To curb outflows. Variouse been studying scenarios and his looking at contingency plans. They ordered them to contemporarily convert holdings into a u. N. Into yuan. A quick look at what is going on market wise. Saying what is happening. Hang seng still languishing below the gain line. Stocks the chief performance up by 2 after playing catchup. I am caroline hyde. This is Bloomberg Technology. Cars and robots are leading the charge this year. We will follow the path to production as Driverless Cars make the turn from the labs to the showroom. Electric carmakers latest delivery numbers miss estimates. Chinas thirdbiggest Search Engine aims to take on its leader, targeting a 5 billion ipo. Details behind the plans to go public. Now, c. S. Kicks off this week and it will be a convergence of detroit and Silicon Valley. It is a critical time for Autonomous Cars to move from the testing phase to the mass audience. Names like google, ford, and gm are trying to put their best foot forward. Tesla moved lower in afterhours trading after the company came up short on production and delivery figures. Tesla sold about 20,000 cars in the last quarter, below analyst expectations. In 2016, the company produced nearly 84,000 vehicles and 74,000, also below company guides. Here in the studio, the tech entrepreneur and privacy advocate, he is now the managing partner of the newly launched firm heroic ventures and a guest host for the hour. These tesla numbers were pretty high and ambitious. Is it about not quite living up to these expectations . That is pretty much it. Elon musk had such ambitious targets for teslas growth, aiming to get to 500,000 vehicles in a couple more years. So many analysts and investors on wall street automatically start discounting those. They have achieved incredible things, even the growth this year. 50 on sales, 60 on production. Really impressive, just not as great as hoped for as he pushes them to achieve. Michael i agree, but elon musk is elon musk. We are lucky to be alive in the same generation he is in. You have to admire his moxie. He says we will reduce this number of cars, misses it by a little bit, but then he launches a rocket into space and lance it and lance lands it backward. He is pretty remarkable. He has the formula. I am a big believer in elon musk. Caroline full disclosure, i spent the weekend playing with the tesla x. Michael it has a 100 Approval Rating from consumers. It is all about the gull wing doors. Caroline it is amazing. As far as the market is concerned, this used to be a gadget where mobile was, and drones, but it seems to become an auto show no. Jamie it is one of the biggest auto shows in the world. An important day on the calendar every year. But it is still a gadget show and that it is cars and gadgets. Really cool infotainment things in the dash, or Autonomous Vehicles that are not ready for prime time or public roads, but people want to see it. It was two years ago this week that keith nautin was in las vegas and had dinner with mark fields and mark said, in five years we will have an Autonomous Car on the road. That raises still concealing ensuing. We are still on the backstretch, and a few years from anything hitting the market, but there is a lot of jockeying for position. Are you seeing some interesting new Software Companies . A lot of the Wealth Creation will be from the enabling technologies. Are you seeing interesting new Software Companies . Jamie supply is important to development. A lot of them are providing hardware and software while automakers try to develop their own os outside of google. Google is one, wemo is one. They have their project with chrysler and expanding to honda. Nvidia, delphi, mobileye, they are all key suppliers making it possible for the automakers that are not as big as toyota or gm to stay in the game and stay within breathing distance as a second mover, taking technology offtheshelf from the suppliers that have developed. Caroline that is what is fascinating, the joint ventures that seem to be going up. Dimer has been investing. Get was but by was bought by volkswagen. Michael there is a spin out from intel into nokia mapping technology. They Just Announced an amazing piece of news. Caroline they are now coowned by the big german carmakers. Wheres the money going . When youre looking at cs as a Venture Capitalist, do you want to be buying shares in old companies, like the detroit giants . Michael in terms of startups, dont think that Driverless Cars are Venture Capital friendly. It is cleantech for vc funds. Venture is about getting a lot of leverage under capital for a small amount of money. There is exciting opportunities for investors in the private markets. I believe it is one of the most exciting areas in 2017. It is called edge computing. There is so much big data in a specific car, that the wireless bandwidth to transmit and communicate back to the cloud is too intense. We have to have all of the data sitting on a computer in the car. There will be tens of billions of dollars of wealth created in the next two years around edge computing. Caroline this is where technology is going. Today has been such an area of focus in terms of the big giants of detroit. The push back they are getting from donald trump, president elect how are regulatory issues key for this growth . Jamie it is huge for the Auto Industry. Global trade. The Auto Industry is so twined with global trade, especially with mexico, post nafta. Also with japan, korea, europe. The threat from then candidate trump, and he said as president elect, and was tweeting again this morning about threatening g. M. With a big import tax if they bring small cars from mexico there are a lot of small cars being built in mexico. Those are not all for the u. S. , but a lot of them are. That would be disruptive on the flip side. They are looking at tax breaks for individuals, high earners who buy most of the cars in the u. S. They are looking at Corporate Tax reform and the possibility of seriously watering down, or maybe eliminating the fuel economy requirements, which as you remember, in 2008, they tried to double fuel efficiency. Those are facing a Midterm Review and are expected to be taken down quite a bit. Caroline from tech to regulation, what a changing landscape the Auto Companies face. Michael, sticking with me throughout the hour. Tune in, Bloomberg Television and ces coverage starting wednesday. We will have interviews with the likes of the aol ceo, the iac chairman, and reporting on the ground from our Bloomberg Technology team. Do not miss it. Bitcoins rally has a new year given a new lease on life . What is the high . Next. A reminder that all episodes of Bloomberg Technology are Live Streaming on twitter. Check us out on bloomberg tech tv. This is bloomberg. Caroline we continue to monitor the departures at twitter. Kathy chen is leaving after eight months on the job. She announced she is taking time to pursue more international opportunities. Chen was hired to seek out more advertising revenue and other business in china and taiwan. Michael maybe she will be working for the government . Caroline we will be debating that now. It looks like bitcoin still has room to run in this new year. The currency is valued at above 1000 for the first time in three years. My guest, who is already energized about moving doors at twitter, will be analyzing for us now the bitcoin movement. Up above 1000. What i want to know is bitcoin the key winner in crypto currencies . Michael so far, bitcoin is the whole action. 95 of what happens are bitcoin transactions. There are other things coming. There are dozens of crypto currencies that have launched. They are called altcurrencies. Only a couple have gained real traction. One viewers might now is ethereum. That is ongoing basis on coin base. There is another one called ripple. A crypto currency being put together in conjunction with a bunch of banks looking to do some more oversighted, understood collateral work together. There are others. There is one called monera which is fully anonymous, another one called zcash which is fully anonymous. The frontier is very much very powerful. Why is bitcoin so good . It is simple to understand. It looks like the dollar, it is a piece of script, it is tradable. That is a cheap limitation. The promise of the block chain is due to the fact that a token, or a coin, in the chain cannot only have a currency value treatable, but can have preset instructions. It can be a smart contract. You can preload the token with a set of rules to sell your shares in a certain way, to get married if we want to get married, it can have ifthen statements that are preloaded. Caroline they are rules. Michael everyone in the contract to know that it is self refuting and self realizing. There is a lot to be excited about with monero, and bitcoin. Bitcoin is the one that has the awareness of the public. Caroline china seems to be a real driver of trading in bitcoin. What has fostered the sudden resurgence to threeyear highs . Is it geopolitical risk . Is it the fact that the coin is being used more widely . That currency is open to deflation . Michael if i had to sit here and answer the question, i would say it is probably most a speculative. There could be geopolitical risk that people are buying bitcoin instead of gold. It was in favor for a while and got hot. Got too hot and people took money off the table. Now it is coming back in favor. The chinese and bitcoin are a big part of the puzzle. They are mining bitcoin and have so much control of the block chain that there is a sense of risk in the community that china could take control of the bitcoin currency. That worries some people on the frontier. There is also a sense that bitcoin is not truly anonymous. If you are a rebellious believer in the revolution of crypto currency, which you do not have to be, is that some of the more truly anonymous currencies like monero and zcash, are the way of the future. You have seen a 20 spike in the value of monero just in the last week. It is coming online in some of the more main stream alt currency exchanges. It is still very early days. Caroline rebellious, or not, if i am a believer that crypto currencies will eventually come, is 2017 finally the year when we see it become more widely adopted . Will it become something that everyone will know . Michael what is so amazing, the real missing part of the link, so far is when will crypto currency get wide practical adoption. It is still missing, even in San Francisco where i live, they used to and they dont. They used to be able to buy coffee in bitcoin. Why would you . Nobody knows. It is fun, it feels good. Now you cant. There has been a rollback of the applications. I think they are coming, as the banks in particular, as the clearinghouses in particular, start to bless the block train, and have all of these activities for the block chain. You will see more and more adoption. Does it change my daytoday life . No. Could you spend your life through the coin . No. I have met a lot of founders this year. One founder i met does not have a bank account, does not use checks or have credit cards, the only way to pay him his bitcoin. His entire Financial Life is crypto currency. Caroline that is rebellious indeed. Thank you. Coming up, the first day of trading this company is down 7 . We will hear from the ceo and how he plans to succeed as a standalone company. Next. This is bloomberg. Caroline conduit has officially launched as the Worlds LargestBusiness Services company, yet the stock price lunch. The first a of trading on the new york stock exchange. This after the Company Split from its previous partner. We are taking a portfolio approach to our business. We believe we have leadership positions in some areas we will continue to amplify. As we see those businesses that need to be part of conduent in the future, we will amplify them. Your competitors and crude include companies, there are so many, because it is such a wideranging services business. It is a wideranging business. We will stay focused on transportation where we have edge. Were number one and parking, number one in transit, number one in violations control, we are going to invest in convergence business. We think there is a huge convergence waiting to happen in the Health Care Space between insurers and providers. There is an amount of opportunity for some disruption and health care. We are very favorably positioned for investing. There are some businesses that we believe will not be as leverage a bow or leverageable or monetizeable. Some of those as we discover them, we will take different action on that. At this point in time, we are investing in all of the business lines we have. What is your hunch, what are the businesses you would focus less on . It is tough to say because we have only been listed today. It is the first a of the company. We have been at it for or months four months. That is something we will take a look at. What is your concern about the Overall Technology industry, the services industry, and the macro impact from the president of the United States next year and the political turmoil . The technology will continue to disrupt. We can see the b2b industry being disrupted by over and air being by uber and airbnb. I definitely think that having and domainability and functional knowledge supersedes having the technology capability. It is ultimately a commodity. We think that with the introduction and regulatory overhang, with the fact that they will have a healthier Business Environment as a result of that or reduced in for structured spending, that is a big space for us whether it is in transit. It will be a quick seller for us in the years to come. Walls or barriers are erected, there is a backlash. 80 of my revenue is from the United States, 15 from europe. I feel confident we are in the right industry with the right mix of services. We will have a wide base in a fast growing industry. Carl icahn has as much as a 9 stake in the company, and he was instrumental in this spinoff to begin with. What has he spoken with you about . Mr. Icahn has three representatives on our board. We are in touch with him and his Board Members like we are with every other large investor. For us, it is for us to demonstrate performance and i think that is what we intend to do. One of the first milestones is getting listed on the nyse. Your quoted talking about a 10k Margin Expansion and 700 million in cost savings in a 2018. Green capital says it is not really a slamdunk. How would you intend to prove green wrong . We are not saying it is a slamdunk. It requires a lot of effort and it will be done in a delicate fashion. We are already on it. Last quarter, we showed a 50 basis point margin improvement, as well as the action we have taken so far. We are confident that we have a plan. We have the confidence and execute in the plan. It is not a slamdunk. We will be able to show the results. Caroline that was conduent ceo speaking with vonnie quinn. As we mentioned earlier, it is a huge week for the Auto Industry. Here are a few more headlines catching our attention. Chrysler unveiled a batterypowered minivan. It has a 250 mile electric range. Software would take care of most of the driving, however it is a concept car and there is no guarantee it will ever be built. Intel is seeking to buy a stake in a consortium that is jointly earned owned by german automakers. They must pass the german antitrust inquiry before the sale can succeed. They will receive the application in one month after time. Ford announced it is canceling plans to build it 1. 6 billion plant in mexico. Instead, it will spend 700 million expanding an existing plant in michigan. Speaking earlier on bloomberg, the ceo mark fields explains fords dominance in the hybrid and electric market. We are the number one seller of plugin hybrids today and the number two seller overall for electrified vehicles. We want to build on that. Keep in mind that we only talked about seven of the 13 electrified vehicles that are coming. There is more to come. Caroline still to come, the top Tech Products to watch out for at the industries biggest tradeshow of the year. A sneak peek at ces 2017 before it takes over las vegas this week. Is 2 30 p. M. In japan. I Rishaad Salamat with an update of our top stories. Japanese Prime Minister is talking. They the government economy will be his governments top priority. Giving his new years address, saying his team will continue. Sector,service according to nikkei dyadic, the reading coming in a faction better. That was the First Manufacturing slowdown in the year as the crackdown on cash hits demand in the country. There is clear evidence russian interference in the president ial the president elect tweeted the intelligence briefing has been delayed which he said was strange. There was clear evidence the russians were interfering in the election. Im not going to reveal the contents of that report. It is still under seal. It will be provided to the president and others when appropriate. It will address what russia was doing, how it was doing it, and how we know that. Is Bloomberg News we have the world covered. Lets look at what is going on as far as the trading day. Asiare is the picture in following the chair from wall street. All Industry Groups in the green. We do have japanese shares leading the charge, up about 2. 4 as the afte