trump tweeted, "great delay by v. putin. i always knew he was very smart." putin declined to expel any nationals despite the urging of his foreign minister. turkey's foreign minister says washington and moscow should put differences aside and join negotiations for a syrian peace process. he says the world does not need a new cold war. meantime, activists are reporting the first death in syria since the cease-fire began 24 hours ago. a judge's denied a request to delay a competency hearing for dylann roof. he's potential death sentence for the killing of african-americans in a church. roof will have a psychiatric evaluation this weekend and hearing monday. ruled the risk to free and fair elections by stopping the law to take into effect.

he plans to review the law thursday. cooper takes office sunday. bloomberg news, 24 hours a day, powered by more than 2,600 journalists and analysts in over 120 countries. this is bloomberg. "bloomberg technology" is next. ♪ caroline: this is "bloomberg technology," coming up, taking stock. annual gain but tech stocks decline in the final day of trading. plus, a look at the home runs and missed strikes from a volatile year in tech and the march ahead for the silicon valley. and the big picture courtesy of kevin. our exclusive interview with the instagram chief executive on everything from photo sharing to why he sold the

company to zuckerberg. now to our lead. the markets have officially closed the book for 2016, and it rass a rough and for many an end for the many big tech company. advanced micro devices were some of the big tech flames that slid in friday's session. oh, the performance echos a theme for big tech names lagging the overall markets since the u.s. election. let's take stock of the markets in 2016 and look to private investing in 2017. joining me is chris, principal at bloomberg capital and bloomberg editor at large, korey johnson. bloomberg. , cory.o public first it was a dismal end to 2016 for the tech stocks. cory: people make the portfolios what they wanted to look like. there was a strange movement in the last 10 minutes. overall what happened today

doesn't matter because what happened this year was really eye popping in terms of returns based on limited success when it comes to earnings. caroline: were there returns eye popping when it comes to the private market? you're very much focused in terms of the -- are things looking bright for 2017? >> yeah. we look at 10-year looks in our cycles and stay away from the day-to--day public nuances. we see capital, although you may see 2016 be slightly below 2015 in terms of fundraising for companies but we see that money going into deeper technology, a.i., automation and these things that will take several years to commercialize but have massive upside. caroline: i think what's interesting for the theme of 2016, we're just heard chris say perhaps the funding amount wasn't the same in 2015. it was a bit lower. the exits weren't really that for 2016 as well and how much oes that affect the ecosystem?

cory: we know snapchat was getting ready to come out and that changed the markets that supported that big i.p.o. there have been a limited number of i.p.o.'s because it's changed. we have a lot of companies that are getting the funding very late stage. we are talking about a g round. who has a g round? companies aren't private that long but this company is and needs capital at this point. raises by uber. historically companies would have gone public. as a result of that, although we expect companies like snap chat, four scout, others, we still expect the employees of these companies are going to return. eventually they'll demand these companies get private forever because of the kind of money they have taken in. caroline: so maybe we'll see more coming to the market, chris. will we start to see more money going your direction or later

funding because rates are going up perhaps the rest of the public market isn't looking so attractive. chris: rough the i.p.o. path. i think the pipelines are saying there's 35 to 40 companies that could go public in 2017. cory: not a huge number. chris: not a huge number. and then also i think the m&a front is interesting. wal-mart buys jet. g.m. buys cruze. i think 2017 could be a good year. cory: and with the possibility of a cash repatriation with a trump administration with a republican senate and republican house. you could see big piles of cash that could be used for m&a because they want to get ahead of the new technologies and products. caroline: in europe it was doucha telecom that was the biggest so it's the older

players getting in the venture plays. where are the hot sectors in the tech industry? tech. bout syn you play in europe. chris: sure. there are several sectors. there is the deep technology which i think will be a big focus in 2017 as i said earlier. automation. not only automated cars but -- cory: roberts. -- robots. chris: yeah. these -- the uber of everything, yes. i think there will be a lot less of that. caroline: thank goodness. we used it a lot in 2016. cory: i have the uber of whatever should turn around and walk out of the office because it's been played out in the markets too. chris: and see cyber security. cyber security has been

commission critical for a while but as we've seen state sponsored hacks during our election, people are realizing this is a bigger problem than they thought. caroline: some money has gone into supporting the smaller rounds, the seed funding. you say it's getting pretty hot out there. what is the funding scenario like that if i am an entrepreneur looking for money both here in the bay but also outside? does it feel easy? is it too easy to get cash? chris: well, it's a great time to be an entrepreneur. it's great for v.c.'s. there have been massive funds raised in 2016. so while the funding pace has slowed, there's certainly an increased capacities for v.c.'s to fund. they can only sit on their hands so long. cory: a lot of the money we're talking about, these big rounds, late rounds for uber erest, they were

drawing it from t. roe, from fidelity, firms that wanted an i.p.o. out. the venture funds that have raised a lot of money, traditional, you know, sand hill road venture funds have drawn in really big sums which says to me that entrepreneurs with powerpoint presentations and sneakers and a dog are going to get funding, again, a lot. caroline: what about if we do see an element of 2017, what will it sum up for you, do you any? and what do you keep back to follow around funding if you see more players like fidelity coming in and maybe eating your lunch? chris: it's not on the late-stage folks but we are seeing corporate in strategic venture. they will demand returns. can we see home runs in the deeper technology spaces like we mentioned? and not just home runs in terms of returns but from commercialization because i

think 2017 will show itself as a refinement these deep technology products, not necessarily full commercialization. caroline: chris, it's been so good to get your perspective on the last day of trade and technology of 2016. the opportunities ahead, cory johnson, as ever, joining me. that was chris from bloomberg capital. not to be confused with bloomberg. a story in india. apple wants tax concession on iphones that the company plans to manufacture there. apple wrote to the industry ministry last month seeking lower important manufacturing duties. the tech giant is eager to kick-start operations in the world's fastest growing market. it's grown slow in other countries such as china. and coming up, from fake news, controversies to a big push into self-driving cars, we'll discuss the highlights and the low lights from the top tech companies, including apple, google and facebook. this is bloomberg. ♪

caroline: picking your new year's resolutions can be a bit tricky. not for facebook c.e.o. -- twitter c.e.o. he tweeted, following in the footsteps of brian, what's the most important thing you want to see twitter improve or in 2017? well, like him who had taken to twitter for consumer advice, dorsey got thousands of responses. on friday he wrote, thanks for all the feedback. yesterday, four clear themes you want to work on. abuse, edit, topics and interests and conversations. and twitter isn't the only tech company that could learn a few

lessons from the past year. earlier i spoke with bloomberg tech reporters covering apple, google and facebook to find out whether they considered what the year's hits and misses were. >> well, things have proved this year it's more than facebook. it saw amazing growth for instagram. now 600 million users. facebook messager has become increasingly popular and very good at copying snapchat. lot of things on messager and instagram also introduced which had tories become stories that snapchat has. it's almost as popular as snapchat itself. caroline: and they have the people coming. they have the monetization coming. let's go to some of the misses because that swept a lot of key players. twitter, i know you cover as well.

but at the end of the 2016, it just crescendo for facebook. sarah: technology companies including facebook are realizing now or should be realizing now that they can't just sit back and say we are these neutral platforms, we have no baring on what our users do. no, people are saying, you are responsible for the information that you distribute on your increasingly popular networks. and we saw it with fake news. we saw it earlier in the year with trending topics. facebook has to start to take seriously its roles. caroline: mark, this is something google, the owner of youtube had to be dealing with. what are some of the key caveats that google, alphabet, the parent company, has? mark: it had less pressure than facebook. there's been an issue with google. with controversy if you search for something for a while, if you search around the holocaust, you get like obvious hate and racist sites that pop up and there are issues with quality control. sort of a similar issue that facebook has.

you have search results that aren't necessarily true and verified. caroline: google can't be all things to all women and men. they doubled messages. this hasn't paid off for instagram, snap and the like. mark: the issue that will go forward, especially the election, things get sensitive what is fake news and the issues are removing conservative sites or progressive sites. liberal sites. it's something that google just like facebook has been reluctant to play an editorial role. caroline: talk to us a little bit about some of the wins for google and indeed alphabet and the fact they saw this new operating way, seems to have helped them out with the separation of the company and also a.i., what a winner towards the end of 2016. mark: right. they shifted all their attention towards a.i. a.i. first company and it's paid off for them in pretty significant ways. alpha go was an algorithm that

was a big win. it was an impressive feat. they beat this game what people didn't think they could accomplish for a decade now. and then they put together a leading library of machine learning and they really have shown they're ahead of the curve there. alphabet the structure, more in 2015 but 2016 really showed investors are seeing a lot more transparency and a lot more confident in google's ad revenue. caroline: and google photos. that's something i have been adopting. mark: yeah. messaging has been a mitt. alo is the app they put out which i don't think any of us use. i am not sure many people use. they're still behind on facebook in messaging. sarah: well, facebook messager, instagram has messaging now. they're everywhere. caroline: alex, the juggernaut that is apple, it's still the most valuable company in the world. we can't take that away from them. what are the misss? alex: can't take it a miss.

pple have had their biggest -- saw revenue decline since 2003. iphone sales declined. they've had a bit of set with law authorities about privacy and their desire to protect their users. and the messages. amidst all of this, the stock has performed in line with the market. they have managed to plump up the shares with buybacks and dividends and a lot of expectation going for next year for the next iphone. caroline: that was bloomberg technology sarah, mark and alex. of course, making clear that they were in here working on the last day of trade. so apple, of course, we heard they managed to keep hold of its valuation overall but how did the rest of the big players perform this year? let's check out facebook, amazon, netflix, google owned of course by alphabet. and it's been a pretty rocky ride. ou can get this chart.

look at the beautiful colors we have for you and i am going to check out the winners first because in the blue. steady uptick. now, remember what a horrid time they had postelection. we had the trump win and so many people were trying to understand whether these technology companies and their valuations would be supported by the next president-elect donald trump. amazon did see a big fall but it has clung to its winning lead. we got 10-point uptick over the course of the year. so amazon was your winner in the fang. facebook, a very close second in the yellow line here coming at nine percentage points higher versus the zero. and the white line, we saw netflix remaining after a brutal gick of the year, remained subzero for most of it. then in october, along with the real height we saw in october in september, october, remember this is when the top companies in the world were dominated by technology.

you saw the most valuable companies all tech focused. this helped push netflix higher along with its numbers. it was up about eight. but the lagging is google. alphabet, of course, the owner. managing trajectory really pretty lackluster. it still ended in positive territory. this is how your 2016 played out in terms of the fang. we will have to see how the new administration in 2017 plays out as well. but still ahead, we'll continue our focus on the tech breakthroughs in 2016 and a look at research. regulators are questioning the ethics behind the science. and make sure you turn into bloomberg tv weekend where we'll bring you our best interviews from the week, including reaction over the u.s. serving russian officials sanctions over cyberattacks. they said it was an attempt to interfere with the presidential election. the best of bloomberg.

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caroline: china will pay licensing fees to qualcomm, a move the u.s. company can defend intellectual property in the biggest smartphone market. it's the first time qualcomm has asked china to enforce terms that resulted in antitrust violations. and qualcomm sued meizu in france, germany and the u.s. now, gene research has been around for years but a breakthrough technique and the zika virus volted the idea into mainstream conversation in 2016 like never before. >> following the global outbreak of the zika virus in 2016, the idea of gene editing entered mainstream conversation like never before. yet, scientists have been knee deep in gene editing research for years now, and just recently made major strides in a groundbreaking technique called crisper. so just what is crisper?

this is a gene editing technique that involves cutting out a problematic piece of d.n.a. like the genes for an inherited disease and replacing them with healthy ones. and companies are rushing to use it. take this cambridge base company that's foes cussed on crispr and it raised money for an i.p.o. >> we can read the programming code of patients with cancer now and in being able to read that programming code we know what the software bugs are. >> which in theory gets scientists a step closetory a cure. yet, it was the zika virus that really pushed the idea of gene editing into the public spotlight this year. on february 1, the world health organization declared zika an international public health emergency. the world bank has estimated the impact of zika will hit $3.5 billion in 2016. an expensive problem made worse by the fact there were no specific drugs to treat zika

and no vaccine to prevent it. but in a handful of labs around the world, scientists were already working on a solution. scientists who believe the best way to control zika is to control the mosquitos that carry it. >> this is the lab at the forefront at the fight against the zika virus using genetically modified mosquitos. >> a british biotech company is lieding the charge on gene drive research. simply put, it's gene editing that's quickly to push an alteration through an entire species. >> what we've shown in various field trials in countries we can reduce the population of mosquitos that spread zika virus and 90%, in about six months, which is an unparalleled level of control. >> it's an idea that the bill and melinda gates foundation championed in their $2 billion fight against malaria. >> gene editing is such a basic

tool and it's going to pervade all the work in the biological sciences. those tools even for diagnosis, doing gene knockouts to understand the disease models, you really can't understate what a great set of tools they are. >> but the tool is controversial and ethics committees around the world are debating whether humans should be able to override natural selection. meantime, darpa is preparing for the worst. in september, the pentagon research arm announced a new program to look into halting accidental gene drive spills. thereby preventing unintended consequences on the human gene pool. but regulators will have to act fast in 2017 as experiments are already under way. in october, chinese researchers became the first in the world to test crispr modified cells on a human. caroline: that was bloomberg's caitlyn meehan reporting. now, that does it for this edition of "bloomberg

technology" and for 2016. we wish you all a very, very happy new year. and make sure, of course, you join us next week because 2017 means "bloomberg technology" willing on the ground for the consumer technology show in las vegas. a.o.l. c.e.o. and turner chairman. be sure to tune in. but stay with us now just before you go away for your champagne for "studio 1.0" with emily cheng. she will talk about the rapid growth of a photo sharing app and the decision to sell the company. this is bloomberg. happy new year. ♪

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private wifi for your business. strong and secure. good for a door. and a network. comcast business. built for security. built for business. hey, drop a beat.flix? ♪ show me orange is the new black ♪ ♪ wait, no, bloodline ♪ how about bojack, luke cage ♪ oh, dj tanner maybe show me lilyhammer ♪ ♪ stranger things, marseille, the fall ♪ ♪ in the same place as my basketball? ♪ ♪ narcos, fearless, cooked ♪ the crown, marco polo, lost and found ♪ ♪ grace and frankie, hemlock grove, season one of...! ♪ show me house of cards. finally, you can now find all of netflix in the same place as all your other entertainment. on xfinity x1. ♪ >> i'm taylor riggs. we will begin with a check of the first word news. president-elect trump is praising vladimir putin's decision not to retaliate against president obama's expulsion of 35 russian diplomat.

he tweeted, great move, i always knew he was very smart. putin declined to expel exploit ofespite the his foreign ministers. and specializing in russia relations and gave his take. >> gliding donald trump is trying to do is negotiate new understandings with putin, who wrote the art of the deal -- he after all wrote, the art of the deal. and will the sanctions -- with the sages, what are we getting back? >> the senator of maryland the top democrat on the foreign relations committee says he expects congress to take action beyond white house sanctions. he spoke on bloomberg today. >> obama waited for the report from his advisors and the report was just obtained. i think he calculated as to what was th