russia's federal security service. white house press secretary sean spicer said it is fairly common practice for the treasury to consider for economic sanctions. some republicans in congress are changing the slogan on the affordable care act instead of bowing to repeal replace obamacare, they're discussing how they can repair it. captures with a large majority of the american people want. south korea posts per minister and chief national security office her. the countries have plans to deploy in south korea. will leave eu's's custom block to gain control over its own tariffs and trade deal. that is according to david davis.

outside the need today, among other things, aiming for the biggest possible trade in financial services in the you. google news toy four hours a day powered by more than 2600 journalists and analysts in more than 120 countries. this is bloomberg. oliver: live from bloomberg's world news headquarters in new york, i am oliver renick. joe: i'm joe weisenthal. consumer safety stocks. joe: the question is what did you miss: oliver: details emerging about the treasury department saying it would allow business with russia despite sanctions. tracking the administration's

rhetoric, and in finance, shares tumbling as earnings disappointed investors. on the hear from the cfo bank's plan to turn around the business. amazon reporting the latest on after the bell. will increase spending and hold back profits. we will bring you those numbers. joe: let's look at where the major averages stand. abigail doolittle is standing by. abigail: you can see we are looking at small gains for the s&p 500, reflective of the type of trading, small gains and losses. it is worth noting the dow and more in theare down last days.

a five-day chart down five of the last five days. the first time that happened since last april and down the since the beginning of august. a bearish streak, as we are about halfway through the earnings season. we have so far seen 51% of the s&p 500 companies report, of those companies, about 50% have , 75% revenue estimates have been earnings estimates. have positive fundamentals, but yet again, looking at more bearish action. the biggest highlight after the close, amazon will be reporting and investors are looking at roughly 34.7 billion dollars.

the issue will be margins. investmentn an spree. it will be one thing investors will be watching for. up about 26% year to date on the expectation the company will turn a profit for the first time since toy 15. it will be interesting to see if it will deliver. seeill be interesting to what they talk about four trends in the year ahead. 2%ally, the stock down about , saying they believe the postelection woes, -- it will be interesting to see how these companies look.

>> we will follow up on those earnings. let's talk about politics and business. nestle announced it will leave california and relocate headquarters to virginia. they will create nearly 750 jobs in the county. president trump pounds the drama and bring jobs back to america, the relation between state legislators, and the president, will get harder to navigate. opportunities? let's ask the virginia governor, a former chairman of the democratic national committee who joins us now. let's start with the nestle news. >> this is something we have worked on for about a year. fors a great success

virginia. a very busy -- business friendly state. we want to be closer to the customers. i was out there several weeks ago and you put all of it i had to pickaid, one thing, it is your education system. for gl's has one of the best in the country. every parent wants their child to have a great education. it is pro-business, low taxes, the support on is coast for people she -- it is a great move for us, 750 jobs that move to arlington virginia. one recipient.er

largest naval base in the world. it allows us to go into other sectors. thatving grown up through education system, want to hear more about the numbers. growth is is of going to do? will this drive a certain amount of growth? >> one i became governor, unemployment was 5.4%. it was the steepest drop at the with created 100 new jobs, 14.4 billion of new capital. i am probably the most traveled governor of america. about theconcerned

president's new executive order. and 95% global economy of the world's customers live outside of america. i go to all these places to sell goods and bring these companies to virginia. is very strong. the initial unemployment rate is at a 40 year low. joe: how will states change their policies under new administration? are there other opportunities for state governors to work with this administration? >> i want to work with the new president. we want to work with the president's infrastructure.

we want to work with the president as it relates to what we're doing with health care. majority ofthe vast governors, you cannot just repeal obamacare because millions of people will be lost and virginia will lose $200 million on the next budget automatically it is a serious issue for us. a replacement and i am concerned about the federal hiring freeze. military assets richard haass, with an aging federal workforce, you are not to work young people with the federal government with a freeze. to build roads and bridges to gather. we are on the front line and he cannot do like he did with the executive order on immigration. two companies have canceled or people do not want to come to america and they are scared to.

a land of immigrants and he has got to reverse the order. it will be crippling for national security and the economy. was this a preliminary thing? what happened there? >> one was advanced manufacturing and the other was an agricultural company. people do not want to come to america. they do not know if they can get in or come back out. scared. we value our system, we do vetting. but let's be honest. under president obama for eight years, we had extensive vetting third known was coming into the country to do harm to the nation. let's be clear. we are sending a message to people around the club that america is no longer open and welcoming. that is not the values that the country was built upon.

it put a target on the men and women and youth -- in uniform and americans who traveled abroad. is using this as a recruitment tool. i'm concerned economically. i did $32.5 billion of the export trade in virginia. this is important to us. joe: a lot of people express -- do you think there is an element of disingenuousness, that they are the wrong -- on the wrong end of the president trump's tweet storms? >> i wish i had the answer to the question. message to president trump, and i have known him for 20 years and had dinner with him. he wrote a check for my first campaign for governor, i would tell the press -- the president,

by clearly cannot do that putting up walls. you cannot put up a wall around the united states of america. a nation built by immigrants and we need to foster the value system. that is how i have grown the virginia economy. hard.ia got hit cyber security and human genome sequencing. we are helping us build that here in virginia. build himent should -- build new businesses and quick -- quit picking a fight with mexico and australia. these are our allies. >> you have the benefits of globalization and you have virginia born and bred. what do you take away from the election? what did you learn from the

election? state that voted red and you are a democratic governor pier 1 is your take away? >> this is 1607, the three ships came from england. they did not go massachusetts or new york. they came here to virginia. we are the beacon of democracy. in yorktown, virginia, we spent -- sent the british out of here. we will not bring another monarchy back. we have a special role. this is america. we have a booming economy. unemployment claims are now down to a 40 year low. i have got to have a president and a white house that will work on us with it. i'm a big trade proponent. the 11 countries we no longer

have an agreement with, more than 60% of my exports worked with ttp countries. china will be and we will be left out. field forfair playing trade and i can bring any business back here in the commonwealth of virginia. we have got to sell our -- our products in the global economy. for joining us. >> come to virginia. it is for lovers. a live shoto to with jeff sessions, after a tumultuous 48 hours after the white house fired the acting attorney general after ordering not to defend an executive order of immigration signed by donald trump. this is bloomberg. ♪

>> shares falling in the u.s. dropped more than expected in hedge funds. early fall after u.s. government initiative. deutsche bank is now considering raising taxes for the stock sale and scrap bonuses. top executives are matt miller, who spoke to ask if he is trying to change the way they get paid. >> there is no intention to reshape the way the bank is being paid. clear we have made it

that 2016 marks a special year. out theally take compensation, there is a group component being paid and the more junior people are not being treated if i from how they were treated in the past. .eople have to compensate >> wall street bankers, a large part of their pantheon of the year on a bonus. means larger profitability for deutsche bank, does it mean a return to big bonuses for bankers? we would target to get back to industry-standard and compensation, that is our objective. 2017, we make sure we would not have to once again report about the loss.

we are optimistic we could achieve that particularly when you compare us with those who europe, weand in have rules in terms of the andtionship, fixed pay variable pay, stricter than what you have in the united states. >> an increasingly global world despite what is happening in the u.s. how do you attract and maintain talent to a german bank as opposed to someone who could easily work in new york in a u.s. bank? >> a lot of people in new york working for deutsche bank. the name suggests we are a german bank. we are a very international bank and we have people from 150 nations working. i almost claim you would find it difficult to find a more diverse

or international bank and then deutsche bank as it relates to attracting talent. every year, we hire between eight and 10,000 people. seen that, despite the fact we have a difficult 2016. diverse employee base, have you had any issues with the current executive order banning travel from certain countries to the u.s.? >> it has not impacted us at this stage. it will be closely monitored. as was said in a press diversity and what that brings to us in terms of quality but also the ability to ensure we can deploy the people and offer them opportunities, it is important and it makes us better as an organization and that applies to almost every company.

but somportant to us, far we have not seen issues arrive from that and we have seen loosening of what was originally proposed. side, the trump effect has been positive for deutsche bank in january and february. the regulation side of the trump era? >> there is always some noise now where people are saying we are getting to deregulation. i would not expect that. depending on stuff for stocks to swing even to more regulation. has madehe president some comments he thinks the regulation got to a point where it is governing the industry in a very good way, and maybe one should not at this stage go much further.

debateding, the entire around what the market calls four. we would hope there would be a resolution of that outcome fairly soon. joe: up next, amazon's fourth-quarter earnings are imminent. we will look at some of the key numbers you need to know. this is bloomberg. ♪

oliver: the prices for tail risk options are rising sharply. a relay to the conversation we had earlier, i do not like this index. this of people interpret as a way to look for a black swan, but it is antithetical to the idea of a black swan. so i don't like it. a big swing down or

off, here is what is happening and here is what was pointed out to me earlier. somewhatup here was interesting even though volatility is still muted in a market measured by the vix, we are looking at people, traders, willing to say, maybe something big will happen and maybe not volatility on a regular basis but it is the highest since june. perhaps in theory something big could potentially happen. it makes sense to some extent. >> you can see why some people would think it. we will get amazon earnings and i wanted to look at this chart of operating incomes from amazon's web service business. back here in 2014, the quarter 49 million in operating income or fast-forward to the last quarter. it hundred $61 million in operating incomes. this thing is a cash firehose.

so much cash, more than the company knows what to do with. that is a reason they are excited. it is spinning out tons of cash. who knows where that could stop? >> you will keep paying up for it as long as there are expectations. and as we have known, there is no real valuation because it is >> exactly price, right. as long as the company is knocking it out of the park growth wise, it is not a problem. >> grow gstaad -- growth stock stupidly well. the market close is next. here are major averages with less than four minutes to the close. dow jones basically going nowhere and the same with the s&p. the nasdaq is up about 12. the case is we see it down about

12 basis points. pairing losses but also your gains, ending flat. this is bloomberg. ♪

♪ oliver: we are moments away from

the closing bell. "what'd you miss?" the s&p 500 erasing losses. but torpedoes bond after the election, showing more signs it is dated. i'm oliver renick. joe: i'm joe weisenthal. if you are on twitter, we want to welcome you to our closing bell coverage every weekday. oliver: we begin with our market minute. stocks, we're looking at what happened across the market, there is fluctuation. we mostly ended flat, there was not much volatility, things are unchanged. we saw a real estate shares doing well. here are the benchmarks. the s&p 500 and dow jones flat, and some weakness in the nasdaq. and look at the sectors, we saw this doing pretty well, offseting the losses. we are looking at movers and companies, and little bit of

movement across the board, but at the end of the day we have big winners in jobs. ralph lauren on the closing, not doing so hot. e-trade financial core doing pretty weak. some of these financial companies are not quite as good as they have been. joe, breaking news. joe: we have engin reporting that one of their trucks and if you reduce the risk of cardiovascular events in some patients with cardiovascular disease with their outcome trial, but this is good news for heart medication and the stock is up 3.2%. is the keys secondary endpoint. good news on the amgen trials. oliver: and the executive and a newesigning,

cfo coming with the earnings with revenue at $187 million, missing the estimates if you look at the adjusted loss for shared. that was three cents. joe: and we have amazon just crossing the wire. i want to redo some of the headlines we are getting. amazon q4, three to seven point $4 billion -- just shy of their estimates. $1.36.s is a solid beat, q1 you never really know the amazon guidance. around 35 point $8 billion, shy of the estimate of 36 billion. you see it down to .4%, so we will see. this is not a huge market reaction. you have it on the bottom line at a dollar 54.

joining us now to talk about amazon, bloomberg intelligence analyst -- what are you looking at? >> is a mixed bag. they beat on the eps, but this is topline revenue, because we know the expense growth will be there for the company and they will continue to invest in their business. they have signaled that continually over the last several quarters. most of what we should look at is the top line story. a little bit lighter into the first quarter guidance, so that is what we're looking at in the stock. joe: right before the close we mentioned the web services being a key thing for the fourth quarter, net sales of $4.4 billion, shy of the estimate of $3.16 billion, so what are we looking at? oliver: this is a company as paul said, that is all about the top line, but you still need to figure out how far they are on the rate and being profitable

and what degree, how profitable they will be? what you need to look at the see the company between the top line and the bottom line? paul: this is a company that deferred profitability for the shareholders and they kept investing in the company bid and 2015 -- company. and 2015 and 2016 they doubt back the growth -- dialed and the growth a little bit. and with the web services, as you said, now they can do a reverse course and they will look at spending again, both domestically and internationally, and in the cloud. and it causes investors to bring those expectations down. joe: the stock is down 3.2% and this is really a minor move for amazon. according to the function on the bloomberg, it is moving at an average of 9%, which is neither up or down afternoon earnings, so they are prone to the big swings after hours.

also, given how big the company 9% is a huge move, but so far not a huge reaction. we will see where it goes. paul: they do provide guidance, that is the good story. the flipside is a provided use ranges of guidance in terms of revenue and operating income, you could drive a truck through the ranges. they recognize that is volatility around the numbers because of the growth of all businesses, but again, this is a long-term story. and the bouquets remains the same -- bull case remains the same, because this is a long-term revenue story given by retail sales from the bricks and mortar to online and most bulls feel good about the investment that the company makes over time. oliver: i want to revisit fir reye, we saw the shares moving and they announced the chairman had resigned, so we

want to keep an eye on this. revenue was below expectations. smaller thans was expected. you can see the shares at 17%. you also have the unit of board changing out. -- they named a new cfo. some questions obviously there and they are looking at a pretty big shift. take a look at amazon, more people know about amazon. paul, you mentioned web services. this has been a big element for a lot of companies that use it, it has been disruptive. what about in terms of contributing to the bottom line? is this something that will be part of the growth story? paul: one of the reasons investors like the amazon web services story, one, the topline growth rate is fantastic and it is a business growing, not just for amazon but for competitors like google and microsoft, so the cloud is a fast-growing area

within tech and amazon has a fantastic position. what is unique for the amazon shareholders is it actually makes money, there is a profit, unless the core e-commerce business, where the company operates on a razor thin margin as they reinvest in the business. the pressng through release, a lot of talk about the entertainment aspect of amazon prime. most people know that you can get all of the free shipping and it gets people addicted, but they are mentioning all the entertainment prime video that is now available in more than 200 countries and they talk about the golden globes nominations, the different videos you can watch. how important is that to the overall strategy, the videos, the music? becomemazon has really one of the major players in hollywood and their programming budget for amazon prime will be around $2 billion this year,

said they are spending as much money on programming as the cable television networks, so it is extraordinary. and the strategy is simply, not that they are a media player, they are there to make the prime minister of service more attractive and that will drive the core business. joe: amazon has turned green, just under 1%, not a huge move. now investors like it more. oliver: we have more companies breaking, taking a look at gopro. we are looking at the estimated revenue, so we are looking at the fourth quarter. they have $540 million in revenue, below the estimated $570 million. and earnings, the fourth quarter, $.29 versus $.22. and in the future, you are looking at expected first-quarter revenues, this is 190-210,ectation of that is below what is expected.

shares are down 10% and it is not helping a company whose stock has been decimated for the past 18 months and they are trading around $11 at the close joe:. joe:amazon is still down. much of atle bit, not new. chipotle fourth-quarter revenue, basically what was expected. and obviously this is a key question, coming down 4.8% as expected. and you can see the stock at 0.5% after hours, so not much of a move. and the company is reaffirming the forecast. not much happening with the store traffic. $.55, so you can see it is in line for chipotle and what was previously expected. the stock is not moving much. oliver: amazon real quick. much as i love

burritos. amazon with tens of millions of new paid members joining, so how much more growth is there in terms of getting people to sign up for amazon prime? are those new services like amazon prime video, how will people keep coming to amazon? paul: they have created a great service in general, given the free shipping and so forth, but the programming is becoming competitive and you think about streaming content, people think about netflix, but amazon is there as well. they are investing in programming and the service and it is becoming a significant player for content and they are signing up tens of millions of subscribers over the years and that is important for the core business. so most people in hollywood expect amazon to be in this for the long haul and they expect investment that they are making in programming for original shows, not just licensing shows, they are aggressive and

competing with netflix and others. joe: will it be a problem for netflix? unlike netflix, amazon is a gigantic other business continues to fund their content and netflix have to take out that. -- debt. is that a problem for them? paul: it is a competitive risk for netflix and they acknowledge it. the advantage for netflix is to market and may are not backing away from amazon at all. joe: paul sweeney, thank you very much for breaking down amazon and we have more earnings , we are looking at visa, 21 -- q1, $.86. that is a solid beat of the estimated $.78 for a visa. billion.ue, $4.5

oliver: i really like the fireeye, shares are down 20% aftermarket trading. again, this is a mid and outlook that is not look very. earnings that were better than expected, but some moves on the executive board with the chairman resign and getting a new cfo. a lot of stuff going on that we will continue to watch with the post earnings and aftermarket. this is bloomberg. ♪

♪ >> on mark crumpton. tagger first word news. is lookingdent trump for extending the north american free trade agreement, which he says was a catastrophe for the country. he made the comments in a pair

of meetings with lawmakers at the harley davidson company. and he has long railed about the country's trade deals, saying they put american workers and companies at a disadvantage. and a senior advisor to iran says threats from the donald trump administration will not be affected. this after the president said iran is on notice following the latest missile test. national security advisor flynn says lamont was in defiance of insecurity council resolution. that's a security council -- a security council resolution. homeland security secretary john kelly says that construction on the border wall between the u.s. and mexico will begin in a few months and could take up to two years. kelly says fox news, he tells fox news the administration has the authority to commence construction and is looking at funding.

ideally they would like to partner with mexico on the project, because he believes "it would be mutually beneficial for the relationship." and a report that president trump told the president of mexico that he would send u.s. troops there to deal with bad hombres. the president told mexico's president in a phone call that he was not going to -- stop them. the call took place after the mexican president canceled his trip to washington, but the white house characterizes the comments as lighthearted. global news 24 hours a day powered by more than 2600 journalists and analysts in more than 120 countries. i'm mark crumpton. this is bloomberg. oliver: thank you. back to breaking news. we are looking at fireeye, shares moving the most in the aftermarket trading. down 18%, serious stuff going on

as they fall to $11. the executive chairman has resigned and they have a new cfo today. revenue missing expectations and earnings are doing better, but topline growth is not something investors want to be part of right now. joe: amazon reporting after hours, the stock down a little bit after the report. amazon has much bigger swings after their earnings. earnings, $1.54, but net sales were shy of expectations, not usually the pattern you expect with amazon. a little bit of a selloff. and the cloud business is slightly behind expectations. oliver: gopro really quick, because they have a poor outlook for revenue in the fourth quarter, in terms of the -- first quarter, in terms of preliminary results. they are down 10%.

compared to $210 million, said they are missing around $60 million, not a great expedition for the outlook. the fourth quarter, things were ing on an estimate of 570. earnings per share were a bit higher. at the end of the day, the company, we are looking at the expectations of a company that was part. -- hurt. joe: chipotle dipping lower. they are down 3% and results $.55, within and the preliminary. the revenue around $1.03 billion, so a little bit of a disappointment for investors. stop is down 3%. "what'd you miss?" president donald trump sent a team -- says a team is working on getting trade in order. he went as far as calling nafta

a catastrophe and mexico's economic conditions have worsened since the election of trump. joining us now is juan carlos, the director of research at -- thank you very much. in your view, where the things stand with regard to nafta? can the two sides come up with a mutually beneficial deal? juan: it is complicated. we have uncertainty on both sides. fisher, we have one country that has a very strong position, the u.s., in order to negotiate with mexico. on the other side, political pressure regarding the mexican president. we have a lot of social unrest in mexico and you have as well a lot of pressure, but at the same time i think it will be very interesting following the fact that there is some sort of national -- going through in the case of mexico and people are

supporting the mexican president. it is really interesting. the outcome is uncertain. oliver: there is obviously a lot of talk about what will happen if the u.s. puts walls around not just the mexican border, but in terms of metaphorically, trade. an idea that a lot of the developing market economies will struggle, but if the u.s., workhetically these plans by the donald trump administration, he will get 4% growth that he wants, will those developing economies still not be able to ride the coattails of that? perhaps not as much as they would have without the trade restrictions, but still, powerhouse growth. juan: and the question is what will be the pricing of the mexican peso today and you have different scenarios. you can talk about the border and the tax, something that will lead to a very strong surge for

the dollar, probably 25%. we can talk about the 20% tar iff on mexico, which will lead to depreciation of the mexican peso. my main point is we are having a mexico that is struggling, with a lot of uncertainty, domestically and externally speaking. and i think that the main point is to see what will be priced after we have this rally. move itthe rally will one way or the other, that will be the key factor, what is going to be next when we continue to press again -- price again, the next actions. joe: in the bloomberg, one surprising thing is if you look at the major currencies since the election, the mexican peso the january 20e

being operation -- inauguration. does this signal, even with uncertainty that is out there, about what will happen with nafta and the domestic situation, it has gotten so cheap there is not a case to sell it at this point? juan: there was a clear overshooting. when we do models with the mexican peso and we try to find the value, we have a value of 18. at 22 it was extremely cheap and i think that was one part of the equation. the other part was the dollar weakness. that explains why in the current context of the dollar weakness and the mexican peso, the mexican peso is going to over perform and that explains the rally. but this rally is extremely pastse, almost 7% for the

two weeks, that is extremely intense. oliver: thank you so much, the director of research at asset management. more breaking news, we have information on amgin. we're looking at earnings for the fourth quarter, eps of $2.89, $.10 higher than the estimate. you can see the reaction in the shares, up 3.4% as they trade aftermarket. and in terms of exultation, the year as adjusted earnings of 11.80-12.60. above the 12.44 estimate, the better than expected. take a look at the movers in the late trading. we have a slew of earnings. revenue, about amazon missing estimates. and we are looking at the maker of uggz. you can tell i do not wear them.

next on earnings with the forecast, lower than estimate, the maker of uggz 20% down. you have any? joe: this is bloomberg. [laughter] ♪

♪ joe: it is time for the business flash, a look at some of the biggest business stories in the news right now. the advisory board company integrated financial advisors this week as they way the strategic options. that is according to people familiar with the matter who say that the business could attract bidders across the education and health care sector. worth around $1.8 million, providing analysis for the health care industry. and pfizer exploring a sale of

cardiology in primary care, as the drugmaker looks for ways to raise cash and to streamline their portfolio. that is according to people familiar with the matter, who also say they are generating sales of more than $700 million. pfizer is working with financial advisors at jpmorgan chase on the process of -- which is said to be in culinary stages. and steve fienberg could be leaving the company he founded to join the top administration. steve fienberg who is a ceo, says he is in discussions to accept a senior role on the donald trump team. he has a succession plan he says, that would result in changes if he does do this. that is your bloomberg business flash update. oliver: billions of dollars since the u.s. election, which ones are property and why they the best choices? we look at the data. this is bloomberg. ♪

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♪ mark: i'm mark crumpton. it's time for first word news. confirmation is improving scott pruitt for the environmental protection agency. no democrat was present. they voted 11-zero to send his nomination to the full senate. democrats say he failed to substantively answer their questions about rules governing lead and gasoline, and questions about air pollution and chemicals. homeland security department inspector general has launched an investigation into the implementation of president trump's executive order temporarily banning entry to the u.s. from seven predominantly

muslim countries. in a letter published today, he senatorstwo democratic who requested the investigation that the probe was underway. the president's order called -- cost confusion and prompted protests at actions -- airports nationwide after it was signed. the president promised to overturn a law that currently restricts political speech by churches. nationals at the prayer breakfast in washington today, mr. trump says the administration would "totally destroy the johnson amendment.'' the law prohibits churches from maintaining tax exempt status if they engage in political activity. repealing it with a prior -- required approval from congress. israeli prime minister benjamin netanyahu is promising to rebuild the new israeli settlement as soon as possible to make sure -- make up for one that was ordered to molly authorities were told by the the camp inacuate

the west bank which was built without permission. some residents refused to leave and barricaded themselves inside until police dragged them out. the last time israel built a west bank settlement was in 1982. global news 24 hours a day, powered by more than 2600 journalists and analysts in over 120 countries. i'm mark crumpton. this is bloomberg. joe: some breaking news regarding uber. quit trump's business advisory council. if you recall saturday night, bear came under a lot of fire for continuing to have cards at jfk during the strike. there are protests. the ceo was coming under a lot of fire for the fact that he had been on the trump business advisory council.

there is an internal memo that he has quit. that his comments about the immigration executive order, they were lukewarm and mediocre. a lot of follow on the story. oliver: there's also an online petition by the independent driver skills based in new york, which had called for his immediate resignation. joe: and a lot of people were deleting uber. to finish andft issued a statement. it seems like it's important enough for him to make a symbolic. move who knows what kind of role he would have in the trump administration. symbolic or not, he wouldn't be doing it anymore. back to breaking news. the fire eyes executive chairman has resigned from his company. cfo mike berry is also leaving the company. we'll talk about this now.

joining us is jordan robinson. -- robertson. shares are going nuts here. there's obviously some shakeup going on within the executive board. is this a big deal? is this why investors are selling? >> it is both. the problem with fire eye, anyone knows that they had a big data breach investigations. the problem is as a company for the past three years, the stock has declined pretty precipitously. it was near $100 at the start of 2014, and now it's at about $10. as a business, they have really struggled with the level of its cost, and the cost of acquiring new business, and the fact of the matter is that cyber security is an expensive business. they have a lot of people at fireeye who do better reach investigations -- data breach

investigations. they've been hurting for a while now. there are many, many acquisition that companiess would like to make. they are certainly being shopped around. joe: what is it about fireeye's business model that is causing them to lag in the cyber security industry? i'm looking at hack etf, which tracks other companies in the space. it is not at the all-time high, but it's not doing nearly as badly. you would think things would be doing well for companies in this space given all the attention on the issue, president trump talking about it. why are they unable to capitalize on what should be a good environment? reporter: it is a valid question. the cyber security market is hot right now. most cyber security companies facebook,m or hp or these companies that keep growing and growing and can deliver 20% or 30% returns.

has what's generally seen as good technology. they have a very good breach in the activation/investigations team. the problem is they invest within larger companies. standalone, you see few of them for this reason. the executive chairman, who is forleaving, he was famous saying that he spent over $1 million expanding the international sales and other components of fireeye. it's just a very expensive business. the growth rates are just not there. oliver: dummy drug dropped. breaking news. -- don't mean to interrupt. breaking news. snap filed for ipo. ipo registration amount in $3 million. snap did apply for the ipo. they filed under the ticker snap.

we have been waiting for this for quite some time as the company looked to go public. this is a pretty big deal. symbolic to have a new tech company listing. we have been waiting for this, a pretty big social media player. investors will be paying a lot of attention. some of these companies have done poorly or had rough ipos.facebook had a greek -- weak ipo. companies like twitter have struggled. this'll be interesting, what exactly will be the metrics and what will investors figure out? this will be exciting. do you use snapchat? joe: i have used their couple of times. this is an understatement to say people will be interested in the company.this will be a huge ipo. one of the biggest tech social media ipos in a long time, a behemoth, a company people talk about as possibly being the next a spoke or rival -- facebook or rival to facebook.

talk about the platform, people are interested in the numbers. like this, there's no comparables. they invested in a totally new platform. it creates a lot of potential. it will be very interesting to see how investors and wall street greed the ipo -- and wall street greets the ipo. oliver: our reporters that have covered this have an article, about whether or not they would over nasdaq. there is some rivalry. that's pretty interesting. the reporting was correct. they chose to list on the night the -- nize. that's a symbolic move. it's interesting when you talk about the metrics. that's what makes it so hard. there's also the issue of the company itself, which of course

the app prides itself on the secrecy element. isknow that spiegel himself somewhat secretive. and the idea that they have to go on a roadshow and hold everything is going to be very it will tell a lot about how spiegel will be able to run a company in the public space as opposed to private. joe: absolutely. it's very interesting. facebook earnings out yesterday. facebook itself has been copying some of snapchat's features in instagram on the official app itself. snapchat ipo coming out. lots of big tech news. we are starting to see numbers on the board. daily average users, 161 million. also, recode reporting the uber ceo resigning from trump's business advisory board after lots of controversy. we will be back with more. this is bloomberg. ♪

joe: breaking news again. .nap filed the ipo the owner going public, doing it for a filing of $3 billion in shares. this is something we have been waiting for for quite some time. this will be a huge tech ipo to set the tone. in a second barinka to talk about it. joe: are you able to hear us? all right. huge ipo. what is the big take away from this filing? reporter: the big takeaways right now on first blush is going to be how the company is positioning itself. they are talking about the future of the company and where , which is toest develop the camera platform.

that is how they will drive user engagement. the first few minutes looking at this deal, some of the headline numbers i think are important. 158 million daily active users. 25% of those post every day. the other thing that snap is pressing is this idea of engagement. it's not all that -- about the theer of uses, but engagement of users. that brings us to average revenue per user. for 2016, it was $1.05. that is up from $.31 in 2015. they say in the first three months of this year, they are n $2.15 per user. oliver: in your reporting, what do we know? doing anything about the bankers behind us or who they have been talking with, or have had previous conversations with? reporter: morgan stanley and leadsn sachs are the two

on this offering. there is a slew of other banks you can see. themre the ones who helped craft the message for the first coming out party for this company. they are also the ones who are helping them look at what kind of things they need to tell investors. as soon as i go back to my desk, the top things i'm going to look at are going to be the risk factors. what is snap laying out? what are they concerned about? there's typically an area called competition. that will be important to see how they position themselves against the likes of facebook, twitter, and potentially other media companies. the last big thing that comes to mind that their underwriters will help them work through to include in this document are going to be things like legal proceedings and acquisitions. that information will be in this as well. i will be digging back in for you to bring you more. joe: some of the other numbers,

one that stands out, snap to spend -- actually does not as important. 2016 adjusted -- it's moving so fast. revenue for 2016, 400 $4 million. -- $404 million. this is really substantial. this is not a company just trying to figure out their model. that's not nothing. reporter: i will say it is a new thing for them. last year -- in 2015, it was closer to $60 million. you can see the growth. only reallyhey've been monetizing users for a couple of years. if you put in perspective at the low end of the valuation, $20 billion is what the sources tell us they are going for in terms of market value. that is still upwards of 50 times trailing 12 month sales. putting perspective on that number, they have a lot to justify here in terms of the premium they are having to

convince investors to buy into. joe: thank you very much. we will be following your reporting for more on this ipo. m we willnt to bring in continue to talk about uber ceo leaving trump's business advisory council. we'll talk with brad stone. uber is always a lightning rod for council receipt -- controversy. something about saturday night, in particular that he was on the council, andy still sending cars to jfk amid a protest, really set people off. what do you think about the ceo pulling out? reporter: right, they could have pulled out sunday morning. they were bloodied for a week. for one thing, there key constituencies like drivers and riders in major cities are up in revolt.

uber was taking all this fire. not necessarily logical, because a lot of ceos are on the council. i think uber is also worrying about what else is coming. there's a lot of talk we could see an executive order around lgbt writes. that comes, you start to get into really turbulent waters here. it's an uncomfortable position. we know that bob iger, the disney ceo, is not going to the business council meeting tomorrow. all of these ceos are wondering if the pr cost is worth it. oliver: let's take it back to stage one in the story. why exactly was he on this advisory council? do we know what the nature of his role was going to be? reporter: there are 19 ceos on the council. this is about a seat at the table. it seems that a no-brainer, why wouldn't you want to be in the room? but what we are seeing on sort of mob mentality. there's not a lot of logic behind it.

uber has always been a lightning rod, as you said.we maybe expect more for them -- from them for some reason. maybe the previous lapses in their behavior and the reputation they have accrued as a tough player. he's a brash guy. the fact that it took this to make reporter: and they didn't even do anything wrong. was operating their that saturday night as well. joe: one thing distinct to uber is that the regulatory environment is very important to them. it is important that they not get hurt by taxi regulations. their labor eight -- issues are important, and how they treat drivers, how they classify drivers. it's very important for them to have good relations with states and cities. do you think they feel that the national level that relations are as important? reporter: it is not. but certainly when the conversation turns to driverless cars or environmental regulations, they thought they

could have a role to play. maybe topics seemed favorable. elon musk is there. from ibm is there. certainly in the end not worth the reputational pies -- price. oliver: thank you for helping us wade through uber news. the senior executive editor of global type. the uber ceo saying he will not be part of trump's advisory council p really also had breaking news on snap, filing their ipo. expected to be about $3 billion. this is bloomberg. ♪

joe: a big year for politics in europe with france, the netherlands, and germany all -- pitelections that put

establishment figures against radicals. how does this affect markets? joining us is the portfolio manager at an equity fund. thank you for joining us. obviously, 2016, lots of people got everything wrong.now people are nervous that they will get everything wrong again this year how does that play out in this. -- in markets? >> i think people are overcompensating. i think the brexit vote and the trump election made people at risk. i think it's a low risk scenario, with marine le pen, mostly with the way the french elections are structured. the non-national front group will outweigh the national front group. i think you can end up with a little bit of a relief, or a rally there. there is clearly some uncertainty, but at the end of the day europe really has to reform.

i think business trends are heading in the right direction. oliver: if they get all that done right, there is sort of an interesting investment piece about whether or not to be in the u.s. or in europe as we look at the political turmoil. it feels like there is could be on the downslope as ours is getting going. >> i would actually take the opposite view. i think the risk is already discounted that you end up with a more fractious europe. i think we had seen the dollar rise -- oliver: how is it the risk? >> more in terms of the currency. not risk in the markets, per se. keeping volatility valuations relatively high in the u.s. when we look at the currency u.s., iss outside the think you've got political risk which is probably overblown outside the united dates, and

regulatory reform. think about what's happening in the business sector outside the u.s. the incremental changes positive. in the u.s. we are talking about policies designed to get -- take us all to the 1950's, which is in the wrong direction. we have much more outside the u.s. multinationals and local companies in europe and japan look more interesting. joe: let's go back to that. a lot of people we talked to, investors and business people, are very excited about the regulatory and business environment in the u.s. they are talking about tax cuts and deregulation. you are skeptical. >> there are a couple of sectors that will benefit. you will get much less regulatory controls over the banks. i think that's positive for the domestic banks in the u.s. you also have potentially a more benign epa, which is positive energy. in global portfolios, we have exposure in the domestic u.s. but when it comes to global businesses headquartered in the u.s. versus overseas, we much

preferred the company's outside the u.s., rather than the daiken in japan, verses in the u.s. oliver: let's talk about stocks overseas. i want to jump to the terminal quickly. obviously, pretty low on the index. off thebviously way highs of june for brexit and july, and the highs in november here. this is the futures curve. there's kind of a bizarre pop at three months, and then it flattens. what is italian about what investors are expecting? >> we have a bunch of elections, and this is telling you investors want reinsurance about where the path is. and the u.s., we are living with political uncertainty and regulatory uncertainty. the path in europe is much more visible, but i think getting elections behind us,

particularly in france, will be key. joe: not all european countries are the same. some are doing well. italy's economy is stuck in neutral. are there any specific countries you like right now? >> i think it's absolutely critical to be selective. that's why think active asset management comes in. we are enthusiastic about nordic markets and germany. the netherlands and france for global companies. avoiding italy and southern europe in general. oliver: you got it. benjamin siegel, from the international equity fund. coming up, what you need to know in europe for tomorrow's trading day. that is next. don't miss it. this is bloomberg. ♪

oliver: recapping the breaking news. filed for anated ipo. $3 billion. it will be the first since twitter for social media

>> you are watching "bloomberg technology." thinkingdent says he's

about redoing the north american free trade agreement, which he says has been a catastrophe. he made the comment at meetings from the hardy -- harley-davidson motor company. homeland security department inspector general has launched an investigation into the president's executive order temporarily banning entry to the u.s. from seven predominantly muslim countries. inspector general john roth notified to jenna -- democratic senators who requested investigations that the probe is underway. secretary of state rex made his first comments at the state department. he urged his new colleagues to work as a team. the former acts ceo also called for an end to ineffective traditions. he says he will evaluate. toronto's threats from the the administration will not be effective. the president said iran is on notice following the latest mission -- missile test. michael flynn says it was in defiance of the un security council resolution. ira