are by definition, often running for their lives. Caroline inside, you flew in to San Francisco. I watched your video on twitter when the demonstrations were happening. This is not only an issue of a travel ban. Hit ift else could also we take a back to business . , thatis the hib visas could be looked at as well. How worried are you about the talent pool . This company was founded by myself. I am a dual canadian citizen. One brit, one canadian and a russian citizen, and another american. People from all over the world. From china, india, pakistan, from the u. K. , from france and germany and italy. Many of these people come in on h1b visas. I understand the concerns of people who feel this has the potential to displace american workers. These are people who are very well compensated and we are bringing them into the country to improve the overall talent have you been concerned by the way in which tech giants have been acting. I think there is a lot of Corporate Tax reform. A lot of this is repatriation that would have happened anyway. We are having a discussion without this needless separation. This travel ban is impacting people who have families and houses and jobs. They travel overseas and they want to come home, and they cant. People being asked to relinquish those rights in order to not be detained. So, there is no reason we had to do that to get Corporate Tax reform. This conversation is entirely independent. Caroline are you optimistic or pessimistic . That is almost the problem. I am fundamentally an optimist and if the pendulum will swing back the other way, two steps forward, one step back. But it is hard to know whether you should be one or the either because the degree of uncertainty is so great. Caroline thank you very much for giving up your time on a day when you have a crucial announcement. We look forward to having you again. Stewart butterfield, ceo of slack. And a story we are following. President trump has delayed the signing of the executive order on private security as the white house staff steps up attention to legal challenges on the other recent order of immigration. The trumpet ministration has not yet the Trump Administration has not yet determined when it can reschedule the finding. Rudy giuliani discussed the issue tuesday. As we go to the break, another check on apple for you as the Earnings Call continues. The ceo said just moments ago that the mainland revenue in china was flat versus one year ago. Apple is planning a Second Retail store in dubai and its first in singapore. We will bring you more details, next. This is bloomberg. Is 1 30 in hong kong. A senior japanese official has called President Trumps comment son the yet off the mark. Trump said japan and china play the money markets as americas expense. But the comment has been called totally inaccurate. The finance Ministry Says are to be policies deflation, not the currencies. South korean and sports rose for a third month in january. Exports rose for a third month in january. Up 11. 2 from one year earlier. ,mports also surged although the corresponding numbers one year ago had fallen sharply. Industrial production also rose in december. South korea lawmakers want to ensure no future president will hold as much power. Bipartisan committee is reviewing the constitution for the First Time Since 1987. Mass protests forced a president ial vote and the president was impeached. The committee should report this year. The Indian Government is due to begin the budget presentation, offering the First Official estimate on the attack of the Prime Ministers cash ban. It is too early for the minister to make informed decisions on the impact. The economic shock is still playing out. Global news 24 hours a day, powered by 2600 journalists and analysts in more than 120 countries around the world. Lets now get a check on the markets trading in the asian pacific. He was juliette saly. It has been a lot for investors. We do have the unveiling of indias budget. And wesex is up by. 2 have seen a little bit of strength coming from the indian rupee. We have the fed Chrystia Freeland meeting and we have had a lot of reaction to those announcements from President Trump earlier today, but generally, things are looking quite good. We do have a weaker dollar and that is having a little bit of an impact. But the yen has turned around. The nikkei is that bup by. 6 . The vichy motors is Mitsubishi Motors is a standout this year, saying they will return to profit this year. Nomura says mitsubishi is doing quite well. We are seeing some downside after the lunar new year, playing catchup to the global selloff. Over in australia, the asx 200 has closed higher by. 6 . We will be live from london at the top of the hour. This is bloomberg. Caroline this is bloomberg technology. Is appleop story reporting its fiscal firstquarter results. Shares are continuing to rise in afterhours trading. Analysts. Now with the company will have alltime revenue records with 78 Million Units sold, coming up almost 70 of the companys revenue. Also encouraging investors, the