American diplomatic personnel in cuba and is investigating unexplained incidents in havana. A new fbi report says theres no evidence supporting the initial theory of a sonic weapon being used. Pope francis delivered a message of peace to the people of chile and peru ahead of his visit to those nations later this month. History of is expected to cover issues important to francis poverty, migration, and the environment. It will be his 22nd foreign visit in the 25th and the fifth to his home continent. Im a alisa parenti. This is bloomberg and bloomberg ishnology with emily chang next. Emily im emily chang. And this is bloomberg technology. Coming up, more fallout spreadinghip flaws through technology. Microsoft says it has a fix, but it may impact performance. Plus, more highlights from our. Overage and up, up, and away. An ultra secret satellite launched by spacex goes missing. How big of a setback is this for their ambitious 2018 schedule . First, to our lead. The continued fallout over the microchip security flaw affecting nearly all of the world devices. Microsoft says fixes for the meltdownd baltimore vulnerabilities may significantly slow down performance. Is also temporarily suspending some updates to windows operating systems that amc a. M. Poorlyt are performing as a result. The primary focus of our decisions and discussions have been to keep our customers data safe. As of now, we have not received any information that these exploits have been used to obtain customer data. Us now, ian king who covers the industry. It sounds like microsoft and intel are at all its. Ian to start off, they were were the world, everything is going to be fine. Microsoft says they are finding problems in certain circumstances, so the industrywide effort to put on a brave face appears to be fragmenting. Emily what is microsoft saying here . that in certain circumstances, it appears as though the slowdown as a result of these remedies being put in place are worse than had been previously thought. Emily talk about what this means. If the fix does not work, then what . It is a choice, right . You fix it and you are safe, but your computer does not work as you would like, or you dont fix it, and your computer is vulnerable. Do you struggle with a system that does not work as well . There are all these now ugly alternatives that appear to be out there. Emily we also have an update from arm, saying 5 of their chips are affected. Luckily its not 100 . Ian this is important because remember their technology is in every smartphone. Many producers are coming out saying since 1991, 120 billion chips using the technology are out there and only about life percent are vulnerable to only one of these potential exploits, so they are saying this is not a huge deal. Emily we now have headlines crossing the terminal about senators urging the sec and the department of justice to investigate. Last week. Bout this you mentioned it was a plant share sale, but he is now down to the minimum of his holdings. Do you expect more to happen . Ian as we discussed, intel says this is a regular program, this is the way the company does this, however, this problem was known to intel before this ban was put in place. People are saying look, this may be a regular plan that they always use to insure themselves against this kind of accusation, maybe that doesnt stand up in this case, and thats what these two senators are saying putting pressure on the sec to go have a look at this. Emily we also have a headline crossing out of store simple appliances, saying they do not expose any exploitable vulnerabilities related to intel. What does this mean . Ian again, adding to a list of companies that say no real problem here. The most prominent amongst those is probably google. They say they have patched everything. There is no slowdown. Everything is ok. Really getting conflicting information. Were working on finding out what really is the truth here. What really is apparent is a lot of people do not actually know. Emily what next . What are you waiting for . Ian thats the thing. We need to see these patches deployed. We need to see what kind of impact that will have. Emily as a consumer, should you download the patch or not . Ian the consistent message is average consumer, you really have nothing to worry about. Download the patch, youll be fine. Emily we will continue to follow this story. Tomorrow, we will be speaking 1 00 p. M. Ceo at eastern time. Another story we are keeping our is how akamaie on technologies is working with Morgan Stanley to explore Strategic AlternativesGoing Forward including a potential sale after the internet Performance Company was targeted by eliot management, which was looking to improve shareholder value. Scott devoted joins us live from toronto with more. There has been pressure to explore Strategic Alternatives. What does this mean . Means they are going to reach out to some strategic buyers and probably some private equity players to determine if. Here is value in a sale emily talk to us about the is inon to my akamai right now. Scott it is an Unusual Company and that it has been at least a rumored potential takeover target for several years. Over the last 20 years, it has build out its network of servers all across the globe. I think there in 130 different countries, and it would be difficult for any company to mimic that kind of network, and because of that, they are quite coveted, and there is potential that there will be several big players interested in competing for this asset. Emily who might those players be . Top of myt off the head, microsoft, oracle, google, potentially at t and verizon. As we were discussing with ian king, all these servers around the world impacted by this chip flaw do you think that will impact the potential deal here . Scott no, i think the real value they have is the real estate they have. The location of their servers will be difficult to mimic because these are a places like universities and what have you and it would be difficult for any company to build a network like this. Obviously, there is an issue today, but in a few months, obviously, this is going to have no impact whatsoever on them. Emily scott, thanks so much for that update. Venture Capital Funding in the u. S. Has hit its highest level era accordingcom to Research Firm pitch book. The last time this much money put in the Silicon Valley would be during the early aughts. Five has entered the top for the firsts time ever. Investors received 11,241 u. S. Patents, an increase over 2016. China ranks behind the u. S. , japan, korea, and germany overall. Coming up, conversations him carlos ghosn ceo of Renault Nissan joins us to talk about the future of automotive engineering. Also, we have sony ceo to ask if a plan to sell tv studios. More highlights later in the show. This is bloomberg. For now the strategy is to shore up our Motion Picture business and make sure any of the deals we make during the considering the future that we are in the drivers seat, not in a situation where we have to give up control of the axis we have grown over the years the assets we have grown over the years. Grown over the years. Emily apple is facing a french criminal probe over whether the company has deliberately slowed iphones. This follows allegations from consumer groups. A preliminary investigation began against the Company Last Week four programmed obsolescence and deceit. Apple issued an apology and is replacing batteries at a discount. Lets turn now to our coverage future of the the Automotive Industry has been a huge focus. On plans to invest 1 billion over the next new years. The chairman and ceo joined us in vegas to talk about the new fund. Take a listen. Carlos we have so much to do for the next six years about the transformation of the car and i dont think we can do it alone. I think we need a lot of innovation and creativity coming from startups or also support coming from partners and we think the way we are organized today is not sufficient. Thats why we came with an Additional Organization with it which is a corporate Venture Capital with investments up to 200 million a year or the next midterm plan, which adds up to more than 1 billion in order to support our efforts transforming the cart and two electric, autonomous, and connected products. Emily investing hit the highest level since the dot com bone, 84 billion to clone startups last year. How much competition is there to develop and employ the kind of technology you are trying to develop . Carlos there is a lot out there. I can see it. I am receiving a lot of people, hearing a lot of ideas. We have to be very careful, because there are a lot of very interesting ideas, but how many are going to survive, how many are going to be really implemented, executed at this at a reasonable price that consumers are willing to pay this is where the challenge is. When were talking about 1 billion over the midterm plans, lets not forget that the lions 50 billion. Ting emily will you be reading peoples brains and using that to help them drive their cars . Carlos this is an illustration about the fact that this is not only about autonomous driving, which means the driver drives whenever he wants, he can let the car drive for him whenever he wants, but also that the car has the driver be an effective driver. That is what we call an enhanced driving. We want to add what we call an enhanced driving experience where the car has the driver be a better driver and optimize the driving experience. That is what they are talking about. Emily when do you think we will have fully Autonomous Cars on the road, and how will people use them . Carlos i think it will be down the road within the next four years. I am talking about mass marketing. Im not talking about having prototypes ready for use. We already have prototypes working very well. It may take three or four years before regulation allows this to be massmarketed, before we make sure that the system is totally robust in any condition. I would say 2021, 2022. , that soon. How do you see u. S. Tax reform impacting auto demand . Do you think there will be a shift toward the luxury segment . Carlos i think it supports spending and consumption, which means i think this will be good for the Auto Industry in general, and the fact particularly that the support emissiontives for zero cars have been maintained is also good news for the development of electric cars. Is positive. Emily what do you hear out of nafta negotiations . Do you think there could be a deal that will not raise the price of cars significantly . Carlos it is very difficult to predict. I think in this field, we have to be prudent, watch carefully what is going on, try as much as possible, give different policymakers data in order for them to make the best decisions for their own country. Talking about the United States but also about mexico. That is what carmakers can do, just make sure that the revision of the policy is in the best interest of the different parties. Emily businessweek once wrote a story that if davos were a person, it would be carlos ghosn. President trump has announced he will be attending this year. What do you make of the president attending this decidedly global event preaching America First . Carlos i think it will be extremely interesting. As the first place where people meet to discuss about important subjects that matter for countries and that matter for and the more people participate, particularly people with high power levels, the more interesting it is and the more it gives a meeting to davos, so i welcome this opportunity to hear from the president. Emily your term as the head of the Alliance Ends in june. What can you tell us about what kind of person might replace you and what your plans are . Carlos i do not think we are yet there, but everything will be announced in time. There will be a lot of opportunity when it comes to driving the companies together. Emily nissan narrative gap with honda to 50,000 cars. Can you catch them in 2018, and how . I dont think at this level. We are more in a longterm thetegy trying to bring best car possible to the market and let the market decide exactly who deserves what. Today is atalliance the top level of the industry. We will have ups and downs like. Veryone else emily just some of my conversation there with the chair and eeo of Renault Nissan. Ceo. Th the chair and coming up, spacex not off to a hot start. How a missing military satellite could impact the future of the company next. This is bloomberg. Emily now a story that is out of this world. A japanese astronaut living on the International Space station says he has grown 3. 5 inches since arriving just over three weeks ago. The growth spurt is causing concerns that the astronaut may not fit into the seat of the vehicle supposed to bring him home in june. We should say it is normal for astronauts to grow while in space due to the absence of gravity, allowing the vertebrae in their spines to spread apart. A military satellite spacex launched on sunday is missing. A portion of the falcon nine rocket connected to the satellite may have never made it into orbit. Elon musks Company Denies it was at fault, saying the rocket right. D did everything this could jeopardize highvalue defense contracts in the future. Ax joins us what exactly went wrong here . Know exactly what went wrong. Its a spy satellite, so details have an extremely sketchy. What we think happened is that to reachlite hailed orbit. Some are speculating there may have been some problem with the way it detached. Spacex came out this morning with a very strong statement saying that their rocket, the falcon nine, their breadandbutter, the main rocket they have right now, performed perfectly, so that suggests maybe there was some sort of malfunction with the little device that is basically used to attach the rocket to the satellite, but again, it is all very sketchy and unclear because its classified and the government we should probably also be aware of the possibility that maybe the satellite is up there and this is all just a smokescreen, but the important thing here is that spacex is basically saying we are going full speed ahead, and that comes in contrast with how they have responded to previous accidents when their rockets have exploded, you know, on the launchpad or broken up on liftoff. They have often been pretty upfront. Elon musk has made it runs, apologizing, he wants to get to the bottom of this, and so far, all we have heard from spacex is them saying, weve done everything right. Full speed ahead. You should talk to the government if you have questions about the satellite. Emily the satellite was built by Northrop Grumman. The customer was the United States government. What do we believe it was intended to do . Im not even sure on the details. Im not sure anybody is. As i understand, its a spy satellite. This is a line of this in this business tesla has been trying to get into. If it were found there were some kind of screw up on their part, that would have applications for their business, but they have been hoping to do many more of these launches next year and in coming years. U. S. Government, including the intelligence agencies, are being potential customers for them as well as other aerospace companies. Emily Northrop Grumman has said publicly only that it is a classified mission and they cannot comment on classified missions. What does this mean for spacex and their very ambitious launch schedule they have for 2018 . As i think it means as long they do not have any additional problems, as long as no more rockets blowup this year, they will probably be able to get past this and be on track. That said, this is a business where i think perception matters. Right now, they are trying to keep a brave face and say they did everything right. That said, again, if Something Else goes wrong, if there is some other reason to doubt their capability, could be a different ball game, but for now, im not sure this will change anything. They are planning this big launch of their next generation rocket, saying that will move right on schedule. Maybe the upshot is nothing, but again, any kind of accident is problematic for a company like this. Emily let us know if you solve this mystery. Coming up, how do you build the Goldman Sachs of cryptocurrencies . We will talk about that next. This is bloomberg. You are watching bloomberg. Im debra mao. The children of undocumented immigrants facing deportation from the United States have won a court order temporarily blocking the decision to end the socalled Dreamer Program in march. A judge in San Francisco has asserted that courts have the authority to rule on whether the president improperly decided to terminate the program. South korean president moon has promised never to accept north Koreas Nuclear program. It comes after delegations met facetoface on tuesday and disagreed when the south proposed talks on denuclearization. President moon is open to meeting with kim jongun, but only under the right conditions. The world bank has lifted its Global Growth forecast. The lender thinks 2018 expansion will come in at 3. 1 , up from an estimate of 2. 9 in june. The bank says investment and manufacturing are driving a broad cyclical recovery aided by loose Monetary Policy and improved confidence. Billionaire jeff goodlatte reckons that the s p 500 will end the year with a negative return. In his webcast, he said investors are pricing in no recession, which is why he sees the u. S. Benchmark falling. Thinks commodities could be one of the best investments of the year. Im Juliette Saly in singapore. Is he correct . We are seeing a little bit of a stop from that rally in asian equity markets. They are lower for the first time in seven sessions. New zealands market l