Because the old site had been sold to cheaply. Global news, 24 hours a day, powered by more than 2,700 journalists and analysts in more than 120 countries. I am alisa parenti, this is bloomberg, and Bloomberg Technology is next. Emily i am emily chang, and this is Bloomberg Technology. President trump is closing in on his first year of office, and will look back about administration has impacted Silicon Valley. As the iphone x was one of the most anticipated devices ever, and one can a analyst has cut his predictions. On aetflix stock has been terror, trading sky high for its fourthquarter earnings ons. We will discussed what is next. But first to our lead. Trying to avoid a Government Shutdown. Chuck schumer telling reporters that he had a long and detailed meeting with the president , and a good number of disagreement still exist between the two sides. For more lets get to national poco reporter on capitol hill, what is the latest . The latest is that everything is still up in the air, and we are still seven hours away from a Government Shutdown. It will be the first since october of 2013 and will come after the oneyear anniversary of President Trumps tenure in office before his state of the union. Lasted 60hutdown days, so there is a scenario that delights will be out while the president gives the state of the union. Conversations continue between President Trump and republicans. We have confirmed that he recently spoke to speak orion speaker ryan. Havent announced a vote they dont have the votes to get that done, so many things up in the air right now and the clock is ticking. Are the chances this happens in seven hours, or can be by a few more days . Hard to know, but there are many senators who are nervous about a shutdown and are proposing alternatives suggest a can to make resolution over several days. Somewhat to work through the weekend and soft issues on spending caps and on the pentagon side, which has been a major holdup. Point is theiding issue of the dreamers, the undocumented people by here illegally as children. Democrats are demanding that the deadline be used as leverage to force republicans to come to the table to force a solution. Dont believe republicans are going to get serious on that issue unless they are forced to. There are facing a lot of pressure from their base. Question, ifre this happens, how does it impact midterm elections . The 2013 shutdown hurt republicans because they were the instigators. This is the first time if a shutdown happens that a single party would oversee a Government Shutdown on their watch, so it would be a historic first and republicans will take the blame. The last time republicans took the blame, the odds of that, i dont know. Emily becky so much for that update. Thank you so much for that update. Atare taking a first look President Trumps first year in office and how it has impacted technology. Joining me now on this retrospective is bloomberg tech and David Fitzpatrick. My guest post for the hour. David, i will start with you. We had meetings with president whatith tax reform is the day take away the big takeaway . He hasnt intersected with text nearly enough. If you look at a leader like manyn or theresa may, so leaders china, russia, these countries recognized technology is a competitive differentiator that is going to allow their economies to do better than different countries. Trump has barely mentioned it. For me, while there have been some good things, far more neutral or negative things about the Trump Administration iproach to pack to tech, that it has ad disappeared from the white house rhetoric. Emily some tech executives met with trump multiple times and expressed concern that many of these councils and meetings dont amount to much, if anything. Take a listen to what tim cook told me back in june. I dont find these councils and committees to be terribly productive. It wasnt about not wanting to advise on something where i or we had could help, a point of view that should be heard. I thinkthe latter it is in the best interest of america to do it, and i am first and foremost an american. Have these councils not been able to do much Silicon Valley . No. There has been a variety of councils, and you have seen a number disband after the way the president responded to charlottesville. One aimed at reforming the government some have ubersed, ubers debt then ceo quit. Is no longer happening, and one is focused on reforming government and upgrading the technology, vucevic everyone would agree needs to happen. We havent heard anything more about it. The Technology Industry and trump i would say it is a lot of love and hate. Where the hate on government stands on Net Neutrality. And love when it comes to tax reform the one big thing that the Trump Administration has accomplished this year. Whether he wanted to or not, it is going to have a big benefit for the Technology Industry, in so far as many reducing the tax rate on all of those billions of dollars that are overseas right now. Emily there was a brief mention of peter thiel and his relationship with President Trump suggesting that the president didnt much prioritize his relationship with peter. You see that relationship has amounted for anything for Silicon Valley . David not really. Was in like peter thiel trying to bring that one key tech executives but nothing came out of that. Have Tech Companies tremendously benefited from the tax bill, it wasnt directed at helping them at all. It was peripheral. It is funny that you have that clip from tim cook, and apple has done this announcement that theyre bringing money back. They give absolutely no credit in all of their discussion to the administration or the tax bill, as far as i saw. That has two great on the president. A tweet fromhave the president saying that he promises companies will bring money back to the u. S. A huge win for American Workers and the usa. Is the only significant think this administration has accomplished so far, at all. He is quick to take credit for anything these companies do, any lip service they pay competing jobs home and manufacturing here. To his credit, apple made a commitment to the number of jobs they want to create and the ways they want to invest in r d, and ways they want to bring that money back. I think r d centers is creating jobs in america, and a lot of ap companies we talked to lot of that is going to go towards dividends, buybacks, maybe towards compensation. Result innot going to money trickling down to the average worker. It is middle class going to line up the pockets of wealthy investors. M interested to hear what these do when theyn to bring the money back. Emily Silicon Valley will be balloting with Net Neutrality and immigration. Based on u. S. Census data, nearly 70 of people in Silicon Valley are from outside of the united states, but they are increasing scrutiny of tech workers what is happening here . This is the administration that ran on a platform that is less than friendly and hostile to immigrants. This is a constituency to has become the backbone of Silicon Valley of the Technology Industry. Senior leadership are oftentimes foreignborn. A lot of engineers want leniency they dont want to see daca go away. This is the industry that has opposed that immigration stance that this administration has taken, and you will continue to see them oppose any crackdowns on immigration. Emily tom, thank you. David fitzpatrick, you are sticking with me. Coming up, we will catch up with the new ceo of cocacola and how they are technology to usher in a new era. Chicks out on twitter on weekdays. This is bloomberg. Emily we saw square jump on fridays trading session. Of 64, a street high reiterating its by on the stock and expecting more growth in payment volumes, and compared the company to amazon and its early days. All the cocacola was founded well over 100 years ago, technology plays a crucial role in the business giant. Technology to hold its place on top of the beverage market. We talked about the evolution of technology at the company. That placesy think like shanghai and some parts of western europe are all cutting edge, along with some bits of the u. S. Respects ity is advanced in places like shanghai and western europe as well. Is penetration of ecommerce even higher in some of those places that even the u. S. When you want to learn what is going on, i would be just as tempted to tell you to go to shanghai than to stay in new york. How do you market . You dont have that when you are on your app. No, but you have to get it. To china for example, a lot of the apps in the mobile Payment Systems came in, we werent on the menu. Even worse, were trying to return a glass bottle to the restaurant, and there wasnt a delivery system. That advance very quickly to be present on the apps, so what is the virtual representation of what you normally see in the store and how do we change the packaging portfolio so we could be part of the delivery system. Yet places in shanghai where all food orders is 50 of restaurant sales. Relationship with the consumer. Talk about cocacola, how does Technology Change how youre doing business . It is changing and a lot of profound ways. In simple terms, you go back 20 years, we are one of the few to invest in expensive i. T. Systems and do our own stuff, our own programs. We have to move to the cloud, we have to move to standard programs that the whole industry uses, and refuse mobile. The one thing i tell the i. T. Department is to put it on the phone, lets move everything to the mobile phone. Knows how to use apps on phones, so it is profoundly changing the way we work, and it is going to continue to flow through the organization. We have a program of digitizing the company. Does that translate to a fewer employees . People are having to adapt to doing things in a different way. We have actually make a lot of changes in our i. T. Departments to move to different skill sets, so it is changing the nature of employment and the source of profiles you want. Whether we buy the services ourselves towards do it ourselves, it makes a difference as to where the employees are. But more employment is being generated in the economy. When you are trying to recruit young computer scientists . State of georgia has been ranked top one or two places to do business in the u. S. For many years in a row. The local political system has been a great job. It is a competitive economy there, and we do great in atlanta. They have done a lot to invest in Tech Startups and the media industry, and it has been successful. That was the ceo of cocacola speaking with david westin. Coming up, amazon is making a price change for prime members. This is bloomberg. Emily facebook will not bid for the National Football leagues package next season. This according to a person familiar with the matter. Hammond said if they will make future bids on and of all content they havent said still make future bids. Spin you have amazon, they will remain in the spotlight over prime prices, saying they will raise the prices by 18 starting on friday. New members will pay 12 in and 12. Se a month 99. 99 soundsf like a bargain compared to 13 a month. What do you think is the motivation for this change . David i have opinions whether this is the right thing to do or not, but i think the motivation is that they were making money the way they were doing it before. What has been happening is that people who pay monthtomonth were signing up when they had a bunch of things to order, and a turning it off again later. Or else, just not ordering enough stuff to justify what is generally expected by all analyst to be the loss leading shipping subsidy that prime represents. If you are not ordering enough stuff for order to much stuff and not paying on an ongoing i could see white crime would be a good transaction for customers of amazon. Emily so what is europe union on whether or not it is a good call . David it reminds me of payday loans. Not have to spend 156 a year for the same thing that seems fundamentally wrong. Amazonsnly is within prerogative to make a change like this, but in effect are saying that people have less money should pay more, and i do like the feeling of that at all. Emily they have also started stiff competition for amazon hq 2. I cant help but laugh because this is the most amazing pr in history. In my humble opinion. They have 20 cities doing everything they can to make their cities as attractive for a company like amazon. David i have a feeling that amazon didnt even think when they initially announced that they were going to build a Second Headquarters that it would turn into such an incredible boon for them, that every city in the country would be competing to be there subsidizer. There are getting a bonanza of free publicity in every one of these cities. It is a new story as well as a national story. Biking they get a new story and 20 cities, the guaranty and the 20 largest cities in the country, gary going to get all kinds of think. Whoever is managing it should get a big metal all reward from jeff bezos. Is leading inpany any which way, and it really is up to jeff bezos himself it reminds me of the race to host the olympics, which often has not turned out so well with the cities where the olympics and up. And ia huge expense, wonder how good it will be for the city that wins hq2. Cities that significantly subsidized sports stadiums almost never get a financial return and Economic Growth to justify the investment they have made. The winner of this derby will be the city that throws the must money most money at amazon. The likelihood that city is going to benefit economically at a macro level is very questionable. On the other hand, the publicity benefits will be huge, because the publicity of this has gone out of control as we have discussed. , or new york,ago i would throw tons of money on this. Emily it makes a great story for us journalists. The apple iphone x brought into question. Production of the 1000 device could and sooner than you think. Check us out on the radio and the Bloomberg Radio app, or on sirius xm. This is bloomberg. Youre watching Bloomberg Technology. Here is a check of first world news. Easing regulations on u. S. Banks. In a speech today, he signaled that he is embracing a mission to review and revise many of the rules the fed and acted in response to the 2008 financial crisis. Overly complexom relation does not advance the goal. Am advocating a certification i am not advocating an intervention of the capital regime. Mostd what be the important agenda there trying to rewrite big Bank Leverage limits. The central bank is looking to reduce capital demands on some wall street firms. S Supreme Court spokeswoman will try new jersey senator robert menendez. The first trial failed to deliver a verdict. Or a florida eye doctor who bought the centers influence with vacations and campaign contributions. A spokeswoman says that so the meyers doing fine soda. Mayor who has type 1 diabetes was able to go to work. Terrorism is no wonder the threat to u. S. National security. General mattis said that security must strengthen as competition from world powers improves. Threats itwing is different as china and russia are from each other. Nations that seek to create a world consistent with authoritarian models, pursuing authority over other nations economic, diplomatic, and security decisions. A Defense Department strategy report released today echoed the remarks from secretary mattis, calling for increased and sustained investment in the military. In estoril you, i drawn was sent out to sea to drop a flotation device for two teenagers caught in a riptide. Officials described it as the first rescue of its kind. The teens were a mile and a half away from lifeguards. The drones were equipped with a camera and rescue gear. The drones reached the swimmers within 70 seconds. Global news, 24 hours a day, powered by more than 2,700 journalists and analysts in more than 120 countries. I am alisa parenti, and this is bloomberg. This is Bloomberg Technology. A closely watched apple analyst 20 of iphone 10 shipments. At the will move six two 2 million of its most expensive smartphones there gets lifetime. That is down from 80 million. But thes in china alarming call is that he expects production to stop at sometime this year as apple rolls out your versions. Joining us now from new york is David Fitzpatrick mark, how serious is this . Weres is their q1 going to see higher average selling prices for the iphones, which would indicate that iphone x demands and supplies is strong for the quarter. Emily is 80 million a high number for a device of this nature . Or is that standard . You look at a quarter by quarter basis, yes, it is a high number. For the fiscal year, that is a bit low. But apple is selling three different models, and what were looking for is a total number of profits. Venues, if apple sells one iphone x, which is not the case but if they sell a billion other iphones. Now,nt know the mix right there is also its of speculation and analytics on the web and reports. But we do know is that apple projections for the revenues for the First Quarter are at over 80 billion for the first time. Apples projections are lower than what is actually going to happen, so apple is usually dead on in beating the estimates. The iphone is about two thirds of the company sells, so i revenues means more iphone sold, so i think i would have a good quarter. Emily would you make of that china part of the story . Apple has struggled there when it comes to growth. Have return to growth recently come up does tha