Debris. E and global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. This is your first word news. Im a Alisa Parenti. This is bloomberg. Emily im emily chang, and this is Bloomberg Technology. Intels Fourth Quarter win despite disclosing problems with its chip line. Plus, robin hood moves its Commission Free trading model into the creek. Into the cryptospace. An armys army by buy in . That is ahead. First to our lead. Until shares gained about 4 after the Company Released betterthanexpected mornings for the best betterthanexpected earnings for the Fourth Quarter of 2017 betterthanexpected earnings for Fourth Quarter 2017. Vulnerability may be helping intel as computer owners retire older systems upgrade. Joining us now is our bloomberg editor at large cory johnson. The stock is up. How surprising is it . Reporter if this company can grow by 20 , which is what you saw in this quarter, it bodes quite well for this business. ,he pc business shrunk by 2 but the margins are much better in the growth and data center was just draw jumping late jawpping lee fast droppingly fast. Amazon has great growth. Microsoft is even better. ,ll the chips in the industry that is fantastic news for intel. Really didnt get public until the beginning of this quarter, so it is not a surprise there was no impact in q4. Even looking forward, obviously this is an industrywide issue. Intel is working hard to fix it. I think in the long run they are going to be ok. Someterm there could be issues, as you mentioned. Intel owns a huge part of the data center market. Not quite all of it, but the vast majority. Do you agree with will not see a big impact from this in the ensuing quarter . Guest sure. I think it is a big deal. Reporter one of our producers produced this. Great package about the security flaw i think it is this great package about the security flaw. How Many Companies today are developing their own processors . It is an amazing notion, unimaginable 10 years ago, that google, apple, facebook, and amazon web services, four of the Largest Data Center builders, are developing their own semi conductors for something. The notion that they would go in to chips is crazy considering how difficult it is to make a semiconductor. To make a semiconductor better than intel is an audacious notion. That could be competition way down the line, but not this quarter or this year. Guest exactly. What we are also seeing is an expansion of where those semiconductors are going so that traditional Core Data Center business, intel can have a piece of comedy other companies cavities of, and theres all this Edge Computing stuff. They are going to extend to the cloud and the edge. Apple is developing for that, but other guys are going to develop for other kinds of the vessel is other kinds of devices we dont even know what they are. Intel is the biggest player in the chip business, for the big players emily trying to buy qualcomm. Guest right, but the big chip players are doing well. Starting to get intelligence embedded into our microwaves, and everything. Obviously automobiles and all the developers there. Because there are so many different places this stuff is the iot market, all of that creates data to which creates demand for data centers. I will say one thing to what corey said. Yes, intel had amazing growth, but lets be honest. I think that maybe hard to replicate on and on. Reporter if they can keep doing this. I dont know if we can. They are not going to promised when percent growth promised 20 growth. Acquisition, a really it was a deal, all those little chips you are talking about, that business a really expensive deal, all those little chips you are talking about, that business had 20 yearoveryear growth. They are growing in iot also. It is a very serious business. Is not the size of their pc business or data center business, but still, 3. 2 1 10 of theirut total business, and a big deal. Emily they have said they have made progress on the security flaw. You wouldnt expect them to say much else. They are increasing the dividend. Talked about the data center business. What are the other highlight he would pull out of this report . Business wasnt down as far as people thought it would be, so that it was a good sign. We expected to bottom out, and we see a solid base. Neurallike mobile ai, networkbased chips, video processingbased chips for ai and Machine Learning, those businesses are tiny now that they are going to grow longterm. That is what the company is trying to do, brought the reach of technologies that can influence. Bob odonnell and our own cory johnson, thank you so much. Tune in friday for corys ceo ew with Intels Intels cfo. Apple is getting ready to take on amazon in the ebook business again. In 2012, the Justice Department sued apple over its first effort. That resulted in a 450 million fine. This time apple is working on a redesigned version. Amazon has just over 83 of the ebook market in the United States. Amazon is in talks to buy box. Com according to a report in the new york post. This comes as a Grocery Store chain kroger also showed interest in the company, known as the cosco for millennials. It would shut out kroger from getting a foot in the ecommerce space. Coming up, Robin Hood Financial is getting in on the crypto craze by launching trading for bitcoin and in syria and etherium. We will speak to the ceo next. This is bloomberg. Emily Robin Hood Financial, which makes a free stock trading at, is launching trading for ethereum an bitcoin next month. By thejoined now cofounder and coceo of Robin Hood Financial. Thank you so much for joining us. How challenging was it getting this off the ground . Guest we been working on it for the better part of the year, starting the beginning of spring last year. The technological work we have done on our equities business, which made it more straightforward, there were business and regulatory pieces we had put in place. We actually are pretty happy to have other Market Participants in this industry. I think if cryptocurrencies are going to live up to their full potential, we are excited to have other people in this industry as well. We are very good at Building Consumer products. Weve done an amazing job of introducing a new generation of consumers to the equity market. We think we can do a great job here as well. Emily Companies Like coinbase have had a lot of issues with support and load times. Are you worried about that, and what are you doing to prepare . Guest up time and availability is something we take incredibly seriously. We are held to an incredibly High Standard where we have basically zero downtime as acceptable. We offer tens of thousands in securities and u. S. Equities, maybe hundred thousand Stock Options on top of those. We have a lot of expertise doing that, and we are excited to be able to offer that same time for cryptos. Guest what is your outlook on bitcoin and cryptocurrency . Guest i think one of the things that makes this really exciting for us is the inevitability that cryptocurrencies have. There have been a couple of times a last decades were people the last decade were to what accounted it out or down, but each time it has come back. We think that gives it really long staying power. Emily how big a revenue driver will this be for you . Guest we are offering cryptos Commission Free on robin hood. We see a way to accelerate user growth. Our primary interest in this is to see how much we can add to the baseline growth. With the current business, we plan to break even. Emily you get fascinating data on what kind of stocks users are buying. What trends are you seeing that are the most surprising . Guest the trends that have been pretty consistent over the past few years on robin hood is a lot of interest among younger consumers in Companies Like apple, tesla, facebook, the really big consumer brands. Is very interesting to see. Emily but not necessarily thats praising. Guest maybe not that surprising. Emily talk to us about Bigger Picture growth. You talked about 3 million users, up against some bigger players. How do you get a piece of that pie . Guest we stay very mission driven. The point of robin hood is to build a different kind of Product Services company, getting the benefits of the Financial Services company to the rest of us. For too long the finance industry has been one that helps people that have more money be better established. If we stay true to that mission it tends to be a really good guideline. There are so many consumers in this country that would love to be a bigger part of the system. Each time we offer a new product, whether it be Commission Free stocks and etf, Commission Free options we announced in december, and now free to go trading free crypto trading, anytime we open a new market. Emily what is next . What you see in robin hoods future . Guest we would like to go public oneday. The time horizon is still the next few years, but we are quickly becoming one of the largest brokerdealers in the u. S. With adding cryptocurrencies and all this other stuff, we are on the after doing that. Emily are you profitable, or will you be soon . Guest we are not commenting on that now, but we will be soon. Emily thank you so much for stopping by. Coming up, the world according to george soros. The billionaire investor speaking from the World Economic saying facebook and google deliberately engineer addiction to the services they provide. We will hear from him next. If you like bloomberg news, check us out on the radio, the Bloomberg Radio app, bloomberg. Com, and sirius xm. This is bloomberg. Emily breaking news from President Trump at the World Economic forum in davos, saying he will support a path to citizenship for 1. 8 billion socalled dreamers, saying he pathway for the folks qualifying under the data provision. Provision. The daca we will continue to cover the story. World economice forum we have been speaking to the biggest ceos and World Leaders from around the globe. Satmbergs Haslinda Amin down with one who says companies and to fight cybersecurity like a disease. Guest you have to stay on top of it all the time. There is no end in sight. You have to be vigilant. The threat factors continue to increase. We have improving, but not perfect, cooperation between companies. Notave improving, but great, corporation between governments and other governments, and it is a global problem. If you solve that problem in one particular country or server, how do you make sure everybody else has an opportunity to understand that threat factor has been solved . Haslinda why have governments and companies been so slow to rectify the issue . Guest it is incredibly complex, first of all. If you have been optimized, you have a duty to care to your shareholders and customers, and you want to be thoughtful about that before you disclose it. To the extent that you do disclose it, you want to make sure you are identified because you have been helpful, you dont want to be penalized because you been helpful. Theres no real regulation rules that have caught up to the constant attack we are seeing from multiple different threat factors. Haslinda we have the intel chip disaster. How will that impact Cloud Computing . Guest i think every vendor immediately started doing patching and a limitation, with respect to ensuring you have these type of threat vectors marginalized. Youre never going to be 100 sure that youre not going to be infected, so you have to be digital and that she have to be vigilant on a regular basis area i was in a meeting this afternoon were restarted talking about sharing what we were seeing in different processes and procedures. Sure peopleam not understand, i think more people die from the cold then other infectious diseases. There are more very violent security attacks from very of dutyishing and lack care from an employee that ankles and email that answers and email incorrectly or doesnt , ory the appropriate patch a complex infrastructure that doesnt understand you have to do this process before the second process. These are all things that are relatively easy to vaccinate on. It we can get just that done, i down we will really cant we will really tamp down the threat vector. Do i think we will see more problems . Unfortunately, yes we will. You have to understand that you are only as strong as the weakest link in the chain. Although you might not see that particular problem again, or a variant of that particular problem, when you take a look at the different constituencies that are attacking, you have terminal activity, probably criminal activity, nationstate activity, and just plain malicious activity. Actors, thethese barrier to entry or would it cost for them to do the hack is relatively low. What it costs for us to protect it is relatively high. We have this economic impasse where until we make it very difficult for them to hack, i think it will continue to be creative. Haslinda ai is transforming the way we communicate, do business, ceos know0 to 15 of what the next Big Technology investment would be. For those who do not have a clue where their money should go, where should it go . Guest security first. I would make sure whatever you are doing, you feel you have done everything you possibly can to get your assets from cyberattack. If you dont do that, i think youll be put at risk. No matter what great ideas you have come a they never get realized. Secondly i would take a look at Data Analytics and big data, and start mining that data to understand your customers or employees or partners. Haslinda 30 of data goes unused. Guest that is why we have to get more automated and ai comes into the picture. Big data and ai are super close cousins. If you build and out a rhythm that has limited data, i think you are going to have a very weak learning algorithm. Ca technologies ceo Mark Gregoire there. We are getting more headlines about President Trump supporting socalled dreamers, children brought into the United States as immigrants. Three white house officials confirming that President Trump would sign an immigration plan into law that would get as many as one point 8 million of these dreamers a pathway to citizenship. This would be some sort of 1. 8 million of these dreamers a pathway to citizenship. This would be some sort of concession to democrats. We will continue to monitor these headlines as they come in. , andime, back to davos billionaire investor george best george soros and billionaire investor george soros there, talking about social media giants. Guest they are Public Utilities , and they are subject to more forngent regulations opposition, innovation, and fair and open universal access. Emily . Is he had to say specifically about facebook here is what he had to say specifically about facebook. The Network Effect is truly unprecedented and transformative, but it is also unsustainable. Years toacebook 8. 5 reach the first one billion users, and half that time to reach the second billion. At this rate, facebook will run out of people to convert in less than three years. [laughter] emily george soros went on to say that facebook and Google Foster addiction and risk and ingering risk empower datebased service empowering statebased surveillance. Bloomberg. Alisa im Alisa Parenti in washington, and you are watching Bloomberg Technology. Lets start with a check of your first word news. White house Officials SayPresident Trump will sign an immigration plan that would give as many as 1. 8 Million Immigrants rot into the United States brought into the United States as children a pathway does is inject pathway to citizenship. Trump will deliver the keynote address at the World Economic forum in davos on friday. At a meeting with the israeli Prime Minister today, he said the u. S. Is moving quickly on plans to relocate its embassy to jerusalem. President trump we will be moving our embassy, as you know, to jerusalem. We also know that is way ahead of schedule, by years, and we anticipate having a small version of it open sometime next year. Alisa when britain exits the eu, irelands Prime Minister wants the bloc to have a closer relationship with the u. K. Than it currently has with nonmember norway. He spoke to bloomberg tv today in davos. I think it will be a specific agreement for the united kingdom. As ireland, we want that to be as close as possible, so we would have a we need to get into the detail now as to what that means. Alisa norway is part of the eu single market, but not the customs union. In the philippines, experts say a volcano spewing lava as high as 1600 feet still appears to be swelling with