>> from washington, you are watching bloomberg tech knowledge you. let's look at the first word news. sally yates has told the senate committee that she alerted the trump white house that michael flynn "essentially could be blackmailed why the russians." -- by the russians." sally eight and james clapper testified about the russians. -- sally yates and james clapper testified about the russians. have convenes talks to implement the 2015 paris agreements to cut carbon emissions. north korea has arrested a second and struck her -- second instructor at pyongyang university. it is not clear if this is part claims that the

cia has targeted him for assassination. pen is looking forward to the next challenge and says that she has a new challenge for herself, a major makeover of the national front party and elections will be held. global news powered by 2600 journalists. this is bloomberg. emily: this is bloomberg technology and bloomberg television and radio are on the ground and showcasing the innovation, diversity, and power of the regional economy. we are taking a look at innovators from fortune 500 startups and

talking to government officials. we are joined by caroline hyde. you have a eight week ahead of you for us. what do you have? >> we certainly do have a big week host up boston and massachusetts is the hub for all things biotech and it is expanding its reputation for tech. banking onctric is boston and they broke ground on the new headquarters today. the ceo spoke about the collaboration between the company and the city. >> ge has moved to one of the oldest cities in the country to create the future, whether in life sciences, renewable energy, tech knowledge he, aviation, technology,

aviation, material sciences, these are things that we want to do together. when bostonst year cityhe bid and it cost the $25 billion in tax relief and an incentive package from the state. i spoke to the boston mayor about the ge deal and boston's as a tech hub and how it stacks up to silicon valley. >> warmly announce the move to boston, they gave us a check for $50 million, $25 million for education and job training. jobre seeing those benefits. the deal you have been critical incentives, that

gets the construction and the building going and, during the course of the next 30 years, we will get $67 billion in real estate taxes from the deal. >> what does it mean, in terms of continuing the growth and the biotech sector here in boston? >> it is important and boston has always done well in that space. you can think about the city as a great medical city and this is city. there was a time where we were the tech capital of the world and we lost that to silicon valley in san francisco and you are seeing a rejuvenation, with people coming back to the city. and there is that a new level of curiosity about boston. we have 150,000 students going to school and many of them will

stay for the summer and when they graduate. we grow every year and there are 25 colleges and universities here. there is a lot of innovation here and a lot of synergy we can work off of. ge can help us with that. >> academia, the private sector, you say you lost that from silicon valley. can you win it back? >> i think we can and massachusetts one through a tough time in the 1980's with high taxes and political decisions that set us back a little bit and what is happening now is a political climate where everyone is looking to move the economy forward and to be innovative. the word, innovation, it is on everybody's tongue lately, whether in sports, or other types of business. attractto be able to

companies here. good growth. a little bit before ge came, but ge will help us grow further. >> you talk about a political climate hoping jobs and do you think the administration is helping with the political climate and boston quest mark >> washington? no. i hope they get to the job of governing. i would like to see them be successful and i would like the white house to the successful. they need to start focusing on government. i am afraid about what it will do to the economy and the impact. impact yet.d an i am concerned about the affordable care act and the actions that congress took stuck it is not a good bill. and city like boston

suburban cities across america, it will hurt hospitals and hurts the economy. i wish they would focus on moving the country forward and not focus on repealing health care and to funding -- defundni housing.nd urban >> are you worried about the research and development area? >> i was. the congress passed a short-term budget and it seemed like everything is status quo. we have a little increase and i think it is important to stay strong on that. in boston and massachusetts, we are in this together. cambridge, other cities, a lot of discoveries and a lot of

things are happening in the city and it helps us keep young people and talents here in boston. i am a cancer survivor who was treated at the cancer institute and the children's hospital. i was assets in theant city. the cancer i had 40 years ago, the curate is higher than when i had a. >> you are the son of immigrants and there is a lot of concern about the travel ban and what it means for talents and technology talent in silicon valley. with boston, d you feel a concern -- do you feel a concern? .> it was a concern before hand now, there is really a concern. ther the interview,

president issued an executive order and i had all the hospitals and the tech companies in this room in this room and everyone of them had the concern about fear of people not being able to come to america to get education or work for a company. spentk that congress has 6-7 years on that and they need to focus on immigration. the system is not working and we have a letter million undocumented people in america and we have to figure out how to put them on a pathway to citizenship or figure out what to do and then look at the work the sarah programs. we have these high-tech getting visas. we need people getting educated here in america and we are

keeping them here. i hope congress and the senate comes together to create comprehensive legislation. >> that was marty walsh, the mayor of austin. joining me to talk about the ecosystem here in the city is cory johnson. talk from marty walsh. on you hearing it replicated your radio show? >> the move of the technology industry from massachusetts to silicon valley happened a long time ago and there are a lot of companies to talk about here. i think that the move of ge coincided with us being here today and everybody has the talking about the big move of ge doubling down as they change as a company. it is the sign of boston coming

back and the internet businesses in the startup scene here. there are some of the tools that silicon valley has. great academic institutions, a financial community, and you can look at the success of silicon valley and how they want to get it back here. >> i have heard from the president of harvard and marty walsh, the mayor of austin, the concerns about immigration -- the mayor of boston, the concerns about immigration. >> you can expect boston and the people of massachusetts to fight hard against a republican administration. there is a sense of a business the democratic mayor working with the republican governor. these are guys who know and like each other on business issues

and that is a big issue for business people. they want to see the democratic mayor and the republican governor working together to help business to get a sense of community here. >> cory johnson, the bloomberg editor at large is joining us -- atnd also on the large, is joining us here and also on the radio. sinclair is buying tribune media for $3.9 billion. regulators eased a limit on television ownership. this would give sinclair access to big media markets. technology coming from boston. we will take a look at ibm and see how they are using the watson technology to come up with the next radical breakthrough. if you like bloomberg news, you

can check us out on the radio. this is bloomberg.

welcome back to the special edition of bloomberg technology. discussed, boston is home to a number of big-name tech companies and one of them ibm, in cambridge, massachusetts. they have watson, famed for

winning jeopardy. it is a machine that is learning torything from technology cyber attacks. >> the company has grown into a tech knowledge he powerhouse -- technology powerhouse. the ibm security got started in 2011. peopleave grown to 8000 and we are operating in 133 countries around the world and have not stopped acquiring companies. we have now acquired more than one dozen companies focused on cybersecurity. >> ibm security brings in -- it is using watson, the system, to monitor cyber on clients around the world. the vice president of security explains how the company applies the technology.

>> one of the things about watson that makes it advantageous is the ability to go through massive amounts of information. >> it offers customers the opportunity to face a cyberattack. theying on the success, have set up a health care unit in cambridge. theyfficer explains why lay down roots in the city. >> there is extraordinary talent and partnerships that we have evolved and continue to evolve a -- and we are in a hotbed of innovation. >> they have the hopes of coming up with the next medical breakthrough. >> why the grey parts of watson is that it is a system that understands natural language and it has been trained to the best doctors in the cleveland clinic and memorial clinic to

understand literature. >> it has partnered with companies to make progress in the fields of drug discovery and analyzing patient data. the revenue from the cognitive and thes business rose biggest breakthrough are likely still to come. databelieve we have a stethoscope to translate this data and bring insights to a make a policy maker to better and smarter decisions out of that. boston, here are headlines grabbing attention. another shot has been fired in witth a -- with ormystery dinner -- bidder f

verizon. you will remember that at&t agreed to buy straight path. this gives at&t three days to match the offer. focusing on services as the legacy content delivery business slows and we will discuss the plans with the ceo next. this is bloomberg.

caroline: this is a special edition of bloomberg technology. of onejoined by the ceo

of the largest tech employers in massachusetts. the content is from cambridge and it is expanding. how crucial is academia partnered with business here? >> it is fabulous and it starts and the university system you have several of the best universities here with dozens training technical talent. there is a great work ethic. people stay with companies for longer than you would normally see in the valley. startups havet of amai spawned by former ak employees. is the talent pool big enough? are you worried about immigration and foreign talent? >> we have a great talent pool

here in the united states and we have worried about immigration. it is important to attract the best talent. we are working to increase the talent pool. we have a technical academy to train women and minorities who do not have a technical background to take a technical amai and that is a great program for us. let's silicon valley comes under criticism for a lack of diversity. >> diversity is a challenge and we are making efforts to improve it by increasing the talent pool through training, grants through every way we can to try to help diversity. >> is the current white house helping diversity?

, i am not directly familiar there, but i think it is something we have to take on ourselves and we can improve the situation here in massachusetts, where there is interest in doing that. how theinterested in white house is doing for the economy here in massachusetts? is it positive or negative? >> it remains to be seen. the changes in the taxes could be beneficial. onwould like to see no curbsa immigrations and travel. we want to see what happens with net neutrality. >> you serve internet service providers. how much are you affected by this.

are you pleased by the moves? and itere not regulated does not affect us. partnersly helps our and most of the content companies are customers and we will still deliver the traffic within the major carriers. there are probably a couple of companies that are less happy. on balance, it will be fine. >> talk to us about the business. to theas a reaction numbers. how did you tried to ease the investor concern? >> we have two major lines of business and one is around performance and security and it margins and grew at 18%. it is doing great. have a media business that delivers a lot of video and it

is doing well. it is not growing as fast as it 1%, yeart grew about over year. the street wants to see more growth and they are worried about changes in traffic. media traffic goes up and goes into a valley. we are in a valley now, but tt andody believes that o video is coming. >> i am pleased that you came to us. it is great to be so close to your home. speaking witheo us. coming up, the boston pops is kicking off their season this week and we will talk to the man who has been leading the orchestra about the changes and how they are using new technology to bring music to the masses. this is bloomberg.

it is true that the president made it known that he was not a fan of general flynn. he was an outspoken critic of and -- t obama >> mike flint was asked to resign after misleading mike pence about his contacts with russia. angela merkel says she is happy won the election and

pledged to continue the close cooperation with france. the syrian foreign global news 24 hours a day powered by more than 2600 journalists and analysts in more than 120 countries. this is bloomberg. after 5:30 p.m. here in washington, 7:30 a.m. tuesday morning. i am joined by bloomberg's paul allen. good morning. paul: good morning, lisa. we are seeing good strength on the nikkei futures out of chicago, up by more than 1%. we are waiting to hear the release of the third-quarter trading on the commonwealth bank of australia. that is the biggest of the big four banks. i'm in canberra for the big story of the day, the release of the australian budget. we are expecting the deficit to come in a little bit lower and

for the budget to return to surplus by the end of the decade. that might be based on some reasonably optimistic growth assumptions. it's also a big day in south korea. polling day. an election to replace the former president, park geun-hye. one of the key themes is the dissembling of a big family conglomerate. also watching earnings from mitsubishi motors and subaru. i am paul allen and canberra. more from "bloomberg technology" next. ♪ >> welcome back to this special edition of "bloomberg technology." i'm caroline hyde.

we are live from boston, showcasing the innovation and diversity of the tech economy. opened its 100 17th season this weekend at boston symphony hall, and the theme, it's the music of former conductor and maestro john williams. recently recorded and help him of his music in a high tech, state-of-the-art studio many concertgoers don't even know exists. this,rt with a little of after twof this,, and hours leading the boston pops, you will have a recording of the selected works of maestro john williams. for managing directorhours lead- >> it's the soundtrack of our time. >>john can write a melody better than anybody else. you say star wars.

it comes into your head. ♪ "et," and you hear it in your head. ♪ the recording is overseen and supervised by nick squire, one of the few full-time sound engineers employed by any u.s. orchestra. >> it is visually appealing. it sounds great, and it really allows us to record and listen to the orchestra and make sure we are making the right decisions when we move mics or mixing. >> the recording studio recently underwent a quarter million dollar upgrade. it is arguably the most advanced in the country. sound, as dobetter the speakers. the improvements were carried out by the walter historic design firm, which also counts

jay-z and alicia keys as clients. orchestra, wepean are one of the top orchestras recorded in the world. >> the profit from such recordings once represented as much as 40% of their income. in 2015, of the $46 million taken in, media represented just over 1%. >> it used to be that you would tour to sell recordings, and now if you record, you are trying to drive people to concerts. >> that visibility comes in other ways, too, like the deal they made in 2015 with nova play of itso make some performance is available for streaming or download. after the concert, conductor lockhart will come down for a listen to see how things went, but for now, he is in full performance mode. every note for posterity is just right. that was bloomberg's

tom maroney reporting. joining us now, keith lockhart, conductor of the boston pops. it is the 132nd season. >> who is counting? caroline: you are. you are a man who's been here for more than two decades. you've done something like 1800 -- keith: i have lost count of that. we will talk about technology and how it has changed the music you have brought to life. keith: it's hard to describe in the 23 years i've been there that technology has changed around us, and we have no choice but to have it influence what we do for the symphony. when i came to the pops, i didn't have a cell phone, and i didn't have any mail address. now the ubiquity of the web, the way we get our entertainment, culture, it has changed so profoundly.

orchestras are very old, very analog. it's been our job to catch up with the way the world sees this information. caroline: you have been making joint ventures, partnering with the likes of google play. what about other areas and avenues you would like to see to help boost the consumption of the music that you make? keith: i think a lot of it has to do with the dissemination of our products, making our stage larger. certainly, our upcoming relationship with bloomberg as the sole platform, but being seen worldwide, ubiquitous, it's an amazing change for us and something i hope we do more of. what we have to do is get out of the concert hall as much as we can. caroline: you do that. you do get out of the concert hall. here you have the boston pops, which is a spectacle in front of half a million people, but you are also a man who travels and conducts in the u.k., germany. how does boston compare when you

look at it international leec -- internationally? keith: i am very blessed with my home in boston. it's a dynamic place. there is a huge hunger for arts, learning, and it's a great place to make music. how much i enjoy conducting, and i have a great opportunity to go all of the world, i'm always grateful to come back to boston. caroline: july 3 is when boston pops will be performing for the masses. what will get the hairs on the back of your neck standing on end? keith:keith: when we get to the end of the concert and launch "1812chaikovsky's overture," something that has become part and parcel with celebration -- when i get to that and i know we have done a good job, that is when i allow the hairs to stand up on the back of my neck.

caroline: keith lockhart, thank you very much indeed for joining us. keith lockhart, boston pops conductor, and of course, bloomberg is a sponsor of the boston pops. apple's record run continued monday, pushing the company's market cap past $800 billion for the first time ever. that makes it the most fallible public company ever. valuable public company ever. diode tech executives met with a vice president mike pence monday. their goal, defend government-sponsored research after the president's budget sato new cuts. -- saught new cuts. $5.8 billion next year. the meeting, which was attended by first daughter of vodka trump, examines the relationship between government, universities, and industry with aims of maintaining america's in the field of biomedical

discovery. coming up, how universities plan to in the field of biomedical discovery. change the future in the boston area. from boston, this is bloomberg. ♪

caroline: welcome back to this special edition of "bloomberg technology" live from the boston convention and exhibition center. i want to welcome in our next guest. -- it's aoman who wealth of experience you have

crossed government, regulation, business. when it comes to education and how are you -- [indiscernible] >> that is one of my favorite questions. i have to say, one thing i have learned, particularly coming out of the u.s. and global recession, graduates need a deep dive into a subject matter. at the same time, they need critical thinking, communication skills. they need to be both left and right-brained. at bentley, we have a health industry major. sustainability measure. to bentley and study something they are passionate about. if they get a degree in finance, too, the biotech startups, they

will be the kids who are hired. caroline: speaking of the kids, where are they coming from? how much of it is international? >> i have to tell you. we were a little bit surprised. you just don't know until the numbers come in. is may 1ine nationally for kids will be freshmen in college to get their down payment in, and we have gone up next year in the international portion. it's up to about 15% undergraduates. that is great. we think it's the right way to go. marketplaces the we will be going into. we were surprised given some of we heard about,

given some of the new administration's statements and actions. if you decide to leave your job for a year, you are going to be a little bit more antsy. caroline: interesting. let's shift the conversation to the private sector. i'm sure our audience can hear the hubbub around that. >> caroline: caroline: i feel like i know them all. -- >> i feel like i know them all. partnerships between higher ed and companies didn't used to exist, not in any great, strong numbers. with the recession, we can come out from under a bubble. today, to have companies come in and help you think about your curriculum, how to shape it for companies who want

the best talent. i think having companies talk to about the skills they actually need as opposed to the things we might think up on our own, it's a really good idea. it's one of those things you wished 20 years ago we had known. caroline: it's a wealth of experience you have had a, not only as a lawyer but also working in education, but you did interesting work with the fcc. you were working as a regulator. now, and ifhat time you are confronted by google and facebook of today, how would you be looking at them? here's my own agenda, if you will, my own philosophy. regulation works best when the pendulum does not swing too far in either direction. we don't need laissez-faire. you need fairer rules of the road in the marketplace, but at

the same time, you don't need command and control, heavy-handed regulations. i think we've seen the pendulum swing in both directions. i think a more centrist position where you invite companies to the table, particularly companies that have not traditionally been regulated like the tech industry, you are thinking of what might work so that consumers might feel more comfortable with safety. getting ceos to the table to talk through where things should be going, i think, works every time. i am hopeful that in the new administration we don't see a return to laissez-faire. i hope we are seeing something that works in the middle for everyone. caroline: you will be going out to the business community. thank you so much. it's wonderful to have you with us. --tley university pleasant president, joining us there.

up next, we will be speaking to none other than the massachusetts governor charlie baker and get his take on last week's health care vote in the future of innovation in the state. that's next. this is bloomberg. ♪

welcome back to this special edition of "bloomberg technology." we are live from boston all this week, and i want to welcome our special guest, governor charlie baker. we are happy to have you here at this table. it's the number one state in terms of digital economic growth , number one state in terms of r&d per capita.

how did you maintain that growth? baker: the most important thing we need to do is to build on what has been successful. we're talking about robotics or cybersecurity or so many areas associated with our internet. of the rawot material and intellectual capital people are looking of tw material and intellectual capital people are looking for. that means continuing to invest a public-private basis. a lot of people are creating jobs in this space. it's also a lot of the research we do. federal funds, employer funds, , alege and university funds series of advanced technology investments, we think, are going to continue to roll in going forward. caroline: this is all you can do from a state level. when you are looking from a white house and country level, how much do think the support is there for you to continue the investment? >> we are a great example of

that. the recent discussion about what the national institutes of health should be funded at, a big discussion about whether -- we have be cut the largest share per capita and ina gdp basis of nah funding the country, and we should. a lot of the most important inquiries and discoveries are done right up the street from here. caroline: it's only a temporary budget up until september. is it a stay of execution? >> one of the things i felt good about when that conversation thised was the fact that is one thing republicans and democrats seem to agree on, which is an investment in research, discovery, and inquiry, translating into solutions. i feel pretty good about that. we will continue to work with our colleagues in other states and delegations. there are a lot of people in

d.c. who understand these investments. caroline: you made a demonstrative speech at the beginning of the year, really talking about how political dialogue is far from where it should be. do think political by luck after the first 100 days is improving? >> in washington? caroline: and indeed from a state level. her soul,er, god rest is a democrat. my father was a republican. i grew up just believing that there is more than one point of view, and in public life, if you can't find ways to work with people you will never disagree with, you will never get anywhere. i take pride in the fact that ge who just broke ground on their corporate headquarters today theythat one of the things appreciated was they appreciated was that a democrat mayor of boston and republican governor seem to get along, and that is something they have not seen in many places. caroline: we are talking about that relationship you have built with private companies. benefits were some tax in there for general electric.

how much are you going out and starting these joint ventures? you talked about public-private ventures. gov. baker: it big part of what we do is make sure the investments we make generate a return, whether we are investing in transportation, higher education, or some of these joint initiatives around advanced manufacturing. we are a player in those investments, but there are other people putting a lot more money in then we are, including the federal government. caroline: i do think that we can reclaim our crown. do you think you can? know if i: i don't would call it a race. i would prefer to think of it as a competition. i think we start with many of the most important ingredients. the biggest thing we start with

is this incredible ecosystem of universities. we have great schools here, lots of stem graduates, number one in ap scores in the country. the only state that has ever finished first and the national education assessment exam for high schoolers, we've done it six years in a row. the things that separates us is the quality of our school system. caroline: quick last question -- number one priority for the rest of 2017 for you at a state level? gov. baker: the thing i always hear about his young people and young families, we need more housing. we are making a big investment in workforce housing. we're also going to continue to make big investments in our transportation system. we have one of the great problems, which is that everyone works around here. there's a lot of traffic in the morning. there is a lot of traffic in the

afternoon.we need to do a lot of things to make sure we can provide transportation, and we are going to continue to invest in the things that have made us along with those partners we have in the public and nonprofit sectors. caroline: charlie baker, thank you so much for giving so much of your time. we will see how that focus on inequality continues. thank you very much indeed, the governor of massachusetts. a fascinating conversation. let's get back to you in san francisco. >> tell us quickly what you've got on tap this week. we are going to be live all week there. caroline: we are going to have so many great conversations. we have a deep dive into dell emc. we will be going inside their labs are that is it for "bloomberg technology." ♪

♪ >> from our studios in new york city, this is "charlie rose." jeff: hello, i am jeff gore filling in for charlie rose. we begin this evening with politics. every democrat voting no, house republicans cheered as they voted to repeal and replace the afford ball carrier act by a four-vote margin. the bill faces an unfazed -- an uncertain future in the senate. joining me now is nick on for sort -- confessore of "the new york