Cue ramy on right on cue, the foreign minister put out his response to this that the act out of the United States is an active International Act of terrorism. Were going to get you more details on this story, information thats been for the lastough two or three hours or so. The state of the markets are looking like this. In terms of risk assets, going into the lunch break in hong kong, u. S. Features down 20 points, dollaryen low to the day, still fairly strong on the japanese currency, fly under the asian benchmark, and gold is 15401550. Wards 4 , but still substantial gains. He was features are looking like this u. S. Futures are up my mistake, moving up as london joins wakes up. Good morning to you. Well get to the latest on all of this. Jodi schneider is onset. And we have another reporter joining us. Jodi, im going to start with you, the significance of this act. Jodi very significant. Probably the most tense moment and certainly the biggest escalation in relations since the end of the iraq war in 2011. Weve now seen, with the u. S. Saying President Trump this is being done on President Trumps order as a defensive move, is what the u. S. Is saying, given the u. S. Is saying they had concerns that there would be an attack on u. S. Diplomats and servicemen in the region. That is the reason being given. This is a very significant figure. This iranian general was a veteran of the iraniraq war. He was seen as being responsible for defeating isis in iraq and syria, and for basically keeping isis largely out of iran. Is a household name in iran, so this was a very significant u. S. ,ike attack by the and it is certain to escalate things. Weve already heard from iran that they will retaliate. Ramy as a mental exercise, you can almost look at the other side of this and imagine a u. S. Official, perhaps of that level, being subjected to this. Its the magnitude to what youre pointing to, the potential reescalation of tensions. Take us through what we need to follow. Jodi obviously, we need to see what iran does. Were hearing from iraq, as well. We havent heard much from President Trump. There will probably be more we hear from him, as well, but its what goes on in the grant and how is this received . How is this received by other countries . What they seem to think, obviously, the u. S. And iran have, had increasing tensions in recent years, starting with President Trump pulling out of the nuclear accord. But in recent weeks, weve also seen these tensions escalate, as well, so well be looking at what the rest of the world has to say. Ramy absolutely. Let me bring you in here. The oil markets are obviously reacting as expected. Weve since pared back but we are quite elevated. Talk to us about the significance for oil markets and are we talking about significant parts of supply . Maybe, maybe being under spent . Guest yes, absolutely. The clear and present danger is retaliation. Somethingt iran to do on what is seen as a very aggressive show of force by the u. S. They will probably be forced to take some kind of action, which means that supplies are already tight because opec has been cutting production for the last one year or so and iran sits on a crucial point. They have shown in the past that they can take action and that suppliesto significant from that middle east area, the biggest supplier of oil to the world. Texas, 68 andst brent. Thank you, out of singapore. Jodi schneider is with us in our studios to talk through the politics. Here, we spoken on the future of the iran initiative. Listen in. Any cant see how theres prospects of talks between the United States and iran after Something Like this. No, the prospects were already fairly dim, but no iranian president could possibly sit down with donald trump after Something Like this. This marks a series of violent episodes that have already strained relations. In terms of the broader implications with future countries, where do we go from here . With things change if 2020 leads to a different president . Guest well, i would hope so. I would hope so. But this is the worst its been in 40 years, in my view, the worst its been since i ran held i ran held american hostages at its embassy. This is a huge crisis. Im not sure donald trump understands the implications of what he has unleashed. Ramy donald trump just tweeted, in fact, the image of an american flag. Put what you want on that tweet. Jodi he thinks hes a big hero he thinks hes a big hero. But a lot more people are probably going to die because of this. Ramy that was my next question. Should we start considering the u. S. Getting into a regional war now . Reall hard tots bridge this point. We have to see how iraq survives this. It wasnt just because he was assassinated, but also a prominent iraqi, head of one of these militias and a great deal of political power, as well. Were going to see the ripples flowing out from this for a long time. Jodi the uss said the strike was aimed at deterrence, the u. S. Has said the strike was aimed at deterrence. What should we make of that, and what would be a more appropriate response . Look, im not privy to the information that the Administration Says that it has. The United States overreacted with the killing of the 25 members of the militia, which of course led to the effort to seats the u. S. Embassy in baghdad. I think the United States made a huge mistake when it pulled out of the Iran Nuclear Deal in may of 2018. Thats what really set off this escalatory spiral. Where it goes now is going to depend on the actions of those in tehran, how they evaluate this, how their allies throughout the region evaluate this, and of course the United States ramy ok, now we have joe biden chiming in on this, is ashley saying he is calling the u. S. Action a hugely escalatory move says,and donald trump, he tossed a dynamite. Well be back for more. For those in the u. S. , its bloomberg tech. For the rest, best of daybreak middle east. This is bloomberg. Taylor do you see california as the beginning of a federal privacy law . California has always been a trendsetter in privacy regulation. Its definitely proving to be the case already. Because as eric mentioned, there are laws in new york, illinois, washington, and other states that need to take the cues from the ccpa. And i think right now, the chances of federal privacy legislation appear to be stopped, but if you have states around the country adopting nuances that are similar to the ccpa or take it a step or two further, you can have an enormously complex regulatory landscape for businesses in very short order. And i think if you reach that pain threshold, where businesses are finding it very difficult to reconcile all these conflicting requirements, that could finally be the impetus for federal legislation. Taylor eric, in your opinion, what do you see as te biggest or as the big driver for federal legislation. Is it the fact that businesses will be so confused by multiple different state laws that they really do need a federal law to lead the way . Eric i think there are these two different tension points. On the one side, there is this private right of action or the general push on consumer advocates and democrats to give strong enforcement on any privacy legislation that passes. Thats a key piece of debate in the federal law. So thats the sticking point. Its how much are the states funding the enforcement . And thats part of the california referendum. The other side is whether we are going to have the federal law consume everything, basically federal preemption. And that takes over and kills all the state bills and makes the federal bills the law of the land. And thats what the republicans are fighting for. You see the debate there. Its, do we have a federal preemption and a private right of action, do we have neither . Thats where the debate remains. Its a lot of the small pieces of the bill people tend to agree with, but its those big sort of ideas, how we enforce it and whether the federal law is the ultimate law in privacy thats still up for debate. And thats why congress is stuck. Taylor im going to play an acronym game. We were hearing that a lot of businesses didnt mind ccpr because they were already in compliance with ccpa and ggdr. What are you hearing from businesses just from a high level in terms of being compliant with ccpa . And if that isnt a big deal because theyre already compliant with a broader level of data privacy . Guest well, its true that gdpr is a major european privacy law that went into effect last year or the year before last. And the ccpa does draw upon a lot of the concepts in gdpr. But thats a law that applies to data of european residents. And so, even for Big Companies that have implemented gdpr compliance, they havent necessarily done it for their u. S. Operations. And also, ccpa has its own set of requirements and nuances, so the fact that youve done gdpr does that mean youre all the way there, by any means, with ccpa. Taylor its a debate thats certainly going to continue along with more acronyms i may be confused on. Thank you both for joining. Now, an analyst predicts that a federal judge will probably block tmobiles 6. 5 billion takeover of sprint. That is based on questions the judge asked during Court Proceedings last month. A group of states has filed suit to block the deal on antitrust grounds. And coming up, amazon employees speak out, wanting the company to do more to fight Climate Change. All of that next. And if you like bloomberg news, check us out on the radio. You can listen on the bloomberg app, bloomberg. Com, and in the u. S. On sirius xm. This is bloomberg. Taylor the new year hasnt dulled tension between tech employees and management. An amazon Workers Group says the company has threatened to fire them if they keep speaking out about the companys internal affairs. The group, called the amazon employees for climate justice, has been seeking ways to curb the ecommerce giants contribution to Climate Change. For more, lets go to seattle where Bloomberg Technologys matt day is standing by. Matt, what are you hearing about what amazon is telling employees and what the employees are saying in response . Matt the Employee Group came out this morning with a press statement, saying some of their members had received emails from amazon reminding them of the companys policies about speaking to the media. This Climate Activist Group thats within the company has been largely conducting their campaign to organize inside the company, but have also been using the media as a way to get the message out and put pressure on the company to take firmer Climate Change stances. The Company Seems to be fighting back and suggesting they have to go through official channels to get approval to talk. Taylor and matt, this is arguably not even an amazon story. You talk about the tension between management and employees frankly all over big tech. But specifically at amazon, how did this start . Matt amazon doesnt have a reputation for employee activism like some of the companies in Silicon Valley do, given that its more of a buttoned up work sort of place. But in late 2018, a bunch of employees got together just looking around the Climate Change headlines and how they were impacting amazons business. Some had huge wildfires in washington state. They decided to take action and push the company to commit to doing more publicly to fight Climate Change. And since then, the company has actually taken many steps it wouldve recommended at that time. Taylor i want to get a little bit more of amazons response. What else are they telling you about this sort of updated communication policy . Matt theyre basically reiterating that they dont think their communications or prohibition on employees going outside the house and talking on behalf of the company. They want them to stay silent or at least ask for approval before going outside the house and talking about topics like this. But the employees think theres something new and different here that amazon is applying policy that didnt apply to them in the months and months before hand that they were organizing these efforts. Taylor you know, matt, we often hear about former googlers, former any big techer filing complaints with the National Labor board, or filing lawsuits. Is this a stretch too far to think that there could be any legal ramifications here . Matt we havent heard any rumblings of that so far pertaining to amazon. I think theres a fine line, at least in my understanding, that a protected employees speech in relation to working conditions versus going out and claiming to speak in behalf of the company, which i think is what amazon is claiming has occurred here. Taylor what is amazon doing to fight Climate Change . Often, i order a package, and i get 10 different boxes instead of folding them all into one box to save some of the cardboard, for example. What are some of the initiatives that they have made . Matt so, one of the earliest programs, like you mentioned, the cardboard stack. Amazon is working to cut packaging in products they ship. This september, jeff bezos, their ceo, announced a plan to be Carbon Neutral by 2040 and to meet the goals of the Paris Climate Accord 10 years ahead of schedule. Now finally, making some of the aggressive commitment some other Large Tech Companies had adhered to Climate Change, and some outside observers would say, in part, due to their employees organizing. Taylor thank you to bloombergs matt day. Coming up, whats old is new again. Apple strikes a deal with an old partner. We look at the deal between the iphone maker and its old gpu supplier. Thats next. This is bloomberg. Taylor a new year, a new chip deal for apple. The iphone maker striking a deal with u. K. Chip designer , Imagination Technology. The deal revives a relationship and had all but ended when apple started making its own chips back in 2017. For more, lets bring in Bloomberg Technologys mark gurman, who covers apple. Mark, what do you know about the old and the new deal . Mark some context here, when youre building a phone or an apple tv or a watch or an ipad, this is very much simplified. Theres two main types of chips you want in those devices, a cpu, which is the main processor, you want a gpu, which is the graphics processor. Since 2014, apple sourced gpu designs from Imagination Technologies. They basically put that to use when they started designing their own gpus, and the Company Stock price plummeted to the point they had to sell themselves to a chinese equity firm. Now, it seems like apple wants Imagination Technologies to come back into the fold, whether they own some patents for key technologies that apple is not able to design itself or not paying royalties to. So theyre striking a new deal with them and its to be seen how long this one lasts for. Taylor mark, i have to ask why. You said in 2014, apple went to its own chips and its this company. Now theyre going back. Is this a new vote of confidence in the company, or worries about apples own chips, or none of the above . Mark you know, i think its a mix of things, right . I dont think this has to do with apple worrying about its own components. Theyre pretty much at this point leading the industry in terms of their own inhouse chip efforts. What Imagination Technology likely has its key patents that apple figured its going to need to pay royalties on. It would be cheaper for them within a few years if they just struck a longerterm royalty deal rather than pay them on an individual device bases or deal with a public lawsuit like they did with this company a couple years ago. Taylor and mark, what types of patents are we looking at, ai, 5g . What do we think those are . Mark this is stuff related to Computer Vision and ar specifically. Theres this new technology by Imagination Technologies that is pioneering in the u. K. , which really helps with the clarity and the Processing Power that ar devices can have. Some of these patents can be beneficial from that perspective as well, but also, Imagination Technologies is particular to gpus and phones. They have a lot of patents apple could find useful. I dont think they will use any Technology Straight from imagination. They are developing it themselves inhouse. They just dont want to pay the big bucks the royalty feed would require. Taylor and if they do, how soon would we start to see this technology . Are we looking at next september 5g phones or later off . Mark yeah, i dont think this has anything to do with 5g. This would be later off, ar related technology. Its very possible this could be stuff we arent even going to notice is new. Its stuff that Imagination Technologies could be threatening to take apple to court over already behind the scenes. Remember, this is not a Public Company anymore, so a lot of this can happen sort of under the table. So it make sense for a number of reasons why apple would want to come to this agreement. I would be shocked if we saw any new big announcement specifically related to this tech. Taylor bloombergs mark gurman, thanks for breaking it down for us and thank you for joining. Coming up, teslas turnaround continues. Can they raise their targets by more than 100 . Well talk to