other names being floated include jon huntsman, mitt romney, rudy giuliani, and david petraeus. the president elect will be in fayetteville, north carolina later today and use the rally to introduce his choice for defense secretary, james mattis. mexico could seem top canada as the second-biggest exporter of goods to the united states. officials say shipments from mexico total $225 billion ahead of canada's 230 billion. it would be the first time the u.s. bought more imports from its neighbor from the south. 36 people died in a warehouse fire. the owner's apologizing. he says he's incredibly sorry and describes the warehouse as a mass grave.

some people trapped in the flames sent final text messages to their loved ones. global news, 24 hours a day, powered by more than 26 and in 120ists and analysts countries. this is bloomberg. "bloomberg technology" is next. emily: i'm emily chang and this is "bloomberg technology." u.s. jobs.,000 that is a tweet from president-elect trump. we'll break down his meeting today. fighting words from trump on the campaign trail now have china's full attention. we analyze the impact of a hypothetical trade war with beijing. days after that you issued its ultimatum to delete hate speech instagramlatform,

replies with new production tools. president-elect trump wrapped up a meeting in new york with softbank's ceo. two cedi talk was productive. mr. trump: he has agreed to invest in the united states and make $50,000. and make 50,000 jobs. he is one of the great statesman. means if trump presidency deregulation, that is good for business and could also be good for sprint. softbank is a parent company. its closest rival t-mobile has long been mentioned as a possible merger partner for spring. joining me now to discuss more on softbank in the u.s. is isaac stone. what do you make of this, $50 billion is a lot of money.

>> i personally do not like it. i do not like it because it is not a deal about the economy. it is not about softbank. it is about trump. emily: what do you mean by that? >> you saw what the ceo said. the two things that stood out to me was the use of the phrase "this is going to make america great again, and his comment that he likes trump very much, and the idea that foreign investors and leaders and domestic people as well need to praise trump and say they like trump to get things done is not a healthy direction for america to go in. anly: we are dealing with accidental fire drill in the san francisco studio. that is what you hear in the background, but everyone is ok. isaac: good to know. thank you. emily: some reporters said this money will go to companies and startups.

is he basically buying a better relationship with the united states ? isaac: yes, i think he is. you would imagine that trump and his daughter problematically met with abe not too long ago and you sort of think there's a lot that prime minister abe wants a lot of assurance that they are not going to pull troops out order force japan to pay domestically for japanese defense and what trump wants is money to create jobs, so you would imagine there is some sort there, and part two advances interests with sprint and curry favor with trump is announcing this money. the other thing i don't like about this and deal at least at this stage is that we have numbers, but we don't really have a plan, and it reminds me of how chinese leaders do things, especially with other countries. they will say, peoples daily

flagship newspaper is saying money ininvesting pakistan and we are supposed to assume this is true. what we have been from trump is that the mere fact of him saying it ising does not mean i going to happen. emily: days away from a sprint/t-mobile merger. we are taking a break to deal with this fire drill. thank you so much for joining us. ♪

emily: now, to our worst-case scenario guide to 2017, here is the back story. last year, bloomberg published a think piece to figure out if the greatest concerns came to be in 2016. we suggested the u.k. could leave the e.u. and say immigration fears will lead to the rise of donald trump and he could win the white house. all seemingly huge stretches at the time all caps true. here is an info graph what your social media newsfeed could look like in the pessimist's view of

the future. , very interesting twist, even now, -- trump is real. the other thing that you mention the relationship between silicon valley and washington and potential for a exit, the exit of california from the united states. john: the idea is not necessarily to make predictions buthat will th happen encourage people to think outside the box a little bit. one of the things we have looked at was the prospect of a major rift between silicon valley and washington. you can see now, in the early election, donald trump's picks for his inner circle, his cabinet, silicon

valley is very conspicuous by a absence if you look at a lot of the social and cultural dynamics that have taken place in the u.s. over the last month and certainly with the u.s. election, you can see lots of issues, progressive, social issues. it is possible to sort of imagine it a scenario where you see more and more of a rift between the liberal billionaires who run californian tech companies and the slightly different value such you are seeing coming out of the -- value sets you are seeing coming out of the top administration. over time, that could lead to quite the differences between silicon valley and washington. interesting so donald trump has invited technology leaders to a discussion next week including oracle. we are trying to figure out who will be part of that discussion and we will be moderating power plays out -- monitoring how it plays out. the internet of things could go bad. what do you mean?

john: that was based on a few weeks ago, we all remember what happened when we saw the dod websites on the east coast and what transpired from that. body idea that some managed to hack into these devices that run off the internet. you look at the state hacking we have seen, lots of accusations about saudi arabia and what iran might be doing there. we know cyber warfare is becoming a tool of diplomacy. it is not impossible to conceive of a situation where you might see a rogue foreign elements trying to hack into or distort the internet of things, and to create a major disturbances in american cities. state-sponsored hackers shutting down our critical infrastructure and perhaps even infiltrating our internet of things, our amazon echoes, our google home devices, what

exactly do you mean? again, this is something that when you talk to intelligence services all over the world, it is one of the great concerns that you would see, a major destabilizing hack know, packers and russia, people talking about the iranians. a major effort to take down public infrastructure is one thing we have not seen transpire yet on the scale to which some about or have worried about in the past, but when you look at the worst-case scenarios and try to game out what are the things governments and investors really need to worry about, the prospect of a major cyber attack on a piece of public infrastructure in a western city in the u.s., could be in europe, is certainly not something people are prepared for. youy: given how right on were last year, i think perhaps, we need to be taking these things more seriously. aher, a great guide.

thank you for joining us. another of those worst-case scenarios is that china and the u.s. could go to economic war and while it is still a fictional example, donald trump campaign trail talk of labeling china as a currency manipulator and flouting years of diplomacy by taking a call from the president of taiwan suggests a trade war could be a real possibility. joining us, scott kennedy, director of the project on chinese business. scott, my apologies. we are dealing with a fire drill situation, and accidental fire drill situation in san francisco. how likely do you think a trade war actually is and what would the real impact be?" scott: the likelihood of a trade

war started by a nuclear weapon, arrifs, but one terr started by a buckshot as possible. emily: blackberry ceo john said -- >> i'm sorry to say this, but i think anybody is that dumb. you know, what do i know, right? but if you want to be logical, you want to be a business person, you look at the well-being of everybody, including your own people, and a trade war in globalized systems is absolutely devastating, to say the least. it would put the whole world into recession that probably will be very hard to get out. emily: who does they trade war hurt more? what hurts them hurt us and vice

versa, correct? yes.: everybody in the supply train would hurt as a result of the trade war. the intention is to rebalance the relationship to get a little more reciprocity in the relationship, to open up chinese markets more to imports and foreign investment, but not a trade war for trade war's fake, but of course you can -- sake. but of course, you can get into a trade war, but it is hard to get out. emily: c what i'm has done over the last week, talking about that call from the president of taiwan. he emphasized the president of taiwan called him. not accept a congratulatory call." he said "did china asks us if it was ok to devalue our currency, making it hard for us to compete, heavily tax our products, or to build a massive military complex in the middle

of the south china sea? i don't think so." even taiwan is not celebrating this call. howdy you think the chinese are likely to respond? -- how do you think the chinese are likely to respond? scott: they are back on their heels and a little bit nervous. wondering what this dealmaker is going to be alike. they will wait to -- going to be like. they willing to see what they will do with foxconn and other parts of the relationship. china does not want a trade war either. my now, i think both sides are dancing around -- right now, i think both sides are dancing around the ring. trump is putting the chinese on guard that something more is coming down the pike. emily: taiwan plays a critical role in the supply chain when it comes to the making of the

iphone, for example, and so many other electronics. how could this be affected, the actual supply chain, be affected, if indeed, there is an economic war of sorts? trade warthere is a started between the u.s. and china, but also taiwan could easily get dragged into it, especially due to sentiments that have recently been expressed, i think the canary in the mine for this would be foxconn. foxconn is from taiwan, the largest private employer in mainland china with 3 million employers. the place where iphones all come together. half a million employees. and so, if foxconn runs into problems, they get a lot of benefits from the chinese government to produce -- if they run into problems, we know others in the supply chain including apple and others would face difficulties as well. emily: if foxconn ran into problems, what would apple do? where else could they go?

this is the company that assembles the iphone. scott: yeah, really, they would be in the short-term, stuck and have to figure out a way to solve its over the long-term. over the long-term. everyone in the supply chain is connected to china in some way because one, china has low cost labor the district, and two, because of the consumers in china. it would be difficult for companies to adjust. if they thought it would be a long-term conflict, it would. everyone is taking plan b right now. emily: any idea how other companies are positioning themselves by now given a trump victory? scott: right now, actually, most companies are positioning themselves under the table, trying to make sure they don't get caught in the crossfire if a gets started.ks

they are not overly criticizing the trump administration or the chinese. they want to mentor that if they do come to blows, their business interest are protected. they: scott kennedy from center for strategic and international studies, thank you so much for stopping by. coming up, tech ipo's had a hard year. is the market crying for a comeback? this is bloomberg. ♪

market has2016 ipo been weak at best. it has been the slowest year for ipo's since the recession. only 25 such companies went public this year, raising $3.2 billion according to bloomberg data. compare that to the e $.3 billion raised in 2015. $8.3 billion dollars

raised in 2015. joining us now for a 2017 ipo forecast, ipo leader jackie kelley. thank you so much for joining us. politicalic and factors have been weighing on the confidence around ipo's. what are you seeing when it comes to i-17? jackie: i think we went into this year expecting it would be a slow year because we had all these headwinds from a variety of market factors, but you know, that said, what we have been doing over the past year is working with companies, planning for ipo's, starting as early as q1 2017. we have great momentum building, technology is a big part of it. the unicorns, especially. emily: i had an investor tommy today that we do not like unicorns because unicorns, if they don't sell, they have to go public, and companies are not going public. do you see the unicorns, more unicorns actually taking the plunge? jackie: absolutely. they are working on it.

there has been a lot of focus on unicorns over the years partially because, they are brand names in our household and people are ready to see them go public, that they have not been ready. they have been building their process and infrastructure. we have been behind the scenes with many of them over the years, but we will see them come out over the next year. going to gohat is public. what about uber, airbnb? are they going to feel the pressure now, or are they going to stick to their own timeline? jackie: i think everybody is on their own timeline. i don't think they feel pressure to necessarily go out because the market is excited about them. i think they are doing the right thing. people are really helping them assess their businesses and make sure they are ready when it is time to go. emily: what about when it comes to stock prices in general? do you see that continuing? i think, asnology, far as tech ipo's relative to the market in general, tech

ipo's, just like many ipo's are outperforming the market. just like we don't have as many of them, their performance has been great this year, which is laying a strong foundation for 2017. emily: what about overall? session's one the of these companies is so unique, it will be valued individually. there is a lot of excitement. there will be a positive response from these companies going out. emily: do you think going public is a smart decision? we are seeing two thirds the company's trading above their sales price. do you think that going public is indeed the right decision? jackie: every company is making its independent decision on whether or not ipo now or later or for some, will they stay private? the great uses many of these companies have had access to private capital and a lot of it over the last several years, so

they have been able to grow and mature and take risks outside of the public spotlight. many of them are ready to get out and be visible. being public means you can compete for talent at different levels, that you provide incentives to your employees, have credibility in the market that you did not necessarily have before because people did not have visibility of the strength of your financials. there are a lot of benefits to going public. a lot of companies are lining up to do that. emily: has trumped changed much? jackie: his public policies going to impact things. companies are looking biceps are now to see how that -- by sector now. people are very cited about what potential policy changes might do to their sector. -- very excited about what potential policy changes might do to their sector. some sectors are getting energized around this. consumer products, we will see a lot of rate sectors in 2017. -- great sectors in 2017. emily: old-school retail meats

musical e-commerce. new-school e-commerce. ember grittier rap, bloomberg.com, and sirius xm. this is bloomberg. ♪

>> you are watching bloomberg technology. in greece, riots broke out as dozens of young people through petrol bombs at police. fter aappened a

peaceful march. riot police used tear gas. gensler angela merkel is defending her immigration policies and pledging to protect germany against future waves of refugees. she spoke today at the convention of her christian democratic union. she called for a ban on -- the party formally endorsed her bid for a fourth term. matteo renzi will confirm his to resign. that is according to an italian it news industry, citing lawmakers whose eight renzi will renzi willwho say not -- u.k. prime minister theresa may has agreed to an opposition to to reveal more

details of her plans for brexit but she is challenging lawmakers to back her proposed timetable for withdrawing from the european union. may has pledged to invoke article 50 of the treaty by march. they will debate the position tomorrow. powered by more than $2600 and analysts in more than on hundred 20 countries, this is bloomberg. -- them 120 countries. this is bloomberg. i am joined by bloomberg's paul allen was a look at the markets. paul, good morning. paul: good morning. new zealand, the only market open at the moment. off about 1/5 of 1%. we are expecting better things from the local index in australia. the asxres pointing -- futures running up. the nikkei futures looking positive. keep an eye on rio shares. paul: it has just released the 2017 production forecast.

rio expecting to produce 225,000 copper.refined the big one out of australia today is the third quarter gdp and that is expected to show a rare quarter of contraction of 0.1%, a big reversal of the gain of half a percent. the rba noted we were expecting weaker growth towards the end of the year. i am paul allen in sydney. more, coming up next. emily: this is "bloomberg

technology," and i'm emily chain. human markets facing an industry marcus facing an industrywide -- there are plans to expand the partnership further next year. the space will feature a rotating selection of clothing that customers can buy. this is in addition to the opening of a new flagship store in new york city. jenning me now is jens hyman. this is a 3000 square foot store. this is huge. let us start with you. tell me how this partnership works for the customer. >> to our millennial customer, she values the

most is her own time. convenience is the new luxury. we wanted her to have a one stop shop where if she comes into the store, she could rent all of the outfits she needs, by the shoes and makeup, so everything is cross, merchandise together. we are working as partners to try to cater to the customer first with whatever her needs are. emily: how does it work right come to the business side of it? how are you sharing revenue? >> the most important thing we are sharing is information on who the customer is and what she is looking for when she comes to rent address and comes to neiman marcus to pick it up or return it. our first test in terms of this. we'll see how it goes and what we do from there. emily: if they are renting and not buying, doesn't that take a bite out of potential revenue? karen: we don't see it that way. knowwas tried to get to

the young fashion conscious customer and understand what her needs are. what we are trying to do in the nextess is attract the generation of shoppers to neiman marcus so we believe when she is coming in and engaging with our team in run the runway and our team i -- our name is neiman marcus team -- 50% of youru think closet will be in the cloud? jennifer: right now, 50% of women who are 40 and below go .owards fashion 50% is investing in staples you are going to be wearing over and over again. a substitution a for the items in your closet you would only where once or twice anyway and you are substituting that with high-quality designer merchandise that you control how

long you need something for. emily: the average age of a run the runway customer is 29. d think the same thing will happen and how do you evolve? karen: there will always be a place in women's closets for beautiful luxury products. we have to move towards the shared economy and not away from it and figure out how it fits together in the total shopping experience. emily: that is my question for you with changing demographics but wanting to be able to serve your traditional customers. how do you evolve? karen: this is one test of how we go about trying to really understand how the millennial customer wants to shop in the future, how she wants to engage with neiman marcus, and what she wants to buy, and washing want to take from the shared economy. shelieve our -- and what wants to buy and what she wants to take from the shared economy. i think this is going to be a good test for all of us to learn

how things are changing in the way women shop. interestinge of the things is that year-over-year, the importance of black friday and cyber monday have been decreasing across the board and theories i have is that in a world of amazon prime where you can uber to get your the and you don't have plan how you will eat dinner that night, the idea that you will plan your christmas gifts three weeks in advance to a younger customer seems very archaic. this is the ability to have a last-minute rental. she can career in -- courier inventory from neiman marcus to your office. it is using the store as a warehouse to cater to your need as a professional, busy woman, and so you can get the

rented apparel, etc. emily: other department stores have tried this and it has not worked out. sachs, they said it hurt their sales. how do you balance experimenting? karen: the way we view this relationship with rent the runway, it's nice to be able to date somebody before you decide what the long-term relationship is going to look like, so we are very excited about this and i that in a few months, we'll have a good sense of whether we are going to be able something much more transformational with run the runway. jennifer: i would say as well that we are not in the business of selling clothing, s. a. we are certainly not in the business of selling new clothing. is only way you can buy it going to be to purchase it. we are not detriment in price in

the same way that some of the other folks that you just mentioned are, and we are not offering a new way to sell clothing. your: karen, what are expectations around holidays coming up, given all of the shifting behavior when it comes to millennial's and your more traditional customers? question that no customers are doing more bit of shopping online. that has been an ongoing trend. they are being more deliberate a bout what they are buying. they are doing a tremendous amount of research before they step into the store. interestingking for things to purchase. we are all having to think about all of the transformational changes that are happening in business. emily: we'll have to leave it there. hyman,atz, jen thank you so much for joining us.

torosoft, $26 billion plan take over linkedin has been approved. microsoft pledged not to tie the professional network to its office software. the promise removes any worries microsoft might use the deal to squeeze out rivals. salesforce urged the e.u. to look closely at the deal. they released an updated statement saying that authorities are should remain vigilant of microsoft given its "history and existing monopolies." do not miss quicken loans ceo bill emerson, focusing on the future of the housing market, not :00 a.m., new york time -- 9:00 a.m., new york time. cannb is betting they survive there. this is bloomberg. ♪

emily: it is no secret that tech engineers and employees with coding skills are in high demand and was that demand, engineering academies have become more prevalent but some graduates are finding themselves in debt and unprepared for tech jobs due to the lack of skills taught and duped by their institution. the regulator that oversees coding in california has five schools, including one, called coding house. they have filed an appeal and suspended the program. check out sermon by -- sarah mcbride's full-featured on bloomberg.com. just this year, airbnb teamed up with four chinese cities to allow service in those hotspots.

they started storing data relevant to its china operations, and early moved to comply with the national law due to take effect next summer. question remains, can they compete against china's home sharing market? the home sharing market is joining me now, lulu chen. think is a much for joining us. tell us exactly how b&b has been quietly plotting its strategy in china and striking deals with the chinese government. right, they have been pretty patient so far in terms of expansion in china, not like uber, where they rushed into the country. airbnb is looking for a ceo in we weretry and talking about this topic. they had been pretty patient of finding the right talent. one of the bigger steps is that they are going to store their

data locally in china, which is part of complying with the local regulations on the ground. apart from the regulation hurdles, they will be facing competitors. there is a lot they have to face just for an expansion in such a large market. what does it say about, b, how much demand there really is in china for these services that airbnb provides? like aight, 1% seems really low figure and that it wass like commission rates only less than $2 million. that said, it is an industrywide phenomenon rather than the company specific challenge. if you look at cities like beijing and shanghai, they are

doing pretty well gaining traction and airbnb -- if you venture beyond the bigger cities and into the tourist destinations, a lot of catching up to do. it does not mean that the company will be a good competitor because the company has a lot of backing, deep pockets. emily: in your estimation, airbnb is taking a different strategy than uber did. the chances of success any different? we have talked to so many pessimists who know the china market very well. airbnb is so unlikely to succeed like so many others tech companies that failed. lulu: finding a local partner seems to be the strategy they are trying to adopt now. possibly, collaborating with xiaozhu is one of the options.

they will be facing a lot of hurdles in terms of regulatory requirements and compensation. reporting foren bloomberg from hong kong. thank you so much for that update. reach a major to milestone next year. running the company entirely with wind and solar power. the alphabet unit is the biggest corporate buyer of renewable energy. google says the dramatic recent fall in solar prices have accelerated its clean energy program. down andgurdon sat asked what if there is a shift in the way energy is funded in the next four years? heard the excited we administration saying they were interested in supporting all energy, industry, --

including renewables. that does not change our corporate values. we'll be pursuing that aggressively in the future and that does not change what we do. emily: tesla announced it is voluntarily recalling adapters for electric vehicle charging. the company says there were two reports of overheating that resulted in melted plastic on the adapters. the equipment affected is the nema adapters. appliances.dryer it is sold to the company's online store. replacements will be shipped in the next few weeks. coming up, a major social media power player announces new steps to combat online harassment and bullying. we will dig into instagram's new features. this is bloomberg. ♪

emily: now to a story we are watching. this year's dream -- the supreme court told a lower court to reduce a reward won by apple. the justices said samsung may not be required to pay all the profit it are internal 11 phone models because the features it copied from the iphone were only a part of samsung's devices. the unanimous decision extends the legal battle that dates back to 2011. that is something we will continue to watch. instagram announced several updates and changes to curb harassment and bullying on its platform. the new tools include a common

control feature that will give users the abilities to turn comments off and like comments by tapping a heart icon. it lets private account holders remove followers. here with me now, bloombergs caroline hyde, with us from berlin. using these tools by instagram go far enough? >> i think it is the third time this year that they are rolling out new safety features. they are basically showing the likes of twitter up. caroline: they are trying to get ahead of the curve and stop justin biebers and helping curb some of this bullying. i like the positivity, trying to cap a heart. p a heart. you have to be a private user if you are going to be able to stop certain followers, get them to come off.

all it shows is that they are trying to be a step ahead of the dialogue when it seems every big social media juggernaut right now is facing a lot more stress about having to fight off so-called hate speech that seems to be in the press everywhere. emily: if you have a typical public account, i believe you can block users and there have been celebrities reportedly testing these futures like kylie jenner. they have also, you know, enabled users to filter abusive words, similar to twitter. there seems to be an outcry from the community about these companies need to do more. exactly. the fact that you can have more control so someone who has limited access cannot hijack the public popularity of a certain celebrity or even just a particularly popular friend of theirs and start to disseminate views andeir vulgar hateful comments by tapping into a wider platform.

this is something that will come ahead of the game and putting the likes of twitter slightly behind the curve as they seem to have been so slow to react to this time of abuse. emily: twitter is part of a new coalition to crack down on terrorist speech. the e.u. wanting technology companies to take a greater istnd against terror content. they will create a digital terroristfor tara content. tell us more about that. hashing, so-called you give it a fingerprint. a video or statement seems to be in some way related to a terrorist organization pops up, they would not be able to stop it in the future, immediately alert the likes of twitter, microsoft, and google to stop it being automatically reprinted.

of course, it is down to the individual service provider as to whether they actually take that particular video off-line if they find it on a particular service provider, but it is meant to be showing the e.u. authorities. yesterday, it was leaked, today, it became official that the e.u. was saying, you are not doing enough. you are not doing it could enough. you promised us, six months ago when you joined this voluntary agreement, that in 24 hours, you would be able to basically take down any offensive hate speech, any particular terrorism-related posting. 40% of that is being taken down. germany is trying to clamp down on this. they are saying by the beginning of next year, we want 70% at least taken down. we are seeing these companies trying to get ahead and work together to show that we are taking it seriously. emily: we will see if the e.u. does this strong enough. you will be filling in for me

while i am on maternity leave. thank you so much for moving your life. i am here for a couple more weeks and then it is all yours. caroline: what an honor. it would be a great joy. it would be wonderful to be set in your place, having an amazing backdrop. the seasons definitely worked out for you. caroline hyde, with us from berlin. give her very warm welcome. that does it for this edition of bloomberg tech. next on the show, arianna huffington. focusing on scientific solutions to stress. ♪ . .

♪ from our studios in new york city, this is charlie rose. --rlie: we begin with china donald trump's unprecedented call what the taiwanese president has put u.s.-china relations into sharp focus. it was the first time since 1979 american and taiwanese leaders have spoken in a break from diplomatic practices. trump said it was a routine congratulatory call, but on sunday night, he criticized china's military and economic policies in a series of tweets. in china, and editorial warned the united states risked a