over the city. the army says it reestablished security after effectuating civilians from the east of the city. it represents a momentous victory for president bashar al-assad. president-elect donald trump suggests the military must "greatly strengthened and expanded nuclear capability." he sent out a tweet saying that the u.s. must bolster its arsenal until the world comes to its senses regarding nukes. he named sean spicer as u.s. press secretary. jason miller will serve as director of communications. trump's campaign manager kellyanne conway will serve as counselor. a vote on the yuan security council resolution -- u.n. security council resolution criticizing israeli expansion. donald trump called the resolution unfair to israelis,

saying it puts them in a poor negotiating position. day hourss 24 hours a by more than 2600 journalists and analysts in more than 120 countries. this is bloomberg. ♪ ♪ is "bloomberg technology ." coming up, alibaba's credit crisis, the sequel. why china's e-commerce giant is black on the u.s. blacklist. jamie dimon speaks exclusively, dealing with disruption. after another lackluster year on the tech ipo road carpet, a star-studded lineup eyes 2017 as the year to go public. first to our lead.

a fair punishment, or political power-play? alibaba is named on the u.s. steplist, an leaders and for the company 4 years after it was taken off of the list. some analysts suggesting that the move was politically motivated, given heavy-handed rhetoric on china from the incoming u.s. president. the alibaba ceo wrote to employees "we will not dwell on whether it was fair or just. we need to focus on is how we improve and do even more. we also need to recognize protectionism is ever present around the world, and influences that are not free market orientated come into play." joining us to discuss those influences is our guest host for the inner, bob o'donnell, a new york technology supporter. hit us with it. they took some drastic steps to

reduce counterfeit goods and tackle this very thing. >> alibaba has been surprised. they say they have done everything possible to address all of the concerns. yet they are on the list again this year. casey this as unfair. they think this is probably politically motivated. there have been a number of rising complaints. we saw high-end brands like gucci, with lawsuits saying that alibaba was dropping from goods using their ip. retail associations complaining saying that the usdr should reinstate them. they are not saying that alibaba hasn't tried, they are saying it is not enough. >> are you one of these analysts thinking it could be politically motivated? >> i think it is early to say that. the trump administration is not

in office yet. given that, yes there will be influence toward. at the you have to look legitimate nature of the issue. in china, the idea of using other people's ip to make products has been rampant. i am not saying alibaba is the culprit. but as the largest provider of goods through their taobao store, they are participating in a climate of copyright infringement. host: how much will this limit growth in the united states. >> there are those that specifically look for low-cost brands.s of major if i am an owner, i want to be in control of that. alibaba wants to make a big statement in residence in the u.s.. the sense of the big good

brands, we have to watch this closely. if they are legitimate complaining, the trade group has to recognize that. host: you look at how shares have performed as the record-breaking ipo in 2014. they are down today. how much does this affect investors to buy into the stock? >> i think this will impact alibaba. realistically this won't hurt their impact in china. but abroad, this hurts them in setting up an international brand. it could hurt their goal of reaching half of their revenue from outside of their domestic country. in order to do that, they need to gain the trust of .nternational brands is ainvestors may see it better growth investment. host: is it jd.com that is

coming from china? visit amazon or ebay, where they are not as affected by this issue? >> amazon is an interesting winner in this case. fundamentally we will see a global battle for online e-commerce. we will see players from both sides of the ocean battling it out. i think there will be people that take positions in particular areas and can point to something being critically important. in the long run, there are interesting opportunities for amazon if they play their cards right. maybe we end up with much larger regional players, and not that much global competition. earlier,we mentioned donald trump is not yet empowered. the political climate that executives have blamed, is it going to get worse?

selima: it looks like the government of china is "jump -- is hoping that donald trump's rhetoric would -- would change, but now it seems that will escalate. it is unclear what impact the global climate actually had on the usdr. our analyst wrote an incisive column that they need to stop blaming themselves and do a better job and not limit on broader issues. removed october they 318 million products. fantastic to have you on the show as ever. bob, we want to move to another key story. driving carss self off of the road in san

francisco, acting of a fight with california. sending them to the friendlier streets of arizona. the right hailing giant unveiled it without seeking permission from the authorities. uber has stepped down -- has really stepped down from a clash with regulators. i have to get your take. cardsey playing their right? uber seems to think they can be about -- be above the law. i think uber represents the apex of silicon valley egotism. that is not a popular family -- that is not popular thing to say. do tonot a big thing to pay to invest. this is to make a statement. was it really worth it?

yes, arizona is a friendlier environment. but where is the biggest market for autonomous cars going to be? no question it will be california. yes they are trying to play people off of each other. fundamentally the history national standards around autonomous driving. those will eventually happen. host: will they be able to do this if they become a publicly traded company? bob: clearly management seems to think they can do whatever they want in a lot of places around the world. fundamentally that becomes a challenge moving toward becoming a public company. those questions will be raised. itis seems shortsighted, a b about a bullying match between two people. i don't think it serves many in the long run. host: state versus state.

great to have you. bob o'donnell is sticking with us. take onamie dimon's automation in the future ahead. our exclusive interview with the chief and chairman of j.p. morgan chase. our interviews are live streaming on bloomberg. 2:00 p.m. right here in san francisco. this is bloomberg. ♪

host: a stock we are watching. gopro spiking on concerns of a takeover. last month the company announced it is cutting its workforce as it struggles to gain instruction with its -- gain traction with

its newest lineup of cameras. shares are down 15% this year. bloomberg businessweek's megan murphy sat down with j.p. morgan chase chairman and ceo jamie dimon for an exclusive interview. that will be featured in the "good business" edition of the magazine today. they talk on how automation is changing how we live and work. jamie: technology is the greatest thing that happened to mankind. we would still be hunting buffalo and living intense. agriculture helped specialization. knowledge built on top of each other, with institutions, we went from fire to wheels to steam engines, to these wonderful phones in our pockets. this is the reason that mankind is living today.

i am not going to deny the problems we have. my grandfather was born, there noe no cars, no planes, health care. you got sick, you died. now it is 120 years later, and it is pretty good. there is a book called "the better age of our nature," and it examines things like people that were murdered at the hands of the people. that is coming down every century, including last century from world war i and world war ii. in spite of what you read in the paper. i hope we don't destroy ourselves with nuclear weapons. technology drives it. yes, it is scary. we have done a bad job in being disruptive. let's not hold back technology to improve mankind.

people were worried about autonomous driving. 40,000 people die a year in cars. my guess is that when we have autonomous driving, it will be about 5000 people. it will be a good thing. warren buffett talks about 11 million people working on farms 40 or 60 years ago. now it is one million. do you want people going back to picking corn? is that going to make society better? not really. we can cut the workday to five days a week. i suspect we are already down to four. [laughter] if you and i in running the government, all of a sudden you have 10,000 jobs plus technology, you would use of it down. if a trucker loses a job, he

does not want to go back to earning seven dollars per hour. he wants to live with dignity. there you can redevelop, retrain, and maybe ease the issue. i think it is doable. i would maybe modify how it will function. megan: that is why i am glad you brought up trade. people have felt that global trade has hollowed out their community. it is difficult to explain to people, yes, globalization of industry generally less -- generally lifts boats higher, but not your boat. that has flownge back in the election cycle everywhere across the world.

resisting globalization is a trend that, if it deacons, it will be bad for business. issues where we did not do destruction properly. usually -- hugely beneficial to the united states. you are all getting cheaper sneakers, but somebody lost their job manufacturing them. 75% of the job loss was automation, not jobs going overseas. mankind adjusts. host: that was bloomberg businessweek editor megan murphy in an exclusive interview with j.p. morgan chase ceo jamie dimon. you can watch the full interview tonight 11:00 p.m. eastern only here on bloomberg television. coming up, meet the london-based

startup whose technology may be a game changer for the billion dollar foreign-exchange market. this is bloomberg. ♪

host: networks are scaling down on tv shows for the first time in years. the move signals the pressure from streaming outlets. seriesiginal scripted production in 2015. but most growth came from online services, where growth is soaring. online outlets doubled in the past year. netflix spent a whopping $5 billion on programming this year. currency markets are no strangers to jolts, with at least 3 flash crashes in the last few years. the market is so disjointed it is hard to track erroneous trades. cobalt aims to use the

technology behind bitcoin to simplify this very issue. we spoke to the ceo about the issue. >> cobalt set out to focus on cost and recs reduction -- cost and risk reduction for the market. there is a lot of investment in the fx market that has gone into execution, but little into post-trade. we thought post-trade deserved a look. also the fact that banks are more focused on cost than they have been. we thought that a shared distributed ledger was a way of making that happen. it is the newest concept to come to the market. we believe this could have been done a long time ago. the reality is that fx is a very good use case for a shared

infrastructure. host: does the arena become less fragmented through adopting this digital form of settling trade? it feels like there are many companies coming out with their own form of technology. does it become less fragmented as an industry? >> i think that is right. the industry gets an opportunity to create an effective utility that takes care of things where institutions like banks do not differentiate on. they don't make money on post-trade, it is a cost they have to bear. $10,000 of expense in the industry. there is an opportunity to create something more utility-like, whether by cobalt or third parties. we are very open to a flexible infrastructure.

the key is to normalize transaction data across the industry so that everyone is working from the same comment menominee -- same comment denominator, if you like. host: besides fx, what other asset classes could this be applied to? andy: i think the principles are the same no matter the workflow. there are different principles to the asset classes that have to be taken care of. these concepts can translate easily to other asset classes. the main expertise is important. you have to have people that understand how the industry works. phave spent my way in the ost-trade fx space. i don't understand how transactions behave during their life cycle. -- i have to understand how transactions behave during their

lifecycle. in terms of the different asset classes, i think there will be a common together of concepts and ideas on using technology. host: say that i am in the bay area and downloading out incoming to -- and am looking u.k., howg to the much money will be coming to finance some of these industries? andy: there has been a lot of money going into fintech in past years. i think vc's are looking for meaningful use cases. that will be a game changer in the way that markets operate. there are a lot of campaigns focused on specializations, whether it is regulatory reports or other associations. this is an infrastructure play we are working on. i think it is a game changer in the way the market operates.

as i said, more utility like versus what the banks are doing today, running internal copies of the same transaction. i think vc's themselves are becoming more aware that there are some real applications of this technology. it is less theoretical than it used to be. host: how do you prove that you have won out when it comes to market share? will it be adoption across a certain amount, say, $5 billion being traded in spot fx. how much do you need to share to show that your use of the pie is to be backed? andy: investors are very important -- that is an endorsement of what we are putting together. we have other institutions joining the beta we are working on.

shared ledger, it doesn't matter what asset classes, requires critical mass to get the most out of it. that will drive cost further down and allow services to be more effective. that is the goal. without critical mass, it doesn't work. .ost: that was gobbled dl ceo -- cobalt dl ceo. we will discuss the forces behind going public in 2017 next. this is bloomberg. ♪

>> you are watching "bloomberg technology." a u.s. based muslim cleric is condemning the killing of a russian convoy to turkey. he is also denying accusations

that his movement is behind the attack. ambassador andrei karlov was murdered in turkey. merkelchancellor angela says she is confident the country merkel spoke in berlin after an update into the investigation after the terror attack. fingerprints found in the trunk belonged to the suspect the 24-year-old, who is still at large. they believe he may be armed and dangerous. a state department official says two u.s. citizens are among the 48 people re-injured in the attack. former n.s.a. contractor snowden has remained in contact with russia's spy services, that's that according to a declassified paper from a congressional

investigation. and security lapses are being investigated in the mexico fireworks explosion. some of the stalls may have been too crowded. 35 people are dead and dozens are wounded. 2,600 analysts and journalists in countries. and it's just after 5:30 p.m. thursday here in new york. 'm joined by bloomberg james with the look at the market. >> another strong start in welling ton. looking at the sixth rising day and oakland airport reporting strong passenger numbers. coming up in asia, we have singapore and taiwan. singapore will release its consumer price inflation

numbers. australia and the s&p is likely to open a little bit softer. volumes are starting to pile off as the christmas break approaches but looks set to close the year in its highest level in 2016. that is it for me. more from "bloomberg technology" next. ♪ >> now we talked about the return to the black list to state goods at the top of the

show. and just a few years ago in 2014, the sales freneyed activity. and in the last few years, there is optimism that 2017 can be a big year for companies around the globe to go public. here to give that perspective is sonny miller. snap, honest company. and matthew yon gmp, he published a report giving highlights in 2017 and that will drive up activity. and research president is still here in the studio. i'm hearing from silicon valley talking about the rate of i.p.a. may be doubling or tripling. this is the right time for your companies to be going to the public next year? >> it's a great time.

people should take advantage of it. we had a weak year in 2016. i have been involved in technology i.p.o.'s for 0 years and we never saw anything like it. we had high-tech prices in the stock market. and investor interests and 13 u.s.-venture-backed companies. that is the core. only 13 in 2016, but they did mostlyd traded up 6% and niche companies. as we look to 2017, there are a few big changes, a few companies to go public. we never had more companies of real scale growing, excitement that are ready to go public, tech companies than we have today. so many have delayed because how frothy the private markets were for several years and able to get easier money.

that has changed the institutional buyers are there. we will see the big names and see excitement in the year. i think we'll see and yoom looking at the venture-tech companies and 50 or 60 versus 13 this year. >> matthew, do you agree? because r.p.o.'s did come and few and far in between. how important is the share prices do well and how important that it does well? >> i think snap will be closely watched especially not just in its initial day of trading but the next 30 or 60 days when it goes public. when you think about the private markets and what sandy mentioned, when we look at the data, a lot of the public market

investors who have gotten into the private markets have slowed down in 2015. if you think of the mutual funds, they have done fewer new they nd hedge funds and are active in the private market doing over 30 new investments in private tech companies in the u.s. and doing very few this year. and starting to see a lot of companies tap in the deproth stage in terms of where those sources of capital is coming. >> the particular areas that we are going to see investments in. do you see hot areas in 2017 for i.p.o.'s? >> when you look back at 201 and the companies that went public, almost all of them were enterprise or nonconsumer companies. i think when we look ahead to

2017, there is as sandy mentioned, a strong batch of companies who are on the i.p.o. pipeline and stand the gambit. but enterprise, we see offerings and look at some of the companies, and like inside sales companies that across the areas within enterprise who have grown and are profitable companies who may make the offering next year. >> one of bloomberg's new functions and all about the barrowmeter. we are seeing growth and 14% and seeing the yellow line, the exit has been in negative territory and down more than 20% in terms of how we are seeing it slow

down. how much has it and you are looking at europe, europe could start to see a little bit more money and getting more startups and more billion-dollar companies. how much we need it to sustain the system? >> it's remarkable that the private investing markets has been as healthy and robust the last three years. but that's not sustainable long-term. but there is pent-up a large number of exits both i.p.o. and m.n.a. o. it cycles with the i.p. market. they have massive amounts of cash, tech companies with massive cash hoards, those companies are going to come in

and take up some of these private companies once they are thinking of going public. so that is a catalyst for the making of a final decision of moving forward. i think we will see exits and critically important to the health of the overall ecosystem. >> give us a sense of regional differences. maybe asia is cooling. and that didn't go off with much of a bang. where do you see regional growth? >> the biggest one is political. the big question i think next year is what impact does the trump administration have. we can talk about the possible bill and all of that can get blown out of the water in 30-60 days. that will be a big question is what kinds of political environments we will see not only in the u.s. but a lot of nationalistic momplets in europe and a lot of things happening in china as well.

i think the political environment may have a bigger impact that we have seen in quite sometime particularly around i.p.o.'s. >> you will be sticking with me. to have ks and great you gentlemen on. hackers in russia are now targeting publishers and advertisers and the new technology getting millions in revenue.

>> ahead of the u.s. presidential election has resurfaced and ukraine. researchers say the diversion of the code was designed to

anddestroyed app. and the company said it is further evidence that links russian intelligence to hack ata tax. and five mill yonch a day from the u.s. brand advertisers and media advertisers. the technology allows the criminals to steal revenue to market its site. bloomberg.com was one of the publishers. ill with us and michael, fascinating report that you put out. quite the list of companies affected. "new york times," "wall street journal," facebook and yahoo!. fake internet users we need to

be worried about. >> this was an extraordinary cyber forgery. the criminals were counterfeiting ad inventory on the most popular web sites on the internet and selling robo views of those ad. >> they are doing this in one way -- how were they doing this? you got on the call with some of these on tuesday? how can they defend thepses? >> kuwait question. there were extraordinary elements of this attack. they were actually penetrating some of the architectural systems of the internet so that servers that were under their control looked like computers spread across the entire country. so the rmpompbmp o views they were generating looked like the views of real engaged consumers.

real engaged consumers visiting name-brand properties across the web. now the way that advertising is sold on the web is by the impression. in this case, they were serving video ads, the most expensive kinds of advertising on the internet, so many advertisers were eagerly bidding and serving ads to what looked like these engaged consumers. >> so, michael, two follow-up questions to that. number one is, paid views and counting of media hits has been an issue for over a decade. how much worse is this than what we have seen in the past? >> this goes beyond a measurement problem. this is not just a mistaken way of counting the metrics on-line. the group was exploiting every

measure of advertising success. the ads they were serving looked ke they were going to real consumers. and the ads appeared as if they were on name-brand web sites which means this was a counter fitting operation and the money that was going to the gang was really meant for name-brand publishers. so it wasn't just the advertisers, but actually all of these web sites as well. >> and that's clearly an issue, but it does raise the question in my mind and other people's mind, how do we know the ackra cyst of these accounts in general. we have had web sites talking about billions of users and numbers that are staggeringly high and you have to wonder if there are concerns about the viability of those numbers as

well and does that raise that issue as well. >> i'm glad you asked that question, because the industry has been struggling with those metric issues for some time and the call that we had on tuesday call and ion-oriented at's different now this is different as part of the entire industry to ex punk this group. so when we came together tuesday, it was not to come together but to exchange the actionable data that was necessary in order to completely cut off the operation. the operation was substantially more sophisticated than the d.n.s. changer run out of estonia. however, we just ended it far faster than any such operation has ended it before.

>> great to have you on. thank you. it's becoming quite the co-hothe. n friday, former a pharmaceutical c.e.o. tune in at 7:00 a.m. eastern time. now coming up, tech continues to e breaking ground. will the momentum come to a halt. we'll discuss next. ♪

>> take us through the high points. >> it was about a year end for business week and time to reflect. a great year for tech. one of the interesting moments from the summer was when the five most valuable companies in the world by market cap were the five big companies. and lasted seven weeks. and then you mentioned a couple of the tremendous break-throughs and if there was a theme, it was artificial intelligence moving out of the lab into people's

homes. the amazon echo and i don't think we can grapple with it. it will be disruptive. it will amplify our lives and the year ends with the election of donald trump which takes silicon valley by surprise because it was in the corner of hillary clinton. >> what i think is fascinating here is going to be the setting of 2017, what is the responsibility of these tech gipets now? >> i'm interested to hear what bob thinks. this kind of philosophy of neutrality. we are platforms. we let all traffic is equal. and things are engaging. and that doesn't fly anymore. and we see it with facebook and google and tech companies have to take a stand. will they build a muslim

registry. they can't escape on the neutrality. >> these are all great issues. and you have to start thinking as well about the implications of what it is that you do. a lot of the effort, the implication is how do we make more money? that makes more sense. some of these ladger socioeconomic type changes, this are not just technology, what are the impacts of that, what are the implications of those, how do jobs get affected and how can technology be applied. a shared dog-walking service, 0.5%that's interesting for of the world, but agriculture and health care and some of these areas that haven't been looked at, i think that's going to be critically important and taking a stand and trying to

address those issues is part of the problem. >> for me, it's what will investors will demand. because until now, it will be evil, will investors say i will invest only in companies to take on the responsibility? >> as we know investors by and large are worried about the next quarter and interesting, there has been a re-evaluation in silicon sale. how do we organize our companies for the long-term benefit and you have the example of amazon nd google and fast book that have insulated themselves from the market. you have efforts like a company we wrote about. the long-term stock exchange to create a whole new set of rules. and not just for what investors want. >> there are fund that have been specializing in companies that

do good work. those kinds of things. but they are not a huge piece of the overall puzzle. another big question we have to consider is going to be around again the value that you can provide to areas outside of tech. there have been some principles that have been driven-tech that have been questioned. outsourcing is the way. it's popular and the crowd source thing and therefore that should win. that is not always the best case. the cor principles have to be reconsidered as well. >> i urge people, get into business week and read brad's piece. and read the highs and the lows. thank you very much. and bob o'donnell, thanks to have you with us. that does it for this edition of

"bloomberg technology." tomorrow we focus on the future of the space technology and oined by one of the experts. and one last piece of crucial needs, a huge congratlations who welcomed a baby boy. he came out at six pounds, 11 ounces. what a happy way to end this show. and have a wonderful and festive season from emily chank. ♪.

>> from our studios in new york ity, this is "charlie rose." charlie: christmas, jon stuart, thanks for doing this. charlie: this is the today show. chris, why an oral history. >> come on. >> the title, if i did it, was taken, so we had to go with the other title. >> because it is an oral history. >> and the people who performed this show are so interesting and are really not