>> i am a alisa parenti in washington and you are watching bloomberg technology. through the check of your first word news. president trump says michael wolff's behind the scenes look at the white house is a lie. but wolff says he can back everything up. >> i have recordings and notes. i am comfortable with everything i have reported.

alisa: his book went on sale oday and is already number one >> and allows people to stay in the country. they have been a lifeline to some immigrants but judges say, but critics say judges let them stay in. "washington post" that n.s.a. director is retiring this spring. he has informed the workforce nd expects trump to nominate his successor. this is bloomberg.

>> this is bloomberg technology. a.m.a son the first of many glasses and we will be showing next week in las vegas. plus, cashing out where the former uber c.e.o. is selling out. trivia, e gain h. q. but can they strike while the iron is hot.

emily: mark broke the story out the amazon glasses and c.e.o. i'll start with you, what do we know about them and what do they look like? >> this is what we have been talking about. >> augmented reality glasses and see what is going on in front of the real world and pointing information into my field of view. it's going to have alexa built in. i could say what is the weather. so it's basically the echo show or echo to your face. >> $1,000. >> this is where it's at.

but eventually they move down to consumer pricing. $1,500s going to be over this is below the high end of the market. emily: cheaper than the high-end high sets but the spectacles. do you think people are going buy that. >> i don't think the user will buy that. in effect, if you imagine what is going to follow the smartphone, the best guess anybody has is voice input and some kind of augmented reality output probably through glasses. this is a very important thing for amazon to have in its ecosystem. they are getting in there first which is probably the best voice recognition service.

and google are fighting. but i think it's an important development and not the product that everybody is going to get at 1,000. but many will have something like this. >> amazon and facebook will be roaming the show rooms from the big tech giants. in the hot seat, still scheduled to give that key note, you know, what do you think we will hear? >> going to be interesting. everything he has to say, there will be a footnote, a very big footnote talking this is happening, not really a scandal but the expose coming out about the chips, but will be drowned out by this shadow. emily: we heard from apple

saying this affects every single apple device. >> they just came out. everything is affected and going to be affected. and what i think is going to be a cat and mouse game and hackers to intrude using this situation, come out wm new security updates. emily: david, as a consumer, there isn't much you can do, andishing software updates and buy new hardware. david: i don't know it would lack this problem and i don't know if mark agrees with that. the reality is that we are in an age of tremendous cyber assault and risks and anybody who doesn't keep their machines, software and browsers updated is

taking a big risk but no guarantee. we haven't heard of exploits. but that seems inevitable, we could see negative consequences and you can't do much about it. emily: does the hardware market exist right now? >> i don't know why i'm coming up with that. but consoles, everyone has them. and this is all the chips have them across the board and put patches out there. emily: and there aren't going to be out there. >> every processor has to process data and big sea change for this to happen and designing a chip, designing a chip is three, four years. it's going to be a while. emily: do you see any company,

any manufacturer imagining from this? >> i have seen a country, china has made its are building their micro processor business. the country he worried about the most is china. they have an argument why people shouldn't be using the western-dominant products if they could come out with a western dominant product. but it does turn wide open the chip market because it makes intel look very, very bad. emily: thanks david. mark, thanks for dropping by and our personal update. meantime, amazon maintained its

dominance and despite competition from wal-mart, target and best buy. wal-mart was ing, a distant second. coming up former uber c.e.o. ready to sell a lot of his shares. ♪ snow

and gamers via youtube. travis county and former c.e.o. is selling it. he had boasted and never sold uber shares. now he will offer 29% of his stake of a profit of $1.4 billion. my guest for the hour and bloomberg tech reporter.

so why is he selling so much? >> you know, he is not the c.e.o. anymore. the insistence is going to be more valuable and not his job to sell his message to the same extent. he will be a cash billionaire for the first time. there is a logic for diversifying and i.p.o. until late 2019, that is a long way to cash out. >> makes sense to diversify. what do you make? >> it's perfectly rational. i just think it's kind of an unfortunate thing overall in the message that it sends about what kind of entrepreneurship we want to reward in our economy, because yes, he was a very

aggressive entrepreneur who created value in a company that is transformative but he broke all kinds of rules and doing things that i think were truly wrong and many cases immoral and walk away with that kind of money reinforces about the narrative that -- you could almost say -- i don't know if the word is evil but a dangerous place that isn't contributing to society. essentially. egal this is his him? >> it's hard for -- i can see the sentiment and a number of criminal investigations into travis. you know, people could go after him for those issues now that he has all this money. but he had 10% of the company. at some point he was going to

sell it now or sell it later. the reality of his ownership stake. but i see the point that, you know, the question posted about our society is a perplexing one. emily: you broke news about the news that benchmark is going to sell? >> i didn't break it. they are selling 900 million. 14.5 of their stake. and limited partners and start making actual money off of their investments. >> all of this means the golf structure as a result of this will deal is going to start to shift and uber will be coming a more traditional board

structure. how hopeful are you that things will get back ol track and quickly? >> i'm very hopeful about that. i think the new c.e.o. has made an anorm us number of welcome reforms and showing he doesn't want to do business the way the company has done business in the past. he has a lot to clean up especially in europe where the company's reputation was formed and the reaction has been extremely negative. uber is a powerful company and market position and well run if pportunity remains huge. but i still have a lot of optimism long-term trajectory. mily: thank you.

coming up reports that they are ing a new media network what the billionaire is looking at next. ♪ >> you're watching bloomberg

technology. here's her first word news. says michaelmp wolff's behind-the-scenes book about the white house is full of lives. but wolff tells nbc he can back this up. michael: i am absolutely comfortable with everything i have reported in this book. fury --ook, fire and inside the trump white house, went on sale and is number one on amazon. -- for venezuelan military officials linked to corruption.

americans are banned from doing business with them, and the u.s. authority sanctions dozens of current and former venezuelan officials. chuck attlee has asked the justice department about a disputed dossier about donald trump line to invest a -- federal investigators. the request was made to deputy attorney general robert rosenstein. asocrats criticized the move an attempt to distract from the broader russia investigation. the environmental protection agency's scott pruitt is interested in becoming attorney general. beis said to be willing to leaving the justice department should the position become available. this comes amid speculation about attorney general's jeff sessions tenure.

his actions went against requests from the white house counsel. united nations security council is holding an emergency meeting on the protests in iran. ambassador nikki haley said the international community cannot let iran silence protesters. >> the arabian people are rising up and over 79 locations throughout the country. ofis a powerful exhibition brave people who let become fed up with their oppressive government, that they are willing to let -- willing to risk their lives and protest. >> it was said that americans were trying to violate iran's sovereignty. the storm that pounded the east coast was expensive. it is estimated to cost between $3 billion to $4 billion. while that may seem steep it is reported to be in line with most winter storm costs.

global news 24 hours a day. this is bloomberg. more of bloomberg technology is straight ahead. ♪ emily: this is bloomberg technology and diane emily chang. smartphone, you are looking for some answers. intel has revealed a flaw in their chips that may allow access to data. this is including every device made in the last 20 years. what is the worst case in our what is the industry doing to get ahead of the issue? dimitri, how serious is this?

dimitri: this could've been much worse. you hear stories about the cutthroat industry we have in this tech sector but this is a story we've had for the last six month, technology company's across the sector, companies like apple, microsoft, and google. even chip manufacturers like amd and intel, they are all coming together to put out a fix or mitigation for this problem that has impacted processors dealt over the last 20 years. out publiclyome earlier, we would've been in better shape. been patched.have the nightmare scenario, the data in our clouds that we store, would have been compromised by bad guys. it is unlikely that everyone will use the updates that have been provided. and there are some who say you cannot protect yourself without

new hardware and a hardware likely does not exist. what about that? it is true, it has to be software hardware but it will take about 3-5 years before we can mitigate this problem. fix is software available now for most software systems and applications that need to be patched, there are still a few but most have been patched now. the problem is they can have a performance impact on your system. modern computers, those that have been manufactured in the last five years, the problem is not going to be that significant. worst case, about 5% of degradation. on older hardware, it can be worse. reportse are getting from the register that qualcomm processors are also affected by this flaw. how surprising is that? dimitri: not very. this technique of figuring out

what instructions to execute for a processor to optimize that execution, it is something all of these processes have been doing for decades. .t has been a standard design it is not a flaw in the code. it is something everyone has been doing. we just now figured out and security problem. emily: everyone knows about the flaw now. many people will not update their systems. we keep hardware for around three to five years. if this does create vulnerability, what could happen? dimitri: there are two scenarios we should be concerned about. one is that we have a system with a number of users logging into them. an exploitable on ability, like the worms we talked about last year that infected so many computers by jumping from one computer to

another. this wouldn't allow for that. you need to be able to code on the system to begin with, i.e., access to the computer. the common scenario is that cloud providers and other service, where users login, and users may not have high levels of privilege, through this explication, they could get access to data that they otherwise should not have access to. that is one consideration. one, one for individuals and people inside companies that are not maintaining servers, is the fact that browsers are also vulnerable. that is because browsers can execute remote code by visiting websites. javascript is automatically executed when you visit a website. you have to update your browsers, there are patches available from the major platforms, and make sure when

you visit a malicious website, they cannot get access to your data stored on the computer. emily: why did this flaw exists for so many years without anyone catching it? dimitri: the actual exploitation of this flaw is very challenging to understand. really requires knowledge, deep knowledge of the low-level operations of these processors. the way that these vulnerabilities are exploited is really ingenious, because there measuring timing differences between execution of instructions, and how those instructions are cached. -- even figure out now, when the papers are published, how this is working. it's not surprised there are only a few people who understood how this intersection of processor design and security -- were able to marry that knowledge together to discover this phone her ability. is is the worst we will see this year? dimitri: cyber security is

unfortunately an industry that tends to surprise you and not always in a good way. i'm sure there will be major attacks coming up. one thing we are worried about is enterprise ransomware tax -- attacks, they can hold companies or ransom and make them pay millions of dollars to get back up and running. i think that we will see more of that this year. emily: thank you for joining us. coming up, mark zuckerberg has made it a personal goals to fix facebook in 2018. we will discuss crypto currency as well. we will bring you our best interviews with the week including blackberry ceo john chen on their company's partnership. this is bloomberg. ♪

twitter had comments by world leaders on their blogs. and removing their controversial tweets would hide important information. the company says it reviews tweets in the political tweets hat defines them and has our rules. zucker burg gave optimism.

how he post in which will correct persistent problems. and dogged his social network. his interest to study the ositive and negative networks. joining me now. and guest host for the hour. zuckerberg didn't explain how it would be incorporated, but what does this mean? >> this is important to this is the context of what his goals are for 2018. the ultimate backlash is at a high of spreading fake news.

>> you can bring the power back to the people. >> it is a debate and then facebook would be harmed because they wouldn't be necessary to spread information in. >> and several geverts on this show that blocked chain could be something that could disrupt the big technologies. and zuckerberg is going to be spending time. >> i think that's smart and smart note he posted necessary and it was a necessary step in the right direction, the first of many steps he has to make

towards addressing the extreme challengeses to his presence in modern society. on the one hand, defensive and one hand creative. as you point out and fred wilson said it, you know, many, many people believe the best way to compete with facebook down the road with a chain-blocked system that gave individuals more control over their personal data and if that were to be possible, somehow it might draw people away and hard to imagine how you create an alternative ecosystem because facebook has effects on people already on it. another issue is using micro payments to induce people to look at advertising and it's conceivable that facebook might use cript toe currency.

nd this is a vast set of opportunities. the one thing it doesn't mean he will be investing in is bit coin. emily: twitter are going to lead, no matter what they tweet, how does that fall in line with their policies and against hate speech and abuse. >> they are addressing how in the world do they deal with the policy. their terms of services and not allow users that veer harm, buse and trump's have violated those assaults against women. many nuclear war tweets and one just this week. and now twitter is saying, we said in the past that the news worthiness of these tweets are part of the reason and they are

reiterating that against trump's tweets against kim junk union and all of these things. it's not helping the situation because they are trying to say that we do hold people like trump on the same level as an average user but we consider it within the political con tech. they say trump is extremely important. and they have said that trump is the key thing to keeping it relevant and bad press is good for twitter. emily: are they contradicting themselves? no matter what he says, whether it is abusive or violates the terms of service. >> how you reform these services, twitter and facebook. damned if they do and damned if

they do. they want them toll control the nature of speech. i personally don't think it's appropriate that a commercial company ought to be in the position of deciding what is and what is not legitimate in the public atmosphere. -- say david duke. >> i'm not involved in deciding -- this is not a commercial decision. it goes to what we said earlier, government has to get more engaged in these services and work with them to figure out what is and what is not allowed. the government is in a weird position given our leader. you can't fault these services. they have to e rmp r on the side of liberty rather than constraint otherwise they are the sensors that are way, way too powerful.

emily: all right. certainly more to debate. david and see lena. coming up this week's edition. and the mobile game show. how they are funding your prize money. with the edge of the next series and c.p.i. and retail sales and we will get retail sales. ♪

emily: it made serious headlines. ch 15-minute headline have questions and get tougher with every round. there was a correctly with a 18,000. are which from and the main backer which has invested $8 million. we have an inside look and still with us david. what were your initial thoughts about this? >> my initial impression is like playing the game because it is so weird. this thing is so hot, there have been a zillion black pieces and has a plaque quality because there is a guy with a guy in a room and interacting him. a weird feeling.

but very quickly, it's addictive and fun and feels like something new. and going there, you really have the impression of the company that is really trying to capture this thing that is very hot but they are getting their arms around it. this happened over the past couple of months and they are getting close to a million of concurrent users which is a big number. emily: talk to us about the potential here, you know, in terms of investment and what -- how big something like this could be? >> one of the blind spots for online media has been concurrent viewers. so live television is still really good. way, way better at the internet in getting a large amount of people together at the same time. andso, the thing like h. q.

get 100,000 people, you can show them a tv-type ad and that could represent a break you through. most of the break throughs are happening not at the same time. there is time shifting which presents problems for advertisers. >> we live in a time-shifted age at the same time one of the great hole questiony grails is a mass market audience and this is the best kind of thing we have seen to compete with television in real-time where you have to look at that exact moment to experience this entertainment and that could be very, very valuable to advertisers if it were to grow the scale to many, many millions which i think the investors and the company thinks

it's possible. emily: the company has been scandals. tell us about that? >> it's a fascinating case study in doing what a start-up is like in 2015. after trivia h. q. faced a boom in popularity, there was a report that one of the co-founders engaged in creepy behavior while he was at twitter. buy-in their startup and there were allegations and seeing the venture capital world work through this. so normally, startups would never be subjected to this kind of scrutiny and they would look at it as well. but in this case, light speed,

there is an investigation and so -- and apparently, they have been trying to raise an additional round. so we are seeing a level of scrutiny that is unusual for startups. and if you believe that the technology community needs to do better on gender, it might be the right step in the direction. technological, this is popular and they have been scrambling to get the technology to work. and people not able to play. and this is like the early days of twitter. emily: thank you. great piece from you. and david, thank you for joining me on the show. hat does it for "bloomberg technology." have a wonderful weekend

everybody. that's all for now. this is bloomberg. ♪.

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