emily: i'm emily chang in san francisco and this is "bloomberg technology." the next hour, a busy day on capitol hill. president trump's former lawyer, michael cohen, accuses him of criminal conduct in a hotly contested house hearing. separate hearing, robert lighthizer says the administration is pushing for a deal with china that includes significant structural changes in beijing's economic model. president trump and kim jong-un

is on schedule -- are on schedule to begin their second and final day of their summit. we're live in hanoi. withxclusive conversation the alibaba co-founder, joe tsai and why he is optimistic about the u.s. china trade deal. to the top story, all eyes in washington on president trump's former personal attorney and fixer, michael cohen, testifying before congress. contentions continue after six hours. we saw plenty of heated exchanges as cohead laid out -- testimoniesut including a bombshell on national committee emails. >> a lot of people asked me about whether trump about the release of the hacked documents, democratic national committee email ahead of time. the answer is yes. emily: plenty to discuss.

i want to get to new york where our bloomberg executive editor is standing by. first of all, the revelation trump knew about this email hack. , rogerrding to cohen stone called the office and trump's assistant put them on the speakerphone. roger stone said he had talked to julian assange and this dump was coming. has said he never talked to robert stone. once again, we are caught in a bit of what could be the truth here. often thent out is truth that there is a go-between . roger stone is operating under a gag order by a judge right now. we're not hearing from him this afternoon, that it's one of several things coming out of the testimony. emily: let's talk about the

other tantalizing things. what are the new and most significant revelations otherwise? >> i think, for prosecutors, there is nothing revelatory here , but for the public, it's astounding to see a sitting president attacked and treated like this in congress. unusual. not since bill clinton's impeachment hearings have we seen something like this. the attacks on his personality and character are stunning. in terms of the legal issues, michael cohen cannot speak for prosecutors, but he can give us a glimpse of some of the threads of open inquiries so we can see potential here. that is all it is at the moment. there are several, one involves the trump organization itself. , others werecohen involved in questionable activities along with trump. cohen says trump was the one who

dictated the terms of the --ments of stormy day meal stormy daniels and repaying cohen for it. says the long-term financial officer of the trump aside andon took him said we would make it looks like a retainer agreements. that would be some kind of a books and records issue for this corporation. talked aboutohen how trump may have been slated -- inflated values for church and purposes of values and undercounted them for under purposes -- other purposes. did he misrepresent the value of assets? when trying to obtain a bank loans or, for example, when trying to get insurance premiums lower? those things give us a tantalizing tidbit of what prosecutors could be looking at. is busy inpresident hanoi so it's unclear how much

of this testimony he was able to watch. hedid retweet and all tweet wrote saying michael cohen was one of the the many lawyers that represented me and he was disbarred by the states up in court for lying and fraud. he's lying to reduce his prison was and cohen -- and cohen interrogated thing he did in congress and is going for jail for it, but that said, what are the changeable, might arise that out of his testimony, as it pertains to possible collusion and possible obstruction of justice? >> on the collusion front, there was not much new. asked aboutn was that and he said there was not that she was not aware of any efforts. he suggested trump knew about this information coming from wikileaks and it did not go to the point where he was directing

or involved in it. the other example is the trump tower meeting involving his son and the russian lawyer. in that case, cohead and -- cohen speaks to what he thinks is true but not what he knows. -- trump says don jr. would have consulted him on this. i think, to the core issue about collusion, i don't think we got a lot to new today, except a little more detail and color and a few more questions about whether someone was involved with communicating with wikileaks. emily: all right, winnie o'kelly, i know you will follow this. thank you so much for that update. michael cohen was not the only person speaking to u.s. congress on wednesday. robert lighthizer testified before the house means committee

on the continuing trade talks with china. he majored to highlight the importance of technology in these efforts. take a listen. they knowsuggest that full well it is the key, technology will determine who rules the future. mcgregor joins us now from washington. did lighthizer dampen the optimism around a deal with his testimony? sarah: absolutely. it's no surprise that lighthizer is a bit of a trade talk. he's wanted-- trade hawk. he has wanted to go tougher on china, but his tone was more cautious than trumps when he delayed this -- trump's when he delayed this march 1 deadline. lighthizer said there is a lot of work that needs to be done for a deal, and if it is ever done, there will be monitoring of it. a lot more work to ensure china is implementing its promises,

including these tough issues like intellectual property theft. there will be constant vigilance to make sure what china says will do that it lives up to. emily: does not contradict what trump talked about earlier? please talking about progress, delaying the tariff deadline, does it suggest a mismatch between what the president wants and what is happening? sarah: it injects realism into what is going on behind the scenes. sides madethe substantial progress, but a deal of this magnitude, as you mentioned earlier with such high consequences, there is worry about dominance of the future and technological innovation. these issues,le even if they have a few more ,eeks tacked onto the deadline it is not a lot of time to deal with these issues. emily: what is next? what is the timeline? sarah: we not heard of the next

round of talks. the last one wrapped up here on sunday on washington -- in washington. trump is in the an another very important meeting, which china is involved in as a big economic player in the region. trump is meeting with the north korean leader and they are pretty focused on that right now. we expect talks to pick up when trump gets back. about atalk from trump signing summit with the chinese president, but as lighthizer reminded us, there's a lot more to deal with before they sign a deal. lighthizer said this will not be a soybean solution, this won't be a matter of china agreeing to buy more energy products. they want to do deals that deal with ip tech transfers, the whole gambit. emily: and we will continue to fromw how whatever outcome the summit with kim jong-un impacts these talks, given the role china plays there.

sarah mcgregor, thank you so much for stopping by. coming up, the ftc is putting big tech on notice. what is new task force could mean for tech deals past, present, and future. that is next. if you like bloomberg news, check us out on the radio. listen on the bloomberg app, bloomberg.com, and, in the u.s., sirius xm. this is bloomberg. ♪

big tech could be at the greater scrutiny from federal regulators. the federal trade commission is creating a task force to investigate antitrust contact by tech companies. the group will consist of senior officials and 17 lawyers. they will be looking at past tech mergers that could have hurt consumers. what does this mean for tech companies like google and facebook? we're joined by a fellow at the open markets institute. also with us is our antitrust reporter, david. i can think of a few previous

tech mergers. what is this task force going to do? david: they will look at any competitive conduct by tech companies. as you mentioned, one of the interesting things the ftc announced yesterday was this idea that they could go back and look at consummated deals, deals they investigated or did not investigate at all. they have the possibility that they could go back now and potentially breakup companies or require a spinoff. if that came to be, that's would as a move byical the agency. there's a lot of criticism that some tech deals like facebook, whatsapp, and instagram, even a lot of google deals, should not have been approved at the time. it turned out to get those companies a dominant position there in their market.

emily: let's get the view from one of the critics. matt, you called this task force a joke. why? commission that is creating a task force to encourage cooperation among its bureaus. great job guys, do something. seven,k, since 2006 or they have bought many companies. the ftc has not challenged a single one. there were deceptive statements by mark zuckerberg when he said they would effectively not change the privacy terms for whatsapp users. has been investigating the cambridge analytica scandal for almost a year. street investors ever asked mark zuckerberg about the ftc investigation, but they are happy to ask questions about european regulators, so this is

a crisis of legitimacy. rather than doing anything, they come out with a new seating chart. i did ask the record, sheryl sandberg about the investigation and didn't get much of an answer. we report the ftc is preparing a record fine. david, what are the chances the sec takes action here and unwinds one of these previous and already completed acquisitions? david: based on the agency's check record and not just the ftc, but the doj, that's would be radical. , which they both share antitrust jurisdiction in the united states, are facing a lot of criticism from people people where enforcement has not been aggressive enough.

allowing tech companies to buy potential rivals and potential companies that are competitors. whereever covered a case an agency has gone back to undo a deal that has already been consummated. someannouncement has drawn cautious optimism from some quarters, but also some criticism that this is the kind of work they should be doing -- should have been doing all along , and there are questions about i they need a task force to do something they should have been doing in the first lace. emily: on that note -- first place. emily: on that note, is this the agency doing something rather than nothing as you argue they have to? -- argue they have been? matt: really, no. it really doesn't matter. they need to police american

markets as their mandates suggest they should. it does not matter who sits where in the building. emily: i want to ask you about your organization's connections to george soros. there has been controversy about that and he has been a huge critic of facebook, even to the extent that sheryl sandberg had to see if he had anything to gain financially or otherwise from these criticisms. does he have anything to gain? matt: george soros? emily: yeah. matt: i have no idea. we are a think tank. we take no money from for profit corporations. we get foundation funding. i think we had a grant from the open society institute. i don't think it was a big grant, but we have done work on

monopoly for years. i don't know what george soros' interests are. i've read his speeches. he is concerned about totalitarianism in china and elsewhere. i hope that answers your question. emily: it helps to address some of the concern. before we go, for the record, what are some of the big tech acquisitions you think should not have happened? what are some deals you think should have never been approved? matt: i think there are two waste to understand this. first of all, google has eight products with more than a billion users. most of them are acquisition. that is google, applied semantics, and you can go down achievedthe way they

market dominance in one sector and monopolize all of the plumbing in the end market. then he is to be broken about and can be with a rule written by the ftc. for facebook, you have whatsapp, instagram, and probably a whole bunch of other companies. they bought one for microsoft to match into data targeting. what this is about is ensuring our ad markets are fair and open. right now, what these tech monopolists are doing is unfairly redirecting advertising from publishers of content to themselves and manipulating the free flow of information online. it is the ftc's job to make sure that does not happen. they have to do it. emily: we will be tracking how this progresses. both.nd david, thank you

bloomberg tech's livestreaming on twitter. be listen on the bloomberg app, bloomberg.com, and, in the u.s., sirius xm. -- be sure to follow our global -- be sure to follow our global news network, @tictoc, on twitter. this is bloomberg. ♪ oomberg. ♪

emily: a dutch payments firm continues to defy expectations with another earnings beat that sent shares soaring back to almost triple the listing price eight months ago. bloomberg broke down the results. >> your ipo lester continues to defy expectations with another earnings feet. adyen -- higher take rates was also a positive surprise. given the assumption higher

volumes would usually, discounts. even as the initial enthusiasm moderated as the day when on, the stock trades at almost triple the listing price eight months ago. adyen is in the middle of taking ebay transactions after their deal expires in 2020 with paypal. citedvendor gross increased geographic reach that supports point-of-sale business. a push to increase brick-and-mortar presence with self-service kiosks could boost earnings. despite the lofty valuation models highlighted by skeptics. emily: square give a profit forecast for the quarter wednesday that missed estimates.

this as the pain is company spends more on your services, including its fast-growing peer-to-peer cash transfer app. the company beat estimates for quarter -- first quarter. joining us to discuss his david ridder. once thispped crossed, what is behind that? david: expectations are always high coming into the corridor for square, given their track record of growth. there was a slight deceleration and revenue growth, where you have seen acceleration throughout 2018. when they reported earnings last quarter, they guided for better than 40% revenue growth this year and came in a little bit higher than that, not tremendously higher. i think that is a source of little disappointment, but i would say, when i see deceleration, we are talking about a company growing over 50% from last year. said, how is square

performing compared to its competition? >> they are doing tremendously well. i had a chance to attend jpmorgan's analyst day yesterday and jamie dimon called out square as a company that beats them to the markets. jpmorgan chases a big portion of their markets. the reason they have been winners is not because of the original device that plugs into an iphone, but the fact they started there but have since devolved into a full merchant services company. their lending to merchants and providing payroll services, helping with scheduling. if you are a restaurant, you can have help with your menus. they are very effective in layering on various services, in they are still early on selling those add-on services to the existing merchants and they are capturing larger and larger numbers as well. emily: david ritter, thank you

for the update. coming up, the world is watching the summit between president trump and kim jong-un. we will go live to hanoi. this is bloomberg. ♪ so with xfinity mobile

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to bloomberge back technology. president trump and kim jong-un struck an optimistic note at the start of the second summit in eight months as the u.s. seeks to advance nuclear talks that have largely stalled since the first meeting. what are some of the most significant developments of the day that we need to know about? >> the significant developments that a lot of analysts are looking forward to our some of the specifics to be drilled down

in comparison to what donald trump and kim jong-un agreed on back in june 2018 in singapore. a lot of people saying the joint statement was quite ambiguous and they need more details, more credible commitments coming from kim jong-un and from donald trump, saying what he would be willing to do to reciprocate for those measures. emily: what to expect from day two?- day , accordingfternoon to the white house schedule, they are expected to sign a joint statement. this very joint statement was korea'sther by north nuclear envoy -- know what we know so far, he is a nuclear disarmament expert. we might think that could be may be thethat it

wording included in a joint statement. will have to wait and see the details, what the drill down would be. emily: how might any outcome from these talks impact diplomatic and economic relations between the united states and china, given that china is a big diplomatic player in what is happening here? >> that's a good question. it is definitely an overarching thing when it comes to u.s. relations with north korea. kim jong-un symbolically visiting president xi. in a way is playing a power move 40 cannot do anything without the blessing of president xi. the u.s. could be using north korea is a car to negotiate with

china in terms of a trade war and the trade talks as well. emily: live from beijing, thanks for that update. coverage of these meetings tween the president and kim jong-un throughout the day. we'll talk with veterans of foreign policy around this landmark summit. panetta, kathleen stevens and christopher hill, and former yuan secretary general ban ki-moon. president trump's top trade negotiator is dialing back expectations for a sweeping trade deal with china, but the alibaba cofounder and executive cochair is optimistic that a deal will happen. him fort up with exclusive interview. take a listen. >> there are a lot of issues in this trade deal, but i think the

important thing is that the tariff is going to stop. i think that will help a lot of businesses on both sides of the ocean, the chinese manufacturers will get a reprieve and it will help them continue to export. so it's going to be good for businesses that are operating on the alibaba platform. emily: what if that doesn't happen? joe: the dialogue between the u.s. and china is going to be a continuous dialogue. trade is not the only issue. there are issues on intellectual , soerty, industrial policy i expect that will be a continuous conversation. iscourse the tariff itself really sort of an enforcement mechanism, but if you look at

alibaba's business, our business is driven the by domestic consumption and also corporate digitization. even though some parts of our business are tied to exports, most of the business within alibaba is driven by domestic consumption, with 300 million consumers, middle-class consumers that are buying things , they are going to demand more products. over time, even if there's no time, thed now, over trade deficit between china and the united states will correct itself is china will import more wheree we have an economy domestic consumption has become a bigger part of the economy. so the chinese government is talking about over the next 15 years, importing $30 trillion of goods, and $10 trillion of services. ,hat is a very important thing

as american service companies, canealth care and banking move to china and set up a foothold and serve the chinese population. emily: what does it all mean for alibaba, whether or not a deal happens? joe: we operate for the long-term. we are hopeful that a deal will happen. obviously the markets have responded to that, but if you look at our core businesses, most of it is tied to domestic consumption, as i said. so even if it doesn't happen, we will continue to chug along and focus on our strategy. our strategy in new retail, for example, is focused on digitizing the domestic retail sector, making retail more efficient, and that is all driven by domestic consumption. emily: how optimistic are you,

based on what you have seen, that a deal will be reached? a halfve always said i'm -- glass half-full kind of guy. we are cautiously optimistic, based on the developments. obviously the delegations from the countries that met several times, and president trump has said there is going to be a meeting between him and president xi and a place in time to be determined, i believe. i think these are positive developments, and the signaling is pretty good right now. emily: we are here at the sports innovation summit at the stanford graduate school of business, and you are the owner or co-owner of three sports teams. what attracted you to make these investments? joe: first of all, i love sports. i played sports through high school, college, and i just

think the values of what you learn on the field can carry you very far in life. so i encourage all kits, including my own kids, to play sport. also a business opportunity. how much revenue are these teams driving? joe: if you look at an indie 18, it's a very good proposition from a business standpoint. substantial,e well-managed company and the structure of the nba is set up there's very good balance between the owners and players and also among the owners. i was attracted because of the international profile opportunities. we know could markets like china, with 300 million fans, the potential increase in the meteorite in those margins, not just china but also india. you're looking at mexico,

indonesia, the philippines. those opportunities will be tremendous in the future. emily: the nba just announced a branded leak in africa. why not in china? know, you'll have to ask about the geographic location, but i think the africa league is going to help the nba to develop players in africa. obviously they decided there is also going to be a local fan base in africa. there's a lot of developmental aspects to that league. i think it is very exciting. i think having leaks in other parts of the world is a little bit more challenging because in europe and asia they already have local leagues that have been formed, playing games and all that. so i think that is one of the reasons why nba pick africa. emily: there's a mixed record

for sports diplomacy dating back to the 1970's and the wrong games ending up with president nixon visiting beijing. do you think sports could help improve tensions between the u.s. and china? joe: i think absolutely. because when you see athletes competing on the field, and then when they get off the field or the court, they become friends. these are real authentic stories thaten people, and i think the people to people exchange, this true friendship that is genuine and authentic, is going to help the two countries understand each other better. emily: some of my conversation there with the alibaba --tsai.r joe sai how is film business scored big

with oscar-winner green book. this is bloomberg. ♪

emily: best buy is an exception in a gloomy earnings season. they posted holiday sales better than expected. sales were driven by a, video games, smart watches, and smart phone devices. we returned to our exclusive .onversation with joe tsai

history bye author taking home an academy award. .libaba produced green book now the company is looking at more hollywood movies as it expects more goods and services, including entertainment, to be imported into china. here is more of my chat with joe tsai. joe: you have to look at this particular case terms of what it represents in terms of what we want to do in investing in movies. we want to invest in quality production and the process of us committing to this project and green lighting this project is very interesting. one of our team members saw the movie and she really pushed this internally. decided toittee that commit our capital to help make

the movie was convinced that this was going to be a quality production. got involved because we see the opportunity to bring high-quality content into china. so we went through a process of getting the project screened theugh the quota system, so movie is now going to premiere in china on march 1. tickets will be sold on our internet platform and we expect a very good result. emily: do you know if any of the trade talks involve getting better access to the chinese u.s. studios, getting better ticket revenue, for example? not aware if that is a specific conversation within the trade negotiations, but i think the overall trend is that china will be more open for imports, not just in goods, but also services, including content.

we are hopeful of -- hopeful that over time, that will happen. $10 trillion of services over the next 10 years, that will be very exciting. emily: chinese officials encouraging chinese companies to invest in u.s. entertainment? currently all the decision-making we make on investing overseas is driven by our company management. particularnk in this case it makes a lot of sense for us to make that investment. maly: six months until jack steps down as chair. how does the company change once that happens? joe: the whole thing about a transition is that the company doesn't change. jack has done a very smart thing by announcing it one year ahead of time, to give people ample adjust to the new system

, and the great thing is, we have a great ceo in place. he has been the ceo of the company for over three years. he would take over as executive chairman of the company and he has been with the company i think for 12 years now. has homegrown developed within our system. we are very proud that we have been a vote to take our younger executives and develop them into leaders. fewy: alibaba has bought a foreign platforms. what is next in e-commerce and more broadly? joe: from an e-commerce standpoint, accessing local market consumers, we like southeast asia and south asia. these are the markets we want to focus on. so the platform, operating in

six countries, will be the focus over the near to medium term. we will have to wait and see what we do. undertaking tog do something to serve consumers outside of china, for any company. i think for us, we are going to take it one step at a time. that was joe tsai. ibm has apologized for using racially insensitive labels in an online job application. choose -- forced classificationen still ask for in brazil and south africa. , mike cagney is back

with a new venture after allegations of sexual harassment. he is not the only man from the me too movement back at work. we will discuss, next. this is bloomberg. ♪

emily: 21st century box was ordered to pay millions to bones whothe tv drama claim they were cheated out of profits. they claim that's the word includes 129 million dollars in punitive damages to deter become it from future conduct. fox filed a request to either correct or vacate the award.

2017, my cat he was ousted from so five amid allegations of sexual harassment. now back with a new startup and new funding. of the year announced a funding round wednesday led by rpm ventures. loansvides home equity online in as little as five days. here is thaty cagney got a second chance pretty quickly. what did he have to say about the allegations against him? >> he's just one of dozens of executives in silicon valley that had to step down on their positions as result of allegations of mistreatment at the company. i pressed him on what he has learned from his previous experience. i did a lot of reporting over

the past couple of years about those allegations and he said he is very remorseful about what happened. the problem is he let it grow too fast without determining what the culture was at the outset. there were allegations of sex was conduct, nepotism and hiring as well as basically not promoting women as fast as they should. company spent a lot of time figuring out what the culture should be at the beginning. i looked at an internal document, 55 percent of the executive team are women, four of the five cofounders are women. so he has clearly taken steps to improve the numbers. however, the company only has about 100 people, so the question is whether he can maintain that culture as the company grows. great timerly it a for women. this is a guy who was accused of creating a frat house culture

that was especially toxic for women. was the board investigation into a relationship that he had with an employee. he lied to the board about it heegedly, but saying admitted he did have consensual relationships with female employees. >> he's saying it won't happen again. it's interesting if you look at the advisors and board members, he has some high profile figures. emily: what are investors and it pfizer's telling about why they are backing him? sofi.proved himself at emily: he built a business, but he got ousted from that business. ,> people are taking up at weighing it against the ability which wasmpany, valued at $365 million in the past round, or than doubled the

last round. whether it can become the behemoth that sofi has become, and become a unicorn in the space. investors are giving him the benefit of the doubt that he can rebuild the business that he did at sofi. it is following a similar playbook, so investors are betting he can re-create that success without the culture problems. emily: what does the competitive landscape look like? obviously there are be traditional banks that offer this but it's time-consuming and paperwork intensive. some of the big banks recognize how slow it is so they are partnering with startups and working to provide online through their apps. fastof them are quite as as figure is, but obviously they are expecting a lot of

competition in the market. been doinghas sofi since he left? there was a lot of work to do to get the culture on track. has been a huge culture overhaul at the company. that took a lot of time. that firm is working on and having some trouble expanding beyond that core business of student loan refinancing. they want to reach every touch point of a lineal's unanswered life. that means insurance, wealth management, cash management. the numbers have not prevent whether they have been successfully able to penetrate all those other markets, but they are working on it. emily: selina wang, thank you so much for that report. that does it for this edition of bloomberg technology. follow our global breaking news network tictoc on twitter. this is bloomberg. ♪

>> good morning, i'm shery ahn in hanoi. haidi: australian markets have just opened for trade. sophie: i'm sophie kamaruddin in hong kong. welcome to "daybreak: europe." haidi: our top stories this thursday, markets with a muted is dialingington back expectations for sweeping trade deal. jay powell says it's