consideration for secretary of state. he was a vocal critic of donald trump. president obama and angela merkel held their final joint news conference in berlin. they discussed several issues including the brexit. >> i reiterated our hope that negotiations over the exit will be conducted in a smooth and transparent fashion and preserve as closely as possible the economic and political relationships between them. >> obama also appealed to the donald trump to stand up to vladimir putin when moscow's behavior deviates from global norms. after breaching an obligation, iran is being warned to adhere to the nuclear deal. taxpayers500 french

are being investigated over late documents from the panama papers. budget experts are taking a closer look at specific cases. bloomberg technology is next. ♪ >> this is bloomberg technology. emily: tesla gets the green light on the merger with solarcity putting elon musk closer to a one-stop shop. wishlist.mp's we speak with a representative from facebook and google. and attack idea rebound

unfolding. how the forecast looks for public offerings in the year ahead. shareholders approved a merger between tesla and solarcity. elon musk shared his gratitude. >> i would like to thank the shareholders that voted in favor of the transaction. think your faith will be rewarded. there'll will be some amazing stuff that comes out. emily: joining me now is david wells and a senior research analyst. say aboutt does this elon musk's ability to sell a vision and pushing controversial deal? reporter: it was controversial.

over the course of the summer, some of those who opposed the deal started to sell down. a lot of the major shareholders also held shares in solarcity. they really believed in the idea of putting the companies together. solarcity shares in and tesla can keep going, approving a deal that will help solarcity made a lot of sense. there are still folks who do not think it is the right thing to do. we spoke to jim chanos yesterday. >> the combination is absurd. i do not know if i can sugarcoat it more. their shareholders have to have their heads examined. emily: what do you think? >> i think he is a little

absurd. brush anda very broad it is hard to criticize a man of his stature, but one of the difficulties was the solarcity business model is complex. a lot of the things that are said about it, the capital journal -- draw -- we have already seen the steps going forward to help them get to that point and some of the things that they outlined is an evolution to show investors that they are pivoting at solarcity and there is some technology that can be codeveloped. it is less of a distraction to be under the tesla umbrella rather than elon musk focusing on what they are doing wrong. dealood thing about this

is dead we can get back to the main thing, ramping up the tesla model three production. emily: what do we and don't we know about what the new company will look like? reporter: elon musk was to put us all under one roof. so you can buy your model three and get a solar roof and a battery system, the battery can charge your car. is there in this is what people are referring to. it is not clear why these companies need to be together other than it is elon musk's vision. it is not that kind of synergy. synergyrcity, the carries so much weight.

4000 people have put money down to get the model three. when you put stuff under the , that could really generate revenue and that is what he is pushing. emily: what do you think the impact will be of o'donnell trump presidency on elon musk's vision? this is a president-elect who may not believe that climate change even exists. just one point on the acquisition, it is important to note one of the things that were was theut solarcity buffalo manufacturing plant, it was good to see -- has underving tesla tesla's umbrella helps to panasonic. as far as the political climate,

the political climate across many sectors is facing a lot of uncertainty. staff hasmp and his been clear that they are not going to be supportive of climate change. the investment tax credits that drive one of the drivers of solar was -- [indiscernible] paul ryan. i do not think they are going to go after tax credits. it is still a risk and it is something that people are talking about. the vision is to get down to a cost that you are competitive of . there are companies on the version that. we have a difficult solar environment right now. oversupply particularly because of ramping up too much capacity in the short-term the medium-term

solarcity benefits from that because we are seeing prices drop dramatically -- that will help. productsat are the new that tesla and solarcity will offer? reporter: you are going to see a solar roof. these are actually architectural roofs and look pretty good. it is a total one-piece unit that is the entire roof of a house. for tesla, the big thing is obviously the model three which will come out in 18 months. the vehicle has to go off without a hitch to generate cash to keep the enterprise going. after that, he has talked about a delivery truck, pickup truck. my guess is that we will see the pickup truck first. you will see the fleet of coming out over the next several years. emily: we will cover every step

of the way watching how this vision comes together. thank you both. inesforce reported earnings their results topped forecasts. they also given upbeat outlook for the fourth quarter, lifted by software contracts with larger clients. is pushingf investment into a broad range of services from marketing to ai. to come, silicon valley tries to make peace with the incoming president. we will discuss what google and facebook want from donald trump. ♪

verizon cutting 500 jobs, 8% of the workforce. the ceo said the company has added 1500 staffers and needs to consolidate to improve operation . he also says that aol will add more jobs. the internet association making peace with president-elect donald trump. this is the group representing 40 of the largest internet companies in the world. opposedvalley largely his candidacy and found itself on the opposite side of the agenda but in a letter addressed to the administration, they are trying to start a new dialogue.

michael beckerman joins us now from los angeles. have you gotten a response from the donald trump administration? thank you for having me on. we ended been in conversations with the transition team since before the election. for in openng dialogue. our priorities will be received well by the donald trump and ministration to create jobs at home. emily: the tech industry cannot almost universally against donald trump save for peter thiel. do you have fear of retaliation? it seems like a big chill could send in. we have an opportunity. we want to start with a clean slate. every industry is looking to

start with a clean slate in january. again, it has the president's job to make sure our economy grows. permission less innovation has helped our countries grow in create value in this country. what have companies sent to you about their concerns? >> some of the rhetoric on the campaign was a worry for many of our companies that when you look at the issues such as encryption, something we had strong disagreements with the obama administration. we want to educate the white house that encryption is part of our security and not something that we need to have backdoors. obviously, an issue like immigration reform was front and center.

i think after they get done with border security, we can come around to high skilled workers in making sure that these companies can grow. emily: let's talk about trade. you guys support the transpacific partnership. donald trump does not. what are the risks if things do not go your way? in the dna for free trade because it brings value to our economy. when you look at our industry, the internet is an american export. 80% of the internet jobs are here at home. some of the proposals that we had will enable our companies to be competitive around the world and create value. candidates were very

opposed to tpb during the campaign but that does not mean we cannot move forward with a trade programs to ensure that our companies can grow. men neutrality? we talked about this in depth yesterday. it is unclear what he believed to a policy perspective but he was dismissive of it in a tweet a couple years ago. what would july to see happen when it comes to the neutrality? there could be some changes. neutrality, all we are asking for us to make sure that consumers have access to the entire internet and you do not have gatekeepers. really, that is a bipartisan desire, both republicans and services have said that providers should not be blocking

or throttling content in that is what we have now with the proposals that the fcc put in. we are going to work to make sure that the end result of an open internet enables for competition to happen. emily: donald trump is in the process of building is leadership team. smith.rent cto is megan who would you like to see in that position in particular or any cabinet positions? are there any folks that you think would be more sympathetic to silicon valley? important thats we have that dialogue and people from the technology industry and internet companies go into the government. positions, so many positions in government will decide what kind of landscape we have for innovation going forward and i would like to see more people like megan smith

that have gone into the government from our sector. this is our country. we want to make sure that people in government understand that the internet is one of the greatest engines for economic growth that we have. emily: i understand a desire to work with the president-elect and congratulate him, but this is an industry that came up so vehemently against donald trump. water folks saying to you behind closed doors? are they scared? nervous? we are still in the early days right after the election. everybody is still digesting. there is a recognition that we need to move forward. this is not really our company. internet companies have gotten a lot of attention on this but i do not believe there any fortune

100 ceos that were formerly for donald trump like they were for mitt romney. president-elect was torn with our companies -- wants to work with our companies. michael beckerman joining us from los angeles, thank you. robbins joinsck us on the economic uncertainty weighing on corporate spending. this is bloomberg. ♪

itsy: airbnb has taken first step to shift focus to a full-service travel company, unveiling an updated platform which will give travelers tools to plan their entire vacation. the new app will make restaurant

reservations and purchase concert tickets. they will launch in one does cities. cisco shares saw the largest drop in a year after reporting earnings on wednesday. while sales rose, the company also projected slow growth in corporate spending. chuck robbins spoke with us earlier. they asked him how the company is doing amidst its transition to a software and services operation. >> we have been transitioning our portfolio, our security portfolio, and that management to more of a cloud model. the different revenue associated with that transition was up 48% to we think we have made a great deal of progress. our security business continues to be strong. we also had 5% order growth.

we had a lot of bright spots in the quarter. one thing less than expected was the new product business. what happened there? >> over global service provider was down 12%. this is a business made up of very large customers. when several of them paused, it resulted in a short-term challenge. it does not mean that there is long-term issues. as we talked about, there are three different areas that can lead our customers to slow their expansion. you have certain service providers that are dealing with currency challenges. some that are dealing with political uncertainties, regulatory uncertainty. if you look at the reports for they have all been slightly lower than expected. businessat in our as p

and we are pleased with the balance of our business. about, you talk companies do not like uncertainty and we have a new president coming in and that represents or uncertainty. it is not too soon to start asking yourself, what will that mean? for example, you can have trade problems. what is your take about what a donald trump presidency could mean? >> what you are hearing from donald trump is most of what he is saying is really about how do we drive the u.s. economy? his policies are pro-business because he believes that if business is strong, the economy will strengthen you and that is reflected through what you are hearing from him. the things that we care about our obviously, patent reform,

the h-1b immigration program, and tax reform. based on his desire to lift the u.s. economy, he will end up looking at those policies favorably any time u.s. economy gets stronger, that is good for cisco. >> you have $60 billion in cash overseas. willing to commit to do something with that money other than boosting dividends? >> this has been a popular question for us. we have still been moving in all of these areas with buybacks and acquisitions. we made 17 of those. you can assume that as we are allowed to bring more back at reasonable rates, we would use a combination of all three of those opportunities and our teams have been working on scenarios as we have been large proponents of tax reform. we are optimistic and we will

leverage that cash for all three of those. emily: cisco ceo chuck robinson. apple has plans to outfit the next iphone with oled displays but the main suppliers will it enough production capacity to make screens for all new iphones into 2018. supply issues may force them to version or just one push back the option. riversup, charles ventures will be joining us for the next hour to talk about the venture capital climate after the donald trump win. ♪

>> i'm mark. you're watching "bloomberg technology." let's get a check of first word news. hour, japanese prime minister shinzo abe is meeting with president-elect donald city.here in new york abe, the first-world leader to

election the president reportedly wants to convince mr. trump to abandoned the trade security policies he advocated during the campaign. penceresident elect mike pens said they should buckle up. humbling to be back among my former colleagues. we're excited about moving the trump agenda forward. grateful for the warm hospitality and all of determination to work with our incoming administration to men.america great >> mr. pence also meet with house minority leader nancy pelosi. house democrats want president obama to pardon about 750,000 undocumented immigrants. they are temporarily shielded from deportation under a 2012 executive order. the request reflects growing concern about a shift in policy once

president-elect trump takes office. pounded rebel-held eastern aleppo, killing more than 20 people and hitting a water-pumping station. it's the third day of a renewed air campaign in the city. new york, i'm mark crumpton. this is bloomberg. in new yorky, here city. sidney.iday morning in paul allen has a look at the markets. >> good morning. we're off to a reasonably good start here. 4/10 ofx up for about 1%. the leaders are a bit of a mixed group. software company, up 8%.st also retailer meyer and a couple well as well.oing gold stocks weighing in on the index. overnight,weakened dipping below 74 cents. underssie also came pressure after a disappointing unemployment figure.

5.6% looked rate of good, but fewer jobs than expected were created. the index up a third of 1%. futures also looking positive. news out of japan in the next couple of airs. airbus due to hold a press conference. toy may be getting ready order jets from airbus. october property prices due to be released as well. that's just some of what we're pacific around the asia today. more from "bloomberg technology" next. ♪ >> this is "bloomberg technology." i'm emily chang. ahead of the u.s. election, toestors have been beginning hit pause. in the v.c. world, both the

value and number of deals slowed in the third quarter. that hesitation could spill over into the rest of the year. guest recently published a report saying consumer brands potential thane firms.onal tech notable -- weral are joined now in the studio. you came out with a very, very strong anti-trump message, took over your entire website, leading up to the election. digesting thisen within the firm? >> yeah. i think all of us in silicon valley are largely in shock. know, our statement at crv was really a statement early on about immigration and specifically some of the comments that donald trump had aboutbout muslims, mexicans. as we try and get a handle on think thisened, i election really is about jobs. if sort of first needs of -- i think of the hierarchy of

needs, i think that the data says we really have to embrace message of americans wanting jobs, specifically in the midwest. i guess i'm hopeful -- i think all of us are hopeful that here in we have someone silicon valley, peter teel, that i think has a bridge to the administration. i know personally, you know, i've reached out to peter, i think a number of us are trying figure out, hoping he takes a role in helping us figure out engaged and how to help. >> what did you ask peter? >> for us, it's like, how do we basically get involved? there's a group of us that want secede from the country and i think there's a group saying this is a reality. i think it's a real wake-up call many of us. what do we do to be a part of those conversations and really be helpful to the trump administration? >> do you have any concerns about retaliation? venture capitalists, the large tech company start-ups, they all have their washington cannd help. >> yeah. maybe it's the entrepreneur in

hme. i have to go into this with hope that trump really does want to bridge the divide we have. feels like there's a crack in our foundation that i feel like we haven't felt in a long time. guess, for me, from -- for me to move forward, my way of coping, i guess, is just to be positive. to reach out to folks like peter, to try and engage and we can do to be helpful. i haven't spent too much time thinking about whether i'm on a bad list somewhere and folks are gonna come after us. >> ha ha! camedent barack obama even out today calling out fake news on the internet, on facebook in particular. do you think companies like facebook need to take greater responsibility for the gigantic in americanay society? >> i think it's a great question, emily. i think that the broader question i think we'll see take place is not just about fake news but about the algorithms and the ai that is not only

influencing the news we read but of otherumber decisions we're making in our lives. my guess is this is kind of an theme that we'll see get played out quite a bit. of my for facebook, many friends are quite shocked at the way things have turned out and their responsibility potentially on them as to, you influencingey're behavior, based on fake articles, based on us only reading news from our friends. >> should they have more human involvement in what people see? right.'s >> do you think they should? >> i think it's very early, us understanding what moral or ethical impact and rules facebook needs to have. but it wouldn't surprise me if we do have humans helping edit term.chines in the near >> what are you telling your portfolio companies? >> it's a good question. mostly we're waiting to see -- to me, it wasn't the election that's the news. be the it will presidency that's the news and

the actions being taken. inan tell you that, different sectors, were seeing different reactions. start-up,a hardware trump has said he wants apple to manufacture computers here in the u.s. mean, if i'm a hardware start-up, i won't be able to manufacture my goods in china? if i'm a start-up importing things and i thought the international markets were really going to work for me, it turns out there's a lot of elasticity with consumers. $100 versusat costs demand.ge variance in i think we can expect tariffs. i think those will very much influence demand in international markets. i think in other sectors, like issues like, got you know, if solar subsidies go away. i think it will have a big related tounding energy start-ups. and lastly, in terms of just the pure funding market, there's lot of chinese money coming into the states that's

been funding not just things we've seenlists that and kind of early seed stage starters but also a lot of growth rounds in vr and ar. a number of companies that were to, you know, asian investors in particular who i just sort of stopped everything while they wait to see what happens. well?e you hit pause as >> we haven't hit pause. stagee do is early investment. >> but still, you're seeing investors have been hitting pause. it takes, usually years for our companies to figure out what they're actually doing, so we're still very still taking meetings and still actively investing. side, say, on the talent one of the things that's been interesting to me is, you know, core to us building companies is recruiting. and in the larger organizations we tend to recruit from -- i don't want to be agous, but that have seen a few cycles know how tough it can

be to work at a start-up, when dries up.g a number of my friends at larger companies like google, facebook, who thought that 2017 would be the year they would take risks start-up, they've put those plans on pause. >> we're going to talk about ipo's, comingbout up. today. that story just mentioned, president obama is weighing in on the fake news is circulated during the u.s. presidential election. at a news conference in berlin, obama said democracy will break differentiatenot between serious arguments and propaganda. can poisone articles politics and, quote, we won't know what we're fighting for. the globe ipo market has declined 35% this year. the future old for public offerings under a trump presidency?

>> and this week, we bring you all of our best interviews from the week, including our interview with joe lawnsdale. will the security company go public in the age of trump? tune in this saturday for the best of bloomberg. this is bloomberg.

>> a story we are watching. microsoft will tie executive workforce diversity goals, this after the company saw a second consecutive year of ofline in the percentage women employees. women working at microsoft have 26.8% this%, from fall. largely due to the company's nykea's phone hand set

market. ip volumes have fallen compared to last year, after trump's election victory, many left wondering how the market will be affected in the future. in the latest edition of business week, it is uncertainty in the u.s. i.p.o. market. at charles ventures. we'll start with you. still a lot of uncertainty. lot of wait and see. when it comes to the i.p.o. market, in particular, what are expecting under a trump presidency? >> you have to think about what toys into the i.p.o. market kind of get to that answer. if you look on the issue side, like you said, it's been a really slow year. so there are a lot of companies that maybe we're thinking they in 2016 that are in the pine line. all of my sources are saying that the backlog for companies ready to go is pretty deep. so when it comes to getting out, of thehe other big piece

equation are the marks. companies going real uncertainty because it can equities.tility in if stocks are volatile, you a company public. how it will affect u.s. stocks forward, these are all things that on a macro level tol make it more difficult go. i will tell you, emily, i have not heard of any notable checked,, and i have that have delayed actually going out. if anything, they're kind of accelerating the process to get out early next year before any from the donald would play into u.s. stocks. snapchat, of course, we know now has filed for its i.p.o. they did file before the election. you guys are investors in dropbacks, which we reported is theidering going public in near future. any change of plans? >> none that i can state for dropbox specifically. >> would you advise a company to

stay the course at this point or wait it out ae, little bit? >> yes. there's a number of companies see how theiting to election played out, knowing there would be uncertainty in market. and in the change of administration. that was when we largely expected hillary to win. backlog.that many of my banker friends are active with companies that need to get out. interesting tos i.p.o., wee snapchat have a number of companies here in silicon valley called the decka karnz. those hot companies haven't felt been aed because there's ton of private investor business. companies that have gone out have been the ones that have almost needed to go out. and some others. i think for me what's interesting about snapchat, few're actually one of the companies that, in the spirit of transparency, in the spirit of a number of things, are going public. think hopefully we'll sort

of break the dam for a number of other companies to come out. >> what about some of those decka corns. snapchat has at least beaten these guys to filing. a trumpou think a trump presidencya-- and this uncertainty? so theeems like -- wheels are in motion for snap. they are, as our sources have us, looking to raise as much as $4 billion in the first quarter of 2017. companies, you look at u per, you look at -- uber, airbnb, both of those have regulatory roadblocks they need to work through. as we talked about in the paths uber -- in the past, before uber sold it's business, kind of bigill businesses around some of the big companies that they need to work through. seems like, if they want to go and get out and go public,

to. will be able and i'll point to the interview had with bloomberg television. he is an early investor. even admitted that his ideas of when to go public might be different than others around that company. a lot of factors will play into this. i haven't heard that trump is one of them. companies,ller though, the domestic-based companies, which is a majority of tech i.p.o.'s in a given trump hasone policy been clear on the fact that he bringingget done is that tax rate down for corporate entities. to when it contaminates future earnings, that is actually -- that would be a good thing for these companies that based in the u.s., don't have any interesting arrangements and are payin paying that 35% tax. the smaller companies, some of know of coulde

actually be a policy. for the bigger companies, it definitely seems like it's going to be about, are they ready? out ay think they can get decent vales and are the markets open? right. our i.p.o. reporter in new york. sticking with me here in the studio. coming up tomorrow on bloomberg, james bullard will be on frankfurt,.v., in before the fed holds its final the year. there are tens of thousands of u.s. tech workers whose future is in doubt, next. ♪

>> one of the signature issues was immigration. ofthe newest edition bloomberg business week, we report that more than half of

the u.s. start-ups worth at dollars have an immigrant founder, especially amazon and microsoft. trump has flip-flopped on the they don't count as highly skilled work. program is meant to bring in cheap labor. it,ing us now to discuss coming out in bloomberg business of charlesur guest, rivers ventures. first of all, the headline is talent."s got no what are you hearing? >> we're talking about tech workers here on visas who rely on the existence of nafta, on peopleas, these are creating important value for these huge companies and they are honestly unsure about what come next. we talk to people who are weighing whether they should go buy a house,ans to

whether they are thinking about continuing to raise their children in silicon valley, where they don't feel as welcome as they once were. very personal and also professional questions for them. >> in the last couple of years, zuckerberg has been finding to increase the cap on those visas. now you are just fighting to the status quo. if some of these policies impact how big of an would it have an silico on sili? a great example of a company that for a long time said their headquarters they always be here and wouldn't have big offices outside of silicon valley. it's been so hard to recruit talent into facebook that now we have large facebook offices in london and other places. you add an h1b cap or restrict you'rents and i think going to see the facebook london office probably expand significantly relative to what zuk originally had planned.

>> a lot of uncertainty. some old quotes from steve bannon have been unearthed where he basically indicates that valley has too many asian c.e.o.'s and trump, in the conversation, to his credit, says i still think we should be bringing in skilled talented people. so, again, it's really unclear going to fallhe's on this. >> i talked to people who, you know, looked to comments from trump on exactly that same point. we need to keep and recruit talented people into the u.s., as sort of a beacon that maybe reallysomething he values. on the other hand, it's really hard not to take his comments h1b program without fear. that is a major tool. it's already in such huge have anyone talk about making it more restrictive is something that strikes in a companies' hearts.

>> to be devil's advocate, there tackle thisys to problem, besides raising the cap on visas. that is education. we have enough people in the united states who can do these jobs? anything, this election is forcing us to look at the displacement of technology with the rest of america. i mean, i think that is the core issue. i think we're going to have to revisit that. clearly everything we've been doing has not been enough. me, that's the key question i think that has rattled silicon valley to its core. so i don't have any great answers for you today. ofve invested in a number those companies, and others that help, make it easier to reduce the friction for folks to learn things like programming. but we've got a long way to go. >> other than waiting and seeing, ellen, what are people doing? saar said he e-mailed. what can we do? part of this? is anyone taking action?

>> yes. firmse companies, offering to make it easier for, for example, foreign founders to and starte u.s. businesses. i think that's also been an issue that's very close to the valley, thiscon idea that we could have people come as immigrants to the u.s. rather,take jobs but start their own companies and create jobs. ort's another visa program visa dream that has a little bit more of a shadow on it, after vowed to undo he obama's actions around start-up visas. is something we can see become less likely. >> all right. yourng forward to seeing piece in business week tomorrow. saar, thank you so much for stopping by. it's been great to have you. of thisedition of out world, a rocket blasted off at space stationnal thursday. the crew includes veteran whitson. peggy she will celebrate her birthday

in february and will become the woman in space. she was the first woman to serve as space station commander in and remains the only woman male-dominated astronaut core. she has already spent 377 days in space. six-month mission will push her beyond the u.s. record set by astronaut jeffrey williams. that does it for this edition of "bloomberg technology." all episodes of bloomberg tech are now live-streaming on twitter. that's all for you. this is bloomberg.

>> from our studios in new york city, this is charlie rose. >> we begin this evening with a look at president-elect trump's transition team. has been a week since he had a stunning victory. reports of chaos in his efforts to fill staff positions in the new administration. rudy giuliani is believed to be a leading contender for state.ry of chuck schumer was elected as the next leader of senate democrats. of theow one