♪ alisa: i am alisa parenti in washington and you are watching "bloomberg technology." rand paul is the reason the senate has not voted on the senate's spending package. he is holding for a vote to keep congress under strict budget caps. all 100 senators must agree to hold a vote. without full consent, it would happen at 1:00 a.m. the government shuts down at midnight tonight. letterelosi send a saying she would not vote for the bipartisan deal because it does not include protections for dreamers. she did concede it created investments that will create

jobs and spur growth. she spoke for more than eight hours yesterday in opposition. porter's today is rob last day on the job. reports surfaced he had emotionally and physically abused his ex-wives. senior white house aides were aware of the domestic violations and violence that was alleged. eagles fans have waited almost 60 years for this. superelphia honors its bowl champions. global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. ♪

emily: i am emily chang and this is "bloomberg technology." qualcomm rejects broadcom's bid. why they say they undervalued the company. twitter makes a profit for the first time ever and profit -- revenue grows after four quarters. their blockbuster earnings report. and, a gold medal for pyeongchang. they will be the first to reveal 5g. qualcomm has officially rejected broadcom's bid of $82 a share. they say it materially undervalues the company and falls short of regulatory necessities. the broadcom made the bid, company stated it would be its last offer. joining us, cory johnson. what does this mean for qualcomm and broadcom?

it is looking increasingly unlikely. there are a lot of headwinds. the markets saw, did not believe what was going to happen. it was a cash and stock offer. the new owners would have to agree shares of broadcom priced as they are have more shares than the price of broadcom. they did not think that was the case. qualcomm will go their own way and try to right their own business. qualcomm shares traded far below the broadcom offer. we -- this was not going to happen. that broadcom will say the ceo gets what he wants. does he have any other options and what are they? in terms of broadcom doing other acquisitions, there is no

company quite like broadcom. the only one like it is intel. guppies is like swallowing a whale. asset qualcomm has an there is no other company like it. emily: cory johnson, you are sticking with me. a banner day for twitter as they post their first real profit. shares of sword the most since they reported their first revenue growth in four quarters. a turnaround trend for twitter, which recently lost its coo and has been fighting a scorch of the fake news. scourge of fake news. what are the highlights? >> twitter posted solid financial reports but investors might be overreacting to what is mild progress. we did see revenue pickup for the first time in a long time, but it was only 2% growth. we saw a gap, but it is unclear

if that is sustainable because that was mostly due to severe cost-cutting over the past few years. most alarming, monthly active viewers failed to grow and declined in the united states. daily active users show double-digit growth. how much more value can you continue to extract from the same active user base? at some point, twitter will hit a ceiling. the long-term sustainability of the company is still up in the air. emily: if more users are not going to come, can they squeeze more out of the existing users they have? cory: that is the question. we have seen a decline. if you look at the year-over-year change, it declined over the fourth quarter in 2016. that is the wrong direction. you want inclines, not declines.

$1.22. we might have a graphic that shows that. either way, the numbers are going in the wrong direction. really what we want to see is a year-over-year change. but they really have to commit advertisers to pay a lot more. as the next goes more down.ational, it goes they might be able to raise rates in the u.s.. .ut they lost users in the u.s. as the mix shifts to more international, and 79% of users are international, you will see less revenue per user because it is not worth as much. emily: we have a chart that shows the profit. 5950. g #btv how will investors use this given the lack of progress around users and the obvious

progress when it comes to profit? we are seeing investors overreact. they are excited to see twitter jump above and beyond that low bar. ofre is the growth international users. i spoke to an analyst that said if you are betting on twitter, , andre betting on asia most specifically, japanese growth. japan saw double-digit growth. u.s. growth was declining. that is alarming given what cory said earlier, you can get more value per user in the united states. investors are really excited about the incremental product twitters -- product changes twitter has been making. which is finally bearing fruit. some changes include the timeline. they have adjusted the hour where you see the most relevant tweets. we have seen them do more

experimentation on the explorer are you jack dorsey admitted twitter has not done a great job matching users on twitter with the interests and topics they want to follow. that will be a big focus. that is what investors are reacting to. we will probably see the share gains tear down the next several hours. emily: selina wang, cory johnson, thank you both. manages a twitter product called tictoc. collegey strong sales, duty franchise brought the game back from outer space to world war ii. chipmaker nvidia also coming in with the numbers -- earnings. they beat analyst estimates for the fourth quarter. expedia reported its fourth-quarter, adjusted earnings missing the lowest analyst estimates, $3.2 billion. .36 billion.d $2

[inaudible] this is bloomberg. ♪

♪ lyft has hired a new coo to gain ground on uber. report department will directly to elon musk who said there are no plans to search for a replacement. tola has pledged to it -- have its own ride hailing service with self driving cars. there have been little signs of progress on that initiative. amazon taking a big step to integrate whole foods in its operations after purchasing the grocer for more than $13 billion last year. they are offering free to our deliveries from the stores. it will be available in 40 u.s. cities. amazon plans to expand the service this year. i want to bring in olivia zaleski, who has reported extensively on the amazon-whole foods deal.

always great to be in the same place as you, david. walk us through the nuts and bolts of this and how it will work. the numbers.t with about 90% of amazon prime's 90 million users live within 10 miles of a whole foods. it is a no-brainer amazon will come in and offer it is option where you can get your groceries delivered for free within two hours from those hubs. if you think about it, it is much smarter to have deliveries coming from these individual stores. they have a 400 plus stores. they are in some of the wealthiest neighborhoods in -- on the planet. you can go in, have the deliveries come from those stores, rather than a warehouse, where it is more expensive. emily: we have been talking about this for months, the power of amazon, not to anticipate them -- underestimate them.

dave: it is just one more incremental piece for global domination. they are the scariest and most impressive company most of us have ever seen. it is not hyperbole to ask the question, what industry will amazon not take on and possibly take over? they execute better than anybody. they are amazingly good at seeing what they have in making the next right move on top of it. i am extremely impressed by it. emily: what does this mean for competition, companies like instacart, that had a great relationship with whole foods before amazon moved in? olivia: instacart knew this was coming and they planned around it. they have quietly been building up their customer base. instead of focusing on whole foods, they went to every other grocer that would compete. they now have six of the seven

largest grocers. the only one holding out for the moment is walmart. they have been strategic and built solid relationships. i think what we will see play out is this whole foods versus everybody else from a. -- everybody else drama. emily: what do you think we will see in 2018? olivia: it will expand almost all whole foods stores. we will see a lot of pressure on the suppliers for whole foods. right now it costs $25,000 to have dreamy and shelf space in a whole foods. i think we will see that number go way up, this is according to reporting from the wall street journal. some said it would be up to $300,000 at a prime, i level spot in a whole foods. that will put pressure on the suppliers. or --ill have to defect

dave: you can always risky doing too much. they seem to have no bounds on their ambition. that is the part i would maybe worry about. but their execution capabilities are so extraordinary, if there is any company that could do this wide range of things, it is them. it is hard to fault of these people, except for profit, they don't make much profit. emily: they don't seem to care. david kirkpatrick, sticking with me. olivia zaleski who covers food tech, thanks. the industry average for women, companies receiving vc funding is 2%. we will speak with canaan istners, whose portfolio full of women-led companies. this is bloomberg. ♪

emily: facebook is expanding its operations in dublin. they plan to lease an office campus in the irish capital about the size of eight football fields. it is currently occupied by allied irish banks, and other areas are under consideration. space wasmount of bought, including by companies like alphabet, microsoft and facebook. canaan partners was funded in 1987 and remains one of the most diversified funds that invest in tech. fund hasre friend -- 40% investment team female. 47% is immigrant or first-generation american. what stands out the most, 20% of

their portfolio was founded by a woman. nationalares to the average. i spoke down with maha ibrahim and nina kjellson from canaan partners about how they might describe gender issues in venture capital. >> in the last few years there has been a race for people to hire women, for firms to hire women. they have done it at senior roles and german -- and junior roles. over the next couple years, what will be the true test is, how many of those women stay. how our industry retains those women, helps them be successful, integrates them into the fabric. we are at a good time right now. i am optimistic for the future. i take responsibility and i know that many others take

responsibility in making sure those women are given every opportunity to succeed. is uniqueaan partners in that it is three female investing partners and 40% of the company is women. how do other firms get there? i got to think a lot about this when i decided to join the firm. i did a lot of research about what is canaan doing right and what is the recipe. it has to do with the culture and governance and how the firm is run, as opposed to a delivered quota or setting out to hire women. i think diversity begets diversity. fairly early on there was a woman at the head of the table or at least at the table, and increasingly ahead of the table. it became so much more inviting for the next woman to join. it is a virtuous, positive cycle.

all without a fixation. we just feel it takes a diverse group to achieve that. you were the first woman investing partner at canaan, and now you have a seat at the head of the table. maha: yes. emily: what was it like being the first woman to join an all-male farm? -- firm? maha: i was too young to realize the impact. i wanted to prove myself and understand the industry. diversity does the get diversity. -- beget diversity. i was fortunate to be with a firm that made it a non-issue. i wanted to hire people who had diverse backgrounds because i am a first-generation immigrant, a female. i have hired a lot of people who

are first-generation immigrants and/or female. emily: talk to me about how the portfolio at canaan looks different. >> in terms of numbers, we are not there yet. 25% of our companies are female-founded or run, which is better than the 7% or 8% statistic for the industry at a whole. the pattern matching of a female entrepreneur are executive is no longer sizing her up, issue like my sister, my mother, my wife, my daughter, but is she like the other entrepreneurs in our portfolio? it is so normative there is a diverse group around the table, to tryingas opposed to find the token example or reference point. emily: are you seeing change? >> we have never had pressure to have those activities take hold. tryingre venture firms

to establish norms, public , for whichsettings the conversation with of entrepreneur does not have to veer into the sexual realm or the ultra-personal realm. they are doing it via pledges and diversity training. we are still not there. we need to be there. some firms are locking into firm , that they have training and harassment policies internally so it is minimizing the chance it happens. emily: i want to talk about your exciting portfolios. nina, you are focused on the biotech space. there is a lot of exciting stuff happening there. what are the trends you are most excited about going forward this year? is a lot, it has

been a sustained bull market for biotech. one of the things we are excited there has been, so much translational finance coming from academia into small companies. the funding of the risk appetite support that. emily: your portfolio is unique. it is very broad. where are you focused right now? maha: i am focused more on the consumer side. on the consumer side and enterprise, for the last several years, we have not seen that tsunami change we saw with consumer and mobile that brought in companies like uber and airbnb. on the same side on enterprise, we have seen the infiltration of open source the press price

points considerably. change have not seen the -- i think both sides of the house are experiencing headwinds. where i am focusing are certain pockets within consumer and enterprise. i just invested in a yet to be announced he sports company -- e-sports company. at canaan we are looking at these two areas and looking beyond them. tsunamis ofng for change. like space, robotics, quantum computing. once we have historically had a deep background in but are coming back with the advent of artificial intelligence. emily: that was maha ibrahim and nina kjellson of canaan partners .

i interviewed them from my new book, out this week. hister ceo jack dorsey saw platform posting strong results. this is bloomberg. ♪

>> it is 12:30 here in hong kong. the u.s. government is heading for a temporary shutdown as republicans had objections. hoursdown may last only as house leaders advise members to be ready to vote between 3:00 and 6:00 a.m. eastern. bill dudley said the current market moves are small potatoes so far, no indications for the wider economic outlook. he said he is sticking with the fed's outlook for rate hikes. >> it is premature whether it three or four.o,

this seems like a very reasonable projection. philippines posted a record trade deficit in december. exports fell but imports of capital goods surged. a shortfall of $400 billion was since 1980. the peso had its biggest drop. global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. go check on how the markets have been trading in the asia-pacific today with the julie sally in singapore. >> not very well. we are seeing this stock route continue after the s&p 500 entered correction territory. you can see major weakness from china and hong kong. down.i 400 is

the hong kong hang seng up 1.3%. virtually no market is escaping this selloff. i want to show you how we are seeing the regional index as a whole fare. is thep of about 6.7% biggest we have seen in the regional index going back to september 2011. we have seen the regional index up to .5%. not far off those levels. we have seen hsb fall 14%. the overalled, regional index having that sharp drop. let's look at stocks. tencent falling below $400 in hong kong. it has recovered a little bit of that, now down by 3.3%. nissan under pressure.

nissan rising after demand for a dungeon and fire game. this is bloomberg. ♪ emily: this is "bloomberg technology." i am emily chang. twitter has legitimately good financial news for the first time in a year. does this mean the social media giant is still ripe for a takeover? rumors have been aplenty. infamous tweet's had people talking a twitter takeover was imminent. we would like to answer that question. alex barinka is with us. still with us, david kirkpatrick. alex, where do we stand?

who are the suitors and what is the likelihood of something happening? alex: you are right, twitter is the perennial name brought up in terms of targets out here on the west coast. this earnings report today potentially increases that probability for a few reasons. if you ask folks on bloomberg intelligence, they say that the parchment -- the departure of the coo and the fact jack dorsey is managing two companies boosts the potential of them becoming a target. talking to other sources on the you might wantid to buy a ship that is going down, but not a ship that is going down and on fire. that is something that might have eased concerns with results today. if you look at twitter's results today, they did turn a profit for the first time. it is not necessarily because

the top line looks pretty. they have been deliberately cutting expenses. their expense base has gone down by a significant amount. saying,re coming in and what could this asset do for me, you don't want to take on something that is burning cash. if they are getting the bottom line in order, cutting expenses they do not need to be spending, simplifying and improving that margin, that could bring them up into the consciousness of these names you mentioned. take: david, what is your on this in the context of the latest results? david: alex is very intelligent in her analysis. when biga time companies with cash towards overseas were taking them home. it is not -- it makes sense. twitter seems to be making a lot of smart moves. it is still a really tough business.

it is not a big, high profit growth business. but it is central to the dialogue. this thing, dorsey expanded the length of the tweet, seems to have gone well. emily: i have been enjoying it. nervy move to do it. i could see a number of companies that would potentially want to do it. emily: alex, there has been product evolution, as david has meant -- been mentioning. as you listen to the potential suitors and chatter, has anything seemed more or less likely? alex: i will point out one change not from twitter but facebook. has been pushing more friends and family content into the newsfeed has up to the value of twitter for advertisers.

if advertisers want a platform where their content will be seen, if they will get that more at twitter, twitter could gain more share. the dollar changes have increased the value of twitter in the eyes of holders. in terms of the eyes of an acquirer, they have to think about whether you are an enterprise company. is this consumer data or advertising data relevant are you? one pick up i will point out is the fact twitter shares are up more than 60% in the past six months. on today's results, an enterprise value of upwards of seven times the estimate for revenue this next year. are a lot of very rich companies out there. whether they think twitter at this valuation is swallowable, is questionable. there has been exuberance over

this surprise profit they posted. whether that comes down is something anyone considering taking over this company will be watching. emily: an interesting point, facebook is focusing more on friends and family. twitter which has such an important niche in real-time news, has an advantage. david: may be twitter is where you get mass-market advertising like you used to on tv, or maybe you still do. i think they will do deep financial -- it is more like a trophy asset. at a time when so many are so wealthy, might really want to own some settler -- subtler reasons. it is an extremely prestigious platform in a a lot of weird ways. after all, the president loves it.

there are reasons people might want to own it for that reason alone. president reason that lets the, twitter is still fighting an online harassment problem. my sources have told me it has prevented potential buyers from moving forward because they are concerned about online harassment and the trolling problem. are you hearing that is a concern from potential buyers? alex: it is a quagmire potential buyers did not want to stride into. uncertainty isd, the one big wrench that can be thrown into any m&a process. there is political blowback. d.c. get louder in the course against these tech companies and how they have been playing in the day-to-day consumer's life, if you are one of the names bloomberg intelligence has thrown out -- microsoft or comcast or google

-- that is something you are considering. especially as you are working on a deal to get through trump's boj. it is something that will want to see play out if someone is going to throw their name out there as a potential buyer. it seems like what your sources are saying is pretty spot on. barinka, keeping her ear to the ground for us. a breakingp operates network on twitter called tictoc. a new payment feature in india will allow people to send money to other whatsapp users. but it will not let them save -- send payments to merchants. it has not been publicly announced because it is not widely available. from sexual harassment and discrimination, the tech industry has been a sore spot

for decades. how do we change it? this is bloomberg. ♪

waymo the uber versus trial. a computer forensics expert delivered some of the most troublesome evidence yet. they were hired to that anthony levandowski and found levandowski had google source codes, and self driving software. it will be up to the jury to decide if those trade secrets

went into uber after levandowski was hired. guests been talking to and sharing themes from my new book. we have been talking about everything from hiring practices to workplace culture that has been shaped either leaders at the top of the companies in technology and how to bring about real change in the workplace for women. david kirkpatrick is here. he has read the book and i am so excited to talk about it and hear what you think. silicon been covering valley for decades. david: it is so good. your timing could not be better. you knew it was coming. i know when you started writing it and it was a while ago. you are releasing it into the aic k -- into the thick of national obsession. emily: i did not know it would

be a breaking news story. i started writing it two years ago, before the me too movement. but i certainly benefited from that momentum. people would talk about sexism, but not on camera. the problem is getting people to tell their stories. nobody understands how and why we got here. the more i started digging, the more i realized people did not know. and older, reader, white man, to summarize, it is shocking. the number of stories you are telling and statistics you reveal about how bad it is. it, 807% more women drop out of tech jobs than other kind of jobs? it is almost a ludicrous percentage. emily: and they are not leaving work, they are working in other fields. they love their jobs.

they actually say they love their work. they also say the environment is hostile. i think a lot of people blame the attrition you see in technology to women leaving to have kids. but that is not the case, they want to keep working. david: i did not realize and although years i spent in tech that none of these companies have childcare on-site. apple just opened a brand-new $500 billion campus with all of these amenities, gyms, and yoga halls, and they don't have childcare? kind of thinghat became pretty common a long time ago in other industries. emily: it is fascinating. i realize childcare can become located, but they have shuttles for hundreds of thousands of employees. they have amazing perks from free food to incredible health benefits. gym clothes you can wash at the

office. i thought, why not childcare? and acompanies offer it silicon valley has not shied away from heart problems. it is a thought-provoking thing to put it out there. what is possible? david: it is obviously an issue. a woman problem and no childcare on-site, no wonder. these things are directly connected and you connect to those dots. based on the early reaction to your book, do you think things like that will be remedied? emily: i really want this to start a meaningful conversation and make people think. i was talking to the woman that ran hr at netflix. she thought about the issue. she said childcare is hard. and then she read the book and said, we should do that. we can do that.

i am hoping for that reaction from more people. sheryl sandberg was on the show talking about a mentorship initiative she is launching in response to the me too movement. i write about her in the book. when she got the facebook she asked about content, violence toward women. these were questions no one was asking. onebook has a better handle the online harassment and trolling problem than twitter. the cofounder of twitter told me if more women had been on the team early on, online harassment and trolling maybe would not have been as big of a problem. women are victims of the more extreme forms of harassment. david: one of the great narratives of tech, some out it has gone off the rails and did not anticipate its own implications for society, whether it is addiction or political manipulation.

do you think if there had been more diversity, especially women, that might have made it a little easier for those companies to anticipate these very toxic effects we are not criticizing? emily: absolutely. people from a wide variety of backgrounds, you need that. i asked sheryl sandberg this question, take a listen. valleyhy think silicon would be a better place if there were more women running more companies? absolutely. i think every industry would be a better place if there were more women running more companies and more women in government. emily: and i agree. david: quite impressive, you got her to talk to you about that. she is an exemplary, rarity, to have that level of power and influence. i have to say, what an amazing job. horrifyinge a little

i did not realize how bad it was. all my women friends say, you are just a typical idiot guide. -- guy. emily: you are not alone. david: thank you for writing it. it is a major piece of journalism. i am sure it will do great. emily: thank you for reading it and to your support from me. as an author yourself it is a long process. you need many people cheering for you. david kirkpatrick, great to have you here on the show. multiple networks are beginning child of five g services. how this will be unveiled at the winter olympics. -- trial, i should say. this is bloomberg. ♪

emily: qualcomm says a new

generation of high internet services coming quicker than most expect. they are beginning trials of the fifth generation or five g services here. .any will start it commercially qualcomm said providers will use of new modem, a chip capable getting data multiple times the speed available currently. sticking with 5g, kt network is leading the chase. they are unveiling the service at the winter olympics. they talk about their bet on 5g. this have rolled out 5g time by unveiling their services. we have successfully completed anything -- everything and it is a huge achievement to showcase 5g at pyeongchang.

emily: joining us, stephen engle, who was in south korea, pyeongchang. talk to us about the importance of 5g. >> it is pretty important. especially for south korea, where the incumbent telecom operators are suffering revenue problems. a pretty disappointing fourth-quarter because the government also has mandated they lower some of the rates to the poor people in south korea. they are looking to get these higher spending customers into higher-paying services like ai and augmented reality and virtual reality. it is pretty important to get this rolled out as quickly as possible, as they have been under pressure. emily: when is the plan to launch 5g commercially?

in the last story you had in the united states, south korea is planning, both kt, and fk, the largest telecom operator, the big rival, they plan to roll it out next year. here at the pyeongchang, kt will have a trial of their very fast 5g services. it will not be throughout the olympic village is but a specific area where people can come in and try their various ai and augmented reality displays and participation zones. they will still have the rollout coming in 2019 as well as fk. emily: how will the majority of the audience watch this game? live, streaming, watch tv?

ioc doles out those contracts for broadcasters and darius countries. they all have the exclusive rights. i believe it is nbc, not necessarily bloomberg television. they will be watching it that way. for 5g, it will be key whether we can watch all these games in virtual reality, will be this latency issue. talked something kt extensively about. right now it is down to 10 milliseconds. eventually it will get to one millisecond, so we can watch the games in full, augmented reality, and also virtual reality. emily: stephen engle, stay warm. south korea,ang, thank you for joining us. that does it for "bloomberg technology."

that is all for now. this is bloomberg. ♪

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