Necessary to do her job, and she has never leads nothing to nobody. 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. Caroline this is Bloomberg Technology. Jpmorgan ceo weighs in on the debate of automation versus skilled workers. Plus Indian Outsourcing Company says india is still a bet for u. S. Tech giants. We explain why. To the list of growing pains. We look at the chinese tech conglomerates long list of problems. The concerns continue over the visas guidelines. Jpmorgan ceo weighed in on the debate of keeping highly skilled workers in the United States. He explained that it is alarming that foreigners who obtain advanced agrees here advanced degrees here cannot stay stateside. He says we are sending talent away by not allowing them to stay here. Here. Say it allowsrump outsourcing companies to bring in lower paid foreign workers. But these changes might just hate might just help u. S. Tech giants. We have an extensive researcher into the program. Corey, first you. We should remind ourselves why there is so much kickback against h1b visas. Guest the perception is, if you want to have american employment, its terrible. On the other hand, it is providing u. S. Companies with workers they just cant find anywhere else. The knees have to demonstrate that in order to get workers. These arent new conditions the Trump Administration is adding. American companies have always had to show that the people they bringing into the country they try to find American Workers, posted the jobs, and the pay is better than or similar to one that American Worker would get. Anchor it seems as though share prices reacted on the back of this. Infosys fallis today. They are already in a world of pain, because as of 2016, weve gone down about 10 in terms of share price. Futures in open interest have been spiking ahead of their earnings. This is showing significant bearish sentiment. I want to bring in an associate professor at howard university. You have written long and at length with expertise about the outsourcing question. These moves that have been made to the h1b visa, are they making it slightly tougher for the outsourcing companies in particular . Or does it make it harder to make it to bring in the talent to the u. S. Quest mark u. S. . Anchor its focused guest is focused on enforcement. If they are violating the laws and the rules and regulations, they may be in trouble. If they are not, this is just an enforcement mechanism or measure. Unfortunately i would disagree with Cory Johnsons characterization. You do not have to show there is a shortage of American Workers. You do not have to group recruit American Workers. Overan prefer h1b American Workers and legally paid and much less than a u. S. Worker, as much as 40 less. We have documented cases of this. Reporter i will agree that is where the abuses have happened. A lot of outsourcing companies have been accused of this. When you look at the list of the companies that use of the most, infosys, butand you also see Companies Using this to bring workers into the u. S. Anchor at a cheaper price lower we have seeing a price point being offered. What would you propose could be done to change the h1b that would mean u. S. Companies and whoever needs the tech talent most in the u. S. And are willing to pay for it can get their hands on the right talent they need, even if it is necessary from abroad . Guest the intent of the h1b program is a good one, to fill skill gaps when it is hard to find u. S. Workers, and to bring in and keep the best and brightest. The problem is right now, the rules are so loosely written that is extraordinarily easy to bring in workers at much lower wages, and profitable. Systeme firms gaming the that have built their Business Model around cheaper h1b workers. It is quite easy to fix this. We know how to do it. We know what the problem is. We have to raise wage floors so that workers are brought in because they are cheaper, but because they are truly the best and brightest with skills that u. S. Workers dont have. But canut anchor every entrylevel programmer from the United States really vindicate more than 100,000 . Guest what hundred thousand dollars is sort of misreported about what those salaries are. It is based on the geographic location, the occupation, and the skill level. No one is talking about a minimum wage of 100,000. What we are talking about is allocating the visas based on the highest wages. That would be one way to do it. If you want the best and brightest, they should be paid like the best and brightest. And if you want to allocate 85,000 vias, those should fund the highest salaries. It would help the american , bring you the best and brightest, and be a fairer system in a lot of ways. Thatter it seems to me the really is a bifurcation in the ways used. It asof Companies Using body shops, almost. Did you have companies who use it much less intel and microsoft and apple and facebook who really seem to be looking for best and brightest. Is that a fair characterization . Guest im not sure i would characterize the best way. They all have the same kind of Business Model. They are selling to jpmorgan, so its a little disingenuous for jamie dimon to be talking about this when he knows he is hiring these firms to undercut the u. S. Market. But certainly some of the best and brightest are being brought in and paid fair wages. The question is, how do we monitor that and make sure all firms are doing it that way . Targeting just outsourcing firms is the wrong way of making policy. Users make it you should make it that no firm can pay cheap labor. See if making it more stringent when it easier for the likes of intel and microsoft to get the hands on the right sort of people going forward. Associate professor at howard university, thank you for your time. Cory johnson valued here as always. As we mentioned, jpmorgan ceo said Ceo Jamie Dimon they spent with a 95 million on Technology Last year. 9. 5 billion on technology. Reporter i want to bring up my notes for you. He did give is a breakdown on that 9. 5 billion spent in 2016. He said something around 300 million for cap initiatives that techte with startups initiatives that compete with startups. Its such a change over the last two years. If you go to 2014, he was saying that we should be worried about Silicon Valley, but they are coming for the financial industry. Last year he had a different tone, much more optimistic. This year part of his letter is spent touting the initiatives that the bank has going on the tech front. Fascinating, and ventures with them going forward. Is there any idea how long this will be continued . In previous years he said that cap is coming for the financial giant. Going tol of spending be continued . He didnt give any projections as to what he will be spending next year, but he said the bank needs to be continuing to invest. Is they dont have that investment, they were not the growing as quickly in the future. He considers the company to be in part a tech corporation. From that perspective, he couldnt possibly stop spending on financial on technical ventures. To draw ourwant viewers attentions to the t live go function. Brilliant analysis, and we get reports such as this, you can dig into jamie dimon letter to , as well as the updated numbers we got. Thank you for your time today. Coming up, we give you a peek at a new index that could get startups thinking funding and upper hand. All episodes of Bloomberg Technology are streaming on five 5 00 p. M. In new york. This is bloomberg. Announcer Bloomberg Technology is brought to you by his cox. Caroline when is the best time to fund raise . It is a major question almost every startup faces. One new index wants to help answer. It aims to help consumer orientated founders that are understanding Venture Capital fundraising environment. Is created by good water capital in hopes of shedding light on investments. Joining us is the cofounder and managing partner of good water capital. Wonderful to have you here. Spread a little light on this area of funding. This is a datadriven approach. What data points are you using to fill this index . Guest we looked at a variety of public and private data sources and back sourced them against 20 years of history to see which ones are most productive of fundraising sentiment. Once we ended up with our ipo, activity, and the pe at which public companys are trading. You end up with an index that is highly correlated with it. Showing thatis things are a lot better than they were 2012, 2013 but perhaps not at the we saw back in july 2015 or earlier at the end of 2016. Are your funding statistics and barometer and index you have built at goodwater showing similar themes . Showing thewe are market. 2014 and continued in 2015, and 2016it did to the end of oftook a big dip to the end 2016. In one dayopping 43 lead to a chill in the startup market. What also fascinated me is this is aimed at consumer oriented startups. Does this have no relevance to the enterprise startups out there . Guest we focused on consumer because we are Consumer Tech investors, but we think it is generally indicative of the overall startup funding market as it is those same partnerships funding Consumer Companies and enterprise companys, and many ceases many cases. Caroline you help bring recommendations when it comes to actually going out there and doing your startup funding, when it comes to terms, due diligence. Hands of thethe vcs or the startups . Guest we think right now it is balanced. Andave a four level scale, right now it is at go for it. The market is balanced. Companies that had raised money in 2014 or 2015 thought it was so easy to raise money, no problem. 30 . He market dropped by if you are a Public Market investor, if the dow dropped by 30 come you would have your hair on fire. It would be a completely different ballgame for investing. That is what we are trying to educate entrepreneurs on. And a shifting market, the terms and timing are going to change a lot. Caroline andy players. We have seen more entrance wanted to come into later stage the be institutional players. How does that change the landscape. In 2014 14 and 2015 you saw hedge funds, foreign market investors. In 2016, they cycled outcome of which lead to a cooling trend and a lot of challenging financing, some of which were rightly reported. Widely reported. Caroline if im looking at your funding index, would i also be engaging in a Global Sentiment . We are seeing companies go to chinese investors and european investors. Yours is very much u. S. Based. Guest our data is u. S. Based. If you were to look at the world and china, we think it is highly correlated to that sentiment. A lot of Global Companies come to Silicon Valley to get invested. China has a very healthy funding venturem, a vibrant capital market, and those trends dont necessarily correlate highly with what is going on in the u. S. Caroline so i am a startup coming to you at goodwater. , whatanted money from you would i be saying to you right here, right now . What would you think bvc market wants to see out of the Startup Community . Discipline . E, cost guest we have a specific recommendation. You want good growth, but a reasonable Business Model. Where things time were going quickly with no Business Model, that has cooled. Investors now are looking for some sort of proof that a company can make money at scale. Wonderful to have you here. Thank you so much for talking us through it. Im sure many people will be getting their teeth into this particular index. Goodwater founder. In tight trading range, but there are some standouts making big moves in the tech sector. We have the details next. And a feature we like to bring to your intention is our interactive tv function. You can find it at tv on the bloomberg. You can see previous interviews and googler coverage and bloomberg coverage from around the globe. This is for bloomberg subscribers at tv. This is bloomberg. Caroline a federal judge has blocked a seattle law that allows uber and let drivers to unionize. The u. S. Chamber of commerce had asked the judge to block the ordnance before it goes into effect, arguing the rule him properly treats independent contractor driving. Saysity of seattle collectivebargaining would create a safer, more reliable industry. Tuesday was a pretty tight trading session in the United States. There are some standouts in the session. Lets get into them with stops reporter abigail doolittle. Give us a sense of what really moved. Reporter it was a very quiet day overall for the major averages. Dow, s p 500, and nasdaq oftenest fractionally higher after very small gains and losses on the day. One of the smallest ranges on the year. Lets happen to the bloomberg and take a look at btv 7467. Each of these bars represents the full trading range on the day for the nasdaq. Todays range is below that pink line, one of the 10 smallest ranges this year. Investors really dont have a lot of conviction today after some of the volatility we have seen in some of the other sessions represented by those bigger bars. Where we did see some action, h amazon and out of that and alphabet. A vote cut out the back they say they see headwinds for alphabet from amazon relative to advertising growth. Amazon is his top pick in that they internet space. It is absolutely on fire this year. Lets hop back into the bloomberg and take a look at g btv 67642. Of these stocks are facebook, amazon, netflix, and alphabet. Up top in yellow is facebook, in blue is amazon, up 20 , netflix of about 7. 5 , and alphabet of about 7. 8 come but still outpacing the s p 500. With its cut and the ad issues alphabet has had more recently, those shares are still outpacing the s p 500 on the year. Caroline we will have to keep give us a sense of monday taking it back. It was a big story that the apple suppliers were under pressure after he saw a huge move for Imagination Technology in the u. K. It we get a feel any of that was still being run out of it . Reporter it pretty much went away. We did see an upgrade over Pacific Crest that help for both sears logic and sky works, two of those apple suppliers that did fall on mondays session after Imagination Technology plunged 60 on the news apple would be cutting them off for the next two years. The analysts at Pacific Crest saying that they show accelerating growth. ,n the same day, Pacific Crest another analyst said they cut the shares of nvidia. That stock down sharply on the day about 7 . Lots of movement for the chip stocks. Overall that Semi Conductor index is down about. 5 , thancing the bigger move the small gains for the nasdaq. Caroline great roundup of all u. S. Stocks. Thank you very much. Coming up, u. S. Tech giants are looking to gain ground in india. Is it too little too late . We continue our coverage of the tech landscape in the country next. 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 ] i alisa parenti. You are watching Bloomberg Technology. Will ite pen supporters take black on as their second choice, even though both have clashed on major issues. That is according to a French Public opinion poll. 27 take macron as their candidate. The incumbent Party Candidate has won the countrys type president ial tight president ial election. The ap reports russian investigators believe a 22yearold suicide bomber born in the former soviet republic of cars extent was behind courage to stand was behind the bombing. Theresa may wants to increase trade and security ties with saudi arabia. She is on a threeday trip to jordan and then the saudi capital. May rushed aside calls from lawmakers. U. S. Homeland security chief john kelly says the arrest of people illegally entering the u. S. Across the Mexican Border plummeted last month. Many were caught, compared with more than 58,000 detained in february. That is the lowest monthly figure in at least 17 years. 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. It is just after 5 30 p. M. Tuesday in new york, 7 30 a. M. Wednesday morning in sydney. I am joined by paul allen was a look at the markets. Reporter good morning. We are a little under two and a half hours away from the open on the afx. Futures are pointing up. Slipped a dollar has little on tuesday. This is after the reserve bank of australia issued a statement that it held the countrys cash rate at a record low, 1. 5 . In japan, nikkei futures are looking mixed. Aina southern is Holding Press Conference today. We are learning a little more about the American Airlines at ofke and also the earnings the china China Southern reported last week. Find paul allen in sydney. More from Bloomberg Technology, next. Caroline this is Bloomberg Technology. I am caroline hyde. Fallout from new guidelines to the u. S. About the visa program. One example consulting is down