Israelipalestinian peace talks. He will meet with Mahmoud Abbas in the west bank city of ramallah. Global news, 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. Im Alisa Parenti. This is bloomberg. Bloomberg technology is next. Hyde in im caroline from for emily chang. This is Bloomberg Technology. Decidedrs started it was time for Travis Kalanick to go and the way forward for uber. Pomp and pageantry Takes Center Stage in parliament as Queen Elizabeth lays down the law. Brexit and ated by sprinkling of tech. A new front runner has emerged prize race for toshibas chip business. Elect avis can Travis Kalanick has officially resigned from the company he founded. Bloomberg has just reported he will not receive a severance package. While the surprise resignation clears the way for a new leader, finding someone of the right caliber who is willing to take on such a difficult job wont be easy. Uber was already struggling in its hunt for a chief operating officer. Now the company will have to find a new leader, one that will have to keep both Board Members both boardrs suit members and investors. Kalanick announced he would take a week about a leave of absence. The pressure didnt come from the board. Instead, in a rare move, investors pushed for him to step aside. Paid stors have poured more than 15 billion into the company. Newcomer. Now is eric in new york, a partner at lead edge and investor in uber. How expected was this after he took a leave of absence . Its so hard to know what to expect that over. Expect at uber. Kalanick hoped that a leave would satisfy his critics and recharge allow him to recharge after the death of his mother. But then it clearly wasnt enough. Bill gurley and some other major thistors in uber led campaign to tell travis that he needed to step aside. That looks to be what finally convinced him to leave the position as ceo. Caroline as an investor, this is something you agree with . Why did it come down to the investors and not the board . The Investor Base represents a large voting interest at the company, and, so, thats an important source of control and influence on the business. Its important to recognize that Travis Kalanick also resigned, sort of prompted by this, but he made the determination that this was the right thing for the company. He didnt have to resign. Lets not discount the role of travis in making that decision for himself, yes, prompted by the investors, but he absolutely had a hand in it as well. Caroline did he explained to us intentionally why the board can you explain to us why the board hadnt taken prior action . Were their hands tied . Did it have to do with travis voting share . Eric travis had a lot of control over the company, coupled with his cofounder and an early employee, early ceo of the company. Together, they had a pretty strong coalition. I think there was a lot of faith in travis. He has been a key man in defining the company for good and bad. They did 20 billion in gross bookings last year. Amid all the scandals, its easy to forget how enormous this business is, how global it is. It will be a question how somebody else can step in and wrangle the business that travis knows more than anyone else. Caroline lets turn to nimay. Are you as confident as ever we can see the company continued to grow, can see the valuation continue to be supported . Nimay i think travis involvement or lack of involvement is a challenge going forward, but there is plenty of precedent about nonfounders stepping into the role of ceo and taking businesses forward. Eric schmidt at google, earlier in the lifecycle at google, took the reins, and look at where google is today. In thesame view not same view, but when steve jobs passed away and tim cook took the reins at apple. Apple is up 200 since steve jobs passing. There is absolutely precedent for nonfounders taking a backseat and businesses continuing to appreciate value and continue. We are excited about who is going to step in to those shoes. They are big ones, for sure, but there are lots of talented people out there that are excited about taking on this opportunity, taking on this challenge. Its an incredible business. They did 20 billion in bookings last year. They continue to grow quickly. We believe that growth will be sustained and they just need to have the right leadership at the helm to continue that. May, we are just looking at the amount of executives that need to be svped, ceo, coo, cfo, cmo, of engineering, general counsel. Who do you envision being ceo . Who is your eric schmidt . Nimay my vote is definitely for Sheryl Sandberg. I dont know if she will take the job. There isnt anybody more capable and embodies the culture and values that the Company Needs on a go forward basis. More generally speaking, they need someone with global experience, experience running a rapidly growing business as complex as uber is. And someone that embodies those values that they are looking to define on a go forward basis, inclusion, empathy. These are things that the board and investors are going to be looking for as they look to define the new ceo and fill up the rest of the operating bench. Caroline has Sheryl Sandberg been approached by the board or by investors . Nimay i dont know. Caroline can i quickly ask, therefore, how much you worry about the control travis continues to have from a voting share perspective, nimay . Nimay going back to his resignation and him deciding to do that, i think that the first step thats the first step in recognition that this is the right thing for the business. From a governance standpoint, i think there will be steps taken on a go forward basis that help create a little bit more balance and independents around the board independence around the board. We believe those steps are coming and that travis will do the right thing from a governance standpoint. Thats also split between others. There is some diversity there in the voting control and ownership in the business, but we should continue to see a diversification on a go forward basis as well. Caroline nimay mehta, partner at lead edge. Bloomberg technologys eric newcomer. Thank you so much. Now, amazon will start selling nike shoes directly through a brand registry program. The system gives nike greater control over counterfeit merchandise. It also aims to use Machine Learning to detect knockoffs in the future. Nike shares jumped on the news and continue to rise throughout the trading day. Coming up, oracle and adobe post record highs in u. S. Trading. Oracle getting an even further boost from its earnings after the close. The latest on tech earnings coming next. Is liferg technology streaming on twitter, 5 00 p. M. In new york, is Live Streaming on twitter, 5 00 p. M. In new york. This is bloomberg. Caroline there could be a big deal in the Software Sector in the works. Maker isrise software said to be considering a combination that could take ca private. Deal goes ahead as a leveraged buyout, it would mark the biggest lbo of a tech Company Since the purchase of dell. Bmc has been owned by bain and Golden Gate Capital since they took the deal private. Picking up momentum. A fourth straight quarter of revenue gains at the software maker. Oracle extended its record high in afterhours trading after reporting strongerthanexpected fourthquarter earnings results. Upbeat. 5 . For more on this and other tech and our, cory johnson guest cohost, activate cofounder and ceo, michael wolf. We were expecting a slight slowdown in revenue. Cory the numbers were super strong. Their cloud business, what they define as their cloud business, fantastic. Weve gotten accustomed to that over time. Can theyion is, how manage the shift from licensed software to the cloud business, and what kind of struggles with that entail. Its a vast oversimplification of their issues. How do they move more to the cloud hwile keeping while keeping their revenues and their license business flowing . There are two big shockers that came out after the close today. One of them was just the fact that license sales seem to be better than services revenue. Services revenue is the thing that comes in after theyve sold a lot of licenses. Thats always great news, going back 20 years. Whenever you see oracle sell more licenses and see licenses grow faster than sales, it means the tailwind is about to come with service revenues. Its very bullish for oracle. You saw license revenue decline. Weve seen doubledigit declines in license revenue sales for many, many quarters. It was 6 or 4 , a substantial improvement of that old core business. Outnt know who is running there buying Software Like it is 1999, but they certainly were with oracle and oracle shareholders loving that after the close today. Caroline michael, have you been telling all your companies that you consult to go buying Software Like it is 1999 . There are a couple things going on. Its not as if companies are just buying. Its that oracle manages an and theye salesforce, are great at finding ways to create demand and new applications. There is another issue going on, which is that oracle will people talk about oracles growth story, its Growth Engine but, Cloud Services guess what, Cloud Services are everybody elses Growth Engine. It is Pretty Amazing that they are able to continue to grow there, despite facing a lot of headwinds of competition. One of the reasons why they may be able to grow is because of their license software business. They have this foothold in the companies where Companies Need software. Ir erp those same companies are buying the Cloud Services. Caroline fascinating. We will shift gears very quickly. Is driving ahead in afterhours trading. We saw adobe come out with numbers earlier. They were again a good set of numbers. The shares did not pop quite so much. Ive got a bloomberg chart. Many potentially questioning this number in white. It is how high earnings per shares have got. You look at the trailing 12 months earnings per shares, looking at what it might be going forward, and estimates are that the revenue just keeps going. Maybe pricetoearnings looks that little bit more tempting. Cory i can connect the dots with oracle and adobe. To keep this business going, but completely change it from license software to the cloud, the same thing oracle is trying to do. Moneyoneyman for is manager is famous for saying i want to show you what oracle has done. This is adobes the blue line is revenue. The red line is deferred revenue. That is the money they have collected for services not delivered. What you see is a transition to the cloud. Thisis area, you see Inflection Point happened where the deferred revenues started getting bigger than the actual revenues. Itsore predictable a more predictable business model. Suddenly, we are looking at a different projection progression. Actual revenues later. Oracle would like to have it big deferred revenues and actual revenues showing up a little later. Oracle is moving in that direction. Adobe is already there. Caroline trends going in the right direction. Great to discuss this with you, wolf. Ohnson and michael coming up, Queen Elizabeths speech to lawmakers. Have a u. K. Will handle its withdrawal from the you the european union. And if you like bloomberg news, check us out on the radio. You can listen on the Bloomberg Radio app, bloomberg. Com, and sirius xm. This is bloomberg. Caroline Queen Elizabeth ii outlined Prime Minister mays agenda to lawmakers in the u. K. Brexit obviously dominates mays program for the next two years as the country tries to find the right balance as it separates from the european union. Details from london. The queensminated speech in london on wednesday as the government tried to set out its legislative agenda for the two years that lie ahead. On the brexit front, we heard about policies on immigration and trade. Both of those could prove contentious, as those who want a hard brexit vs. Those who want a soft brexit battle for influence over government policy. Many domestic policies that could have been controversial had to be dropped after the conservative party failed to maintain its majority at the most recent election earlier this month. Also absent was any mention of a controversial state visit by president trump. A spokesperson for the government said the only reason this was not included was that no date has been set. The queens speech also included reference to policies on a commitment to review counterterrorism strategy, and to hold an inquiry in the grand fell grenfell f ire in london last week. Anna edwards, bloomberg news, london. Caroline from policies and electric vehicles to a measure that would allow and electric vehicles to a measure that would allow its maintaining and attracting the best tech talent for their workforce. I sought sat down with rogers Agarwal Rajesh agrawal. Rajesh we have made it very clear that the european citizens already here they are londoners to us. They have contributed significantly to londons economy. Its absolutely the right thing to do that they are given permanent right to stay here. Khan, london mayor, sadiq has been talking about immigration deals. london has benefited significantly from this amazing talent pool. To be honest, when london does well, the whole country does well. We are the economic engine of the u. K. Because we produce almost, 1 4 of the countrys gdp. When london does well, the whole country does well. I hope there is a solution to this. If not, then we will look at some interesting ideas that have been tabled. Caroline what sort of interesting ideas . Rajesh there are examples of regional beezus games, which i know the city of regional visa schemes. The important thing is that we remain open for talent, for business, for investment, for ideas. The chancellor of the exchequer was in london just this week, talking about how, perhaps, the government is now going to be more focused on business. How do you think the Business Climate is, in london in particular . How is optimism among various sectors . Rajesh businesses dont like uncertainty. At the same time, they have shown a lot of confidence. If you look at straight after the brexit referendum, there was an assumption there would be a mass exit is of businesses from london. Im glad businesses are not taking any rash decisions. They are waiting and watching and creating contingency plans, rightly so. But it will confident will remain about londons future amongst all this uncertainty. Caroline what sectors do you feel are the most thriving and perhaps feeling the most concern and uncertainty . For example, the financial services, an area we were strong on in london. Is that managing to remain consistent despite the financial crisis and brexit . Rajesh london is a very diverse economy. We are the Financial Capital of the world, the banking capital of the world, but we also are a very thriving tech sector, we have a very thriving lifesciences sector. London is a very diverse economy. Its the economy of the future. If you talk about the tech industry, theres artificial intelligence, Machine Learning. The most Innovative Solutions are coming up. Just this week, the mayor outlined his vision for london to be a leading smart city. What smart city actually means is using Technological Solutions to tackle some of the challenges of the growing urban population. These are challenges not just faced by london, but cities around the world. London is very wellpositioned to be number one. Its already a leading city in the world and smart technology, but i think we really can take this to the next level. Caroline that was london deputy mayor of business rajesh agra wal. Coming up, more on the fallout of Travis Kalanicks resignation from uber. A closer look at how he turned the start up into a 5 billion powerhouse. This is bloomberg. Alisa im Alisa Parenti in washington, and you are watching Bloomberg Technology. The fbi says the gunman, james hodgkinson, acted alone when he shot and wounded congressman steve simplys Steve Scalise and four others and did not have any ties to terrorism. Scullyss condition scalises condition has been upgraded to fair. Queen elizabeth outlined mays legislative priorities in her annual speech to lawmakers. Ght government plans ei new laws to ease the u. K. s withdrawal from the eu. Scotland could be given a separate vote over whether the Edinburgh Parliament will be legally required to give its socalled repeal bill consent, which paves the way for brexit. It will overturn about 80,000 pieces of eu law. Global news, 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. Im Alisa Parenti. This is bloomberg. Its just after 5 30 wednesday evening here in washington, 7 30 thursday morning now in sydney. We are joined by bloombergs paul allen with a look at the markets. Paul, good morning. Paul good morning, alisa. The new Zealand Dollar up a little this morning. This is after the reserve bank held the cash rate, as expected by all 15 economists surveyed, at 1. 75 . The governor saying Monetary Policy there will remain accommodative for a considerable period. Asx futures pointing higher by about 0. 3 , rebounding after wednesdays selldown. Nikkei futures looking a little weake