The pattern was noticed after review of u. S. Policy on masking people Whose Community is our pick up incidentally. Global news 24 hours a day powered by more than 2600 journalists and analysts in more than 120 countries. I am Alisa Parenti. This is bloomberg. Caroline i am caroline hyde. This is Bloomberg Technology. Coming up, childs administration cracks down on limited Silicon Valleys beloved visa programs with increased scrutiny. Visa restrictions may drive top talent to other countries like india. We will dive into how the country might reap the benefits. Tesla stock surges to an alltime high after it shows it is on track to meet him on goals. Ambitious your end h1b visas are commonly used by Major Tech Companies in Silicon Valley to secure the best and brightest talent from around the world. Critics of the Program IncludingPresident Trump say the visas allow companies to bring in lower paid for and workers. Immigration i services issued new guidelines. Last month, the Immigration Department suspended a program that fast tracked processing for certain skilled applicants. Joining us from palm beach, florida, anurag rana the author of multiple works. He has written extensively on h1b visas and the tech workforce as well as diversity. Thank you for joining the show. These changes we see, some lastminute, do you feel this is a tightening up of some of the eligibility or do you expect fullscale dismantling of the 20 reset h1b visa. They are doing the same stupid things they did with the muslim ban applying it to h1b visas. It does not make sense. They are locking out computer programmers. That means my students at Carnegie Mellon and stanford can no longer get jobs here. Why do we want to lose these brilliant kids . They will go back to their home countries. It will hurt us. It will benefit the rest of the world. Caroline the average salary visasfor high demand h1b is 72,000. Many felt this needs to be driven higher to ensure this is not about getting cheaper tech talent in but the more educated and better tech talent into the United States. Would you agree the h1b could be changed . How would you advocate it be changed . The h1b reset is flawed. The problem is the next up, the green card. When people apply for permanent resident visas, they are stuck in the loop. The easiest fix with the Crime Stoppers is to an tether untether the visa from the company. A they get someone offering higher salary, they can leave and continue over there. That would fix the problem in one fell swoop. Why dont we do that . This way, there is no cheap labor anymore. Caroline is more about the green card. You have written on the immigrant exodus, why america is leaving the global race to catch entrepreneurial talent. People come to the United States, educate themselves, and are driven home. India and china are benefiting from the range rain going on . One way of measuring business to look at the number of unicorns. About 15 or 20 years. The only ones that existed were in america more or less. Now you have about 100 of them in china and india. We have 80 or 90 in the United States. We are losing our advantage. We are losing our ability to build Innovative Companies because we are losing the talent. It is a braindead strategy frankly. Caroline have you done the research to show those being built in china and india are being built by u. S. Educated talent . Could this be the way developing europe playing catchup to Silicon Valley . I looked at the backgrounds of the managers of these companies. Practically every company has returnees in their management teams which means we educated them and told them to go compete with us. They are the ones building these amazing companies. It would be such a loss to america. China has more Innovative Technology companies than the u. S. Baidu is building better a. R. Than apple. Apple is copying designs of social media apps in china. It is copying china because china is innovating beyond what apple can do. It has to still from china to stay competitive. Caroline sad, changeable. How can we see tech talent fostered within the United States for those who grew up from the beginning in the United States . Immigrants want to come to america. We love america. This is the place to be. If we allowed people to come here and give them visas, they would come. They would make americans compete. As long as there is not a salary disadvantage, competition is good for the country. The problem was when you have cheap labor, indentured servitude when people are tethered to countries companies. It would fix the range of problems. Caroline i will throw other problems that you because it is not cheap labor many people feel has undone manufacturing in the United States. Many say the crux of the problem is automation. This is something you have written a lot about. What about the answers for the . Ensureout educating to perhaps everyone can have a utopian view of the world rather than dystopian view as we go into robots taking everyones jobs . That is discussed extensively in my book. Technology is allowing us to solve the ground challenges of. Humanity. Robots can do the jobs of humans. Every technology has good and bad. We could benefit from this if we led innovation and started training our workforce. Weve got to train americans in using robotics. Manufacturing is coming back to download states, except it is not the old manufacturing. It is highly automated, robotic manufacturing. We should be leading and implementing the technology. F that, we ne the bt and brightesfrom all over the world. Policymakers say need to listen to this, educators need to listen to this, Corporate Leaders need to listen to this. Are they . Corporate leaders get it because they see the need for immigrants and new technology. Policymakers are getting dumber by the day. It is sad to see what has happened to america. The i. Q. Level on capitol hill is decreasing every election it seems. This is a loss for the United States. The people get it. One of the preambles we are creating is a big gap between the haves and havenots. Not only in money but also in knowledge and education, experience, and social values. We are building two americas. People who are left out and getting angry and people not participating in innovation. Your viewers are tech savvy. They get it. Maralago has become trump territory and people do not want to listen. They are feeling left out and is and franchised. I discuss in the book that we need to figure out how to equalize. We need to offer the same technology to everyone to motivate them to be part of this whole thing. Balanceto make sure we the dangers of technology with the good things. When they take our jobs away, that is bad. This is what we have to learn. Caroline do you advocate things like universal basic income, taxing robots to supply a safety net for those that do not want to be retrained . Universal basic income is a critical ingredient of the solution. Taxing robots does not make sense. My dishwasher is a robot. I dont think bill gates thought it out when he said that. A lot of thought needs to go into how we transition. A jobless future is coming. Jobs will be eliminated. With selfdriving cars in the next three or four years, a will replace they will replace taxi drivers and truck drivers. We will lose a lot of jobs that exist in manufacturing. Able to do thei jobs of accountants and lawyers, we will lose jobs. Doctors jobs will be lost. This is happening. We only have 10 years before it becomes a critical problem. We need 10 years to get ready. We need to rethink how society works. We need to start rethinking and sharing disparity of creating a level langfield everyone can participate. Theres a lot to be done. That is what i talk about in the book which i hope you will read. Caroline indeed i will. There i suggest perhaps Silicon Valley does not remain the number one place anymore. Perhaps the u. S. Did not remain the number one place. Where do you think your students are looking at actively . Will be at the heels of the u. S. Or china or india . Which country is thriving the most as the u. S. Loses the battle . They are going back to their home country. Chinese students are going back to china. Baidu has better Artificial Intelligence than apple. In china, they are doing gene editing where you edit living cells. China is leading the way. They are making all suites of advances. China might be ahead of the United States in that. In robotics, japan is doing amazing stuff. Korea has selfdriving cars. India is working on lunar landers. As a company shooting to put a lunar lander on the moon. Before, this was the only place it happened. , theon valley for tech u. S. Was the center of gravity. Now you can go most anywhere in the world. You can go to brazil and see the amazing stuff they are doing. You caniago, chilly go to santiago, chile. You can see innovation all over the world. We no longer have a monopoly. Caroline dare i say this is no longer a bad thing . Is not a bad thing for the population of the world. , youu look at the rhetoric have u. S. Government saying by closing the doors, we will make America Great again. We are not going to make America Great again. We will make america dumber. We will make it a third world country of the time we are done if we do not start realizing opportunity and how we are losing out on it. Technology is advancing faster than we are keeping up with it. Caroline i will indeed read your book. Thank you. Google is changing its policies to end the crisis of its youtube unit. It is introducing a new system for standards on the Video Service and will expand its definitions of offensive content. A number of big advertisers quit spending after their eyes were running alongside videos that promoted hate and violence. Johnson johnson is reversing its position in most major markets. Longtime, shares of apple supplier Imagination Technologies had the worst day ever after apple said it will be cutting ties with the ukrainebased u. K. Based chipmaker. This is bloomberg. Caroline since the u. S. Election last year, criticism over fake news has reached fever pitch. A new initiative is being launched to advance news literacy. The program is being run by the graduate school of journalism and funded by facebook and other academic and tech leaders. The group is called the News Integrity Initiative and plans to back applied research and hold meetings with industry experts. Imagination technologies is feeling pain. On monday, the chip designer announced apple would no longer be using its Graphic Technology in the next two years. The news sent shares more than down more than 70 . Apple is imaginations largest buyer providing more than half its revenue. Joining us to discuss is alex webb who covers all things apple. Im looking at the supply chain. I can see apple provided more than 50 of revenue. This is why we saw such a phenomenal move. It is the walmart effect. They walmart contract can make or break a company. It is the same thing in the Electronics Supply chain. If you get into the iphone, that is good news. On the flipside, the moment apple decides to take the contract away, you are in a pickle. Caroline the biggest move ever. What is interesting is apple is also a loser because it is one of the biggest shareholders of Imagination Technologies. Apple is a loser of this since it is the third biggest shareholder in imagination. On the flip side, half a billion for apple on the books is small compared to the company. It is a 750 billion company. It will feel a little pain. Equally, it is securing its supply chain. That means the margins it can generate from its phones are increased significantly. And that half a billion pounds apple might have lost will be money can be made up easily elsewhere. Caroline they can start making their own chips. This could end up in court. I think we should remember this is the only company [indiscernible] apple. It between apple and qualcomm recently. Theres a difference between the people who make the chips and develop an license the technology. One of the implications of the press release was they expect apple will have to license some of the technology from them. Apple has not made any comment. We do not know if that will be the case. There is an interesting dichotomy. If you are making and selling the chips, you get more revenue. But the licensing of chips is more profitable. Theres something you will offset. Investors think they know what direction that is going. There may be a certain retrenchment in terms of how that develops. Caroline the germanbased chipmaker has similar dependency on apple. What do you do . Try to diversify more . You take the low hanging fruit but look for other trees. Diversification is the thing. This has been the problem with imagination over the last 18 months. They have been through certain trials and tribulations. They lost their founding c. E. O. There was an effort to try to pivot the company and ensure they are not as dependent on apple as they have been. It has not been successful quickly enough. They have two or three years or 18 months to try and find the plan b option. These graphics processor units will be something which hopefully there will be more demand for if you are an imagination investor. Caroline something the u. K. Scene will want to resurrect itself. Coming up, the Entertainment Industry is getting in on the vr craze. We will take you to china where one of the countrys most famous film directors has big plans for the technology. A feature we would like to bring to your attention is our interactive tv function. You can find it on the bloomberg. We will be able to watch us live and see previous interviews and dive into any of the functions we talk about. This is for bloomberg subscribers only i am afraid. This is bloomberg. Caroline Virtual Reality is catching on in china. So much so that the country is opening its first br themepark headed by its most famous movie directors. A firsthand experience from beijing. Impossiblertually not to see the potential of Virtual Reality immersed in a deep space killing spree. It is a combination of a movie and game experience. All you are really doing is Walking Around the basement. This is freaky. The venture is cofounded by one of chinas most renowned film visionaries who may transform some of his most iconic work into vr. As a movie director, this technology is significant. You can be very imaginative. You can see color in 360 degrees. You can even interact with it. It opens up a whole new world. They want to open a new industry of vr theme parks around china. This 10,000 square foot venue is a Pilot Project to a larger themepark to be built this year. It was to become the Universal Studios of china because does backed by a wealth of intellectual property. Shipments will grow sixfold this year from last surpassing the u. S. To be the world number one market by 2019. As many of chinas smartphone makers rollout their own vr devices. This year is pivotal. The shakeout is already happening as Venture Capital shifts to content providers, away from the initial equipment makers. That is a whole nother world. Down the rapid world rapid whole rabbit hole. It is developing its own games and plans to have 10,000 vr arcades across china by years and. The Biggest Challenges we do not have good enough content to get repeat customers. People play for 10 or 15 minutes but not longer. Vr right now is best suited for companies that can afford it. There are a lot of applications you can customize. The industry is eager for a breakthrough. Investors who left will swarm back. When Everyone Wants to be in vr, it will be too late. Virtual movies space is always get them first space zombies get them first. Caroline coming up, future visa restrictions could drive top tech talent to other countries including india. We will be digging into thes growing countrys tech landscape and how it could benefit from the visa reform. This is bloomberg. [ engine revs ] [ screams ] [ shouting ] brace yourself this is crazy [ tires screeching ] whoo boom baby rated pg13. [ screams ] [ [ screams ] ] [ shouting ] brace yourself this is crazy [ tires screeching ] whoo boom baby rated pg13. [ screams ] alisa i am Alisa Parenti and you are watching Bloomberg Technology. Lets start with a check of your first word news. Russian president Vladimir Putin placed flowers at a makeshift memorial to honor the victims of the train explosion in st. Petersburg. The explosive device went off inside a subway train. Authorities say the blast killed at least 11 people. Warsaw prosecutors have a clue accused russia of contributing to the worst tragedy in modern polish history according to the a. P. Which says prosecutors cite new evidence from the 2010 crash that killed the president and 95 others. They concluded two airtraffic controllers and a russian official deliberately contributed to the disaster. Search and rescue workers are trying to locate and remove bodies of people who died in the river overflow and mudslide last week. At least 43 children were among the dead. The National DisasterManagement Agency says the official death toll is more than 260.