Jobs and spur growth. She spoke for more than eight hours yesterday in opposition. Porters today is rob last day on the job. Reports surfaced he had emotionally and physically abused his exwives. Senior white house aides were aware of the domestic violations and violence that was alleged. Eagles fans have waited almost 60 years for this. Superelphia honors its bowl champions. Global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. This is bloomberg. Emily i am emily chang and this is bloomberg technology. Qualcomm rejects broadcoms bid. Why they say they undervalued the company. Twitter makes a profit for the First Time Ever and profit revenue grows after four quarters. Their blockbuster Earnings Report. And, a gold medal for pyeongchang. They will be the first to reveal 5g. Qualcomm has officially rejected broadcoms bid of 82 a share. They say it materially undervalues the company and falls short of regulatory necessities. The broadcom made the bid, company stated it would be its last offer. Joining us, cory johnson. What does this mean for qualcomm and broadcom . It is looking increasingly unlikely. There are a lot of headwinds. The markets saw, did not believe what was going to happen. It was a cash and stock offer. The new owners would have to agree shares of broadcom priced as they are have more shares than the price of broadcom. They did not think that was the case. Qualcomm will go their own way and try to right their own business. Qualcomm shares traded far below the broadcom offer. We this was not going to happen. That broadcom will say the ceo gets what he wants. Does he have any other options and what are they . In terms of broadcom doing other acquisitions, there is no company quite like broadcom. The only one like it is intel. Guppies is like swallowing a whale. Asset qualcomm has an there is no other company like it. Emily cory johnson, you are sticking with me. A banner day for twitter as they post their first real profit. Shares of sword the most since they reported their first Revenue Growth in four quarters. A turnaround trend for twitter, which recently lost its coo and has been fighting a scorch of the fake news. Scourge of fake news. What are the highlights . Twitter posted solid Financial Reports but investors might be overreacting to what is mild progress. We did see revenue pickup for the first time in a long time, but it was only 2 growth. We saw a gap, but it is unclear if that is sustainable because that was mostly due to severe costcutting over the past few years. Most alarming, monthly active viewers failed to grow and declined in the united states. Daily active users show doubledigit growth. How much more value can you continue to extract from the same active user base . At some point, twitter will hit a ceiling. The longterm sustainability of the company is still up in the air. Emily if more users are not going to come, can they squeeze more out of the existing users they have . Cory that is the question. We have seen a decline. If you look at the yearoveryear change, it declined over the Fourth Quarter in 2016. That is the wrong direction. You want inclines, not declines. 1. 22. We might have a graphic that shows that. Either way, the numbers are going in the wrong direction. Really what we want to see is a yearoveryear change. But they really have to commit advertisers to pay a lot more. As the next goes more down. Ational, it goes they might be able to raise rates in the u. S. Ut they lost users in the u. S. As the mix shifts to more international, and 79 of users are international, you will see less revenue per user because it is not worth as much. Emily we have a chart that shows the profit. 5950. G btv how will investors use this given the lack of progress around users and the obvious progress when it comes to profit . We are seeing investors overreact. They are excited to see twitter jump above and beyond that low bar. Ofre is the Growth International users. I spoke to an analyst that said if you are betting on twitter, andre betting on asia most specifically, japanese growth. Japan saw doubledigit growth. U. S. Growth was declining. That is alarming given what cory said earlier, you can get more value per user in the united states. Investors are really excited about the incremental product twitters product changes twitter has been making. Which is finally bearing fruit. Some changes include the timeline. They have adjusted the hour where you see the most relevant tweets. We have seen them do more experimentation on the explorer are you jack dorsey admitted twitter has not done a great job matching users on twitter with the interests and topics they want to follow. That will be a big focus. That is what investors are reacting to. We will probably see the share gains tear down the next several hours. Emily selina wang, cory johnson, thank you both. Manages a Twitter Product called tictoc. Collegey strong sales, duty franchise brought the game back from outer space to world war ii. Chipmaker nvidia also coming in with the numbers earnings. They beat analyst estimates for the Fourth Quarter. Expedia reported its fourthquarter, adjusted earnings missing the lowest analyst estimates, 3. 2 billion. 36 billion. D 2 [inaudible] this is bloomberg. Lyft has hired a new coo to gain ground on uber. Report department will directly to elon musk who said there are no plans to search for a replacement. Tola has pledged to it have its own Ride Hailing Service with self driving cars. There have been little signs of progress on that initiative. Amazon taking a big step to integrate whole foods in its operations after purchasing the grocer for more than 13 billion last year. They are offering free to our deliveries from the stores. It will be available in 40 u. S. Cities. Amazon plans to expand the service this year. I want to bring in olivia zaleski, who has reported extensively on the amazonwhole foods deal. Always great to be in the same place as you, david. Walk us through the nuts and bolts of this and how it will work. The numbers. T with about 90 of amazon primes 90 million users live within 10 miles of a whole foods. It is a nobrainer amazon will come in and offer it is option where you can get your groceries delivered for free within two hours from those hubs. If you think about it, it is much smarter to have deliveries coming from these individual stores. They have a 400 plus stores. They are in some of the wealthiest neighborhoods in on the planet. You can go in, have the deliveries come from those stores, rather than a warehouse, where it is more expensive. Emily we have been talking about this for months, the power of amazon, not to anticipate them underestimate them. Dave it is just one more incremental piece for global domination. They are the scariest and most Impressive Company most of us have ever seen. It is not hyperbole to ask the question, what industry will amazon not take on and possibly take over . They execute better than anybody. They are amazingly good at seeing what they have in making the next right move on top of it. I am extremely impressed by it. Emily what does this mean for competition, Companies Like instacart, that had a great relationship with whole foods before amazon moved in . Olivia instacart knew this was coming and they planned around it. They have quietly been building up their customer base. Instead of focusing on whole foods, they went to every other grocer that would compete. They now have six of the seven largest grocers. The only one holding out for the moment is walmart. They have been strategic and built solid relationships. I think what we will see play out is this whole foods versus everybody else from a. Everybody else drama. Emily what do you think we will see in 2018 . Olivia it will expand almost all whole foods stores. We will see a lot of pressure on the suppliers for whole foods. Right now it costs 25,000 to have dreamy and shelf space in a whole foods. I think we will see that number go way up, this is according to reporting from the wall street journal. Some said it would be up to 300,000 at a prime, i level spot in a whole foods. That will put pressure on the suppliers. Or ill have to defect dave you can always risky doing too much. They seem to have no bounds on their ambition. That is the part i would maybe worry about. But their execution capabilities are so extraordinary, if there is any company that could do this wide range of things, it is them. It is hard to fault of these people, except for profit, they dont make much profit. Emily they dont seem to care. David kirkpatrick, sticking with me. Olivia zaleski who covers food tech, thanks. The industry average for women, companies receiving vc funding is 2 . We will speak with canaan istners, whose portfolio full of womenled companies. This is bloomberg. Emily facebook is expanding its operations in dublin. They plan to lease an Office Campus in the Irish Capital about the size of eight football fields. It is currently occupied by allied irish banks, and other areas are under consideration. Space wasmount of bought, including by Companies Like alphabet, microsoft and facebook. Canaan partners was funded in 1987 and remains one of the most diversified funds that invest in tech. Fund hasre friend 40 Investment Team female. 47 is immigrant or firstgeneration american. What stands out the most, 20 of their portfolio was founded by a woman. Nationalares to the average. I spoke down with maha ibrahim and Nina Kjellson from Canaan Partners about how they might describe gender issues in venture capital. In the last few years there has been a race for people to hire women, for firms to hire women. They have done it at senior roles and german and junior roles. Over the next couple years, what will be the true test is, how many of those women stay. How our industry retains those women, helps them be successful, integrates them into the fabric. We are at a good time right now. I am optimistic for the future. I take responsibility and i know that many others take responsibility in making sure those women are given every opportunity to succeed. Is uniqueaan partners in that it is three female investing partners and 40 of the company is women. How do other firms get there . I got to think a lot about this when i decided to join the firm. I did a lot of research about what is canaan doing right and what is the recipe. It has to do with the culture and governance and how the firm is run, as opposed to a delivered quota or setting out to hire women. I think diversity begets diversity. Fairly early on there was a woman at the head of the table or at least at the table, and increasingly ahead of the table. It became so much more inviting for the next woman to join. It is a virtuous, positive cycle. All without a fixation. We just feel it takes a Diverse Group to achieve that. You were the first woman investing partner at canaan, and now you have a seat at the head of the table. Maha yes. Emily what was it like being the first woman to join an allmale farm . Firm . Maha i was too young to realize the impact. I wanted to prove myself and understand the industry. Diversity does the get diversity. Beget diversity. I was fortunate to be with a firm that made it a nonissue. I wanted to hire people who had diverse backgrounds because i am a firstgeneration immigrant, a female. I have hired a lot of people who are firstgeneration immigrants and or female. Emily talk to me about how the portfolio at canaan looks different. In terms of numbers, we are not there yet. 25 of our companies are femalefounded or run, which is better than the 7 or 8 statistic for the industry at a whole. The pattern matching of a female entrepreneur are executive is no longer sizing her up, issue like my sister, my mother, my wife, my daughter, but is she like the other entrepreneurs in our portfolio . It is so normative there is a Diverse Group around the table, to tryingas opposed to find the token example or reference point. Emily are you seeing change . We have never had pressure to have those activities take hold. Tryingre venture firms to establish norms, public , for whichsettings the conversation with of entrepreneur does not have to veer into the sexual realm or the ultrapersonal realm. They are doing it via pledges and diversity training. We are still not there. We need to be there. Some firms are locking into firm , that they have training and harassment policies internally so it is minimizing the chance it happens. Emily i want to talk about your exciting portfolios. Nina, you are focused on the biotech space. There is a lot of exciting stuff happening there. What are the trends you are most excited about Going Forward this year . Is a lot, it has been a sustained bull market for biotech. One of the things we are excited there has been, so much translational finance coming from academia into small companies. The funding of the Risk Appetite support that. Emily your portfolio is unique. It is very broad. Where are you focused right now . Maha i am focused more on the consumer side. On the consumer side and enterprise, for the last several years, we have not seen that tsunami change we saw with consumer and mobile that brought in Companies Like uber and airbnb. On the same side on enterprise, we have seen the infiltration of open source the press price points considerably. Change have not seen the i think both sides of the house are experiencing headwinds. Where i am focusing are certain pockets within consumer and enterprise. I just invested in a yet to be announced he Sports Company eSports Company. At canaan we are looking at these two areas and looking beyond them. Tsunamis ofng for change. Like space, robotics, quantum computing. Once we have historically had a deep background in but are coming back with the advent of artificial intelligence. Emily that was maha ibrahim and Nina Kjellson of Canaan Partners. I interviewed them from my new book, out this week. Hister Ceo Jack Dorsey saw platform posting strong results. This is bloomberg. It is 12 30 here in hong kong. The u. S. Government is heading for a temporary shutdown as republicans had objections. Hoursdown may last only as house leaders advise members to be ready to vote between 3 00 and 6 00 a. M. Eastern. Bill dudley said the current market moves are small potatoes so far, no indications for the wider economic outlook. He said he is sticking with the feds outlook for rate hikes. It is premature whether it three or four. O, this seems like a very reasonable projection. Philippines posted a record trade deficit in december. Exports fell but imports of capital goods surged. A shortfall of 400 billion was since 1980. The peso had its biggest drop. Global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. This is bloomberg. Go check on how the markets have been trading in the asiapacific today with the julie sally in singapore. Not very well. We are seeing this stock route continue after the s p 500 entered correction territory. You can see major weakness from china and hong kong. Down. I 400 is the hong kong hang seng up 1. 3 . Virtually no market is escaping this selloff. I want to show you how we are seeing the regional index as a whole fare. Is thep of about 6. 7 biggest we have seen in the regional index going back to september 2011. We have seen the regional index up to. 5 . Not far off those levels. We have seen hsb fall 14 . The overalled, regional index having that sharp drop. Lets look at stocks. Tencent falling below 400 in hong kong. It has recovered a little bit of that, now down by 3. 3 . Nissan under pressure. Nissan rising after demand for a dungeon and fire game. This is bloomberg. Emily this is bloomberg technology. I am emily chang. Twitter has legitimately good Financial News for the first time in a year. Does this mean the social media giant is still ripe for a takeover . Rumors have been aplenty. Infamous tweets had people talking a twitter takeover was imminent. We would like to answer that question. Alex barinka is with us. Still with us, david kirkpatrick. Alex, where do we stand . Who are the suitors and what is the likelihood of something happening . Alex you are right, twitter is the perennial name brought up in terms of targets out here on the west coast. This Earnings Report today potentially increases that probability for a few reasons. If you ask folks on Bloomberg Intelligence, they say that the parchment the departure of the coo and the fact jack dorsey is managing two companies boosts the potential of them becoming a target. Talking to other sources on the you might wantid to buy a ship that is going down, but not a ship that is going down and on fire. That is something that might have eased concerns with results today. If you look at twitters results today, they did turn a profit for the first time. It is not necessarily because the top line looks pretty. They have been deliberately cutting expenses. Their expense base has gone down by a significant amount. Saying,re coming in and what could this asset do for me, you dont want to take on something that is burning cash. If they are getting the bottom line in order, cutting expenses they do not need to be spending, simplifying and improving that margin, that could bring them up into the consciousness of these names you mentioned. Take david, what is your on this in the context of the latest results . David alex is very intelligent in her analysis. When biga Time Companies with cash towards overseas were taking them home. It is not it makes sense. Twitter seems to be making a lot of smart moves. It is still a really tough business. It is not a big, high Profit Growth business. But it is central to the dialogue. This thing, dorsey expanded the length of the tweet, seems to have gone well. Emily i have been enjoying it. Nervy move to do it. I could see a number of companies that would potentially want to do it. Emily alex, there has been product evolution, as david has meant been mentioning. As you list