the president traveled to salt lake city to make the announcement & those declarations. the move is supported by utah's top republican -- republican officials, but opposed by tribes. the supreme court will allow enforcement of the trump administration's travel ban, affecting eight countries, six of them with a muslim majority. judges are allowing the restrictions to take full effect. those against the ban collet discriminatory and the violation of the u.s. constitution. schumerlosi and chuck hope president trump keeps an open mind when he meets with them thursday. the top two democrats accepted an invitation from the president for a summit to avoid a potential government shutdown. federal money runs out at midnight friday. wasfirst ever text message sent 25 years ago this month. a british engineer sent an sms

to the then-owner of vodafone. it simply read "merry christmas." global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. i am alisa parenti and this is bloomberg. ♪ emily: i am emily chang and this is "bloomberg technology." big tech in the tax overhaul. offshore profits impact silicon valley. the bill becomes law. vc demands as tech start up on pace to collect $19 billion from investors. omi potential, is $15 billion a realistic target?

we discussed what could be the ipo since alibaba. but first, to our lead. early into saturday morning after a drama-filled weekend, senate republicans amassed the votes they needed to pass their version of tax reform. while the bill still needs to be reconciled with the house version, we have a better read how this could affect the tech industry. >> it was a round of applause for gop senators as they passed their version of a tax bill, pushing the trump administration closer to its first piece of signature legislation. pres. trump: if they send it to my desk, i promised all the people in this room, so many friends in this room, i promise you i will sign it. i promise. i will not veto that bill. >> tech companies have spent big to make sure there interests are heard. they stand to benefit in a few ways. it would slash the corporate rate from 35% to 20%.

but they already benefit from an effective rate. cash is stockpiled overseas, big tex stands to benefit, which allows them to avert taxes on foreign earnings until they bring them back to the u.s. that rate is 7.5% to 14%, down from the current 35%. pres. trump: if we get this passed, i think we have to as a country, i would say it brings $4 trillion back into this country. >> in our view, it should be a repatriation. it means it should be a required tax. you are not asking the people that have had earnings from their international subsidiaries if they would like to bring back money. >> the current bill would make it a voluntary repatriation. the question stands whether bringing back this offshore

money would go into anything besides buybacks and m&a. last week, telecom firms could earn big, if expenditures make it into the final bill, theoretically allowing them the cyber backbone of the nation. in the meantime, it is getting ready for the president's desk. emily: the trump administration wants tech companies to bring back their overseas stockpiles keeping apple from freeing tax havens like ireland. columnist shira ovide joins us now. the tax rate is a lower effective rate, but the rate is already low. how much of an impact will this have? every business wants lower taxes, that has been clear. companies in tech and outside of tech are very happy to have a

lower tax rate. even as you said, a lot of these companies are not paying the 35% statutory rate because of tax breaks and other reasons. emily: what about repatriation? how much will this bring back -- $4 trillion as donald trump said? shira: i am not sure where he got that number. there is several trillion dollars that are permanently invested overseas. but companies like apple have done stealth repatriation. apple has $250 billion or so parked overseas. they also borrowed $100 billion in the last few years to do things like buying back their shares, issuing dividends. you can look at that as a way to repatriate money without paying tax, which is what apple might be able to do under this proposed bill. emily: there was concern over stock option legislation that was not in the house bill. it was dropped from the senate bill. where are we with that?

shira: it was the start up -- startup immunity's worst nightmare. one said, there was a version of this in the house bill that looked like it would force pay taxesmpanies to immediately, even before they were able to sell shares. that would've put in undue burden on a lot of corporate workers here in silicon valley. emily: what do you make of the deal apple has made with ireland? an escrow fund to pay back taxes? shira: this dispute over iris taxes with apple is going to carry on for many, many more months. if you remember last year, the e.u. antitrust authorities said you have improperly given apple a tax break that has allowed the company to avoid $15 billion worth of taxes over the years,

and you have to get that back from apple. there is a dispute about what to do with that $15 billion while apple, ireland and the e.u. fight over that money. emily: how do expect that the play out? shira: it will be under litigation for a while. even if apple has to pay, it is not such a big burden. emily: good to have you here in san francisco. broadcom is lobbying for a theirte revamp of acquisition plans. they nominated 11 independent directors. the hope they will approve $105 million offer. qualcomm initially rejected their bid. or numbers will be nominated at their annual staff older meeting in march. could sports betting expand outside of vegas? how new jersey is trying to win the right to legalize wagering within its borders. "bloomberg technology" is

livestreaming on twitter, check us out. this is bloomberg. ♪

emily: volkswagen is looking to take on the likes of uber. they unveiled a six cedar battery-powered bus. a modified van will roam the streets of hamburg next year.

they are expected to replace one million cars across europe and the u.s. by 2025. doubt sports betting has become increasingly popular over the years. much in part thanks to fantasy sports and betting plan forms like draftkings and fanduel. according to the american gaming association, american the legally gamble millions of dollars on sports every year. heard hours ofrt arguments in the case that could open the door to allowing new jersey and other states to offer legal sports betting. as of right now, they banned sports wagering in every state but the band the -- but nevada. a decision is expected by the end of june. lockeg us from l.a., mark . what does this mean? mark: it is an opportunity for sports to engage proactively

with -- to tackle the illegal sports betting market. it is a huge opportunity. emily: what action do you expect to be taken, how do you expect this to play out? overhauled, the 1992 act put in place to make gambling on amateur sports ,llegal, if it gets overturned we will see state regulation of sports betting. what that will mean, sports will have to take proactive steps to make sure the integrity of their games are protected and proper integration across the u.s. emily: how has sports betting changed in the last few years, especially with the rise of fanduel and draftkings? mark: it has evolved over time.

if you think about the data for sports betting, the fuel, the gasoline for the engine that is sports betting, what we have seen is a big increase, an explosion in the amount of sports data available. which people can use to put wagers on in different sports internationally. when you talk about the leagues, what you expect to happen there? mark: i think the leagues will and work with the regulators and various stakeholders in the sports betting arena, to make sure when the legislation does pass, if it does, it is done in a way it means the sports are fully protected. that the players and games continue to have full integrity, to make sure they are positioned well for the players, the fans, and the owners of the sport across the stage. emily: the u.k. and the u.s.

handle these issues differently. explain the difference. mark: the united kingdom has been a long-standing place where wagering is legal. even the queen is well known to bet on horse racing once a year. hasuse of that, the u.k. almost the gold standard of sports betting legislation anywhere in the world. it has been doing it for a long time. the united states is different in that sports betting has been outlawed for such a long time. really, the opportunity the u.s. has is to look at areas such as the u.k., where regulation has been well enforced and well constructed, to make sure any legislation or regulation put in place benefits all parties, including the players of sports, or the fans. risks, and about the

skeptics who say this is illegal for a reason? you mentioned at the beginning the american gaming association said the estimate $150 billion a year is wagered illegally. the key point is that by creating a proper, well-regulated, well taxed sports betting environments within the united states, that is done hand-in-hand with all of the stakeholders and relevant government authorities, you create a much safer environment where there is transparency and is taken outtting of the shadows and into the sunlight. that alone will drive a legal sports wagering underground and make it a much safer place for players to operate, and for fans to make sure they continue to have the belief and support of sports worldwide.

about $150ou think billion will increase if it is legalized, and what are the consequences? the: $150 billion is estimate of what is bet by americans illegally. what isompare that to legally bet in nevada, around $4.5 billion, it gives you a fairly good idea of the size of the market and the opportunity. by proper, transparent, well thought through legislation, you can those wages within a safe environment and make sure they contribute to things like sports andgrity, to transparency, making sure sports continue to provide a secure and safe place for them and their fans to operate. emily: mark locke, ceo of genius sports, thank you for joining us. negotiations among political

leaders over brexit come up short, we check in on how the tech industry is faring after the vote. this is bloomberg. ♪

emily: facebook will increase

the size of its staff in the u.k. by 50%. they are hiring 800 employees in london, in engineering. they are under scrutiny from british lawmakers concerned aboutbritish -- concerned russian interference in u.k. politics via social networks. a much hoped-for breakthrough on brexit. this after a series of twists and turns over the issue of an irish border. deadlines and negotiations remain in flux, but there is one sign of strength. european startups to get money from investors this year, according to atomico. tom wehmeier joins us from london. tech andthis impact you in the u.k.? tom: good afternoon and thank you for having me on. it is the third year in a row we have published our report.

we are trying to use data to tell a story of what is happening around the technology industry across europe. we headline numbers are, have seen $19 billion invested across the region. what we think is interesting when you look at that number, the year ago when we took a look at this, we were celebrating the $10 million mark. orro events, whether brexit things like the election of macron on the other, are having an impact in terms of sentiment on the region's founders and investors. emily: do you expect brexit to have a longer-term effect? one of the things we see is interesting in terms of key trends playing out in europe. it is what we call a battle royale for talent. this fight for technology talent, there are three interesting fronts.

we aref all, the more seeing companies founded and funded across the region, you are getting more and more startups competing for technology talent. we have also seen the landing and expanding a major technology giants, particularly from the u.s., which adds to the intensity of competition. isthe third front, europe becoming more and more engaged and on the hunt for the right kind of tech talent, seeking to be part of the transformation happening around them. when you think of those three key trends, they play out around the borders of europe. some of the data we have shown in the report is, there are interesting signs how inbound technology talents coming into the u.k. tech industry and on the outbound side in terms of tech talent leaving the u.k., is being affected by the situation we have seen around brexit.

brexit has not happened yet. it is too early to tell, but what we do see is countries, whether it is germany, france, or smaller markets such as the netherlands or sweden, they are really on the hunt for talent. emily: the u.k. remains the largest destination for capital in europe. where does it go? tom: it has been interesting. one of the trends we have seen, in terms of rounds of different to 20, and to 10, 10 the mega-around the $50 million the, the capital deploys, absolute number of deals happening. where we have seen a decline is at the earliest stages in terms of rounds north of $2 million.

perhaps a stabilization in line with the trends we have seen around the world. expecting inre you the coming year, given the political uncertainty, global uncertainty? one of the interesting findings we have had, the more we see the building out of the foundations of the tech in terms of how entrepreneurs are engaging with the idea of entrepreneurship, whether it is supporting cast in terms of our pool of talent, we have 5.5 million developers in europe, one million more than in the u.s. -- whether it is the base of investors that work the, from our angels at early stages, to growth capital and into the public market, what we see is, those foundations are

the strongest they have ever been. means, the system is increasingly operating on its own, independent. a virtuous cycle where you see success reads success. happening, europe is seeing this built in its own image. we are not doing it the silicon valley way or the chinese way. there are three things that define that. we see at tech ecosystem that is thriving in terms of technology. specifically around artificial intelligence and around blockchain. secondly, europe's ecosystem is different from everywhere else, because of the incredible geographic diversity. also, the appetite you see here from the tech ecosystem around how it collaborates both with

corporates on the one hand, and secondly in terms of collaboration with governments we see. both can play a strong role in supporting what is happening. google,acebook, snapchat, amazon have plans to grow in london. thank you so much. the biggest bank in the u.s., j.p. morgan chase, snapped up wepay to get a leg up in the competitive industry of digital payments. ceo,ll hear from the wepay bill cleric out -- clerico. this is bloomberg. ♪

>> i am alisa parenti in washington and you are watching "bloomberg technology." the u.s. is opposing lessening the bail terms of former trump campaign chair paul manafort.

they say manafort cowrote an editorial with a russian writer believed to have access to russia's intelligence service. it is said to be a violation of the court order not to try the case. despite multiple allegations of sexual misconduct, president trump has endorsed alabama republican roy moore in next week's special election to the u.s. senate. said president trump called him to offer his full support, along with the message, roy."et them, u.k. prime minister theresa may met with e.u. officials today. efforts andur best significant progress, we and our teams [indiscernible] it was not possible to reach a complete agreement today. >> talks are expected to resume

this week. the irish board and they court of justice in the u.k. need to out. the organization for islamic operations at president trump's possible recognition of jerusalem as israel's capital is seen as a naked aggression against the muslim world. they said they should separate ties from any state that transfers its embassy to jerusalem. inael captured jerusalem 1967. global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. parenti.a this is bloomberg. it is just after 5:30 p.m. here in washington. we are joined by sophie kamaruddin with a look at the markets. good morning. sophie: good morning. asian markets may look on warily at the tech route on wall street, especially the drag on chipmakers.

asian investors have points on the agenda, key among them, a report on china's private sector. we are counting down to the rba policy decision. also, amazon's official launch down under. flipping the board, we have the dollar edging higher, while the yen looking steady. gold holding up to losses after talks of tax optimism. more with "bloomberg technology ." ♪ ♪ emily: this is "bloomberg technology." i am emily chang. aspmakers continue to reel, stocks seem -- seemed to benefit

from tax cuts. nvidia and two semiconductor indexes felt the pain, as well. cory johnson joins us. what is going on? cory: a lot of this might be out of concern the current tax bill coming from the senate preserves the minimum tax. what is this have to do with it so it can? what does this have to do with silicon? as it currently stands, could eliminate the tax credit that is probably the favorite corporate provision of all tax code. code andid of that credit could mean less spending in technology and on semiconductors. it would hit semiconductors first. this is after a fantastic run in the last two years. is trying toom

make the biggest tech deal in history happen by buying qualcomm. would this impact that? cory: we will see. the facts that broadcom was willing to go after this deal, whether the semiconductor acquisition takes place, it shows they have a lot of elasticity in terms of what they're willing to bid to get qualcomm. it seems broadcom once to get big at any price. i did some crunching of numbers before i came on here. if you look at the philadelphia semiconductor index, it has been traded for 24 years. better thangained 30% two years in a row. year.r the if you want to guess which two years the philadelphia semiconductor index had double-digit or better gains in consecutive years? emily: i have no idea, please

tell me. 1999.it is 1998, it was at the height of the dotcom bubble. only to collapse with the rest of the tech stocks. in the coalnary mine, something to pay attention to. it is a market indicator that tends to be lagging. emily: good context. our editor at large, cory johnson. over the next two weeks, bloomberg news will roll out a series on the future of invest in, capturing -- investing, capturing the convergence of investing in technology. , the the deal with wepay biggest bank in the u.s. can build up its relationship with start ups in silicon valley. we are joined by wepay ceo and

cofounder, bill clerico. talk to us about the terms of the deal. bill: it was a year to the day for the first visit. it was a great process of getting to know each other, shared vision of the market and shared strategy. we are not commenting on the deal that the transaction, but we think it was a deal for everyone. emily: how does it expand your business and there's? bill: it is about mining the technology of a silicon valley startup in the talent there. the scale, brand, distribution. talk to us about how it fits into the broader financial -- u.s. financial landscape. bill: it is disrupted by technology. traditionally, things were sold door-to-door or from terminals. now it is through software. wepay makes that easy for our software partners.

how might this help you take on competition, like square? bill: we do not view square as a competitor. they help small businesses and payments. but we are helping other companies build square-like experiences. we don't directly compete with them. emily: there are fascinating tech trends, the rise of ai, blockchain. how do expect that to impact the financial industry? bill: it is still really early days. we protect small businesses and allow an easier sign a bit -- easier sign up. it is still the early days. emily: you said you are in head of helping jpmorgan told up of their silicon valley presence. how do you expect to do that? bill: we are in this crazy

talent market. arein 20 miles of where we sitting, there are some of the best technology employers in the world. we are bringing in the expertise in hiring top talent and helping the bank understand and embrace that. emily: how do you get them, when they could work it facebook or google or airbnb? all: it is about helping small business owner get paid faster and take friction out of their day-to-day life. meaningful,ore helping optimize. help processso payments for crowdfunding, which is unique. where you see that going? is one of theding first technology verticals we started to play in. we made it super easy. it was a consumer trying to accept payments. we made it super simple for every day people to use.

we are applying that to bigger and bigger small businesses. block -- talked about blockchain earlier. what about bitcoin? every day we are evaluating the-impact, is it a fraud, what do you think? bill: small business owners are thinking about how they perform graces -- services. the credit card system is a great system for that. as we think about a coin and the future of digital payments, hopefully there will be ways to speed that up and take off that of the system. i am not sure bitcoin is a tool for small businesses yet. when it comes to the tax reform we have been talking about, what impact will it have on your business? bill: it changes by the second. i sure since we have been here there have been updates.

ultimately, if small businesses thrive and succeed, it will be good for us. it is too early to tell. emily: bill clerico, ceo of wepay, think you for joining us. 21st century fox said to favored his name as a buyer of its assets. fox believes disney is the best strategic fit and prevents few regulatory hurdles. the murdoch family is holding talks with disney and comcast to talk of combining shares of both companies. is debuting bitcoin contracts selling december 18, and more exchanges are looking to follow the move. why gibraltar says it is the right place for ipos. this is bloomberg. ♪

emily: facebook is looking at younger consumers. its new messenger app for children has no minimum age, but gives parents pull control over contactless. they want to compete with snap's disappearing messages. what goes up must come down. hedge funds are strategizing against the cryptocurrency. according to some, bitcoin is one of the greatest opportunities ever. contracts onng december 18 and nasdaq plans to offer futures next year. gsx, the gibraltar stock

-- nick cowan joins us. how will this work? nick: we have seen a huge explosion. $3 billion raised this year. a great way for start ups -- startups to access funds. there are no rules anywhere, but that is set to change. open andaid, let's exchange called the gibraltar blockchain. let's take what we know about risk and apply that to this space. investor protection, we want to ipo's knowl ensure

where they can go to get their trusted network. exchange,e to where you will have a sponsor network. sponsors are approved by our exchange. come of will help you the issuer, take your token to market. we have come up with rules that define who can and cannot be a sponsor. and the token issuer, what do have to comply with in terms of disclosure, transparency, due diligence? everything we believe currently is missing from the space. emily: they are currently traded on nasdaq and others, how do expect it to play out? nick: it is what this sector needs. if you look at what happened they are taking bitcoin and making it more available to the traditional traders. in terms of the token sales

business, you have the next two or three years. at the moment, it is early on in the cycle. some are struggling to get access to this because it is not a security, in a traditional asset class. we are saying, if you come to tokens say all issuers would have gone through a vetting process about best practices. and you can launch your token and be guaranteed a listing on the currency exchange. we think it is unique because it is a cryptocurrency exchange managed by a stock exchange. about the world around ipos and stocks. the: for us in the e.u., rules are very clear, governed by directives around transparency. you look at token sales, there are no rules.

if you are an issue were or investor, how do you know what you are taking is a utility, not a security? how do know the business is run by guys that are doing things proper? has a know the company technology staying on the right paper? we are taking the broad-based system and putting in place to have guidelines and rules for the ipo space. when it comes to skepticism around bitcoin, i told my guest earlier, some think it is a fraud or a bubble. these are very powerful people in the financial industry who have a lot of doubt about the future of bitcoin and blockchain. nick: we live in a jurisdiction where we have a forward thinking government and regulator. wet we have said instead is,

believe blockchain is here to stay. this technology will be a part of our lives as we go forward. we're the first to come up with a regulatory thiswork, to use technology. gibraltar, get license and get regulated by a financial services regulator. and that provides regulating certainty and consumer confidence. at the same time, having a principles-based system, gives you a framework. emily: how does brexit, especially with last-ditch sales efforts, affect what you are trying to do? nick: a lot of the thinking between what we were doing in january, brexit provided the catalyst. many voted to stay in the e.u. when the u.k. voted to leave, we

had to leave with the u.k. that was a shock to us. what we try to do with these regulations is repositioned gibraltar as a hub. future,to ensure our leaving the e.u. was not part of the plan. being in the e.u. means you can pass financials across europe. 90% is into the u.k., not into the e.u., at all. maputting gibraltar on the in terms of being a fintech hub, we can mitigate challenges we have once outside bit -- outside the e.u. emily: fascinating, thank you for stopping by. xiaomi set its sights on a 2018 ipo. this is bloomberg. ♪

emily: tim did -- tim cook in sundar pichai spoke at a conference in china. it marked the latest attempt to curry favor with regulators, they highlighted the importance of an open internet and how much their firms have helped global companies. apple ceo has so many reasons to stay in the chinese governments good graces. it accounts for 20% of their revenue in 2017. the iphone maker is facing tough competition from other vendors. they areof xiaomi, seeking a valuation of $50 million in an ipo. xiaomi is considering going public as early as next year.

they have suggested hong kong as the most likely place for shares to be listed. why is the startup looking for a public offering? wang.g us now, selina what do you make of it? selina: they are finally beginning momentum after dropping to number five in their local market. emily: how did that happen? selina: they capitalize on the rural areas of china. the rest of china is saturated with smartphone penetration. that is what they took advantage of. it is a great time for xiaomi, because they see a turnaround and they are trying to change the strategy of the company. they are investing heavily in new retail strategy and expansion. they want to get billions of dollars to accelerate expansion in emerging markets. especially in india, which they expect the double down in, as well as other emerging markets.

and spain, recently. ipo has reportedly been coming for some time. we asked executives, do we know if they expect it to go sooner, and why now? selina: now is a good time because they have the momentum, the excitement of the investment community, while sales are growing rapidly. there will be a lot of investor skepticism. a company that sells their products that razor thin margins, in hopes of getting the rest of their revenue, the rest of their profits, from their software ecosystem. they created these new products from a smart rice cougar, fitness bands, tikrit this ecosystem. they have not yet created the same thing apple or google has. there is no reason for them to come back to xiaomi and stay loyal to that brand. they have to prove the strategy at the sign they are running --

running against these razor thin margins. what is the latest on their plan? selina: they want to double down investment in india. also, indonesia, russia. interesting expansion plan. they want to see where they already have xiaomi fan bases. it is a company that grew fast through social media marketing. a huge community. markets these local they will find a local e-commerce partners to work with. for instance, in china they not only have their own xiaomi website, but with a work with alibaba and others. and in india, working with flipkart and amazon. emily: i know you will keep us

posted on the road to ipo, thank you for that report. that does it for this addition of "bloomberg technology." onare live streaming twitter, check us out weekdays. that is all for now. this is bloomberg. ♪

♪ >> it is 7:00 a.m. in hong kong and we are live from bloomberg's asian headquarters. i am david ingles. welcome to "daybreak asia." the travel ban is back, the supreme court rules it can take effect during these challenges and a landmark victory for the president. in europe, no brexit breakthrough in brussels. negotiations stumble on borders with the northern irish party holding the aces. betty: from bloomberg's global headquarters, i am betty liu in new york, where it is after 6:00 p.m. this monday evening. chipmakers taking a hit on wall street, they moved to more tax cut-friendly stocks. 2017