Permit to carry a gun in states that allow it. China engaged in security talks today with japan following north koreas Missile Launch today. This came after demands by President Trump for beijing to get tougher with pyongyang. Lauer, today show anchor, has been fired by the today show over allegations of sexual behavior. Global news, 20 four hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. I am alisa parenti. Technology is next area bl oomberg technology is next. Emily i am emily chiang. Coming up, the u. S. Tax overhaul could be to blame for the tech crumble. Ubersing its take on cultural uturn and Sexual Harassment, from Silicon Valley to washington. And our ride in the chevy volt and my conversation with the gm president. Tech stocks were caught in a massive selloff in wednesdays trading session, while the dow hit a new record, tech shares tumbled more than 1 , its biggest decline in three months. Abigail doolittle joins us. How common is the sturgeons we are seeing . Divergence we are seeing . Abengoa todays trading session was pretty interesting, putting with thelltime high dow. Down, one finished point 3 , its worst day since august. To have that degree of a mixture in the dow, of the s p 500 index, and the new economy stocks really taking a hit, the saying going down the fang going down. Forgh stocks were on pace their worst day as a group since were onthose stocks pace for the worst day as a group since 2014. Onladelphia semiconductors, its space for its worst day since the brexit pace for its worst day since brexit. There was an analyst over at Morgan Stanley who put out a note talking about cheap demand, the specific type of storage used by chips, and she said we might see the first downdraft since 2016. Investors are wondering if we are overextended. Look at the bloomberg. The major averages have put in alltime highs. Is points away from its 2000 peak. Perhaps that wont happen if it loses momentum. It is considered to be a leading index. Sens,mand lessons les maybe that media economy isnt growing as fast as people seem to think. It is a concern. Emily what kind of volatility are we expecting . Abigail relative to the s p 500, we have been hearing about alltime lows finishing today. The vix for the nasdaq 100, shooting skyhigh. We have an another really good terminal. At is the looking longterm chart of the nasdaq 100 vix, relative to the s p 500 fix. Vix is shooting skyhigh relative to the regular vix. We had that mysterious tech selloff back in june. The selloff today is reminiscent of that. People were talking about potential triggers, the tax overhaul Tech Companies have lower taxes would this be disruptive for them . Its really not clear. Technology may be overextended. But ifs profit taking, you have this technology in the tech sector, perhaps there are leaks to the broader market. Interesting to keep an eye on. Well be reporting on it in the days and weeks ahead if it continues. Emily we will be watching. Thank you. Is said to be in talks to buy juniper networks, according to cnbc. 16ill value juniper at billion, and shares are spiking as high as 21 . Bitcoin continues to hold the attention of global investors, surpassing 1000 in a matter of hours after hitting the 10,000 milestone, then going back down. This increases warnings the largest Digital Currency is in an asset bubble, and institutions are jumping. Becoming the third major u. S. Exchange to attempt to dive into the redhot market. Arianna huffington talks about raising money for a startup. And the uber cultural turnaround and the sexualharassment scandal rocking tech, media, in washington. This is bloomberg. Emily ubers losses grew bigger in the third quarter. The lost 1. 5 billion in period. They are trying to fend off global competition and facing more legal challenges and regulatory scrutiny. Thenna huffington defended company, saying it conducted a full investigation into its recent high profile hack and she is happy with the ceo. We also talked about the sexualharassment scandal with tech within tech and media. Discussionr regarding the latest 30 million funding round at five and the next stage for her startup thrive and the next stage for her startup. Ariana multiple clients around the world defined our behavior change. We will be able to productize it, create digital, sciencebased behavior change around the world and for consumers, to have them reduce stress and burnout in their lives while improving productivity. The heart of thrive is this fa thatntirely sciencebased, the wellbeing of performers are tied together, it rises and falls with each other. Investors will continue to accelerate their investment in Human Capital, because this is very viable in media and impacts the bottom line. Has invested in twitter and snapped as well. Snap as well. What do you see in thrive, besides the founder being Arianna Huffington . We see hypergrowth. Factors thrives first year is up a date in terms of customer adoption and revenue is phenomenal. We look at land, expand, renew, refurb. They were landing big customers with sizable contracts, even though they had a even before they had a fully funded salesforce, they were experimenting and expanding into different departments. Referring this product or service over to others in the industry . People in Human Capital know each other well. That is what we look for. You are trying to change behavior. What kind of change are you seeing, and how much more work is there to be done . Arianna we are at a tipping point. More companies are realizing that we have been living under sion, thation, delu you have to burnout in our field. We have created a media platform which takes everything i of learned from 12 years at the huffington post, and brings together the latest science that informs how we take care of ourselves. When we put oxygen masks on first, we are more effective at work. Models, like jeff and Richard Branson and sheryl sandberg, are writing about how they prioritize their own wellbeing. That makes them better at work. Piece. Zos wrote a vital headline, why getting eight hours of sleep is good for shareholders. He broke it down when he got six hours of sleep, his decisions were not good. It, my value is not in the amount of decisions i make, but inequality. Quality. He that information goes against a lot of our mainstream culture which has a negative impact on business metrics. Emily how do you deal with these kinds of issues . It has become a real issue. We are attracted to the breakneck speed of companies. But companies she is referring to a number of per folio companies where po rtfolio companies where people burnout. The feedback from these people within these companies is, i wish i had time to build the relationships with my coworkers and process information i am learning about. Today, it is not a french Human Resources discussion, fringe Human Resources discussion, but a discussion about how do we retain amazing people that want to come to work and are excited about the day ahead . That is what Arianna Huffington is addressing. I have to ask you about the continued Sexual Harassment and discrimination allegations impacting tech, the media, politics. Matt lauer was fired, charlie rose was fired. Bloomberg ended its production and distribution arrangement with rose. How big of a blow is this to these franchises, and how do they recover from what seems to be bad behavior by powerful men . Arianna all of these companies are moving very fast, making decisions fast, ending contracts fast. This is indicative of the cultural moment we are in, truly whereotolerance, behavior that has been quietly accepted for decades is no longer accepted. It is a very important moment, which is going to make it much inier for women to flourish workplaces and to rise in workplaces, because we have seen how prevalent sexism is, which has made it much harder for women to have sustainable eers in many businesses media, entertainment, anywhere. Y when it comes to washington, senator franken there were some photos that surfaced of you and him. There continues to be the question of trying the line. Why did you defend him drawing the line. Why did you defend him . Sketch befored a you were born copper born, probably, called strange felt bedfellows. Trange al, itot about defending is about making it clear, joking around during a photo shoot about a comedic sketch, what that is about. Emily you have been a part of what everyone seems to hope is a major cultural transformation at uber. Sad news continues bad news continues to come out. There was this massive hack attack at the company. When did the board learned about about board learn this . Arianna after the new ceo, we did a full investigation. After this, the results were announced to the public. We are lucky to have an unflappable ceo and willing to make bold bets into the future. Facinguber is still areas probes. Various probes. You joined the company before there was any significant bad news. Do you feel like you were misled by Travis Kalanick . Arianna no. What is interesting today, looking back at the testimony around wamo, we are very confident of our facts in this case. Nothing in the testimony that changed in the news has the facts. The softbank deal has been launched and we are happy. There is a lot of good news. Points of thef cultural transformation. The new Cultural Values no longer included some of the old values, like working smarter, longer, harder. Doing the right thing is not a cultural value is now a cultural value area we are excited about all of the amazing changes. Emily that was arianna ipfington along with our general partner. Coming up, 10 espn navigate can espn navigate the changing sports media landscape . This is bloomberg. Emily alibaba is planning a 7 billion bond offering, the largest bond sale by an Asian Corporation here. Securities will range from 5. 5 years to 4 years. The deal would eclipse the 6. 6 billion offering from china ever grand. Year,e second time this espn is firing staffers. It is about 150 people, 2 of its workforce. A continues to struggle with losing subscribers, balancing costs in a string of social media setbacks. Lucas shaw joins us from los angeles, and in new york, cory johnson. Cory,. This is something we have been continuing to cover. What does this mean . Cory we have seen the difficulty yes pns had in dealing with the internet. Espn has had in dealing with the incident internet. The fundamental shift away from watching content on television has caused espn trouble. It is had difficulty adapting to o apost television tw post television world. About wherewe know these layoffs will be coming from and how they will hit the network . Cory most of these lucas most of these people will be working in technology. Most of the people had a technology background, but working in the wrong kind of te ch. Espn will introduce a new streaming service next year and a new morning show, shifting resources. Emily what does this mean for disney . Espn has allowed disney to do new and exciting things, and is a successful acquisition machine. It is a great cash cow, but not what it used to be. If you look at the cable division, the subscriber growth go to the bloomberg terminal. The subscriber Growth Numbers have been down. Not dramatic, but a change in direction. That change is a problem for espn. It comes back to the programming. What they have done with certain , iss Stephen Smith wonderful ability to scream at the television, max kellerman, their attempts to mimic that. You look at pti, the attempts to mimic that. What we dont see is the numbers draw. You have also seen the cost for the rights for sports, which has increased dramatically. And to the role of sports and culture, sports in you dont have people of the people listening to the same kind of music, that culture an ymore. On internet and mobile communications, you can pick the culture you want. Singulars maintain a model culture that draws a lot of people into the same giant tentpole Going Forward . That is the question. Emily what is the proposed escape route . How does espn attempt to adapt to the media landscape . Lucas it is difficult. Money for the network is in the traditional paytv business. Money person scriber, tens of millions of subscribers, billions of dollars in revenue. And they came to anchor their distributors cant anchor their distributors too much. You are not going to watch monday night football or the nba finals there. That is a potential problem. A bigs trying to grow Online Service to compete with these competitors. Emily lucas shaw in hollywood. Cory johnson, thank you. Coming up, gm is taking its self driving flagship car onto the streets. I got a ride. This is bloomberg. Emily it is 12 30 p. M. In hong kong. Welcome back to Bloomberg Markets asia. Here are your first word headlines. Hong kong mains factory performance came in at 51. 8 for november, topping forecasts of 51 point four and improving on octobers reading. Rose this month. Analysts see results as positive for asia in the mediumterm. Korea raised its benchmark Interest Rates for the First Time Since 2011. The decision to hike the wasrchase rates to 1. 5 forecasted by analysts surveyed by bloomberg. They said it forecasted a trend of solid growth. A sometime critic of Janet Yellens fed has been nominated vice President Trump by President Trump to survive the bank. Serve the bank. Is from Carnegie Mellon university and aims to provide conservative views on monetary policy. Weaknesseing continuing in the tech space. A lot of analysts saying this is profit taking toward the end of the year. We see tencent and apple suppliers have rallied to strongly. Hong kong on the lunchbreak, off by 1. 3 . Australias market is being hurt hurt by that taking inquiry announced by the government today. By 6 10as asx 200 off of 1 in late trade. You have the new Zealand Market closing high. Iwi dollar had a significant fall, half of 1 . Well. Ss in the yuan as australias dollar being lifted by that pmi data out of china. Shanghai is lifting up by 3 . Can see that weakness coming through from tencent, holding up by 2. 3 , following falling for the second consecutive session. Having a look at sectors, you can see that big impact in the i. T. Space. That is a pulse check of markets in the Asian Session this wednesday. Emily this is bloomberg technology. General motors has finally released its self driving cars out on the streets of San Francisco. Chevrolet unveiled the bold, vehicle. An autonomous it took me on a ride. We are waiting for the car. Well take a drive to the bay. Its here lets do this. Alright, we made it. Miles, drove past 178 people. Nine bikes, 148 cars. Stopping and starting at times, a litte a little jerky. You were trying to figure out what people were going to do, with a construction workers, kids playing with a ball . But it will get better next time, i think. President own with the of gm to see why they would let us in a self driving car that wasnt ready quite yet. We are testing and demonstrating in San Francisco to deploy a really high level of safety in unpredictable environments. Our fast rate of development gives people an opportunity to experience the cards today in complex environments cars today in complex environments. We are hitting commercial and we are excited for development in the number of quarters ahead. How many . Some number. There were a couple of times when i tried to merge and there was a car. We saw children in the crosswalk, and the car got confused. How long will it take it to smooth over those issues . Safety is a number one priority. The car was relatively cautious today, but it is all about safety, the defining metric which will tell us when we are ready to deploy these cars. We are continuing Performance Improvement and that is why we wanted to give people the opportunity to experience the vehicles today. A few months from now, we will see the rate of change. Emily when are you got the point that the car would think the decisions of a human driver . We understand human driver decisions and we want to make sure that the car delivers performance better over time. There are still pedals and a safety driver. How far away from are away are you without those elements . We will pull the safety driver out of the car and that will afford us an opportunity to rethink about what the car might look like. How about affordability . We can get a really high rate of utilization in a writer environment. In a rideshare environment. We will be able to offer rides at a more affordable rate than where human drivers are at today. How much does it cost to make one now . I could, not today. What are the strategies to bring these to market . Once we look at the level of performance, we see the logical deployment being in a shared network, then in a complex urban environment, a rideshare model. You have agreements with lift and uber lyft and uber. What site are you one . Side are you on . We just want to get this technology deployed with the right level of safety. We could have one partner or more, or nine. Or none. What looks like the most plausible scenario and how do you work through them . As we get closer to commercial launch, those plans will reveal themselves. You see the iterations of the various cars. How do you get the equipment smaller and sleeker, looking like just another car . Were working at an unprecedented pace. We are working on new generations of cars, and all of that has happened in the previous 18 months. We will continue those iterations as we get closer to commercial launch and afterwards. How critical is this Technology Used for self driving cars and is it possible to have them without it . The acquisitions we are working on is getting the cost down dramatically. We think we can reduce the cost 99 in the almost relatively near future to get the performance and reliability up. With that combination, we will have a compelling experience. One of the most boring parts of it was being able to see the rding parts of it was seeing the car on the road, the people on the road, and the objects moving across the screen. How does that fit together . There are predictions being made as to what the characters are going to do, and the vehicle plans the path around that. It is a representation of what the car is seeing and how it is speaking about the environment. What technology . Internally developed. Is itn it comes to cruise doing all of the hd maps in house, and how does it differentiate itself from competitors . We can control all of the pieces of the system we need to move as quickly as we can. We have all the own self driving software, and on the hardware side, we want to control all of the pieces and move quickly. What are the updates on the sales of the chevy volt . They have been going well. We have a record had a record month last month, a good trajectory. Lets where will these where will the self driving efforts be a year from now . In a good position and we look forward to keeping you updated. What has been your favorite experience . To see the rate of progress we have been making. In the last 18 months, the rate of change, being able to share are, and we have a clear line of sight of getting to the point where we can want is commercially. Would you take your family on a road trip in this . We still have development. President on the selfdriving car from his company. Mobileder behind android but the company into 2014, is coming to light he departed on accusations of inappropriate behavior. s internal investigation has resulted in him taking a leave from his hardware startup. He told the board he needed time off to do with personal matters. Is making newp attempts to attract more users and advertisers. This is bloomberg. Emily a Technical Glitch may leave American Airlines without any pilots over the holidays. It has left more than 15 thousand flights without sufficient crew during the next month. The airline says the problem should be corrected before service disruptions. Pilots are being paid 1. 5 times their normal wage to pick up flights. But union say the proposed solution violates its labor acts. Photos redesigning its sharing app to attract more users and advertisers. The company says the design will encourage people to spend more time on snapchat. The biggest change is separating photos and users content produced by users from content from advertisers. Why so long for the redesign . The company is coming out after what they see to be a misunderstanding by the public about its growth. This is a departure from what we see from social media, where your friends drive you to the media content, and what is popular rises to the top. They want to build something that has more of a netflix, personalized aspect, where you based on whatt you have seen before. Quartershe third disappointing revenues will influence them to try and give hope for the future. Emily so will this attract more users and advertisers . I am not sure. We have a separation of the social and the media. No you dont have friends directing people to the media which needs to be compelling enough on its own to drive attention, to get people to see those ads. You would only see the stories of your friends and talk to your friends, which is just fine. Snap needs to prove that quality needs more than popularity. Turn out it could to be something amazing, like netflix, or like twitters discover tab, which shutdown. Shut down. Emily social media has always mixed photos and videos from friends and advertisers from friends and content creators. Learning the line between the two has been an interesting experiment and produced fake news. Point. Good it is an obvious slam at facebook. Snap is in a position to tease facebook and public in p ublic. Snapsk has been copying most public features. Hearing them saying, you are not getting it, this is how users want content to be displayed. The question might in fact be but whether it helps snap deliver as a Public Company getting that revenue visibility and user growth will take them into the future. Emily the open question. Thank you. Coming up, the sitdown with jim bets onbout the company two of text viable startups, uber techs valuable startups, uber and airbnb. And we have Michael Bloomberg sitting down with alex steele to talk about how they are taking their business programs to washington. This is bloomberg. Emily tbg has investments tpg has investments in a wide range of sectors, from health care to china. Has also invested in uber and airbnb we talk with airbnb. We talk with jim colter about how he sees jim coulter about how he sees these companies playing out. Jim what interests me as an ats and airbnb is that they are now focusing on experiences. If you think about traveling to a hotel, you want the concierge, its exposure around the city. I have been a big advocate of the general shift in the economy, and im interested in how uber is building ubereats, and how airbnb is building its connection to experiences. Surrendered in china and airbnb is pushing forward in the country. They are not the market leader. Could you foresee doing a partnership with a local rival . The partnerships and alliances are smart. Is anyone tries to expand at the rate these companies are as anyone tries to expand at the rate these companies are, finding partnerships is smart business. You guys are putting more work into content and enter tainment more than anyone. What is given you the confidence to do that . Over the top delivery when you want it is changing one of the Largest Consumer industries. We dont know where it will end. Game of thrones would have been unimaginable a few years ago. And now we have a move from that content to short form. Is idea of content shifting one of the most interesting things happening. Emily are you worried too much money is getting put into content . The we are increasing number of scripted shows in television rapidly. There will be moments when the pendulum will swing back and forth. I am fascinated by the concept just howwatching, people will watch in the future. Seehat evolves, you will the dollars being spent in television really becoming some of the dominant dollars in content. Emily you are investors in spotify. What makes you think spotify and take on apple in the long run . Has shown rapid growth and effective positioning doing that. Interesting things about spotify is its position as a data company, is a fillet he its ability to evolve and needs. Stomers we tend believe there will be one winner in a lot of these industries. Spotify will clearly be one of the winners in the music business Going Forward. Emily you brought in an outsider, your founder, yourself. A tricky proposition. And the outsider split up responsibilities . Days, we had to invest well. Now we have to manage ourselves well. The skills of investing and managing are sometimes not residing in only one person, and certainly take a broad set of efforts and personalities. My background is more as an investor. Johns was more as a manager, although he had been an investor, having Goldman Sachs pia division report to him. Emily you will start raising a new fund next year. The cap is 13 billion. What can you share about the plan . Jim to have enough capital, not too much. Private,g has remained while your competitors have publicly traded. Will your company go public someday, and when . Questionve had this for 10 years, and for 10 years, i have answered, we have had no desire to go public. Emily there were plans that were shelved. Jim they were. We have said we will only do it if we need to. Those that have gone public or maybe not as pleased with being public as they might have are maybe not as pleased with being public as they might have anticipated. There is also no capital available in public markets. Sure to check out the full episode tonight at 9 30 eastern on bloomberg tv 1. 0. That does it for this edition. We are Live Streaming on twitter. Check us out on weekdays, 5 p. M. In new york, 2 p. M. In San Francisco. This is bloomberg. The following is a paid program. The opinions and views expressed do not reflect those of bloomberg lp, its affiliates, or its employees. The following program is a paid advertisement for the hd mirror cam, brought to you by Inventel Products llc. Announcer yep, theyre out there, driving recklessly, causing accidents, and driving up your insurance rates. This is a show about car accidents. , classic cars, and the hd mirror cam, the personal Security Camera for your car. This is accidents caught on camera with the hd mirror cam