shery: it is 1 p.m. in hong kong. i have an update on the top stories. pulling the u.s. from the transpacific partnership and donald trump says he will renegotiate the deal with canada and mexico at an appropriate time. held talks with japan, new zealand and singapore. steve mnuchin says he will work with the president to fix trade ties with china and promises to target unfair tactics and engage the damage of fx damage. he warned an excessively strong dollar could hurt the u.s. economy in the short term.

samsung has announced it will buy back nearly $8 billion in shares. fourth quarter profit doubled to nearly $6 billion largely due to rising prices for memory chips and tv screens. samsung was not badly burned by the note 7 fiasco. powered by more than 2600 journalists and analysts, you are watching bloomberg. let's get a check of the markets. live trading after the u.s. pulled out of the tpp. the hang seng and shanghai composite are firmly positive. we are seeing the equity markets pinch fromeling a the stronger dollar. ♪

caroline: this is bloomberg technology. coming up, tpp gets the ax. why trump is dropping america's bilateral trade deal and what it means for tech companies. yahoo's fourth quarter revelations, and the verizon deal is still in play. the sleepless side of the uber side hustle. it is proving costly for some workers. first to our lead, president trump begins his first week in office and is taking swift action on trade. he signed executive order putting the u.s. out of the transpacific partnership. a 12 country deal that sought to liberalize trade between the u.s. and the pacific rim, including japan and singapore. trump's secretary outlined the reasons. >> i think this president pulling out of the agreement is not just about this agreement. it is symbolic, both here in

america and around the world, of a new era of trade policy, one that will put american workers first and foremost, and assures the rest of the world but the way we negotiate bilateral agreements will make sure we get something out of these deals. the rest of the world but the caroline: steven mnuchin says he would work with president trump to study the trade relationship with china and assess damage from other, quote, unfair tactics. alex wayne has been covering this story and joins me now. alex, we know the pledge has been to unwind the trade deals and this might not be the last. alex: the president accomplishes one of his campaign promises. he said he would end our participation in the tpp and decided he's a paper this morning double do it. it will not be the last one. soon to come is nafta. the press secretary reiterated, he is not a fan of the deal. we expect him to give notice to

canada and mexico soon that he intends to renegotiate nafta. caroline: the proposed secretary said he would look into the relationships. how is the rest of the world bracing themselves? alex: these two moves, nafta and tpp, were well telegraphed. i don't think anybody around the world is surprised. countries like vietnam and singapore were disappointed and hoping trump might reconsider, but i don't think they should be surprised. the reaction on capitol hill was interesting. the first statement in my inbox hoping trump might reconsider, but i don't think they should be trump. came from republican senator john mccain, who just ripped he is a free-trade proponent and said this is a mistake and will cost us our strategic position in the pacific and china will benefit. he is a free-trade proponent and bernie sanders of vermont, who ran for president as a democrat on the same issue, getting us out of tpp, was very

complimentary of the president. there is a weird bipartisan grievance that trumps move here wasn't so bad. caroline: the line is not clear. what might they be anticipating and how are they reacting to the new trade ambassador? alex: the u.s. trade representative has not been confirmed by the senate. he is not in position. we are unclear on how trump will handle trade negotiations. he appointed several people ahead of the trade representative who he said would have major roles in trade, including his commerce secretary wilbur ross, jared kushner's son-in-law -- his son-in-law, and an economic advisor. it is unclear how important the trade representative will be in negotiations. caroline: you talked of the nafta deal. do you have an egg -- any sense

of timing? alex: as a courtesy, he might wait until after his meeting with the mexican president next tuesday, but i don't think we will have to wait long for some kind of notice. today, the press secretary, sean spicer, seemed to be unclear on the mechanism that has to be followed to exit nafta, but he was clear that they will, as he put it, trigger it when they figure out how to do it. caroline: a busy monday. alex wayne, thank you very much. much of the u.s. tech industry supported the tpp, saying it would reduce barriers and foster innovation. what happens going forward? joining us to weigh in is isaac stone fish and david kirkpatrick. starting with you, looking at how this has been undone, it is a big blow but when that was probably anticipated.

isaac: it will increase barriers and reduce innovation. it is a real message to companies and countries in the region that the united states is not going to be that involved, and for really innovative moves and trade deals, you'll have to look to china. caroline: david, do you feel innovation could be hit by this? david: what the tech companies are concerned about is retaining access to the chinese market and gaining access if they don't have access. the tpp was actually a strategic partnership aimed at combating china's influence, which is not the way it has ever been understood are discussed by either trump or bernie sanders, so in a way, by canceling it, we are taking sort of a stone out of our pocket and we could have tossed that it china.

it is a strategically foolish thing to do in one sense. i don't think anything really changes in the short term for the tech companies, because this pact was not enforced yet. for the time being, we are still at the status quo. we are talking a lot. caroline: the relationship with china has been frustrating for many tech giants who have been unable to access the market. isaac: many in china saw the tpp as a way for america to encircle china. 12 countries, 11 besides the u.s., a lot of them were countries near the border of china and it was a way of showing to china, the united states would have a major presence in asia. the chinese don't want that. if we wanted to negotiate with the chinese on issues of market

access, one of the things we would be able to have done in the past is say, we can slow down the tpp if you are more welcoming to our companies, especially tech companies. we just lost that bargaining chip. caroline: jack ma tried to push back concerns of a trade war, saying that would be a disaster. the risk is there. i was looking on the terminal, and texas instruments gets 45% of its revenue from china. there are big stakes by tech companies that have access. david: all major tech companies are profoundly global and the vast majority of their revenue is outside the u.s. that is generally true for software companies, as well. it -- the thing they are most worried about when it comes to china is that we put in some big barriers against chinese stuff, and they retaliate against us and a company like apple, where china is their number one market, really has a lot to

lose. the complexity is bigger than trump seems to appreciate. there isn't really a national origin for most tech products. they are the product of a complex global supply chain that involves things shipping from the u.s. to china, back to the u.s., and vice versa. to think of it in some bluff i terms, which unfortunately is the way it is generally discussed, is not going to advance the ball. caroline: there is no deal with some of these countries that were part of the 12 country pact. where do we go in terms of southeast asia and the u.s.? isaac: we don't go anywhere. china takes up the momentum that we have given up, and they sign regional trade agreements, they push forward one belt, one road, they have more multilateral and bilateral relations with these countries and we stay behind protecting dozens or hundreds or thousands of steelworker jobs. caroline: it sounds like you are pretty negative.

is there an upside? isaac: yes? trump did something he said he was going to do. he shows that he sometimes follows through on what he says. caroline: efficiency might be there, but david, is there any element that you can see going forward that would make this a more positive story? what needs to happen for you to have optimism? david: i don't think the tpp is that big of a deal for tech companies. without it, i do not think we are in a disaster scenario. i am still optimistic that in some ways, trumps rhetoric could be an effective way of modulating some of the behavior of countries that we have had objections to, and china specifically. you could argue that even xi's

speech and davos was positive. trump is sly like a fox. there may be positives that come out of jawboning on this topic and making companies more cautious when they take anti-american trade actions, which many of them do. china has done that. we have the relations and they will probably stay pretty good. caroline: isaac, steve -- thank you very much for your time. still to come, yahoo! says activity was barely heard when they disclosed a second major hack attack. an update on the state of the deal with verizon. all episodes of "bloomberg technology" are live streaming on twitter. this is bloomberg. ♪

caroline: yahoo! posted fourth-quarter adjusted earnings per share that beat analyst estimates. yahoo! says revenue and acquisition cost beat estimates. more important than the numbers is the acquisition by verizon. despite disclosing the data breaches, the deal is still on but pushed back until the second quarter. david is still with us, along with cory johnson, who has been looking through the report and

at last, they crawl their way to dismantling themselves. >> i think the estimates are important. i think they are overestimated, but especially when it comes to this company right here, we see a company trying to bail itself out of a situation for the better part of a decade. we saw declining revenues of about 4% on a year-over-year basis, better than in previous quarters when there were double-digit declines. they will take what they can get. but can they find a business underneath all the garbage that is yahoo! that actually is a profitable business? caroline: halfway through 2014, the last time we saw revenue growth. david, you still have a yahoo! email address. give us a sense of -- david: i'm not ashamed of it. caroline: you weren't worried

when the hack attacks happened, and not many people left the business, left yahoo!, even when the hack attacks were made public. david: those of us who have yahoo! emails recognize they have instituted security measures in recent years, probably because this was going on in the background even before we knew about it. they often required two methods of identification. when the hack attacks happened, they were constantly forcing me to get a text on my phone in order to continue using yahoo! and when i shift from one platform to another, they make me do that. it is reassuring. it seems to me like they have a good handle on security, from my standpoint. i don't experience that with google. their security may be good, too, but i actually think overall, yahoo! is sort of mildly turning around, mildly. just before it is going into verizon. i continue to be somebody who

doesn't think that marissa mayer made a disaster of it. i think it was an incredibly difficult situation to come into, and they built some new mobile businesses, and in fact, their revenue has been looking better than it was. that is impressive to some degree. cory: they have this weird one page, they didn't do the traditional conference call with analysts. they aren't releasing financials for many categories that are important. but they tell us things in a one-page press release, saying that yahoo! quarter for gap revenue for their mail business was up 30%. gap revenue for a thing that you don't release gap revenue numbers for isn't gap revenue. saying it is up 31%, if that's true, would be impressive for yahoo! mail. caroline: i do get two-way security for my google account, as well. but david, it is interesting we are seeing the fcc weighing in

and wanting to look at the yahoo! breaches. if we did see someone having to pay up or be fine for what happened, who would it be? verizon or what's left of yahoo! now? david: verizon would ultimately pay a fine if there was one. one cannot say that it was, i can't feel anything but sadness and some fear, at the scale of the attacks yahoo! clearly suffered. some of them, several years ago. we are hearing about them recently. these were gargantuan, disastrous, embarrassing attacks that should not have happened. will they have a consequence on the deal? i doubt it. will they end up being verizon's problem later?

probably. could it result in verizon negotiating a lower price? probably. we don't know. that wouldn't surprise me. caroline: they pushed back the closing date, does that mean there could be negotiations? cory: we know they are trying to figure up more about the deal. the investigation might be a part of that. companies have to disclose this information because it can damage the value of what people are buying and what they think they are investing in. that happened with verizon. they aren't any stronger because of the attacks, or better than what verizon thought it was buying. caroline: fabulous analysis, thank you. digging into the numbers and more intrigue as the deal goes on. cory johnson and david tell patrick, we will check back in with you both throw throughout the hour.

a former google executive was hired as a pitchman to former audiences. he wants to return to the u.s. we spoke to him back in august. >> we don't have any near-term i peel plans. the company doesn't presently need an injection of capital, so we are going to stay private for a while, stay focused, continue to put a lot of attention into china, india, indonesia, other markets. no need for new capital. caroline: sprint is streaming in with the tidal music service. ♪

caroline: headlines on bloomberg technology, ebay falling over a percent on the session over concerns that its auto business will see more competition.

the new york post reported that amazon signed their party contracts are some of the world biggest auto parts suppliers to expand its amazon vehicles unit. this could turn into a big deal for ebay. automotive products accounted for 11% of their merchandise volume in 2013. microsoft is facing its first hurdle in a legal battle with the u.s. government over the practice of secretly accessing government data stored in a cloud, including the males. the company is suing, defending the right to disclose when the government requests data on users. the issue is whether microsoft is allowed to defend its customers' constitutional rights. the issue is a huge one. apple, google, and amazon talked about this. a republican has been named chairman of the federal communications commission. he took to twitter to share the

news, writing, "i was informed by @potus that i will be the chairman of the fcc. tom wheeler stepped down friday as the new administration took office. he opposes net neutrality. attracting takeover interests, according to people with knowledge. the sale could value the network at $1.3 billion. this tax the are considering final bids. shares had a 70% jump in december, when it was reported the company exploring a sale. sprint acquired a 33% stake in tidal. they want to have exclusive content. shares rose 2.8% on monday. the sprint ceo will join the

tidal board and jay-z will continue to run the business. a disturbance in the force at disney. it can be described in one word, excitement after the announcement of the next installment in the star wars saga. episode eight will be titled "the last jedi." it will hit u.s. theaters on december 17. coming up, more on president trump's meetings with business leaders. how tech companies are aligning themselves with the administration. if you like bloomberg news, check us out on the radio.

you can listen on the bloomberg radio app and sirius xm in the united states. ♪ ♪

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only xfinity gives you more to stream to any screen. download the xfinity tv app today. shery: it is 1:30 p.m. in hong kong. i have an update on the top stories. the u.k.'s brexit plan will be clear later tuesday when the supreme court rules on whether they can start without parliamentary approval. if the decision goes against the government, theresa may plans to rush legislation to launch article 50 by march. most members opposed brexit last year. toshiba shares are falling to discuss restructuring. the broadcaster says they may announce measures as early as this week. toshiba is considering forming a

holding company that would oversee business interests. thai airways has performed an inquiry. it claims the company paid millions of dollars to win contracts, including paying airline employees and government officials. rolls-royce is to pay $800 million to the u.k., u.s. and brazil to settle bribery and corruption claims. ling is shopping again. amc entertainment is buying nordic cinema for over $900 million. the all-cash deal pushes the world's largest theater chain into the european market. amc will control 1000 theaters and 11,000 screens in 15 countries. global news 24 hours a day powered by more than 2600 journalists and analysts in more 120 countries. you are watching bloomberg. let's get a check of the markets

in the asia-pacific. here's juliette. juliette: things are looking brighter in the afternoon than they were earlier when we were not seeing much at all. australia closed higher by 7/10 of 1%. reversing that weakness we saw during monday's assessing -- session. on a strong profit outlook. the nikkei being weighed down even the yen is not going too much against thesession. on dollar, but the dollar is broadly weaker, holding at its weakest level since december. upside comingmore through for some of those japanese export stocks. shanghai looking positive, up 2/10 of 1% after the lunch break. small stocks in china coming under significant pressure, extending the january slump on a liquidity squeeze. hong kong looking bullish with energy players. you are mainly seeing positive strength, especially the dollar

is weaker. emerging-market currencies higher supporting malaysia. shery: live from london at the top of the hour. this is bloomberg. ♪ caroline: this "is bloomberg technology." i am caroline hyde. back to the top story. president trump's agenda. event with businesscaroline: thg technology." i am caroline hyde. back to the top story. leaders showing that job creation is a top priority. tech companies around the world companies are eager to align with the administration. foxconn and ibm. foxconn may build a u.s. of $7y for upwards billion. it could create tens of thousands of jobs. then, ibm.

it pledged to hire 25,000. they are cutting jobs. it pledged to hire 25,000.back t david kirkpatrick. fly joining us is our gad columnist and with me on set is editor at large is cory johnson. let's go to ibm first. being accused of hypocrisy here. ts are notrnative fac limited to the white house press meeting, apparently. president trump talking about adding jobs, by the same time, the company has been cutting jobs, and cutting them aggressively. if you look at the number of employees for the company, it looks really good with the company saying they would be hiring more in the u.s.

nonetheless, what we see ibm doing is cutting. the number of employees have been declining, at the same time, the revenue has been declining. in the bloomberg terminal, you see the list of all the job cuts. scroll through there. the list goes on and on. what has happened to the stock prices, you can see, coming down over time. that is one other way to look and visualize the cuts. and, lowering the number of shares out there. caroline: let's take it out to foxconn. you have put out a great piece on bloomberg gadfly.

you are not buying all the pr around what appears to be a deal coming from foxconn. >> what of the big things that we need to understand is foxconn chairman on the weekend pointed out that it is a wish, not a promise. that is a really important caveat from the billionaire chairman. he has made governments around the world believe that they may, in the future, invest in their countries. often it is the government and the officials in the government getting ahead of themselves. terry war has been really patient and aggressive going to countries around the world, saying, you have to offer me an incentive. he was clear saying he would be looking at state governments in the u.s., looking for the best deal he could get. that means tax incentives, cheap land, alleges the, water. all of those that cost money.

if you can get the deal, he will consider. if you can get the deal, he will caroline: david, weigh in here and give us your view on all the pr, and whether the ceos are learning a new way to address job hirings and firings. >> we are living in a world where appearances seem to mean more now than ever. in terms of foxconn building in the u.s., it would be politically advantageous for apple if they could point to a considerable amount of their own sourcing coming from the u.s. from a very prominent plants. these are options, basically, where companies are bidding -- asking people to bid for their business and from foxconn's point of view, it only helps them to have these reports out there. a plant like this is so

automated today, increasingly, companies don't care where it is. in the past, it had to be in china because it was a labor intensive, but increasingly, it will not be labor-intensive. i think it really is a matter of where they get the incentives. it is not about labor costs anymore because automation is what determines the success of these plants. cory: one of the reason these things were made in china with because the labor was so cheap. it did not make sense for it to go to a machine. worldwide, the decline of the number of manufacturing jobs is something that even alternative facts cannot rescue us from, but is an important issue. this story cannot be divorced from the politics.

caroline: they are not fighting that trade or various from other countries. they are fighting robots. tim, dig into the facts of this foxconn manufacturing for us. it set off a rustle of rumors that apple is getting into tvs. tim: yes. at the end of the day, they are talking about a massive factory that would create huge pieces of glass. then, they get divided up into iphone screen, or television screens, or whatever. we are looking at 800 million units per year units of screens. for television screens, the number of units is less. we're talking about labor costs in china and how they are going

up, but the other part is the supply chain. in china, you can walk across the road and there is someone with a component. you do not have that supply chain in the u.s. if we create these in the u.s., who will assemble it? will you ship it back to china? that is not easy for screens. they are fragile. the idea of creating a whole lot of glass panels here in the u.s. is only one part of the puzzle. you have to think about the rest of the puzzle, and i think the math does not add out. is only one part of the puzzle. caroline: david, you anticipate more tax incentives leading to more hiring? david: if i could talk briefly about the screen issue, i think it is possible that if the products are evolving, the caroline: david, you anticipate screen is becoming a higher

percentage of the actual device. we heard that a next generation iphone could just be a piece of glass type of thing. it could be because of the nature of the product evolution, it would be possible to streamline the production. these would be more like a semi conductor on a piece of glass. i would not rule it out that they make it work doing it here. again, this would be great for apple in the era of trump, if they can point to one of their suppliers doing such a big project here. caroline: thank you for your time. david kirkpatrick is staying with us for the hour. and, cory johnson is staying with me because i want to get a take on the next story. a computer program forced united airlines to ground all flights. they said it was technology that sends text messages to pilots in the cockpit.

back in october, thousands of united passengers were delayed worldwide after a computer glitch. just last week, air canada experienced glitches. cory, you have been watching this story. is this a hack attack? just a glitch and malfunction? cory: we don't know what happened yet. this is really important for united. important for the airline industry. but, important for every company in the world. if united can go down, what is supposed to be one of the most technologically advanced companies in the world, if they can go down for two hours, it can happen to us. it is a worry for industry. we will find out.

senator richard blumenthal out of connecticut and senator markey from massachusetts say they want answers. what happened and why it happens. they say they are arguing from the behalf of the consumer. all business leaders want to know, can this happen to my company. caroline: not just cyber security, but complexity of these systems as well. cory johnson, editor at large. coming up, a peek into the lives of uber drivers and the drastic measures that they take to stay afloat. this is bloomberg. ♪

caroline: uber is asking the courts to help serve a message to its drivers.

the first ruling denying a driver from being treated as an employee. last year, it was declared that the drivers can declare this through arbitration. incomes among the multi-front war in california as it defends its business model. is ride hailing giant it becoming the ultimate site also but more and more drivers are relying on it as their main source of income. drivers take drastic measures to source of income. stay afloat. eric, this is a great story, and you followed individual drivers. they are sleeping in their cars. eric: one economist compared this to a type of immigration. a driver living in sacramento,

driving into san francisco, sleeping in his car while he is in san francisco to save money. caroline: quiet drastic steps. i interestingly understand that you want upon a time drove a taxi. david: this was 40 years ago. this is the way drivers have been treated. congrats to eric on a great story. i think that employee relations could be uber's achilles heel. if they don't get better at it, their ambitions may not be possible. caroline: employee relations. i can understand. we are not a taxi company, the drivers, it is their responsibility. lyft has been taking a very different tactic, trying to help drivers a little more. eric: after 14 hours, you have to get off the platform. uber, they have declared it the

year of the driver. they are building products to make driver's lives better. caroline: at the end of the day, this is an efficiency issue, but also, a fact of life, very sadly. a driver you spoke to once to move closer to the city. it is not his choice. eric: right. that argument for uber is this is an easy way to get money. even for full-time drivers, it is flexible. i think the drivers with a, we have been doing this years, and the amount of money we are making is going down and down.

we tried to make a career out of it, you were not there for us anymore. the two sides see it different ways. caroline: it is a great story, getting a lot of traction on twitter. you said that perhaps 2017 is the age of responsibility. you think they have to discuss, or is it really their responsibility? david: trump, and other critics of business, populous critics of inequality, and particularly companies like uber have to really think about their public image more than they did before. in the case of uber, such a big employer, despite what they want to call it, they have to improve this. they have a long way to go. caroline: a new marketing head in place. really at peace. i urge you to take a look at it. thank you so much for joining us throughout the hour. coming up, an online pharmacy

looking to shake up the pharmacy business and how drugs are packaged. we visited the headquarters next. this is bloomberg. ♪

caroline: spending on prescription drugs in the u.s. hit a record $425 billion last year. the demand for services is growing as the u.s. population ages. and yet, over 50% of americans fail to take their prescriptions correctly. we visited the pill pack facility in somerville, massachusetts. >> pill pack is taking on the neighborhood pharmacy. the online pharmacy has a different approach. >> instead of having seven or eight different bottles, you get

one of these boxes. >> that box is delivered to customers once a week, divided in packages as to how they are to be taken. the ceo is focused on the over 30 million americans that take a prescription per day. he launched pill pack in 2014. now with $120 million in funding. >> 200 people year ago to 600 today. >> pill pack has a new headquarters in somerville, massachusetts and recently expanded to a 50,000 square foot facility in new hampshire. here, robots help to sort pills. the majority of the employees handle shipping, sales. how hard would it be for another

player to replicate the model? >> the automation, having been built from scratch -- if they decided they wanted to build an equivalent, they could do it, but it would take a long time. >> they have their work cut out for them if they want to tackle this problem and push cvs and walking off the pedestal -- and walgreens off the pedestal. 90% is going to the retail corner pharmacy. >> just like those competitors, pill pack labels itself an online retail pharmacy, not just a mail order service. >> this is a business definition that there is amongst pharmacies. we do not fit in any of the existing buckets well.

>> that was at the center of the public contract. most prescriptions in the u.s. are dealt with by cvs, and others. >> they are a lot lower. my guess is that pill pack wants to get the dispensing fees at a higher rate than the traditional mail order rate out there. >> more than one third of pill pack sales are at risk. >> certainly the negotiation was around rates. the consumers ultimately have the ability to choose what pharmacy they want to use. that is why we fought the battle. >> another battle is to help patients take drugs as they are told.

it costs the u.s. $300 billion per year. >> we do not think the secret of pill pack is delivery. if you talk to consumers, it is not the core problem that think it is to >> pill pack's goal is to help make taking pills easy. caroline: that was doni bloomfield. that does it for this edition of "bloomberg technology." tech earnings continue for tuesday. alibaba and verizon all report results. we will bring you the highlights and all the analysis you need. check it out, bloomberg tech tv 5:00 in new york, 2:00 p.m. in sanford's go. that is all for now. this is bloomberg. ♪

>> pressure on the greenback treasury secretary. he calls out an excessively strong dollar. manus: revamping trade. president trump signs another executive order, this time with .rawing the u.s. from ttp he threatens u.s. businesses with a major attacks. the u.k.'s acclaim court will deliver its decision -- the u.k. supreme court will deliver its decision on whether the prime minister can trigger article 50.