were accompanied by the netanyahus. he became the first sitting u.s. president to visit the western wall. michael flynn will decline a subpoena from the senate seeking documents, according to the a.p., which says he will invoke his fifth amendment right. the senate intelligence committee is investigating whether russell metal -- rush hour meddled in last year's election. the justices ruled state republicans placed too many african americans in two districts in 2011. voting rights advocates say the ruling will boost challenges in other states. is longest-serving governor on track to win confirmation as u.s. ambassador to china a.p.ding to the the senate votes today on the island governor' for the key post. he shares a long relationship

with president xi jinping. global news 24 hours a day powered by more than 2600 journalists and analysts in more than 120 countries. from washington, i am alisa parenti. this is bloomberg. "bloomberg technology" is next. ♪ emily: i am emily chang and this is "bloomberg technology." coming up, softbank's vision fund nears completion. after closing the fund in saudi arabia, what his childhood dream means for silicon valley and the u.s. tax landscape. ford kickstart its focus on ridesharing and self-driving with a surprise shakeup. what the new c.e.o. brings to the table. the market's most valuable

player is on track to become the world's first $1 trillion company according to one analyst. we will catch up with him ahead. softbank formally announces the first round for the long-awaited tech investment fund with more than $93 billion in the coffers. that includes the saudi public investment fund as well as apple and sharp. the vision fund is expected to top $100 billion in six months. it will focus on startups in the united states. we are joined by cory johnson. fundgives him the biggest in all of tech. what does that mean? cory: the biggest fund in all of tech. it is sort of hard to imagine how such a fund at $93 billion can be effectively used. startups require less cash

outside the world of biotech. they will require less cash in the early days of funding. just finding, let alone nurturing those deals will be hard to do. it is not all cash going into the fund. there is a stake in an executive fund that is part of the contribution to this fund. giant fund, it is a that will probably be hard to manage. emily: there has been a lot of speculation about why it took so long. what do we know about that? giantcory: i have been hearing0 billion for a long time. they beat me to it. it is all relative. i think raising the largest venture capital fund in the history of finance is an amazing feat, especially given the track record of these guys as softbank who work at and suffering has nurtured many companies. -- softbank has nurtured many

companies. i think the announcement or maybe premature. the goal is astronomical in terms of ambition just to raise the money. to put the money to use is a different ticket. the other question is going to be what the fees will be like for the fund. will they go to-20 or will the fee structure be different? they will be sitting on cash a long time before they put the money to work. emily: we talked about the meeting between president trump and masa where he said a lot of the money would be going towards tech innovation in the united states to create jobs. how much economic opportunity could this create in the u.s.? cory: i think it is curious where the money is going to be invested. we don't have a notion of that. the fact it is so large suggests softbank may have entré to deals others may not. the real question is where the money will be invested. will it be invested in the u.s. or beyond? with this much money and the

notion it will be focused on technology, one would imagine it with be invested globally a portion in the u.s. because it would be hard not to. emily: cory johnson with more context on the vision fund. thank you so much. with more reaction to the softbank news at a larger perspective on tech investing, we are joined by dr. kai-fu lee, the founder and c.e.o. who has held executive positions at apple and microsoft. great to have you back on the show. billion $100 he going into tech mean for the landscape? how is this going to shake up the competition? >> we are an earlier stage investor. we usually manage funds in the hundreds of millions of dollars. we began investing in ai and related technologies four years ago. we are strong believers that the future of technology is great.

ai is coming. we are looking forward to softbank being a later stage investor in some companies we and other venture capitalists like. emily: a lot of this is going towards ai investments. could it be too much? either enough opportunities -- are there enough opportunities for $100 billion? >> i think there certainly could be. they have already invested in a chinese company raising on the order of $5 billion to $10 billion. when you think about finding another 20 companies like that, the money will be used up before you know it. emily: where are the most competitive investments? >> the top technologies are still in the u.s. and canada. i think china is coming up strong because of the large market and ai knowledgeable people. 43% of the top publications are written by chinese authors.

china's large market will create a lot of data. ai is driven by brain trust data. china is coming on strong, currently number two. with a good shot at becoming one of the two superpowers in ai. emily: you gave a fascinating commencement address at columbia where you talked about ai and what it means for jobs. he said in 10 years, all financial companies will be turned upside down with ai. algorithm the ai returned eight times my private anchor. -- banker. >> i hope he is not watching. emily: you going to say you think simple jobs like factory jobs will be bro look -- be replaced. who still has a job in this rave new world? >> i think the creators will have a job, the creators in

technology and science but also entertainment. that is a significant portion. i think people in service industries who deal with social aspects of services, that will be a set of jobs we have to create. unlike in the industrial revolution where a set of jobs are gone and another set came about through the assembly line, and time we have to deliver create the jobs that relate to social aspects because ai is no good at dealing with people to people. emily: do you see hordes of unemployed people? do you think those people will get new jobs that have yet to be created? >> i think first there has to be a way to redistribute the wealth created to ensure some kind of social welfare and minimum stipend for the people displaced. it is going to take time for training. i think if people are open and inclined to be retrained in the

social aspects of the jobs, say bartender, tour guide, concierge, jobs like that, that will be on the rise for the people to people transactions. emily: tech giants from facebook to google, ibm to microsoft, have claimed they are working on ai. who really is in the lead? >> i think clearly google is in the lead. with the latest release, they are bringing technology closer than ever to an average engineer with maybe six months learning to be able to do something with ai. i think reducing that learning curve is important. and they are in the lead. it does not mean everyone will automatically use it because i think other giants are working hard. openlso, i really hope

source will come up with a more open solution than the giants because then we become cap divided -- captivated by their entire ecosystem. i don't think that is good for innovation or the academics. emily: if google is in the lead, who is behind? >> i think facebook is doing well. amazon is doing well. microsoft is doing well. in china, baidu, tencent, and alibaba are doing well. emily: what about apple? >> apple made their most recent hire to head ai. i think they should have every reason to do well given they and canlosed ecosystem learn so much about the users, but they started behind. emily: where do you think you will be placing your bets? >> financial industry. our most successful investment in ai right now is in a company that underwrote 30 million lines this year -- loans this year. i think insurance, banking,

investment. we are long-term optimistic about autonomous vehicles as well as robotics. emily: your private banker is out of a job. always great to have you here. a story we are watching. the founder is stepping down from operations of the online streaming service. he is a chairman of the company. it has grappled with a cash squeeze leading to challenges in fundraising and unpaid bills. coming up, it is a major c.e.o. shakeup at ford. what it means for the self-driving car ambitions, next. we are live streaming on twitter. check us out. this is bloomberg. ♪

emily: a surprise shakeup at ford. he is out after less than three years as c.e.o. shares fell 37% during his time in office. the new chief executive, jim in.ett, is revived steelcase during 20 years as c.e.o. there. he spoke to bloomberg tv and believes hackett can do the same thing at the automaker. >> i have never seen such a time in our industry where technology, competitors, and everything is converging to drive real change. it is very helpful at a time like that to have a leader who is very experienced in driving transformational change.

fortunately, we have that in jim hackett. emily: joining us now, david welch. wrong,d fields do especially when it comes to self-driving cars? what do they think hackett can do better? david: the stock prices have been down. earnings have been down. they have been pulling down the forecast while general motors is raising a forecast. you are not seeing big company stocks down as much. ford felt a lot of pressure. when you look at the self driving car side of the business, they did not have a clear direction or mission. those were questions ford wanted answered. g.m. has units they have acquired. they are testing in san francisco. they have a piece of lyft and our experiment in with putting those in the fleet. they have clear things they want to do with this. they have their own business maven. ford does not have any of that

clearly laid out. i think they want to see some direction. emily: are we expecting job cuts at ford? >> they announced they would cut 10% of the salaried staff globally. i don't know that they will be cutting more. costs have gone up in the past two years at ford so you could see more. i think the new c.e.o. will look at the executive team and costs. you can expect there will be more executive changes and might be more cutbacks as well. emily: one of the big questions is whether ford can latch onto the more forward-looking automakers. battery making factories are about to arrive in europe. now daimler wants a piece of the pie. caroline hyde joins us with more live from london. what do we know about the european factories coming? caroline: they are all pushing in the same direction. this is why daimler broke ground

on a half a billion euro plot today. big fanfare. angela merkel was there. it is not only about the auto sector pushed for the better trend but also the utility sector as well. are these juggernauts looking to capitalize on the falling cost of energy storage. it has become a virtual circle as carmakers want to get into the greener energy type cars. meanwhile, the utility makers are looking to be able to store renewable energy. all of them are pushing in the same direction. they will produce more batteries, thereby pushing down the cost in making the whole economy of the thing better and better. therefore a more virtuous circle. that is why we are seeing the likes of daimler get in.

saidberg researchers have audrey costs could fall 33% in the next four years. this makes electric vehicles perhaps cheaper than normal vehicles as soon as 2023. emily: david, are we thinking giga factories will pop up for more automakers? seeing a forecast of lithium ion battery production tripling by 2021. there are a lot of cars coming out from german automakers. you look at the one announced today, daimler. i so commercial trucks and luxury cars. elon musk is making electric luxury cars and planning on commercial trucks. he has a target on their back and they want to do something about it. they will push new vehicles out. b.m.w. will be putting out electric cars. every automaker has to do it for regulation. a lot of them are seeing tesla

has cool cars. toward the end of the decade, we will see a lot of luxury cars coming to market. that is what these batteries will go into. emily: will daimler be able to catch up to tesla? caroline: that is the key question. they have a lot of models coming out. they have to please their own politicians. angela merkel has said by 2030 we want to see 6 million electric vehicles on the road. they have please their own governments at the moment. they have targets of their own. of all cars 1/5 sold by 2030 being electric vehicles. you take it on by making the battery more economical. we will see the cost/by 40%. that is the main cost of the car you are producing. that becomes more cheap and more people are willing to buy this. i think it is interesting we are going to see vw and daimler get in on it. wanting toe europe

double battery making to make ends meet and try to take on the likes of tesla in america but also china and asia which dominates battery making. emily: caroline hyde lave in london. david welch with us from detroit. thank you both. another story out of europe today, the european union is investigating general electric for possibly providing misleading information during a merger review. according to people familiar with the case, regulators are looking into whether g.e. misled e.u. officials examining the deal. g.e. has not commented on the news. last week, the e.u. find facebook for misleading behavior . how good has president trump been for media companies? we will pose that question to mike thompson next. a feature i want you to check out. our new interactive tv function on the bloomberg.

you can watch us live. if you miss an interview, you can go back and check it out. you can send our producers a message. you can play along with the charts we bring you on air. this is for bloomberg subscribers only. check it out at tv . this is bloomberg. ♪

has signed les moonves to a new multiyear 2021.ct through he will continue receiving his $3.5 million annual salary plus long-term incentives. he is one of the nation's 2021. high-speed executives having earned over $69 million in 2016. when it expires, he has the option to become a senior advisor and form a production company through the network. has beenyork times" making news with its own scripts and as a target of president trump. c.e.o.ht up with the

where they discussed the partnership with social media platforms and the changing landscape of the news industry. we still have a multifaceted partnership with facebook, google, snapchat, and so on. on theall experimenting best way of getting journalism to people. i think the major digital questionsare asking about truth and falsehood and their responsibility when it comes to journalism. we are very happy to work with them. at the same time questions about truth and because we want that deep relationship with our readers, the best place we think for enjoying the "new york own digitalr destinations as it has been with our physical newspaper. >> let me ask you about the rivalry with you and "the washington post." is what you are doing replicate about -- able to be replicated

at other newspapers? what do admire about what the "washington post" is doing? think that story is the story they have to get right. the "new york times" has national coverage, great coverage of the art. the "new york times" is a much broader coverer of news. ground.their home we are happy to take part in the duel. it feels important to be in journalism now. what is great is seeing outstanding journalists competing with each other, not in a cynical way but to get great stories. i think that is what is making this such a wonderful time for journalism. emily: that was new york times president and c.e.o. mark thompson with david gura. apple is on its way to achieving a $1 trillion market cap says one analyst.

we will speak to him next. if you like bloomberg news, check us out on the radio. you can listen on the app, bloomberg.com, and sirius xm in the u.s. this is bloomberg. ♪

alisa: i am alisa parenti in washington and you are watching "bloomberg technology." let's start with a check of your first word news. michael flynn may have lied in his application for security clearance according to

democratic congressman elijah cummings who says documents appear to indicate he lied to investigators in 2016. the a.p. is reporting flynn will invoke his fifth amendment right against self-incrimination. brazil's top court has suspended scheduling a ruling on the president accused of endorsing the payment of hush money to a jailed former lawmaker. the allegation represents a potentially significant blow for him. his administration has lurched from one crisis to another as he took office one year ago. the e.u. has signed off on a tough brexit negotiating stance. negotiators plan to maintain a hard line on the u.k.'s departure bill and will not discuss the future trading arrangement until there is an agreement on other key issues. health and human services secretary tom price says the u.s. is disappointed taiwan was not invited to the w.h.o. key annual meeting. it has been invited as an

observer the last eight years. beijing accuses taiwan's government of not accepting the one china principle. 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. it is just after 5:30 p.m. in washington. 7:30 tuesday morning in sydney. we are joined by paul allen with a look at the market. good morning. >> good morning. that could translate into gains in australia. futures pointing out .2% right now. rio tinto announced it intends to buy back to $.5 billion worth combats to trim debt and downturns in commodity prices. in japan, we are seeing modest gains on nikkei futures. an investorld

meeting. it has been five years since the c.e.o. was appointed. the stock prices almost doubling. the headcount coming down by 37,000 and profit returning to the electronics giant. other things to watch out for today, earnings. we will have japan machine tool orders and cpi numbers out of singapore. more from "bloomberg technology" next. ♪ emily: this is "bloomberg technology." i am emily chang. japan's softbank announced it closed the first round of its

long-awaited vision fund creating $93 billion. the fund will invest globally in private and public tech companies. peter elstrom joins us from tokyo with more. you have been doing reporting on this. what is the latest we know about what it took to get the deal closed? >> it did take a long time. softbank originally announced the deal in october of last year. it came from a meeting the month before. after many months of waiting and anticipating it would close, it did close. they did not quite get to the full $100 billion but they got to $93 ilya, -- billion dollars, a record for the tech fund. the saudi arabia sovereign wealth fund has also put in money as well as apple, qualcomm, and others. one name we did here early on that did not show up in the press release was larry ellison of oracle. it is not clear if you will come

in at a later round or will not participate. emily: talk about his vision for the fund as we know it now. >> he has never been shy about his ambitions. he talks about a 300 year plan for the company. he wants it to last beyond his own investments. he has cut big deals. you put $5 million into the ride-hailing company in china. it is the biggest venture round ever. now he has more capital to deploy. he talked several times about the opportunities he sees. he has had investment successes in the past. he thinks now there are even better opportunities and he wants to be able to use this inital to go after them artificial intelligence, the internet of things, and other cutting-edge technologies, as well as sharing economy investments. emily: talk more about what we

know about where this money is going to be invested next. didi.w about what else? >> he will be a key person on the investment committee so it will be an extension of softbank in some senses. last year surprises was the acquisition of the chip design company. son says he sees that as a gateway into the internet of things when they will be able to collaborate in different areas of technology. ride-hailing has been a big focus with other investments. there are a number of these areas. he is one to pull surprises so there will be at least one or two surprises on the horizon. emily: peter elstrom in tokyo, thanks so much for that update. says apple has the potential to achieve a $1

trillion market cap. it could surpass that over the next 12 to 18 months. he joins me in the studio with his new call. how much of this is related to the iphone? how much of it is the expectations of potential cash coming back from overseas? >> their two things that will get you there. what is the iphone and the other is to continue the buyback program. nothing to do with the $1 trillion roadmap from our perspective. emily: can the iphone 8 disappoint? if so, how? is it possible? >> maybe two ways. expectations are very high. these are even more lofty than for the iphone 6. the second is if it is priced at $1000, are there that many buyers? those are two things to watch for. emily: global smartphone growth

is not looking great. they're forecasting 4.2% growth from last you to this year. do you think the iphone can beat that? >> we think it does. 750 millionut a base. we think the upside with the iphone is driven by the install asp turning over and the should be much higher. emily: take a look at the bloomberg with new analysis showing momentum around tech stocks reflective of the late 90's levels. could we be headed toward a bubble? could apple be in for a correction? figure apple's valuation has not changed much in the last three years.

tech -- amit has more to do with the social internet stocks versus apple itself. if you do have a correction, apple may prove to be defensive much as ibm was for tech stocks. emily: what about china? do we expect an iphone rebound? >> for this to work, you need an iphone rebound in china. emily: is it going to happen? >> china has the same replacement dynamic as the u.s. which is the phones are fairly old. if iphone x is that innovative, i think you do have the reversal in china as well. emily: the vast majority of analysts have a buy rating on apple so you are not alone. that said, is this growth sustainable without a new product category? tim cook has said the services businesses will grow by leaps and bounds. do they need a new product category? >> over time, they do. .he reality with apple stock

nothing next other than the next iphone. that narrative must change for the valuation to go higher. emily: here is the chart on the bloomberg showing the analysts' ratings on apple right now. what about ai? apple seems to be behind when it comes to ai with the other tech giants. does that matter? >> at this point, it does not matter. apple was never the first with anything. i would argue apple has never been the first to market, just the best to market. i'm sure apple will figure out a way to play it. emily: what about cars? we know apple is working on something car related. we don't know what it is or how well it is going. are they working on a

physical car or the operating system? apple with the size and innovation, it is logical for them to look at different options much as they did with the apple tv that never came to market. toly: you say apple will get $1 trillion in short order simply because of the iphone and buybacks. us,ks much for joining analyst at rbc. claimsnd visa are facing by boston company that their mobile payment partnership infringes on patents. it says it sent apple a series of letters in 2010 describing its patented technology and seeking a partnership long before apple pay debuted. the company also considered a partnership with visa. both apple and visa declined the offers of a partnership. coming up, it inside facebook's

strategy for moderating offensive and violent posts. we will take you into how the company seeks to remove certain content from the platform. this is bloomberg. ♪

emily: a stock we are watching, shares of go-pro almost 8% rise in the session. double the amount of usual volume. that is the biggest move since march. investors will hear from the global conference on tuesday. take a look at the bloomberg. take two interactive is down over 9% since the start of trading. it says it is delaying the spring oftil the

2018. rulebookhas created a for its moderators to use when censoring possibly offensive posts from its nearly 2 billion users according to a new report. the social network has been under pressure for failing to prevent the circulation of violent images and hate speech and recently said it would add 3000 employees to review of seeing posts. guardian" obtained thousands of slides and photos the country shared with moderators last year as guidelines. joining us now is sarah frier who covers facebook. this is an interesting report. what is your main takeaway? >> think this is fascinating to us because all of these things have happened behind the scenes of this black box. when facebook comes back from a user report and says this does not violate our community standards, we don't know why they think that. "the guardian" is unmasking some

standards which facebook has not confirmed. it is just fascinating to look at the different things. if i make a credible threat to you, that can be taken down. make a throw away threat that is not specific about when i might hurt you, that is fine. emily: let's look at some of these. they are a little confusing. videos of violent deaths may be allowed if they create awareness. not shared with sadism can remain. butal abuse is allowed needs to be classified as disturbing. moderators are saying they have 10 seconds to decide whether to remove it. these are kind of intense calculations that need to be made in that time. >> very intense calculations. that is one reason why facebook realizes it is incredibly understaffed in these efforts

and adding all those people around the world with 3000 employees, these are hard decisions and very human decisions. these are ones they cannot yet tackle with artificial intelligence. they're counting on these workers, in many cases contractors, to make these calls about what should remain on the network. it is a difficult call because some things you mentioned sound like they should not belong on facebook. they sound creepy or violent. emily: i don't want to see them on my feet. >> i would not either. the company is trying to refrain from being a sensor. they certainly sensor quite a bit. but they do not want to cross the line where they are preventing people from expressing themselves on the platform and driving users away. hisy: mark zuckerberg is on estate to her. there has been a lot of speculation about whether he will run for public office. he posted about the saying some of you have asked if i am running for public office.

i am not. i am doing it to get a broader perspective to make served we are -- sure we are best serving our community. he talked about how he is on whetheresearch facebook should help connect you to people you should know. >> facebook has talked about creating meaningful connections for people through things that make them feel like facebook is a helpful resource as opposed to the network that exposes them to violent acts and angry things we just talked about with the "guardian" report. zuckerberg saying this trip is about a revelation on what he can do with a platform i think is more than that. facebook's biggest problem now is not in the financials. it is in the public image. they have been dealing with issues like fake news and fake accounts and extremist propaganda.

they have been dealing with quite a bit with regulators in europe over privacy. zuckerberg needs to go out and be a politician, whether running for office down the line or not, zuckerberg needs to reshape facebook's image as something that can be a force for good in the world. emily: is giving the commencement speak at harvard later this week. we will be monitoring that. sarah frier, thanks for joining us. coming up, we look at the state of cybersecurity after the rent somewhere breach around the globe. the advice a leader in cyber defense has for you next. this is bloomberg. ♪

emily: cybersecurity has been dominating headlines, from the

hacking of the democratic national committee in 2016 to the ransomware attack that hit the globe earlier this month. companies in the industry are reaping the benefits, including the provider of digital security that aided the d.n.c. in its response to what is believed to be interference by russia. it also just announced it has raised $100 million in new capital. joining us from new york, the c.e.o. and cofounder. great to have you back on the show. let's start with wanna cry. what is the latest you have on who is behind it and the extent of the damage? >> i think what we saw with wanna cry is a failure of the traditional legacy manufacturers. we saw large-scale infection. who is behind it? i think there are a lot of researchers trying to sort that out. it is still too early to tell. when you look at the impact, it clearly highlights the need for technology that goes beyond what withone 30 years ago technology designed to identify this.

that is one of the challenges here and why so many computers were infected. emily: there has been a lot of finger-pointing, microsoft, the n.s.a. microsoft claims the n.s.a. should have been doing more to warn the private sector about vulnerabilities. >> you have to separate these out. the governments who operate in the cyber battlefield are going to do what they do. they look for vulnerabilities and to exploit those. that is just going to happen. i think what is most important is companies and individuals need to make sure they have the latest patches and the latest protection in place that can identify these attacks without having signatures created in advance. crowd called strike -- strike, you guys are the ones that discovered russian interference in the d.n.c.. have you seen any change in russian cyber activity in the united states? what whether it is russia or any of the middle eastern countries

allat-crime, they are formidable adversaries that come up with new ways to get into companies and siphon out data. morese the data to extract money. wanna cry is a good example. they keep getting better and better as the good guys begin to be able to identify them. it is an ever-changing environment and why people need to remain vigilant. emily:better what about russia n particular? do you see any connection between the cyber activity and the revelations happening in washington out of the white house? >> i think there is always a lot of activity in the u.s. or outside. russia has incredible capabilities. like most governments, they will look to leverage those capabilities across data, intelligence gathering.

in some cases, perhaps leaking that data on the internet for political purposes. emily: where else might we see russia being active this year? in europe around elections? >> there were reports about russian activity in some of the elections. capableif you have a adversary, people need to be thinking about their own security and risk management policies and making sure they have the appropriate security controls and protection in place to identify the breach activity which is most important. i think that is where a lot of companies have fallen down. emily: you said you're open to small acquisitions that might complement what you already do. what kind of acquisitions might we expect? >> since we have such a broad platform that looks a lot like , anything that might

allow us to create a new application on top of the form would be a good fit. we spent a lot of time to build the underpinnings and technology itself which has been well received by our customers. we want to continue on that path. if we can add new capabilities, we will continue to do that. we continue to look at new hires. we spend time building our own artificial intelligence capabilities and look to add those for more robust detention and prevention capabilities for customers. emily: where are you expecting to expand geographically? >> there has been a massive expansion already. we have added 400 people. we have expanded into europe. we've gone from dr. offices to 15 offices. we have expanded into asia-pacific, australia, south america. we have seen such a spike in demand that we want to make sure we can service those customers locally. you have to be there and make

sure you're looking at local threats to make sure you have the right protection for those customers. emily: george kurtz of crowdstrike, thank you for joining us today. that is it for this edition of "bloomberg technology." remember all episodes are live streaming on twitter. that is all for now. this is bloomberg. ♪

♪ announcer: from our studios in new york city, this is "charlie rose." trump ispresident heading overseas on a nine-day trip to five countries and three summit meetings. it begins in saudi arabia where the president will deliver a speech about islam. he goes to islam, vatican city, belgium, and back to italy. it is the first foreign trip of his presidency. administration officials are for training -- portraying it as a chance for americans to engage globally. is also a chance for president trump to get away from mounting controversy at home. we turn to ian bremmer and michael hanna. welcome.