>> you are watching bloomberg technology. let's start with a check of your first word news. president trump spoke about trade at a boeing facility in north carolina showcasing the new 787 dreamliner which we built only at that location. the president received a factory tour, he's expected to spend presidents' day weekend at his mar-a-lago resort. scott pruitt has been confirmed to serve as epa administrator. the bout was 52-46, a day after a federal judge ruled the attorney general's office must turn over thousands of emails related to his communications with fossil fuel companies. the former u.s. ambassador to the u.n. is under consideration

to replace michael flynn who abruptly resigned on monday. billionaire investor wilbur ross has been cleared in a senate hurdle on the path to confirmation. a final vote comes the week of february 27 after a weeklong congressional resource pass. global news powered by 2600 journalists and analysts in 120 countries. this is bloomberg. caroline: i'm caroline hyde.

this is bloomberg technology. a rough week for the trump administration but the markets must have missed the memo. we analyze the winning streak as apple and amazon hit new records. plus, tech meets sports in the big easy. we are live in the mba tech summit for the all-star lineup. and while the heir to the samsung empire contemplates his fate time bars we turn the spotlight on south korea's culture of family-run businesses. u.s. stocks drive higher trading with all three indices closing in the green despite another week of of people in washington. one standout, t-mobile u.s.. softbank would be willing to give up control to sprint in a merger for the two mobilephone carriers. joining us now for more context is oliver.

give us the hit. optimism is still really there despite travel ban mishaps, foreign policy issues. >> that is 100% the case. we've been looking at not only talking to investors, but the numbers as well. all of this is well recorded in terms of surveys for investor sentiment. the numbers are there. i think what happened is there is a positive the markets. when trump and his administration started talking about access again, corporate business, that is when people started getting excited again. there is obviously quite a bit of turmoil in washington. no matter what side you are on. to a appointees are not going to be there. he is struggling to find

replacements for lease one of those spots. these fund managers did tell us we are looking past it. this is what we are hoping for. what is interesting today, we came back in the markets and we ended up positive on the end of the day. caroline: we were in the red most of the day and suddenly we saw a surge in the end. apple and amazon, we have not seen that since back in july of 2016. one key tech stock we're looking at, t-mobile u.s.. m&a front and center. >> exactly. that was the news that broke when julie and i were on. these are two big companies. this is a sector a lot of people watch. this is going to be something that is back on the table because the ceos and executives believe the trump administration could be more friendly to this type of thing. that did help the market.

you look at the biggest sector, there's only four of them. that lifted the entire group. trump has talked to softbank before. he has good feelings about him. maybe that has something to do with it as well. you have to look at the time stamp of when trump started talking today. there you have it. caroline: it seemed to be regulatory wind blowing from donald trump, whether it is corporate tax as well. i'm interested in the geographical breakdown. the s&p 500 was up year to date. asia really outperforming. are we seeing optimism from an internal political element from the u.s.? >> that is an interesting point. i was looking at the multinational indices this morning as well. while the u.s. is doing well, up 9% after the election, they are

not beating every market around the world. there is an overhang of some degree of uncertainty in terms of what donald trump's plans are going to be and whether or not they are going to be implemented. from talking to the portfolio managers, we talked about 20 money managers. regardless of their views on the politics, they said we went from an administration where we felt we were being targeted and regulation was the modus operandi. obama was great for the start market -- stock market. though small business owners do feel better. you see it investors looking in the market. and markets now going in different directions with companies. people like that in my think

that is a good time to be in stocks. i think that aids it. >> notable one stock underperformed, tripadvisor. great analysis amongst this trading week. president trump's relationship with tech remains largely continuous despite efforts to listen to the industry concerns. one of his most vocal detractors was entrepreneur mark cuban. cory johnson sat down with the dallas mavericks owner where he spoke about the pros, cons of the president's actions so far. >> reducing regulations. if you would say what are the first things he would do, i would reduce the amount of regulation. we don't need 75,000 pages or whatever it is. whether or not these things get past, that is always a challenge. i don't want everyone to think

i'm a full-time critic and i don't recognize the positive things when it come smite business perspective. there are some conservative concepts that i as an independent can't agree with. the devil is in the details. you have to be able to get them passed and we will see whether or not he does that. >> things are critical. >> stuff i torch and over, socially, immigration, the epa, who knows what with immigrants that are illegally here. his implementation of stuff is severely lacking and i don't think it's thought through. i think the bigger overriding thing, there are 10 other things i can go through on that list but the bigger problem is in terms of leadership and management. personal issues for him. i don't think he is a leader.

people tend to forget that now that he has won the election he is the president. he is the commander in chief. he's in charge of the federal government. that's 4 million plus employees. everything he says and does, when he does the press conference yesterday, he's not only talking to the media, to the people who voted for him. he's talking to 4 million employees. he is speaking as the commander in chief to the military. when you do that you have to come across as a leader. you have to show leadership qualities. to show leadership qualities you have to admit mistakes. caroline: he also spoke about the outlook of jobs under trump. >> the only uncertainty -- the only certainty it being the president of united states is the uncertainty. we have to make an effort to always be learning. you have to make an effort to have at your disposal every possible tool which includes technology.

i think that lack of understanding of any technology whatsoever is hurting him. i will give you the perfect example, jobs. from the most basic common sense perspective, how could it ever possibly be wrong for the president of the united states to sit down with the ceo of any company and convince them to build a factory? to build a factory? hire people in that factory? it is impossible to see anything wrong. on a macro basis when you ask what is going to happen in that factory? what technology they going to use? unless you understand how the nature of work is changing and how this acceleration of technological change is changing

away from manufacturing. how we process information, how we automate automation. the point being that i would be willing to bet every single one of these companies that are building these factories, they should still do them, right, indirectly he is benefiting those companies, but from the macro basis for that whole country, every one of those companies that are going to be building new factories, their net employment is going to be lower once those factories are built than he anticipates. they are just pushing them towards further automation and use of deep learning, etc.. it is inevitable. he could not stop it. the problem is he doesn't understand the macro issues. he thinks he's creating more jobs when an essence that is not happening. caroline: that was cory johnson

with dallas mavericks owner mark cuban. we bring you more lives live on the mba tech summit in new orleans later this hour. coming up, the latest read on how tech entrepreneurs are weighing the current political climate. we will discuss with ceo greg becker, next. this is bloomberg. ♪

caroline: the current political environment has entrepreneurs wary about the future according to silicon valley surveys. they are less optimistic this year with uncertainty about funding. joining us is greg becker. great to have you. optimism is shrinking. perhaps not that surprising when you realize all of this data was

brought after the election. >> we did a poll. we do a poll every year. roughly 950 startups. kind of got their perspective on how they are feeling about the market. that is the main part of the survey. it was interesting from a timing perspective. we saw the highest level of lower optimism. always optimistic technology. what happens is given the timing there was so much uncertainty, we saw a drop. it went from 70% feeling this you would be better than last year to 60. this was the lowest we have seen since we have been doing the survey. caroline: along with that, it was interesting they had on top of the uncertainty, concern about travel bans, whether that impacts the reach for talent.

there were signs finding the right talent is easier to read can you break down why that is the main issue, they can't get the right engineering talent. >> it was a slight decline. it is still the hardest part, finding the right talent. it did decline and i think it was because there are fewer companies competing for talent. the same way that they were in 2014 and 2015. i think that is good but if you took that survey today with the travel ban and the fear over immigration there would be higher. i think there's more of a concern can they find the talent? we are not graduating enough u.s. students that fill these jobs. i think there would be more concerned if the survey was done today. caroline: you do also have a lot of companies in china and the united kingdom.

is that something with the u.k., leaving the eu, talent worries there whether they can lure in eu-based talent? >> absolutely. there optimism was even lower than it was in the united states. the fear of brexit and what that was going to entail, we saw that playing out. they are more nervous being able to find that talent for the same reasons in the u.s., it is more front and center when the survey was done in the u.k., will they be able to find the talent in the u.k.? how will that play out? >> or orange been numerous going to set up shop in berlin? >> we asked the question, what do they believe they will be doing over the next 12-18 months? 25% said they are planning to open up an outpost in europe. a smaller percentage were considering moving their

headquarters out of the u.k.. we are seeing some issues around the brexit. not as much as the market assumed. mainly because technology companies are incredibly resilient. they will figure out a way to deal with it. we did see a higher number looking to europe. caroline: let's get upbeat. more m&a. can you give us a sense of how much more we might be saying? >> we believe it is going to be better than 2016 but had to calibrate that. 2016, especially ipo's, was a low bar. it doesn't take a lot to be better than we were in 2016. our forecast is we believe tech venture ideas will be up roughly 2x to 3x. it is for a few different reasons.

the bar was low from last year number one. you see these companies are continuing to mature. the market overall is strong. the economic numbers are pretty positive across the board. they are optimistic for those reasons. we are excited about this year being a stronger year of liquidity and assets. >> the m&a does tend to be more real early used. who is doing the buying? is it any influence in the data from that respect? >> the answer is yes. it is all of the above. you can look at companies last year that were acquired, jet.com getting acquired by walmart. a traditional business model. then after dynamics, a big bellwether.

>> look at the exit. look at the choice management had to make. you can look at the cash today versus the ipl. i'm sure they would have done one from a ipo perspective. that is a lot of money to pass that. we are looking at it and it is non-tech and technology companies doing the m&a. look at the stock market. they have a lot of cash. if we see pre-patriot and and tax reform you could see even more. we are optimistic for those reasons. still to come, we take a closer look at the culture of south korea and how samsung is in the crosshairs. it could be just the beginning. this is bloomberg. ♪

caroline: samsung heir apparent jay lee tied to a scandal that has led to the president's impeachment. it puts the unique culture of south korea's family-run conglomerates under intense scrutiny. troy, first of all, can you give us a sense of whether samsung is the start of something wider? >> the current special prosecutor said he has only have the opportunity so far to investigate the ties between samsung and jason schill mahood this scandal is tied around. that being said, there were a series who were brought before the national assembly earlier to testify who gave donations.

some of them such as lotai have given it back during this period. the special prosecutor is probably going to look into these situations. caroline: how destabilizing could this be for the economy of south korea? >> traditionally they have been run through the families. without the head of the family in charge there's been no authority to make major decisions how to do new strategic moves. the question becomes if many of them were to lose their heads such as samsung right now, would they be able to make decisions? many of them tend to have caretakers where the situations

happen and they should have a plan in place but it would be unique if we saw this happen now. caroline: you worked on capitol hill and have great insight into trade and foreign relations. can you give us the trade and foreign policy element of south korea, working with the new administration while north korea is firing up missiles. what does this mean when they have such scandals in the internal economy as well? >> this is a difficult moment for south korea. you have a new administration focused on job creation. very focused on reducing deficits with united states. south korea has had a trade surplus with the u.s.. last year that went down somewhat. we have seen so far when prime minister abe came he said

listen, i've talked to my companies, here the investment we can make. it's going to bow who south korea to do the same. if samsung and others are essentially pulling back and taking conservative moves them at next president of south korea is there's going to be more difficult for them to say here is a package of jobs we can bring to your country. it would south korea at a disadvantage. that being said -- caroline: we have 30 seconds left. i wanted to get your point of view when on saturday we understand he is going to be called up in front of the court once again. this may not be that disastrous. >> he have a situation where you have professional managers and each of the divisions that may continue running the company. it would only be in the long were you may have an issue. >> incredibly eloquently quickly put. we thank you for your time. i'm sure we will be calling on your expertise again. coming up, we wrap up the week

in tech. the countdown is on for snap public debut. can the company live up to the hype? this is bloomberg. ♪ with x1 you get the best of the oscars.

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the oscars, live sunday, february 26th 7eâ4p on abc. >> you are watching "bloomberg technology." alisa: president trump stopped in south carolina to participate in the unveiling of the new 787 dreamliner. speaking at the facility, he promised to give u.s. workers the chance to succeed. president trump: american workers will always, always, always win. but we do not have a leveled playing field. shortly, you will have a level playing field again. alisa: the president also received a factory tour and will spend most of the weekend at his palm beach resort. the german defense minister told the u.s. that washington has an interest in a stable european

union and a united nato. she also cautioned about turning the fight against the euro zone into a front. she spoke at the munich security conference. and james mattis today dismissing a military partnership with russia to fight islamic state in syria. the address reporters today in brussels. >> they have to live by international law, like we expect all mature nations on this planet to do. and what we will do is engage politically, we do not, we are not in a position right now to collaborate on a military level, but our political leaders will engage and try to find common ground. alisa: the german chancellor says her country will stick to their long-term commitment to raise defense spending to the levels agreed upon with nato partners, but she is in no hurry. she spoke when she in the

canadian prime minister were asked about the u.s. president call for the nato allies to carry more of a financial burden. and tony blair urging brexit opponents to fight to keep the u.k. in the european union. >> the people voted without knowledge of the terms of brexit. and had these terms become clear, it is the right to change their mind. it is our mission to persuade them to do so. alisa: in pakistan, hundreds of protesters gathered near a trying that was targeted by the islamic state's suicide bombers. some insiders are demanding more security and pakistani police say they have arrested and killed dozens of militants. north korea rejecting the results of an autopsy on the estranged half-brother of north korea's ruler who died this week at an airport in malaysia. the malaysian ambassador told people that malaysia was

prevented from -- the autopsy. global news 24 hours a day powered by more than 2600 journalists and analysts in more than 120 countries. i'm alisa parenti. this is bloomberg. ♪ caroline: this is "bloomberg technology." t-mobile u.s. rose 5% in this session using -- leading a 50 week high. and sprint wanted to approach -- the parent of -- mobile on a possible deal. joining us is -- the timing is intriguing, they are not meant to be talking to each other, because there is a guide order out as they go in for more bandwidth. >> that is correct. t-mobile is involved. but basically the rules bar them from talking to each other, barring them from discussing the

post option market structure and so the carriers take it as a guide rule, they do not want to miss out on any valuable discussion. caroline: why the excitement right now? it was 2014 the last time we saw them looking at t-mobile u.s. and it was not allowed then because of regulation. and they are looking at the business again, why the flurry of excitement? >> we are getting clarity on the timeline of when the option -- auction will end, the beginning or middle of april. and when the quiet period ends, that is point one. and the new regime in washington seems to be siding -- and a republican just took over from chairman wheeler who was

presiding over the stern regulations. and so he is focused on rural broadband, that is his mantra, so if these two carriers can come together and build out the 5g into the rural parts of the country, he could be on board with that. cory: it looks like -- caroline: it looks like the leader of softbank would cover my to get it through the regulators. it sounds like he would be willing to let go of control of sprint as they went for t-mobile. can you remind us of the rationales? >> they just put billions of dollars into buying of 85% of sprint over the last five years and they are concerned the investment will go away. if you look at the western telecom markets around the world, canada is a great example. you have three large profitable

carriers and in the u.s., we have four of them, two of them are smaller with lower margins and two of them very profitable, so do we need to be in a four player market? he sees that as possibly, we need to go to a three player market so these three companies can be sustainable in the long term with profitability. so, he might say, i will lose control right now to earn the return on my investment in the long term, as opposed to a going away. caroline: we will be following this story closely. thank you. and anticipation is growing first not -- for snap's ipo, and they are releasing a video in a roadshow to investors. earlier, to reporters joined me to discuss snap and other key headlines grabbing our attention. >> investors will come into the roadshow and the first question will be, what are the things on the market already out there that it can compare this to make sure valuation is right and the stock is priced right.

and snap it is saying, we are different, we cannot be compared apples to apples. we do not have plans for international growth and we do not really want people on our platform to have friends as many as they possibly can, we wanted to be a small community and focus on storytelling. and we tell stories in a chronological way. they are trying to explain what they are doing. caroline: it is interesting. it is targeting millennials and we have hauled into that generalization -- honed into that generalization, but there was an element in the video -- nothing about the developing markets. >> they need phones that can handle the videos, so they send those lines that -- lens that turn you into a puppy or dragon,

does require a good connection. so for wi-fi, 4g, wi-fi and 5g. something that comes in the future. this is important to their growth. and what they do, mostly video. caroline: you are following the roadshow, and i want to bring it back to this record high we have seen this week. amazon and apple set a record highs today. out, you cover apple so well. is it the phone? >> after their earnings a couple of weeks ago, they saw a 6% bump on the day of the earnings and a casual $40 billion between friends, a huge amount of money. it is double what snap is expected to be valued at. and it has kept on with growth and brought in the record highs. it is not record market capitalization, because they

have done so many buybacks, there is not much stock in the market. but it is a combination of factors. caroline: and as we continue to see if progress, is there the iphone 8 that could be unveiled, how much must they diebold to the market -- divulge to the market? alex: apple is secretive. the iphone 8, coming before the x, the 10th anniversary of the iphone. there is expectation that it will be -- and because sales have been surprisingly good, that means the value of the apple brand is dividing essentially. people are buying it, based on the brand so if they have a blockbuster product coming out, investors are expecting it to go crazy or get more enthusiastic about it then the last one. they will do good sales.

that is the expectation. caroline: that was some of my conversation with sarah frier and alex webb. coming up, much more from the nba tech summit. we have an interview with the leader of monumental sports entertainment. ♪

caroline: we have been live at the 18th annual nba tech summit all day. the conference where entrepreneurs can kickstart ideas into expanding companies. ahead of the weekend in new orleans, cory johnson caught up with ted leonsis and asked about what he thought about the conference. >> i give the nba a lot of conference. it has become a lot of what the

ted conference is. the quality of the people they are bringing in is super. cory: it is amazing the collection of talent that the nba attracts, all of the partners. you get all the major players that everybody is familiar with. >> and to have everybody concentrated in one place for one weekend is an unbeatable experience. cory: there was talk about more direct connection with fans, i am struck with that and the parallel with draft kings, which you are a part appeared in the acceptance -- part of. and the acceptance of gambling. what do you think that is about? ted: i think indoor sports, nhl, nba, and we just bought arena football league's, because you can track and monitor very clearly, because of the nature of the arena.

and the more we become a big data company, the more attractive we will be to millennials, to sophisticated people who are here about wall street. we want to be a big data company's distribution of that data and content. so going direct to the consumer, we look like those companies now. you look at a sports team, steve ballmer i believe played -- paid $2 billion for the clippers. just like a big software company, we have 20 year deals with the sponsors who have built in 3.5% increases. we have suites on five-year contracts. we have annual contracts, and we

renew at 95%. >> it is key to us. we pride ourselves on being a multiplatform company to watch our games on cable, download them from monumental sports network, and have more touch points to our teams. [indiscernible] cory: part of that? ted: i believe sports is the great convener. you sit behind a screen and you are watching the game, and now you are interacting and the first application is committing. you speak with friends. and now you are starting to have interest in the outcome of the games and the plays. and that is fantasy. daily fantasy is what really took off. and the next big growth area for the media content and team owners will be gambling.

it is a matter of time. we will see -- we see what happened in europe. we invested in sport radar. cory: what is that? ted: it was a way for integrity assurance, making sure that gaming and the odds were on a level playing field and, the gamblers and the league in europe and in china -- cory: you cannot have the sports books talk to any other sports books. given the success of the league right now, even the d leaugue, you have a team values going up and they are looking for new revenue sources. i cannot think of a reason why there is not an expansion team. ted: right now, it would cut into the media revenues. cory: you are making the case

for another team. ted: but if you brought in another team, the price of the team would have to be over $1 billion. caroline: that was ted leonsis from monumental sports network in and many other titans at the summit. including a ceo that tells us how his company is creating games on track with professional teams. >> what we're trying to do is create a competitive game environment that tracks as closely as possible the actual nba environment, so there will be professional players being paid, there will be salary caps, and one can even imagine the e-nicks. i think that is how it will develop. caroline: now we will go back to new orleans. cory, what a day. you have been speaking with the owners of the golden state

warriors. what have you been taking away? what caught your interest? cory: it is an amazing event, any where goes. but the the in new orleans during mardi gras, without we would come down to the french quarter, right off of bourbon street, to get a sense of what is going on in the city. when we spoke with the owners, they are about business and business is increasing, and it is with technology, and nobody has exploited it more than the golden state warrior spirit as a business, they have --warriors. as a business, they have done a lot through technology, the kind of stuff that he just talked about. it is something they are looking at. and that is what way they were -- what they were talking about at the summit today. caroline: what about the key takeaways in terms of the technologists there? there are owners in terms of

teams, but what about the technology on the ground? we just heard about the gaming element. cory: look, arguably the biggest thing that has happened for sports ownership is the technologists, and the $2 billion to purchase the los angeles clippers, they want to have the value of. but they wonder where the revenues will be to support the $2 billion valuation. i spoke with the owner of the boston celtics about where they will come from and the revenue streams, where they will come from. he said social media. >> sports is a great aggregator and the technology has advanced it, now you get 3-d ingles, you can be on twitter at the same time watching the game, social media. so it has been the number one thing driving it. and now you can get a mobile device that is changing the

landscape where people are checking on teams. sports has become very valuable. cory: so it is an interesting time for the nba. looking at all these places where revenue can come from and it is hard to imagine when you think about the league 20 years ago. i know you have been thinking about that a lot. caroline: tickets me up at night -- it keeps me up at night. you have been sitting with people, a great interview with mark cuban. how is the political environment and the administration affecting these businesses? cory: i think everyone is focused on what is going on in the white house and wondering about this change we have had in the country and how it will lead world policies and what it will mean for business.

one figure of the ownership of the teams is in that business, the businesses do not make much money at all, but the valuations go up. so for tax purposes, these owners want to put these in a trust and pass on the assets that does not create a problem for them. so they can pass on to their children without the taxes happening, so that is something that owners are focusing on. caroline: are they all in it for the long haul? anything expected within the nba, or will we see more tech companies adding to their armory? cory: i think one of the interesting things is the involvement with technology, not in terms of just team ownership and teams changing hands, but the other businesses getting big around that. not least of which e-sports. we talked about that and the massive opportunities happening where people are paying money to watch other people play games. >> you really cannot try to get me to believe people watch me play games electronically, but

250 million people around the world do that. and half the world is engaged in watching competitive gaming. cory: again, video games are a big part of the business and ease sports -- e-sports is a growing stream of revenue for a lot of those companies. caroline: we will see how they capitalized on that. i want to see how you capitalize on your weekend in new orleans. send us some tweets. caroline: that was cory johnson. spacex getting ready for a launch this weekend. it is a supply mission for nasa. details are ahead. this is bloomberg. ♪

caroline: now as we wrap up the show, here are more headlines. it is good news for youtube viewers, google announcing the 32nd advertisement will be killed in 2018. other at will continue to surface the site. and shifting focus to commercial formats that are more engaging for the viewer and advertiser. and ford noticing a problem in self driving cars. the engineers monitoring the ride have been dozing off. now for the will try to solve the issue by removing the steering well, the gas pedal and the break when the car is debuted in 2021. many automakers believe the driver can be counted on to take the wheel is an accident is imminent.

and in this edition of out of this world, a law must says -- elon musk says his company is investigating a small leak on one of their rockets. spacex will be launching supplies for nasa. to mark the occasion, they are using a historic spot for the launch, at the kennedy space center. that is where the apollo missions were launched. that does it for this edition of "bloomberg technology." all episodes are live streaming on twitter. check us out. 5:00 p.m. in new york, 2:00 p.m. in san francisco. wishing you a wonderful weekend, this is bloomberg. ♪

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