Rated state. 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. Ethereum i am emily chang and this is bloomberg technology. A recap of the Second Quarter after stocks hit a snag in june. We will dig into the roller coaster covering all the highs and lows. Response to the opposition. We will break down a new report that claims to save travelers 27 million and disrupt price gouging tactics i become tells. The new smart watch may be in peril. We will show you the road ahead. The market closes the books on the Second Quarter of the year. U. S. Tech stocks gaining about 4 in the quarter, continuing his recent winning streak. After a strong start, volatility hit tech stocks in june leading to big losses over some sessions. Apple and netflix rose marginally in the quarter after posting huge gains at the start of 2017. Here to wrap up the Second Quarter in the markets, we are joined by Caroline Hyde in london and Abigail Doolittle in new york. Abigail, lets start with you. Wrap up a snapshot of the Second Quarter for us when it comes to tech. Abigail it turned out to be an interesting order for tech in the Second Quarter. We had nice gains until june 9 when the nasdaq hit a roadblock. Up until that point, nasdaq was and also we had this tech selloff. While the nasdaq is up nearly 4 on the quarter giving some of the gains back, mainly this has to do with the weakness we have seen in june. June being the first down month for the nasdaq. We have a great chart that exfo scientists. 490. It shows the last time we saw a monthly decline for the nasdaq was in october. That reflected jitters into the election when we had a lot of tech stocks and stocks in general selling off on uncertainty. We have seen uncertainty in june. Wall streeters are not sure what is behind it. Some of it could be the end of the quarter, windowdressing, managers taking profits and trying to take advantage of the fact that tech has been so hot this year. I think you nailed it, emily, with the volatility word. Very volatile quarter for tech. Emily had in europe and asia compare . Caroline it was a brutal months in europe. Asia managing to post 14 gains in the quarter. Get into my graph. Type in those magic letters and the number 669. In yellow is how asia has outperformed. Agree superlative from our producer saying if you check out asias index in technology, we have not seen this long of a winning streak on a monthly basis since 1999. We did see a selloff in 2000. The white line is how much europe underperformed the rest of the market. We had a brutal week, the worst since there were 2016. Chipmakers getting hurt, equipment makers underperforming. On the month, it was down. On the quarter, European Tech stocks were down. They are still one of the key outperformance on the year. Biotech offset some of the losses. What happened . Abigail that is an excellent point because if not for the Biotech Sector which had its best month in the month of june in quite some time, we could have seen much bigger losses for the nasdaq and the quarterly gain would not have been that great. Lets take a look at a chart that shows this quite well. 655, a year today chart. In white, we have the fang trade. Until the beginning of june, it had been up. And then a sudden decline. In blue, stocks. Look at the weakness. The stocks have had its worst month in quite some time. In yellow, the nasdaq biotech index had its best month since july of last year, up more than 5 . Big gains. Behind the gains for biotech, an analyst told me there is a confluence of positive influences and data points. That has driven the hope there is m a. This sector had until recently been in a bear market so it is a bit of catch up in terms of investors going towards the growth in the sector. That has been a saving grace for the nasdaq in june and perhaps for the quarterly gain making it bigger than it would have been if biotech had not been up in such a big way. Emily blue apron trading below the ipo price. In europe, having an opposite and better kind of day on his first day of trading. Tell us what happened. Caroline a sigh of relief for the European Tech sector. We get the biggest german ipo of the year. It is how you get your food delivered by an app. It rose on the first day of trading. That is pleasing the investor base. Rocket internet owns 35 . A sigh of relief for it and its shareholders. It is interesting the sliding scale of delivery. It is bigger than its rivals in terms of the month restaurants it has. It has 42 markets, 150,000 restaurants. That is three times the amount have. Taurants others comparisonsow you of how delivery hero is going to be out its rivals in terms of stock performance. In 658. You will see how its peers half performed since they went public in 2014. In the blue line, that is the u. K. Food Delivery Company we have seen it outperformed. It has jumped up doubling since april 2014. You see grubhub in white doing well. I am sure delivery hero is hoping it can see that escalation in the share price and market cap soon. Emily blue apron investors seem to have gotten the jitters with the amazon whole foods deal. Is blue apron going to have to raise money some other way . Abigail that is a great question. Blue apron is trading below the ipo price of 10. Initially, it was well above 15. Just the idea that perhaps this company was not ready to go public, some market watchers are saying perhaps shareholders pressured the company to go public when perhaps it should not have represented by the fact the price came down. Time will tell. Right now, they have cash for about a year. It would seem they may have to raise capital soon because the ipo price was lower than initially expected a few weeks ago. A rough turn, a tale of two stories from the company caroline was talking about. Emily Abigail Doolittle and Caroline Hyde, thanks so much for giving us that roundup on the quarter that was. Coming up, airbnb says it will save customers at least 27 million this Holiday Weekend in the United States. We will get the details from the head of Global Policy next. Bloomberg tech is Live Streaming on twitter. Check us out on weekdays. This is bloomberg. Emily qualcomm is heading up the california coast. The company is setting up shop in silicon valley. Qualcomm will continue to focus on the core areas of interest by global and emerging technology in the auto and connected device sectors. The group has seen success in both areas in the past, including the exit of one of the startups companys which sold to g. M. For nearly 1 billion last year. Much of the u. S. Is gearing up for a long july 4 weekend, including airbnb. The documents how it plans to fight price gouging and save consumers at least 27 million on what they would have spent on hotels over the Holiday Weekend. This comes off the heels of reports airbnb plans to launch a new tier for luxury rentals. Joining us, chris lehane, head of Global Policy and former aide to president bill clinton. Great to have you back on the show. You say you are saving consumers 27 million on hotels this weekend, more than double what you saved the last year. How do you know . We are able to look at what the prices were last year and compare them to what the prices were on hotels and Going Forward looking at this weekend, we are able to see what we are charging and our hosts are charging and what hotels are listing. Last year, we saved people over 12 million. This year it will be 27 million. That translates for the typical American Family staying in airbnb over july 4, they will save about 100 a month night. Our platform democratizes travel and makes it work accessible for families. Like you, i have a couple of boys. In 2013, i stumbled across airbnb. You get a washer and dryer, wifi, it all comes with the package. I think it is why our Value Proposition is so compelling. Emily this is part of a broader campaign. You are taking a more aggressive tack against hotels. Airbnb has a reputation as being the nice company. This is a little more aggressive. It is trying to drive the consumer comparisons for folks. Earlier this year, it came out the Hotel Industry was mounting a massive effort at every level to go after the airbnb middleclass hosts. It gets down to something called compression nights. In the Hotel Industry, they try to limit supply so in busy weekends like july 4 they can jack up the prices. They have acknowledged it. You dont have to read our report. Just look at their public comments. Time, he saidn the reason they are concerned about airbnb is it is impacting the Hotel Industrys ability to couch consumers couch consumers. We want to draw the comparison because it is important to families traveling. You save money on airbnb. Emily they are not going away quietly. They say they have to spend millions of dollars to renovate their buildings. They have to spend money to accommodate people with disabilities. They say it is not fair. What is your response to that . I love this conversation. We are in the middle of this conversation about economic inequality and the middle class. Typical american middle class family is behind. The majority of airbnb hosts are middleclass and making 6,000 year having to close that gap without a single taxpayer dollars being spent to create that opportunity. More than that, about a year ago we made a pledge. We said we want to pay our fair share of taxes. Since then, we have put in place 250 tax agreements in the u. S. Almost 60 of our hosts are covered by tax agreements. Now the hotely is industry is opposed to us paying taxes because they realize we are committed to making this work as well as possible for everyone. The focus on the tax conversation has created a focus on the fact the Hotel Industry has historically gotten massive tax breaks to build and come to different cities. 600 million in los angeles over the last couple of years. As we get into this conversation, it comes back to a Value Proposition conversation. We are a Community Based platform for the middle class. We have a compelling message. Emily what about their point about people with disabilities . This has been a complaint about airbnb. Talk about that. We are a platform that is eight years old. We are constantly looking to evolve. We have a significant amount of Housing Available for people with disabilities. We want to make sure as many people as possible can stay anywhere. Our mission is anyone can belong anywhere. We are working with disability groups to come up with solutions. These are regular people making their homes available. We want to make sure this works as well as possible for everybody. Emily bloomberg has reported you are launching a new, higher tier service. Mansions instead of this homes. What can you tell us about this and what it might add to the bottom line . In january, we acquired a cup in the Company Called luxury retreats based in montreal. A large number of their properties are in the caribbean. I came back from a trip to the caribbean. I know it is a tough job i have. Part of the trip was talking about how we can take advantage of the fact there is a lot of empty homes in the caribbean. You people very successful who go and buy homes are there for a month or two and the properties are not being used. The luxury retreats model makes them available. It bolsters tourism in the markets. Global tourism is about 10 of global gdp, growing faster than the rest of the economy. In are we able to use this sustainability, convert those homes into moneymakers for the hosts and communities that depend on travel and terrorism . Emily tourism. Emily any news on the exit strategy . Our focus is making sure we get the basics right and delivering on our Value Proposition. Emily have a wonderful fourth of july. Thanks so much for sharing that report with us. Chris lehane, airbnbs head of Global Policy. Thanks for joining us. Coming up, fitbits upcoming smart watch is already facing major setbacks. This weekend, we bring you our best interviews from the week, including our exclusive conversation with kiersten green, her outlook as consolidation heats up. This is bloomberg. Emily we are looking at south korea. It is leading an investment in a ridehailing startup to be spun out of the social media giant. It grows the fleet behind a competitor to uber which the property equity firm also backs. He gives it a cash i nfusion. It aims to roll out new Services Including corporate taxes, parking, and automatic payments. The global wearables market is expected to grow at 20 this year with over 25 million devices expected to ship. Now a company trying to capture some of that market share is fitbit. The san franciscobased company is betting big on the upcoming smart watch as popularity of the fitness tracker dwindles. The company may already be facing major hurdles with the upcoming device, months away from its debut. Putting the most important product for the company in peril. Tell us what you have been finding out about this particular unit. Has a lot riding on this new fitbit has a lot riding on this new product. I have been learning from sources they have been facing one hurdle after another. They had originally been planning for a spring launch which has been pushed to the fall because of issues with figuring out the g. P. S. Tracking, making it waterproof. Now i am hearing they may not be ready to have an app store in time for the launch which is something they have been talking about for a long time. The app store is a key component of the smartwatch given that it makes it more useful for consumers and it is something competitors will have. Emily what our employees saying about products prospects . Sources tell me there is a lot of skepticism internally this will match up with the competition. Fitbit has fallen behind apple in the wearables market in general. The apple watch has been picking up steam. It looks like the price point is going to be similar to the apple watch. But it looks like a lot of the features will not be quite up to par. There is a lot of skepticism the can build the ties they need with the Developer Community and get the market share they need. Emily fitness trackers are sinking in popularity across the board. This is not unique to fitbit. Definitely, fitness trackers are starting to see a lot of saturation in the market. That is why fitbit has been struggling so much. The smartwatch is supposed to be their big turnaround strategy. If you talk to developers and ask if you are excited about the prospect of a new platform to develop on, theres not a lot of enthusiasm. Part of it is developing for smartwatches in general is a difficult thing to do. It is a smaller interface. There are more constraints developers have to deal with. Given the option between developing for an enormous platform like apple or android, which one are you going to go with . Developers are saying it will take a lot to convince them to develop for the fitbit. Emily to what extent is the success of the apple watch hurting fitbit . It is definitely hurting fitbit. Fitbit had been planning to have this smartwatch compete with the apple 2 which. By the time it comes out, it will probably be competing with the apple 3 which will be problematic because it will have more features and be more updated. The value of a smartwatch now is tied to the ecosystem of devices and apps that surrounded. Part of what makes the apple watch so attractive is it is tied to the iphone and works seamlessly with the device. Fitbit does not have that already created ecosystem. It will have to build that and also the app store from scratch which is a technical challenge. Emily what edge, if any, what a smart would a Fitbit Smartwatch have . It has the demographic of more fitness focused people who is a more this watch fitness and Health Focused wearable in general. The other potential advantage of building its own operating system is it is not android or iphone platform specific users. It can target both types of users. At the same time, it means it does not have the existing developer ties if it were to stick with an android operating system. Emily selina wang, great stuff on fitbit today, thanks so much. Coming up, apple celebrated the 10th anniversary of the iphone this week. A look at the smartphones impact over the last decade. Plus, other headlines that grabbed our attention in the week in tech. This is bloomberg. [ noises inside can ] [ laughing ] its driving me crazy come on. [ spitting from tongue ] time for my secret weapon. Sports, movies, tv, ah, show me music to distract a minion. [ voice remote click ] oh [ pharrell starts to play ] [ minion so happy to see screen ] ahh im pretty smart. Ahhh [ lots of minions ] [ mooing sound ] show me unicorns. [ click noise for tv ] ahhh that works too. Find your awesome with the xfinity x1 voice remote. See despicable me 3. In theaters in june. Alisa i am Alisa Parenti in washington and you are watching bloomberg technology. Lets start with a check of your first word news. Police say the gunman and at least one other person are dead after a man wearing a lab coat opened fire inside york citys bronx lebanon hospital. Several others had been wounded. No word yet on a motive. Police say he may have been a former employee. President trump says a change of tactics is necessary for dealing with north Koreas Nuclear and Ballistic Missile program. He spoke today alongside the south korean president at the white house. President trump the era of strategic patience with the north korean regime has failed. Many years it has failed. And frankl