alisa: i'm alisa parenti in washington, and you are watching "bloomberg technology." canadian government officials believe there is an increasing likelihood the united states will withdraw from the north american free trade agreement. the canadian loonie and mexican peso fell on the reports that the white house says president trump hasn't changed his position on nafta. meanwhile, the president welcomed the norwegian prime minister to the white house today. he called norway a, quote, "great customer" for its purchases of u.s. military equipment. during a joint press conference, the president responded to a question about immigration reform, saying funding for a border wall with mexico must be

a part of every deal. border patrol and immigration agents raided nearly 100 7-eleven convenience stores. interviewedd -- workers as part of an ongoing investigation. in moscow, russian foreign minister sergey lavrov met with his iranian counterpart to discuss the situation. -- the situation in syria, where both presidents support bashar al-assad. he also pledged support for the iranian nuclear deal. 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. "bloomberg technology" is next. ♪

emily: i'm emily chang, and this is "bloomberg technology." coming up, our conversation with u.s. transportation secretary elaine chao. her approach to regulating autonomous cars. plus, we bring you more big names from the consumers electronic show. our conversations with the ceo's of arm holdings and turner. a member of congress is calling out apple's ceo over the company's response to batterygate. senator john thune speaks out. first, u.s. stocks fell for the first time this year. the s&p 500 index snapping a six-day rally, that was the longest since october. abigail doolittle is in new york. what brought this on? abigail: with the six-day winning streak and the record ,ighs for the major averages just a bit of a breather. after the big gains, investors stepping back a little bit, especially before earnings

season kicks in. that being said, we saw a real theness in the chip sector, worst two-day slide since beginning of december. report out bearish of china on mobile phone shipments in china. that caused pressure. in one ongoing concern around the chips could be the fact there has not been a record highs since 2000. if we happen to the bloomberg 8808, this is #btv the stock over the long term. we see that it is trying to bust above that last record high. unlike the major averages, not a record high. by someed to be a tell of the most sophisticated investors in the world. this could be a towel on some weakness ahead. emily: anything intervening to the weakness?

abigail: certainly for the nasdaq. ebay down in a big way, its worst day since october, 2016. amazon growing by 300,000 small and medium-sized businesses last year, so there could be some fear that they are migrating away from these other platforms, ebay and etsy. however, barclays have them in-line fourth quarter. today, ebay and etsy down, standing out in a big way, underperforming those small declines for the major averages. emily: all right. bloomberg's abigail doolittle, thank you so much for that update. let's get to the consumer electronics show in las vegas and the technology that is changing transportation. i would like to welcome the secretary of transportation for the trump administration, elaine chao. welcome, secretary chao. thanks for joining us. you spoke with abigail earlier. reports about the president possibly pulling out of nafta creating jitters in the market,

bringing down railroad stocks, car stocks. how might this impact the transportation business in the united states? secretary chao: well, trade is really not within my lane, so to speak. i'm here at ces in las vegas, and i'm here to promote innovation and creativity, which is the hallmark of american genius. we are preeminent in the worldwide economy because of the high tech contributions to technology and information technology. and being here has been just magical. there is so much energy and so much innovation. so, the role of his administration at the transportation department is to make sure that we are not, one, hampering the growth of innovation and creativity, two, that we are examining our own regulation to make sure that our regulations are not slowing the rate of innovation. innovation is very important, but we want to make sure that it is done in a way that is responsible, that promotes safety, security, and, of course, privacy as well.

94% -- sorry, one other point. 94% of accidents occur because of human error, and if we have self-driving technology that can really introduce safety on our roads -- and, of course, self-driving technology can certainly give the elderly and people with disabilities a tremendous freedom and a much better quality of life. thank you for letting me say all that. emily: yes, secretary chao. we are going to get into self-driving cars. if the president pulls out of nafta, which has a huge impact on the transportation industry, do you see any risks there? do you have any concerns about what the impact might be? secretary chao: i do not think that will have any impact on the promotion of innovation in technology. that is something we are very focused on right now.

on the trade issue, that's not my lane. i'm concerned about promoting innovation in technology, america's preeminence around the world is in our contribution to innovation and that's one of america's greatest competitive advantages. emily: so, let's talk about the future of self-driving cars. some have said that the government, the federal government has been a bit too hands-off when it comes to ensuring safety versus promoting innovation. how do you balance that going forward? secretary chao: well, you know, while we are here at the ces site, the one millionth drone will be registered. so, drones are here to stay. self-driving technology is part of the near future. it is coming a lot faster than some people expect, and a lot slower than others, but it is definitely coming. so, our role is to promote the

benefits of this new technology while, as you mentioned, balancing the concern with safety. we have lots and lots of ways to ensure that this is done in a responsible way. one of the things that we are doing today, at 8:45 a.m., we have posted a request for information on four modes of transportation to see what regulations are hampering the growth in innovation, in technology. what we should be doing within the federal government to reduce the unnecessary barriers to innovation in the transportation sector. so, that's one way. and secondly, we have issued guidelines on september 26 on automated driving systems. what do states have to consider when they are looking to legislate autonomous vehicles? we also started a pilot program

in drones on october 26. the white house issued a new initiative. how can we test drones so that the testing of drones doesn't go overseas as they are now? many drone testings are occurring in australia, england. we have wonderful facilities here in the united states, so we want to encourage the safe testing of drones in this country. so, another example, right now, drones cannot fly over the heads of people and also drones have to be operated within the line of sight. there are now 50,000 new jobs for people who fly drones. that's a job categorization. it was unknown five years ago. so, lots of things are happening.

the federal government has a role in ensuring the safety, the security, the privacy aspect of this new technology that is developing. emily: one of the interesting statistics we were looking at is that deaths on the road have actually hit a nine-year high. you would think it would be going in the opposite direction. i'm curious if you have any concerns about the rise of connected cars, whether it is entertainment systems or in car navigation systems could they be more rather than less dangerous? secretary chao: no, i don't think so. as i mentioned, 94% of accidents occur because of human error. if we have a self-driving technology, hopefully there will be greater safety on the roads. as you mentioned, there is anxiety. 71% of americans feel that they're uneasy with this new technology. i'm here at ces also to challenge the tech sector to share their information and to help bring along the rest of america.

as a former secretary of labor, i'm also very concerned about the dislocation in jobs. i'm convinced that, in the long-term, the new technology will create new jobs. 50,000 new jobs have been created being a drone operator. that's not -- we've never had that category until just recently. there are also people who lose their jobs because of disruptive technology. we have a role, responsibility, obligation to lead on social issues such as this as well. so, this is part of the message, along with the two announceables i just mentioned. that we are trying to foster and promote as well. emily: you mentioned earlier today that the faa is concerned, secretary chao, about the number of drones that are flying. we know that only a fraction of drones that are out there are

actually registered. how concerning is that, and what are the faa's concerns, more specifically? secretary chao: all drones have to be registered, including hobbyist drones. some people don't like that. but we -- they have to be. the current law requires that they be registered. the faa has to -- and the u.s. department of transportation, one of our great challenges is to integrate these drones, one million of them now, safely into our national airspace. because as i mentioned, drones are here to stay. drones are very helpful. we saw how helpful they were in the hurricanes, harvey, irma, maria. the flyovers, the safety inspections -- they were invaluable.

we saw their value also in the flyover inspections with the wildfires in california. so, there is a very public benefit of having these drones and the functions they can perform. but once again, at the department of transportation, our concern is safety, security, cybersecurity, and privacy issues. these are issues that we cannot do ourselves. we have to elicit information from the private sector and partner with all stakeholders in the nonprofit and public sectors to address these very important issues. emily: now, secretary chao, the administration has faced an unprecedented number of distractions, whether it's the russia investigation or this explosive book by michael wolff. now we see reports that the infrastructure package could be slipping to next month. when do you think things will start falling into place? secretary chao: oh, we've been working on the infrastructure proposal for quite a while and very diligently, i might add. we hope to have the

infrastructure come out around the state of the union, which is january 30. we -- the infrastructure always came third. it came after the affordable health care act. it came after the tax reform bill. and then it is now the third item that will be legislatively considered. but one of the most difficult parts is, how do you pay for it? so, there is not an agreement yet. we want to work with congress on a bipartisan basis to address the deteriorating infrastructure of our country, because, obviously, it has impact on our nation's productivity and competitiveness. emily: all right. u.s. transportation secretary elaine chao, joining us from the consumer electronics show in las vegas. secretary chao, thank you so much for joining us. we have much more from ces for you. our interview with simon segars and john martin, later this hour. coming up, the future of net neutrality. legislators and the trade group that represent the likes of

google, amazon, and facebook are preparing to undo the fcc's vote to repeal the law. this is bloomberg. ♪ emily: a legislative battle is

brewing in washington in response to the repeal of net neutrality. democrats in the senate are using a little-known law to debate in the hopes of undoing the actions of the fcc. it won't be easy. in fact it may be impossible. , the house and senate are still republican-controlled. this comes as the internet association announced it plans

to act as an intervener in the upcoming case in the fcc's vote to repeal net neutrality. joining me, ceo michael beckerman. thanks for joining us. why are you joining the lawsuit or offering to join the lawsuit, but not filing your own? >> we are going to be party to the case, so that's what it means to be the intervener. there are petitioners in a number of civil society groups. we will be an intervener, which makes us a party to the case, so we will have strong standing and be very involved in the litigation. emily: it's been interesting to watch how this stance on net neutrality by various tech giants have evolved. as some have come out forcefully in favor of, some opposed. then you have some like reed hastings who came out pretty strongly on the side of net neutrality, then said, well, it's important, but it's not their primary battle. why the indifference? >> i can tell you all of our

members care about this. they are all very engaged. they have pushed us to be the tip of the spear for them fighting this, both in congress and at the fcc and now in the courts. it matters to all the companies, netflix included. emily: is there a sense of defeat? now we may have bigger issues to worry about? >> this is still fundamental. this is a fundamental protection for consumers that are companies care about and the future of the internet and what it looks like years from now. i don't think this is over, by a long shot, but still, it has to go to the courts. we will see what congress does. emily: you worked closely with these companies. what are the folks at facebook and google saying? >> they want us to be as involved as possible in the case. that's why we announced we will be an intervener. it's still early in the process. these rules are not in effect yet. right now the rules have been put out so we know what they are doing, but the office of management and budget has to review it.

then the fcc publishes it in the federal register and sends it to congress. 60 days after that, it will become actual rules. when they are published, it sets the clock on the cra, the litigation as well. emily: what is the process for the lawsuit and potentially undoing what was just repealed or redoing, i should say? >> the fact that they are redoing it, we do think -- i have to be careful not to tip our hand on our legal strategy. the fact that they overturned this so quickly, the fcc has to show they are not being arbitrary and capricious in this new rule. the market has not changed in a negative way since the 2015 rules went into effect, so we think we have strong standing in court to reverse these rules, because, you know, the service providers are investing in their networks.

there's nothing that has changed since 2015 for these rules to be rolled back. so, we think they will be overturned. nothing is guaranteed. we are fighting really hard. emily: one thing it seemed the commission didn't pay enough attention to was the public comments that were proven to be fraudulent, which were largely in favor of the repeal of net neutrality. do you think more should be made of that? what happened? >> if it was a vote, if it came down to a vote or a ballot initiative of some kind, an overwhelming majority of americans, both republican and democrat in every community, support strong net neutrality. no one, unless you work for one of the big service providers, thinks these rules should be rolled back and you should have isps controlling the internet, blocking, throttling, and deciding what happens. the comments were good to have people see that. the fcc did what they did. again, a majority of americans support the rules, and we will fight to bring them back. emily: you have states throwing their hands up, washington, new york, california, saying we can make our own approach to net

neutrality. what do you make of giving states more power? >> the internet is a borderless medium, as you know. we think this is something that does need to be dealt with at the federal level, and we do appreciate and will work closely with states to find things that they can do. ultimately, this is better dealt at the federal level, because, again, we are talking about the internet and not something that can stay confined within the borders of a state. emily: michael beckerman, ceo of the internet association, thanks so much for stopping by. coming up, a u.s. lawmaker is not happy with apple, prodding the company about the company's slowing iphones. we hear from senator john thune next. and bloomberg tech is livestreaming on twitter, @technology. this is bloomberg. ♪ >> a member of congress is

calling out apple over its handling of slowing batteries in older iphones. republican senator john thune wrote a letter to apple's ceo, tim cook asking for details on , how the company is handling customer complaints. in an interview on bloomberg television, thune said he was disappointed with apple's response so far. have beent think they sufficiently transparent with the american people. there are a lot of customers and consumers who have observed and noticed changes in these apple devices. the fact that they would have those devices degraded in terms of their capabilities without them knowing why is what we are trying to get at. emily: huawei's u.s. expansion plans have hit a bump in the

road. a deal between the chinese smartphone maker and at&t fell through, due to what many say is political pressure. they were set to announce their new flagship phone in february. at&t's cancellation comes weeks after the u.s. senate and house intelligence committees reportedly sent letters to the fcc arguing that huawei was a , security threat. pretty bad timing. coming up, as a long time netflix executive, she pushed forward that employees are adults and deserve freedom. at netflix, it worked. we talk with patty mccord next. you can listen to the bloomberg radio app and on sirius xm. this is bloomberg. ♪ >> president trump is

predicting a crisis between the u.s. and north korea will be resolved without war. he promised south korean president moon jae-in he would asiantack while thetwo nations hold negotiations. we are building up our military to appoint we have never been before. d, have been very much weakene but not with me. i do not expect that. because of strength, peace through strength.

mexicana's dollar and peso fell today after officials said there is an increasing likelihood president trump will give a six-month notice required to withdraw from nafta. insistshouse official there is been no change in the president's stance. officials in south korea are looking at various steps to regulate cryptocurrencies, due to their seriousness and riskiness. that is according to a justice ministry spokesperson. they earlierr reported the authority is preparing a bill that would shut down digital currency exchanges. i am juliette saly in singapore checking markets here in asia thursday. it is all about the bond market. is it fake news? china responding to reports u.s. could buy fewer treasuries. we have seen a rebound in asia with sovereign debts.

high yields falling across the board. the two year yield up by 2.9 basis points. there has been a lot of movement, particularly with the 10 year yield, which are close to its highest level in 2014 on the back of that bloomberg report. if you have a look at markets, it is another day of selling. asian equities come under a little pressure. a rally stalling. the original index finished and the property -- positive territory. of these markets coming under selling pressure. new zealand closing out, down by 1.4%. that is a four-week low. you also have this quite heavily sold off today, down by 1.7% in the philippines. have a look at the nikkei, falling a second consecutive session. still holding very close toward those 26 year highs. a little bit of fluctuation in seng.ong's hang

but that in -- that index has been stronger. just a look at some of the movement. a little bit of upside. shares coming under significant selling pressure this thursday. ♪ emily: this is "bloomberg technology." i'm emily chang. tenure, she14 year helped to define the modern workplace. she wrote a now famous 124-page missive called "netflix culture: freedom and responsibility." it's been viewed 15 million times. as we know, so it can valley has not always been the picture-perfect image of maturity. patty mccord joins us now from new york. thank you so much for joining us. what was it about netflix specifically that you think enabled them to pull this off and actually pull it off well? patty: we worked on it for a

long time. the culture deck you referred to, i didn't write. a number of us wrote it, it took about 10 years to do it. what enabled us to do it is that we paid attention to it. we didn't just assume he would have a great culture that would stick around and be the same forever. we realized we could innovate and evolve the culture of the company as long -- at the same time as we were innovating and evolving the product itself. emily: now, in some cases, having the right rules, when it comes to netflix, means having no rules, like unlimited vacation, which is the policy there. do think it is more about hiring the right people or creating the right structure? patty: it's absolutely both. if you create a structure that says you need people who have -- who like a lot of responsibility, they like to have a lot of judgment in their work, they want to make their own decisions, then you have to hire those people who do like to do that. and it's not everybody.

i wrote my book not as a memoir about what we did at netflix. i wrote my book because i think some of the principles we applied apply to everybody at work today and that we can all think about work differently going forward. emily: looking at silicon valley specifically, we see many examples where this industry has tolerated brilliant jerks, or so they are called. looking at former uber ceo travis kalanick -- when you look at that situation, obviously, he helped build a $70 billion company, but what went wrong? patty: people get enamored in their own success. a lot of these companies received lots of money, and it was a growth at all costs scenario. when you grow fast and you are rewarded for doing that, then you assume that you are doing it right. so, these things happen when

things are going extraordinarily well. we had a bit of a different circumstance at netflix because, at the time that we started coming up, we didn't have a lot of money, we didn't have a lot of freedom to be able to go outside of the boundaries, because we had a lot of work to do. sometimes, i think it happens because you're kind of overcompensated. you have so many people doing so many things that you stop paying attention to good discipline and good efficiency. emily: the idea of the young, brash founder or engineer or product guy is a stereotype that people buy into, whether it is investors who fund them or companies that hire them. how problematic is this idea that that is what is ideal? patty: it's problematic across a lot of industries. i consult now to small startups and large corporations, and i talked to people around the world. and i see it over and over again. some of it is human nature. when you are successful, you

think, i want to surround myself with other successful people. i want them to be smart. i want them to be articulate. i want them to be fast on their feet. i want them to be just like me. like hires like hires like. i got interviewed earlier in the week. the woman was asking me about how interesting it is that some of these men who were fired for sexual harassment charges are being replaced by women. we were talking about -- i hear in silicon valley all the time that the reason we can't have women in management positions is a pipeline issue. there are not enough qualified women to take the jobs. in each of these cases, there are women already in the room. she is sitting right next to him, matt lauer, at his desk. i don't think we have to look that far to find really qualified, capable women in our workforce. emily: amen to that. i want to ask you about another

silicon valley issue. a lot of companies, from facebook to google, provide these amazing perks. meals around the clock, transportation services, gym services. you can bring your pet to work. you can get a haircut at work. netflix, on the other hand, as i understand it, was fairly light on these kind of perks and encouraged people to go home when you are done with your work. do you see anything problematic about this sort of campus mentality? patty: i have to tell you, it is pretty sweet here at bloomberg in new york. emily: we do have some fancy stuff. i don't get to bring my dog to work, but, other than that. patty: you know, i think anything can go overboard. i worked in silicon valley for over 30 years, and i've seen the pendulum swing more than once. so, the problem, for me, was too many perks, taking care of people, everything from their laundry to their transportation -- you have to figure out what

things make the company efficient and effective and what things treat people like children. so, i understand the trade-offs people make. i understand the transportation issue in the bay area. transportation is really difficult, and we don't have the infrastructure you have here in new york to get people around. but, you know, some of it just seems silly to me. it might be just because i've seen the rich times and the poor times. so, it doesn't -- i want to link what we do and how we treat people to our successes as businesses and to the delight that we give our customers and our clients. and if you focus on that, then you rethink some of that stuff. that correlation that people assume that, if i make employees extraordinarily happy, they will be extraordinarily successful -- i'm not sure i really buy that. emily: all right. patty mccord, author of a new

book, "powerful: building a culture of freedom and responsibility." thank you so much for joining us. coming up, we will hear from simon segars on the continued fallout from that massive ship security flaw. that's next. this is bloomberg. ♪ emily: on tuesday we reported on

a japanese astronaut who said he has grown over 3.5 inches since

internationale space station just three weeks ago. he is now apologizing, saying he in fact has grown just under an inch. while it is normal for astronauts to grow well in space, they can return to a normal height when they go back to earth. we continue our coverage of the microchip security flaw affecting nearly all of the world's devices. one company feeling the heat, arm holdings, at the heart of the mobile phone component. they say about 5% of chips made using its designs are vulnerable to the potential hardware hack. known as spectre. we spoke with arm holdings ceo simon segars from ces earlier today and asked how concerned consumers should be about these issues. simon: clearly, the security issues are quite serious, quite fundamental about the way that microprocessors have been designed for many years, decades in fact. and it is really important that people understand that, as security updates get pushed out to their devices, it's really important that they get installed, that the software gets updated to provide maximum

protection against what some person might do in trying to exploit these laws. -- these flaws. it is a very serious issue, one we are taking seriously. we are thinking about how to design and mitigate against issues such as this. we are working closely with our partners to make sure that the software mitigations are developed over a series of months are distributed that , people are using them, that people are installing them correctly, and that we can provide a maximum safety to any user of our electronic systems. emily: how long before remedies are fully in place? simon: i think it's going to depend on which system, which type of device you are talking about. for some, it's relatively straightforward to update devices. in other cases, there is a vast number of companies involved in the overall supply chain to get products to market, so it may take some time. it's really going to be

case-by-case. it's going to be up to the individual oem's of the products who need to take on their software and get it pushed out to their customers. exactly how long that is going to take is hard to say, but everybody is on this with a huge sense of urgency. emily: android updates are pushed much more haphazardly than apple, which means some older phones might be less stranded. how much of a concern is that? do you feel android is more at risk? simon: one of the things about some of the older devices is that they contain less sophisticated processors, which are much less susceptible to the security issues we have seen here. there are a vast number of android devices using cpu's from arm which are not susceptible at all to this security issue. it is not accurate to say every phone that has ever been manufactured is at risk here. emily: when it comes to the hardware, is there a fundamental

way for you to redo your chip architecture to avoid this? simon: the hardware features can dictate how much risk there is. so, going forward, it's obviously -- anything that is easy to work around, we are going to do that. some of the more sophisticated features, it's about the combination of the hardware and software that determines whether there is a risk introduced or not. what you are going to see going forward is as much a guideline to how to write software to use microprocessors in a safe way. we are in the new world of security. security risks are changing. the definition of what safe looks like really has changed. we have to do a fundamental rethink of this. emily: i'm curious how much of a wake-up call this has been for you. has it raised any concern that the chip industry is too concentrated?

simon: we have been looking at the deployments of our processors in safety critical systems, in security critical systems for many years. we've always been looking at, thinking about how might a hacker get into a system, trying to stay two steps ahead of how bad actors will try and exploit systems and try and learn as much as we can from the research that goes on in the very broad way. this is another case of a security issue that has been uncovered. it is much more hardware fundamental than others in the past. many security issues you see talked about are down to software and the way software is written. this is more the interaction of the two, so it is a little different.

one thing to take away from this whole incident is the way the industry has come together and collaborated in a really positive way. the issues around competition have been put aside as the industry has worked together to try and mitigate this issue. there are going to be new issues in the future, and the industry needs to react in the same way, in a very positive way. emily: do you think the way the industry has consolidated so much over the last several years could actually be a negative, especially when considering just how widespread this flaw is? simon: i guess there's two ways of looking at that. there is a lot of consolidation and there are a relatively small number of failures. with a relatively small number of parties involved, it's much easier to coordinate a response. one of the reasons we are seeing time taken to get this software pushed out is because of the complexity and diversity of the manufacturers involved. emily: that was arm holdings ceo simon segars.

coming up, our conversation with john martin. what he has to say about the potential at&t and time warner merger. a feature i want to bring to your attention, our interactive tv function. find it at tv on the bloomberg. you can watch an interview, go back to it, send us a message, play along with the charts to show you on air. this is for bloomberg subscribers only. ♪ emily: back to the consumer

electronics show in las vegas where we were joined by turner , ceo john martin. we asked about the possible merger with time warner and whether he has spoken with at&t's entertainment folks about what the priorities would be if this deal gets done. take a listen. john: i think the benefits of a turner and more broadly speaking time warner connecting with an at&t is right now premium

content companies are racing -- trying to pick up more scale technology, more data, more ability to reach our fans and know who our fans are. at&t's data, their tech platform, will enable us to have significant advertising opportunities that we -- it is going to be a supercharged strategy that turner has been on. at&t's directv subscribers and its tens of millions of mobile customer relationships will provide us new and innovative ways to get our content and products directly to mobile customers. i believe the next five to 10 years the fastest growth in video consumption will be from mobile. those are going to be the priorities. drive advertising. make it addressable. find out who are fans are. -- find out who our fans are.

reach more and more people over more and more devices. emily: there are major regulatory challenges, however. what role does trump's disdain for cnn play in this deal? john: it would not be right for me to speculate. fortunately for me, we are focused on running turner. we have teams of people working diligently and hard to make sure the deal closes. we fully expect that it will and we are planning for that day to happen. we can't wait to get going. emily: fox news and msnbc have made gains on cnn, largely driven by sean hannity and rachel maddow. what can cnn do to buck that trend? do you think this moderate model is sustainable? john: i think cnn's model is sustainable. if you look across the three networks you mentioned, all their ratings are up. cable news ratings in 2017 were the highest they have been in years.

yes, depending on the particular climate and depending on what the particular subject matter is, it might be possible that msnbc does a little bit better or it might be possible fox news does a little better. i will tell you cnn completed its best year in 2017 ever. record year. it's been a top 10 ad-supported cable network for five years in -- five quarters in a row something it hasn't been able to , do in 22 years. the cnn business model has never been stronger. i don't think there has ever been a more important time for cnn's place as it relates to journalistic integrity and what it means not only to the country, but to the world. i'm incredibly proud of what the leadership is doing and what our journalists are doing every day. we have no plans on changing trying to be the best journalistic organization in the world. emily: at&t has talked about slicing up shows, making them more adaptable for a mobile audience. is that something you would consider doing? john: absolutely.

it is something we would consider with or without at&t. the ability to break down traditional longform of formats to shorter shows, making them available on mobile devices, maybe changing the windowing of some of our shows, making them available on alternative devices before they show up on linear tv -- i think all of this will be ways --k take our notable brands we have to stay connected and engaged with our fan base. we will be experimenting with a lot of different ways to do that. emily: beyond news, what does your pipeline of original shows look like and how will spending on original content in 2018 compare to last year? john: spending will probably be up little bit in 2018. turner spends about $4 billion per year on programming. it's a pretty big scale budget. a significant chunk of that is sports. tohave about one $.5 billion

$2 billion of sports spending with relationships with major league baseball, nba, and march madness. our pipeline of original shows looks really strong. later this month, on tnt, we will be premiering "the alienist," which is a pretty significant project for us, one we are really proud of from a critical standpoint, and we hope it finds an audience. we are the only cable network company in the united states with three of the top 10 cable networks. three of the top five cable networks for millennials. all eight of our original shows that have been put on the air over the last few years have been green lit for additional seasons. we have not had any that have been canceled. we feel like we have a lot of momentum and a lot of wind at our back creatively, and we want to keep that going. emily: that was turner ceo john martin. that does it for this edition of "bloomberg technology." a reminder, we are livestreaming on twitter. check us out, @technology. that's all for now. this is bloomberg. ♪

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