Coming on it hundred 12 million less than the 859 million estimate by analysts. The senate has confirmed Jeff Sessions as attorney general after more than a day of contentious debates. Democrats at the alabama senator was too close to President Trump and would not protect voting and several rights. Global news. 24 hours a day. Powered by more than 2600 journalists and analysts in more than 120 countries. Lets not get a check of the markets. Hang seng index up. 04 . Coming up, intel places at 7 billion chip. Why the president ial bid in arizona is not as fresh as it may seem. Plus, apple hits refresh on its television dreams as the tech giant poaches the head of amazon fire tv. And akamai takes a tumble despite solid Revenue Growth. Why investors are looking beyond the latest earnings reports. First, intel says it will spend 7 billion on a Production Facility in arizona. The announcement came amid a meeting between the intel ceo and President Trump at the white house. It will expand intels presence in arizona and will create 3000 jobs. Yet, the investment was included in its Capital Spending forecast. And construction had already started. So, why the announcement now . Bloomberg editor at large cory johnson caught up with stacy smith and asked him why the companys focused on building in the u. S. If you think about our footprint as a company. To put us in perspective, we tend to be among one, two or three in terms of capital and ing every year, terms of r d every year, so we are huge. The majority of that investment is in the u. S. The majority of it is here in the u. S. The reasons we invest in the u. S. Is first and foremost, we can hire great people here. We have really good infrastructure. We have access to worldwide markets. While we build our capacity in the u. S. , 80 of our sales are outside the u. S. So that is really important. We do all that against a disincentive of the u. S. Has among the highest tax rates in the world. And so, were actually disadvantaged relative to our competitors in korea or taiwan. And that is a place where we are working closely with the administration to try to get more proinvestment policy, such that it makes more sense for us to continue to make these kinds of investments here. Cory is 8 billion about the price tag on the top of the line plant . Yeah, we are starting with a shell. We have some work to do and then to outfit it and get it into full production is another 7 billion. If we were starting from just a piece of land, youre probably in excess of 10 billion to build one of these factories. Cory the time horizon i visited a factory in hillsboro. It was two years ago. It is jawdropping. I wonder in terms of the time that it takes. You have to shell, but if he were to start with vacant land to complete this kind of fab how long does it take . It is kind of from start to finish, depending on where you are it is 34 years. It can be more than four years. To put it in perspective, in addition to the direct employment we are creating for intel, these are among the largest Construction Projects on the planet. As you said, this one already has a shell. We will still have 3000 construction employees getting this thing ready to production. They are just enormous. And the impact they have on communities is also enormous. Cory it strikes me there is irony, perhaps. Here you have intel where andy grove, himself a refugee and a founder of intel, and at the same time the Federal District court in the bay area is debating this immigration ban. And then you have brian, your ceo, at the white house today with President Trump. And i wonder what is intels, how much does intel need immigrant labor or even labor for refugees around the world . How important is it at intel historically and how important is it today . It is very important for us to be able to hire the best talent all around the world. R and d that we use, we are d that we use, we are solving them of the most most complex problems on the planet. To put this in perspective, intel is not political. We engage with democratic and republican administrations. Depending on the issue, in some places we agree. Here we are in agreement over what they are trying to do around the tax and investment policy. And other places, we disagree. Issues around immigration and being able to hire the best talent. We made that clear to the administration. So, we engage on issues, not necessarily down political life. Political lines. Our issues are investment, being able to hire the best talent, being able to build and the u. S. And export around the world and make the kinds of investments that make is a great company. Cory talking about intels use of h1b visas. And how important that is to you. Could that be simpler than it has been in the past . It comes back to that simple concept of we need to be able to hire the best talent in the world. As you know, in many cases, the phds, you have people that come in from overseas to get phds in math and science. And those of the people that make intel a great company. What we would like to see in the h1b space is a higher proportion of those visas are being used for the most high skilled, technical people. It is one of the places that i know that brian is engaging to make our point of view known. Caroline joining us now is David Kirkpatrick. Hes at our show in new york. And our editor at large cory johnson. The cory johnson that was just there with stacy smith. Is he being disingenuous here . Cory he didnt say anything untrue, certainly. And what they are doing is a huge deal. And the numbers that he cited in in the oval office are impressive numbers indeed. Intel is a very important employer of immigrants in the u. S. And have exploited that greatly. But i think they are exporting the desire of the president to tout things that are in the works as if they would not have happened without him. And that is sort of the case of ibm, which has been laying off workers in the u. S. Reannouncing numbers on the president elect at the time, trumpeting them. But maybe never so moreso in this case, where we have this amazing thing heard i found this picture of the president speaking in front of this building saying, wait, it was that president. Speaking of front of the same building. The factory being built behind the is an example that america is within reach, and america that attract the next generation that attracts the next generation of manufacturing jobs. Caroline 2012. Cory january 2012. The notion our last president and our current president have both looked at this facility as an example of their prowess and bringing manufacturing jobs to the u. S. Look, intel was going to do this hires. Intel is very clever to go to the white house with that announcement. But these jobs were coming one way or the other. Caroline give us your take. How does this sit with you . David i actually think intel is being opportunistic but i cannot blame them. In reality, when trump was at the press conference he said a few weeks ago, brian called me and said he had an announcement to make. If he can make his announcement standing next to the present or the president or issue a press release with some kind of poorly attended press conference in san francisco, which one is he going to do . It is a nobrainer. He got tremendous publicity out of it. He also served trumps needs. Todays Financial Times has this great headline about Prime Minister abe. Abe seeks to offer trump gifts tweetable investment pledges. The Prime Minister of japan is coming to the u. S. With things that the japanese copies are doing that trump can talk about in his tweets. Intel did the same thing. It is something that leaders are doing, and trump makes himself vulnerable to that. I think it is to the benefit of intel but it is to the benefit of trump. Cory the timing is important. Intels annual analysts day is very important to them. They are very careful about guiding analysts and explaining what they do. This event sometimes has gone many days. Tomorrow is a one day event. They needed to have this news out before analysts day, because they will talk in great deal about their capex plans. This would have been old news on friday. This is new news on saturday. In terms of the dollar amount, the resuming of the construction of the inside of this plant. The very most cuttingedge plant in the history of technology when it comes to making semi conductors. Caroline Competitive Pressure helping push the envelope by much further as well. Cory johnson and David Kirkpatrick. Thank you. Airbnbs presence in canada despite regulators looking to tighten rules. 2016 saw over 15,000 airbnb listings in toronto. This comes at a time when the Housing Affordability is a controversial issue in canada. The average price in toronto of a Single Family home is more than 1 million canadian dollars. Coming up despite upbeat , earnings, akamai took a tumble in trading. Why are investors skeptical . We will talk to the companys ceo next. This is bloomberg. Caroline akamai stocks fell more than 10 in todays trading. Some investors are skeptical about the companys decision to splurge in new areas of the business. This is despite the Fourth Quarter earnings estimates that beat estimates. Details is ar the new correspondent. Tom, thank you for joining us to discuss all of this and give us a sense, why are the analysts skeptical about the investment you are going to making, worried about the margins, but what are the new product you could be loading up for them . The investment is justified. We have proven we are prudent with our investments. You take a look at our Website Security business. In four years that has grown from near nothing to 400 million. We are up 40 year over year. Last quarter and for the year. We have our new products with image manager at bot manager. Doing very well in the marketplace. Bot manager our best new product release in many years. I think the future is very bright, i think we have proven that we can start a adjacent lines of business and be very successful with the investment. Caroline you say they will boost sales. Can you give us a timeline of exactly when you might see Significant Movement and revenue on these new product lines . I think revenue is already accelerating. You can see that in q4, up 2 points in growth over q 3. It is important to see the core of the business that grew 15 for the year. There are some of the giant Platform Companies that are doing more of their delivery themselves. They now account for less than 10 of our revenue. The future impact is limited. But the core being very strong. So i think there is reason for optimism for akamai. Caroline what about the Cloud Security area . This is a new product that is bringing in more than 400 million. Give us a sense of what sort of threats are you seeing at akamai present in the news, are there more threats or are they just perhaps more . The threats are rapidly increasing in size, scale, sophistication. There is denial of service attacks that take websites offline. There are attacks to corrupt information on websites. And attacks to steal confidential data, credit cards from transactions taking place on websites. Today we are in the web security business. As we talked about on the call, we are just beginning to get products into the Enterprise Security space, which is a much larger potential market. These are products to stop malware, to stop phishing and to stop corporate level data ex filter asian attacks. Caroline you talked about the previous customers that are doing her own networks, netflix being one of them. Can you talk about the theme of overthetop provision . How much is that playing into your business or not . I would say our overthetop business is growing at a very strong and steady clip. And i would expect that to continue. I think everyone believes there will be more and more watching over the top. We get a large fraction of that business at akamai, because of the high quality delivery we provide. So, i think that has a strong and healthy future, especially if new capabilities like 4k or v. R. Grab a foothold. Caroline can you talk, going back to some of the concerns highlighted by investors, we talked about how quickly you think the revenue will come online. Already accelerating revenue up , 7 in the Fourth Quarter. What about the margin pressure, how long to think that will exist while you use this investment cycle . I think that is in the near to medium term and it depends what investments we make this year. To be clear, it is perfectly possible for us to continue operating the business at current margins and be very healthy, but when we look towards the future, we see some very interesting opportunities for investment. And we operate the company for the longterm benefit of the shareholders. And so when we seemore than payback in the future as we look towards 2018 and the end of the decade. Caroline the akamai ceo, great to have you on today. You very mr time. Now still to come, apple hires a key executive away from amazon. What does it mean for apples tv service . Up next. This is bloomberg. Caroline some streaming news grabbing our attention. The New York Times is teaming up. New Digital Subscribers will receive free access to the Worlds Largest music streaming service. Those who buy a oneyear suscription to the times will get unlimited access to spotify which usually cost 120 a year. The arrangement is named at helping both Companies Reach broader audiences. This has been previously tried and tested by me. It was done by the british daily, the times. And good news for those in the e. U. New rules will allow subscribers of Online Streaming Services and one country to access a service while traveling to another. Videoondemand platforms like netflix and amazon prime will and those like spotify and diva will be among those mandated to be available. This is the first step to introduce a single digital market in europe. And staying with streaming media, apple has hired the former head of amazons tv. He lead the apple tvs product marking. The moves suggest that apple is renewing its focus on tv and looking for more content for their device. The move came out late yesterday. Mark, break it down for us. Its going to get a product push in terms of marketing. What does this really signify . It signifies two things. The man who one, ran apple tv, previously to this higher as Vice President of that division, he came from hulu in 2013. Hell be stepping away from Product Marketing to product management, indicating what features come on the road. And focusing almost entirely on negotiating new content deals. That is a big deal. On the other hand, Timothy Twerdahl coming from amazon will breathe new life into the apple tv product which decreased in sales yearoveryear from last holiday to this holiday. Caroline does this build anticipation to buy an apple tv or throwing out the amazon fire . Every time i am on with mark i went to ask him questions. I have chromcast. It is perfectly fine. It is good enough. I do not know what apple is going to be able to add to apple tv make it so indispensable it becomes a major part of their Product Marketing. I would be curious to ask mark, what is it that apple could do with apple tv to really make it fundamentally different from Everything Else that is a ready out there . Mark it really comes down to the content. Right now apple does not have the content deals to fill their own service. It promotes competing services from what they wanted to do from Sony Playstation as well as directv. If they can nail the content, they can own more of the experience. They like to integrate Services Software and hardware with the iphone. What if they did the same for tv and own the Hardware Software and the services . Caroline we have seen how much amazon plows in in terms of content and netflix as well. What about the content, will he go down that path . Mark apple has hinted in the past and as recently as the past Earnings Call they are trying to get more original content. They will start new this year with more video content tailored to apple music. There has not been a strong indication from the company to moving into original movies like amazon prime and netflix. Those two companies are getting so much praise from the movie industry. I know one of them got an oscar nomination. It is becoming a big deal. Will apple put down the cash to buy a movie studio, we will see. Caroline we heard from facebook that it, too, was pushing on video. They were looking to have a television app. From your viewpoint, where does the land lie when it comes to the competition and the way in which we are seeing Companies React to the overthetop david video is becoming the content that everybody wants to watch from the standpoint of consumers, and every Company Wants to offer it. It is one of the primary appeals of snapchat. I think that will drive a lot of whatever enthusiasm there is around its ipo. Obviously, time warner, at t buying time warner is a questionable deal, but there is a trendy thing that everybody wants to have video. I am not quite sure it all makes sense from a financial point of view. There is such a glut of quality video content. Excuse me, in the facebook sense, they simply have tons of business reasons of going into video. Because you can sell more expensive ads as part of video programming then you can sell against static content. That is also one of the reason video is not for everybody. It is a great repository for expensive advertising. Caroline mark, just briefly, tewhler lost amazon fire tv. Are