order of business. he urged the gop to include the transition period to keep people on health care until they revealed their remedy. on capitolbama also hill, defending his signature legislative achievement. the president focused on how well the law is working. former indiana senator dan coats is a front runner to be president-elect donald trump's director of national intelligence. that is according to people familiar with the decision. towill also nominate someone run the sec. he is the latest trump take with deep ties to wall street. dylanin church shooter roof did not ask jurors to spare his life during opening statements. prosecutors plan to call as many as 38 people related to the nine people killed as the trial continues. dayal news 20 for hours a

powered by more than 2600 journalists and analysts in more than 120 countries. i am courtney collins. this is bloomberg. bloomberg technology is coming up next. ♪ >> i am caroline hyde. this is bloomberg technology. the tech surprise stories of 2016. we discussed the potential winners that investors should keep an eye on. a car that talks to your house. we had to ces and talk cloud control. concernssecurity surrounding russia are front and center, we hear from the former cia director on the

president-elect's approach. first to our lead. surprises of 2017. amazon will undergo a major investment cycle. after worries about investments. they could shut out big bucks and still boost its margins. the company says the number of merchants is up 70%. the virtual assistant makes waves at ces. for more on amazon and the rest of the talk text prices -- top surprises, we are joined by mark. let's kick it off with amazon. you say the money can still come in in terms of profit. big difference between amazon today and 10 or 15 years ago is they have amazon web services, the cloud service, which has margins text better --10x better.

they have more cash with which to make investments. they are saying quite loudly they will make aggressive investments. they have reached a scale they can do that and still run the business properly. that cloud cushion allows them to do that. caroline: it is one of your top picks for 2017. let's have a look at where potentially they could perform versus s and p. not so pretty last year. they did lag in the s&p 500 overall as a benchmark. what about 2017? 2015 was the year of dramatic outperformance. to seehere to -- rare outperformance two years in a row. 2016, frankly up until the trump election, the sector had outperformed.

we have had this trump rotation away from growth. i am not sure how long that lasts spirit -- how long that lasts. with netflix, we think they can add more subs in u.s. and international markets. modestly facebook outperformed the market, but it is dramatically d rated. -- derated. we could make the money on the long side. caroline: looking at the chart, they actually performed in order better. google was the laggard for 2016. looking at the overall market, i went to google -- i want to dig into google. some of their outside bets could actually bring in some money? >> that would be a surprise. we think it is something that probably won't happen. the odds are grading -- greater

than the market ascribes do. netflix has come down because people have become skeptical about the other bets. what about nest and home automation? google fiber has been caught back. the market has tuned off and tuned out that segment. there are some interesting bets in there. when it comes to autonomous vehicles, there are one or two or three winners. google could be one of those. when is hard to know. when those bets start to show any materiality, that will be the surprise for investors. caroline: you actually think the market is too optimistic on twitter? has underperformed two years in a row. we think it could be the case again this year. the street believes there will be the acceleration of growth this year. that could be a risk. the actually think there is a

reasonable scenario in which revenues decline. we're not seeing it in terms of advertiser interest. issident-elect trump interested in twitter. weeter-in-chief" is what i think they call him. be pulling away from the margin. that is a problem. caroline: twitter does not look too pretty. a little more about the politics side of things. you are saying this is still a bit of a concern when it comes to the bank investment -- fang investment. been a're clearly has rotation toward new areas. this has been a very slow growth economy for a while. , the highowth stocks quality ones have outperformed. now that the rest of the economic road seems to be picking up, i get the point that

less for the premium. in terms of whether trump would have an impact on the internet stocks, it is unlikely. there are two areas we watch out for -- net neutrality, and then this talk about these border adjustments taxes or putting taxes on changing how you would allocate cost to companies, that is something that can have a material negative impact on amazon. we don't think that will come to pass, but those are two watch areas for us. caroline: it did not come to bear, but will they get bought out this year? >> we like the company follmann delly -- company fundamentally. it is a great playoff local advertising, albeit in the u.s., and possibly local transactions. there are a range of bidders out there, any more willing seller. you finally have a seller that is willing to sell.

reading yourat note, loved having you on the show. markets.capital on the latest tech funding board, apple is planning to invest $1 billion in soft banks nude giant technology fund for global startups. apple said it has been working closely with softbank for many years. they hope it will speed the development of text that may be strategically importance to apple. ceo told president-elect donald trump half ofth that about the fund would be invested in the u.s., creating about 50,000 new jobs. coming up, we will speak to the ceo of harmon live from cef -- cef -- ces. episodes of bloomberg technology

are lower -- are now live streaming on twitter. this is bloomberg. ♪

to lase: let's head vegas, nevada, where the consumer electronics show is underway. harmon, one of the leaders in the automotive industry, is creating a new platform called ignite to make tech in kites are -- inside cars more streamlined. we are joined by the ceo. welcome to the program.

apparently ces is all about baton is vehicles and a voice commands. it looks like your concept car has a bit of both. >> there must be a lot of echo here. could you same that one time? yourine: talk to us about concept car. tell us what you have been announcing at ces. , last year itl was all about connectivity. we were doubling down all of us in the industry. this year, we are showing in life technology in limitation, the four pillars of conductivity. that is cloud applications, that is collaboration of many technologies from apple, samsung, ibm, google. the third is customization. more and more auto buys asian is getting complicated for users. we want to bring the human side to machines.

the fourth -- most important for hacking, cyber security. you cannot have a home connected car unless you have secure connection around it. conductivity, the megatrends we are showing here in the home as well as in the car and enterprise. >> you are talking about driving in a self automated car. it is already seamlessly talking to your garage and talking to you. when is this a reality, not a concept? it is actually more than a concept now. as technology, i think it is ready. the infrastructure, roads and city, we are not ready to deploy. have 800 million cars on the road today. they are driven by humans and not intelligent.

from a driving point of view, i think five-10 years for a sweet spot where you start to see proliferation of these technologies. a lot of things also have to catch up -- cyber security networks and the whole infrastructure has to really evolved. we cannot risk the data and human life. otis is a week -- weak sp right now. the germans, the japanese, the americans are spending hours and hours talking about how to increase cyber security in the cars. it will be really exciting in terms of implementation. caroline: who wins? the tech giants or the car giant's? .> i think consumers win we had a clear segregation of responsibility. the car companies have the expertise making cars. the technology application providers have a role to play.

we have to bring in the user interface, the human touch. the whole customization. i carry my personality for my clouds to the bedroom to the living room to the office to the car without sacrificing or compromising. that is our role. we are also showing a professional implementation, working with ibm to how we can bring that technology to hospitals. we will free up medical professionals time and get the basic information and test results from last week. itemized visitation hours. i think the technology is coming. i really focused on the consumer. caroline: who has the data? who owns the data? well the car companies own the data, will the technology giants of the data? >> i think again it is a

convergence. there is a lot of debate. should apple or google get into carmaking? we collaborate with apple and google, but we also compete. we have taken a position with samsung come again, announcing thatwe collaborate position thad carmaking. get into we are with daimler and already and gm and ford and chrysler. our role is to mature the technology and apply it, keeping an eye on user interface. technology is only as good as it is simple to use. that is what we are bringing to market. the convergence of car and application service providers like harman. caroline: how is the integration? >> i think integration has not started. once theonly start deal is consummated. right now the process is

happening. by the middle of the year, it should close. regulatory authorities will evaluate it. i am very happy. the top 10y visited or 15 investors one-on-one. they are very happy with the premium they got. it is a great complementary deal for the stakeholders. it is very strategic. caroline: will you be making any more acquisitions? you made one yourself after being purchased by samsung. are you on the mandate trail yourself -- m&a trail yourself? >> if you want to be fast to the market, you have to be alert and agile. sometimes you have to do your own developed meant organically -- development organically. partnerships.ced we will definitely make some

unique technology acquisitions, especially in the area after safety and sensor detection and technology. we have the confidence and data. they have the whole thing with cyber security wraparound. caroline: let us know you make those deals. thank you for joining us live from ces. tomorrow we continue our coverage from ces with the iac chairman. headlines.th there was an announcement regarding live streaming platforms. the company announced a pact with cbs, the most-watched network in the united states. this is along with 35 other channels, including abc, fox and tbs. it will launch in the next few months and cost likes and $40 a month. speed up a network. the company is set to test a 5g high-speed network by beaming direct tv now to some users.

it has reached speeds of up to 14 gigabytes a second. they believe it may be a faster option than fiber-optic cable. from the cheapest power on earth, just keep looking to the skies. how cold powered energy could fall to solar, next. this is bloomberg. ♪

caroline: there is one asset we continue to watch -- bitcoin hitting a all-time high wednesday. to continuedd adoption in china and other parts of the world. additional currency, which just turned eight years old, reached a new high of $1150. coming up, we will hear from a former cia dr. -- cia director jim wolf the. next, we are going to be talking about solar, turning to

renewable energy. there seems to be a bright side to seeking the cheapest power on earth. solar power is more affordable than: some parts of the world. in some parts of the world. coal come back, or has solar won the war? chart told a thousand words. slumping and cost of producing solar energy. what is behind all of this? >> i think it's price a lot of people. most of it is improvements in technology as well as looking at subsidies that have helped the industry along. they gained economies of scale, and that is what is about. --rovement and expense expansion in production. caroline: we have a great chart

showing how much the cost of solar farms has increased. by 2025, we looking at the dollar per kilowatt, which is quite phenomenal. what countries are leading the charge? i'm assuming it is the sunnier climates like the middle east? they certainly help. solar is much more effective in solar climates. it is true even in germany. they led the way insular expansion. early on, they spent a little more so they could advance the industry. it is not going to matter within a decade. whether you are a sunny country or a somewhat rainy country. wouldour home in england probably be a good place for solar. caroline: really? they are growing wine in england now. give us a sense of whether we will see donald trump, who had so much talk of the resurgence of coal, is all that talk?

can coal have any sort of research it's? -- resurgence? >> colas more expensive than a number of other energy is moregies -- coal expensive than a number of other energy technologies. if you look at the economics of building a new plants now, solar is half the cost of coal. meoline: what intrigued about the first chart, yes there is a plummeting in the cost of producing solar energy. wind looks pretty cost-effective too. wind and up being the most efficient. what happens perhaps when wind is blowing the sun is not chime? shine? not >> the wind blows stronger during the night generally. i think you will see both of them continue to expand.

it is going to require all kinds of energy, because solar and wind do not always go. need someng to generation that is there when the wind does not blow. that is usually natural gas and nuclear. talking of nuclear, i was just coming from berlin where they have been returned to out of nuclear. where does nuclear fit into all of this? nuclear is a lot more expensive. it is harder to gauge, because there is so much cost overrun. it takes so many years to build. one of the advantages solar has is once you have the panels, you just drop them on a roof or on the ground. you can put up a plant in six months. a new coal plants takes years to develop. a new nuclear plant could take a decade.

solar is so much less than that. it is advanced to the point you don't need to worry about the time so much. caroline: bloomberg's chris martin, great to have you. to another story we are now watching -- alibaba continues to crack down on fake vendors, taking legal action against two sellers. swarovskielling fake crystals, and they're seeking $2.5 million in damages. alibaba reported it took down 380 million products and closed about 180,000 store platforms in the last 12 months. if you like bloomberg, check us out on the radio. you can listen on our bloomberg radio app and on our website. .

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show me house of cards. finally, you can now find all of netflix in the same place as all your other entertainment. on xfinity x1. anything with a screen is a tv. stream 130 live channels. plus 40,000 on demand tv shows and movies, all on the go. you can even download from your x1 dvr and watch it offline. only xfinity gives you more to stream to any screen. download the xfinity tv app today. courtney: i'm courtney collins and you are watching "bloomberg the new mexican foreign minister has been named. he resigned after a visit by then a presidential candidate

donald trump. from called him a brilliant finance minister and wonderful man. britain's former ambassador to brussels has been appointed the u.k.'s new ambassador to the european union. he served as the u.k. envoy to moscow. he takes over for ivan rogers who unexpectedly resigned yesterday. the french presidential candidate, marine le pen says a protectionist economic policy was good for employment in france, pointing to president-elect donald trump's success pushing forward to keep jobs in the united states. she is looking to using early successes to prove her platform can deliver benefits. german police have searched to locations linked to the man suspected of carrying out last month possibly -- deadly truck .ttack investigators searched a refugee shelter and apartment where men believed to be acquainted with the suspect once lived. areia and the philippines

in discussion about increasing military cooperation after theated threats by president to scale back u.s. troop presence in the area. russia says it is ready to begin arming the southeast asian nation. global news 24 hours a day powered by our 2600 journalists and analysts in more than 120 countries. i'm courtney collins. this is bloomberg. it is just after 5:30 p.m. wednesday in new york. 9:30 a.m. in sydney. i'm joined by david ficklin with a look at the markets. and pointingorning up at the open, the new zealand exchange today slightly more ambitious and australia, pointing up about .5%. we will be watching the chinese currency today. it had one of its biggest jumps in a year yesterday.

there was a report from bloomberg news saying they were trying to prop up the yuan and looking at ways of extending capital outflows. we are also looking at japan past egg carmakers after results from the u.s. overnight. all three significantly beat expectations. little carmakers were a weaker. that's what we will be looking at today. caroline: this is "bloomberg technology." cyber threats and security are emerging as a major concern for 2017 at comes to

head this week. senator john mccain has scheduled a hearing of the armed services committee to tackle the issue of foreign cyber threats, but president-elect trump continues to cast doubts. he said the intelligence briefing was delayed until friday. a former indiana senator is said to be trump possibly leading candidate for director of national intelligence. the cia director, jim woolsey, spoke to bloomberg about how we should be focusing on the rigor picture, trump's transition into power. >> this is a minor blip. the intelligence business is controversy and arguments about assumptions and why did you do this or issue that? what do you mean by weapons of mass destruction and on and on. this is a hiccup. >> respectfully, it seems like the president-elect is taking a

different tone in previous presidents have. what has it been like historically between the president and intelligence community? to buy aesident ought few months into its administration have been taught a good deal by the intelligence community about how things work. it takes a bit of time because some of these areas are technically complex. but as you learn about them, you get to do a better job understanding of what we know and what we can draw conclusions from. so, it's an older teacher-student relationship and the student is the president of the united states and the holder of the position one might say is the most important and powerful in the world, so it is a different kind of relationship. i have worked with for

presidents, two republicans and two democrats. they have all been willing to hear a different take on things. i have no reason to believe donald trump won't do the same. important the intelligence community helps the new president and not sit back and criticize. presidentseard past talk with reverence about the briefings a receive and how awesome for lack of a better word it is to get that information. is donald trump spending enough time in class? are you satisfied he is being briefed enough? >> there is more than one way to run a class. in the two years i was director for president bill clinton, he never had a morning briefing. briefed.t like to be

he did not like to have stuff read to him. i was a speed reader and suppose is still a speed reader and he likes to go through things quickly and ask questions in ae side or right a note book of briefings. the fourth point seems to be to track what kaplan has in his new book, bill clinton did things like that all the time, which was different than sitting there and taking the morning briefing, but that is the way he wanted to work. however the president of the wants to have information presented to him, people need to accommodate and not sit back and grumble about it to the press. return to that previous tweet and say he was perhaps joking about the matter here. i wonder what you would say to someone in the intelligence community who doesn't welcome this kind of skepticism and

wonder it's about publicity associated with the job and the question of the president-elect's commitment to the intelligence community and the job it does. would say pull yourself together and get back to work or find a different job. intelligence is important enough, tough enough, and from time to time, angry enough that it is important not to get distracted by small matters. you have to call it straight. if someone comes at you, whether it's a cabinet secretary or vice president or national security advisor and tries to push you off a point and you think you're right, you address it clearly. based on a couple i-8 cup -- couple of meetings i have had with them, that donald trump is a fair-minded and balanced

individual. he talks rationally and reasonably about matters in small groups. the only time i've seen him in front of thousands of people is in an auditorium, and in that, he is very bombastic and a different kind of approach, but a lot of people said they thought that was worthless and was not going to go anywhere, but i got him elected president of the united states and did not elect any of the people who are skeptical. caroline: it was a former cia director speaking on bloomberg television. president-elect donald trump is stepping up his criticism of the intelligence community while bringing up a controversial figure. julian assange said a 14-year-old could have hacked john podesta. followingtory we are -- and online publishing company, medium, is cutting a third of its staff and changing

its business model. the company has relied on the same model as other media companies to make money, placing ads on articles. williams called them bottle broken. the job cuts fall on the sales and business side. coming up, after months of anticipation, another glitzy unveiling in the electric car start up. not everything went smoothly on stage. we will tell you why. ♪

caroline: ford and tweeted a have formed a consortium in attempt to control how apple and google connect smartphones to

their cars. goal is to speed up development of the auto industry standards for in vehicle apps and promote more choice in how smart things integrate with dashboard displays and voice recognition. hasing with car tech, ces brought us another glitzy unveiling from the much-hyped electric car start up, faraday. the company came back with its first production model and they claim it can outpace a tesla claimingn one mode and it is the fastest electric car. it is backed by an ambitious billionaire come at the founder and ceo of a chinese tech conglomerate. joining us for more is cory johnson and selina wang. fastest --e of the facial recognition, but an ambit of an embarrassment on stage.

park as does not self you might expect. even a cheap ford can do it. it's interesting to see him any companies can work with this. we tend to focus on tesla because it's a silicon valley company but automakers from startups like this or companies like ford and many others, audi and bmw, all working on a lot of these ideas. -- tesla might have pointed the way but a lot of companies are coming fast into the space. the chinese billionaire was at the event. it was him -- he called it a bit lazy. tell us more of at the billionaire behind this company. very well-known in china and is known for being very brash and ambitious, sometimes too ambitious. a local i.t.t as

guy at bureau and made his fortune in a publicly traded company which is like the netflix of china. from there, he has expanded into a slew of other businesses ranging from smartphones, virtual reality headsets, you name it and he has expanded into it. but we are seeing that he may have expanded to aggressively. he wrote in an internal memo that they are moving too fast and having trouble raising cash. andhe is a very brash well-known person in china. he says apple is a slow innovator and we can beat you on musk at tesla. -- beat elon musk at tesla. the model s was unveiled, elon musk could not get the car to open and another time he smacked his head when he was trying to show the headroom.

livea tall guy but these demos a la steve jobs are hard to pull off and it's interesting that you see every ceo who think they have to go out on stage in a black turtleneck and introduce their product as opposed to a cars and other devices used to be released. talk to us about the money being put into this particular element when it comes to the billionaire. how much money is he winning or losing? in $300 million of his own money into this. funding unique way of his adventure -- funding his ventures. can reservehat you this car for $5,000. it is unclear how much it will retail for when it comes out in 2018. there'safter last year,

a lot of skepticism around faraday futures since they did not release any functioning car, merely a concept car. this year we got a functioning car but there are still a lot of questions about how they're going to make money. it is unclear what the business plan is going to look like. caroline: $5,000 to order. talk to us about what is going on at tesla. they do have a factory and it is up and running. tesla has a history of not getting its deadlines and missing its own estimates. production is hard. tesla, this quarter, said they had production problems, they have the same excuse for missing numbers of force -- in the first quarter. these are recurring problems. it's hard with this business.

muchthey want to get too larger level, they would have two more than double production this year and the next, which they have been unable to do to get to the level they want to produce. shares are up more than 4% even though we saw them fall yesterday. the giga factories up and running and have hit their deadline. cory: the factory is running, how much they are producing is the question. we will see what they produce over time. there is demand for this product . there are dozens of competitors who can hang a battery in your garage for questionable use. caroline: what do you think about the debate when it comes to ces, is it the tech companies or auto companies -- what is the value in selling these cars? where does the billionaire vision go?

they have a unique vision. i sat down with white tea at the headquarters and he laid out a very rod vision of what he wants the consumer to experience. you have a cell phone and start watching a movie on it and then hail and autonomous electric vehicle where you continue to watch the movie in the car and then exit the car, finish where you left off and watch on a vr headset and continue on their smart tv. so cars are an integral part of this vision because he sees the future of electrical cars, that vehicle is another place to watch contact. this company started as a software content maker and all of these devices, hardware, cars and smartphones are all just shells to hold their software. so he has a very broad vision.

selina wang and cory johnson, as always, thank you very much. still ahead, it is one of the few companies whose name has become a verb. we are talking about xerox. ceo jack jacobson's next. this is bloomberg. ♪

caroline: it has been a wild week for xerox. shares have surged more than 20% in the last two days after completing a spinoff of its business services unit. the ceo said that while the company remains optimistic despite declines in its business. wejust about a month ago, operate in an $85 billion market and we have in the market leader for the past seven years, 28 consecutive quarters.

we are a company built on innovation. we have 12,000 active patents and are one of the top patent producingd -- companies. we're going to invest in that $85 million growth market. 2% toange anywhere from about 15%. we're going to couple that with the largest product launch in the history of xerox. funny: what are some -- vonnie: what are some of those growth markets? we do business today with all the largest corporate entities around the globe -- government agencies, small, medium business markets, graphic communications and school administrations. the largest companies around the world don't want to worry about their print. they want to worry about their core competency.

our core competency is about taking a document from creation to communication. if they want to integrate an interface with the cloud or do mobile print, if they want to translate in 35 different languages, those are the things we do. vonnie: are you going to expand into other countries? we are wellnk established. it's all about how do we gain more share? even though we are the market share leader, there are more opportunities. ist i tell my team is there still an opportunity even though we are the clear leader. anticipate do you the goodness ration affecting the relationship of those companies? guest: i think the market has responded positively to the new administration. we expect to see regulatory reform and tax reform. what we are hopeful for is where we operate on a global basis,

that we will be able to do it on an equal playing field and this administration will do that. vonnie: what does that mean, equal playing field? there is a risk our relationships may go sour. where are you proactively managing that risk? best: we don't think it will a significant risk at all. when i talk about equal playing field, is to make sure there are ififfs in certain countries, we have a product going into the u.s. as opposed to a global entity, that they are on an equal playing field. how do we stay close to our customers? built on company innovation and if we have an energized salesforce and bring technology to the forefront of our customers, that is a winning formula. anyie: heavy had

conversation with the incoming administration about jobs? we have heard about jobs coming into the u.s. are being salvaged. is that something you'd be looking to open a kind of dialogue? guest: i have not had any personal interaction with the administration. would you be interested in some kind of incentive to keep jobs here or expand here as opposed to externally? open toe are always listening to any incentives that would be good for our business, shareholders or customers. caroline: that was the xerox ceo, jeff -- jack jacobs speaking with vonnie quinn. a 150 milliont up dollars venture capital fund, it's first in the u.s.. it will make it easier for the south korean tech giant to invest in early-stage startups. investments made six and is based in mountain view, california. that does it for this edition of "bloomberg technology."

we will continue our coverage of ces with a great lineup including barry diller and shane ward, appearing on bloomberg television. be sure to turn in -- tune in for those interviews. all of our episodes of bloomberg technology are streaming on twitter. that is all for now. this is bloomberg. ♪

announcer: from our studios in new york city, this is "charlie rose." charlie: ian bremmer is here, the president of the consulting firm, eurasia group. every year, they publish a list of top global risks. , 2017, thehed a list geopolitical recession. welcome back. i don't know if it's going to be a happy new year or not. you talk of a global recession as we begin talking about risk. ian: we are her