of the united states. return power to the american public and deliver on campaign promises. protesters clashing several times today in the nation's capital as a donald trump was sworn in. authorities had to resort to teargas as hundreds of thousands of demonstrators did damage to city blocks. in london, hundreds gathered in front of the u.s. embassy to protest the inauguration. but u.k. anti-u.s. protesters say they are concerned with the direction the new president seems to be taking in u.s. government policy. there were similar protests in germany. the senate armed services committee already voted in favor of the retired army general james mathis this week.

mr. trump signed legislation allowing mathis to run the pentagon. local news 24 hours a day powered by more than 2600 journalists and analysts in over 120 countries. this is bloomberg. ♪ caroline: i am caroline hyde and this is "bloomberg technology." coming up, it is official, donald trump is america's 45th president. apple bites back, the most vital -- any in the world first to our lead, a new era in the united states.

it was inauguration day for donald j. trump. the new york businessman has become president of the nine states. -- of the united states. kevin, we have been watching all of today's events. there was some lip service paid to the technologies of tomorrow. >> he is vowing to immediately get to work during a very short inauguration address. he vowed to get the ball rolling on a host of issues from rolling back key regulations like a , increasing infrastructure spending and lowering taxes for the middle class. he vowed to be president for all americans, but again, he presented himself as a political outsider and someone who transcends political party. fashion hesic trump

ended with a promise to make america great again. e: how did this resonate with the american public? >> i was speaking to key aides to democratic members and it was a particularly partisan speech. organizingre already as how to serve as the opposition party to president trump. they are quite pessimistic about their chances of blocking any of nominees.s it is his position on the transpacific partnership, which republicans are divided on. it be republicans

fall in line with this administration or we will start the division between the tea party and if the establishment republicans. caroline: we will be digging into what trump means for tech later in the show. a clash of two tech titans. --le has accused qualcomm this marks the first direct challenge to qualcomm by one of its biggest customers. covered apple. now we move to apple suing. remind us what this is all about. >> the fundamentals of qualcomm 's business is it gets its profit from patents. if you make a phone, you pay

qualcomm. apple does not like that and they are trying to do something about that. caroline: it feels they pay too much because the percentage is based on the cost of the phone and not the cost of the part. what does apple want to achieve ?y filling -- suing qualcomm >> it agreed to pay big numbers to apple in exchange for apple not talking to regulation authorities. if we were subpoenaed by a regulatory body, we have to talk to them. in their broader business case, what apple tries to do is have more than one supply in a given component. they compete against each other and get lower prices. until the iphone 7, qualcomm

dominated that part of the fun. caroline: who wins out of this? it seems apple does not just have to go to qualcomm. >> all of these licenses and fees have given qualcomm a hugely. that is kind of getting whittled away. there is a potential for a market share shift there. but if you look at problems of gross margin -- if you look at qualcomm's gross market of 50% and apple's is 140. the decline in the marketplace extra emphasis on how much they can squeeze out of it. if they can still squeeze the proxmire -- profit margins higher -- caroline: is this something we

comingee with others out and suing? lg, which is qualcomm's third-largest customer. it is not difficult to see that handset makers across the world want to see a better arrangement with qualcomm. caroline: we'll wait to see how they respond. speaking with apple, do they think a are caught between a rock and a hard place? they concerned about the billion dollars being withheld? >> a billion dollars is a lot of money for apple but they make a lot more. this is tim cook's apple. he built this business on an extremely good and for

sufficient supply chain. people to talked to give their this and they said, this is a negotiation. qualcomm tends to win legal cases so there is no immediate benefit unless as they can settle for lower license agreements. caroline: we'll be taking a look capital,mm's market down 2% on the back of that news. later this hour, alater this ho. snapchat is revealing key metrics to potential investors and it shows how much is addictive -- users are addicted to the app. as we had to break, here's a live shot of the inaugural rate in washington. this is bloomberg. ♪

caroline: amid the rainbows here in san francisco, at&t is no longer on a losing streak. carrier signed up a new tv customers for the first time in four quarters. wooservice helped blue -- videoed prescribers. analysts were expecting less. at&t introduced directv in november and charges $160 plus or channels. channels. >> we stand at the birth of a new millennium ready to unlock the mysteries of space, to free

the earth from the miseries of the disease and harness the industries, and technologies of tomorrow. caroline: what is in store for the tech industry in the new administration? how big of a change will it be from president obama? we asked the founding partner of 500 startups. alan, i will start with you. will we see an administration as open to the technology changes we saw under obama? >> it is hard to predict anything about our new president. he says one thing wednesday and the same day will say something else. we are living in an environment where we are going to have a lot of new things happening. the autonomous vehicle, robotics, ai, she learning, all of those things are going to

have tremendous impact on a positive basis. it is also going to have a dramatic impact overtime on his ability and desire to put people back to work. there are two countervailing forces working against each other. i hear what he says and i don't think he comes with any particular background in this area. it will be interesting to he what he initiate. -- initiates. caroline: which technologies will try to be helpful -- well be helpfulll trump was -- with? >> he will create a lot of volatility. there will probably be opportunities created.

it sounds like there is a high likelihood of repatriation of foreign or receive -- overseas capital. i think you'll see a lot more investment in companies and one and a lot more m and a activity. -- jaredther and his kushner and his brother josh kushner, i hope there is an put there. caroline: talk about potentially be m and a we see to come. perhaps we see a more positive environment coming from donald trump. what do you think about the m and a outlook? i think we're going to have a positive environment is the president implements of the things he has talked about doing and if congress will support him. if they end up lowering taxes or do repatriation of enormous

wealth of capital that have been abroad for the last upteen years. good m and avide activity. i think acquisitions is a fertile area to put money at work. beoline: acquisitions could exits for startups that you support. we heard talk of the robot filler as of the key issues of jobs. much will we see with barriers and borders coming up? >> there is concern about being able to sell customers -- sell to customers overseas and concerned about immigration. the administration might have a tougher policy about letting entrepreneurs come to this country.

now kind of an international entrepreneur rule that allows you to come in with your $50,000 in capital, but there is not legislation. there's concern if we can invest in trade freely both in the tech sector and generally. there will be some concern about the regulatory environment changing. that could be better or for worse, it is not clear, but you will be a loosening of regulatory agencies that could be perceived as beneficial, but it can also create some consumer privacy concerns as well. >> one of the things i take it section two with the dave on this is, the market in general, meaning the business community ,nd i would include startups hate surprises and what concerns to thee is we look

private markets and the public markets, will the present -- president be so mercurial that there will not be a consistency of his program and if that happens that causes people to hold onto their money and to be reluctant to put it to work or to do startups. we don't know where we are going after this moment. we will see a pretty fast, i think. caroline: are you worried about putting your money to work? it has survived all presidencies, high interest rates and low interest rates and there is an enormous entrepreneurial way going on in this country and i think it will be hard to stop it. on the other hand there are events and activities that could be surprises.

we do not know what this help change in obamacare -- health thate in obamacare, will affect people who want to start up companies and are afraid to leave. there are existing health care programs that they have and if that means giving it up to start something, if you have pre-existing conditions -- i think it is all uncertainty at this point. he will be speaking with us going back later in the hour. now, because it next week measure the prospects of silicon valley leaders during their hats in the political arena as the donald trump is officially sworn in as president. this is bloomberg. ♪

caroline: a revolving door in tech. of alphabet's search division will join uber. he will work to scale up bigger -- uber's self driving engineering unit. silicon valley was some of the biggest critics of donald trump. there are already rivers of that facebook ceo mark zuckerberg is grooming his image for a run of his own and take entrepreneur peter thiel maybe i'm a run for california governor. joining us now is sarah fry. and alan patrick off. let's start with you, sarah,

mark zuckerberg, his 2017 new year's resolution has a slightly political flavor to it. >> he is going from travels to all 50 states. he was in dallas or the testimony in the oculus trial and he went to a rodeo, he toured a data center and he is trying to connect with people. whether that means he is running for office, i think people forget that the u.s. population is 320 million. the population of facebook is 1.8 billion. him to shakent for his image as the leader of that as well. this is not just a ploy for something larger, but he is trying to shape his legacy here and absolutely we can see him have much more involved in the government. get your i want to view on the lines between washington and silicon valley.

we connection there because have seen the top five tech companies pay more in lobbying than the banks have in the past years. think we just invested in newsletter companies with the three main people came out of "politico." and one of the purposes of that is to have a newsletter system that connects people out in silicon valley with what is going on in washington and hopefully be a interface in explaining what that is all about and vice versa. totalhas been a lack of understanding between two communities. again, i don't know what the president has in mind. i know there are certainly a lot of talented people out it silicon valley who are politically motivated at this moment in time because of frustration over what the outcome was to the election.

by the way, there are people in new york and the rest of the country who are forming entities and forming conversations to what should be done in the next 180 days and in the next four years. ofoline: we saw pictures just now of one politically motivated man who was on trump's side. talk from politico that peter thiel would be running for governor of california. if you building bridges between the two sides? >> there was a report the other day that he might be ambassador to germany. thiel, he told the "new york times" that he did not want a position in the trump administration, though we have seen that he cares about the shape that policy take and would like to get more involved.

i think that would be a really interesting outcome, especially can bring his comments that he would be cool with california secession. caroline: always a perhaps offsides take. in terms of weu are seeing a wave of those very washingtonice from come to silicon valley to take roles, condoleezza rice, colin powell and the campaign manager and chairome to uber the zuckerberg foundation. is there any chance obama could be coming this way? >> i think i will take it at face value. all the pronouncements he is made in the last week and last month is he is not going to sit on the sidelines from a political standpoint. he's going to come in on what is happening and to be, you might to, a shadow cabinet of one

what happens and not just stand by and observe. everything i read is he is not going to be a passive -- like some other presidents have been. caroline: alan patrick, thank you very much. managing director of great cross partners. up, we will continue our conversation of the biggest implications for the tech industry under president trump. this is bloomberg. ♪

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promises he made on the campaign trail. >> from this the day forward, a new vision will govern our land. from this day forward, it is going to be only a america first, america first. >> former president barack obama thanked supporters today departing forfore california. helicopter with first lady michelle obama. privilege ofen the my life and i know i speak for michelle as well. we look forward to continuing this journey with all of you and i can't wait to see what you do next. inthe obama plan to stay washington until their younger daughter finishes high school. more african nations are

recognizing gambia's new leader, a dominant borrow -- adama bar to and looks forward working relationship with him. the countries former president is being urged to step down peacefully. he refused to step down after the elections in december. speaking on bloomberg today from doctors, switzerland, the deputy prime minister is saying the curfew is not helping. turkey still, despite our issues, is still a democracy. country been subjected to the type of shock turkey has been addicted to, you would have a lot more draconian stuff. >> thousands have been detained

since the coup. inmates with makeshift weapons held their ground at a prison in brazil were 26 were recently killed. tensions remain high after inmates from rival gains -- gangs fought in the yard. authorities have not yet regained control. mexican drug lord what keen el chapo guzman was taken away to a maximum facility that has held some of the world's most dangerous terrorist and mobsters. global news 24 hours a day powered by more than 2600 journalists and analysts in more than 120 countries. this is bloomberg. ♪ caroline: this is bloomberg technology. i am caroline hyde. a big day here in the united states as donald trump takes the reins of the united states.

spoke abouth, he making america his tea party. let's bring in our chief bureau correspondent. harness technology of tomorrow is what he promised the tech sector, but what can we beg going forward? >> he is facing increasing pressure to do something about cyber security, facing pressure not only from democrats, but also from republicans within his own party as a result of russia's meddling in the u.s. election. there is even more growing pressure for investigations living congress. the second thing, and this is perhaps where we don't know what he will do, is it that he has a valid to reshape the infrastructure of government , thes, including the irs better the technology to bring it up to speed with the modern

times. caroline: a few tech issues at the heart of that. what about come monday, hitting the ground running, you expect that to be enough? >> with regards to technology we're going to have to wait and see. over the next couple of days, i going to bee we are hearing a lot about how republicans will get rid of key portions of the affordable care taxor obamacare as well as reform and rolling back regulatory regime structures from everything from the environment to dodd-frank. with regards to the environment of technology, so far there has not been much attention on that. i do anticipate more calls for cyber security on monday to coincide with the senate confirming rex tillerson as secretary of state. caroline: i know you'll be on the ground for us. thank you and a good weekend.

it is a new era for the tech industry. to a gadfly colonists about the biggest challenges facing the sector. >> i think there are corporate leaders from tech and beyond optimistic about the possibility of less regulation that all global business leaders like. caroline: when you are speaking to these leaders, are they speaking of any concerns or is it optimism of bringing money home? >> there are uncertainties of the trump administration, a popular this -- a populist message and a pro-business reality. a low regulation environment and the things that concerns the

tech community, antitrust, we are looking at the head of the .oj antitrust division the chairman of the sec is anti-net neutrality. we may be going into an environment where the telecoms will be confining and reaping the benefits. caroline: we talk about the tech giant that populate the most viable companies, but we know this goes into other pockets like boston and new york and the start of community. >> i think that is a big question. net neutrality issue is a huge one. especially for companies that are coming up to the service. if you are an online video startup right now, i would be concerned that if the sec rolled back in net neutrality rules, you'll have less access to consumers without paying up for

those fast lanes to people's phones and computers. that is a big issue. power is another one we solve this revolving door between the white house and the startup community going back and forth. it is hard to imagine that happening in a trump administration. the startup community is fueled by energy from immigration and immigrants. they start the majority of the companies in silicon valley, it's remarkable, and obviously immigration is a policy changed under the trump administration. caroline: brad, you have a book coming out and the first passage is about how the founders of uber sets at the obama in digression -- obama inauguration in 2008. >> i don't think entrepreneurs

exist or thrive based on the policy of the federal government. obama did embrace entrepreneurship. no clinton is that the founders of -- no clinton -- no coincidence that the founders of and b and uber were in that crowd. it seems like the federal government will be less of a sponsor and there will be more challenges with things like immigration. nothing can stop silicon valley at this point. caroline: that was my conversation with brad stone. allen is still with us. ,ou served on councils commissions, under clinton, bush, obama, does politics invest your investment decisions? >> i don't think it has any

impact whatsoever. we all are very optimistic and very positive looking about the outlook and are involved with exciting new technologies and exciting new young people and i don't think there is any start up that i have come across or have not that is focused at all on the grand political scheme. they are focused on the of the concept and ideas they have and implementing that. and i don't think of that a change in the tax laws have any impact. and erroraying taxes at early stages. stages.re at early if the president does something to dampen that energy and enthusiasm, but it is pretty hard though.

we talked about the autonomous vehicle and i was with one of the mayors of the major cities and we were talking about out five or 10 years where they are going to have a second layer of the highways which will be dreamlike vehicles like vehicles where we will have a double layer of people commuting, the bottom layer autonomous vehicles and the top will be airborne autonomous vehicles. i think that robotics is all over the place. the major thing is ai and machine learning. that is affecting every industry and it is at the same time reducing the need for people. activitiestomated

that have been done for -- a by individuals for time immemorial will be replaced by machines. it is an inexorable trend that no one can stop. caroline: something the new president will have to tackle. thank you so much for all your time today. up next, powerful analysis of what the truck era will mean for technology. we will discuss the new president's immigration policies. this is bloomberg. ♪

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the president's choice to lead technology commission. pai could take over the sec with a 2-1 republican majority. theme thiswith our hour on how the tech sector will be impacted by president trump. let's talk about immigration, one of his most controversial points during the campaign. thee policies may impact of highly specialized workpieces that allow many in silicon valley to operate. you have investments across 60 countries and you have been helping startups in the thousands, is immigration something that is worrying? we are always trying to make immigration easier for people. peoplek the flow of

across borders is positive for business and innovation. the majority of companies in silicon valley have been started by immigrants or the children of immigrants. the entire bay area is full of people from other places that started technology companies here and work for technology companies here. visasne: will we see being supported? if that something you are talking to washington about? >> we have done a lot of talking to washington about this issue. 2010, we went to d.c. to try to get the startup visa program started. we did a lot of work and got support from both the left and right out of the aisles, but we can never get the conference is -- comprehensive immigration policy across the table. you as an investor

when you are looking at all these companies you are investing in, you start to look outside america even more so than you are now in terms of what is happening with political uncertainty? when we started investing globally it was because of the opportunities around the world. there was a lot of volatility and we thought if we diversify across countries, we will be less vulnerable to political instability. little did we know that might be happening here at home in the u.s. we started in places like turkey and thailand and are strong believers in the market opportunities there. caroline: despite political instability? >> that political instability is viewedtreme wind being from a far. i think there are a lot of positive forces that entrepreneurs can have around the world. caroline: is there a particular

thrive.t could cyber security is a real focus. are these investment opportunities in the current circumstance? businesses are coming at the same place the threats are coming from. lots of smart people in russia and asia and we are always happy to invest in those people, but there is actually going to be more attention in cyber security. there already was anyway. if you look at firms like ofantir, they are doing lots investigation for government agencies. a lot of things we do are basic, everyday services, e-commerce, marketplaces, is as productivity tools. those are growing all over the world.

caroline: are startups based in the u.s. going to have a slightly harder pr exercise to draw talent to the united states? >> as much as i am not a big fan the incomingings administration represents, i still think most of the policies will be aligned with positive business outcomes. sanenk hopefully some guidance, even if it comes in the form of younger folks in will givetrump's camp him good advice about how innovation and technology is helpful for job creation. caroline: creation. caroline: when you look at the course of the next four years, are you saying go for gold, go for ipo's. remain individual?

or are you expecting the m and a to be more active because of the regulatory changes? >> we have already seen a lot of m and a activity. last year, m and a activity was close to $50 billion and the ipo market was close to $10 billion. we are still going to see the majority of activity coming from m and a activity. both m and a -- and market activity will grow administration, some of that from listening regulatory policies and tax policies. caroline: dave mcclure, founder of 500 stock. samsung said it found out what caused it note 7 smartphone to overheat and catch fire. that theill reveal

problem was caused by irregular shaped batteries made by affiliate. companyll cost of the an estimated $6 billion. coming up, a bloomberg exclusive on snap. metrics.ils on snap this is bloomberg. ♪

--oline: president-drop used his trump has personal handle to tweet after taking the oath of office. arefirst tweet, we transferring power from washington dc and giving it back to you, the american people. #inaugurationday.

obama's tweets now live potus44. new handle, exchanged his samsung alvey for a new encrypted device with a private number. finally, let's get to a story sot on politics but on snap' upcoming merger. it of its ipo, the company wants --convince investors that is that it is worth upward of $20 billion. bloomberg technology sarah frier joins us now on our newsroom and

just how important, what are the figures we are getting in terms of the addiction to this app? >> these were numbers given to the bank that was underwriting snap's ipo. 20 billion is at number we are hearing for the valuation. what we can glean from this is about making cares sure that these investors understand that if users are so in mashed -- invested in using basisp on a day-to-day that it is integrated in parts of their lives. they are daily active users that are snapping and saving things to memory and chatting on the app. it is something that sets them apart from facebook and twitter. caroline: they were all about

monthly active users and asked nation outside of the united dates, not really about how much is used every single day. >> snapchat is not trying to do this rates to more and more monthly active users -- this monthlymore and more active users, but they are trying to synthesize the more developed market that has more proliferation of smartphones where they can make a lot more money. thatare using things people will actually interact with. one of the things they are talking about is geofilters. those can be sponsored. we have talked about other methods like lenses on people's that are sponsored. it is a lot more about involving people in the daily app. caroline: what is interesting is the court case is ongoing with a

snap ex-employee about numbers. how much of these numbers need to be proved by executives to support the 25 billion? >> is going to be a very high to convince people that they have what it takes to justify this very high violation and certainly these if the system wrought about by that lawsuit although snapchat has flatly denied it will be part of the equation. caroline: that does it for this edition of "bloomberg technology ." , all episodesber are life streaming on twitter.

♪ yousef: welcome to the best of bloomberg markets: middle east. the dollar sling dominated market sentiment as donald trump takes over as the 45th president of the united states. the greenback made a comeback with talk of another fed rate hike overshadowing the optimism of trump's spending plan. meanwhile, oil prices made gains . saudi arabia promises to reduce the overall tax rate paid by its national oil company