Than half of 1 . The suspect and the attempted suicide bombing of new york was arraigned from his hospital bed in a Manhattan Federal Court room. He is being held without bail and will remain in custody until his court date in january. And Rob Rosenstein defended special Counsel Robert Mueller before House Judiciary Committee today. That testimony comes after the doj provided Text Messages between fbi agents assigned to mueller steam and fbi lawyers, some of which criticize the president. , andl news 24 hours a day more than 120 countries. This is bloomberg. Emily im emily chang and this is bloomberg technology. Coming up, apples roughly 400 million bet on facial recognition technology. We breakdown the investment. Plus, one days ago until the big one day to go until the big vote to reset the internet. Former fcc chair tom wheeler joins us to discuss a way forward if Net Neutrality is repealed. We will hear from tmobile as the Telecom Giant prepares to take on tv. But first, to the lead. Apples appetite for deals grows. The tech giant is investing nearly 400 million in finisar, a maker of technology that is critical to the new iphone x features like facial recognition. This comes a few days after apple confirmed it by shazam. It bought shazam for an undisclosed amount. Shares have had their best days since 2009, soaring more than 20 at one point. Here to discuss is mark gurman who covers all things apple. So walk us through this deal. Mark this deal is part of apples billiondollar pledge fund to invest in manufacturing in america. Obviously this comes on the heels of president trumps proclamation of everything needs to be manufactured in the u. S. They are investing in finisar. They make lasers they can put in bunch of different products, air pods. Those are lasers shooting in your ears. It is a laser used for face id that can recognize your face. It is an extremely important component for apples latest string of products. Emily it is currently in the iphone x . Mark they are currently using products in the iphone x and they will be investing in it. They will put a chokehold on that market of sensors. Emily how many jobs are they creating here . Mark lots of jobs. What is happening with the 390 million, finisar can open a plant in texas they previously closed down. They can hire a bunch of people. Emily will this alleviate any supply chain challenges . Mark in a sense, yes because that amount of money is going to ensure that that amount of money is invested in those components apple will need. Emily so, right now this tech is being used in the emoji technology as well. Mark the technology, the lasers is face id which replicates an animoji. With an iphone x, it can scan your face and then the lasers can be used for animojis. Like i said, it is used for the air pods as well so there are broad applications. Emily this deal gives apple a competitive advantage when it comes to a. R. Mark absolutely, they are one of the First Companies to recognize the importance of a. R. What you are seeing is apple investing more deeply in the technology, more than you have seen other Companies Like samsung or google do. Emily you reported on apple buying shazam. How does this new news give us more insight into their m a strategy . Mark you see two different paths happening now. You see apple doing more investment in order to prepare for its future, but also bigtime acquisitions like with shazam. They will integrated into the company. That is one strategy. The other are these big investments, giving Companies Money for them to have enough resources to build components that apple needs down the road. I think we will see more on both paths. Emily mark gurman, thank you so much. Target is getting ready to bring same day delivery to most of its stores next year. It is purchasing grocery delivery startup in a 550 million allcash deal. It will give target same day delivery at about half of its 1800 stores next summer. It could be the target Logistics Operations as it tries to keep pace with walmart and amazon, who also offers sameday service. Coming up, the internet superhighway may be in for some slowdown. We look at the fccs upcoming vote to repeal Net Neutrality. And bloomberg tech is livestreaming on twitter. Check us out weekdays 5 00 p. M. In new york, 2 00 p. M. In san francisco. This is bloomberg. Emily the fcc will vote thursday to repeal the obamaera internet protection known as Net Neutrality, rules designed to make the internet equal for all. So what happens if the vote goes through . Cory johnson has that answer. Cory just as government rules for the interstate highway, government rules created the information superhighway, a cliche to be sure, but a useful metaphor. What better metaphor to explain the controversial idea of Net Neutrality. Our ride a bandwidth hogging gas guzzling beast. A 1968 mustang gt. This car is a metaphor for a movie on hulu. If the interstate is the backbone of the internet, at full speed. The backbone is big Companies Like at t, and all of our fellow travelers are traveling the same road at seen speeds until we reach the exit. Speeds until we reach the exit. But that last mile is owned by a small group of Internet Service providers like comcast, spectrum and verizon. Without Net Neutrality, the last mile will have different rules of the road. We have gotten off the information superhighway at high speeds, but a monster truck could pay to go over everyone else, buying their own fast lane, leaving competitors in the dust. Net neutrality requires that the last mile treat everyone the same. The protections were codified in 2014, but commissioners want to unwind those rules, abolishing Net Neutrality. And potentially leading isps to decide the rules of the road. Emily that was cory johnson. Now to discuss more on thursdays looming vote, i would like welcome the man who oversaw the installation of those protections, tom wheeler. You were the chair from 2013 to 2017. Welcome back. The fcc has said in their memo of intent that the ftc is empowered to enforce these new rules. Do you trust they will do so . Mr. Wheeler i think the ftc is a fine organization populated by good public servants. The problem is that their statute does not give them nearly as much authority as the fcc has, and they are not an Expert Agency like the ftc is. Since 1934, the fcc has been created by the congress and charged with the responsibility of overseeing the Important Networks of the nation. For the First Time Since 1934, with this decision, the fcc is washing its hands, walking away from the congressionally mandated responsibility and they are only doing it for the most Important Network that will define the rest of the 21st century. It is inconceivable kind of action. Emily lets take comcast for example. Which is set it will not violate Net Neutrality rules once revealed. Repealed. A spokesperson for comcast singing any reporting that we are prepared to have prioritization is inaccurate. Do you trust that given they were one of the companies that bought for years against it . Mr. Wheeler one is if they have no problem with it then why are they against the rules . Secondly is, lets look at how comcasts committed, which is what they call it, to Internet Access has changed over the last year. When they were dealing with me, they used to say we are against paid prioritization. Now they dont say that. Now they only say we are not in support of unlawful prioritization and discrimination is the word they used. There is a big difference. If you are either for fast lanes or slow lanes, or against fast lanes and slow lanes. They used to say they were against it. Now they dont say that anymore. Emily representative Marsha Blackburn was on bloomberg tv earlier today talking about how she believes internet protection should be enacted. Take a listen to what she had to say. Rep. Blackburn no blocking, no throttling. Addressing latency. Those are proper steps that should be taken by congress, the house, the senate, signed into law by the president. It should not be something that changes every time you have a change of administration or you have a new chairman of the fcc. Emily mr. Wheeler, what do you think about a legislative fix for this issue . Mr. Wheeler the fascinating thing is that ms. Blackburn and her republican colleagues in the house have also been flipflopping around on their position. When i was dealing with them, the line was no blocking, no throttling, no paid prioritization. Again, notice of that whole thing about paid prioritization, about that lanes and slow lanes, is off the table. They dont talk about that anymore. So the important thing is if there is any legislation, is it legislation that is moving backwards and taking things away that exists for American Consumers today . Or is it moving forward . The fact of the matter is that the open internet rule is today the law of the land and whats going to happen here is that the republicans are taking away the protections that now exist for American Consumers. Emily we have to talk about these fake comments that appeared in the Public Comment section, which of the vast majority of the overall comments in favor of Net Neutrality. These fake comments overwhelmingly against. Attorney general Eric Schneiderman said one million comments were given to the fcc with stolen identities. This vote must be delayed until we can get to the bottom of what happened. How serious is this issue of fake comments and the fccs attempts to block an investigation of them . Mr. Wheeler well i think what is sad here is the fccs attempt, the trump fccs attempt to block an investigation. I mean, the portals to the fcc are open. And it appears by all the reporting that various players try to take advantage of that, use bots and fake names and have people who were dead file. What is disappointing is that the trump fcc is not saying here, come look. Lets see what was going on. Help us solve this problem. Emily so, we have a question from a viewer here about whether it is really better to favor the winds of a google and facebook rather than a verizon and at t, really investing in the infrastructure of the internet. Mr. Wheeler i think we go back to what cory did in his excellent introduction of what Net Neutrality is, because there is a huge difference between google, facebook, verizon, at t and comcast. One is about the networks are the highway. We want those highways to be fast, fair and open. Now, i think probably what your viewer is commenting on is there is this untrue statement that is floating around that somehow the Internet Service providers have not been investing as a result of the open internet rule. But the fact of the matter is if you look at what Capital Investments have been since the open internet rules were adopted, they have been climbing. You look at the revenues. The revenues are climbing, the profits are up. Their stocks are at record levels. So the fact of the matter is they are doing quite well. None of them have said to the ftc or to any of their shareholders that their future ability to invest has been threatened. And so, i think we have to differentiate between lobbying rhetoric and what is really happening in the financial markets. Emily what do you think happens in the inevitable lawsuit . Do you see this order being upheld . Mr. Wheeler i hope not. It will be an interesting challenge in the court. The order that we passed went to court twice and was affirmed twice. That is an important precedent. The question is has the fcc built a factbased case . Not an ideological case, but a factbased case that things have changed so dramatically in the last two years that they have to totally wash their hands and walk away from any of the responsibility that Congress Gave them . I think that is a heavy lift. Emily all right, former fcc chair tom wheeler, telling us what you really think. Thanks so much for joining us again. We will continue our coverage of the effort to repeal Net Neutrality on thursday when current fcc commissioner brandon carr joins us on the show after the vote. Coming up, could amazons alexa help diversify your portfolio . Our future investing series is next. This is bloomberg. Emily bitcoin is having a rough 24 hours, falling more than 8. 7 following a series of recordbreaking trading sessions as futures began trading. Janet yellen was asked about bitcoin and was apprehensive about the world leading cryptocurrency. Ms. Yellen bitcoin at this time plays a very small role in the payment system. It is not a stable source of value and it does not constitute legal candor. It is a highly speculative offset. Emily major investment firms have slowly been playing catchup incorporating new technology, so they are also fearful big tech giants will threaten the way of doing business. Could google or amazon swoop in and push firms like blackrock or fidelity on their heels . Sabrina willmer covers this topic as part of our future of investing series and joins us now from boston. How might this happen, how might a google or amazon disrupt blackrock or fidelitys business . Sabrina a google or amazon could offer mutual funds or etfs on their platforms. They can also offer Financial Advising and brokerage services. They could get into the business in a variety of ways. They can also get into the banking business. We have already started to see this happen a little bit where alibaba in 2013 started offering a Money Market Fund and it has become the biggest Money Market Fund in the world. So, there is no reason that amazon could do something similar where clients could store their value in their cash in a Money Market Fund. Fidelity and google definitely recognize that after what happened with alibaba fidelity and blackrock. Fidelity is taking steps to protect against disruption by investing more than 2. 5 billion in technology each year. They took a stake, or bought emoney, a Financial Planning company, in 2015. They have also been doing a number of experiments on amazons alexa, working on some of the software where a customer could go in and ask where they are in their Retirement Plan or whether they would be able to meet their education goal. Alexa would come back and say you are not on track to meet your goal, but here are this that you have to take to actually meet that goal. That is kind of a work in progress right now because they dont have voice identification. Right now, fidelity labs is working on that but the technology does not seem to be there yet. That is one example of what the future could look like for these firms. Emily how likely is it that that future arrives . Sabrina there are a couple of things that are standing in the way of tech firms, including regulation. If they get into the Money Management business, they would have to be considered a fiduciary and being a retailer is very different than being a fiduciary. They can also take a reputational hit if they are managing funds and lose money. That can also hurt their brand. But consumers are ready for this. There was a survey where more than 50 of High Net Worth individuals said they would be willing to put their money with a google or amazon, have them manage their wealth. I think they like the efficiency. But there are also privacy concerns and i think people still want that human touch. Emily sabrina willmer, we will have to leave it there. Thank you so much. That is part of our future of investing series. Coming up, tmobile u. S. Is stepping up tv as the wireless carrier prepares to enter the crowded field of online television. We will hear from the coo of the wireless carrier next. If you like bloomberg news, check us out on the radio. You can listen on the Bloomberg Radio app, bloomberg. Com and siriusxm. This is bloomberg. Alisa you are watching bloomberg technology. The fed has raised rates by 25 basis points. The fomc lifted its growth forecast for next year and maintained the projection of three rate hikes in 2018. Janet yellen said the labor market will remain strong and trig r higher wages. President trump has promised Everyday Americans a giant tax cut for christmas. He said a typical family of four earning 5,000 would see a tax cut of 2,000 under the legislation. The white house didnt provide analysis to support the claims. U. K. Prime minister theresa may has suffered a serious blow to her brexit plans. They voted to change the governments bill so that parliament is guaranteed a vote on the final brexit deal. This gives them the potential power to veto the withdrawal treaty if they dont like to terms of the deal in 2019. Saudi arabia will today unveil 19. 2 billion program to boost their private sector growth in 2018 with money to support highway construction. It contained 17 separate initiatives the government hopes will result in direct and indirect job creation. It is a key component over the Transformation Plan ahead of he budget due next week. As we have heard from deborah, we have been seeing this reaction to asian markets from the fed hike and of course the surprise move. You have livestocks down in china down by about 10. 4 on the lunch break. Chinese stocks trying to weather the surprise move. Elsewhere, a big pickup in the korean market, up by 1. 2 and a rebound of some of t