Global news 24 hours a day, powered by more than 2700 journalists and analysts in over 120 countries. Im a alisa parenti. This is bloomberg and bloomberg technology, with emily chang is next. Emily im emily chang. And this is bloomberg technology. Coming up, more fallout spreading through technology here in microsoft says it has a fix, but it may impact performance. Last, more highlights from our coverage on the ground. You will hear from carlos ghosn, ceo of Renault Nissan and sony a satellite launch from spacex, the satellite goes missing. First to our lead. The continued followup fallout concerning the micro sit microsoft chip flaw, may. Ignificantly slowdown servers suggested slowdowns could be more substantial than indicated. Also temporarily areended updates that freezing or not booting up as a result of the fix. Intel ceo tried to assure people that there data would be safe. Security is job number one for intel and our industry. The primary discussions have our customers data safe. As of now, you have not received any information that these exploit have been used to obtain customer data. Ian king. Ning us now, some like microsoft and intel are at odds. It started off with everythings going to be fine, nothing to see here. Word that are getting maybe things are a little bit worse and microsoft saying actually we are finding some problems and certain circumstances. This industrywide effort to put a brave face on it and say it was no problem, appears to be fragmenting. Emily what is microsoft saying . Ian that in certain circumstances in servers, the slowdowns as a result of remedies are worse than previously thought. Emily talk about what exactly this means, because if the fix doesnt work, then what . Ian its a choice. You fix it and you are safe, but your computer doesnt work like it should, or you dont fix it and your vulnerable. You buy more service to make up for performance, do you struggle with a corporate system that doesnt work as well . There are all of these ugly alternatives. Emily we have an update from arm saying 5 of their chips are affected, not 100 . This is important because Arm Technology is in every smartphone. They are coming out and saying since 1991, chips using our technology out there, only about 5 are vulnerable to only one of these exploits. Emily we now have news of senators urging sec to encourage Brian Krzanich share sell, he is now down to the minimum of his holding. You expect more to happen . Discussed, intel says this is a regular program, this is the way the company does this, however, this problem was known to intel before this ban was put in place. People are saying look, this may be a regular plan that they always use to insure themselves against this kind of accusation, maybe that doesnt stand up in this place and thats what these two senators are saying putting pressure on the sec to go have a look. Emily we also have out of simple appliances saying they dont expose vulnerabilities to intel . , what does this mean . Ian again, adding to a list of companies that say no real problem here. Google says we have passed everything, everything is ok, there is no slowdown. We are really getting conflicting information and what we have to find out, we are working on, what is the truth apparent, a lot of people dont actually know yet. Emily what are you waiting for . Ian we really need to see all of the patches deployed, to see what kind of impact it is going to have. We will see intel earnings later this month and maybe people dont buy their chips, maybe people need more chips. Emily should you download the patch or not . Ian if you are an average pc user, you got nothing to worry about, down at the patch, you will be safer. All right. Thank you so much. We are going to continue to follow this story tomorrow. Ceoill be speaking with arm blacklock p. M. Eastern time. Another story we are keeping an eye on, Technology Working closely with Morgan Stanley to identify Strategic PoliciesGoing Forward including a potential sale. Bloomberg scott to vote joins us live from toronto. There is some pressure on occupied to explores chief tick alternatives, what does it mean . It means theyre going to buyers reach out to some to determine whether there is value in a sale. Emily talk about the position that akamai is in right now. Unusual company and that it has been a takeover target for several years, now, because over the last 20 years it has build out its network of servers across the globe. I think they are in 130 different countries. It would be there difficult for any company to mimic that kind of network and because of that they are coveted. As a potential there will be several big competitors competing for the asset. Emily who might those be . Head, off the top of my obviously microsoft, oracle, google, potentially at t and verizon. Emily as we were discussing with ian king, all of these services impacted by this chip flaw do think that will impact the potential deal . Scott no. I think the real value is the real estate they have. As i said, the locations of their servers are going to be its going to be very difficult to mimic, because these are at places like universities, what have you. It would be very difficult for any company to build a network like this. Obviously, there is an issue today, but in a few months this will have no impact whatsoever. Emily all right. Thanks so much for that update. Enter Capital Funding in the u. S. Has hit its highest level since the. Com era, to the tune of 8000 Companies Last year. This is according to pitch book. China has entered the top five in u. S. Patents for the first time ever. Investors received 11,241 u. S. 2016. S, an increase over china ranks behind the u. S. , japan, korea, and germany overall. Coming up, conversations him carlos ghosn ceo of Renault Nissan joins us to talk about the future of automotive engineering. Ceo to ask ifsony a plan to sell tv studios. The strategy is to shore up our Motion Picture business and make sure any of the deals we make during the future that not in a situation where we have to give up control of the access we have grown over the years. Emily apple is facing a french criminal probe over whether the company has deliberately slowed iphones. A preliminary investigation began against the Company Last Week but programmed obsolescence an apologynitialed and is replacing batteries at a discount. Art coveragew to where the future of the Automotive Industry has been a huge focus. No renault, carlos ghosn joins us to talk about the fund. Carlos we have so much to do about thext six years transformation of the car and i dont think we can do it alone. I think we need a lot of innovation and creativity coming supportrtups are also coming from partners and we think the way we are organized today is not sufficient. Thats why we came with an Additional Organization with it corporate Venture Capital with investors up to 200 million a year for the next plan adding up toard one billion in order support efforts transforming the car into electric autonomous, and connected products. Investing hit the highest com bone,e the dot how much competition is there to develop in the ointment kind of technology you are trying to develop . Carlos there is a lot out there. I can see it. I am receiving a lot of people, hearing a lot of ideas. We have to be very careful, because there are a lot of very interesting ideas, but how many are going to survive, how many are going to be really implemented, executed at this will prices consumers are willing to pay, that is where the challenge is. When we are talking about 1 billion over the midterm land, lions willet the the be investing billion billion billion, puts it in context. Emily will you be reading peoples brains and using that to help them drive their cars . Is an illustration about the fact that this is not only about autonomous driving, which means the driver drives never he wants, he can but the car drive for him whenever he wants, but also the car is going to have the driver be the second driver, that is what we call an enhanced driving. On top of the autonomous drive, what we call the enhanced driving experience, the car will help the driver be a better driver, much safer, and optimize the experience. Emily when do you think we will have fully Autonomous Cars in the road and how will people use them . Emily carlos i think the next four years, im talking about massmarketing, not prototypes ready for use. It may take three to four years before the the regulation allows this to be mass marketed before we make sure that the system is totally robust in any conditions. I would say 20212022. Emily how do you see u. S. Tax reform impacting auto demand . Do think there will be a shift towards the luxury segment . I think this obviously supports activity, spending, insumption, which means that think its one to be good for the Auto Industry in general and in fact, particularly that they support and incentives for zero emission cars have been maintained, its also good news for development of electric cars. Emily what are you hearing out of nafta negotiations . Think there can be a deal that will raise the price of cars significantly . Very difficult to predict. I think in this field we have to be prudent, watch carefully what is going on, try as much as possible, give the different policymakers data and in order for them to make the best decisions for their own company, the united states, mexico, thats what carmakers can do, just make sure that the revision of the policy is in the best interest of the industry. Emily President Trump has announced he will be attending davos. Theu think of this president attending this event preaching America First . Carlos i think it will be extremely interesting. I think tebows is a place where many people meet to discuss important subjects that matter for countries and that matter for people. People participate, particularly people with high power level, the more interesting it is and the more it gives meaning to davos. I welcome the opportunity. Ends in june,rm there are reports you will stay on as chairman. What can you tell us about the succession plan, what can a person might replace you and what your plans are . Are get dont think we there, but everything will be announced in time. And we there will be a lot of continuity when it comes to driving the companies together. Emily last question, nissan narratives gap with conduct a 50,000 cars, can you catch them in 2018 . Think we are more in a longterm strategy where it focuses to bring the best car possible on the market and that the market decides who deserves what. I think the alliance between the three Car Manufacturers is at the top level of the industry. We are going to have ups and downs like everybody else, but we have a strategy that is an offensive strategy and a growth strategy. Emily that was my conversation earlier with carlos ghosn. Is not off tocex a hot start in 2018. How a missing satellite could impact future launches for the company, next. This is bloomberg. Emily now, a story that is out of this world here at a japanese astronaut living on the International Space station says he has grown 3. 5 inches since arriving there. The growth spurt is causing concerns that he may not it in the seat of his vehicle that is supposed to bring him home in june. We should say it is normal for astronauts to grow allowing the vertebrae in their spine to spread apart. The satellite that spacex launched is missing. The rocket attached to the satellite may have never made it into orbit. Deniedsks company fault, saying it did everything right. This could hurt contracts for launches in the future. Joining us now is max chafkin, what went wrong here . Max we dont know exactly. Its a spy satellite. Details have been sketchy. What we think happened is that the satellite theyll to reach orbit. Failed to reach orbit. There may have been some problem with the way it the attached appeared spacex came out this morning with a strong statement saying their rocket, the falcon 9, performed perfectly. So, that suggests that maybe there was some sort of malfunction with the little device that is basically used to attach the rocket to the satellite. But again, it is sketchy and unclear, because it is classified. In the government we should be a aware of the satellite is up there and this is a smokescreen, but the important thing here is that spacex is basically saying we are going full speed ahead. And that comes in contrast with how they responded to previous accidents when their rockets have exploded on the launch pad or broken up on liftoff. They have often been ready upfront. Elon musk has made statements, apologized, and so far all we have heard is them saying we have done everything right, full speed ahead. You should talk to the government if you have questions about the satellite. Emily the satellite was by , the customeran was the united states, what do we believe it was intended to do . Max im not sure on the details. Im not sure anybody is. As i understand it is a spy satellite. This has been a line of business that tesla has and trying to get into. If they found that there was a screwup on their part, that would have applications for their business, but they have been hoping to do many more launches next year and in the coming years. Obviously, u. S. Government including the intelligence agencies are big gentle customers for them as well as other aerospace companies. Hasy north are from an its a classified mission, they can, but what does this mean for spacex and their ambitious launch schedule for 2018 . Max i think what it means that as long as they dont have any additional problems as long as no more rockets a blowup this year, they will probably be able to get past this and be on track. Business, this is a where perception matters. Right now, they are trying to keep a brave face and say we did everything right. That said, if nothing else goes wrong, some other reason to doubt their capability, it could be a different ballgame. Im not sure this is going to change anything. They are planning this big launch, their next generation rocket, they are saying this is moving on schedule here at the upshot is nothing, but any kind of accident is problematic for a company like this. Emily thank you, max chafkin. Coming up, how do you build the Goldman Sachs of cryptocurrency . We will talk about that, next. This is bloomberg. Youre watching bloomberg here is a check of your trustworthiness, Diane Feinstein has released a transcript from a Senate Judiciary committee and of you. That is the firm that commissioned a dossier containing allegations about President Trumps ties to russia. This is telling that the file contains valid information and that is often had briefed the fbi on his findings. At the white house today, President Trump discussed Immigration Reform with lawmakers from both parties. The president reiterated his call for a border wall but also referenced dreamers, the thousands of young people but the u. S. As children who are now living here illegally. The president was a bipartisan compromise. The former arizona sheriff joe rpo has said that he is running for the senate. He is a republican and a close ally of President Trump, he toeted that he is seeking support President Trumps agenda in his mission to make America Great again. News, 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. Afters bloomberg just 5 30 p. M. In washington. We are joined by david a glass ingles. David it is hot day. That would take on another meeting. We are grappling with an added complication of a spike in oil prices. What that is doing to broaden expectations. Up,ars are up, yields are we might just see gains early but that being said there are also concerns that a lot of these markets might just be a little bit overextended. This is going back to 1999, if you data points, we have inflation coming through. We are watching a lot of these key currencies and it is chinese, thishe is what they call the countercyclical factor. That is a wrapup your markets over this wednesday. I am david in glass. David ingles. This is bloomberg technology, and emily chang. Says it is one of the security flaws could slow down some servers and pcs. The statement suggests the slowdown could be more substantial than they previously indicated, intel confirmed its chips were vulnerable to hacking. The chips are used in more than 90 of laptops and 88 of desktops, another story we are watching is there Strategic Alternatives and letting a potential sale. According to people familiar with the matter, they are under pressure from elliott management, they had said they would seek talks to improve shareholder value. Theyre working with Morgan Stanley as an advisory. One of because most outspoken champions plans to build the golden mist Goldman Sachs. Start a Merchant Bank dedicated to cryptocurrencies and blockchain ventures. That growther says business, he joins us in San Francisco and our other editor at large, cory johnson is in new york. They are far too large. You are too humble. What do we know about these plans . We know plenty because he has had to detail some of them. It is a complicated series of transactions, first, his firm which just created Galaxy Digital lp will buy a canadian startup called first going capital and then it will do a reverse takeover of a canadian Shell Company and then it will use that entity to raise 200 dollars in a private placement and finally, because it has that listed shall, it will start on the in toronto venture exchange, so this will be the first of its kind, a publicly traded Merchant Bank specializing in cryptocurrencies and blockchain ventu