Sarah Huckabee Sanders says more details on President Trumps proposed border wall will be provided monday. The president warned earlier that, if there is no wall, there wont be a deal on protecting undocumented immigrants brought into the u. S. As minors from deportation. After nearly a week of victim impact statements, a michigan judge imposed a 175year sentence on larry nassar, that is the sports doctor who sexually assaulted young gymnasts. Nassar worked at usa gymnastics, which trains olympians. Global news, 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. Im alisa parenti. This is bloomberg. Is and Bloomberg Technology is next. Emily im emily chang. Emily im emily chang. And this is Bloomberg Technology. Coming up, qualcomm slapped with a message line from european chipmakers european lawmakers. Plus, more highlights from the World Economic forum in davos, including our conversations with bill gates and the ceos of Morgan Stanley and the nasdaq. Intel gets ready to report its fourthquarter earnings. The companys first since the specter and meltdown chip flaws were revealed. We will take a closer look at the impact to its bottom line. First, european regulators have slapped qualcomm with a 1. 2 billion fine for anticompetitive practices. From 2011 to 2016, qualcomm paid apple to exclusively use its chips in their products. Speaking at a press conference yesterday, saying qualcomm pushed out rivals as a result. Our decision found that qualcomm cemented its decision by illegally shutting out rivals from the market for over five years time. Emily qualcomm plans to appeal this decision. The company said, we have a strong case for judicial review, and we will immediately commence that process. For more, lets bring in editor at large cory johnson. Expand on what the European Commission is saying qualcomm did. Cory the European Commission is suggesting that your iphone stinks, that it could have been better, and that qualcomm illegally used its market power to pay off apple. We will give you these chips at a rebate if you dont let intel in the door. Emily why would apple do that . Cory the argument here is that intel, by not having a shot, couldnt have developed a better chip. Im sure the people at apple wanted to go with the best chip they could at a better price. Qualcomm paying so many rebates and discounts, basically paying apple off, not only kept intel ps out of apple funds because of the dominance of these phones, so many apple phones with one kind of qualcomm chip in it means that two things happen. It lets qualcomm lower the price of production. Apple phones being monolithic in the way they are presented. Lowering that shifts to other phone makers, keeping intel out of the mobile phone business, which has been a running theme for what weve said about intel for the next seven years. Emily they say there will be no repercussions for apple. Why not . Cory fundamentally what apple is getting his a lower price. They have decided not to punish apple for being in collusion with this. The notion that apple was getting what it wanted, lower prices, not colluding with qualcomm but being the beneficiary of its plans. Emily is this something that they could face a penalty for in the United States . Cory the eu has taken a much stronger stance in regard to anticompetitive prosecutions. Sure some in the Justice Department would disagree. Weve seen cases, particularly against google and now qualcomm, where the eu has taken a much stronger stance than the u. S. Has, for a variety of reasons. Weve seen the eu willing to take on these companies with the notion that competition ought to be better than it is. Emily qualcomm plans to appeal. How likely is it that would be successful . Cory who knows . Department woul. Qualcomm is fundamentally built on the basis of lawyers, more than any other big semiconductor. Qualcomm is a company that is fundamentally built on creating technology, licensing that technology, and using lawyers to make sure they extract payment for those technologies. They are used to indeed they are designed for a need for speed in the courtroom. Emily what makes this even more fascinating is that qualcomm and apple have recently been at each others throats. How does that play into this . Cory there is that dynamic, where apple wants to continue to get lower prices. Apple wants to continue to fight for the lowest price they can get from any competitor or any supplier. They have beat them all up. They will beat up the biggest. Thats where the battle is being waged. Also qualcomm is in its own existential battle, trying to fight a hostile takeover by broadcom. What is interesting here is that broadcom. Qualcomm attracts these massive fines. Big problems in pursuing their license agreements in china. Qualcomm not paying. That has been an ongoing issue for them in china, the most important market for them in terms of where phones are made. It might suggest qualcomms behavior they are so big keeping them separate from broadcom, they might make that argument with regulators that they need to be separate, even isugh their behavior reprehensible. Emily broadcom is trying to buy qualcomm. What does this show for that bid . Cory it shows you the size of this business. The real question is, are they going to have to pay it . Is it going to imperil their business Going Forward . The lower the stock goes, the easier it is for broadcom to take over this company. Whether customers will stand for it is a whole different thing. S reprehensible. The eu seems to be saying, we want more competition. A merged qualcommbroadcom is not more competition. In a strange way, what the eu is thatng in their cards is they may not be for that big merger. Emily cory johnson, thank you. In the latest revolving door, meg whitman, stepping down at hpe february 1, joining the new mobile Media Business founded by former Animation Studio chief jeffrey katzenberg. At new tv in march. The company will be based in l. A. And aims to bring hollywood quality storytelling to videos that last 10 minutes or less. Lookout for new features this spring when apple rolls out a Software Update. What you can expect, next. Bloomberg tech is livestreaming on twitter. 2 00 p. M. In new york. This is bloomberg. Emily apple plans to release a Software Update for the iphone in the spring. Animated emojis will be added to the devices, plus a few other features that have been in the works. Mark gurman has all the details. What features are you anticipating the most . Mark the feature i am newcipating the most this option to disable the battery throttling feature. Remember the controversy we were talking about . Apple released a Software Update last year that intentionally slowed down older iphones in order to have them not reboot, because batteries, as they age this adds longevity to batteries. Emily a. K. A. , batterygate. Mark whatever you want to call it. Basically you will now be able to turn that feature off. Emily that means you will what . Mark if you have an older iphone and you dont want it to slow down anymore, you can turn it off. But apple will say youre putting yourself at risk. You might miss a phone call, this or that. But apple will say yourei thint affect most people in practice, but we will see in a few months what people say about it. Emily there are some new health features. Tell us about those. Mark it allows you to access your Hospital Health records on your phone. Before, you could get your Health Information from the apple watch, from the sensors in the iphone already, and thirdparty devices that integrate with things like fitbit. Now you will be able to get information from your hospital, lab results, doctors notes, whatnot, through the health app. They signed up with they signed up with 12 hospitals. There are a few big names across california, new york, pennsylvania. Im sure they will add more hospitals as time goes on. Emily talked to was about how difficult how difficult is it to get these hospitals on board . They need the cooperation of the medical community, which has been slow to take on new technology. Mark there is across some hospital networks, a uniform way to access data. If you have a doctor in california who has the same server, the same system as a doctor in, say, ohio, you can go to an ohios Doctor Office and get all your information, but the key is dealing with all of those different networks. Obviously apple is not going to put a Software Update out to 1 billion people that could impede on privacy. I think they are taking pains to make sure that wasnt affected. Emily new features for augmented reality, correct . Mark they have a. R. Kit 1. 5. Basically it allows you to project images on a wall or a d ay. Say, i have an animated version of you and i want to project it on my door. For some reason, i could do that now. [laughter] emily and homepod, which was delayed, is now coming out next month. Mark about a month and a half delay, give or take. Out insupposed to come december. Emily not huge, but they did miss the holiday season. Mark they did miss the holiday season. Tim cook told you we would be able to judge it for ourselves t in a few weeks. Emily what do you make of the fact that this was delayed . Mark its unfortunate. This is the second year in a row where they had to delay a major new audio product. If you remember in 2016, 2 month now ther the airpods, same delay for the homepod. I dont know if this is the start of a new trend for the company. It seems to be isolated to accessories. Every time apple comes out with a hot new accessory for the ipad, the iphone i feel like there is something going on with their ramp up for accessories. We will see if it happens with the next one. Emily mark gurman, thank you so much. Now, to another story we are watching. Softbank is leading another mammoth funding round. Be 865 million round to exact. This time, the investment goes to a littleknown Technology Startup looking to shake up the building industry. Disinvestment adds to the portfolio of Softbanks Vision Fund, totaling 36 billion. Joining us now from seattle, dina bass. What does katerra do . A flood of money for a littleknown company. Dina katerra is trying to do what they say uber or airbnb did to the hospitality and the taxi industry. They are trying to Bring Technology and software and standard processes to the Construction Industry in an effort to reduce costs, speeds things up. They basically want to control every aspect of the process, from architecture to interior design, through to standardizing the building and construction work on the jobsite, in an effort to make things go quicker and be more profitable. Emily so, what does this signify for softbank in terms of their portfolio . They have invested in uber and slack. Dina it looks like they are looking for interesting opportunities in a variety of Different Industries that, in some ways, havent changed in many years. Late last year, they made an investment in real estate technology, so that shows an interest in trying to come up with a way to benefit from startups that want to use technology to revolutionize the building industry and take advantage of the real estate and construction boom, the housing boom in many parts of the u. S. Emily what are some of the challenges facing katerra . Dina its interesting. Most people probably havent heard of it, but it has some pretty highpowered backers and founders behind it. Jim davis from silver lake. Their chairman what he is best known in the Tech Industry for is having built up a Company Called flex tronics, which did something similar in the Electronics Industry to what katerra wants to do in construction. They became this massive company, making Electronic Devices and gadgets for other companies, things like xbox or hp printers. In some ways, the Construction Industry is similar to the electronic industry. There are a lot of ways in which katerra wants to do the same thing flextronics did. There are ways in which it is much more challenging. The Construction Industry faces a lot more variation than the Electronics Industry in the building and assembly side. A lot more variation than theyo0 u. S. Withties in the different weather, different seismic requirements. Katerra is trying to preassemble a lot of materials, things like counters or cabinets or the exterior and interior walls. But they still have to do a lot of construction on site. The Construction Industry is facing a shortage of skilled workers, so thats a challenge for them as well. These projects also take several years. Sometimes they run out of money midstream. That is a little different to what flextronics faced. Emily so, when will we know how successful Softbanks Vision Fund is . Obviously, they are making big bets on a lot of companies, really big bets. At what point do we know if this is really paying off . Dina i dont know. They havent even finished off the whole fund. This is a fund targeted at 100 billion. They have started making investments. Even with katerra, i think its too early to know whether that one company in the fund will be successful. The companys chairman told me they are at 1. 3 billion in one company in the fund will be bookings, and redicted it would be 10 billion in revenue in a decade. Thats a huge bet, but it is still early days just for that one company. Add in the other 99 or so companies that softbank has invested in. There are some Big Companies in there, some big names that seem to have a fair bit of success , and in others, a lot of potential. Its a lot of disparate areas as well. Emily obviously, i know we will continue to follow softbank across the map. Bloomberg techs dina bass, thank you as always for stopping by. Coming up, more from bloombergs coverage in davos. We will talk to the ceos of Morgan Stanley and the nasdaq on the future of cryptocurrencies. And if you like bloomberg news, check us out on the radio. Listed on the Bloomberg Radio app, bloomberg. Com, and, in the u. S. , on sirius xm. This is bloomberg. Emily getting out of the bitcoin business, the Online Payments Company says it will stop processing Bitcoin Transactions on april 23. The company says bitcoin has become less useful, explaining confirmationion times and fees have gotten longer for the cryptocurrency. Morgan stanley Ceo James Gorman says bitcoin isnt going away, but he does have some reservations about the frenzy over the cryptocurrency. He spoke to confirmation times and fees have gotten our g editorinchief John Mickelthwait at the World Economic forum in davos. Bitcoin is not going away. Its not a fad. But the aggregate market cap of bitcoin globally ofhink it is less than twice Morgan Stanley today. So they could buy you. [laughter] i was making an entirely different point. [laughter] listen, we think we are an important institution, but we dont deserve the kind of press that bitcoin is getting every day. Bitcoin is punching above its weight. It is speculative, filling a need at the moment, but it is not fundamentally changing the global landscape. For the average investor, they i would advise them not to be investing in that kind of speculative instrument. Another big theme youve talked about is automation. There is a lot of evidence, all these things people beginning to ask about. Do you think in Wealth Management and Investment Banking you are relatively safe from that . Which way do you see that going . To the core question of automation and other related topics, i was asked by a journalist recently about how much i focus on competitors. I said, obviously, youre in the same industry, you have some focus, but its not what we get out of bed worrying about. I worry about ai, about automation, cyber risk, digital. All of these new technologies coming to the market at the same time are transforming the way business is getting done. We try and look at each of our businesses, back to your core question with m a, highpriced, highly complex global transactions, it is hard to automate that. It is very hard to build an expert system about how to advise a board. The electronic trading in equities has long been going on. Increasingly in fixed income. With Wealth Management, the evolution of the Digital Space is not new. Since schwab, ameritrade, these firms have been around, they have been providing Digital Transaction and advice for 2. 5 decades. Decades. But its going to continue to cause firms like ours to provide both human capability and best in class technical capability. In class technical capability. Emily that was Morgan StanleyCeo James Gorman. Nasdaq ceo Adena Friedman joined in class technical capability. Emily that was Morgan StanleyCeo James Gorman. Nasdaq ceo Adena Friedman joined bloom