>> 1 p.m. in hong kong, i have an update on the top stories. china's factory prices rose of the fastest pace in more than five years in december. up 5.5% from a year earlier. that means it is poised to become a global inflationary source. chinese consumer prices climbed in december below economist estimates. on department store operator news alibaba and others want to take it private. the statement says the deal will happen at 10 hong kong dollars per share which would value the company at $2.5 billion. president-elect donald trump's

in-law will be a senior unpaid advisor. jared kushner will work with reince priebus and stephen bannon. he is married to ivanka trump. he is described as an asset and respected advisor. global news 24 hours a day powered by more than 2600 journalists and analysts in more than 120 countries. let's get a check on the market. afternoon trading getting underway in hong kong and china. hong kong gaining have to present while shanghai is unchanged. jen jen up 3/10 of 1%. this is bloomberg. ♪ caroline: this is "bloomberg technology."

jack ma's trump card. can the chairman deliver one million new jobs between heightened tensions between beijing and the president-elect? our exclusive interview with gm ceo ahead. it is her job to make sure tech titans play by the rules. stay tuned for our conversation with the eu competition commissioner. first to our lead. alibaba group chairman jack ma met with president-elect donald trump monday. ma said the men discussed how alibaba is focused on creating first to our lead. one million u.s. jobs in five years. >> we discussed american selling through the alibaba platform to china and asia. we mainly talk about small business and young people and american agricultural products in china and we think the

china-u.s. relationship should be strengthened, more friendly. caroline: ma's visit is the latest from a growing list of business leaders eager to work with the president-elect. david westin spoke up woodberry -- caught up with mary barra. spoke first public upcoming administration. >> there is a lot of opportunity. we have more in common with the administration than we have at odds. we are looking to strengthen the country, strengthen business performances. we are a big provider of jobs. we provide over 100,000 good-paying jobs and we are looking for reform, regulatory streamlining. these are all things that are going to improve our business. >> so there is opportunity for you? >> i believe there is. people need to understand this is a very complex business with long lead times in a product

that is build in michigan. those were decisions made a few years ago. we need to understand how investment is made, but look for the opportunity. david: let's talk about autonomous vehicles. where does that project sit right now with gm? everyone has some sort of autonomous venture. mary: we feel good about where we are at. we have vehicles getting real world experience in san francisco, arizona, and now detroit. it is about experiencing all the different situations. san francisco, downtown san francisco. there is not a much better place to experience a lot of traffic, a lot of things in the roadway, double-parked cars. i think you will see significant movement from us early this year. david: when i talked to dan last june, you talked about changing

from a model selling cars to providing a service for a fee. where are you in that process? mary: as we get to economist vehicles, we believe it will start in a rideshare type of environment and i think customers will define how it goes. in today's business, we are excited with what we will launch with cadillac. we have a subscription opportunity for people who really want to drive the performance v-series on the weekend but need the functionality of an escalade. we are experimenting with that. david: you're expecting a record year. you set a new record. what does 2017 hold? can you be that record again? mary: we think we are going to have another strong year, much like 2016. at general motors we are looking at continuing to improve.

that is our goal, to build on momentum, kerry that into 2017 on great vehicles like the chevrolet volt and gmc terrain. david: you have a great product that people want to buy. you also have to have the money to be able to part with it. as you look at the factors that drive 2017, what are the ones that are most important to you? wages, disposable income, consumer confidence? mary: consumer confidence is important but we are looking at wealth going up. if the indicators stay in the direction we think they were going, we'll have another strong year. david: one of the topics is wages. we had numbers come out on friday. you are a big employer in the united states and elsewhere. are you seeing wages go up materially? mary: i think they are going up

as expected. it is important that we manage that but also understand where we fit. of the 100,000 jobs, whether they are technical jobs, assembling jobs, we have good-paying jobs that allow people to live a good life. caroline: that was mary barra with david weston. autonomous vehicles are a focus for gm and also took center stage for chrysler. the company highlighted its self driving minivan. the two are doubling down on their partnership announced six months ago. joining us from new york is michael wolff. it was big at ces as well. it was interesting listening to gm saying autonomous driving cars will start through sharing of cars. do you believe the same? david: each of the manufacturers

are trying to get into the -- michael: each of the manufacturers are trying to get into the uber business. they are looking to have ongoing revenue streams. technology usually follows progression. the auto manufacturers have a lot to do before they get to self-driving cars. improving the experience inside the car. that is why we see the integration announced with microsoft putting its court, in two cars like -- putting its cortana in cars. caroline: we spoke to peggy johnson of microsoft. she was saying it will be connected vehicles that dominate by 2020. when do you see autonomous driverless cars taken to the streets in a wide ranging way?

michael: it will be in waves. it will begin in major cities where roads are well-defined. we are feeling more like 10 years out before we see this practically on every highway. caroline: car companies are spending in the right way. you look at some of the german manufacturers. volkswagen has been investing in a uber rival. michael: no, they are not. they are ending up fragmenting the market. they are ending up trying to compete with uber, which in a lot of ways is a fools errand. uber has a strong share in the market. they are better off partnering with uber and any of the other ride sharing services versus trying to build their own. caroline: when it comes to be likes of apple and google dealing with auto giants, who, in your mind, is the winner?

michael: each of these smart agents, the voice activated systems, are going to be in different cars we have microsoft's cortana in some cars, alexa in sum, and siri in some. people will have to get used to interacting with their car the same way that they interact with her amazon at go at home. all three of the major tech companies are going to be involved. caroline: when you look at it from an investment point of view, is it startups that you want to plan money into that could be building out of this ecosystem of driverless vehicles? michael: there are a lot of startups around the space and most likely they will be producing pieces of technology, middleware that will be integrated into the car.

it is not likely we will see a car company standing up an entirely new company that will do its own autonomous vehicle. caroline: what about u.s. versus europe versus asia? are there other regional it is not likely we will see a winners here? we focus on silicon valley and detroit. michael: you have to expect that each one of the major international carmakers will focus on ways in which they can try to get economist vehicles. at the same time, -- get autonomous vehicles. at the same time, they will look at electric cars, a better experience in the car. in some ways, they will let the u.s. companies get arrows in their back the same way that pioneers do and they can be the followers rather than throwing so much money in front of this. caroline: michael, thank you and staying with us throughout the hour. a deal we are watching.

a popular project management in but. it is being bought for $425 million. they are paying $360 million in cash. the rest is restricted to stocks and options. it is expected to close this quarter pending approval. juno therapeutics is on the forefront of producing cancer-fighting drugs but have faced some serious setbacks. we will go live to speak with the ceo next. a reminder that all episodes of "bloomberg technology" are live streaming on twitter. ♪

caroline: bloomberg television is live from the jpmorgan conference in san francisco, where we have been bringing you interviews with some of the biggest in the industry. my colleague eric schatz has joined us in the city. eric: we are just blocks away at the westin st. francis and i'm here with hans bishop. so everyone knows what we are about to discuss, juno and a handful of other companies are working on immunotherapy treatments for cancer. hans: cart therapy and ctr therapy. eric: how important is it to be first to market with a cart? hans: the market is always a consideration, but it is worth

remembering that these technologies are in their infancy. we believe there is a lot of opportunity to improve on the results we are generating today, which themselves are very promising. ultimately what is most important is having best in class results. both of those things are important. eric: anyone familiar with your company and stock price will know that juno was forced to suspend one of its cart trials in november after a couple of patients regrettably died. one of your competitors submitted a drug application to the fda for a cart treatment that targets the same antibody, c19. if we look at this as a horse race, are you behind? hans: we don't look at it as a horse race. to answer your question, we are behind. we don't look at this as a race.

we absolutely believe that the technologies you are seeing today, if you go forward three years and look back, you will see improvements. our lead compound already uses best in class technology where we control more things in the production of that product that we think equate to efficacy and safety. we need to generate more data, but we are quite optimistic that the data rate -- that the data we generate, even though it is behind, could prove to be best in class. in that case, second is fine. eric: the cart 15 trial is dealing with leukemia. why is that proving such a tough not to crack? hans: when you treat an adult patient with acute lymphoblastic leukemia, they see the tumor and

then they start, the cells start growing quickly. we believe the toxicity from these treatments relate to how fast the cells grow. in a.l.l., there is so much growth to be found, they tend to grow faster. that is why we believe a.l.l. as additional challenges. hans: is it too hard now and you should focus your efforts on lymphoma? hans: i don't think so. we are far from giving up. the patients that we are treating have no therapeutic options. i think all the data we had today acknowledging the challenges you pointed out, in aggregate really encourages that we come up with therapy that may even be curative. eric: there are some people that worry that the industry, companies like yours, are moving too fast with massively powerful

technologies and not worrying perhaps about safety enough. is that a fair concern? hans: i don't think so. i think it is the perspective that counts. if you meet a patient today who has relapsed with acute a.l.l. and can't get onto a clinical trial -- eric: and is going to die. hans: they will not say we are moving too quickly. eric: the you have an update why juno has encountered brain swelling that has proved fatal? hans: that has been a problem that focused on a.l.l. we have seen toxicity in other places, but it is rare. we are still going to our investigation. it is a thorough process. no update yet but we will have one in the next few months. and can't get onto a clinical eric: at some point, you and others are going to have to consider pricing for cart therapy. any idea on what it is going to cost when a treatment of this

nature comes to market? hans: it is too early to say. the only good way of pricing a drug is when you have the data in your hand that supports and approval and then you can make an assessment about value. i can tell you that he value these things are going to generate could be significance. making the toughest reimbursement agency in the world in the u.k. is called n.i.c.e. the u.k. put all of their reimbursement through this agency. they did a mock review where they look that -- they looked at pediatric a.l.l. and if 50% of kids are cured, what with the value be? it would cannot to $750,000 per making the toughest reimbursement agency in the world in the u.k. is called patient. if a single dose of cart cells could get 50% of children into durable remission, that saves

the system a huge amount of money. even more important, it is curing a kid of cancer. eric: are you worried at all about the dismantling of obamacare, given so much the work will be done in a hospital environment? hans: i think it is too early to say. what is most important to companies like us is a reimbursement environment and health care environment that encourages innovation. if you think about the opportunity to reduce cost of health care, there are few opportunities of really doing that without better technology. you are not going to get there just by cutting. you need things that are going to displace a lot of the cost. leukemia is a good example. cell transplants cost from

$400,000 to $1 million. they come with a 20% mortality risk. we have to do better than that. eric: i hope so as well. thank you very much. caroline, that is hans bishop, ceo of juno therapeutics. caroline: such a crucial conversation. eric all over that event for us. lindahl come is in talks to sell towers in german for $800 million. the towers have been tagged. the deal could be finalized as patient. soon as next quarter. coming up, ces may be wrapped up, but there are lingering takeaways from the event. we will discuss next. this is bloomberg. ♪

caroline: we just wrapped up ces this year and big announcements, from autonomous cars and ai.

michael, what really grabbed your attention? michael: the big winner at ces was amazon with alexa. there are over 1000 different companies that are integrating alexa into their products, everything from smart refrigerators to phones to cars. the other thing is there is tons of car tech. self driving vehicles, ways in which the automobile will change her experience inside the car, but what was most surprising was companies that are not tech companies presenting. the carnival ceo, arnold donald, showed a new set of sensors that guests will wear throughout the cruise to change their experience. the ceo of under armour showed ways they will integrate technology in running close and athletic shoes. caroline: when you are looking at investment opportunities, the competition for buying assets

comes from the old guard, larger the other thing is there is tons companies trying to reinvigorate companies trying to reinvigorate themselves. michael: there are lots of small companies at ces, but very few will be acquired by big companies. big companies are putting a great deal of investment into their own research. while there are lots of small companies, many of them will likely not be around next year. caroline: always the upsetting element of ces. it must be exciting to present. you will be covering that throughout the hour. coming up, regulation battles with the u.s. from google to apple. what does she think? this is bloomberg. ♪

shery: it is 1:30 p.m. in hong kong. i have an update on the top stories. u.k. foreign secretary boris johnson is building bridges in washington ahead of a brexit. he claims trump team says it was at the front of the queue for a trade deal after leaving the european union. angela merkel says britain must accept freedom of movement if it wants access to the single market. alibaba's jack ma is the latest business man to meet donald trump. they discussed how to lead the estranged u.s.-china ties and creating one million new jobs in america. the platform in hence to add many small and medium sized jobs

in the u.s., each of which would hire at least one person as commerce grows. >> he has the solutions and wants to discuss with china and us how to do better. i had suggested we could go through the business community to understand each other better. shery: yahoo! has announced sweeping management changes. president and ceo melissa meyer and five others will leave the board which will be reduced to five members. the new operation will be called shares rose slightly after hours. global news 20 hours a day powered i more than 2600 journalists and analysts in more than 120 countries.

this is bloomberg. let's get a check in now the markets have been trading in the asia-pacific. >>this is bloomberg. most asian markets tracking higher. the regional index to a level we have not been since the beginning of november. hong kong doing a lot of the heavy lifting today. energy players coming under pressure with the big slump in the crude oil prices. you are seeing some of them come back. 2%.ghai energy up by retail stocks looking good in hong kong. the ppi data coming out of shanghai. it is down 2/10 of 1% in late trade. we are seeing the stronger yen impacting late trade down 7/10 of 1% today. australia has closed the session the work by 8/10 of 1% due to weakness from its energy players. it is the first author have had for 2017. quickly having a look at some of the movers. we are talking about jack ma's movement into china. retail groups up by almost 35% in hong kong. this is coming through for the company. otsuka up 8.5% and see a good

support from gold players as well. we will be live from london at the top of the hour. this is bloomberg. ♪ 2%. caroline: this is "bloomberg technology." back to the big headline in tech, at the top of the hour, alibaba group founder and chairman jack ma met donald trump. they discussed on how alibaba is concentrating on creating jobs in the u.s. the guest host for the hour, your take when you are advising ceos and management boards, would this be something you would be advising? would you say, jack ma, you need to be building bridges? michael: look at the number in perspective. there are roughly 10 million ebay sellers who make their entire living by selling on

ebay. it is not that surprising that you could have a million people who could be making a living from selling through a platform like alibaba. the question is, i am not sure what they will be selling. there isn't a lot of experience in small and medium-sized businesses selling to china. this is a huge goal. i'm not sure if it will be accomplished. caroline: when you take into account they want up to one million, thank you michael. as 2017 gets going, u.s. tech giants are gearing up for hurdles in europe. they had to court to settle a number of cases regarding taxes and privacy. we spoke with the eu commissioner, margrethe vestager. >> i consider this an important issue. we cannot do our jobs if we do

not get the right information from the business is in question. the concern we have here is that facebook didn't give us the right information during the merger procedures. that is a huge problem if that appears to be true. if we are not told the full story, we will not be able to take -- make the right decisions and enable competition. that is why this is so important, both in the concrete case and also as a take away for the entire business community, that we will police our procedures to make sure we get the right information we are asked for it. otherwise, we can't do our job. we try to do that as best as possible within a short deadline we work in.

>> you have been looking at google, as well. how satisfied are you with what they had to say? ms. vestager: we got the last part of the android, so we are in the process of analyzing it. it is too early to say what will be our final decision, but we are in the process of going through it. it is very substandard, and there is a lot of data to go through. -- it is very substantiated -- substantive, and there is a lot of data to go to. >> you have seen the shifting political firmament. what does that mean for your office, and looking at competition? ms. vestager: i think it is important that people see that we do our best to do the job ahead of us, to make sure that citizens are not being -- when they are in the marketplace,

that businesses do not agree on prices in the back office or petition the market, but that this is competition with products, prices, services they can offer customers. i think for every citizen, it is important to see that the authorities do their job, and they do the job to service the citizens on behalf of the citizens, where the individual might be too small, but where we, together, can do something good, making society work. in that respect, i think it is important, what we do. >> how pivotal is the apple case to your office? it elevated you to a new prominence. better known in silicon valley, some have some animus towards you. how do you make that relationship better? ms. vestager: we try to make it absolutely clear that we have no issue, no grudge against any company. we are aiming at behavior.

for instance, the thing that happens, if one company or group of companies are given state aid, which is not available to other companies. that's seriously un-levels the playing field. that is the issue. i don't think as a company, when you are a competitive, when you have a competitive culture, you want to innovate and present the best product to potential customers. how can you approve of your competitor having benefits that are not open to yourself? in that respect, of course, we also serve the business community by enabling fair competition. caroline: that was the competition commissioner, margrethe vestager. still with me as michael wolff. you believe europe is leveling the playing field? michael: european regulators are

missing the big picture. the big picture here is that it is going to be hard to regulate these companies, and expect there is not going to be, there is not going to be somebody who succeeds them. if you look back to what happened in 2009 with microsoft, microsoft had to un-bundle its internet explorer from its main product. as a result, and for other reasons, we have google chrome, but dominant -- the dominant operating system. every time regulators take apart a technology product, all the are doing is allowing for another big technology company to step in. this is really not about competition. it is about favoring one company over the other. caroline: when you are saying, looking at the playing field, looking at how europe is evolving itself, is there any competition, any growth of any rivals that could take on

silicon valley? michael: it is hard to imagine that anybody could compete with the likes of facebook and google and amazon. what would be more constructive is, these countries providing real venture funding, and large amounts of money that can create new entrepreneurs that can build is, these countries providing new companies that are competing directly against those giants. caroline: if we do see the likes of apple, google, having certain benefits in certain countries, doesn't not stifle some -- does it not stifle some growth? it can't protect profitability to such an extent. michael: where regulation can make sure those new companies are not blocked from those services, it makes sense. with google, to say the android operating system is to dominant,

there is nobody else that is going to create a new operating system. the operating system wars are over. restricting it takes away innovation. it actually means that companies will not make investments, and what will end up happening is, regulate one company, it opens the window for another big company. caroline: talking of big companies. we will be showing breaking news now. system. the operating system wars are yahoo! is naming eric brandt as chairman. marissa mayer will resign from the board of yahoo!. yahoo! changing to facilitate transition of the company to an investment company, and the company name will be changed to all--- all abba after closing. i know -- is this a positive step? michael: it is part of a progression. as the company split into the

core yahoo! business, which has been sold to verizon, and the other part, which has nothing to do with the operations, which is the company's ownership of alibaba and yahoo! japan. that company needs to be managed by people who are focused on monetizing the investment and doing so in a way, with a minimum amount of taxes. marissa mayer was brought in as an operating executive, and as the company is no longer an operating company, it makes sense for her to not be on the board. caroline: i know you served on yahoo!'s board, it is good to have your perspective. michael wolff's perspective. later, our coverage of the jpmorgan health care conference continues with a guide to biotech, exploring what's next under president trump. ♪

caroline: coming back to biotech and our coverage of the jpmorgan health care conference, third rock ventures is one of the most well-established companies at the showcase. they are based in 44 portfolio companies. to discuss the 2017 outlook is third rock ventures partner, thank you for joining us. i have a chart to kick things off. i want to look at what 2017 might mean for ipos and biotech. ticking down, it doesn't look pretty. $11 billion is all we have in biotech? only one deal with a big size, everything else under $1 billion. >> 2017 will be a good year. 2015 was a spectacular year for

ipos, and if you take a 20 year context, 2017 will be a very good year. it will not be 2015. we will probably see something like 2016, maybe better. caroline: when we are looking at the exit strategies a certain companies, is it happening more for 2017? do we need to wait for certain companies to hit critical mass? what is making 2016 not back on the agenda? >> we could see a strong mna year in 2017. will be interesting to look at the number of fda approvals that come forward. what he 16 was a quiet year. 2014 and 2015 were great. caroline: fda approvals could be showing the way. what about the level of innovation being made by these growing companies? >> i think the innovation is spectacular. we are in a large secular bull on innovation.

biotech is volatile in the public markets, but we are in a spectacular time of fundamental innovation. caroline: dig into the intricacies. where will we see leaps forward? i know we have been looking at regenerative medicine. >> i think we will see more precision medicine, regenerative medicine. caroline: give us an idea of what precision medicine is. >> the right drug for the right person. blueprint medicine is an example. caroline: big data can help affect the targeting? >> that's right. that is another trend, along with precision medicine, convergence. big data helping point does the right way. caroline: when you are attending something as vast as the jpmorgan, looking at the u.s. and europe on portfolio caroline: when you are attending something as vast as the companies, how do you find these

particular ones to go in, to invest in? >> that is the trick, isn't it? there is so much wonderful, so many wonderful ideas, so many possibilities. you do need to focus on where the places you will have the right teams, where the right field of science and medicine where you can create something transformative. it's not easy. caroline: what about the regional perspective? is it all about what is happening in silicon valley in the u.s.? what about asia and europe? next there is spectacular innovation on a global basis. there is no question the boston, cambridge, and san francisco are the number one and number two halves. -- number one and number two hubs. caroline: how does your view change since the president-elect is donald trump? >> there is lots of uncertainties.

there are things that could be positive. talk of bringing back cash that talk of bringing back cash that american companies have trapped overseas. we talked about mna, that could be a big boost, a turbocharger on the m&a side. caroline: come back in 2017 and let us know how it goes. we will continue our coverage from jpmorgan health care conference in san francisco on tuesday. we will hear from the incoming ceo of eli lilly. tune in 10:00 a.m. eastern. don't miss it. up next, a look at how the iphone became apple's most important product, and whether the company can re-create the success. ♪

>> today, apple is going to reinvent the phone.

>> 10 years ago, steve jobs unveiled the iphone. at the time, it was the heir to the ipod, albeit an expensive one. at the time, it was the heir to since then, it has revolutionized the smartphone market, destroying nokia and blackberry and inspiring a handful of new arrivals around the world. apple has sold over one billion iphones to date. they helped drive up apple's stock 850% to its peak in 2015. in 2016, analytics reported smartphone operating profit hit $9.4 billion worldwide. apple alone made up 91% of that. with these numbers come high expectations. the iphone is now apple's most crucial private -- crucial product. that has worried some investors, because annual iphone sales fell for the first time last year. apple's operating system held

onto just 12.5% of the global market, versus android costs nearly 87% in the third quarter. analysts remain bullish on apple. some believe the iphone eight will shatter all previous sales records. caroline: that was caitlin for us. since the iphone took off, apple has been under pressure to prove it can re-create the success. michael wolff is here. does apple still haven't? michael: they definitely still have it. with 100 million iphones used in the united states, they are poised for a large percentage of that base to upgrade to a new iphone 8. they have a lot more coming. it is likely that they will have much more integration of theory, their own messaging app will

have bots and another functionality built in. let's not forget, there will be a new operating system next year, likely in the middle of the year. apple already has everything they need to be successful. they don't have to have all of the market. they can skim off the most profitable customers, the ones who will not only by their phones but who will participate in the itunes and app store. caroline: you are sounding bullish. over the past decade since they launched the iphone, the market has been bullish. the majority, all the way back to 2007, have said buy, the green chart here shows how many analysts say buy this stock. 80% at current levels. the lowest was 65% in 2008. generally, analysts say by apple.

what about the movement into perhaps the emerging markets? does that say they could be low -- going for lower margin products? or will they keep going for the higher-margin product? michael: where apple comes out with lower cost products, they don't seem to do as well. they can go after the premium customer, they can go after the people who want to have the entire apple experience. all they have to do, really, is to get a large percentage of the one billion people today who are carrying an iphone, to be able to continue that growth. they have a lot of other avenues into the growth, including new products, like new apple tv products and a new tv operating system that will allow them to get more revenue out of this, not just in terms of sales of phones. caroline: this is the company aspect that will come into the foreground throughout 2017.

thanks, michael. activate ceo michael wolff, great to have you. twitter suspended the account of former pharmaceutical executive martin shkreli. that is for harassing a journalist. he changed his profile picture which was said to be embracing the reporter were they both disagreed over donald trump. that does it for this edition of bloomberg technology. you can watch all episodes live streaming on twitter. check us out at bloomberg tech tv. that's all for now. this is bloomberg. ♪

anna: china inflation jumps. producer prices climb at their faster pace in more than five years. what ripple effects will this have on global price pressure. manus: boris johnson faces parliament today after philip hammond insists no decision has been made on the single market. angela merkel reminds britain that access requires the four freedoms. anna: risen grants says the economy is already running hot and calls for regular rate hikes. says the econy