After they cut their forecast and slashed jobs. First, to the lead. The continued fallout over the microchip security flaw affecting nearly all work devices. This week, microsoft said fixes for the vulnerabilities may significantly slow down servers and personal computers. In a post on tuesday, the company suggested they could be more substantial than intel previously indicated. Microsoft is also temporarily suspending some updates to windows operating systems that use chips that are freezing or not putting up. The intelht at ces, ceo tried to reassure people their data would be safe. The security is job number one for intel and the industry. Primary focus of our decisions and discussions have been to keep our customers data safe. As of now, we have not received any information that these exploits have been used to obtain customer data. Emily we broke it down with ian king, who covers the chip industry. With, intel was very much, we are all in this together, everything will be fine, nothing to see here, move along. Now we just heard from Brian Krzanich admitting that maybe things are a little worse than we said. That microsoft came out and said, we are finding problems. So really, this industrywide effort to put a brave face on it and say the problem appears to be fragmenting. Emily what is like results saying . That in certain circumstances, it appears as though the slowdowns as a result of these remedies are being put in place are worse than had been previously thought. Emily so talk about what exactly this means. If the fix doesnt work, then what . Its a choice, right . You fix it and your computer doesnt work, or you dont and you are vulnerable. So you buy more servers to make up for their performance, you struggle by with the corporate system that doesnt work . There are all these ugly alternatives. Emily we also have an update from arm. They are saying 5 of their chips are affected, luckily it is not 100 . What does that mean . This is important. Arm is in every smartphone. Right . Many more chips based on Arm Technology are saying since 1991, 120 billion chips using our technology are out there, only about 5 are vulnerable to one of these potential exploits. They are saying it isnt a huge deal. Emily we have headlines crossing the terminals about senators urging the department of justice to investigate Brian Krzanichs share sale. We talked about this last week. You mentioned it was a planned share sale but he is now down to the minimum of his holding. Do you expect more to happen . As we discussed at the time, intels stands is this has been in place for a long time, this is why companies do this, knownr this problem was to intel before the plan was put in place. People are looking at this and maybe this kind of the regular excuse executives always use to ensure themselves against this accusation, may that doesnt stand up in this case. That is what has led to senators putting pressure on the fcc to have a look at it. Emily we also have a headline hey dont expose any exploitable vulnerability related to intel, either of the meltdowns. What does this mean . They are just adding to a list of companies that said, look, no problem here. Biggest among those is probably google, we have patched, everything is ok. We are getting conflicting information here, and what we have to find out, and what we are working on, what is the truth, and whats a parent is a lot of people dont know yet. We will honestly be seeing a lot of emily whats next . What are they waiting for . We need to see these patches deployed, we need to see what Material Impact it will have. It impacts how intel. Emily as a consumer, should you download the patch or not . This has been one of the consistent messages. If you are an average pc user, if you have a fairly modern system, one in the last couple years, you dont have anything to worry about. Emily that was ian king. One Company Feeling the heat from the chip flaw, arm holdings, which is at the heart of the most major local phone components. 5 of chips made using this design are to the potential hardware hack. We spoke with arm holdings ceo simon seekers in las vegas, and asked how concerned consumers should be about these issues. Issue,s a very serious but it is one the industry as a whole is taking seriously, one we are taking seriously. We are thinking about our future designs and how to mitigate against issues such as this. We are working closely with partners to make sure the software mitigation we have developed over a series of months are distributed, that people are using them, installing them correctly, that we provide the maximum safety to any user of our electronic systems. Emily how long before remedies are fully in place . Well, it is going to depend on which system, which type of device you are talking about. For some, it is relatively straightforward, but in other cases, there is a vast number of Companies Involved in the supply chain to get products to market, so it may take some time. It will be casebycase, and it is going to be up to the toividual oems, who need take on the software and getting pushed out. Take,y how long that will its hard to say, but everybody is on this. Is a huge sense of urgency. Emily android updates are pushed much more haphazardly than apple, which means some older phones might be left stranded. How much of a concern is that . You feel android is more at risk . Aboutl, one of the things those older devices is they contain less sophisticated are muchs, which i mus less susceptible to these issues were seeing here. There are a vast number of Android Devices using cpus from arm which are susceptible at all to the security issue. Its not an over characterization to say everyone is at risk. Emily when it comes to the actual hardware, is there a fundamental way for you to redo your chip architecture to avoid this . The hardware features can dictate how much risk there is, so Going Forward, for anything that is easy to work around, we are going to do that. Some of the more sophisticated features, its about the combination of hardware and software that determines if there is a risk or not. I think what you are going to see Going Forward is tighter guidelines on how to write software to use microprocessors in the safeway. In a safe way. What this episode has shown is that we are in a new world of security, and security changes over time, and the definition of what safe looks like has changed. We have had a fundamental rethink. Emily im curious how much of a wakeup call this has been for you. Has a raised any concern that the chip industry is too concentrated . Mean, in terms of a wakeup call, security is something we take very, very seriously. We always have. We have been looking at the deployments of arm processors, safety critical systems, security critical systems, for many years. We have always been looking at and thinking about how might a hacker get into a system. Trying to stay two steps ahead of how bad actors will try and exploit the system, try to learn as much as we can from the research proposal. This is another case of a security tool that has been uncovered. It is different because it is much more hardware fundamental than others in the past, and many Security Issues are down to software and the way the software is written. It is a little different. I think one thing to take away from this whole incident is the way the industry has come together and collaborated in a really positive way. The issues around competition have been put aside as Industries Work together. That is a positive thing, because there are going to be new issues in the future, and the Industry Needs to react in the same way. Emily do you think the way the industry has consolidated so much over the last several years could actually be a negative, especially when considering how widespread this flaw is . I guess theres two ways of looking at it. You can say theres a lot of consolidation, a relatively small number of points of failure. On the other hand, with the relatively small number of parties involved, it is much easier to coordinate a response. One of the reasons we are seeing it taking care of is because of because of theis diversity of the manufacturers involved. Emily that was arm holdings ceo simon segars. Apple is facing a french criminal probe on that is a company deliberately slowed battery performance on older iphones. This follows allegations from consumer groups. A preliminary investigation began last week for programs and deceit. And here in the u. S. , a member of congress is also speaking out. Johnson wrote a letter john ume wrote a letter asking about how apple is handling customer complaint. He says he was disappointed with their response. We just think they have been sufficiently transparent. There are a lot of customers and consumers who have noticed the changes in some of these apple devices and the fact that they would have these devices degraded in terms of capability without them knowing why i think is what youre trying to get. Emily more news for apple, an activist investor is purging apple to create ways for parents to restrict childrens access to their mobile phone. They want the company to study the effects of major usage of mental health. Based field of mesmerizing qualities of the iphone could fuel a Public Health crisis. Joins up, Carlos Ghosns us next to talk about the future of automotives, from ridesharing to electric cars. And if you like bloomberg news, check us out on the radio. You can listen to us on the Bloomberg Radio app, bloomberg. Com, and on sirius xm. This is bloomberg. Emily more news out of the Consumer Electronics show in las vegas this week. Amazons Alexa Service will be available in certain toy you and lexus cars sometime this year. The voiceactivated Virtual Assistant will let drivers and passengers get directions, control entertainment, and other functions in the car via voice command. Mitsubishi announced a new Venture Capital fund with plans to invest 1 billion over the next five years. The chairman and ceo joined us from the event in las vegas to talk about the find. Take a listen. You know, we have so many things to do for the next six years, which is about the transformation of the car. And i dont think we can do it alone. I think we will need a lot of innovation and creativity coming and we think the way we are organized today is not sufficient. That is why we came with a new organization, which is a horporate Venture Capital w will invest up to 200 million per year, which adds up to more than 1 billion, in order to support our efforts, transforming the car into electric, autonomous, and connected. Emily investing just hit the highest level since thedo dot com boom. How much competition is there to develop and deploy the kind of technology that you were trying to develop . Oh, theres a lot of technology out there. I am receiving a lot of people, hearing a lot of ideas. We have to be very careful, because it means that there are a lot of interesting ideas, but how many of them are going to survive, be able to be implemented, executed, at a reasonable price consumers are willing to pay . That is where the challenge is. We are talking about 1 billion over the midterm, and lets not forget that the alliance has been investing 50 billion. 1 billion over 50 billion is about 2 of our export. Emily so will you really be reading peoples brains, using that to help them drive their cars . Anwell, this is, i think, illustration that this is not only about autonomous driving, which means that the driver can drive whenever he wants, but also the car will have the driver be effective. Enhanced driving. What we want is on top of the autonomous driving and what we call enhanced driving experience, the car has the driver be a better driver, be much safer, and optimize the experience. Think what do you when do you think we will have fully Autonomous Cars on the road, and when will people use them . I think it is going to be down the road, within the next four years. Are we talking about massmarketing . Im not talking about ready to use, but we already have products working very well. It may take three to four years before the regulations allowing to be massmarketed, before we make sure the system is totally robust in any condition. I would say 2021, 2022. Emily wow, that soon. How do you see u. S. Tax reform impacting auto demand . Do you think there will be a shift toward the luxury segment . Is should support activity and spending and consumption, which means that i think this is going to be good for the Auto Industry in general. Support and incentives for zero emissions cars have been maintained. It is also very good news for electric cars. I think it is very positive as a business person. Emily what are you hearing out of nafta negotiations . Do you think there could be a deal that wont raise the price of cars significantly . You know, it is very difficult to predict. Field, we have to be prudent, watch carefully whats going on, try as much as possible to give the different policy makers data and facts in order to make the best decision for their own company, from the United States and mexico. That is what carmakers can do, make sure the revision of the policy is in the best interest. Week onceiness wrote a story that if president has announced he will be attending davos. What do you think the president think of the president attending this global event preaching America First . I think it is going to be extremely interesting. Davos is the place where many people meet to discuss important subjects that matter for countries, that matter for people. The more people participate, particularly people with high power levels, the more interesting it is, and the more it gives meaning to davos. I welcome this opportunity. Emily carlos ghosn. Still had, sony has had some big moment at the box office this year thanks to smashes like spiderman and jumanji. But the ceo says they arent stopping there. He joins us later this hour. This is bloomberg. Emily china has entered the top five in u. S. Patents for the first time ever. Chinese inventors received 11,241 u. S. Patents last year, a 28 increase over the same period in 2016, according to a report by ifi claims patent service. China ranks behind the u. S. , japan, korea, and germany overall. And gopros challenges are coming to a head. The company missed fourthquarter sales guidance, signaling that revamped cameras and price increases are sparking revenue growth. Shares tumbled on the news, leading to its worst performance in a year. At an a is the likely next up for the camera maker, but the ceo spoke to bloombergs selina wang and tonight reports they have higher jpmorgan for a potential sale. Take a listen. Jpmorgan is, in fact, our banker, but we have not engaged them to help us sell the company. Said, if there were an opportunity for gopro to partner up with a Larger Organization that could help us scale, the companys scale or brand reach, that is something we would consider, but it is not something we are actively engaged in at the moment. Do you think you will want to actively engage in this . Is there some catalyst you see coming . Have any potential suitors reached out . Well, i will answer the question what we engage in Something Like this . This is something we explore from time to time, as it is our job to grow the business in the most strategic way possible, and that is definitely one way to do it. So it is not a new topic at gopro, but i cant share any more information than that. Can you talk a little bit about organizations that you would love to work with, if theoretically something did work at in terms of a sailor partnership . I can think of any number of Consumer Electronics company that gopro could fit well into. How are you thinking about it . Well, i am not going to go into too much detail, but i would say that being a company that is enabling people to capture and share themselves and exciting ways, gopro is a very social company, and we have one of the strongest brands in the world that is very well regarded for our ability to help people capture and share their active lifestyles. We are primarily focused on spreading our brand and spreading our hardware and Software Solutions to reach as many consumers as possible. To us, scale is very important. Shifting gears to todays announcement, it seems like gopro is steadily continuing to narrow its vision. The entertainment unit shutdown, now the drum businesses closing. How should we understand the product roadmap, and diversification of gopro . I think what you are seeing from us is that we are listening to our customers more and more. Developmentting in of products and solutions that our customers want from us. Whereas in the past, im even on record as having said in the past that one of the things that makes gopro strong is that we are our customer, and in the past we developed products we really wanted, and that seemed to resonate well with the market. We realize now that we are in the business to build products for our customers, and we need to identify what they want and go and inventor them. And that can be difficult, because yo as you are inventing new solutions, because cymer doesnt know what they want. But it is our job to read the data, understand the trends, and bill for our customers. Our customers love t the entertainment that we produce today, but they didnt need us to become a hole blown entertainment business. Our customers have told us they really love buying our cameras from us, and a passionate number of them wanted to buy drugs, the majority wanted to buy gopros that connect to a great app, and that is what we are investing in moving forward. To have been several rounds of layoffs over the past year, and with this most recent reduction, there are still 1000 employees. Should we expect to see further reductions to reach that target level of operating expenses . No. The reductions, which involve headcount reduction, get ousted the necessary sub 400 million gopro tot will allow be profitable in the second half of 2018, and we are seeing good starts for the products. As long as sales trends continues as forecasted, we feel like we will be in good shape. Emily that was gopro ceo nick woodman, speaking with selina wang. Coming up, as a longtime netflix e