Religion. Global news 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. Im alisa parenti. This is bloomberg. Bloomberg technology, is next. Im selina wang. This is bloomberg technology. Coming up, amazon breaks the internet. How a problem in the crowd trigger the error message sweeping across the east coast. Plus, the final countdown to the just 24 hours to share pricing. We highlight the biggest investor concerns. And, getting his closeup. Its not a good look. How the uber ceo was caught on tape in a video had in that handed over to bloomberg. First, a massive internet destruction hit the east coast of the u. S. With Amazon Web Service to blame. Storage system used by nearly 150,000 websites. Joining us on the phone from seattle , Bloomberg News reportes. Reporters. Brownstone is my cohost for the hour as well as what is the latest on the development . What do we know about what caused this and why the servers are down . We dont know what caused it. We know it affected thousands of thanks using sites using this storage. And can be used to house data and manage web applications and Host Software that customers download from the internet. Amazon has been posting updates ofits site, which seems kind reassuring, but the language is interpretedcan be in many ways. They believe they have a handle on the real cause. Its a lot like talking to mechanic when he 16 your car. Thats the latest. They are working on it trying to fix it. They are working and keep trying to post updates. Awf is missioncritical for so many organizations. The cia pays amazon hundreds of millions of dollars a year. A day likey use today to reconsider that investment . No, i think today is understanding what the durability in the system is and there are ways to mitigate it and be multisourced. I think the shift to crowd and amazon is pretty inevitable, so the move continues, but its about figuring out how to become more robust. Selina what do we know about what types of customers were harmed . How damaging is this . Read, it looks i like it took out a wide swath of customers from all sectors. Over the years this has happened to amazon periodically. Maybe once a year Something Like this does happen. Does this affect amazon competitors . Have we seen microsoft or googles cloud go down with that kind of regularity . I dont know the actual stats. I dont know if theres anyone who seems more robust than the others, its just the best features. D amazon is clearly starting to win the business. I dont think many people will change their point of view. Selina this underscores just how important amazon is to the now internet society. Pretty amazing that some kind of glitch would cause such a widespread problem. What kind of repercussions is amazon going to face for having this problem . They need to be held to a very high standard. They will have some explaining to do to their customers and more reassurances to make, but you are right. Some of the companies affected include an online expense report tool, an online project management tool, and even like an automated email alert sent by a Commuter Rail system in chicago was affected by this. It was very sweeping ramifications of whatever internal problem they are having , creating a lot of havoc with their customers. Spencer, everyone today is checking the aws health dashboard. They posted this recent update. Objects retrieval and as our amateur amazon interpreter, what do they mean . Do they have to speak more frankly . Thats it right there. Im sure that means something to someone somewhere. Their Public Relations department and email must run on s3, because they have been radio silent today. It has been difficult to interpret this. If you read the statements carefully, theres no real clear answer on when this movie will be fully resolved. Selina thank you for the updates. We will be coming back for further developments on this. Now to barcelona, where the annual global world conference is underway. It is not just tech leaders in attendance. Regulators are there including the federal Communications New chairman,. Bloombergs Caroline Hyde caught up with him and began by asking for an update on the at t time warner deal. Limited to these particular effects, the parties that structure the transactions are the ones that came before us. Thats the reason i said what i said yesterday. Marketr give us what life there actually is. The market is expecting it. Na we going to see more and 2017 . This is a decision for the private sector to make. My job is a humble one, to review the papers before me and look at the facts presented. Reporter we spoke with tom wheeler, your predecessor at the sec scc. Fcc. He said that they needed four players for a competitive market. I wonder whether three will be enough. I cant say in the abstract is. The Market Structure what i do know is that the current wireless structure is extremely competitive. Started andc stopped, every single carrier announced unlimited data plans. Thats good news for consumers. Our focus is always going to be interest. The public if it is in the public interest, we would be more favorably inclined to approve a deal. If you see a combination with sprint, with that allow . I cant say in the absence of any particular papers. Reporter theres already a move to roll back some of the privacy , being where customers have to opt in to certain Internet Service providers to use data. The question is, is this going bigger or are we going to completely roll back now neutrality . That decision simply meant putting a pause on one of the rules that was going to come to affect on march 2. More broadly speeding speaking, theres a consent for the need for a free and open internet. That is since the dawn of the internet age. That is something consumers and Companies Alike take for granted. Western is what Regulatory Framework can we add up to protect the value and to providecentive infrastructure across the u. S. . Selina that was bloombergs Caroline Hyde with the fcc chairman. Snape is supposed to be one of the most successful ipos in years, when it prices after the market closes tomorrow. Unique share class structure could spell trouble for the snapchat maker down the line. We dig into why, next. This is bloomberg. Selina soundcloud is undercutting rivals spotted by and apple music with a cheaper monthly music Subscription Service. The 4. 99 subscription is half the cost of soundclouds Premium Service and includes access to songs. Red million the move is aimed at boosting revenue after the company warned in january that it may run out of money without more paying customers. Music industry executive seiji their service will draw in pricesensitive subscribers and help them compete with youtube and free services. Snap is poised to price shares with its ico ipo after shares on wednesday. It will be the biggest social media listing since twitter went public more than three years ago. Snap has a unique shareholder structure that may raise questions for investors in the long run. Alex barinka has more. Reporter snap has most of the ingredients for a successful ipo. App,ior social media failed growth, and investors who have not had opportunities to buy into new tech stock. But a blockbuster ipo has not guaranteed a great public stock. Theres a growing risk between shortterm excitement and longterm concerns about snap. The company will need to prove itself past listing day. It is still losing money, and user growth has recently slowed. Is there a sign it will not be the next thing . The unique structure can mean the stock is in for a bumpy ride. We have seen stocks with great ipos go sour. Twitter, took about a year and a half to lose expectations. Revenue growth stalled and profits were nowhere is it. Insight. Zinga, thewas onetime darling of the gaming industry that failed to come up with new hits. In snaps case, if investors lose hope, the snap stock could fall faster and further than its. Investors have no voting power, no ability to nominate directors, and and executive pay. If they are unhappy, the only recourse is telling selling. If snap can read up user growth and increase profitability, shareholders can enjoy returns the likes of netflix or facebook. Selina lets get more on the snap ipo and rudder tech ipo landscape joining us from. Barinka. Is alex great package. You outlined a lot of investor concerns. If you look at the current price salesps ratio is almost double facebook. On top of that they dont have profitability, it is a new business model, and investors have no voting power. Dont you think this is a little too lofty . Reporter this is one of the things that investors are talking about. But when i think about this, im starting to think about it in two separate groups. You have people who will want to buy into this deal because they and to get into the stock ride what is typical in the share price immediately after the ipo. They will probably be a little less valuation sensitive than the longterm investors, which is the other group of people who would consider this deal. For them, you look at the timesnd, about 19. 7 forward revenue for the next 12 months. That is double facebook, and more than what facebook went public at and around 19. 4. Twitter went public at 13 times forward revenue. Longerterm holders were saying, im buying this at the ipo price, and i think i will have it for a while, they will be the ones who will be probably considering whether or not the actual under mental fundamentals of this business and Growth Opportunities justify the valuation of as much as 18. 5 billion market value. Specifically, are the lack of Voting Rights giving any investors pause . Reporter not for the ipo. I spoke to one of the partners and general account council at value. He said it would not cause investors to boycott the deal initially, but going forward, if this stock go sideways, investors have no recourse great if they buy something investors dont like, they will not be voting on that acquisition. They cant nominate new directors. No say on pay if they think the ceo and friends are getting paid to much for not doing enough. You have to think about it directionally. If the stock is going up and to the right, folks are not going to complain. Sour, because theres less of a say with the voter, they are probably just going to exit, which could inject a little more volatility if there are negative wheeling and dealing going on. Selina i quickly want to touch on the product. It is notey prove just a one hit case among one demographic . How can it avoid the twitter conundrum and show they can expand the offering . Reporter when i spoke to people who are bearish on the stock, that is the problem. You have the snapchat app here. On the roadshow, the Management Team has not given a lot as to what comes next when you think about. The different phases of the company, right now they are still kind of in monetization mode. They are still trying to make money. Revenue is a new thing for them. Theyve only been making serious money for the last two years. Next will come profitability. Thats the concern that it might be a onehit wonder. Executives will tell you they have been able to capture the millennial audience. We are doing well in stealing and dollars for advertisers. That is the trend you will have to bet on that they can come up next, outside of spectacles, which hasnt really sold or made a big impact. Facebook had a rocky couple of months after its ipo. Twitter has had a rocky ride. What can social Media Companies learn from the trajectories of those predecessors . So much of the learnings i found from the twitter priest peace is the framing. Twitter is anchored around news, and thats a big opportunity. Politicalt around the cycle doesnt seem to accrue in the business value. They need to think about consumer oriented. Selina alex barinka, thank you as always. Ryan is staying with brad and myself. Coming up, what the future will look like in an increasingly automated world. We discussed, next. This is bloomberg. Selina u. S. President trump is preparing to give his first address to a joint session of congress. Hes under increasing pressure to answer color core questions about how he will deliver on his key promises, including the pledged to bring back manufacturing jobs to the usa. Here to discuss automation and energy is brian farber, partner at what Point Ventures. Trump has spoken on twitter about ringing manufacturing jobs to the u. S. , but he has not given a single tweet about automation and saving costs, and potentially also cutting jobs. What is your take on that . What is the future of working looking like . We talked a lot about ai and Machine Learning making big progress. You are seeing robotics and ai make a big impact. Jobstudy said 13 of the lost was to trade, the rest to automation. Futurencerned about the of what that means for workers, to put lot of American Workers back to work. Is there a risk of the possibility of hastening the advancement are automation . Companies will naturally try to cut costs. 100 . You are hearing a lot of ceos committing and investing in and in the u. S. The cost structure will force more automation. Selina theres even further pressure coming from proposals that will put a tax import, even more pressure to make goods at home. Is going tothis create more jobs are less overall in the u. S. . 1. 7 million truckers, 1. 7 3. 4 million retail jobs in the go, all those guys are going after this hard. You will see more and more automation hit the really big sectors of some of the largest employers in the u. S. What opportunities . Technology has always had the promise to be a will to connect people in different geographies. Technology can connect people in different coasts to the rest of the u. S. Lot at what the opportunity around technology is to put people back to work that have skills, but not in the area they live. Flex, akind of related, company you are interested in. They call themselves the airbnb of warehouse logistics. About thisl me more company and how it might fit into this overall landscape of changing retail and logistics . Amazon is creating a tectonic shift, pushing everyone to be very consumer focused. All of the retailers and shippers and logistics groups i think he about how to be more agile. Flex is a solution to be a will to be more ad have more distribution solutions. We think its part of a broader trend just like airbnb and amazon, major shifts pushing people to rethink business. When you invest in these companies spurring automation, perhaps leading to the loss of jobs, we are in this unique climate. Do you worry about the optics of that and the president might make one of your companies a target . Let me try to focus on is where there is displacement of jobs, it creates new jobs. Dishwasher of the was created. How long that you are optimistic the economy can recover and create new opportunities . That is the hope. Have we seen evidence . That they great example. Newton technologies, there were jobs that you never would have thought of before. The question is how quickly you can replace those jobs in the regions. Selina great. A reminder you can watch the president s speech on bloomberg tv, bloomberg radio, and bloomberg. Com. Special coverage begins at 9 p. M. New york time. Coming up, another controversy a Top Executive resigns after just a month on the job. More details, next. This is bloomberg. Alisa im alisa parenti. You are watching bloomberg technology. Russian president Vladimir Putin says moscow will not support new sanctions against syrian president bashir alassad. He made remarks following a state visit occurs asked on kurdistan. He says any new sanctions on syria would undermine trust in the negotiation process. A new unicef report warns about a human tragedy that could last generations, if action is not taken against the abuse of refugee women and children along the mediterranean migration route. Most children interviewed complained about violence , harassment, or aggression at the hands of adults during their journey. Nearly half the women and children reported sexual abuse. Britains brexit minister urged his cabinet colleagues to prepare for the possibility there will be no divorce deal. Its an unlikely possibility, but he said its important Government Departments understand the challenges of negotiating an exit. The imf says irans economy pulled out of a recession after the nuclear deal. The agreement cleared the way for the country to sell oil on the international market. 7. 4 , mostly due to oil. The imf says uncertainty over it intersection could over future sanctions could cause physical trouble. Than 2600s by more journalists. This is bloomberg. It is after 5 30 p. M. Here in 6 30 wednesday morning in singapore. Im here with david inglis. David good morning. When we look at markets today, it is obviously going to be very quiet the next tree hours are so when you look at the markets opened at the moment. When you see some risk ahead of the opening later on. There is ample room for disappointment. Thesek about how they each can be. A lot of people in asia are this. G at you look at futures, futures for where we, japan, all could see an underwhelming start to the day. Im also watching currencies very closely as well. It is so far a strong dollar story. All this could change. Expected these charts and more a little later on. We are just sitting on the fence waiting for the speech. Im david ingles in singapore. More from bloomberg technology, next. Selina this is bloomberg technology. Im selina wang. Amazon Web Services Says it has revolved resolved the data storage issue. The outage appeared to have started around 1230 eastern time. Data system is used by nearly 150,000 websites. Thats another development out of uber, which has been facing battles on many fronts. Senior Vice President of engineering resigned after the Ride Hailing Company learned of a Sexual Harassment allegation from his reviews job at google. He denied the allegations. Video shows the ceo writing in uber, talking about the companys culture, as well as getting into an argument with the driver. Brad, lets start with you. What exactly did this video rev