Living up to its side of the nuclear agreement. The u. S. Announced new sanctions this week and warned tehran would face consequences for breaching the spirit of the deal. It is official. The u. S. Government is banning americans from traveling to north korea. This comes after Otto Warmbier died after being in prison there. He was in a coma when he was flown back to the u. S. Where he died. Global news 24 hours a day powered by more than 2700 journalists and analysts in more than 120 countries. I am Alisa Parenti. This is bloomberg. Bloomberg technology is next. Emily i am emily chang. This is bloomberg technology. Coming up sean spicer steps down , as White House Press secretary just after Anthony Scaramucci is named president Trumps Communications director. We have the latest on todays big white house shakeup. Plus, chinas master plan to lead the world in Artificial Intelligence. We dig into beijings new ambition and how it plans to invest 59 billion. Generate 59 billion in output by 2025. Rolls the dice on its own Self Driving Technology is it , too far behind for the race . We will compare their strategy to ubers. The lead, a staffing shakeup at the white house. White House Press Secretary sean spicer announced his resignation after President Trump hired financier Anthony Scaramucci as his Communications Director. Sarah Huckabee Sanders will become the White House Press secretary. Scaramucci is the founder of Skybridge Capital and a Campaign Fundraiser for trump. He joins the Communications Team amid intensifying investigation for the Trump Campaign and its ties to russia. With President TrumpSenior Adviser and soninlaw Jared Kushner set to speak with Senate Investigators next week, President Trumps eldest son and Paul Manafort are both scheduled to appear before the same senate committee. Joining us from new york are Kevin Cirilli and my guest cohost for the hour, David Kirkpatrick. Kevin, you have been on television all day talking about this. First of all, Anthony Scaramucci said there is more palace intrigue, yet the whole press conference was about personalities and relationships. What is the back story from your perspective . Reporter i have spoken with several sources on everything that went down in the past 24 hours. What i am hearing is this is a political victory for what they are calling the originals, the original staffers who back then candidate donald trump a time when many in the political universe did not. That said, he has aligned himself with the old guard, the original guard of the trump world. But people like sean spicer who will stay on board through august are not going to disappear. Hes aligned carefully with reince priebus, who is still involved in the white house. It comes at a time when they are trying to turn the page with so many questions surrounding next week in particular with the hearings set to continue with regards to russia. Emily why is scaramucci, given he does not have Traditional Communications experience, he is a businessman, but what else . Reporter this was a top fundraiser for the trump political campaign. He is a financier, very familiar to wall street, but not familiar to washington. I think that washington and how he meshes with the inside the beltway crowd remains to be seen. We should note today he faced largely few questions regarding political policy as well as the russia questions. We should also note sarah Huckabee Sanders has been promoted to press secretary. This is a big promotion for her. She is well respected by more traditional political circles inside the beltway and is a familiar and known entity. Emily they both deflected questions today about russia. David, im curious. The noise around the administration is getting louder. There is so much uncertainty about its future. At what point is this a big Business Risk for businesses, for Silicon Valley . David for Silicon Valley and business generally, it is already a big Business Risk. We are at a precarious point in American History where it is extremely hard to see this will not get worse from here. If we have a president who will not allow the investigators to investigate him, he continues to send signals he thinks he is guilty, which leads ordinary people like myself to assume, and ive heard other people saying the same thing, that he has got to be trying to hide something. Even if it is not true, it is what we think is true. It has to make all Business Leaders very nervous about what that could mean for the economy, for foreign affairs, for the breakdown of policy. I think it is a scary moment for the American People and american business. Silicon valley included. Emily kevin, looking ahead to next week, Jared Kushner is set to speak with Senate Investigators. What do we expect from that conversation . Reporter a very busy week next week. Jared kushner is set to meet behind closed doors with the Senate Intelligence committee. I spoke with a democratic member of the Committee Earlier today. Senator ron wyden. They are pressing for more information about finances. Within kushner world and the trump world. Bloomberg breaking the exclusive this week. On wednesday, donald trump, jr. , and Paul Manafort have been invited to testify. Very much unclear whether they will accept the invitation. They were supposed to reply to the deadline by the end of the day. They have a couple more hours. In terms of policy, we can talk about that on tuesday. The Health Care Vote is likely not going to pass. The conversations regarding tax reform as well as deregulatory financial policies still ongoing as well. I expect a potential budget vote in the house next week setting the stage for tax reform. Lawmakers trying to turn the page and bracing for a failure on health care policy. And the fed has a big meeting on wednesday next week. Emily not much at all. [laughter] what about the interview President Trump did with the New York Times where the idea of firing bob mueller came up . The special investigation has moved into covering his business interests. What do we know about a scenario in which that could be possible . Reporter bombshell bloomberg report yesterday. Special Counsel Robert Mueller is reportedly expanding the scope into President Trumps business dealings. The guardian had an exclusive this week suggesting there has been communication between the investigators and Deutsche Bank , which has deep financial ties to the trump world and kushner world. And lastly the New York Times , reporting about the debt obligations of Paul Manafort to russian and ukrainian influences. All of that suggesting this is headed to a faction and realm of the investigation into the financing and not just into the cyber sphere. I have spoken to several sources that suggest they are very much looking at the data of both political entities in trump world and democrats as well. Emily the picture is only getting more complicated. David if you are a c. E. O. , are , you preparing for something . David i think it is hard to prepare for this regardless of what you do in the american system. I think we are all watching like deer in the headlights. We have never seen anything like this before. It is reassuring to Business Leaders that markets and the economy still seem to be doing great. Trump continues to point to that as a sign people should not be worried about anything because that proves he must be doing a great job. Its hard not to say there is an element of reassurance in that. But i think there is real risk. As i mentioned before, things could happen that could throw markets and the economy into a new position. We just dont know. There are so many things we dont know because we have never been in a place remotely like this before. Emily techonomy c. E. O. David kirkpatrick, you are sticking with me. Our chief washington correspondent Kevin Cirilli, you will keep covering this for us. Thank you so much. I hope you get some sleep. Sticking with news, the Washington Post is reporting google spent nearly 6 million on lobbying in the Second Quarter of this year citing disclosure forms. That is a 40 jump from a year ago. Some of the issues included responses to the travel ban, education, and privacy regulations. Coming up, we will explore the latest in the volatile world of cryptocurrencies. Is the hype around initial coin offerings about to blow up . This is bloomberg. Emily checking in on bitcoin, the cryptocurrency rallied this week. Accor celebrated as the Developer Community embraced a to make itsm aimed scale. The group was previously split on how to make it more manageable. There is still a ton of interest in the crypto coin market with a flurry of initial offerings that can offer high risk for high reward. High risk or high reward. For more, lets bring in Caroline Hyde in london. Caroline thank you. I am now joined by a man with the Founding Team of ethereum. Its on the secondmost popular crypto currency after bitcoin. He has now founded another cryptocurrency startup, iohk. Wonderful to have you passing through london. Today, the news is bitcoin rallied yesterday. It looks like the developers are backing the development. Is it good that its not going to split . Its great. It shows the resilience of things. We took it down to the wire, but it looks like it is healthy and its future is bright. Caroline the future is bright for bitcoin. Talk about the landscape. Initial coin offerings going through the roof. Numbers are phenomenal. 700 to 800 cryptocurrencies exist. Than in 2013, now more 800. Icos are up six times in the last year. You say this is a ticking time bomb. Why . The fundamental problem with ipos is they are magical because they create liquidity and allow people who have never been able to raise capital before to do so, they have caused some people to forget the basic business principles of Due Diligence do not go away because we have technology. It reminds me of the dotcom boom and bust. It is a new technology and paradigm, so we dont really need to make profit or care about governance. I see a lot of similarities in this respect and get worried people are raising too much, too quickly, and have not thought about the implications. Caroline implications being eventually regulators catch on . That is one. The other is too much money can be as bad as having too little money. You dont execute faster but have stronger expectations and a more Aggressive Group of investors. The other side is salaries go up. Negotiation leverage goes down. Everybody knows you have 200 million. Maybe i get my 5,000 a month or Something Like that. As for regulators, it is a concern. 25,000 a month or Something Like that. As for regulators, it is a concern. Every one of them have an opinion about what these things ought to be. At some point, it has to make that opinion public and force actions in some respect. Caroline the ipos we have seen come out, if regulation does come in, who does that affect . The Investor Base or the company that raised the money . Both. From the Investor Base side, they lose liquidity on the tokens. They lose the value on trading. They become difficult to sell. On the business side, they may lose their bank accounts. They may face some sort of criminal or civil issue. It depends on what representations were made, how much capital they raised. It is a snowflake situation. Caroline people they raised the capital from, who are the investors . With blockchain, you cannot tell. Is it generally goes who have won out with early bitcoin successes . Thats one of the problems. These people who are or where the money is coming from. I would speculate a lot of the people are people that got lucky with the coin and ethereum so they put some money in. They wake up and are millionaires. They say let me see if i can do , it again. It is fast money chasing even faster money in that respect. Caroline is it real money . How liquid is it if you own bitcoin, ethereum, or the other cryptocurrencies . It is tremendously easy compared to where it was a few years ago. You can sell billions of dollars. You can use eat 8 00 p. M. s. There is something where you can put bitcoin on it as a card and spend it. Liquidity has improved over the last few years. There was a recent ico where they liquidated the vast majority they raised as a hedging strategy. It was more like a value transfer mechanism. They have a fiduciary responsibility to be conservative about currency speculators. Caroline the time bomb. What happens to this ecosystem up to 2020 . Do we see selloffs, implosions, rising from the ashes . Where does this go . Just like the. Com boom some , people go away, some stay. It is hard times for a little while. The regulatory landscape changes. The bad actors tend to face some recourse, and we move on. This does not stop a completely new way of looking at reputation and value and trust and the ability to move money anywhere in the world simultaneously, which is something we have not had ever in the entire history of the human race. Caroline what is the end goal . How do you see this affecting real people . I cant get my head around what bitcoin is. How will it affect me in my real life . If it works in the western world, it should not impact you explicitly. It is kind of like voip. Everybody said one day we will talk to each other on video calls, and it was the future. Then skype came around and organically creeped up, and now it is in everything. From the western world, it will be settlement and clearing gets faster. The Wire Transfer takes 15 seconds. Transaction costs go down. When you buy something abroad and spend dollars, they get euros. The cost of the transactions goes down tremendously. You will see iterative improvement, which will have lower cost. In the developing world, it is a completely new financial system. Something that runs on a cell phone, something that runs parallel to the banking system. For the First Time Ever it opens , up microcredit and a litany of other things that are tremendously beneficial that allow them to build real wealth. It also can be taken by bad jurisdictions. Caroline fascinating picture you have painted so eloquently for us. Thank you iohk c. E. O. , wonderful , to have him joining us. Back to you. Caroline hyde in london, thank you. China is taking aim at the ai industry. Why Artificial Intelligence has become the new focus of international competition, next. This is bloomberg. Emily Louis Vuitton has started selling online in china. It will cover 12 cities. The Parent Company is trying to capitalize on the luxury rebound in china following a downturn in recent years. Lvmh has been revamping its broader digital strategy. Meantime china is making a push , in Artificial Intelligence, aiming to make the ai industry an important driver of economic expansion by 2020. This, according to a Development Plan issued by the state cancel. Chinese ai related tech stocks rose on the announcement by as much as 9. 2 . Shenzhen popped as much as 7. 3 . Joining us from new york, selina wang. Still with us, my guest host, David Kirkpatrick, c. E. O. Of techonomy. What is your take on the Chinese Government publicly ramping up its efforts in ai . Reporter this is a clear directive coming from the top ranks of the Chinese Government saying we want to be the Global Leader in this area. We no longer want to be a follower of western technology. We saw western companies become the dominant players in software and chips. They are saying ai is emerging technology and we have room and time to beat out the competition. The experts say china is only a step behind many of its western competitors. The Chinese Government clearly thinks with the partnership plans and the investment c