emily: i'm emily chang in san francisco. this is "bloomberg technology." coming up in the next hour, the ongoing trade dispute is taking a toll on broadcom. they report big sales, misses, and cuts in full-year revenue. alibaba is setting its sights on hong kong. fake out. politicians are speaking out. deep fake videos flood social media.

will congress finally take action? first, shares of broadcom are tumbling after the chip-maker cut its full-year revenue outlook. the outlook will be $22 billion in 2019, missing even the lowest analyst estimates. they also reported revenues that missed projections as the china-u.s. trade war continues. almost half of its revenue was linked to china last year with huawei accounting for 3.5% of sales, is also a major supplier of chips to apple. they said "we currently see a slowdown in the demand environment, which we believe is driven by continued geopolitical uncertainties as well as the effects of export restrictions on one of our largest customers." joining us to discuss this is ian king with me here on set. how much does this have to do with huawei in particular and with china at large? >> part of this global supply

chain, even stuff they are selling that is not going into the china market and staying there, is coming here and going to europe. by the way, we have this giant customer that's not ordering anymore. emily: they had to cut off huawei in particular. what about apple, which faces a looming threat of tariffs? there is potential concerns about demand issues in china, which could be government related, or customers in china boycotting apple. >> there are a whole range of scenarios, and some of them are not particularly pleasant. the macro slowdown, the customer sentiment, the reaction against

u.s. products like the apple iphone. we have already seen apple losing market share in china, basically all of the above could be what is going on here. emily: broadcom is just one of the u.s. companies that has in the past supplied huawei, a big customer not just for broadcom, but also qualcomm. are we expecting to see this through the year with companies that have had ties to huawei historically? >> it is a huge problem and kind of a problem for the same reason that this trade war hurts apple. china is a big growth market for the industry in general. all of the chip suppliers, including broadcom and qualcomm, are selling huge quantities of products to huawei and other chinese companies. so they are definitely kind of the first on the line. it arguably hurts huawei more than it hurts their suppliers, because it will be very hard for huawei to go about its normal

business if it can't get the technology it needs to put things out. emily: so, ian, there's a lot of interesting dynamics happening here. they could make u.s.-bound phones outside of china, offsetting some of these issues. how does this play out for broadcom and other chip-makers also tied up in this? >> i think what we have been dealing with is a certain amount of uncertainty, we don't know which specific products are going to be halted from shipping to china. this today is telling us whatever happens is not going to be good. back to what max said, huawei can get things from europeans, from the koreans, the taiwanese. it can replace a lot of what it needs, but broadcom -- in terms of rf chips and swiss chips, you can't go anywhere else.

emily: the decision on whether to include huawei in its 5g network, how much longer can huawei sort of hang on here as these decisions are made around the world that don't necessarily go in its favor? >> in terms of huawei's customer base, they have access to a really big market. it hurts huawei that it can't do much business in the u.s. right now, or the fact that some of these european companies that have historically purchased its products are now kind of getting cold feet. none of that is going to go away anytime soon. there is this interesting thing happening in europe, that the u.k. and other countries have basically decided that huawei equipment was ok, and they came up with a testing regime in a

secret building where the equipment was vetted. and basically, trump and the framework has thrown this into disarray, considering whether huawei can be bought without creating a security risk. emily: we will have more on this as more chip-makers continue to report results. thank you. president trump said apple ceo tim cook visited the white >this is bloomberg. ♪

emily: airbnb is making attempts to take a greater share of your wallet when you go on vacation. company expanding into adventure tourism offering travelers the chance to search for homes in arizona and track lions on foot in kenya. it expands its initial public offering next year. so, what other kind of adventures can we get through airbnb? >> one thing they are launching along with this is an 80 day trip. supposed to be model after the

jules vern around the world and days 80 most of the tours will be in the ballpark of two to 10 days. pushingirbnb has been new experiences. they have been doing it for the last couple of years. how successful has it been and how is that different from what they have already been doing? >> it is hard to say, because airbnb is private. they say the experiences generally will be profitable by the end of this year. they are doubling down on this. emily: talk to us about how this afternoon, revenue stream, the company plans to go public. >> the initial public offering, they are trying to diversify, looking at restaurants, flights, looking hard at tours, anything from a bike tour to an 80-day trip around the world. emily: what kind of competition

is there? booking.com -- how competitive can they be? >> you see a lot of start-ups, too. there is a german start-up called get your guide, peak travel, you see a lot of companies come into this space, because it is an element of travel that has not been digitized. airbnb and a lot of these other companies see a big opportunity there. emily: something we will continue to follow as we chart airbnb's road to ipo. thank you. bloomberg's eric went to manhattan to speak with larry to -- to speak with ceo jerry

lavine. about why breaking up tech companies is not a big idea and the next big thing. take a listen. >> we are planting a seed, and have been for a while, and we continue to plant seeds in new areas. one i am excited about is the temp labor marketplace. i think there is this notion in the future of one quick hiring. we have a company called blue crew that is making great progress in this. when i look at the future of how temp labor gets into employers, i think something like blue crew, a marketplace that matches laborers and employers -- i think it is a big, big future. right now in the u.s., just where we are, which is light industrial warehouse, that kind of retail, a $300 billion market. globally, much bigger. i think this works in many categories. >> how long does it take to become a material value to you?

>> years. people forget how long each of these things take. people only start paying attention when they are huge and impactful, but they forget how long it took to get to that spot. we are years away from that being a meaningful contributor to blue crew. >> the way you typically get into new markets is by acquiring a small company that fits into sort of a growth opportunity that you have identified, then scaling it. >> sometimes, but by far, our biggest business today is tinder. >> what do you think the next big idea is going to come from? is it something in the company that has not been brought to life, that is an existing idea in this building? >> we had a board meeting yesterday, and we were talking about this. we were talking about the areas

where we can create value over time, where we can grow our existing businesses, where we can grow our kind of proving businesses, what we call tomorrow's businesses. then we have these little tiny businesses today, but massive opportunities, and i think we are investing in all of those things. >> when you're prospecting, you're probably competing with more capital than has ever been mobilized. >> it does feel like that. it has forced us in many ways to go earlier. blue crew as an example, we bought it with $2 or $6 million in revenue, or something like that. we look at the opportunity and said -- that is a reality. there is a segment of the market that used to exist that no

longer exists because there is so much growth capital chasing things, there is -- things go from about to prove themselves to billion-dollar valuations kind of instantly with no stop in between. >> is there something wrong with that? >> i think so, in that getting those kinds of expectations makes it very hard for a business to -- it eliminates options for them in ways that i think will turn out to be challenging over the next year or so. >> do you think this is a permanent feature of capital market? you have had for decades already, venture capital, where you are competing for these big businesses, then there is this new source of capital called growth equity. i guess it existed before, but now you have general atlantic doing it, sovereign wealth funds doing it, fidelity doing it. >> they have all done a very nice job and will continue to do

a very nice job. the reason that exist is because of what happened in the market. if you miss your expectation by 1% in the market, completely irrelevant on a five-year or 10-year investment, your value may change by 25%. that volatility can impact employee sentiment, or market sentiment, and you don't have to deal with that in the private market. >> so you are a publicly traded company with a $20 billion valuation, would you do it? and the able to benefit from all of the things that you just enumerated? >> i don't mind being a public company, one, we have more scale, two, we are diversified. three, we have a share of shareholders, and we are lucky in that regard.

we did not always have that set of shareholders. >> one of the things we talked about was digital regulation and the degree in which large platforms run effectively the internet. the government is turning a microscope on that. antitrust regulators and others. do you think that is a healthy thing? >> absolutely, fantastic, it is the right thing to do. i don't think these companies are fundamentally evil. they are not fundamentally trying to do bad things to the earth or to the country. they simply have a lot of power aggravated in very narrow p hands. and that is a dangerous thing. not because i expect them to act in bad ways, but because things can happen. if all of your data is stored in

one place and that company has a data outage, you got problems with your email, your, your host you'reur, uh, how looking at your kpi's. all of these things could happen in one point of failure. that's hard. probably not smart for us to be set up that way. beingl the tools are congregated in a handful of companies. emily: erik schatzker there with joey levin. coming up, many investors are celebrating -- an end to the crypto winter. could bitcoin crash again? be sure to follow our global breaking news on tictoc on twitter. this is bloomberg. ♪

emily: walmart is jumping on the blockchain bandwagon, partnering with ibs and drugmaker merck to towith ibm and merck develop a blockchain network for the u.s. food and drug administration. the idea, to help the fda protect consumers from contaminated or even harmful drugs. walmart is one of many companies embracing the blockchain trend. both microsoft and salesforce have introduced their own services in the last month. here to discuss this is monica, thank you so much for joining us. how will this fda project work? >> this is part of a larger trend. large corporations finally starting to embrace blockchain. this partnership is interesting, because blockchain allows you to have data that can be tracked to a very finely grained degree, and you know people can go back and change it. back and can't go

change it. that is the nature of what blockchain means, when information is put into a block, it is immutable and you can't go back and change it. this idea is that you can track when drugs have been created at the source and then each way along the path through the supply chain. you know that when you go into a store and you pick up your prescription, that you can trust that it's been verified all along the chain. emily: there's a lot of experimentation, the second blockchain project, target pushing into the space, what do you see as more of sort of mainstream potential use cases here? >> we are really in an era of fight for opportunity, because -- no one has decided who the winner is in terms of blockchain technology. the private and limitation of of ethereum,tion these are all potential technologies that could help industries and companies realize the particular applications like that only supply chain, but the company remedy that we have been working with to let patients

track their own health care data. emily: what other trends are you watching? we are talking about big retailers here, what else is next? >> everybody is buzzing and talking about the facebook going -- the facebook coin right now. this is a big mover and shaker in the space in terms of development, facebook coming out and saying they are interested in creating their own cryptocurrency. their cryptocurrency, we think, is going to be a stable coin, which is going to be pegged to some sort of u.s. dollar or a mix of other fiat currencies. we are still waiting for the true information to come up, but what they are calling it, whether it is going to be global coin, this just represents another company that is already institutional and has real value, demonstrating they think

blockchain is a way for them to move forward in the future. emily: do you think other big tech companies, amazon, apple, google, will jump in on the blockchain craze? >> apple has already come out and said they will support cryptocurrency in their next version of ios, so i do think that we are going to start seeing lots of big companies jumping into the blockchain trend, we are working with a large insurance company, a $3 billion asset management -- so there's a lot of opportunity out there not just in speculating on cryptocurrency, but integrating it into real business. emily: bitcoin rally last month got close to $9,000, now close to $8,000, how do you think the volatility of bitcoin itself will continue to impact the enthusiasm around blockchain in general? >> i think we are going to continue to see volatility in

general until people see a real use case in their lives for cryptocurrency, and retailers, real retailers like whole foods have started taking cryptocurrency as a form of payment. i think once people start having an intrinsic value of bitcoin in their life, it will really help to stabilize the price of something that from here on out, has so far in life has been speculative. bitcoin will stop seeing so much price volatility and speculation. emily: when do you think blockchain will go mainstream? >> well, in some ways, we are already here, facebook is making a cryptocurrency. but at least in the next five years, you will see real products that actually touch the end consumer in a way that before, people have been seeing, when we have blockchain, we will in the next three years, you will start seeing people using applications backed by blockchain and they will not even know it. emily: will facebook users use

the cryptocurrency? that is the question. thank you, monica. how alibaba plans to raise billions is next. and can nio be the tesla of china? this is bloomberg. ♪

emily: this is "bloomberg technology." let's return quickly to our top story -- broadcom cutting its full-year forecast. the ceo said huawei business was worth $9 billion last year. million last year. >> with respect to semiconductors, it is clear that the u.n.-china trade conflict, u.s.-china trade conflict, including the huawei export ban is creating economic and political uncertainty and reducing visibility for global oem customers.

as a result, demand volatility has increased and our customers are actively decreasing inventory levels. emily: alibaba is already one of the world's most valuable companies, and now it is planning to raise a lot more money in the form of a confidentially filed new share sale on the hong kong stock exchange, and if it happens, it would be one of hong kong's largest ever share sales. what do we know about this offering? crystal: as you mentioned, alibaba has filed confidentially for a share sale that could raise as much as $20 billion. this would be the second-largest ever ipo or share sale in hong kong. hong kong is not typically a place that allows confidential filing, but since alibaba is already listed in the u.s., they

can file confidentially given the u.s. jurisdiction allows them. what we can expect as they will go through a listing hearing in hong kong and after they got the exchange's approval, they will go ahead with the exchange sale. emily: we know the ipo market in the u.s. has been extremely volatile. how is the market in china? crystal: we have seen a choppy market in the ipo seen in asia recently. yesterday, just last night, there was a logistics deal that got shelved because of market volatility. alibaba was probably not subject to that kind of volatility because it is already a well-known brand. it is already listed in the u.s., so what they are likely to do is trade hong kong listing at a discount or premium, and that would make the price is easy to predict.

we should very closely monitor the trade wall situation, and -- the trade war situation, and that would potentially affect where this deal is going to go ahead and if it is going to go ahead altogether. emily: what is alibaba trying to do? crystal: alibaba has not confirmed what kind of proceeds they will be going for. what we know is they are not short of cash. they actually have $30 billion of cash on hand, but this will be a good platform for them to have an extra listing vehicle in asia and they can tap more equities if they want to. again, given the whole trade situation, it is good to have equity platform in asia as a contingency plan in case anything goes wrong in the u.s. emily: thank you so much for your reporting on this.

the ceo of nio does not seem to be worried in the face of dropping value. he explains why. >> i think our investors do not understand our long-term value. from the standpoint of nio, we have faith in our long-term value. complicated reasons led to the stock rise and fall which is beyond our control. it's a very complicated thing, especially if there is a shortselling mechanism in the u.s. >> the chinese government is trying to attract the top technologies to list on domestic exchanges. is that something you would consider? >> we need to look into its regulations, which is also very complicated.

we will consider overseas investors' interests. >> the money you have you think will be enough to last you through the rest of the year? >> broadly speaking, we would like to connect u.s. and chinese capital markets. we have raised funding from global investors. we have not raised any rmb funding, but most of the funding are u.s. dollars. we will be able to raise rmb funding in future. we definitely have a clear timetable. we hope to close the deal in the foreseen future. so far, we are on schedule. >> it took tesla 15 years to become profitable. how long will it take nio? >> you cannot ask a four or five-year-old toddler to make money. i think it is quite difficult. tesla has been established for 16 years. we have only been established for over four years. i'm sure we do not need over a decade to make profit. >> what are the plans for the

united states? how are you thinking about the united states as a market long-term? >> i'm currently leading a team who has been working so hard, aiming to answer the question -- what do nio's products, service, community mean? what is the correct way to provide service? we will start to provide service after we figure it out. emily: that was william li speaking exclusively to selina wang. a closely watched market research firm has cut amazon's e-commerce share in the united states, announcing it expects amazon to account for 38% of online sales, down from a prior figure of 47%. coming up, will the real mark zuckerberg please stand up? how the advent of deepfake videos will have you questioning your eyes like never before. that's next.

this is bloomberg. ♪

>> imagine this for a second -- one man with total control of people's stolen data, their secrets, their lives, their futures. i owe it all to specter. specter shows me that whoever

controls the data controls the future. emily: that future is going to be riddled with what are being called deepfake videos just like the one you saw spoofing mark zuckerberg. it surfaced not long after facebook was criticized for its decision to not remove a doctored video of house speaker nancy pelosi that was also circulated on facebook. deepfakes now have lawmakers worried, leading the house intelligence committee chair to say that now is the time for policies to protect consumers from misinformation, not in 2021 after viral deepfakes have polluted the election. facebook declined to even take down that fake video of mark

zuckerberg, saying they do prioritize that, flagged it but left it up, just like the pelosi video. what can congress actually do about this? >> a lot of the conversation in congress was what can we do to limit the spread of these deepfake videos? one thing was make tech a lot more liable for the content and that will force them to do more moderation. politicians were discussing a lot of other things, like how you get the company together to swap best practices and find things that are problematic content spreading across platforms. can you do that, is there a way of identifying them quickly in a matter of seconds, not hours, and is there a way of labeling them?

i think that liability issue was a starting place for this and a lot of issues. emily: mark zuckerberg has reportedly contacted nancy pelosi about this and she has not returned his calls. >> something like i know this is says, i knowook this is false but we are showing it anyway, to me says two things. i was giving them the benefit of the doubt on russia. i thought it was unwittingly, but clearly they were accomplices in misinformation spreading across facebook. emily: as we go into what is sure to be a heated election, what is the role of congress? >> here is a lobbying tip -- do

not antagonize the speaker of the house. you don't want nancy pelosi or whoever else holds that gavel going on tv and talking about you like that. i think there is a feeling among a lot of the democrats that president trump specifically will be willing to amplify this sort of thing and there might not be willing this, nor particularly should there be, on the democratic side to amplify it in the same way, so it may be a bit of an asymmetric advantage. when i watched the hearing today, when i saw was a lot of politicians feeling like this could be used by foreign actors against domestic actors, that it could be used against companies. this could be something that could ramp up within weeks or months and that the current policies of companies do not tackle what these can do.

emily: there's certainly seemed to be an understanding among this group of lawmakers about how the technology actually works. the nightmarish scenarios go on and on -- presidential candidates saying something they did not say, world leaders saying something they did not say. jordan peele created a video in cooperation with buzzfeed spoofing president obama. >> moving forward, we need to be more vigilant with what we trust from the internet. there's a time we need to rely on trusted news sources. emily: how big a problem is this going to be in the 2020 election? >> in politics, if something works, it tends to get picked up, if it's by unscrupulous folks on the outside channeling this from the inside. i do think previous policies of these companies do not

necessarily contemplate situations like this, and you will have a lot of unscrupulous bad actors. i could see it getting relatively bad relatively quickly. we in news media will have to make choices and we will have to make some calls. we might be hesitant to report some real things. we might accidentally report some fake things. it is not the place you necessarily want to be, so i think chairman schiff made a good call. emily: you made a point that we in the media have to make these calls. youtube did take down the pelosi video. could we see congress pushing these platforms that tech platforms into to be held to a higher standard? >> there have been efforts to get tech platforms to hold a

higher responsibility for a lot of content. even if it is third parties posting it. i could see if this accelerates that this really becomes the issue congress pushes on. of course, election years are terrible times to legislate so it may not be they are able to push that forward, but i think there may be something important to say here about that obama video. as ironic as it is, there are uses of deepfakes, uses of political satire, and if you can put some context around that, that could be helpful. emily: wirecard faces allegations of accounting irregularities about growth. bloomberg caught up with the ceo

in an exclusive interview in berlin. take a listen. >> [indiscernible] we are over 300,000 merchants, so this is our growth and generation and our revenue generation, so this is where volume and growth is coming from. >> let me ask about the scandals that we have seen in the stock market. on the one hand, you have 23 buy ratings out of the 29 that i counted today. on the other hand, there seems to be nonstop controversy coming from places that create the kind of volatility i don't think german investors are used to. why is there so much controversy surrounding your company?

>> [indiscernible] share price growth every year of 36%. if you look at our new sales, we had in the second half of 2018 sales growth of by 60%. [indiscernible] i think we have seen tremendous growth. i do not too much look into controversies, but we have a very strong year before us. in many areas, we are pioneers.

asia is one of the biggest growth markets, especially because the first thing people buy there is a smartphone. china is a good example. we see asia as a very interesting growth market. we have a very strong year before us. emily: that was wirecard's ceo speaking exclusively with bloomberg's matt miller. up next, why the u.s. is purging scientists from top research centers. that's next. ♪

emily: twitter suspended thousands of accounts engaged in fake fact influence campaigns originating in iran, russia, and venezuela. a majority of the counts came -- the accounts came from iran which twitter said were associated with and backed by the government. shares fell 3% in thursday's session. call it academic espionage. a number of chinese americans are being removed from top cancer research institutions for allegedly sharing confidential information with medical research centers in china. the move is part of the white house's attempt to counter theft of intellectual property. you talk about this woman, a leading cancer researcher who works in the united states for almost three decades and was

basically fired essentially. what exactly happened there and what is the evidence she was actually doing something illegal? >> nothing illegal. she was challenged by the national institutes of health through her employer for not disclosing professional ties in china. she had relationships, research collaborations, sharing of data, maybe some honorary advisory titles in her native country. she is a naturalized american. they accuse her of not disclosing them, so she ended up resigning after a long investigation in which the fbi was quite actively involved. emily: she allegedly left the united states and went to work in china. is that suspect? >> it's not suspect. the people who work with her -- she is quite an accomplished epidemiologist. the dean of the public health

school at george washington university said the only thing we lost in the united states is our investment in her. in other words, this is quite a talented researcher now lost to the united states. emily: is this happening to other chinese researchers in the united states? >> there are four chinese researchers who have left as a result of this investigation. two more were fired from her -- from emory university and a whole lot more are under fire or under investigation. at least 60 people around the country. emily: in any of these cases, is there evidence of spying? >> not that i have come across. i have not read any of the dossiers like i have this one. in her case, absolutely not. none of these people are charged criminally and spying is a criminal offense. the only thing they did wrong is

not disclose these relationships to the nih. the nih is taking a unique position saying that research is somehow proprietary information because federal dollars helped fund it and some day it may result in intellectual property, but for the moment, it does not, but it is still protected. emily: the medical community does share a lot of information globally because it is all in the name of finding a cure for cancer. >> that's right. collaborative research is what people do now. scientists do not recognize national borders. when they see something in another country, they want to work with that person and share data, they go work with that person and that is how academic publications work. you see 12 names on half of all research papers. in this case, it is particularly egregious because it is about finding a cure for cancer.

not even a particular drug that a research firm might benefit from. it is causes, associations, links to causing cancer, so it is essentially looking for because of cancer, not the treatment. nevertheless, she is gone. emily: is there any recourse? what is next in these stories? >> the recourse might be that nih backs off a little bit and encourages research institutes to encourage employees to improve their disclosure. now that we are in this economic cold war, we don't what to be sharing too much with china, be more vigilant about that. emily: it is a fascinating piece. thank you so much for your reporting on that. you can hear from all of our

"businessweek" reporters on saturdays and sundays. that does it for this edition of "bloomberg technology." on friday we sit down with the elevation partner. that's tomorrow. ♪

announcer: the following is a paid program for dermaflash sponsored by dermaflash. if you know the skin you want is lying just below the skin you see, you can remove your old dead skin and peach fuzz and instantly reveal your best skin. smooth, radiant, younger looking skin. >> so what is dermaflash? this is the one beauty product you might not know you need. once you use it, you will wonder how you ever lived without it.