is come to vote that the measure will pass while minority leader called the gop last-minute effort amateur hour. --sident trump make a stock stop to pennsylvania. himalled apple ceo to thank for his promise to reinvest billions of dollars into the u.s. economy. the president was on hand to support gop congressional nominee rex akoni. mexico., canada, and have agreed to extend nafta talks in montreal by one day, to generate 29. -- two january 29. british prime minister theresa may met with french president outside of london. the meeting was intended to strengthen security and intelligence ties between the two nations.

they are also hoping to help with brexit negotiations. global news, 24 hours a day, powered by more than 2,700 journalists and analysts in more than 120 countries. this is bloomberg. ♪ >> this is bloomberg technology. coming up, ibm and its 20 two --rter street -- street streak. amazon is set to build its second headquarters. of uber's travis kalanick was darker than you thought.

but first, to our lead. ibm released fourth-quarter revenue growth for the first time since 2011. the shares in the big blue are dropping after hours trading despite the fact that ibm's new mainframe servers are playing a major role in boosting sales. as theys are anxious face competition from the likes of amazon, google, and microsoft. joining us is bloomberg intelligence analyst. we're seeing a revenue spike after many years of decline, but shares are trading down. what is going on here? >> it has to do with the margins. i think investors might be looking at some improvement over there. as far as revenue increases is concerned, this is baked in. when you do fourth-quarter numbers was going to be strong because of the mainframe cycle. canquestion is whether they

sustain this momentum throughout next year, and we will learn about that in the conference call which is starting soon. placed bets and cloud computing, artificial intelligence -- have they prove that this is paying off yet? both of those -- that is a very good sign. as i said in the past, the legacy business is still a very large business portion of ibm, and it is dragging down overall growth rate. they have to perhaps add an acquisition to accelerate that momentum even more. what we're seeing is tech spending and global enterprises that should help that emerging technology portfolio in 2018. what does this mean for ibm's long-term trajectory? lot of need to have a these quarters with positive growth rates, and almost every

quarter i want them to have slight improvement in the growth rates. ibmou were to look at it, is trying to position itself as a cloud, software company. we still have a long way to go from a zero to 1% growth rate. it has to be a gradual process. >> what is the investor outlook right now in this turnaround strategy? is there skepticism or hope that this could improve? >> i would say the playing field is somewhat even at this point. drive-in skeptics in the last several years. --have seen analyst upgrade the growth rate has come up from negative 2021%. that is the if they making the space. >> now another top story well

watching. amazon has narrowed its field for its proposed second headquarters in the u.s.. 20 cities make the cut, among them new york, chicago, miami, and boston. it is supposed to cost -- and 50,000 jobs. big data to help modern recruiters acquire talent -- so spencer, i want to start with you. if you take a look at a map of the location to have nor down to -- they have narrowed down to. there seems to be a strong concentration on the east coast and south. there are three bids from the washington dc area. are there any surprises are standouts? on thee's a big presence

east coast and southeast, and big metro areas. intoldn't read too much the three areas around these see because amazon is likely , and thoseabor pools often cross geographic lines. onould be amazon focusing that general area, but they have to negotiate with different political groups because of geographics. i know your firm has been talking to the biggest tech hubs. do many of them line up with what amazon has released? we look at a lot of the data, and we have data on half a million people in terms of skills and capabilities and what you will find it is bigger cities like new york and los angeles tend to have the most candidates to pull from. but you look at the list, you

have a lot of proximity to universities. for example, pittsburgh being proximate to carnegie lemon. the irrelevant factor. >> amazon also received proposals and hundreds of locations. what is the process to narrow that down? what they're talking -- thinking about is what will happen in the next 10 to 30 years. death to factor in public transportation, cost of living, i think it really breaks down to talent. can they find enough talent in that location? the people want to live there? old the quality of life ultimately be? >> we have a city ranging from new york to even suburbs like montgomery county. isi think the main thing going to be the size of the labor pull and the right type of talent in that liverpool. amazon churns through people if you talk about

50,000 employees, you have to talk about turn. they need a big talent pool to draw from. take to attract people to the city that they choose? where are they going to come from? are they going to be organically grown? >> yes so many people growing up in other parts of the country, and when they look at the cost of living and their hometown, they would love to stay if there were enough jobs. -- see people grant gravitate towards the bay area or urban areas because they perceive their hometown does not have the economic opportunities. say we are a bet to going to be able to keep the talent that is in that area there versus watching that town leave and go to other places. that will things

factor into this is amazon's focus on a diverse workforce. if you think about where they might be -- that will factor into the equation as well. >> amazon has received huge tax what sorts of benefits do you expect them to get with this new headquarters? if you think about the warehouse jobs. those are lower skilled and lower paying. it is going to be easier for politicians trying to lure amazon to justify even better deals. and it is huge -- 50,000 jobs, though compensation in the $100,000 range. these are big economic impacts. when you see the warehouse is coming could expect to see much more so for a headquarters operation that is trained professionals earning good salaries and buying homes in a good economic ripple effect in

that economy. speaking of economic impact, amazon has transformed seattle and brought economic wealth and strains on the infrastructure and rising prices. what will this ultimately mean for the chosen city? >> it is huge. have 50,000 relatively high-paying jobs. but then it is the follow-up of facts. you will bring other companies, other innovation -- it might be more appealing now to live there, to go to school there. it is huge, which is why you have seen so many of the cities or to great lengths to attract amazon. there is not a lot of amazons in the world right now. >> fascinating stuff. john, think you so much for joining us, as well as "bloomberg technology" spencer.

that you shall out the and legal action. we'll talk the state attorney general bidding that effort. up next. i "bloomberg technology" is livestreaming on twitter. check us out on weekdays. this is bloomberg. ♪

approvalmm has one eu to take over rival chipmaker. walk-on said they want by near

field-spread will also maintain certain licensing terms. a side effect of the deal may make it harder for broadcom push through its takeover bid for qualcomm. the fight for net neutrality is heating up. a coalition of 20 attorney overal's pursuing the fcc its decision to roll over the obama era decision. becerra talked to bloomberg earlier about what is at stake. >> is a fight we have to win, because if we cap, the people in this country will no longer have access to the internet they expected. we want the freedom to choose, and if you get rid of net shotty, then all of a sudden you haves wsystem where the ill have it all.

what about putting brought back in rural areas? >> it won't work. by what a company invest money in a rural area where you can't make money? sete aren't enough people of higher income areas in the country or density populated areas. that is exactly why you need to have neck shelti -- net neutrality. ornk about water electricity. we don't tell companies who dispense water or electricity the places they get to provide education for our kids. you decide where you want to go based on money. we know where they will go, or there is money, and leave everyone else behind. think about the old mail service, in rural areas, there were the mail service because of the lack of money. to fight theou do

rollback on net neutrality? is it possible for you to take a case against an internet service provider that might be discriminating by providing to some of services its customers? can you do that? >> we can continue to enforce state laws and ensure that the company is not discriminating against communities. we can work with state that weors to make sure can pass wherever laws we can to make sure we have a robust regime of protections for consumers, and we are moving in all of those fronts. not only about providing people with choice and freedom to choose, but it is also about keeping california's economy moving forward. we are the economic engine for the country, we are the sixth largest economy in the country i would we want anyone to disrupt that? opponent of the

fcc the entertainment or tech industry? both. they both understand the consequences of not having that access for consumers. if the choices made by those who have money, who wield power, than those in the middle, the middle class are the biggest losers. they don't have the financial leverage to try to attract the business their way, and they will be left with crimes. -- crumbs. different left with types of choices for the media that they could watch. their kids -- if they use the internet to use homework, there would be kids who it will have and exceldo homework at school, and ruby a vast number of kids as parents can't afford that, and therefore they're going to be behind. ivan conversation with internet service providers in california? working with a

number of internet service providers, and those in the internet community overall -- for the last year i have been attorney general. california has been moving to to protecthat it can consumers before this action by the fcc. thatll continue conversation, because we want our companies here to thrive area california is the innovator. we want companies to locate in california. we know that innovation occurs here, we are ground zero for innovation. we want to do it for everyone. >> that was california attorney general speaking with bloomberg on the battle of net neutrality. that that will allow you to save, and investors to change. this is bloomberg. ♪

>> financial technology startups are grabbing a greater share of capital from investors. they are making their first non-bet on us in tech business by backing growth. offers an app that tailors to people with a small amount of disposable income. people use the app. running us now from new york is acorn ceo know what turner. how does that at

work and what is your target demographic? acorn makes it effortless to invest in change. change goes into a straight fund in a simple portfolio. when you sign up, you link your back a cop -- back account and credit cards. we invest the spur change into your portfolio, automatically. >> people are using this to invest -- what is the average investment size? >> it is really easy to invest $250 a month. we also have an automated recurring investment where you can make an investment by the day, week, or month. save five dollars a week, so it makes it simple to add that up. if you are setting up a

recurring payment structure, still a small amount compared to .arger global advisors what is the plan to get profitable? >> that is a good question. our customers across america tend to be under $100,000 household income. we have a simple business model. we have a subscription service, a small monthly fee. also have found money come were partnered with brands like nike and airbnb, and those brands invest in customers accounts, when you shop with them, and that we would make money too. we make money with brand partnerships and a subscription model. one of the things we're passionate about his building a business by doing good. digital wealth management also targeting more beginner investors -- what makes your company different? >> a couple of things.

first, we make it easy to get going. the thinks, because of roundups and automatic investments, you are investing frequently and you come back and costly see that investment adding up. you see seven dollars, $20, and you get encouragement and confidence that you can be a savior -- savor and investor. you see people were investing in their 30's or never have started investing, so that is one thing. connect spending with investing. with our roundup feature, when you go about your day and make purchases, but also make sure you make purchases. money program, when you shop those brands, they invest in your acorn account as you are shopping area we also focus in financial education. we have a publication called

grow, and the educational information is there for you while you are making decisions inside a product. those are the things that make us different. >> i want to talk about your fascinating investor list including bono, ashton kutcher, kevin durant. why are they getting on board? >> i think our investors like paypal, pbg, they get really excited that we have a good business and where doing good. a product that helps americans were underserved . it is fair to our customers and it also allows us to build a strong business. >> acorn ceo, think you so much for joining us. coming up, travis kalanick's downward spiral at uber. this is bloomberg.

♪

>> are watching bloomberg technology. here's a check of first world news. causede global warming 2017 to be one of the hottest

years on record. about the 20th century average. asset and researchers from berkeley ranked last year as second only to 2016, even in the absence of el niño which boosted temperatures naturally. first-time claims for jobless benefits and the u.s. have fallen to their lowest levels since 1973. 41,000nt claims held by to 21,000. that suggests the 4.1% in the plumbing rate, the lowest since 2000, could fall lower. arens of u.s. ambassadors expressing deep concern over the president trump's comments warning that engagement is crucial about protecting american interest. japanese prime minister shinzo i've been met with his australian counterpart thursday in tokyo. the two leaders want to maximize

pressure on north korea as a want them to seize the nuclear missile program. the countries are considering visiting expanding their military cooperation. global news, 24 hours a day, powered by more than 2,700 journalists and analysts in more than 120 countries. parenti.a this is bloomberg. it is 6:30 a.m. in the morning in hong kong. we are joined by sophie they look at the markets. happy weekend to you. >> happy friday and happy weekend. we have futures and japan and australia pointing to a subdued open following that trade being sideways in the u.s. on the data front, after a heavy day, we saw asia north korea -- china's economy delivering its first annual pick up since 2010.

we might see that list of asian stocks today. china provided a tailwind on copper. humming along and will check on that. we have copper futures extending gains. the dollar is back on the defensive and gold edging higher after a treasury yield reached 2.6%, and oil is slipping. kong, up next, more boomer technology -- more "bloomberg technology". ♪ >> this is bloomberg technology. i am selina wang, and for emily chang a it on the top story for the day. amazon has noted its list down

for headquarters. among the top contenders is new and, boston, chicago, toronto. it is expected to create 50,000 jobs. joining us now is an analyst who covers amazon and at jmp securities. why do think that is -- this is have anything to do with trying to boost its profile under trump's agenda? >> thanks for having me. i think it has everything to do with them to show how important they have become to the overall economy and the marketplace and how they are driving innovation that is happening both in online and off-line retail. you are right, the $5 billion come at the 50,000 high-paying jobs, it is wild as you go on and read the press release. over 500 thousand

employees worldwide, so they certainly aren't small by any be equal anding to stature. it is a big deal for them. and it is an example of how important they are to the broader ecosystem of commerce in the economy. >> i want to shift gears to their new ventures. guest sacrifice profits for growth, and have been rebuilding this marketing platform. you think this could -- move the needle? >> you think about 2018 and key trends at amazon, we talked andt the new headquarters whole foods integration. online advertising and building ita marketplace -- absolutely would be a needle mover in terms of ability profitability

overall. if you see margins at facebook and google and other advertising marketplaces of that size and that scale -- you are talking about contribution margins at 75% to 80%. amazon can be a big driver and profitability. -- the awsbusiness business, and even advertising, their high-margin businesses that could subsidize even more in their e-commerce and initiatives. >> at amazon is successful in building this platform, could they pick up the duopoly between facebook and google in digital advertising? >> bill be hard to break up, there's the off-line and online secular shift that is happening. properties of that

scale -- the amount of knowledge and ability to target a user. something you can't do as effectively off-line, and so, i don't think amazon entering the fray would significantly impact google search at the end of the day. such remains a key part in most advertising campaigns, but what it would do is impact traditional media. it might earmarked towards off-line uses like tv or print, and might get rid allocated to amazon -- reallocated to amazon. facebook and google have solidified themselves as must -- must buy networks. i don't know if it impacts google. i don't believe it impacts google or facebook, it makes a larger for online advertising that is growing to 20% on average for the last several years, which is impressive. >> will have to check with you a

few months on that. thank you for joining. androm investor lawsuits resignations, 2017 was a rough one for uber. for all of the crises that hit the start up, they had a critical problem in their foundation. --mer ceo, travis kalanick an inside story on the uber's last year in the fall of travis kalanick. joining us now, eric, this is a fantastic story and much darker than i had anticipated. from the pr crises and internal turmoil. give us the scoop you had. >> one we wanted to take people behind the scenes. he was actually in a meeting with top executives -- discussing uber's toxic brand.

uber had found that people had a good impression of uber if they had never heard of travis kalanick, but if they heard of him, that is when they had a negative view. it was pulled out, and on the floor, squirming area saying, this is bad, i am terrible. was a jarring moment for he wasves are felt like essential to the company's image problem. >> we are to take on the show. when dara first and read travis, it seemed like travis was still in charge. was this situation now? how does he distance himself? >> an executive committee was supposed to run the company, but travis was trying to recruit the new ceo, and he called them to some meetings -- and i won't point was talking about a potential shareholder vote to

see what type of support he had. i think it has pared back. deals offered 50% of his is part of the softbank deal. today he should be a real billionaire, not a paper billionaire. sold $1.4 billion, so he is now stepping away and are up is taking over the oxygen. company. dara'ss >> what is the turnaround strategy? >> they were a rule breaking company breaking through the taxi company, so now they are the incumbent. they are striking agreements with london, brazil, and apologizing. there is a lot of apologizing, and disclosing of actions. dara talked about the hack of accounts before the press was on to it.

it was owning up to uber's mistakes, and moving forward. >> we also had a fascinating detail on arianna huffington is being a big allied of his and had a presence in the company. >> she was super close to travis kalanick, she was for a long time seen as a loyalist. fresno with travis and when his mother died in a tragic boating accident, so they were very close. she plays an active role in the to some mixed reviews. and also bringing her expertise from thrive to uber. am looking forward to your next cover story. >> thank you. >> meanwhile, uber has completed

its deal with softbank. it is a valuation of $54 billion at a heavily discounted price. it puts changes to its board and stuck that is contagious of the transaction going through. to 17.xpanding the board coming up, white a company pivoted from bitcoin. next. this is bloomberg. ♪

>> rest taxpayers might be paying for the missing satellite backrest into the ocean earlier this month. industry experts don't think will bear-- space x the costs because they have government contracts that limit their liability. now let's turn to the cryptocurrency market. bitcoin on thursday as was at the $10,000 level. 5%, whilemore than ripple jump to 26%. the volatility calls for more regulation around the globe, and that is making investors question if there's really opportunity in the market. us now is jeremy

allaire, the ceo of circle, that helps customers instantly sent digital currency payments. he joins us now from boston. germany, i want to start with the falling value -- jeremy. the rising regulation, which of these currencies is actually going to have utility and staying power moving forward? banks. if you have been in this market for a while, for our five years, 20% is normal. if you are in a public stock market, 20% moves are normal. this is highly turkey lysed by hi and volatility. yet the look at the charts over a week, over a month, over a year, over five years to get a bigger picture of what is happening with these assets and how they are going in value.

a lot of things going on. on the regulatory side, this is really a market that is maturing. four years ago there were no regulations, it was the wild west. there were no exchanges. we are now in a world where this is regulated in the united states by multiple regulators and mainstream investors are involved in it for you there is more retail products. .apan has embraced this they embraced it by regulating it, and so relations is not a bad thing, it is a good thing because it means consumers are protected. it means investors are protected, and there is not market manipulation. regulatory, engagement is a positive. when people step back from this, they see that and it explains the rebound we have seen over the past 36 hours. >> you actually stopped

servicing direct consumer bitcoin trades. why make that payment? payment -- that pivot? content and data on the internet, and we wanted to build that on top of cryptocurrency technology because we thought it was a foundation of how money is stored, and that is what we did. we built up a system around that. people in that payment product were buying and selling bitcoin, it allowed for that. it wasn't really the center of the design of the product. circle k is for free social payments whether you work in dollars, euros, or pounds. the blockchain can work with many currencies around the world. there is a crypto power in terms of been mobile or square that works in more places around the world.

to build out our crypto trading operation that supports that, and allows us to make it a free product. that has really grown, that circle trade. it is one of the largest, if not the largest market platforms around the world in crypto, and we trade billion dollars a month and crypto. it is a significant business for us. >> it is fascinating and has become a large part of your business. large institutions like portman sachsen likes to get into this sachs.s -- like goldman what is the impact on that for your business? >> we look at it a few ways. the first is that if we see the scope and the volumes we see you seeom the vibes today, it is a great opportunity for a lot of players to be in the market. there is not one broker-deal in the

>> as spotify preps for its ipo, it's working it's way to listeners away from apple radio into the podcast space. it's effort is called spotlight. where listeners away from apple radio into the podcast space. it's effort is called spotlight. where -- we are joined by lucas shaw in los angeles. how advantageous is listeners ae this to investors ahead of the idea? >> spotify has been trying to convince investors -- as successful as they have in at creating this demand for online music, the company itself is not profitable, because it pays so much about to rights holders. these types of programming, whether it's news, culture, podcast, video, where are if they are successful in them,

they can bring in new customers, sell some ads, and they will have to spend as much. that will improve the picture and futurers shareholders. >> spotify has been steadily diversifying. what other projects have been they working on, and how successful have they been? >> it has been mixed. in the past few years, they have dabbled in audio and forms of audio that are not music. things like espn, funding original video series. none of the products originally worked. the executives are pretty aware of that. podcast have held more promise. spotlight is trying to fuse these two ideas together, where you take audio and enhance it with visual elements. spotify has come to the conclusion that having a radial video competing with you to --

video competing with youtube won't work. take audio and make it better, they can sell ad at a higher rates. >> what do you think news coverage will be on spotify? there is huge competition coming there is huge competition coming from apple and google. >> i think there is huge potential for it. i think about it personally. on my way to work, i tend to toggle between listening to podcasts, music, and the radio. take audio and make if they can deliver podcast and news where i can do that in the same app that i am listening to music, that is a behavior that is replicable for a lot of people. they have a lot of competition. they have to get the word out there that if you want to listen podcasts, you can listen to

it on spotify and not the apple app, which accounts podcasts, yo for 60% of all podcast listening. >> i will be keeping an eye out for spotlight. that does it for this edition of "bloomberg technology." a reminder we are live streaming on twitter. check us out at 5:00 p.m. in new york, 2:00 p.m. in san francisco. that is all for now. this is bloomberg. ♪

>> 7:00 a.m. here in hong kong. live from bloomberg's asian headquarters. i'm yvonne man. welcome to "bloomberg daybreak: asia." asian stocks facing a mixed start after a choppy u.s. session, trading and the dollar lower. democrats and conservative republicans say a stopgap bill is under threat. is under threat. a vote is expected soon. from -- ty: just after 6:00 p.m. on this thursday. morgan stanley with more bad news on trading revenue. but optimism about the taxty: jn this thursday. cut. spotify