>> 1:00 in hong kong. an update on your top stories. donald trump has confronted two of his biggest challenges one week before becoming president. he says he will not divest from his companies, also dismissing claims that russia has damaging information about him but conceded that moscow was behind the election hack. the samsung heir is being questioned by prosecutors investigating korea's undue influence scandal. prosecutors want to know whether samsung made payments to a confidant of president park in exchange for political favors. a former swiss banker has become

the first foreigner to be jailed in singapore during the investigation into malaysia's 1mbd fund. he was fined almost $90,000 after admitting six charges including failure to report suspicious transactions. inal news 24 hours a day more than 120 countries, you are watching bloomberg. let's take a look at the markets right now. afternoon trading getting underway in hong kong and shanghai. 1%nghai gaining 3/10 of along with a benchmark index, which is up. ♪

caroline: this is "bloomberg technology." the president-elect meets the press. talking on everything from russian hacking to the media itself. what are impacts on the tech sector as the affordable care act is repealed? we will assess. new ugly allegations hit samsung's leadership. why the new bosses getting his day in court. but first, to the lead. in the first formal news conference since winning the election president-elect donald trump tackled one of the most controversial issues plaguing his administration, russian hacking. he has talked about the role of russia. and did so again in these remarks. >> as far as hacking i think it was russia but we get hacked by other countries and other people. if putin likes donald trump, i consider that an acid, not a liability. we had a horrible relationship with russia.

russia can help us fight isis. caroline: on twitter he slammed media outlets that reported it and compared it to leaked intelligence -- compared linked intelligence to nazi germany. great to have you on the show. what have we learned in terms of trump's views about whether the russian government was behind the attack. >> we learned that trump admitted that russia was involved in the hacking attack. although he went on to say that some others have been involved in hacking attacks which is true but this you at hand is to what degree the russian government meddled in elections and what the response will be. caroline: it was fascinating. all of this has been very much

in the spotlight because of some reports that potentially russia has a file on trump himself. >> they looked at that nonsense that was released by maybe the intelligence agencies, who knows? but maybe the intelligence agencies which would be a tremendous blot on their record if they did that. a tremendous blot. because a thing like that should have never been written. it should never have been had and it should certainly never have been released. caroline: i looked at that nonsense. what else did we learn about this particular media storm? chris: it is important to separate some of these issues. there is a memo going around

with unsubstantiated accusations about trump and his associates and business dealings in russia. there is the hacking that took place. the memo has given the trump of weapon in which to downplay any of the legitimate concerns, any of the legitimate investigative lines of questions that there are. at the press conference there were questions that were trying to be asked but trump obviously wanted to not engage in those questions and lump everything together as being fabrications in this memo. what we know is that there are legitimate lines of questioning an investigation into the hacking attacks that remain unanswered. caroline: he seemed to be rather confident that if he was hacked it happened when he was president. why is he showing such confidence in this respect?

chris: it has been a mystery to the degree that he has been differential to russia and vladimir putin. in the press conference he said it both ways. he said wouldn't it be great if we had a great relationship with russia and if we do not, that is ok. he went on to say that there probably will not be russian hacking when his administration takes over. which i do not think there is any credibility to that statement. the russian government has been hacking u.s. institutions, he was political groups for years and there is no indication that will change under the trump administration. caroline: maybe some false hope there. thanks as always. let's stay with this theme. turning to the hacking itself, the fbi and others in the u.s. intelligence have linked the dnc breach to a group of hackers they say are backed by the russian government. that group is known by some as fancy bear or apt 28. it is out with additional

information on the groups work. a great body of work that you have done and amazing activity that the so-called fancy bear half. walk us through what you try to build upon in this new report. laura: going back before this became the political hot rod, we were profiling this group that we call a pt 28 and are treated their actions to the russian government as the sponsor. we have seen a variety of targets. everything from journalists in chechnya to the elections and the dnc and the world anti-doping organization, the same entity that put the ban on russian athletes. a friday of targets we have seen this group go after. they have done it in a couple of

ways. they will breach the networks using malware so software used maliciously to get into a network and hack into email. we are seeing another side of these operations that play out on wikileaks and d.c. links. this is when the troves of email have come out that change the conversation. it is the combination to change the narrative through the leaked data that has been so powerful and the arsenal of what apt 28 has been doing especially in the u.s. in 2016. caroline: using social media as a means to do this. is there a risk that this is still going on? a much could the u.s. government and the german governments be compromised? laura: this is not just going on. the group behind this is innovating and they are taking it to europe next. we will see this continue to occur on policy issues in the u.s. the elections were one of

variety of targets that this group has gone after. when we look at the upcoming elections in the netherlands and france and germany, we are seeing the same mechanism. ability to get hashtags trending. a focused ability to change how the robbers nation in the press plays out. -- how the conversation in the press plays out. this group is -- that this group is attuned to. they do this reflexively. they do not need to change the malware. they need to change the flavor of how the get their message out. that is what is so powerful here and also easy to deny. if the narrative changes, was it just a sense of what needed to be reported on or was it actually operations? there are clear intentional operations with the frantic behind it that link back to a russian government-sponsored effort. caroline: could you eliminate for us how you track this to who they are sponsored? laura: there are hallmarks within the software that give us a few of these indications. the compile times, the marks

that show when malware was built continue to go back to the utc time zone that moscow is in and over 90% of the samples online to the working hours 90 5 p.m. when this malware was compiled. we also see the marks of a really well resourced effort. the malware that has been built shows certain techniques to try to evade detection so that people researching the malware cannot unpack it and understand it as well. these are the types of telltale signs of the people i'm this, the developers are thinking about how to do it. their resource. they are not just dying tools online for $300 and applying them. this is a state effort that takes years of thought, years of planning, and the targets themselves say so much about this. the combination of caucus agencies, agencies in georgia, defense attaches, ministers of

foreign affairs, these are the types of targets that show a state interest. with the totality of that evidence that is what has led us to believe that the russian government is the likely sponsor of the group. caroline: i had no idea hackers kept a 9-to-5 regime. give us the idea of what you are doing, the light your shining on this. is this a game of whack a mole or can something be done to tackle the vulnerability? laura: the line is between hacking and aggressive measures that interfere with the internal memory -- actions of the state. what is sovereignty in cyberspace and we consider cyberspace or do we consider information space, that is the question between russia and the u.s.. russian chinese governments have -- and chinese governments have consider this definition of how they considered this domain.

on the u.s. side and other nato countries they have thought about this in terms of 1's and zeros. what are the implications of choosing either mentality? caroline: when we hear from president elect donald trump saying he does not think he will be attacked while he is president in terms of cyber security, should we be believing him or pouring cold water over it? laura: it is a matter of when, not if. we have long seen a variety of different breaches with that they are on the department of defense networks or against companies. what has changed is the type of actors and the type of venture 10. -- type of intrusions. what has not changed is the predilection for rival countries and for state-sponsored efforts to go

after key government targets in the u.s. i would be surprised of that changes in 2017. caroline: your report makes for fascinating reading. while trump is claiming he is the victim of fake news, facebook is helping curb it. then asked a project that will include partnerships with media companies and better efforts to educate users on how to avoid them. the journalism project follows a year of debate over facebook's role in the media. they faced questions whether it was biased in the way it presents news to users. members of the media will be updated on the efforts on the new facebook journalism project page. 2016 proved to be a banner year for enter capital fundraising. we will dig into the numbers. this is bloomberg. ♪

caroline: southeast asia's most valuable set up picked goldman sachs to beat an ipo that could affect $1 billion valuation. the singapore provider plans to select additional banks as soon as this month and the company is considering listing in the u.s. venture capital funds in the u.s. received the most money in 2016 since the booming.com bubble. last year, the venture industry raised under $42 billion according to a new report. they are slow to realize returns. venture firms participated in over 8000 deals, a significant drop compared to the 10,000 plus

deals in the previous two years. now joining us. thank you for your time. we want to get to the bottom of this. is there a bubble, is there a bottleneck that is growing here? >> when we look at the data now that we have had the fourth quarter data compiled, there are three key takeaways as you mentioned. you have the investment care back, what we hear from our members, it was more of a normalization back to rational levels. a lot less than what we saw in 2015. as your graphic shows, 2015 was the peak of the last decade or more.

we look at the amount of money that was raised right the funds we have optimistic view of the future that entrepreneurs will have an opportunity to get investments, to get the capital they need to start and grow great companies. as you pointed out, the ipo is where we need the help. and hopefully in washington we can do it we need to do to make changes so that there are more ipos. caroline: what changes are needed? guest: the jobs act that was passed is a great step. it had things like the confidential filing and testing the waters divisions and we hear from startups that that has been important to them. we need to sit down frankly with others that are a part of the ecosystem and figure out what the next best steps would be. we do not pretend to have all the answers but we are committed to working with whether it is exchanges or the investment

banks. it is too important to the economy of the u.s. to make sure that startups have another option for an it, not just a merger in a position, but an opportunity to go on to the public markets. caroline: within your reports you mentioned traps some of the valuations of the startups are worrying as to whether they would be achievable in the public market. i you flagging the likes of snap? yes: i will not talk about individual portfolios. it is important that we have great experience for these companies that are going out. a lot of people on the pipeline sitting on the sidelines will be watching to see even as a positive experience for these first ones that go out the door and go on to the public markets. that will be important. there is a fairly healthy pipeline and there is a lot of optimism from our members that we could see more ipos this year than certainly we saw this past year. caroline: talking about the funding for the startups pre-ipo, you say they are traps coming back down to more rational levels. is there an element that the

startups are wanting to high valuations at that point, are they not finding the balance or is there not many good companies to beginning into that slowed the pace down slightly? guest: there is a correlation with the high find -- fundraising efforts. you might have less time to spend looking at a lot of first financings. when you look at those first financings, you see that that number is down. it is part of the larger story. you have had several venture firms that say we are happy to take our time. we are glad to see some of the valuations come down. we can get back to the way that we are more comfortable doing business, take our time, dude our due diligence and make sure we are making the right investments and backing the best companies that we can. caroline: $42 billion pouring into bench funds, will that slow in 2017 after other assets are doing well and is there worrying that it has been consolidated

into too few hands? guest: some of the bigger firms are raising bigger funds. seven funds were raised at $1 billion and more. that is a lot bigger than the historical venture capital numbers. i think you can see changes in the venture industry. it continued to see bigger firms ring different service models to the ecosystem. they are going to learn new ways to deploy the capital to the right entrepreneurs to make successful businesses. we see changes with more micro vc's coming on board and making institutional seed investing more of its own specialized asset class with adventure. caroline: thank you for your time. coming up, after a strong start to the year, the coin is taking a big fall.

we will explain what is behind the slide. this is bloomberg. ♪

caroline: snapchat says it has 150 million users which has been inspired by the competition. instagram will start the test in a few weeks with 30 clients including nike and capital one. the maker of the wearable fitness tracker fitbit halted production in december because the devices were piling up at retailers and supplies and -- amid disappointing sales. in november it cut its sales forecast for the crucial holiday

season. the ceo told us last week he remained confident in the product. >> what help this remain a leader is the brand fitbit stands for health and fitness. we build a lot of loyalty over the years. the fact that we are cross platform we have a broad selection of products with different price points and long battery life. we have a huge committee of users. we have shipped over 50 million devices and that user community has built a competitive mode for us over the years. caroline: they did respond about the latest report. the new york -- the change will come by the end of the year. and after rising the last few months, bitcoin is falling. more than 16%. chinese authorities are turning

their oversight of digital currency. i want you to check into a particular chart. as we see it here, we're looking at how we have almost over the past few months seen record highs overall for bitcoin. coming back to what we have not seen in several years. a sudden fall off. you see a downward turn. china is casting its beady eye. it is falling and rising and in blue, the chinese yuan. you have seen money pouring into bitcoin. china wants to find new areas to make into assets.

the health care tech industry has grown dramatically since obama care passed. ♪

>> an update of your top stories. donald trump has confronted two of his biggest political challenges over one week before he becomes president. he says he will not divest from his companies and laid out plans to avoid conflicts. he dismissed claims about russia but conceded that russia was behind the election hack. rex tillerson has faced a wide range of questions in his confirmation hearing including russian hacking. he said moscow -- but he refused to call president vladimir putin a war criminal for his actions in syria.

he also says beijing cannot use disputed islands in the south china sea. >> the island building stops and your access to those islands is not allowed. hsbc will pay $45 million to settle a price-fixing case in the united states. it resolves a class-action lawsuit filed by investors over claims of price-fixing. the case was heard in manhattan. forrgan great -- or find rate -- in the eu. bloomberg. let's get a check on the market. not a bad day for original equities.

coding at levels we have not seen since october last year. the yen strength weighing into the nikkei 225. australia closing out the session pretty flat, as well. seeing thewe are hong kong market coming off a good run. hong kong had been higher so, its first loss. a lot of weakness coming through from the casino players. profits came through above estimates, $3.2 billion. shanghai, pretty flat. 1% as theby 2/10 of chinese yuan rises the most in one month against the u.s. dollar, so quite a lot of movement coming through. the yen strengthening 6/10 of 1% .gainst the dollar if we have a look at the korean up want -- korean yuan,

against the dollar. we are going to be live from london at the top the hour. this is bloomberg. ♪ >> this is "bloomberg technology." i'm caroline hyde. president-elect donald trump said he would repeal the affordable care act speaking at a news conference on wednesday. we explore the changes in the industry under the ground breaking law. we will bring you that data in just a moment. investment has exploded. venture funding rose. that money is going toward things like electronic health

records. and major companies want a piece of the action. ibm has spent $4 billion on related acquisitions. general electric expected its health care unit to grow more than 20% over the next two years . the industry is bracing for a in health care policy. donald trump promises those changes will come as soon as possible. >> as soon as our secretary is ,pproved, almost simultaneously it will be repealed and replaced. will there be a slowdown and technological breakthroughs? washington,ow from

and with at accolade, me in san francisco, the ceo of a start of that provides infrastructure technology for the health care industry. will, in fact, the affordable care act to be fully repealed? >> it's pretty unlikely it is fully repealed without an alternative. over 20 million people have been added to the system, many of which come from states that trump won. before affordable care act, more than 14% were insured. now less than 6%. unless there is a viable alternative, it's highly unlikely. there are many aspects of the affordable care act that will continue and flourish that health care investors have been investing in. caroline: you heard the views. you are at the heart of helping modernize, make more efficient the infrastructure behind health care. is this something that even if it is repealed, would be moved away from the efficiency search,

the drive for it in the u.s.? >> many of the market drivers for technical innovation are not going away if the aca's are peeled the shift of cost to the consumer, the shift of value-based care we are seeing led by cms, that's not going away and it's driving a lot of what we are seeing in innovation in the medical industry. caroline: in terms of certain schools within it -- there is an element of uncertainty in this period of time. >> if anything, it's causing pause. in the long run, i don't think this is going to be a big impact. lower costs, higher quality has been the mantra within the affordable care act and it's also within the trump approach. as lisa was mentioning, whether it be payment or consumerization

or even shifting the sight of care, all of that will continue and maybe even accelerate. even when you think about the divisionization of the medical system, the stimulus has $30 billion allocated to move medical records from paper-based to electronic-based, and that has been the foundation for a lot of new software and applications being developed to advance health care. innovation, disruption will continue within health care. technology investing, regardless of how this shakes out. caroline: lisa, as it slowed your decision-making process in any way? lisa: no. many of the best that have been made to digitize the health care industry were made prior to the aca and will continue. from our perspective, and here's the only point i will differ on this, even with the economic

stimulation, even with the adoption of electronic medical records, much of that is written on circa 1990 software. we are really expecting to see from this administration and their commitment to investing in infrastructure, a commitment to modernizing health care in the u.s. for the first time. we are creating open software development platforms to bring these products and solutions to market quickly. health care systems, private insurers, even cms, they have made their bets. those buying cycles are over for them and they are starting to deploy -- caroline: what does it look like out there at the moment when you are analyzing the environment? who is the most interesting to be invested in, which parts of the health care system do you think are most like the disruption? >> the intersection of health care and technology, where people are investing in software application that will enable -- enable higher quality, lower

cost. the foundation has been laid with digitize asian -- digitization of medical records. we have companies that are within the clinical communication workflow of space, and their whole mission is to improve outcomes and lower costs, and they are benefiting from the trend we are seeing. even as you look at shifting sight of care from hospitals to home-based care, where patients were lower costs and patients -- we have companies like premise health and home team, where they are at the center of that. almost across the board we are seeing tons of innovation disruption. i think with any discussion about aca repeal, there is something uncertain created. we could see some pause in buying, elongation of the sales cycle. caroline: is that something pocket doc is experiencing when you are looking at your supplies? how have those discussions gone?

lisa: health care is probably the longest enterprise sales cycle known to man. putting that aside, we haven't seen a slowdown in that sales cycle for pocket doc. at the same time, we have 10% week over week growth, and emerging companies adopting, coming to our platform, signing up for our api's, and building product and production today. that hasn't slowed down. i do hear and i certainly here in the industry from other companies that they are experiencing a slowdown. they certainly did if they were waiting for the results of the election. i think most recognize that the aca, that's not going to impact a lot of what they are doing today. it's not going to impact the out of costs to the consumer that is driving a lot of these innovations or new access models, but it will have some effect for sure. caroline: where is the competition when you are looking at startups help provide these

efficiencies to health care? they must be coming out of asia as well as europe? is it only u.s. companies that will be adopted by u.s. health providers, or will they go further afield? lisa: platforms like those -- ours allow companies from outside the u.s. to enter the u.s. market in ways they haven't before. the other thing it allows his other industries to start to insert themselves into the health care workflow, like financing, banks who want to offer financing to consumers who can't afford a particular feature, or companies like amazon who want to start providing different goods and services, durable goods to healthcare. we will see a lot more of that as we come into this year, and as there is a modernization, move to the cloud across the industry. caroline: health care is ripe for disruption. lisa maki, great to have you here. and partner at accolade, thank

you for joining us live from washington. coming up, we continue on deep dive on health care, honing in on the innovations that are taking perception sky high. the vice chairman of samsung due to appear in court after just a few hours. we will bring you the details from our tokyo team, next. this is bloomberg. ♪

caroline: a stock we are watching, apple closed on a high note on wednesday, rising to 119, the highest since november 2015.

a taiwanese company is a main assembler of apple's iphone's and has suffered as a global smartphone market went to its worst year on record. it is also the world's biggest contract manufacturer of electronics. special prosecutors have called the samsung vice chairman and for questioning is a prospect in a bribery investigation. the scandal has led to the impeachment of south korea's president. the de facto head of samsung is set to appear at 9:30 a.m. in seoul on thursday, just a couple hours from now. joining us live as peter ahlstrom. it's not been a great 2016 on a product point of view from samsung, and the conglomerate side, a political scandal now. keep us up-to-date with what we are expecting today. >> that's right.

this has taken a turn for the series for samsung. the focus of this investigation has been on president park and particularly her relationship in this influence peddling investigation. prosecutors have been looking into donations that many of the large conglomerates in korea have made to ms. choi and some of the foundation she controls. samsung denied any wrongdoing, they said it's common for the government to come to the big companies and ask her contributions when there is a charity drive or sports event. as the specifics of these contributions have been made public, prosecutors have narrow the focus in on samsung, in particular samsung was involved in giving a billion worth to the daughter of ms. choi and millions of others in horse riding lessons. as prosecutors focused in on this, it has become more serious. caroline: what does it actually mean for the leadership of

samsung, if the de facto leader is embroiled in this? >> it calls into question whether samsung will be able to proceed with the succession they have been planning for a long time. at this point prosecutors have not filed any charges. they are still investigating, they will talk with mr. lee today and get answers to his questions. what they will focus in on is a merger that has allowed him to gain more control over the conglomerate. in 2015, samsung proposed merging a couple of their affiliated companies straight it was a deal opposed by activist shareholders, including paul elliott singer from the u.s. they said the price being paid was too low, and this would give the family more control over the conglomerate. at that time, korea's national pension service played a key role by voting in favor of the merger and helping it again approval. they're focused on that and whether there was influence exerted on the pension service

in that deal. caroline: you mentioned mr. lee caught up in all of this regarding horses and horse riding lessons. what about other executives? he's not the only man being investigated. >> he's not. when lawmakers were asking questions about this, they were the heads of 9 different conglomerates that were called in. those include the heads of hyundai and some other places. now it looks like the focus narrowed on samsung. a special prosecutors proceed here, they will move on to other companies. the fact that they are starting with samsung put some under the spotlight at this point. caroline: what do we expect to hear today, and can you eliminate a little bit on the timeline of things, -- illuminate a little bit on the timeline of things, and what will be said in the press today? >> sure. prosecutors will question mr.

lee behind closed doors. typically special prosecutors have been giving press conferences afterwards, talking about what's going on. it's not clear what kind of details they will give out at this point. we should hear something later on today about what happened in the hearing. caroline: a fascinating story that will continue to be investigated by bloomberg. coming up, thursday on bloomberg television, a noted economist at harvard university will give his global economic outlook as trump transitions into power to catch that on "bloomberg daybreak: americas" at 7:00 eastern. coming up, the ceo of the world's first national drug delivery program. this is bloomberg. ♪

caroline: zipline is taking health care to new heights. the california-based startup uses drones to deliver medical supplies to remote regions around the globe. the company started the world's first national drug delivery program, partnering with the rwandan government to send medical supplies to doctors in areas otherwise too difficult to access by traditional means. just named to the u.s. department of transportation on automation, ceo of zipline. this is a new committee. will it be around for long if it's been announced by secretary fox? >> good question. we think the new administration will be just as interested in driving innovation in the u.s. as the previous one. i'm pretty excited about the future for drones in the u.s. caroline: when it comes to drones in the u.s., you've

already -- already been deploying in rwanda. the other things your company does, delivering blood and the like, what are the learnings you have to deploy in the u.s.? >> over the last few months as we have been running the system at national scale in rwanda, we've realized that building the technology in some ways this easy part. the hard part is designing something they can integrate with a complicated health care network, making sure doctors and nurses know how to receive products via autonomous drones, and making sure that people on the ground you are seeing these planes flying overhead know these planes are making life-saving deliveries. caroline: rwanda was very keen to accept this. the regulatory issues weren't there. how much of an issue have they had in the united states and other companies when it comes to adopting regulation? >> rwanda has a pretty similar regulatory regime to the u.s.

they borrow a lot from the u.s. in terms of rules for airplanes and drones. the difference is that the need is so high, when you can make a delivery that is directly saving someone's life, and b, rwanda has a relatively simpler airspace. it was a perfect place to show how when a company accepts modern regulatory practices, you can generate a lot of value for people who need the help. a lot of the problems we are currently solving in rwanda, you see those same problems in the u.s. people in rural areas often can't get access to the basic medical care they need. our hope is the role model that rwanda is playing right now will influence the u.s. in terms of providing similar levels of health care access in this country. caroline: faa approval close? >> help so. we are going through the process with the faa, talking with them about what it's going to take to get to a point where these kinds of systems can be operated in a

way that saves peoples lives and in a way that it is safe for people on the ground. caroline: other countries coming clamoring to your door? >> i think it's amazing that a small country like rwanda is basically leading the world. they are basically leading the world in terms of showing how this technology can save lives. as a result of them showing what's possible, many other countries have come to us, have come to them saying, how can we implement some of our systems? we are looking forward to expanding this across the globe, both in places with challenging infrastructure, as well as places in the u.s. that you might think of as having good infrastructure, but there are still millions of people who don't have access to health care when they need it? caroline: will it always remain medical supplies? >> without mentioning names, there are several big companies that are trying to deliver like slurve bezoar pizza or burritos -- slurpees or pizza or burritos. we are in the business of

delivering medicine to people across the world. that is a very large problem, 5.8 million kids die every year due to lack of access to basic medical products. you would be happy and honored to spend the next several decades of our lives solving that specific problem -- we would be happy and honored to spend the next several decades of our lives solving that specific problem. caroline: that does it for this edition of "bloomberg technology." all episodes are now live streaming on twitter. weekdays at 5:00 p.m. 2:00 p.m. in san francisco. that's all for now. this is bloomberg. ♪

anna: trump's business plan. the president-elect said he will leave all positions at the trump organization but will not divest or use a blind trust. manus: the dollar dropped as donald trump offers few details of his plans while health care stocks take a hit. anna: and brexit in the high street. fresh data from u.k. retailers, how resilient is the u.k. consumer?