Replace and stage two is hhs secretary tom price revealing we have reestablished contact with kevin. In your interview with congressman jordan, he called the gops proposal obamacarelite . Ok. Im sorry, looks like we have lost you. Kevin cirilli, i chief washington correspondent. What heintroducing calls the American Health care act. He says the markup will begin tomorrow. He says the difference between this and the Affordable Care act, obamacare, is that this is a patient centered Health Care Reform package. He says it gives power back to the federaland government will not have a onesizefitsall plan. He says now this creates a vibrant free market and stage one is repeal and replace obamacare. A programming note. The u. S. Commerce secretary wilbur ross joins Bloomberg Television live at 7 30 wednesday morning new york times. Dont miss that interview. Thats it for coverage of the paul ryan press conference. Lets join Caroline Hyde and Bloomberg Technology already in progress. Dont know how wikileaks got its hands on the material. The cia says the agency does not comment on the authenticity of the documents. We are discussing the impact of this massive data dump. Security advisor who has worked with homeland security, and also the former facebook head of product security. Thank you for coming today. I would like to take get your take. How sophisticated is this . Are they getting behind the encryption . I think we are uncertain about what they have right now. What it appears is they had information from the cia on their hacking techniques and what they are doing to take advantage to exploit various devices and programs. What is also going to be interesting is how they found this information. It seems to me they had somebody on the inside. This will be yet again a major breach by an insider of the United States intelligence committee. As the just as troubling leagues themselves, because how can we ensure our most great information is held and secure in the way we need and trust . Caroline thanks the question whether classified information will remain classified. We have demonstrated time and time again that the great dont remains a great for long. There are far too many secrets , secrets the impact of civilians on a regular basis. Myave a samsung tv in bedroom. In her room. As one the u. S. Has the policy of disclosing the liabilities as a means, except when they are needed in instances of national security. This seems to not honor that agreement. According of vulnerabilities that impact lawabiding citizens. Windows vulnerabilities are not disclosed or brought to the public, they put us all at risk. Caroline the realms of possibility, had you always assumed this was possible by the cia, that they were able to get through the encryption and we just werent being told about it . I think we should all believe they are trying their best to defeat our most technical means. You, onand it may scare the other hand you may also want your Intelligence Community to have abilities to find out information that may be in the hands of an adversary on one hand you up on. You applaud their ingenuity. On the other hand, you need to be concerned about how far this is going, and this is another risk in the washington and Silicon ValleyIntelligence Community divide. What it seems to be as they are indeed targeting more and more devices that are connected, and also targeting the applications that are built on the fundamental premise of encryption. Caroline alex, you have a bounty platform connecting the community with ethical hackers. Our Companies Like facebook, work, actuallyto putting enough in terms of rmb to make sure they are able to combat . Something that everyone who uses our platform and engages with hackers realizes of course there are vulnerabilities. Thats not surprising. The surprising news is that there are vulnerabilities identified that have not been immediately recorded and remediated so we are all protected. Many organizations take those steps to try to identify as many possible, but nobody believes they have found them all or that they are the only ones to have found them. Pat toomey is the most egregious part of this experience. It takes a certain amount of arrogance to think you are the only one capable of identifying that vulnerability. Caroline what is really notable about this revelation from wikileaks is the document shows the tools are being used 2013 to 2016. It is really reached and. And recent. Thus this show that sometimes things can get a little safer, and it shows that funds can be broken into and then hacked . I think many of those are probably still there. As we speak, people are trying to go through the information to see what was disclosed, and there is work being done to ensure the holder being passed rapidly. The other interesting angle is the continuum. It is no longer leaking information to an enterprising reporter. It is getting troves of documents to somebody to publish widely. That calls into question how we are going to actually have an Intelligence Community. The question for the Hacker Community is is this the ,ehavior they are encouraging which is to take all the information and is close and disclosing rather than just one issue . Caroline wikileaks has been years. For several whether you like it or not, these are pieces of information that get into the public remain domain, and they feel it is a force for good. That they believe this is the later go about it . Disclosure guidelines are very expressive. The first thing you do is get into the hands of the vendor or manufacturer. I would encourage the cia and u. S. Government to do the same as frequently as possible. Its clear this information has leaked and is in the hands of other people, at least wikileaks at this point has access to these vulnerabilities are cyber weapons. I would encourage them to follow the same practice of disclosing vulnerabilities so we can compete. Caroline tough question, but could this actually compromised cia operatives at the moment . Very well may be. This is why i think these issues cannot be magnified enough. The damage that is happening to the community, snowden, major leagues at the nsa, now this at cia, this is a strategy steady drumbeat of issues putting sources and methods at legitimate risk. Is it steady, or could it be getting faster and faster as we had been an essay that doesnt take you movie get on a that doesnt particularly get on with the Current Administration . I think they are more and more and everything transparency. Embracing transparency. If people believe something is unethical, they have a new norm to share information. It was not that long ago that if you still information, you would go to one reporter. You wouldnt just post it online. That has changed. Getes also the ability to something for yourself. Some people are selling this information. Whether you are in a corporation or a member of the Intelligence Community, you have access. We need to ask, what we are doing to actually detect and leaking. Caroline sadly, think this might happen again and you might have to come and share your expertise again on Bloomberg Technology. One stock we are watching, hp enterprise. They announced a 1 billion deal. It is a 45 premium. The Ceo Meg Whitman has been spending more on acquisitions in an effort to return sales growth. This acquisition extends the reach into flash storage, using memory chips that are much faster than traditional hard disk space storage. Another stock to keep your eye on, snap snap down 21 for the week so far. Why investors are stepping back from the company. And a reminder that all episodes of Bloomberg Technology, are Live Streaming on twitter. Check this out weekdays at 5 p. M. In new york, 2 p. M. In san francisco. This is bloomberg. Caroline now a story we are watching. Chinas secondlargest telecommunications will plead guilty and pay a fine of more than 1 billion for violating u. S. Laws, restricting the sale of u. S. Technologies to iran. That is the largest criminal fine in exports control or sanctions case. Shipped 32ly million worth of u. S. Items to iran between 2010 and 26. In a statement, they say they take responsibility for their mistakes. The stock we are watching snap, it appears some of the initial shine is wearing off. Despite the tech sector as a whole closing higher in trading. Shares of snap on the other hand dropping 11 after mondays plunge. Investors had essentially a change of heart towards snap . Our Bloomberg Intelligence analyst joins us. Not only the change in heart from investors, but why the negativity coming from analysts . The key issues here are valuation and user growth. If you look at the valuation, it is more than 24 times price to forward sale, making it one of the more expensive stocks in the u. S. Textbased today tech space today. Competition,tagram and slowing user growth, worries that that will worsen soon. Those are the big reasons you are seeing the negative reactions. Caroline i was looking back at twitter. It rallied 70 on its opening day and managed to continue to push off the valuation. Meanwhile, facebook eroded a lot of it postipo, then several months later started to rebound. Embracing ofmore the letdown . Most of the tech ipos over the last 10 years, when we look at the price movement, the first couple of months the quality is high because it is dictated by the supply demand of stocks and interest level. Lockup period, ucd movement changing direction. This is a very common thing we have seen in many ipos. We saw the gopro stock had tripled in the first couple of months of trading and then fell after that before the lockup period was up. How much the Short Interest is, the free flow, those things take over the dynamic of the trading strategies in the first couple months. Caroline you mentioned heady valuation, and the day the daily user base, 158 million. There was an analyst putting out a note saying it could be slow in january and february, and half the case of instagram. What does snap needs to pull out of the back . Bag . They need to make sure the trajectory of user growth and movement is growing. If they can show they are fighting back, you can see change in sentiment. But if they do this in the next two quarters and we see signs user growth is not going to pick up, this will not be good for the company. Caroline interesting you mentioned gopro. It was notable that all the time snap was trying to make itself out to be a camera comes any company, stopping association with facebook and twitter. Then you see gopro today at a record low with its own share prices. Can you give us a sense to what low to look out for . Essentially with gopro, the market for the camera seems to be saturating. We have not seen a lot of growth. Expectations, the its only 5 revenue growth. Competition is heating up in drones. You have supply chain issues and recall before, which hammered expectations early on, but now the competition is increasing. Xiaomi is getting into the market. Pricing will fall. The revenue side of the equation is actually worrisome based on the and Market Dynamics in terms of competition. Caroline always great to have you on. We the stacks stocks should be watching, of course snap. Bloomberg intelligence senior analyst. We are also watching pandora shares plunging 7 . This after Liberty Media ceo said the stock is overvalued and it is unlikely this company would be interested in buying it at the current price. Liberty owns sirius xm and has discussed buying pandora in the past. It would be more likely if the stock was closer to 10 a share. Pandora previously rejected an offer for 15 a share. Coming up, will blue origins reusable rockets debut before the end of the decade . And expanding on his vision from washington. This is bloomberg. My vision for blue origin, the longterm vision, is millions of People Living and working in space. We need to bring civilization to a lot of reasons. Caroline Hyperloop One is making waves in nevada. They revealed the first images of the dead loop. This is the first fullscale test check for the nevada desert. The goal is to get a test run in the first half of the year using this as a concept to prepare for construction for commercial installation. On goods, will focus and will eventually transport passengers at high speeds. Meanwhile, blue origin has seen a lot of action. Founder jeff bezos tweeted out pictures of the engine of the rocket. One day later, he is announcing the first paying customer. Blue origin has signed a satellite operator as its first client, as the company prepares to launch more powerful rockets in the next decade. Partnership ate the satellite conference in washington, and invited the ceo on stage. A few months ago, we started approaching customers. He was very interested and right away it was a great partnership. They have done so many new vehicles in the past. We couldnt hope for a better first partner, because they will be able to help. Caroline joining us now from washington is bloombergs reporter, who was at the conference. Can you tell us, a paying customer, how important is this . It is a huge step for blue origin as a company. This is a Space Exploration company that has lived on jeff and now they have revenue in the forms of a paying customer. It is notable this was made at satellite 2017. This is the Satellite Industries premier networking event. This is the first of what will likely be more paying customers in the future. How does spacex and Virgin Galactic compared to wear blue origin is not right now . Reporter i think what we are seeing in the space industry is continuing developing development of new and more powerful rockets capable to launching satellites to geostationary orbit, which is very far away. New glenn is a rocket blue origin is working on. They say the launches launch is for 2021. It will be a very powerful rocket on the scope we have not seen in this country for a while. You are seeing jeff bezos expand beyond Space Tourism to commissioner commercial customers. Caroline by a phenomenal leap. Theres a great story on bloomberg about taxpayers, and saying they might be on the hook the next time private companies fail. Is this something you think is becoming known by the general public. Or is this something private companies should have to look to themselves . Reporter i think the launch industry as an industry is very familiar with mishaps. Whenever a rocket explodes on the launchpad or after flight, it is a setback for the industry as a whole. In this images of burning rockets doesnt do anything. Often times there is dual insurance, or the Way Insurance deals are structured, it tends to be different for each provider. Going forward you will see bigger, heavier more powerful rockets capable of launching payloads. Ifgrander you are a satellite company, you have more options. You can go on spacex, eventually blue origins. For the satellite industry, this is great for them. To have more options and theres more competition, which will ultimately lower the cost for everyone. Caroline great for satellites. What about great for the consumer desperate to get into space . Virgin galactic has been pushed back. Do you have any knowledge on what blue origins is planning . Reporter they are talking about taking people to the edge ofs eighth for a few minutes of weightlessness, and then bring them back. Have leaned on what they have torned from the test flights help develop new glenn, the rocket they are talking about. Caroline just a reminder of what jeff bezoss grandview is here. We know elon musk is a visionary who looks at of living outside in space. What does jeff bezos hope to achieve . Reporter they are similar in that they are both tech billionaires who made their fortunes in the internet, and immediately piled those fortunes into private space companies. Jeff bezos started blue origin 15 years ago with the millions he earned as amazon ceo. They were relatively quiet until recently. His vision is similar, he wants to have millions of People Living and working in space. Dana hull, covering all things satellite. Edge to come, gopro shares up slightly after hitting a record low, but how can the company recover with analysts piling on the fresh downgrade . Check us out on the radio. Listen on the Bloomberg Radio app, bloomberg. Com, and in the u. S. On sirius xm. This is bloomberg. Mark i am mark crumpton. You are watching Bloomberg Technology. House Speaker Paul Ryan expects to have the necessary votes to pass a replacement of the Affordable Care law. The speaker held a press briefing with reporters a short time ago. Obamacare is collapsing. Obamacare isnt staying. , if we did nothing the law would collapse and leave everybody without Affordable Health care. Mark earlier at the white house, President Trump said the Affordable Care law has to be repealed, and he says he supports passage of the Gop Health Care plan. Im proud to support the replacement plan released by the house of representatives and encouraged by members of both parties. I think really that we are going to have something thats going to be much more understood and much more popular. Mark british Prime Minister theresa may suffered a fresh blow to her plan to trigger the start of brexit talks. Upper house lawmakers demanded the power to reject the final deal she reaches with the european union. 366268e of lords voted in favor of changing prime draft. R mays china is warning of a new arms race after the u. S. Again to point the new Missile System