Necessary deemed the delay his chargescause for hate crimes are ongoing. Im courtney collins, this is bloomberg. Caroline this is Bloomberg Technology. Backingp, the u. S. Not off allegations that russia was behind the data breach at the dnc. Details from the senate Cyber Security hearing. Plus, time warnerat t megamerger back on the brink. Why President Trump might get in the way of the deal. And titans from tech hold court at the ces in las vegas. From the future of cable tv to the surging home sharing market. The first two are lead. Security is emerging as a major tech concern for 2017, and it came to attention today at a u. S. Cyber security hearing where russia was front and center. Officials confirmed that russia was behind attacks during the president ial election. Intelligence officials said only russias most senior officials could have authorized the data theft. One day beforet president elect donald trump, who had previously cast doubt on the findings, is to be briefed on the hack. Bill from is washington. Agency seemsnce even more confident that russia was behind this hack. What do we know from this event . The three side chief sumitra mayhill today said they had more confidence than they did in october when they first released the are report. They pushed back quite a bit against some of the public criticism they have received by donald trump, who said earlier this week that a briefing had been delayed and that he thought it was because they had to still build their case. Thinkade clear that they they have a very solid case. They will be presenting that case to the president elect tomorrow. To twitterrump took once again, his favorite form of is talking and he about his association with julian assange, denying he is in agreement with julian assange, but that he is a big fan of intelligence. We are seeing between right now honors seeing the tweet right now on our screens. Were not as critical of donald trump as they could have been. Right. R these guys all speak in a very nuanced tone. They did not single out trump or his criticism directly. They did say public criticism of their work is not helpful, not good for morale. Is something they prefer happen behind the scenes. These are very skeptical people. Communityigence spies, they are skeptical by nature. They ask a lot of questions, so they are accustomed to that. I dont think they are accustomed to being put in the public eye front and center. We have never seen a time in the president sooming blatantly and publicly president so blatantly and publicly questioned their work before he takes office. There is a whole range of issues that the president elect will have to count on the intelligence agencies for, whether it is the latest ,ssessments of Islamic State chinas moves in the south china sea. Without that kind of information, the president is essentially lying blind. Flying blind. There is aomorrow, briefing that will occur with president elect donald trump. Reporter James Clapper was asked if he was ready for a spirited discussion with president elect trump. He said he is and he welcomes it. Used to toughre questioning. What we have learned from the president elects team is that they want to see more broad data and want to see a little bit less analysis. There is some concern on the trump team that the Intelligence Community has been politicized in the last decade or so. They just want to see the data and draw their own conclusions from that. Caroline thank you very much. A story we are watching, president elect trump remains at ttime warner megamerger, according to people close to trump. Trump is said to have told a friend that he thinks the merger would concentrate too much power in the media industry. Time warners shares have been climbing. Shares of both at t and time warner dropped today. Topicsecurity is a hot from washington to wall street, and here in Silicon Valley. Last month, yahoo announced it had suffered its second data breach, one of the largest in history, leading some to question whether verizon will follow through with the acquisition of the company. Cory johnson spoke with Tim Armstrong about what the hack means for the acquisition of yahoo . Yahoo deal for us is strategic towards our 2020 goals. We are hopeful it will close. The process is split into two areas. One is the integration and strategy planning with marissa and the executive team at yahoo , which has gone very well. Informationiece of that has come out about the breaches and what the effect of , verizon is handling the research with yahoo , yahoo is going through their investigation, so we want to have any comments because yahoo has not finished their investigation yet. But we are on track and hopeful the deal will close, but no more than the first half of this year. Is doing ateam thorough investigation, so i am sure they will have more to say about it in the time in front of us. Is it possible that these series of hacks and the publics knowledge of them has any effect on the brand of yahoo in any way . Guest i think thats one of the things yahoo is looking at and will continue to look at, the total effect of what the breach was and what the outputs of them are. Of course, we have a viewpoint on that as well. What i think from the standpoint of where we sit right now heading into 2017, our strategy is clear. Adding towards 2020, yahoo is one piece of that strategy. As we get more information, we will update. I will say that from what our goals are and what we have been tasked with getting done at ando , it remains on track, the investigation is still ongoing. That the size of the business of yahoo is not properly understood generally. It is just such a very big business with so many users. When you look at that asset, what do you see that holds such value . The noise, concern over the breaking tends to dominate the discussion. What you see as the underlying asset in this value . Guest we live in a world today in which there are hundreds of billions of dollars and millions of consumers coming online that are all Digital First and mobile first. Yahoo is one of the largest footprints in the world on the consumer side. It has a large advertising and ecommerce business. From our standpoint, what we look at the combined assets, we would have over one billion consumers, do billions of dollars in ad revenue, and have , very big footprint in mobile added with verizon, which is very strategic. Getting mobile consumers is huge. The breachre is information and breach investigation, but from a Business Strategy standpoint, especially when you look toward the next five to 10 years, the assets coming together represent a unique opportunity and scale. We have gone from Company Consolidations and industry consolidations. Verizon has been very forward thinking, very clear on the execution of where they think the world is going to india and going inand mobile media and wireless and mobile. We are excited overall, and there is this one issue that needs to get resolved, but i have looked through that to look at the strategy, and i think the strategy remains intact. Think it is interesting that the strategy of consolidation is very different from at t to verizon. On the verizons side, i see you guys putting together a big pile of assets. You mentioned to and yahoo sports and pulse and aol and all smaller pieces of content, but a kaleidoscope of them, whereas at t seems to be going big with time warner, hbo. I wonder if you can contrast those two strategies for me. Guest sure. I know the time warner strategy well. I was with time warner when we spun off of aol. A lot of respect for the team at time warner. At t dont know their strategy and dont know exactly what their Business Model is, but i do know the Verizon Business and the aol plan, which is essentially to bet on where the future is going, which is very strong connectivity with 5g, and connecting everything and everybody with fiber in speed and wireless connectivity. The second piece is digital consumption of content. You dont have to look far and wide to see how much the linear a landscape has changed to digital focused consumer. I think if you contrast the strategies, you looked out five or 10 years, that digital focused, mobile focused content strategy that verizon has put in the place is a very strong strategy. After spending 20 years in the look on valley and new york and across the globe, in Silicon Valley and new york and across investbe, we wanted to in mobile, because the connectivity will be a tremendous asset. Companies, twog strategies, and a lot until wins in the future for growth. Feel very confident in what verizons strategy is and the leadership of verizon has done a very good job exit and longterm strategies executing longterm strategies. I have no doubt we will be a big player in the future. Caroline that was aols ceo, Tim Armstrong. For more, we are joined by cory johnson. A very confident sounding Tim Armstrong, focusing on the value that lies in yahoo despite the attacks. Cory i think thats the story here. I think the reaction was overdone, not because of. Ahoos core business but you hear from Tim Armstrong, they see themselves as one of the few assets in the world that has a Global Internet audience of over a billion evil. Y look at things like they over a billion people. They look at things like facebook and snapchat, and they figure with that content in those users they can have a big global audience that will be poised to dominate when 5g rolls around. M a hit some roadblocks today. Where do we stand on the whole m a front for 2017 . Cory those comments are interesting. News was broken that people close to trump by people close to trump that they are still concerned about that deal. Will this be a free market, Goldman Sachs white house that once things to trade or they want to trade and wants businesses to combine, regardless of their impact on society, or is this going to be thatonald trump suggestion he will actually review these things and look at the impact of these business combinations and be less likely to approve these mergers . Is important that there is a media story here. There may be a different approach for the media. People think more voices in the media are better than fewer voices, and they might have a different approach to media than other kinds of widgets and mergers along those lines. Caroline and of course, the 20th century fox deal with sky across the amanda, and whether they come against that as well. Afterl have plenty more the break. We will catch up with hps ceo on the companys global aspirations, next. Stocks closed mixed on thursday, but the nasdaq ended the day at an alltime high, merrily0. 93 points beating the print narrowly beating the previous record. One company touting their products at this years trade show is hp. The company has announced a bevy of new gadgets, including the ultrathin convertible laptop and pro, an all in one pc. The chief tech officer. Us why we should be excited about products in an industry that has been stagnating. Guest first, i am super excited to be here. Way tolways the best kick off a new year. Especially when you are bringing the best products. We are about a year postsplit, and we are in the middle of rebuilding the company, and that includes some fantastic anducts, the elitebook 360 the sproutpro, a refresh on our original sprout product which is exciting. When you look at analyst expectations, they are showing that revenue should stop picking up at hp by 2019. How many of those products are crucial to that . Best way to answer that is what we are trying to do is really look at what our strategy is and spread it out across three main factors. Have core, future, and growth. On the course side, we expect that to be our core personal systems and print business, and in the growth area, weve got some super exciting things that are going to happen this year, and that includes things like our graphics business with the acquisition of samsungs printer future, and in the super excited about 3d printing of the opportunities that will provide in digital manufacturing. Caroline where is the demand coming in 3d printing . Are we finally there . Guest yeah, we are. Did launch and ship our first products here in october. Those are some of our customers in europe. That product is going to be a tremendous hit. It delivers 10 times the speed of any product out there, 50 of the park cost. It is all done in an open ecosystem with substantially better parts. Wet is the beginning of what expect will be a true revolution. We are at the beginning of what we think is a 30 year view of reshaping manufacturing into full digital. You are a fascinating man to talk to her, because you have been an angel investor, you have been a cofounder. Are you looking at the acquisition potential of these startups you are building within your company to help harness this growth . Guest yes, we do. We do two things from the cto standpoint. One, obviously invest in the Core Technologies we have internally. As the founder and the person who runs the hp tech ventures, we are definitely on the outlook for the Exciting New Technology on the horizon. That could be through a variety of things. It could be through partnerships, and believe me, we have seen a ton of answers a ton of Interesting Companies here at ces, it could be through an investment, or we could look through acquisitions. These new growth opportunities, they take rmb and money, and hp is a company having the caught costs cut costs at the moment. Are you worried this can Impact Investments at all . Actually not, and heres why. One of the great advantages of the split is that we have been able to focus on what our core markets have been, printing, personal systems, and moving into the 3d side. As we look to streamline the business and make sure we optimize a cost, one thing we have not cut is r d. We have not only kept in constant, but we have been able to spread it out, so we are making bets in the longer term, and that gives us growth possibilities in the future. Thinking outside the next two years, five years, what is capturing your attention at ces . What is the main shot you are banking on an hp . Guest it is interesting. Its always great here at ces to see those longerterm things coming out, like whats going on in automotive or the internet of things. Done is putwe have together a vision that is 30 years in the future, a kurd around a simple notion we call blended reality, a believe that the Digital World will become much more inexplicably twined with the physical world, and those will blend with each other, and that leads to investments longerterm, 3d, moving to digital manufacturing. There is the internet of things, which we all know about, but what we are super excited about is the internet of all things, physical items that dont have technology and are today connected to the internet. Liddedk the notion of reality gives us a tremendous opportunity to pursue these areas. Cto shane wall, thank you for joining us. Still ahead, we will get very dennis take on the latest news that donald trump remains opposed to the megamerger between at t and time warner. This is bloomberg. Playing 70lmart is million for a Company Called shoebuy. It competes with a more wellknown site, zappos. Last year, they bought an online furnishings store called pay needle for 90 million. Meanwhile, amazon is moving in the other direction, expanding its presence in brickandmortar stores. Amazon is planning to open a bookstore in manhattan near central park. They already have bookstores in california, seattle, and oregon, with plans to open more in massachusetts. It opens this spring. Ford is putting the companys digital assistant alexa in its cars this summer. It will allow divers to order items on amazon, listen to audiobooks, and get directions. Come, former new york city mayor Rudy Giuliani and blackberry Ceo John Chen are teaming up on a Cyber Security initiative. The controversial cyber attack hearing takes place on capitol hill. We will hear their take on cyber defense, next. And if you like bloomberg news, check us out on the radio. You can now listen only Bloomberg Radio app, on bloomberg. Com, and in the u. S. On sirius xm. Intelligence. Officials say they are more convinced now than they were in october that russia did interfere in the u. S. Election. Is notte house characterizing the hack as an act of war, but says president obama takes issue quite seriously. Theresa may is scheduled to visit president elect trump this spring. She has criticized him in the past and both clashed over nigel farage. She went on a secret trip to the u. S. Last month as they tried to renew trade partnership. Thebegins her exit from u. N. In march, roughly as the same time as the u. S. Visit. Are angry about gas prices. Walmart was one of the stores targeted. Officials say a car bomb detonated in a Commercial Area in central baghdad killed at least seven people, the latest today in a series of deadly attacks. Other attacks across the iraqi killed 16 people. And the pentagons top weapons buyer has approved advanced development of a new generation of submarines. They could cost up to 126 billion. Global news 24 hours a day, powered by more than 2600 journalists and analysts in more 100 20 countries. This is bloomberg. It is just after 5 30 p. M. A. M. Day in new york, 9 30 friday morning in sydney. Im joined by david with a look at the markets. David, good morning. David good morning, courtney. In new zealand, the markets opened narrowly up. Futures and australia pointing up 0. 2 today, and futures in the nikkei in japan down 0. 4 . Today we are going to be looking at australias trade balance data. Analysts are forecasting that will narrow to its narrowest is 2014, 550 million. That is due to better prices in iron ore and coal, key exports for australia. We will also be looking at india, which will reveal its estimates for thirdquarter gdp today. We are also watching samsung electronics, preliminary annual results today. You may think it is bad news for samsung with some of its bad news about smartphones, but shares hi