emily: how so?im: i think it is just making sure that as we build revenues, we also build the cultural aspects that make companies what they are. and that governance models evolve as a company moves through its life history. uber moves through life history so quickly that at times the models have grinded to keep up. i think there is a general lesson, that make sure that those models around governance and culture bear the same discussion in companies as the business models, which often drive them. emily: so, david bonderman, cofounder of tpg, was on the board of uber. he made an off-color remark about women at an all hands meeting and he resigned. , is that kind of remark acceptable? is that kind of an attitude? jim: no, david's remark was unexplainable and inexcusable, so clearly inappropriate. in the aftermath of it, david apologized, broadly and deeply and immediately stepped off the board, so that was part of the discussion as a company changed its culture. so there is no excuse for what was done

that emily was a beckwith. but i never felt less of a person in the presence of emily or any one of her family. >> emily was the girl everyone wanted to be friends with and every boy wanted to date according to friend shannon and sarah. >> she could have had any boy. >> all these boys were all over her. >> gaga over her, she was gorgeous. you seen pick of her. even in high school, she was gorgeous. it just wasn't her thing to date. >> by the time she was 21, emily moved 200 miles south to kansas city, missouri, working in a hair salon. one night in 2001, she went to a bar and a local boy famed alex fasina spotted her from across the room. >> and it's one of those like aha moments you might say. i was like, oh, i have to go talk to that girl. >> after a few dates, alex said he knew she was the one. >> what did you like about her? >> what didn't i? she was beautiful. she was very nice. she dressed impeccably. yeah, what didn't i? >> alex's mother joe anne knew something was happening when her son asked if he coul

♪ emily: i am emily chang.his is the "best of bloomberg technology" where we bring you the best interviews from this week in tech. tesla struggles to manufacture for the masses, shipping people model three sedans in the last quarter and pushing back a crucial production target. we are tracking spotify's unconventional ipo. is there really investor demand? intel discloses this week that most of the processes running the world computers and smartphones have a feature that makes them vulnerable to attacks. as the largest chip acre in the world, the impact is far-reaching. fixes are coming over the next few weeks and it sees no material impact to its business. google says the issue affects other semi conductor firms. microsoft, apple, and google says -- what we need to know. >> google researchers found out that this might be a problem going back to the middle of last year. the idea was we get together, find a fix for this, then we put that fix in place, then we go and say, look, this is what happened. we sorted it

emily: really? wow.n the other hand i see a bubble as well, so i don't say everything will continue to go through the roof. the venture capitalists who do not discriminate will surely put too much money and companies that are not ai companies and getting double, triple valuation, and that has to become rationalized overtime. emily: kai-fu lee, ceo of sinovation ventures, thank you for joining us on the show. kai-fu: thank you. ♪ retail. under pressure like never before. and it's connected technology that's moving companies forward fast. e-commerce. real time inventory. virtual changing rooms. that's why retailers rely on comcast business to deliver consistent network speed across multiple locations. every corporate office, warehouse and store near or far covered. leaving every competitor, threat and challenge outmaneuvered. comcast business outmaneuver. ♪ haslinda: hello. i am haslinda amin in singapore. they don't fly much higher than nathan blecharczyk, today's high flyer. airbnb is listed in almost ev

emily?tionis the for self driving cars -- how the competition for people to work on self-driving car's? greatgive them a environment to work in and teach. i think people want to really do something that matters. emily: employees at the white house will no longer be able to use their personal phones at work. thee house aides say change is not due to concerns that staffers have been leaking to knees off with -- news o utlets. we talked about the streaming music landscape next. this is bloomberg. ♪ ♪ emily: disney will find out soon if the force has awakened in china. star wars has never had the same following there as elsewhere. globally, the movie has taken in over $1 billion at the box office. a new report said there were a record 377 billion songs streamed over 2017. ceo of as now is the start up that handles the licensing of popular songs for game developers and e-commerce sites. spotify'su think of unconventional listing? >> it is an exciting time in the industry. historically companies h

this is bloomberg and "bloomberg ishnology" with emily chang next. emily: i'm emily chang. and this is "bloomberg technology." coming up, more fallout spreadinghip flaws through technology. microsoft says it has a fix, but it may impact performance. plus, more highlights from our .overage and up, up, and away. an ultra secret satellite launched by spacex goes missing. how big of a setback is this for their ambitious 2018 schedule? first, to our lead. the continued fallout over the microchip security flaw affecting nearly all of the world devices. microsoft says fixes for the meltdownd baltimore -- vulnerabilities may significantly slow down performance. is also temporarily suspending some updates to windows operating systems that amc -- a.m. -- poorlyt are performing as a result. >> the primary focus of our decisions and discussions have been to keep our customers' data safe. as of now, we have not received any information that these exploits have been used to obtain customer data. us now, ian king who covers the industry. it sounds like microsoft and intel are at all its.

. ♪ emily: i am emily chang and this is bloomberg technology.oming up, drop -- dropbox jumping into the public market. can the company avoid the pitfalls of going public? plus, changing passwords on -- passwords, locking up data on company-owned computers. those are some of the steps uber took to evade authorities in the past. we explain their wrigley program. facebook and twitter have been under scrutiny for how they deal with online harassment. now, shareholders are speaking out. but first, to our lead and an update on the massive chip of known as meltdown inspector. two of the exploits of applied to their chips. they deviously said their chips were unaffected. shares are falling and after-hours trading. for more, let's get to our bloomberg tech reporter, ian king. say initially and what have they now said? >> there was a conference call to explain what is going on. is they are saying there zero to little chance of this being affected. clearly that put them at odds with what intel was saying, that this was an industrywide problem, leading peop

♪ emily: i'm emily chang and this is "the best of bloomberg technology," where we bring you our top interviewsrom this week in tech. coming up, more fallout spreading through technology. our conversation with arm holding ceo simon segar. plus, highlights from the coverage on the ground at the consumer electronics show. in the next hour, you will hear from the ceo of nissan and sony's ceo. and gopro takes a dive. we speak with ceo nick woodman after the company cuts its forecast and slashes jobs. first, to the lead. the continued fallout over the microchip security flaw all work nearly devices. this week, microsoft said fixes for the vulnerabilities may significantly slow down servers and personal computers. in a blog post on the company tuesday, suggested they could be more substantial than intel previously indicated. microsoft is also temporarily suspending some updates to windows operating systems that use chips that are freezing or not putting up. monday night at ces, the intel ceo tried to reassure people that there do data would be safe. -- that their data would be safe. >> the security i

. ♪ emily: i'm emily chang, and this is "bloomberg technology."oming up, president trump is closing in on his first year in office. we look back at how the administration has impacted silicon valley. plus, the iphone x was one of the most anticipated devices ever, but one key analysts current projections, citing weak demand in china. and netflix stock has been on a tear this year,'s skyhigh expectations for fourth-quarter earnings results next week. you will discuss what to expect. but first, to the lead. u.s. lawmakers trying to avoid a government shutdown. the senate minority leader told reporters he had a long and detailed meeting with the president but that a good number of disagreements still exist between the two sides. for more let's get to see okafor on capitol hill -- what's the latest? >> everything is still up in the air. we are about seven hours away from the government shutdown and it would come around the ---year anniversary of before his state of the union. the last government shutdown lasted 16 days so there is a where they could c

i'm emily chang.his is "bloomberg technology." coming up, facebook, hit and miss. our look at fourth-quarter earnings for the social media giant and the most concerning metric or wall street. -- for wall street. how microsoft's push into the blockchain and the cloud added to its bottom line added to the -- its bottom line this quarter. how microsoft's push into the as travis kalanick and larry page get ready to testified. facebook reports its fourth-quarter earnings results. here are the highlights. revenue coming in at nearly $13 billion, beating the highest estimates from analysts. monthly active users totaling 2.1 3 billion, while daily active users came in at 1.4 billion, slightly below forecast, one of the most important metrics that wall street cares about. facebook stock extended losses in after-hours trading, down 4% at the moment. let's bring in david kirkpatrick, ceo of techonomy, who knows all about facebook, having written "the facebook effect," and jitendra waral. one of the most surprisi

emily: that was alex webb. of apple's are just chinese suppliers is getting slammed for harsh working conditions. the company is under scrutiny after a rights group found violations on its factory floors. peter joined us from tokyo with the latest. peter: it is important to note there is a report out from china labor watch. in addition, we sent bloomberg news reporters to the factory to interview workers. they described harsh conditions they are working under. they talk about standing for up to 10 hours straight in hot factory conditions as they work on these iphone casings. sometimes they say they don't have the proper equipment, including masks and gloves, in some cases earplugs. they talk about the difficulties there. they also talk about, they say there are hundreds of workers in this factory and the door only opens 12 inches, which makes it difficult to get in and out quickly. our reporter was able to visit their dorms to see living conditions, which were difficult. they are cramped. many workers cramped i

emily: what else does this mean? numbers, the big number that everyone is going to talk about is that there want to spend three to $50 $350 billion in the u.s.. if you subtract that from the 252 billion that they have offshore, they have a huge pile of cash, and that is a big shareholders are going to be excited about in terms of buybacks. emily: what happens to the rest of that cash that remains overseas? >> there are three ways they can use it. buybacks from shareholders, and repayment of debt. debt a hundred billion dollars in debt. there are spending a lot of dollars on their m&a. , broadly speaking, the expectation that a lot of money is going to shareholders. emily: what is the expectation of the m&a technology? we have seen them make some moves in music streaming, they bought shazam, we think they are leaning towards making more acquisitions, and if so, what kind? generally, they look at people like microsoft, because massive deals require -- that direct on the whole thing. apple says they have a lot of money,

emily: ok.le, google, microsoft, all working on fixes or have completed fixes. there are people who say, they the software will completely fix this, however not everyone is going to update their devices. right? what are the longer-term implications of it? >> as you said earlier, this may affected the performance of computers. fix it and maybe your older machinery slows down in a way that is no longer useful. it is a difficult situation for a lot of computer owners and computer operators to be in. at the same time, there are some details, and we do not know how it will play out. one of the biggest concerns is how data centers will be impacted. because what they do naturally on the have three users same computer. one of the concerns is that this issue makes that less safe. that could have a big impact. emily: all right. our tech reporter ian king who covers the chip industry. onnow there will be more this. thank you so much for that update. we will talk about this after the next break. but first,

emily: carlos ghosn. still ahead, sony has had some big moment at the box office this year thanks to smashes like "spiderman" and "jumanji." but the ceo says the company isn't stopping there. he joins us later this hour. this is bloomberg. ♪ emily: china has entered the top five in u.s. patents for the first time ever. chinese inventors received 11,241 u.s. patents last year, a 28% increase over the same period in 2016, this according to a report by ifi claims patent service. china ranks behind the u.s., japan, korea, and germany overall. and gopro's challenges are coming to a head. the company missed its fourth-quarter sales guidance, signaling that revamped cameras and price increases aren't sparking revenue growth. shares tumbled on the news, leading to its worst performance in a year. m&a is the likely next up for the struggling camera maker, but the gopro ceo spoke to bloomberg's selina wang and tonight reports they have higher jpmorgan for a potential sale. take a listen. nick: jpmorgan is, in fact,

emily: what about these other things?ill i be able to make a phone call, call a car, order groceries? tim: there are a lot of things you can do with it. you know, one of the advantages we have is that there are a lot of things that siri knows how to do from the phone. and so, we will start with a patch of those, and then you can bet that there is a nice follow-on activity there as well. emily: so let's talk about e-commerce. e-commerce is very important to these devices. i can order paper towels on my amazon echo. does this tell us something about apple's aspirations in retail? tim: no, i wouldn't read into it in that regard. what i would read into it is apple is a company that deeply cares about music and wants to deliver a great audio experience from the home. we feel like we reinvented it in the portable player area, and we think we can reinvent it in the home as well. and we know that people want a speaker now to do more than that, and obviously we want a speaker to do more than that, and so we are sort of combining w

emily: welcome back. i am emily chang.ton is gearing up for a new set of challenges, but according to m.i.t. president, one threat is being ignored in that is china. in an exclusive he warns that interview he warns that china is , king of the hill and the u.s. is at risk of losing its edge in technology and innovation. >> china has done amazing things and will continue to do so. china's population is close to 1.5 billion. we are a little over 300 million. they are five times the american population, so, from that standpoint, the competition is going to be very strong with people who are extremely smart. we know, because we have them here. my concern is, we need to recognize we have a very worthy competitor. that's the expression i've used before. >> and you don't think we recognize that. rafael: it doesn't sound to me like we do. perhaps now people are beginning to pay attention to it. i think the corporations, people that are fighting every day for market share -- they know that. it's not clear to me that enough people in

emily: how did larry respond?an: across the company, there is a real seriousness and taking to heart the message. google is really an ethical company. the elephant in the room is a business model. the advertising-based business model means all of these attention-based companies, youtube, snapchat, twitter, facebook are all in the business , of capturing people's attention. youtube's goal is how do we get billions of hours watching on this product for as long as possible? emily: did he share your views or sympathize with them? tristan: i don't recall specifically. the conversation mike to get -- the conversation likes to get avoided, because it is uncomfortable to look at. startedme web browser to know how much time people were spending on the web versus in app. as soon as you measure it, they try to maximize how much time they are spending. you manage what you measure. what do we actually care about? should these products be designed for addiction, which is what they are designed for now? it has health consequence

. ♪ emily: i'm emily chang. emily: i'm emily chang. and this is "bloomberg technology."oming up, qualcomm slapped with a message line from european chipmakers -- european lawmakers. plus, more highlights from the world economic forum in davos, including our conversations with bill gates and the ceos of morgan stanley and the nasdaq. intel gets ready to report its fourth-quarter earnings. the company's first since the specter and meltdown chip flaws were revealed. we will take a closer look at the impact to its bottom line. first, european regulators have slapped qualcomm with a $1.2 billion fine for anti-competitive practices. from 2011 to 2016, qualcomm paid apple to exclusively use its chips in their products. speaking at a press conference yesterday, saying qualcomm pushed out rivals as a result. >> our decision found that qualcomm cemented its decision by illegally shutting out rivals from the market for over five years time. emily: qualcomm plans to appeal this decision. the company said, "we have a strong case for judicial review, and we will immediately commence t

. ♪ emily: i'm emily chang and this is "bloomberg technology." coming up, bitcoin's tumble.he cryptocurrency sees its 2015.ailey declined since will we see more selling in days to come? plus, we catch up with arianna huffington. what she has to say about current ideal plans and the me too movement. and one of apple's is getting slammed for harsh conditions. there hasn't been a a selloff like this in bitcoin in months. the cryptocurrency tumbled as much as 25% in tuesday trading, approaching the 11,000 mark. less than a month ago, it was trading at almost $10,000. rival cryptocurrencies are also feeling the pain. to discuss that debate and cover all the news in bitcoin this week, i want to bring in the chief investment officer of a for cryptocurrency payments and also our editor at large. what is behind this downward pressure? >> same thing as behind the upward pressure, rampant speculation among traders. a couple of academics traced a lot of the rise to just teed up traders, maybe even one, so there was a limited amount of people speculating in this, but when you see that, y

. ♪ emily: i am emily chang, and this is bloomberg technology.oming up, the tech is back on capitol hill. this time, it is all about fighting online extremism. did lawmakers get the answers they were after? plus the cryptocurrency crunch. has the bubble burst? and it is a payday for apple employees. apple plans to bring calm billions of dollars in overseas cash to the united states. we have the story. but first, to our lead. representatives from facebook, youtube, and twitter were on capitol hill once again, this time to testify how they are all testifying -- all fighting online extremism. they appeared before the senate commerce committee, and a lot of the same topics that came up in last year's hearing reared their heads once again, but perhaps the most dire warning came from senator john hester from montana. >> i just want to say this is a really important issue. from a terrorist standpoint, all the questions we have asked before. our democracy is a risk here. we have to figure out how to get this done right and get it done very quickly, or we

emily: i'm emily chang. this is "bloomberg technology." amazon taking another big hardware leap, virtual reality glasses will be shown next week at it convention in las vegas. uber ceo ise former selling some of his stake in the ridesharing startup. and a sensation over the last couple of weeks, can the company strike while the iron is hot with investors. the first ever pair of augmented reality glasses connected to alexa will be unveiled next week. pairing up with the glasses developer to manufacture the device. in a statement the tech giant says it is excited about the possibility of bringing services to customers in a new way. intel ceo sent me the first keynote and as we have been reporting a flaw in the design of electronic chips was revealed earlier this week impacting nearly every single digital device crated since 1995. joining us is the man who broke the story about the amazon glasses. mark, what will the glasses be able to do? what will they look like, etc.? mark: this is what we have been talking about for years now, augmented r

emily: that costs money. they pay the underwriters anywhere from 2% to 2.5%, which is what snap did. with this, it's different. they basically come out and say, look, our stock is trading now. we don't know how the mechanics are going to work. in the past listings i've looked at, small companies that have listed, they basically just open the shares on day one, like a normal open auction, and that can inject some questions. is there enough supply and demand? where does the price stand?these are things they will have to suss through that could inject a lot of volatility to the shares. it seemed like if they are moving ahead with this, they say they don't need to go out and scream their story from the rooftop like a classic ipo and they don't need 14 banks coming in, telling them how to sell their story. emily: lucas, what does this mean for the economics of the early investors? does this mean more money for everyone in the end, who is already an insider? lucas: those early investors will make a killing, if you

♪ emily: i am emily chang.his is the "best of bloomberg technology," where we bring you all of our top interviews from this week in tech. coming up, what you need to know saga, andintel chip the company's response to what big tech companies are doing to protect customers. plus tesla struggles to , manufacture for the masses, shipping people model 3 sedans sedans inodel three the last quarter and pushing back a crucial production target. and we are tracking spotify's unconventional ipo. why the music site is attempting a direct listing, and is there really investor demand? but first to our lead. intel disclosed this week that most of the processes running the world computers and smartphones have a feature that makes them vulnerable to attacks. as the largest chip maker in the world, the impact is far-reaching. intel says fixes are coming over the next few weeks and it sees no material impact to its business. google, which discovered the flaw, says the issue also affects other semi conductor firms. microsoft, app

. ♪ emily: i'm emily chang and this is "bloomberg technology." coming up, gopro takes a dive.e speak with ceo nick woodman after the company cuts its forecast and slashes jobs. cryptocurrencies opsware rocky start in 2018. bitcoin slumping as much as 27%, helping drag down smaller rivals. tech firms are dissenting on las vegas for the consumer electronics show where driverless and electric cars are dominating the buzz. first, our lead. gopro missed its fourth-quarter sales guide and signaling that revamped cameras and price increases are not sparking revenue growth. shares tumbled more than 12%, its worst performance in a year. gopro ceo nick woodman spoke to selina wang and denied earlier reports that they hired jpmorgan for a potential sale. take a listen. nick: jpmorgan is in fact our banker, but we have not engaged them to help us sell the company. and, with that said, if there were an opportunity for gopro to partner up with a larger organization that can help us scale the company, scale our brand and reach to consumers, that is certainly something we would consider but i

emily: how big do think e-sports will be?an beings love to watch anything where the best in the world are doing it, and the stakes are high. take something that literally 2.5 billion people do on the planet, and you have an audience ready to engage. and what we are seeing now is the great players a moment to .5 billion players are rising to the top, and the stakes are high. -- those 2.5 billion players are rising to the top and the stakes are high. when you watch our games being played, it's true entertainment. they are the best in the world doing it and the stakes are high. and i think that is going to be big. molly: "rogue one" did half the box office of the force awakens. overall merchandise sales are slower than when disney first came out with the reboot. can the second "star wars" battlefront game do as well as the first? andrew: what they said about our first battlefront game was this is an amazing game, but it needs to be bigger, broader, deeper, it needs a single player campaign, it needs space battles, more complexit

. ♪ emily: i'm emily chang, and this is "bloomberg technology."oming up intel's fourth quarter , win despite disclosing problems with its chip line. why meltdown and specter made little impact on the bottom line. plus, robin hood moves its commission free trading model into the cryptospace. but will its army buy in? that is ahead. first to our lead. intel shares gained about 4% after the company released better-than-expected mornings for the best after the company released been are that it -- better than expected earnings for the fourth quarter of 2017. for now, vulnerability may be helping intel as computer owners retire older systems upgrade. joining us now is our bloomberg editor at large cory johnson. the stock is up. how surprising is it? cory johnson: if this company can grow by 20%, which is what you saw in this quarter, it bodes quite well for this business. the pc business shrunk by 2%, but the margins are much better in the growth and data center in data center was roppingly fast. amazon has great growth. microsoft is even better. all th

. ♪ emily: i'm emily chang, and this is "bloomberg technology."oming up, our conversation with u.s. transportation secretary elaine chao. her approach to regulating autonomous cars. our conversations with the ceo's of arm holdings and turner. a member of congress is calling out apple's ceo over the company's response to batterygate. senators john -- senator john thune speaks out. first, u.s. stocks fell for the first time this year. the s&p 500 index, snapping a six-day rally, that was the longest since october. abigail doolittle is in new york. what brought this on? abigail: with the record highs we have seen for the major averages this year, last year, the averages since 2016. after the big gains, investors stepping back a little bit, especially before earnings season kicks in. that said, we saw some real weakness in the chip sector. down for a second day in a row row, the -- thin a worst since december. there was some pressure. ongoing concern around the chip could be that there has not been a record high since 2000. if we happen to the bloombe

. ♪ emily: i am emily chang and is "bloomberg technology". coming up, big tax and big earnings.oming up, what has been record earnings. plus, a tech empire under one publicly traded roof, will explain. and taiwan may be positioning itself to be the next door in asia.ryptocurrency a crackdown on china and south korea. our coverage from taiwan, straight ahead. but first our lead. a slew of the tech earnings this week. facebook, microsoft, qualcomm, and out for that and apple. it was a common theme in the tech reports this week. the sector knocked it out of the park. -- sharesout for that thatpha that -- also amazon and others hit records after reports, and analysts are expecting the same. joining us now from new york -- bloomberg tax julie for hageman. kathy, i will start with you. let's start with the earnings that you are watching. what are you most optimistic about? >> we are taking our cues from companies like netflix which showed that once you get into the sweet spot -- you seek exponential, accelerated growth. we see this when market shares get 10, 20%, and we see that firms

♪ emily: you have been engaged emily: you have been engaged with this white house.alled president trump and urged him not to pull out of paris. tim: i did, yes. emily: he didn't listen. what does that mean for your relationship with the president? tim: actually, i would say it a little different. i think he did listen to me. he didn't decide what i wanted him to decide, and i think he decided wrong. i think it is not in the best interest of the united states what he decided. but in terms of -- you know, the way that i look at this thing -- and do you interact with politicians or do you not? my view is that first and foremost, things are about -- can you help your country? and if you can help your country and you do that by interacting, then you do it. that country eclipses politics. and so, you know, if there is something that we can work together that helps people in the united states, then of course we would do it. emily: you have other people that are leaving the table though, like bob iger, like elon musk. is the president jeopardizing his relationship with one

. ♪ emily: i am emily chang and this is the "best of bloomberg technology."oming up, twitter's ceo makes his exit. the ceo of uber plans to put the ride-hailing giant on the road to profitability. highlights from his conversation. amazon go is open for business. we open the doors for an inside look at the brick-and-mortar convenience store. first, to our lead. a shakeup for the leadership team at twitter. the ceo has resigned from the company to take the ceo position at a fintech startup. he has his work cut out for him. he will fill a leadership void that has existed since the cofounder resigned as ceo last year, amid accusations of sexual harassment. we got all the details from selina wang. >> that delivers a blow to twitter, especially just at the very early beginnings of their turnaround strategy. several analysts upgraded their company. they are finally showing revenue and user growth. noto did put in place much of the structure they needed to continue this turnaround. some sources have said that this could provide a good opportunity for jackson. he and

emily: let's start with the new smart speaker.hy should people buy homepod instead of amazon echo at this price? tim: what we tried to do is we built something that is a breakthrough speaker first. music is deep in our dna, dating back to itunes and ipod. and so, we wanted something that number one sounded unbelievable. of course, it does a lot of other things, right? and all those are important as well, but we wanted a high quality audio experience as well. emily: you are very focused on how this could reinvent music in the home. will i be able to make a phone call, call a car, order groceries? tim: there are a lot of things you can do with it. you know, one of the advantages that we have is that there are a lot of things that siri knows how to do from the phone. and so, we will start with a patch of those, and then you can bet that there is a nice follow-on activity there as well. emily: let's talk about e-commerce, which is very important to these devices. i can order paper towels on my amazon echo. does this tell us about appl

. ♪ emily: i'm emily chang, and this is "bloomberg technology."oming up, our conversation with u.s. transportation secretary elaine chao. her approach to regulating autonomous cars. plus, we bring you more big names from the consumers electronic show. our conversations with the ceo's of arm holdings and turner. a member of congress is calling out apple's ceo over the company's response to batterygate. senator john thune speaks out. first, u.s. stocks fell for the first time this year. the s&p 500 index snapping a six-day rally, that was the longest since october. abigail doolittle is in new york. what brought this on? abigail: with the six-day winning streak and the record ,ighs for the major averages just a bit of a breather. after the big gains, investors stepping back a little bit, especially before earnings season kicks in. that being said, we saw a real theness in the chip sector, worst two-day slide since beginning of december. report out bearish of china on mobile phone shipments in china. that caused pressure. in one ongoing concern around

. ♪ emily: i'm emily chang. this is "bloomberg technology."oming up, the biggest company on the planet go on a buying spree in 2018? we look at apple's billions of dollars of cash on hand and possible m&a targets. plus, bitcoin's hangover. can the currency regain its peak? and the consumer electronics show is just around the corner. we will talk about who is going and the likely buzz, but first, to our lead. trillione about $2.7 worth of mergers last year the , lowest tally in four years. will 2018 see a new rush of merger mania? when projectionist that amazon will buy yet another major brick-and-mortar business in 2018 on top of its recent purchase of whole foods, and he says that his target. >> the timing on this is difficult. we think it is 2018, but seeing the combination of value is easy. this is not just a revenue grab, this would be -- one piece is a demographic grab. the mom demographic is critical to how amazon thinks about their business. our next guest, says apple will likely get aggressive in the coming year. apple will benk the bi

. ♪ emily: i'm emily chang, and this is "bloomberg technology."oming up, twitter's ceo makes his exit. while the top job at sophia. plus, uber's ceo plans to put the ride-hailing giant ahead. and we go to taiwan to get a behind-the-scenes look at companies ushering in the next tech breakthrough. first, to our lead. a huge shakeup for the leadership team at twitter. coo anthony noto has resigned to take the ceo position at social finance, or so fi. he's played a leading role at the company and has his work cut out for him at sofi when he takes over in march. he will fill a leadership void after fallout from accusations of sexual harassment. for more on how this all went down, we are joined by bloomberg news tech reporter selina wang. how did this all play out? how big a loss is this for twitter? reporter: they certainly delivers a blow for twitter, especially at the beginnings of their early turnaround strategy. they are finally starting to show some revenue and user growth. that being said, noto did put in place much of the structures they needed

emily:. had to say specifically about facebook -- here is what he had to say specifically about facebook. >> the network effect is truly unprecedented and transformative, but it is also unsustainable. years toacebook 8.5 reach the first one billion users, and half that time to reach the second billion. at this rate, facebook will run out of people to convert in less than three years. [laughter] emily: george soros went on to say that facebook and google foster addiction and risk and ingering -- risk empower date-based service -- empowering state-based surveillance. bloomberg. ♪ alisa: i'm alisa parenti in washington, and you are watching "bloomberg technology." let's start with a check of your "first word news." white house officials say president trump will sign an immigration plan that would give as many as 1.8 million immigrants rot into the united states -- brought into the united states as children a pathway does is inject -- pathway to citizenship. trump will deliver the keynote address

emily what is your outlook? been on a high, how long can this keep up, it still keeps going up with some volatility here and there but what do you think the general trend will be? >> we made microsoft the topic, last year was a real catch up in terms of the race in the clouds in terms of microsoft and amazon. we think this year there is a lot more advanced computing workloads will move to the cloud. microsoft is well -- is on the software side and enterprise, both of the structure side to partner with their customers and drive much larger deals at much better margins which will lead to much better cash flow so we think that is just getting started. it is a generational shift that microsoft is at the heart and soul of, so we really like it, that is the short answer. emily: are you worried about your children's smartphone screen time? some apple shareholders are. if you like bloomberg news, check us out on the radio, this is bloomberg. ♪ ♪ parenti inm alyssa washington. here is a check of your first word news. the

. ♪ emily: i'm emily chang and this is "bloomberg technology."itcoin tumbles, its worst decline since 2015? we catch up with arianna huffington, what she has to say about current ideal plans and the me to movement. and one of apple's is getting slammed for harsh conditions. there hasn't been a a selloff like this in bitcoin in months. less than a month ago bitcoin was trading at almost $19,000, rival cryptocurrencies are also doing the pain here it to discuss that and cover all of the news in cryptocurrency, we correspondent and also cory johnson. what is boeheim the pressure? >> rampant speculation by a handful of traders, an interesting piece that we have been suggesting that a lot of the rise in bitcoin years ago was just two traders, or maybe even one. there was a limited amount of people speculating on this, what when those speculators leave the market, you see a decline in price. it's also about the functionality of these cryptocurrencies and that's what you mentioned ripple, i think it's amazing that ripple in particular is down so much af

emily: thank you for joining us.g up, mark zuckerberg has made it a personal goals to fix facebook in 2018. we will discuss crypto currency as well. we will bring you our best interviews with the week including blackberry ceo john chen on their company's partnership. this is bloomberg. ♪ twitter had comments by world leaders on their blogs. and removing their controversial tweets would hide important information. the company says it reviews tweets in the political tweets hat defines them and has our rules. zucker burg gave optimism. how he post in which will correct persistent problems. and dogged his social network. his interest to study the ositive and negative networks. joining me now. and guest host for the hour. zuckerberg didn't explain how it would be incorporated, but what does this mean? >> this is important to this is the context of what his goals are for 2018. the ultimate backlash is at a high of spreading fake news. >> you can bring the power back to the people. >> it is a debate and then facebook would

emily: how did larry respond?ross the company, there is a real seriousness and taking to heart the message. google is actually a very ethical company. the real elephant in the room is the business model. the advertising-based business model means all of these attention-based companies, youtube, snapchat, twitter, facebook are all in the business , of capturing people's attention. youtube's stated goal is how do we get billions of hours? emily: did he have knowledge that? did he share your views or sympathize with them? >> i don't recall specifically. the conversation likes to get avoided because it is a uncomfortable thing to look at all stop usually, -- look at. usually, it is a innocuous thing. people want to know, how much time are people spending on the web versus in an app? s -- s and as you start measuring how much time people spend in the web browser, all these 20-year-olds start working to try to maximize how much time they are spending. you measure what you measure and you ask yourselves what do we , actu

i'm emily chang.st over two weeks ago when facebook should sent shockwaves through the industry about its new feed algorithm. this comes at a time when two thirds of americans report getting some of their news from social media, and one person not happy with the new chain is audrey cooper, editor in chief of the san francisco chronicle who recently penned an op-ed to ceo mark zuckerberg, sink you -- saying you are making the , countries absolutism even worse. facebook likes to say it is a creative company, but surely, there is a more creative solution. i would like to welcome audrey cooper with us. us, max, who has written extensively about facebook. audrey, you did not hold back. it certainly sounds like you didn't. audrey: i thought i was holding back at the time, but maybe not. emily: facebook says, how big of a difference is this for a publisher like you? audrey: over the last year, we have seen facebook traffic go down 60%, so this is a long time coming. our website is monetized through subscript

. ♪ ♪ emily: i am emily chang.flix turns in its best performance ever in the fourth quarter adding more than 8 billion streaming customers. we will break down the results. plus amazon go is open. we open the doors for an inside look at the tech giants brick and mortar convenience store. facebook makes a critical admission regarding its own societal impact. why the social media now says he can have a negative impact on democracy and what it is doing. netflix turns in a big beat. the company's biggest quarter ever. subscribers additions be citations pushing the company's value above $100 million for the first time ever. it closed 2016 at a market cap of just $53 billion. reporter lewiss shot joins us from--lucas shaw joins us from new york. netflix's thesis on spending more money on original ramming -- original programming continues to work. look at the slate of shows that they released. they had a new season of stranger things, the crown, new shows in the punisher, godless and mine hunter. they had this new movie, b