Cue ramy on right on cue, the foreign minister put out his response to this that the act out of the United States is an active International Act of terrorism. Were going to get you more details on this story, information thats been for the lastough two or three hours or so. The state of the markets are looking like this. In terms of risk assets, going into the lunch break in hong kong, u. S. Features down 20 points, dollaryen low to the day, still fairly strong on the japanese currency, fly under the asian benchmark, and gold is 15401550. Wards 4 , but still substantial gains. He was features are looking like this u. S. Futures are up my mistake, moving up as london joins wakes up. Good morning to you. Well get to the latest on all of this. Jodi schneider is onset. And we have another reporter joining us. Jodi, im going to start with you, the significance of this act. Jodi very significant. Probably the most tense moment and certainly the biggest escalation in relations since the end of the iraq war in 2011. Weve now seen, with the u. S. Saying President Trump this is being done on President Trumps order as a defensive move, is what the u. S. Is saying, given the u. S. Is saying they had concerns that there would be an attack on u. S. Diplomats and servicemen in the region. That is the reason being given. This is a very significant figure. This iranian general was a veteran of the iraniraq war. He was seen as being responsible for defeating isis in iraq and syria, and for basically keeping isis largely out of iran. Is a household name in iran, so this was a very significant u. S. ,ike attack by the and it is certain to escalate things. Weve already heard from iran that they will retaliate. Ramy as a mental exercise, you can almost look at the other side of this and imagine a u. S. Official, perhaps of that level, being subjected to this. Its the magnitude to what youre pointing to, the potential reescalation of tensions. Take us through what we need to follow. Jodi obviously, we need to see what iran does. Were hearing from iraq, as well. We havent heard much from President Trump. There will probably be more we hear from him, as well, but its what goes on in the grant and how is this received . How is this received by other countries . What they seem to think, obviously, the u. S. And iran have, had increasing tensions in recent years, starting with President Trump pulling out of the nuclear accord. But in recent weeks, weve also seen these tensions escalate, as well, so well be looking at what the rest of the world has to say. Ramy absolutely. Let me bring you in here. The oil markets are obviously reacting as expected. Weve since pared back but we are quite elevated. Talk to us about the significance for oil markets and are we talking about significant parts of supply . Maybe, maybe being under spent . Guest yes, absolutely. The clear and present danger is retaliation. Somethingt iran to do on what is seen as a very aggressive show of force by the u. S. They will probably be forced to take some kind of action, which means that supplies are already tight because opec has been cutting production for the last one year or so and iran sits on a crucial point. They have shown in the past that they can take action and that suppliesto significant from that middle east area, the biggest supplier of oil to the world. Texas, 68 andst brent. Thank you, out of singapore. Jodi schneider is with us in our studios to talk through the politics. Here, we spoken on the future of the iran initiative. Listen in. Any cant see how theres prospects of talks between the United States and iran after Something Like this. No, the prospects were already fairly dim, but no iranian president could possibly sit down with donald trump after Something Like this. This marks a series of violent episodes that have already strained relations. In terms of the broader implications with future countries, where do we go from here . With things change if 2020 leads to a different president . Guest well, i would hope so. I would hope so. But this is the worst its been in 40 years, in my view, the worst its been since i ran held i ran held american hostages at its embassy. This is a huge crisis. Im not sure donald trump understands the implications of what he has unleashed. Ramy donald trump just tweeted, in fact, the image of an american flag. Put what you want on that tweet. Jodi he thinks hes a big hero he thinks hes a big hero. But a lot more people are probably going to die because of this. Ramy that was my next question. Should we start considering the u. S. Getting into a regional war now . Reall hard tots bridge this point. We have to see how iraq survives this. It wasnt just because he was assassinated, but also a prominent iraqi, head of one of these militias and a great deal of political power, as well. Were going to see the ripples flowing out from this for a long time. Jodi the uss said the strike was aimed at deterrence, the u. S. Has said the strike was aimed at deterrence. What should we make of that, and what would be a more appropriate response . Look, im not privy to the information that the Administration Says that it has. The United States overreacted with the killing of the 25 members of the militia, which of course led to the effort to seats the u. S. Embassy in baghdad. I think the United States made a huge mistake when it pulled out of the Iran Nuclear Deal in may of 2018. Thats what really set off this escalatory spiral. Where it goes now is going to depend on the actions of those in tehran, how they evaluate this, how their allies throughout the region evaluate this, and of course the United States ramy ok, now we have joe biden chiming in on this, is ashley saying he is calling the u. S. Action a hugely escalatory move says,and donald trump, he tossed a dynamite. Well be back for more. For those in the u. S. , its bloomberg tech. For the rest, best of daybreak middle east. This is bloomberg. Taylor do you see california as the beginning of a federal privacy law . California has always been a trendsetter in privacy regulation. Its definitely proving to be the case already. Because as eric mentioned, there are laws in new york, illinois, washington, and other states that need to take the cues from the ccpa. And i think right now, the chances of federal privacy legislation appear to be stopped, but if you have states around the country adopting nuances that are similar to the ccpa or take it a step or two further, you can have an enormously complex regulatory landscape for businesses in very short order. And i think if you reach that pain threshold, where businesses are finding it very difficult to reconcile all these conflicting requirements, that could finally be the impetus for federal legislation. Taylor eric, in your opinion, what do you see as te biggest or as the big driver for federal legislation. Is it the fact that businesses will be so confused by multiple different state laws that they really do need a federal law to lead the way . Eric i think there are these two different tension points. On the one side, there is this private right of action or the general push on consumer advocates and democrats to give strong enforcement on any privacy legislation that passes. Thats a key piece of debate in the federal law. So thats the sticking point. Its how much are the states funding the enforcement . And thats part of the california referendum. The other side is whether we are going to have the federal law consume everything, basically federal preemption. And that takes over and kills all the state bills and makes the federal bills the law of the land. And thats what the republicans are fighting for. You see the debate there. Its, do we have a federal preemption and a private right of action, do we have neither . Thats where the debate remains. Its a lot of the small pieces of the bill people tend to agree with, but its those big sort of ideas, how we enforce it and whether the federal law is the ultimate law in privacy thats still up for debate. And thats why congress is stuck. Taylor im going to play an acronym game. We were hearing that a lot of businesses didnt mind ccpr because they were already in compliance with ccpa and ggdr. What are you hearing from businesses just from a high level in terms of being compliant with ccpa . And if that isnt a big deal because theyre already compliant with a broader level of data privacy . Guest well, its true that gdpr is a major european privacy law that went into effect last year or the year before last. And the ccpa does draw upon a lot of the concepts in gdpr. But thats a law that applies to data of european residents. And so, even for Big Companies that have implemented gdpr compliance, they havent necessarily done it for their u. S. Operations. And also, ccpa has its own set of requirements and nuances, so the fact that youve done gdpr does that mean youre all the way there, by any means, with ccpa. Taylor its a debate thats certainly going to continue along with more acronyms i may be confused on. Thank you both for joining. Now, an analyst predicts that a federal judge will probably block tmobiles 6. 5 billion takeover of sprint. That is based on questions the judge asked during Court Proceedings last month. A group of states has filed suit to block the deal on antitrust grounds. And coming up, amazon employees speak out, wanting the company to do more to fight Climate Change. All of that next. And if you like bloomberg news, check us out on the radio. You can listen on the bloomberg app, bloomberg. Com, and in the u. S. On sirius xm. This is bloomberg. Taylor the new year hasnt dulled tension between tech employees and management. An amazon Workers Group says the company has threatened to fire them if they keep speaking out about the companys internal affairs. The group, called the amazon employees for climate justice, has been seeking ways to curb the ecommerce giants contribution to Climate Change. For more, lets go to seattle where Bloomberg Technologys matt day is standing by. Matt, what are you hearing about what amazon is telling employees and what the employees are saying in response . Matt the Employee Group came out this morning with a press statement, saying some of their members had received emails from amazon reminding them of the companys policies about speaking to the media. This Climate Activist Group thats within the company has been largely conducting their campaign to organize inside the company, but have also been using the media as a way to get the message out and put pressure on the company to take firmer Climate Change stances. The Company Seems to be fighting back and suggesting they have to go through official channels to get approval to talk. Taylor and matt, this is arguably not even an amazon story. You talk about the tension between management and employees frankly all over big tech. But specifically at amazon, how did this start . Matt amazon doesnt have a reputation for employee activism like some of the companies in Silicon Valley do, given that its more of a buttoned up work sort of place. But in late 2018, a bunch of employees got together just looking around the Climate Change headlines and how they were impacting amazons business. Some had huge wildfires in washington state. They decided to take action and push the company to commit to doing more publicly to fight Climate Change. And since then, the company has actually taken many steps it wouldve recommended at that time. Taylor i want to get a little bit more of amazons response. What else are they telling you about this sort of updated communication policy . Matt theyre basically reiterating that they dont think their communications or prohibition on employees going outside the house and talking on behalf of the company. They want them to stay silent or at least ask for approval before going outside the house and talking about topics like this. But the employees think theres something new and different here that amazon is applying policy that didnt apply to them in the months and months before hand that they were organizing these efforts. Taylor you know, matt, we often hear about former googlers, former any big techer filing complaints with the National Labor board, or filing lawsuits. Is this a stretch too far to think that there could be any legal ramifications here . Matt we havent heard any rumblings of that so far pertaining to amazon. I think theres a fine line, at least in my understanding, that a protected employees speech in relation to working conditions versus going out and claiming to speak in behalf of the company, which i think is what amazon is claiming has occurred here. Taylor what is amazon doing to fight Climate Change . Often, i order a package, and i get 10 different boxes instead of folding them all into one box to save some of the cardboard, for example. What are some of the initiatives that they have made . Matt so, one of the earliest programs, like you mentioned, the cardboard stack. Amazon is working to cut packaging in products they ship. This september, jeff bezos, their ceo, announced a plan to be Carbon Neutral by 2040 and to meet the goals of the Paris Climate Accord 10 years ahead of schedule. Now finally, making some of the aggressive commitment some other Large Tech Companies had adhered to Climate Change, and some outside observers would say, in part, due to their employees organizing. Taylor thank you to bloombergs matt day. Coming up, whats old is new again. Apple strikes a deal with an old partner. We look at the deal between the iphone maker and its old gpu supplier. Thats next. This is bloomberg. Taylor a new year, a new chip deal for apple. The iphone maker striking a deal with u. K. Chip designer , Imagination Technology. The deal revives a relationship and had all but ended when apple started making its own chips back in 2017. For more, lets bring in Bloomberg Technologys mark gurman, who covers apple. Mark, what do you know about the old and the new deal . Mark some context here, when youre building a phone or an apple tv or a watch or an ipad, this is very much simplified. Theres two main types of chips you want in those devices, a cpu, which is the main processor, you want a gpu, which is the graphics processor. Since 2014, apple sourced gpu designs from Imagination Technologies. They basically put that to use when they started designing their own gpus, and the Company Stock price plummeted to the point they had to sell themselves to a chinese equity firm. Now, it seems like apple wants Imagination Technologies to come back into the fold, whether they own some patents for key technologies that apple is not able to design itself or not paying royalties to. So theyre striking a new deal with them and its to be seen how long this one lasts for. Taylor mark, i have to ask why. You said in 2014, apple went to its own chips and its this company. Now theyre going back. Is this a new vote of confidence in the company, or worries about apples own chips, or none of the above . Mark you know, i think its a mix of things, right . I dont think this has to do with apple worrying about its own components. Theyre pretty much at this point leading the industry in terms of their own inhouse chip efforts. What Imagination Technology likely has its key patents that apple figured its going to need to pay royalties on. It would be cheaper for them within a few years if they just struck a longerterm royalty deal rather than pay them on an individual device bases or deal with a public lawsuit like they did with this company a couple years ago. Taylor and mark, what types of patents are we looking at, ai, 5g . What do we think those are . Mark this is stuff related to Computer Vision and ar specifically. Theres this new technology by Imagination Technologies that is pioneering in the u. K. , which really helps with the clarity and the Processing Power that ar devices can have. Some of these patents can be beneficial from that perspective as well, but also, Imagination Technologies is particular to gpus and phones. They have a lot of patents apple could find useful. I dont think they will use any Technology Straight from imagination. They are developing it themselves inhouse. They just dont want to pay the big bucks the royalty feed would require. Taylor and if they do, how soon would we start to see this technology . Are we looking at next september 5g phones or later off . Mark yeah, i dont think this has anything to do with 5g. This would be later off, ar related technology. Its very possible this could be stuff we arent even going to notice is new. Its stuff that Imagination Technologies could be threatening to take apple to court over already behind the scenes. Remember, this is not a Public Company anymore, so a lot of this can happen sort of under the table. So it make sense for a number of reasons why apple would want to come to this agreement. I would be shocked if we saw any new big announcement specifically related to this tech. Taylor bloombergs mark gurman, thanks for breaking it down for us and thank you for joining. Coming up, teslas turnaround continues. Can they raise their targets by more than 100 . Well talk to the analysts behind the move. Thats next. This is bloomberg. Has a Senior Commander been killed in iraq. One of irans most powerful generals. He was killed along with the head of an Iraqi Military group when their convoy was hit by the airstrike the u. S. Defense Department Says was given directly by President Trump, but says the action was taken to protect u. S. Personnel abroad, and believes the general was actively developing plans to attack american diplomats and servicemembers in iraq and throughout the region. Wasbiden says the move hugely escalatory and that President Trump has tossed dyanmite into a tinderbox. Ofwas described as an act terrorism and says the u. S. Bears responsibility for the consequences. In a twitter post, they said the decision to strike was extremely dangerous and a foolish escalation. Weve been tracking for the most part of friday, futures down 22 points. We started out the day clearly risk on. Looks like were going to end the day risk off, gold pushing to 1550. Big move in the oil markets. And you look at where we are march up. Oil also for until the june contract. Well be back and a couple minutes to recap this story. Keep the here. You are watching bloo taylor this is Bloomberg Technology. Im taylor riggs in san francisco. Teslas price target was raised by analysts at ingenuity. And analyst wrote that they will only accelerate in 2020. The target was raised to 515 from 375, one of the highest on wall street and near the street high view of 530. He joins us now from boston. Were joined now by bloombergs david welch. Thanks for joining the program. I want to show you a chart im showing inside my terminal. 11 buys, 10 holds, 15 sells, and yet you have a great bull thesis in your note, which i read cover to cover. What is your full thesis to get a share . Well, one, i love being contrarian. I think the winning will be on the bullish side. To get into the point, when we look at coming into the year, we see many positives and see that the main negatives, which were largely financial based and their ability to service the debt, largely behind the company. So if we look at the introduction of the model y, the semitruck, and potentially the more importantly and probably most importantly, the giga factory over in china, all of that screams positive and suggests better profitability. Its for those reasons that we took things up today. Taylor david, we were wrapping up 2019 with some positive news on the final days in netherlands, that they had more deliveries on those model threes. Does it look like tesla estate on track for what they were hoping for in 2019 . David i think they probably are. Well find out in the next day or so. Theyre getting good demand in europe, which is kind of the more surprising market because electric vehicles from native automakers there just had not taken off quite as well, but tesla is doing pretty well and i think youre going to end 2020 see more action from china. I think they will probably hit their target for the year. They do have a pretty good lineup. The bigger question for investors will be if they can consistently make money with these cars, particularly as they start to sell cheaper versions. That will be the question for investors and if the bulls or bears went out on this. Win out on this. Taylor i want to break it down piece by piece. Are you confident that they have met annual deliveries in 2019 . Yeah, i think 2019 numbers, where its 368, theyve given guidance for 360. I think those numbers are doable. You know, i was going to jump into the profitability because i think theres a really important point to hammer home that leads us to this bullish stance around profitability, too. Taylor come take a look at the chart im showing inside my terminal. A lot of the bull thesis has been betting on china. China demand has to be there. The problem is youre looking a sort of a decline at what has been an ev market. Is there enough to combat what looks like strong headwinds in the overall chinese auto market . So, first off, i think the short answer is yes, but we have to take a step back and ask ourselves why are we going over to evs . Our stance is very bullish. When you look at the vehicle, you have less than 20 efficiency in terms of energy in versus desired output out. It was the same thing we saw when we went from incandescent light bulbs to led. You saw a material shift in efficiency. I think youll see the same thing here. So when you look at 75 million or 80 million vehicles sold, evs are still only 2 penetration. Theres a lot of room for growth there. Further, when we look at profitability, as david was saying, i think the point isnt just china. If you see the shift when you go from these lowvolume highpriced vehicles that have little overlap to highvolume lowerpriced vehicles that have a lot of overlap, that is suggestive of greater profitability increase for the company. That, i think, is a real important point. Taylor david, some of the concerns ive heard is the vehicles will be cannibalizing sales, not producing new potential buyers. David, what are you hearing about that . David i think thats a real possibility, although to jeds point, there is a lot of real growth here. His point that evs are 2 of the market does give it a lot of room to grow. So, there are just a lot of people who want an ev and as they come up with more body styles, i think theyll get the growth there. I still wonder about profitability because the big question about tesla has always been execution. Can they manufacture efficiently . Can they get battery costs down . Can they do all this stuff on time . Thats been the real problem for elon musk and his company. Look, if this were a conventional automaker, and they were sharing a lot of parts and platforms and making three different vehicles oozing 75 shared parts, i would say they are going tont money. But this is tesla. Theyve never proven they can print money, and i think a lot of people will take a real waitandsee attitude. Taylor both of you talking about profitability, so lets go there now. The story of the year was last quarter, that surprise profitability that came in much higher than analysts were expecting. So jed, the one concern is there way cutting their way through the margins, through the income statement to get a boost on the bottom line. Can they continue to cut their way to profitability, or do they need a new strategy . Jed so, i think they can, and i think thats what were seeing, and thats what were betting on. To davids point, i think the most important data point didnt come from tesla. It came from their rival porsche. Porsche the preeminent brand with twice the price to model us with half the range with the same battery pack. When we look at evs, its not as simple as just tossing some battery cells and a motor into the vehicle. There is some differentiation, and what tesla has shown the ability to do is to monetize that range, and you can either do that with price, or you can do that with longer range. And both are valuable to the consumer. In fact, i would argue that is the most valuable thing to the consumer, and it would be akin to coming out with a vehicle that gets 2x the miles per gallon as their competitor, and that was from one of the largest the largest manufacturer in the world. Taylor jed dorsheimer, bloombergs david welch, thank you both for joining me. Coming up, the top security pick at needham. Well talk to needhams Senior Analyst behind that call. Thats next. This is bloomberg. Taylor new year, new threats. Cybersecurity trends include new mobile risks. Hackers are also expected to employ Machine Learning and attacks, and the cloud will prove Fertile Ground for compromise. Lets bring in one of the Renowned Experts in the field, it is Tom Kellerman of vmware, he served under barack obama. Tom, great to have you here. Arguably, really 2020, one of the biggest years when it comes to cybersecurity and the threats. How big of a year are you seeing with all these different threats, election, hackers abroad, pretty much come to a head this year . Tom well, yes. It has become a functionality of conducting business in todays world. You have to appreciate all the major organized crime syndicates in the world have created businesses around hacking. You have rogue nationstates and geopolitical tension continues to manifest in cyberspace in things like the trade war and other events that occur on a global stage. Taylor you know, tom, i wonder who is most at risk. I talked to cybersecurity experts and they say its the employees. Who, in your opinion, really poses the biggest risk in 2020 . Tom well, i think theres a shift in how hackers are hacking. Theyve moved from burglary to home invasion, which is a lot more dangerous and that they will take over and commandeer your journal transformation efforts and use your network to attack your customers. Your brand will be used against her constituency and thats the awakening that must happen in corporate america. Taylor i really want to fold in the election. As you look at 2020, are we more prepared than 2016 . Tom i would say we are more prepared because were aware of the antics that certain nationstates will leverage to manipulate democracy as a whole, but that said, theres very few states that have taken up the assistance from the federal government to secure their electoral systems. Many are hamstrung with limited capabilities to do a very effective job in morning nationstates. Christopher wray said in a testimony in front of congress that he sees activities by at least three nations based on our targeted electoral system, not all of which have the same goal in mind. Taylor what are the ways in which you see hackers getting to us in 2020 . Is it as simple as the voting machine or something much more enhanced . Tom well, when it comes to the individual or the corporation, we need to be very wary of our information supply chains, Cloud Service providers, outside general counsel, the outside marketing firms we utilize, and even as individuals, we have to stay on our guard because those entities will be attacked, and their infrastructures will be jacked to target us or target our constituency as a whole. What our research has shown as there is a dramatic uptick of destructive attacks where hackers manipulate the integrity of data and change exactly the way either a corporation operates or an individual thinks specific to their devices. Taylor i love that you brought up the cloud because weve grown up thinking the cloud is secure and safe. Is the cloud more at risk and we think it is . Tom well, not all clouds are created equal. The whole purpose behind what were focused on here is to build intrinsic security into the environment across the entire stat. You cant try to retrofit security on cloud environments. You have to build it in from the beginning and understand an adversary will use that environment to attack your constituency, so you have to have greater visibility. Like i said, it depends on the strategy and the amount of dedication of that organization to securing their cloud, and that varies by industry and by corporation. Taylor tom, you were saying that some of the biggest threats are coming from russia, iran, china. How are they differing in their approaches . Tom well, frankly, you have a 50year plan espoused by china for dominance. I do see as the trade war is lesser andu will see lesser attacks by chinese hackers against american corporations hopefully, but you see north korea and iran now having cyberattack capabilities, and theyre willing to destroy data and commandeer infrastructure and leverage your systems against your constituencies. The cold war is alive and well in the russian techniques are very much focused on undermining the institutions of the west and the validity of the integrity that we place on also its of things from democracy to our own data. Taylor tom, thank you for joining us. Now, cybersecurity tech firm crowd strike provides threat, intelligence, and cyberattack services meant to deal with such risks. An analyst from needham joins us now. Alex, love getting your call on the top take in the space. Whats behind the bull thesis . Are well, basically there two point i would make. One is we believe security is an area that absolutely has to see more spending. Its a primary focus, not just in terms of i. T. , but at the board level. And to that extent, we think that theres clearly going to be, you know, a very significant increase in spending in this space, particularly as we get closer and closer to the election. It will become more and more of an issue. We particularly Like Companies that are in the cloud direct segment of the marketplace that have a cloud native solution. I heard your last guest to talk about security in the cloud. What we want to highlight as these are companies that are in the cloud natively that protect Companies Directly from the cloud, as opposed to connections between, you know, an aws, a microsoft du jour, or Something Like that, where its a cloud connection thats not necessarily secure, so quite different than what he was referring to. We think the companys growth is going to be well over 50 over the course of the next year. The street has it slowing down to about 30s 3 growth 30 growth. And i think thats too steep a deceleration from the 100 growth they posted last quarter. Additionally, any upside you get in revenue demonstrates significant margin leverage, so we think theres good upside to both revenue and the margin side of the equation. We strongly believe that crowd strike is one of the Key Solutions to the security problem that enterprises are facing. Taylor so, you paint a positive picture in terms of enterprising and corporations increasing their spend on cybersecurity, but what is crowd strike doing specifically that perhaps other companies are not to take advantage of that positive backdrop . Alex sure. Me delineate between the winners and losers here in the security space. We very strongly believe that the worlds perimeter defense, where you basically put an id stack at the edge of your data center, is no longer a valid security solution. While you still need to do that, the world is shifting to what i would call a clouddirect solution. Companies are in the cloud and will deliver cloud security. The companies that are in the perimeter side of it, Companies Like palo alto, Companies Like checkpoint, these companies are trying to do a perimeter defense model, where youre essentially trying to keep the bad guy out. Youre just never going to win at that. There was a recent Security Survey where 76 of chief Security Officers of enterprise expected they would be hacked within the next 12 months and 60 predicted they didnt know it when it happened. And thats a function of the nail your perimeter defense to work. All the bad guy has to do is get through once. You have to keep them out 100 of the time. Its pretty obvious thats not working. Were moving to a world of whats called zero trust or cloud direct security, and these companies in the cloud that are delivering that i think ultimately will be the next generation of Security Companies and will gain share. Taylor Alex Henderson of needham, thank you very much. Still ahead, bitcoin, hyperloop, and self driving cars. We go through all the tech predictions of the last decade that did and did not come to fruition. This is bloomberg. Taylor mobile phone ownership, elon musks hyperloop, toyotas self driving cars, bitcoin they were all the predictions of the last decade for 2020. Many did come to fruition. Many did not. Of the top 10, there were four or five that really stood out to me. Nine out of 10 people over the age of six will own a mobile phone. Tell me theres not a bunch of sixyearolds with mobile phones. Yeah, i dont think that happened. Erickson and vodafone probably overestimated how quickly the developing markets would come online and how quickly cell phones would come down in price. Its just a big divide to bring so many people in developing economies up into the smartphone age. Taylor i want to switch to digital because there was a prediction that jet. Com would break even. But it looks like theyre still losing money, not yet breaking even. Mark yes, at that poing, thats they were an independent entity. Kind of before uber and airbnb were coming up in creating the age of the unicorn, and they were this early example of all the Silicon Valley money thats going up in smoke. In response to a lot of the criticism, mark came on this very network and said by 2020 we will be breaking even. Walmart ended up buying them the next year. But by all accounts, i dont think that really happened. Walmart is losing a lot of money in their competition with amazon right now. Taylor we talk about google, alphabet. You come in and they thought Cloud Business would eclipse advertising revenue, but we re not quite there yet . Mark yeah, they were a little ambitious in their production saying that by 2020, they will have their Cloud Business outpacing advertising. At the end of last year, advertising made up maybe about 85 of their revenue. So cloud has grown a lot, but its a far cry from what they envisioned and theyre bumping up against amazon, which is the biggest. Taylor what might have been the biggest bust of the year was dyson, saying they would sell an electric car. Last year they shut down the business, just could not get off the ground. Mark that was a production that wasnt that far out. That was just a couple of years ago. They were like, were working on this electric car and well have something ready by 2020. It didnt take them long to figure out the project was, as they described it, not commercially viable. Spent a lot of money as a vacuum company that wanted to be something larger and realized this was a complicated business. Taylor and a very faroff prediction was uber deploying flying cars. No flying cars in our future just yet. Mark yes, although they still maintain that some time in 2020, they expect to do demonstrations of these flying car takeoff and vertically landing vehicles. Now, they do have helicopters, which are kind of like a flying car but not really. They still hope to be able to show some type of live demonstration of a futuristic jetsonslike car. Taylor i want to end with number seven, which is that toyota will make self driving cars. Because theres been a lot of competition, not only in the ev space, but in the selfdriving space also. What do we know about toyota and their selfdriving cars . Tt this was one of the closest that actually came true. They said that this was way back in 2015 i think toyota came out and said they expect to have cars that will be able to drive themselves on the highway. There will be assistant technology for drivers. It doesnt mean you wont have a driver in the front seat. They do plan to do that this year, through their lexus brand, have a car that can drive itself on the highway, kind of like a tesla does, but it was sort of a way to cap the crazy hype cycle that took place over the last decade in self driving cars. There were a lot of productions about how wed be sitting in the back seats and have robots driving us around and we are nowhere near that day. Taylor thanks for joining. And that does it for this edition of Bloomberg Technology, and Bloomberg Technology is livestreaming on twitter. Check us out technology and be sure to follow our Global News Network quicktake on twitter. This is bloomberg. En announcer the following is a paid presentation brought to you by rare collectibles tv. Announcer the California Gold rush is considered to be one of the most impactful events to impact americas economy for its first 100 years, and it has certainly had a long lasting impression in numismatic history, as well. It all began in 1848 when James Marshall found flakes of gold in loma, california