♪ emily: i'm emily chang in san francisco, and this is "bloomberg technology." coming up in the next hour, intel earnings missed. weaker than expected results. cautious going forward. plus, our exclusive conversation with the chan of the chan and zuckerberg initiative. why they are backing a new housing fund in san francisco. the government has long field huawie as a trojan horse for information.

now the president is stepping up action. first, shares of intel plungin after they posted a fourth-quarter revenue missed. stocks fell by as much as 7% after the revenue and earnings both the short of analyst estimates. to make matters worse, intel' revenues forecast for the fourth quarter is below estimates as well. to discuss, we have bloomberg opinions in new york and with me in the studio, nico grant. optimistic about the results. what went wrong? >> this has not been a good day for intel, which really ended this year, which has been quite a boom from a financial standpoint, on a sour note. basically, the expectation was the company data center business would slow down but analysts did not expect it would slow down by this much. supplieslly intel processors for data centers and companies like amazon, microsoft, and alphabet have been using for the last half

decade plus in the case of amazon more than a decade in order to build a massive data centers around the world for cloud computing. those companies now have stockpiled those resources. the intel ceo tells bloomberg. so they are not going to build at the same rate going forward because they have the infrastructure. emily: one of the issues is they don't have a ceo. they have been interim ceo. they are looking for a ceo. we will get to that, but let's talk about the existential crisis that intel finds itself in right now. groundbreaking new technology. the 10 nanometer chip technology has been delayed as the company is trying to expand into new businesses where competitors have a strong foothold. >> yes. this was obviously a company that could use a ceo. it is really at a crossroads. they have had some production hiccups. intel is no longer the world leader in making the sort of fastest, most efficient chips in the world.

yes, that is quite a blow for a company like intel that really invented the semi conductor industry.at the same time , they have these macro conditions, issues in china with that they sent deteriorated in the last few months. that is one reason why intel's forecast for the first quarter and all of 2019 is a lot weaker than investors expected. all issues that the new boss, whenever he or she lands, is going to have to deal with. emily: so the boss for the meantime is the interim ceo, bob swan, who is also the cfo. nico, what progress reported we get on the call about the ceo search from him? nico: the call is happening right now.we will see what he says . but our intel reporter says the board continues to search for a ceo. we also reported recently that the intel board has decided against some of the candidates who were traditional candidates

that they may have considered. others declined to be considered for the role. pointst we have at this is they may choose someone "unconventional," which means a person may come from outside of the company, which is unusual. emily: we got a great chart of the people no longer in the running. what is interesting about the ceo search, there are no real front runners that we know of. why? shira: well, i will say ceo searches are a messy process. somebody who is a front runner one second may not be the next. but it is also true that the last few years at intel, some of the obvious internal candidates who might be appropriate for the ceo, people like diane bryant, like rené james, they left the company in part because of leadership changes. the former ceo had made. that left the bench a little thin.

intel is in this unusual position for a company that is always groomed successors from inside the company and is proud of doing so. there is not an obvious intel executive to promote. talk to us about the broader challenges whoever the next ceo is will face. nico: there is the one we mentioned already, which is basically that pmsc, a taiwanese competitor, a company like intel, which is so procedures, may have looked down on once upon a time can do 10 nanometer chips and makes rivals also in the computer space very competitive against intel. we also have a situation where there have been shortages from intel's end, and that has been compromising the computer industry. desktops and laptops have been growing at a slower rate in part because of less demand and in part because they are not getting those chips from intel.

intel has been prioritizing the higher capacity ones, more expensive machines rather than cheaper ones. so it seems like it was a great year financially when you look at a third quarter and you saw tony 6% growth -- 26% growth for the data center business. it was incredibly lucrative. now with the slowdown, it is evident bob swan or someone has to sort this out. emily: there are broader macroeconomic issues going on. a trade were, a smartphone slowdown, an iphone sales slowdown. intel was not the first to mobile chips. the broader chip industry is riding on the health of this overall ecosystem. with is that mean for intel? shira: the chip industry in general is one of the most globally interconnected industries in the world. and so it is really a big blow for companies like intel and others.

they are not in a unique position to have this kind of trade were going on between the u.s. and china. it kind of hurts them on both sides. both the china customers may be feeling the pain from slowdowns and economic growth in that country and intel has to do with how to figure out the supply chain and tariffs that are applied on the u.s. end. so, yes, it is a really difficult condition for this company.at the same time , we are -- there are economic slowdowns in the markets of the world, china, europe, and that hurts them, too. this is an industry that is exposed to economic growth and the vagaries of the global economy. emily: all right. nico thank you so much for that update. into bloomberg friday morning for the interview with bob swan.meantime, the president has been speaking with at the white house.

coming up, facebook is shutting down its private photo sharing app. we will have more on that story coming up later in the show. this is bloomberg. ♪

emily: facebook shutting down the private photo sharing cap moments -- app next month. it failed to gain popularity. in 2015irst introduced as a way for people to share photos without posting directly on facebook.users will have until

may to download or transfer their photos before they disappear entirely. openx maintains one of the world's largest digital assets with 34,000 advertisers. the company announced a new partnership with google thursday that will make it a cloud-based service. the $110 million five-year deal will move the entire exchange into the google cloud platform, essentially removing the need for openx's own servers. we have the ceo with us from new york. tim, google is a competitor of yours because they have their own at marketplace. so why go to the google cloud versus microsoft or aws? tim: hi, emily. thanks for having me. just quickly to levels that, we run one of the largest ad fixed changes which means we process over a trillion transactions a day.so the volume we are working with this huge . as we started to think about all of the new innovation we want to bring to the market over the next couple years, that is going

to require even more computing power. we need that computing power to be extremely efficient. we started to map out a path to move to the public cloud, which is tcp or amazon. on aally wanted to focus system that would give us an incredible amount of scale and enable us to innovate at a rate that would really make a difference in the industry and not to have to continue to work on a lot of the maintenance of our infrastructure that we have to use our own servers. a onn example of how important s is his moving to 5g. when consumers start to move to 5g on their phones that have a very rapid experience, the advertising experience needs to be incredibly compelling. we want to make sure we can run our infrastructure there. emily: ok, but why google? tim: with regard to google, that is why we wanted to move to the public cloud. with google, you have one of the largest, really the largest, advertising infrastructure in the world.they do a lot of the

foundational work we can build on top of. the other thing to bear in mind about google's they are multidimensional company. emily: all right. i'm going to have to let you go. we are getting tape from president trump who has been speaking at the white house. pres. trump: one of the ideas suggested they open it, they pay a sort of prorated down payment for the wall, which i think people will agree that you need. you need the wall. i see a lot of the democrats, almost all of them are breaking, saying walls are good. big difference from what you have to or three weeks ago. at the vote, we have the vote on our bill, which we won 50-47. that with our bill. but we got one democrat. it was 50-47. we need as you know 60. we don't have 60 votes. we need democrat support. we did not get democrat support other than a wonderful man, as you know, senator manchin.

he is doing the right thing for his people. he is doing the right thing for west virginia frankly. the other bill was 52-44. and that included a lot of hurricane relief for a lot of different states. some of not something them voted for hurricane relief. you need 60 so that is not go anywhere. we knew they both were not going to go anywhere. and now make is negotiating-- mitch -- and now mitch is negotiating with chuck schumer. they just had a meeting. they are going out to see their people. we had two bills. the republicans held except for two. they were not there. not able to be there. two not both. es, it is two not vot good for us. n, but we need 60

votes because of the 60 vote rule. i just really want to think the republicans for holding. again on the other one, that was opening up as 52-44, but you need 60 votes so it is a long way short. a lot of those votes were based on the fact there was hurricane relief for certain states. [indiscernible] >> without money for the wall? pres. trump: i would not be happy with it but we have a lot of alternatives. everybody, look, for the most part people agree when i say everybody. we have to have border security. we have to have a wall in order to have border security. you cannot have border security without a wall.we can play games and talk about technology, talk about drones flying around. right now, there is an 8000 person caravan formed. in a caravan is heading our way.congratulations . we have another one.we stopped

the first one. we stop the second one. i would not say tijuana is happy. but they are happily living into want to right now. one o-- a lot of them have gone back.if we did not have a wall in areas , it would be hard to stop them. military and quarter have done an incredible job and ice has done an incredible job across the country. we removed thousands of ms 13 and others out of our country. if we had a wall we would not have that problem. it would be great. we have a lot of alternatives. but i'm just honored that almost all of the republicans voted for our bill. our bill is the bill we were focused on. we had almost all of the republicans so the end result was 50-47. the democrats lost one that came over to our side. so they pretty much held and we help. again we were missing two republicans, that could not vote.they were not here . >> >> a movement to end the

shutdown? pres. trump: i have to find out.after this meeting we will find out . right now, mitch mcconnell is meeting with chuck schumer and we will have to see what happens in their meeting tuesday as if they can work out something. maybe on a temporary basis where we start but we have a lot of alternatives,.a lot of people want this to happen . i tell you who wants this to happen, the military wants this to happen because this is a virtual invasion of our country. traffickers, so many different things, criminals. it is an invasion of our country. and the military wants this to happen, and the border patrol wants this to happen. by the republican-controlled senate all of the drones flying in the air having a lot of fun flying drones all over the place. they don't mean anything when they look around and see thousands of people rushing our border. the only thing that works is a strong barrier, a wall. i have not spoken. no. but i'm here.

i have not left except for a beautiful evening in iraq. i have been here for a long time. >> that you see wilbur ross? [indiscernible] >> can you understand? pres. trump: i have not heard the statement but i understand he perhaps should have said it differently. local people know who they are and where they go for groceries and everything else. i think what wilbur was probably trying to say is they will work along.i know banks are working along . folks have mortgages, the collecting the interest and all of those things, they work along. that is what happens in time like this.they know the people .they are familiar with them for years . the grocery store.that is probably what wilbur ross bet. i have not seen his statement. but he has been a great job. >> aren't you worried to leave the -- pres. trump: we are looking at

venezuela.it is a sad situation . that was the richest state in all of that area.that is a big beautiful area and by far the richest. now it is one of the poorest places in the world. that is what socialism gives you.when they want to raise your taxes to 70%. it is interesting. i have been watching our opponents, our future opponents talking about 70%. number one, they cannot do it to 70%. it has to be probably twice that number. maybe more importantly what happens is you have to take a look at what has happened to venezuela. it is a very sad situation. we have our eyes very closely on venezuela. very closely. >> if they can come to associate agreement, do you support it? pres. trump: depends what the agreement is but if they come to a reasonable agreement, i would support it. >> even if it has no more money? pres. trump: i have other alternatives if i have to and i will use the alternatives if i have to.we want to go through

the system .we have to have a wall in this country . we have criminals pouring into our country. i'm not talking about the southern border.they don't stay there .they permeate all around the country , including places like wisconsin. a lot of different places. that is the problem. i say that we would cap our crime. you know we are doing very well in crime rate compared to past years and past administrations. but i think our crime rate would go way down and i know our drug rates, what is happening is the drugs are pouring in. yes, they come through the ports of entry. by the big trucks come through areas where you don't have a wall and you have wide-open spaces.we have to have a wall . you stop drugs.you stop human trafficking . human trafficking where they tie up women and put duct tape on their mouths and put them in the backseat of a car or in a van. they don't come to a port of entry because the people at the port of entry are going to see that.

that is not like hiding drugs in the engine or hubcaps. they have incredible ingenious ideas. some of these people are so genius. if they were a religion, they would become very rich -- legit they would become very rich people, -- if they were everlegit, -- they were ever legitif they would become rich people. they are loaded with drugs or they have women in the backseat of the car's with duct tape all over the place. it is a disgrace. you don't catch them. you don't even know the difference between mexico and the united states. they make a left turn after they go out to a michael cella 40 miles, five miles in some cases. miles, five 40 miles in some cases. you need the wall. we can all play games and talk about technology. i know more about technology than anybody.

if you don't have the wall, technology does not work. first of all, the wall is all based. any technology works with the wall. not going to work otherwise.you need a while . a b technology is put on top of the wall.that is how you see it, the cameras and anything else.they literally put the technology .they fasten it to the wall . then you have drawn technology and that is great. what are you going to do?follow the people ? once they step into the countr, you know what happens.you know what they do . what do they call it? they put one foot in our country. right? we got them. that's it.the drones don't help us . we have to kick them out.we have no choice to have a -- but to have a wall or barrier. if we don't have that, it will not work. it is important to me. >> federal workers missing another paycheck. pres. trump: i love them.i respect them . i appreciate the great job they are doing.

many of those people that are not getting paid are totally in favor of what we are doing. because they know the future of this country is dependent on having a strong border. especially a strong southern border. because we have tremendous violence and crime coming through that order. we have tremendous drugs . we have human trafficking. we have ms 13 and gangs warring through the borders. if we do not strengthen the borders, we will have a big problem in the future. one of the people i blame as myself because the economy is so strong right now, stronger than ever before. now, we have right more people working in the united states than has ever worked in this country before.that is a great complement . i blame myself. the fact is people, because our country is doing so well and they want to bring our borders. the fact is we want them to come up . with to in more people last year legally than we have in a long

time. because we need them because we have a lot of companies coming into our country. we need people coming in. i want people to come in, but they have to come in legally and through merit. they have to be able to help companies.if they don't help companies and if they don't however country, we cannot do that.we just can't do that . deciding to agree to nancy pelosi. pres. trump: it is her choice. i would have done that in a different location but it would be disrespectful to the state of the union. i could have gotten to a big auditorium and gotten 25,000 people. times.e been there many i think that would be very disrespectful to the state of the union. so what she said i thought was actually reasonable. we will have the state of the union when the shutdown is over. >> when is that going to be? pres. trump: that i cannot tell you what we have a lot alternatives but we need border

security. ok. thank you very much everybody. thank you. thank you very much. thank you. thanks, everybody. emily: president trump speaking moments ago at the white house saying he would not be happy with a stopgap measure that lack small funding. he says he would be open to an agreement between the democrats and republicans dependent on what the agreement is if the agreement would not include welcoming, he has other alternatives. our bloomberg reporter joins us now from washington. what are the highlights from what you heard? >> sounds like we are continuing the position of a stalemate that we were in when we first started the shutdown. the president saying he needs a wall. just heard the senate voted twice on two different bills. one republican bill was supported by the president. one democratic bill supported by the democrat leader. both failed. the democratic bill got more than the president's bill showing how far we are from a

solution to the shutdown. the president seemed to spin that and say they got enough votes but they need more democratic support for his proposal and saying he needs the wall. right now, senators are trying to come up with a short-term plan to maybe open the government for a few weeks at a time and then work out a broader deal. but the president is saying he would only sign that if he gets a down payment on the wall, and we don't know how much money that would require. it is showing a sign that democrats and republicans are coming together, trying to figure out a short-term deal. but the president is a wildcard. he is someone who has said he has to have at least something for the wall before he opens up the government. democrats have not been able to or are willing to put that money on the table for the wall. and it does not have your we getting any closer to finding a solution that the president can support. so we are waiting to find out whether or not the president will move from his position of having to have some money for a wall opening of the government. and whether or not we will get to a point where democrats and republicans decide they have to move forward without the president and maybe even put together a veto-proof majority

to bring relief to 800,000 workers who have been working so far without paper more than a month now. emily: right. mitch mcconnell and chuck schumer did meet earlier to talk about this. there was some glimmer of hope there that there would be some progress for the first time in over these long 34 days. that said, when trump says he has other alternatives if he does not like an agreement they make, what are the other alternatives? he already said he will not declare a national emergency. toluse: yes, it is hard to tell. this is something the president and administration have been talking about for more than a month even before the shutdown. they said they were asking various agencies to look through their budgets and find out whether or not they had asked the money they could use to build the wall. nothing has come of that yet. a lot of these agencies are looking through their budgets to stay open because the government shutdown has lasted so long that there is not enough money to not

only not a workers but also to keep the lights on and make sure they are paying for leases and utilities. a lot of these agencies are saying they may have to completely actually shut down if there is no extra funding and if the government is not open in the next few weeks here. it is not clear where the president is looking to finance your money to build the wall that he is talking about. the national emergency idea that he floated a few weeks ago has not really gone anywhere yet. it is not clear he will revisit that. because it could end up getting tight in the courts. we have not really found any information from the administration about how they would have alternatives.and if they did have alternatives , it is not clear why they have not used it several weeks into the shutdown. and if they are going to use an alternative option, they have had plenty of time to come up with one. we have not seen it yet.the president has said he has an alternative , but we have not yet seen anything that would open up the government or that would fund

the wall. right now, we continue to be at a stalemate. emily: nancy pelosi sounded just as resolute this morning when talking about not staging their position. -- changing their position. if they were to move forward without the president, what would that look like? toluse: yes, that would look like a pretty embarrassing situation for the president, who has been very obstinate in saying he has to have this wall or else he will give the government shutdown.this will be a major break with republicans leaving the president. we have not seen it very often. only a couple different occasions on some foreign-policy issues, but it would take you to prove majority basically to y the president and pass a bill to open the government.not clear we are there yet . democrats on board with a bill. we saw six republicans crossover and agree with the democrats to open the government with a clean

bill, but you would need at least a dozen more republicans to cross the aisle and vote with democrats.and he would need the senate majority leader mitch mcconnell , who so far has been supporting the you would need him to break with the president. we seem to be pretty far from that, but we are hearing that a number of senators are fed up with the fact that the government has been shut down so far. that's why you saw six republican senators, even some that support the president very strongly, cross party lines and vote against the president to open up the government without funding for the wall. emily: day 34 with no end in sight. the longest government shutdown in u.s. history. we will keep covering this. coming up, the chan-zuckerberg initiative tackling the bay area's housing crisis.

this is bloomberg. ♪

emily: the philanthropy startup by facebook ceo mark zuckerberg and wife priscilla chan's aims housing crisis in the bay area where an explosion incometh has exacerbated inequality. they are backing a massive fundtment fund and policy to support new housing and fight

homelessness. i sat down with priscilla chan, founder of the chan-zuckerberg initiative, and fred blackwell, ceo of the san francisco foundation, to talk about the project in an exclusive interview. >> i was really intimidated by getting involved in the housing space. i really tried my best not to get involved because the problems feel so vast and beyond what any individual organization can really tackle, but what i realized working as a pediatrician and as an educator is that it is the common denominator for success. when you look at a child who is not getting enough sleep, their asthma is not well controlled, they cannot focus in the classroom, oftentimes, it comes down to a kid not having a safe place to sleep, not having a place to store their medication, not being able to rest at home. i realize that all the issues that we care about, in order to ensure that our children are healthy and successful, really do boil down the housing.

we spent a lot of time working with fred, religious groups, talking to businesses, community organizers to get a sense of what we could actually do together and how we could leverage policy because, like i said, we are small. we can contribute and do our best, but how can we build a partnership that encompasses all the stakeholders involved? emily: some people think a small number of wealthy people shaping policy is kind of a scary thought. it works and you agree with the policy but not so much when you do not. >> we actually have had the opportunity to work closely with groups,th faith-based so this is not something one came up withoup but really a collaborative of folks that have come together with different viewpoints and come together around some consensus about what needs to

get done. emily: how much of affordable housing will this kind of money create and how does that compare ? what the area needs >> between the investment fund and the policy fund, we think we 8000be able to produce units of affordable housing but also stabilize many more households than that. not only are we talking about supporting the production of new housing but we are also talking about the preservation of existing affordable housing, and we have a pretty ambitious program that is about protecting those who are vulnerable to gentrification and displacement here in the bay area. all that together we think will have substantial impact. emily: you also have businesses involved. microsoft just announced a $500 million initiative in seattle. why is it tech executives are putting their money and muscle behind this now? >> i think it is the realization

that this is a problem that s the greaterimpact community. they want to be able to be part of building seattle and that they area into this place that people of all different backgrounds can come and be successful. it's also understanding that looking at opportunities like the partnership where they can be part of being a durable solution, you know, going at it thing.s a challenging the fact that the partnership has spent all this time defining what is possible and what the alls are, i think having different voices and stakeholders involved is attractive or everyone. community leaders want to know that business is involved. business wants to know that there are folks really close to and organizing, advocating for the long term that they can invest in, and it is that collision of brilliance

that is so exciting about this partnership. : amazon has been an interesting case study because we have seen amazon have to leave seattle to look for a second headquarters in part because they are blamed for the housing crisis there. meantime, you have new yorkers not wanting amazon to come to their city. how much is tech exacerbating the crisis? >> it's a great question. one thing that is interesting about our involvement in this is how the participation of the corporate sector and the tech sector more specifically has evolved. when we first started these kinds of conversations, there was a sense that these kinds of issues were somebody else's what is happening is that folks in the corporate sector and tech sector more specifically are starting to see this as a business problem. it is a -- it is creating a situation where it is hard to recruit workers.

a lot of times people are getting job offers in the bay area and they look at zillow or raig's list, "no, thank you." we have reached a point where this is not just a social problem but a business problem as well. while it has taken a while, i think the tech sector is starting to absorb and taken a little bit more not only what the contribution has been to problems but also understanding what their contribution could be and should be to a solution. emily: we used the word crisis. what happens if the things you are calling for do not work? long, to tell you the truth. i will start with the corporate sector and the economy here in the day area. i think we are really on the brink of killing the goose that laid the golden egg. if the trajectory stays the way it is right now, people will start making different decisions around where they are going to

locate their businesses. people will start leaving that they area because things are too expensive in the business costs are too high. you are spending 100% of your time at czn. timeifficult is it at this to run a philanthropy connected to the facebook brand given the issues we've seen? >> we have made tremendous progress figuring out where our niche is in the philanthropic space at czi. compared to the fields we are working on and we are also not working on issues that are brand-new. we are focused on science -- how prevent andand manage all disease? we are focused on making sure students have access to high-quality education. we are focused on justice and opportunity where we are really thinking about unlocking opportunity that is lost in our

criminal justice system, in our immigration system, in housing. these are big problems compared to what we are able to do in a given year. at the same time you are trying to do all the good in this world with the wealth facebook has created, you have people blaming facebook for a lot of things. they want leadership changes. how do you reconcile that? and facebook are different organizations. mark is working diligently on what is happening at facebook and we have the opportunity to make sure we internalize those ansons as well, but we have independent organization with strong leaders that are dedicated to this work in the long term. we are excited about the opportunity to serve the best in class and learn those lessons alongside facebook while building our own organization. emily: at the same time, there is overlap.

chan-zuckerberg san francisco general hospital has your name on it, mark's name on it. you have some saying his name should be taken off in light of the current scandal. how do you respond to that? >> san francisco general hospital is a place where i grew up as a physician, as someone that cares for families and children. i slept in numeral nights they're rushing to the emergency room, to the delivery room, and i've seen firsthand how important that hospital is as a safety net resource to everyone in this community and i could not be more proud and honestly to supportbe able the work that goes on there because i have worked alongside those doctors, nurses, technicians, so i want to see that hospital succeed, and i am willing to do what is necessary to really make sure that that , andnity has what it needs

we are proud to be able to put the machines into the surgery units, to get the imaging units in place because i have seen firsthand how challenging it can be when you don't have the right resources to serve our city's most vulnerable individuals. emily: the data issue is so important. can you reassure people that their data is protected, that their data is not going back to ? cebook >> are organizations are completely separate. there is no sharing of data. we take data incredibly seriously. have in our education work signed on to the gold standard privacynts and family policies. in science, we have committed to open standards and work closely with scientific leadership to make sure that everything we engage with is treated with the highest level of protection, so

that is a core competency that we need to be very serious about and take the responsibility very seriously, so we have teams across the organization thinking about how to be the best stewards of this so that we can bring the promise of technology beyond, you know, getting pizza to this office immediately. you know, the promise of technology should really also be applied to making sure that we are advancing science, that we are allowing students to reach their highest potential, and really move the promise of technology the on the consumer world to a place where we can have real social impact. priscilla chan, founder of the chan-zuckerberg initiative, there with frederick blackwell, ceo of the san francisco foundation. after almost a decade is the best-selling video game, the call of duty series has been bumped from the top spot.

red dead redemption 2 claimed the crown as 2018's bestseller. meantime, nintendo also dominated videogame sales with six switch exclusive games in the top 20. super smash brothers ultimate was the fifth best-selling game of the year after only three weeks on the shelf. google has long fostered a culture of employee inclusion, but new filings suggest the search giant may be limiting protections for those pushing back. we will discuss next. this is bloomberg. ♪

emily: in november, google publicly supported thousands of employees who walked out in protest of workplace policies, but three weeks later, the company privately pushed the u.s. government to roll back protections for these organizers. thesearch giant urged

national labor relations board to undo a precedent that allows workers to use company email addresses to organize as they did for last year's walk out. a google spokesperson said they are not lobbying to changes to any rules. so what is going on here? josh: it depends on the definition of the turn -- the term lobbying, but we learned google has repeatedly been asking the federal government to throw out a president from the obama era that says workers have the right to organize using their employee email system. google wants them to go back to the george w. bush labor standard where companies could using your worker email account to organize and educate about issues at work. emily: who would this impact? we have had activists from google on the show. i recall an employee who has been very vocal about

discrimination at the company. she has helped to organize employees internally. she came on our show to protest and critique her own employer. and those the kind of people we are talking about? >> sure. the national labor relations act protects people's ability to take new action and have the conversations that lead to collective action related to all kinds of workplace issues. the president that google is asking to get rid of makes clear communicating with each other on your company employee email system is among the activities that are protected. the particular labor board case actually involves a worker who was alleging he was punished for dissenting from left-wing politics at google. there is an issue that emerged in that case that could have the outcome of rolling back protections for progressive protesters like the ones that we saw go out by the thousands in

the walkout in november. emily: i want to read google's statement in full. they say google is one of the most up in workplaces in the world, employees have an open forum to and their views and they're not lobbying to changes to any rules. this was a legal defense they included as one of many possible defenses in response to a charge. this case is without merit and we are defending the claims vigorously. what does that mean? josh: prosecutors from the national labor relations board have accused google of suppressing workers' rights through policies google has, through alleged threats, and through a written warning that was given to an employee allegedly in retaliation for comments they made on internal forums. google is saying that they are not lobbying but that they are raising this as a defense against that charge. we have seen in other cases like court thatclaimed in

it would have been legal if they fired someone for being transgender that employees and activists sometimes take what a company says in court as a very serious indication of where the company's heart is. in this case, we've seen google employee activists we have talked to and others outside the company say it is difficult to trust google claiming to embrace progressive protesters in the workplace when they are seeking to change the law in a way that would make it easier to punish them. emily: it is interesting you use the word heart because larry and sergey founded the company and encourage open dialogue, but i wonder if they ever foresaw employees could use those voices to speak out against leadership, walkout. 20,000 employees walking out of the company in protest of sexual harassment and discrimination. josh: this is a fraught moment for google, a company that has prided itself on the internal

debate and openness and communication, but over the past year, it has been struck by phone at an vocal advocacy from workers against the company's position on all hands of issues from department of defense contracts to treatment of subcontracted workers. that poses a real challenge to the company. emily: thank you so much for continuing to bring us these stories. we really appreciate it. thank you so much. speaking at the world economic forum in davos, billionaire george soros warned of the dangers of artificial intelligence in the hands of governments like china and called xi jinping the most dangerous opponent of open society. not the only authoritarian regime in the is undoubtedly where the wealthiest, strongest, and most developed in machine learning and artificial intelligence.

emily: he added that china is developing a centralized base that will use out rhythms to determine if someone poses a threat to the one-party system. meantime, the u.s. government shutdown now in its 34th day, forcing some companies to seek alternative routes to go public. jonathan ferro caught up with nasdaq's ceo at the world economic forum and asked if the shutdown or macroeconomic issues instead of causing companies to hold off going public. >> we look at the beginning of last year in terms of listing applications to list on nasdaq, and we've actually had a 35% increase in the number of the sting applications want you to come to nasdaq at the beginning of this year, which means even despite the really good environment we have, we still have even more companies wanting to tap the public market. i would say in january, the reason you are not seeing ipo's is much more in relation to the government shutdown than it is related to companies sitting on

the sidelines. jonathan: two stand out this uber have youd been speaking to them. >> we talked to all different all are excited and getting themselves ready to go into the public markets. they are very focused on making sure they are ready when the government opens, ready when the market is receptive. jonathan: there is an argument .uilding let's get it done in 2019, the options will not be there in 2020. >> i don't think any of us can predict the future, and i would say companies go public when they are ready and when the market is receptive. honestly, in any given environment, if strong companies -- the fourth corner, we has an interesting and strong companies come to market and do quite well. jonathan: you think i was at the tone for the rest of the other

players in the private market? >> we are hoping to have every single company list on nasdaq. we are ready for them to come our way. jonathan: can you talk about the breakdown of revenue at the moment? it was aboutgo, 30% on volume and 70% on subscription revenue. >> today it is about 25% on recurring revenue. overall in the first three quarters of 2018, all of our businesses grew and our volume businesses grew basically in direct relation. jonathan: you might get a little bit of competition soon. some of the big banks have been a together to create the members exchange. >> it's probably good to put it in context. today, there are four large exchange groups that trade all u.s. equities.

pools are really fielding the other platforms. we compete vigorously every single day. we have a lot of clients signed up to do other things who are also our largest clients, so a co-omvery much petetion type of environment. we are proud of what we do. we feel very ready to compete. ceo adenat was nasdaq to jonathanaking ferro at the world economic forum in co-om davos. that does it for this edition of "bloomberg technology." emily chang in san francisco. this is bloomberg. ♪

a very good morning. in sydney, australia markets have just opened for trade. shery ahn: good evening, from washington, d.c. sophie: welcome to "daybreak: asia." >> our top stories this friday anasian markets look set for next friday session after wall street closed essentially flat. there are concerns the u.s. and china may be further apart on trade than thought.