>> is 1:00 p.m. here in hong kong. here's an update of your top stories. south korea has but the military on high alert. live pictures out of soul. the constitutional court upholding the conviction of president park saying she had continuously violated the law. more details within the next 60 days. in china, the outgoing governor said president trump and the fed are among the many reasons for this year's volatility.

saying the yuan should remain relatively stable this year but it is a fairly sensitive space. bhp billiton said it's preparing for new wage offer for striking workers at a copper mine in chile including improvements in several areas. respond to news of the improved offer. global news, 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. bloomberg. hong kong is just getting on a lunch break. this is bloomberg. ♪

caroline: i'm caroline hyde and this is "bloomberg technology." coming up, airbnb's war chest expands. closing on the $1 billion funding round. plus julian assange extending a hand to take companies, complicating an already tense relationship between silicon valley and washington. the snap cello takes a breather as it wraps up its first look at trading. what the street is banking on now. first, to our lead. airbnb raised more than a billion dollars with the stock up about billion dollars. 31 bloomberg first reported its plans to increase funding back in december. airbnb became profitable in the second half of 2016 and expects to continue to be profitable on an ebitda basis this year. joining us is mark, who helps cover the company. mark, fabulous to have you with

us, as ever. they were raising and raising in 2016 and they seem to double the overall amount. how much did we know that this billion dollar close was coming? >> you mentioned we reported in december they had expanded their target to raise about a billion dollars. this is very capital-intensive business, but we had also reported a couple of months ago that the company was profitable for the first time in the second half of 2016 and they are also targeting profitability for this year, which is an encouraging sign for investors as they push ever closer to a long-delayed potential ipo. caroline: where do we think that billion dollars is already going to be put to work? they were splashing $300 million into a canadian company. do we expect more of that? >> you mentioned a luxury retreat, the canadian high-end,

you can rent a mansion or villa in the hamptons or on the coast of florida. they have articulated this vision to be this sort of full-service travel company. right now their main business is really just renting out people's homes and apartments, but they want to add all these add-on services. in november they launched ad on travel services so you could get tours and go pick mushrooms in a forest with a tour guide. they want to do more of that and they seem to be open to acquiring companies to get there. that is one way they could put some of this money to use. we also reported a couple of months ago that they are looking at china this year as a point of expansion. they could do a deal there or they may just need to hire a bunch of bodies in beijing to get that done. caroline: the valuation of $31 billion is pretty hefty. in friday's trading, they were

at a similar election. how do they rank in those terms? >> airbnb is the second most valuable tech startup in the united states, right behind uber. they have been around for almost as long or even a little longer than uber, about a decade. many are saying, when is this company going to go public? as the extra billion dollars on the ground shows, they can hold out on the private market for a little longer. caroline: let's move away from airbnb and more to the upcoming batch of tech ipos that are potentially coming our way. jerry covers enterprise businesses.

wonderful to have you here. let's cast our minds back to how much he's been trying to educate the market. let's listen. >> i think a great company should always be ready to go public because you want to operate your company like a public company. you want to have all the fiduciary duties in place. we don't have any more need for capital. we don't have plans over the next two years to go public. after that, we will see. caroline: is 2017 going to be a good year for ipos? so much excitement built up around the snap ipo. >> 2016 was not a great year for ipos. you see a bunch of public investors not thirsty for tech companies.

there are some companies that could go public in 2017. i don't know about dropbox, but others could go public in 2017. all these companies that are enabling enterprise to move to the cloud, there is a growth secular story around that. public investors want to have access to this growth. they've not had that in 2015-2016, so they are thirsty for a new ipo. caroline: how frustrating is it that companies like airbnb can keep raising cash in the private market, since they will just delay as much as they can? >> it is somewhat it frustrating for the investors and many of the employees who are locked in the shares that many of them cannot offload.

they need to put money down on a house or to get out of the have -- heavy amount of compensation they've had, but uber and airbnb have shown stubbornness to stay private. and the ability to keep raising and raising money. you mentioned snap, it is an interesting example of a company, obviously there was the usual rocky first few days after the initial public offering, but it seems to have been, by many measures, a successful ipo. a lot of people are saying it is probably more of an outlier and they are looking more for the other company you mentioned, it's more like a business software company, to more set the standard of opening the floodgates. cisco swooped in and bought another company at the 11th hour.

caroline: so enterprises going to be hot. what are the pulls and pushes about whether they come to the market in 2017? perhaps they don't want to have the overbearing investor base. >> there are different reasons to go public. for an enterprise software company, they kind of want to go public. if you are a large fortune 100 company taking odds on a new cloud service, to understand how solvent and liquid you are, it gives more certitude around your future as a vendor. for an enterprise software company, their buyers don't care if your public or not. they will typically go ipo

earlier than consumer companies. on the consumer side, the need to go public is less related to the customer base but more for the other reasons you just mentioned. caroline: i want to get your take on the president that's been set. to see a company list in the u.s. with no shareholder voting rights whatsoever, is this something we will see again and again? >> i think it is more a one-off. it's not very typical. there are a handful of companies like facebook or google that has the ability to do these super voting rights for the founders or shareholders. the typical listing still looks pretty vanilla to me. caroline: mark, thank you very much for joining us. jerry chen is sticking with me. the wikileaks founder julian assange offered an explanation

on why he put thousands of files on the internet this week. >> the cia developed a giant arsenal of what appears to be the largest arsenal of trojans and viruses in the world. it attacks most of the systems that journalists and people in government, politicians, ceos and average people use. didn't secure it, lost control of it, and then appears to have covered up that fact. caroline: he is also offering help to the tech companies reportedly vulnerable to the cia tools. more on that with a roundtable of experts later this hour. coming up next, we dive into the infrastructure in this. why some are saying it's a sector ripe for disruption. all episodes of bloomberg technology or now live streaming on twitter.

this is bloomberg.

caroline: president trump has called on congress to find a trillion dollars in private funds for certain projects. with that in mind, we've been drilling into infrastructure all week. the infrastructure industry is one that's prime for -- disruption. our guest jerry chen invests in this space. this efficiency are true disruption we are about to see? >> i think it is both. if you look at construction

labor over the past 10 or 20 years, labor productivity stats versus every other vertical, construction has not been increasing productivity the past few years. number two, we are seeing construction companies used technology like drones to measure progress, gps to drive tractors. they are using these technologies to build bridges and roads faster and better. caroline: we saw the first 3-d printed building in less than 24 hours. i'm not sure i would want to live in it, but it is a step forward. you mentioned drones and gps. is there any element you think will be the first to be focused on? >> one company where involved in is focused on labor productivity. it attacks the number one cost driver in construction, labor. you have 1000 people on site, and frankly, that productivity has not improved. labor productivity will be a

largest area of improvement for construction companies. caroline: what about some of the other areas of the portfolio companies you have. they are separated into areas that come into construction. >> you think about infrastructure, the other area needed is the formerly so-called information superhighway. investment in cloud infrastructure, telco infrastructure is important. we are investing aggressively on next-gen infrastructure for the physical world and for the virtual world as well. caroline: what is the opportunity from a $1 trillion investment?

is this a long-term bet? >> we're looking at different verticals from mining, construction, construction has lagged i.t. spending. i was talking to a construction executive of the years ago and he said the first thing that goes into every construction site now is wi-fi. think about that. before they lay the first brick, they put in wi-fi. everyone needs snapchat or something. wi-fi is the first thing that goes in. that got me thinking. once wi-fi is everywhere, what can you do? caroline: this is not just the u.s. issue, this is an international issue. we are seeing infrastructure spending in the u k and across europe as well. how global are these companies you're looking at?

>> it's a multi-trillion dollar industry across the globe, not are industry across the globe, not just the u.s. most of the companies we are investing in start locally around california or around the united states. construction centers take the technology global. you can start building here and take it to the middle east or asia. you bring the best practices across the globe. caroline: and the people founding these startups, you must have had to be on the ground and been building to understand some of the issues that arise, where the pain points are. are they technologists or are they builders? >> you have to be both. to be a founder, you want that unique intersection of expertise

and have the entrepreneurial spirit. two cofounders were ex navy veterans who worked in construction and they had military ground. they had that entrepreneurial dna. you merge it altogether and you have a company attacking the trillion dollar market. caroline: drones and the like, 3-d printing companies, they are suddenly realizing where they can expand into, or are they also coming from a construction perfect storm? >> i've seen some of them -- they said they can use drones to measure construction and start there. others just throw everything against the wall and realize that construction infrastructure is what is working. it works both ways.

it sometimes more efficient if you know the domain first, but if you picked the wrong one, you are stuck there. caroline: jerry chen joining us, thank you very much. still to come, a 50 pound drone falls out of the sky, that could be pretty lethal. research says they are testing these kind of accidents on crash test dummies. that story is next. this is bloomberg. ♪

caroline: as drones become more commonplace, so is the chance of one falling out of the sky. researchers are studying how to make them safer, with the help of dummies. check it out. >> what is the risk of injury if a drone impact occurs?

is it serious or fatal? we head the world's largest injury biomechanics research. we do a lot of research on brain injury, concussion, and skull fracture. it's all about head injury risk. what we have is a hybrid test dummy. the same dummy used to certify your car. we use that to get an idea of the interaction between a drone and human. the aircraft are flown -- horizontally at maximum speed. once the impact occurs, data is gathered to measure the g forces. we look at quantifying injury risk and we look at acceleration and load. we can take the acceleration and compare those to other research we've done for other safety and

the military and that's how we determine injury risk. if you look at cars and automobile safety, we put an incredible amount of work and time into making sure they are safe. we are hoping to have the same sort of analysis for drones. you have some sort of parachute device, if it's not rigid and breaks apart on impact, that will reduce the energy transfer. there are a lot of things we need to better understand to help the industry make safer drones, and that is the goal of the research. caroline: that stories featured in the latest edition of bloomberg is this week. our reporter joins us with a little more update on the peace. we want to understand the regulatory environment around this as well. the faa has been doing a lot to help ensure that drones come in in a safe and standardized way.

>> right now the federal aviation administration is trying to write the first basic rules that will allow widespread flights over human beings, over crowds of people. the rules are a little bit on hold, they are trying to figure out how to deal with security concerns, like how to police know whether a drone is legal to be over a crowd or not. it's also caught up in the trump administration's go slow approach on new regulations, but they're working feverishly to come up with the standards right now. caroline: in terms of how the researchers are helping align themselves to where standards must be set, i can think of the big companies, if they're going to deliver your new football shirt to you in the outcome you need to be sure they are allowed. what is the research being done? >> the whole point of the researches, this is such a new

industry, people don't know what is going to happen in a worst-case scenario. you have millions of these consumer drones being sold to people. what happens if one falls out of the sky and hits a child in the head? what they're trying to do with these tests is to figure out what the parameters are. once they do that, as we heard in the video, then they can start trying to figure out mitigations. put padding on, cover the propellers, build them out of materials that break apart so it won't hurt as much when they impact, etc. that's really the point of the research right now. caroline: have there been any incidents of people being hurt so far? >> it's hard to get a handle on the actual numbers. if you go on youtube and online, there are scores of cases. there was a tragic story in the u.k. last year or the year

before of a toddler who lost an eye. there are a lot of them out there. caroline: thank you very much. you can check out the full story on bloomberg.com. stick with us. julian assange is next. this is bloomberg. ♪ ways wins.

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>> i'm david ingles. here's an update of the top stories. the military on heightened alert after the constitutional court upheld the impeachment of former president are. the cabinet meeting -- is meeting. the acting president at the moment saying an election must be held within the next 60 days. >> these illegal acts are critical. unanimouse the opinion of the judges.

we dismiss president park. >> bloomberg has been told toshiba's nuclear unit will restructure the business after a $6 billion write-down. a team is looking at operational changes. in singapore, developers -- there is a snapshot there. the government said it is easing rules on the property market. hit the highest since july of 2015. global news, 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. this is bloomberg. a quick check on what else is happening across the markets.

we are awaiting the u.s. nonfarm payroll numbers coming across later. weaker yen is boosting the nikkei up 1.5%, the front runner in the asia pac region. cell downte a bit of before we heard that news that the court would uphold president parks impeachment and then a strong reversal on the news. some solid moves coming through from some of the korean stocks today. , the hongfairly flat kong market coming back after slow down this morning. some weakness coming through in the energy players. crude oil below $50 a barrel. australia has finished higher by .6%. currencies, the in focus.

the big cell down coming through in the dollars on the news that president park has been impeached. asia's best-performing currency. this is bloomberg. ♪ caroline: this is "bloomberg technology." airbnb raises more than a billion dollars in its latest funding round. that raises the valuation to roughly $31 billion, according to people familiar with the company's efforts. we first reported the plans to increase funding back in december. the company has raised more than $3 billion to date and just turned a profit for the first time in the second half of last year. another top story this week, wikileaks publishing nearly 9000 files over the cia's cyber spying capabilities.

now julian assange says he will work directly with tech companies to help close the gaps in their security. he spoke in a webcast earlier. >> hearing the call from some of the manufacturers, we have decided to work with them to give them some exclusive access to additional technical details that we have. so that fixes can be developed and pushed out so people can be secured. caroline: joining us to discuss what this does to the relationship between silicon valley and the u.s. intelligence community is our bloomberg reporter who covers this from washington. also eric o'neill with carbon black. he is a former counterterrorism operative for the cia. -- for the fbi. the cia has not commented on the this leak, but

they have been making some statements. >> we have been hearing from the cia. you don't usually hear from them on breaking news story, but we've been getting statements yesterday and today. today they said he's not really known as a bastion of integrity. that was pretty interesting. we've also heard from them saying the american public should be deeply troubled by any kind of leaks wikileaks may be putting out that could compromise u.s. intelligence in protecting the american people. while they've not quite confirmed anything, they've come out publicly to us telling us directly that they don't stand for any kind of, anything that would compromise the u.s. ability to gather information. they have also tried to make clear that they are not allowed to do electronic surveillance on u.s. soil.

so you see them pushing back at some of the accusations we been hearing from these disclosures over the last couple of days. caroline: julian assange weighed in more on the webcast. he felt it was a trojan horse from the cia. have a listen. >> the cia developed a giant arsenal, what appears to be the largest arsenal of trojans and viruses in the world that attacks most of the systems that journalists, people in government, politicians, ceos and average people use. did not secure it, lost control of it, and then appears to have covered up that fact. caroline: eric, accused of losing control and covering up the facts. how dangerous could it be if the cia did indeed leave these vulnerabilities open for others to find as well?

eric: we are saying vulnerabilities, but the real name for these things is weapons. it's one thing to release the tools, but when you release the actual vulnerabilities, those can be weaponize. we've seen that within 24 hours of discovering a new vulnerability, especially if it is spread around the world, then attackers will use that vulnerability, and 99% of the major breaches that have happened happened because of an unpatched vulnerability. if wikileaks actually wants to be responsible for once, then they need to take great care and how they release these vulnerabilities. caroline: the fbi are looking into how wikileaks came across this information. >> right. wikileaks has told us that this trove of code and malware and security vulnerabilities was circulating for a long time among government hackers and

contractors. they say one of those people handed the content over to wikileaks. the question is, who could that have been? the fbi and the cia will be making a list of who those people are in trying to find who that one person was that turned over the content. that's something we will have to wait and see if this is going to be happening, with an investigation into this. caroline: eric, you mentioned if wikileaks was going to be responsible for once, it should be careful in letting the tools be known. shouldn't the cia have been just as responsible? eric: the cia is responsible for conducting espionage and for gathering information all over the world in order to protect the counterintelligence of the u.s., to protect us here. so there is a national security reason to protect the information and to be able to

use these tools. espionage today is not conducted by sneaking into buildings and stealing files. it is conducted through cyber attacks. so there is an authentic capability that every single nation uses. i do agree there is a problem when the cia loses the information. caroline: nafeesa, what is it like on the ground, what are people saying within the government and the white house about how the cia should potentially have reacted and acted? >> we've not had any confirmation that this content is verifiable, so no one has quite said that yet. we heard from sean spicer at the white house saying this is very serious. we've heard resident donald trump previously say that he loves wikileaks, kind of back stepping from those previous comments.

we have also seen the fact that on the hill, we've heard from john mccain saying this is extremely serious and we need to look into this and it puts american lives that risk. you have on the one hand some discomfort around how did it get out from the cia but also will it now compromise the u.s. ability to gather intelligence and information as well. caroline: eric, this is a strange relationship between the tech giants and washington at times. we go back to the san bernardino shooting and the fact that they don't like to allow backdoors into their encryption. how does this put the onus on the relationship going forward? eric: the government needs to make some strong national security decisions about what they need to provide to the tech companies. if the cia did lose this information and they knew that it proliferated and certain hackers were using it, i would like to see an earlier

disclosure and worked with tech companies to strengthen our to -- our defense, because that is security, protecting people here in the u.s. is national security, especially something as important as a cell phone and our data company which is where we put everything we do and say these days. caroline: and even more so as the internet continues to grow. thank you for all your reporting. moving on, one stock we are watching is fireeye. the ceo says the company has achieved consistency in its sales leadership. he reiterated they are not opposed to making acquisitions, although it's not part of the company's turnaround plan. snap wraps up its first full week of trading, and it has been quite a wild one. what we have learned about the company's projections, next.

this weekend, we bring you our best interviews from the week, including our exclusive conversation with sebastian thrun. tune in this saturday for the best of "bloomberg technology." this is bloomberg. ♪

caroline: facebook is not done taking a page from snap's playbook. messenger just added a new feature called day. it allows users to post videos that disappear after 24 hours. if it sounds familiar, it's because snapchat created story. over the past few months, features have been revealed that

resemble it. instagram has it and also calls it story. it's a move in order to keep up and prevent them from shifting their attention to a competitor's app. is it the sincerest form of flattery? how does it impact snap's future as a publicly traded company? shares closed down just .5% and it is down over 7% since the ipo closed. snap's stock has been taking hits in short-sellers' bets on future declines. joining us is an analyst for morningstar who has labeled the company as overvalued. this is like a triple strike we are seeing from facebook. all of their messaging apps taking a leaf out of snap's book. how harsh is the competition? >> it is very harsh, we think over the next few years,

snapchat has to continue to invest in r&d to continue to invest in sales and marketing of of its products, in order to obtain additional users and generate user growth and add revenue. it's going to be tough competition for snap. caroline: 158 million daily active users. they seem to be trying to say on the ipo lead up that perhaps they don't need to grow that much quicker. it's the addiction they are ready have to the app. do you buy that? how much do you want to see daily active users growth? >> we want to see that at a much higher rate. and we have modeled it at a much higher rate. we think these guys are going to be successful in generating user growth, but in terms of engagement and interaction and

spending time on the at, there's only 24 hours a day, basically, for users to be on multiple apps. when there is engagement on facebook and other facebook apps, as you mentioned messenger and instagram, it limits the growth opportunity in terms of engagement on snapchat. caroline: it vindicates the business model, the new way of consuming media that perhaps the appetite in the market seems to be more attracted to. >> it is a big market, as snap did mention on the roadshow. it's a large market and growing fast. the negative part of it is that basically what we call the larger companies, the team's of online advertising such as facebook and google, they already have the large user base, especially facebook.

although we are pretty confident that advertising dollars will flow to snapchat, given the features that it has and the innovation that it has in the user data that it can compile, we think still a larger portion of the ad dollars will continue to go to facebook, somewhat limiting growth opportunity for snap. caroline: what about the leadership? some think there's too much control, and there's no shareholder voting rights for those who bought into the ipo. does he need someone to be a clear number two to come up with product innovation? >> in terms of innovation and running the company, in terms of having an environment that is energized with a lot of motivation, we think he is doing a good job. the rest of it remains to be seen.

basically this is where disruptive technology can come in at any time in force companies to change their entire strategy. it remains to be seen how spiegel will react to that. in terms of control of the company, they got the voting rights. let's put it this way. if there is a potential acquirer of this company and they come in and bid on snapchat, or snap, i should say, it gets a lot of doubt in terms of whether spiegel and murphy will actually agree to that and agree to be sold. that could create some problems for shareholders in the future. caroline: interesting. he's saying it's an overvalued stock, but hold it. now to a developing story. the big data company back i intel is working with morgan stanley, jpmorgan, and bank of america.

the company filed confidentially for its ipo. it's planning to go public this year and is eyeing a valuation of about $4.1 billion. a quick programming note, tomorrow it's job stay in the usa and were joined by the director of president trump's national economic town so. -- council. that conversation at 9:30 a.m. new york time, 2:30 p.m. london time. coming up, ski season is underway, but what happens if the snow doesn't come with it? that is next. this is bloomberg. ♪

caroline: a story we are watching, showing fake versions of its app to companies thought to be conducting sting operations. with the intent of ticketing

writers in areas where they were not allowed to operate. the system would cancel rides for fake cars that were not actually nearby. there is a $1.5 billion remake of a resort in new hampshire. plans call for luxury condos and construction of the largest ski area in the northeast. cory johnson spoke with the developer who says he will employ the latest in snowmaking technology, a process that brings the art back to the science. >> the idea is the difference between a cook and a chef. given the same ingredients, the chef comes out with something you can charge $100 for, and that cook is putting out the same thing for $15. the ingredients will be the same, but the way you put them together and manage them means the difference between making great snow and just something that is white. we are taking current technology

and putting the art back into snowmaking so that we make a product that you really want to ski on as opposed to something that is just white. cory: having snowboarded on the east coast and west coast, the snow we have out here is a lot better, a lot different. what are you trying to create? >> you're trying to make a surface to ski on that doesn't make any noise. it feels and tastes like packed powder to the skier. there's a certain density and consistency you can achieve using a little more energy and a little bit smarter technology. at the end of the day, you would like an experience were summoned -- where someone goes skiing and they will say it's just as good as skiing out west, so they will stay here in the east. 15 or 20 years ago that's what we used to do. now we want to combine it with the old artistry we had 20 or 30 years ago and produce more efficiently a really great product.

cory: an interesting challenge are facing in terms of developing properties and selling real estate up there. when you look at the growth in the business, is this something that will be cash flow positive early on, or something that can really grow slowly over a long time? >> we think coming out of the box it will be cash flow positive, but the rope will go on for a very long time. we have decades of building we can go through with the approvals that we have. the exciting part of this is we can build a 21st century resort and keep building it over the next three or four decades. cory: what other things are you doing now that you could not have done 20 years ago due to the technology? >> advancements in lift technology have made lifts better and more reliable, and more efficient as far as their cost to capacity.

things like combining activities at a resort so that you can sleep in the same room, park your car, if you want to go snowmobiling you can do that from the same place you would go from to go alpine skiing or kayaking. i hate to make this analogy, but when you stay at one of the disney hotels, you can go to five or six different lands each day and the family can go in four or five different directions if they want. what we are trying to accomplish is to have something where you can get great alpine skiing, a wonderful nordic spot, go to cooking school, do yoga, and in the summertime, flip those activities with kayaking, boating, swimming, all from the same place and never having to use your car again, so you really have a destination resort. and there are different activities for the whole family to do every day. caroline: that was the american skiing company founder. that does it for this edition of

"bloomberg technology." remember, all episodes are now live streaming on twitter. check us out weekdays at 5:00 p.m.. this is bloomberg. ♪

make or break for march. the u.s. job numbers later today with markets 100% certain of a hike next week. can anything cause a fed flight? the u.s. tenure set for its first run. as eels rise the most since 2009. how will european bonds open? political crisis. the nation faces elections. within 60 days.