Bitcoin. Lead and he bloomberg scoop. Bloomberg has a new number two. They had named Barney Hartford the chief operating officer. He is the former ceo of orbit. Worked for and competed the onlinewshahi in travel sector. The top court has ruled the service should be regulated as i we spoke with eric newcomer. With has a long history kaiser shockey. A trusted hand. That is part of it. Barney did a good job at orbit. It was a debt laden company. He was able to get a good exit of 1. 6 million. The experience at orbit and expedia, marketplace businesses, which is relevant to uber. It is relevant expertise, having a Good Relationship already, and he was doing this advisable role since october to feel the company a. To feel the company out. Emily he wrote a series of tweets. What is the higher of a former Industry Expert imply about the direction they want to take the company . It shows the global reach and businessss of ubers as an employer. His tweets speak to how he thinks about uber. That is a top priority for him, is ahe Airline Industry parallel uber does not love. Thate made the point to me airlines are doing better these days, more profitable business, but that expertise as a Business Model comparison, but also as a Similar Service industry is useful background to bring. Emily i want to talk about this in the context of this news out of the eu that uber will now be regulated as a transport company and not a tech company, which is what they were hoping for. This is a big blow. What does this mean . It is bad for the company, because it means more regulation, more the potential they could have to pay their drivers more, have more regulated rules rules about how they pay instead of a digital platform and disconnected from rules. On the other hand, they have already regulated as a transportation company. It has already started to deal with this, and the stances generally been we will work with local regulators to allow them to regulate us as they went. We will have input. And they have lobbied against it, but the company has already started to pivot to deal with what they saw coming. Emily as a longtime investor in europe, what do you make of this decision, given the challenges that uber is facing in london specifically . Interesting, a confirmation that local regulators in europe and across the globe are looking at these saying wenies and have rules and you have to operate in the context of those roles. In the shortterm, it doesnt change much for uber. It does cap the potential upside. In certain countries, uber was hoping to enter peertopeer. That will not be possible. User, and i keep hearing this, the uber experience for diluted over been the 4 over the past 46 months. Over the past four to six months. It has an impact at the level of the customer experience. Isnging new management highly needed. Uber has got to focus on its core. Emily what signal do you think this sense from european regulators about the economy in general . There is talk it could be ,ffecting Companies Like airbnb and that it may be, in the future, regulated more like a hotel and a home rental site, as they would prefer. There is a general move and realization across europe that many of the Tech Companies that that have become dominant across europe have done that by pushing the boundaries too much. Not paying their fair share of taxes. It is fair to expect a tightening of the great. Also a realization by the local authorities that they need to create a level Playing Field for the local operators as well. Fiscal discipline on top of those companies. We see a wave of change, and there is demand from consumers, politicians, local services and businesses to say maybe we are being to open. China has been good about closing those doors. Maybe it is time for europe to do that as well. Know he has been traveling a lot. He has been to london. How do you think the ruling will impact his strategy . I think there is a lot of europe that needs to get figured out. With hiring barney, it is a statement, ok, internally, somebody else needs to randy internal business, somebody else needs to run the internal business, because there is so much to do outside. In india to all over the world, thereof are these questions either strategic dealing with competitors or countries where regulation is. He is going to be traveling around and either establishing better in markets, cutting deals, or making an apology as necessary. This week, tech watchers finally got glenns of one of the most longawaited products. A mixed reality headset. The goggles come with a controller and computing pack to wear around your waist. It is now facing increased competition from google and apple in augmented reality. We previously reported it will cost between 1500 and 2000. Up,king of gadgets, coming we take a look at the big year in Consumer Tech from amazon, google, apple. Years ke Bloomberg Bloomberg news, check us out on the radio. This is bloomberg. Emily facebook has introduced new features to curb abuse and protect privacy. New facial recognition pictures should prevent unwanted contact when someone you have blocked thats up a new account or try to contact you from another account. They also provide the option to ignore a messenger conversation and move it out of your inbox without having to block the sender. Hatsapp was given a month to comply with french policy law and stop transferring data from facebook users about consent. Users without consent. It wants to ensure the highest level of transparency on the massive data transfer. After 28 eu privacy watchdogs published a letter to the cofounder to reassert their concerns over changes to the privacy policy. Big three are constantly fighting for retail supremacy. , andid google, amazon apple try to win . All of the big players are now vying for every part of your life. Google is no longer a search am betty amazon is more than a retail channel. Apple is going for the high end. They are trying to fight to be your number one, and they are releasing more products. Highendgoing for the and an essential part of your life. Biggestne x is the anticipated gadget of the year. It has been a hit with consumers so far. Apple is looking to round out its hold on you with an apple watch and air pod. Google wants to sell you a 400 highend speaker. The , butecommend the speaker could be a better fit for your home. Amazon has released several new echoes speakers this year. My favorite, the echostar. The ecco spot. The Top Companies are looking toward next years holiday season. Outes home part will come in early 2018 after being delayed. The iphone maker is working on its next iphone, and an ipad with facial recognition for next year. Phone is working on a new speaker with a screen. Amazon is working on new echos. Happy holidays. Emily amir, bitcoin coming up, bitcoin hits another year on a bigger stage. Plus, one of the most popular cryptocurrencies on the planet is facing its biggest controversy. Is investigating possible Insider Trading. This is bloomberg. Emily the worlds Biggest Exchange just joined the bitcoin revolution. Futures started trading this past sunday night on the cme after savo introduced similar derivatives. Cme is a bigger player in futures. The exchange got off to a faster start with more efficient pricing. It is a huge win, because cmes contracts are five times more valuable. We caught up with our bloomberg editor at large. It is very important that these financial projects and hedging mechanisms are introduced for Institutional Investors. For a lot of these investors, it is the first time they have been able to go long or short on bitcoin. Emily we have eight chart here. We have a chart here showing how futures got off at the cme. What is your take on the significant of this week versus last week . Exchange where a lot of big money changes. A lot of groups are unable to trade this for legal reasons. This is the only product they can legally get involved with. They can actually, a lot more money can be attracted to these cyber currencies. Last twow does the weeks change what youre doing daytoday your hedge fund . We are long only, but there has been a huge amount of media interest in this area. There has been a huge number of consumer retailers coming online , just purchasing bitcoin and other cryptocurrencies. We are seeing more institutional and wall street players coming onto the scene and wanting to go long. I think it is great for the whole industry. Emily you also have a ameritrade on friday saying they are getting into this. Right. Significant requirements, people have so much money behind this. It is not as simple as just trading a stock or currency. A lot of volatility around this. Emily we you we were talking about the show. The price has just sort. Every time you come on i say, are we in a bubble . The price keeps going higher. Does the rapid rise of the price make you question the legitimacy of the value . What we are seeing, in a way, it is not that dissimilar from the rapid rise you might see from other technologies. At a breakout startup like uber, we are seeing a similar rapid rise there, but it is happening in private markets that are liquid. You are seeing Retail Investors earlynd see the rise this day today. See the rise this early day today. Viscerally they today. It is not surprising to me we are seeing the type of growth. Emily do you agree with that . It is not just the callings. It is not just the callings. There is a lot of junk out there. A lot of stocks are flying. I was looking at a chinese with 18ompany today employees and it has a 3. 5 billion valuation. That is a mania. That is not based on what is actually going on or the potential for this technology. It is just a mania of people. I think pushing behavior like that is the inability of Institutional Investors to get exposure. They dont have the ability to buy underlying and mass underlying assets. Mania,whenever you see a legitimateee, while investors in real companies, there was a lot of junk and people trying to take the money of people interested in the idea and run with it somewhere else. Not toot in real estate long ago. You saw it in real estate not to on the go. I think we are seeing that in this general notion of cyber currency. Some of these stocks are running with no fundamentals whatsoever. Are you seeing anything that makes you an easy, and if so, what . I think this area is so emergent and experiential. I think it is really good that money is flowing into things that are less sure. Not for the people who lose money. Of course. My number one concern is people investing in things you dont understand. This is complicated and esoteric technology. Your retail momandpop investor should be careful, particularly when investing in more experimental technologies outside of the bluechip cryptocurrencies like that going. Micah bitcoin. Emily cryptocurrencies like a bitcoin. Emily how long before we see more cryptocurrencies . I think we will see dozens. There is a stock flying through the roof with basically no financials. It has paid hundreds and thousands of dollars in fines. I dont think the people buying this dont have any idea of what the firms history is. Emily if there is some sort of crash or correction, how far out is Something Like that . If you zoom out, cryptocurrency has been filled with these nasa corrections throughout its history. It is a natural part of where there is a disparity between the number of people that see what feels like an inevitable future and where the technology is. To bring it back today, the trading of future contracts makes it less likely we will see downside. On the downside, you will have shortsellers looking to cover the short position. You wont see those 20 corrections like we have seen in the going seen in bitcoin. Investigatesmpany Insider Trading on its platform. The trading came hours before it announced it would allow bitcoin cash. Here is what the bank of england governor had to say about bitcoin this week in london. It has increased significantly in value, but it is not connected to the core of the financial system. The magnitude of less than the market cap. It is more like a neck retype risk like an equity type risk. Usly cory johnson joined once again to wrap up all of this news. Of ans is the great fear unregulated market, which is someone will take advantage of that to do something illegal, or maybe just deceptive and take money from investors. Fear for anyone involved in this trading that the regulated trading we are used to that has protections are not extent in the world of trading cryptocurrencies and someone couldve jumped in. Emily the fear is that coin based employees we know coinbase was being attacked by hackers. We dont know who couldve gotten into the systems. We dont know how the systems work. We know they are not regulated or monitored. Anytime anyone uses regulation, we can at least think regulation exists as protection. The investor protections and monitor and Market Monitoring that happens across most trading worlds doesnt happen with bitcoin. They say they wont hesitate to fire anyone. There has been a lot of chatter about this. This is the issue. When you make a fair and orderly market as the principle guiding role and letting investors know they are going to get a fair and orderly market, no one is going to trade and know they cant go anywhere else and that they are going to get a bad price. That could destroy the business of coinbase. This reputational issue is serious. Emily our bloomberg editor at large there. Still ahead, our exclusive interview with brian moynihan. Why he is skeptical about bitcoin. All episodes are Live Streaming on twitter. Check us out. This is bloomberg. Emily welcome back to the best of bloomberg technology. I am emily chang. Investor friends large and small are grappling how wrestling with how technology can be used to disrupt the financial industry. That includes bank of america. Using technology to improve the Banking Experience of estrus. Experience of customers. , we are i have been ceo about 25 billion in coding. You start to think about that. That is a lot of punch now that he improvements. That is a lot of functionality improvements. We are a talented group of 200 something thousand teammates. That is what we do. Money is digital. The activities are digital. Knttinghat together titting that together is huge. What will happen with voice recognition, being able to transmit on a wifi basis tons of data without the battery going down in 10 seconds, all of that together is important. Having all of the data in the world requires the Storage Energy vote of analytics storage and retrieval of analytics. To have it all come together. The advances are tremendous. When we think about Artificial Intelligence it will be a much better experience for customers to get the questions they what answered immediately. They want answered immediately. We got to do a great job. We will interface with alexa and the other variations of syria and everything. The number one thing is you cant get ahead of the customer. The number two thing is you will be investing far before the act before the activity changes. All of the digital wallets we pay, apple pay, still a small percentage. It is growing. Number,it will be a big but you have got to have it in order to make it go there. It is going 100 yearbyyear. Still, it is a minor amount of payments that come out of consumer accounts. We have to educate them and help them. Tremendously great product for customers. We just have to drive it out there. Technology without human adoption. We will continue to invest. We think of ourselves as a Technology Driven company. That requires us to invest in cyber. Are you put it together, we hightech. Years, how many of your employees would be tech people . Is there a shift in the balance . It is hard to say how many people. We are investing. As we downsize bridges, we upsize the number of people. If you go downstairs and the branch here, you will see they are working off of our ipads and doing what you can do yourself, because it is the fastest way to do it. They are working on technology, analytics, or serving Customers Using technology. Have, platform we automated rebalancing based on risk perception, which is pieceg quickly, it is a of technology, but people need to be behind it. They build it and answer questions about it. Customers want to know, they do the right thing . Did i do the right thing . Is ones and oey h. S s. Does bitcoin have a future in bank of americas existence . We have to figure out ways we can verify complex transactions. When you talk about digital moving money, half of the money being moved today is moved digitally. To anonymous currency, that is a different question. That is a policy question of whether we want an anonymous currency out there. That is when you start to see do you think we do . I dont think we want it. I think that is a lesson for a lot of economies. They take their denominations down to be able to track it, find the money. It helps you find all kinds of interesting things, and that is important for bolo important for law enforcement. You are seeing great debates. The idea of digitizing money is not new. The question is, what is exciting is when you can walk around and go on these little shops and tap your phone as opposed to carry dollars. Those are exciting things. Have you and i exchange money, that is exciting. , he end of the day if i can take that down, that is a valuable thing to us. We could pay to reprint the money rather than cycle in and out, because it was cheaper. Emily that was brian moynihan. Disney in 21st century foxx lost their bid to keep sensitive business documents out of the antitrust case that pits at t against the u. S. Justice department. Disney saw to shield information relating to agreements with. Aytv companies to distribute this week, elon musk gave his phone number to his twitter followers in what looks to be a message intended for the cofounder of oculus. The ceo quickly deleted the post. In the meantime, tesla got big news this week. United Parcel Service has placed a reservation for 125 semitrucks. That is the biggest preorder yet. The new trusts will join upss existing alternative fuel fleet. The new truck will join upss existing alternative fuel fleet. Up, revamping its ipo in order