in a numeral statement released by the department of justice, sessions said he would see a uniform transition and the agency. the white house says president trump was not aware former national security is a tackle flynn would have to register of -- as a foreign agent for his lobbying work. the trump team was aware of the situation involving the president's top pick for a national security post. president trump is pushing the embattled gop health care plan in his weekly address. he also wants every american to know that action on the health care law is an urgent necessity. medical groups have criticized the plan and many conservatives see it as obamacare light. they pelosi is suggesting fbi director dispute president trump's claim that he was wiretapped by president obama. she says she does not believe the claims are true and james comey should set the record

straight. comey had urged the doj to set the record -- to refute the claims. global news 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. this is bloomberg. " is next. technology ♪ caroline: i am caroline hyde and this is "bloomberg technology." bitcoin crashes after regulators reject an eps backed by the legal boss twins -- winklevoss twins. and why some think the travel ban will steer the talent to china. and the u.s. braces for infrastructure boom and elon musk could land a parking spot

in the middle of the action. we will explain. first, bitcoin crashes after the u.s. securities and exchange commission rejected an application for a coin exchange traded fund backed by the legal klevoss twins.winj it down by some 8.2% since the decision. you have to put it in perspective. this is a volatile asset. bloomberg editor at large cory johnson joins us with more context. it seems to be on a knife edge. what happened? cory: the twins have been trying etf.eate this new eps -- it would give a lot more people access to trade this thing and put more money potentially into trading it but it would also put

money into their pockets. of thending on the size offering and the change over time, they would have been able to go into the bitcoin market and acquire actual bitcoin as a backstop to the proxy. bitcoin trades around the clock and sold off at crazy. they are off about 23%. it was crazy trading, very actively trading. when it turned around, it is down by about 8% now. a big surprise for the bitcoin community. caroline: that shows what it has done anyone your basis. -- in a one-year basis. how much euphoria was bit into this asset about the etf? not so much about a fundamental belief in the value

in terms of the data they are trading, it is very volatile. it is not a very deep market. when you blow through a couple of dollars in the market, you see the price drop a lot because that are for sale for bitcoin are below the current price because the market is then viewed they were hoping the etf would provide more liquidity to the marketplace. ftc did not see it that way. most bitcoin trades take place in china. it may be a lot of people trying to get money out of china or assets out of china and using bitcoin to do it. caroline: do you think that demand from china is continuing? we find out later where the trading is happening. we are seeing 90% of all bitcoin trading happening in china and

that has nothing to do with the twins. driver?: what was the functionhink, again, a for these guys to create more money. the trading of the etf to all markets. but it would have created a regular stock exchange proxy for this currency in the way there proxies for other currencies and gold and so on. caroline: we will see how it pans out. that was a cory johnson shedding light. the largest u.s. jobs figure delivered a surprise beard 250 5000 jobs were added last month in the united states. the unemployment rate fell to 4.7%. games that -- gains come from construction and manufacturing. many are wondering if the momentum will keep up,

especially in the tech sector with growing reforms on the h-1b visa. from new york, jake shorts and my guest host, david kirkpatrick. thank you for joining me. it is hard when you go into payroll on the bloomberg, it is hard to show an illumination appeared jobs are pretty flat. jake, give us where you think technology is in terms of demand and supply. we are seeing a massive secular increase in the demand for people with tech skills. that has been going on for a while and is continuing at a very healthy pace. i think in that context, what we are seeing right now really in the last six months or so is companies waking up a little bit that because they have such a

demand for tech talent, and frankly there is a limited supply, they are aggressively working with companies like ours to think of alternative ways to generate the talent. whether it is radically reskilling existing employees or alternative pipelines of talent. for us, that is all part of this overall secular trend. less to do with any immediate moment of the economy and more to do with what is happening with the economy overall. into the need for retraining. david, i want to bring you in on will -- on what you are seeing in new york. there is a demand for retraining and it could be putting the upkes on the h-1b visa built more talent in the u.s.? i think there is demand across the board, and it contradicts the tech industry

meme that automation is destroying jobs. i think there is a lot of jobs. it will help americans with tech skills. on the other hand, it will hurt tech companies, which may impair their growth and may long-term impair american jobs. that is not a positive thing in my opinion on balance. i think this month the month change in jobs will not be affected one way or the other by tech. i don't pick you can identify it in that way. but i am an optimist about text ability to create jobs. as jake pointed out, if you have skills, you are in demand. jake, you have 70,000 students, but not just in the united states. can you tell us about it more about how much people are being put off coming to the united states to work?

i would say, we have gone to these other cities because there is a global community of people who share a passion for their work and life. those people still exist and they all crave a certain level of mobility to be able to study in sydney and come to new york is a perk of being part of the general assembly immunity. there is no doubt with the recent travel ban news as well as an overall difficulty around visas, that- around will affect the amount of traveling people are willing to do. we view it as a net negative. caroline: david, weigh in here. techou hearing some of the

giants are doing hiring elsewhere rather than trying to navigate the visa policies? toid: i think they're forced do that or hedging themselves to prepare to do that as needed. this is a global situation. companies outside of the u.s. are developing research facilities in the u.s. because you need to get talent where it is. there are pockets of excellence in various countries and we have an extremely large number of them here. i think beyond that, some tech companies are even contemplating , would they have to move their headquarters outside the u.s. under certain future circumstances if we become more and more xenophobic and cut ourselves off from the global economy? thickly that is not imminent, but i don't think it is inconceivable. caroline: jake, is it now the time to start expanding across states in the united states because you will need to retrain and retool those already in the country, or is it time to get global? jake: we are already global and

we believe in a global story. the we are definitely in a moment and a movement right now where corporations are waking up to their opportunity and obligation to think about their own role in workforce development. we're spending a lot of time and energy and seeing a lot of growth in our very close partnerships with large, successful corporations, helping them rethink how they are going to take almost obsolete employees and reskill them to make them incredibly valuable. we are already seeing tons of activity happening and we think there is more to come. sho -- schwar z, thank you very much for your time. the rest of the country is a watching as president trump's immigration reform takes place -- takes form. baidu about ceo of

this. >> there is the perception that it is anti-immigrant. have -- youf you get a pure since the china makes global an effort toward talent in china is willing to accept the responsibility is a large economy and a fast-growing economy. willnk a high growth rate generate a lot of opportunities and people naturally want to go to markets where there are more opportunities than elsewhere. caroline: we will bring you more of our exclusive interview with baidu ceo later this hour. still to come, president trump promises a trillion dollar infrastructure plan and elon musk could win big. this is bloomberg. ♪

caroline: the $1 billion deal to -- has fallen apart. aldridge industries has terminated the sales agreement in the midst of a lawsuit, saying the chinese conglomerate did not make payments on time. reportedlyal fee is close to $25 million. this is in addition to what wanda paid to extend the closing date. it would've been their first foray into u.s. television production. now, the legal feud between maxlus and cinemax -- zini

heats up. claiming heloyee is is owed. -- determined that oculus executives violated a nondisclosure agreement. stock options beginning to trade on friday. traders will be able to place bets for what they think a share will trade in the future. cory johnson joins me to dig into the terminal. it is interesting, the numbers came out and this is a way of betting on future price moves. not as much appetite is previous ipos. cory: just in terms of how much option trading there will be, it

is not as all in. what we saw from snapchat was pretty decent volume for the first day of options, a lot less dovish compared to -- a lot less compared to linkedin and twitter. caroline: also, what was notable about all of this was the activity seems to be largely on options? is that bearish bets? cory: exactly that. a lot of the traders will be long and short with different prices over different time. periods.ent time you can kind of see what the sentiment is a clear way. they won, we saw three to one

import volume versus call volume. people taking options and that's , some as near as next month and some as far as four months from now that it will declined substantially. facebook clearly saw significant all in -- options points on day one. trading glitch on nasdaq. is something we usually see? cory: i think it is more about the valuation itself. is seeing sohe ipo much involvement in the market, they want to hedge off of those positions using support options, it is quite common. it is not necessarily a bearish bet. but this company, without profits and structure and risk around, i know people are wanting to that against it. caroline: cory johnson, thank you. coming up, we tackle the biggest tech headlines of the week including the latest on wikileaks ♪.

caroline: wikileaks dropped another bombshell this week by publishing thousands and thousands of cia files. it highlights the potential vulnerability of devices. mark milian and eric newcomer about this. >> wikileaks was the source of confusion in this data dump, where they essentially made people think that you can hack into whatsapp and facebook messenger, which was not really the case, it wasn't contained at least in this data dump. what it did show us is that the hack intoe ability to virtually any consumer electronic device out there, any type of phone, computer or even a smart tv where they can tap into it and listen to your living room.

caroline: companies have already been speaking out, saying they have sorted it out and samsung is saying we are listening and dealing with it urgently. respondedlicon valley to this, eric? it is not that shocking that if they can get on your phone they can understand a lot of what is happening. i think there is a lot of fear initially when encrypted pps or compromise, but when the cia gets on your phone, it is like you are in trouble. caroline: i think it was important, it was slightly they managedthat to decrypt encryption, that was not really the case. you: they can see whatever can see. if you can see the messages on your phone, they can see it. it is not the government's ideal

way of hacking into these messaging applications. do the phone to networks and see everything, but it does not look they are able to do that yet with these apps. the tension with washington and silicon valley probably goes on as we see that relationship a little bit stressed. eric, i will talk about some stress. we saw stress in a startup a little while ago, none other deciding notuber to be on president trump's panel of advisors. where do we start this week? the mea culpa has been answered. the ceo said he needs leadership help, what does that mean? it looks like they will hire a coo, and recruitment

help. somebody that travis could see as up year and be the messenger for the company that he has been unsuccessful in delivering. caroline: are we hearing names being circulated as to who could be that person? people talk about disney's old cfo, but i don't think there are specific reports is a have talked to this person and this is who they are considering. i think it is premature for that. caroline: mark, i say where we start with uber, because there has also been an interesting basicallyt they have getting away from authorities. they are able to put up a fake that help the app

certain individuals. that has been taken off-line. mark: there has been a parade of that news, one of which is this ball news. they said they were no longer target regulators and law enforcement officials with this program. they said they plan to keep it because they use it for other suspectuch as if they if someone is going to do harm to a driver or otherwise violate ,he terms of service agreement with in uber, they will use the system to deceive them so they think they are on the system when they are not. eric, as a key guy who breaks the news, how are they reacting? storm, a perfect nightmare scenario? pr disasters, but having them all in a short amount of time. think the morality it is probably the most damaging

effect. some impact on their business, but the other controversies have not have as much impact on usage. but they have these all hands meetings, and it's like to see -- the ceo is asked to cry every week. these employees could work anywhere in the world so you have to provide a company where they go home to their family and they are not asked why you are working for the bad guys. and eric mark milian newcomer. still to come, president trump thomas is a trillion dollar introduction fund. that is something that is on musk is watching closely.

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alisa: i am alisa parenti and you are watching "bloomberg technology." president trump is congratulating house republicans for what he calls their diligent work to repeal obamacare. he says replacement is not far away. he spoke after a meeting with

g.o.p. leadership. president trump: this is the time we are going to get it done. we are working together. we have great results. we have tremendous spirit. i think it is something that is going to happen shortly. alisa: the e.u. is reminding prime minister theresa may how tough the upcoming brexit negotiations will be. a series of interviews and leaked documents show leaders vowing the e.u. loses more than it gained. germany says the e.u. will not grant many concessions. even ireland wants the u.k. to pay an exit fee. president vladimir fitton praised the close ties between the russian and turkish military's today as he hosted the turkish president. countriesbetween the were strained after turkey shotgun he russian military jet in 2015. both nations have brokered a cease-fire that helped reduce the scale of fighting in syria and cosponsored talks this year between the syrian president's government and the opposition.

greek's main opposition party is warning prime minister alexis tsipras it will not bail out the government. creditors are demanding more austerity measures. we talked with the party leader. >> we are not going to vote for those. we made that very clear. we feel these fiscal measures are at a cost that greece unfortunately has to pay for the incompetence of this government. alisa: nigerian president returned to the country after taking medical leave that lasted a month and a half. the 74-year-old former military dictator remained out of sight for weeks with anxiety rising steadily across the country. he has yet to disclose his illness. in 2010, the countrymen into paralysis when a former president died in office. in asia, the impeachment of a south korean president opens the door for a reset in the north

korea and china relationship. stageurt set the for elections in 60 days. theyeading candidate -- also may rethink the the climate of the antimissile system china opposes. malaysian police have formally identified kim jong-nam as the victim of a fatal nerve agent attack. he was the estranged half-brother of north korea's ruler. the north has refused to acknowledge he was the victim of that attack. global news 24 hours a day powered by more than 2600 journalists and analysts in more than 120 countries. i am a lisa parenti. this is bloomberg. more "bloomberg technology" is next. ♪ caroline: this is "bloomberg technology." i am caroline hyde. this week, we have been focused on infrastructure after president trump promised $1 trillion in public and private

financing. one company that stands to benefit from such a large investment could be tesla. we know the c.e.o. elon musk is advising the president on the matter. joining us for more is the u.b.s. analyst who recently wrote a report on the cost of building out the electric vehicle charging network tesla needs. also with us david kirkpatrick. fascinating report you put out. $8 billion is the price tag. do you think we will have an efficient infrastructure empowering the electrical vehicle? >> that is the high end of the range. we provided a range of $2 billion to $8 billion. in the low end of the range, about $2 billion. minutesabout 30 for a charging station. the extreme scenario is about four minutes woodward -- which

would match the convenience of a gas station. caroline: put it in perspective of the amount you see coming in terms of capital investment from tesla. billion to $8 billion a significant amount? >> quite frankly, it is a drop in a large pool. that $2 billion will occur over years. i think people are focused on the model prelaunch. we are highlighting in our report that when the model 3 gets out, you will need more convenient for consumers in terms of those who want to go longer drives. all of that will mean higher levels of capx. casper remains a top concern. view you onknow you musk and tesla as a positive force in the u.s. economy.

are we likely to see this investment coming to a good end? >> i think it certainly helps all of us that anybody is making these investments. the numbersersed in more than me so far be it from me to say these are brilliant moves for tesla. i would say he is also predicting, his targets would be for the stock to drop by one third, which is a lot. you could counter his argument with an overvalued stock, at least they have the ability to raise more capital with that currency that can help them pay for these investments. positive forare the country. olin, respond in terms of the price targets on tesla and the concern you have on the overvaluation on the company. how much support has there been for the share price by the relationship being built between washington and elon musk? >> i think that might explain

some of the recent run in the stock. i don't think there was any fundamental recent postelection for the run. i still believe when i look at valuation, i am conscious. i am forecasting a significant decline. company will probably burn about $2.5 billion the first half of the year. close to that cushion. at what point will the market still be willing to issue capital to them if they continue to burn for cash? caroline: david, it has been fascinating to watch the tight rope elon musk has walked and comes to balancing his investors' needs, the public's an evernd still keeping closer relationship with donald trump. >> there are a lot of things that are amazing and fascinating about elon musk. the company almost went under and was saved by the u.s. government. the sentiment toward what they

do in terms of electric vehicles having such a pro-environmental mindset has certainly assisted them the way the public thinks about these issues has to mislead benefited them. i think it is one of the more encouraging things about the trump administration that people like elon musk are somewhat able to whisper in the ear of the president. we need people with his faith in tech and the need for real contemporary infrastructure, not just bridges and airports. but we need more digital infrastructure. ev charging stations is the kind of infrastructure this kind of country needs. caroline: colin, give us the catalyst for the price target you have on $160. what do you think sparks the sudden selloff? >> i think i look at it as we go into their near-term, we are

very concerned about cash burn. there is a risk to the model 3 delivery target which is aggressive. one thing a lot of bulls are not focused on is what the profitability will be when it launches. there is a big risk. the economics are challenging. long-term, you have to realize there is a lot of competition coming. are going to be launching ev's. competition will intensify. our survey work has indicated a lot of consumers will continue -- consider those brands highly. i think it is getting very tough. caroline: we will come back to you to hopefully get your viewpoints along the way. colin langan, great to have you on the program. david sticking with me. the fitness startup is seeking million at least $120 and evaluation of $1.2 billion achieving unicorn status.

they sell $2000 stationary bikes. carol massar spoke with the c.e.o. about his funding plans this week. carol: ipo this year? >> no. carol: because? the best looking to do fundraiser in the next couple of months that will allow us to be as aggressive as we want and take our time considering the public markets. throw: next year? >> maybe. i read something about a $10 billion valuation in five years. is that real? >> i would be disappointed if that were not real. it starts to be on the order of magnitude of what we are seeing with the opportunity. i think that is on the low side of where we see the business going in the next five or 10 years. caroline: you can catch the full interview this saturday on the best of bloomberg technology along with more of our best conversations of the week.

coming up, we had to beijing for an exclusive conversation with the baidu c.e.o.. how it is attracting international talent and how it plans to commercialize a.i. that is next. this is bloomberg. ♪

caroline: the c.e.o. of china's largest internet search engines as the country is more open to global talent than ever. spoke to tom mackenzie about how the trump administration immigration crackdown might benefit tech companies in china. >> i think right now, there is the perception the trump administration is kind of anti-immigrant. , if you listen to the

president's speech, you get a clear since china is more open than ever, especially for global talent. in china is willing to take on the risk is a large and fast-growing economy. in fact, i think a high growth rate will generate a lot of opportunities. people naturally want to go to a market where there are more opportunities than elsewhere. in chinese, we generally say people naturally go upward and water naturally flows down. it is just like that. but in the past, china was not a country known for embracing immigrants, global talents. there are a lot of policies we need to improve. we need to also make it more clear and let more people know that china welcomes all kinds of

talent from all nationalities, cultures, backgrounds. >> what steps will you be taking as the head of baidu to attract that talent? it is a fierce battle globally for that tech talent. i looked on your website. you had at least a dozen posts available trying to recruit engineers in the u.s. what steps will you take? >> we already have a research center in silicon valley with more than 100 scientists and engineers. we are already attracting a lot of talent over there. in china, we have more than 10,000 engineers. i think great people attract greater people. we already have a very good talent pool. that is one thing. the other thing is china is a large market. in the age of a.i., i think size matters. when you have such a large size, you can try a lot of things. problemsnter new

before anyone else encounters them and you try to solve it. you have lots of data. smart people always have ideas. they have lots of ideas. platform they can try it on. let's take 1% of our traffic. what does 1% mean? it means millions of people who speak the same language with the same culture. it is very hard to find this kind of scale anywhere else. you can do great things with this kind of scale. >> more broadly, how concerned are you about the potential are rising trade tensions between the u.s. and china and applications for companies like yours that operate in both countries? trade worries are for everyone. it is so clear. politicians are not just using that as a bargaining chip to try

to get more. they all understand it will hurt everybody. i don't like that. speaking of baidu, we have research facilities in the u.s. with jobs and we pay taxes. we don't have a lot of revenue there. if something bad happens, we are not the ones who get hurt the most. great think there are communication channels between the u.s. and china, both in the private sector and in the public sector. the possibility of a misunderstanding is kind of low. each side tries to find the right balance. it is a give and take, it is dealmaking to me. caroline: that was baidu c.e.o. robin li speaking to tom mackenzie. much more that exclusive interview coming up including his bullp -- fold plan for the

driverless car division. this is bloomberg. ♪

caroline: baidu's focus on artificial intelligence fits into its dominant insert. the company also plans autonomous cars and joins the race to develop autonomous driving and bring it to mass production. tom mackenzie spoke with baidu c.e.o. robin li in an exclusive interview. >> there are lots of applications that can impact people's daily life. the most obvious one is research. a.i. transformed search before any other industry. today, you can use search. you can take a picture to find what kind of plant is that. you could not do that five years ago. that is because of a i you use voice recognition. this can be extended to many

other areas. for example, if you go to the baidu campus, you go through a security gate. baidu employees do not need to use their badge. they can just walk through. our camera will automatically recognize their face and let them in. think about that. it can be applied to many other scenarios. for example, when you go to the airport, you go through the security check. there are lots of hassles today. that is no longer needed when you have a.i. technology in place. wherever you go, when your i.d. needs to be checked, it will be checked automatically using your face. you do not need to carry your i.d. or a badge around. you don't need to remember a lot of things. it is going to be very natural for people. >> you have invested in a.i., vr companies recently.

are you planning any more acquisitions this year? >> i think our case of acquisition will be roughly the same. i think there are always opportunities. there are always good entrepreneurs who do good innovations. if we find a match, if we find synergy between baidu and other companies that is strong enough, we will make a net position. i do not have a concrete goal or target on where to go or what companies to buy. >> let's talk about driverless cars. you have made progress there. what stage when you consider going it alone? are you always going to be partnering with automakers? would you ever consider building your own cars from scratch? >> i think we are still focusing on making the driverless car technology work. we will worry about the model later. i think more than likely, we will partner with automakers.

they have their strengths. we have our strengths. intooal is to make it reality so people can enjoy the benefit of driverless cars. we will do whatever it takes to achieve that goal. next.k revenue and profit we are not really after profit for this kind of thinking. >> there have been reports you would be investing $100 million in next ev in china. can you confirm those reports? >> i cannot. rumors are always rumors. we don't really come in on these investment deals. >> you have consolidated your car unit. would it ever be part of the plan even to have it on the shelf to spin off the auto unit at some point? would that be a potential possibility? >> that is certainly a possibility.

point when we think it is promising enough and it has reached a stage that running it independently or introducing more strategic investors would make sense, we will do that. right now, it is kind of early because we are still focusing on making the technology, especially the software work. we want to do that first. >> do you have more details on the timeframe? we have heard about mass production of driverless cars powered by baidu systems by 2020, 2021. can you give us more details on the time frame? >> i think you are right. guess of1 is a good when mass production will come to reality. i think we are still on track. there are lots of technologies we need to work out.

we are quite confident that they will come as planned. caroline: that was bloomberg's tom mackenzie with baidu c.e.o. robin li. david, everyone wants in on this. it feels like the world is racing toward autonomous vehicles. china could be a real player here. david: there were so many interesting things he said in the interview. certainly, his faith in self-driving vehicles and baidu's commitment to that was one of the key things. theuestion china ev, chinese-initiated company that operates in the united states already, is going to be a major layer in the industry. this is a global opportunity for self driving and electric vehicles. baidu and china will be major players in it. caroline: is fascinating the dispute that seems to be heating uber seemswaymo and

to be getting hotter. waymo has asked a judge to bar uber from making or using the self-driving technology they claim was stolen. is there going to be some holding back of technology because of disputes? do think generally the move is forward? david: there are so many different labs doing important work on self-driving car technology. of course, there are always legal disputes. i do not think it will hold back the pace of development. i think it has been amazing to all of us how rapidly we have come to the point where we are almost ready to have cars drive themselves in ordinary situations. five years ago, people would have said it would have been a 10 or 15 your path. and we are almost there. caroline: i have to get your view briefly. china seems to be interested in becoming a net importer of tech

talent here. do you think that would be achieved? david: i thought that was the most interesting thing in the li interview. that guy comes across so impressively. you can see why he has led by due to be one of the world's most important internet companies. they are up there with google and amazon. his way of articulating that was new to me. china should start to reposition itself to be a real importer of talent, that is a big, new thing. caroline: david kirkpatrick, great to have you on "bloomberg technology." that is it for this hour. ♪

♪ announcer: from our studios in new york city, this is "charlie rose." good evening. i am katie couric filling in for charlie rose. according to the american cancer society, nearly 1.7 million people will be diagnosed with cancer. over 600,000 of them will die. that is over 1600 deaths from cancer every single day. it is a matter that became deeply personal for me when my husband died of: cancer in 1998 at the age of 42. that was 19 years ago. today, there have been a number of advances in medicine that have