>> i'm alisa parenti and you're watching "bloomberg technology." let's start with a check of your first word news. president trump is in excellent overall health according to his physician, rear admiral jackson. at a press conference today, jackson said the president asked him to do conduct a test of his cognitive functions during an exam last week. it came back normal. dr. jackson recommended that the fat andt eat less carbohydrates and that he exercise regularly. former white house chief strategist steve bannon has been subpoenaed by special counsel robert mueller.

he will testify on possible links between russia and president trump associates. nato has confirmed the assassination of a leading politician and is calling on serbia and kosovo to return to associations in brussels. -- negotiations in brussels. a conservative political leader was shot to death by unknown attackers in northern kosovo. the trump administration is cutting $65 million in funding from the united nations relief and work agency, a social service body for palestinian refugees. that is less than half of its expected contribution. 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 and "bloomberg technology" is next. ♪

emily: i'm emily chang and this is "bloomberg technology." coming up, bitcoin's tumble. the cryptocurrency sees its 2015.ailey declined since will we see more selling in days to come? plus, we catch up with arianna huffington. what she has to say about current ideal plans and the me too movement. and one of apple's is getting slammed for harsh conditions. there hasn't been a a selloff like this in bitcoin in months. the cryptocurrency tumbled as much as 25% in tuesday trading, approaching the 11,000 mark. less than a month ago, it was trading at almost $10,000. rival cryptocurrencies are also feeling the pain. to discuss that debate and cover all the news in bitcoin this week, i want to bring in the chief investment officer of a

for cryptocurrency payments and also our editor at large. what is behind this downward pressure? >> same thing as behind the upward pressure, rampant speculation among traders. a couple of academics traced a lot of the rise to just teed up traders, maybe even one, so there was a limited amount of people speculating in this, but when you see that, you start to see a decline in price. ultimately, it will be not about price changes, but the functionality. that's when you mention ripple, who signed a big deal with money gram last week. i think it is kind of amazing that ripple in particular is down so much after doing so much in the last week. emily: take a look at this chart. the purple line is ripple, so you see the decline in price and

other cryptocurrency is down below. how would you pick this apart? >> again, what is another 25% drop amongst friends, i always say? pretty exciting. every time there is good news or bad news, the market tends to overreact and now we are seeing an overreaction on the downward side. there's talk about asian regulators trying to manage and maybe ban some exchanges in korea. i think the regulators do not want to ban it. they just want to regulate it more and make sure it is being done in a legal way, which is good for the industry. emily: what do you think of the impact of asian regulation? cory: to suggest a change in the law, it's a cost. the coin catches a fever.

the suggestion something might happen and something is hardly being used, bitcoin will be used to move money or to buy goods and services, but generally, that is not what is happening. it is not in rampant use. same is true of other cryptocurrencies. if there's not much effect in the efficacy of the cryptocurrency itself, but the notion that might be less effective and might not be as global as it would otherwise be, that is a minor concern, but it has a major concern on the trading of these coins. bitpay seeing a turnaround in transactions? seen any did in our volume, actually. emily: are you concerned, though? >> not really. the market cap has gone up 16 times, but next week, it might be back up again. it coin predominantly goes up

and down and is quite volatile. a lot of new retail buyers have come in. for people who have been trading for five years, this happens quite often. >> we are back to levels we have seen all the way back four weeks ago. back in early december, we were saying this was a fantastic ride, so we kind of still at the same place. emily: what about these cryptocurrency hedge funds? i'm curious what you think about these traders who have devoted their careers to this, but are wondering what to do. >> there are the -- and the fundamental ones appeared they are buying and holding a basket of cryptocurrencies. doesn't matter which one you pick, they all seem to go up and down together. if bitcoin catches a cold, the rest of the industry catches up fever. emily: what is the next bitcoin? will some of this interest flow to the next one? >> some of the ipo's are ridiculous.

there's no natura efficacy and things don't exist yet, that there's going to be sales of these coins that don't even exist yet. some of it is really silly, but there is real money speculating on the value, bitcoin and other currencies as well. i would imagine this selloff -- some investors were looking at this and thought it was to crazy a few weeks ago might like these prices. emily: where do you see the most interest in these alternative points? >> there are a lot of ico's that shouldn't be raising money, but are. a lot of them are raising through an ipo process, which is pretty exciting.

i invested in one with a real business model real customer. i am seeing that happen, which i think is pretty exciting, but again, i think bitcoin is the big currency, and the rest will fall under that for a while. >> would you put those in priority you can >> i think going by market cap. far,in is predominant by and then a theory of, and rest are really trying to establish a use case in global adoption. >> speaking of mark cuban, mark cuban announced the dallas mavericks well except bitcoin as payment for tickets next year. so, i think some of these individual things -- we talked to ceo of kodak -- we tried get him on the air before the .ower went out at ces

you can see what he told me about what they are doing. this is not speculative for him. he says they will be up and running in less than 90 days and they will be putting this to use to solve some problems. i keep saying this when we are on the air -- the actual fundamental usage of this technology for some companies, for some uses is going to be very exciting. it could change the way things happen and make things possible that were not in the past. >> the volatility is so sensational, but what story should we be watching over the next few weeks? regulation? some of the alternative currencies? >> i think you can expect some announcements from korean governments soon, that they are not banning cryptocurrencies. i do not think it affects the mainstream market. ,t is more about the use cases

and again, if you are a long-term holder, then this is just a small downward trend and -- back up in at a couple of weeks or a month. >> thank you, as always, for joining us and our very own editor at large, cory johnson. another story we are watching -- uber will begin limiting the time u.k. drivers spend on the road to 10 hours a day. this is among how concerns about deke and exhaustion. uber -- fatigue and exhaustion. workers will be prevented from logging into the app during rest periods. speaking of sleep and uber, coming up, we catch up with uber board member and drive ceo arianna huffington. what she has to say about a potential uber ipo. this is bloomberg. ♪

emily: a story we are watching -- all 49 democratic senators have signed onto a measure regarding the gutting of obama-era internet neutrality rules. the protections sparred broadband providers like comcast or verizon from locking or slowing web content to favor their own content. the fcc said other agencies could police corporate behavior.

we will speak about their decision to file suit on the show tomorrow. arianna huffington's thrive foral just launched an app eight two a samsung connect more deeply with yourself and others. we kicked it off with the thrive app and asked why we need a app to set . boundaries. >> you would have thought we would not need it, but there has been so much writing over the last few months about how addictive technology has become and how deliberate that addiction is, how social media companies especially use algorithms, machine learning to use likes and social feedback loops to keep us hope.

it's like a coach or guide to help us recalibrate our relationships with our phones. so if yourectional, so if youive mode, get a text message, it will let them know that you are in thrive mode, and also it will help change the culture and expectations. right now, the expectation is that we need to be always on and s immediately.t the second feature is a dashboard that gives you a mirror of your social media consumption. emily: you have a partnership with samsung now, when is it coming to the iphone? what is the strategy for broader use? ariana: it will come in the next six months. we are developing and it will come to the note eight.

we have a partnership with samsung for the app and also we launched together a dedicated thrive global called humanity and technology which is all about this inflection point in our time. big issue in a silicon valley and beyond about what technology is doing to us. emily: how much responsibility do you think platforms like facebook and companies like chple there -- bear for te addiction, if you will? arianna: if you sell hardware you still have responsibility to have features that can protect, especially children, from abuse. in the attention economy, social media companies are deliberately

mining more and more of our attention because that is how they increase revenue and profit. it is going to be very important for social media companies to put the public interest ahead of revenue, which may seem like an impossible task, but we know now that unless they do that, the backlash is going to keep growing. emily: are there other changes you think a company like facebook should be making? think looking at the impact of constantly pushing notifications. i don't know about you, but i have shut off all notifications except from friends. i don't want to know when photo.dy likes a i love instagram. i love all social media apps, but i also limit how much alert's, notifications, etc. to

disturb my life, my ability to connect with my runs, my colleagues, my ability to do deep work or simply to unplug and recharge. emily: you remain in a major role on the uber board. now that the softbank deal has been done, where the company be ready for an ipo next year? i think the company is in a really strong position. the softbank deal is incredibly important. uber will now have on its board thateo of the vision fund led the new funding. what is so important is that softbank is at the center of the ride hailing industry globally, toit is so great for over have softbank now as a major investor.

dara is doing an amazing job. values have been revamped. tremendous progress in the last few months. he has hired a new coo, new general counsel. they are in the interviewing process for a new chairman. i think everything is on track. emily: do you think it ipo could happen as early as next year? said they, dara has ipo will be in 2019 and there is nothing that will happen that will change that. emily: you mentioned a new general counsel. tony west. how is tony doing so far? do you think uber will continue these justicey department investigations? how long will this sort of cloud be hanging over the company? arianna: i don't think it's a cloud hanging over the company. i think it is bringing everything to the surface to be dealt with. at the same time, the company is

doing great things. it's not as if these issues of what had happened in the past are dominating everything. the company is growing, ringing in new major investment, bringing in great leadership talent. so, i think what is happening on the legal front is not really necessary to deal with all of these problems, but it's not in any way consuming dara. emily: i'm so glad you're here because i'm dying to ask you this question. i'm sure you have been following the aziz ansari story over the weekend about an encounter that a woman had with him that she describes as sexual assault. there has been a lot of backlash to this reporting, the "new york times" say he is guilty of not being a mindreader and the " washington post" saying this could derail the me too

movement. talk about what you think the responsibility is of the media here and your take of if this was going to far or if this is a legitimate conversation to be having right now. arianna: the me too movement is incredibly important. it is historic. #timesupby the movement, where we look not just at celebrities but women in low-wage jobs who are often victimized more than anyone else. i think what is very important is to make distinctions between what is sexual assault and what is inappropriate behavior and to also listen to both sides. due process, justice has to prevail because this is a huge culture change and we want everyone to participate in it, and the only way it will happen allowing toly

process, allowing people who are accused to tell their story. that is at the heart of any process of justice. emily: do you think that that story should have been published? would "the huffington post" have published it? of if itot a question should have been published. the question is of both sides are being heard. it is not about silencing accusers. we should not go back to doing that. it is also about along the accused to tell their side of the story. emily: that was arianna huffington. ford is warning that profit will all this year as ceo jim hackett spends heavily to catch up with rivals to bring electric vehicles to work it. wall street had been expecting a drop, but company guidance is worse than analysts were anticipating.

the automaker kicked off in important auto show this week investing $11 billion to bring 40 electric vehicles to market by 2022. coming up, your destination for buying online groceries, next. and a few things i want to bring to your attention, your interactive tv function, bloomberg go, you can send our producers a message, play love with the charts we show you on air. this is for bloomberg subscribers only. you can check it out at tv . this is bloomberg. ♪

emily: google is launching a new online education program that will certify people and information technology support. this after the tech giant spent billions on artificial intelligence which could render

jobs obsolete in several fields. the new program is being developed in conjunction with online education firm course era -- coursera. instantcart -- instacart purchased access to the making and tracking of digital coupons as well as voice activated shopping tools. which will soon be absorbed in the deal serves a dozen grocery chains in canada. shipping giant mers are forming a new blockchain company to track cargo movements. it will also supposedly automate paperwork for shipping across international borders. the venture is set to become available to companies in the second half of this year. coming up, john chambers, cisco press chair emeritus gives us insight into his purpose-driven

strategy, and if you like bloomberg news, check us out on , the bloomberg radio app, and in the u.s., on sirius xm. this is bloomberg.

>> these are our first word headlines from around the world. stevew york times says bannon has been subpoenaed by special counsel robert mueller. and willsays been testify before a grand jury in the investigation of possible links between russia and president trump's associates. president trump's doctor says the 71-year-old commander-in-chief is fit for duty and should remain so throughout his term. he examined the president last week at trump's requests. cognitive function screenings were normal and that the president takes cholesterol medication, aspirin, and

multi-vitamin and a hair loss drug. bitcoin has slumped as much as 25% as a regulatory crackdown appears to spread. other cryptocurrencies also ium droppingh ether 24%. an online trading platform says the crypto boom may be coming to an end. china national petroleum says it expects brent crude to average $60-60 five dollars per barrel that is lower than current levels. they see global oil demand expending less than last year at about 1.4 million barrels per day. i am in singapore, checking the markets missed in asia on wednesday. we are seeing most markets tracking lower apart from new zealand, which is up for a

second session. generally, you are seeing of the rally start to stall in asia following from what we saw on wall street. you have the hang seng index on lunch break, down 161%. no -- 16 of 1%. knows the price there. -- note price there. this is reportedly a healthy correction. the yen is also tracking lower about 2/10 of 1%. is mentioning the big fall coming through in bitcoin, pledging by 23% on the tuesday session. that is after a little bit of a comeback. most analysts we have been speaking to say bitcoin is here to stay. analysts on bloomberg

radio today, they said that the story is not going away and you should watch the volatility coming through. there is weakness right across the board. the health care sector is leading the declines. ♪ this is "bloomberg technology," i am emily chang. former cisco ceo john chambers has unveiled his new project, a purpose driven firm with april for leo -- that already has eight portfolio companies. our editor at large joins us now with the john chambers. cory: yes i am, john chambers is a joining us. jc2?s it called >> because it's about what i think venture capital will evolve into cute and also doing it with my son, so it is jc

squared. we are forming an organization we believe will help to grow probably a dozen startups initially, market transitions from everything from drones to social media to security, to cricket farming which we talked about in terms of the capability. cory: how much money? >> it will be $100 million, it would be financed by my family. cory: that will go a long way when they don't have the capital that they used to. also, what is really intriguing to me is this notion of social impact. this is a substantial sum of money. but focused on social impact. tell me how that means to you -- what that means to you. >> if you look at my prior life, this is the next chapter. it was about cisco growing. changing the way the world works.

we won most every corporate social responsibility award. when we are doing at this time is refocusing on startups where all job creation has to occur. large companies wilma higher over the next decade. a number of companies are down dramatically, a 40 year low. there will be countries like france talking about their and with prime minister modi in india. i would like this to go across the u.s. i would also -- i also believe this is where innovation will be done, in the startups. if our country is going to lead it will be uniform across the , state, it will also be the innovation engine for our future. i love growth, challenges, i get my pick of the litter in each market transition and i'm trying to do a good job not being a venture capitalist. it is about mentoring young

ceos, helping them grow their companies. ciscoone of the things did under you is so many acquisitions. it went very well. i wonder what that meant in terms of coaching and mentoring. and how might that play out in this fund? >> it is a great question. it plays out in two ways. the first is from the first acquisition i did, crescendo, i paid $90 million. the stock went down, is a $30 million revenue stream. two another, where we paid a pretty high price, but yes -- , it's a runn a year rate. first you have to get the market transitions right, you have to get companies that fit into your culture and you do that by spending time with the ceo. i know within 15 minutes when i talked to an acquisition candidate where we going to do the deal. cory: we have had this conversation for years, what do

you see in those ceos? >> it is identical. you see very highly motivated, extremely high energy, really smart people who really want to be coached, you can feel the culture in terms of their attitude, their people. cory: want to be coached? >> want to be coached. if they don't want to be coached, i move them aside. you want to companies that want to stay with you. because people just got really rich. 20 or 30% in the companies. same thing with the startups. are they able to visualize market transition? of a brilliant engineers who crafted technology really brilliant business people who understand the applications of it? you look at the culture.

many young ceos don't talk about culture, they get the strategy, they get the management evolution, but you don't have a great start up without a strong culture. teaching culture is a huge part of what i do. there is nothing more exciting than when you see the lights go off and they get how culture will make a difference in the future. this is 250% growth. cory: which is not necessarily what you saw at cisco. you have some ideas that are very nascent now. this is a whole different level. >> we started at cisco, we were 70 billion in sales. by the time i left, it was 747 billion. we used acquisitions to do that and also internal development. once you understood the acquisitions and the culture, it is the same thing about market transitions for the startups. i get the choice in the industry, i hope i can live up to expectations. the money is the third thing on

their mind, they want to coach , a mentor, someone who is done this before. i won't go with anybody who does not want some tough love and the balance. today i talked to three startups. typical problems, i have a personnel problem, i really need to struggle with how i get my culture message across. cory: used to be that you acquire a company where that culture would fit in with cisco. you don't have a cisco to match anymore, does that cultural mash -- cultural match work anymore? >> even more. literally social media management, changing customer expectations. cory: the company that shoots down drones. >> this basically freezes it and there where does the commercialization of drones and insurance and construction,

transparent government. you have one that would do a virtual assistant, speech assistant in the enterprise. you begin to think about the crickets we talked about. provera that makes your phone really secure. but all eight of the ceos, even though they are from all over the world, they're all americans if you will, they have the same view in terms of what is right and wrong, the same view of one -- view of wanting to build a great company and and how you treat people. i like to partner with companies that want to be part of the culture. cory: always a pleasure. >> let me give you my first card. cory: the first one. emily: you got it, you got the ticket. our editor at large with the legendary john chambers. a story we are watching.

qualcomm launched a public defense against the hostile takeover by broadcom. in a letter to shareholders, the board tod trust the current strategy. broadcom fired back at accused the chipmaker of overpromising and under delivering. coming up, the appetite for venture funds is growing. we look at numbers that hearken back to the .com era. this is bloomberg. ♪

♪ emily: now to a story we first

brought you last week. venture capital funding in the u.s. hitting highs not seen dot-com boom. firms spent $84 billion in more than a dozen companies according to research from pittsburgh. julie, let's break down the numbers. where is the money going, how much and where? inie: this is $84 billion 2014, the largest amount raised t-com boom.o a lot of this is going to companies that are at a later stage. they are commanding a lot of funding for these things. there is a separate report from insights and pitch book on global investment and that has 33 rounds of 100 million or more. you can see a lot of these big rounds.

not so much a smaller companies, that really brings the data up to the higher end. emily: how do you expect this number to be different in terms of the kinds of companies that investors are interested in? ,> think about health care transportation, agriculture, food tech. many investment opportunities but that will continue throughout time. i think that provides a great investment over time and we are seeing that and we expect to see that in the coming year. emily: when it comes to biotech, health tech, is that something you are seeing getting a lot of pick up? jeff: we are seeing that we are checking to see a big boom in the first quarter, around from an ipo perspective, which will provide good liquidity. emily: are there enough places to put that money? julie: it doesn't seem like it because venture capitalists still have a lot of money on the

sideline. tech is getting a higher percentage of the money now. it's hard to find places to put it. they also might stay private for longer and they may command more private equity. does that amount of money change the landscape? jeff: it's interesting, anytime you have that amount of money move in and make the rounds, you take a step back and look at this as a result of a zero interest rate environment. investors are having to seek more risk to find yield. we're seeing that come to roost. it has never been less expensive to start a company yet it has never been more costly to break away from the pack. so we are seeing in the research that we did, we found that the number of venture backed startups in the united states

tripled in one venture generation so from 2003 it went from 6000 and now we have over 18,000 venture backed companies. emily: do you think ipos will be an alternative way for startups to raise? jeff: they had $5 billion last year, venture raised $8 billion. i don't think it replaces venture funding, it may provide near-term you will see increased regulation to provide investor protection. emily: that ultimately places a cap on how much you could raise? in two or three years, could the balance of power be different? jeff: in its current form, most of these ico's, the analogy i use, it is like your by frequent -- is like you are buying frequent flyer miles for an routes andt has no no airplanes yet. you're talking about buying coins to use on a service that will be built. really, the value that has been

there in the idea it will be going up. we are finding that is not the case. emily: what are some of the biggest concerns you are hearing? >> it depends on what stage vc you are in. they might be more worried about softbank or other sovereign wealth funds coming in there. they may worry about the ico's and the company decided to do that in terms of what they want to do in the first financing run. it depends on which type of companies you are looking for. emily: you think we will see others trying to copy the softbank model? julie: i would be very surprised if they didn't. emily: what would be the impact of something like that? jeff: it jams up the ecosystem and that would potentially allow companies to stay private longer and we talked about 18,000 because if you look at the venture ecosystem, they would have to recycle capital and we need to have that recycled to continue to do that. emily: doesn't get us closer to

bubble territory? i know it is such a cliche, but i have to ask. i define a bubble as when the majority of the asset and asset class is overvalued. historically i have looked at it that way because most of the conversation is around unicorns. what is interesting is when you look at it from the overhang perspective. you look at these companies, they need people, customers, places to put them. they compete for all these resources, which are finite, and that makes it more challenging to realize and create value for the shareholders. emily: all right. thank you so much for joining us. coming up, a new report by and advocacy group describes poor working conditions at an apple parts supplier in china, and we will dig into the latest. this is bloomberg.

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♪ emily: a chinese video site backed by tencent is trying to raise money out of a $17 billion valuation. according to people familiar with the matter, they are targeting a billion dollars in financing as it expands the video streaming service to southeast asia. the company is a video platform in the same vein as instagram and periscope. sources careful to note that no final agreements have been reached, however, and the deals -- the details of the deal could change. one of apple's largest chinese suppliers is eating slammed for harsh conditions workers have to endure. one of their factories are under scrutiny after a group found violations on a factory floor.

peter elstrom joins us from tokyo with the latest. what are the actual allegations here, what you make of the criticism? peter: it is important to note that there is a report out from china labor watch. in addition to that, we sent a bloomberg news reporters to interview workers ahead of this report coming out and they described quite harsh conditions that they're working under. they talk about standing up for 10 hours. sometimes up to 10 hours straight in hot factory conditions as they work on these iphone casings with loud noises and sometimes they say they don't have the proper equipment, including masks and gloves and earplugs. they talk about the difficulties there, they also talk about if you are claustrophobic, they say there are hundreds of workers working in this factory and the door only opens about 12 inches , which makes it difficult to get in and out quickly and the reporter was able to visit their dorms to see the living

conditions, which were difficult and quite cramped. many workers jammed into small rooms, no showers or hot water at all. so it is a quite difficult situation for these workers and they talked about how they have asked for some of these protections and haven't been able to get them and when it comes to safety training, they say they are supposed be getting 24 hours of training before they begin working at the factory and in some cases they are forced to sign off on the paperwork before they finish all of that training , and in some cases getting only an hour of training. emily: the door only opens 12 inches, how do these kinds of descriptions compared to what we have heard about apple suppliers nothe past, which has always been the most glowing reviews of the conditions workers have to endure. peter: that is right. to be fair, apple has worked

hard at addressing these kinds of labor issues in a supply chain. back in 2010, there was a rash of suicides at the primary partner for making the iphone and apple took actions to try to address that. they also did, they set up counseling services for some of these workers, they provided 24 hour hotlines to be able to call in any kind of issues and they set up nets around the factories to stop some of these suicides , so they have worked hard at this. apple has been putting out these annual supply reports, talking about their supply responsibilities. they said last year they did more audits than ever before where they went to the factories and did complete site audits, they did 700 of those. addressing this, but it is important to note that they use these factories to save money and make higher profits for your shareholders, it is part of a business model. emily: apple gets a lot of attention but how do we know how these conditions compared to

supplies for other electronics companies? peter: it is an ongoing issue in china, and as mentioned, apple and it supply chain have been working hard at trying to address these issues and make the conditions better for their workers. their ongoing challenges throughout china, they take on this high-tech manufacturing reserve, this is some of the best jobs in the country. the wages may not sound like much, the workers were making more than $600 per month which works out to a little bit more than two dollars per hour. it doesn't sound like much, but in china that is a reasonably healthy wage. a may sound low compared to $1000 iphone but it is relatively healthy. emily: peter elstrom in tokyo. thank you for that morning update. that does it for this edition of "bloomberg technology." we are livestreaming on twitter.

that is all for now. this is bloomberg. ♪

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