To be spared. Many children have died. The flu season still has not peaked. Global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. Parenti, and this is bloomberg. Emily i am emily chang and this is Bloomberg Technology. U. S. Stocks smash records across the board to close the week with tech shares at the charge. We have the latest. Plus, michael dalloways options with an ipo on the table. White the man with the largest leveraged buyout in tech history is reconsidering the companys future. And the rising uncertainty over facebooks new feed, pivot. Zuckerbergsal for new fixed and the potential impact on on ad revenue and digital publishing. U. S. Stocks hitting a new alltime high. The market is once again rallying on strong Earnings Results with tech shares leading the way. Helped pushformance the market higher, the s p 500 with the fourth week of gains. Lets bring in Abigail Doolittle in new york. And in San Francisco, corey johnson. What are the highlights . Results yesterday rising the market in a big way. This big move from the Data Center Business we have been talking about it for years. But the movie showing up in the results of intel. And we are seeing it with my microsoft and so on in the cloud area, driving intel. Intel seems to be driving the entire market. Today, a 10 gainer and a big move for all of technology. Emily meantime, apple not having a great week. Perhaps its worst in several months. Aboutwas a report warning sales in the spring, saying apple may guide revenues lower for the current quarter. Abigail, what is your read on this . Abigail we have been hearing reports along these lines recently, the last year analysts saying demand for the iphone x would not be as strong as investors would like, and that that could weigh on the march quarter. But one said the march quarter is probably too high relative to consensus of the amount of iphone units to be shipped. Saying street estimates for sales of for the march quarter was too high. If i look in the bloomberg, it is looking 20 year on year growth, relative to the december 86. 7 billion. If the units come in weaker than expected, that could weigh. The shares look vulnerable, below the range, the 50 day moving average. There could be bearish surprise at next week when the company does report and give guidance for that march quarter. Analyst pointsg out people are holding onto their iphones longer and that is not good for apple. Cory we are in the final days before the reports. Analysts to have recommendations would love to see the stock top. I am not saying walter is playing games, but if an analyst were to lower their numbers and keep the rating in the stock, the company will see a lower estimate to beat. It quite literally gets lower for them. What abigail is saying, the business is one of the biggest in the history of the world and growing at a doubledigit rate. That is still impressive in my book. Emily other currencies falling after one of japans largest Cryptocurrency Exchanges said tokens were lost. Not good news. Walk us through what happened in the crypto he abigail it is stunning what is happening in the crypto space, especially with the coin trading closer to 10,000 for a bit coin relative the alltime high last month of 19,500 per bit coin. Atpoke to Michael Rourke jones trading. He said there are not any trading fundamentals for bit coin. It is a picture up your demand and supply it is a picture of pure demand and supply. A great time to look at technicals, a reading of supply. Take a look at g btv 9416. This chart suggests we could see bit coin easily drop down toward 1000. We see a beautiful trend where bit coin went higher and higher. In relation to its 50 day moving average, telling us buyers are in control. Recent volatility from the alltime high to the lows, a battle between buyers and sellers. The confusion, the end certainty, the what is next . It is breaking to the downside. We could see a measured move toward 1000 per bit coin. Per bitcoin. Probably to the bearish side. Emily talk about japan. Cory it is an interesting story , losing coin is not a new one. Orther it is an Exchange People throwing away hard drives or losing keys that give access. Is a particular currency i had never heard of before today. It,y there was a lot of 400 million. Cory it was a surprise to me. It shows risk in some of the currencies. , bit coinike ethereum and ripple. Ripple up for the day. I was looking at cryptocurrency losses this morning because what else would you do at 5 00 in the morning . If you lose a cryptocurrency, it is valued at the purchase price. If an investor had bought this thing, if you had bought a ripple xrp coin and lost the hard drive that had it, and now 1. 30, it would be on a cost basis. Massive tax loss. They will never be able to recover the stuff. It is an interesting and horrible problem. Emily horrible, indeed. We had an interesting week. You, amazon and facebook with earnings reports. Abigail apple, there are reasons to think the stock could have a bearish break on that march outlook. I wanted to point out twitter had its best day of the year, up more than 9 . On another round of takeover speculation, lots talking about about salesforce. Com buying twitter. I wanted to point out Bloomberg News is saying twitter, the volume, is that a threemonth high. That may suggest m a monday, there could be deal activity. Whether or not that happens is speculative. But we are pointing out twitter up more than 9 on the day, its best day of the year. Its first update in nine days, too. Bullish action on twitter. Emily is that just chatter or something more . We will talk about that later in the show. Thank you both. A story we are watching, a Company Preparing for its u. S. Debut. Seeking a bankroll, logistics buildup, and may set up a facility in a late in l. A. They will send they will sell 10 of its logistics arm. Coming up, infiltrating and earnings that Beat Estimates and an up to the an upbeat forecast. And bloomberg tech is live at streaming on twitter, check us out. This is bloomberg. Emily intel surged in fridays session after it Beat Estimates of an upbeat forecast signal demand, despite headaches. Corey johnson caught up with intel cfo bob swan for insight on the results. We feel great about the performance overall, and the Data Center Business. Growth accelerated off of strong third quarter. Strengthally, there is across the board. Our Cloud Business was up 35 . Business was up 16 . 6 . Enterprise business up as you know, enterprise has been relatively slow growth. Negative growth for a while. A strong seasonal quarter, outstanding performance and enterprise. We feel great about how we closed and excited about 2018. Cory which business is growing faster, the Enterprise Business or the server business in the cloud farms, amazon web services, you name it . They aregood news is, all growing strong in the fourth quarter. The continuation of cloud growth in the mid30s and the continuation of market space in and infrastructure area has been relatively slow growth in the market, but it has been slow growth because we continue to gain shares. And the Cloud Infrastructure continues to upgrade. We have been the beneficiary of that upgrade. In addition cory go ahead. We soldalk about where the product how we sold the product is important, as well. Product volume was up 8 . Was up 8 . We continue to see consumers by highperformance products, s u we talkp about. Expanding our market in the data Service World , selling more than just cpus in the data center environment, but selling other adjacent products. Adjacent product growth was up 35 . Your ifp iix will give you a break. I am interested also, i was talking to ian king, he did a radio segment with me yesterday, he was talking about the cost of these chips. The cost of chips going into the server farms is extraordinarily high, 12,000 or so. Does that continue to rise . Bob it is a function of performance. As we continue to deliver higher and higher performance that makes economics of the Cloud Service providers offer, it really drives their economics. Offer, we call it moving up the stack. Or the really highperformance chips that improve their economic infrastructure. Thoughtalso would have as you moved into more the internet of things, there is terrific growth there, 20 or so. Growth margins coming down we are seeing the opposite. 64 growth margins. We have talked about expanding our overall served market. Obviously, we have high growth margins in our historical cpu business. As we expand to be more than intel inside the pc and intel inside the data center, we also want to be intel inside everything and have more intel products going to each one of those verticals. Iot is a classic example of that. A 3. 2 billion business that grew 20 in 2017 and continues to grow as we proliferate the capabilities we have. Not only in the cloud, but around the edge, as well. Cory what do you know about what your customers are doing in terms of their own design . It seems amazing customers could think about designing their own chips. You have google, apple, facebook, amazon, looking at designing their own chips. What do you know about those efforts . Bob what we know about the relative importance of chips in terms of their infrastructure, we know they absolutely want us to continue to innovate and deliver more and more power, more and more performance. The criticality is extremely important for all of our customers. What they want from us is to continue to deliver higher performance. And that is what we are focused on. As long as we continue to do what we have been doing, we are confident we will continue to lead the industry and deliver the products our customers need at the performance levels they need and ask for. 17 years ago i was down the street at a magazine called to the industry standard. The stock market was going crazy, the future seemed bright for the internet. Leveltock was at a high you have not seen since january of 2001. The stock price is mildly interesting to me. But whatever tends to the future of technology is much more interesting to me. Are we finally realizing some ideas of the internet from 17 years ago . The transformation of the industry overall has just been fascinating. And in terms of how we have been trying to take our capabilities and expand where it is we offer 1999,obviously, back in intel inside was about the pc. Today, intel inside is about the pc, it is about the data center, it is around of the adage, it is about intel inside autonomous vehicles. I think of the role that technology plays but comes up more and more important. Therefore, the investments we are making is to make sure we are wellpositioned to participate and lead and grow as technology plays a bigger and bigger role. Emily that was intel cfo bob swan is speaking to our editor at large, corey johnson. Billion are michael dell reconsidering the future direction of his company. We discussed the next step for dell. If you have a bloomberg terminal, check out tv. You can watch us online, click on graphics. On yourto tv terminal. You can also contact us on twitter. Check out ticktock by bloomberg, the first 24 hour Global News Network streaming online on twitter. This is bloomberg. Emily google has until sunday to report how it is complying with the e. U. s antitrust order. They pay penalties for antitrust practices. They said the auction ad space does not work because google wins most of the spots. They have to have a report about how they have given smaller competitors a fairer deal. Four years after one of the largest leveraged dell is considering going public again. He spoke about the benefits of running a company back in 2016. A privately controlled company, your time horizon is very different. You reimagine your business, you think about your business in years and decades. Reconceptualize how you are investing and what the real priorities are. By ourwe are joined reporter. Previousl dells stance that private is better is potentially changing. Right now, dell is considering whether to list, do some other strategic move, or nothing at all. Key thing is, the first chance considering options for going public again, that will be discussed. And deciding on a Board Meeting later this month. This is only of a few years after the lbo, and after dell bought emc. This company is looking at options. The reasons are interesting. Emily i interviewed michael dell at the end of last week. He reiterated they are happy with it the way things are. They have debt, is this a way to unload it . That is what folks are pointing to in terms of rationale. Their debt servicing load is a big chunk. About 4 billion in debt from last year. And you have a change in Interest Rate reduction rules that would potentially lead dallas, not able to deduct. That cost would potentially go up. Yes, being private, it will to invest in the business, is great. But if all that cash has to go toward servicing your debt load, capital structure, you potentially need revenue. I will say, an ipo is not the only thing on the table. Pivotal, another dell Company Looking at taking that public. 5 billion to 7 billion company. Bottom line, it seems like dell is considering different options for how it can bring in extra cash without having to raise more debt. Vmware factors in . It is a company they have a big stake in. If you look at the landscape, potentially there is a way for the mo get public via ware. That is what folks on the street are talking about. That is floating around. We had one source float the idea. It seems less likely if youre listening to the analysts at citi. Dallas looks through its corporate structure. And silver lake, the private equity firm, has a large stake in dell, starts to look through its corporate structure, perhaps it is time for an exit to realize these. Emily how does it fit into the ipo pipeline . We dont have exact timing for dell, the end of this month. You would think if this bull market is getting stale, they want to go out before there is some kind of turn in the equities. Stocks have done really well. New stocks have done really well, especially in the tech enterprise space. They are up about 30 , new companies that listed last year. 70 . 2016, when you are talking consumer interest, it has fared pretty well. The question will continue to be for new investors, is this debt load big enough for investors to swallow . Barinka,ex brink of thank you. Mark zuckerberg on a mission to fix facebook. One is not happy with what he has planned. This is bloomberg. You are watching Bloomberg Technology. Here is a check of news. President trump says he is open for business. The playinged that field has to be leveled when it comes to trade. We cannot have free and open trade if some countries exploit the system at the expense of others. Trade, but ite needs to be fair and it needs to because, and the end, unfair trade undermines us all. The u. S. Will impose sanctions on 21 people over russias actions in the ukraine. The announcement came after secretary of state Rex Tillerson met today with ukrainian president in davos. Ukraines move was not recognized by the u. S. Bill cosbys legal team says prosecutors withheld and destroyed evidence that may have helped his defense. Was accused of dragging and molesting women in 2004. A assault butnied could she could make money suing. Addressing members of parliament today, brexit secretary urged the eu not to take advantage of the u. K. During the transition. After britain exits the block. As we move from being a member of the European Union to its closest partner. The relationship would not just be for the shortterm, but one that we should under for our Mutual Benefit for decades and generations to come. Confirmed theice debts of a billing error as a double homicide. Police say there were no signs of forced entry and no suspects have been named in the case. State river is rising a near record levels. Dozens of residents have been forced to leave their home. Federal police raided naval bases in argentina as part of an investigation over the disappearance of a submarine carrying or a four crew members. Wants to review documents to the condition of the vessel before it submerged area argentina gave up looking for survivors, but not for the nra send one. Global news, 24 hours a day, powered by more than 2,700 journalists and analysts in more than 120 countries. I am alisa two more of Bloomberg Technology is next. Emily this is Bloomberg Technology. It was just over two weeks ago when facebook should sent shockwaves through the industry about its new feed algorithm. When twos at a time thirds of americans report getting some of their news from social media, and one person not happy with the new chain is audrey cooper, editor in chief of the San Francisco chronicle recently penned an oped to Mark Zuckerberg, sink you are making the countries absolutism even worse. It is a likes to say creative company, but surely, there is a more creative solution. I would like to welcome object cooper right now i would like to welcome audrey cooper. I was holding back at the time, but maybe not. Facebook says, how big of a difference is this for a publisher like you . Haveer the last year, we seen facebook traffic go down 60 , so this is a long time ising but it our website monetized through subscriptions, so we dont try to monetize through traffic area what i am worried about the smaller publishers and tv stations. I heard from a station that set a majority of their traffic to their website had been coming from facebook. You think about your small made neighborhood blogger who relies on that traffic, then you have a real problem. Emily you talk about facebook, if theypublication say jump, you say how high. What are we upset about here . The first is the capricious nature that facebook is taking the responsibilities to provide news. They group this company by going after publishers saying put your stuff here, trying to get people to spend more time on facebook. Milliony serve 140 americans fake news to the election cycle, and then this news thing as too hard, and we are going to give up. The way americans consume news, and they have a responsibility for that. Facebook is trying to help the fake news problem by doing this, what is the optimistic view from facebook question ma . If they get this right, you are able to cut out the bad stuff. Maybe the russian propaganda, new sites relying on dubious sourcing are making stuff up. Point, the audreys problem is that facebooks interests are not aligned with the interest of publishers. Publishers care about their brand and what readers to know who they are, and as far as facebook is concerned, the matter with the algorithms are and what Mark Zuckerberg says, for them not to think about brand but think about here is this think that all my friends are telling me, at least interesting things. Normalns counter to what media has done in the history of business. Emily facebook is also apologizing for certain things, in a blog post, social media seemed like a positive, the last Residential Campaign change that withforeign interference, the rise of fake news and echo chambers. They are admitting that facebook can hurt democracies. Is that enough for you . Going to make is think so much worse, and it is bizarre. There are people who signed up to follow the San Francisco chronicle on facebook. They opted in to us sending them news. Now facebook is say no matter what you wanted, we think it is bad for you and in use will make you cranky. They are taking away this option from users who wanted their news that way. Emily facebooks argument will be that this might help some publications. Read on it is that for a long Time Facebook has this problem where people are not sharing as much. Facebook wants you to not only consume facebook passively, but to share stuff. Facebookhat makes valuable to advertisers. One cynical take is that facebook is doing some the good is good for its business and painting it as it is doing something good. Havea something they might done independent of this whole conversation about facebook and its place in the world. The other thing here, when you think about it, facebook keeps correcting itself. Mark zuckerberg at the beginning of the year wanted to figure out facebooks place in the world and to make sure that time on facebook as well spent. That last year, and the company has struggled to figure out how to police the stuff. Cleart know if it is anybody inside of facebook, and certainly not outside of facebook, how they could do this and balance the social needs with the needs of their business. The stock has continued to perform well after a little bit immediately after Mark Zuckerberg said that users would be spending less time on the platform. Investors think this is good for business, but what does this mean for the world questio . There is one hand, this talk about facebook being more addictive than ever. The ceo of salesforce sang facebook should be compared to cigarettes and regulated like big tobacco. I am starting to agree there is a reason there is so much cap videos and fake news on the internet, because that is what people like this share. When you take away the actual news from actual publishers, this is going to get worse. The echo chamber is going to get worse, the fake news or bump is going to get worse the fake news problem is going to get worse. Im not going to turn down a franchise, but, we are trying to get used to people where they are at, and people were on facebook. We have a responsibility to monetize our business in a different way. When you are constantly, capriciously changing the algorithm on whatever when you have, what you expect us to do at that point . Emily audrey cooper, thank you. Max, thank you as always. Not to a story we are watching, google is pushing into the social place, a program called bulletin that will help people publish events. You can post photos and videos from your phone, and it will take on the giant of competition like smalltime print and online publishers. Up, after seven years of construction, amazon will unveil its place in seattle. Will give you all the details next. And this week on Bloomberg Television we are bringing you our best interviews from the week, including conversations. Now we talked to him about rising concerns about tech addiction. Tweet and saturday for the boost of bloomberg tech. This is bloomberg. Sophia has acquired the engineering teams of mortgage start up carl linden. This bolstered their offering beyond student loan refinancing, so the acquisition on friday taking up on the clara team will ramp up our technical capabilities. On monday, amazon will open three architectural centerpieces of headquarters in downtown seattle. They flourish and tropical climates and the place that amazon employees will be able to enjoy as they went down from eatings meetings, and phone calls. Sony does now, spencer, how does it feel to walk through one of these things . The first thing you notice is the big difference and humidity. A coolin, and it was rainy day in seattle, and you feel a blast like you are walking into a greenhouse, but not as hot as a greenhouse. That is the first thing you notice, the humidity is 60 compared to 30 for a Typical Office setting. That is the first thing you notice,it is very green and lusd you walk around and you feel familyu are in a swiss robinson. Or if you are a star wars fan, it feels like endor. It feels like you are meeting in the trees, and it feels like a big difference from a desk in a cubicle. Emily amazon is in the center of seattle, unlike facebook, apple, google, or in suburbia. Talk about the challenges and putting a rain forest in the middle of a city headquarters. The big thing is that they had to have to build a building that had a mature landscape, so the biggest challenge was that they have a centerpiece in the a ruby that is a 55 foot tall tree. They did not want small trees on opening day, they wanted a big, mature tree. They wanted to transport this tall tree, from a Southern California farm, all the way to seattle and hoisted via crain and take the severe apart, because the spheres were already built and they couldnt get it into the doors. They dropped the tree through the top, and then resealed everything again. Emily how do they expect to use this building . It is largely a place for people to recharge and refresh. It can handle 800 people at a time, and it will monitor access to make sure nobody is hogging time in their, so it is wifi accessible. You can interview a candidate, that is one thing they like to do, they see it as projecting an image of a forward thinking company. So you are applying and taking a job, an interview in this fear could be something that convinces you that amazon is a place to work. Spencer, covering amazon in seattle, thank you. Up, twitter leadership changes to blockbuster earnings, we take a look at the week that was intact. This is bloomberg. Twitter is adding a new advertising tool to its arsenal. They are allowing banks to seen as a moments are feature, and advertisers will be able to add a cover image to its moments. Should note, they offer bloomberg offers a twitter offering called pick talk. Tictoc. The part of the recap intact, we have selina wang and executive editor tom giles as what this means for twitter and the social media company. The plate a great role in the revenue part of the business. He lives a bit twitter, but not enough that will stop the positive momentum the company is in now. We know that advertiser growth is rejuvenating on the platform, and his leaving is not going to stop that. It does leave a question about the future of the company. Jack dorsey is the ceo of two companies at the same time, and having a coo is seen to be a big reason because they have a dual time coo, and it begins to question what happens to the company and how the board begins to fill that. Im happy of him and proud of everything, just on twitter coming has been a friend, partner, and mentor for years. He has my support and gratitude, thank you anthony. Overflowing with gratitude, but at the same time, we are hearing chatter about salesforce acquiring twitter. What are we hearing and what does it mean questio . Several companies looked, disney look, a lot of Companies Looking at twitter, so the chatter has found its way back. We saw a take in the twitter stock today, and they got an extra filler from citroen which says there is a lot of growth in store for twitter. A lot of bullishness there. We have found no reason to substantiate the salesforce twitter speculation. Ande going to stay on it talk to everyone about it, but so far, not spending a lot of time researching. The big question is what changed from two years ago. They walked away, the shareholders decided it was not a good place to put their money, into a declining asset that was not part of their core business, two years later they address those concerns, and many people dont see it as a declining asset anymore. Advertisers and users are coming the, but they havent question on abuse and harassment, which has gotten worse over the past year, especially over concerns of russian manipulation. Theres no substantiated claims right now because twitter has no controlling shareholders, if someone does put a price that cant be said no to, and shareholders will have to consider that. Emily netflix and intel reported earnings this week, netflix stocks storing soaring, and intel despite the chip what are the highlights . We cameend concerned because of the chip flock that was disclosed in early january. The question is how much of an impact it will have, and the fix. Ave heard Companies Applying fix and shutting down servers and making servers not function as well. That said, intel has said from the start that they dont expect Material Impact from the chip was that was revealed, and born out of the results today, so you saw stocks hit a 17 year high. Upbeat sales for the last quarter, a reflection of the demand for their server chips. These real powerful chips that are running servers, so a lot of optimism and relief. Amazon, applek, earnings coming up next week, selena, what are we watching . Facebook, Mark Zuckerberg is taking risk of the longterm growth he said theres going to be massive increases to address these problems of Security Intelligence and content his goal this year is to fix , so he will send spend whatever he needs to do that. It might be a shortterm loss in margins, but the question is how these used feed changes will impact advertisers for the shortterm. They will prioritize stuff from friends and families, but, facebook has a lot of different levers they could pull, so advertisers will be watching how that monetization is going. And othermessenger apps in monetization, so there is lot of positive places to look. Amazon, theirnd Holiday Quarters are important, and will be looking at the iphone number to see how the iphone x and eight posted. Question is how much demand there was, we have mixed reports overseas for the demand of the iphone x and was it as robust as people had hoped. The senses might not be so much. They did live up to the hype . You have chinese competitors in that are all putting out really formidable phones and are taking a share away from apple and samsung. How much of an inroad today make in the Holiday Quarter . We think there will be good growth, but does it live up to the hype, and there is a question of nesting of apple. As we were discussing, we have a slew of tech earnings next week. Fromcoverage and analysis facebook, apple, amazon, and alphabet. That does it for bloomberg tech. Heck us out that is all for now, this is bloomberg. What was the human genome project . Was it harder to discover the human genome question mark byht be able to achieve that tinkering with human biology. Markable type of opioid overdoses than a car wreck last year. Just unbelievable