Charleston church. He showed no remorse or reaction as the sentence was announced. It will take years of appeals before the execution. Global news 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. I am haidi lun. Bloomberg technology is next. Caroline this is Bloomberg Technology. The president elect meets the trust press. Talking on everything from russian hacking to the media itself. What are impacts on the tech sector as the Affordable Care act is repealed . We will assess. Hitugly allegations samsungs leadership. Why the new bosses getting his day in court. But first, to the lead. In the first formal News Conference since winning the election president elect donald trump tackled one of the most controversial issues plaguing his administration, russian hacking. Role ofalked about the russia. And did so again in these remarks. Hacking i think it was russia but we get hacked by other countries and other people. If putin likes donald trump, i consider that an acid, not a liability. We had a horrible relationship with russia. Russia can help us fight isis. Charlie caroline on twitter he slammed Media Outlets that reported it and compared it to leaked compared linked intelligence to nazi germany. Great to have you on the show. What have we learned in terms of trumps views about whether the was behindernment the attack. We learned that trump admitted that russia was involved in the hacking attack. Although he went on to say that some others have been involved in hacking attacks which is true but this you at hand is to what the degree the russian government meddled in elections and what the response will be. Caroline it was fascinating. All of this has been very much in the spotlight because of some reports that potentially russia has a file on trump himself. They looked at that nonsense that was released by maybe the intelligence agencies, who knows . But maybe the intelligence agencies which would be a tremendous blot on their record if they did that. A tremendous blot. Because a thing like that should have never been written. It should never have been had and it should certainly never have been released. Caroline i looked at that nonsense. What else did we learn about this particular media storm . Chris it is important to separate some of these issues. There is a memo going around with unsubstantiated accusations about trump and his associates and business dealings in russia. There is the hacking that took place. Has given the Trump Administration of weapon in which to downplay any of the legitimate concerns, any of the legitimate investigative lines of questions that there are. At the press conference there were questions that were trying to be asked but trump obviously wanted to not engage in those questions and lump everything together as being fabrications in this memo. What we know is that there are legitimate lines of questioning an investigation into the hacking attacks that remain on the unanswered. Caroline he seemed to be rather confident that if he was hacked it happened when he was president. Why is he showing such confidence in this respect . Tois it has been a mystery the degree that he has been differential to russia and vladimir putin. In the press conference he said it both ways. He said wouldnt it be great if we had a great relationship with russia and if we do not, that is ok. He went on to say that there probably will not be russian hacking when his Administration Takes over. Which i do not think there is any credibility to that statement. The russian government has been heking u. S. Institutions, was political groups for years and there is no indication that will change under the Trump Administration. Caroline maybe some false hope there. Thanks as always. This theme. Ith turning to the hacking itself, the fbi and others in the u. S. Intelligence have linked the dnc rate breach to a group of hackers they say are backed by the russian government. That group is known by some as 28. Y bear or apt with Additional Information on the groups work. A great body of work that you have done and amazing activity that the socalled fancy bear half. Walk us through what you try to build upon in this new report. Before this back became the political hot rod, we were profiling this group that we call a pt 28 and are treated their actions to the russian government as the sponsor. We have seen a variety of targets. Everything from journalists in chechnya to the elections and the dnc and the world antidoping organization, the same entity that put the ban on russian athletes. A friday of targets we have seen this group go after. They have done it in a couple of ways. They will breach the Networks Using malware so software used maliciously to get into a hack into email. We are seeing another side of these operations that play out on wikileaks and d. C. Links. This is when the troves of email have come out that change the company conversation. It is the combination to change the narrative through the leaked data that has been so powerful and the arsenal of what apt 28 has been doing especially in the u. S. In 2016. Caroline using social media as a means to do this. Is there a risk that this is still going on . A much could the u. S. Government and the german governments be compromised . Just going is not on. The group behind this is innovating and they are taking it to europe next. We will see this continue to occur on policy issues in the u. S. The elections were one of variety of targets that this group has gone after. When we look at the Upcoming Elections in the netherlands and france and germany, we are seeing the same mechanism. Shtagsy to get hastag trending. A focused ability to change how the robbers nation in the press plays out. This group is that this group is attuned to. They do this reflexively. They do not need to change the malware. They need to change the flavor of how the get their message out. That is what is so powerful here and also easy to deny. Was itnarrative changes, just a sense of what needed to be reported on or was it actually operations . There are clear intentional operations with the frantic behind it that link back to a russian governmentsponsored effort. Caroline could you eliminate for us how you track this to who they are sponsored . Laura there are hallmarks within the software that give us a few of these indications. The compile times, the marks that show when malware was built continue to go back to the utc that moscow is in and over 90 of the samples online to the working hours 90 5 p. M. When this malware was compiled. We also see the marks of a really well resourced effort. The malware that has been built shows certain techniques to try to evade detection so that people researching the malware cannot unpack it and understand it as well. These are the types of telltale signs of the people im this, the developers are thinking about how to do it. Their resource. Dying tools just online for 300 and applying them. This is a state effort that takes years of thought, years of planning, and the targets themselves say so much about this. The combination of caucus georgia, agencies in defense attaches, ministers of foreign affairs, these are the types of targets that show a state interest. With the totality of that evidence that is what has led us to believe that the russian government is the likely sponsor of the group. Idea hackersad no kept a 9to5 regime. Give us the idea of what you are doing, the light your shining on this. Is this a game of whack a mole or can something be done to tackle the vulnerability . Isra the line between hacking and aggressive measures that interfere with the internal memory actions of the state. What is sovereignty in cyberspace and we consider cyberspace or do we consider information space, that is the question between russia and the u. S. Havean chinese governments and chinese governments have consider this definition of how they considered this domain. On the u. S. Side and other nato come desk countries they have thought about this in terms of 1s and zeros. The implications of choosing either mentality . Caroline when we hear from president elect donald trump thing he does not think he will be attacked while he is president in terms of cyber security, should we be believing him or pouring cold water over it . Laura it is a matter of when, not if. We have long seen a variety of different breaches with that they are on the department of Defense Networks or against companies. What has changed is the type of actors and the type of venture 10. What has not changed is the predilection for rival countries and for statesponsored efforts to go after key government targets in the u. S. I would be surprised of that changes in 2017. Caroline europe that makes for fascinating reading. Your report makes for fascinating reading. While trump is claiming he is the victim of fake news, facebook is helping curb it. Then asked a project that will mediae partnerships with companies and better efforts to educate users on how to avoid them. The Journalism Project follows a year of debate over facebooks role in the media. They faced questions whether it was biased in the way it presents news to users. Members of the media will be updated on the efforts on the new facebook Journalism Project page. 2016 proved to be a banner year for enter capital fundraising. We will dig into the numbers. This is bloomberg. Caroline southeast asias most valuable set up picked Goldman Sachs to beat an ipo that could affect 1 billion valuation. Provider plans to select additional banks as soon as this month and the company is considering listing in the u. S. Theure Capital Funds in u. S. Received the most money in 2016 since the booming. Com bubble. Last year, the venture industry raised under 14 42 billion according to a new report. Are slow to realize returns. Venture firms participated in over 8000 deals, a significant drop compared to the 10,000 plus deals in the previous two years. Us. Joining thinking thank you for your time. We want to get to the bottom of this. Is there a bubble, is there a bottleneck that is growing here . When we look at the data now that we have had the Fourth Quarter did come data compiled, there are three Key Takeaways as you mentioned. You have the investment care back, what we hear from our members, it was more of a normalization back to rational levels. A lot less than what we saw in 2015. As your graphic shows, 2015 was the peak of the last decade or more. We look at the amount of money that was raised right the funds we have optimistic view of the future that entrepreneurs will have an opportunity to get investments, to get the capital they need to start and grow great companies. As you pointed out, the ipo is where we need the help. And hopefully in washington we can do it we need to do to make changes so that there are more ipos. Caroline what changes are needed . Guest the jobs act that was passed is a great step. It had things like the confidential filing and testing the waters divisions and we hear from startups that that has been important to them. We need to sit down frankly with others that are a part of the ecosystem and figure out what the next best steps would be. We do not pretend to have all the answers but we are committed to working with whether it is exchanges or the investment banks. To theoo important economy of the u. S. To make sure have another option for an it, not just a merger in a position, but an opportunity to go on to the public markets. Caroline within your reports you mentioned traps some of the valuations of the startups are worrying as to whether they would be achievable in the public market. I you flagging the likes of snap . Not talk about individual portfolios. It is important that we have great experience for these companies that are going out. A lot of people on the pipeline sitting on the sidelines will be watching to see even as a positive experience for these first ones that go out the door and go on to the public markets. That will be important. Fairly healthy pipeline and there is a lot of optimism from our members that we could see more ipos this year than certainly we saw this past year. Caroline talking about the funding for the startups preipo, you say they are traps coming back down to more rational levels. Is there an element that the startups are wanting to high valuations at that point, are they not finding the balance or is there not many Good Companies to beginning into that slowed the pace down slightly . Guest there is a correlation with the high find fundraising efforts. You might have less time to spend looking at a lot of first financings. When you look at those first financings, you see that that number is down. It is part of the larger story. Venture had several firms that say we are happy to take our time. We are glad to see some of the valuations come down. We can get back to the way that we are more comfortable doing business, take our time, dude our Due Diligence and make sure we are making the right investments and backing the best companies that we can. Caroline 42 billion pouring into bench funds, will that slow in 2017 after other assets are doing well and is there worrying consolidatedeen into too few hands . Guest some of the bigger forms firms are raising bigger funds. Seven funds were raised at 1 billion and more. That is a lot bigger than the historical Venture Capital numbers. I think you can see changes in the venture industry. It continued to see bigger firms ring Different Service models to the ecosystem. They are going to learn new ways to deploy the capital to the right entrepreneurs to make successful businesses. We see changes with more micro on board and making institutional seed investing more of its own specialized asset class with adventure. Caroline thank you for your time. Coming up, after a strong start to the year, the coin is taking a big fall. We will explain what is behind the slide. This is bloomberg. Caplima caroline snapchat says it has 150 million users which has been inspired by the competition. Instagram will start the test in a few weeks with 30 clients including nike and capital one. The maker of the wearable fitness tracker fitbit halted production in december because the devices were piling up at retailers and supplies and amid disappointing sales. Its salesr it cut forecast for the crucial holiday season. The ceo told us last week he remained confident in the product. What help this remain a leader is the brand fitbit stands for health and fitness. We build a lot of loyalty over the years. The fact that we are Cross Platform we have a broad selection of products with different price pat points and long battery life. We have a huge committee of users. We have shipped over 50 million devices and that User Community competitive mode for us over the years. Caroline they did respond about the latest report. The change will come by the end of the year. The last fewing months, bitcoin is falling. Ore than 16 chinese authorities are turning their oversight of digital currency. To check into a particular chart. As we see it here, were looking at how we have almost over the past few months seen record highs overall for bitcoin. Coming back to what we have not seen in several years. A sudden fall off. You see a downward turn. Beady eye. Sting its falling and rising and in blue, the chinese yuan. You have seen money pouring into bitcoin. Bit oftter of deappreciation. New areas too find make into assets. The Health Care Tech industry has grown dramatically since obama care past. Passed. Youre watching Bloomberg Technology. Thats get you started with a check of the first word news. This is the first time such a swap occurred after decades of reunification talks. The number of asylumseekers arriving in germany plunge last year. The government figures about 280,000, far below the 800,000 2015. Ught asylum in a new report from the u. S. Government finds Afghan Security forces still not incapable of securing the countries themselves. An official warns the country needs a stable security environment to prevent it from again becoming attracted to al qaeda and other militants. Been detained in brussels in connection to the attacks and paris in 2015 that left 130 people dead. The city was rocked by a series of coordinated terror attacks at a football stadium, restaurant, conference. During a in nigerian state governor says eight agencies are profiting from funds meant to help refugees from the islamic uprising and to leave the country. The christendom follows charges by nigerias president that the u. N. And private agencies are to boost funding. Global news 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. This is bloomberg. 9 30 thursday morning in sydney. We have a down not quite closing at 20,000, just 50 points away at the close prayed lets look at how the asian market is setting up at the open with paul allen. 9 30 thursday morning in sydney. Paul new zealand has been up and running for 90 minutes so far. Its already off 1 4 of 1 . Nikkei futures looking mixed at the moment as the market waits on earnings. We are expecting a positive start on the asx, futures pointing out 3 10 of 1 . We will be watching the gold space is gold pushes towards 1200 an ounce on u. S. Dollar weakness straight on the subject of u. S. Dollar weakness, check out the aussie dollar. Pinpoint they much moment that donald trump started his press conference. Samsung will be in focus today, the vicechairman set to appear in front of special prosecutors in seoul, answering allegations that south koreas largest conglomerate paid to gain support for merger of affiliates. Japan, were waiting on november, a balance of payments and the trade balance as well. Im paul allen in sydney. More from Bloomberg Technology next. This is Bloomberg Technology. Im caroline hyde. President elect donald trump said he would repeal the Affordable Care act speaking at wednesday. Erence on we explore the changes in the industry under the Ground Breaking law. We will bring you that data in just a moment. Lets get on to some ke