2018 while the new stadium is under construction. Global news 24 hours a day powered by more than 2300 journalists and analysts. Im alisa. This is bloomberg. Bloomberg technology is next. Cory this is Bloomberg Technology. Coming up, snapchat wins on wall street but the real reason analysts are bullish. Hatsapp creating a backdoor for intelligence officials. The new debate over privacy encryption. A self driving car accident grounds ubers autonomous cars. Some are now back on the road. First, some investors had a rocky start for the failed Health Care Vote on friday. We have abigail. There was a lot of pressure over the weekend. What do you see . Abigail the worst open for the s p 500 for the year. The worst week for stocks last week. Some bearishness. Some expectations of seeing strong selling. We saw some recovery. The nasdaq dipping into the positive territory. At the end of the day, an unchanged close. The dow down eight days in a row, the longest bearish street since april 2011. Still some bearishness there. As for the nasdaq and why the tech heavy index finished modestly higher, it largely came down to biotech. It was up more than 1 on the day being helped by big names. These stocks, companies are not really affected all that much by the Affordable Care act. The fact the republicans failed to get that bill through not so much of an impact. These stocks rallied last friday and rallied today. A little bit of a relief over all. The big story related to the markets, is it coming to an end . Im talking about the big rally we have seen out of the election trumps that president policies will stimulate the economy. When you look at the fiveday chart of the nasdaq, it is down about 1 over that time period. It could be the start of a reversal of the trade. Only time will tell. You can see that jumpy ride in that chart. That really bearish open as well. Cory watching the open this morning. It is interesting, even in the and the nasdaq not participating as much because the suggestion is the administration will not get done the things it wants to do. The infrastructure and tax cuts as as hard to pull off health care, maybe changing of drug pricing will not happen. Abigail only time will tell. The uncertainty that the idea, these policies, i think that is creating some of the volatility. Not the volatility for the nasdaq. Here are some of the biggest losers, including intuit. There were not really any fundamental causes that we were able to determine. Down from a cut of goldman sachs. It could be a more difficult tax consumer environment. The big winner, the biggest alphabete, out o shares. The concerns that big advertisers were pulling ads from youtube. There were many alphabet supporters i. It is too early to panic which is the early consensus. Alphabet rallied on that defense from wall street. Cory our friend having similar comments that it is not a big deal. Thank you very much. Spain witshares of snap closed p 5 . Snapchats parentdeal. Thank you very much. Company with a cooler reception from analysts. Todays analysis comes from firms that received Investment Banking fees from snap. Maybe a coincidence, maybe not. Analysts, one of the cheryl. D talk to me about your research and what you saw. You want to play good cop and bad cop . Jason we came out with a perform rating. A range of 21 to 26. We can work up to 26 but that is not enough for us to give it an outperform rate. Cory what do you think investors do not hav adequately appreciate . Jason clearly, the stock has performed well since the ipo. Investors like it. It is a very interesting company. Yearolde 18 to 24 using the platform. There is a question, can you get everyone else . We have put that in a report that we think is insightful. Really, if you look at the history of tech ipos, it comes down to the initial ipo. Yet there is a doubledigit gain today, we think investors would be better off waiting for lower prices. Cory you wrote a great piece looking at the analyst community. They trying to be more bullish. Some great numbers showing the average target price is much higher than the underwriting price. What else did you find . Cheryl it is interesting that now since the dotcom we have this pattern that sometimes pops up. The underwriter banks seem to be more bullish. Underwriter, the analysts of the underwriter firms were equivalent. That compares the Something Like analysts that were unaffiliated. That is a pretty big diversions of opinion. Cory to be analysts that were unaffiliated. Fair, there is a chinese wall. Tell us how that works from your side, your perspective. The underwriting. Jason those firms who were dissipate in the deal do get to, to talk to the management. They get more access. As a result, they may have deeper opinions to get access to management. The road show works, the Company Meets with the big investors and they dig in. They dont meet with the sell side who are not involved in the deal. Effectively, the firms who initiate who were not involved with the deal have a less of an opportunity to learn. Cory i wonder if it is sitting in your chair and dealing with those rules. Jason the rules all the rules. We get the perspective, the questions. S we do our own research. We do survey work. We go to the company, we ask them to clarify things. Sometimes they can tell you and some things they cannot. Cory when i was on the buy side, they refused to meet. Reviews toler and meet with management. Not such a bad guy. An interesting thing i thought about. I would be with management all the time. Is ayou are describing long history. I wonder when you look through the notes if you see some thoughtful analysis . shira snapchat, send people can look at the same suspects of the company and come up with 10 different conclusions. You are talking about a company that iscompany and comew way for people to communicate and become addictive for that young set of people. This isissue though is a company with a track record of modernization. Less than two years. Negative gross margins. A Business Model we have not seen before. I dont really fault analysts for having different views looking at the same set of facts. The people who are bullish are doing so kind of extrapolating growth either in their ability to generate ad revenue for the user or their ability to go from young adults to a more mature audience. Cory you talked about the bill accelerate it. Describe that. Accelerate it. Describe that. Jason this is a way to buy. Automatically. Up until now, it would be working with the company, with the ad agency. A lot of effort. It allows you to basically make an ad and the computer decides who is your target. If we look back to facebook, it took several quarters, it exonerated the growth from 20 to 80 . When twitter launches their api, they saw benefits one quarter later. It stabilized. As far as we can tell, it is still early. They were probably not see a significant benefit the First Quarter which is why they talked about revenue being down and dollars sequentially, but we are very excited about what happens. Remember, with facebook launched, it was a direct response. Direct response is typically seasonal. Snapchat went right at bra nd. Without direct response is typiy seasonal. Api which tends to bring in direct response, that is the reason to be excited but we dont know the timing yet. Managingon joining us, director. Shira, thank you very much. Coming up, we will talk to roland bush and the rolling tech giant going digital. All episodes of Bloomberg Technology are live streaming. Check it out on bloombergtech. Tv on theall episg technology are live twitter. This is bloomberg. Cory siemens is betting big in the u. S. Engineering day. The company is empowering his push to add to investments in the u. S. Since 2007, the German Company has invested 10 billion in the Software Company and pharmacist promise another 2 billion in hiring in the u. S. Over the next three years. Siemens global cto roland busch in princeton, new jersey. Talking about how siemens will look different from five years ago and five years from now. Isand what we do see zation is changings changinil the sector. It is changing the way mobility is going. Flexibility and markets. This is where investment goes. Cory when you look at the possibilities here, i think one of the most interesting things in this era of technology is when you look at the dot com era, that was about technology for technologists. Everythinging throughout the enterprise. Are there particular areas that you think this new digitization will change siemens Business Operation . Roland it is the whole nine ts. Ds with the market let me give you an example in manufacturing. We drive productivity and manufacturing and your ti me in the market. Creating a digital twin with their products. You can assimilate the product as well as how you manufacture it. Cycles and then when you are ready you can tou yourit devices. You can skip the samples in short your time in the market. This itou your devices. When digitization and domain teach each other and great value. Cory is rapid prototyping about that 3d printing . It is very interesting. Roland absolutely. Rapid prototyping and 3d printing is something that helps you. If you want to make a quick trial on what you are doing, you can do that. Whenit helps you also in the wn how you prepare for steps. In some parts, and we dont talk big volume, but some special parts you can design in a new way to use 3d printing. That opens a new area for some can change the design and increase the efficiency of a turbine. Cory let me ask you about robotics. Talk about the importance of robotics in siemens processes. Roland robotics, we dont talk rubberhe heavy lifting which you see currently in autommotive. There are standards, visionary capabilities. It would replace a manual work. This is what we talk about when we talk about an autonomous republic. They would go into the manufacturing process and drive productivity there. Access with our automation devices, the software as well. We are working together with customers to help them really drive and optimizing the process lines. Cory it seems like we are seeing rapid innovation. It will not be roombas running around. Roland busch, thinking for joining us. Another week, another controversy in uber. Backlash from recent crash in arizona puts the companys self driving program on hold. Check out our interactive tv function. You can find it on tv go on bloomberg. Arizona puts the companys self watch old interviews o intervier stocks. This is bloomberg. Watch s futuristic new Grocery Stores not ready for prime time. The cashier fofree store has been delayed. The store called amazon go uses machines and cameras to detect your cards to charger amazon account. It was supposed to launch at the in of this month but after beta testing, there are some trouble keeping track of more than 20 people at a time and had trouble to track movement on shelves. Ubers self driving cars are back in the streets of San Francisco. A crash in arizona but the Testing Program on hold. One of the self driving suvs was involved in a high impact crash when another vehicle caused the accident. It is another controversy the company is dealing with. Eric is getting used to dealing with these controversies. This seems pretty freaky initially. Even with a person in it, it is disconcerting. Eric pretty terrifying to see a self driving car tipped over in the road. I think anybody who saw that was definitely nervous. Now as we have learned more about it, it seems like the uber vehicle was not responsible. The other vehicle failed to yield. That is why they are getting back on the roads. Cory i would argue it is more terrifying to see a self driving car actually moving on the street. Maybe they saw this car and plowed into it. Eric maybe, i dont know. This plays into the whole self driving argument. We have these crazy human drivers out there ramming into self driving cars. We need perfect machines to do it so it does not happen anymore. That would be the uber spin. Cory i was with a venture capitalist yesterday. We were having this conversation about, imagining how self driving cars may rollout. 15 million cars in an avid year and how many would be some driving to get to that point where most cars are self driving would take decades and decades if technology could even work. Eric right. There is going to have to be a lot of collab coexistence between human drivers and some driving cars for a long time. The replacement cycle alone would take quite some time and then getting the Technology Ready to argue can actually have cars without any human drivers present still seems a long way off. People talk about sort of maybe we will need particular cities to try it and build the infrastructure of the self driving cars interacting with the roads, stop lights. It seems like the actual rollout is some time off. Uber is aggressively trying to make this work. Cory they are backed up in San Francisco where they have been clashing with lawmakers in the state in a very public way. Eric they are going back up everywhere now. In San Francisco, it was just a test. In arizona and pittsburgh, they are doing actual passenger trips. Of course come all of these vehicles have two human drivers in the front. One ready to take the wheel and the other monitoring what the car sees about the world. In some cases, helping with lane changes. Cory there was one part in front of the San Francisco bureau. I put it on my instagram. It is amazing to see. Eric when they were first launching in San Francisco before they got kicked out, i went on a ride in one of them. There were lots of human interventions. I can see them around, mapping, and getting a sense of the landscape. Art pictures to understand what the worldthere n interventions. I can see them looks like and the environment. Cory do you get a sense that after all of these pr problems that the companys responses more grown up in the way they are responding that make them look bad . Ericeric i think they were smao take them off the streets, figure out what happened. When they realized they were not at fault, redeployed. A substantial problem. Eric in that case, i think we both agree some of the story behind the protests and everything is suspect. The underlying issue, the closeness to the trump administration, i think people were expressing dissatisfaction on that front. Cory eric newcomber, thank you very much. Tensions between Tech Companies and government officials rise as the u. K. s home secretary had facebook have backdoor data from whatsapp. The debate over encryption. If you like bloomberg news, go to bloomberg radio. You can listen on the bloomberg m, siriusmberg. Com. Siru xm. We are all over the place. This is bloomberg. Alisa lets start with a check of your first word news. A british counterterrorism officer said police found no evidence the westminster attacker was associated with Islamic State or al qaeda. He said it was not a subject of interest for Counterterror Police or Intelligence Services before last weeks attack. Meantime, britain says a planned russia by the foreign secretary has been postponed. The trip is being delayed because a nato foreign minister is leaving the scene. Marine le pen says in france rejects her plan to pull the country from the euro currency, she will resign. She leaves ahead of the april 23 and april 7 voting. She is planning a referendum if elected. She says if it is a no, i will go. President ordered finance minister robin gordon to abort a weeklong roadshow in the u. S. It is raising concerns the embattled leader can be preparing three shovel his cabinet. The eu has summoned an envoy from the philippines to its when the latest rant from the president. He reportedly threatened to hang u. S. Officials proposing is move to reimpose the death penalty. Global news 24 hours a day powered by more than 2600 journalists and analysts. Im alisa. This is bloomberg. It is just after 5 30 p. M. Monday new york, 8 30 p. M. Tuesday morning in sydney. Im joined by paul allen with a look at the markets. Paul good morning. New zealand is up and running. Trading for about 30 minutes but looking very flat. Here in australia, futures pointing flat. Futures are mixed. We are going to be keeping a close eye on the retailer here. 10 of the shares changed hands in the final 30 minutes of trade on monday. A profound impact on the stock price, shooting up the most on record. The buyer with a huge block of shares is unknown. And they would have an announcement in the next two days. Also anticipating the arrival of cyclone debbie in the United States. Withiait is a category four stm winds of up to 180 miles per hour. There have been evacuations. The region has shut down. Watching that closely. More from Bloomberg Technology next. Cory this is Bloomberg Technology. We continue to watch the markets. Stocks lower for the seventh day of losses after the publicans failed to pass the highly anticipated health care bill. Worries that the administration cannot give me the done after this. The nasdaq is managing to outperform snap. Picking up a handful of buy ratings from analysts have helped their share at 5 . Sappr rudd says what should open its encryption to Intelligence Services. The london attacker used it shortly before his attack. It was access to the encryption data. Corporate customers, last year, rocking the iphone tied to the terrorist attack in san bernardino. Applesithout software. Joining us is michael, partner at the privacy and security practice. Talk to us about the desire of government to get into the theaging especially architecture to make it impossible. Michael what they are trying to do in the United States and europe, they have been trying to do with the issue of whether or not they should legislate some type of fixed to require companies to install some type of backdoor into the technology of course, that has raised serious questions in terms of the Technology Manufacturers about whether a backdoor is truly safe. Does that leave their clients vulnerable to other malicious actors out there and this is a serious problem. Cory it seems like w