riggs in fortaylor emily chang and this is "bloomberg technology." the united nations links saudi crown prince mohammed bin salman to the 2018 hacking of jeff bezos's phone. we will have details and calls for an investigation. plus, smaller and cheaper. apple suppliers will start assembling a new low-cost iphone next month. bellwether, texas

instruments out with earnings. looks like a beach on the bottom line. shares rising in post-market trading, extending record highs. first, united nations experts are calling for an investigation into allegations that the saudi crown prince, mohammed bin salman, was involved in the hacking up the cell phone of jeff bezos. officials say information suggests bezos's phone was hacked following a whatsapp exchange with the crown prince. saudi arabia's finance minister spoke with bloomberg on the sidelines of the world economic forum in davos. --i think the embassy assessments last night saying this is absurd. they called for an investigation so they will know what happened. taylor: a report by u.n. experts says the alleged attack may have

been an effort to influence or even silence the reporting of the washington post, which bezos owns. to discuss, we are joined by elizo. what are some political ramifications you see from this? >> speaking to sources today, i have been hearing this call for understanding what actually went on, even as these reports have been coming out about a digital forensic analysis and the u.n. released a report detailing how the hack occurred. there still seems to be some ambiguity. many thanks -- many think certain spyware was put onto the phone of jeff bezos via a whatsapp message that contained an mp4 video. until we further understand if this was spyware, it remains to be seen whether there will be calls to regulate the sales of those tools, whether there will be calls to make sure this kind

of thing can't happen by sending a video over whatsapp. taylor: how sophisticated is saudi arabia in their hacking efforts, there cyber warfare? alyza: i think this is an example of the way nationstates can use cyber tools to exert influence, where maybe they are not going to use a conventional tool to silence washington post coverage of saudi arabia. that's not the kind of thing a conventional tool of statecraft can accomplish. this shows the way cyber has been increasingly used by states in recent years to try to exert influence in ways that were not previously possible. taylor: if we tried to analyze security measures taken on by some technologies, how do companies like amazon, whatsapp tried to protect themselves from this type of attack, for lack of a better word? kevin: i think really understanding what is in this

digital forensic analysis, doing follow-up, seeing what needed to happen in order for this video to be sent to bezos by the account of the saudi crown prince and result in the hacking and surveillance, which is looking likely, of his phone. really understanding how this came about and implementing security measures that will prevent it from happening in the future will be key in the coming weeks and months. taylor: thank you for joining us. bloomberg has also learned that apple suppliers will start assembling a low-cost iphone next month. the company is expected to unveil the device as early as march. it will look similar to the iphone 8 from 2017. apple wants to address a larger portion of the smartphone market before it rolls out 5g phones this year. to discuss, we are joined by mark gurman. what do we know about the biggest difference between the high-end and now a lower end

iphone? mark: apple continuing their strategy of retraining older iphone designs and bringing the cost down over time. they are using a design from the iphone 8 from 2017, which originated in 2014 with the iphone 6. they are going to bring the cost down to about $400, but put new technologies like cameras and processors from more recent years. basically you are going to get an older iphone that is faster than before. i don't think it is going to do exactly what apple thinks. i don't think this is going to be their savior in the emerging markets. i think they are going to need an iphone x type design much cheaper than the current model to do that. taylor: who would buy it? mark: i think people that have older iphones, it something like from 11ne 3gs years ago that is still somehow

orking, to an iphone 6 or 7 8 that does not want to shell out $1100 for an iphone 11. they want something that is going to allow their current version to keep working. if you have an iphone 8 today and you don't want to pay more than $400, you can get a new iphone 8 with a faster processor, more software, and new features for a much lower price. i think it is going to be a hot seller in the u.s., more affluent parts of europe and china, but not developing markets in eastern europe and india. taylor: one of the biggest risks, will it start to cannibalize sales from the higher end? mark: i don't think there is any chance of that. history has shown that iphone users are going to tend to go to higher end models regardless. part of the reason they are using the iphone 8 design, to make them cheaper to manufacture.

the longer you produce a certain design or technology, the better and cheaper it is going to get. this is a tried and true design they have been using since 2014. it is extremely low cost to build these things, so the risk of cannibalization is extreme lilo. -- extremely low. taylor: if we are waiting for 5g phones in september, why come out with this now? mark: the people buying this phone don't care about 5g. it is going to be in its infancy in the u.s. for the next few years. for this phone, it is not going to matter. taylor: bloomberg technology's mark gurman, thank you for joining us. we are watching shares of texas instruments fluctuating between gains and losses in post-market trading. reportedtruments better than expected revenue in the first quarter and better guidance for the next quarter. the ceo said markets showed

signs of stabilizing. the stoxx closed at a record high wednesday before earnings were released. we will get more from the call later from davos. wantse internet giant -- a new ceo for its tictoc business. among the requirements, must love adds. details coming up. netflix's latest earnings report proves the streaming battle is heating up with no slowdown insight. we will get analyst insight. ♪

taylor: a chinese internet giant is seeking a new ceo for its tictoc business. appoc is a popular video that american politicians have targeted as a potential security threat.

to discuss, we are joined by kurt wagner. why the new potential ceo? tictoc is under a lot of regulatory pressure in the united states. its ties to china have led some to believe it is may be a security risk, and there are some who think having a larger security presence on the ground in the u.s. may help with regulators. taylor: they talk about the product, the engineering from the ceo of china, to be in the u.s. to help the regulation part of all this. kurt: the way it was described to us, this role may not be everything you would think of as a usual ceo. this person would see more the business and operations side. that would include policy, pr, marketing, advertising. that is the big reason i was told they want someone on the ground. in asia, it is hard to build a big business in the u.s. from

asia. they want people on the ground who are going to help shepherd this potential advertising business through. taylor: why do we know about the advertising business so far? kurt: it is still growing, but when you look at tictoc, hundreds of millions of users. it has exploded in the u.s.. a lot of people believe it has a ton of potential. i don't think it is necessary facebook or google, but snap potential, twitter. the u.s. is the most valuable market for advertisers. facebook has proven that quarter after quarter. a lot of people believe a service like tictoc could make a big splash here. taylor: we have been talking about the owner of tictoc spinning off or selling off a portion of tictoc to improve relations with the u.s.. how are those conversations going? mark: we don't have an update

from what we reported weeks back , which is that these discussions have happened internally. with the ceo conversations, could they put someone here that might oversee tiktok? is notce has said this something they are discussing, but bloomberg has reported differently. it does seem like a realistic possibility that if regulators were to say if you want to operate here, you have to totally disconnect from your maybe this new regulator would take the reins. taylor: netflix reported fourth quarter earnings tuesday with overseas subscriber growth helping offset a slowdown at home. the streaming giant has not put in an all-time high on the share price since june of 2018. take a look at this chart. it is unlikely to change soon. this suggests netflix's

subscriber numbers could continue to disappoint. with new services, what can we expect to see in the overall streaming landscape? to discuss, moffat nathanson senior research analyst craig moffett. as you look at your coverage of the streaming universe, what changed for you this week and as you look forward? craig: yesterday's results from netflix were a reminder that the u.s. is a tough market because it is so crowded. netflix had the landscape to itself for an awfully long time. some would argue that is good enough, that its momentum will sustain itself without a problem. i think you have to be a little cautious when you see the number of new services that are starting. of that, a lot competition wasn't even there during the most recent quarter.

we are still in the early stages of the ramp up. it is not just that there is andetition for eyeballs time spent. it is also these new services are coming in at awfully low prices and you have to be a bit cautious about, what does that mean for all of these services going forward? taylor: it is early days, but in the horse race that is the streaming world, who do you see emerging as an early winter? concern is there may not be a lot of winners. disney'stive basis, strategy of go big or go home, as my partner michael nathanson has called it, is very likely to me that they are going to be one of the winners, at least relative winners. they will certainly get subscribers.

you are seeing that from all the early data. whether this can truly be profitable, and profitable on a scale where it starts to fill the gap that these services create for legacy media assets, is a real question. with comcast peacock, it is not just, can you get people to watch it and get advertisers, but what do those economics look like when compared to the legacy of comcast cable networks? or hbo max at at&t. what does that look like relative to the legacy of the turner cable networks inside at&t? those are hard problems. taylor: when you look at comcast, at&t, their hbo max service, and the pricing models, you have some companies low at $4.99, others more expensive at $13, $15 per month. what would be the right pricing

strategy? craig: right now i think everybody is pricing below what is sustainable. in the same way you saw the , the youtube tv, hulu, and at the time directv now, came out at super low prices and then had to raise them and suffered. that is a risk for this industry. i think there is a bigger issue. verizon is giving away disney tv plus for free. at&t is going to be giving away hbo max for free to some of its wireless customers. t-mobile gives away netflix periphery. those are just -- gives away netflix for free. those are just the wireless companies. comcast is going to be making peacock available. american consumers get trained to believe entertainment-like services -- these are all entertainment not sports -- for

entertainment services, the price they should pay is something like zero. that is troubling. taylor: what about the difference between an ad supported model or subscription-based? what works? mark: we have not seen the ad supported services yet to be able to judge very well. ago comcast unveiled a week caps the advertising load at about five minutes per hour, so far less then what you are used to seeing even in subscription sponsored cable. if you are going to be able to generate enough revenue to make that a compelling business, you have to get a big uplift in the price per thousand viewers that advertisers pay for. ultimatelyepend on how good that advertising is at driving sales, and we just don't know yet. it faces an uphill challenge. taylor: the story continues with craig moffett of moffat

nathanson. thank you for joining us. coming up, a vehicle with no steering wheel or petals. details from hour interview with the longtime auto executive, next. ♪

taylor: dumping on the self-driving -- jumping on the self-driving car bandwagon is general motors' cruise. tuesdayvehicle unveiled has no steering wheel or petals. with the cruise origin, the ceo wants to completely replace the conventional car. he spoke to bloomberg at ludlow. >> our goal is to make transportation safer for everyone. the way to do that is to get the human out of the loop and get driving performance to a superhuman level of capability. >> you have talked about how it would be more cost-effective for the consumer, if they are the car owner or not.

it has to be intensive, building all these cars. >> this vehicle will run 24 by seven, all day and all night. it has a life of well over one million miles, so the utilization of that asset is going to be extraordinarily high. that allows us to deliver a low cost proposition to the consumer. >> some of your competitors in california are testing in china or other parts of the world. will we see cruise origin in china? >> our strategy is for it to scale in the united states and globally. it is too soon to speculate on which markets, but our goal is to take this to a large-scale. >> how convinced are you that there is a near-term opportunity in california for this to be commercially viable? consumers' experiences today. we know what the cost of transportation is.

our goal is very simple, a better experience at a lower cost. >> when i talk to different market participants and analysts , they say the hardware is there. your demo displays an impressive hardware. what they say is lacking is the software to make this convincing. how do you assess your software relative to what else is out there? >> and the presentation, we talked about the performance of our software. we are driving thousands of miles between any incident through san francisco, one of the most conflicts -- most complex driving environments in the country. >> about the consumer experience , you discussed the app as potentially a ride-hailing service without a driver. you talked about cost savings. you is the average fare expect to charge a customer? >> our objective is a better

experience at a lower cost. it is hard to generalize, but if you think about what you pay today, our goal is better than that. taylor: that was cruise ceo dan ammann. the ceo of google has left no doubt about how important he thinks artificial intelligence will be. he says ai will be more profound than fire or electricity. todavos, he says frameworks regulate ai are a great start. >> i have said before, ai is one of the most profound things we are working on. it is more profound than fire, electricity, or any of the other bigger things we have worked on. possibilities,us but real negative consequences. when you think about technologies like facial recognition, it can be used for benefit to find missing people, but it can be used for mass surveillance.

as democratic countries with a shared set of values, we need to build on those values and make sure when we approach ai we are doing it in a way that serves society. that means making sure ai doesn't have bias, that we build and test it for safety. we make sure that it is ultimately accountable to people. 18 months ago we published a set of principles under which we would develop ai at google. european commissioners identified ai and sustainability as their top priorities. of u.s. put out a set principles last week and are talking about this, which i think is very encouraging and i think we need a common framework with which we approach ai. >> are you satisfied with those frameworks which have been developed until now?

the g20 framework. >> it is an early start. i am very encouraged. commonalitylot of because they are rooted in common human values. it is a great start, but we need to get more specific and evolve it significantly. the european commission is working on a white paper around ai and i think that is an important first step. as a company we are engaging in the process, but it needs everyone from around the world. you can't get safety by having just one country or a set of countries working on it. you need a global framework to make a safer world. taylor: that was the alphabet ceo. coming up, it is considered a rival to google. the search engine cloud company talks rapid expansion in the u.s. and abroad. we had to tokyo next.

this is bloomberg. ♪ when you move homes, you move more than just yourself.

that's why xfinity has made taking your internet and tv with you a breeze. really? yup. you can transfer your service online in about a minute. you can do that? yeah. and with two-hour service appointment windows, it's all on your schedule. awesome. so while moving may still come with its share of headaches... no kidding. we're doing all we can to make moving simple, easy, awesome. go to xfinity.com/moving to get started. and with the sxfinity stream app, screen is your big screen. which is free with your service, you can take a spin through on demand shows, or stream live tv. download your dvr'd shows and movies on the fly. even record from right where you are. whether you're travelling around the country or around the house, keep what you watch with you.

download the xfinity stream app and watch all the shows you love. this is bloomberg technology global link where we join bloomberg daybreak australia to bring you the latest in technology news. tops take a look at the global tech stories of the day. wework has sold its minority stake in start up the wing. been exploring the sale for the last year. the move is part of the parent company's efforts to refocus its business. theddition, we work is in

process of divesting its stake in other companies. bloomberg has learned xerox plans to seek control of hp. they have rejected their efforts to -- submit a majority stake before friday. a tiecahn has pushed for up of the companies. itsrola will start selling new $1500 razor phone in the coming weeks but delayed the launch beyond the holiday shopping period. it runs google's android operating system and features a touch screen inside and out. those of the top global tech stories we are watching. isry: to tokyo where yext expanding come opening a new headquarters and hiring 100 new employees to accommodate its growth in asia. direct to provide a more

connection to brands and customers. joining us from tokyo is yext founder and ceo howard lerman. great to have you with us. the japanese business environment is pretty neat, especially this digital space. they use yahoo japan where in most countries where we use google. so why are you seeing more opportunities in japan and what is your strategy there? howard: first off, yahoo japan search is powered by google. there are a lot of facts that need to be online and our mission at yext is to put the truth online. i came to japan yesterday and i did a tour in the fukushima region. many people around the world think that fukushima foods and produce are not safe to eat after the nuclear accident in 2011. this is not true. but online if you search for questions around fukushima, you see a lot of pretty terrible things out there. i met with local farmers, i met with local sake producers, we

can help but the truth online, and that is one of the reasons to come to japan. on your website you talk about some of the big multinational companies you're working with. how are you going out boots on the ground to help the smaller, more local businesses? howard: we are an enterprise business where software is in service of the clouds. think adobe. we can really help the tourism agencies of japan, the government of japan to put facts online. anybody with an internet connection can write anything, which is one of the issues with the digital environment. what we have done is we have set out to put the truth online by putting brands in control of their facts. for example when you look up mcdonald's or yoshi know yet here in tokyo, the facts you find from google maps came from the brand itself. authority on their

address. shery: sales seem to have been slowing. so what is your strategy to counteract this? growth we have seen 30% since we have gone public. we are hiring 100 people in japan over the next five years and are really excited to announce our new office here. 10,000 square feet in a beautiful new building, the tallest building in japan. it is aspace we are in, global opportunity. we have offers from berlin to beijing to help multinational companies put the facts about them online. traditional cms's have unstructured content. what yext does is we help companies structure their content so that searches using natural language processing, where a user asks a question and the computer can derive the intent of the question, we help that information be surfaced

online so a consumer can see answers. taylor: how much of your business has been able to benefit from the modern-day, fake news, disinformation, everything is being thrown around in the wild west of the internet, with all of that sort of circulating around there with no regulator insight. how much of your business can then go and take advantage of some of that? howard: this all comes down to sourcing. 20 years ago when you would run a search, it was all document-based keyword search. you would type in a keyword like mcdonald's, you would end up on a website with just a keyword mcdonald's. but today, google and other search engines can derive the intent of your query and actually give you the answer directly. if you type mcdonald's in today you get maps back. if you type in how many calories are in a big mac, you get a direct answer. so the consumer expectation has

shifted and it is up to brands to structure their data, to structure their information in a next generation website, and next generation website called a knowledge graph so they can answer the questions directly and get misinformation out there. why would they choose your company instead of google's business listings? howard: our company integrates directly with googles interest -- business listings and alexa. companies put their facts and a knowledge graph powered by yext, then we link up to google, alexa, facebook, to microsoft, to all the other censure -- so when a user goes to look up a fact, the fact they find came from the brand source itself. that is the authority on the matter, that is what yext is. we help brands put the truth about them in google, alexa, and their own websites, using our software and service. taylor: if you are working with

google, how rough top are you in the u.s. environment, whether being denied for antitrust, data privacy, all the works? howard: when you are looking online in europe with gdpr, looking at cookies, that is all around personalization and individual consumer data. helpingt is doing is create a next generation context management system. by definition anything a brand puts online, they are trying to have people find. those are all public facts. mcdonald's wants people to know where their stores are. jp morgan wants people to know where their bank branch locations are. morgan stanley wants people to know where their financial advisors are and what languages they speak and what services they offer. so we do not really worry too much about the privacy issues, because we are trying to push the truth out there about public things that are already public. shery: tell us about your

financials, because they do not seem too attractive. when can we expect you to be profitable? and your debt to equity ratio now is over 50%. howard: we are investing really heavily in growth. the space we are in, the search experience cloud space is part of the digital experience platform space, which is estimated to be more than a $20 billion market. we have a $20 billion pan, and this is a winner takes most market. we are investing heavily to graph market share in order to win big customers around the world, from beijing to berlin, before anyone else can get there. because once a customer is on our platform and they begin to put their facts into the knowledge graph and we are pushing all of their facts into digital experiences for them around the world, it is really important that they stay there and are able to build more applications on top of the platform. so we are investing for growth, and that is what we are seeing. taylor: thank you to yext

founder and ceo howard lerman. much more ahead. stay with us. this is bloomberg. ♪ ♪

texas instruments out with fourth quarter earnings. fluctuating between gains and losses as investors digest better-than-expected first quarter titans on revenue. with the stock trading near record highs, it leaves little room for error. just off the analyst call, ian king joins us. >> things are not getting worse was the key take away. if you look at the declines in revenue over the last five or six quarters, the rate at which it is getting worse has abated, shall we say. that was a key take away.

the reason the stock popped initially and then ended up slightly in negative territory was people were expecting a little bit more. taylor: what is the cfo saying? ian: the key thing underneath here is the overall forecast would actually have been a little bit better if it were not for one market, communications women market selling into things like cell phones. our market had them getting down hard, not getting better, and therefore that dragged down the overall forecast. more important to tech six instruments -- they are close to turning positive, which is good for the overall economy. taylor: i want to dive down into these numbers. you are jumping off the analyst calls. revenue topline slowing, but slowing less than we thought it would. what is going on? because we had so much optimism coming into this about the chipmaker. ian: right.

normally when you get into a normal industry cycle, you have about five quarters of decline. we are past that point. taylor: we are there. ian: they have said people -- things are extended because people remain cautious because of the china trade dispute. china is the biggest market for chips and texas instruments. that is starting to show signs of improvement. things are not growing yet, but the rate they are getting worse has abated. taylor: if they are talking about macro headwinds, chinese tensions, we have the signing of phase one, how much of that headwind could now become a tailwind? ian: again, it is complicated. communications equipment a year ago early good was huawei went out there -- this quarter it is not doing that so the comparisons are

negative. overall i think texas instruments was saying this is a macro sentiment kind of thing. a lot of people are less concerned that we are in this kind of deathmatch sort of trade dispute with china than there is hope there will be a return to normalcy. taylor: you mentioned some communications equipment. industrial makes up about 36% of revenue. personal electronics about 23%. automotive makes up 20%. so this really is a bellwether, given all the different types of industries. what can we take away from this about what is doing well and what is not? ian: they got asked at length in various different ways to give a head start from markets that are giving -- doing well and are not, but they do not do that these days, apart from the level you talked about. you look at automotive, you look at industrial, they were down in the load -- low single-digit percentages, which is considered

to be better than the amount of declines we had expected in the fourth quarter. therefore that negative is being taken as a positive. taylor: so what the heck is going on with the share price? you are closing at record highs despite record declines you talked about. ian: this is the chip industry. you have to try to anticipate those swings. a lot of money has been put to work in chip stocks. i was talking to an investor in the aftermath and we said look, we already priced in this earning. now we need them to start to show really strong growth before we put more money. taylor: you talk a lot about being priced in. i want to show inside the terminal, ratio of the stocks, trading more than 20 times relative to the s&p. only 18.7 times. valuations are full. highest in a decade. we have no margin for error in this next earning report. ian: that is a very good way to

look at it. these companies are not cheap on that basis. if that is what you're looking at. we already reached the point where there was value to be had only a veryhere are select few companies below that point. taylor: i guess purchasing my double two plus calculator did not seem to help much. thank you, that was bloomberg technology's ian king. in the latest episode of the david rubenstein show, marc benioff stayed on to talk about his commitment to philanthropy and has -- how his relationship with steve jobs helped -- saved his company early on. he also said if he would ever seek office to implement change. marc: it is the new cigarettes. it is bad for you, it is addictive.

they do advertising that is not true. they should be regulated very aggressively. david: have you heard from mark zuckerberg? marc: short. i talked -- sure. i talked to him and his management priority and said trust has to be your highest priority. if you are not thinking about all your stakeholders, and you are only focused on money, then what kind of business are you building? they agree that pornography should not be on their site. so they built the technology and it cleanses their site of pornography. they are very careful about that. they have advanced ai. other things that they allow where they could look for truth, where they could actually work to have great integrity, and make sure that everything is accurate and clear. they do not do that. and that i think is a problem and needs to be directly addressed. david: as a result of your success, you are beastly made a

fair amount of money. is your goal in the future to make more money, to give it away, would you consider running for office? marc: i would never be a politician. i will never run for office. i would not know how to run for office. i could not see how i could do that. i like to go to hawaii, enjoy myself. that does not really work with that model. i think that business is the greatest platform for change. i think that what i am doing, i can have more impact doing what i am doing with 45,000 employees and all my partners in my trail blazers all over the world, and say we can do it, we can change the world. oh, because by the way, if you and i don't change the world, no one else is going to. we don't have to repair the world. we have to reap -- we have to improve the world. we are on the board of the world economic forum together, we are trustees. our tagline is committed to improving the state of the world. isn't that everyone's tagline?

that is why we are here. that is why we are on this planet, is to improve the state of the world. we are not here just to make money. we are not here just to manipulate other people or to get our way. we are here to improve the world and to love each other. and that is what it is all about. taylor: that was salesforce ceo benioff. you can check out the full episode of the david rubenstein show peer-to-peer conversations wednesday at 9:00 p.m. eastern. still had, elon musk has plenty to dan support -- dance about. more on his new milestone, next. this is bloomberg. ♪ bloomberg. ♪

u.s. and france have struck a deal on a global framework for digital taxation.

to the lake granting attacks on digital companies until the end of 2020. in exchange, the u.s. will refrain from imposing punitive tariffs on french goods. earlier we spoke to the french finance minister. >> we are ready to postpone the prepayments until the end of the year, with the view of finding an international solution at the end of 2020. in that case we will get rid of the national taxation and nationalext general -- taxation by the international solution. taylor: the u.s. has threatened to slap tariffs on french wine and other products if the french went ahead with the digital tax. elon musk is having a good day. value surpassing more than $100 billion wednesday, surging past volkswagen to become the world's second most valuable lawmaker. the ceo can look out to a huge

payout if the stocks sustain its rally. he would more on tesla's remarkable run i $102.7 billion. you are a clipping volkswagen. eclipsing gm and ford combined. how did this happen? >> it is remarkable how fast this happened. two weeks ago market value was $88 million. totally --ater he is it has been amazing. taylor: explain the payout for me. it is not just one time. it has to be sustained on a rolling basis. >> six months, 30 day, which i should know more about. it is not just a one-time thing. now they hit it if they can sustain at, he will get that payout. taylor: how does the shorts feel? >> they are being crushed right now. lost over 20 billion -- $2

billion in 2019 and lost that same amount in january of 2020. remarkably they are not folding. tesla is still one of the biggest shorts out there. if anything a lot of them are doubling down. when we look at the earnings on the 29th, the big surge in the stock has been fueled by the big growth in china. they managed to roll out that shanghai factory -- what is that word? really good production limited pickups, so to speak. how much of all of this is really based on china? dana: i think the run-up in the stock is due to three things. one, they reported a profit in the third quarter. their deliveries for the fourth quarter were very strong. and this china plant is up and running faster than anyone expected. but going forward there are a lot of potential catalysts. the model y is the next car. you are seeing pictures of the model y all over the bay area, spoy spots.

taylor: talk to me about that. elon musk i believe on a video said the model y could eclipse all the demand of the other vehicles combined. we were speaking with analysts and they say maybe he likes to say that, but they are not sure the model y, that kind of demand is really there. what are you hearing? dana: the truth is the whole auto market is shifting from sedans to suv's. tesla made the model s and the model y. the model y was a little bit of a disaster. people who bought it seemed to like it but it never sold at super high volumes. i mean the model x never sold a super high volumes, but the model y could be tesla's opportunity to fix and remedy that. taylor: any downside to the stock is surrounded by that demand question. is enough demand truly there in the coming years? dana: that is a big question. warned the first quarter

would be pretty -- pretty rough. a lot of people do not buy cars in the winter. he sort of said he does not expect the first quarter to be strong. will it fall off a cliff? that sort of happened in the beginning of 2019, which is why this year started with a stock so underwater. taylor: what do the biggest competitor? dana: -- uplor: is gm or for coming with a new car we have not heard about? dana: tesla has such brand awareness. people don't say they want to buy an electric vehicle. they say i want to buy a tesla. even though we have heard about all the competition coming, no other brand has solidified its place in the market the way tesla has. i am hard-pressed to say there's a strong competitor at the moment. taylor: dana hull, thank you for joining. that does it for this edition of bloomberg technology. bloomberg technology's livestreaming on twitter. check us out at technology.

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haidi: a very good morning. markets have just come online. shery:shery: japan and south korea open in an hour. sophie: i am sophie kamaruddin in hong kong. welcome to daybreak asia. haidi: our top story this thursday, china bans travel from the coronavirus epicenter with 17 dead and hundreds infected. the outbreak has been hurting the already slowing economy. the virus continues to stretch investor nerves. markets are watching for