tv With All Due Respect Bloomberg December 16, 2016 5:00pm-6:01pm EST
during the election but he confirms it was done at the highest levels of the kremlin. mr. obama spoke of his last news conference of the year. unprecedented move north carolina's outgoing governor has signed into law a gop backed bill stripping the incoming governor of some of his powers. suecooper is threatening to pat mccrory, who conceded the race a week ago. a $25s. is offering million reward for information leading to the whereabouts, arrests or conviction of an islamic state leader. that is more than double the 10 million previously offered. he is said to be responsible for thousands of civilian deaths in the middle east, japan and other areas. according to three people familiar with the matter, mccormick was i'd earlier as a possible treasury secretary.
global news powered by 2600 journalists and analysts in 120 countries. this is bloomberg. bloomberg technology is next. ♪ >> i'm caroline hyde. this is bloomberg technology. president obama vows to retaliate on the election hack and urges donald trump to take the kremlin's actions seriously. we will have more on obama's year-end news conference. and apple's $14 million in back taxes forcing changes to international tax laws. we speak to alex webb.
and german hotel bookings all debut.climbing in its will be company's edge be enough to woo u.s. investors? to our lead. president obama vows the u.s. will take action against any foreign government that metals with the election. in his final news conference he reiterated russia was responsible for hacking the democratic party in the run-up to november 8. intelligenceniform assessments, the russians were responsible for hacking the dnc consequence, it is important for us to review all elements of that and make sure that we are preventing that kind of interference through cyber attacks in the future. donald trumpever
has repeatedly dismissed experts reports about russia's role in the dnc hack claiming democrats are seeking to delegitimize his win. what are the risks of ignoring reports of russian's cyber tactics? policy us now, cyber expert, welcome to the show. this shows how vulnerable the u.s. can be. mock mocker see in question here. how vulnerable is u.s. security? >> it is very vulnerable. nationstates are getting additional capabilities. other nationstates, north korea and iran have conducted efforts against private companies, offensive attacks, we know about sony corporation. caroline: plenty of hacks throughout the week. you were at the heart of helping build the backbone of what is
now cyber security policy. what is missing? what more needs to be done to help protect companies and the government? >> the industry and the government need to come together and work effectively. we don't have a national policy on how we deal with a major nations they attack. we have to find a way to bring them together and defend the nation in cyberspace. the nation,ending does that mean retaliation? >> clearly the nationstate comes after the united states, we need to respond, swiftly and with clarity. you don't have to respond in cyberspace. but you do have to respond. it is critical the united states respond swiftly. caroline: it's interesting, rex
tillerson, he obviously had relationships with russia in the business community. what does it mean for relationships from a diplomatic standpoint? >> >> tillerson is the ceo of a major company. they had dealings and russia and oil dealings. he built relationships for that. as secretary of state he will have a different role. he is going to take the u.s. government line, not the exxon mobil line. i am sure he will do it effectively if he is confirmed. caroline: what will that line be? it seems to be a warmer embrace to russia. what does that mean in terms of cyber security? will the walls get higher? themselvesprotecting ? >> no doubt we have to protect ourselves effectively on cyber security.
it is not just russia and china. have unclear if there will a warmer relationship with russia. people have taken that view. mr. tillerson's relationship with russia. russia is doing a lot of bad stuff. they are involved in syria in an interesting way that sometimes may look supportive of the u.s., but problematic of the syrian rebels we are supporting. rush is not a good actor. dramatically will alter relations, i'm not sure how it is going to go. caroline: talk to us about the key risk at the moment when it comes to u.s. security, u.s. organizations. is rush of number one threat? or is there more? >> i think internationally we have a lot of security issues.
we have ice is growing in power. we have russia increasingly aggressive. we have china increasingly aggressive. china and russia are the leading actors. for a company we need to look at the chinese situation with international property theft. it is a huge problem. it looks like china is going to walk some of that back. it still continues. the core of the economy is intellectual property. that is a disaster for our economy. caroline: it has been wonderful speaking to you. thank you. another story we are watching, the u.s. is demanding the return of an unmanned underwater drone seized by china in international waters. the pentagon says a chinese naval ship sees the drone northwest of the philippines. it was deployed by a survey
leaving for venture capital. >> look at the big picture. return to growth and should stay in growth mode for about the next seven quarters, as long as you can see in a tech company. caroline: in his final research note he predicted apple will become a services company and then develop a kind of augmented reality wearable devices that would replace the iphone. we will see whether that lives up to expectation. the company has ordered to pay $14 billion in back taxes by the european union following an investigation that found ireland provided apple illegal aid. the team that rattled the irish government and spurred changes in tax law has been dubbed the max of force.
max force. mondays a slightly more task force on tax planning practices. it gives more clout and makes it sounds like it is there to exercise maximum power. the head of that was a guy called max. , toas given the task investigate companies of that tax practice in europe. >> the investigation went around the world. america was involved. what was the scope of it? >> the way it kicked off and gained pace was when the u.s. senate subcommittee started looking at where u.s. companies were paying tax. that theyoach was
should be paying tax in the u.s. and not elsewhere. that drew the attention of european authorities. apple isn't paying taxes and as far as we can tell they're not paying a lot of tax in europe. they -- the argument is that they have money and ireland which is not taxed there. the money repatriated to the u.s., it will be taxed. they will be liable for taxes at some stage. course, ireland, irish politicians going to cupertino. people in brussels digging into documents, trying hard to understand this complex issue, which the commissioner admitted they were not -- they did not have great knowledge of going into it. they learned on the job.
broad encompassing investigation. >> this is yet to play out to a certain extent. when will we actually hear who wins out? -- what surprised you the most? >> what is going to happen in the next few weeks, before the end of the year even, the four full decision will be released. apple will file an appeal but still have to pay the backlog of money. it may be that it is reduced or scratched entirely. the thing that was surprising
that i found, just the size of the team in brussels looking into it. the ultimate expectation is with union, theyeuropean have vast numbers of bureaucrats digging into these things. a team of just for people to begin with. in my mind i thought their may be hundreds of experts with vast amounts of experience taking into tax appeal. they were starting from the ground up. that was surprising to me. a lean, mean max force machine. that was alex webb. union pilots who fly for amazon concerns to online shoppers. they running ads suggesting the retailer may struggle to deliver gifts on time after a judge ordered striking pilots back to work.
trading, where the price range is now. we see the development over the years. it was never about the big show. it was about continuous development and learning. that is important for us. that is important. >> we talk about continuous development, looking at your financials, it goes back into advertising and not necessarily r&d. where are you looking to continue to expand? does that change over time? growing, 70, 80% year over year. we are heavily investing. , our mainocus spending is advertising. that doesn't mean advertising without a lot of r&d. marketing are doing is very analytical.
we are trying to learn and improve over time. at the travelok booking space it is very crowded. only you have your experience. differentiate from the rest of the competitors? just a judge. we would never go into booking. we want to be a tool for consumers to use have a great overview of the market. we would never sell them something. most of the players trying to get into that space, they think they have to do the booking themselves. >> when you look at the new folks coming in, airbnb, expanding into experiences. it seems to be infringing on your territory. how do you feel about where airbnb is?
understand, for us it is opening a huge inventory. they opened that out. they make them bookable. people can find them in the future. that was not possible before. there we are welcome to them. ivago chiefhe tr executive there. they are now worth $2.8 billion. bitcoin is rising above the rest, its surge reaching its highest level since 2014. the digital currency has outperformed gold, major currencies and the s&p 500. cory johnson joins us from new york. why the rally?
cory: it is interesting. the performance is jaw-dropping. who would have liked to have that in any investment? game entally, bitcoin has gained acceptance as a safe store of value. it did not have that a year ago very -- year ago. it does seem to have achieved acceptance. you have seen rallies on the price of bitcoin, not just during the course of the year, but when geopolitical events would cause a concern about the value of other currencies. it is like gold but you can use it. that is the way bitcoin started to be seen. unc a movement of this. election of donald trump. that is the way it is behaving, like a reserve currency or like
gold. 770 eight dollars is the highest since 2014. were real14 there worries. we saw millions disappearing certain exchanges. how concerned or non-concerned should we be that this could happen again? figurear be it for me to that out. there is a lot more infrastructure almost daily around the world of bitcoin. more and more companies are allowing it as a form of payment. that are able to meant bitcoin. a little more difficult to create than the next. have more and more challenges. it is more and more expensive to
make bitcoins. there are fewer coming on the market. that restriction of supply adding to demand has resulted in this price rise that we have seen. caroline: you have been a hedge of old.of old -- funder cory: did you call me old? all back.i take it you used to be a hedge funder. is this going to last? cory: who knows? it is harder to predict how anybody is going to trade something. , long ord my work short, it was trying to understand the underlying value of something. currencies don't have a value. they are a trading vehicle. the usefulness of bitcoin has changed. the fact that you see these crises of currency in india for example, as i mentioned, briggs
it, you saw an interest there -- briggs it am you saw an interest there, turning to bitcoin. for those reasons, you are saying the underlying thing that you are buying has a different value, a higher value than it used to. verybitcoin is today is different than what it was at the end of 2015. speaking, isbally this a truly global traded piece of asset at the moment? the answer is yes you uc a lot of traded bitcoin in the u.s.. -- yes. you see a lot of traded bitcoin in the u.s. the know your customer rules are so important.
so legislated into existence. somethingo way to use as anonymous with bitcoin with the financial markets. there are limitations. but you certainly see excitement across the world in this currency in a way that people are using it to store money. caroline: bloomberg editor at large cory johnson, the youthful cory johnson. now coming up, donald trump is meeting with tech leaders. the biggest packed ever. and facebook fighting back on fake news. we discussed the biggest stories as we approach the final week of the year. ♪
agenda. >> in early september, when i saw president putin in china i felt that the most effective way to ensure that that didn't happen was to talk to him directly and tell him to cut it out and there would be serious consequences if he didn't. >> mr. obama said moscow retreated after that discussion, but after that emails belonging to the democratic national committee were already in the hands of wikileaks. says the russian government and its syrian allies are responsible for the masses death toll in syria. --four years, we have worked for years, we have worked to alleviate human suffering in the
war in syria. horror asis united in the savage assault of the syrian regime and its russian allies on the city of aleppo. to savemats are trying the evacuation of eastern aleppo. in aleppo, the evacuation has been suspended. syrian000 people and the rebel stronghold left on buses. state media said rebels were trying to smuggle weapons out of aleppo. congressional republicans have closed a year-long investigation into flint, michigan's water crisis. the house oversight committee cites both state officials and the federal epa saying they did problem soon problem soon enouh
or take proper action. the top democrat in the senate donald trump's choice for the u.s. ambassador a majorl may represent shift in u.s. policy. david friedman opposes the two state solution and he told a supportr that trump may israel facing some parts of the west bank. dayal news 24 hours a powered by over 2600 journalists and analysts in over 120 countries. this is a bloomberg. ♪ caroline: this is "bloomberg technology." president obama laid out the rising risks of cyber
warfare. >> we are a digitalized culture and there is hacking going on every single day. there is not a company, a major organization, or a financial institution where somebody is not going to be fishing for something or trying to penetrate with a virus or malware. caroline: a clear example of disclosing ao! major hack last week. experts talking about this issue. welcome to the show. let's begin -- we were all geared up for donald trump versus the tech titans. it was not as adversarial as we thought it would be. >> the two things that surprised me was, firstly, i was
overwhelmed by the amount of detail that carol fisher was able to get. and also the photos that were published ahead of time, it looks like the tech leaders we saw were going through three of the five stages of grief. every major issue was touched upon but i don't know what the response they heard from trump. if they really will dig in and try to fix some of these issues. caroline: you mentioned carol fisher saying it was weird but not as awkward as expected. were you surprised by all the names showing up? >> there was a lot of reasons going into this meeting to expect it would be a lot less collegial than it was. ump has done and said about a lot of these tech companies like amazon and apple
have been confrontational. you expected that same time he took with media companies and the same things he is said about lockheed martin and what he is done with boeing. who knew what was going to come out of it? as of these people were invited, there was an initial question of how publicly i'm going to talk , yes, i'm going and this is what my agenda is. there was a lot of questioning within these companies internally about who should go and who should we send. outdefinitely saw them come and once you knew there was going to be a few more ceos there, you couldn't send someone lower down the ranks. caroline: through acquisition you hold some of facebook, you feel these big tech companies should be representing their shelters -- their shareholders?
>> a lot of people had been nonpartisan in their views about the president-elect. i think washington and silicon valley have to work together. involved from apple manufacturing in the u.s. instead of china and everything else in this ecosystem. we have to engage like it or not. caroline: interesting that one of the big tech titans who was not there was marissa mayer. it could end up, as we reported, this could derail the deal. verizon wants to do a couple of things. they want yahoo! to assume more not theiabilities and
assets of they acquire. failing that, can they renegotiate price? what is more likely is this is negotiating through the press. i do think there is going to be some kind of a reevaluation of how much verizon should pay. at the end of the day, yahoo! is still a vital asset to verizon. we have every reason to believe they still want it. yes, there was more hacking than initially thought. we broke the news this week that there were a lot of sensitive government email related content in what was hacked because people use their yahoo! as a backup. >> not everyone has a private server. >> it was much bigger. it was greater and reached far
deeper than initially thought. i think the deals go through what there is a evaluation of what they are willing to pay. >> from yahoo!'s point, they are there'll -- they are a very valuable property. where else do they go, snapchat pandora?ra -- or caroline: and a significant amount hats off of the price tag, do you think? off the price tag, do you think? >> yes, when you suffer an enormous hack. flying slightly under the radar was the facebook news that came out that they were willing to tackle the fake news gate, trying to find ways to push down fake news.
what do you think of what they announced? >> this is a big problem. when something is shared on your timeline by someone you know, you inherently want to believe it. this is an issue across every single country. you saw it during rex it and the xit and theduring bre italian elections. obligation toral handle this, the question is, can they do enough? caroline: facebook seems to be in the line of fire when it comes to fake news but google, many argue, was making advertising revenues by being on fake news sites. our other companies being criticized enough -- are other companies being criticized enough? >> google doesn't come out
looking well, but with facebook, facebook has a degree of control. friendsooking for our to see what they are reading and we expect facebook to play a certain role in helping us assess what is news and what is important. we expect them to play a role. facebook is at this debate over are we a tech company or a media company? they want to be seen as a technology company. our outdoor thumbs will solve this for you. algorithms will solve this for you. if they can't strike that balance, users are going to feel like facebook is losing credibility. ifertisers will think twice it is somewhere where they want to put their ad dollars.
politicalwe have a year coming up with french general elections. you are a man who invest in nvests in europe. give us a sense of how the u.s. is looking at europe and what we 017 holds?- what 2 >> the watchword is unpredictability. true isg that is very great companies are still being built. , and industrial park somewhere out of air tomorrow -- edinburgh. companies will be looked
at if they can get in at a great price. soon? they selling too we want to see these unicorns in the u k and elsewhere in europe not just get to the billion dollar point but multibillion dollar point and stay independent for a wild so they can prove to themselves -- stay independent for a while so they can prove to themselves they are strong. once a company reaches some skill in europe, the question is do they have to be in the bay area or in new york to get a higher scale? europe simply doesn't have the number of companies and the scale and support they can produce a company of the nature of facebook. in 10 years ago, that could be different. the eu has to be bolder and push the companies to produce that.
the founder and the chief executive. marsbot was a little bit of an experiment. can you build a piece of technology and never think about it. bot will give you notice when you are somewhere that this restaurant opened up. you think of siri where you always have to ask for something , but we change that of and ma yout wakes you up and tells about something. caroline: did you think that maybe we just don't want to be told, we want to ask. >> we do experiments like
likeot, we create apps that to learn from them. does it feel right, is it too heavy, but we have a number of people who use it. it is not the biggest app in the united states. users tell us it will be cool to see where it is a year from now. and think marsbot foursquare are experiments for a in that people should have more random experience in the world. we all live in the urban places where new places our opening there's all kinds of -- and there is all caps of memorable experiences. the memorable things about foursquare is we talk
about not spending your entire life in front of a screen. go out in the world and floor. foursquare is kind of a game where you see who explored the most. we are getting out and experiencing the world. that is always been the defense is anrsquare, so marsbot experiment to push you to try something new each week. caroline: there's been a time of development in this space whether it is personal assistant, alexa, where do you think we are in the development of these devices? >> there are a lot of people experimenting with it right now. google just launched google home and you can speak to it the same way you can talk to alexa. think the grand vision -- did
her"ever see that movie " with scarlett johansson where it is talking to you all the time? >> yes. >> i think it will be like that soon. there are a lot of companies experimenting with different models of interaction with the goal of getting to that place. caroline: foursquare is a developing technology with assets that could fit well into a number of companies. if you received an acquisition offer, would you take it? >> we have been focused on growing a sustainable company. the mantra of the company is growing into a sustainable business. we have a direct line of sight, we have a plan and that is where we are focused. ultimately if foursquare becomes , company that could go public
the ceo is 30 years old and he is from england. he was able to start selling tickets directly for artists over in england. he was originally a promoter who promoted people like adele when they were essentially unknown. had the single crown search, they had a lot more control over their business and he made like 10% off of each. what do you do after you conquered england? you come to the united states. caroline: but then there is ticketmaster. they are a beast. they control a lot of the ticket sales. >> even with the merger of life and nation, ticketmaster -- the nation they hade
the biggest sales in the ninth date. 10 differentt is companies selling tickets. it is not hard for artists together taken there. statesthe united ticketmaster controls all the places. they negotiate the deals with the concert halls exclusively and they let artists save 10% of their sales. >> who are they disrupting and who is going to be on their side? is it about breaking the agreement that these venues have or have artists come on board who want their true fans to get tickets? >> in england when you have multiple sellers you can disrupt that and artist can use their clout and demand a number of tickets.
ultimately that is the strategy livenatthe thing about ion and ticketmaster, they make all their money from surcharges on tickets. that's where all of the profit is. they don't make any money on live performances. it is an important business for them. at the same time, if songkick wants to come in and disrupt things, they have to break ticketmaster's hold or force them to give them more tickets. basically ticketmaster sees this and says we are not going to give you anything because you are trying to start a business on our backs. conversation.eat now a story we are watching. uber responding to california regulators who say that it's
self driving test vehicles are illegal. uber says these cars are still on the road today. that does it for this edition of "bloomberg technology." a programming note, i had the great pleasure of feeling and for emily chang for the next few months while she is out on maternity leave. us on the show. at 11:15 eastern and 8:15 on the west coast. this is bloomberg. ♪
♪ >> from our studios in new york city, this is charlie rose. author and is an correspondent for "the atlantic" where he writes about politics and social issues. his latest article is about president barack obama. it is called "my president was black: a history of the first african-american white house and what came next." it is great to have you back in america. congratulations on the national book award.