he spoke at a meeting with state and local lawmakers inside the roosevelt room. >> you have movies come out that are so violent, with the killing and every thing is, maybe that is another thing we will have to discuss arian -- discussed. fda -- : the theident drop asked the doj band rapid fire devices like those used in last year's massacre in las vegas. a ban to start a legal battle with gunmakers. paul manafort and rick gates were indicted for a second time. new charges include failing to them -- to report income the tax authorities and bank fraud. pressureput additional on them to cooperate. the late billy graham will be brought to the u.s. capitol where he will line honor in the

rotunda on march 1. global news 24 hours a day, powered by more than 2700 journalists and analysts in over 120 countries. this is bloomberg. ♪ emily: i am emily chang and this is bloomberg technology. earnings season continues. we will break down the results at hp enterprise at hb inc. another spacex rocket blasts into outer space. how it brings elon musk's vision a faster internet one step closer to reality. we lay out the game plan and the upgrades on tap for apple's next-generation air pod.

hewlett-packard enterprise and hb inc. reported earnings after the bell. -- inc. beat estimates. what is think are driving these results? crawford: we have to unpack them. for a long time, hp talked about being better together. this order, they were better up right. you have two companies that have a stronger ability to be noble, a stronger ability to be desta resize their infrastructure, particularly in the case of hpe. this companyf hpi, is performing on all cylinders. they are in a market that is flat for pcs, that is normally flat for printing. they are gaining share. they are putting up numbers like 15% growth year over year for

total pcs come up putting up 14 percent for total printing, 48% for commercial printing. remember, that includes the samsung business that they acquired. stellar performance and huge operational efficiency on the part of hpi. emily: let's talk about that. are you expecting the strong computer and printer demand to continue through this year? crawford: i think what you are seeing is that infrastructure in general is continuing to get refreshed. in the case of hpi, the product is strong. the product has been getting stronger and stronger for quite some time. in the case of pcs, they are focusing on profit pools are margin rich, whether that is detachable to in one -- two-

in-one or gaming. they have done a great job in meeting the needs of that important, most amending consumer and commercial buyer and getting them to pay up a premium for increment the features. these things can be relatively small, like integrated privacy screens, integrative skype calling, and high-quality build. i think hewlett-packard can continue to gain share. expecte pc market, we that to be nominally a flat market going forward. emily: meg whitman is no longer the ceo of hpe. she has gone on to her next endeavor. the new ceo talking about the macro environment, saying he thinks he sees market improvement. but what is your outlook for hpe without meg whitman? to talk: i had a just without tony before he hopped on the call. he is really thrilled with the performance that they covenant had in the quarter. i think the hpe he will see

without meg whitman will run a similar playbook. they're looking for acquisition to the that are additive profit pools and participate in and are in growing segments, that fit within hp's channel and drug sales force. -- frombe's -- a pe's from revenue comes resellers. antonio is very clear about this. they have enabled hpe next, which took $1.5 billion out of the company for this year, of which they invested $700 million back. huge cost-cutting while growing the top line. that is pretty impressive, not something that any covenant will want to go through going forward. but they set themselves up with a smaller overhead structure to now participate in larger areas of the enterprise market, like the intelligent edge with aruba,

like hpc with silicon graphics. they are seeing the benefit of companies repatriating cash, operating in a lower tax environment. if her structure spent ramp up cap you will see that at companies like hp you sought -- hpe. you sought at cisco. the company has to upgrade there for structure. not everything has moved to the cloud. emily: tax reform already a big topic on these conference calls. how do you think tax reform will impact both of these committees? -- companies? crawford: they are both telegraphing lower tax rates. in both cases, somewhere in the mid teens range, down from the low 20's historically. they are not mentioning absolute dollar amount, but you look at hpe. they are talking about returning $7 billion to shareholders. that will come to some degree,

probably to a very large degree, from offshore cash that they bring back. talking about,re in the case of hpi, beyond the executives participating in their executive plan. in a speed, they are talking about increasing the 401(k) match and having employees participate in different bonus pools associated with them bringing this money back. they are general, trying to acknowledge it is a favorable government from a tax standpoint. barman from and tax standpoint. for the first time in a long time, hpe has the ability to execute and the products to take advantage. again, a place they have not been in the past few years with divestments and whatnot. emily: the cloud is rapidly expanding, but still hotly contested. to well-positioned is hpe compete in the cloud or hybrid

club future that meg whitman talked about? clearrd: hpe was very that, in this tier one data center business, they don't view it as a very high calorie business. there wasn't a very significant margin pool to them. and they are committed to that business. that part of their server business is an area where you will not see hpe assigning a lot of service to amazon or google based on the strategy now. they are participating in the cloud in a number of ways. they are selling hybrid i.t., selling gear to enterprises that will have a mix of on premise and cloud-based offerings. they are offering to a number of staff providers they use that geared to post their own cloud. this is back to that 70% of their revenue the goes to resellers. there are many thousands of

service providers around the world that hewlett-packard enterprise will provide two and they will host amazon and microsoft. there are multiple ways for hpe to participate, but not in the tier one suppliers. quite friendly, they could not make any money doing it. emily: thank you so much. we will keep listening to these calls. in the trading session. investors dropped the stock after the maker of angry birds missed estimates. one analyst calls it a huge disappointment. coming up, elon musk just launched his fourth rocket this year, this time filled with three satellites. why the tech giant wants in on broadband next. and if you like bloomberg news, listen on the radio, the bloomberg radio app, at bloomberg.com.

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>> the trump administration wants to cut the red tape for entrepreneurs. the meeting on florida to revamp rules. among the recommendations being considered, a civil license for all space launches and re-entries, regardless of the location and type of vehicle being flown. the goal is to streamline and approve a process that has been resized as overly cumbersome in an arrow when a new cast of space players are developing ambitious plans for newenterprises. some of the high profile players include spacex, virgin galactic

msci nevada, and blue origin. trump revived the space council last june and directed vice president mike pence to lead it. this week, the council also announced a 29-person users advisory group to foster greater cooperation and coordination among government and private space players. you can find me on twitter and follow tic toc on twitter as well for all your news. ♪ rocket carrying three satellites rooted to space today from the cal fire coast. they carried an imaging satellite and -- from the california coast. it carried an imaging satellite and two smaller satellites.

space angels is the leading source of capital for space startups. we talked a couple of weeks ago with the last launch. these are becoming routine, but they are really important when it comes to moving forward space technology. what is significant about this particular launch? right.'s exactly this particular launch is exciting for a few reasons. of the testied two satellites for the new mega consolation. it will have 4000 plus satellites. for delivering communications. this is important for a few reasons. it will connect the other 3 billion molecule mentioned. it will give people options to their current cable providers. most separately, spacex is still going to mars. this will be a key piece in their financial architecture that will get them there. emily: talking about this effort --bring internet access fast

fast internet access is something entrepreneurs have not shied away from, like mark zuckerberg and google. how is what elon musk is doing different? >> satellite provide an alternative, a way to deliver servicesedic asian -- communications services that go beyond the uab-based and balloon-based that we have seen recently. typically, these communications satellites are in geostationary orbit. these 4000 satellites will be much closer to the earth, which gives you a smaller distance that the signal needs to carry. fast rod be incredibly band connection to the farthest reaches of the plaza -- the planet come along with a communications center like 5g.

emily: there are new learnings and progress when it comes to rocket reusability. what did we see here today? >> this is very cool to see. spacex just continues to push boundaries and keep us all interested. even in the shuttle and apollo years, we saw viewership start off.ll that's because people want to see what is coming next, what progress we are making and what are we doing next. spacex continues to push the envelope. today, the payload, the satellites, came back to earth and they tried to catch them with a giant net on a boat. while they missed, they came in close. it seems like they've got a good plan to catch it . emily: you are also at the national space council meeting. i know they talked about space entrepreneurship and there is a move towards future space travel as a commercial rather than a government endeavor.

what kind of progress are you seeing? >> that is exactly right. it was good to be in the room yesterday, to hear the conversation. it is really good to hear the emphasis on streamlining regulation and licensing. they have moved a lot of space operations and space oversight into the department of commerce, which is another key signal that the future of spaces commercial. the overarching focus in that meeting was really about space entrepreneurship and how the government and continue to partner with them and a customer of services rather than a benefactor or funding the development of new systems. emily: what is the mood given the messaging coming from president trump about turning space into the next free-market paradise? workinge certainly towards that the last two years. so it's good to hear the

government getting on board with that message. i think the data is starting to back up the story here in a major way. we have reached the tipping point where the government has started to sit up and pay attention. emily: we talked about this in the past, but as space becomes more commercial, what are the safety concerns, the regulatory concerns that you expect to see pop up? >> there is a great one with the spacex loss today. they've got three key challenges. one is the fcc licenses for spectrum. it is a scarce resource and how you sent radio frequencies. thishen how you bring unprecedented amount of data back down to earth. and then also, how do you navigate the ever increasingly crowded highways in space? ofce is very big, but a lot

the key orbits are in demand. how do you monitor all of these things? they provide a lot of opportunities for startups. we are seeing startups addressing each one of these concerns with laser communication to bypass the radio frequency spectrum, new ground stations that allow you to steer them electronically. you can do them for much smaller and much less upfront costs. and in debris tracking, we see this ins come in and do a way we have not seen before and at a cost but we have not seen before, being able to track to centimeter out objects and give -- two w osan a meter objects -- two centimeter objects. emily: thank you for breaking it down for us and talking about what is important. robin hood's 4 million users bitcoin andtrading

is here today commission free. the california-based firm is offering the service in california, massachusetts, new hampshire. coming up, apple's stake -- its air podolster headphones next. this is bloomberg. ♪

emily: apple is seeking to bolster and its wearable products.

joining us now mark gurman who brought us the scoop. what will the new features be? mark: so exciting, air pod's, people are liking them. they are becoming a secret smash hit for apple. two versions, one with deeper syria tradition -- siri integration. i think i just heard yours go off. [laughter] emily: it is going off. that functionality will be there. there will be a water resistant model coming about a year after in 2019. emily: has the issue of charging these headphones become a problem for users? question. is a good i notice the battery life is not exactly the five hours that you get. so people will have to recharge the case on a flight. i amn day-to-day use, if

in the office and i just want to listen to music for 30 minutes at a time, i can see -- take if you calls -- i can see it lasting the whole week. emily: what makes him such a hit? mark: i think it is the charging case on the wireless capabilities and the convenience. it is really small. i always have minor markup -- actually, i don't have money in my pocket right now, so i take that back here in -- back. it doesn't really have the need to put wires in and out of your phone in your ears. emily: there was a time when the wait was weeks. how are they doing on supply? mark: that is another under told story. reachk them a while to a demand-supply balance. these days, you can pretty much walk into any apple store and best buy and buy one.

emily: they are not cheap, but they are not the highest ticket item in apple store. how much money do they actually make on the air pods? mark: it is a key component in their new products division, the home pod, the apple tv, the stylus, a few other accessories. that division also has wearables with it. told us on thee earnings call that that part of the division grew 70% year over year. therly, the air pods with apple watch. launch laterhone this year, how will the air pods integrate with the new phone? mark: it's in line with the story that they like to update. the air pods is becoming part of that update cycle. thank you as always for

that scoop. coming up, we explore the investment strategy between citigroup's capital arm. that's next. bloomberg technology is lisha me live streamings on twitter. this is bloomberg. ♪ ♪

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experience nbcuniversal's coverage of the olympic winter games like never before with xfinity. proud partner of team usa. alisa: you are watching bloomberg technology. here is your check of first word news. trump has offered full support of the nra as the organization began an offensive against --

praise the chief executives, calling them american patriots. in the meantime, nra executive vice president wayne lopp year says gun-control supporters are using the mass shooting to promote an anti-gun agenda. he spoke today in maryland at the annual conservative clinical action conference he also -- political action conference. he also echoed the presence suggestion of expanding the security presence at u.s. schools. may's conservative government is divided between supporters who want a clean break with the eu and those seeking closer ties. a bipartisan delegation of u.s. senators is in the middle east where tensions have increased since the u.s. recognized jerusalem as israel's capital.

at the yuan and in the arab world, many believe the declaration means the u.s. has forfeited its position as a peacemaker. global news 24 hours a day, powered by more than 2700 journalists and analysts in over 120 countries. this is bloomberg. ♪ it is just after 5:30 p.m. here in washington. it is already 6:30 friday morning in hong kong. now a look at the markets. sophie, good morning. happy friday to you. happy friday. emerging equities fell the most in two weeks. don't put the blame on china. watch to see if the post holiday cheer will continue this friday. the big highlight is japanese inflation. slowedey gaines probably underscoring, -- but the core

gains probably slowed. while yourrose stocks were mixed. one of australia's largest many managers is waging the price will slide this year. oil trading near a two-year high. next, more with bloomberg technology. ♪ ♪ this is bloomberg technology. i am emily chang. regroup is an official powerhouse with the fourth-largest bank in the u.s.

can it compete with silicon valley vc stalwarts? thank you so much for stopping by. chat is the purpose of citi's v arm? >> thank you so much for having me. we think it is important that we are constantly focused on bringing the outside in. how do we make sure we stay involved in cutting-edge development? so much of that is present where entrepreneurs are present. not just working with them, but helping them to scale their companies. we work with entrepreneurs who might eventually want to be citi.rs with we also work with entrepreneurs who are thinking about expanding globals and using citi's

footprint to understand new markets. it runs the gamut, but all and at how do we bring in that outside thinking, outside diverse perspective back into the bank. city ventures has e-commerce investments, data analytics. how would you describe the portfolio? is it shifting? >> we have been at this for a while. the portfolio strategy at citi ventures is infrastructure type beds -- type ventures. data butearning and commerce the syntax payments. we have seen an explosion of at the last several years. what is great about working in ours we can really leverage

206-year-old history of the company and help entrepreneurs build their businesses. having been in the valley for decades, this is about what can you bring to the start up that helps them scale, the helps them reach new markets, reach new consumers. , distribution is a problem. i think there is a place for all kinds of investors in the ecosystem. grow, but also navigate a large organization. it is not easy to know who to go to, who makes the decisions or frankly even went to go. think of it almost like someone getting up a mountain. it is not enough to say, you get to the top, talk to selena. someone has to tell you what trout, what time of year, and who to talk to. we help entrepreneurs meet their success. uniqueciti is in a

position and a lot of them are targeting traditional banks, whether that is payments are lending. how are you looking at the threat that these companies pose? >> at citi ventures, we don't think of it as a threat. change really posing a in retail banking and banking overall is changes in technology, which is affecting every industry, and changes in customer expectation. it opens opportunities for new players to come in and see if they can do something better for thereent players to say is an execution of a customer that i did not know about before. or how do i do a better job to meet that? what you've seen over the last several years is not just syntax and banks coming in coming together to meet the expectations of our client's. emily: we have heard from the heads -- of our clients. we have heard from the

heads of banks that bitcoin is volatile. 's position on bitcoin and blockchain as a future technology? >> we have been experimenting for over five years now. it is a very new technology and experimenting as the rest of what a thing. it is easy to say experiment with blockchain. it turns out you've got it best got to build a lot of internal capability, which we have done not only through citi ventures and innovation lab, but also with jane.com, helping institutions find uses for technology. we don't think that blockchain has once it will use. it is more about exploring multiple ways it might help us deliver better for our clients. selena: you mentioned the partnership with chain. i think people see blockchain as

a panacea for all banks' problems. >> you have to think of it as a tool. one thing that is important, whenever you are working with watching, it is fundamentally a network-distributed technology. it is not something you can go off to your own conference room and expanded with. clients.ng with our we believe we can go off -- we do not believe we can go off and create products on our own. we have to be working with our clients, co-creating, and bring those to market. no doubt, in the coming years and decades, we will all find that there are publicly multiple uses of new technology like watching to meet clients' needs. at citi infervently

the power of october and ownership. now all onto burners happen to live -- not all entrepreneurs happen to live in silicon valley. we also believe our employees have great ideas on how to survive clients and passionate about how they can do that. but they need a way to bring those ideas to life. this is an embedded program focused on creating the opportunity for people to bring forward ideas and to think differently about how those ideas might come to life. aspect ise critical we can't do this without first validating what our clients need. we need to talk about this as avoiding the canon that killed the flea. got an idea. clients want this.

go away creating a big powerpoint and convince my boss's boss to invest a lot of money in it. at the end, you build this before cannon and you specified and shined it. when you are ready to unveil and cut the ribbon, someone says i think the flea might have moved. aboutu can't do anything it because you have already invested all of this. we completely turned it on its side. we focus first on what our clients need. how do we make sure that it is a real paying point? therefore, we are able to learn what they need to kill off a lot of projects that don't meet those needs and bring something to market that will make a difference. whole session. when you think about capital markets to retail banking, so many different things that are clients need. one example is we launched in the fossil the call proximity. this is a product that came to being at city from two people years.ked at citi for 20

if you are a shareholder, it is a pain when you get the proxy statement and you have to vote. you want to vote. you want your voice to be heard. that it is confusing and there's not much time to do it. imagine for an institutional investor who holds hundreds or maybe thousands of positions. a can be a real black box in terms of whether your vote is being [indiscernible] proximity is real-time transparency into a critical piece of governance, increasingly important not only for corporate's, but also for investors might not be activists but who are very interested in what is the agenda at the corporation that they are shareholders in. it is that kind of thing, launching some like proximity, that helps our clients do something that is difficult to navigate. it's been very excited to see an act. emily: i want to talk about diversity technology and one of

the interesting things i have learned is wall street is fairly close to 50/50. women are better represented than silicon valley. women are doing at citi ventures. >> we take diversity extremely seriously. we are quite a diverse group. we have male and female investors of different ethnicities. focus on the next generation. cupid, a program called matching university students with innovation projects happening at citi. it is 53% women. are a third of those people not mbas. some are public policy background or design backgrounds. we think of diversity in gender and deficit, but also perspective. who is at the table?

for the everyday conversation, where it matters whose voice is there and who is shaping the conversation. emily: thank you so much for joining us. >> thank you. emily: coming upemily:, airbnb's big announcement that could lead to a more mainstream approach. how it plans to take its online competition to the next level. this is bloomberg. ♪

emily: the federal communications commission says it will officially published in eraorder rolling back obama rules.trality the move is likely to open a floodgate of legal challenges from parties appoint -- opposing

the changes. already 22 states and the district of columbia have joined the legal battle. main --s looking to go my mainstream came it will now add aght hotels and loyalty program. it is looking to become a full set -- full travel service firm. more on how the company stacks up to the competition. start with the announcement today and why the company is taking the more mainstream approach. olivia: a big announcement about making airbnb more for everyone, making airbnb like a travel rooms andfering hotel boutique hotels and amenities that are more hotel like. the company is doing that because they want to launch an

ipo in the next two years and really be a formidable opponent, competitor to these larger corporations. emily: what do you make of this move? is it the right move? kevin: it is important to point out that the online vacation rental industry is booming. we estimate there are $40 billion in bookings last year between the major payers. it will now go to $80 billion by 2020. airbnb is doing very well in that category. the event today was absolutely the right thing to do. it was all about taking rentals to the next level and driving them to be more mainstream, to improve the overall booking experience for their customers and to really just get to the next level of penetration being already a large company with 20 billion bookings last year. emily: what does it mean for hotels? is this not great for hotels? is it new business for hotels? olivia: one thing to keep in mind is they are not opening

themselves to every hotel. they made it clear that they don't feel that large hotel chains, the marriott's of the world, the hiltons of the world, are welcome on their site. they are going to smaller hotels, boutique hotels, mom-and-pop ones come in somewhere between. this looks very promising for hotels because they are charging such a low commission, about 3% to 5%. hotels, great for the compared to expedia or booking.com, which takes on average about 17%. emily: what do you think it means for the major hotel chains that this will not include, like helton, like marriott, many of whom, if you try to pick a room, it is not a seamless process. the user experience is not that great. kevin: olivia made a really good point here in differentiating what kind of hotel airbnb has added to the platform. we think they made it clear they

are positioning themselves against the big hotel chains and really try to attract boutique hotels. we were looking at their commission rates a low differently. 13%,re all intake rate of that is airbnb. it is still cheaper than the online travel agents offering. that will be attractive. they are going after the boutique hotels. they don't appear to be interested in the hotel chain business. emily: going forward, how does this impact airbnb's future roadmap? there's been a lot of personnel changes at the company. is this airbnb starting fresh? olivia: i wouldn't say this is airbnb starting fresh. this has been in the works for years now. the company did go through executive changes recently. the cfo stepped down. we mark -- we might start to see

a lot of follow from that. the company has been under scrutiny from some investors who are questioning -- who were pushing the company to go public. this is a company that is like a rocket ship taking off. hold on. they are seeing a lot of growth. users really seem to like them. they come back. they have 4.5 million listings on their site already. so hotels would just add to that. emily: all right. thank you both. snap sinks. wiped a million dollars off the company's value with a single tweets next. -- tweet next. this is bloomberg. ♪

snap ceo is one of the highest-paid executives in the united's dates in 2017. 2017.ted states in snap can't seem to keep up with the kardashian's. kylie jenner may have added to the companies was with a single tweet. -- the company's woes with a single tweet. is that stock dropped entirely because of kylie jenner? selena: it is not. the stock is already on shaky ground. willy little bit of news create a significant drop yet it happened last month when i wrote

an article about twitter adding a photo program. has 25 million followers on twitter. she is hugely popular on snapchat. so her saying i'm over snapchat, the fear for investors is that it will trickle down to her millennial followers who will also think that snapchat is no longer cool. emily: but they had their strongest quarter ever. selena: there was a huge investor reaction to that positive earnings growth. positive earnings because it was incurred we want citations. investors have slowly lower the bar further for the for this company. it is still not profitable. we have seen slow revenue growth good but its face it is still growing at a steady rate. emily: what are we know about growth among younger reducers -- younger users and popularity?

instagram is really a problem. is a gram rolled out their stories problem, there was a significant drop in the usage of snapchat. there's anecdotal stories about millennials switching entirely instagramsnapchat to because it is offering a lot of the same services. a big concern for investors is snapchat's redesign. 'sit is complicated to use. the attempt to make it easier has caused intense backlash from core user base. there is the fear that this will not rejuvenate user growth. ceos, he decided to reward himself a very large stock of grand. it's about $636 million. it will be rewarded over the course of several years. it was a one-time thing. again, it is not great for

employee morale when the ceo of muchcompany is making this money and your company still unprofitable. emily: that does it for this edition of bloomberg technology. that's all for now. this is bloomberg. ♪

yvonne: it is 7 a.m. in hong kong, welcome to daybreak asia. markets are set to edge higher after wall street ended at highs as the dollar slumped. have aominent players different number in mind. foty: is it three or is it ur? 6:00 p.m. on thursday, and more pressure on the president's