Transgender students in public schools. Justices sent the case back to a lower court. A federal Appeals Court has said he Virginia School was probably violating civil rights law by boys bathroom by biogen biological means. I am Mark Crumpton in new york. Im Caroline Hyde in san francisco. This is Bloomberg Technology. Coming up, tech versus the travel ban. The rematch. The president has revised his executive order restricting immigration. How is Silicon Valley reacting . Plus, the future of h1b. Trump administration slams the brakes on the Critical Program attracting overseas talent. We will look into whether the snap ipo honeyman could already be over. First to our lead. President trump takes a second crack at his controversial travel ban. The new executive order restricts entry to the u. S. For people from six predominantly muslim countries. Iraq was removed from the first list. The language was amended to make clear visa and green card holders and citizens will not be denied entry. Those were many of the points the Tech Industry took issue with the first time around. Will we see the same opposition . At least one c. E. O. Is speaking out. He has tweeted barring people was wrong the first time around and still run. Joining us now to what happens next, bill danvers from the center for American Progress is joining us. He has worked on National Security for more than 30 years. Thank you for joining us today. Legal challenges, can there be any this time . The certainly can always be legal challenges. That is why we have so many lawyers. I think they have tried to eliminate as they as many as they possibly can. I am also certain there will be a hard look at whether or not this executive order can stand. People from Silicon Valley, people from elsewhere in the country are very concerned this is not good policy. Caroline not good policy. What do you think some of the key arguments will be . There have been those allowed in with green cards and visas. What key arguments could they display . Think the key argument is, why are we doing this . There was a leaked memo from dhs saying focusing on where a person is from is no indication of whether or not they are going to be a terrorist. There is an indication this will do absolutely nothing to deter terrorism. I think that was the whole purpose of the exercise of the eo. In addition, the fact he has made some of these changes does not make a big difference in terms of counterterrorism policy. That is what this is ultimately about. They say when people come from a particular country, it takes a couple of years being here as legal residents to become radicalized. Caroline and also, it could be driving even more upset and distaste from around the world. We are seeing a number of e. U. Countries saying perhaps they will shut down the agreement to stop u. S. Citizens being able to travel freely through the e. U. That has been the initial legal argument at the moment. Is this something you are expecting, retaliation worldwide . I dont know that there will be direct retaliation. It is bad policy. 1. 6 billion muslims in the world. The terrorist threat is something that affects all of us, including the 1. 6 muslims million muslims. We need to work with muslim communities if we want to counter the threat. Antagonizing muslims is not a good policy. Caroline getting to the heart of it from Silicon Valleys point of view and tech companies, could this new executive order make it harder to lure in talent . Anytime you put roadblocks into talented people coming into the country, you are risking the fact they will not want to come will want to go elsewhere and we will lose a good pool of talent to help our country continue to be great. Caroline do you have any expectation of where we might start hearing challenges first . Tonight. Caroline tonight from . Im being a bit facetious. I think there will be a careful examination. I think there has been an expectation the eo would look like the one presented. I think the white house telegraphed it would not be changed much. I think lawyers have been pouring over this. I guess the attorney generals in the state of washington and the solicitor general from the state of washington, i am sure they are looking at it now and considering next steps as im sure other attorneys general are as well. Caroline bill danvers from the center of American Progress, stay with us. This think tank is at the center of a controversy. There is one of at least a dozen progressive groups allegedly targeted by Russian Hackers in a new wave of attacks. This is according to two people familiar with the investigation. The hackers are looking for embarrassing information from the groups and trying to distort extort hush money. This was broken by michael riley. Fascinating story you put to us. Give us the extent of your views in terms of the groups of sort of money they are asking for. Attribution is difficult, but when we think the attacks are stemming from . It is an adjusting phenomena. One of the questions after the 2016 president ial election was, our Russian Hackers going to continue on some level to metal in the u. S. Legal system . I am not sure this Campaign Gives a full answer but it may get partial it seems there are at least a dozen groups hit by hackers from russia. They have had in mills and documents emails and documents stolen the hackers have looked for sensitive and embarrassing information and sent back examples with the ransom demand. The ransoms are not high. They are probably about 30,000 to 150,000. But they could be taking a page out of the 2016 residential election where you saw political groups have a lot to lose by having internal communications exposed in some cases. It is possible this might have some element to it, state sponsorship to it. Probably more likely is this criminala shakedown hackers are looking at to make some money. Caroline i want to bring back in bill danvers. It is alleged in the story your institution was hacked. The center for American Progress has said we were not. We have a statement from that particular business. I want to get your take. He worked with the department of defense. How concerning is it from a National Security perspective these hacks continuing from russia . Obviously, i stand behind the statement. I think hacking is an issue. Hacking is clearly an issue. It has been mentioned in the annual threat assessment he gives to congress the last few years. It is a concern. The good news is we have no evidence we have been hacked. We have no knowledge of it and no reason to believe it is true. Cap has never been subject to ransom. That is good news at the moment. Going forward, we need to be careful about these things. Im glad we have the Intelligence Community focusing on it. Caroline your story is a fascinating read. From a technology perspective, where are they finding the week points . , a mention a particular app microsoft one, being used . Is it the software allowing the hackers in . Increasingly, technology is an integrated part of our lives. We use it to share information and communications at all sorts of levels. Not just through emails but all sorts of apps that are designed to make sharing easier. It turns out to be a bonanza for hackers. In this case, the hackers that were part of this campaign have basically found that you can use things like sharepoint, a system that allows webbased sharing of documents that hooks into microsoft office, as one way to harvest documents. If you can get the credentials of one person that has access, it is a version of sharing software, you can present a lot of access to a lot of documents. You saw this in the fall and summer when the Source Foundation or the foundation associated with george soros philanthropies has a system designed to share among a lot of recipients of grants, people proposing grants, and the staff. All the hackers had to do was get one set of credentials to that system, and they were able to harvest a huge amount of documents. Caroline a wakeup call for many and im sure more focus on cybersecurity going forward. Great story on the bloomberg and online. Danvers and bill danvers, thank you. Onestop we are watching has to be snap. It appears some of the initial sign is wearing off. After surging more than 50 last week, shares fell 12 monday as analysts begin weighing in on truehat parent companys valuation. I have it ready. Analyst recommendations. Who of the seven analysts cover the company have a sell rating. Two neutral. Buyseven and not one single recommendation. Coming up, we speak to a leader in chinas booming peertopeer lending space. How the company will fare among healthy hefty regulations. That is next. This is bloomberg. Caroline the peertopeer lending industry is heating up globally. Title rapid finance wants in on the action and is said to be affecting an initial Public Offering in the u. S. Where it could raise 100 million as onulators impose limits lending to individuals and companies after default and fraud ran rampant. How is the company adapting to the regulation and how are they looking to expand . Joining us from new york is the founder and c. E. O. Of China Rapid Finance. Thank you for joining us today. 10 million loans you have put up. Something be advertising for the Investor Base here. Is now the perfect time to ipo . China has tried to work with the regulators and develop our strategy to serve a huge untapped market in china. There are about 500 Million People who do not have credit access, but they do have quality employment records, quality jobs. So China Rapid Finance has tried to leverage our secure technology to find a way to serve this huge untapped market. Caroline therefore, you have already made some success by the amount of lunch you have put out. You said you might be eyeing a Public Market debut in the United States this year. Could we see it come this year . Startup company, we are looking for all possibilities to fund our operations. We dont rule out any kind of possibilities. At this moment, we focus our efforts to develop our strategy to serve this huge untapped market because this market presents one of the largest untapped markets in the world. Caroline talk to us about if you did raise money, how are you developing that strategy . What is it you are pushing forward . Regional expansion . Developing the technology . Yeah. Not unlike in the u. S. Market where the Consumer Lending based on Credit Bureau information, using Credit Information to assess peoples willingness to pay, ability to pay, and stability. In china, we are opening the space not covered by banks. This population have quality implement records and good jobs. We are using the Data Available in the mobile and internet space such that we can form a prediction set using Predictive Technology to find good borrowers. Potentially, we can help them get a start on our platform and build up their credit history. We provide Affordable Credit for the large amount of those people who do not have credit access. Technology is the key. Caroline you have been doing fascinating work in terms of making sure, you have some novel ways of ensuring they are as credit worthy as you think. Counting toothbrushes in houses i even read. Talk about the Regulatory Environment because there has been a push back by the chinese government. Is this making your business more difficult to grow . Is this something that eases pressure and competition . You are right. Regulators really tried to help the sector to grow. They protected the lenders and also protected the borrowers. We are working very closely with regulators trying to develop a strategy to help the vast majority of borrowers, provide them Affordable Access to credit. On the other hand, we also work with regulators to provide good to Investment Opportunities for qualified investors. Working with both ends, working with regulators. Caroline maybe we might see you list in 2017 in the United States. Whatever happens developing the strategy, China Rapid Finance c. E. O. Zane wang, thank you for joining us. They are betting on growth in amazons groceries business. We will hear from him in a new report. I want to draw your attention to a new future feature on the bloomberg. You will not only be able to watch us live but also see previous interviews and dive into any functions we talk about. You can become part of the conversation by sending us instant messages during our shows. This is for bloomberg subscribers only i am afraid. Check it out at tv. This is bloomberg. One stop to watch, gopro shares tumbled to a record low in monday trading after Goldman Sachs became the second firm in two days to recommend selling the stock. Note, they cited the inability to attract a more mainstream audience. Shares fell to less than eight dollars a share on monday. The company sold shares for 24 apiece in the 2014 ipo. Grocery bet on its business should pay off according to research. Amazons growth in food delivery will allow the internet giant to go from the knife largest retailer to the Third Largest by 2021. Joining us from new york is john. Lackledge managing director a great read if youre digging into analysis. I love my Online Grocery shopping. We do it all the time. Ive done amazon fresh in the United Kingdom and in the u. S. As well. I am surprised how little dominance Online Grocery shopping has in the United States. It is a great point. In the u. S. , it is a 1. 3 trillion market. Retail. It is only like 6 online. Food and beverages about 800 billion. Consumables is 450 billion. Only about 6 penetrated online. What we saw in the u. K. Is a great example. We think it will continue to go up. In the u. S. About 12 of consumers bought groceries online. 20 of adults 534 bought groceries online. That older millennial cohort we think will drive Online Grocery in the u. S. Info in therietary u. K. , 34 of u. K. Consumers bought grocery online. Another third said they were likely to. It is three times the adoption in the u. S. I think that bodes well for u. S. Adoption the u. K. Is just well ahead. Caroline in the u. K. , the likes of tesco dominant. Then comes amazon. How much a piece of the pie will amazon eventually own in the United States . Your leadin was exactly right. We think it is the number nine player right now overall in grocery. We think it will be number three by 2021. The reason is they are attacking it in multiple ways. Number one is through prime. There are 50 million prime households in the u. S. , ine now, then amazonfresh addition to pantry and the dash button. They are also going physical with the amazon go store which is in beta in seattle now. They will also be doing grocery pick up. One thing we noticed last year, amazons overall Component Group 33 . Some of these platforms i mentioned, we saw accelerating growth. Amazon fresh added 10 markets. They were at 20 at the end of 2016. They started 2016 with 10 total markets in the u. S. , so it was a big acceleration. Prime now in 29 markets in the u. S. It covers about 58 of u. S. Gdp. We think about 5 million prime households bought goods on prime now in any month last year. The biggest selling items on prime now are groceries, personal care products, and household goods. They are attacking it multiple different ways which they should because it is so big. Caroline who will lose out . Walmart . Who will lose out . Yeah. Walmart is number one right now. We think they will be number one in five years. They have a huge lead. We just think amazon will consolidate the space like they are doing and other verticals. There is definitely a share shift going on, partially consolidation and partially some of the leading players will give share. Caroline john blackledge, always great to get your opinion and analysis. Thank you for joining us. Coming up, President Trumps latest executive order puts the brakes on h1b visas. What this means for Silicon Valley attracting top tech talent. Check us out on the radio. You can listen on bloomberg radio. This is bloomberg. Livestream your favorite sport at the airport. Binge dvrd shows while painting your toes. On demand laughs during long bubble baths. Tv everywhere is awesome. The allnew Xfinity Stream app. Xfinity. The future of awesome. Mark i am Mark Crumpton. You are watching Bloomberg Technology. Lets begin with a check of first word news. Iraq welcomed its removal from the travel ban saying it strengthens its alliance with washington. Iraq was originally included among seven muslim majority countries temperately banned from traveling to the u. S. Iran to callmpted for a reciprocal been on americans. Crownpoll indicates the lacron would be le pen in the final round. Bloomberg spoke to his economic advisor. Quite i think his political identity is change. When you get a mandate from the electorate, you have much more political strength and Political Cap