alisa: i am alisa parenti in washington and you are watching "bloomberg technology." house voted to extend the government's authority to spy on igitalners' d communications. a gives the government authority to a view -- to review american communications with suspected terrorists as well. today, president trump called fisa controversial. russian president vladimir putin says north korean leader kim match" ins "won this the race to acquire nuclear weapons. he called him a mature and educated politician. in puerto rico, officials said 32 people have been killed so far this year.

that is more than double last year's number, prompting fears violence triggered by hurricane maria and its aftermath. of customers in puerto rico are still without electricity nearly four months after the storm. and a little boy shot in the sutherland springs church massacre is returning home today after more than two months in the hospital. the six-year-old was shot five times. the child's two siblings were among 26 people killed in the attack. he was traveling in style on his way home, traveling through town in a fire truck. global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. i am alisa parenti. this is bloomberg. ♪ emily: i am emily chang and this

is bloomberg technology. coming up, drop -- dropbox jumping into the public market. can the company avoid the pitfalls of going public? plus, changing passwords on -- passwords, locking up data on company-owned computers. those are some of the steps uber took to evade authorities in the past. we explain their wrigley program. facebook and twitter have been under scrutiny for how they deal with online harassment. now, shareholders are speaking out. but first, to our lead and an update on the massive chip of known as meltdown inspector. two of the exploits of applied to their chips. they deviously said their chips were unaffected. shares are falling and after-hours trading. for more, let's get to our bloomberg tech reporter, ian king. say initially and

what have they now said? >> there was a conference call to explain what is going on. is they are saying there zero to little chance of this being affected. clearly that put them at odds with what intel was saying, that this was an industrywide problem, leading people to believe amd was a viable alternative. maybe it is an opportunity. emily: why would they say that, not knowing for sure? ian: it is a question i would like to hear them answer. they have not helped themselves by doing this. emily: what are the implications, how much more widespread we believe it could be as a result of amd? or are these devices that already have these in them? amd did say look, we have patches on the way. we will help, everything will be fine. at the same time, a patch -basedoft put out on amd

machines did not work, it was frozen. it does not look good. emily: ian king, thank you so much for your update and your excellent coverage of this story last week. to a bloomberg scoop. dropbox has said to have filed for an ipo in the united states. to people familiar with the matter, goldman sachs and jpmorgan will lead this, which is privately valued at $10 billion. dropbox could be one of the biggest u.s. enterprise tech companies to release in several years. first data went public at $14 billion, the biggest in the past five years. joining us now, the reporter who broke the news. alex, we have been waiting for dropbox to file, and now they have. what do we know about the filing? alex: they have filed confidentially. this listing could happen pretty

soon among the ranks of the spotify and other companies coming to market in -- market. goldman sachs and jpmorgan have been hired to lead the deal. those are two firms that have worked with the company through their equity capital raising and credit line extensions as a private company. now they are also opening up the books for pitches from other banks who want to help run this deal. another one we are seeing right out of the gate in 2018. the folks i was talking to after we broke the news are pretty psyched because we have been waiting for a turnaround to get bigger names start to get public. this is a good indication more might be to come. emily: we have been waiting, indeed. what do we know about the price valuationhe potential my compared to the $10 billion they privately raised? caroline: -- alex: the folks i talked to before the stories

that they could expect this valuation. the company was locked in and there private trading round. but in aftermarket trading, this could trade up through that. where that puts this in the 's, around seven to 10 on the list in terms of size. in the past five years alibaba , was the biggest, raising $25 billion worth of cash from their share sale. facebook, snap, twitter, you marched down the line. then you get into smaller deals. dropbox, if they get something around $10 billion -- if i do my personal math, they list the typical 10% to 20% -- those numbers are still to be decided. there's no indication how much they intend to raise, but i can tell you this will be a bigger one on par with snap and some of the bigger deals we have been

watching lately. emily: how do you think this will compared to things like spotify doing a direct listing this year and other ipo's? alex: those of the two that might come in the next few months. is unconventional, they are deciding to list the stock. there is not a big share sale like you see with of the ipo process. those will be two people will be paying a lot of attention to. dropbox is a different animal than some of the past we have seen like snap. snap has not performed well since it listed last march. say did come out and dropbox is profitable, excluding some metrics. $1 billion in annual pointing revenue at one last year. they're coming up with

financials that are unique in terms of the ranks of bigger companies going public and asking the public market to bet on an unprofitable company out of the gate. , great scooparinka for you today on dropbox. thanks, i know you will be charting it to the finish. another day, another dark revelation about uber. how they are keeping police at bay with a secret weapon. and bloomberg tech is live streaming on twitter. check us out weekdays. this is bloomberg. ♪

♪ >> i say we take off and [indiscernible] it is the only way to be sure. emily: that is sigourney weaver's classic character delivering a classic line in the sci-fi classic "alien" and it is that line is the namesake for top-secret program uber has been keeping to keep police at bay. here with more, our reporter that broke the story. also with us, a man intimately the company. at before that he served as head of communications in the americas. how did this button work? me give you context on what uber was dealing with in 2015. international authorities in the e.u. took a lot of negative

interest in what uber was doing, around their belief there may have been problems with tax evasion, violating local labor laws, and violating transportation loss. they started dawn rating -- raiding uber offices. they would remotely disable computers so authorities could not collect evidence. emily: is this something they also used in the united states? >> we do not have evidence they used it in the u.s. emily: we have a statement from uber, saying like all companies around the world, we have security procedures in place to protect consumer data. when it comes to government investigations, it is our policy to cooperate with all valid searches and requests for data. what do you make of it? >> it is important to look at the context, these rai happenedd at night. s we're not talking about the doj executing a valid warrant. they may have been motivated by

-- the very reaches of their authorities were conducting raids for information. uber was defending themselves against actors acting poorly. emily: is it lawful or does it matter? >> the question should be, where the actions by the authorities lawful at the beginning? in a lot of countries, the tax industry is huge. the taxing industry is incredibly powerful. they can leverage authorities in any investigation they want. still, the latest in a long line of stories about uber that raised eyebrows. >> they make an important point. we have to look at the attention they were getting at that time. but it is still super interesting. also very interesting considering the company is facing five government probes at the moment from the justice department. on that point, you can

defend uber all day long, but they are facing probes from the u.s. government into their operation. multiple probes, so many it is hard to keep track. >> let's think about 2015. uber was in a war for its life. it was battling taxis around the world. what were the defending? information about drivers and riders. we have seen countless incidents of drivers attacked by taxi riders who learned their identity. emily: we also learned about those stealing data to protect themselves in the united states. uber was definitely in a very competitive environment in the u.s.. emily: and acting illegally, potentially. but we are talking about foreign governments probably using their authority inappropriately. olivia, what does this mean for dara khosrowshahi? skeletons infew the closet.

there could be more to come. olivia: that is an important point to keep in mind, there is a new guard at uber, a lot of change happening right now. the same things that helped the company grow so quickly, unprecedented growth, are also the things causing problems now. newounds to me that uber's ceo is making an effort to make sure these programs do not exist today. or if they do, they are above board. emily: who at uber knew about these programs? olivia: in the beginning, it was designed by the tech department and then it was moved to security. it was also in partnership with the legal department. we understand employees felt uncomfortable with it. there was a lot of gray area about when they could and could not use this panic button. the two people who oversaw the project have left the company. emily: on that note, is this

something that should continue to exist at uber in light of their continuing struggles and for countries? >> this was a long time ago now. era, 2015 in the tech is ancient. my phonean wipe remotely. if someone gets a hold of it, so we are talking about uber's ability to detect data. where you ride is a business and government should not get its hands on. emily: what are you hearing from the uber community and employees about the shares? >> end of the month is when it is expected to close and it is wonderful that travis decided to participate as well. had he not, a lot of employees probably would not have. what do you make of the

fact he decided to sell such a large stake? >> travis is fiercely loyal to his team. still. they helped him build the company. had he not participated, it probably would have impacted the offer going through. lane: -- emily: great to have you on. great reporting. apple could get a $4 billion boost from the new tax overhaul plan. a tiny loophole could benefit those companies whose fiscal quarters don't fall within the calendar year. it could translate to one last tax break to companies like google, microsoft and cisco. google is making a push to be a bigger player in the digital assistant market. they are trying to gain on rival amazon. considering google assistant at the center of it. google is also discussing a strategy for buying products and

services of the of the assistant. google assistant now runs on 400 million devices. coming up, a new player in the cryptocurrency market. how moneygram hopes ripple will speed everything up. this is bloomberg. ♪

emily: there is a new name associated with bitcoin, the u.s. marshals service. using 4000uction off bitcoins valued at the bitcoins $5 million. were seen in connection with the -- a number of high-profile federal and state cases.

those varied from drug busts to money laundering. the sale will take place during a six-hour period that takes place on january 22. participants are required to make a deposit of $200,000. another mainstream adoption of cryptocurrencies and this time it is money gram getting in on the action. shares of moneygram climbed to the most in 10 months, after working with lock chain start up ripple. it will be testing the use of cryptocurrency to remove funds. let's bring in cory johnson. they mentioned speedier transactions. what does this mean? aboutwhen i first thought bitcoin, the first notion and later cryptocurrency and blockchain, you got to think about the business of western union and moneygram moving money across borders with lower fees. inyou are a foreign worker the u.s. trying to get money home to your family, you go to

the 7-eleven and try to use -- transfer money using western union, the fees are an enormous and the process is slow. the idea you could move money like email is a dream and that is what bitcoin promises. certainly what ripple seems to promise. moneygram and ripple our income petition with each other. and seehese businesses moneygram move money faster is an amazing thing. it massively erodes their business model. it is interesting to see these guys smartly recognize they have to get ahead of this train at the end of the tracks. spoken to the ripple ceo recently. let's take a listen to what he had to say about the future of cryptocurrency. >> there is no doubt 2017 has been a year of crypto. rpthin the year of crypto, x

has outperformed every other asset. a up 20,000%. emily: it is interesting to compare bitcoin to a slower credit card-like transaction. do you think cryptocurrencies like ripple or. m could surpass bitcoin? place wen we get to a are talking about the efficacy of blockchain technology and even currencies that use blockchain, rather than the price is up, the price is down. aat is when we have conversation about what these things might be as a business. i talked to the ceo of moviepass, an interesting start of that has a public structure that is complicated. physicalflix with the

movie theater, founded by one of the netflix cofounders. notion ofabout their using blockchain and what they will do, as opposed to just talking about it. listen to what he had to say about how blockchain might change business. >> it is. >> more valuable than yesterday? >> i think the public does not quite understand we are on the verge of disrupting the holy you go to movies, but the whole distribution of content. that is the thing, it is the notion of distribution of content. they said they could do it in nine months. but how lots of businesses are expecting how to use this technology to solve old problems. then we can get away from squiggly lines and the stock price and understand how technology is changing business. emily: how do you know when some of these businesses are using this genuinely and not to generate buzz? cory: i think we can look at

some cases as being obvious. when you see companies change the name and do things that have a short-term effect on their stock. it seems to me the only possible near-term gains is that, or complete change of business model. and whoo how they talk is doing it. i fully expect to see real businesses like a moneygram and ripple get involved. it is not going to be -- we have kodak up on the screen. kodak, another company run by a real technology guy. listen to what they say in the details they give us about how that might work. emily: how much more often will we see this this year? cory: i think we will be counting on both fingers and toes. between the two of us that is at least 20. 40? emily: we talk a lot about bitcoin, ripple, ethereum. if there was one other

cryptocurrency you are watching for this year what is it? ,cory: one of the most interesting things is the diverted notion. will we have lots of individual currencies to work for individual markets, which lessens their value? if there is one currency for moviepass, and a translate that back to ripple or xrp or bitcoin, that gets to be a pain sens the value of that transaction. or will there be a lot of things like kodak and long island iced tea? will they go around a few cryptocurrencies? that is an interesting question that is important to figure out, if you are looking at investing or understanding some of these ico's. emily: cory johnson, our editor at large and emerging crypto

expert. coming up facebook and twitter , under fire yet again. this time from shareholders. why they are focused on social media abuse. this is bloomberg. ♪

>> it is 12:30 here in hong kong. mark zuckerberg says he expects the time users spend on facebook will fall as he announces a major change. the ceo says the newsfeed will prioritize posts on friends and family over public comment, meaning users will see fewer posts from businesses, media and brands. tencent has sold $5 billion of bonds. biggest u.s. dollar offering in the first time it issued debt since 2014. were, 10 year and 20 year above u.s. treasuries.

uber'srg has been told san francisco headquarters used a remote log off known as ripley to shut down computers from authorities across the world. it could remotely change passwords or lockup data on company-owned devices. beijing is seeing signs of success in its fight against smog. greenpeace says concentrations of dangerous particles plunged 54% in the fourth quarter. forced millions of homes and businesses to switch from coal to cleaner burning natural gas. global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. ♪ let's check on how markets have been trading in the asia-pacific. >> asian markets set that end the week on a strong note. the hang seng continuing its record rally.

the indian rupee ahead of factory data. in south asia, a bright spot in the region. andw record for thai indonesian stocks. the ringgit leading, along with the korean won. the yuan continuing to strengthen. taking a look at the aussie, that is sliding despite upbeat chinese trade data. we do have a plunge in field shipments from china. in japan, retail stocks are in drag. we do have enthusiasm for the nikkei and topix under pressure. the nikkei down marginally. we do have losses for them kospi , easing the benchmark up 0.1%. in shanghai, shares the best since 1992. this getting into the longest winning streak since 1997. this has turned into something more akin to a teddy bear market. they are catching a bit.

we see the curve strengthen after that option. let's go to the reopening hong kong and china at the top of the hour. this is bloomberg. ♪ emily: this is "bloomberg technology." i am emily chang. facebook and twitter are facing heat from shareholders to combat sexual harassment of women. on thursday, they announced they had profiled shareholder resolutions asking both companies to produce a detailed report on the scope of sexual harassment on their platforms. the resolutions also addressed the topics of fake news, election interference, violence and hate speech. joining us now, the author of this story, selina wang. what are the arguments coming from these shareholders?

they are saying facebook and twitter have not done enough to combat harassment on the platform. emily: it is about time, right? selina: very true. but this is particularly interesting because of who you have behind it. you have one of the largest pension funds backing it. they hold tens of millions of dollars of shares for twitter and facebook. they want to see more disclosures. the argument is that it is not just a societal problem. it is also a financial issue. as more women feel they are being harassed or feel the platform is unsafe, this will cause people to vote with their feet and leave the platform. they cited the #metoo movement. also, the twitter boycott late last year as prime examples. also, it is not a woman problem, it is a people problem. fake news and manipulation, people don't feel necessarily as safe going to these platforms as they are subjected to content.

emily: what do shareholders want the platforms to do? selina: they want disclosures, first and foremost, just like lawmakers wanted last year. the situation is, these companies know they have not done enough. jack dorsey talked about it. mark zuckerberg said his job is to six facebook of this year. they get that. what they are saying is that it is not enough and they have not been transparent about it. tell themt facebook what these thousands of new workers are doing to combat harassment and fake news on this website? what is going to happen ultimately is there are a few options. the company could come to a negotiation with shareholders. it could eventually be with a drawn. it could go to an actual vote. it is unclear this point. emily: let's start with twitter. some of these newer measures are working. selina: twitter and facebook have historically taken a very hands-off approach for free

speech. they started to change that over the past year. they have made it easier for people to flag abuse and harassment. takinge saying they are harsher action on these accounts, more ready to suspend them and temporarily block them. however, jack dorsey recognizes that isn't enough and they are also working on many different measures in terms of the transparency side. last fall they said they would be unveiling this transparency center so users would be able to know where the ads are from, who is backing them, how much money. several months later we still have not heard any word about what the progress is or status on the transparency. emily: at the same time you have twitter making statements and new rules that sometimes seem at odds with this mission by saying foreign leaders and leaders in general, government and world leaders, that their tweets can remain up, no matter what they tweet. selina: that is right, donald

trump throws a whole other wrench in the situation. in the past, they have tried this method before. the ones from last year did not receive a lot of shareholder support. but it is going to be different probably because of the overall environment in the world with a sexual harassment and fake news. emily: we shall see. i wish it was so. selina wang, our bloomberg tech reporter, thank you. google is planning a new push to that top-tier youtube videos they bundled to advertisers. the move is intended to address concerns from clients involving offensive videos involving children and popular youtube stars. last week a popular youtube celebrity logan paul posted a video of a dead body from an apparent suicide in japan. google announced that they had removed his videos. emily: coming up, online start

up cadre caught the attention of goldman sachs. this is bloomberg. ♪

emily: earlier this week goldman sachs made a big bet on what could be the future of banking. the firm announced it is partnering with an online toestment start up cadre make real estate investments through the platform. the ceo is with us from new york. what does this investment mean for you? >> thank you for having me.

we incredibly excited about the partnership. we believe it is a testament to the value proposition of our platform. of making real estate investing more efficient, more transparent and more accessible. and have a partner like goldman sachs, we are honored to have on board, is a great step in our overall mission of expanding access to quality real estate investments for more people through technology. emily: where are your customers typically coming from? >> we have been fortunate to not have to do much in the way of marketing. most of our customers and clients are hearing about us through word-of-mouth. products we are offering, the results speak for themselves. we have a bunch of inbounds through our website, cadre.com. and there are referrals from other investors, primarily offices and other institutions. emily: how many more partnerships of this kind will we see from you? ryan: we are focused first and

foremost on goldman. scaling and accelerating this partnership with goldman. has been investing with us because we can provide them quality access to real estate. but there's a plethora of other opportunities we've been thinking about, expanding and scaling with them. so this is really the first partnership we deliver on. we anticipate there will be other banks, other platforms. we are pretty excited about this partnership executing in delivering great returns for a wider subset. emily: you used to work at goldman and i wonder how close you are to goldman alums and members of the goldman network and how influential that was in closing a deal like this. emily: -- ryan: we have a time

of goldman dna at cadre. the presidents at goldman was one of my advisors. that familiarity made a big difference. and the other dynamic that made a big difference is, goldman invested in a couple of our earlier funding rounds. they had a front row seat. the beauty of our product itself and the power of our data team on the technology front, we got very fortunate that all the dots connected. we are excited for the future. would it be another partner in the future, or target? ryan: we have been surprised by the types of partners that have approached us. when cadre was started, i do not

anticipate this velocity and the adoption of our business model. been private equity firms of all sorts and varieties that approached us. right now, we are primarily focused on channels for individual high net worth investors. such as other investment banks. my guess, if i were to make a bet, would be that we will continue to work with goldman and explore other investment bank partnerships as they arise. emily: obviously, there has been a lot of political uncertainty. paste --m was just passed. i wonder how that will impact your business. be positivewill implications for owning direct real estate. there are structures related to blockers that provide unique tax benefits to our investors. real estate as an asset class is unique in that it does provide

high opportunities and tax-deductible returns. so we believe the asset class, irrespective of tax reform, is compelling and attractive. with some of the reforms, despite where rates will go there are structural advantages , to participating in real estate investing in doing it through a quality platform. it is about who is ultimately overseeing your investment. emily: we talked about this before, the company has ties to the kushners. curious about how involved they are at this stage. ryan: we have a ton of investors that of back to us since we got started. capital through josh kushner was one of our investors. jared kushner was an investor early on. we have a ton of other investors from a wide range of political spectrums. i think it is a testament to the enduring quality of our platform, the value proposition that transcends the political

spectrum. we are going to continue to focus and realize our mission of expanding access and we will put politics aside and focus on doing a great business that will let more people realize their financial dream and change the world for the better. emily: ryan williams, ceo of cadre, thank you for stopping by. in south korea the justice minister reiterated his proposal to ban local cryptocurrency exchanges. they are concerned it will cut demand for digital coins in one of the world's biggest market. one ceo will have the biggest crypto chain talk to bloomberg from tokyo about the rise of regulations in the region. >> it does make a lot of impact to our business. i don't think there are any particular threats. korea exchanges are still operating right now. it is just a potential ban. we do not know where it is. we are away from that.

we should be ok for now. but it is probably impact some of the exchanges. i have been trying to talk to them, but they have not responded to my request yet. we will see what happens. ring there a feeling the is closing in? tell me first of all why you chose to move to tokyo and the events for why you left china were? >> in china it is clear it is no longer allowed and the government is against it. at least their policies are against it. we do not like to go up against governments so we moved out of , china. i am in tokyo right now personally. we have spread around a few locations. presence in taiwan, hong kong and other island countries. tough toasically it is decide where you want to be in

this kind of environment. before, cryptocurrencies -- cryptocurrency exchanges were not allowed. things are becoming tighter. we have to play by ear and see. >> the demand is there. tou had the -- to hal registration. will you get to a point where you can open it up again? >> yes, absolutely. the demand is extremely strong. we opened registration for an hour yesterday and 240,000 users registered. we are growing by a couple million every week in terms of users. we do not expect this kind of growth and our current courses are changing really fast. some of the other parts we are not taking up.

provide aike to customer service that bloomberg is able to provide, but right now we can. actively renting out -- fixing that. probably within a couple weeks we can fully open again. emily: that was the ceo of binance. behindup, the company the wall street decathlon is putting you behind the race. this is bloomberg. ♪

emily: demand for personal computers rose over the holiday season for the first time in six years.

according to idc, just over 70 million pc's were shipped in the fourth quarter. the wall street decathlon kicks off its 10th year in new york city this month. the decade-old competition is introducing new technology. for the first time, outsiders can now stream this race. d10 is uncovering the technology, giving them a live streaming experience. journey is, the founder of d10. tell us how it works. >> thank you for having me. norma came to life for two reasons. four-hourself is a event, which is hard to show in its totality. the second thing is when we built the d10, we built a software suite that allowed us to know where every athlete was

on the playing field at all times. so you could take those two factors. we thought, how do we show this to a global audience without requiring the audience to tune in for four consecutive hours? norma gives the viewer the tool to tune into the d10 or any live event at the perfect time. emily: will this be used for other sporting events as well? >> it will. norma was designed to solve a problem for the d10. but we realize there are lots of other rights producers that struggle with those issues. emily: talk to us about how the technology works. are there cameras all over the events? is it phone-based. dave: it is mobile, we are focused on the millennial viewer who is consuming more content on their phones than on the

television. norma does work as being a multi-camera system. they can toggle between cameras to get what they want. they get the intel inside to an existing rights holders broadcast. so we are enhancing someone else's stream. emily: talk to us about where you intend to take this technology and the expansion of d10. in a perfect world, we see rights holders and event producers showing how to share their content with viewers who now have the viewing proclivity. they want to watch a show in an unconsolidated way. you are busy, have things to do. watching a live event from start to finish is tough to do. can give a much larger audience a way to consume live events and a much larger way.

watch what you want at exactly the right moment. does.s what norma the scope of people that can watch it increases exponentially. we are talking about a global audience. emily: what about expanding to different parts of the country? d10 will do that. we are celebrating our 10th year in new york city, which is really exciting this year. has expanded to san francisco, chicago, houston. the idea is to find those passionate and philanthropic centers where d10 can thrive and work its way up to a national championship format. emily: david maloney, d10 founder, thank you so much for joining us. that does it for this edition of "bloomberg technology." on friday's show we will speak

with a congressman from california. check us out on twitter. that is all for now. this is bloomberg. ♪

>> right now it is all new. >> with special appearances from some of your tv favorites. splash, a stunning before and after story from today's special guest. at age 52, the star of a full house and much more says her skin seems to be looking not older, but younger