capital for female business owners, and adopting policies to help women stay in the workforce. trudeau lauded the leverage that in businessuccess provides to the u.s. and canada. in taiwan, a tortoise flipped on a highway -- a tour bus flipped on a highway. most of the passengers were believed to be senior citizens. this is bloomberg and we will go to breaking news. caroline has more on that. caroline: the trump administration, now breaking, saying it is readying sanctions against venezuela's vice president. the announcement comes after a year-long investigation and has into his alleged participation in drug trafficking. an amazing piece of journalism. the update on what is being announced. the announcement will come

this week, we are told. the u.s. is said to be preparing sanctions against venezuela's number two official, the vice president. caroline: this is the most senior level of government we have ever seen sanctions put against? the most senior level for venezuela and possibly across the board, the highest level government official the u.s. has placed sanctions on. caroline: dig into the detail for us. what is being leveled? it is drug trafficking that seems to have been consuming the vice president of venezuela. were 34 members of congress, senators from both sides of the aisle, who wrote to trump on february 8, asking for action to be taken. the drug trafficking has reached the middle east, where it is middlee he is helping easterners get venezuelan identities and you have to

wonder were that goes from there. if the sanctions are imposed, his assets will be frozen and u.s. citizens will not be able to deal with him. caroline: what ramifications does this have for the government of venezuela? key has been recently appointed. -- he has been recently appointed. : they may have to elect a new vice president or growth or some sort of protocol to choose someone. the u.s.-venezuelan relations have not been great. there were sanctions stepped up under obama, and these investigations that are leading to the sanctions we are expecting this week have been going on for some time. caroline: great piece of journalism. that there are sanctions being readied by the u.s. government against venezuelan vice president. a for breakingh that news. technology is next. ♪

caroline: this is "bloomberg anhnology." apple closes at all-time high. what is behind the surge, and kennett sustained? facebook, buying or airing youtube. acts, trying to break onto the music scene. details ahead. project learns the hard way that it is all about the money. we will dig into the talent exodus. first to our lead. it was green across the board for the u.s. stocks, hitting new records, including the nasdaq. the world's most valuable company got pricier. abigail joins us from new york

with a wrapup of the trading day. let's kick off with apple. >> a big day for stocks, in part because of apple. we have the three major averages finishing at record highs for a third day in a row, and apple andthe top for the s&p 500 the nasdaq, finishing at its first record high in two years. be of this, the stock could undervalued by $15 per share, but the bigger story, when we take a look at the two-year chart, apple two years ago hit record highs, then fell an amazing 30%. that, on disappointment around the iphone 6 asked. 7rong demand about the iphone helped it recover. we hear chatter about an iphone eight super cycle, plus the possibility that services could kick in. apple trading at levels last seen in 2015, and analyst think there is more to go. a lot of bullish action for stocks and technology and apple.

caroline: talk to us about, with apple's help, it seems to be tech, one of the best-performing sectors on the day. if you are digging into the s&p 500. it seems to be, perhaps it is not all that pretty for some sectors post-election. >> tech was hit initially out of the election, but this year, telecom is a bit of a reversal. out of the election, they were up 18%. we have a great chart, this is g 3, a big move up for the telecoms sector. an 8% fall. behind the climb up with thetics, 2-1 republicans on sec, so there is something that a bit of awill be pullback. some of that is technical, but today, a new about of weakness when we take a look at the big names, including verizon, t-mobile, and sprint.

weakness on the day as verizon said it is going to offer unlimited data, leading to months of speculation of whether they would do this. john butler's team told us this tells us there is a price war for the telecom giants. investors today, not liking it. caroline: much focus ahead of t-mobile's results. thanks, abigail. at the grammy awards in los angeles sunday night, top music executives were trading notes on a new act trying to break into the scene, facebook. facebook redoubled its efforts to reach a broader part of the industry. what are the ramifications of labels licensing music on facebook? joining us, thank you for joining us. what do we know about the wooing going on on facebook? they have been making the

rounds around town in l.a., and more importantly, their lawyers are talking to the label's lawyers. that is where the magic happens. what they are trying to do is come up with some sort of agreement, so when you or i upload a video on facebook, we put some music on it or whatever , do the labels get compensated? that is a complicated thing to do because you have to work out, how is facebook going to identify when a song comes out, who is it and who they oh money to? a lot of technology behind the scenes that youtube has had for a while, that works pretty well, or not very well, depending on whether you ask the labels or youtube. caroline: what would be the impact of face it -- if facebook muscles in on the game? >> there are all sorts of ramifications. for facebook itself, it is moving more into video and

trying to sell advertising. we don't think about music as video, but you listen to it and if you think about the most popular way to listen to music right now, it is youtube. we think of a song, and want to hear it, and the first thing we do is punch it in and out comes the youtube video. facebook wants to hone in on some of that demand. if it does that successfully, it is a real alternative to youtube, so in the big battle between those two heavyweights, it becomes another front for the music labels. it becomes another stream of revenue for the labels, despite what they get from youtube, and it helps put pressure on youtube. they have deals with youtube, they all have rules about how they govern the copyrights, so this gives them something to whack youtube with. for streaming companies, they have been the story of success for the music industry. they have helped the record labels row for the first time in a long time.

another very popular way for people to listen to music, and by the way, it's free, you could see some of the growth get cut into. that is a worry for streaming companies like spotify, and for the labels, because they get a lot of money from spotify. there is a balancing act that goes on for the music industry. caroline: and the music industry, the labels, perhaps they might be pleased by who facebook has been hiring. >> facebook has made a couple key hires through, not just the music portion, but also video. i think there is some sense that that is how you make a tangible motion to say, look, we are listening and we are in this for the long haul. caroline: exploring a little bit about what you mentioned of facebook's original content, they want to get into video and

their own content. what are the potential roadblocks that could come across by getting into this? tolike i mentioned, you have have the right technology to be able to recognize, someone has just uploaded something that is copyrighted. what do i do with that? that is the first thing. that is not easy technology to do. the labels are not always pleased with how youtube has worked. growing,right now is with its news feed. we all use it. here is your friend's baby pictures, here is a video from someone. if you want to have a music video or something better label is trying to promote, where does that come in the feed? if facebook is to deal with original content in general, because it is not sure where to put it, how do you make sure it is seen? how do you make sure i know it is there is a user?

these haven't been worked out yet. thank you very much indeed. bloomberg news in l.a., bringing the story on facebook. staying with the music industry, the revolving door has swung at soundcloud. and streit will, the ceo, the director have left the company. this comes as the music service faces funding troubles and maybe running out of cash. the next step could be a sale. talks broke off with spotify. coming up, we talk to a member paul --nfamous pay paypal organization. this is bloomberg. ♪

♪ caroline: the auto industry is making a plea to the u.s. government. senior officials from toyota, gm, volvo and others urge lawmakers to prevent states from setting their own autonomous vehicle rules. it is something carmakers say could threaten the emerging industry. national to the conference of state legislature, 20 states introduced laws on self driving be a goals in 2016. speaking of the audio industry, tesla is making a move to sell its electric cars in one of the world's largest oil-producing nations, the united arab emirates. they are taking orders for their model s sedan and model x sport utility vehicles for the summer. tesla will open a service center in the middle east in july. joining us is our reporter who the ceo of a and cloud software technology that lets businesses retain control

for docket -- of documents shared with other parties. the man behind tesla well. i want to start with you on this story. expanding in the uae, is there demand from these oil loving folks? >> tesla has a plan to get into as many foreign markets as they can. there is a rising middle class that likes flashy cars and that is a tesla. eric, someone he has worked closely with, elon musk. his role expansion the dream? >> i think it is. he dreams big. when i had the pleasure of working with elon as well as peter thiel and other famous names, he dreamed big. next.com, a company that continued to disrupt online banking, which murdered -- merged with peter thiel's

company. he dreamed big and was going to swing for the fences. caroline: the scale of elon's ambitions, if you look at what they wanted to do by 2020, more models, autonomous vehicles. and you ascertain what this will be? >> this is the year he has modeled to unleash the three, the more affordable sedan. volume production is supposed to begin in july. 3m and 73,000 people have reserved the car. you have a lot of people waiting for the car to come out, and it is a key to tesla profitability. eric, do you have a question? >> a model three? i wish i had one. caroline: one of the previous models? >> we are waiting for the three to come out. i'm excited to see it. caroline: you and me both. give us a sense of elon musk's

utopia. he is an emotional person, speaks emotive latecomer reduced to tears about the areas he wants to grow into, particularly humanity. can you give us a sense of what he sees in terms of the company's rewards for humanity? >> a great question. looking back to 15, 17 years ago when we were working together for a year or so, it was hard to see what he would become. amazinge an extremely figure, in some ways really, sort of the poster child of entrepreneurship in a lot of ways. -- the mostnnounced pronounced entrepreneur in america today. entrepreneurs want to change the world. when you think about what elon musk is doing, his interests are diverse beyond his companies, electric cars, spaceships, he

developed plans for the hyperloop and is working on artificial intelligence. he was in the media this morning talking about how human consciousness will need to have some sort of technical upload in order to compete with artificial -- artificialence intelligence. he is interesting in making -- interested in making the world better. from his entrepreneurial activities to his political activities, his decision to stay on and advise the president in the face of controversy. caroline: running up to the elon musk seems to not be able to do much wrong. andlon musk first came out said he supported rex tillerson as secretary of state. that surprised a lot of people. there is a meeting of the minds about a carbon tax on a policy platform on which they agree.

he is on a strategic policy council, whereas travis resigned after the cry from consumers and n thought it would be better to be at the table and not. tesla posco is went along with that. you are not seeing people canceling their orders for the model three. caroline: you worked with peter thiel, who has been the right-hand side of, even when president-elect donald trump was there, when many thought this would damage his reputation. did this surprise you or confirm your views? >> it is not been surprising. full disclosure, peter thiel is one of the investors in my company. i still have a business relationship with him. , all these musk people i have had the pleasure to work with in the past are big personalities, that that big

visions for the future. book,e about this in my -- aboutal wars," with all the turbulence there. there were some areas where peter and elon disagreed. but they have worked together over the years on many things, found a way to collaborate. that is what you do when you were a leader, you collaborate with people if you don't see i tie. tie -- see eye to eye./ reaching aesla is broader market. they are increasing stakes in copper and cobalt, due to the demand from the electric carmaker past use of cobalt and lithium-ion batteries. glencore is buying out in an israeli

billionaire's steak and a cobalt mine. cobalt competition has intensified due to electric vehicles. next, verizon is jumping on what is becoming an industry bandwagon. the tiles behind their change of heart on a key offering to customers. -- details behind their change of heart. watch us live and see interviews and dive into functions we talk about. you can become part of the conversation by send us -- sending us instant messaging. check it out at tv . this is bloomberg. ♪

♪ caroline: verizon will offer

unlimited data. they will charge $80 a month for a single user. that is higher than the t-mobile plan. it is an about-face for the wireless provider, which has steadfastly refused to offer unlimited data plans. fu took a closer look at the numbers, which don't lie. >> t-mobile has released preliminary subscriber data for the fourth quarter and the key number to watch is phone postpaid customers. that was 900 33,000, bringing the total to 1.2 million. this comes at the expense of competitors. if you go back to the third quarter, t-mobile is the leading bar in the middle. outpacing postpaid net gains made by at&t, verizon and sprint. t-mobile is doing a better job of retaining customers. take a look at the declining term rate for postpaid subscribers.

there is an overall downward trend, which shows the rate of customers that stopped subscribing to t-mobile services is falling. keeping the customers improved the annual adjusted earnings. riod,e last reporting pe they raise their forecast to as high as $10.4 billion. t-mobile customer gains come at a cost. the average reddit new -- revenue per user has been relatively flat. coming ins will be for t-mobile, down 1.5% from the preceding quarter. the ceo, who will be on bloomberg on tuesday, will talk about that subscriber gains. in a move that highlights the price presser in wireless, we saw verizon introduced unlimited data plans after abandoning them years ago. this drove t-mobile share prices lower. caroline: coming up, we'll be

t-mobile's results. we will be speaking the -- to the ceo of t-mobile. the pentagon is paying hackers to test its internal systems for weaknesses. we will hear from the so-called ethical hackers, next. and this week, we will be at the goldman sachs tech and internet conference. ,e will cover the tech industry plus a chief officer at goldman sachs joins us on wednesday. this is bloomberg. ♪

will you watchingr: you are "bloomberg technology." universities, including harvard and yale, are joining forces to wage a legal fight travel president trump's

ban involving seven muslim countries. they say it affects their hire people from abroad. and continuing the choice of a , whor goldman sachs banker ran one west bank. they say he failed to protect homeowners from unnecessary foreclosures, and the united nations envoy for syria has begun sending out invitations for upcoming peace talks in geneva. in nearlynegotiating 10 months among the warring sides. the talks are to resume. it were last held in april but were suspended because of new fighting. at least 30 people dead and 60 others wounded after a palm at a pakistani city -- after a bombing in a pakistani city. governmentrotesting

sales, and a taliban faction is claiming responsibility. global news, 24 hours a day, powered by more than 2600 journalists and analysts. this is bloomberg. it is 6:30 a.m. tuesday morning in hong kong. i am joined by stephen engle with a look at the markets. etephen, good morning. -- stephen, good morning. stephen: sydney futures and nikkei futures are pointing higher. more could be in the cards for hong kong, where chinese stocks there rose on rising inflows from across the border in china. index is at h-share its highest level since november, and we are likely to

get inflation data out of china. the consensus forecast is for a cpi rise of 2.4% from one year ago. in january, it was a 2.1% rise ahead of the new your holiday. food prices were a bit lower. gainedor prices likely 6.5%, and on the earnings front prices asia -- producer likely gained a 6.5%, and on the earnings front here in asia, there was a large write-down on a nuclear power decision. i am stephen engle in hong kong. more from "bloomberg technology" next. ♪ is "bloomberg technology." i am caroline hyde.

apple closing up, and investors are optimistic that the next iphone will lead to a resurgence in sales and help the company grow. another record session. check up my -- at my bloomberg. digging in to see the i.t. , not quite as stellar as we saw the financials rise more. saw qualcomm,we cisco, paypal. they were some of the key winners in the s&p 500. on the downside though, the worst performer. now, let's go back to apple. we are joined by a reporter who tracks the rises and falls of the most valuable company in the entire world. and now, they are much more valuable. report: they are. the stock is at a record high.

the market capitalization, because of the buyback in recent years, they are actually a but theit below that, stock is at the highest ever. caroline: the market closing tentatively so close to $700 billion. is it just the market rising, alex? is there exuberance? boost after take a the earnings call last week, and expectation for the next iphone sales, but since then, it has only been tracking the market. forecast for how the sales could go, that has people very optimistic. analysts'digging into buys on thisns, 41 particular stock, alex.

i we likely to see this continue? interestingly, we are getting very close to the target price. it is at about 142, the average we have on the system, so it will be interesting to see, particular by the end of the year, to see how compelling the next iphone is, how they are attracting new customers, particularly in asia and china, and that will speak to the attractiveness of apple. we have seen that the competitors in asia have increasingly succeeded in developing phones that are as good as the iphone or approaching the quality of the iphone, but they do not have the kind of plan cache that apple thatthat sort of shininess apple has and its attractiveness as a brand. say they have got about one billion pieces.

and this is what apple isal -- 2021. the average revenue per user is a statistic to look at. it is, of course, a high margin. you have to invest in the hardware and software. and that is what apple is pushing into apple music and has made steps into television, as store, whichapp sells a huge amount of products every year, an apple gets a cut of that. bloomberg's alex webb. now, private security continues to be a major theme under president trump, and concerns of vulnerabilities rising. a $4 million contract care it out work at the pentagon.

there is more expected down the road. ceo to talk about the way in which your ethical theers are helping with vulnerabilities of the pentagon. you have already helped with credit card companies. working with an invitation from the pentagon help you? it is not a lot different. the pentagon certainly recognizes that these threats is just as bad for government as it , andr private enterprise the only way to stay ahead of the ongoing threat is to utilize the same hackers that are attacking them almost every single day. they are using the hackers for their own benefit, what they look like when someone is try to break into our most critical infrastructure and our most critical items running the nation, so it is exciting to see them taking this approach, like

others have done for quite a few years. the health care companies jumped on board, and now, we see the government jumping into the same space. about youralk to us experience. indeed, you just won this exercise, february 7. to gone surprised by how many vulnerabilities may have? -- was the government surprised by how many vulnerabilities they have? jay: we had 80 of the top hackers across united states trying to break into a very critical system, the first time they have attempted something like this with an internaljay: sensitive asset, and just within a few hours, we found something pretty vertical, which ended up on the secretary's desk in 24 somethinge found

pretty critical, which ended up on the secretary's desk in 24 hours. caroline: looking at the screen. federalcidents vs. investment. .ot so much phenomenal growth are they starting to wise up? it is scary, and i think the government is starting to think they need to be thinking outside the box, or they will not stay ahead of this threat. look, we have a massive supply and demand issue. jobs remainlion unfilled globally, and that will sky rocket, 1.5 million jobs by 2019. there is no way. it is really the only way we will stay ahead. caroline: talk about the global aspects. you said you had 80 of the top ethical hackers in the united states. are you looking at ethical

hackers outside of the united states? othere are looking at countries, and we use them for enterprise-focused customers. china andeveraged for eastern europe and so forth, but we do expect them to expand the scope over time. when we get more comfortable, we think they will be more and more comfortable of bringing people from outside the boundaries of the united states, starting with likellies nations, australia and u.k., and hopefully expanding from that. we have seen the cyber threats expanding. media has that the got excited about it question it has attention? , over 1000% growth in the last 10 years. have they got more frequent and damaging? know, the threat has been increasing, but we are doing a better job of spotting

these attacks, so i think the data is a little deceiving. we have a better capability to figure out when people are attacking our networks and critical infrastructure in government, and so, because of that, the number looks like it is increasing, but the attacks from other nationstates and other entities, it has been going on for a long time. it is nothing new. it is just getting more sophisticated, and we are hearing about it more than ever before. caroline: thank you so much, jay, with synack. up, the second-largest i.t. services company. and thecisco founder board. we will check in with our team of asia, next. this is bloomberg. ♪

now, a story we are watching. travel disruptions in india. er and another company continue to dispute with drivers, bringing things to a standstill. strike,have been on amending better pay and working conditions. at minimumoking fares and producing commission rates as well as changing the available.abs and a cofounder is having a fight with a board, saying they will deal with corporate governance. they had raised concerns about

urthy says, but m they are confident they will sort it out. peter is with us, who covers asia tech. they have had a few issues. certainly, there are the hb one b's is here in the united states. visas in the united states. particular, they sent a , talking the board about some severance packages they thought were quite high, and what they were concerned about is that the business has become much more challenging. it has become much more challenging since they were running the business. as you mentioned, the these is. also, the industry has slowed down. there is a lot more competition,

so it is more difficult for phyosys to compete, and mur his point.as made and shares were up a bit. they do need to sort out what will happen from here, and we will see what happens what -- what happens, what the three cofounders do. now, they have set this letter and voice their concerns, and at thy has said he will move on. caroline: i want to talk to shiva. talk toshiba. is largely about a nuclear been that has not gone too well for them. course, they are an icon of japanese business.

they do everything from make elevators to semi conductors. they run hospitals, and, of course, they design and build nuclear reactors, which is an enormous business. today, the nuclear business, particularly in the u.s. -- they got a contract about a decade ago to build reactors in georgia and south carolina, and they hired someone and ran those reactors into some very steep troubles. companyeed to buy this about one year ago, and months after that transaction, when they thought that they needed a little bit of money for the transaction, they realized the construction was going much more slowly. there were problems with it. they have not said exactly what it is going to be, but it could -- it isn 400 billion a tremendous amount of money. we are talking

corporate governance in india. some of it is big conglomerates. are they explaining themselves clearly to the investor base? is.r: well, it it is the second accounting issue that has come up at toshiba. they had a separate issue in 2015, and they took a write-down last your that was more than $2 million, and now, they are they took a write-down last year that was more than $2 million, and they are facing another write-down. they are taking some pretty severe steps in order to stabilize their finances. they will sell a chunk of their chips business to raise money, and they also need to go to their banks to get the financial support they need to stabilize the balance sheet. we will be looking at what the numbers are when they break, and, of course, you will

be all over it. thank you. coming up, google. we go behind the scenes. that is next. and a new feature we like to bring to your attention. it is our interactive tv function. you will be able to find it at tv , and you will be able to watch live and die into any of the securities and functions we talk about. us, send me, and instant message during the show. but this is for users only. check it out at tv . ♪

facebook is adding live games from mexico's top soccer league with a deal with univision. they will have the league games starting saturday and running through the playoffs.

the commentary will be in english, and the streams will be allowed only in the u.s. sportsying with broadcasts, at&t and its directv unit are being sued for alleged involving showing l.a. dodgers baseball games. ais came as they planned purchase of time warner, which giant.reate a production at&t has dismissed concerns that the takeover would limit competition and plans to fight the antitrust case. now, to one of the top stories on the bloomberg today, google's car business has been a problem over the last year, a drain and rising costs. -- with an inside look, it is a balancing act, isn't it? you want to pay people to stay on, but they got so much pay that they left?

>> yes, they had this program ears, where they pay systemry unusual which kept some of the engineers around, but at the end of that period, there was a big day out, and dave them and excuse. -- and gave them an excuse. caroline: perhaps they had so much cash that they did not need to work anymore. but the other startups in this area, cashing in even more -- people aret of these not the type of people to retire and sit around, so, yes, there were some concerns about the strategy with the google project , and there is this date pay package that gives people another excuse to get going. -- there is this

pay package that gives people another excuse for going. and there was the agreement to invest billions in the company. maybe three or four people who work in the company right now. caroline: wow. about the competition though? perhaps that has drawn away some of the talent in that respect. leaps and bounds ahead, particularly when it came to automation, but many have taken something out of that book. inyes, unveiling the car 2010, and then by 2015, it was way more than anyone else, and i would argue that it is probably still the best out there, but, yes, there are a lot of big car companies, especially that are throwing a lot at this right now. caroline: coming on to alphabet,

trying to rein in spending going on in other departments, she wants to look to this. speaking to it slightly about the expenses, but what about the other businesses? listair: they have a similar system. that google,ly is the advertising money machine, you could sit around and make a lot of money. but they wanted to isolate these projects. well, you will do well, as well, which was the whole idea. working: on most like at a startup, but the problem is these companies did too well. alistair: they have not generated any revenues, so for traditional success, they have not done much yet, but changing in transportation -- amazing.

caroline: an exit may be to your early. a great piece of journalism. thank you. it is a great story. i urge you to go and check it out on bloomberg.com. that does it for this edition of "bloomberg technology." we will be hearing from john ere, a chakaohn leg fattah weekdays 5 p.m. in new york and 2:00 p.m. -- and check us out weekdays at 5:00 p.m. in new york. this is bloomberg. ♪

♪ announcer: from our studios in new york city, this is "charlie rose." charlie: tonight, we continue our ongoing exploration of the and will our ongoing exploration will and human brain with a look at the relationship between childhood adversity and the developing brain. our genes provide the basic blueprint for brain development, but our individual experiences can shape and alter our underlying brain circuitry. traumatic early experiences, in particular, can often have powerful, long-term effects on the brain's structure and function. these life events can include parental abuse, neglect, family violence, poverty, and bullying. deborah temkin understands this issue firsthand.