Meantime, in london, hundreds gathered in front of the u. S. Embassy to protest the inauguration. Both umplet k. And u. S. Protesters say theyre concerned with the way the new president seems to be taking u. S. Government policy. There were similar protests in germany. The senate has the votes to confirm james mattis as the secretary of defense. The Senate Armed Services committee already voted in favor of the retired army general james mathis this week. Mr. Trump signed legislation allowing mathis to run the pentagon. Global news 24 hours a day, powered by more than 2,600 journalists and analysts in over 120 countries. This is bloomberg. Caroline i am Caroline Hyde and this is bloomberg technology. Coming up, it is official, donald trump is americas 45th president. Well break down the historic Inauguration Day and what trump means for tech. Plus, apple bites back. The most valuable company in the world sues qualcomm over patent royalties. And snap hits the road with a pitch. But first, to our lead. A new era in the United States. Inauguration day for donald j. Trump. The new york businessman has become president of the United States. Hes already signing orders nominating his new cabinet. Here to break down the details is kevin. Kevin, we have been watching all of todays events, there was some lip service paid to technologies of tomorrow. But what was key to you . He is vowing to immediately get to work during a very short inauguration address. He vowed to get the ball rolling on a host of issues from rolling ack key regulations like a regulatory issues like doddfrank, increasing infrastructure spending, and lowering taxes for the middle class he vowed to be president for all americans, but again speaking in his signature tone he presented himself as a political outsider and someone who transcends political party. And then of course in classic trump fashion he ened up he ended with, he promised to make America Great again. Caroline how did this resonate with the American Public . I was on capitol hill and speaking with key aides to democratic members. It was a particularly partisan speech. Democrats are already organizing in terms of how to serve as the Opposition Party to President Trump. On monday, Rex Tillerson, his secretary of defense nominee, will get voted on. Theyre quite, you know, pessimistic about their chances of blocking any of trumps nominees. That being said, republicans like with what they heard but there are several issues, most notably trumps position on the tans pacific partnership, which he opposes, that republicans are divided on. Itll be interesting to see whether or not and for how long if they do republicans fall in line behind this new scradmrgs or if we start to notice divisions between the tea party and more establishment type of republicans. Caroline an antiestablishment call from the speech. Well be digging into what trump means for tech later in the show. But first, to a clash of two tech titans. Apple has filed a lawsuit accusing qualcomm of monopolizing the market for chips used in wallet devices. Its speaking money that they say qualcomm withheld. This marks the first direct challenge to qualcomm by one of its biggest customers. A great piece out today moving the market, first you, ian, it was earlier week now apple suing emind us what this is about. The fundamentals of qualcomms business is it gets its profit from patents. If you make a phone, you pay qualcomm. Thats what this is all about. Thats the fundamentals. Apple doesnt like that and is trying to do something about that. Caroline it feels they pay too much because the percentage is based on the cost of the phone and not the cost of the part. What does apple want to achieve by suing qualcomm . Apple is saying qualcomm withheld money from it, big numbers, that it agrowed to pay apple in return for apple not talking to Law Enforcement or regulatory authorities as part of the agreement that qualcomm claims apple signed. Apple said, if youre subpoenaed by regulatory authorities, were only doing what is right an just. Thats what is at heart here. What apple wants is in a broader business case, business model, apple tries to have more than one supplier, that allows them to play them against each other, get lower prices and until last year, until the iphone 7, qualcomm dominated that. Caroline who wins out of this . It seems apple does not just ave to go to qualcomm. All of these licensing fees gave qualcomm a huge lead. That is getting whittled away. There is a potential for a market share shift there. But if you look at qualcomms gross market of 50 and apples s 140. Is sub40 . What apple wants a a transference there. At this moment when iphone sales have declined this efirst ke decline since they came to market 10 years ago, that puts extra emphasis on how much money they can squeeze out of every single hand seth. They want recurring revenue for phones and if they can squeeze the Profit Margins higher, thats important too. Caroline is this something we might see with others coming out and sue . Back to the conjecture of who is behind all of this, its no secret that korea, south korea, the most strident to come out so far is home to samsung electronics, lg, qualcomms Third Largest customer. Its not difficult to imagine that hand set makers throughout the world would like a better arrangement with qualcomm. Caroline well be waiting to see how qualcomm responds they havent yet. How much is cause for concern about the billion dollars being withheld . Obviously 1 billion for apple is a lot of money but they make a lot more. Possibly the element is, program down right now, strike that down and trito claim advantage while you can. This is tim cooks apple, built the business on an extremely good and efficient supply chain. Trying to, as we said, squeeze everything out of the supplies is key to the way he runs the company. We just talked to people to get their take on this theyre like, this is a negotiation. Qualcomm tends to win legal cases, take years and years. Theres no immediate benefit to anybody here unless they can settle, unless they can settle rates. Er license caroline well be taking a look at qualcomms market cap. That was a great scoop, thanks for coming on and telling us about it. Late they are hour, a big bloomberg scoop, snapchat is revealing key metrics to key investors and showing how much users are addicted to the app. Details later. As we head to break, heres a live shot of the inaugural parade in washington. This is bloomberg. Caroline amid the rainbows here in san francisco, at t is no longer on a losing streak. The number two carrier signed up new tv customers for the first time in seven quarters. They credited it its new live nline Video Service directv. Analysts were expecting less. At t introduced directv in november and charges 160 plus or channels. Donald trump paid lib service to the Tech Industry in his inauguration. President trump we stand at the birth of a new millennium, ready to unlock the mysteries of space, to free the earth from the miseries of ts and to harness the energies, industries, and technologies of omorrow. Caroline what is in store for the Tech Industry in the new administration . How big of a change will it be rom president obama . He was seen as the first fully digital president. Allen, i will start with you. Harness the technologies of tomorrow will we see an administration as open to Technology Changes as we saw under obama . I think its hard to predict anything about our new president. I hear what he says but you know , he says one thing one di, and then the same day will Say Something else. I really, weve got were living in an environment, were going to have a lot of new things happening that are already under way. The autonomous vehicle, robotics, a. I. , machine learning. All of those are going to have tremendous impact on in a positive basis. On the other hand, its going to have a dramatic impact i believe other time on employment and his ability and desire to put people back to work. So theyre two countervailing forces working against each other. I hear what he says and i dont think he comes with any particular background in this area, but itll be interesting to see what he initiates. He does have some involvement with some of the people out in sill condition valley. Dave, im sure, would have a better insight as to which technologies donald trump will be helpful with. Caroline dave, which technologies will he be helpful with . I dont know if hell be helpful with technology specifically. But hell create chaos and volatility. While that may not be great for the rest of america, in general its friendly to most entrepreneurs. We can react faster than most tra disal businesses ta there will be opportunities created. It sounds like theres a likelihood of repatriation of overseas capital, thats probably going to good for all. I think youll see more investment in companies and funds. And i have a feeling buzz of the relationship with jared curb never and his brother josh who is a v. C. , i hope theres a little conflict and some knowledge is pass aid long from him and my former boss peter tale as well. Caroline. Its odd we see a more positive environment coming from the performances from donald trump but on one side hes talking against the at ttime warner tieup. What do you think . I think its going to be a positive environment if the president implements the things hes talked about doing and if congress will support him on it. If they end up lowering taxes, if they do repatriation of enormous swells of capital that have been abroad for the last umpteen years, that augurs well m a activity. Ve corporations will have money, weve seen them do buybacks, i think acquisitions is a fertile area to put money to work. It could mean exits for startups you helped spoth. Its interest also the talk of trade. We heard allen there talk of its potentially the robots that are the key issues of job. How much are you worried about barriers an borders coming up . You know, there are concerns, i think theres concerns both in being able to sell to customers overseas and buy goods and integrate those. Theres concerns about immigration, potentially the new administration might have a tougher policy on letting entrepreneurs come to this country. I spent a lot of time with a bunch of people trying to put a startup visa to come together. Theres kind of a rule that will allow people to come in with 250k in capital but thats not really legislation yet. Theres questions about whether we can conduct trade freely both in the tech sector as well as more generally. I think theres probably concerns about the Regulatory Environment changing that could be for better or for worse, its not necessarily clear. You might see a lot of loosening of a lot of regulatory agencies that could be perceived as beneficial for Companies Going public put it could crow ate Consumer Privacy concerns as well. One of the things i take exception with on dave on is the market in general, meaning the business community, and i would include startups and anyone else involved in business activities, hates surprises. And what concerns me more than anything else as we look forward to the Public Markets and the private markets is will the mercurial that there wont be a confidence and a consistency of his program. If that happens, that causes people to hold on to their money and not to be as and to be reluctant to put it to work or to do startups and we dont know, you know, where were going frankly at this moment. Well see it pretty fast, i think. Caroline allen, are you worried about putting your money to work now therefore . Venture business has sur privated in all presidencies, high interest rates, low interest rates. Theres an enormous entrepreneurial wave going on in this country. I think it will be hard to stop it. On the other hand, there are exogenous events and activities that could be surprises. We dont know what the health this change in obamacare will do if the president really goes through with this and doesnt find a replacement, will that impact people who want to start up companies are afraid to leave . It sounds strange but their existing Health Care Programs that they have if they have to potentially restart something if you have preexisting conditions, although he said hell protect that, i think its all uncertainty at this point. Allen, youre staying with me for after the break, thank you, gentlemen. Because next we measure the prospects of Silicon Valley leaders throwing their hats in the political arena. As donald trump is officially sworn in as u. S. President , this is bloomberg. Caroline a revolving door in tech. Alex announce head will join uber after 15 years at google where he led the search tuition. He will serb as ubers Senior Vice President of engineering where he will head up the maps and Marketplace Division and work to scale up the selfdriving unit. Silicon valley leaders were among trumps most outspoken critics in the president ial campaign of now as trump come into power, could dissatisfied leaders turn angst into a run for Public Office . There are rumors that Mark Zuckerberg is grooming his public image for a potential run of his own. And one of the few to back trump may be eyeing a run for california governor. Joining us now, blomberg technologys sara and from new york, allen patrikoff. Sara, lets starts with you. Mark zuckerberg, his 2017 new years resolution has a political flavor to it. Absloutly. Hes going on travels to all 50 states, trying to keck with the people there. He was in dallas this week for the testimony in the ock ewe ulous trial and went to a rodeo, he toured a data center, hes trying to connect with the people. Now whether that means hes running for office, i think people forget that the u. S. Population is 320 million. The population of facebook is 1. 8 billion. Its important for him to shape his image as the leader of that as well. Ploy for not just a something larger. But he is trying to shape his legacy here. And absolutely we could see him have much more involvement in government. Caroline allen, i want to get your view on the lines between washington an Silicon Valley, the connection there. Weve seen actually the top five Tech Companies pay more in lobbying than the banks have been mt. Past few years. Are they talking to each other seamlessly do you think . I dont think so. Not yet at least. We just invested in a Newsletter Company with the three main people who came out politico and one of the purposes of this is to have a newsletter system that connects people out in Silicon Valley with whats going on in washington. Hopefully be an interface to explaining what thats all about and vice versa, by the way. Because there has been a lack of total understanding between the two communities and so i, you know, again, i dont know what the president has in mind. I know theres certainly a lot of very talented people out in Silicon Valley who are politically motivated at this moment in time buzz of frustration over what the outcome was of the election. It would not at all surprise me. There are people in new york and the rest of the country who are also forming entities and frming conversations to what should be done during the next 180 days and what should be done in the next four years. Caroline we saw pictures of one politically motivated man who was on trumps side, peter teal. We heard theres potential he could be running for governor of california. Is he building bridges between the two sides, Silicon Valley and washington . Ive heard other things too, i heard he might be ambassador to jer germany. So i think that teal , he told the New York Times he doesnt want a position in the Trump Administration but i dont think that that i think that weve seen other the last year that he does really care about the shape that policies take. And would like to get more involved. And so i think that would be really interesting outcome, especially considering his comments recently that he would be cool with californias secession. Caroline always a slightly offside take. Con trarne always. Caroline great way of putting it. Lastly, in terms weve seen the waves of those high in office come to Silicon Valley to take roles, condoleezza rice, colin powell, weve seen the Campaign Manager of obama come to work with uber and the suck everyberg foundation. Any chance obama could be coming this way . Is that an obvious track . I think ill take him at face value. All the pronouncements hes made the last week and last month is he is going to become, he is not going to sit on the sidelines from a political standpoint. Hes going to comment on whats happening, and be, you might say a shadow cabinet of one to what happens and not just stand by and observe. I think hes very definitely, and i dont know this personal knowledge, but everything i read is he is not going to be a passive, like some other president s have been, just taking that as a position. Caroline allen, thank you very much indeed. Thank you for your time. Sar remark thank you also for joining us. Coming up, well continue our conversation on the biggest implications for the Tech Industry under President Trump. This is bloomberg. Lets begin with a check of your first word news. President donald trump plarninged flanked by first lady melania and other family members took the oath of office on capitol hill at noon today. In his inaugural address , he reiterated promises he made on the campaign trail. From this day forward a new vision will govern our land. From this day forward, its going to be only america first. America firs