Recent rulings have been protective of Digital Privacy rights. Global news 24 hours a day powered by more than 2700 journalists and analysts in more than 120 countries. I am Alisa Parenti. This is bloomberg. Bloomberg technology is next. Caroline i am Caroline Hyde in london. This is Bloomberg Technology. Coming up, our exclusive interview with apple c. E. O. Tim cook. Emily chang will speak with him from Apples Developers Conference later this hour. The u. K. Prime minister calls for greater regulation of the internet halloween the terrorist attacks in london. But tech firms are pushing back. Fitbit falls to third place in the wearable Device Market while apple steals the spotlight. Can it make it come like the less come back . Apples Worldwide Development conference kicked off in san jose, california. We will be speaking with tim cook later for an exclusive interview from the annual event. It is one of apples biggest events for the year setting the stage for hardware and software that will hit the market over the next 18 months. This year, the Company Announced updated macbooks and a Major Overhaul of the operating system and topped it off with something brandnew from the company. The apple director of marketing with the formal announcement. It is absolutely beautiful and we call it home pod. Yes. [applause] caroline that is right. Apple is going after amazon and google with a new home Smart Speaker called the home pod. Joining us is cory johnson. And mark gurman. You have been there from the early hours. Mark, you have always tantalized us with the latest product that will be unveiled. Is the home pod the big announcement today . I think the home pod is definitely the product of the day. It is the first new piece of significant in two or three years since the apple watch was announced in 2014. It goes into the home space and gives them a new have. Do you think this will increase apple music subscriptions . Cory it probably will. They tried this about 10 years ago for the same price point and it was a dismal failure. This is an expensive device, more expensive than the competing products from amazon and google. They claim it is a much better speaker. They claim it will replace all of that stuff. There are a lot of unknowns as to how the products work. People have a lot of questions about how well this works, how much it will work with other platforms like spotify. And that will matter a lot. Conference, they did not say anything about a Development Kit for Companies Like uber and lyft to develop apps for it. Caroline im looking at the announcements and how this feeds into how apple is trying to change its overall Business Model. Im going into the bloomberg if you want to tap into your bloomberg. Have a look at what we have got. This is apples segment revenue breakdown. This shows how important the iphone still is. We are talking 137 billion worth in terms of revenue last year. Compare that to the next best, services, 24 billion. How much do these announcements and the focus on where developers can take this feed into how they want to change their Business Model and not only about the iphone . Cory hardware drives headlines for apple. It is all about the gadgets. That is what the headlines tend to be. The reason people are interested in apples stuff is not that the hardware is innovative. It is that the software is innovative. That is what this event is about. We had 5300 developers from 75 countries here to find out about the software and how they can develop software for these devices. The devices matter. But the ability to develop for those devices for the programmers to make money is what matters here. I think what you have heard, the consistent theme here was use of artificial intelligence, Machine Learning, and siri as the headliner for all of that. And incorporating siri into a lot more stuff whether the home pod or the messenger applications. That was a big part of the focus here, trying to get developers excited about using the ai stuff and siri. Caroline mark, take us from ai to ar. This was one of your big scoops, focusing on augmented reality. How much of a hit did we get on that . Augmented reality is very interesting because apple did something it normally does not do. It announced augmented reality. It mentioned those words on stage for the first time i believe. This is a hot new area. But they did not announce any products or initiatives related to ar. Cory the Development Kit was cool. But nothing apple branded to inspire developers to do new things. Before they did ai, they introduced siri. With the home devices, they have home kit. We saw the health stuff before the apple watch, the home integration before the home pod. Forwe are seeing Ar Developers before we see a big push from apple. Cory it is interesting. The cuttingedge product is pokemon go, not an apple product but uses the iphone or android phones to propagate that to the world. They used it on stage showing we can make it better. We can help you with the Development Kit that i thought looked cool. They had too, create an engine to do this. Apple says we have our own engine. It is better and you can use it. Im sure there will be a ton of new apps with the ar integration in the future. Caroline what about wearables . Fitbit has dropped to third place. Does there seem to be an upgrade for the operating system for the watch . For the second time in two years, they are revamping, redesigning the core of the operating system. Last year, they made it easier to navigate. This year, they are putting more attention integrating siri into the watch face. I could lift my wrist and look at it and it will tell me all about my day, what is going on in the future, boarding passes, and whatnot. Cory can you come to an apple event and not wear your apple watch . I do not even own an apple watch. There was not a lot of mention of the airbus. The air pods. They could have added enhancements. Would add itthey where you can tap to go to the next song. Maybe they will the future. Caroline it was a down day on the stock market. Why not more enthusiasm . Cory it is hard to connect the dots. That is why the stock is down today. In terms of the development of apples business, by announcing products with great fanfare that will not be on the market for a while, it will keep sales through the end of the year. It could be a combination of investors seeing good things and what they announced and concern about shortterm results for those product lines that will take headwind knowing replacements are coming down the line. Some of it not until december. Caroline great as ever. It has been a long day. Thank you so much, cory johnson and mark gurman, live from the wwdc. Stay tuned. It is our exclusive with apple c. E. O. Steve cook. That extended interview later this hour. Now a story we are watching for you. Alphabet crossed a major milestone in the session. Shares traded above 1000 a share for the first time ever. Giantsis among the tech seeing recordsetting gains this year. The stock is up more than 25 in 2017. More Tech Companies hit alltime highs in the session including microsoft, amazon, and nvidia. Prime minister theresa may cause out the Tech Community after the attacks in london saying the industry should do more to stop the spread of terror online. What comes next and the impact on the election days away. Bloomberg is live streaming. Heck us out weekdays this is bloomberg. Caroline now a story we are watching. If the sprint merger with tmobile happens, it looks like potential lenders might be stuck on the sidelines. In early discussions, a new potential option has emerged. An all stock deal that would avoid the need for financing. They would let door to come Deutsche Telekom avoid paying a premium for sprint with longterm upside. Tmobile has an enterprise value of more than 80 billion compared to about 70 billion for sprint. Social media platforms are under heavy scrutiny following the terror attacks in london over the weekend. Speaking on sunday, Prime Minister theresa went directly after the Tech Industry saying it needs to step up its work to fight terror. We cannot allow this ideology the safe space it needs to breed. Yet that is precisely what the internet and Big Companies that provide internetbased services provide. We need to work with allied democratic governments to Reach International agreements that regulate cyberspace to prevent the spread of extremist and terrorism planning. Caroline tech firms say they already police their platforms and are working to form a common identifyto more easily terrorist posts and fight them for removal. What might be next and how could this affect the u. K. Elections . ,e are joined by Sasha Havlicek c. E. O. Of newswhip. Great to have you on the show. Explain about the institute or Strategic Dialogue and whether you feel more regulation is the answer. We have been working to combat extremism of all varieties for over a decade now, both offline and no more and more online. We have done a lot of work with Internet Companies but also government on this issue. There is a challenge. We see terrorists and extremists deploying professionally online. They have a head start. We have seen little to compete with that message of hatred online. Littletw professionalization of the credible voices that can counter the space. In many ways, this is where Tech Companies can be the most upscaled and support endeavors in this space. There is more they can do. They have admitted that. They have committed to setting up an industry body to drive not only counter speech in the space and education, but also technological innovation because there is more that can be done to identify and get rid of the most egregious content swiftly. The thing we need to be worried about always is the overstepping of those lines. There is a lot of gray area content, very difficult to identify what in all cases should and should not come down. That expertise often does not sit within the Internet Companies. I dont think anyone wants them to take on a full editorial role with regard to content. Caroline where do you think the battle at the moment is between tech versus government . Do you have a view on the response thus far . I think we have seen with these problems have emerged before, the platforms have responded quickly. Newswhip tracks the sharing of different forms of content online and quantifies the data very exactly. What we saw in the u. S. Election, a large amount of fake news was spreading online. We saw much less in the French Election and even less in the run up to the u. K. Election. I think the Tech Companies do not want elements to come in. They will race to solve those problems through technological means themselves before laws get drafted hopefully and be successful in doing that. That is the strategy we will see here. The u. K. Government and theresa may is talking tough on this, but i think the u. K. Government also would prefer an industry led solution. They have the best wherewithal to drive the technological response. There is no question about that. Theyre putting pressure on no to make sure the Internet Companies follow through on the promises they have made. But there is also something to be said for engaging for letting certain types of accounts stay up online. We do a lot of work monitoring and identifying extremists prior to the lawenforcement phase, prior to them crossing the threshold to terrorism. There are ways in which we can engage further upstream those sorts of individuals and make a change in their attitudes and behavior. The issue is whether we drive them underground to fire too far. There are constituencies we want to watch and engage with successfully. Those engagements have to be done carefully. They have to be done by people with an understanding of the issues. We work a lot with networks of former extremists to reach out to those people online, credible voices within communities use peertopeer engagements. Internet companies have been followed behind the sort of activities. Facebook has lost a Major Initiative to support counterspace and so has google at a special especially work on Digital Literacy and citizenship. How do we get young people understanding how quickly they can fall into the rabbit hole of extremist communications online. Caroline what you do is monitor throughout the u. S. , the u. K. , the French Election, you have seen changes. What about the effects ahead of the u. K. Election . Do you monitor currently what we are seeing in terms of internet dialogue and how this is affected by terrorist activity . Thats what we are monitoring and focused on is what content is being shared. It is a strong indicator of what people are interested in and talking about. Election call the u. K. We are seeing a lot of sharing of articles in a reasonable amount of sharing a policyfocused stories. Ort are about foxhunting sales of arms to dictatorships. These are the things being talked about. There is a good deal of engagement on the statements made by each of the Party Leaders following the terror attacks in manchester. There was not any big subsequent move of the narrative after that. I think conservatives are seeing an angle for attack here on labor. We have not seen a huge pickup of engagement. The most engaged stories in the runup to the election are about foxhunting. Caroline which amazes me. Very quickly. Are you optimistic we can see some sort of internetbased internal help to help prevent the spread of extremism online . I agree there will always be a gray zone. Like twitter removing extreme accounts. Facebook has designed itself as a hostile zone for terrorism. There will always be the gray zone. At what point does supporting a political cause in the middle east bleed into expressing an extreme view . This discussion is not going to go away. Which is why i would say it has to be a partnership between the Tech Companies and civil society. That is the partnership needed to respond to this challenge properly. Caroline thank you very much. It was wonderful having you both join us. Thanks to Sasha Havlicek and in new york paul quigley, c. E. O. Of newswhip. Coming up later in the hour, our exclusive interview with tim cook from the Worldwide Developers conference. Emily chang is sitting down with him this moment. We will bring you the conversation as soon as it wraps up. A reminder of our new interactive tv function. You can find it at tv on the bloomberg. You can watch an interview or send our producers a message. This is for bloomberg subscribers only. Check it out at tv. This is bloomberg. Caroline now a few stories we are following. A spacex rocket over the weekend has delivered a resupply mission to the International Space station. Last drop of a shipment three years ago. Often madehuttles return trips before they were retired in 2011. There brings elon musk one step closer to reusing spacecraft. Now to a stock we are watching. Shares of snap fell after j. P. Morgan lowered the price target by 10 . Based in part on fewer people flocking to the platform. J. P. Morgan says users are not expected to join snapchat as fast as previously expected. Harvard university has withdrawn the acceptance of 10 Incoming Freshman because of a social media message. An offensived offshoot of the meeting group. Harvard reserves the right to withdraw admission if a student engages in question will questionable behavior. We continue our coverage of the Apple Developers conference. Emily chang sitting down as we speak with c. E. O. Tim cook. We bring you that exclusive interview later in the hour. If you like bloomberg news, check us out on the radio. You can listen on the Bloomberg Radio app, bloomberg. Com, and in the u. S. On sirius xm. This is bloomberg. Alisa i am Alisa Parenti in washington and you are watching Bloomberg Technology. Lets art with a check of your first word news. Concrete and metal barriers are going up on several London Bridge is following the second terrorist attack using vehicles to target pedestrians. They are designed to stop copycat attacks of what british Prime Minister theresa may cause a new trend in terrorist tactics. Police will not say how many bridges will get the extra layer of security. The decision to sever diplomatic ties with qatar should not have impact on u. S. Military operations. Central command says there are no plans to make changes. Central command and its 10,000 u. S. Troops are based in qatar. The country is accused qatar of supporting terrorism. The first ever United Nations conference on oceans has opened on a luminous note. The secretarygeneral says oceans are under threat as never before. He says plastic garbage in the waters will outweigh fish by 2050 if nothing is done. Environmentalists and are presented as from 200 countries are attending the conference. Global news 24 hours a day. I am Alisa Parenti and this is bloomberg. It is just after 5 30 p. M. Monday and washington, d. C. 7 30 Tuesday Morning i