and here innesday hong kong we have an update of the top stories. estimates for china are right -- are rising. optimism is increasing with stimulus and better prospects for global demand. point --ng up to six 6.4%. --sident clinton is president vladimir putin is holding more talks with prime minister abe. investments foreign while japan needs to diversify its energy supply. surged afterxports

electronic shipments climbed the most in a year. exports rose 11.5% last month from a year ago. electronic exports rose 3.5%. the biggest increase since september 2015. global news 24 hours a day powered by our 2600 journalists and analysts in more than 120 countries. this is bloomberg. let us take a look at the markets. china and hong kong back online. hong kong on the rebound on property and banking stocks. shanghai, unchanged. a quick check now on what is going on in tokyo. liftese shares getting a thanks to the dollar rally. this is bloomberg. ♪ emily: i'm emily chang. this is "bloomberg technology."

coming up, another yahoo! hack rattles investors. verizon rethinks its $5 billion deal with the struggling web portal. we'll have the latest. plus, a surging dollar slams oracle. shares slide in late trading after the company reports sales miss. and uber's rule out a self-driving car hit a roadblock? first to the lead. verizon has second thoughts about its $4.8 billion deal to buy yahoo! after the company discloses it suffered the biggest data breach of all time. bloomberg was first to report that verizon is exploring its options, whether that's cutting the price of the acquisition or backing out all together. that report rattled investors who sent yahoo! shares down more than $6% at one point in thursday's trade. since the disclosure on wednesday.

we also learned that of the one billion accounts compromised in 2013, more than 150,000 of them were u.s. government employees and military personnel. to put this into context, the other yahoo! breach from 2014 reported back in september affected over 500 billion accounts. -- over 500 million accounts. at the time we thought that was the largest hack of all time. the second breach is double the size. joining us now for more on the future of the deal, bloomberg news reporter ed hammond. also in new york former yahoo! board member and venture capitalist, eric hippeau. what's the latest we know about the deal and verizon's plan for it? ed: i think verizon, they are exploring their options. what can they do here? i think it's inevitable they'll look for a price cut. it's not the company they set out to buy. it's had these serious issues come up. there are also questions if yahoo! knew this was going on and this hack, why was this not disclosed to verizon? i think the issue of whether or not they walk is a slightly more

complex one. even if they wanted to pull the plug it's not straightforward to do that. they need to prove there had a been a material adverse change. they need to say because of these breaches yahoo! has suffered some serious loss of subscribers. they are not going to be able to prove that for a while. so the question of them walking i think is not the immediate one. much more what we should be focused on how they try to recut this deal to make it more favorable. emily: eric, as someone who had known yahoo! for a long time, how do you think it should affect the deal if yahoo! still worth buying? eric: i think for verizon, the reason to buy yahoo!, is for the users and large billion dollar plus user base is still valid. obviously it warrants a price cut or concession. because there is a lot of liabilities here. and they also want -- verizon will also want to protect itself from a bunch of lawsuits that are bound to happen. today there was a number that were announced. to me this is -- yahoo! is

adding to its reputation as the most hapless silicon valley -- in silicon valley. it is time they got their act together and sold the business because the shareholders want to andaccess to the alibaba yahoo! japan equity, and this is just in the way. emily: i did speak with the current c.e.o. of yahoo!, the data deal was announced. there was so much optimism back then. take a listen to what she had to say about the synergies between the two companies. >> for us verizon has tremendous mobile distribution. we are very excited about. but overall i think it represents just a huge amount of scale and opportunity for verizon. emily: eric, what is your sense of whether there was any negligence on yahoo!'s part here? or were they simply too vulnerable? eric: as ed mentioned, it's kind

of bizarre. this happened in 2013. this is 2016-2017. what happened in between we don't know. hard to tell whether there was negligence. but it's -- it's time for yahoo! to get its act together. they need to put a team together that is going to execute this transaction. execute it in the cleanest possible way. it doesn't really matter at the end of the day if there is a discount because the shareholders want access to the alibaba and yahoo! japan equity. emily: how long could this drag out whether it's getting a price cut or dropping the deal all together? how long will the process take? ed: i think if it's a price cut they could potentially do this quickly. yahoo! obviously is in a position where they probably have to recognize themselves this is a bit of a botched business. and verizon are going to come out quite hard and say we want to do this, but we want to do it

for less money, which is fair. that could happen first. i think it's in no one's interest to see that dragged out. the shareholders want to see it closed. verizon, too. this isn't a huge amount of money either way. they would probably want to move quickly. if verizon decides let's break it up completely it could take longer because it has to go through the court. we have to do this thing, verizon proving this is not the business they set out to buy. it has been this material adverse change that. could go on and on and get ugly. emily: how much of a price cut could we be talking about here? ed: one thing mentioned in one of our stories was the market is assuming this is going to knock off almost $1 billion of value, which is quite substantial if you think originally this was struck as a $4.8 billion deal. for that, that would be a huge hit for yahoo! and i suppose substantial embarrassing for marissa who struck this deal.

that would be the most expensive breach in history. emily: eric, called the most hapless company in silicon valley. you still see value. if a deal falls through, what does that mean for yahoo!? eric: it's a big, big problem because i don't see how they can make it as a stand alone business. they have to -- in my mind they have to replace the c.e.o., put a team in place that is going to have to replace the c.e.o., put a team in place that is going to streamline the business and make it attractive to another buyer. possibly at&t who was interested at the time. the landscape is shifting constantly. there is no question that there is value in the billion dollar monthly active users that yahoo! still has. somebody has to come, put that together. package it in a way that's rational and sell it as quickly as possible. emily: if you're marissa, what are you thinking, what are you doing?

eric: you're thinking that your reputation is even more on the line. you have a duty to your shareholders to see this transaction through. it might be hard to swallow a billion dollar discount, but if it has to be done, it has to be done. egos have to be set aside. and the rational decisions have to be made. emily: eric hippeau, managing party, ed hanmond, thank you both. we'll follow this closely. another story we are watching. the murdocks have expanded their global tv empire at 20th century fox. folding in the full stake of sky tv for about $14.6 billion. rupert murdock made a similar bid in 2011 but it fell through. 21st century fox explained how the deal helps push the company's content around the globe. >> combining our fast growing

direct to consumer platforms, including our streaming apps like f.x. now. our interest in hulu, with europe's leading over-the-top service and digital video experience, create the consumer power outs reaching approximately 100 million consumers household directly on these platforms. emily: coming up -- oracle beats on its latest earnings. shares are lower. after hours we'll dig into the numbers next. a reminder, all episodes of bloomberg tech are live streaming on twitter. check us out at bloombergtechtv. weekdays, 5:00 p.m. in new york and 2:00 p.m. in san francisco. this is bloomberg. ♪

emily: oracle's latest earnings beat estimates but revenue fell short of forecast. this marks the company's first

quarterly report since its $9.3 billion acquisition of cloud software did netsweep. the chief research officer joins me to break down the results, crawford del prete. crawford saying they had a phenomenal performance in the cloud. how would you evaluate it? crawford: yeah. thanks, emily. they did have a really strong performance in the cloud. the bottom line is they had some significant portion of oracle's revenue is offshore. they had some significant currency head winds, and that affected their overall revenue growth when you look at the numbers as reported. but having said that, i mean their cloud business is really starting to accelerate. the revenue growth up 81%. this business is really now hitting major milestones. their overall cloud business is now $1.1 billion. so now they are the largest

company, if you will, on a quarterly run rate basis. as well what is really interesting about the numbers is how it's starting to scale from a gross margin standpoint. listening to the call, the gross margins have accelerated from 43% last quarter to 61% this quarter. and guiding to 80% in the long term. once you're through the cap buildout of the cloud, as that sales force keeps humming, the scale happens on the back end where you get this gross margin expansion. emily: quick clip there of the cap in new york yesterday. ahead of a meeting with president-elect donald trump, she was very positive about the meeting. what do you make of the outreach that's been done so far? and whether or not a company like oracle could benefit from a strong relationship with the white house? crawford: in my mind we just came through one of, if not the

most contentious election cycles in the history of our country, and i think what you saw yesterday was the president-elect trying to reach out to the tech community and start a dialogue. there's a lot of cynicism around that. there's a lot of cynicism was it a publicity stunt? the reality is he's engaging the top management of some of the largest tech companies in the world. those companies happen to be based in the united states. so based on that, i think that there it's a lot of discussion around jobs, bringing jobs back to the united states, manufacturing jobs, you and i have talked about this in the past. i personally don't think that they are going to be able to crack the manufacturing job nut. i don't think there is a lot there. but when you think about the repatriation of currency, you think about the percent of revenues, someone like oracle has offshore, a company like oracle, being able to put that money to work in this country as a way to employ people to do innovation on the next phase of

tech, that is very enticing to a company like oracle. and also to someone like president-elect trump, that's something that will employ people and start to change the momentum of how we hire and how we think about hiring in this country. emily: particularly relevant given the currency head winds that played out in today's results. i do want to get your thoughts on another story. facebook rolling out its attempts to crack down on fake news. a combination of crowd sourcing anyone can flag something as fake news. as well as influence from third parties. what's your take on the strategy so far? crawford: my take on this is facebook is doing something which they have rarely if ever done. they are putting something out to their vast network of users and they are basically crowd sourcing a problem. and they are saying, if you don't think this is legit, you

can report this as fake news and we will then start to examine it. they have they have a massive ability to do analytics. this ability to crowd source problems on facebook is tantalizing and gives people a reason to start participating. and it kind of starts to take a gameification aspect to it as well. as you start participating in facebook, you feel like you're having more of a role in what facebook is. having said that, there is a huge risk that the herd mentality could start to dam you mentality could start to dam stories they don't like and push those down. you are you having said that that's why you need the analytics, turns out this is something you don't like, but it is real news. but this ability of giving people a way to participate and crowd source could be applied in a lot of interesting areas. i applaud facebook for thinking about this problem in a unique way. emily: it's certainly not a

game. do you think that ultimately this is going to be enough for that facebook itself needs to take a greater role? crawford: it's not a game. i don't mean to say that. what i mean is that it starts to get people to participate. do i think -- i think facebook has to play a significant role here. and just like 30 years ago, it was really important for newspapers to allow people to have a voice, to be able to write into the editor, to be able to get those op-eds published. i think it's very important that the users of facebook start to participate and also that facebook thinks of itself as a distribution site for media and a place where media is consumed. i have said testimony times, facebook and twitter is the future of media. emily: crawford del prete, thanks so much for stopping by as always.

star wars movie "rogue one" is set to light the box office on fire. it may take in $155 million when it opens nationwide december 16. before it is expected $460 million domestic debut. although there is a lot of interest in the film, it's not likely to match the performance of last year's "star wars the force awakens," which grossed $2 billion globally. the business of building virtual reality. a stealthy start-up backfires. trying to help developers make better v.r. games with the help of google. this is bloomberg. ♪

emily: this week, announced it signed a new strategic partner, google. improbable makes a platform called spatial o.s. a game developers can use to build

virtual worlds. it takes a lot of computing power to create the amount of graphic detail needed to make a good video game. that is the reason why v.r. gaming hasn't taken off. that's where google comes in. with the cloud support to one -- to run the back end of the service. improbable's c.e.o. herman marula joins me in studio for more on the business. you guys have been in stealth mode until now. it's great to have you here. what does this mean in terms of super charging your business? herman: it's all about promoting innovation. it's not just about v.r. but any complex online world has been challenging to build and risky to create. people spend hundreds of millions of dollars trying to build massive detailed virtual worlds. with our technology and google's backing, developers can do that for free. at least during development. emily: why do you think v.r. hasn't taken off yet? cost? headsets? they are too expensive? or not an appetite? herman: finding a killer app. something people can't do without. it was "halo" that filled the x box.

emily: that's similar to something nintendo president told us. take a listen to what he had to say when i asked him about it last week. >> when our game developers have a brilliant idea that can only be done through virtual reality, that's the day you'll see us engage in that technology. but the games and the experience always comes first at nintendo. emily: talking there about why they haven't invested heavily yet. are they making a mistake? are they going to be behind? herman: i think you have to experiment to find out what's fun. one of the first things we realized not just the v.r. but all kinds of online worlds. developers can't iterate easily. finding the fund usually happens with a small team. three or four people even in the largest companies that find something that works. you have to investigate these things and experiment to find something that could be a killer app. emily: do you see potential for v.a.? what sort of potential do you

see to move out of a niche set of hard core gamers to a broader world? herman: i think the key thing to distinguish between v.r. devices, a way of interacting with the worlds and the worlds themselves. if you're simulating a city or modeling infrastructure or doing other things that require the same kind of computational power, it's not just visuals that matter. it's being able to actually recreate behavior to answer questions you couldn't before. the real v.r. revolution is how we use it to solve problems. emily: outside of gaming, where do you see the most common use case? herman: one example, we are looking at problems right now in telecoms where figuring out where a company has coverage and how they think about their investment in infrastructure in challenging. if you build a massive scale simulation, all your infrastructure, and subscribers, can you see inside you can't even get from machine learning

or data. you can literally try things in v.r. and see how they impact the real world. this side of the industry isn't talked about enough. it isn't something people have fresh in their heads. we are very much dominating the conversation. with talk of the device. for me that's the beginning. emily: do you think it will be a consumer thing or enterprise thing? herman: both. i think we are likely to see one great new killer app, a virtual world that wouldn't have been possible without a technology like ours or v.r. headsets or combination. that will spike consumer interests. particularly in heavy industry and where you are dealing with loads of complicated infrastructure to using v.r. to understand that infrastructure. emily: google has its own v.r. ambitions. they were part -- behind niantic which produced pokemon go. is there any future google involvement in your company? there's been hints of a google interested in acquisition. what are your plans? herman: we are building an operating system.

the only way that can be successful if we work with an ecosystem of companies. team developer and developers in general want to know they can trust who they are working with and many options available to them. we are intending to say neutral. google is a partner we think we can do a lot with. there are a lot of people we think we can partner with. emily: herman, c.e.o. of improbable. thank you so much. next, new questions on russia's involvement in the u.s. election. stemming from a report that president putin was personally involved in the d.n.c. hack. how the intelligence community is handing high-profile hacks as trump prepares to take office. this is bloomberg. ♪

>> its 1:30 p.m. here in hong kong. an update of the top stories. the benchmark bond deal goes to the highest since the negative rate policy on january 29. adding 1.5 basis points and putting pressure on policymakers whose aim is to keep the level around 0%. the bond yields may also have been influenced by bank of berica who said they may back on trend this year. almost 10% more than his current offer. changing the closing date to his late as march 31.

allowing expansion of exports from new guinea. replacing the single aisle airbus planes. cathay dragon has started upgrading its planes with the byst new aircraft expected 2019. the airline has not specified whether it's looking at airbus or boeing for the replacement. down 4.5%nintendo despite super mario being good number one download at home and in the u.k., and germany. they expect around 30 million downloads and bringing in $60 million in the first month. this is bloomberg. let's check out on how the markets have been doing in asia today. here is juliet.

x it looks a little negative as we head into the final couple of hours of trade here in asia. it certainly hasn't been a great week for asian equities. the shanghai composite down about .15% after resuming trade from its lunch break. stocksex has -- tiny heading to their biggest weekly decline in eight months, not only the fed interest rate hike propertyerns about stocks. hong kong looking fairly flat at the moment. there has been little bit of positivity coming through from some of the interview players today. australia closed in the red, down by .10% and new zealand had a better session, up by .2%. the front runner today has been japan's nikkei, up by .7% in late trade with about a half hour trade left to go. thear strength following hawkish comments from the fed

earlier this week, sending the again down to a 10 month low against the dollar. we will be live from london at here onof the hour bloomberg television. that is a live shot of hong kong. emily: back to our main focus, high-profile hacks is corporate world and the highest levels of government. intelligence officials say russia was directly involved and influence the results in favor of donald trump. vladimiris reporting putin was also involved personally. donald trump responded with a tweet, if russia or some other entity was hacking, why did the white house wait so long to act? why do they only complain after hillary lost? nick colors national security --

covers national security. what is the evidence we had that russia was involved in president putin himself? >> the intelligence community has not exposed a lot of these specific intelligence evidence of vladimir putin specific involvement. what they're saying according to the nbc report as they are highly confident that he was involved. this report cites unnamed sources and suggests that his motives began as a personal clinton against hillary who russia accuses of having meddled in russian elections several years ago. it began as a sort of vendetta against her and moved to a desire to sort of instill a lack of confidence in the political system. emily: putin's involvement is him directing how the hack information was used, correct? nick: this gets back to the idea

what he wanted to do is sort of show corruption in american politics that the united states goes out and encourages other countries to sort of bend toward democracy and then what he wanted to do is sort of sow doubts about the american system to undermine that message. emily: talk to us about the timing. when did intelligence officials know that the d.n.c. had been hacked? there is some indication this goes back at least a year to the f.b.i. actually calling the d.n.c. and getting ignored. nick: this is the report from "the new york times" that came out a couple days ago that the f.b.i. repeatedly sought to warn staffers at the d.n.c. that they had been hacked last year. and then actually the surprise with that was that the d.n.c. staffer who took that call wasn't really able to verify that this was an f.b.i. agent speaking to him on the phone.

so there was some mistrust about this. the white house did come out in october and say that they believe the russian government had directed cyberintrusions against the d.n.c. and hillary clinton's campaign. this has been known since at least october despite what donald trump said in his twitter message on thursday morning. emily: does trump's skepticism of all this worry the intelligence community at all? nick: yeah. i think there is a great deal of concern in a situation where the president-elect is basically saying he does not trust the intelligence being given. you put on top of that the fact that trump says he's not going to take the intelligence briefing that president's get every day. it's a lot of reputation much he's a smart guy. he doesn't need to sit through it. there have been rumblings among

the intelligence community among people we talked to a sense of confusion and puzzlement why is president-elect donald trump attacking us? we are trying to just give the evidence as we see it. emily: all right. nick with bloomberg news. thank you for sharing that update. the impacts of u.s. election on january 20 president obama will depart his office. many observers in the asia pacific region fear that america's regional commitments will depart with him. with this in mind the asia society policy institute set out to understand what leaders in the region would like to see. from the incoming u.s. administration offering an in-depth brief with recommendations for president-elect. joining us now from washington, d.c., asia society's richard holbrooke ford editor of that brief. lindsay, start with the recommendations that stand out most to you. what are they? lindsey: i think there are two things we heard consistently from authors in this report. one is that asians are looking

for continuity. and two, that they are looking for stability. the united states has played a really important role in asia for the last 60 years. our presence, leadership has essentially allowed a lot of nations to move hundreds of millions of people out of poverty. and the next couple decades they are going to be the same people increasingly moving into the middle class. that's and imperative for leaders in these countries. so they are looking for the united states to play a very consistent role in the region as it has for decades. emily: what are the biggest concerns in this region in particular? lindsey: i think at the moment in this moment of transition there are two concerns. one is that the united states is essentially going to be distracted. that we may basically retrench from the region. we'll be focused on events in the middle east. problems at home. and we are not going to be paying attention to asia in the way that they would like. the second is the flip side,

it's a bit of too hot, too cold problem. the other is they see the call that president-elect made to the leader of taiwan, they see some of the rhetoric between china and the united states right now, and there is a concern that perhaps if u.s.-china relations goes south, if they sour, that would have an impact economically, politically on the security front for the entire region. emily: is there a particular relationship that you see most at-risk? could it be china? lindsey: i think a lot of times with political transitions in the united states, especially presidential transitions, at the beginning of that transition there is often a little bit of a bumpy period while the united states and china as perhaps the two 800-pound gorillas in the room adjust to each other. particularly right now in china they are going through transitions of their own. it is a moment of uncertainty. and i think it's important that everyone proceeds cautiously and they proceed thoughtfully. emily: there's been rapid

technological and military modernization in that region of the world which could ratchet up the possibility of an asian security crisis given trump's more aggressive stance towards china. how likely do you think it is something like that happens? lindsey: i still think it's in anyone's interest in asia, united states, china, no one has been interest in a security crisis. there is a lot on the line. the impact to the global economy would be staggering. and i think all countries in the region are leaders in the region realize that. where the real risk is is of inadvertent crisis. miscalculation. that's where i think transparency and regular dialogue will be important especially in the coming months and years. emily: what counts as a missed calculation? taking a call from the president of taiwan? or dismissing the one-china policy is that a miscalculation? lindsey: i think unclear what the intent was behind the call to the leader of taiwan.

and so i won' t speak for the incoming administration on that. what i would say on the one-china policy i think it has been the basis of u.s. policy for decades. republican and democratic administrations, have both used our one-china policy as the foundation of how we engage china. it's the most consequence bilateral relationship in the world right now. i think you have to keep that as the foundation going forward. emily: trump maintains that the president of taiwan called him. we should say. one of the most promising areas of cooperation between china and india has actually been over climate change and energy security. are those relationships under threat given trump's belief that climate change is a hoax? lindsey: well, you know, he has -- he's said of late, but perhaps he has an open mind on these issues. we saw several of our authors

consistently say that they felt like this was an area that the united states should not dismiss lightly. the progress that had a been -- that had been made. in particular the paris agreement this past year is not only important because of the potential environmental impacts, but also because sometimes climate change is an area where countries like the united states and china, who may be seeking places to cooperate, it gives them an entree where other things may be too sensitive. so these are important issues to continue to make progress on. they are domestic imperatives for countries like china and india. and so i think we should keep an open mind about looking for continued progress in that area. emily: all right. asia society's richard holbrooke fellow, lindsey ford thank you for joining us. end game, cybersecurity start-up secures a $19 million contract with the u.s. air force. we'll dig into the skills and text they bring to defense after working in the realm.

this is bloomberg. ♪

emily: endgame, cybersecurity start-up secured a $19 million contract with the u.s. air force. its technology allows security professionals to seek and evict adversaries from i.t. systems. the company has had close ties to the nation's defense and intelligence community since it deployed its platform to the air force one year ago. joining me from washington, endgame's c.e.o. nate fick. tell us about the scope of your contract with the air force. nate: sure, emily. thank you. we are really excited to partner with the air force to help them succeed in this mission that's so important to the nation. the air force is the elite of

the elite among cybersecurity units in the u.s. government. and obviously they are concerned with ensuring that their networks are safe. and existing technologies have been pretty good at stopping the b team and c team, but the a team still gets in. so our mission with them is to hunt actively to locate and then evict those a-team adversaries. emily: you guys used to be in the offensive hacking market and realized there wasn't a huge business there and moved into the defensive hacking market. how has the transition been? nate: i think it's essential if we are going to level the playing field in cybersecurity to bring an attacker's mindset to bear. the best way to do that is harness the expertise of offense and redeploy, if you will, to equip defenders to counter these advanced threats. emily: so, what kind of special skills do you bring given you know about the offensive market but you're working in defense today?

nate: there are really four skill sets involved in advanced cybersecurity. you have people coming out of the n.s.a., c.i.a., air force who have a very granular understanding of the adversaries and combine them with enterprise software developers who can build stable skillable shippable products. include designers who are capable of building products that are easy to use. you shouldn't need a carnegie mellon ph.d. to use a cybersecurity product. then data scientists. we have practically a university math department of ph.d.s who are writing the algorithms that undergird all this detection technology. emily: a lot going on here when it comes to global cybersecurity. president-elect trump planning to issue an executive order on on day one to prioritize the creation of a cyberresponse infrastructure, yet at the same time he's been skeptical of these claims that russia hacked the u.s. elections. how do you expect the threat landscape to change under president trump? nate: i think the threat

landscape will continue becoming more and more hostile to the united states. for the simple fact that offense is structurally dominant. a doll after offense beats a dollar of defense every time. if the u.s. is going to ensure a basic level of trust and stability in the cyberdomain, we have to bring to bear all the elements of american power in order to deter our adversaries. it shouldn't be about the united states hacking hackers. we should be marshaling every element of military, diplomatic, economic, and informational power to deter our adversaries from attacking us. emily: do you see a security danger in trump being so skeptical? nate: i think that the forensics of cybersecurity are always difficult. attribution is hard. that's one of the reasons why deterrence isn't perfect in this space. during the cold war, for instance, we had an array of satellites in space that could tell us with certainty where a missile launch came from.

there is no analog in cyber. so it does require certain amount of trust or faith in the forensic capability of the u.s. intelligence community to tell us where these attacks are coming from. emily: all right. nate fick, c.e.o. of endgame. thank you so much for stopping by. coming up, uber self-driving cars hit the brakes in california. we'll tell you why the sudden stop, next. this is bloomberg. ♪

emily: general motors is taking a big leap into the future and producing self-driving cars at its assembly plant in michigan. according to the c.e.o. this is a step towards building the vehicles on a large scale. just last week michigan enacted a law to allow the testing and eventual sales of autonomous cars. sticking with that theme, uber has reverted to one of its bad boy habits, ignore regulators.

after dropping. the into testing driverless cars in san francisco. they are saying this is illegal. what could be a rocker road for uber's transition, eric you road -- rode in one of these cars? as part of a story. we'll talk about that. they put these cars on the road without getting the proper permission. eric: they knew they were sort of potentially going to have a little fight on their hands. don't think they anticipated how strongly the d.m.v. would react. google, b.m.w., g.m. have permission from the california d.m.v. to operate in california and uber's like we don't think we qualify as autonomous. they are referring to it as self-driving but not an autonomous vehicle in the legal sense. emily: the cars are still on the road. they haven't hit the brakes, right? is there a stalemate here? they are waiting to hear what

kind of action might be taken? eric: uber has yet to put out an official statement reacting to the d.m.v. it seems like they are still deliberating internally. the d.m.v. on the other hand hasn't said what actual authority or pressure they can bring to bear on uber. so we are sort of in a standoff at the moment where the d.m.v. has said this is allowed. it's illegal. and uber is just been silent. emily: the cars have been opt on the road in pittsburgh and san francisco would be their second city. talk to us about the ride. what was it like? eric: so you have to imagine you have two people in the front. the driver, with his hands just hovering over the wheel. another guy ready to -- he has to change lanes. there is a computer that shows everything that the car can see. and you're riding along and it's autonomous for a bit and the car stops when it hits traffic. there are other times where a bike whizzes by and the guy intervenes. it's hard to tell whether it's the driver's paranoia or the car

sort of failing. there are still moments where the car interrupts. it says -- it beeps and the driver has to take over. my experience riding in it, less than 30 minutes. there were more than a dozen interventions. emily: it's interesting because i was in a google self-driving car four years ago. it sounds like it was similar. it felt jerky. i hear from people who have ridden in google car they say it's smooth. the man who invented car says he drives to tahoe with his family. eric: i haven't done the google car. it's always a very of education. if they are doing it on their campus, that can be easier. when they have to go out into weirder places, they might run into more problems. i think what we are seeing they can cover a lot of ground, but it's like can they handle the random pedestrian who are run -- who is running the red light. all those weird cases and sort of human interactions like when did you let somebody merge?

those will be the real challenge. emily: eric newcomer, who covers uber for us. keep us posted on the stalemate. now to another story we are watching. nintendo's first solo mobile game. super mario run is a available on the apple app store. after collaborating with the smash hit pokemon go. three versions are free to play. the full game costs a one-time fee of $10. we spoke to nintendo america president recently and asked him about the unusually steep price point. >> once people start to play super mario run, they are hooked. from our perspective we think the percent that will upgrade to the $9.99 will be high. emily: reggie there of nintendo, america. that does it for this edition of "bloomberg technology." also my last day before heading out on maternity leave for a few months. caroline hide is with us from

berlin. she'll fill in for me. you'll be in great hands with her. i'll be back before you know it. happy holidays, ever. this is bloomberg. ♪

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