The latest allegations of Sexual Misconduct. Oregon democrat ron wyden [no audio] the senates gop majority voted today to begin talks on reconciling the two tax bills. Lawmakers are headed to conference to work out differences and emerge with a final bill that could be passed by the senate and house and then signed by President Trump by christmas. Thousands are fleeing ongoing wildfires in southern california. Flames have charred 50,000 acres of land and burned hundreds of homes. Global news, 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. Im jessica summers. This is bloomberg. Bloomberg technology is next. Emily im emily chang, and this is bloomberg technology. Broadcom posts numbers that beat across the board as it tries to pull off the biggest takeover in tech history. Amazon and alphabet butt heads over reciprocity with customers caught in the crossfire. A bloomberg exclusive, coinbases ceo offers his take on bitcoin, which just roared by 13,000. How it has nearly tripled its user base. First, to our lead, broadcom reports fourthquarter results beating forecasts, offering an optimistic outlook for the current quarter, indicating its smartphone customers are optimistic about demand. Lets bring in our bloomberg editor at large, cory johnson. You have been pouring through the numbers. You said it was an interesting quarter. Why . Cory broadcom is a very interesting business. They have gobbled up some really interesting and big parts of the semiconductor world. Broadcom having success with the iphone and in networking devices. Brocade was acquired by broadcom. That company dominant in the storage business. The results that we see here today from broadcom, looking back to the quarter that ended in october, really strong iphone business here. We see really great strength and gathering more and more silica in the new iphones, and we see that business showing up in these results. 17 yearoveryear growth in the Semiconductor Space is very strong for a business this big. Emily weve seen the danger of relying on apple as a customer. How much does broadcom rely on apple as a customer . Cory its absolutely the most important customer. Looking forward to the qualcomm m a, broadcom has been successful getting apple to pay it. Qualcomm has been unsuccessful. Broaddcom has been able to add more real estate in the phone. Interestingly, the quality of the phone call that apple likes to boast about you remember how crummy the phone was when it first came out. Hearing the call was more and more difficult. Broadcom has a great ship that chip that helps us to listen to a little bit better those signals coming through the phone and understand what we are saying to the phone. It helps power siri. Those kinds of chips are so important to apple, and they are relying on broadcom. You can see the sales in this quarter. What we will learn any second now as the Conference Call goes on is how successful they have been selling new routers, selling servers. Think of the companies in technology that are really struggling now. Meg whitmans hewlettpackard, having horrible problems. Cisco, just barely coming out of a turnaround, having trouble selling hardware. Oracles sun business, struggling. The growth in amazon web services, googles nascent efforts in the cloud what we see there is, they might be buying chips from broadcom itself, not going to hewlettpackard or ibm, but buying the chips from broadcom, building their own devices. Thats what i want to hear about on the Conference Call. What kind of success are they having selling into the white box manufacturers at amazon, microsoft, facebook . Emily what will we get on this potential takeover . Cory what they could do to help sway the market is to talk about financing and how they can afford it. The Financial Guidance they put out in this Earnings Report the guidance is nebulous. Its, hey, in the future, we are going to see margins go from 60 to 65 . We are going to see increased Free Cash Flow as a percentage of net income. We are going to have a much financially stronger business going forward. They are not putting dates on it, but they are telling this business is going to go from really good to really great. I dont know if we believe them or not. They dont have a history of missing targets. Emily its more difficult to have a timeframe, right . Cory it is typical of companies when they give specific Financial Guidance to give us a timeframe. They are saying eventually. It suggests they see great things for this business and would give the kind of Financial Leverage to do the acquisition and borrow a lot of money to do so. Emily thank you so much. We will share updates as we have them. Editor atlarge cory johnson will continue to monitor the broadcom earnings call, and we will bring you any headlines. The feud between two tech giants heats up. What it means for users, next. Bloomberg technologys livestreaming on twitter. Check us out at 5 00 p. M. In new york, 2 00 p. M. In san francisco. This is bloomberg. Emily a new study shows just how far Silicon Valley still has to go to fight Sexual Harassment and improve workplace diversity. A study by a venture firm found 53 of respondents experienced or personally know someone who was sexually harassed in the workplace. When it comes to diversity, just 17 of startups have a formal strategy to promote diversity and inclusion. Thats up only slightly from 14 in 2016. Amazon and alphabet are getting aggressive in order to gain a greater hold in the competitive Smart Speaker market. Google dropped its Youtube Video service from amazon devices, citing the internet retailers failure to make Amazon Prime Video available through googles gadgets, as well as the recent halt of the sale of some nest products on the amazon website. Who has the upper hand, and what does it mean for consumers . Lets bring in james cakmak, who covers these firms. And in new york, we have mark gurman. What happened here . Mark to be honest with you, its a very petty fight we are seeing between two companies. It comes down to them both being strong competitors with each other. Amazon is making hardware now. Google is making hardware now. Amazon came out with alexa. Google has google assistant. Amazon has their video and Music Service. Google has their Music Service now. Whats going on here . The youtube application on the echo show, amazons new popular speaker which has a touch screen for watching videos, no longer has a functioning youtube application. The fire tv, settop box people can use to connect to their big screens at home, wont have youtube support beginning january 1. Emily amazon says google, james, is setting a dangerous precedent. What do you think . James i think petty is the right word for what we are seeing now. These companies are on a collision course. They are starting to flow from google over to amazon. On top of that, you have the whole content endeavor. What you will see from amazon is potentially a subscription like youtube tv type offering. These companies collision course is the destination. Emily why arent amazon videos available on google devices . This, as amazon and apple are deepening their partnership and you can get Amazon Prime Video on apple tv. Mark from a business perspective, it makes very little sense. What companies should be doing, and microsoft is a good example, is putting their script and Subscription Services on as many platforms as possible. All amazon is doing here by limiting their googles ability to have Amazon Prime Video on google devices is having less amount of people to subscribe to it. They could be losing money here. On the other side, its a power move. They want leverage for certain things. Google is upset that amazon doesnt sell the latest products on amazon. Com, the retail website, and amazon is upset at google because they are going on their turf. They have an alexa competitor now as well. Emily so, they are both being petty. Doesnt it appear that way . James its petty. This is part of a much better much bigger fear that i think both companies have. Its advantage, amazon. All the ad dollars that are at risk for google are starting to flow over. You dont need that as much much bigger fear that i think anymore if you go to amazon. If you think about the content side with the disproportionate amount of spending that amazon is doing with their prime video versus google, i think you are going to see bigger and bigger moves on their part, which puts youtube at risk. You have a lot of risks that google is facing, so i dont really blame either company for trying to jockey until we see where the chips fall. Emily mark, would you agree its advantage, amazon . Mark i think google is coming from the below approach here. They are punching up. Google has a strong infrastructure. They are the ones making so much money in the ad business. I can see their perspective, though. What amazon did is they created youtube applications themselves. They are not using googlemade youtube apps like other companies do. Perhaps the amazon approach makes sure that google doesnt get as much ad revenue as they normally would have gotten out of an inhouse youtube application. I can see why google would be upset. For those watching, the only people losing are you, the customer. Emily whats happening when it comes to the battle for the home . If you are an apple household or primarily android household, are these devices then able to communicate with each other . You throw an amazon alexa into the mix. How do you and the household reconcile these different devices . Mark we had an episode earlier today, and i encourage everyone to watch on facebook. Com gadgetswithgurman, comparing all of the latest Smart Speakers. My take away from this was that the sonos one is the echoes can work with your apple devices. They can sync to your apple icloud calendar. I think today, as of today, the alexa, echo ecosystem, and the sonos one, those will work together. Google has their optimized speakers. They have more google Home Products in the pipeline. Apple has their home pod coming out in early 2018. That will be optimized to the iphone. It will not work for someone who uses a noniphone as the core of their ecosystem. Emily how do you expect this to play out . James its advantage, amazon. They are starting to really educate the users. They have these whole teams that help you go and build up your smart home. The second thing they are doing is they completely understand what they are and are not. By looking to partner with all the Major Companies that will help the echo and alexa ecosystem be successful they are not trying to be everything to everyone and go outside of their skill set. The platform approach they are doing, integrating all these thirdparty services you saw it with the cars, the ford, bmw. I think you will see a lot more partnerships to come. If they can push the customer and educate them, i think that ecosystem will be built around what amazon has done. Emily james cakmak of Monness Crespi hardt co. And mark gurman, thank you. Coming up, airbnb wants to be the top destination for sustainable travel. We will sit down with the top exec and hear their strategy, next. If you like bloomberg news, check us out on the radio. Listen on the Bloomberg Radio app, bloomberg. Com, or sirius xm. This is bloomberg. Emily wework doesnt look to be scared of any potential downturns from brexit. They are set to become the largest renter of offices in london. They currently operate 17 london facilities. Two more will open soon, and it has announced expansion plans at 10 additional locations. It is in talk to buy a 12 building campus for 800 million. The United Nations designated 2017 as the International Year of Sustainable Tourism for development, and airbnb is using the u. N. s guidelines to showcase its potential as a top sustainable option. We began by looking at the company. We are seeing major travel in what has been called the flyover areas and also in emerging economies. You look at our recent report. It shows almost 250 growth in places like indianapolis, indiana. What that really speaks to is the Network Effect of the platform as it spreads out and more and more people use it. Those are places that have been underserved in terms of traditional accommodation options. Its hard for those hotels to justify build out there. When you have things like big ten football, you see our platform spring to life. Emily you are expanding in asia, africa, and the pacific. Whats been the biggest challenge . Chris the pace of the growth. Thats a highclass challenge, by the way. We just had our best quarter weve ever had. Over 250 Million People now on the platform. This growth is just taking place underneath us. For us, its incredibly important that we make sure its working as well as possible for our guests and hosts. Over 60 of people who use airbnb do so based on the recommendation of a friend or family member. I just came back from jamaica. The u. N. Had a conference on inclusive travel, how travel is becoming a bigger and bigger part of the global economy, how can you make sure everyone is benefiting from it. From a sustainability and economic inequality perspective almost 60 of all travel will be taking place in these emerging markets. How can we do things now to make sure entire communities are benefiting from it . Given that we are making travel available and accessible to traditionally nontraditional areas where people travel to as part of that solution its an interesting thing to have the conversation now. Emily you say you are focusing on Sustainable Tourism. What does that mean . Does it mean you dont put certain listings on your platform . Chris great question. If you look at the way our platform works, it has roughly 65 less impact on carbon than a traditional hotel. One of the greatest contributors to climate challenges is cement. That takes an anonymous amount of cement to build a traditional it takes an enormous amount of cement to build a traditional hotel. 90 of them are in nontraditional hotel districts, so people can travel there and get around by foot, get around by bike, less water impact, less energy impact. What you see from our survey data is that over 70 choose to use airbnb because they see it as a sustainable option when it comes to travel. In a time period where climate is one of the huge issues of our time and with travel and tourism growing so fast, how can you make sure you are doing it in a Sustainable Way . Emily any insight into whether trumps policies on immigration is impacting International Tourism . Chris its a great question. I will say we havent seen that yet. Weve been out front in terms of opposing the travel bans. We had a whole campaign called we accept. We havent seen that in terms of actual travel and tourism. I think it has profound impacts on the u. S. Where you potentially see that is, does the u. S. Does it take a hit as a result of that . As a derivative of that, travel and tourism . Its growing so fast im not sure thats going to be the case, but you do see the reverse of that. When i was in jamaica, i had a number of countries that came up wanting to talk to us about how we could work with them to make our data accessible, to help inform their marketing. They themselves are looking to diversify their travel where they are inbound, where people are traveling from to go visit their countries. They specifically were concerned about becoming overly dependent on the u. S. For travelers and wanting to diversify. I think that is really being driven by some concerns about issues that are taking place over here, in terms of how welcoming the u. S. Is perceived to be. Emily you worked in the clinton administration. We recently covered the Sexual Misconduct of a Major Democratic Party donor. Whats your response to these allegations . Chris we believe what the women have said out there. I think we have gone through i think its been a long time coming, and it was very much needed. A pretty significant transition in the world, particularly in this country, in terms of people being willing to speak up and stand up on an issue that has been taking place for forever. And i just every day, you read these stories. Im incredibly impacted by the coverage of some of these victims, these women who stand up and talk about these issues. Obviously, its not particularly hard to say, we condemn any of that type of activity. We certainly believe what the women are saying out there. But even more broadly, we see that we are now in the middle of a pretty significant transition in what social mores are, how people look at it, how the press covers it, how willing people are to talk about it and engage on it. And thats incredibly important if we are going to be able to address the underlying challenges. Emily airbnb had its own Sexual Misconduct allegations in china. What happened there . Chris you could probably guess, we just dont talk about hr types of issues, personal types of issues. We are, generally speaking, broadly speaking we are not always perfect. We dont get everything exactly right, but we have a values system we believe in strongly and seek to execute an act against those values. Emily reporters are speculating that airbnb will go public in 2018. Can you tell me chris i told you, when we know, you will know. Emily chris lehane there, head of airbnbs Global Policy and public affairs. Coming up, just days away from its cboe debut, bitcoin his the 13,000 mark. And a feature i want to bring to your attention, our interactive tv function. You can watch us live. If you miss an interview, you can go back to it. You can send our producers of a message, play along with the charts we bring you onair. This is f