during a meeting with carmakers in detroit. he is expected to unveil new plans during a trip wednesday to michigan. meantime, the president and --na's she's in pink capex president may meet next week. they will meet at the metalico resort in florida. washington and other states fighting to block the revised travel ban what a hearing tomorrow before a seattle judge. a complaint filed on their behalf says the ban is unconstitutional. other states joined washington in pushing legal action. the ban goes into effect thursday. senate minority leader chuck schumer is warning republicans that a test to pay for the border wall by the funding -- defunding planned parenthood would fail. a partial government shutdown would begin on april 29.

global news 24 hours a day powered by more than 2600 journalists and analysts in more than 120 countries. i am alisa parenti. this is bloomberg. "bloomberg technology" is next. ♪ caroline: i am caroline hyde. this is "bloomberg technology." switchits the ignition on his stream for driverless cars with a 15 billion dollars acquisition. details on how the deal went down. billion verizon/yahoo! deal almost never closed. we have the inside track on how it nearly got derailed. airbnb goes on the offensive. the c.e.o. says we could see an

ipo in about a year. his words ahead. first to our lead, intel is spending $50 billion for a foothold in the self-driving car market. the u.s. chipmaker is buying the israeli company which makes chips. in the second largest acquisition ever for intel and the largest ever for an israeli company, shares surged on the news. it represents more than a 30% premium of the friday closing price. cory johnson caught up with the c.e.o. and asked why he is shelling out so much money for self-driving car technology now. >> we think combining allows us to have a singular platform for customers. but more importantly, if you look at where driverless is the car manufacturers are

working on 2021 models. you have to build your platform today to be there in 2021 when the models will start hitting the road. cory: what has intel's approach been and how might that change? >> we are already in a large number of autonomous vehicles today. what this does is brings the best of both ends of the computing spectrum for driving together. think of it this way. the car will have two brains. one is a vision brand that will take the sensor fusion, the cameras and combine that and build a view of the world. there is another brain which is going to take that information and drive the car. this puts those brains together into one company and allows us to provide an intake platform for partners. cory: do you expect intel's other businesses to benefit from

this? you talked about how important this was in the world of data. >> there's going to be several flows of data in and out of the car. the first is simply the car seeing the world and adapting how it drives. that is what we call learning data. there will be a data center built that will be driving under algorithms. there's is another set of data that will come out of the car. you saw our investment earlier this year that is augmented towards building these precision maps that have a lot more information. these cars ares going to be able to see the world as they drive around. there is going to be visual data gathered on people on the streets and cars it is passing. all of that visual information will be gathered and used to build information models of what is going on. cory: i'm curious about the

timing of the deal, not just the lead time of automobiles. but for intel at this stage in its growth and where we are in a global sense of technological change and spending. do you feel like you had to get ahead of competitors who might have looked at mobileye is a potential target? >> you bet. we knew this was a hot space, the gathering these technologies in building this platform was important. also, this deal, although large, is immediately accretive to our earnings-per-share and free cash thisfor the

-- could not grow it internally quickly enough and it had to be in acquisition. cory: he is remaking intel into a different kind of company. it is not enough to say we are still the data center. they left room for qualcomm to become a dominant company. i think they do not want that to happen in the car market. the question is, are the margins going to be there? have goodye, they sales on small margins and free cash flow. can that be as profitable as the chip business was until the datacenter? caroline: a key question going forward. the premium is hefty, more than 30%. when you look at what mobileye

is building out for the future, you talk about the management centers. is that where it is at? >> that is a big part of it. you heard him talk about data. mobilized business now is collecting forward and backwards visualization. most devices are not connected. one thing they announced last year was the idea of connecting those and capturing data by the roadside. that is going to plug into these maps that will be needed for semiautonomous and autonomous driving. that is one of the reasons for the premium. withine: does it work well the mapping company bought previously? >> it needs to work well with the mapping system. intel made a moderate investment a while back. it needs to work with the mapping system. it tells you where the car is localized. that becomes really important because you need to know when to turns, turns,ver to make

for your trajectory should be through an intersection. the map needs to be there. this other layer on top of it is where mobileye will really be playing. caroline: qualcomm, are they going to be the ones worrying about this intel purchase? cory: we sort of see this evolution of devices and chips from where they exist now. the notion of what beats things will be doing is dramatically different from what we see today. to the extent qualcomm is already in some cars with acquisitions, i think it is a lot less important. the chips qualcomm has in cars are very low margin. they are dumb chips. they are not a supersmart equivalent that intel is going after. the stuff that mobileye is really cutting edge. qualcomm does not have anything close to that. >> it is huge.

think as you are driving all the competitions -- computations. when you think about how we navigate, we turn right. really you are moving into a lane, making a trajectory, setting your speed. the needs to sense all of those things. the maps cannot be static because they change at all times. that ability to capture all that new data and feed it back into real-time and update those maps is part of what they are buying. it is a bet on the future. the clearly is. caroline: the share price down a little bit for intel today. morgan stanley putting out a note saying maybe they could have used the money better. how much does intel need to educate investor this is the right long-term bet? cory: intel is taking a lot of money to move into what is now a small business. he's thinking about the future of intel.

i think he wants to put his stamp on this company. we are seeing a lot of moves he has made as c.e.o. of intel. the barn back of shares would have been more accretive in the short term. the question is how big the business can be in the assisted driving space that mobileye is so focused on. how big will that business be? and what will the profit margins be like in that business? to this point, the margins on most things in cars are quite small. almost always single digits. .hat goes top to bottom the margins have been pretty weak. their hope is they will get some sort of double-digit high-margin. intel has been used to 60% gross margins. whether or not the automotive industry can provide that is another question. caroline: thank you very much for joining me. and cory johnson.

uber is coming to an. in london. customers are encouraged to switch. the hamburg-based company has moved more than 17,000 drivers who previously used the halo system to the app and plans to start converting u.k. customers this week. c.e.o.up, the airbnb speaks on everything from localization, jobs, and the ipo process. we will bring you the highlights next. this is bloomberg. >> we don't have anything to announce. we are working on making sure the company is ready to go public, and so we have always said it was a two-year project. we are probably halfway through that object as far as being ready to go public. ♪

caroline: a story we are watching. new revelations on the ongoing negotiations screen -- between verizon and yahoo!. the verizon c.e.o. suggested a price cut. tabling theidered deal entirely before the companies eventually agreed to a price cut of $350 million. we are going to dig into all the details and what is next for marissa mayer later this hour. as we heard moments ago, brian chesky of airbnb said the company is halfway through its two-year ipo process. closer topany inches going public, it is trying to improve the economic standing of airbnb launching an economic empowerment agenda aimed to

create more opportunities for those who use the service. speaking at the economic club of new york luncheon, brian chesky spoke about the global job market. >> the change is only beginning. means processes double in speed every two years. it means the next 10 years will change a lot more than the last 25. the next 100 years will change more than the last 2000. the way we live in cities is going to completely change. some change we need to be prepared for. i will give you one example. we have a new president of the united states. i would say the root of donald trump becoming resident -- president, one was global uncertainty in the united states. people feeling they are not better off than they used to be. they are angry. there are different perceived

causes like globalization. maybe there was a real impact on people's jobs. this is a reality. nothingation is compared to automation. will jobs come back? will manufacturing come back to the united states? of course. a huge amount of it is. it does not mean jobs will come back. say in america may as well made by robots in america because that is what technology is going to do. if you look at technology companies, what they are doing is automating. robots will be cheaper than china. automation is a huge thing. oxford did a study that said half of u.s. jobs should be automated in 20 years, will be in 20 years. this study was done two years ago. many of us believe that was a vast conservative understatement on the amount of jobs that will be automated. i think it is important to take a step back and realize that is the reality.

am i just causing fear in the room? is that not going to happen? i think there is so much -- i think it is not an overstatement. many people in tech think it will happen sooner. caroline: that was the airbnb c.e.o. brian chesky. let's bring in the professor at new york university and author of "the sharing economy." this is a fascinating speech given by brian chesky. he tried to reinforce the jobs being created by airbnb, 1.3 million worldwide in 2017, to seniors, women, urban areas as well. is this trying to charm ahead of an ipo? >> i think it is a reflection of the reality of what work in the future is going to look like. i think he put it well. the jobs lost to automation are not coming back. i think seven out of eight jobs we lost in manufacturing over the last 15 years were lost to

automation. maybe one was lost to china out of eight. it is already a significant force to contend with. the model of making a living in the future is going to be capital ownership. you own your own tiny business that you used to generate revenue, perhaps using some a.i. technology. he is positioning airbnb as being on the forefront of what job creation in the future is going to look like. caroline: they call it the economic empowerment agenda. he is talking about the jobs they can support it also the local economies they support by helping tourism. do you think airbnb will be a disruptor, a force for job creation or reduction if they end up becoming a one-stop shop for travel? >> i think they're going to be a force for work creation,

income generation creation. not all of this will come in the form of jobs we are used to seeing. a lot of it will come in the form of millions of people running a tiny business hosting on airbnb. millions of others supporting them. where we have to make a choice of whether we are going to support an economic system that empowers people to take control and create these tiny businesses rather than focusing on the 20th century rhetoric of we need to create jobs. caroline: they spoke of potentially an ipo halfway through the two-year process. ipo next year? >> i think they seem ready. i normally don't feel this way about tech ipo's. i think snapchat went public to early. i think when facebook went public, they went public to early. airbnb is a robust business. they are profitable. they are generating billions of

dollars of revenue. i think the business model is well set. they are already the world's largest provider by many measures of short-term accommodation, 3 million hosts compared to marriott with 1.1 million moves. they are in pretty good shape. they are a healthy business is one of the leaders in their industry. i see no reason why an ipo next year is not a possibility. caroline: we have more to cover with you. stay with us live from new york. uber is taking extra measures to prevent drivers from forming unions. we will discuss the latest battle next. this is bloomberg. ♪

caroline: uber has always discouraged drivers from forming unions. in seattle, it is taking extra measures. it is running advertisements against unionization, hosting

meetings, and sending emails and phone calls to drivers. rune is even an uber podcast in its 18th episode. in 2015, the city council voted to allow drivers the ability to form unions. the legislation took effect in january followed by an immediate lawsuit by uber. a hearing is expected later this month. uber has been in p.r. crisis mode dealing with sexual harassment claims by a former engineer as well as a lawsuit from alphabet and video week showing the c.e.o. criticizing a driver. still with us is the in light of professor -- in why you professor. is it inevitable the drivers look for more rights? can uber continue to fight this? >> uber has a good chance at being successful fighting this because there is a history of lawsuits that prevent contractors from unionizing prevailing. given the current administration

and current climate, it is certainly a good idea for contractors sitting between employees and independent contractors. uber's drivers are not really employees or independent contractors. they are somewhere in between. i think it is a good idea to give them collective-bargaining rights. the way the law is written today, it is going to be a tough battle for seattle to uphold their decision to allow them to unionize. caroline: at the end of the day, does uber long-term care about its drivers? it is the year of the driver, it claims. there really is toward automation, right? >> it is. i think there is an uncertain path towards when we will have fully autonomous vehicles on the road without drivers behind the wheel. a few minutes ago, we heard about advances in the driverless

technology. but it is not just the technological capabilities that are a factor here. there has got to be a regulatory part. people have to be comfortable with the idea of an unmanned car on the road. if i look at uber's next five years or longer, is a world in which they will be heavily dependent on their drivers. getting the drivers on their side is an important part of the near-term strategy. caroline: do you think the p.r. crisis can be overcome by uber? are they doing what is needed? >> i think they are doing what is needed. i think some aspects of the p.r. crisis perhaps require far more action than others. i think the news that perhaps poses the biggest long-term threat to uber's business is the lawsuit from alphabet because that could place a roadblock in the rapid progress they have

been making put fully autonomous vehicles on the road. in terms of convincing investors that the business model scales and they are worth the $70 billion they are worth, having fully autonomous vehicles on the road is really important for uber in the near term. this lawsuit may have caused them to have to slow down even if they eventually prevail in the lawsuit. caroline: we will keep a close eye on how that progresses. nyu professor, thank you for your time today. car cap deal could be a boost for the israeli car scene. we will explain why. this is bloomberg. ♪

alisa: i am alisa parenti and you are watching "bloomberg technology." house speaker paul ryan is defending the g.o.p. health care bill as budget analyst predict

14 million people would lose coverage next year and 24 million over the next decade. ryan says the congressional budget office analysis does not take additional steps the g.o.p. led congress and trump administration would take to lower cost. tom price spoke moments ago. >> we disagree strenuously with the report put out. we believe our plan will cover more individuals at a lower cost and give them the choices they want for the coverage they want for themselves and a family, not that the government forces them to buy. caroline: britain's house of congress charlie: comments -- theents has rejected measure. the house of lords must decide to reject or delay the passage. a prosecutor has ordered the release of hosni mubarak. it is nearly six years of legal proceedings against the four to --former egyptian leader. he was acquitted of charges he

ordered the killing of protesters during the middle of the 2011 uprising. global news 24 hours a day powered by more than 2200 journalists in more than 120 countries. i am alisa parenti. this is bloomberg. it is just after 5:30 p.m. monday in new york. i'm joined by paul allen with a look at the markets. good morning. >> good morning. we are still 90 minutes away from the open in australia. futures are looking up at the moment. we are expecting to open 17 points higher. futures were pointing up on monday as well and the index ended up down 18%. we just had one market open in the region. that is new zealand. currently flat after a fairly tepid lead from wall street. nikkei futures are looking positive. it might be worth keeping an eye on toshiba. we are waiting for a new deadline on earnings after they missed the boy 14 deadline when

they released provisional numbers that confirmed the $6.3 billion write-down on toshiba's nuclear unit. plenty of data out today. china retail sales and industrial production are due in a few hours. it was reported last week factory prices surged at the fastest pace since 2008. in three hours in australia, we are expecting the latest business confidence numbers for february. that is to some of what we are watching around the region. more from "bloomberg technology" next. ♪ caroline: this is "bloomberg technology." i am caroline hyde. our top story this hour, intel's acquisition of mobileye.

it is the latest example of how tech giants are racing to gain a foothold in the race for developing self-driving cars. intel will move its existing operations to israel. cory johnson asked the intel ando. about that decision its associated cost savings earlier. >> we built about $175 billion of synergies into this deal. as you said, we are going to move our autonomous resources to israel where mobileye is centered. r&d overlapping between the companies. that will bring those synergies to that $175 million over time. cory: the was a lot of options trading in the days before the deal was announced. purchase of calls on expectations the stock would go

higher and soon. it seems to be near record levels for mobileye. i wonder how long you have been working on this deal and if this concerns you at all. >> we have been working on this deal for a while. we take a lot of care with our bankers npr teams to keep this quiet. it has been pretty quiet from what we have seen relative to other deals out there. we were pretty comfortable with the level of secrecy we were able to keep the deal under until the last 24 hours. look at what we were doing and what was going on in the market. it seemed like everything was pretty ok from that perspective. cory: the expectation of changes in tax policy, repeaters -- repatriation, is that one of the reasons you want to do get the deal done now before price tag

might go up? >> we would never do m&a as a result of something like that. we are always going to target around technologies and doing the technologies at the right time relative to bringing the products to market. that is what this was driven by. we started discussions before the election to give you some priority of how long these take. we had nothing to do with what the tax policies were. this was about getting these technologies together. caroline: that was the intel c.e.o. and cory johnson. some operations will stay where they are. benjamin netanyahu tweeted earlier congratulations. while it is the biggest acquisition of an israeli tech company ever, it is not the first. now for more context

are two venture capitalists. us.k you for joining manageu are helping to israeli syndicates on the angel list. how big is the scene? >> i think this kind of seminal book on israel was written in 2009. the story is not new. i fervently believe the world still has no idea about the innovation and shareholder value creation that will come out of israel in the coming years. caroline: give us some stats. i know you have some great ones. >> when the book was written in 2009, it was written because based on any stat you looked at, israel was crushing the rest of

the world. in the u.s. on the nasdaq, israel leads all of the other countries in the world on a per capita basis. it is more than two times the per capita number of ipo's on the nasdaq versus canada. it is more than 100 times per capita the number of ipo's out of china. what is happening in israel is quite amazing. caroline: you found it the california israeli chamber of commerce. you are helping build bridges between silicon valley and israel. i find it fascinating intel this time last year got in on another israeli company. they also have one of the largest hirers in israel. how much does silicon valley already know israel? all, we are based in silicon valley and are invested in over 60 companies in israel. it is no surprise all eyes are on israel from silicon valley.

it has been that way for more than 20 years if you look at some of the leading companies , companiesf israel in thee innovating hardware as well as the software space. you see also a lot of the local funds and investors are looking to israel for innovation. e has created a lot of waves in the last four years. i think mobileye is not a big surprise. almost $5 billion were invested into israel in capital. there is a lot of infusion of capital and there is a lot of interest in the innovation going into israel today.

caroline: where is it going? nds is a tv software company. waze traffic mapping. what are the key areas of growth? >> nds was a tv set-top company. the majority of the value was in the cybersecurity, encryption of nds. if you look at the major areas where israel is amazing at, obviously cybersecurity is one of the amazing areas. i think also there are a lot of areas that come out of what i described as imaging. it started with satellite imaging in the 1950's so the israelis could see what the neighbors were up to. now they have some of the doingst technologies amazing stuff with photography. they will be the adobe of photos. there are amazing companies in video.

snapchat just bought a company. that same technology is in the lidarmous car, the technology out of mobileye is the same technology. caroline: we have been hearing about how active the ipo scene companies and israel really killing it. tothey need more mega ipo's put it largely on the map? most of it seems to be m&a. >> true. alanna -- a lot of the great technologies today are being acquired. israelis, the the biggest question among investors is can israel produce massive companies. that is always the question on the mind. can they scale? can companies start but also scale globally in creating

impact? i think mobileye has definitely put a lot of that to work in showing companies scaling out of israel and scaling big into areas emerging such as autonomous vehicles, artificial intelligence, and obviously some of the traditional companies such as cybersecurity and storage. what we have seen recently also in looking at a lot of companies is in new areas such as drone technologies, a company like a aerobotics, as well as companies doing amazing technology in iot. i think what we will see in the next few years, also a lot of technology that is going to solve problems in industrial

iot. in manufacturing. and some of the old, dated companies that need infusion of innovation to stay relevant and agile. caroline: we have to leave it there. great to have your perspective. thank you very much. coming up, what happened during the talks between verizon and yahoo! after the details of the massive security breach came to light? we have details of a heated discussions. this is bloomberg. ♪

caroline: a stock we are watching. citrix closed up 7% said to be

working on goldman sachs on a potential sale process. goldman is sounding out potential buyers including private equity firms. interest has been limited. meansrge market valuation buyers would have to team up to fund a bid complicating any possible deal. speaking of deals, new details have come out from negotiations between verizon and yahoo!. the verizon c.e.o. suggested a price cut to buy yahoo!'s core assets after revelations of the massive data breach. it also revealed he suggested killing the deal completely before the price was reduced by $350 million. joining us to dig into this and what is next for marissa mayer is bryan womack. you delved into this. it surprises me. he seemed to put it on the line, this deal, saying i might even kill it entirely. >> this is the highest levels of

the company personally involved in the process going on for months. he comes in on february. there is a call. they said what about a cut and left it there. that is on the high levels of some people's expectations. $1 billion was on the high-end. caroline: do we understand how they managed to come back to whittle it down to $325 million? >> the language is broad. i would suggest this much, and then it kind of went from there. there was a meeting about 10 days later in new york city. it sounded like it was in the morning. they came together and said what about $350 million? yahoo! said that. from there, they came to an agreement. from there, things started to move quickly. within two weeks, we had the finalized deal after all these

months of back and forth, after disclosures on the big hacks. caroline: i was surprised he seemed to be playing hardball and then relatively low balled it. it looks as if marissa mayer walks off with a decent chunk of change. >> she's going to be ok. $23 million is down with changes in stocks and equities. $23 million looks to be the amount she will get. she has taken some stepanek's on her pay -- step backs on her pay. to put out a statement saying she is not taking a bonus because this hack was bad and happened on my watch. i will take some of the table. $23 million is not bad. caroline: talk to us about the future. the japanese unit and alibaba,

that will be helped by mckinney. is a board member. >> he is taking the helm of what they are calling the fund. it is nothing more than these huge asian assets with stakes in alibaba and valuable stakes. they will have that and other stuff. what happens, we do not know. it looks like it will be a tracking stock on some of the other major holdings. he will be in charge of that. as far as the day-to-day and website, that is going all to verizon. caroline: verizon it becomes. always great to get your perspective. coming up, reformer c.i.a. wikileaks has proven again to be an enemy of the united states. we will have more on his insights next. this is bloomberg. ♪

has been aton musk the front of the looming energy crisis in australia with battery technology. south australia has had a problem with blackouts. the prime minister blamed it on the rapid take-up of renewable energy. the companyclaimed could easily install enough batteries to prevent the blackout. the tech billionaire tweeted elon musk asking how serious he was. musk so they could get it installed within one hundred days of the contract or it is free. the two agreed on a project price of $25 million leaving the deal in the hands of politicians to finalize. he met with the prime minister and discussed the future of clean energy. he thanked him on twitter on a great discussion. his enthusiasmth

to discuss the future and australia --in australia. politics, president trump has tweeted he may have been wiretapped higher to the election. the house intelligence committee has asked the justice department for any wiretapping evidence by next monday. earlier, david gura spoke to michael hayden and asked how confident he is any evidence will come to light. >> i'm confident we will know by monday of next week that there is not any evidence. my instincts are really powerful on this. i know how this works. i know how you get a fisa. i know how the government gets the authority to listen in on phone calls of a u.s. person. none of those things are suggested by what the president tweeted out about 10 days ago. it just does not happen that way. the president has not had the authority to order such a thing for about 40 years.

you have to go to a court. there is no evidence that happened because the guys who would have gone to the court has said directly and indirectly they did not do that. >> if it did not happen, if there is no evidence, what should the consequences be for the president? what is the consequence of making that allegation on the intelligence committee? >> we have already suffered a lot of damage because the intelligence community knows it is not true. this is what they do for a living. it is just one more log on the fire that seems to have been building, a confrontation between the new administration and the intelligence community. there's probably sin on both sides. i would suggest everyone take a deep breath and back away from this because the president needs the intelligence community and the intelligence community knows their only purpose in life is to help him succeed. >> there is information

wikileaks says is hacking information from the c.i.a. what recourse does this administration have against wikileaks? they are increasingly in a problematic position. >> they really are. i think wikileaks has proven themselves to be an enemy of the united states of america. my definition is they are doing things whose only purpose can be to harm america, america's friends, and the way america keeps itself and its friends safe. answers, ine good order to shut this down, we would have exercised those answers already. i think we just keep plugging away. one thought i had and i cannot claim i have explored it. heavily exacted any consequences on ecuador for giving julian assange sanctuary in the ecuadorian in the sea in london? we are not required to make life

as comfortable as possible for the ecuadorian government. >> last question. we are expecting an executive order on cybersecurity from the white house. it was delayed. if you were to talk to the white house, what would be priority one when it comes to cybersecurity? >> i have seen some drafts. i think it is quite good. it puts tasking into the federal bureaucracy was fairly short timelines to come back and tell me how you are going to do these things. if you are looking for the philosopher's stone come the secret sauce, i think the key to this is our success or failure in cybersecurity is going to be more dependent on the success of american hybrid industry and the private sector than anything the u.s. government is able to do itself. i would counsel the president, think of things that unleash, liberate, get out of the way of

the private sector doing things only private sector can do when it comes to cybersecurity. caroline: that was david gura speaking with former c.i.a. director michael hayden. that is it for this edition of "bloomberg technology." all episodes are now live streaming on twitter. check us out weekdays at 5:00 in new york and 2:00 in san francisco. that is all for now. this is bloomberg. ♪

♪ announcer: from our studios in new york city, this is "charlie rose." >> good evening. i am john hockenberry filling in for charlie rose. we begin overseas with the sinking -- shrinking caliphate known as isis. iraqi forces have taken all but the question -- western city of mosul. in syria, hundreds of u.s. marines and their artillery are joining local forces in preparation for an assault on the isis capital. is it safe to hope this is the beginning of the end of isis? with me is michael weis