Which left 32 people dead. 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 caroline hyde. This is Bloomberg Technology. Shares neardobe record highs as the Software Giants beats rivals in the cloud. Santander narayanan tells us what he is still worried about. Googles android is serious about fighting hackers. We will see how the company has beefed up companys beefed up security efforts fared last year. And an ambitious expansion plan. The challenges it may be up against explained. First, it was a tragic wednesday for london after the u. K. Capital, my hometown, suffered its worst terror attack in more than a decade. We will bring you any breaking news throughout the hour. Now lets focus on the markets if we can. After the worst selloff in months, stocks are mixed in the session, but the nasdaq was the standout. Doolittleg in abigail in new york. Take us through the session today. Why was the nasdaq an outperform her . Outperformer . Suggests that suggests investors are consolidating, digesting yesterdays selloff. The dow did finish down for its in a row, the longest such losing streak since the middle of january. It appeared to be a bit of a pause. Investors are looking for cues as to what as to what could be next. The terror attack did not seem to have a major effect on the averages. We did see a little more reaction for the smallcap russell 2000, a growthier index index. Thyear it took a big leg down around when the multiple litan Police Metropolitan police classified this as a terror incident. The russell 2000 was down about of 1 . 10 of 1 8 10 as for why the nasdaq finished in the green, it came down to technology, being powered by apple, microsoft, and facebook. These are high data stocks. Often they will swing in more extreme fashion up and down. It looks like a little bit of a relief rally for some of those big tech names. Caroline it always comes back to apple. They are up more than one percentage point. Give us the biggest take away takeaway. Abigail apple has been a blessing in disguise for both of these indices. Apple this year is up 22 . The s p 500 is up only 5 . In orange, we have the s p 500. In white, we have apple. Its the biggest member weighting. Dragging on this is the Financial Sector. Since the fed last week, the Financial Sector is down 5 . If apple was not holding ground, you would probably see the s p 500 down more. Bullish investors have to hope that apple can hold ground. Apples strength is going beyond the s p 500. We have a number of the chip stocks up in a big way, including broadcom and cirrus logic. Skywork is one of the top stocks for the s p 500. Its going to be very important for bullish investors to hope that it will last. Technicals are a little bit overbought. Time will tell. Caroline great analysis, as ever. Abigail doolittle. Another stock we are watching, shares of snap gained more than then wednesdays trading, biggest increase since the initial week of its initial public offering. They recommended buying the stock. With james on monday after his buy rating was announced. With analysts cautioning against its nascent Business Model and competitive threats. Now to accompany out with earnings today, revenue jumped more than 40 , but operating costs are also surging. Iny face rising competition the mobile gaming market. The shenzhenbased Company Tencent is adding more space to brands on its wechat messaging service. Joining me is selina wang. It seems to be investment is where they are really scratching the cash. Selina they just barely missed on earnings and revenue. The cost of revenue jumped 64 from the year before. Investors are ok to take a hit on the Profit Margins at this point because they are seeing a lot of growth in other revenue streams. They are not just relying on mobile gaming. They have been expanding into Cloud Computing and mobile payments, into a lot of new content and the video business as well. Caroline when you look at a profit up 44 47 , most would dive at that sort of number, not be too upset by it. Give us a sense of video and cloud. Call, on the earnings management reiterated over and over again why video is just so important. There are pretty significant losses in that business, but tencent, like baidu and alibaba, are funneling billions of dollars not only to acquire content, but to make content. Video is such an important way to get make advertising dollars, get subscription dollars, and hone people into their ecosystem. Good content is what drives users. Like amazon, they know that content will drive more people to their platform. Caroline im fascinated by the new mini programs. This has to do with an app in the wechat platform. How much is this catching on . How much is it a threat potentially to some of the app stores . Selina the rollout got a lot of attention. It seems to be a threat to the Apple App Store in china. They did not give a ton of metrics. N the they did say the purpose is not to monetize, but to make it easier for users. They used a Bike Sharing Program as an example. You can scan a qr code. This type of ecosystem building has created more downloads then than in the app store and with the miniapp, because there is a high barrier of entry to get somebody to download something. They can access something , ifout leaving wechat, and, they really like it they will down and if they really like it, they will download, too. Caroline why would they divest of the ebook business . Selina tencent is such a behemoth. Kindleery much like the part of amazon. They sell electronic books. This is a really enormous business in china. The number of paying subscribers more than doubled over the past year to 2. 5 million paying subscribers. They see this as a significant business that could grow even more as a separate part of the company. It could bring shareholder value. In 2014, sources told bloomberg it was valued at about 2 billion. When it does go public, it will be very closely watched, especially since another ipo that was a little iffy. Caroline a few have been a little iffy or rocky in the first few months of trading. Bloomberg Technology Reporter selina wang. Baidu stock taking a slight hit today. Bloomberg technology spoke with him in may of 2016 and asked him about the Biggest Challenges facing ai. One of the things we are trying to think through is how to take our ai capabilities and offer it to other companies. One of the challenges of ai is there are so many verticals. It often takes skilled ai people, together with skilled they come together and work together. Caroline ng headed four of baidus research labs. His departure comes at a critical point for the company, which has been using ai to revive its key business unit. Coming up, the man heading the security charge for googles android and the message he is taking to keep hackers methods he is taking to keep hackers from your phones. Loombergtechtv. This is bloomberg. Caroline the worlds biggest operating system has announced the next generation of its mobile software, known for now as android oh. It is currently unfinished and only available as a development preview. It aims to give developers a leg up before it is officially released later this year. It will help conserve battery life and customization of the lock screen to allow quick access to features. Google is out with its annual Android Security year in review. The report looks back at 2016 and steps the company has taken to keep Android Users and their data safe. Among the highlights, updates were delivered to 735 million devices. Adrian ludwig joins me now with more. Its fascinating to pour through these things. How did you detect more of these harmful apps . What research have you deployed . Adrian we realized it was important to us to have visibility into devices out in the world and being used by people in realtime. In order to provide that birdseye view, we began to run security checks on those devices. We run about 700 million security checks per day across the ecosystem. Caroline phenomenal numbers. What do i do to avoid some of these more potentially harmful apps . Adrian the simplest thing you can do is be conscious of where youre getting your applications. Users that download applications from google play are much safer, almost a full order of magnitude. Its almost 10 times less likely to install a harmful application than if they were getting it from another place or another store. Caroline you work with many device manufacturers. Have you got a birds eye perspective on where geographically or regionally some of the weakness prone ones are coming from . Are you taking more control from these various carriers . Adrian its hundreds of carriers. Its an incredibly diverse ecosystem. Country by country, its often in the dozens. There are some areas in the world that are more of two more at risk. We see that sort of distribution. North america tends to be one of the safer places, as does europe and some of some countries like japan in asia. Caroline emerging markets, really. Its definitely an area we need to provide more investment across the ecosystem, providing protection for people who have not in the past been able to afford those protections. Android is about providing technology. We are making sure it is safe access as well. Caroline we were talking about the update to the android operating system, still in development. Will that have a keen focus on security . Adrian absolutely. There are a number of important security features in the new android, as there have been in the last several releases. One of the most important features that has received a lot of attention is encryption. We saw encryption rise almost android 7. 0 users, the release that went out last year. 100 million users have encryption turned on by default, including in areas that previously have not had access to that kind of prediction protection. Caroline we are speaking on i day whe on a day where there has been another terror attack. Weve seen the world of technology and cybersecurity collide in some ways. Where dowhere you see your role in cybersecurity and the terrorist threat when it comes to encryption . Seen thatve Technology Enables people to become closer together, communicate more effectively, and understand whats going on in the world, especially on a day like today, where we are very concerned about what weve seen and we are still finding out the information. That ability to share information is absolutely critical. Caroline what about when we see, perhaps, the leaks that we got from wikileaks, about what the government in the United States is able to do in terms of monitoring it is terrorist threats, but still wanting to be able to access our own devices, but not break the encryption. Where do you feel that tension lies . Is it is something is it something youre having to respond to . Adrian we have looked at those cases and we will continue to investigate to try to find out what we can know and how to improve those protections. We take it very seriously, making sure every user of Android Devices gets those protections. Caroline planes, air travel, not allowing laptops or products, whether it be tablets how is that something you have to work with, whether they can be made into explosive devices . One of the things im most proud of in the Android Security report is that our goal Information Available about what real threats are and where those threats originate. Youre pouring to a perfect you are pointing to a perfect example. We dont know exactly what the concerns are there. The more information that can be made available, the better security decisions we can make. Thank you very much indeed. Its been great having your opinion. Adrian ludwig. Capitalists have been showing their love for the u. K. Amid this tragic day. Firms about 2. 5nvested times more than was invested in france. The report mitigates concerns that brexit is hurting british startups fundraising efforts. Coming up, airbnb has seen growth in china, but its a look to pick up the pace it is looking to pick up the pace in the next few years we will discuss how big the payoff could be. This is bloomberg. Oline at t has stopped at t says it is deeply concerned ds mayts ads its a have appeared alongside Youtube Content advertising terrorism and hate. There were reports that some ads work running with were running with videos that supported terrorism or antisemitism. Airbnb is doubling its investment in china, increasing its workforce, and adopting a new name. Will all of this effort pay off . Lets bring in brad stone, Senior Executive editor at Bloomberg Technology. Tell us what it means. You have this fabulous book, the upstarts. You know airbnb inside out. This focus on china how important could it be in terms of driving growth . Its a massive market. I think you have a couple hundred million millennials alone. Its one of the largest tourism markets in the world. The opportunity there is large, even if they are not the largest player, and it doesnt look like they are going to be. There is a local player, as there always is in china. A big travel agency has invested in them. Homeaway has invested in them. Over 400 million listings. It in china maybe has is over 400,000 listings, and airbnb is at 80,000. They have a lot of work cut out for them. Was the ceo welcomed with love when he spoke in shanghai . Brad he was in india recently, appeared with Prime Minister modi. Theyve invested a lot in japan. I think he is welcomed as a pioneer, which he is. What hes bringing out to these parts of asia is something called the trips platform. Airbnb wants to give travelers things to do, experiences. When you go to shanghai, go to the traditional folk opera. Go see the figurines. That is powerful and an innovative idea, that you can give people often it things to do when they travel give people authentic things to do when they travel. Sequoia, an investor in airbnb, has a chinese arm. They said they would help airbnb moving to china, and they would help with the search for a ceo for airbnb in china. That still hasnt happened. It feels like this has been a long time coming. Brad this is the road that every u. S. Internet company must travel in china. We saw uber do the same thing and then retreat from china last year. There is a homefield advantage in china. People prefer the local player. The local player tends to integrate more with tools from alibaba. Airbnb has rolled out its own integrations, but clearly they have a bit of an uphill fight. They can be a second or even a third tier player and still succeed. In india where they are strong, it is still 1 of their overall business. These are all economies that are evolving. There will be more travel to and from these companies. I think airbnb is positioning itself for the future, even if they have started somewhat slow. Caroline thank you very much. Bloomberg technologys brad stone. A story we are watching for you, instagram is expanding into booking and reservations. The photo sharing application will allow you to set up appointments with the likes of by clicking the button within the businesss instagram profile. It will give advertisers a direct way to measure the power of the app and could pose a challenge to other Companies Like yelp. Still to come, adobe shares near a record high as the Software Giant unveils its latest cloud offerings in las vegas. Ceo Shantanu Narayen gives us an idea of whats next. This is bloomberg. Alisa im alisa parenti. You are watching Bloomberg Technology. British Prime Minister theresa may called the terror attacks today, quote, sick and depraved. Four people died and 20 others were wounded. Police say the lone attacker was killed after he stabbed an officer. Prime minister may says for now the Terror Threat remains the same and parliament will open as usual tomorrow. Londons metropolitan police said to expect additional armed officers across the city. Nunes, chairevin of the house intelligence committee, says president Trumps Communications may have been monitored during the transition as part of an incidental collection. I have seen intelligence reports that clearly show that the president elect and his team leasti guess, at monitored and disseminated out in intelligence. Alisa President Trump responded to the announcement that some Communications May have been picked up during government surveillance. President trump i very much appreciated the fact that they found what they found. News, 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. Im alisa parenti. This is bloomberg. Already 8 30 thursday morning in sydney. Im joined by bloombergs paul allen with a look at the markets. Good morning to you. Is 10 30 in new zealand, so trading has been underway there for about 30 minutes now. The index is currently off about 1 10 of 1 . The new Zealand Dollar is heading Holding Steady at . 70 u. S. They held the cash rate at a record low, 1. 75 , as all 16 economists surveyed predicted. They expect inflation to return to target over the mediumterm. The nikkei futures are a little weaker this morning. A sx futures are asx futures are about 1 3 of 1 higher. Keep an eye on . 10 tencent. They are planning to spin off their ebook services. Trial is lees resuming in seoul. Shanginese premier, leaky isthe chinese pamir,remier visiting australia today. More from Bloomberg Technology next. Caroline this is Bloomberg Technology. Im caroline hyde. Weve been covering the terror attacks in london all day on Bloomberg Television and radio. U. K. Prime minister may said the parliam