. ♪ caroline: i am caroline hyde, this is "bloomberg technology." what social media giant is back in the u.k. ahead of its potential $25 billion ipo. plus, the jeff sessions files. the trunk cabinet pick answers tough questions. it covers encryption and integration and hillary clinton's emails. we break down the headlines. and alibaba's offline that. -- bet. jack ma is betting he can revamp china's retail industry. first, to our lead. snap has chosen london as its international headquarters. the parent of the pop where does popular snapchat as to cap -- messaging app. it was a surprising move for a u.s. company. in recent months, the practice of tech giants to move to more tax friendly areas has them under scrutiny. he spoke exclusively on monday regarding competition. >> what we are aiming at his -- is behavior. the things that happens, if one company or a group of companies are given state aid not available to other companies. that seriously makes the playing field not level. that disables fair competition. caroline: smart move by snap? alan: they

♪ >> i am caroline hyde. this is the "best of bloomberg technology" where we bring you all of our top interviews this week from tech. the tech earnings season heats up, alphabet, microsoft, intel reporting. this is the dow clocks in above 20,000. plus, verizon targets an acquisition, but will it help verizon keep pace with at&t? cisco swoops in, how a $3.7 billion acquisition terminates the first major tech ipo of 2017. first, a huge week for tech earnings. this of course in a week where the dow average marched beyond 20,000 for the first time. let's kick things off with alphabet. take a listen. >> you have to take a step back. here is a company that has massive levels of growth and yet people are finding those little areas. the problem is always expectations. the ad click numbers are clearly a challenge for them. what's good is we are seeing them spend money on some other pests that i think will pay off. in the short term, there is extra money being spent, but they have very interesting opportunities. alphab

. ♪ caroline: i am caroline hyde. this is the "best of bloomberg technology". we bring you all of our top interviews. coming up, the president elect meets the press. donald trump faces reports from hacking to the media itself. it is her job to makeglobal newh titans play by the rules, our exclusive interview with the eu competition commissioner. our interview with mary barra, ahead. president-elect donald trump tackled one of the most controversial issues plaguing his administration, russian hacking. he has previously cast doubts on the accuracy of u.s. intelligence. he did again wednesday. >> i think it was russia, but we also get hacked by other countries and other people. >> if putin likes donald trump, i consider that an asset, not a liability. we have a horrible relationship with russia. russia can help us fight isis. caroline: trump vigorously denounced reports that the russian government has gathered compromising information about him. we want to take a closer look at the hacking itself. and the u.s. intelligence say it was backed ussian intelligence. fi

♪ caroline: i am caroline hyde. this is the "best of bloomberg technology". we bring you all the top interviews from this week in tech. coming up, netflix's crown jewels come out with a huge beat this week. we will break down the case against qualcomm as the fight over licensing heads to court. and why a judge decided not to arrest samsung's heir apparent. and what is next for south korea's most viable company. but first, netflix reports the biggest quarter ever this week. the stocks fall on the news that netflix added more than 7 million subscribers globally to finish with 94 million members, beating analysts estimates. on the domestic and international level. the company credits the popularity of original content. including "the crown" and more seasons of "gilmore girls" and "black mirror." bloomberg editor at large cory johnson joined us to break down the numbers. cory: not too long ago it was a company that rented out dvds and then movies with a little original content. now most of their spending is going towards original content. including things like "l

caroline: i am caroline hyde. this is the "best of bloomberg chnology". coming up, the preside elect meets the press. donald trump faces reports from hacking to the media itself. making sure tech titans play by the rules, our exclusive interview with the eu competition minister. our interview with mary barra, ahead. president elect donald trump tackled one of the most controversial issues plaguing his administration, russian hacking. he has previously cast doubts on the accuracy of u.s. intelligence. he did again wednesday. >> i think it was russia, but we also get hacked by other countries and other people. >> if putin likes donald trump, i consider that an asset, not a liability. caroline: trump vigorously denounced reports that the russian government has gathered compromising information about him. fireeye s t thamongsfirst firms todentify this group. take a listen to our conversation with laura galante. >> what we have seen is a variety of targets, journalists in chechnya -- so a variety of different targets we have seen this group go after. they will

caroline. it's odd we see a more positive environment coming from the performances from donald trump but on one side he's talking against the at&t-time warner tie-up. what do you think? >> i think it's going to be a positive environment if the president implements the things he's talked about doing and if congress will support him on it. if they end up lowering taxes, if they do repatriation of enormous swells of capital that have been abroad for the last umpteen years, that augurs well m&a activity. ve corporations will have money, we've seen them do buybacks, i think acquisitions is a fertile area to put money to work. >> it could mean exits for startups you helped spoth. it's interest also the talk of trade. we heard allen there talk of it's potentially the robots that are the key issues of job. how much are you worried about barriers an borders coming up? >> you know, there are concerns, i think there's concerns both in being able to sell to customers overseas and buy goods and integrate th

i'm caroline hyde. president-elect donald trump said he would repeal the affordable care act speaking at a news conference on wednesday. we explore the changes in the industry under the ground breaking law. we will bring you that data in just a moment. investment has exploded. venture funding rose. that money is going toward things like electronic health records. and major companies want a piece of the action. ibm has spent $4 billion on related acquisitions. general electric expected its health care unit to grow more than 20% over the next two years . the industry is bracing for a in health care policy. donald trump promises those changes will come as soon as possible. >> as soon as our secretary is ,pproved, almost simultaneously it will be repealed and replaced. will there be a slowdown and technological breakthroughs? washington,ow from and with at accolade, me in san francisco, the ceo of a start of that provides infrastructure technology for the health care industry. will, in fact, the affordable

. ♪ caroline: i am caroline hyde. this is the "best of bloomberg technology," where we bring you all our top interviews this week from tech. coming up, the tech earnings season heats up, alphabet, microsoft and intel reporting this week. -- cis the dow clarkson locks in above 20,000. verizon targets charter communications, but will it help verizon keep pace with at&t? and cisco swoops in. the ceo told us a $3.7 billion acquisition terminates the first major tech ipo of 2017. first, to our lead, a huge week for tech earnings. alphabet, microsoft, intel, qualcomm all reporting. this at a time when the dow jones was beyond the 20,000 level for the first time. let's kick things off with alphabet reporting on thursday. our conversation with adam burke . take a listen. >> you have to take a step back. here is a company that makes massive amounts of money, has massive levels of growth and yet people are finding those little areas. the problem is always expectations. obviously we will talk more about this, but the ad click nu

caroline: beautiful valuations. cory: i would call them disgusting valuations because the underlying companies are not getting better at creating cash. is torpose of business sell stuff for more than costs and have money left over. that is a free cash flow. the stocks are going up but the free cash flow is not. if the market was reflecting the value of the company, how much free cash flow it was creating, that purple line would march along with the stock. in an overvalued market, the stock is still up, the free cash flow still down so the difference between the price and that yield, it indicates a problem. the businesses underlying the stocks valuation have not caught up. if this turns around, and free cash flow -- caroline: it is about 3.5 at the moment. cory: yes. it is true these are growth stocks you'd quite often they are being managed for revenue and not-for-profit yet. but the belief that things are going to get better, and that the new administration, casual get repatriated -- cash will get repatriated, but

♪ caroline: i am caroline hyde. this is "the best of bloomberg technology," where we bring you all our top interviews from this week in tech. coming up, the president elect meets the press. donald trump faces reports from russian hacking to the media itself. plus, it is her job to make sure tech titans play by the rules. our exclusive interview with the eu competition minister. and driving the future in detroit. our interview with general motors chairman and ceo mary barra, ahead. in his first formal news conference since winning the election, president elect donald trump tackled one of the most controversial issues plaguing his administration this week, russian hacking. he has previously cast doubts on russia's role in the u.s. election and the accuracy of u.s. intelligence. he did so again wednesday. mr. trump: i think it was russia, but i think we also get hacked by other countries and othepeople. if putin likes donald trump, i consider that an asset, not a liability. we have a horrible relationship with russia.

i'm caroline hyde. president-elect donald trump said he would repeal the affordable care act speaking at wednesday.erence on we explore the changes in the industry under the ground breaking law. we will bring you that data in just a moment. let's get on to some key guests. will there be a slow down in technological breakthroughs, intervention and investment if obamacare is repealed and replaced? inning us now is a partner accolade and investment funds focused on health care and technology. with me in san francisco, the ceo of a start of that provides infrastructure technology for the health care industry. welcome to the show, both of you. will, in fact, the affordable care act to be fully repealed? can it be fully repealed, in your view? >> it's pretty unlikely it is fully repealed without an alternative. over 20 million people have been added to the system, many of which come from states that trump won. before affordable care act, more than 14% were insured. now less than 6%. unless there is a viable a

. ♪ caroline: i'm caroline hyde. this is "bloomberg technology." amazon lining up job offers for u.s. workers. plus, the $85 billion dollar elephant in the room. at&t objects the with the president-elect at trump tyler, but the merger with time warner never came up. and the next let's -- and the next let's blueprint. -- netflix blueprint. brazil becomes the latest target in a globally ambitious plan. now to our lead. amazon pledging to create 100,000 new jobs in the u.s. over the next 18 months. this follows similar announcements from tech heavyweights like alibaba and ibm. amazon has been growing rapidly, but could this announcement keep the company on the right side of the incoming trump administration? speaking wednesday at a news conference, the president-elect once again emphasized the importance of job creation. mr. trump: we are going to create jobs. i said that i will be the greatest jobs producer that god ever created, and i mean that. i am going to work very hard on that. caroline: spencer covers amazon for bloomberg technology and joins

caroline: let's dig into button. we understand you have a new funding round, $20 million on board, $34 million in total. talk to us about the expansion plans for this business. michael: it is really exciting. we started to validate where we see issue in the market today, and what button is trying to solve, linking structures is broken. when you utter the words i want during the desktop era, you would follow that with a query of google. if you say i want in today's world, you are often opening an app to solve that problem. this paradigm has shifted. what hasn't shifted is the ease-of-use of creating links to build partnerships, experiences that solve what consumers need and what they are looking for. if you do a search result on a product page or a link from retailers, or looking for hotels and making a booking, so what this $20 million will do is to invest in the team. expand internationally, and double down on the strategy and performance we are starting to see come to the platform. caroline: on a day when we see a

. ♪ caroline: i am caroline hyde and this is "bloomberg technology." coming up, it is official, donald trump is america's 45th president. apple bites back, the most vital -- any in the world first to our lead, a new era in the united states. it was inauguration day for donald j. trump. the new york businessman has become president of the nine states. -- of the united states. kevin, we have been watching all of today's events. there was some lip service paid to the technologies of tomorrow. >> he is vowing to immediately get to work during a very short inauguration address. he vowed to get the ball rolling on a host of issues from rolling back key regulations like a , increasing infrastructure spending and lowering taxes for the middle class. he vowed to be president for all americans, but again, he presented himself as a political outsider and someone who transcends political party. fashion hesic trump ended with a promise to make america great again. e: how did this resonate with the american public? >> i was speaking to key aides to democratic member

caroline, that is hans bishop, ceo of juno therapeutics. caroline: such a crucial conversation. eric all over that event for us. lindahl come is in talks to sell towers in german for $800 million. the towers have been tagged. the deal could be finalized as patient. soon as next quarter. coming up, ces may be wrapped up, but there are lingering takeaways from the event. we will discuss next. this is bloomberg. ♪ caroline: we just wrapped up ces this year and big announcements, from autonomous cars and ai. michael, what really grabbed your attention? michael: the big winner at ces was amazon with alexa. there are over 1000 different companies that are integrating alexa into their products, everything from smart refrigerators to phones to cars. the other thing is there is tons of car tech. self driving vehicles, ways in which the automobile will change her experience inside the car, but what was most surprising was companies that are not tech companies presenting. the carnival ceo, arnold donald, showed a new set of sensors that guests will wear throughout the cruise to change th

. ♪ caroline: i'm caroline hyde, this is "bloomberg technology." coming up, the tech earnings parade marches on with alibaba leading the charge. how the bets on content and the cloud is paying off for china's e-commerce giant. plus, new market highs for the s&p and nasdaq. we will break down what stocks are leading the game. and the verizon-yahoo! deal is still in play, but now going into overtime. we will look into potential impacts on the acquisition of -- after verizon's worst performance report since 2014. alibaba shares popping after they purported -- reported better-than-expected quarterly results. the company lifted its yearly sales forecast. spending in the world's second-biggest economy stays strong. alibaba's new ventures are bolstering the giant. tim writes for bloomberg. selena, first to you. dig into the nitty-gritty for us. selena: it's almost too good to be true. they raised sales forecasts. something interesting is that the core business, it actually did not grow very much, less than 10%. a lot of the growth and reasons why investor

caroline: i am caroline hyde. this is the "best of bloomberg technology," where we bring you all of our top interviews from this week in tech. coming up, the u.s. hits russian officials with sanctions over what washington says was an unprecedented attempt to interfere with the presidential election. plus, the rise of the robots with u.s. jobs in the crosshairs. we'll discuss whether humans and a.i. can peacefully coexist and we'll take a look at the biggest tax break news from 2016, from from personal a.i. assistats to reusable rockets becoming a reality. but first to our lead, the obama administration has imposed sanctions against russian officials and state institutio in retaliation for hacking democratic party eils. it's the first public retaliation for what u.s. officials said was an unprecedented attempt to interfere with the 2016 presidential election. we spoke with former cia analyst and now senior policy adviser for the counter extremism project. along with bloomberg's foreign policy reporter nick warden.

this is bloomberg. ♪ caroline: this "is bloomberg technology." i am caroline hyde. back to the top story. president trump's agenda. event with businesscaroline: thg technology." i am caroline hyde. back to the top story. leaders showing that job creation is a top priority. tech companies around the world companies are eager to align with the administration. foxconn and ibm. foxconn may build a u.s. of $7y for upwards billion. it could create tens of thousands of jobs. then, ibm. it pledged to hire 25,000. they are cutting jobs. it pledged to hire 25,000.back t david kirkpatrick. fly joining us is our gad columnist and with me on set is editor at large is cory johnson. let's go to ibm first. being accused of hypocrisy here. ts are notrnative fac limited to the white house press meeting, apparently. president trump talking about adding jobs, by the same time, the company has been cutting jobs, and cutting them aggressively. if you look at the number of employees for the company, it looks really good with the company saying they would be hiring more in the u.s. nonethe

caroline: this is bloomberg technology. can the chairman deliver one million new jobs between heightened tensions between beijing and the president-elect? our exclusive interview with gm ceo ahead. it is their job to make sure tech titans play by the rules. stay tuned for our conversation with the eu competition commissioner. first to our lead. alibaba group chairman jack ma met with president-elect donald trump monday. ma said the men discussed how alibaba is focused on creating one million u.s. jobs in five years. american selling through the alibaba platform to china and asia. we mainly talk about small business and young people and american agricultural products in china and we think the china-u.s. relationship should be strengthened, more friendly. caroline: ma's visit is the latest from a growing list of business leaders eager to work with the president-elect. david westin spoke up woodberry bar.- caught up with barry >> there is a lot of opportunity. we have more in common with the administration than we have at odds

this is bloomberg. ♪ caroline: this is "bloomberg technology." i am caroline hyde. let's return to our top story. qualcomm is in hot water with u.s. -- the u.s.. people familiar with a matter of the u.s. antitrust division filing against a qualcomm, a lawsuit saying qualcomm forced apple to use its processes. this was in return for lowering the patent royalty it charged. take a look at the investor reaction. shares plunging dramatically in the session, closing down about 4%. that was $4 billion that was wiped off in terms of market cap. before the story broke, we met inwith qualcomm's chairman davos. we asked how they are reconciling the incoming administration. paul: we may be democrats and republicans, but we are all americans, and we want the administration to succeed. in democracy, there are differing points of view. we want more jobs. we want great trade agreements. we were really happy when the president tweeted about our oneweb satellite system. there are a lot of areas where we see alignment, and where there is alignment, we will work hard together, and when

caroline: it is amazing. as far as the market is concerned, this used to be a gadget where mobile was, and drones, but it seems to become an auto show no. jamie: it is one of the biggest auto shows in the world. an important day on the calendar every year. but it is still a gadget show and that it is cars and gadgets. really cool info-tainment things in the dash, or autonomous vehicles that are not ready for prime time or public roads, but people want to see it. it was two years ago this week that keith nautin was in las vegas and had dinner with mark fields and mark said, in five years we will have an autonomous car on the road. that raises still concealing -- ensuing. we are still on the backstretch, and a few years from anything hitting the market, but there is a lot of jockeying for position. >> are you seeing some interesting new software companies? a lot of the wealth creation will be from the enabling technologies. are you seeing interesting new software companies? jamie: supply is important to develop

♪ caroline: i am caroline hyde. this is the "best of bloomberg technology," where we bring you all our top interviews this week from tech. coming up, the tech earnings season heats up, alphabet, microsoft and intel reporting this week. the dow hit above 20,000. verizon targets charter communications, but will it help verizon keep pace with at&t? and cisco swoops in. the ceo told us a $3.7 billion acquisition terminates the first major tech ipo of 2017. first, to our lead, a huge week for tech earnings. at-bat, microsoft, intel, qualcomm all reporting. this at a time when the dow jones was beyond the 20,000 level for the first time. let's kick things off with alphabet reporting on thursday. take a listen. >> you have to take a step back. here is a company that makes massive amounts of money, has massive levels of growth and yet people are finding those little areas. the problem is always expectations. obviously we will talk more about this, but the ad click numbers is clearly a challenge for them. what's good is we a

now we go back to caroline hyde in san francisco. caroline: a fascinating conversation. so timely. thank you. deutsche bank is telling its employs to put down their phones. the bank is battling text messages. a person with knowledge on the matter says it is an effort to improve compliance. up next, first impressions of the nintendo switch. we get our hands on the gaming console and hear from nintendo america president about how it fits into the company's strategy. and a reminder that all of our episodes are live streaming on twitter. check us out at 5:00 p.m. in new york. this is bloomberg. ♪ caroline: to the gaming world. nintendo launched its new console, the switch. $300. the price came as a surprise to some analysts, who had expected to be less. we caught up with the end -- the nintendo america president and asked him how the company justifies the higher price tag. >> we believe the price point is justified. me give you a few data points. and thepresales, feedback we are from retailers is very positive. a number of the presales have come up and had to come down based on the e

reporter: i think caroline has a question. caroline: thank you joining us. i'm going to take it back to technology, if i will. we were talking about trade policies, and it seems as though , at the moment, donald trump is trying to fight cheap labor abroad with trade tariffs, but it's not the actual threat to jobs. >> i don't think that the government response ability. responsibility. we have to make sure government isn't putting undue burdens on companies. we can at least make sure that we are no longer the country with the highest corporate tax rate in the developed world. can make sure we are no longer putting $2 trillion in regulatory compliance costs on americans everything will year. all those costs get passed down to america's poor middle-class, who pay through higher prices, diminished wages, underemployment, and unemployment. there's a lot we can do to increase the competition of american manufacturers and american employers and to get more opportunities to american workers. issues and on those reducing areas that the government itself has put in pla

." ♪ caroline: i'm caroline hyde. this is "bloomberg technology." , thelue out with earnings stock dropped over 19 quarters. we will break down the earnings scorecard. plus we will hear from a silicon valley veteran. ceo joinsard member us with his outlook on the industry as donald trump takes office. alibaba goes for gold. how it scored the biggest sponsorship deal in olympic history. but first, to hourly. shares of ibm lower on the back of the company's fourth-quarter earnings. the bloomberg terminal is showing how the trading after-hours is off by more than two percentage points. the company announced corley earnings that beat analyst estimates and the full-year outlook for 2017 was better than forecast. things like computer hardware and software systems have been steadily eroding and investors are waiting for those declines to be offset by growth to newer businesses like cloud computing and artificial intelligence. let's bring in our guest, along withon skype cory johnson, right here in the studio. go through thes

. ♪ caroline: welcome back. the chinese financial technology company controlled by billionaire jack ma is buying u.s. money transfer service moneygram international or a whopping $880 million. the deal comes at an opportune time for moneygram. a white house spokesman told reporters thursday that president trump may call for a 20% tax on imports from mexico. the announcement calls after mexico's president, enrique peÑa nieto, reaffirmed they will not pay for a border wall. trump previously said he would consider halting money transfers from mexico, which accounts for 10% of money gram's transactions . microsoft's second-quarter sales and profit exceeded analyst' projections. shares up in extended trading, when you are looking at the bloomberg. it's the first earnings report for microsoft since the company completed its $26 billion purchase of linkedin. joining me is kerry johnson, -- cory johnson, and still with us is bob o'donnell. relatively across-the-board -- >> the azure business continues to grow for them.

caroline: apologies there. >> yes. caroline: let us know about how you see the off-line to online world. our some of the players getting it when it comes to online retailing? evolution seeing an where people are starting to recognize that there as an importance investing in new technology, where is 10 years ago, you had people establishing a viewpoint that mobile or internet was going to be a short-lived trend. in walmart's acquisition of jet, you are seeing companies really double down on bridging a strategy that allows them to be players in the online world. one of the interesting ones was an investment by staples, another cool example of two companies working together that if you thought back, you would have a difficult time predicting that would happen. helps theyour app integration of two apps. where do you see that going? and a half year old company, we are trying to correct some issues we see as broken in the mobile echo ecosystem. ebay and other companies within our marketplace, the objective is to help them fi

caroline: what struck me is the lack of a mention of china. turkeyis going well and and china destined to be a slowdown area. are they right to be focusing on china or switching attention to india a little bit more? guest: he want to sell phones profitably in the -- you have to look at the market where is the most upside. market thatugher they have done well so far. -- where the bigger growth will come from. caroline: will india be the right country given the average earnings power is less than china, do they have as much of an opportunity? look at the growth of smartphone adoption that will grow but in india that will almost double. at each of these markets the middle class and the upper-class are still very large markets, even bigger than the u.s., a lot of upside. caroline: our guest will be joining us later in the hour and we will be sticking on apple, the top story throughout the show. back to another story that continues to spark controversy. travel ban.'s amazon's ceo said his company is stateg hand-in-hand with officials on legal optio

caroline: that was our analysts. two years after leaving google, andrew rubin is prepared to take on the smartphone industry. he is prepared to announce a new company called essentials. the company will marry his back out and software with artificial intelligence and consumer hardware. joining us is mark berman, who broke the story. how do we know this will work? mark: we don't know if it will work but we know he is getting a lot of money for his incubator program. they have the best people in the business working on this, they have former apple and google recruits. there are about 40 people on the program right now. caroline: it could be a new system, not just the software. mark: it is being described to us as an entire hardware platform. he wants to get in different places of your life, sorting out the smartphone, and he is also looking at the smart home. caroline: as if competition was not stiff enough. great scoop for us today. thank you. coming up, almost double a company's valuation. we will talk with their cof

. ♪ caroline: i am caroline hyde. this is the best of "bloomberg technology," where we bring you all the top interviews from this week in tech. coming up, netflix's crown jewels. the company out with a huge beat this week as new customers flock to their original content grade plus, the chipmaker in the crosshairs. we will break down the case against qualcomm as the fight over licensing heads to court. and why a judge decided not to arrest samsung's heir apparent. and what is next for south koreas most valuable company. but first, to our lead -- netflix reports the biggest quarter ever this week. the stocks soared on the news. netflix added more than 7 million subscribers globally to finish this year with nearly 94 million members, beating analysts estimates on both the domestic and international level. the company credits the popularity of new original content, including "the crown" and new seasons of "gilmore girls" and "black mirror." bloomberg editor at large cory johnson joined us to break down the numbers. cory:

caroline: i love that. mark but outside of that, we : haven't seen major advertisers fully embrace twitter and in fact at the margin seem to be pulling away from it. that's a problem. caroline: twitter doesn't look pretty despite the tweeter in chief as you call him. more on the politics side, you're saying this is still a bit of concern when it comes to the fang investment, but overall, maybe one of the surprise causes that actually trump doesn't change the tech outlook at all. mark: two things. one, clearly there has been a rotation towards new areas. this has been a very slow growth economy for a while and so premium growth stocks like the fang names, internet names, high-quality have outperformed. ones, now the rest of the economic growth seems to be ticking up, i get the point that you just less of a need to pay for premium and growth because there's growth in other parts of the economy. in terms of whether trump would have an impact on the internet stocks, you know, it's unlikely but there are two are

. ♪ caroline: i am caroline hyde. this is bloomberg technology. the tech surprise stories of 2017. we discussed the potential winners that investors should keep an eye on. a car that talks to your house. we head to ces and talk cloud control. as cyber security concerns surrounding russia are front and center, we hear from the former cia director on the president-elect's approach. first to our lead. tech sector surprises of 2017. amazon will undergo a major investment cycle. customers that investors have worried about original content. they could shut out big bucks and still boost its margins. the company says the number of merchants using its logistics services is up 70%. the virtual assistant makes waves at ces. for more on amazon and the rest of the top tech surprises, we are joined by mark. great to have you. let's kick it off with amazon. you say the money can still come in in terms of profit. >> the one big difference between amazon today and 10 or 15 years ago is they have amazon web services, the cloud service, 10xh has margins 10 ask -- greater than its core retail services

caroline: thank you very much. coming up, fitbit struggling to maintain momentum for its fitness tracker and the stock is taking a hit. more details ahead. this is bloombeg. ♪ caroline: fitbit to having a rough day. the company is in amazing 6% of its workforce. 110 jobs because of falling demand. inour-year revenue grew 17% 2016. down from the previous cost of 26%. what this means for the future of fitbit later in the show. --cks showing over showed coming up we have a ceos speaking out against resident trump immigration orders. venture this affect capital? we will hear from venky ganesan next. ♪ i've spent my life planting a size-six, non-slip shoe into that door. on this side, i want my customers to relax and enjoy themselves. but these days it's phones before forks. they want wifi out here. but behind that door, i need a private connection for my business. wifi pro from comcast business. public wifi for your customers. private wifi for your business. strong and secure. good for a door. and a network. comcas

caroline: it is interesting. sales are still up. you are seeing earnings, despite marketing, still beating. it looks as though the market is liking it from a sharing point of view. the cost of all this, not just of marketing, but $6 billion being promised to spend, is this bells anding alarm long-term? >> it is a way to see where the content cost is happening. netflix said in the press release that gross margins don't show you what they are. this is hollywood. it shows you whatever cost they want to show. they said that will is going on with this thing was the recognition of content costs, not the actual content costs. there was one number. you can see it trading up. everyone is ignoring me. they spent about $100 for every new subscriber they got. they will have to keep those subscribers for 35 years. that is not feasible. content cost has to come down. the cost person's driver has to come down. can still make inroads into countries they are big yet. if you look at the u.s., 50% of broadband homes. far less if you're looking at the

caroline: welcome back to "the best of technology." i'm caroline hyde. security is emerging as a major concern in 2017 and came to a head at the cybersenate hearing where russia was front and center. top u.s. intelligence officials stood firm on their conclusion that russia was behind hacking attacks during the presidential election. intelligence officials said only russia's most senior officials could have authorized the disclosures that happened during the recent election. we spoke with bloomberg politics reporter bill ferry from capitol hill for the latest. bill: they said that they have the three spy chiefs who head on the hill said they have more confidence than they did in october when they first released the report saying russia was behind it, that that in fact was the case. and they pushed back quite a bit against some of the public criticism they received by donald trump who said earlier this week that a briefing had been delayed and thought it was they still had to build their case. the spy chiefs on the hill made clear today they think they ha

caroline: this is an ongoing scene. south korea last month seem to be fighting to the tune of less than $1 billion. cory: it hits at the heart of the business model for qualcomm. part of this is inventing chips they think are great, then making licenses for people to install those chips. they gained influence by having a standard written specifically for qualcomm chips. this does get to the heart of the model, the relationships they have with companies they don't, and there is no one bigger than apple. caroline: it is a special model that qualcomm has actually developed here. how much can i fight this in the court? ian: the record is also flawless. they never lose. it sounds, when you look at the headlines and trouble they have had over the years, they have only ever lost one case against qualcomm five or six years ago. everything else gets here after year, they do a deal -- to pick up on what cory said, what the license, the fundamentals are going to do, what happened with the chips and chip design, that is another bit

on xfinity x1. ♪ caroline: welcome back to "the best of bloomberg technology." i am caroline hyde. this year's $85 billion deal between time warner and at&t has many wondering if mergers like this will be the new normal in 017. network owners are under growing pressures they continue to lose customers to online services like netflix. so has cable tv reached a tipping point? we put the question to bloomberg editor at large cory johnson and gerry smith, bloomberg news media reporter. gerry: you think about the television industry, it is like a slowly melting ice cube. there are still about 98 million people in the u.s. that subscribe to pay television, but it loses a couple million subscribers each year. and eventually, you know, media companies look around and say this is not an industry that is growing anymore. maybe we need to partner up and find someone, whether it is another distributor, or do a merger with another media company potentially. everyone is looking around in the fast changing landscape and looking for some security. caroline: not an industry that is growing, tv, but

caroline: this is bloomberg technology. i'm caroline hyde. let's had back to the biggest tech trade show of the year. ces takes over las vegas and offers an early them set atop tech themes to watch from household items to wearables. this year, it is all about driverless car technology. my guest coast get -- guest host for the hour jointly. get us up to speed with what the buzz is like and how does it compare to last year? you've talked about driverless cars, auto show west is what it is all about. if the auto industry can manage to get outside of the donald trump layer come of that is. the other thing we are hearing a lot about is personal digital assistants. how far are they pushing into our lives and into our homes? how much more can they do and how much of this rivalry between amazon, they are really kind of the leader. have come out in the last couple days with comments about how well they did at the end of 2016. typical amazon, having given us no specific numbers other than telling us how wonderful and how much demand there is out there.

♪ caroline: i am caroline hyde. this is the "best of bloomberg technology". netflix's groundrules, a huge beat this week. down the case against qualcomm as the fight over licensing heads to court. decided not to arrest some signs heir apparent. netflix reports the biggest quarter ever this week. netflix added 7 million subscribers to finish the year with 94 million members, beating analysts estimates. thecompany credits popularity of newcomer original content. but the cost of this additional investors' is one of chief concerns. cory johnson joined us to break down the numbers. cory: it was dvds, then movies with a little original content. most of their spending is going towards original content. in their ownow avengers, which they were called the defenders. they will build a mountain of original content. they have spent a fortune on marketing, the biggest spend they have ever had. the marketing spend was greater than ever before, showing an increase. 11 point 5% of revenue, and the number seemed to be coming down. what they are doing with a lot of that money