Alisa global news 24 hours a day powered by more than 2700 journalists and analysts in more than 120 countries. This is bloomberg. Isloomberg technology next. I read stone in for emily chang, and this is Bloomberg Technology. Coming up, a bloomberg scoop. Another bombshell just after announcing a big move back to the u. S. On thursday. We will break down the plans to acquire qualcomm in a deal that can be the biggest takeover of a chipmaker ever. Plus, apple recess the Smartphone Market with the official launch of a 1000 smartphone. Frome covering this story all angles as lines form around the world for the iphone x. And the great bitcoin debate. Is the cryptocurrency a boon or bubble . We will continue the conversation as bitcoin crosses the 1 billion mark. First to our lead. A company is set to acquire qualcomm in a deal worth 100 billion. This be the largest deal ever for a chipmaker. Shares rose 19 , the biggest intraday move since 2008. Valuing the company at 111 billion. As a major supplier to apple, broadcom says it will return its headquarters to the u. S. From singapore. It already lists san jose, california, as a corporate code headquarters. Lets get straight into this with ian king. Also with me is brooke sutherland. Ian, first to you. This is an unsolicited bid by broadcom. What is the likel likelihood ths happens . Ian we are in the early stages, it has not been submitted as far as we are aware. So many things at play here. The basic thing as you have two Companies Already in the top 10 of semi conductors worldwide. The will be shooting up to number three. That is something regulators will be showing interest in. Got to be something that customers like apple and samsung will be looking at and deciding whether they really want this to happen. A number of steps definitely have to be taken before this becomes a reality. Brad you recently wrote a ceo wasaying that the in the oval office in the firm grip of President Trump and announced the moves from singapore to the u. S. , but that is about what were hearing about today. Tell us why you think yesterday and today are connected. Brooke i think it is a big part of it, and i think the initial thought when this was announced go backy were going to to the u. S. , is this an attempt to smooth Regulatory Approval for the Communications Deal which is still in front of 50th. I think this qualcomm deal would have been virtually impossible if broadcom was still based in singapore. Just looking at the push back and already got, on the deal attending to acquire a company, tighten of in history, i think you get pushed back but i is easier if broadcom is a u. S. Company. Brad how much of yesterday was theater . Ian depends on who you speak to, but a lot of of people were being somewhat cynical about what happened as the pending broke a situation. It already had headquarters here. The company that sort of took over broadcom and then changed its name to broadcom was a division of hewlettpackard back in the day. Very complicated situation. A lot of facilities already in the u. S. You know what, this does not mean anything. They are not moving anybody anywhere. It is a change of registration. There is certainly no shortage of cynicism about that new. Brooke iphone the other interesting thing is that even after i think the other interesting thing even after that is the tax rate will be raised. Still get a significant amount of their revenues from china, from asia. It is sort of a symbolic move to the u. S. , but we are now talking about multiples of billions of dollars coming in in extra tax revenue being invested in the u. S. Beyond what broadcom is already doing. Brad what does this mean for the smartphone owner, the iphone owne . Know, the supply chain is very important to what apple does, to what it is capable of bringing to the market. ,he same is true of samsung arguably to a lesser extent because a lot of what it uses it makes it self. Particularly from apples point of view, he components, the wifi, the cellular, really you have to rely on these companies. Is that a good thing, a bad thing . Apple is already raging war against qualcomm. Brad unit about this ongoing litigation to try to reduce qualcomms licensing stranglehold. Ian that is another one of the possible derivatives from this deal. Perhaps broadcom has a better relationship with apple, is more compliant as far as apple is concerned than qualcomm is. They come together, qualcomm goes away, apple gets the deal it wants, qualcomm shareholders andrid of the huge overhang potentially bring in chip orders as well. It is a complicated situation. Brad if you are intel, samsung, or other rivals, how do you see this potential deal between broadcom and qualcomm . Brooke obviously it is a massive deal, the biggest chipmaker combination ever. So i think that does sort of change the playing field, but i think you have to look at this as, are we facing a peak craziness in semi connector deals . There have been so many deals across the sector. When you think about the fact that qualcomm is still trying to close a 40 billion takeover at nxp, and broadcom is trying to close its deal, i mean, these are deals piling out of each other. This is going to be extremely difficult to integrate all of this. That may open up opportunities for intel and other people to take market share away while you have these two companies tied up on integrating multiple deals. Brad ok, brooks of the limb, ian king, thank you for joining us. Sut,g brooke ian king, thank you for joining us. Apple ceo says the Current Quarter will be bigger thanks to the current lineup, we will discuss if apple can keep up with the demand, next. Bloomberg technology is Live Streaming on twitter. Check us out at bloomberg tech tv weekdays at 5 00 p. M. In new york and 2 00 p. M. In san francisco. This is bloomberg. It is safe to say the demand for the iphone x is high, and expectations are even higher. Lines are forming around the world at of all Retail Stores as they unveiled the new smartphones of the public. High demand for the device also boosted apple stock them up briefly dipping into market cap about 900 billion, a first for the u. S. Company. Earlier today, the daybreak Americas Team sat down with longtime apple analyst gene munster and asked him about the company growth. The growth rate for next year is probably going to because of the 20 because we will have this big cycle so that really kicks in. That is the iphone x and why i think he will continue to see the stock moving higher throughout the day. People will feel better about what next year looks like. Brad joining me now, mark gurman, who managed to snag the new iphone earlier. Welcome, mark. What is that gleaming rectangle of metal and plastic and glass you are holding . Mark it is an iphone x. I still have the plastic on it. Brad i heard you and other just were having trouble activating that . Mark we posted a story on the terminal about this. Verizon and at t, trouble activating the thing. In order to use it, you need to activate it, one of the restrictions. Some reporting that the issues are clearing. Toi called verizon and had have it manually activated, which is not how it is supposed to work. I had to wait a few minutes on the phone. First world problems, not a big deal, but that is what it is. Brad you and a colleague monitored some of the lines outside stores today. Does that tell us about any demand of the iphone . Mark it tells us about the excitement of the iphone x. There is a lot of people lined up, and i have not see lines like this, and i have been following this since day one of the iphone. There have not been lines like this since the first one in 2007 or the iphone 4 in 2010. Brad they do cultivate questions around supply, right . They went out and told customers to arrive early for the new phones so there are questions about whether they would have enough. You think that orchestrates some of these lines because it is great theater . Mark they definitely wanted lines. They way they look at launches are the Opening Weekend for a new star wars or batman movie. They want the lines, people to show their friends the new devices. They like doing viral marketing, they call it buzz marketing inside apple. Is part of the plan. Brad there were already stoppers outside of the store in hong kong reselling the iphone x. You had a line in your story that the store in new york sent out chinese speakers to speak to people in lin. There are people in my not to own an iphone x but for war transactional reasons. How big of a conservation is this that you basically have scalpers waiting to get their hands on this . Mark every time apple comes with a wholly new redesigned product, you will see people from those asian markets coming to the u. S. In order to buy them and resell them. In hong kong, it is more difficult to get an iphone right now because some of them are only sold to the carriers and other places sell them in a symphony environment. Hong kong, you cannot buy that. There is room for the scalpers to make a little business out of that. Brad what do we know about the supply . There are questions about whether the supply chain can be the demand. Do the people who preordered get phones . Surprisinglyply is strong and resilient to demand. It started going down three or four weeks in italy and germany and the u. K. , but now it is three to four weeks everywhere, which is not bad. How long does this mean a fourweek shipping time last for . That is when we start to know the supply issues. Onrybody i talked to and saw twitter today did not leave the store emptyhanded. Brad it is amazing. There were questions when they were delaying it so far after the release of the 8. What was behind that . With a have enough would they have enough . This week, they announced blockbuster earnings. Is there any question right now about whether applicant execute in this quarter . Mark i think tim cook will get to keep his job, but they are doing great, honestly. The Revenue Growth and unit growth yearoveryear for all of their products as well as the different segments and markets, very impressive and very strong for this time of year for them. Brad last question. The one number that dont out and he was 24 quarter growth in the services business. Questionerennially the mark for apple, and they seem to be executing in that area as well. Mark they did not introduce any features in that segment over the last quarter. Usually when they introduce new products, that hikes up with the revenues are, but they do not kne do that. Brad iphone x owner and Bloomberg Technology reporter, mark gurman, thank you for joining us. Coming up, bitcoins never ending search, the largest cryptocurrency in the world, but even as its meteor rise continues, naysayers are not going away. That is next. This is bloomberg. Brad a story we are watching. Amazon is expanding up north. The Company Plans to open a new office in vancouver, creating about 1000 new jobs. Amazon plans to open the doors of the new office in 2020. All of this while the Company Currently searches for a second north american headquarters. Now to the story we have been following all year, bitcoins wild ride. The worlds leading cryptocurrency is currently over 7,000. That is nearly 650 jump since the year started, and it is dominating and cryptocurrency market cap. Right now, it is over 120 billion in total dolling, that is nearly 100 billion more than its top rival, but concerns remain about bitcoin from big banker doubters to talk of a bubble. To discuss the leader, i would like to bring in the chief commercial officer of the pay bitpay. Thank you for joining us. Tell us what this incredible appreciation for bitcoin over the past weeks and months has done for you guys. Great question. Bitpay is the Global Leader in payments across the world. Over 1 billion this year. However, we have only increased 10 to 50 month over month. 15 month over month. Us, but weople know also allow a lot of b2b transactions around the world. To 200 companies will use us have their suppliers in latin america or asia pay their invoices to europe or america where it is cheaper and quicker than a bank wire. It is solving a real pain point around the world. , you are saying there is a little more friction in your market. Sonny our market is different because we are dealing with suppliers and merchants that way, but it is great because everyone that buys bitcoin eventually needs to pay for purchase goods and that will eventually flow to our system so we are processing 1 billion right now. Billionmark is 120 right now so we want that to go through bit pay merchants eventually. Brad institutions getting into cryptocurrencies and bitcoin. Bill miller bringing bitcoin into his value find, showing amazing results as a result. What kind of impact are the institutions having on the price . Sonny i think the institutions are the ones driving it up. They happen on the sidelines for a while. When we get on a 50 billion market cap, they start to really notice, and 70 billion 100 billion, they started joining it because it is a big enough market where they can play in it. I met with a global billion dollars hedge fund the other day and they started treating bitcoin 4 months ago and now have a position over 100 million right now and you are starting to see what Family Offices and hedge funds around the world are starting to locate a small amount of portfolio to bitcoin. Again, since it is global and all of these hedge funds are involved, that 1 they allocated to it starts adding up. Brad legitimate asset or bubble waiting to explode . Sonny i think it depends on the use case around the world. We have a Development Team in argentina and they get 100 of their salaries in bitcoin because they prefer bitcoin over the local currency. On the b2b use case, solving a pain point quicker than a bank wire. America is not much of a pain point but people use it more for an Asset Allocation method. You are seeing that people are using bitcoin so i dont know about the price of it as much, but the uses definitely there. Brad there is a pervasive criticism that transaction times not much that there is you can do with it other than sort of hold it. Jamie dimon, obviously a big and persistent critic of bitcoin. What do you make of the criticism . Sonny we help some of the largest law firms in america except bitcoin from the international clients. We work with one of the largest real estate appellate shops in new york. They are tech savvy people. A bitcoin transaction may take one hour but that is cheaper and quicker from a bank wire from singapore or hong kong. It shows that bitcoin is starting to take notice and getting big enough where banks are starting to wonder. Brad these are people who buy the currency, he called them stupid. Sonny not my developers in argentina. They are having a great time. It depends again where you are located in the world and what your reason for buying it is. Brad this week, i noticed amazon registered three domains related to cryptocurrency. Does amazon start accepting bitcoin soon . Sonny no, because it does not solve a paying point for them. Based on other Payment Methods that are worth more than 100 billion, i can see amazon maybe excepting bitcoin for billing payment in brazil or argentina, where someone may not have a credit card that would be accepted. Brad by do not hope to understand this but i will ask anyways. Here is an upcoming fork very quickly, what does it mean . To be a problem for bitcoin and people who hold it . Sonny you are seeing a lot of people actually leaving other currencies and buying into bitcoin for the upcoming fork, hoping they might get another currency. Will happen with bitcoin cash a couple months ago. Hopefully it goes well and transactions i will be quicker and cheaper. That is what we hope for. Brad sonny, thank you for joining us. Sonny thanks. Brad coming up, as the self driving competition heats up, we will take a deeper dive into the Handsfree Technology driving Autonomous Vehicles. This is bloomberg. I am mark crumpton. This is the Bloomberg Technology. Says he isrump disappointed the Justice Department is not doing enough to investigate Hillary Clinton and the dnc. The president denied any connection between his campaign and russia. There was no collusion. There was no nothing. It is a disgrace frankly that they continue. You want to look at Hillary Clinton had the new book and just put out by donna brazil where she reports she stole the election from bernie. That is what you should take a look at. That book by donna brazil alleges Clinton Campaign controlled the ins east red a g and finances before she secured the president ial nomination. Former california congresswoman mary bono tells the ap she can do it suggestive comments from a fellow lawmaker who still searching congress. She and others say the incidence occurred years or decades ago. Spanish judge on friday issued International Search and arrest warrants for the Catalan Leader and his aides. He is in belgium after he and his cabinet were removed from office last week for even eagerly declaring catalonias independence from spain. Eight former cattle and officials were jailed on thursday. Former greek finance minister discuss the future of europe during an interview with bloomberg television. He has written a new book called adults in the room, my battle with the european and american deeper establishment, says in the wake of the election chancellor Angela Merkel is in trouble. Angela merkel is an extremely weakened leader at the moment because she has to form a government with a Political Party whose number one and maybe only promise to its electorate is that they will stop emmanuel taking the proposition that leads us towards a common budget. That he believes what ails the European Union can be fixed by a common budget. Chancellor Angela Merkel continues her push to form a Coalit