following a north korea missile launch. missileagon tracked a launch of what they believe was an intercontinental ballistic missile that traveled 600 miles and landed in the sea of japan. cut plan passed the house and advances to the senate. committee democrats laid into colleagues for forcing the bill through quickly. the committee voted along party lines. hoping the full senate will take it up later this week. suspected found a libyan militants not guilty in charges around the benghazi attack. was of murder. chris stevenslled

and other americans. global news, 24 hours a day, powered by 27 hundred journalists and analysts in 120 countries. this is bloomberg and bloomberg technology is next. >> this is bloomberg technology. hammering out details to grab a andive stake in uber seeking a discount to invest in the startup. our conversation with meg whitman, as she prepares to leave the company. we talk about her political ambitions. $10,000 andoaches

we discuss the true value of the currency. is leading investors to buy a huge stake in uber. a billion direct investments in the start of. this would put the uber valuation at $40 billion. at the most recent valuations, it was $69 billion. joining me now is a management capital partner who was the head of communications in the americas and also with us is someone who covers uber for us. where do we stand right now? the am waiting for documents to get sent out in the next few hours. today is the expectation and it

is a little behind schedule, as has everything been in this deal. this is the opening salvo from softbank. $33 a share translates into this valuation and they will see if they can get enough people to meet the outstanding shares they want to acquire. >> what is the likelihood of them acquiring that? >> this is the debate we will have an there is an appetite for liquidity. people want to sell and do not want to miss out. some people know that the price could go up. sell. have shares to what are employees talking about? >> there is not a lot of information out. all we know is what we are reading in the press and there is not a lot of communication with former employees.

i am wondering if i can sell. do employees feel about a discount like this? for each employee, it is probably emotional. it is an emotional issue. you have to determine whether the, lower -- they have to determine whether the lower value is enough. tiedvernment reforms are to this. the 17-person board that happens and some of the power gets restricted because of the super-voting shares losing power and all of that is contingent on this deal going through. there is a lot of pressure to get this done. >> the employees do not have much of a say in this. this is down to the biggest investors and the biggest shareholders, like travis. thatere is a misconception

they have a say in what happens next. there are a handful of people and mostly investors who have all of the say and we are just along for the ride and we hope it is a good one. thehat is happening behind scenes? >> the documents contain financial information and risk factors. you say you are selling your shares and you need to know something about the values of the shares to assess. softbank is making a calculated decision about the share value. wonder about other skeletons in the closet. what do you make of the news of the big hack? >> i do not believe in a coincidence and this came out two days before thanksgiving in the middle of this deal.

it is a little too perfect and there is some intention to make investors make a quick deal with softbank. >> a trial has been postponed and there have been harsh words uber about another cover-up. >> another employee indicated used encrypted messages and deleted communications to not be found in court later and that is important here because google is andng to turn up the files there is a question as to they would ever find them, if they were using encrypted services. >> there will be some cleanup for some time. what other skeletons are there in the closet?

>> you are worried about what you do not know and what is coming next and you have to do a review of each division and department to find other issues that exist. hopefully, most of them are exposed, but your job is to deal with these. there are probably other things out there that will come up and they will have to manage it. >> there is london and other investigations. >> sullivan is the chief security officer who was pushed to a lot ofs tied questions and his team is being looked at closely. the new general counsel will have to look into what the strategic services group, the uber internal counterintelligence group, what they surveilled and whether there was hacking. there are a lot of questions in relationship to the waymo case

and others. probesre five criminal and a ton of issues that u.s. attorney's offices are looking at to try to figure out whether anything was criminal and that is an ongoing situation. are there more shoes to drop? >> on the record, not that i know of. there probably are. , ite get closer to the ipo is likely these will be exposed and the company will move on. >> we will be waiting on the update. thank you both. from one ridesharing firm to another, lyft. valerie jarrett has taken on .everal new roles at

her most interesting is her role on the board of directors of lyft. >> over the first few months of lyft and i wrotrode would talk to the guys and they said they were paid well. i think that speaks volumes of rse company and it took yea for them to reach 100 million customers. so, they are growing exponentially and went from the beginning of this year, serving 54% of the american people. now, 95% have access. you look at the way they deliver their service and you could do better. been associated

with women and women have had a significant role in lyft. 40% of your drivers are female. >> i don't know if it is that high. feel safen if they and they say, "absolutely." the company goes to great lengths to make sure that drivers are safe. visited senior management and saw diversity and the fact that they had women in key roles. i think that they cut against the grain of the tech reputation. they do it because they think they provide better service that way. >> valerie jarrett, the former senior adviser to president obama. is goingman of the fcc on the defensive, defending his plans to repeal net neutrality.

issue witheated an web companies and celebrities to dismantle the internet protections. he took aim at twitter and he said that twitter is part of the problem. the company has a viewpoint and uses their viewpoint to discriminate. meg whitman prepares to step down from her company and we talk about the challenges ahead for her successor. bloomberg technology is live on twitter and you can check us out in new york and san francisco. this is bloomberg.

host: the federal aviation administration warns of collision risks between drones and airplanes. the drones can significantly damage engines and windshields on impact. incidencesmber of drones.olved that is over a 150 percent jump from a year ago. meg whitman prepares to step .own from the company we discussed why she is leaving and why the time is right for her and hpe. a transformation

that might be one of the biggest in global business history from a single company that was facing a lot of challenges to a nimble and agile company with hewlett-packard enterprise. it is well positioned for the -- well-position for the future and it is time for the next generation of leaders to take hewlett-packard forward. rightabout getting the person in the right job at the right time. think that antonio is the right guy for the job? he has been there for decades. >> i have said that the next ceo needed to come from inside and, when you come from the outside, which i did, the length of time it takes to understand the product and the culture is long and antonio and i crafted the

strategy and he will execute that strategy as a standalone company and he is a deep technologist. the next ceo needs to be a deeper technologist that i am. i am a consumer technologist. he is an enterprise technology executive. have argued that andneeds a landscape shift appointing an employee from the inside is not that. >> at think about the shift we have undergone and we shrunk down to about a $24 billion company and we made six or seven acquisitions in the last months. the largest one opened up a new growth frontier in the "intelligent edge." the edge will eat the cloud

because so much data is being generated at the edge. so, i think that the company is in good shape and we are less the pendant on the server business. we have value products and growth products and we have created a new category of infrastructure and we have developed flexible consumption pricing to keep workloads and pay for them as you consume the storage. so, i actually think we are in a good place with coherent strategy to match the needs of the market. >> how do you turn around enterprise spending with more companies outsourcing to cloud service providers? a large part of the market, but there are many

workloads and the recent trend we have seen is the multi-cloud strategy. there may be multiple public clouds and some will remain on trend and we have seen some companies moving workloads back on trend because it has gotten expensive in the public cloud and we have to enable a hybrid solution and help customers figure out the right mix where the workload should live and that is a capability we are is what ourthat partner does, help figure out where the workloads go to enable the future and the edge has as much pressure and it is growing like a weed. chill onis put a mergers and acquisitions as outside of your wheelhouse?

do you think that hp will be creative with doing deals? >> i think we had some posttraumatic stress syndrome and we did not make any acquisitions until aruba and we have to be very thoughtful. we took due diligence to an extreme. this,, i'm sorry about but you are the first acquisition. aruba has been an incredible acquisition for us and we got our momentum back and aruba has been fantastic and nimble. i think we now know what acquisitions work for us and it is complementary technology that we can put to our fantastic distribution system and partners and accelerate the growth of those companies and take out some of the overhead.

we have a formula and we have to not overpay., but we are going to get know-how and confidence to do good acquisitions. host: in what areas do you expect deal hunting? >> our strategy is three-fold. we power the intelligent edge and we have the services. we have cloud technology partners, as i mentioned. a company that allows us to meet her how much technology customers are using. we will be looking at small services acquisitions and something might come up in the intelligent edge that is germane to our view of that. few acquisitions and behavioral analytics. and, with hybrid it, there is

software structure space and we took our user interface and put it on the most prevalent server in the world, the 380. that turns out to be a winner for us, as well. if we make them only in those three areas, we will stick to aose areas because there is lot of room to powering the intelligent edge and making services that happen for clients. host: meg whitman. tune in later in the hour for more with meg whitman, including her thoughts on the trump administration and her own political aspirations. customers have discovered a security flaw in the latest version of the operating system to logthat allows anyone in without a password, even remotely. there is a new story out on the

bloomberg terminal. check it out. this is bloomberg.

host: the at&t ceo met with the top antitrust enforcers to offer a last-ditch attempt to avert a lawsuit blocking the time warner deal. according to people familiar with the matter, the proposal was modified to address concerns. the justice department sued the following business day. he was accompanied by a high-powered trial lawyer. the negotiations broke down after less than one hour. we are watching shares of roku pulling back. they had gained 31% and the

company was compared to netflix. a sales wi roku nner. a writer said it was time to pop a bubble. they called the maker of the television streaming device a "total joke." has 10 million square severalspace across countries. the terms of the deal were not disclosed. sticking with mergers, a movie merger. the number two chain is said to be in talks with a u.k. group. deal would create a bigger international rival. riggle is trying to find a buyer was trying to find a buyer in 2014, but was

unsuccessful. what is behind this rise? we will discuss. if you like bloomberg news, you can check us out on the radio siriusxm. this is bloomberg.

alisa: i'm alisa parenti from washington. you are watching "bloomberg technology." secretary of state rex tillerson is seeking to reassure europe that the u.s. remains fully committed to a european

security, particularly in france from russia. speaking at the wilson center, tillerson tried to dispel concerns that the trump administration is pulling back from nato by demanding european members spend more on their own defenses. ninee have detained turkish leftists. said thestatement turkish nationals, eight men and one woman, were detained in athens. authorities added that the operation was not connected with islamic terrorism. kenyon opposition leader atta'sued to protest keny reelection to the presidency. shortly after calling the presidency illegitimate, he was shoved into his vehicle as always fired tear gas at

protesters. a seven-year-old was among three people killed in tuesday's violence. global news 24 hours a day powered by more than 2700 journalists and analysts in more than 120 countries. i'm alisa parenti. this is bloomberg. it's just after 5:30 p.m. in washington, 6:30 wednesday morning in hong kong. we are joined by sophie kamaruddin. record-breaking gains on wall street. reporter: we will see if asian stocks will be able to track the headwinds. .sian investors asian stocks could be set to climate futures higher in sydney as well. now checking on the dollar as the u.s. senate tax bill has one less hurdle to contend with, and

the new fed hike -- fed chair spoke. the yen has little change. gold, little change after topping 1300. oil continues to slip. plus, markets are waiting to learn how long opec production .ups -- cuts will remain that is the rap here as we head to the asian session on this wednesday. more of the next with "bloomberg technology." ♪ emily: this is "bloomberg technology." i'm emily chang. one week after topping $8,000, bitcoin is approaching five figures, gaining mainstream

market affection -- attention. of the biggest balls on wall street spoke at a new york conference earlier. he urged caution. become thethis will biggest bubble of our lifetimes by a longshot. >> i want to record to show i didn't say that. [laughter] >> mostly because it is so global. they are starting a 500 million dollars fund to invest in cryptocurrencies and says bitcoin could easily match the gold market cap. adam white is vice president of coinbase, an online platform that allows you to buy or sell club -- bitcoin. it has almost tripled its user base this past year, now standing at 13 million. biggest bubble of our lifetime, do you agree? >> i don't know if i would agree. i think the price is an easy metric for everyone to point at. it is widely covered, it is fascinating, it is one important

quantitative indicator to look at the success of this technology, but we spent a lot of time in the space looking at the utility, how many people are using the technology, what is the transactional daily volume? that is separate from the price and we are seeing great growth. emily: talk to us about the growth at coinbase, the accounts tripling to 13 million in the last year. where do you see that growth going? >> we started with around 5 million retail customers on coinbase.com. that is effectively the easiest way to get started buying and selling digital currency. we are reporting almost 12 million retail customers. we see coinbase becoming the easy on-ramp to the digital currencies base. volume,t total trading and we have seen over $50 billion worth of cryptocurrency traded on our platform alone.

these are leading indicators we are seeing average, everyday users beginning to adopt an experiment this technology. emily: it may not be the biggest bubble of our lifetime according to you, but there is a lot of volatility. let's look at the chart on the bloomberg. this compares bitcoin volatility to the euro dollar, the most traded currencies out there. what do you make of this volatility, and how can people put trust in this currency if this keeps up? >> it's a great question. i do think the volatility will be short-lived in the lifespan of digital currencies like bitcoin. we are in the early stages of this technology. we are watching the market engage in this process of price discovery. we are seeing rapid increases and also recoveries in the price. what's interesting is i co-authored a paper last year, and we look at the 2016 volatility of bitcoin compared

to asset classes. we found that coin was as volatile as both oil and less yeartwitter stock in the 2016. in my opinion, we are seeing volatility right now that is not a bad thing. more liquid markets with institutional capital entering the space will decrease volatility and make digital currencies like bitcoin a stock. financial emily: we heard from glenn hutchins, cofounder of silver fraud as ithis relates to bitcoin. take a listen. >> there has been a discussion of bubbles and frogs percolating around our universe. to makeit is important a distinction between a bubble and a fraud. and look at 1990 922 thousand, internet stocks

were in a bubble. it was pretty obvious in retrospect. but if you had bought and held the best internet companies in that time. then, you would have made a lot of money. very clear the internet was not a fraud. emily: what do you make of those remarks? -- drawld drop parallel parallels. we are now in over 300 dollars -- all digital currencies $300 billion for all digital currencies. bitcoin is one of the largest. this is far from a fraud. we have the ability to set bitcoin to anyone in the world as if it is email. instead of sharing information, we are sharing value. that will have a very tremendous impact, a big case with how the financial system will work

emily:. fred wilson of union square ventures told me he thought that ethereum could surpass bitcoin. is that possible at this point? >> bitcoin has the reputation and the most widely recognized rand of digital currency, but it is only one. the best comparison to something um,e bitcoin versus ethere bitcoin is a worldwide database. a world attempts to be run supercomputer. you can run scripts without any central entity. to me, that is not competitive to bitcoin and will not replace it. it is complementary. we are seeing other projects working on a medical octane to work on these individual block chains. --

emily: tesla ceo elon musk says he's not the person behind a bitcoin and he has forgotten where he keeps his. he tweeted on tuesday and response to a viral blog post suggesting he was the creator. he said "not true. a friend sent to me part of a bitcoin a few years back, but i don't know where it is." coming up, more of my conversation with hp ceo meg whitman. we talk about politics and her own political ambitions, next. this is bloomberg. ♪

emily: amazon's expansion into the grocery industry may be pushing more supermarket chains into the arms of instant cart. the second largest traditional grocer in the u.s., albertsons, will team up on same-day delivery. earlier this month, kroger also said it was starting a pilot t at some ofstacar its stores in southern california. now, more of our exclusive conversation with hp ceo, meg whitman. we talked about the current political landscape. we talked about what of the hottest topics in washington, tax reform. >> i think we appreciate the reduction in corporate tax rates, although we pay below 35%, has divorced -- as do most

corporations. we like that we can bring cash trapped overseas back and we can make investments back to the u.s. there's a lot that we like about it. i think being a californian, it is going to be challenging for people who live in california, new york, and new jersey if the state income tax against your federal reduction is lost. that will make it more expensive to hire people in california. i don't think it hurts necessarily the u.s., but it will put pressure on the california workforce and other companies in high state tax jurisdictions. what: the big question is you are doing next. any interest in reentering politics, or have politics become too toxic? be in electednot politics again. i can't imagine it. that in 2010.d at i learned a tremendous amount.

i am a better ceo for it. i think it is probably not my future. will do.ure what i i will probably take time off. i in working pretty hard since i was 22 years old, so i will take time off and see what the future reveals.i'm a big believer that things reviewed themselves -- reveal themselves. if you told me after the 2010 governor's race that i would be the ceo of hp, i would tell you there's no possible way. we will see what comes next. emily: does that mean you would be open to an appointed role like treasury secretary or something of that nature? >> it depends on the administration. probably this administration isn't a great fit for me, but never say never. we are a long way from that. we will see what happens. emily: speaking of this administration, you are a republican who supported hillary clinton. what are your biggest concerns going forward? >> i think it will be important to the administration, as they

acknowledge, to get a real legislative win. i'm hopeful they will be able to put together a tax reform package that will pass the house and the senate and be good for the economy. the administration does need to get momentum in terms of things getting done. i think that is something that i know they are focused on, and we hope it comes to fruition with the tax reform package. emily: we've seen a lot of revelations about sexual harassment and discrimination in the tech industry, and the media, and hollywood. you have seen it all. what is it going to take to change this? >> we may be at a tipping point here. i don't know about you, but in career, i've never seen anything like the environment now where women are much more free to speak up. when people are free to speak up, it changes fundamentally the culture.

we may be at a tipping point that is actually going to be really beneficial to workplace environments, two women, and men. while ine in a history, there is something big that happens that changes the culture and i'm hopeful this is it. we all have to work hard to make sure the workforce is safe, it is egalitarian, everyone has the same opportunities. i think everyone has recommitted to that given what has happened in the last couple of months. emily: you were up for the top job at uber. i'm sure you've seen from afar they still have a lot of issues to iron out here there was a massive hack attack they covered up for a year. do you think you dodged a massive bullet, or do you think there is hope for a real turnaround at the company? >> i am an optimist, and i have hope. i think they will do a very good job. he's got a challenge, but i think he is a capable executive.

the service is remarkable in many ways. it has network effect. i'm a believer of that culture change can happen. obviously, very different challenge at hewlett-packard. the bones of this company are incredible, but we had to make culture change. we had to be faster, more nimble, we had to be current. we were able to do it. i will say that the founder was incredible of the company, but i think it is living proof that leadership from the top 10 change culture. i wish him the very best. emily: what is the likelihood we will see you in an operating role in technology, and if so, where? >> [laughter] i honestly don't know. said, i will take some time off, see what reveals itself. i'm a little more cautious this time. you might remember when i last ebay, i thought i

would never be another ceo. i'm cautious of never say never. will see what happens. there are lots of interesting things going on in california and silicon valley. we will see. emily: hpe ceo meg whitman. coming up, a developing story -- put your apple mac yet risk? apple responds to a newly security -- newly discovered security glitch. and jeff curry, goldman sachs global head of security joins the daybreak america team. catch that at 8:30 a.m. eastern time. this is bloomberg. ♪

customers have discovered a significant security flaw in the latest version of the operating system for mac computers. the issue allows anyone to login without a password, potentially making private user data vulnerable. the glitch is a rare and potentially embarrassing oversight for apple, whose software is known for being less prone to malware infections and hacking. apple issued a statement saying they are working on the software update to address the issue. joining us with more details is mark gurman. you reported you could even hack into computers remotely. what is going on here? reporter: there's a flaw that has to do with the root directory of your mac, having to do with the underlying filesystem. you can log in with no password root, which isme basically a term for the underlying directory.

so i don't have to type in emily chang, i just type in root and whatever. but apple says there is a software update and a fix coming up. users can set up a password to that root account themselves. emily: so anyone can hack anyone smacked right now? reporter: basically. there is a feature to have auto logins so every time you open your computer, it goes straight to your account. one of the default settings is to disable that. the same flaw works in the settings panel. it would allow you to go in with the root username and no password, making your computer less secure, turning off the firewall, allowing intruders to get into your computer. this issue basically opens up a can of worms and hopefully gets fixed very soon. emily: if you don't have a computer in your possession, someone can hack in remotely? reporter: yes.

if you are on the same network, there is a protocol that allows you to remotely use the person's computer, look at their display, access their files. i can type in route as the username and no password from my mac, and get all your pictures and documents. emily: updating your software on a mac is a lengthy process, though. reporter: they trended down. now you can go to the app store and it will show you the update. 10.13.2.robably be they have been working on it for a bit. most users can get it done in 15 to 20 minutes. emily: these things can happen. they don't often have been with apple. how unusual is this? reporter: for the mac, it is unusual. on the ios side, i have been watching this for over 10 years since the beginning, and every

year or so there was a log in flaw that was complex. i used to joke that you had to stand on your head and dance around to get in. there were compensated once. but this is the worst one i have seen. simpleis a stupidly one. just typing in the word root, no password. i've never seen that. apple has a quality assurance department that is designed to test all sorts of different things, key commands, flaws, making sure they don't go into the shipping software. records of the overall and the years the existed, this is one flaw. but apple likes to say they are only as good as their last product. this is a flaw that will be on people's minds. as soon as they fix it, people will forget about it. emily: how was this discovered? reporter: we saw it on twitter.

it quickly spread. onas able to quickly verify my computer. i grabbed a colleague's computer who was running older software, and it wasn't working, so we narrowed it down that it was brand-new. emily: what is the timing on the update? reporter: it is to be seen. sometimes they take a couple days, sometimes a few weeks. this is getting so much press and attention right now, being on bloomberg tv, it will probably only take a few days.thankfully this did not happen during thanksgiving week. issuenny thing is this existed since high sierra was released in september, and is only discovered now. now we know about it and now i bowl fix it -- apple will fix it. emily: thank you for the update. that does it for this edition of "bloomberg technology." we are live streaming on twitter. check us out at bloomberg tech tv weekdays 5:00 p.m. in new

york, 2:00 p.m. in san francisco. that is all for now. this is bloomberg. ♪

♪ >> republican hopes of delivering reform by the end of the year. >> that set stocks to new highs while the dollar extended its gains. the snp rising the most in more than two months. faces hiswell confirmation hearing, telling the senate that it is coming together for a rate hike next month. betty: north korea fires its first missile in two months. president trump says he will handle it. >>