Has a reason to dance, and apple hits more milestones, plus highlights with team monster. Our top story, the Trump Administration is imposing new sanctions on iran, retaliation for the attack on u. S. Military bases. The sanctions target the steel industry, as well as eight senior officials. While adversaries did not get into traditional military war, they continue cyber warfare remains. Cybersecurity film dragos published a report highlighting hostile hacking activity by an Iranian Group against u. S. Power suppliers. For more we have the president of gullah tech adventures, prior to that he was a hacker for the nsa. With me in the studio is the proof point executive vice president. Ryan, let me start with you. What increases have you seen coming from iran targeting the u. S. . Ryan we have seen the continuation of campaigns at they were already running. Perhaps the most interesting thing we saw was we saw some of them move from diplomatic targets, Public Policy targets and government targets, the classic intelligence gathering activities, to targets of civilian organizations, particularly lifesciences. Emily ron, what do you see as the path of least resistance for iran to do the most damage on the u. S. . Ron iran can talk or target soft targets, people like you and me, Small Businesses and corporations. Anybody out there who is the gate about protecting themselves, they need to think about their connections to the cloud and what they can do to increase cyber hygiene. Taylor you mentioned to civilian targets. A little bit of a shift in strategy. What do you mean when you say civilian targets . ,yan private corporations instead of ngos or policy organizations, or Something Like government entities. When you put yourself in the shoes of the iranians, they are about the deal with much tighter sanctions. They have to provide things like essential medicine to their population, so it would make sense to target life science groups. Taylor when you look at sort of the access to u. S. Utilities, is that sort of a very classic way in which they could do harm, creating chaos via a blackout for example . Ryan the russians have used that playbook against ukraine. The iranians, we have seen targeting utilities over a fairly extended period, and they have done destructive attacks. That has not translated necessarily into actually taking power grids offline, that would be a different level of expertise, but all those things are on the table when it comes to planning for defending. Taylor ron, you seem to take a different point of view that perhaps we wouldnt see a mass blackout type of scenario. Why do you think that . Options when many it comes to taking action in cyberspace. If they did Something Like attack the city of baltimore, the city of atlanta and claim credit for it, they will invite a strong response from the u. S. And i do not think they will do that. Having said that, their goals are going to be gathering information and intelligence about u. S. Policy. So anybody who is a vendor for the u. S. Or working with the u. S. Government, they are potentially a target and they should be getting a second look at their cyber defenses. Taylor that brings us back to ryan. As they look at going back to their cyber defenses, what do you recommend the corporations, even people perhaps, what can they do . Ryan look at what the iranians are good at. They are good at social engineering, excellent at running phishing campaigns. They are very compelling, the sort of things people will click on, were they not aware of the threat that the attachments to emails may pose. They have also hammered on cloud services. The iranian playbook is similar to the cyber criminal playbook in general. Ron is spot on, everybody should be concerned, but the things you would do to defend against iranian attacks work in general. The other thing i will point out securityrt of homeland has fantastic advice on how to keep yourself safe, one thing was offline backups. The same thing we heard about in the ransomware crisis, that has affected cities and organizations around the country, it is a way to prepare yourself for a potentially destructive malware attack. Taylor ron, what do you think of, should the u. S. Start hacking back . How do governments and corporations what are the ways for them to brace for a potential iranian cyber warfare . Ron i do not think we really know what cyber warfare looks like. If compare their abilities with the u. S. , President Trump, after the drone was shot down, we took offense of action as reported. That is different from the cap abilities of iran. They target businesses and corporations. That is where us as u. S. Citizens can have an impact, by controlling what is on her own network. Ryan, thank you both for joining me. And coming up, the first phase is about to be done, we break down what to expect in next weeks trade deal and what is left for phase two. Check us out on the radio, you can listen on the bluebird app, bloomberg. Com and on sirius xm. This is bloomberg. Taylor President Trump says the u. S. And china will sign a historic phase one trade deal and the president s Economic Advisor laid out what this means for the Tech Industry when speaking to bloomberg on friday. We have tremendous amount of progress on intellectual property and the avoidance of theft and counterfeiting, a tremendous amount. And with respect to the transfer of technology, some progress has been made too, more will spill over into phase two. Taylor to take a look at phase one and what is to come, in new york, we have a senior fellow from the asia society, isaac stone fish. And Sarah Mcgregor. Let me start with you, sarah. We are still waiting on phase one, what are the odds we could see a potential for phase two . Sarah so the expectation is on wednesday of next week, on january 15, a chinese delegation, led by the top trade negotiator, will be in d. C. And assigned the phase one deal. We have heard that we should receive an actual text of what is in the deal. We have comments from people, likely just played at larry kudlow saying there are things on ip theft and detect transfers and other things, but we have not seen the nuts and bolts. So i think that is the first thing that we need to check off the list. After that, we see potentially the phase two part of the deal starting. That being said, donald trump said this week it may not come until after the election. So i think there is skepticism about if he is reelected, will that ever come, will the political motivation be there for him . Taylor isaac, your thoughts on what we have in phase one, and if it leads us closer to face two. Isaac i think it has to lead us closer because it is already going in that direction, but i also think we have a very little in phase one, it is like an agreement to have an agreement. And it seems pretty short on details. I also, with donald trump saying, maybe we have to wait until after the election, it really does seem to be a trust me, i am working hard for you, here is a little bit of a deal, vote for me and you will get more of a deal. We heard at larry kudlow taylor talking about getting big concessions from china with relationship to technology, like the ip theft, like the force to technology transfers. What specific details, as we know the devil is in the details when it comes to trade deals, what are you really looking for as it relates to those topics in phase one . Issue in may was a china had come back to the u. S. With a draft text and really scaled back on some of their commitments to codify into law changes that would help protect intellectual property of foreign companies, like those u. S. Companies working in china, and other commitments. It shrunk back from those. And there is a complex system there on how they codify the laws with many different layers. The u. S. Was not happy with what they were offering. So i think a key question, when people look at the text and learn about the details of chinese law, it will be whether they actually made a hard and fast commitment. If they do not live up to those commitments on ip theft or tech, what will be the repercussions . What is the enforcement mechanism in place so the u. S. Can say you are rolling back on these commitments you made . Taylor why has it been so difficult to get everyone on the same page when it comes to ip theft and the forced tech transfers . Isaac you have a couple countries with different interests. I think like it was with the u. S. And the u. K. 150 years ago, a lot of the best technologies are in the hands of American Companies and the Chinese Companies want to get their hands on that technology. And some of them use illegal means to do so. On the one hand, there are many people inside the communist party who want the country to be ruled more bylaws, as opposed to the party, but many at the top of the party feel like what the party says is what should matter. So if a certain company, if they are forcing a technology transfer, or actual ip theft, if it is in the interest of the party they think they should do it regardless of laws. Taylor when we came out of the phase one news, it was clear apple was the clear winner of tariffs on the iphone. So what other companies do you see really benefiting on the signing of phase one . Isaac i see tesla benefiting, because they are doubling down on their plants in china. That crazy dance elon did in shanghai. There are a lot of companies that have a lot at stake in this relationship and its less about the numbers, but more on whether or not the party and also chinese consumers a feelgood will toward of the company. We saw this with apple and the chinese tech giant huawei, when the canadians arrested the cfo, there were people who wanted to boycott apple. So there are issues about the goodwill that the chinese feel toward American Companies, and at the party feels toward American Companies, that could play out in interesting ways. Taylor sarah can you Cover Economic policy, does any of the u. S. Goodwill from American Companies help . We talked about tim cook having a good relationship, and elon musk over at tesla going to shanghai to try to build a factory, does any of that make a difference . Sarah i think it makes a difference on the Trump Administration we know that steve jobs, for instance, spent time at the white house and has met with donald trump, and for that reason apple has been able to escape the tariffs, get exclusions for instance, and that is an indication of the leverage some of these companies have. They of course want to keep access opening to the chinese market. The trade war started on the premise of the Trump Administration saying it was going to bat for businesses, trying to make it easier for them, when really i think what we are hearing from the companies now is there has been harm caused to them and they want the dust to settle more than it has been for the past couple years. So the push for a deal is part of the corporate lobby that the Trump Administration has of companies that want to keep their foot in china and expand. Isaac Sarah Mcgregor and stone fish, thank you. More employees is stepping down from google. We will find out what happened, next. Bloomberg technology is on twitter. Check us out at technology, follow our breaking news network on twitter at quick take. This is bloomberg. Taylor another shakeup at google, David Drummond is retiring at the end of january. He steps down following questions about his conduct at the tech giant. This comes after a recent departure of their founder, larry page. And sergei brain. He was the first lawyer for google, before shifting to alphabet in 2015. For more i am joined by mark bergen. What do we know about the departure . Mark this was a long time coming. David had been there for a long time. He was formidable in its early rise. He has been associated with the old school google, but more recently with their problems around men, in particular, and allegations of sexual harassment. So he was the top lawyer when the andy rubin dispute came out, the former head of android, when he left and a spirit of the google walkout. He has had issues with allegations with extramarital affairs, with a formal google employee. There are many women at google who are asking, why is he still around, what sign is it showing . Now a month later, david is stepping down. Taylor what does this tell us about google shifting strategy, perhaps taking a closer look at relationships conducted in the workplace . Is this a shift on a broader level . Mark i think there is external and internal pressure from their own employees and from the general public after the me too movement, a general consensus that this sort of baggage that the executives had was much more of a hindrance. David, like the founders, has taken a step back, he has retreated from daytoday operations. He was running and managing Google Ventures and capital g, their investment arms, as well as jigsaw, but he was not involved as much as he was a decade ago when he led their development and legal strategy. Taylor i think it brings up the bigger change given the shakeup and top management that we have seen. We sat here last year when sergey and larry step down, no offense, we said nobody cared because it was so clear of his strategy following in the steps of google. Is there that same kind of in the next generation of the legal team we had when the founders step down and we had so much confidence in the new ceo . Mark yes, he was a deputy under david for a long time and before that i think google has had the largest legal team of any company. This question is more around or the other parts of alphabet. So david german was everything not google. It is not name replacement, it is not clear if there will be one. It will be interesting to see if they appoint somebody to run what he was effectively doing, which was the legal and Corporative Development for everything from waymo to other divisions, if they think they need that, that executive level seat. Taylor mark will stay with us, because i want to talk about another google story. Stumble,ke of amazons google expands in new york city. It has added thousands of jobs inthe chelsea neighborhood 2006, without provoking much ire. Joining us to talk about this story is natalie wong. To talk about how google has navigated the landscape in the city, natalie, what did they learn from amazon in deciding to take a different approach . Natalie the lesson you can see in contrasting their approach to building an empire versus amazon is it takes time, you have to be incremental and you must look work with the local community. Google set up shop in the chelsea neighborhood in 2006, while it was gentrifying, but they least to the space first then started to buy up the real estate, expanding further, while working with the community in chelsea. Whereas amazon came in in a public way and did not really engage with the local community on the grounds of Long Island City and that was a hindrance to them when they had that critique against them when they announced they would set up shop there. Taylor we have a visual picture here of googles presence in new york, and there was a strategy that struck out to me, they are not building these big tall glass modern buildings. They are also taking a different monetary approach, not asking for subsidies. What do you make of those two strategies . Mark the first one is different from their headquarters in mountain view, they had these big ambitious plans a couple years ago and they hired an architect. They were going to do modular offices. It was like a google moonshot. And one is much more muted looking at the reaction to amazon, the backlash, google clearly wants to be as far away from that as possible. The other interesting thing about their strategy, when they initially got that large building in 2010 in new york, that was above the fiberoptic cables, so a lot of what they do is they think about how are we going to actually work this with their data center, piping in internet as fast as possible. So there strategy depends on their datacenter use and the speed of their services. Taylor natalie, it is notable that they are not asking for subsidies, because that is where amazon was criticized, has that also been part of their take, we will not ask about subsidies either, we will go in, develop the neighborhood and work with local regulators . Natalie that has played a role in their success in manhattan. With amazon, subsidies did not work out well. And they Just Announced a big lese in hudson yards, around the same neighborhood as chelsea, where google is located and they signed a lease that will house 1500 workers without subsidies. Taylor natalie, what is your take on relationships with the politicians . We remember aoc, a strong critic who was outwardly bashing amazon. Has google done a better job with working with the regulators on the ground . Natalie it is important to cultivate local relationships, and we found out that google has worked closely with the community activists, the politicians and local organizers to make sure they get ahead of any issues or complaints before they come out to the public and there is a big outcry, as we saw with amazon. So for the most part they have avoided that public outcry with what they have done in chelsea, which in a way there has been gentrification since google came in, it is not perfect muslim local residents do complain that the local businesses are pushed out and employees, they are just in a big bubble, they come and go to work, they eat in the building and they do not spend money on the local businesses. So there are these critiques that the local residents mate, but for the most part it seems they are trying to work with the local community, the activists and politicians to make sure they stay ahead of these issues before they get out of control. Taylor market, new york is a clear number two to silicon tech hubsterms of tech cups . Mark you have seen a big presence in seattle, austin, google cloud is trying to cut deals with oil and gas companies. And i think that a lot of companies in Silicon Valley are aware of the price of real estate and housing prices here in the south bay, so i do not know where the second home will be. Taylor natalie and mark, thank you for joining us. Coming