Says russia will metal in the elections. They say it is likely that russia will try to interfere as it pursues bolder Cyber Operations and false campaigns against america and its allies. Terrorists who set off bombs in new york and new jersey in september of 2016 have been sentenced to multiple terms of life in sza in prison. The injured 30 people when his bomb exploded. Federal prosecutors that he try to radicalize federal inmate. Global news, 24 hours a day powered by more than 2700 journalists and analysts in more than 120 countries. This is bloomberg. Bloomberg technology is next. Emily this is bloomberg technology. Rally cools after weeks of backtoback games. We will check in on the latest regional currency struggled to maintain momentum, and the current cryptocurrency landscape. Bonanza. Big tech we will hear from the ceo of gopro and prove about the cyber attack that has already plagued the olympics. Blue apron may finally have a recipe for winning. We will take down its betterthanexpected earnings score and weigh in with the ceos turnaround strategy. First to our lead, the recent decline gains we have seen the last two days has come to an end. The longest rally since december. For more on what is going on in the crypto market, i am joined by cory johnson. Walk us through the day. Cory we do not know who the buyer and sellers are, but we have seen a bounce off the bottom from a technical basis. In these things, we are in a freefall. As we have talked about many times, they were all trading with each other. Despite the differences between the different types of cryptocurrencies all turning together. We have seen a separation between the different kinds of currencies over the course of the last week brady could see it in the price of the different cryptocurrencies. Emily talk about how they are tracking relative to bitcoin. Cory they differ. Beside big bounce. Bitcoin was up a fraction of that. Today you saw a turnaround today, but i think there is a separation showing up. Of speculation seems to be coming out of sales. The steady stream of icos and companies rushing out to create new coins for no purpose, except for the few that did. Some of these Technological Solutions actually have a purpose and a point. The others are just a store of value or a way to speculate are looking are looking more silly. We are starting to look at these companies as different from each other. Emily japans coin check had frozen withdrawals. Million was withdrawn. What do you make of that . That there was a notion someone will buy it for more later. It was broken by the problem of , losing hundreds of millions of dollars in value. Having that value, i think it surprised people. They were that buying, they were only buying get so they could sell it to someone else. It is a failure of what we do as journalists, is taught. The community of journalists, not me and you of course. Talking about stocks because they should go up or they go down because they should go down, and not talking about intrinsic values or the businesses that underlie them. At least a speculation and people not knowing what they are doing or why they are buying things. We think about cryptocurrencies or equity and investment, the underlying theme is what it will be. Emily what do you think regulators are learning from fiascoes . Cory different things. I am pleased to hear that they are not all the same and that regulation can protect investors crooks andams and let Real Companies flourish with a light hand where protections are needed to needed. Emily we will dig into regulations right now. We caught up with one of the biggest players in the Digital Currency market. Brad from the Goldman Sachs tech conference. Has gone up and down with the market, take a listen. We have seen the markets bounce back some, but i dont follow it daytoday. Isthe peak of the market over 800 billion. It dropped down to maybe 300 billion and today it is back to 450 or so. Counsel for anyone following these markets is, do not follow it daytoday. Believe this is fundamentally a movement that is changing the nature of a new asset class, to measure that over month in years. There is talk about it being the next bitcoin. Is that a benchmark for you . Brad i do not think it will be one size fits all. I think it coin increasingly is digital gold. It is a store of value. Bitcoin will not solve a payment problem. The time it takes to confirm a bitcoin transaction on averages 34 hours. Per transaction the fees are around 15 per transaction. That is faster than swift. In contract, x rps 1000 times faster and cheaper. A sent toaction of confirming transaction and it takes three seconds to complete. I look at bitcoin at solving a different problem than what xrp is solving. I do not think there will be one them all. Set to rule we will see multiple players that have success. There will be quality rising to the top and overall market has been trending. Emily volatility is due to regulation. What are you expecting . There is more regulation. If we want the asset class to grow up and mature, of course there should be regulation. Those that combat regulation are not thinking about the benefit. The revolution of blockchain will not happen from outside the system, it will happen from within the system. Governments will not go away and banks are not going to go away. The Bitcoin Community comes from that libertarian view. Hasof the reasons ripple been successful is we are working with the system. We count the bank of england as a customer. Central banks are working with ripple today. We have to continue that in the future. Emily what do you think the regulation should be . Brad regulation should not change much. When youan by that is, are executing a transaction using ripple software, you will regulate institution to another regulation. Your requirement stands for know your customer requirements. Your antimoney laundering requirements. ,our bank secrecy requirements that does not change because the bank is doing the on both ends. We are making the plumbing more efficient, faster and cheaper. We should continue to have regulated financial systems. Are, oh my gosh, it will change, xrp is not circumventing any regulation so i am not concerned. Emily what about what is happening in asia, does that concern you . } brad the only thing that concerns me is throwing the baby out with about bathwater. Not all Digital Assets are the state are the same. We talked about the differences in the our oped piece. Some of this is designed to circumvent regulation. I sigh founder of eight company talking about his digital asset. For jugulars and people on tax evasion. Of course there will be enforcement against that. That is crazy to me that he was in a public setting and said that. Is working with Central Banks and within the regulatory frameworks. Embracing the fact that it should be applied to the crypto market. Emily you just partnered with leon leon . Digitale of the largest payments in china. Emily what does this mean as a partnership to come . They are the paypals of the world. We think about how to enable low friction between them. We are going to continue to work with players across the world. Ripplese understands value proposition, the pipeline of customers have grown. I am excited to come back and keep you posted on the customer announcements. Emily cryptocurrency, 2018, what are you expecting . Brad despite the volatility, i think you will continue to see a lot of bullish behavior. Volatility will continue. We are in the adolescent stage of developing a new asset class. My conversation there with the ceo of ripple. Apple ceo tim cook address shareholders at the companys annual meeting. We discussed the dividends due to the tax overhaul and a slowdown in mobile payments. He also adjust the sessions plans, saying a role as ceo is passing the baton to the next leader. Up, hackers took aim at the Winter Olympics. We sit down with the ceo of one of the companies on the frontline of cybersecurity. That is next. If you like numbered news, check us out on the radio. Listen on the Bloomberg Radio app and in the u. S. On sirius xm. This is bloomberg. The ceo says a movement is coming at facebook and it will not be pretty. Speaking at the New York Times new work summit, he said that there is a threat to pull ads from the social media giant is the start of a growing backlash heinst facebook or it criticized facebooks decision to dismiss human editors in favor of algorithms. Thing that started the downward spiral that they are in today. The Winter Olympics are off to a start complete with medals and a cyberattack. It cause Network Communications during the opening ceremonies. In underscore the ever increasing need for vigilance. Earlier, we sat down with the at the Goldman SachsTechnology Conference to talk about the hacks and what threats he sees out there. Ive worked through four different waves of cybersecurity and we are in the fourth. Have modern nations engaging in Cyber Operations were there is no rules of engagement. Nobody knows what the rules should be. What is fair game, how do you conduct espionage . In media right now. Because there is no risk or repercussion for Cyber Operations, meaning it is hard to figure out who is doing it. It is a gray area. People dont know if we are doing the right are wrong things in cyberspace. We are seeing a lot of attacks from nationstates. I do not think the gloves will come off yet, but there are different things. Interesting this idea of right and wrong, given that there are some attacks that are ok . Onin it depends perspective. Every nation wants to defend itself and no other nations secrets. Geopolitical conditions will always have espionage or ideological differences. Every nation is developing a modern capability for Cyber Operations and we have not figured out how the community operates. How would you describe russia versus china versus north a and how they have of all. Break it down for me. Kevin the russians are great at this. Commitow how to operations, but they cannot operate at the scale and scope that the chinese do. The chinese recently, especially in the united states, have been operating with a broad birth of targeting. They are more obvious. They do not do as much counter forensics. North korea is less predict the bowl. They had to make money and probably for espionage. They also had to be destructive. Other nations, vietnam has been on the radar. We have seen other nations compromise. Iran is getting big and Cyber Operations. Level of capability, different targeting and different fingerprints they leave behind. Emily any insights into who was behind the hacks. . There was speculation about russia for being banned for doping. Kevin i am not sure who is behind it. We do not have that at fireeye yet. You do a major event, there is no risk or repercussion for those who do that. You have to do security and also cybersecurity. Cybersecurity changing relative to last year and what is the exposure of fireeye . Kevin if you are hacked and you know it, the impact and consequences seem higher than in the past. It used to be when you are hacked it was a business problem. But it could be much larger now. Know it,re hacked any the bottom line, consequences are growing. More ceo attention and people are making sure that at least they get a good roi on security. Emily have you seen any Market Correction . Kevin i keep looking around, i go to the conference every year and i cant remember how Many Companies are there. To donds are proclaiming cybersecurity and it feels like there are only 10 or 11 ideas. I question how Many Companies the market can support. Thousands feels like too much. Kevin how does fireeye stand out from all of these competitors . We actually do our Market Research by responding. We are on the front lines responding to these breaches. Vantagean amazing point. What is the threat intelligence, meaning who is attacking who so that you can assign risk in your industry. Today there was a russian attack route interested in attacking the energy grid. We see them on the front lines. We have nearly one million hours, the frontline investigations every single year. Youru put that into product, we are finding the needle in the haystack every day with our people. I think we have developed the innovation cycle to do that. Emily emily do think emily do you think we will see more consolidation . Kevin i think so. You saw cybersecurity becoming marketplace within the last six or seven years. Thousands of companies have run into this marketplace. Not all will survive. There will be a lot of losers and some winners. During that there will be consolidation. Emily who survives . Every company has their different strategies. I like to meet the founders and make sure that the genesis of a Company Makes sense. What they are doing a minds with their passion and experiences. There are companies that do make sense and a lot that do not. Fireeye ceowas speaking with us at the Goldman Sachs tech summit. Coming up, is blue apron finally delivering for investors . We will look at the financial results. This is bloomberg. Emily the latest revolving door. He announced he is leaving the social media company. He joined snapchat parent in 2016 and it was crucial for building relationships for advertiser. He is the third leading executive to leave in the past four months. They lost head of product and head of engineering in november. They said they will not be looking for a replacement for lucas. On companys revenue defends direct sales depends on direct sales. Blue apron has struggled since last year, but could its Year End Results mean the company has ironed out some of the kinks . Sales jumped and beat analysts estimates. Brad is also predicting narrower losses this year. His blue apron out of the woods yet . I am guessing the answer is no, but why did the stock jump so much today . They beat expectations on revenue, as well as profit. It was more so the language that came out of the statement where andsea the co to go over try to patch up major problems they had over the past year. Was wordsge he used like stability and confidence. He said a lot of the problems they had over the past year had been taking care of. He said he would increase market spending, which is something they cut heavily last year and it led to growth falling off the cliff as they try to get their stuff back in order. We will see you happens. The stock did jump in the early part of the day, but by the end of the day it was back to where it was at the close before the earnings even came out. Analysts digesting it are reading reports that maybe things are not as rosy as we thought in the morning. Emily what remains the biggest risk factor for this company . The biggest risk is competition from amazon overtakes them. Brad thatsts asked question, how do you come out of the gate and say heavy competition from amazon, hello fresh being a key name, he said we have a lot of products coming out this year that will change our offering and allow us to charge more money and find more customers. People said, what are those products . And he said they did not want to talk about it yet. That is where concern comes from. They do not want to be just a meal kit company, they want to be a consumer lifestyle brand and we are still waiting to see what that will look like. Look at 2018,u what are the main things he will be watching . Products will be eight she won. We will have to see exactly what they rollout. They will talk about it in the next few miles. It could be anything from partnerships with other food or drink companies. They have this brand that is trying to be chris cuisine forward or fresh forward and easy to prepare. They will be increasing their marketing and seeing where that goes from here. The big thing is, now that they say theyve got this major growth issue out of dust in control, what is the next step . Quickly, blue apron came up in an unexpected place, the white house budget. What happened . The whiteried in house budget was this plan, a combination between a couple of Government Departments to do food deliveries to people who are getting food stamps. I am not sure if they had to do with the stock up and down of blue apron. They were not specifically mentioned, more as an example of what the government wants to do, antihunger activists in poverty activist were very confused by the statement. If it is any measure, it has been tough for a private company such as blue apron to make this, it will probably the tough for the government as well. Emily thank you for that update on blue apron. Coming up, Goldman Sachs oversaw dealmaking infor 2017, with more than one chilean dollars worth of deals. We will hear from the cohead next. This is bloomberg. Youre watching bloomberg. Checking in on the first word headlines from around the world. They indicated that the timeline for rate rises remains unchanged. The u. S. Central bank is on the lookout for threats of Financial Stability and turmoil in the markets. President is sources say impress the white house. None since had Stanley Fischer step down. Police are recommending the israeli Prime Minister be bribed with charged with bribery. Favors. D influence for he denies any wrongdoing and claims he is the victim of a witchhunt. Data show japans Economic Growth slowed sharply in the Fourth Quarter. Iny were just under 0. 5 three months. That is far short than the 1 they estimated and down 2. 2 growth in the Third Quarter. Will berican president at a meeting. It comes after ruling that they describe its newly elected leader will replace him as president for the transition of power. We are seeing stocks fluctuating. Have a look at what you are seeing in the japanese yen. Saw a through after we little bit of a miss in that data. Of japanese yen up by a 10th 1 . You can expect it weighing heavily on the nikkei, which is down by 1 . Are seeing upside from the thanks to