Reinstatement of the travel ban as a truly shameful exhibition of blind hostility and a measure that will prevent iranian and mothers from seeing their grandchildren in america. Travel suspension, which heightened restrictions on immigrants from six majority muslim countries went into effect on thursday. The Illinois House has adjourned until tomorrow without passing a budget. Setting the stage for the Third Straight fiscal year without a budget. It has until midnight to reach a deal. This will now push illinois into becoming americas first junk rated state. Day,l news 24 hours a powered by more than 2700 journalists and analysts in more than 120 quote trees countries. This is bloomberg. Emily mrs. Bloomberg technology, coming up a recap on the tech Second Quarter after stocks hit a snag in june. We will dig into the threemonth roller coaster covering all of the highs and lows. Airbnbs response to the opposition. Breaking down a new report that claims to save travelers 27 million and disrupt price gouging tactics by big hotels. The fitbit new smart watch might be in peril as key talent leaves. We will show you the road ahead. First, to the lead the market closes the book on the Second Quarter. U. S. Tech stocks gaining about 4 in the quarter, continuing a recent winning streak. After a strong start to the year, volatility hit tech stocks in june, leading to big losses. Two big tech stocks, apple and netflix rose marginally in the quarter, after posting huge gains at the start of a 17. 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 has been a interesting quarter for tech in the Second Quarter. We had very nice gains up until about june 9. That is when the nasdaq hit a roadblock. It was up about 7 , close to gaining toward what it gained in the First Quarter about 9 . We also have this mysterious tech bailout. While the nasdaq is up nearly 4 on the quarter giving some of those gains back and partially, or mainly this has to do with the weakness we have seen in june. June being the first down month for the nasdaq in 8 we have a great chart that exemplifies it is g btv 490. It shows the last time we had a monthly decline for the nasdaq was in october. If you recall, that reflected the election, a lot of tech stocks selling off a little bit. We have seen some uncertainty in june. While streeters are not sure what is behind it. Some of it could be the end of the quarter. , taking profits and trying to really take advantage of the fact that tech has been hot. It is still the top sector. I think you nailed it, emily, with the volatility word. Very volatile quarter. Emily caroline, how have a job and europe compared asia and europe compared . Caroline asia managed to post 14 of gains in the quarter. We have g btv if you want to get in, type in his magic letters and a number 669. In the yellow, it is how asia has outperformed. Index ineck out asias terms of technology we have not seen this long of a winning streak on a monthly basis since 1999. Meanwhile, in the white line, that is how much the euro underperformed the rest of the market. We had a brutal week, the worst one we have seen since everywhere a 2016. The chipmakers, equipment makers, like nokia, underperforming. On the month it was down. On the quarter, European Tech stocks were down. Is it because they are one of the out performers . Emily abigail, biotech, offset some of the losses in the shang stocks. Abigail that is a good point. If it were not for the biotech sector, their best month was in june in quite some time we could have seen much bigger losses for the nasdaq, and perhaps the quarterly gains would not have been great. Lets go back into bloomberg and look at the chart that shows this well. This is g btv 655. It is a yeartodate chart. In white we have the shang trade. June had been up, all of the sudden the decline. In blue, the weakness and ships. Chips. The stocks have had the worst month in quite some time. If you take a look at the yellow, the nbi, it had its best month since july of last year. Up more than 5 . Big gains their. Behind those gains for biotech, a Bloomberg Intelligence analyst told me there is a confluence of positive influences and data point considering the data points for some of the Biotech Companies have come out very positive. The sector had come until recently been in a bear market. It is a little bit of catchup in terms of investors going back. That has been a saving grace for the nasdaq for june, and perhaps the quarter, making that quarterly gain bigger than it had been. The second apron, way trading, below its ipo price. On the other hand, in europe, having an opposite and better kind of day on its first day. Tell us what happened . Caroline what 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. It actually rose on the first day of trading. Nineoint, up 9 percentage points, pleasing the investors. One of the main ones, rocket internet big sigh of relief for their children shareholders. It is interesting, the size and scale of delivery here. It is bigger in terms of its rival, the restaurants. Markets, 150,000 restaurants, that is about three times the amount of restaurants that growth hub had. Ub hub. T seeinto bloomberg, you will how it appears how the peers have performed. In the blue line, that is the u. K. To delivery company. We have seen it really outperform. It really has jumped up some, doubling since april. 14. Likes of thethe whiteg,r upu two thirdsb hub. Delivery hero, the German Company hoping for that as well. 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 . Caroline abigail blue apron trading below its ipo. The bankers it. Perhaps the amazon whole foods deal but just the idea that perhaps this company was not ready to go public. Somewhere market watches are saying that perhaps early shareholders pressure becomes any to go public at a time that perhaps it should not have come a by the fact the price came down. Time will tell. Right now they had cast for about a year. It would seem that the may in fact have to raise c and because the ipo price was lower than initially expected a few weeks ago. A left turn into a tale of two stories from a company that caroline was talking about. Emily indeed. Abigail doolittle, the bloomsburg Bloomberg Stock reporter, caroline hi, thank you. Up, airbnb says it will save customers at least 27 million is Holiday Weekend in the United States. We will get the details from the head of Global Policy, chris lane, next. Bloomberg tech is Live Streaming on twitter. Check us out 5 00 in new york, 2 00 in san francisco. This is bloomberg. Emily qualcomm is heading up the california coast. Based in san diego, they are setting up shop in silicon valley, according to axiom. 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 portfolio companys startups cruise, which sold to gm for nearly 1 billion last year. Much of the u. S. Is gearing up for a long july 4 weekend, including airbnb. In a new report, the Home Rental Company 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. Chris, great to have you back on the show. Chris always fun to be here, thank you. Emily you say you are saving consumers 27 million on hotels this weekend, more than double what you saved them last year. How do you know . Chris we are able to take a look at what the prices were last year on airbnb and compare them to what the prices were on hotels. Going forward, looking at this weekend, you are able to pull some of the available data that we have come to what our are charging, and compare that to what hotels are listing. With all of the data, last year we save 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 night. That is real money. We talk about how our platform democratizes travel and makes it for the middle class, particularly for families. Like you, i have a couple of boys. In 2013, i stumbled across airbnb. You get a kitchen, if youre are like my boys, you need a washer and dryer. You get free 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 attack against hotels. Airbnb has a reputation as being the nice company. This is a little more aggressive. Chris 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. There is a reason for that, 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. A former head of ahl a political wing, he said at one point the reason theyre concerned about airbnb is it is impacting the Hotel Industrys ability to quote unquote gouge consumers. Those are his own words is a representative from the Hotel Industry. We want to draw the comparison because it is important to families traveling. You save money on airbnb. Emily speaking of the American Hotel lobbying association, as you say, they are not going away quietly. They say it is not a level Playing Field and hospitality. 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 . Chris 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 about 40,000 with typical growth rates. Beautiful airbnb host, our middle class, and they make about 6,000 a year having to close and overcome that gap, without a single taxpayer dollars being spent to create that opportunity. More than that, about a year ago we made a pledge because the Hotel Industry was talking about this. 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. The great irony is now the Hotel Industry a year ago was telling us to pay taxes, now they are opposed because they realize we are committed to making this work as well as possible for everyone. At the same time 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 build and come to different cities. Value proposition conversation. We are a platform for the middle class. We are communitybased platform. We have a compelling message. Emily what about their point about people with disabilities . This has been a complaint about airbnb. Rutgers published a report talk to me about that. Chris we are a platform that is eight years old. We are constantly looking to evolve into things in place. 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 on this. At the end of the day 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. Just homes. What can you tell us about this and what it might add to the bottom line . Chris in january, we acquired a Company Called luxury retreats based in montreal. A lot of their properties are in traditional Vacation Rental destinations. 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 have people who are very successful who go down there and buy homes, but they are there for a month or two and the properties are not being used. The luxury retreats model makes them available. It helps bolsters tourism in the markets. Think about it Global Tourism is , about 10 of global gdp, growing faster than the rest of the economy. Even bigger in parts like that, and how are we able to use things, particularly with sustainability, use those homes and particularly for the communities that depend on travel and tourism. Emily any news on the exit strategy . Chris i am waiting for you to tell me. Our focus is making sure we get the basics right and delivering on our Value Proposition. Emily have a wonderful fourth of july. Chris i am shocked you asked. Emily thanks so much for sharing that report with us. Chris lehane, airbnbs head of Global Policy. Thanks for joining us. Coming up, fitbits upcoming smartwatch is already facing major setbacks. The outlook for the companys as the popularity of the fitness tracker fades. This weekend, we bring you our best interviews from the week, including our exclusive conversation with kirsten green, her outlook on ecommerce as consolidation heats up. Tune in this saturday for the best of bloomberg tech. This is bloomberg. Emily we are looking at south korea. A 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 equity firm also backs. It gives that a cash infusion to expand their portfolio. It aims to roll out new Services Including corporate taxis, parking, and automatic payments. The global wearables market is expected to grow at 20 this year with over 125 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 smartwatch 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. Joining us, selena. Tell us what you have in finding out. Selena fitbit has a lot riding this new smart watch, it is part of their turnaround strategy as the core business has been struggling. Ive 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 are employee is saying about the products prospects . Selena 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 actually sinking in popularity across the board. This is not unique to fitbit. Selena 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 really to be there really 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 , even if it is muted hurting , fitbit . Selena it is definitely hurting fitbit. Fitbit had been planning to have this smartwatch compete with the apple 2 watch. 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 d