>> it is 1:00 p.m. in hong kong. i am rishaad. the offshore yuan pairing its record weekly rally. the exchange rate dropped 0.5% in hong kong this morning after a 2.5% surge. clients itvising could be the time to bet against the yuan. china might step up scrutiny of u.s. companies with tensions against donald trump. if the tycoon takes punitive measures against chinese goods. trump has been accused of forming an iron curtain of

professionalism. the first trade surplus in almost three years. exports climbed 8% from one month ago. there is higher demand for chinese iron ore and coal. this is the most positive turnaround we have seen since april of 2010. you are watching bloomberg television. just a snapshot of the afternoon session, getting underway after the lunch break in hong kong. this is what it looks like. coming off of its earlier gains, still positive. shanghai though, remaining below the gain line. caroline: i am caroline hyde

this is "bloomberg technology." buting up, you can hack you can't hide. details from the private security care and. last, time warner and at&t, megamerger back on the brink. by president-elect trump might get in the way of the $85 billion deal. in las vegas.ting everything from the future of cable television to the surging home sharing market. first, to our lead. cyber security is emerging as a major concern for 2017 and it came to a head today in the senate's private security hearing, where russia was front and center. top u.s. security officials stood firm that russia was behind the hacking in the presidential election. intelligence's official said only russia's high senior officials could have authorized the disclosures that happened

during the most recent election. this comes one day before president-elect donald trump is to be briefed on the hack. joining us now to discuss is bloomberg and national security editor from washington. bill, great to have you. the intelligence agency is even more confident that russia was behind this hack. what do we know? bill: you are right. the three spy chiefs said they have more confidence than they did in october that russia was behind this. they pushed back quite a bit against some of the public criticism they have received by donald trump, who said earlier this week that a briefing has been delayed and that he thought it was because they had to still build their case. the spy chiefs on the hill made clear they think they have a solid case. they will be in new york presenting that case to the president elect tomorrow. caroline: just talking about donald trump's pushback, he took to twitter once again.

he is talking about his potential association with julian, saying he is a big fan of intelligence. we are looking at the tweet right now our screen. what about this so-called unhelpful criticism. they were not too critical of donald trump, as they could have been. reporter: these guys all speak in a very nuanced town. they did not talk about donald trump directly. they said that public criticism of their work is not good for maorale. these are by nature, very skeptical people. the intelligence community, spies, they are skeptical by nature. they ask a lot of questions. they are accustomed to that. they are not accustomed to being put in the public eye. we have never really seen a time

in the past when an incoming president so blatantly and publicly questioned their work before he takes office. remember, there is a whole range of issues that the president-elect will have to count on the intelligence agencies for. whether it is the latest assessments of the islamic state, to china's moves in the south china sea. without that kind of information, a president is flying blind. caroline: bring it forward to tomorrow for us. there is a briefing that will occur with president-elect donald trump. >> the director of national intelligence was asked if he is ready for a spirited discussion with president-elect trump. he said, absolutely, and that he welcomes it. again, they are used to tough questioning. what we have heard from the president elect's team is they want to see more raw data. they want to see a little less analysis. there is some concern on the trump team that the intelligence

committee has been politicized. they just want to see the data and be able to draw their own conclusions from that. caroline: we will have more on that story tomorrow. thank you. the story we are watching, president-elect trump remains opposed to the at&t and time warner megamerger. this is according to people close to trump, who has not said anything about the deal in months. he reportedly told a friend that he thinks the merger would concentrate too much power in the media industry. time warner shares have been climbing since the election on speculation that the republican led administration would approve the deal. shares of both companies dropped today. cyber security is a hot topic from washington to wall street, and here in silicon valley. last month, yahoo! announced it had suffered its second major data breach, one of the largest in history, leaving some

question as to whether verizon will follow through with the $4.8 billion acquisition of the company. cory johnson spoke with the aol ceo about what this means of the acquisition of yahoo. reporter: the yahoo! deal for us is strategic towards our 2020 goals. the process for us is split into two areas. one is the integration and a strategy planning with the executive team at yahoo!, which has gone very well. we have very close relationships with them. information has come out about the breaches and what the effect of that will be. verizon is handling the breach research with yahoo!. definitely who is going through their investigation. we won't have any comments on that. but on the strategy and execution side of things, we are on track and hopeful that the deal will close. we will know more in the first half of this year. the yahoo! team is doing a

thorough investigation. reporter: is it possible that these series hacks, and the republic's knowledge of them, has damaged the brand of you who in any way? -- damage the brand of yahoo! in anyway? >> that is something that yahoo! is looking at, the total effect of the breach. we have a viewpoint on that as well, but i think from a standpoint of where we sit right now going into 2017, our strategy is clear heading for 2020. yahoo! is one piece of that strategy. as we get more information on the breach, we will update people on that. from what our goals are and what we have been takesked with, it remains on track. people are investigating the breach. reporter: i think that the size of the business of yahoo! is not

properly understood. it is such a very big business with so many users. when you look at that as that, what do you see? the noise and concern over the breach tends to dominate the discussion. what is the underlying asset of its value? >> we live in a world today where there are hundreds of billions of dollars in billions of consumers coming online that are all digital first and mobile first. yahoo! is one of the largest footprints in the world. on the consumer side, it has a very sizable advertising business and e-commerce business in asia. when we look at the combined assets, we would have over one billion consumers, and do billions of dollars in ad revenue, and have a very big footprint in mobile. the verizon opportunity with data and targeting, and getting the consumers is huge. breach there is the

investigation and information, but from a business strategy standpoint, especially when you look to the next five to 10 years, the assets coming together represent a very unique opportunity and scale. we'll gone from company consolidations to industry consolidations. verizon has been very forward thinking, very clear on the execution of where they think the world is going in media, mobile.s, and we are very excited about the t-mobile are all. there is just one issue -- we are very excited about the team overall. there is just this one issue that needs to be resolved. reporter: the consolidation is very different from at&t to verizon. on the verizon side, you guys are putting together a big pile of assets. you mentioned yahoo! sports and aol and all these smaller pieces

of content, a kaleidoscope of them. where at&t seems to be going big with time warner, hbo. i wonder if you could address those two strategies? >> first, i know the time warner strategy well. i have a lot of respect for the team at time warner. and at&t.dall i don't know their strategy and what their business model is, but i do know the verizon business model. i know the verizon plan and aol's plan, which is essentially to bet on where the future is going, which is very strong connectivity with 5g and connecting everything and everybody with cyber and speed and wireless connectivity. the second piece is digital consumption of content. you do not have to look far and wide to see how much the linear television landscape has changed to a digital focused consumer.

if you contrast the strategies and look out five or 10 years, that digital focused and mobile focus that verizon has put into place is a very strong strategy. after spending 20 years in silicon valley and new york and across the globe around digital, we wanted to put our bet with verizon because we think digital and mobile and the connectivity that 5g is going to offer is going to be a tremendous asset overall. so, you have two big companies, two strategies, and a lot of room for tailwinds in the future of growth. it will be interesting to see where we end up five or 10 years from now. i feel very confident in the verizon strategy and leadership has done a very good job overtime executing long-term strategies. i don't have any doubt that we will be in the running and a big player in the future. caroline: that was aol ceo tim armstrong.

cory johnson, a very confident sounding tim armstrong. reporter: i think that is the underlying story. the market has gotten pretty upset when the news of the second hack hit. the reaction was overdone, not business is a's small value, but because they see this as one of the few assets all over the world that has a global-internet audience of over one billion people. they look at the potential for facebook and is. they think that with that content and users, they can buy their way into having one, big global audience that they can dominate when 5g rolls around. caroline: the mma hit some roadblocks today. donald trump said at&t and time warner are not close to a deal. where do we stand on the mma front? reporter: those comments are

very interesting, the people close to him are so concerned. is this going to be a, let the market sort it out, goldman sachs white house that wants things to trade where they want to trade, regardless of their impact on society and on business competition? or, is this going to be the donald trump suggested that he will review these things and look at the impact of these business combinations and be less likely to approve these mergers? it is an open question right now. there is a media story right here. these are media companies we are talking about. there could be a different approach for the media. i think more people agree that more voices in the media is better than fewer. 21st century fox is dealing with sky across the atlantic. always great to have you,

cory johnson. we will have plenty more after the break. we will catch up with hp's ceo and the company's refreshed budget and global aspirations. stocks close on thursday, but the nasdaq ended the day on an all-time high, gaining 10.93 points. that narrowly beat the previous record. ♪

isa: this year's trade show hp. the tech giant has many new gadgets, including the ultra thin convertible laptop.

joining us now live from las vegas is hp's chief technology officer, shane wall. give us an idea why we should be excited about new products in an industry that has been stagnating. >> i will tell you. first, we are super excited to be here. it is the best way to kick off a new y ear, especially when you are bringing new products. we are in the middle of reinventing the company. that includes some fantastic products we brought out at the show, the elite book 360, the specter s360. the sproutpro in particular is a refresh on our original product. caroline: when you are looking at analyst expectations, it is showing that revenues should start picking up by 2019. how much are these products

crucial to that? >> well, the best way to answer that is what we are trying to do is to look at what our strategy is and spread it across three main vectors. we have a core, growth, and future. on the core side, we expect that to be our core personal systems, very targeted areas. and in the growth area, we have exciting things that will happen this year. that includes things like our graphics business with the acquisition of samsung's printer business. in the future, super excited about 3-d printing and the opportunities that will provide in digital manufacturing. caroline: where is the demand coming for 3-d printing? are we finally there? >> yeah, we are. this year we did launch and ship our first products in

october to some customers in europe. that product will be a tremendous hit. it delivers 10 times the speed of any product out there with 50% of the parts cost. we actually think that is the beginning of what we expect will be a true revolution. we are at the very beginning of what we think is a 30 year view of reshaping manufacturing into full digital. caroline: you have been an angel investor and are deep with any start up community. are you looking at the acquisition potential of these startups? are you building them within your company to help harness the growth? >> yes, we do. we kind of do two things from the cto standpoint. one, invest in the core technologies we have internally. but as the founder, we are definitely on the outlook for

what is that exciting new technology on the horizon. that could be through a variety of things. that could be through partnerships, through an investment that we do, or, it could be through acquisitions that we look for ways to complement what our existing technology is. caroline: these new growth opportunities, they take money. hp is a company that is having to cut costs at the moment, shed employees. are you worried this could impact investment at all? >> i'm actually not and here is why. it is one of the great advantages of the split. we have been able to focus on our core markets, printing and personal systems in moving into the 3-d side. even as we look to streamline the business and optimize the cost, one thing we have not cut is r&d.

we kept it constant, but we have been able to spread it out. we are making bets and the longer term, giving us growth possibilities in the future. caroline: thinking outside the next two to five years, let's go decade long, what is capturing your attention? know, it is interesting. it is always great here to see some of those longer-term things coming out, like what is going on in the automotive area today. in hp, we have put together a vision that is 30 years in the future. it is anchored around a simple notion we call blended reality, a belief that the digital world will become much more inextricably intertwined with the physical world. that leads to the investments we make longer-term, 3-d, moving to digital manufacturing. we are super excited about the internet of all things, when

everything, physical items that don't have technology in them today, are connected to the internet. the whole notion of blended reality gives us a tremendous opportunity to pursue these new areas. caroline: come back and talk to us about the disruption you are having, hp cto, shane wall. onll ahead, we get the take the latest news that donald trump remains opposed to the megamerger between at&t and time warner. this is bloomberg. ♪

caroline: walmart is paying $70 million for an online shoe store that will help boost the selection of shoes and sneakers. they compete with the more well-known website that was owned by iac before the steel. last year, jet purchased

haynedledle for $90 million. .xpanding presence amazon is planning to open a bookstore in manhattan near central park. the company already has physical bookstores in seattle, california, and oregon with plans to open more in chicago and massachusetts. the manhattan store opens this spring. speaking of amazon, ford is putting the popular voice-activated assessment will allow drivers to open amazon. they are also working to integrate alexa into the luxury cars. up oniuliani is teaming a cyber security initiative. the controversial cyber hacking hearing takes place on capitol hill. look at their take on the state of the u.s. cyber defense, next. if you like bloomberg news, check us out on the radio.

you can listen on the bloomberg radio at bloomberg.com and in the u.s. on xm. this is bloomberg. ♪

rishaad. recalled temporarily after a some current statute claimed women used the settlers. the statute was unveiled last week after the secretary says of foreign exchange swaps have also been suspended. close to said to becaus a $10 billion deal in india. ordering upgraded jets.

quite often, discounts are usually in sight. thailand's elections, which had been scheduled for this year, have been delayed to 2018. the plans for democracy remain, they insist, but the timing needs to be slightly adjusted and that is because of the funeral and the coronation of the new king, which is expected later this year. india's ban on high denomination notes will be seen later. we have the release of gdp data and the economy is growing at 6.8% through the end of march. this would be the slowest pace in three years. was a production of 7.7%, which was made before that decision and early november. global news 24 hours a day, powered by 2600 journalists and analysts in more than 120 countries around the world. let's get a look at what is going on with the markets. one domination in the on exchanges. reporter: it certainly has been

dominated by that move in the offshore yuan. the shanghai composite is down by .2% in the late afternoon trade after a couple of good sessions coming through. the hong kong index is being lifted by a strong movement once again coming through from those energy players. of the best, one performers on the hang sign, which is up by 1/3 of 1%. butralia has closed flat, remember, that is bull market territory. we have seen making is coming through once again from the nikkei today in relation to this movement in the yen. e nikkei is dragging down the overall regional index. regional stocks are now falling for the first time in three days because of this weakness we have seen coming through from the nikkei. having a look at the offshore down.eimibi it is the pboc, strengthening the yuan

the most since 2005. we will have more from london at the top of the hour here on bloomberg television. this is bloomberg. caroline: this is "bloomberg technology." back to the top story of the day. are intelligence chiefs standing firm that russian governments officials hacked during the u.s. campaign. james klapper and michael rodgers said the intelligence community's confidence is "ve ry high." meantime, rudy giuliani announced thursday his consulting firm is partnering with blackberry on cyber security software. spoke ofhn chen earlier to the cyber hearing in washington. are not hypotheticals

good things to respond to. -- look, hypotheticals are not good things to respond to. cyber intrusion is the fastest-growing form of crime. the director of the fbi, james comey, says there are two types of companies in america. those that have been hacked and know it and those that don't know it. this is becoming ubiquitous. the reason companies and countries need us is because we can come in and tell you whether you have the best possible solutions. you may solutions, but they may not be the best. the second thing, you have to keep changing our solutions because if you keep doing the same thing for two or thre e years, the hackers will figure it out. this whole dispute about the russians and chinese, this underscores the fact that we have fallen way behind in cyber defense.

we are way ahead in cyber initiatives. the use of this information for cars and whatever. our defense has not been on the field. so, we have to bring our defense up. giulianihat blackberry partners, and others will be able to do. caroline: i like the way you put that. fbi have assessed what they believe is hacking by the russians. why do you disagree with their conclusions? >> i don't. i have not seen their evidence. i have not seen the report. so, i cannot comment. these conclusions are always percentages. i've done a few of these, and these are percentages. what they will give you is the percent chance that it was -- let's pick another country -- that it was north korea.

so, i would want to look at that and then i could give you an an judgment. it is not a political issue. it is a technical issue. reporter: mr. chen, let me put my question to you. what is your level of concern about cyber threats from foreign governments, even those we might not have hostile relationships with? >> i think very high. we all know that director comey said, i will quote him, as the mayor said. every company has been attacked. i think the attacker comes in all forms, some of them a little friendlier than the other. i would not say we are looking at each other's information. i expect that the other governments have been involved in is also. reporter: mr. giuliani, you believe the current administration did the right thing in announcing those sanctions last month?

>> i have to leave that to the discretion of the president. i am not going to disagree with the president. he had the information and acted on it. i have no way of second-guessing what he did, nor will i do that. but i do want to underscore what john said. hacking is ubiquitous, meaning it is happening all the time and you have to have defenses. it is also important to catch it early. for example, the hacking of opm, what was it, the 20 million identities that were taken. they ran opm for 10 to 12 months. thethey been caught in second to fifth week, you could have stopped it. we can do things like that. that is what we will be trying to do, not only stop it, but catch it early, like cancer. if you catch it early, you have

a much better chance of curing it and you don't lose 20 million identities. caroline: dallas rudy giuliani and john chen. -- that was rudy giuliani and john chen. softbank's pledge $50 billion to create 50,000 jobs in the u.s. we will catch up with the ceo, n ext. this weekend on bloomberg television, we bring you our best interviews from the week, including our interview with jim woolsey. cyber security concerns surrounding russia after the cyber security hearing. this saturday for the best of bloomberg technology. this is bloomberg. ♪

>> president-elect trump has a

plan to make america great again. a major stake in this plan, bringing jobs back to the united states, with the help of softbank's chief executive. donald trump: he agreed to invest $50 billion in the united states to add 50,000 jobs. he is one of the great men of industry. i want to thank you. reporter: on december 19, the first investment was made to fill 3000 positions. satellite startup oneweb raised $1.2 billion from softbank investors from the japanese technology company providing the bulk. since then, softbank's vision fund has been drawing attention. this week, apple said it would invest $1 billion. according to a person familiar with the matter, foxconn's chairman also intends to contribute. but there is still time for fox

something to bring in additional investors. we will wait to see who else throws their hat in the ring. caroline: joining me now is oneweb's ceo from palm beach, florida. the satellite start up is the first company to receive an investment from the vision funds. 3000 jobs in four years. is the talent ready and present to be hired in the u.s.? >> i think it is. we are getting great applications and are growing fast. we have a lot of job openings and are looking for more people, but there is a lot of talent here. caroline: looking abroad as well? would you be concerned about restrictions on the visas? >> we are global. we have jobs around the world. onthe u.s. i, occasion, we have issues with

visas. but there is a big amount of talent in the u.s. we have a great university system. thankne: how much do you donald trump for this investment? do you think it was inspired by donald trump's call for jobs to be back in the united states? >> we raised about $500 million last year. we put a plan together to raise $500 million this year and $500 million next year. we are building a satellite system that will provide gigabyte speed internet access to the other half of the world, the 4 billion people without access. this is a very large program and it is related to bridging the digital divide. that is our mission by 2027 and to connect every school in the world by 2022. massa joined us and embraced the mission and saw how important

this was for humanity, to allow everybody to have access to the world's information. his contribution and investment has been extremely helpful. he met with president-elect donald trump and increased his investment and that is great as well. billion up with a $1.2 investment, which was more than we had expected. it puts us in a really great position to accomplish our goals. caroline: this is a great vision you have, in terms of connecting those who are not connected. when you have dedicated much of your life to. in terms of, why now? other companies have tried to do this, sending satellites into near space. why is the tieme right? >> things have changed a lot. there has been a lot of failures. there are thousands of people who envisioned doing something like this and only a few raised some money and very few were

able to build on that. callone or two did not bankrupt. i was fortunate to find one. it is hard to do these things, but if you keep an eye on the mission and who the user is, and you have to have it in your gut. it is a mission as much as a business. advances andnology our incredible partners, like qualcomm, who are the leaders and building the chip sets for celler betwee handover between towers at high speeds. we are handing over 100 separate internet connections within a second. caroline: how do you square that awkward circle of a mission and a business with a profit? you are working with telcos to price this. are you sure the right people

will be able to gain access? [laughter] >> well, we are just trying to enable access. the utopia might happen after that. on pricing, what we are doing is building a system at a scale that allows us to provide services at a low price. the two dollar a day type incom e that lower systems have. we made a system to accomplish those goals and do it profitably. that means in the developed markets, people will pay more. and when you think about maritime and aviation, they will have a higher price. gs scores together to be profitable, and accomplishing a very important goal. from whaton balance, you have seen, president-elect donald trump, positive for your business, or negative?

>> so far, so good. the market has spoken and obviously, the future will see. wyler, we thank you for your time and check in with us. up next, iac founder and chairman barry diller joins us from las vegas. this is bloomberg. ♪

caroline: donald trump is said to remain opposed to the megamerger between at&t and time warner. he believes it would concentrate too much power in the media industry. now, media mogul barry diller is the chairman and senior executive of iac, an internet and media company comprising over 150 brands and products, including match.com. we caught up with him in las vegas and asked about trump's

position on that deal. stock is your subjected more than a day or two to his comments, then you have a very lousy business. it is all today's ridiculous -- reporter: there were merger efforts last year in the similar way. do you see any likelihood of that deal being resurrected? >> no. reporter: why do you think that. specialu are on the cbs committee representing the chair holders, you are not going to purchase viacom at anything but a bargain sale price. if you are on the other side on the special committee, you will not sell it at anything but a premium. it will not happen anything, so i don't know why everybody made noise. reporter: how would you turn around paramount? >> you make good movies, it

turns. it ain't hard. the movie business is a simple business, compared to what is going on here. ytelling onories the big screen. you have a story, you tell it and people either like it or not. involved.o tech or reporter: a lot of tech companies are looking at the content space, such as netflix. there has been talk about apple getting into the space. using companies -- do you think companies need to own content? >> no. these tech companies that are engaged in distribution, what apple was doing, amazon has prime, they are essentially distributors. they can buy any content.

they don't need to own the content directly. if they are going to begin to produce content themselves, then, that is another thing. but that is something you would haveto really not aptitude for. you have to make editorial choices. reporter: i would love to hear about how the lions gate platform came about. >> we are developing a platform for people to use. one of the most recent places we went we said, why don't you put your programming on video, on our platform, and they said yes. reporter: is there anything we need to keep an eye out for. >> yes. reporter: can you give us a time frame? >> no, look. we are very much now in business.

so, weeks, months, years, we are going to be active. we will have an independent platform that is not owned by the totalitarian companies. because of that independence, we can barrel through. reporter: when you talk about the video services, you tend to talk about netflix. it is going to be a direct package. >> you know, i think indirect. the truth is, netflix is always going to be, unless they monumentally screw it up. they have such size worldwide now that idle think anybody is going to be close to netflix. that doesn't mean they take essentially, the market share of the world, i just think anybody will be as large. but there is 20 of room for --

but there is plenty of room for programmers who have many subscribers, just not at their level. reporter: what about the ways that cable television is developing? is it dead? >> i don't think anything really kills anything, like dead-dead. 40 y earears orr so, you had cable being the only place where you could get a bundle of programming. that has ended. now you can get all you need with an internet connection. you can get a la cart, little bundles, etc. cable just has to evolve. selling for the one package price is gone. reporter: you mentioned profitability.

the cablesful way for package -- >> no, i think the cable operators are essentially no in the transmission business and no longer really in the program business. they used to be with healthy margins, and those have decreased. now, when you have so many different alternatives, they are in the battle business. reporter: does that explain some of the rationale behind the at&t and time warner deal? there is skepticism behind it. do you think there is logic behind that deal. >> i just all think there is a lot of industrial logic behind it. i don't think a data company needs to own a tech company. at&t does not need to own

content. they can buy the content at market prices. no content i think in this area will be particularly exclusive. caroline: that was iac chairman barry diller. that does it for "bloomberg technology." still to come, more from las vegas. we speeak with t-mobile ceo. you do not want to miss that exciting conversation. and tomorrow, we hear from fi tbit ceo and the president of sony. check us out at bloomberg tech-tv. that is all for now. have a great evening. this is bloomberg. ♪

anna: the offshore you one has record weekly rally. goldman says now is the time to sell the chinese currency. manus: trade troubles. china is said to be considering retaliation if donald trump starts a trade war. tough act to follow. obama is set to hand to his successor at the net -- the best stretch of jobs in his presidency. ♪