american diplomatic personnel in cuba and is investigating unexplained incidents in havana. a new fbi report says there's 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. i'm a alisa parenti. this is bloomberg and "bloomberg ishnology" with emily chang next. emily: i'm 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 "we're 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 don't 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 it's 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 doesn't stand up in this case, and that's 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. we're 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: that's 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, you'll 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 alternatives going 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 driver's 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. let's 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 year's. 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 don't 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. that's 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 we're talking about $1 billion over the midterm plans, let's not forget that the lions $50 billion.ting emily: will you be reading people's' 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. i'm 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 don't think at this level. we are more in a long-term 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 musk's company denies it was at fault, saying the rocket right.d did everything this could jeopardize high-value defense contracts in the future. .ax joins us what exactly went wrong here? know exactly what went wrong. it's 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 bread-and-butter, 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 it's 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, "we've 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? >> i'm not even sure on the details. i'm not sure anybody is. as i understand, it's 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, i'm 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. i'm 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 so-called 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 korea's nuclear program. it comes after delegations met face-to-face on tuesday and disagreed when the south proposed talks on denuclearization. president moon is open to meeting with kim jong-un, 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. i'm 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 zealand's market leading the declines. asx 200 had been at a decade high. taiex off by 0.7%. have a look at the hong kong hang seng index. , higher for a 12 consecutive session. in records longest going back to 1964. a lot of the property developers as well. the yen strengthening by 0.3%. the yuan has been in focus as well today. we did have the pboc weakening the most since september. it has been upgraded from goldman. we have seen a lot of movement in korean ship makers as well. a bit of a flat session coming through on the regional index. ♪ emily: this is "bloomberg technology." i am emily chang. microsoft says fixes for security flaws in chips could slow down some servers and pcs. the statement suggests the slowdown could be more substantial than previously indicated. intel confirmed its chips were vulnerable to hacking. intel chips are used in more than 90% of laptops. technologies is exploring strategic alternatives. according to people familiar with the matter, the company is under pressure from elliott management. the activist investor has said it would seek talks with the company. is working with morgan stanley as an advisor. one of bitcoins most outspoken champions plans to build the goldman sachs of crypto. michael november says he will start a bank dedicated to cryptocurrencies. our editor at large, cory johnson, is in new york. two editor at large is. cory's shoes are too large for me to fill. >> emily: you are too humble. , about theknow, eric plans? hase know plenty because he had to detail some of them. it is a complicated series of transactions. , galaxy digital lp, is going to buy a canadian startup called first point capital. then it is going to do a reverse takeover of a canadian shell company. then it is going to use that entity to raise $200 million in a private placement. finally, it is going to start trading in toronto on the tsx venture exchange. this will be a publicly traded merchant bank specializing in cryptocurrencies and blockchain ventures. emily: it all sounds very highly orchestrated. is it something he can call off? >> whether he can pull it off is something we have to see. it does depend on the enthusiasm for bitcoin. it depends on how much investors , how much confidence investors have in novogratz. he had a record as a macro trader. for many years, he was very successful. years, thel two macro fund that he was running lost a ton of money and had to be liquidated. that wasn't a particularly good and point for him, but he does have a reputation, and he's been a very savvy investor in cryptocurrencies. don't you just love this idea, the goldman sachs of crypto? put them together, what have you got? emily: sounds good. what do you make of this, given that mike novogratz shelved plans a month ago? >> merchant banking is a clever idea when it comes to cryptocurrencies. what we are really seeing is the idea that the things you can do with cryptocurrencies are splitting into all these notions. some of them are very odd. some of them are ridiculous. the ideas that companies need lending on a small term basis is an interesting idea. it suggests that he believes there's a business model that might generate cash flow for small businesses. even as he's using the public markets to raise money to do that kind of thing. emily: jamie dimon has said he regrets calling bitcoin a fraud. that has been repeated by us and others. >> that is where he and mike novogratz would agree. blockchain israel. novogratz's enthusiasm is born of more than just the fact that he's made a time of money buying and selling cryptocurrencies. he believes that blockchain, the underlying code to all cryptocurrencies, has the power to transform finance. dreamyse that is kind of , but that is sort of what dimon is getting at and it is the reason the other ceo's are looking at blockchain, and why they realize they can't ignore the bitcoin futures market. one thing people may get confused with, the merchant bank is not in and of itself going to the crypto. there's going to be no token near. he is building a business on the one hand. it is going to do advisory work, asset management, have a vc fund. it is also going to trade cryptocurrencies like the hedge fund would have, and it is going to do principal investing. but it is not going to the crypto. emily: we seem to be in the middle of the perfect storm of exuberance and regulation, and now we have the ft. worth branch of the sec cracking jokes on twitter about blockchain, tweeting today, we are contemplating adding blockchain to our name so we will increase our followers by 70,000%. is this something to joke about? cory: i'm a big fan of jokes. sec is tob of the protect investors from the worst markets have to offer. they've halted exactly one of these stocks. that is ubi blockchain. it was the second largest of those companies, briefly achieving $3 billion market cap. right now, the tally is one-to-one. one joke and one enforcement action. i think the tallies should be 100 jokes and a lot more in work to administer a fair market. they should be careful in using their enforcement power. the sec is needed to protect investors. ubisaying that is what blockchain or others are doing, but someone is preying on investors. the sec has not taken any action. sticks notion of a tweet because they haven't done much besides tweet. emily: eric is dying to jump in. >> it is not like the sec isn't paying attention. the sec came out with a statement last week alerting investors to the risks of cryptocurrency investment, telling the market that it is vigilant, that it is pursuing potential enforcement action, and reminding people that this is, as much as anything we've ever seen, a buyer beware kind of market. even if the sec fines fraud, the agency wanted us to know there may be no money left at the end of the day. cory: that is not what their job is. -- investor is protection is one of their jobs. promoting efficient and competitive markets is another one of their jobs. that is one of the reasons regulators have taken this kind of hands-off attitude. whatare trying to find out kind of market it really is. emily: buyer beware indeed. thank you. our editor at larges, erik schatzker and cory johnson. sony has had big moments at the box office thanks to smashes like spiderman and jumanji. the ceo says the company isn't stopping there. this is bloomberg. ♪ emily: fitbit wants to make sure your kids are healthy and active, and the device maker is said to be making a smart watch for kids. not known how the new devices will differ from existing fitbit products. research estimates that 30% of total smart watch shipments in 2021 will be devices aimed at children. while disney makes shockwaves in entertainment, sony isn't content to just sit back and watch. we spoke with sony's ceo earlier. he told us sony wants to be a buyer in the media consolidation wave. we asked who they might be targeting. >> it is premature to start naming names. the strategy right now is to make sure that we have a very strong operation first and foremost. as these discussions come up, we will enter into them. we idea is to make sure still have our own studio. emily: let's talk about the broader strategy. would that involve better distribution, better tieups in asia, a focus on more niche movies? >> i think you hit some great points. the first thing we need to do is look at the library we have. spiderman obviously being one of the greatest. we have a lot of other ip's, jumanji for example. and make sure we go back into our library and take advantage of the ip we have. there's also potential for tapping into our videogame ip. those discussions are ongoing as well. it is also making sure that we have the right kind of financial arrangements as we get into motion picture production, to make sure we have the appropriate producer fees, and make sure we control production costs. emily: you guys are a stakeholder in spotify. what do you think of their plans to list directly, and does sony have any intention of selling shares? this point, we have not made any determinations in that regard. decision to go into the public market. themtime, it will give more ability to make more investments. emily: the music landscape is shifting dramatically. curious what your thoughts or expectations are for youtube's paid music service and how that will impact the record business at large. spotify, any of the other online services we have deals with is really going to make sure that the recording grow industry continues to and that we give artists more opportunities to get their music out to consumers. the music business is a very important point for further growth. we were talking about the decline of physical distribution. with streaming, i think it is a great time to be in the music business. emily: sony tv made a deal with facebook. what is the motivation for that with streaming, i think it is a greatdeal and what do you think facebook's intentions in music? players,ther online they are also looking to make servicepart of their that they provide to their customers. edgenk it is a competitive that a lot of the providers need to have. music is such an integral part. through 2018, out what do you think is the biggest risk to economic growth this year? perspective, we want to make sure whether it is multilateral or bilateral discussions between countries and territories, that there is a product, of content, data, as well as people. hindranceere is some to stop that free flow, that is going to impact your business. i want to make sure the free trade of various goods and services is on the forefront of every thing we talk about. emily: sony ceo's traditionally have a six-year tenure. areous what your own plans and what your intentions are for this year. serve at the pleasure of the board and shareholders. we are completing our second planning session, going into our third as of april, so we want to make sure we plan and execute accordingly. emily: that was our interview with sony's ceo in las vegas. coming up, how chinese startup neo plans to compete with its bigger rivals in the race to capture market share. we will talk to the company's cfo next. this is bloomberg. ♪ more news out of the consumer electronics show in las vegas. amazons alexa service will be available in certain toyota and lexus vehicles. the virtual assistant will let drivers and passengers get directions, control entertainment, and control other functions via voice command. now to nio, the startup that raised $1 billion from investors led by tencent. they started vehicle sales less than three years after the company was founded. cfomackenzie spoke to nio's in shanghai. take a listen. investors.uided >> how much of it is down to having the facilities, the factories, the buildout? we see these being launched in auto shows. tesla has faced it. what are the challenges? >> our plant is up and has capacity for 150,000 cars. we are putting in all the robots and the lines assembling it. i don't think we will have as difficult a time. china is the king of manufacturing. -- they know how to manufacture parts. >> where are the biggest markets beyond china further down the line? >> we are targeting to be in the u.s. in 2020 and we will enter europe as well. >> in terms of the infrastructure in china, charging points are very important. what are you seeing in terms of those charging points, ensuring the owners of your cars can get from point a to be smoothly? >> we have battery swaps. our car can swap out a battery in three minutes. we will put up a target of 1000 battery swap centers just like gas stations. we have trucks that run around with 190 kilowatt batteries that can charge you in 10 minutes. we provide that for a monthly fee. we are focused on consumer use. we are also tied into the public grid. at 42,000ug-in chargers across the country. >> do you see yourselves as the tesla killer in china? is that a key competitor in the chinese market? >> i don't think we are a tesla killer. they are our only competitor in the premium sector. until 2019 or 2020, there's no other cars in our sector and tesla is more than double our price. with the subsidy of the chinese government, we are about one third the price. broadly, we've seen a concept car at the ces show in vegas. we've got others involved in this. then you've got the other manufacturers building out in china. how competitive is the space? >> you probably will not see as much consolidation as you will see companies that ran out of funding. the traditional manufacturers have partners in china already. they don't quite have a car until 2019 or 2020. there is competition coming, but it is not here yet. >> batteries are such an important part of this as well. we've seen real progress in developing batteries. what kind of progress are you expecting around the technology with batteries? you will see more capacity batteries. there is a lot of talk about rapid charging. it is very rare where you can charge a car in 15 minutes. it takes right now an hour, hour and a half. there's a lot of exciting technologies. car, the nextur car coming, same battery pack, will be able to go 455 kilometers to 500 kilometers. demise that will be the of the ice car. electricity is much cheaper than gas. and it doesn't pollute. i think that is where we are headed. emily: that was bloomberg's tom mackenzie with nio's cfo. that does it for this edition of "bloomberg technology ." we will be live at ces again. you won't want to miss our conversation with elaine chao. a reminder, we are live streaming on twitter. check us out. that is all for now. this is bloomberg. ♪ chalene: the following is a paid presentation brought to you by beach body, but filmed by me on my iphone and directly from my heart. hold up. i want to ask you a question. how do you feel when you look at yourself in the mirror? not so good? like, gross? who is this person? like you know you have to do something, but it is so confusing. there are fad diets, extreme workouts, and it is working for

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