Executive order targeting majority muslim countries discriminated on the basis of religion. Jeff sessions will testify publicly to the Senate Intelligence panel tomorrow. The attorney general will answer questions about his role in the firing of former f. B. I. Director james comey. Sessions requested a public event. Bloomberg will have live coverage of mr. Sessions testimony beginning tomorrow at 2 30 wall street time. This is bloomberg. Global news 24 hours a day powered by more than 2700 journalists and analysts in more than 120 countries. This is bloomberg. This is bloomberg. Caroline i am caroline hyde. This is Bloomberg Technology from london. Coming up, the tech selloff goes global. Investors blaming the sectors biggest names. We will analyze every turn of the worst two days contact this in tech this year. Uber ousts its head of business. We have the inside track on the surprise exit. The mayor of london joins us at the launch of london tech week for a bloomberg exclusive. First to our lead, stocks follow continue to fall around the globe led lower by tech shares. In europe, the tech index had the biggest decline in almost a year since june 27 of 2016. The slide continued in the united states. Some of the largest firms posted the biggest declines, including apple, netflix, and alphabet. Now Oliver Renick joins us from new york. We will have a bit of a chart off. Im going to bring you my first one. I am digging into the terminal. The audience can do it, 9317. I am looking at the slump in european stocks, down 3. 6 . Im looking at the slump in the u. S. Nasdaq in the blue line. We have seen the biggest twoday selloff, 230 billion of market value wiped off. Down 2. 3 asia is being hit as , well. Big players, apple, netflix. , this seems toou be worldwide. Oliver it is not pretty. when you look at what happened overnight, europe came into the u. S. Today. We saw a repeat of what happened friday. Selling parrot off as the day went on, but ultimately what happened is it is not just about technology or the fundamentals of these companies. It may not even be about that at all. I think it is about a reversal that is unique given how far some of these companies have gone in the past six months. Really, we had a first reversal in the equity market at the beginning of the year when the trump trades stopped. Then we saw investors looking to growth. We saw investors looking for momentum. Companies had been doing well and built up momentum over the past six months. Now that trade unwound. It is not pretty, because it is taking down Tech Companies that had done very well over the past six months. It is investing in strategies more than companies specifically. That is breaking down a little bit. Caroline it is fascinating as to why the unwind starts here. Morgan stanley saying they have further to go. Im interested as to whether could see not just a correction , but a full on bear market. This seems to be what is signaled in my next chart. 6423. This shows how far we came before this turnaround. Technology stocks close to 50 reaching 52week highs. That is one year highs. We have not seen that since 1995 and 1997. What happened after those two years . Down 20 . Are we about to see a bear market . I love that chart. I like it because that signals what has happened and to what degree. As you point out, those 52week highs, it is nice when it is working and painful when it does not. In the tech sector in particular, it has not happened many times before. In fact, there are a lot of things that have not happened since the dotcom era. However, the counterpoint would be that even though some signals look for me year, when we take it back to worst times, ultimately the fundamental picture is different and valuations are below where they were. There was not a lot of fundamental backing to the selloff. Apple had come out and said we dont see demand for iphones or our products. Amd said something similar. That was not the case. It was a few things that coalesced into this moment in which people looked at the type of thematic investing they have been doing and said it does not make sense. If we jump into my terminal, i will kick it off with my chart. This one is breaking down the losses. In white, semiconductors. Blue, the growth index for the russell 1000. If we look in the gray, momentum. The orange is straight up tech. That is telling us the specific selloff that happen, semiconductors hardest hit. You can see where tech got hit. You can see the strategybased investment, the momentum and growth badly hurt. What is most interesting is the fact at the end of the day the s p 500 only down about 20. For alls entire time those people fretting about concentration within the equity market, fretting about the fangs stocks, at the end, they got hit hard today. The market has been able to shrug it off. I think that is important of some underlying strength. Caroline we will see if earnings building up whether they managed to be a supporting factor going into the next quarter. Brilliant reporting, Oliver Renick. Thank you for breaking it down for us. Now, a big announcement ahead at the e3 gaming conference kicking off tuesday. Microsoft is targeting hardcore gamers with the new version of the xbox. The Company Calls the x locks xbox one x its smallest and most powerful ever. It is designed to work with a new generation of tv sets as well as with games that offer more realistic scenes. We will be live at the e3 conference with take two ceo and the Nintendo America president wednesday at 5 00 in new york, 2 00 in San Francisco, and 10 00 p. M. In london. Coming up, uber ousts its Senior Vice President for business. Kalanick, that is his closest confidant. Where uber can go from here. Later in the show, our exclusive conversation with the london mayor on keeping innovation growing in the u. K. Capital and his relationship with President Trump. This is bloomberg. Moment theresa may decided to invite donald trump, offer him the red carpet, i said that was wrong. It was wrong for a number of reasons. It was wrong because of him changing the longstanding , well respected policy of the u. S. On refugees and a host of policies and views he has. Caroline after years of watching Silicon Valley innovate, wall street is ready to unveil its own answer. More than 30 banks are teaming up to form a new peertopeer Lending Service that will soon be offered to about 86 million mobile banking customers. It has competitors like apple pay. Meanwhile, uber has decided to part ways with the head of business, emil michael, after internal probes revealed a series of misdeeds. The embattled ridehailing giant held a sixhour Board Meeting to discuss a variety of issues, including workplace harassment and even a possible leave of absence for Travis Kalanick. Bloomberg technologys eric eric newcomer, welcome to both of you. First of all, give us the lowdown. This follows eric holders report into the series of scandals. Is emil michael leaving a big deal . It is a huge deal. This is travis top confidant, a great friend of his, and sort of the guy that helped the company raise more than 10 million in a deal with dd in china, and make partnerships with automakers like daimler. The hugely important executive who has been a central figure in many of ubers scandals. It is a big deal the board came to this decision. Overall, things at uber are crazy right now with this report supposed to drop tomorrow. Caroline crazy indeed. Meanwhile, it seems emil michael is fighting, saying he blames the board of directors and the legal team. Talk us through as your expertise focuses on Corporate Governance, is this the right step to be taking . Should they be pushing for Travis Kalanick to be taking a leave of absence . I think the personal issues travis has been facing have been significant for him. It may be a good time for him to step back. Unfortunately now though with the leaving of his righthand man, you have several open positions. For these positions to remain open while he is taking a leave of absence would leave management in a little bit of turmoil because there would be nobody steering the ship at the time. Caroline talk about these independent Board Members being called for by the eric holder report. It feels as though perhaps they are too hard to fill at the moment, getting more people into the board. How independent is the board compared to other companies . We know a lot of founders and Company Leaders have a lot of control when it comes to the board level. Correct. The dual structure for control of the company has been around since the 1920s. But it has recently become more prevalent at technology firms, especially out in Silicon Valley. The way the dual structure works is you have two different classes of stocks, and one class of stock has significant voting rights, more than the other. Perhaps the other has none. In the case of uber ubers class , b voting shares have a voting right of 10 to one. The class a Common Shares into which most of the preferred stock converts only have a 11 share vote. This gives significant power to those who hold the class b Common Shares. The Person Holding class b Common Shares are the managers, travis, and those who were founders of the company when the company began. Caroline eric, you said this is a crazy time at uber. We are hearing what could happen if they are asked to have more independent Board Members. What about this potential to see Travis Kalanick to step aside . We know he is under personal pressure. The poor man just lost his mother. The funeral was on friday in los angeles. So it has been a really hard time for him. Everything we have seen puts the decision to take a leave of absence on his shoulders. He would need to decide himself. The big question is who would lead the company. We have reported there could be a Management Committee of top but there is not a key person that could take over. There is no chief operating officer, no chief financial officer. They do not have a clear number two to take the reins. Caroline when you are advising clients you represent, when we see such a Company Gearing up potentially in the foreseeable future for some sort of ipo, how crucial is it to ensure we have clear Corporate Governance . That you have a cleaner than cleaner, whiter than White Company . How much does uber need to do . There have been roads paved by google facebook, etc. , regarding the dual corporate structure. This is not unusual. Investors have seen it before. However, when you are guiding a company as to what to do, you want to make sure everything is fair and equitable and to keep the concerns of the shareholders in mind. So with respect to uber, what you would want to see is more independent directors join the board. All the directors have fiduciary duty ors to the shareholders and must act in the best interest of the shareholders. Moreu add more and independent directors, the actions of the board become more focused on actions that benefit the company as a whole. That is not to say the founders acting with these class b Common Shares are not acting in the best interests of the company. In fact, the argument has always been that allowing the founders to maintain control over the company will allow the company to continue with its vision and push forward on the business plan, which is the basis for why everyone has invested in the company in the first place. It is a very delicate balance. Having more independent Board Members on the board is a very important step. Caroline we will see how that continues to unfold as we get more news of the eric holder report. Eric newcomer has been following this story for us. Nanette heide, thank you. Now coming up, thousands of Tech Professionals are gathering in london for the launch of London Technology week. The major hurdles facing the sector in the u. K. Capital. That is next. And a feature i would like to bring to your attention is our new interactive tv function. You can find it at tv and watch us live. You can send our produces a message, play along with the charts on air. This is for bloomberg subscribers only. Check it out at tv. This is bloomberg. Caroline the democratic representative of illinois introduced communications for engagement act. The legislation has the same acronym as an infamous twitter typo sent by President Trump seeks to classify president ial media posts as president ial records. It would prevent a president from deleting tweets or other social media postings. It is not the first time the representative has taken aim at President Trump. In march, he introduced another act also known as the maralago, a nod to the president s private club retreat in florida. You have to laugh sometimes. London Technology Week has officially kicked off. The tech extravaganza is touted as europes largest showcase for technology. Since its launch in 2014, it has included more than 700 events and welcomed delegations from around the world. Joining us to discuss is someone who is no stranger to the local scene. Shaw. Is ross schal he was the chairman of the Marketing Group and Vice President and general manager of skype. We know each other well. It is great to have you here. It is one of the founders of tech week. Talk about how important it is to ensure we are showing ourselves off that technology in london as a hub still exists and gets talent. London tech continues to go from strength to strength in terms of investment, talents, and startups being created. We are also in an uncertain climate after the election and upcoming brexit negotiations at the top of the agenda. A week for celebrations. Excited to kick it off today. But some challenges we have to address. Caroline talk about the survey you ran after the election and the key concern is getting talent into london. Thats right. The day after the general election, we asked a lot of questions around the conservative partys position on immigration talent, third hardy Party Sponsorship for visas. The sentiment from the community is strongly against the antiimmigration approach, wanting to make sure we get access to skilled migrants , whether from the e. U. Or beyond. I think a real wakeup call. I think we had 75 saying they are unhappy with the current policies and they need to change. Caroline fascinating, the is the same sort of theory we are hearing from the mayor of london, what it means for london. Just a note, there are 4000 applicants now . We are about to hit 5000 u. K. , and 50e countries around the world. Caroline what about the question of capital in london. Having come back from Silicon Valley, that is often labeled a slightly less bigger pace in london. Yes, you have the innovation. Yes, you have cool startups, but you dont have the foundation of cash. They have to go to the u. S. For money. Is that changing . I think it is. Last month, i had a showcase. We brought together angels, private equity funds to talk about the state of london tech in terms of investing. Where is this going with article 50 being triggered . I think there was cautious optimism. We dont want to compare ourselves to Silicon Valley. They have been at it for decades. We are five or six years into it. We are seeing funds being raised. Brent hoberman announced a 60 million fund. The money is there. The big Tech Companies are investing. Look, it is still a challenge to raise money where you are and whatever stage you are in, but the money is there in london. If you have a great business and a good model and you are a strong leader, it should not be difficult to get that money. Caroline i spoke to the c. E. O. Of improbable today who managed to secure 500 million from softbank. He has headquarters in london. Yes, he has branches in San Francisco, but hes not moving anytime soon. There is still the viewpoint that when you are an entrepreneur that if you really want to make it, go to Silicon Valley. Remove your headquarters. Do you think that still is the viewpoint of entrepreneurs . I think some still have that viewpoint, but i think it is starting to change. Why is that starting to change . I have seen big exits from london. I think the message coming back is five or six years ago, you had to go to Silicon Valley if you wanted to have a good exit. But not anymore. I think that is an encouraging signal. We have also seen a couple of unicorns fail spectacularly. Yet london is still on track in terms of the investment, the capital, and vibrancy of the community you saw this morning. Caroline you will be sticking with us. Thank you for digging into all of the london tech scene for us. He is going to be discussing more with us about the tech scene. Of course, london tech week does not stop here. Our exclusive conversation with mayor khan is coming up later this hour. Coming up, just five names account for nearly 75 of the drop in the nasdaq of a last few days. We will discuss if it is time to change the outlook for big cap tech after huge gains. If you like bloomberg news, check us out on the radio. The bloomberg on radio app, bloomberg. Com, and on the sirius xm. This is bloomberg. It is 11 29 in hong kong. I am paul allen with the latest first word news. China u. S. Ium on relations says President Trump has been weakened on the In