caroline: i'm caroline hyde and this is the best of bloomberg technology where we bring you all the top interviews of the week in tech. coming up, all the industry leaders of this week's consumer electronics show, including our extended conversation with i.a.c. founder and chairman barry diller. plus, aol c.e.o. tim armstrong joins us as we mullet the new options. and tesla swerves. the electric carmaker's recent delivery numbers missed estimates. first to our lead and the

biggest tech trade show of the year, the consumer electronics show took over las vegas this week here in the united states. the annual spectacle offers an early glimpse at the top tech to watch, from home improvements to driverless technology. there is new media in the field. alex webb caught up with the industry leader and chairman barry diller. take a listen. alex: if your stock is subject for more than a day or two to his comments being a negative drag on you, then you've got a very lousy business and it's all, you know, all today's ridiculous silliness. ex: there was other mergers, cbs-viacom obviously fell apart. do you see the likelihood of that beal being recenter recollected. barry: should never have happened anyway. alex: why do you think that?

beary: if you're a shareholder -- excuse me, if you're on the committee representing the shareholders, you're not going to buy viacom at anything but a bargain sale price. you're on the other side of the special committee, you won't sale it other than at a premium. it's never happening anyway so i don't know why anyone made news noise. alex: how would you turn around paramount? or can it be done? beary: if you make good movies, it turns it. it ain't hard. movie business is the simplest business compared to what's going on here, the changes in the world, i mean, narrative story telling on a big screen or small screen, but on a big screen is simple, with you have a story, you tell it and people either like it or not. there's no tech involved. there's no -- you know, it's quite bnary. alex: on the flip side a lot of tech companies are looking at the content base of netflix and amazon has made huge strides.

there's been a lot of talk about the prospect of apple getting into the space. do you think companies need to own content to get into them? barry: no. alex: why is that? barry: if you own content, you want to distribute it everywhere. so these tech companies who are engaged in distribution, it's what apple is doing and amazon has with prime, etc., they're essentially distributors, they can buy anybody's content. they don't need to own directly the content. if they're going to actually begin to produce content themselves, then that's another thing. but, you know, that's something you have to really not have to have tech aptitude for but you actually have to have an ability to make editorial choices. alex: the signs dealing with lionsgate, i'd like to hear how it came about, actually? barry: we're developing video into a platform for everybody to use and we have gone to

many, many people and one of the recent places we went and said why don't you put your programming on video, on our platform, and they said yes, and we're going to do much more of that. alex: are there deals impending we need to keep an eye out for? barry: yes. alex: can you give us a time frame, weeks, months? barry: no, no. look, we're very much now in business. so weeks, months, years. we're going to be at this. and we think because we have an independent platform that is actually not owned by any of the totalitarianian companies that we have an issue or a chance because of that independence we can barrel through. alex: does that mean now quite often when you talk about online video services for tv series, films, you tend to talk about netflix and amazon and people go netflix, amazon, video. will it be direct to what we're doing?

barry: indirect. netflix always is going to be unless they monumentally screw it up, they have such prize worldwide now i don't think anybody will be close to netflix. but that doesn't mean they take essentially the market share of the world. i just don't think anybody will be as large. but plenty of room for niche programmers and programmers that have many, many millions of subscribers, just not to their level. alex: what do you think of the way the cable tv bundling, is it dead? are these new approaches killing it? barry: i don't think anything really kills anything like dead-dead, but look -- alex: how about unraveling? barry: you've had for 40 years or so, you had cable being the only place that you could get a bundle of programming. that's ended.

now you can get -- all you need is an internet connection and you can get allah cart or little bundles, etc. so cable just has to evolve and it cannot -- its space of warehousing everything and selling it one package price is gone. alex: what do you think sales work? you mentioned a few possibilities. what are you bullish on a model that does go through? barry: goes where? alex: the successful way for a cable package to evolve? beary: i think the cable operators are essentially now in the data transmission business and no longer really in the program business. they used to be in the program business and at very healthy margins, there was a decrease as programmers asked more and more money. now when you have so many different alternatives, you're in the data business. that's their competitive edge. alex: does it explain some of the rationale between the tnt-warner deal that's been

skepticism, not from a trump view, but from optical business, is there largic behind the deal? barry: i don't think there's a lot of industrial logic behind it because i don't think a data company needs to own a content company or a tech company, data company, at&t needs to own content. you can buy the content at fair market prices. no content, i think, in this area is going to be particularly exclusive. caroline: still ahead, we'll hear from aol c.e.o. tim armstrong who is hopeful verizon's yahoo! deal will go through and ask him about the potential hiccups next. and a reminder that all episodes of "bloomberg technology" are live streaming at twitter and check us out weekdays at 5:00 p.m. in new york and 2:00 p.m. in san francisco. this is bloomberg. ♪

caroline: ally barber cracks down on fake fenders this time taking legal action against two sellers and are suing them for selling counterfeit watches and seeking $200 million in damages. it's part of an aggressive plan to combat fake goods from popping up on the site. alibaba took 80 million product listings down and closed 180 store platforms in the past 1 months. cybersecurity is a hot topic from washington to wall street, especially in light of this week's u.s. senate hearing on capitol hill to determine whether the russians did in fact hack the presidential election. and yahoo! announced last month that it suffered its second major data breach, one of the largest in history. leaving some to question whether verizon will follow through on its $4.8 billion acquisition of the company. bloomberg's cory johnson caught up with aol's tim armstrong for more on the consumer electronics show in las vegas. tim: the yahoo! deal is

strategic for us to the 2020 deals and hopeful it will close. the process for us is split in two areas, one of is integration and strategy planning with marissa and executive team at yahoo! which has gone very well and we have close relationships with them. the second piece is the information that's come out about the breaches and what the effect of that is. verizon is handling the breach research with yahoo!. yahoo! is going through their investigation. so we won't have any comments on that because yahoo! hasn't finished that investigation yet but on the strategy and execution side of things, we're on track and hopeful the deal will close overall but we'll know more in the first half of this year and i think that yahoo! team is doing a thorough investigation, so i'm sure they'll have more to say about it in the time period in front of us. cory: is it theoretically possible that these series of hacks and the public's knowledge of them has any affect on the brand, and damages the brand of yahoo! in

any way? tim: you know, i think that's one of the things yahoo! is looking at and will continue to look at is the total affect of what the breach was and what the outputs of them are and of course we have a viewpoint on that as well. but i think from a standpoint of where we sit right now heading into 2017, you know, our strategy is clear heading towards 2020, yahoo! is one piece of that strategy overall so as we get information about the breach, we'll update people on that and yeah should will as well. but i'd say from what our goals are an what we've been tasked with of getting done with yahoo!, you know, it remains on track and the breach is a piece of research and information and investigation that's still ongoing. cory: i think that the size of the business of yahoo! is not properly understood, generally. because it's just such a very big business and so many users. when you look at that asset, what do you see that holds such value, because the noise in the

headlines and the concern over the breach, i think, tends to dominate the discussion, what do you see as the underlying asset and its value? tim: you know, cory, we live in a world today there's hundreds of billions of dollars and there's billions of consumers coming online that are all dinl tall first and mobile first. yeah should is one of the largest footprints in the world on the consumer side and has a very sizable advertising business and an e commerce business in asia. so from our standpoint, you know, when we look at this asset, the combined asset would have over a billion consumers, you know, do billions and billions in ad revenue and have a very big footprint in mobile added with verizon, which is very strategic, the verizon opportunity with data and targeting and getting the mobile consumers is huge. so you know, i think there is the breach information and breach investigation, but from a business strategy standpoint, especially when you look towards the next 5-10 years, the assets coming together represent a very unique

opportunity and very unique scale and look, we've gone from company consolidations to industry consolidations and, you know, verizon has been very forward thinking, very clear and very clear on the execution of where they think the world is going in media and in wireless and mobile and we're excited about it. we're excited about yahoo! and excited about the team overall and there's this one issue that needs to get resolved. but i'd look through that on my side from the integration side to look at the strategy and i think the strategy remains intact. cory: i think it's interesting, also, the strategy of the consolidation is very different from at&t to verizon. when i look what's happening on the verizon side, we see you guys putting together a big pile of assets, you know, you mentioned tech crunch and yahoo! sports, if you will and pulse and aol and all these smaller pieces of content but a kaleidoscope of them whereas at&t seems to be going big with time-warner, hbo, that's their content play. i wonder if you can contrast

those two strategies for me. tim: sure. so first, i know that time-warner strategy well. i was at time-warner and we split out of aol and have respect for jay fuches and the team at time-warner and know randle at at&t and know their strategy but don't know their business model. but i do know the verizon business model and the verizon plan and the aol plan which is essentially to bet on where the future is going, which is very strong connectivity with 5-g and connecting everything and everybody with fiber and speed and wireless connectivity and the second piece is really digital consumption of content. you don't have to look far and wide to see how much the linear tv landscape has changed to a digital focused consumer. i think if you contrast the strategies, you look out five or 10 years, that digital focus, content strategy that verizon has put in place i think is a very strong strategy, and after spending 20

years in silicon valley in new york and across the globe, around the world of digital, we want our bet with verizon because we think digital and mobile in the connectivity 5-g will offer will be a tremendous, tremendous asset overall. so you have two big companies, two strategies, and a lot of room for tail winds in the future of growth so i think it will be interesting to see where we end up 5-10 years from now but feel very confident in what verizon strategy is and the leadership at verizon has done a very good job over the time executing long-term strategies so i don't have any doubt that we'll be in the running and a big player in the future. caroline: coming up, bit coins rally has a new year lease of life. the currency is hitting multi year highs kicking off 2017. what's behind the jump? next. and tess la's fourth quarter deliveries missed estimates. we'll dig into what it means

not electric carmaker next. this is bloomberg.

cafrle i'm: it was the best performing currency of 2016 and looks like bitcoin has room to run this year. in week the currency topped $1,000 for the first time in three years. we're joined by the managing partner of the newly launched firm of heroic ventures to discuss what's behind the pop. >> 95% of what happens on the chain is bit coin reactions and is very much the thing people know and understand but there are other things we know coming and there are crypto currencies that laufpblged called alt currencies and hardly any trained traction but people may know theriam, from guys from new york and trained on one of the most reputable coin exchanges called coin base. i should disclose i'm not a shareholder but use it. there's another one called ripple which is a crypto currency being put together in conjunction with a whole bunch of banks looking to do some sort of oversighted, understood

collateral work together collaboratively to manage a currency called ripple. but there are others, one called monero which is anonymous and z-cash which is anonymous and the frontier is powerful. why is bitcoin easy to understand? it is simple to understand and looks like the dollar and at euro and it's a cheap imitation and can't do the regular thing. but the excitement of the block chain is partly due to the fact token or coin in the block chain can have a currency value that's interchangeable but have a smart contract. you can preload the together within a set of rules to vote your shares a certain way or get married or get divorced if we want to get divorced under certain conditions with statements preloaded. >> a it arrive -- derivative basically? michael: rules that are you

committed to and everyone under the contract can know the contract is self-executing and self-realizing. there's a lot of exciting new stuff happening on the frontier with monero and theri aumbings m and bitcoin has the awareness of the public. >> it's interesting because we were talking about movements in twitter and china. china seems to be a real driver of trading in bitcoin. is it -- what has fostered this sudden resurgence to three-year highs, is it geopolitical risk or the fact that bitcoin is being used more widely nowadays. is it the fact that currencies are open to perhaps deflation? michael: i think that's a good question and if i had to sit here to answer the question, i would say it's mostly a speculative to return in fortunes and can be geopolitical risk people are buying bitcoin than gold. it was in favor for a while and superhot and too hot and people took money off the table and is coming back in favor. the chinese in bitcoin are a big part of the puzzle. the chinese are mining so much bitcoin and so so much control

of the block chain there's a risk in the community and a sense in the community that in fact china could take control of the bitcoin currency and that worries some of the people on the frontier. there's also a sense that bitcoin is not fully truly anonymous. and if you're a rebellious believer in the revolution of crypto currency which you don't have to be is that some of the more truly anonymous currencies like monero and z-cash are the wave of the future. and there's a spike in monero in the past few weeks partly due to the fact it's coming online and is a mainstream alt currency exchange but still in the early days, indeed. caroline: rebellious or not, are you a believer cryptic currencies will eventually come, when is 2017 the year we see it become more adopted more widely, will it become something everyone will know? michael: what's so amazing, the real missing part of the link so far is when will crypto currency, including bitcoin,

get wide, actual practical adoption and it's still missing even in palo alto where i live or san francisco where i hang out with you on a rainy day. and you used to be able to buy your coffee in bitcoin? why? nobody knows but you use to be, but because it's fun and feels good. and now you can't. there's been a rollback of some of the applications. i do think they're coming. as the banks in particular, as the clearing-houses in particular start to bless the block chain and have investment funds that are targeted for the block chain and have all these activities for the block contain and bitcoin, you'll see more and more adoption. but does it change my day to day life? no. can you spend your life through bit coin? no. i found one founder this year. i met a lot of founders in 2016. one founder doesn't have a bank account or uses checks or use a credit card and the ok way to pay him or do anything is through crypto currency and it's a first. it equals one, one founder

whose entire financial life is crypto currency. caroline: to some other big news of the week, tesla hitting speed bumps and they missed estimates and delivered 22,000 cars in the last quarter, below expectations and 2016 the company produced nearly 84,000 vehicles and deliveries totaled about 76,000, also below company guidance. greenberg editor at large cory johnson joined us to discuss. >> the company said we'll deliver this and when analysts said that seems high, they said no we'll deliver this. buy our stock and we'll deliver the numbers and they put it in the share release and the newsletter and in their 10-q's and does not deliver what they said they would. in fact, they just announced the numbers and delivered fewer model s' than a year ago and in the last quarter. model s sales are falling by any measure and model x sales are not anywhere near what model s is and there's been

delay after delay for the model 3. none of this is good news. caroline: there is a lot of backlog and this is the more priced friendly version and are we worried, therefore, about them getting off the machine? corey: what we know is they've consistently missed every deadline they've set. we know we can expect this deadline might be missed or maybe they'll make this latest delayed deadline, they keep pushing it back by quarters, halves of the years and then full years. we'll see if they get to that. we also don't know what the price will be. these deposits are not actually deposits but deposits for a place to be in line because in most places they can't legally take deposits but also are fully refundable. for a lot of customers we expect they might be trying to get a foot in the door. a lot of people want these cars they haven't seen before but a lot of people also probably want the option to get the car and it's really a price in the option that's is limited to take the car ultimately. caroline: trading off 2% is not a massive concern it seems for the market. cory: it's not until it is.

look, this is a cold stock, it's a stock people want to believe the best in. but the numbers here aren't very strong. you saw the dip in the stock afterwards. but this is yet another company i think with a short-term trade in the market doesn't reflect the valuation of the company. the valuation of the company is based on hope that something has to be delivered and obviously because the company doesn't have a generation of free cash flow or consistency really in anything here except for these announceles that get people excited but even this one is probably worrisome. if it's going to be a big business, it's going to have to grow. if the main product is selling less than it has last quarter and last year, that's bad news. caroline: talking big businesses and valuations, apple missed out but in the world when expansion looking at india and china slowing down and the west slowing down and maybe hitting roadblocks of its own looking at india? cory: the development for apple in the last 24 hours are very interesting in india. they're pushing ahead in india bigtime. they hope to get concessions from the government in terms of

manufacturing cost and taxes, what instead they got was absolutely the high -- whatever the cricket equivalent is of the heisman, that's what they got. i'll explain the heisman to you later. caroline: we'll do a swapping. cory: in college football there's a big award called the heisman. anyway, they hope to get a break but they're still hiring and have fox coming in the country with maybe foxcon will make phones for the iphone and maybe they'll make samsung phones and continue doing things like that. another manufacturer apple used in the past is coming into india. some of their potionings for hiring show operations managers are people who run factories or deal with factories in india and apple is clearly moving into this market and need to to recapture growth in the iphone they haven't had in the last year. caroline: bloomberg editor at large, cory johnson. coming up, with cybersecurity concerns surrounding russia front and center, we hear from former c.i.a. director jim woolsey on the

president-elect's approach. and if you like bloomberg news, check us out on the radio. you now can listen on the bloomberg radio app, bloomberg.com and in the u.s. on sirius x.m. this is bloomberg. ♪

kirline: welcome back to "the best of technology." i'm caroline hyde. security is emerging as a major concern in 2017 and came to a head at the cybersenate hearing where russia was front and center. top u.s. intelligence officials stood firm on their conclusion that russia was behind hacking attacks during the presidential election. intelligence officials said only russia's most senior officials could have authorized the disclosures that happened during the recent election. we spoke with bloomberg politics reporter bill ferry from capitol hill for the latest. bill: they said that they have the three spy chiefs who head on the hill said they have more

confidence than they did in october when they first released the report saying russia was behind it, that that in fact was the case. and they pushed back quite a bit against some of the public criticism they received by donald trump who said earlier this week that a briefing had been delayed and thought it was they still had to build their case. the spy chiefs on the hill made clear today they think they have a solid case and will be in new york presenting that case to the president-elect tomorrow. caroline yirks in talking to trump's pushback he took to twitter once again, his favorite form of discussion and he's talking actually about his association potentially with julian assange saying he's denying he's in agreement with julian assange but saying he's a big fan of intelligence. we're seeing the tweet right now on our screens and what about this so-called unhelpful criticism? they didn't feel it was going in their way but went too critical of donald trump as they could have been. bill: right. these guys all speak in a very

nuanced tone and they didn't single out trump or his criticism directly. they did say that, you know, public criticism of their work isn't helpful, it's not good for moral. i think it's something they would prefer happen maybe behind the scenes. these are by nature very skeptical people. the intelligence community, spies, they are skeptical by nature, they ask a lot of questions, so they're accustomed to that. i don't think they're accustomed to being put in the public eye front and center. we've never really seen a time in the past when an incoming president so blatantly and publicly question their work before he takes office. remember, there's a whole range of issues that the president-elect, when he takes office, will have to count on the intelligence agencies for, whether it's the latest assessments of islamic state to china's moves in the south china sea. without that kind of information, a president is essentially flying blind.

caroline: in the meantime trump continues to weigh appointments really to national security. this week we learned former indiana senator dan coats is set to be trump's leading candidate for director of national intelligence. former c.i.a. director jim woolsey spoke to bloomberg about how we should be focusing on the bigger picture as trump transitions into power. james: this is a minor blip. the intelligence business is full of controversy and arguments about assumptions and why did you do this, why did you issue that, then what do you mean by weapons of mass destruction, on and on. this is a hiccup. >> respectfully, though, it seems like the president-elect is taking a different tone with the intelligence community than the acting president has and previous presidents have. what's the relationship supposed to be like and what's it been like historically between the president and the intelligence community? james: well, the president ought to by a few months, i think into his 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 fairly technically complex. but as you learn about them, you get to do a better job, i think, of understanding what we know and what we can draw conclusions from. so it's a kind of a older teacher of student relationship but the student is the president of the united states and the holder of the position at one might say is most important or powerful in the world. so it's a different kind of relationship. the presidents i've worked with, important or powerful in the world. four presidents, two republicans and two democrats, they've all been willing to hear out a different take on things. and i have no reason to believe that donald trump won't do the

same. i think that it's important that the intelligence community help the new president and not nd of sit back there and criticize. david: let me take your metaphor about teaching. i heard past presidents talk about the immediate reverence they have of the reports they receive on a daily basis, those grievings and how awesome it is for lack of a better word to get this information, playing out the metaphor further, is donald trump spending enough time in class, is he briefed enough? jim: there's more than one to be briefed about in class, you can have seminars or meetings and the two years i was ahead of the intelligence for president clinton, he didn't have a morning briefing. he didn't like to be briefed. he didn't like to have stuff read to him. he was a speed reader, is, i suppose still, a speed reader and he liked to go through things quickly and then maybe ask some questions on the side, write a note in a book or a

book of briefings, jim, the fourth point seems to me to track what kaplan has in his new book, have you read it yet? bill clinton did things like that all the time which was different than sitting there and taking the morning briefing but that's the way he wanted to work. and however the president of the united states, and in this case to be for the next four years anyway, donald trump, wants to have information presented to him, people need to accommodate him and not kind of sit back there and just kind of grumble about it to the press. david: let me return to the previous tweet and give him the benefit of the doubt and say perhaps he was joking about the matter here, i wonder what you'd say to the intelligence community who doesn't welcome this criticism to the president-elect who wonders about the publicity associated with his job to question perhaps the president-elect's commitment to the intelligence community and the job that it does. jim: i'd 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's important not to get distracted by small matters. you got to call it straight if somebody comes at you, whether it's the cabinet secretary or vice president or even the president, national security advisor, and tries to push you off a point and you think you're right, you address it clearly, here's why i think this is right. and i believe, just based on a couple meetings i've had with him is donald trump is a fair-minded, balanced individual who talks rationally, quite reasonably about matters in small groups. caroline: coming up, the tech surprise stories of 2017, from fan dominance to lemonade. we discuss the winners investors should keep an eye on. this is bloomberg.

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caroline: online medium is cutting half its staff or roughly 30 people announcing changing its business model and started by twitter founder ed williams relied on the same thing others have survived on, placing ads in articles. on wednesday he called that broken. the job market falls on the company sales and business side. we're continuing to monitor the departures at twitter. kathy chance, the company's top executive in china is leaving twitter after eight months on the job. chin announced she's taking time off to pursue more international opportunities. she was hired to seek out new advertising revenue and other business in china and taiwan. now to tech sector surprises of 2017. r.b.c. is predicting amazon

will undergo a major investment cycle this year. that's not a concern for investors who worried about the company's bets on original content and ramped up shipping efforts. but r.b.c. says amazon reached a point it can shell out big bucks and still boost its margins. this as the company says a number of merchants using the logistic service rose 70% to more than $2 billion in 2016 and the virtual assistant alexa makes waves in new partner appliances. and for what to watch this year, we caught up with r.b.c. capital markets analysis mark haney. mark: the one big difference between amazon today and 20 years ago is they have this business called a.w.s., amazon web services, the cloud business, which have margins 10-x greater than the core business, 25% operating margins versus 2.5%, 3% and what it means is they have more cash to make investments and are saying is loudly, we'll make

aggressive investments but believe we've reached a point of scale to do that and run the business profitably. the cloud cushion, the cloud cash cushion allows them to do that. caroline: one of your top picks in terms of investments. and facebook and netflix, let's look potentially where the fangs could perform versus s&p. we have a chart and we saw last year not so pretty. they did lag the s&p overall as a benchmark. what about 2017? mark: 2015 was the year of dramatic outperformance. it's rare, very rare to see outperformance two years in a row especially that magnitude and that group of stocks rose 80% in 2015. going into 2016, frankly up until the trump election, the sector had outperformed and then we had the trump rotation away from growth. i'm not sure how long that lasts. i fully expect that will be a head wind for a while but think there are one or two interesting stories in the large cap internet space and among the fang names.

first is netflix and believe they can add new subs in the international market and if we're right the stock goes higher. secondly, facebook modestly outperformed the market this last year but dramatically d-rated and the multiples come down a lot and is at a point the first time in three years we think we can make money on the long side both in upper estimate revisions and the multiple going up. caroline: looking at the chart, facebook performed in letters and facebook and amazon and google is lagging for 2016. but therefore, they cannot beat the overall market. google i want to dig into the laggard of 2016 because you say that actually finally some of their outside bets could actually bring in some money? mark: that would be a surprise and when we say surprise we think it's something that probably won't happen but the odds are greater than the market ascribes to. netflix is also its multiple has come down because people have become skeptical about the other bets, where is the money coming out of autonomous vehicles and what about nest and home automation.

we haven't seen anything. google fiber has been cut back. the market has tuned out that segment and we think there's enough interesting bets that are put in there and enough people and when it comes to autonomous vehicles, that's probably three winners and we think google could be one. when it's hard to know. we think if any one of those bets shows materiality at all that would be the surprise for investors. caroline: talking of winners to losers, you think the mark is too optimistic on the pain side of it is twitter? mark: that stock underperformed two years in a row. we think it could be the case again this year, it's our sell in the large cap space and the streak believe there is will be reacceleration of growth, even modest. caroline: revenue could rise 10%. mark: that could be a risk and there's a reasonable scenario revenues decline. this company literally goes x growth and not seeing it in terms of advertiser interest. i know president-elect trump is interested in prettieri. caroline: what did you call

him? mark: president-elect trump, tweeter in chief. but outside of that, we haven't seen major advertisers fully embrace twitter and in fact at the margin seem to be pulling away from it. that's a problem. caroline: twitter doesn't look pretty in spite of the tweeter in chief as you call him. more on the politics side, you're saying this is still a bit of concern when it comes to the fang investment but overall, maybe one of the surprise causes that actually trump doesn't change the tech outlook at all. mark: two things. one, clearly there has been a rotation towards new areas. this has been a very slow growth economy for a while and so premium growth stocks like the fang names like internet names, the high quality ones have outperformed. now the rest of the economic growth seems to be ticking up, i get the point that you just less of a need to pay for premium and growth because there's growth in other parts of the economy. in terms of whether trump would have an impact on the internet stocks, you know, it's unlikely but there are two areas we look

out for net knew neutrality and changes there could affect netflix and the talks of the border adjustment taxes or putting taxes on changing how you would allocate cost to companies, that's something that could a material negative impact on amazon. we don't think that will come to pass but those are two watch areas for us. caroline: one outside bet to leave us wowing, it didn't come to bed but will yelp get bought out this year? mark: we like the company fundamentally and that said we liked it the last 2 1/2 years, as a strategic asset, 2.3 billion, a local payoff in advertising just be it in the u.s. and possibly local transactions. we think there's a range of bidders out there and think there is a more willing seller than a year ago. in order to have a sale it takes two and this time you have a seller this time willing to sell. caroline: that was r.b.c. capital markets analyst mark mahaney. in another funding board this week, silicon valley stock pretera raised $140 million in

the first and final funding round as it ramps up manufacturing ahead of a potential i.p.o. the electric transit busmaker expects to go public this year or early 2018. g.m. and proterra is expected to be back and a single vehicle can travel 350 miles on a single charge. after months of anticipation, another glitzy unveiling for an electric car startup. but not all went smoothly onstage. we'll tell you why. a reminder that all episodes of bloomberg technology are live streaming on twitter. check us out weekdays 5:00 p.m. in new york and 2:00 p.m. in san francisco.

♪ carol sign: it was a huge week to the auto industry and here are a few headlines that caught our attention it. fiat chrysler showed a minivan.

the chrysler portal has a 250-mile range. the software would take care of most of the driving, however, it's a concept car and there's no guarantee it will ever be built. intel is seeking to buy a stake in the mapping consortium named here owned by german automakers and must pass a german anti-trust inquiry before the sale proceeds. they applied monday and will receive an answer for the application in a month. and ford announced it's canceling plans to built a $1.6 billion plant in mexico. instead it will spend $700 million expanding the existing plant in michigan to build self-driving and electric vehicles. ford c.e.o. mark fields explained the dominance had the hybrid and electric market in bloomberg. mark: we're the number one seller of plug-in high brids in the united states today and number two seller overall for electrified vehicles. we want to build on that. can you see that through our announcements today.

keep in mind we only talked about seven of the 13 electrified vehicles coming so there's more to come. caroline: staying with car tech. tsx 2017 boot up a glitzy unveiling of the car startup faraday future. after showing it last year the company came back with a first production model called the fs-91 and faraday claims it can pass the model s in a ludicrous mode, going from 0-60 in 2.39 seconds. also like tesla is backed by a ambitious billionaire. the founder and c.e.o. of the tech conglomerate. and we discussed with corey johnson and selena wang who coughs the eko. cory: it's amazing to see how many companies work in this technology. it's not all tesla's game and we talk about it because it's a silicon valley company. but the automaker startups like

this or companies like ford and many others, audi, b.m.w. all working on a lot of these ideas, porsche, a lot of interesting work around electric cars. tesla might have pointed the way but a lot of companies are coming very fast on this phase. caroline: the chinese billionaire was there at the event and it was him that was slightly embarrassment made the car didn't quite park and i think he called it a bit lazy that day but tell us about the billionaire behind this company. selena: the billionaire behind it, he goes by y.t. and is well known in china and known for being very brash and very ambitious, sometimes too ambitious. he actually started out as the local i.t. guy on the tax bureau and made his fortunes on the publicly traded company which is like the netflix of china and growing very fast but from there expanded into a slew of other businesses ranging from smart phones, to headsets, t.v.'s, movies, smart bikes and

you name it, he's expanded into it. recently we're seeing he may have expanded a bit too aggressively and wrote to an internal memo to employees they're moving too fast and having trouble raising cash. but again, he's a very brash, well known person in china. he says things like apple is a very slow innovator and we can outbeat elan music and tesla. caroline: outbeat another ambitious man, elan music. cory: you talked about the no parking model and when it was built in los angeles, elan music couldn't get the trunk to open and when they got another model he got out of his car and smacked his head, showing the head room and showed how little it has. he's a tall guy. but nonetheless these live demos, ala steve jobs are hard to pull off and interesting you see every c.e.o. of every industry thinks they have to go on the stage in blue jeans and a black turtleneck and introduce their products as opposed the way other cars and

things used to be release. caroline: we see in the tech companies, the technology doesn't work, as well as wi-fi. talk about the money put into this, when it comes to the billionaire, how much is he winning or losing and when do they start to sell? selina: he put millions of his own money into this and has a unique way to finance his ventures and he takes his shares and plows it in his adventures. you can reserve this car for $5,000. it's unclear how much this is going to retail for when it comes out, apparently, in 2018. i think that after last year's show, there was skepticism around his futures as they didn't release any functioning car but merely a concept car and this year we got a actual functioning car but still have a lot of questions hanging in the air, lots of skepticism around how will they make money? this is expensive to produce and unclear what the business plan is going to look like.

caroline: 5,000 per order, only 1,000 when it came to tesla, talk to us more about what's going on in tesla and it's not all about cars and they do have a giga factory and that's running and they skipped their deadline. cory: tesla has a history of not hitting the deadlines and missing its own estimates. as we discussed, it's also interesting this production issue which will happen to all these carmakers. production is hard. tesla this quarter said they had product problems and couldn't get out as many cars as they had like and the same excuse for missing numbers in the first quarter. these recurring problems of producing as much as they thought they were and doing it successfully is really hard with the business that's the model x and model s. when they want to get to a much larger level, they'd have to more than double production this year and the next year, which they've been unable to do in order to get the level of model 3 they want to produce. caroline: the giga factory, the shares are popping up more than 4% though we saw them fall yesterday on concerns of the

car part of the business, giga factory up and running they hit their deadline? cory: the factory is running, but how much they're producing is a question mark. we'll see what they actually produce over time and if there's value there and demand for this product. where there are dozens and dozens of competitors who can hang a battery in your garage for unquestionable use. caroline: selina, what do you think of some of the debate going on when it comes to c.e.s., of course who wins and whether it's indeed the tech companies or auto companies but faraday wants to own the data and what's the vl in selling these cars, is it more of what they make on the profitability on the car itself or where does the billionaire's vision go? selina: i want to talk about it in the context of leco, i sat down with y.t. at their headquarters a few months ago and he laid out this very broad vision of what he wants the consumer to experience. imagine this, you have your leco cell phone and start watching a leco movie on it and

ou may hail an autonomous leco vehicle where you continue to watch the movie in the car and you exit the car and finish where you left off and watch it on a leoco head set and continue on a leoco smart tv. so as you can tell from the scenario, cars are an integral part of this vision, because y.t.c. is the future of electronic vehicles, and that vehicle is another place to watch content and remember this company actually started as a software contentmaker and all of these devices and hardware, cars, smart phones, you name it, is you will just shells to hold all their software. so in the context of y.t., it's a very broad vision he has. karl ine: that was bloomberg's technologies, selina wang and our editor at large, cory johnson. that does it for the best of bloomberg technology. we'll bring you the latest in tech throughout the week. tune in each day 5:00 p.m. new york and 2:00 p.m. san francisco and 6:00 a.m. in hong kong.

be sure to catch our show monday and when we'll hear from e.u. competition commissioner margaret vestiga on the e.u.'s case on apple's technology. that's all for now. this has been blerpg. ♪ . . . .

david: did you think you would grow up to be the ceo of a large company like pepsi? indra: it is a dream come true. david: when you get advice do you ever listen to it? indra: you never know if a nugget can translate into a success for the company. david: not long ago an activist showed up. indra: my job is to make sure the company is performing very well. david: suppose somebody has a product from a company that is based in atlanta and you see it in their refrigerator, what do you do? indra: i let it be known i'm very unhappy. >> would you fix your tie, please? david: people wouldn't recognize me if my tie was fixed. let's leave it this way. all right. ♪