>> ivan update of your top stories. donaldrg sources say trump has chosen rex tillerson at the secretary of state. a formal announcement is expected later on tuesday. president-elect has picked a third goldman sachs member of his team. gary cohn will have the national council. in november, that's projection -- industrial projections going above estimates. in advance 10.8% while it increased 8.3% in the first 11 months of the year.

taking a closer look at some -- it has been criticize after the fda. the regulator found testing programs were inadequate and failing results of central contamination were not always reported in time. a warning to the plant master prevented any new product launches. dayal news 24 hours a than 2600 more journalists and analysts in more than 120 countries. but get a check of the markets. afternoon trading getting underway in hong kong and china. shaking off that positive data out of china today. this is bloomberg. . ♪ emily: i am emily chang and this is "bloomberg technology."

president-elect trump invites tech leaders to meet this week. my exclusive interview with investor, entrepreneur, and former google venture ceo bill maris. we find out what his next for the media giant. first to the lead. a tech-focused meeting of the minds at trump tower. the president-elect sits down with top executives who largely backed hillary clinton and spoke out against him. among those attending, jeff bezos, sheryl sandberg, elon musk, and chuck robin, larry page, and tim cook. the meeting is a chance for silicon valley to find common ground with the new administration. after clashing on key issues

like integration, trade, immigration, and net neutrality. joining us is bill merits. great to have you back. i would love to be a fly on the wall at this meeting. what do you think is going to happen? do you think there will be a reconciliation of sorts? bill: i don't know. i know almost all of the individuals who were reportedly attending and they are all good people. tim cook in particular. a value-driven person. i think it is good for people to talk rather than talk about each other. emily: do you have concerns about trump in the oval office? bill: i think it is a wake-up call for a lot of people, especially in silicon valley who for once did not get what they wanted and to stop referring to the rest of the country as flyover country. there are a lot of things going on that silicon valley has been out of touch with.

emily: do you have any concerns about the future of silicon valley under donald trump? bill: i have concerns that are different from those. we were talking earlier. i learned that 62 people in the world control as much wealth as the poorest 4 billion. that is stunning. they could fit in this room and i probably know half of them. that is down from almost 400 people six years ago. i think there are real problems to talk about that are different whether than silicon valley will get along with the president. emily: you are a close friend with peter thiel, who was the lone silicon valley trump supporter. how do you feel about his views having a great influence on the president? bill: peter is a friend. he called it. he said the election would go this way and he said for a couple of years that people were

unhappy and pessimistic and i think we have a new president who was elected fair and square. as an american, i think we should all want him to be successful. i have great respect for peter. emily: has peter asked you to help in any way? bill: if peter asked, i would help him. i will leave it at that. emily: you moved your family down to san diego, in part of a disillusionment with silicon valley culture. can you explain that? bill: there is a bubble here. a concentration of wealth, and on the flipside, a pursuit of innovation and disruption, which is admirable, but it is easy to be pulled into a vortex of bellybutton gazing and self interest. i deliver meals on wheels. when you go out and see real

people who were not building apps, but who are hungry or alone, it puts you a little more in touch with the rest of the world. emily: outside the vortex, there are still a large amount of people with great concern about a trump presidency. the cia has told congress that russia not only tried to hack the election, not only hacked the election, but also hacked it to help donald trump. trump has attacked the cia for this revelation, if you will. what is your reaction to that? bill: i have not seen any evidence myself that the outcome would have been different. emily: we don't know. bill: no foreign power should interfere in our elections. but at the end of the day, i think we should judge trump on what he does rather than what he says or what other people say about him. i think that is a good rule in life for all of us to follow. i think this news about the election is just breaking.

it is hard to know what happened and what did not. emily: what about the idea that rex tillerson could be the secretary of state? a ceo of exxon and someone was strong and friendly ties to russia and putin. bill: he is not secretary of state. trump is not president yet. exxon mobil is a giant corporation and involves a lot of responsibility to run a company like that. i would not judge -- i try not to corral people into what they can be as to what they have been. i would rather wait and see. the proof is in the pudding. emily: trump has said that climate change is a hoax and you are someone who i know is very passionate about clean energy. you have any concerns about the future of clean energy? bill: yeah, i have concerns. they go beyond that. i think rick perry, who i don't know personally, but the

governor of a very large state, an energy producing state. he is not in the position yet. i don't know if he has been officially picked. emily: it is not official. bill: it is probably not worth speculating too much because part of the problem for me has been turning everything into fantasy for all -- fantasy football. making judgments when nothing happened yet. i have concerns and would like to see clean energy advance but i think bill gates had a great announcement 24 hours ago about this. emily: some of this stuff has not happened but there has been a lot of tweeting going on. bill: i am not a tweeter. i think we would all be healthier that with the case. emily: jack ma, jeff bezos are now in this clean energy fund. do you think this fund will move the needle in an area that has been slow to have a big exit?

bill: i hope so. i know all of them and i admire them and i think bill gates in particular has an amazing track record, especially in health care, helping to rid the world of polio, on the way to doing the same with malaria. if he can do in energy what he has done in health care, it would be fantastic. emily: bill maris. we will be right back with you. apple is said to have held talks about investing in softbank's $100 billion tech fund. apple may contribute up to $1 billion to the fund, which will give the company insight into up and coming technology. apple also invested $1 billion in the ride hailing giant didi.

half of the $100 billion fund would be invested in the united states. all episodes of bloomberg technology are live streaming on twitter. check us out on weekdays. 5:00 p.m. in new york. technology are live streaming on ♪

emily: online retail site asoft is banking on its recent success with plans for expansion. it is going to double its u.k. manufacturing, hiring 1500 employees. unlike many rivals, they have benefited from the drop in the pound after the brexit vote because about 57% of its sales

are outside the u.k. turning back to our exclusive conversation with venture capitalist bill maris. he oversaw investments in tech and life sciences. he left earlier this year. last week, he pulled the plug. he joins us now to discuss. why? you were on track to close this week and said actually, i'm not going to do this. bill: i did this crazy thing called changing my mind. wild, i know. i did it. i left hundreds of millions of dollars behind. i did it because i feel like there are a lot of venture funds right now in the valley. every couple of days, i see new announcements of new funds. i felt like after 10 years in the business or close to it, there might be better ways to

have a bigger impact on problems i think are worth tackling. emily: there was a report of $230 million. did you have trouble raising the funds that you wanted? bill: no. this is a time where there is tremendous capital available, especially if you have a track record that does not mean that it is the right thing to do. interest rates are low. institutions are looking for places to deploy money. venture is one of those places. it is almost overfunded. emily: you are planning to do this on your own. i'm curious why. if there are so many other funds out there, why could you do it differently? bill: i did that once at a place called google venture. virtually everything i have done in my life, apart from having a

child, i have started it alone. i was fortunate to build an amazing team at google. they are doing an outstanding job. there are real problems as well. there are funds out there i can help. i don't know that being a professional vc that the world needs another venture fund right now. emily: do you think we are in a bubble? bill: i think we are in a huge bubble. i think the election is a testament to that. i think that there is almost too much capital available to investors, which raises prices, which raises expectations, and there are a lot of people working on what i would think of as trivial problems as opposed to the real problems that the country faces. emily: what are the trivial problems? bill: do we need another more optimized advertising system to further a consumer culture based on the consumption of goods and services? there needs to be some balance. emily: how does this play out?

is there some sort of catastrophe? bill: depends on how you define it. maybe those are good things to happen. what happens is ultimately interest rates go up sometime soon. as a result, the stock market corrects anywhere to 1000 or more points. the pendulum will swing the other way. it will seem like armageddon, but it is not that. we are overdue for a correction. emily: who is headed for a wake-up call? bill: a lot of us got a wake-up call in november, you will see a lot of startups that were overly optimistic not being able to raise future rounds. emily: i'm curious about why you left google and i wonder, do you think that vc can't be done from inside a big company very well? bill: hopefully, my last 10 years proves that it can be. emily: you think that model

works? bill: i think it worked. my last day was august 12. beyond that, it is very difficult. running a venture fund is very difficult. doing it inside a masimo corporation is also difficult. it was successful -- a massive corporation is also difficult. it was successful. creating the same model outside of google, i did not feel that inspiring at the end of the day, which is why i pulled the plug. emily: what do you make of the transition we have seen inside alphabet? you are not the only one to leave. bill: every big company has turnover. i had a fantastic team of people who are all still there and i wish them huge success because i'm an investor with them in a lot of companies. emily: is this just the usual turnover, or is it spawned by the cleaning of house?

bill: i think it is interesting to go on a witchhunt. as far as i'm concerned, google is filled with fantastic people who want to do important things. my team feels that way. i cannot speak for the company at large other than i had an amazing experience. like anyone who was hired to do a job, you need to know when that job is done. i felt like my job was done. emily: what will you do next? will you be angel investing? bill: i don't know. i will angel investor i will help funds and colleagues and companies like i always have. the next few months are about taking a lot of calls and talking to people and seeing how

i can help. emily: you are very vocal about fair note and foresaw some of the problems. bill: that is still of a thing. emily: what is the appetite for funding of health care related startups in the wake of fair note? bill: i have seen a huge increase in the interest of life science, especially where machine learning and artificial intelligence can be applied to improve outcomes for patients. fairnote is an unfortunate story because it ended up hurting patients. it has not put a damper on investors' appetite for innovation. emily: bill maris. we will be watching to see what you do next from san diego. thank you for stopping by. advanced micro devices is trying to make up ground on rival nvidia. wel will break down their latest venture. ♪

emily: skype is working to make

language barriers a thing of the past. they are working on making a conversation in two languages seamless. users will need to pay credits to use the tool. translation runs in nine languages, including english, spanish, german, and arabic. amd is taking aim at nvidia. amd will be offering graphics chips tailored for artificial intelligence use in its data center. it will speed up the ability for computers to train themselves and get better at image recognition. ian king covers the major semiconductor businesses. in plain english, you say that amd is trying to get into the business of recognizing your voice, sorting through pictures, and other tasks that companies are trying to turn over to ai

with these chips. ian: the task that you said, translating things in skype, recognizing whether it is a dog or a pig or whatever in those pictures. doing those in parallel. a gpu is good at that. small tasks in parallel. emily: this is a chip that normally games are built on. ian: that is exactly it. all of these teenagers living in their parents' basement that have gaming systems, they will pay $1000 for a graphics card because that gives them the most vivid image. those are the chips we are talking about. emily: doesn't intel dominate in service? ian: they have a 99.4% market share in service. that is a $15 billion a year business. their chips are good at multitasking, good at complex things very quickly, but not in parallel. emily: why has it taken this

long for amd to bring this kind of a product to market? ian: you wind the clock back and people thought amd was going out of business, they were running out of money. they lost a lot of market share. it has taken them a long time to get to the point where they are able to invest in technology again. emily: how big is the market likely to get? ian: that is the question. right now, nvidia is bringing in a few hundred million a quarter. it is still a good business. compared to what intel is bringing in, $15 billion a year, not very much. emily: you cover the entire chip industry. there has been so much and mandate, so much action, companies falling behind, betting on technology. set the lay of the land in terms of who is in position to capitalize on the rise of ai if it is as big as people think it will be.

ian: investors have been going after nvidia. stock has more than doubled. it is now a $40 million company and just on the promise of what ai might mean. emily: who will be left behind now? ian: recently, intel made a lot of announcements about how they will try to bring their outside technology into their lineup. they are trying to respond. it is theirs to lose. emily: in 2017, do you think we will see more m&a? a lot of people say under trump, we will see a lot more m&a. ian: pretty much everybody has been bought or folded at this point. one thing under trump is freedom from the regulations that some of the bankers are betting on, that there will be less

restriction on m&a. emily: ian king, thank you so much for that update. how venture capitalists are preparing for a trump presidency and where they are placing their bets in 2017. megan quinn joins us next. make sure to watch "bloomberg technology" tuesday. gary lu will be joining me next. gary beckerman will be going to the highly anticipated meeting of tech leaders with president-elect trump on wednesday. this is bloomberg. ♪

i've spent my life planting a size-six, non-slip shoe into that door. on this side, i want my customers to relax and enjoy themselves. but these days it's phones before forks. they want wifi out here. but behind that door, i need a private connection for my business. wifi pro from comcast business. public wifi for your customers. private wifi for your business. strong and secure. good for a door. and a network. comcast business. built for security. built for business. ways wins. especially in my business. with slow internet from the phone company, you can't keep up. you're stuck, watching spinning wheels and progress bars until someone else scoops your story. switch to comcast business. with high-speed internet up to 10 gigabits per second.

you wouldn't pick a slow race car. then why settle for slow internet? comcast business. built for speed. built for business. angie: i'm angie lau with an update of your top stories. donald trump has picked rex tillerson as secretary of state and a formal announcement is due later today. his ties to russia are likely to be questioned during his senate confirmation. it is a third goldman sachs executive, gary cohn, will have the national economic council. chinese stabilization held in november giving policymakers more room to switch from stimulus and curbing financial threats. industrial production rose. retail sales will up. fixed asset investment jumped

8%. south korea, japan and the united states will discuss north korea. they discussed of security counsel resolution which they hope would leave north korea with no choice but to do nuclear rise. ifwill engage with the north it gives up its nuclear program. the eu will set out on thursday on how it will conduct brexit negotiations. leaders will meet without theresa may to discussed the strategy. the draft statement says the u.k. will be excluded from all meetings while remaining eu members discuss brexit. global news 24 hours a day powered by more than 2600 journalists and analysts. this is bloomberg. let's check how the markets have been trading in the asia-pacific. here is juliette.

juliette: want to show you a couple of movers. over 5% in tokyo. the nikkei has reported it will ¥900 billion. we have reached out for comment. they say they are not commenting on these reports. ,e are seeing weakness in posco down about 5%. have a look at m3 in japan, up 4.5%. that is in the health care space. that is where you are seeing buying come through today. that is very much the vocus. elsewhere, selloff inequities. up by one third of 1%. it is continuing to build on the 2016 highs. were seeing a little bit of the yuan.

we are seeing weakness from australia and from china and hong kong. we are going to be live from london at the top of the hour on bloomberg television. this is bloomberg. ♪ emily: this is "bloomberg technology." i'm emily chang. silicon valley leaders had to new york to meet with president elect trump many backed hillary clinton did not hold back their disdain for them. the meeting will be a chance for them to find common ground with the new administration after clashing on key issues. one key question is what it will mean for mobile tech investment and how venture capitalists should be preparing for the coming year. there is megan quinn who knows the investment landscape all too well. spark has invested in companies like twitter and oculus. good to have you here on the program.

what do you think the trump presidency means for silicon valley, and how are you guys talking about this internally? megan: there is a lot of uncertainty that follows donald trump. there has been a lot of discussion around this meeting tomorrow that will take place with various technology leaders. my view is that these people are very accomplished and held an extremely high regard, and we need to is to surround the presidency and the cabinet with more smart, innovative thinkers. i hope they are able to find some common ground around innovation. i don't know there will be specific topics they get to the bottom of in an hour-long meeting, but i hope they open up a dialogue between the president and silicon valley. emily: how are you digesting this at spark? there's a lot of uncertainty, the markets have reacted positively in some ways, but not others. there was a lot of wait and see. we advise to keep on keeping on. really focus on your business. emily: you used to work at kleiner perkins. i'm curious what is the

difference when you look at growth stage companies versus early-stage companies and how has your own strategy shifted? megan: we are looking for companies that have already found product market hits. we are looking for metrics we can point to without having to squint too hard to indicate the early-stage companies and how emily: you used to work at kleiner perkins. i'm curious what is the difference when you look at growth stage companies versus early-stage companies and how has your own strategy shifted? megan: we are looking for companies that have already found product market hits. we are looking for metrics we can point to without having to squint too hard to indicate the inflection point has already taken place. emily: do you think there will be more competition at the growth stage now that the belt has been tightening at the earlier stage?

it seems like fewer companies are getting a larger pool of capital. megan: there is certainly a tremendous amount of capital available. we think there is a dearth of wonderful investors who can add value to portfolio companies at that growth stage. emily: our guest who was just on thinks we are in a huge bubble. what is your reaction to that? megan: we think if you're building an incredible company, there will be plenty of capital for you but it's finding a partner that will be good for your business, not just a blank check for you can get it. emily: you invested $20 million in a company. this is an enterprise software startup. what do we make of that decision? megan: spark has a long history of investing in these companies. there is a trend we are extremely excited about. it's tickling call consumerization of the enterprise. we expect as individuals for the products and services we use at

work to look and feel like the products and services we use at home. it doesn't matter if we are behind a desk or behind a bar. we want in gauging products in the workforce. this offers a fully integrated platform for enterprise companies to build better products for the end consumer. emily: they are based in raleigh, north carolina, of all places. talk about getting outside the vortex. are you looking beyond silicon valley more often now to find those diamonds in the rough? megan: we are always happy to get on a plane. my view is building a company outside the bay area bubble is a competitive advantage. they sit at the intersection of three very well-known universities and have incredible acts us to talent at much cheaper costs, so we consider that a positive when it comes to investing in a place like raleigh. emily: where are you looking in 2017, given the uncertainty and

the climate right now? megan: we will ride out the macro shift toward more consumer feeling products in the marketplace. we think there is tremendous opportunity with compelling, engaging, delightful products in the work waste. in addition, we tend to be founder driven by trend. we are excited about applied ai. historically been relegated to r and d departments and were starting to see products and services that consumers use. now with vast amounts of data, the algorithms can learn over time. we are also excited personally about the r and ar in the enterprise. there might be more adoption of the enterprise in these services than in consumer life. it might follow the path of the

pc. pc. emily: you are spark's first female partner and i know you're very passionate about this issue of diversity. i'm curious, what do you think it is going to take to see actual change? actual change? where do you think the challenge is still lie? megan: my view is you cannot see what you can't see. i am a general partner at a venture firm because i had a woman general partner on my board in my previous role at square. that was mary meeker. she stood out as someone i could be like. we need to have more women in senior positions so the next generations understands there are more opportunities for them in their career path. emily: thank you so much for joining us. one disclosure, megan is a board member at the company handshake where my husband currently works. two top republican lawmakers offered strong support for u.s. intelligence monday.

in sharp contrast to president elect trump who disputed reports that the russian government helped him win. senate majority leader mitch mcconnell and house speaker paul ryan praised them for taking on cyber threats from foreign government. the press secretary to vladimir putin told reporters today that the allegations have nothing to do with reality. trump and his team are pushing back on the claims as well. coming up, viacom and cbs walk away from a potential deal. meantime, 10 cent is looking to cover the blockbuster boom. this is bloomberg. ♪

emily: the golden globe nominations were announced today, but streaming networks appear to be losing their luster. netflix scored five nominations, the lowest number since entering the awards race three years ago. amazon studios got five nominations, despite the dramatic increase in the number of original series on the platform. turning to the megadeal that wasn't. merger talks between viacom and cbs broke down with sherry redstone pulling the plug on the deal. robert bachus' role is a permanent position, leaving him in charge of the company's turnaround. lucas shaw has been covering this and joins us from l.a. with more. the company has been through whiplash over the last several months. what does he bring to the table? lucas: he bring some measure of stability. he has been at viacom for a long time but was not part of the cabal leadership. he ran the international

business for about the last decade so he has a big priority there and he thinks he can apply some of what he learned there to energize the u.s. business. i think most people it viacom have just been suffering throughout the year as they seem to be reading new news about their company and the press every week or so will be happy a cousin means all the turmoil is over. it's not guaranteed, but it seems like for now we have reached a status quo. emily: it seems like the deal fell apart because of a power struggle between sherry redstone and les moonves. >> i would say there's definitely a negotiation that happened between the two of them. how much of it was a power struggle is unclear. most people i spoke to said it broke down more over price than governance. les moonves wanted assurances

that he would have a great deal more control than even has at cbs. people said he was going to get that, but as time went by, sherry redstone became increasingly comfortable and bob bakish convinced her he could make it more valuable. they could never come to terms that either side was comfortable with. emily: there are reports of interest from other companies for cbs, including verizon. what do you know? >> not much on that front. sources are saying that verizon probably does not want to buy cbs, and i don't know that cbs is a willing seller right now. cbs is a very streamlined company. down the road it could be merged or sold to someone. les moonves may want to sell to someone, but there are no talks happening right now. there were people this morning who were surprised by sherry's move.

that letter came sort of from out of nowhere. emily: let's talk more about bakish's strategy. what do we know about his plans to turn the company around? >> you have seen a bunch of leadership changes at the different networks already. mtv got a new boss a couple of months ago. the paramount movie studio just got a new coo. comedy central had a leadership change relatively recently. he's going to make sure that all those divisions have a strategy for how they will turn themselves around. since taking over, he has assembled different leadership committees to try to discuss what is the plan for mtv and comedy central. everybody involved knows what the pressure points are. they just hasn't been an effective means of turning them around. what the specifics are on those plans will probably come out over the next weeks and months.

emily: lucas shaw in l.a., thanks for bringing us that update. staying with media, asia's largest internet company is gearing up for a major push into hollywood. they will make their own blockbusters instead of just writing checks for them. they will be working with some of the industry's top talent to increase chinese culture on the big screen. lulu covers 10 sent. why are they hunting for acquisitions in hollywood? lulu: like you said, tencent not only wants to write the check, they want to write the script for hollywood movies. acquisitions is just one way to expedite their expansion plans. they're competing with alibaba for a $10 billion market. by these acquisitions, anything from studios to creative production houses, they can expedite those plans. tencent said they are very open to all kind of possibilities,

provided those companies complement their own resources and the pricing is right. emily: in light of recent election, potentially increasing tension with the chinese government? lulu: the u.s. and china's relations or at a very tense time right now. we are seeing a lot of rhetoric and criticism saying the u.s. needs to be more critical of these chinese takeovers, especially with trump criticizing chinese trading currency policies. tencent is part of a group of companies that are looking to invest or have already invested in u.s. studios. for example, alibaba investing in steven spielberg's company. we're going to see more pushback

because movies are very powerful and influence public opinion. going forward, these companies could face some headwind. emily: what kind of genre will tencent focus on? how will their strategy differ from alibaba? lulu: their stronghold is in games. we see that they operate league of legends. already they have invested into warcraft and skull island. fanboys is the genre they are targeting most. going forward we will see a lot of fantasy adventure novels being adapted into movies. that said, they are not close to only investing in one type of movie. emily: fascinating, the race for hollywood of chinese tech titans. thanks so much, lulu. coming up, microsoft is taking a

second shot at chatbox. we will test the new bot and see if it's more polite. watch our special coverage of the highly anticipated fed decision that starts at 10:00 a.m. in san francisco, right here on bloomberg television, bloomberg radio, and bloomberg.com. this is bloomberg. ♪

emily: instagram's live feature is coming to the u.s. in the coming days. the live features will be in the story section of the app and live videos won't be stored on instagram, meaning they can only be seen while you are broadcasting. that differentiates it from facebook which archives

livestreams on its platform. instagram first announces plans for live content in november. we will be watching. microsoft is testing a new chat bot on the app kik. our bloomberg tech reporter tried out the new bot. >> a lot of people expect the way you will interact with electronic devices in the future will be in conversation with artificial intelligence bots. it slightly backfired when they created this racist, nazi, expletive spewing bot nine months ago. electronic devices in the future will be in conversation with artificial intelligence bots. they are quietly trying again. they have a bot on the app kik,

and we are going to try it out. let's start with, who is barack obama? >> no, i'm not talking about this with you. it sounds like my parents at the dinner table when politics comes up. maybe a more intricate one. should we get rid of the electoral college? my boundaries are crossed pretty hard. i'm out, with a little wavy hand. one that is close to my heart. should britain leave the eu? i've never been there, is her response to that. she is missing out, quite and we are going to try it out. clearly. everyone should go there with the pound so cheap. who is the ceo of microsoft? we have not met yet. final one for her, the former microsoft ceo steve ballmer, do you like steve ballmer?

i know they are associated with the company so i am excited to meet them. i think it is quite an interesting takeaway. her comments were not grossly offensive. it is toeing the company line. emily: that's alex webb there. that does it for this edition of "bloomberg technology." be sure to watch tuesday's show, we will discuss the south china morning post and michael beckerman, ceo of the internet association. tech leaders attend a highly anticipated meeting with president-elect trump and beckerman will be advising them. all episodes on twitter weekdays 5:00 p.m. in new york, 2:00 p.m. in san francisco. that is all for today. we will see you tomorrow. this is bloomberg. ♪

size oftors await the the shares which are said to be as much as 13 billion euros. we look forward to a strategic update this morning. secretary in waiting. donald trump closes in on appointing rex tillerson as the nation's top diplomat as lawmakers continue to express concerns over his ties to vladimir putin. and data deluge. china stints resilient after november saw a pickup in retail and factory data. attention turns to property prices in the world's second biggest economy. ♪