federal appeals court to force the trump administration to take action to ensure upwind states control pollution. three u.s. cities file a federal lawsuit against the defense department saying service members disqualified from gun ownership were not reported to the fbi. new york, san francisco, and philadelphia argued the doj failed to report significant numbers of records. homeowners in states with the highest property tax is are looking to prepay 2018 bills ahead of a $10,000 cap on the deduction for property taxes. the new laws come with the gop tax overhaul president trump signed last week. of puertoousands rican residents remain without power more than three months after hurricane maria destroyed the electrical grid. a study conducted this month by local engineers estimated

roughly 50% of the island 3.3 million people remain without power. global news 24 hours a day powered by more than 2700 journalists and analysts in more than 120 countries. i'm nabila ahmed. this is bloomberg. ♪ cory: i'm cory in for emily chang, and this is "bloomberg technology." apple shares take a hit after lackluster demand for the iphone x. celebrate a very strong holiday season. we will look at how the smart home tech gadget fits into amazon's plans for 2018. rallyingwhat a ride, at 16,000 after last week's big fella. what does this mean about bitcoin bubble?

first to our lead. apple analysts lowering the iphone x shipment projections for the first quarter, citing weak demands during the holiday season. shares falling more than 2.5%. 10 million fewer units will be in q1nq1 2018 -- sold 2018 compared to the current quarter. joining us right now is alex. we talked about this on bloomberg radio a while ago, and this is really interesting because it is a projection of what is about to happen in the quarter that starts next week and what just happened. alex: it has been one of the concerns heading into the christmas quarter. the iphone x was released six weeks after the iphone 8. there was a fear that maybe if they got too close to the release date of the samsung next high-end smartphone, which would be in march, the close to that

and it will not be enough demand to sustain the numbers. cory: competition is another part of this? alex: exactly, yes. in china, a lot of local manufacturers coming out with with very similar features. none of them have the face id 3-d sensor that apple has come of as some analysts were writing today, that has not been enough. cory: it seems a big part of apple's strategy with this potentially new applications we have not seen yet read the phone does really cool facial recognition stuff, but there are not a lot of applications for that. there is no real usage for it yet. alex: the curse of being apple is they are circuit of the terms of what they have. when they unveiled the phone in september ahead of its release in september, that is not a huge

timeframe for developers to start coming up with new tools that you can download in the app store. it may be over the next 12 or 18 months where we see much more compelling innovation. cory: we will never know the mix between iphone 8 and iphone x, but if they sell out more iphone , they are going to do so well. there is always chatter that china and india will not buy the expensive phone. what we have seen is the opposite. china loves the expensive phone and will pay up for the luxury item. alex: the iphone 8 is largely the same fall back to the design as the iphone 6. not a huge amount of difference between those phones. that means the material has come down for the iphone 8 but the price point is still high. not the end of the world if apple sells more iphone 8 than

iphone x. cory: they are so close margins on the eighth even? alex: it is hard to tell. not significantly worse than on the 10. cory: the estimates even though the numbers have come down are still convincing. the biggest first-quarter apple has ever had. still year-over-year revenue growth and one of the biggest, most profitable companies in the world. not: apple does break out my phone numbers. cory: we will know iphones. not specifics. alex: not which ones they are. that means the forecast for apple, that might already take into account. cory: and we will never know about the home pod. alex: even if it had been out this christmas, we saw estimates they would ship 50,000 units. 50,000 units at $300 a pop is not a lot of money. cory: big whoop. alex: i am glad you said it.

cory: thank you very much for your discretion. theng up, the iphone became first u.s. company with a billion-dollar market cap back in november. in june, they unveiled the home pod that will ship in early 2018 or so they say. we will see. emily chang sat down with mr. cook and asked him about the vision for the company's future starting with the home pod and how tough that is in an already crowded market. >> what we have tried to do is build something that is a breakthrough speaker first. datings deep in our dna back from itunes and ipods so we wanted something that, number one, sounded unbelievable. i think when people listen to it, they are going to be shocked over the quality of the sound.

of course, it does a lot of other things and all of those are important as well, but we wanted a really high quality audio experience as well. emily: you are very focused on how this can reinvent music. what about the other things? make a phonee to call, order a car, order groceries? >> there are lots of things you can do with it. there is a lot of things that siri knows how to do from the phone, and so we will start with a patch of those as shown today during the keynote, and you can bet there is a nice follow-on activity as well. emily: let's talk about e-commerce. e-commerce is very important to these devices. i can order paper towels on my amazon echo. does this tell us about amazon's aspirations in retail? >> i would not read into it in that regard. what i would we get into it is

apple is a company that cares about music and wants to deliver a great audio experience at home. infeel like we reinvented it the portable player area and we think we can reinvent it at home as well, and we know that people want a speaker now to do more than that. obviously we want a speaker to do more than that. we are sort of combining what has been thought of to be two distinctly things until now and i think people will love it. i know they are. i am a user, and i think they will be blown away with the experience. emily: how long have you been working on this? tim: multiple years. the underlying technology in here is something to behold. experience that we want to and the quality we

wanted like apple products in general, they take multiple years to do starting from the core technology and building up to the product. emily: you have people out there saying "finally!" what took so long? tim: for us, it has never been about being first to something. we did not have the first mp3 player. we did not have the first smart phone. we did not have the first tablet. there was a tablet shipping a decade before. very few people used it. arguably, we shipped the first modern mp3 player. the first modern smartphone, the first modern tablet, but we were not first in any of them. for us, it is not about being first. it is about being the best and giving the user experience that delights them every time. patientslet that in result in shipping something that is just not great. emily: it is the 10th

anniversary of the iphone. you unveiled the new ils, ils 11 -- io, ios 11. tim: i can tell you ios 11 is unbelievable. both for iphone and for ipad, there are incredible things in .t from peer-to-peer payments it is the biggest ipad release ever. and it area i have great personal excitement, i am excited about all of this, but i am incredibly excited about ar. you saw the demos that were done today. i think this is profound. getink we'd today as we this developer release out in the hands of the developers, we will have the largest augmented reality platform in the world, and i think we have launched ar in a way to large numbers of people. i am incredibly excited to see

what some of the developers will come out with ar. emily: you talk a lot about ar and vr with regard to developers, but when will consumers see an apple vr? tim: that is obviously something i am not going to answer, but with a core technology and as a andform, the first thing arguably is always the most important is to build the foundation and from that foundation, you can do many things off of it, but first you have to have a solid foundation, the developerso will like what they find in the developer kit on the ar. cory: emily chang with apple ceo tim cook. a rocky year at uber ends now. they have agreed to yell the u.s. prime auto release -- sell the u.s. prime auto release business.

it releases the ceo business on cost-cutting at uber. financial terms not disclosed. amazon can be a big holiday winter again. 4 billion people -- 4 million people getting a trial at amazon in a week. we look at picking up e-commerce. "bloomberg technology" is live streaming on twitter 2:00 on the west coast, 5:00 on the east coast. this is bloomberg. ♪

cory: amazon once again could be the big winner this holiday season. millions of alexa enabled devices were sold worldwide. amazon sitting in the top seller spot across all corners of the site.

trials and prime paid memberships in one week over the holidays. joining us now is mark. i am not kidding. away six over the holidays, seven. there was a device with alexa and it. it seemed like the goto gift. >> one was an echo, and the other was the fire stick that was alexa enabled. they want to get the devices out, but secondly, how many more alexa enabled devices there are. usage shirts you should search for alexa enabled devices. speakers from a likable, so we will get the echo system out there as a big win and they put in a press release that they saw millions of prime customers using alexa to order products on amazon so not only are they selling the device when you are selling the convenience which will be easier to turn around in

the kitchen and say "alexa, order more coffee." customers are doing that. cory: i think that is why they open up the platform. $450, not for nothing. but a really fantastic device. terrific sound, but it is not made by amazon.why would amazon give that away ? >> you get the amazon echo system embedded in multiple devices, amazon has more ways to offer you products and deliver products. you can interact with amazon not just when you are here, your desktop, with your phone, but also when you are driving you can order from your phone. cory: alexa enabled device for your car. mark: right now, we are too conservative. without a were 40 million alexa echo installed devices. the number is probably 50, and could be given 60 million. even 60 million.

we think there are 60 million amazon prime customers in the u.s. they added 4 in one week. there was another one. the number of units that they eithered at expedited for prime or same day or next day doubled year-over-year. cory: a revenue run rate or growth rate of about 25%. is there but the point is more than just a price advantage and selection advantage that amazon has. they are building to get you products faster than anybody else. it matters. it matters as he going to christmas and do not have the gets ready to go. you can still order them on the 23rd or 24th and you recognize that advantage and use that when you shop with advantage throughout the year. the convenience is the new mode at amazon. .ory: 31% predicted growth

that includes a lot very fast growth at amazon web services. it is intriguing to me that of all of the different positions we see these guys going into, do they still go back looking at b2c selling phones to people? they might into electronics, video, whatever, even drugs, whatever, but it is about selling volume of goods to people. mark: i think so. it is building up the customer relationship. one of the strongest relationships consumers have is with the people we get our money -- in ordersponse to get products. that is a strong we tell relationship. you can have a media relationship, but very companies -- very few companies have that kind of relationship. relationship, they are

providing you goods and services, entertainment, and convenience where you can find products around the house. yes, they are breaking into new categories, extending into groceries, the single largest consumer category. they are now the largest category of apparel. cory: drugs? mark: i think it is almost inevitable that they go there. i think it is still three to five years out but inevitable. cory: one interesting thing about alexa, is they are really getting brand a little bit, which they have never done. amazon seems to have a philosophical belief of the cheapest thing. brand is the opposite of that. opportunityates the for amazon for a private label and create a revenue opportunity. apple, the app store takes a 30% tax on all products sold in the apple store. google home does the same thing. right now, amazon does not get any of that tax revenue, but you get 100 million, 200 million

alexa devices and alexa enabled devices out there and when the consumer says i need more coffee or diapers or a car service, all of a sudden you will have providers that can bid against each other for placement in the voice search results and you have apple platform revenue. cory: another run. thank you very much.always a pleasure . mark: good to see you. cory: some of the biggest banks in the u.s. are offering perks. how the financial industry is taking a page out of a playbook, next. this is bloomberg. ♪

cory: from startups in silicon valley two heavyweights like facebook and google, tech companies have prioritized perks for employees from a limited occasions to pre-workout classes. the financial industry is now trying to play catch-up. our guest joins us in new york. laura, i love this story.

it is an aspirational story like boat magazine or something. who has it better than me? what are they doing for their employees here? laura: what they have decided to do is really introduce a pilot program into the investment bank bankertrader, investment is allowed to take is provided they have been there 10 years, and they are authentic between a four-week and six weeks sabbatical for the number of years they have been there. cory: they have not been known in my story and for benevolence to its employees or creativity for the products they offer and the way they take care people. laura: exactlylaura:. whatre commenting on anybody who works at bank of america knows. they are viewed as one of the more stodgy banks. the ceo views the firm as changing, becoming more technological. he likes to describe the company

as a technology company, but some of the perks that come along with being a technology firm or some of the advancements on the trading floor are at large within the bank's branches, that is not really there. cory: i wonder where this goes. what are the perks? what are the things new yorkers look at silicon valley companies? is it the fooseball machine, the ping-pong tables, the time off? laura: yes. you hear a lot of the younger hedge fund analysts talking about the unlimited vacation. that is one thing that you see them really pick up if they offer that as a perk. taking a sabbatical, even though it is a shorter sabbatical, but 4 to 6 weeks to focus on something they have not had time for, which is to recharge their

batteries after being worked to the bones like some of these investment bankers or traders are. that is something that people tend to salivate over. it raises eyebrows and the banking community saying here is a bank that will offer you this so the long time off is something people look forward to. i don't think that is the discount to any of the great perks like google has like doing your dry cleaning. the street from us here in san francisco, they offer the same kind of sabbatical thing, but they are competing with the banks for the same technological and programming talent. laura: exactly. the banks very much understand this. brian moynihan talked to brian weston about this. what he said was this allows us to retain more people. they don't think it is just about grabbing those technology talented people that the banks want, but it is also about keeping people there. cory: great stuff. thank you so much. coming up silicon valley titans

joins us to talk about punctuated equilibrium. it is a big idea and i think you'll like this because it weps understand where will see innovation for the future. this is bloomberg. ♪ ♪

♪ >> you are watching "bloomberg technology" ♪ y." the border wall donald trump ,romoted on the campaign trail

a prototypes in the desert outside san diego. congress has not approved the funds to advance the project. that vladimir putin convened today to formally nominate him for presidency after he announced he would seek reelection as an independent candidate. putin has been in power for 18 years and is expected to win another term. top election officials have barred a candidate from a presidential run. the kremlin hinted at possible legal repercussions over his calls for a boycott of the march presidential election. injamin netanyahu's allies parliament are pushing through a bill that critics say could be used to silence investigators. that comes as a corruption probe into the prime minister's dealings. the proposed legislation would for bid police from submitting written recommendations on whether to indict a suspect.

global news 24 hours a day powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. it is just after 5:30 in new .ork, 6:30 and hong kong i'm joined by david with a look at the markets. underway intting the asia-pacific. flat on that market. when you look at futures at the moment, roughly looking at moderate gains at the open. the next market to open is australia, and futures up 11 points. when you look at other things we are following, the yield 2.71%, when japan opens up it is what happens to these oil-related stocks.

i'm looking at my most active 59.80, a lot of that ones down to an explosion one of the pipelines and this bullish look at the budget when it comes to saudi arabia. supplierspple-related , modest gains, slight volumes as we approached the open of major markets here. more from "bloomberg technology" next. ♪ cory: this is "bloomberg technology" and i am cory johnson. one of the titans of enterprise was acquired by

oracle. i was there. good with if i have seen youw since we were kite boarding and you are getting after it early last year, but you have been doing great things. what problems are you trying to solve? >> we are working with some of the largest corporations constituting artificial intelligence and taking advantage of iot to engage in digital transformation. that taking companies aren't yet digital and to get there? >> yes. using new technology that has come online to change everything about the way they manage their business processes,

deliver products, services. it is like nothing we have seen before. of how weve your idea look at technology to see new things. this idea of punctuated equilibrium from geology, which basically says that by the time you have seen it, it is too late. the big changes in evolution half and faster than we can record them. if in geology we see a new species or animal, the big change of this coming into existence has arty happened. the same in technology. so. think i attempted to explain what is going on where we are seeing a next financial growth in the adoption of new technologies. cloud computing, internet of things, artificial intelligence. the other aspect i could not explain come like you, i have been around this business for a

few decades. the internet, all of these decisions were made by the cio. these digital transformations are driven by the ceo. i was trying to figure out what this is about. it is massively disruptive. i took a page out of evolutionary biology. if you look at early editions of the origin of species, darwin thought it would have a continuous function that took as a continuous function -- everything constantly then it wasn't until this -- it didn't happen this way. it wasn't a continuous process because of darwin could not explain the gaps in the fossil record.

what goal describes is this punctuated equilibrium. he says going back even the last 400 million years, a relatively short time in the history of the lannett, we have had six mass extinction events, the last being 65 million years ago and 85% of the species on earth disappeared, including the dinosaurs. then after we have this mass extinction event, mass speciation, which is good for us because the mammals fill the space, look at the corporate world. fortune00, 50 2% of the 500 -- 52% of the fortune 500 companies have disappeared. 52% hadcouldn't believe gone away. ,ome went away because of fraud some mergers have taken them out, businesses like compaq

taken out before they were to get hit by an asteroid. >> hewlett packard or maybe ibm is next, who knows? are you have what you and i living in silicon valley, this mass speciation going on with new dna, airbnb, uber. iphone comes out, someone will say it is not that different than the last one. the big change was when there was no iphone to the iphone, when there was no cloud to the cloud. everything is a step change. the big one is what matters. the telecommunications industry is gone and has been replaced by a portable computer and portable communications device. they're still companies that can reinvent themselves enough to survive this new digital age? is in the funniest places,

like caterpillar, and now in rome, department of defense -- cory: i guess the department of defense has to evolve. it can't go away. >> these are ceos -- why is the ceo at the table making these technology decisions? he or she was never there before. the fear is you get on the train or you will be on the tracks. cory: they think they can get ahead of this stuff and now try -- and trying to buy ibm. maybe someone will get fired for trying to ibm. walmart looking down the tracks, you are in a world of hurt. industrye in the auto and looking at uber or tesla, if you don't change, it will not end well. cory: it's like what you're talking about artificial intelligence and iot, you are

justng about process, not buy the software and it will figure it out for you. >> i used to think the iot was doring oforing -- sen automation, eyeglasses, heart monitors, cars, thermostats, refrigerators come everything is a computer. the power of the network as a nodeson of 50 billion squared, that is a powerful network. cory: always good to see you. >> thank you very much. cory: tesla planning a pickup truck after it completes the model three. that is according to elon musk core designhe has engineering elements in mind for five years and i am dying to build it. the nextguest says generation is in testing and the

results are blowing me away. i could not see that tweet because he blocked me on twitter, but different story. after dropping $5,000 per coin. i will talk to lloyd blankfein on the world's biggest digital currency, next. ♪ cory: if you like bloomberg news, check us out on bloomberg radio, bloomberg app, or bloomberg.com. this is bloomberg. ♪

cory: remember the big bitcoin selloff? forget about it. at oneack in rally mode,

point trading $15,000 per coin today in. it fell 30% during the u.s. trading day and rally 20% with the tumble coinciding with warnings from financial authorities about elevated risks holding digital coins. alix steel spoke with lloyd blankfein and michael bloomberg to examine the merits of bitcoin and the future of cryptocurrency. >> first of businesses and businesses in general come when did they have to have a bitcoin strategy? >> not in our lifetime. >> for real? >> forget whether you think it is a fraud or a game or tw ulip bulbs or not. figure outhave to how they're going to sell the product, keep the door open, cleanup at the end of the day. small businesses are where the rubber meets the road. they are not dealing in

transactions, but creating products people want to buy. it is one person selling to one person, much more so than the things we talk about. you have not rejected or endorsed bitcoin, but when does goldman have to have a bitcoin strategy? not today. >> win. >> life must be rosy if this is what we are talking about. not today.lking >> yesterday and one person a coleman said the only thing people are asking him are bitcoin -- >> i am thinking about it because i get asked about it. where i am is is it is not for me come up but there are a lot of things that weren't for me in the past that worked out well. if it was 20 years forward and it worked out, i can tell you why it worked out, but based on everything i know, i am not guessing it will work out, but i

will not stand there and say it is a fraud. it might. confuse bitcoin with blockchain. there is a technology where you can have different accesses to data and different people can control it and you can see who is doing what and that sort of thing, and there are places where that is a useful thing. in fact, the bloomberg system is a blockchain. usersd of having the control it, we control it, but it has all the attributes of that. bitcoin is different. cryptocurrencies -- bitcoin and cryptocurrencies notifferent, and whether or the governments of the world will lose control of monetary policy, i am skeptical. they will not let it happen, and it shouldn't. andomething that moves up down 20% a currency. not a currency, but a

commodity, and that goes to your expertise. in the commodities business. talk to me about what is the unregulated trading world of bitcoin. where will the fraud,? come? whole -- the fraud is it buyer, seller, price discovery? where is the risk? >> bitcoin is a vehicle for perpetrating fraud so you can't trace it. >> so is cash. >> but it is hard to accurately cash sometimes. >> go look in china where they are basically getting rid of cash. everybody is paying with their smart phones. people begging in the streets have a little sign to where they are sitting in the streets, and these are people who need help from society, instead they are begging for money. they have a sign with a qr code. money,want to give them

you point your phone at a qr code and hit a button and they have a bank account and that is the way they are getting their money. >china has gone a large, as you can stop the black market, drug dealers come and track where the currency is going. we will not go in a different direction. america may not be ready to go there, although we will be left behind if we don't because this is an efficient way to pay for goods and services. >> they will do what everybody is doing with their money. >> google already knows and nobody complains. >> you have to be thinking about investment banking strategy with bitcoin. i can't believe you are not. >> no, i don't. >> you're not talking to your guys? >> we will see. gets mores out and established and trades like a store value and does not go up and down 20% and there is liquidity in it, you know, we

will get to it, but the original question was is when do small business people have to think about their bitcoin strategy? theuld worry about opening doors, producing things that people want to buy, business planning. that was lloyd blankfein come the ceo of goldman sachs, and mike bloomberg, the founder and majority owner of bloomberg lp. one of the big winners in mobile payments, sales up 41%, the stock up 150%, we bring in our highlights from our conversation with squares of jack dorsey. this is bloomberg. ♪ jack dorsey. this is bloomberg. ♪

cory: square, the payment company led by jack, has seen its shares double, up 150% this year. this is because of investor formism and the offerings merchants. we sat down with jack dorsey,

part-time ceo of twitter as well, but looking at second-quarter earnings, emily asked him what he thinks of sky high tech valuations. check it out. >> i am not an economist. i don't know how to answer that question. we live in a market, and a market has decided the value of this particular thing. it always has ebbs and flows. it is not something we control. whether people use what we are building, and our job is to make sure that answer is yes and they want to use it so much that they can't help but talk about it with people who want recommendations. i'm trying to get out of nasty contracts, where should i go? that is the thing we control and the thing we focus on. must have a keen insight into the health of the u.s. and global consumer. where do you see people spending and not spending, and what is your confidence?

>> we see people going to our sellers, and we see people purchasing, and those trends continue to be positive. i think the great thing about square's business is that it is nondiscretionary, so everything else can fade away, but you have to be able to make the sale. if you're good at what we are seeing and the economy and how we will continue to thrive and support that. reportshere have been about sexual harassment in the tech industry, people have lost their jobs. it has renewed concerns about the lack of women in tech. what are your thoughts about that? >> it is a situation that we have to put more attention to. our focus has always been on inclusion first, and making sure that we are building and an

an organization an environment where people feel like they belong and people feel like they can contribute. and, they feel a part of. we also need to make sure that it is not just an environment where people belong, but they can contribute to decision-making and to make sure , they helpontinue own our outcome. emily: the gap between silicon valley and president still seems quite large. what role do tech companies play and leaders like you in closing that gap? >> i don't think there is any difference in the role that tech companies play or individuals like me play. thing is toortant have an open conversation and speak up, and if we can't speak up and be open and transparent about how we feel about policy shifts, we will move backwards as a country and is a world. .hat is my role

that is our company's role. that is our industry's role, but it is every citizens role as well. i will use my role and my experience to inform what i right and what i believe is necessary. emily: as somebody who runs a company that moves a lot of money around, how concerned are you about economic and political uncertainty right now? right and what i believe is necessary. leadery entrepreneur and has to deal with uncertainty. we just have to become trouble with that. uncertainty that people talk about is not something that i necessarily feel on a daily basis to affect my decision-making. the i am concerned with is economic disparity we are seeing not just in this country, but around the world, and our goal as a company -- and we have a very small part, but it is a

part nonetheless -- to continue to provide tools for people who participate in the economy, and we will do our best to do that, so that is what we are focused on trying to help fix. question, how does that impact where square goes next? you have been expanding abroad. where to next? >> we want to go everywhere. we want to be a tool that is used successfully everywhere in the world. we have a lot more friction in our industry because we have to work with banking partners and regulators. every local market has its own rules and regulations, so we will take our time because we want to get it right. we don't need to be first to market your we just need to be the best option out there. cory: interesting guy. jack dorsey speaking with emily chang. that does it for this edition of "bloomberg technology."

a reminder that we are live check us on twitter -- out @bloombergtechtv. this is bloomberg. ♪

♪ it is 7:00 a.m. in hong kong. we are live from bloomberg's asia headquarters. welcome to "daybreak asia." apple sales drag on wall street. since the highest mid-2015 on disruption in libya. could do better. abenomics has seen some success, but japan still has some way to go. >> from bloomberg's local headquarters, it is just after 6:00 p.m. tuesday. atcoin showing no signs of hangover, halting a losing streak and