tv Bloomberg Technology Bloomberg January 9, 2018 5:00pm-6:00pm EST
ofndations after a part california had already been damaged by wildfires. report news has announced that steve bannon is to -- stepping down. he has been criticized by president trump since a recently published book quoted disparaging remarks about the first family from bannon. the state department is considering whether attacks in cuba.ericans a new fbi report says there is no evidence of a sonic weapon being used. pope francis delivered a message of peace today to the people of chilly and peru. -- chile and peru. subjectsected to cover important to francis, poverty.
global news 24 hours a day, powered by more than 2700 journalists and analysts in over 120 countries. i'm a alisa parenti. this is bloomberg and "bloomberg technology," with emily chang is next. ♪ emily: i'm emily chang. and this is "bloomberg technology." coming up, more fallout spreading through technology here in microsoft says it has a fix, but it may impact performance. last, more highlights from our coverage on the ground. you will hear from carlos ghosn, ceo of renault nissan and sony a satellite launch
from spacex, the satellite goes missing. first to our lead. the continued follow-up -- fallout concerning the micro sit -- microsoft chip flaw, may .ignificantly slowdown servers suggested slowdowns could be more substantial than indicated. also temporarily areended updates that freezing or not booting up as a result of the fix. intel ceo tried to assure people that there data would be safe. security is job number one for intel and our industry. the primary discussions have our customers' data safe. as of now, you have not received any information that these exploit have been used to obtain
customer data. ian king.ning us now, some like microsoft and intel are at odds. >> it started off with everything's going to be fine, nothing to see here. word that are getting maybe things are a little bit worse and microsoft saying actually we are finding some problems and certain circumstances. this industrywide effort to put a brave face on it and say it was no problem, appears to be fragmenting. emily: what is microsoft saying? ian: that in certain circumstances in servers, the slowdowns as a result of remedies are worse than previously thought. emily: talk about what exactly this means, because if the fix doesn't work, then what? ian: it's a choice. you fix it and you are safe, but
your computer doesn't work like it should, or you don't fix it and your vulnerable. you buy more service to make up for performance, do you struggle with a corporate system that doesn't work as well? there are all of these ugly alternatives. emily: we have an update from arm saying 5% of their chips are affected, not 100%. this is important because arm technology is in every smartphone. they are coming out and saying since 1991, chips using our technology out there, only about 5% are vulnerable to only one of these exploits. emily: we now have news of senators urging sec to encourage
brian krzanich share sell, he is now down to the minimum of his holding. you expect more to happen? discussed, intel says this is a regular program, this is the way the company does this, however, this problem was known to intel before this ban was put in place. people are saying look, this may be a regular plan that they always use to insure themselves against this kind of accusation, maybe that doesn't stand up in this place and that's what these two senators are saying putting pressure on the sec to go have a look. emily: we also have -- out of simple appliances saying they don't expose vulnerabilities to intel? , what does this mean? ian: again, adding to a list of
companies that say no real problem here. google says we have passed everything, everything is ok, there is no slowdown. we are really getting conflicting information and what we have to find out, we are working on, what is the truth apparent, a lot of people don't actually know yet. emily: what are you waiting for? ian: we really need to see all of the patches deployed, to see what kind of impact it is going to have. we will see intel earnings later this month and maybe people don't buy their chips, maybe people need more chips. emily: should you download the patch or not? ian: if you are an average pc user, you got nothing to worry about, down at the patch, you will be safer. all right. thank you so much. we are going to continue to
follow this story tomorrow. ceoill be speaking with arm blacklock p.m. eastern time. another story we are keeping an eye on, technology working closely with morgan stanley to identify strategic policies going forward including a potential sale. bloomberg scott to vote joins us live from toronto. there is some pressure on occupied to explore's chief tick alternatives, what does it mean? >> it means they're going to buyers reach out to some to determine whether there is value in a sale. emily: talk about the position that akamai is in right now. unusual company and that it has been a takeover target for several years, now,
because over the last 20 years it has build out its network of servers across the globe. i think they are in 130 different countries. it would be there difficult for any company to mimic that kind of network and because of that they are coveted. as a potential there will be several big competitors competing for the asset. emily: who might those be? head, off the top of my obviously microsoft, oracle, google, potentially at&t and verizon. emily: as we were discussing with ian king, all of these services impacted by this chip flaw do think that will impact the potential deal? scott: no. i think the real value is the real estate they have. as i said, the locations of their servers are going to be -- it's going to be very difficult
to mimic, because these are at places like universities, what have you. it would be very difficult for any company to build a network like this. obviously, there is an issue today, but in a few months this will have no impact whatsoever. emily: all right. thanks so much for that update. enter capital funding in the u.s. has hit its highest level since the.com era, to the tune of 8000 companies last year. this is according to pitch book. china has entered the top five in u.s. patents for the first time ever. investors received 11,241 u.s. 2016.s, an increase over china ranks behind the u.s., japan, korea, and germany overall. coming up, conversations him
carlos ghosn ceo of renault nissan joins us to talk about the future of automotive engineering. ceo to ask ifsony a plan to sell tv studios. the strategy is to shore up our motion picture business and make sure any of the deals we make during the future that -- not in a situation where we have to give up control of the access we have grown over the years.
company has deliberately slowed iphones. a preliminary investigation began against the company last week but programmed obsolescence an apologynitialed and is replacing batteries at a discount. art coveragew to where the future of the automotive industry has been a huge focus. no -- renault, carlos ghosn joins us to talk about the fund. carlos: we have so much to do about thext six years transformation of the car and i don't think we can do it alone. i think we need a lot of innovation and creativity coming supportrtups are also coming from partners and we think the way we are organized today is not sufficient. that's why we came with an
additional organization with it corporate venture capital with investors up to $200 million a year for the next plan adding up toard one billion in order support efforts transforming the car into electric autonomous, and connected products. investing hit the highest com bone,e the dot how much competition is there to develop in the ointment kind of technology you are trying to develop? carlos: there is a lot out there. i can see it. i am receiving a lot of people, hearing a lot of ideas. we have to be very careful, because there are a lot of very interesting ideas, but how many are going to survive, how many are going to be really implemented, executed at this will prices consumers are
willing to pay, that is where the challenge is. when we are talking about $1 billion over the midterm land, lions willet the the be investing billion billion billion, puts it in context. emily: will you be reading people's' brains and using that to help them drive their cars? is an illustration about the fact that this is not only about autonomous driving, which means the driver drives never he wants, he can but the car drive for him whenever he wants, but also the car is going to have the driver be the second driver, that is what we call an enhanced driving. on top of the autonomous drive, what we call the enhanced driving experience, the car will help the driver be a better
driver, much safer, and optimize the experience. emily: when do you think we will have fully autonomous cars in the road and how will people use them? emily: -- carlos: i think the next four years, i'm talking about massmarketing, not prototypes ready for use. it may take three to four years before the the regulation allows this to be mass marketed before we make sure that the system is totally robust in any conditions. i would say 2021-2022. emily: how do you see u.s. tax reform impacting auto demand? do think there will be a shift towards the luxury segment? i think this obviously supports activity, spending, insumption, which means that
think it's one to be good for the auto industry in general and in fact, particularly that they support and incentives for zero emission cars have been maintained, it's also good news for development of electric cars. emily: what are you hearing out of nafta negotiations? think there can be a deal that will raise the price of cars significantly? very difficult to predict. i think in this field we have to be prudent, watch carefully what is going on, try as much as possible, give the different policymakers data and -- in order for them to make the best decisions for their own company, the united states, mexico, that's what carmakers can do, just make sure that the revision of the policy is in the best interest of the industry.
emily: president trump has announced he will be attending davos. -- theu think of this president attending this event preaching america first? carlos: i think it will be extremely interesting. i think tebow's is a place where many people meet to discuss important subjects that matter for countries and that matter for people. people participate, particularly people with high power level, the more interesting it is and the more it gives meaning to davos. i welcome the opportunity. ends in june,rm there are reports you will stay on as chairman. what can you tell us about the succession plan, what can a person might replace you and what your plans are?
are get don't think we there, but everything will be announced in time. and we -- there will be a lot of continuity when it comes to driving the companies together. emily: last question, nissan narratives gap with conduct a 50,000 cars, can you catch them in 2018? think we are more in a long-term strategy where it focuses to bring the best car possible on the market and that the market decides who deserves what. i think the alliance between the three car manufacturers is at the top level of the industry. we are going to have ups and downs like everybody else, but we have a strategy that is an offensive strategy and a growth strategy. emily: that was my conversation
emily: now, a story that is out of this world here at a japanese astronaut living on the international space station says he has grown 3.5 inches since arriving there. the growth spurt is causing concerns that he may not it in the seat of his vehicle that is supposed to bring him home in june. we should say it is normal for astronauts to grow allowing the vertebrae in their spine to spread apart. -- the satellite that spacex launched is missing.
the rocket attached to the satellite may have never made it into orbit. deniedsk's company fault, saying it did everything right. this could hurt contracts for launches in the future. joining us now is max chafkin, what went wrong here? max: we don't know exactly. it's a spy satellite. details have been sketchy. what we think happened is that the satellite they'll to reach orbit. -- failed to reach orbit. there may have been some problem with the way it the attached appeared spacex came out this morning with a strong statement saying their rocket, the falcon 9, performed perfectly. so, that suggests that maybe there was some sort of malfunction with the little device that is basically used to attach the rocket to the satellite. but again, it is sketchy and
unclear, because it is classified. in the government -- we should be a aware of the satellite is up there and this is a smokescreen, but the important thing here is that spacex is basically saying we are going full speed ahead. and that comes in contrast with how they responded to previous accidents when their rockets have exploded on the launch pad or broken up on liftoff. they have often been ready upfront. elon musk has made statements, apologized, and so far all we have heard is them saying we have done everything right, full speed ahead. you should talk to the government if you have questions about the satellite. emily: the satellite was by , the customeran was the united states, what do we believe it was intended to do? max: i'm not sure on the
details. i'm not sure anybody is. as i understand it is a spy satellite. this has been a line of business that tesla has and trying to get into. if they found that there was a screwup on their part, that would have applications for their business, but they have been hoping to do many more launches next year and in the coming years. obviously, u.s. government including the intelligence agencies are big gentle customers for them as well as other aerospace companies. hasy: north are from an it's a classified mission, they can,, but what does this mean for spacex and their ambitious launch schedule for 2018? max: i think what it means that as long as they don't have any additional problems -- as long as no more rockets a blowup this year, they will probably be able to get past this and be on track. business, this is a
where perception matters. right now, they are trying to keep a brave face and say we did everything right. that said, if nothing else goes wrong, some other reason to doubt their capability, it could be a different ballgame. i'm not sure this is going to change anything. they are planning this big launch, their next generation rocket, they are saying this is moving on schedule here at the upshot is nothing, but any kind of accident is problematic for a company like this. emily: thank you, max chafkin. coming up, how do you build the goldman sachs of cryptocurrency? we will talk about that, next. this is bloomberg. ♪
commissioned a dossier containing allegations about president trump's ties to russia. this is telling that the file contains valid information and that is often had briefed the fbi on his findings. at the white house today, president trump discussed immigration reform with lawmakers from both parties. the president reiterated his call for a border wall but also referenced dreamers, the thousands of young people but the u.s. as children who are now living here illegally. the president was a bipartisan compromise. the former arizona sheriff joe rpo has said that he is running for the senate. he is a republican and a close ally of president trump, he toeted that he is seeking support president trump's agenda in his mission to make america great again.
news, 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. afters bloomberg just 5:30 p.m. in washington. we are joined by david a glass ingles. david: it is hot day. that would take on another meeting. we are grappling with an added complication of a spike in oil prices. what that is doing to broaden expectations. up,ars are up, yields are we might just see gains early but that being said there are also concerns that a lot of these markets might just be a little bit overextended. this is going back to 1999, if you data points, we have inflation coming through.
we are watching a lot of these key currencies and it is chinese, thishe is what they call the countercyclical factor. that is a wrapup your markets over this wednesday. i am david in glass. -- david ingles. >> this is bloomberg technology, and emily chang. says it is one of the security flaws could slow down
some servers and pcs. the statement suggests the slowdown could be more substantial than they previously indicated, intel confirmed its chips were vulnerable to hacking. the chips are used in more than 90% of laptops and 88% of desktops, another story we are watching is there strategic alternatives and letting a potential sale. according to people familiar with the matter, they are under pressure from elliott management, they had said they would seek talks to improve shareholder value. they're working with morgan stanley as an advisory. one of because most outspoken champions plans to build the golden mist -- goldman sachs. start a merchant bank dedicated to cryptocurrencies and blockchain ventures. that growther says business, he joins us in san francisco and our other editor at large, cory johnson is in new york.
they are far too large. >> you are too humble. what do we know about these plans? >> we know plenty because he has had to detail some of them. it is a complicated series of transactions, first, his firm which just created galaxy digital lp will buy a canadian startup called first going capital and then it will do a reverse takeover of a canadian shell company and then it will use that entity to raise 200 dollars in a private placement and finally, because it has that listed shall, it will start on the in toronto venture exchange, so this will be the first of its kind, a publicly traded merchant bank specializing in cryptocurrencies
and blockchain ventures. 's sounds highly orchestrated, is the something he can pull off? >> he has been working on it for months. depend on the enthusiasm for bitcoin, it depends on how much investors -- how much itfidence investors have might no, we know he had a record as a macro trader and goldman sachs, he was very successful. in the final two years at fortress, 2013, 14 and into 15, the macro fund he was running lost a ton of money and it had to be liquidated. so that wasn't a particularly good in time -- and appoint for him. but he does have a reputation and he has been a very savvy investor in cryptocurrencies and furthermore,. you love this idea that goldman sachs -- what goldman conjures up, but them together, what do you have? >> what do you make of this?
considering the plans for cryptocurrency? >> i think what we are seeing is you can do its cryptocurrencies is putting into these notions of ico's, some of them are very odd, some are ridiculous. the idea that companies need lending of a small term basis for cryptocurrencies to start to turn a profit with an interesting idea suggests that he believes as a business model that might generate free cash for small businesses, they would not need to go all the way through to raise money for public markets, even as he uses public markets to raise my to do that can of thing. this comment has been repeated over and over by us and others. what time also said is that blockchain israel.
this is born of more than just the fact that he has made a ton of money buying and selling cryptocurrencies, he too believes that blockchain, the underlying codes to all cryptocurrencies has the power to transform finance and reshape it. now that is kind of dreamy but that is sort of what diamond is getting at and it is the business all the other bank ceos are taking a look at blockchain and why they also realize that they can't ignore the bitcoin futures market. now let's be clear. one thing that people may get ,onfused with his merchant bank he is not doing an ico, there will be no token here.
this will be a busy fund, it will also trade cryptocurrencies like defense -- hedge fund would have that there will be no hedge fund that and it will be no visible investing or put on money into ico's. but it is not in and of itself going to be crypto. >> we seem to be in the middle of the perfect storm of exuberance and regulation and now we have the fort worth branch of the sec cracking jokes on twitter about blockchain, tweeting that we are contemplating adding blockchain to our name so we will increase our followers by 70,000%. >> jokes are all right but is this a joke about? >> i love comedy, i am a big fan of jokes, i think we should appreciate our lives with levity and jokes all the time but the job of the sec is to protect investors from the worst that capitalism and the markets have to offer. what we have seen is that they halted exactly one of these stocks. that is the ubi blockchain.
perhaps in response to the store because it was getting attention. it was the second-largest of those companies. will not stop trading on that one stock. by now the tell is 1-1, 1 joke and one enforcement act to release a halt in trading here. i think the tally should be 100 jokes and a lot more work in terms of administering a fair and orderly market here. we have nothing a lot of activity from the sec at in these names, they should be careful in using their power but the fec -- fcc is needed to protect investors from people that would take the money went from them. someone out there is certainly praying on investors and they are not taking any action on any other companies in the bitcoin universe and yet the notion of a tweet just sort of sticks in the craw because they haven't done much besides tweet. >> i think eric is dying to jump in here. >> i don't apply debt that it is not paying attention, they came
out with a statement last week alerting investors to the risks of cryptocurrency investments, telling a market that it is vigilant, pursuing potential enforcement acts and making people and reminded people that weis not as anything that can do, a buy or be working of market. even if the fcc finds fraud and pursues it to it's very end. be no money left at the end of the day. >> that is not what the job is. the job is to do more than that. the job is investor protection, and promoting efficient and competitive capital market is another one of their jobs and that is one of the reasons that regulators have up until now taken this hands-off attitude toward the cryptocurrency market because they themselves are trying to find out what kind of market really is. >> by or beware indeed, you have
while disney makes snap -- contentes, sony isn't to sit back and watch. to be a buyer in the media consolidation wave so naturally, we asked who they might be targeting, take a listen. >> it is really premature to start naming names, the strategy right now is to make sure that we really have a strong operation first and foremost before we start looking at themns, we will enter into but the idea is to make sure that the -- this is the studio. >> less on what a broader strategy if that would involve better tieups in asia, they focus on more niche movies for example. >> i think you had some great points, i think the first thing we really need to do is look at
the ip libraries we have. spiderman being one of the greater ip is, we had a lot of other ip is. make sure that when we go back to our library and take advantage of what we have, i think there is also a lot of potential for tapping into our videogame ip. it is also making sure that we have the right kind of financing and financial arrangements as we go into motion picture production to make sure that we have the appropriate producer haveand make sure we also production costs. that's another area we need to focus on. >> you guys are a stakeholder in spotify. what do think of their plans to list directly and doesn't have any intention of selling shares?
>> there is a lot of decisions to go into the public market, i think over time it will give them more ability to relate make more investments. >> the music is shifting dramatically, what are your meughts and expectations for you choose paid music service? ervice?ube's paid music s >> i think any of the online services that we have deals with, both on the recorded music side as well as on the publishing side is really going to make sure that the music industry, the recorded music industry continues to grow and that we give artists more opportunities to really get their music through the services. is ank the music business inflection point for further growth and i think that we were
talking about the decline in physical distribution and now we have all my services and i think it is a great time to be in the music business. >> sony recently made a deal with facebook, what is the motivation for that deal and what do think this post intentions in music are? facebook's intentions in music are? >> i think they are looking to make music part of their service they played -- provide to the customers and i think it is a very competitive edge that a lot of the providers need to have because that is such an integral part to everything we do in terms of how we enjoy content. at 32018, what do you think is the biggest risk to economic growth this year? from a sonyhat perspective, we want to make sure that whether it is
multilateral, bilateral discussions that happened between countries and flowtories that there is a of content, product, also, data as well as lies people and every time there is an issue or hindrance to stop that freed flow, that will impact the business in a big way. we need free trade of various services. sony ceo's traditionally have about a six-year tenure. you are coming into your six year. and whatyou on plans your intentions are for this year? i serve on the board of shareholders and we are completing our second three-year midgrade planning session and go into a third as of april so we want to make sure that we plan
♪ >> more news out of the consumer electronics show in las vegas. the virtual assistant will let drivers and passengers get directions, control entertainment features and perform other functions in the car via voice commands. thatow to the car startup make more than a billion dollars from investors led by tencent. last month they started vehicle sales just three years after the company was founded undercutting the price of a rival models from tesla. tom mackenzie spoke to the we should at the ubs greater china
conference. take a listen. >> we have guided investors in our series where we sell 20 or 30,000 cars. how much of it is down to have this replace the factories and buildout because we see this concept cars being launched at auto shows that when it comes to this, how do you manage to get over that? what are the challenges? >> data capacity for 102,000 cars so with a process of tilia now and putting all the robots and blind assembly, i think we will have as difficult a time with made treasury has tesla did, china is the king of manufacturing so it is a jvc know how to manufacture cars. >> you are squarely focused on the chinese markets but where are the biggest markets beyond china for the done the line? >> we are targeting to be in the u.s. in 2020 and we also had to europe as well.
terms of the infrastructure in china, charging points are very important, what are you seeing in terms of the buildout and the starting point and ensuring that the arm can get from point a to point b smoothly and efficiently. >> we have better swaps so our car can swap out a better in three minutes and it will split -- set up battery swap stations. , secondly,h a target we have power mobile. we have trucks running around with hundred 90 kilowatt batteries in the a charge it to a hundred kilometers in 10 minutes so we charge on the way. we'll provide all that for a monthly fee. we are really focused on consumer use, we are also tidied up to the public risk so you can plug in for 2000 charges across the country. >> do see ourselves as the tesla killer here in china? is that a key competitor? >> i don't think we are a tesla killer as much as they are our
only competitor in the sector. until 2019 or 2020, there are no other cars in her sector. is more than doubling our price. so we are about one third the price of a tesla model s. and more broadly, we have seen the likes of daily, a concept car and we have others that involve this space and then we have the order manufacturers, the vw's, toyotas, will we see consolidation? probably not as much as companies that run out of funding. i think the old manufacturers, the traditional manufacturers have partners in china already today. i think it overly planted had a car until 19 or 20 so there is a competition coming but it is not here yet other than tesla is really here in a big way. works this is such an appoint part, we see real progress in
developing batteries that provide enough power, what kind of progress do expect to see around the technology with batteries this year? >> i think we'll see more capacity batteries but i think that is a lot of talk about charging, it is very rapid charging, you can charge a car so there is a lot of exciting technology, the capacity is increasing the density is increasing so the range in our car, this could be an yet six, is the same battery pack. italy 400 and five kilometers were 500 kilometers and it is not long before we get to 600 kilometers, i think that will be the demise of the chief acevedo further into electric cars, electricity is much cheaper than that is where we are headed. >> no-show mackenzie with luis
shank, the ceo. and that doesn't for this edition of bloomberg technology, we will be live again this wednesday, you won't want to miss our conversation with elaine chao, that is 5:00 p.m. new york time in san francisco. we are live streaming on twitter, check us out on technology, that is all for now, this is bloomberg. ♪
♪ in hong kong, we are live from bloomberg's asian headquarters, i am yvonne man. welcome to daybreak asia, the top story since wednesday, a mixed outlook from asian stocks after wall street keeps adding to all-time highs. the nasdaq is making it six out of six for the year. this is a bear market for bonds as treasury yields soar ahead. i am betty low here in new york, this is after 6:00 p.m. on this tuesday, north and south korea agree to military talks but the north says its nuclear program is not on the table. and is tech trending away from apps and back to get this? we will be