from delivering a massive tax cut for everyday working americans. final votes on the bill could come next week. chief sayslection uncounted ballots are unlikely to force an automatic recount in tuesday special senate election. republican roy moore has refused to concede chief says uncounted ballots defeat to demt doug jones who won in the deeply conservative state. alabama allows for a recount when the winter's margin of victory is less than half of 1%. the suspect in the attempted suicide bombing in new york was m a video today fro his hospital bed and a courtroom. he is charged with five federal counts of terrorism. he's being held without bail and will remain in custody until his court date. deputy attorney his hospital bea courtroom. he general ron rosenstein defended special counsel robert mueller before a house judiciary committee today. that testimony comes after the doj provided text messages between an fbi agent and a net

b.i. lawyer, some of which criticized the president. global news 24 hours a day powered by more than 2700 journalists and analysts. this is bloomberg. ♪ ♪ emily: i'm emily chang and this is bloomberg technology. coming up, apple's roughly $400 million bet on facial recognition technology. we breakdown the investment. plus, one days ago until the big boat to reset the internet. former fcc chair tom wheeler joins us to discuss a way neutralityhaf net is revealed. we will hear from t-mobile as the telecom giant prepares to

take on tv. apples appetite for deals grows. the tech giant is investing nearly $400 million in a maker of technology that is critical to the new iphone 10 features like facial recognition. this comes a few days after apple confirmed it by shazaam. shares have had their best days since 2009, soaring more than 20% at one point. here to discuss is mark gurman who covers all things apple. walk us through this deal. mark: this deal is part of apple's billion-dollar pledge fund to invest in manufacturing in america. this comes on the heels of president trump's proclamation of everything needs to be manufactured in the u.s. they are investing in finisar. they make lasers they can put in end bunch of different products, air pods. those are lasers shooting in your ears.

it is a laser used for face id that can recognize your face. it is an extremely important component for apple's latest string of products. emily: it is currently in the iphone x? mark: they are currently using products in the iphone x and they will be investing in it. they will put a chokehold on that market of sensors. emily: how many jobs are they creating here? mark: lots of jobs. what is happening with the $390 million, finisar can open a plant in texas they previously down. down. they can hire a bunch of people. emily: will this alleviate any supply chain challenges? in a sense, yes because that amount of money is going to ensure that that amount of money is invested in those components apple will need. emily: so, in a sense, right noh is being used in the emoji

technology as well. mark: the technology, the lasers is face id which replicates an emoji. an iphone x, it can scan your face and then the lasers can be mojis.or animej the i said, it is used for air pods as well so there are broughad applications. emily: this deal gives apple a competitive advantage when it comes to ar. mark: absolutely, they are one of the first companies to recognize the importance of ar. what you are seeing is apple investing more deeply in the more than you have seen other companies like samsung or google do. emily: you reported on apple buying shazam. how does this new news give us more insight into their m&a strategy? mark: you see two different paths happening now.

you see apple doing more investment in order to prepare for its future, but also big-time acquisitions like with shzazam. they will integrated into the company. that is one strategy. the other are these big investments, giving companies money for them to have enough resources to build components that apple needs down the road. i think we will see more on both paths. emily: mark gurman, thank you so much. target is getting ready to bring same day delivery to most of its stores next year. it is purchasing grocery delivery startup in a $550 million all-cash deal. it will give target same day delivery at about half of its 1800 stores next summer. it could be the target logistics operations as it tries to keep pace with walmart and amazon, who also offers same-day service. the internet

superhighway may be in for some slowdown. we look at the fcc's upcoming vote to repeal netvote to repea. and bloomberg tech is livestreaming on twitter. check us out weekdays 5 p.m. in new york, 2 p.m. in san francisco. this is bloomberg. ♪

emily: the fcc will vote

thursday to repeal the obama era internet protection known as net neutrality, rules designed to make the internet equal for all. so what happens if the vote goes through? cory johnson has that answer. cory: just as government rules for the interstate highway, government rules created the information superhighway, a cliche to be sure, but a useful metaphor. what better metaphor to explain the controversial idea of net neutrality. our ride -- a bandwidth hogging gas guzzling beast. a 1968 mustang gt. this car is a metaphor for a movie on hulu. if the interstate is the backbone of the internet, at. full sppeed. the backbone is big companies like at&t, and all of our fellow travelers are traveling the same road at seen speeds until we reach the exit. but that last mile is owned by a small group of internet service

providers like comcast, spectrum and verizon. without net neutrality, the last mile will have different rules of the road. we have gotten up the interface information superhighway at high speeds, but a monster truck could pay to go over everyone else, buying their own fast lane, leaving competitors in the dust. net neutrality requires that the last mile treat everyone the same. the protections were codified in 2014, but commissioners want to unwind those rules, abolishing net neutrality. and potentially leading isp's decide the rules of the road. emily: that was cory johnson. now to discuss more on thursdays looming vote, i would like to a back who oversaw the installation of those protections, tom wheeler. you were the chair from 2013 to

2017. welcome back. said in their memo of intent that the ftc is empowered to enforce these new rules. do you trust they will do so? tom: i think the ftc is a fine organization populated by good public servants. the problem is that their statute does not give them as theas much authority fcc has, and they are not a n expert agency like the ftc is. the fcc has been created by the congress and charged with the responsibility of of overseeing the important networks of the nation. 1934,e first time since with this decision, the fcc hasn the fcc is washing it stands, walking -- , walking away from

the congressionally mandated responsibility and they are only doing it for the most important network that will define the rest of the 21st century. it is inconceivable kind of action. emily: let's take comcast for example. which is set it will not violate net neutrality rules once revealed. a spokesperson for comcast singing any reporting that we are prepared to have prioritization is inaccurate. do you trust that given they were one of the companies that bought for years against it? tom: one is if they have no problem with it then why are they against the rules? secondly is, let's look at how comcast's committed, which is what they call it, to internet access has changed over the last year. when they were dealing with me, they used to say we are against paid prioritization.

now they don't say that. say we are not in support of unlawful prioritization and discrimination is the word they used. there is a big difference. if you are either for fast lanes or slow lanes, or against fast lanes and slow lanes. they used to say they were against it. now they don't say that anymore. emily: representative marsha blackburn was on bloomberg tv earlier today talking about how she believes internet protection should be enacted. take a listen to what she had to say. rep. blackbrun: no blocking, no throttling. addressing latency. those are proper steps that should be taken by congress, the house, the senate, signed into law by the president. it should not be something that changes every time you have a change of administration or you

have a new chairman of the fcc. emily: mr. wheeler, what do you think about a legislative fix for this issue? the fascinating thing is that ms. blackburn and her republican colleagues in the house have also been flip-flopping around on their position. them, was dealing with the line was no blocking, no throttling, no paid prioritization. again, notice of that whole thing about paid prioritization, about that lanes and slow lanes, is off the table. they don't talk about that anymore. the important thing is if there is any legislation, is it legislation that is moving backwards and taking things away that exists for american consumers today? or is it moving forward? the fact of the matter is that the open internet rule is today the law of the land and what's going to happen here is that the

republicans are taking away the protections that now exist for american consumers. emily: we have to talk about these fake comments that appeared in the public comment section, which of the vast majority of the overall comments in favor of net neutrality. these fake comments overwhelmingly against. attorney general eric schneiderman said one million comments were given to the fcc with stolen identities. this vote must be delayed until we can get to the bottom of what happened. comments were given to the fcc how serious is this issue of fake comments and the fcc's attempts to block an investigation of them? tom: well i think what is said here is the fcc's attempt, the trump fcc's attempt to block an investigation. howi mean, the portals to the fc

are open. it appears by all the reporting that various players try to take advantage of that, use bots and fake names and have people who were dead file. what is disappointing is that the trump fcc is not saying here, come look. let's see what was going on. help us solve this problem. emily: so, we have a question from a viewer here about whether it is really better to favor the winds of a google and facebook rather than a verizon and at&t, really investing in the infrastructure of the internet. tom: i think we go back to what cory did in his excellent introduction of what net neutrality is, because there is a huge difference between google, facebook, verizon, at&t and comcast. one is about the networks are

the highway. we want those highways to be fast, fair and open. now, i think probably what your viewer is commenting on is there untrue statement that is theting around that somehow internet service providers have not been investing as a result of the open internet rule. but the fact of the matter is if you look at what capital investments have the internet service been since the open internet rules were adopted, they have been climbing. you look at the revenues. the revenues are climbing, the profits are up. their stocks are at record levels. so the fact of the matter is they are doing quite well. none of them have said to the ftc or to any of their shareholders that their future

ability to invest has been threatened. and so, i think we have to differentiate between lobbying rhetoric and what is really happening in the financial markets. emily: what do you think happens in the inevitable lawsuit? do you see this order being upheld? tom: i hope not. it will be in interesting challenge in the court. the order that we passed went to court twice and was affirmed twice. that is an important precedent. the question is has the fcc built a fact-based case? not an ideological case, but a case that things have changed so dramatically in the last two years that they

have to totally wash their hands and walk away from any of the responsibility that congress gave them. i think that is a heavy lift. emily: all right, former sec chair tom wheeler, telling us what you really think. thanks so much for joining us again. thanks so much for joining us again. we will continue our coverage of the effort to repeal net neutrality on thursday when current fcc commissioner brandon carr joins us on the show after the vote. coming up, could amazon's alexa help diversify your portfolio? our future investing series is next. this is bloomberg. ♪

emily: bitcoin is having a rough 24 hours, falling more than 8.7% following a series of record-breaking trading sessions as futures began trading.

janet yellen was asked about bitcoin and was apprehensive about the world leading cryptocurrency. len: bitcoin at this time plays a very small role in the payment system. ofis not a stable source value and it does not constitute legal candor. it is a highly speculative offset. firms major investment have slowly been playing catch-up incorporating new technology, so they are also fearful big tech giants will threaten the way of doing business. could google or amazon swoop in and push firms like fidelity on their heels? willmer willmer covers this

topic as part of our future of investing series and joins us now from boston. how might this happen, how might a google or amazon disrupt black rock google or amazon disrupt bk rock or fidelity's business? sabrina: a google or amazon could offer mutual funds or etf's on their platforms. they can also offer financial advising and brokerage services. they could get into the business in a variety of ways. they can also get into the banking business. we have already started to see this happen a little bit where alibaba in 2013 started offering a money market fund and it has become the biggest money market fund in the world. so, there is no reason that amazon could do something similar where clients could store their value in their cash in a money market fund. definitelyd google recognize that after what --pened with alibaba fidelity and blackrock. fidelity is taking steps to protect against disruption by investing more than $2.5 billion in technology each year. they took a stake, or bought e- money, a financial planning

company, in 2015. they have also been doing a number of experiments on amazon's alexa, working on some of the software where a customer could go in and ask where they are in their retirement plan or whether they would be able to meet their education goal. alexa would come back and say you are not on track to meet your goal, but here are this that you have to take to actually meet that goal. that is kind of a work in progress right now because they don't have voice identification. right now, fidelity labs is that but the technology does not seem to be there yet. that is one example of what the future could look like for these firms. blackrock is also -- emily: how that but the technology does not seem to be there yet. likely is it that that future arrives? sabrina: there are a couple of things that are standing in the way of tech firms, including regulation.

if they get into the money management business, they would have to be considered a fiduciary and being a retailer is very different than being a fiduciary. they can also take a reputational hit if they are managing funds and lose money. that can also hurt their brand. but consumers are ready for this. there was a survey where more than 50% of high net worth would bels said they willing to put their money with a google or amazon, have them manage their wealth. i think they like the efficiency. but there are also privacy concerns and i think people still want that human touch. emily: sabrina willmer, we will have to leave it there. thank you so much. emily:that is part of our futurf investing series. coming up, t-mobile u.s. is stepping up tv as the wireless

carrier prepares to enter the crowded field of online television. we will hear from the coo of the wireless carrier next. if you like bloomberg news, check us out on the radio. you can listen on the bloomberg radio app, bloomberg.com and siriusxm. this is bloomberg. ♪

♪ lisa: you are watching bloomberg technology. it lets start with a check of your first word news. president trump spoke to middle income americans and young republicans at the white house today to pitch the tax overhaul

plan working through congress. president trump: if congress sends me a bill before christmas, the irs -- this is just out. this is breaking news. has just confirmed that americans will see lower taxes and bigger paychecks beginning in february. alisa: the final vote on the bill could come next week. senator john mccain is receiving treatment at walter reed medical center for side effect of his ongoing cancer therapy according to the arizona lawmakers office which call the treatments normal. senator al franken says tina smith will make a u.s. senator. minnesota governor mark dayton appointed smith, the lieutenant governor, to fill the democrat senate seat until a special election next november. franken announced his resignation over sexual assault allegations. prime minister theresa may zone conservative party gave her limited veto power over the u.k.

exiting the block. guaranteeing the parliament will .et a meaningful vote replace --someone to condemning president trump's recognition of jerusalem as israel's capital. 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. we are joined by david with a look at the markets. good morning. david: good morning to you, alisa. markets,cture across the equities looking mixed.

across a lot of the major peers right now, and we're looking at -- it really speaks to how a stronger currency might be counterproductive to a lot of the equity markets. decisions in asia and the bank of england. we will have more from bloomberg technology next. ♪ this is bloomberg technology, i'm emily chang. t-mobile u.s. has announced plans for a disruptive new tv in 2018.o launch

and signed a pact to acquire later three tv to help develop the strategy. shares of cable district leaders fell after the news was announced. the t-mobile chief operating officer in denver, we talk about the strategy behind the deal. >> this is a market that is filled with points and is the most hated industry of america. brand as the i'm carrier and the history of solving customer points and wireless, we are poised to make a big difference in the $100 billion pay-tv market. at&t and verizon have been exploring the video market as well. >> what you see from at&t is more of the same.

the way of getting into this was tv and create t bundles people don't want. in order to get a decent deal, you have to drill a satellite dish and to the side of your house and be fed linear one-way uncontrolled tv services from outer space. it's a wonder people are leaving this -- it's no wonder people are leaving this industry in droves. it doesn't tell the whole story. are leaving rates of 25% to 30% a year. they are abandoning old-fashioned linear tv. -- what we are offering to do is bring together the best of mobile video and home tv and create something that is totally disruptive in a market that needs disruption really badly. emily: you expect the deal to close in a matter of weeks. what

are your regulatory concerns given the doj's opposition to at&t time warner? >> we don't expect any. we will close right after the new year. this is really exciting for us. it will be one of the key ingredients. we are building a service you have never seen before. you can be pure way through to try to find things and it pales in comparison to the level of engagement of social media fed a mobile video that our customers will bring together these worlds and make tv not an island of its own anymore and really change things up. the possibility of a sprint t-mobile tie up has been

simmering for years and hasn't happened. and one of status the chances of it happening in this regulatory environment? >> we look long and hard at it and it's a shame it didn't come through because there are some great benefits to a merger like that. we have been looking at later three tv and the launch of t-mobile into the tv experience with or without that deal. it made sense if we did that deal and it makes sense by itself. it is just this marketplace, a market that is moving way too slowly. and it is not serving customers needs. market.$100 billion we are in an incredible position to disrupt. as is standalone t-mobile. emily: you are saying it is off the table and will never happen? wrecks i'm not saying that. i'm saying we worked hard at it and it didn't happen. for we do now as a team is what you would expect us to do. we are expecting to run this

great company and it is a great company in a great space. where the only ones with service revenue growth. we finished 18 quarters of acquiring more than a million subscribers a quarter. to main thing people need know, as you look at t-mobile as a standalone company, all of these worlds are converging. all content and communications are landing on the internet and the internet is transitioning to mobile. we're the only growing mobile internet company and we are in a great spot. emily: our conversation there with t-mobile coo mike sievert. unveiling the latest vision for networking solutions. our guest explains why simpler is better. this is bloomberg. ♪

watch forcontinue to a possible deal announcement from 21st century fox and disney. as for what some a table, said to retain its real estate portfolio including the storied film and television studio lot in l.a. the arrangement would allow the new spinoff to rent studio space to disney while fox news, the fox broadcast network, and the fs one sports channel would be able to remain on the property. two different networks wrapped conference wednesday. the company outlining the updated vision for simplified networking. it was to change the way operators interact with the network, making humans and machine interaction more interactional. you see time, some to find

networking. however that make the market grow? >> when i joined juniper 20 years ago, it was about scale and performance. keeping up with the insatiable appetite for network capacity. today, the issue is complexity. it is lots of talent and causes a cybersecurity risk. we put a stake in the ground saying the way we will solve this problem for our customers is to take on the burden ourselves. ultimately, that frees up capacity for i.t. and operators to grow. emily: and the router businesses shrinking and companies are replacing the hardware with software. how do you overcome that? cracks it is a flat market, but there are certain segments of the market where revenue is growing. that had been a good driver for us. security, and it has been a great growth driver.

it continues to be a growth driver for us in the future because it is part of the cloud transformation. even facebook has been actively talking about using their own software and becoming a larger part of the networking market. what is juniper's play in that world? >> we have peers in the industry that our competition and we compete with our customers like the hyper scalars that have the ability to develop their own infrastructure. we have to act like we are always on our toes innovating. including themselves, sometimes. emily: you mention the opportunities outside of routers. what is the plan to get back to growth, and what can we expect? year with ad the lot of momentum and the second half of the year has been a bit of a challenge because we have a high degree of customer concentration.

cloud providers, cable operators in the world. that means when there is a product transitional and architectural shift as there is right now, it causes a bit of a hiccup in the business. as in the long term, as long we remain relevant and competitive, i am very optimistic. emily: and in the last two quarters, what is happening there? >> a few things. there are geographic challenges that we are betting on things in the asia-pacific. there are supply chain challenges, especially around commodity pricing of memory. in the business itself is shifting from routing to switching. we have a plan to recover. emily: there was a report that juniper was subject to a takeover bid. would you listen to offers? >> i am running this company for standalone success. i am optimistic about what coming ahead.

emily: do you see yourselves as an acquirer? of what? >> yes. we focus on the internal organization agenda. making networks simpler, it can help us accelerate the strategy. a great opportunities out there to be an acquirer. emily: the sec is poised to repeal the neutrality tomorrow. >> we believe in an open and free internet that is great for all stakeholders and encourages innovation all around. emily: does that mean this rollback is bad? a complex matter and a complex issue but we fundamentally believe that we don't want to do anything to take back from internet that allows people to innovate and make money off of it. emily: how would it affect juniper's business? see mode in wait and

right now, listening carefully. a black-and-white issue. there is a whole spectrum of ways it could go at this point. you here.at to have thank you for stopping by. still ahead, yet another china faced -- china-based fin tech took place in new york. and coming up this thursday on bloomberg tv and radio, full coverage of the european central bank decision. kickingnews conference off at 7:45 a.m. eastern time. this is bloomberg. ♪

emily: in today's "out of this world." astronauts usually have to wait to see movies in theaters on earth. disney has arranged a screening of star wars: the last jedi aboard the space station as it premieres in theaters. jan pool is now the fifth chinese financial tech company to go public in new york this year, having debuted this month. early investor in the online financial platform and was one of google's first employees in china. rowena spoke with me in shanghai and started asking about this trend of chinese in tech companies listing abroad. the marketing in china will be bigger than even in the marketing in the u.s.. of the the first batch

companies going ipo in the new york stock exchange. companies that are being listed in hong kong, substantial market cap companies. and you will see potentially even more next year. concerned should investors be about the risk? a micro-lender just listed a few months ago but its shares are already plunging when china said it would tighten regulations in the lending space. james: certainly. the government is really coming out with more regulations. particularly for lending businesses through the internet. just in the past week, there is a clear regulation on the total interest and fee caused. and there are guidelines in terms of the appropriate numbers that should be used.

and i think as the regulation catches up with the internet , that happens in the online payment space. and the online media space. andhave the company grow the government tries to learn and come up with regulations and licenses. that will help to clarify the regulations. and it will be positive news for the players to have a clear regulation to stick with. volatility innly the stock. it is something investors should also pay attention to. joining lightspeed, you let efforts in china more than 10 years ago. bloomberg is reporting that google is trying to get back into the country. time, with the

artificial intelligence software. what do you make of that strategy? recognizedink google , and's internet market google definitely wants to engage users in china. i think there is certainly regulatory efforts that need to be made. i think google is learning to .evelop an approach think as the technology from mobileeloping internet to more of an intelligence-based service, has a very publicized

, and offers services inflation chinese and english. you try to really engage the users. there is still more work to be done. i think they fully realize that. also alightspeed is rental service in china, coming up against increasing competition. had you see that shaking out? are there any comparisons between uber and dd? james: i do see some of that. doing a fantastic job in the u.s. and other markets around the world. china market is very unique.

they are clearly the number one players. the team will be entrepreneurial. for example, vacation rental in the u.s. will be listing on the internet and it can subscribe. , it isa and the owners very well serviced. the property management service. it is very critical to ensure high-quality experience for the users. there were a lot of investment efforts in china, but the pop

companies in china, dd is really well-funded and very experienced. toy will be able to continue take a leadership position and inilar things will happen the rental space in china. over the past several years. into a degree, i think so. it will reflect recognition. the top 20 companies. it is a tremendous demand.

they come to the market, and some of the late stage companies valuation. overall, i think it is a very vibrant market because there is to startups.oming it is shifting to a business model. there is more hard core technology innovation. this is a very attractive venture capital investment point of view. james mi withs selina wang. remember, we're live streaming on twitter. it check us out at 5 p.m. new york and 2 p.m. san francisco. that is all for now. this is bloomberg. ♪

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♪ >> take a hike. the fed and the last meeting of the year with a 25 percentage point -- 25 basis point rise. in 2018.e seen >> bloomberg suggests the strongest u.s. economy may trigger to hikes in the first quarter. and president trump says a republican tax bill is close and it will be a historic victory for america. >> fox is expected to reta