♪ riggs in sanaylor francisco in for emily chang and this is "bloomberg technology." u.s. banks post earnings this week. wells fargo says he needs to be a tech company. we will have a preview. plus, what it means for bonuses. the heartbeat of health care. are linkedand health

like never before. and, sonos sues google. system the custom sound company showing trademarks of a takeover? we will talk about the survivability of upstarts in the big tech era? breaking news. u.s. treasury has named no currency manipulators in its fx report, effectively taking china off of being a currency manipulator. again, the u.s. treasury has ine no currency manipulators its foreign-exchange report. we know that china was put on that designation list in august, being removed today. i want to get back to our top story. it is all about earnings season here. to reportnks set earnings this week after having spent billions on technology in

2019. that could be bringing a big change to the bonus culture as traders are being forced to unlearn some of their most basic assumptions about making money. us, our bloomberg finance reporter. what are we learning about unlearning the bonus culture on wall street? >> what we are unlearning is that bonuses or maybe a thing of the past. in the past, traders were always judged as these big players in the markets who could make outsized bets and outsized profits and money on the back of that. electronici of fication, the machines are doing the work for them so they cannot garner that kind of paycheck anymore. taylor: we joke about this all the time, instead of going back to cfa school, we will go to

coding school. lananh: what traders are trying to do now, at least the smart ones, trying to build in the transition for the future. while they may never be heavy quant sort data scientists or phd's in physics, they need to get up to speed, whether it is algorithm trading or electronic trading. it does not mean that they are going to write the code, necessarily, but they have to have some fluency with that topic. taylor: even though quan's and traders of that type are in high demand, it is not necessarily translating into a raise in composition -- in compensation. why the discrepancy? lananh: a recruiter i spoke to said that even though quan's are in very high demand, that does not necessarily mean that the

salaries and bonuses are going to come up in any big way. there is an emphasis on cutting costs, which means that the basic level of skill you have to have will require more technical skill. taylor: do you think this is just the beginning of what looks like a broader structural change undergoing the financial markets at this point? lananh: i do. a lot of the experts have said .he same the pace of financial innovation and movement is going to continue so if people want to stay relevant, they need to learn, up skill, and make that transition. taylor: any other reaction from the street? lananh: a lot of emails from traders saying, i wish i had gotten up to speed, and maybe i should take a class or something.

there have been a lot of soul-searching emails. taylor: can you remind us of size and scope? how many jobs have the potential to be automated? lananh: the people i spoke to have not really said because i think it is too wide to quantify. there is not a precise number. equities, foreign-exchange, a lot of these markets that are highly electronic are already seeing this change. on top of that, everyone is talking about the bond market as well. those are the most intuitive markets to see this transformation. eventually, this could head into investment making as well. -- investment banking as well. taylor: we will continue our coverage of bank earnings all week as the numbers come in. , aa has agreed to buy plaid

network that makes it easy for people to securely connect financial accounts to the maps that they use. visa will fund the deal with cash and data. there is expected to be no impact on the visa previously announced stock buyback program. coming up, we will talk to one of the biggest hospital systems in the u.s.. ofconversation with the ceo providence saint joseph's health from the health care conference, next. as we go to break it more headlines. as a.s. has removed china foreign currency manipulator. they are citing their foreign-exchange commitments. some comments on currency, according to treasury secretary steven mnuchin.

a semiannual foreign-exchange report. again, holding talks with the pboc on currency since august. originally putting them on that report in august, now removing china as a foreign-exchange manipulator. more details as we get them. this is bloomberg. ♪

oflor: the intersection health care and technology is never more important than at the j.p. morgan health care conference going on this week in san francisco. one of the biggest hospital systems, providence saint

joseph's, announced a partnership with microsoft in july. it's ceo rod hochman joins me now with his predictions for health care in 2020. one thing that stood out on your list was health systems starting to prioritize digital access. when it comes to care and collaboration with big tech, why do you see that as a prediction? withwhat people expect every other service in the economy, they expect to get on the app, make their appointments, do that. we are seeing this big revolution in the digital front where alllth care people want to do is figure out who their doctor is with a couple of clicks. taylor: who are the biggest disruptors and do those

disruptors continue in 2020? rod: there are a list of them. i think everyone wants to do health care. walmart, amazon. plus, there are a lot of startups working particularly in the ambulatory space. worry about my traditional competitors anymore. i really think about all of the electronics startups around us. we have to figure out how digital front end to make it easy for our customers to get in touch with us. taylor: do you view amazon's early entry into the race as a threat or a motivator? rod: that is a good one. i think both. there are certain things we will do with companies like amazon.

with our microsoft arrangement, they really wanted to help us make health care better and not necessarily compete with us in -- health care in the future, it is something we are working on. and i: data privacy, wonder if big tech is doing enough to protect health care data? rod: you said it perfectly. we are very worried. one thing our patients trust us is with their data. they don't want to see us giving away their data to someone else. we have been very protective

about that relationship. we are looking to protect partners that will understand that. thatink the difference is the consumer has to be in control of their data and they have to be a partner. it is not just that i will give up my data and hope something happens. i think the consumer wants to be a partner in this data transfer and understand what protections they have. see voicew do you assistants working within the health system? of the biggest problems today, if you have gone to see your doctor recently, most of the time they are head down on a mouse or keyboard and not making eye contact. we think getting information through voice will be critical for clinicians. their biggest complaint is about the electronic health record and

particularly about them having to be data entry clerks. so they will really revolutionize the way that tool works. clunky forit is too both the patient and doctor. i think voice activation is one of those things that will make it better for the clinicians out there. rod: our thank you to rod hochman, ceo of providence saint joseph's health. of healthis the head care technology and distribution at jp morgan. she has been a leading member of the research team met jp morgan for about 16 years. i asked her about the role of companies and how they play in the devolution of health care. >> the integration is more between medical and diagnostic. a labng it together with

company, they have done really well in being able to do patient recruitment, bringing new technology from a medical perspective to the marketplace. favorites one of our names on the tele-health side. the cost of the services. they announced an acquisition yesterday of a company called intouch. this creates a broader platform for them to be able to touch people in the hospital, at home. they have a great relationship with cvs. you look at companies making heavy investments within they --are the lisa: when you start thinking about making decisions around health care were artificial intelligence can play a part,

value-based care. we have to move away from fee-for-service to value-based care. if you are a diabetic, what is going to happen to you next? not just for me physical perspective but how about a mental perspective? that is where companies like teledoc come into play. you can get the help to walk through not just your physical ailments but your mental ailments. taylor: were the threats of amazon entering this space overblown? lisa: this will sound strange but i think amazon coming into any space is good for these companies. they make big investments to compete and it makes them better and smarter. when you think about a platform like amazon, really tailors to

bhe consumer, a lot of b2 companies, how they will put technology in the marketplace. taylor: do you feel like that makes companies better off now than four years ago. lisa: you have had a consolidation. you've seen cvs come together with aetna. united health care has a massive platform. a lot of that is because of competition in the marketplace. companies like amazon, the threat of an amazon, really creates the opportunity for companies to think about these things differently. taylor: when we think about some of the big issues in this space, drug pricing, transparency, medicare for all on the democratic platform, how is all of that forcing technology companies to look at the way they do business?

lisa: there are a few things. drug pricing, we believe you should price the drug correctly, there should be a price for innovation. egregious druge, pricing has to go away. we are seeing drug pricing that is mid single digits right now. transparency. at the end of the day, you should know what you are paying for. medicare for all, i don't think it is as simple to get medicare for all done as people believe. even if we have a democrat elected to the white house, most likely, the senate will remain republican and it will be difficult to come up with bipartisan support. taylor: that was my conversation with lisa gill, j.p. morgan chase managing director. coming up, what lies ahead this

year. this is bloomberg. ♪

taylor: netflix feeling the oscar nom love. forof nine films nominated best picture this year. "marriageshman" and story" giving netflix its best shot yet for winning the tom price. "roma" was seen as a favorite to win the best picture oscar but lost to "green book." as alphabet continues to compound on its defensible dominance in search and video advertising. our next guest has taken a look back on the digital ad space come or he says things look positive, with the strongest

uptick belonging to google. joining me, pivotal research senior analyst michael levine, who currently has a buy rating on alphabet. trends in thead last few months show you about how google was best poised to outperform? what i think you are talking to is the pivotal advertising insights product, where we survey about 55 large agencies and large marketers. , over the course of the quarter, was pretty clear increasing ad loads in terms of the shopping products, and on youtube. we were pretty shocked when we saw the significant improvement in r.o.i. for the third quarter, not only versus the third

quarter. when we looked at the q4 versus seemedseasonality, it pretty pronounced. taylor: another stock you mentioned that is poised to outperform relative to consensus his snap. snap frankly has been struggling. $18. now, trading at the median price target on the street is only about $19 per share. what is snap's angle here. how do they stand out against so many other big competitors? i think their execution has gone from being relatively lackluster to exceptional. amazon,, the cfo from the chief sales officer, jeremy gorman, also out of amazon.

really putting much more consistent best practices industry-wide into the company. hearing good feedback from the agencies, becoming more relevant, showing up more consistently on plans. was one of the ideas we had highlighted as one of our favorite for the year. taylor: where does that leave amazon? michael: on the advertising side or in general? taylor: yes, advertising. michael: i have done a lot of checks basically talking to large agencies that focus specifically on amazon. i think something that a lot of folks on the street don't necessarily understand or appreciate is that it is highly correlated to them with the business. their ad business for the most part looks a lot more like

alibaba, where you have a company, say, like procter & gamble, selling products on the amazon site, also spending money on advertisements. for is a complete win-win amazon. you get the consumer data, and it is a win for the brand manager at gamble. we are bullish. we think there are some good things going on. there are some interesting updates as you are mentioning them, conceivably on the deal front, with regard to amazon prime video. aboutad talked to tbs exceeding 40 million devices at the end of the year. there was also some chatter that they were talking about going in and trying to bite just trying to sell other apps across devices. taylor: where does that leave other competitors in the space. i am thinking his new plus and

netflix, potential oscar nomination. michael: i don't know if it is necessarily a bad thing for disney plus. for what it is worth, prime video, in my opinion -- i think of the amazon business as two primary things. you've got aws, then you have retail and all the things that drive the prime retail around. what amazon could conceivably be thinking about doing, trying to go ahead, giving away the fire hardware for free, then perhaps a subsidized prime offering. to the extent that they can build a more robust video ecosystem, on the advertising side, that would allow them to subsidize that. michael levine of pivotal research, thank you. theng up, we look at

largest chipmakers as the u.s. and china reach a trade deal. this is bloomberg. ♪ here, it all starts with a simple...

hello! hi! how can i help? a data plan for everyone. everyone? everyone. let's send to everyone! wifi up there? uhh. sure, why not? how'd he get out?! a camera might figure it out. that was easy! glad i could help. at xfinity, we're here to make life simple. easy. awesome. so come ask, shop, discover at your local xfinity store today.

this is bloomberg technology global link where we blew -- where we joined bloomberg daybreak australia. let's take a look at the top global tech stories of the day. i japanese billionaire seeks a special woman to fly with him to the moon. the first paying passenger on voyage3 maiden tourist is looking for applicants through a documentary he commissioned called "full moon lovers."

he has a net worth of $3.6 billion. the indian event in new delhi this week, but he is likely to face protests by more than half a million locals who are against amazon's practices. open anes as they antitrust probe into amazon and walmart. more than 560 million indian internet users will soon have unprecedented control over their footprint. the top banks are rolling out a system that gives consumers access to their data and a choice of what to share and with whom. it aims to protect data and the credit market. credit market.op spearheading

an effort in washington. they are stepping up u.s. lobbying to ease the fallout for ongoing trade tensions. ian king joins us. is this a sign that maybe they are worried about their relationship given that they are now hiring a top lobbyist. what we have seen over the last year or so amid the trade war, everything thought to be normal, the way the supply chain worked is now off the table and open to renewed scrutiny in washington. >> it is hard to overestimate the significance or how crucial tsmc is for the supply chain. as the biggested

supplier but they are also nvidia'sualcomm, biggest supplier. that is not just because they are the cheapest game in town. they have some of the best factories in the world. taylor: if there biggest suppliers are both apple and huawei, if one wanted to choke with taiwanto do so semiconductors? ian: this is the biggest question i think. if you are the u.s. government and determined that huawei needs to be shut down, a a lot of the chips that huawei gets are made in those factories in taiwan. if you wanted to really shut realhuawei as an entity, a chokepoint.

>> a real practice that has chinese business links and interests to step up lobbying in 2020? ian: we saw in our story, people are spending more. huawei are spending more. at the very least, you have to have more people on the ground, speaking to more people in the corridors of power in washington. not only are we seeing more action being taken, but an increase in noise around who is thinking what and who will take action. taylor: what do we know about peter cleveland and what he may or may not have done formerly at intel that could give us insight into some of the next steps? obviously is hand-in-hand with the u.s. government in terms of companies that are important. it has been lobbying that point

for years. he is going to know the right people, the right processes. that is definitely something they could use. >> is the recovery or bottoming out, despite the political challenges being ongoing? preliminary numbers out of korea, electronics talking about how prices are getting better. this is something a lot of people look at, the memory chip price trends as an open indicator of where demand is. i think 5g phones will require more memory, data, storage and we will have to see some demand on the backend. starties like google will eldin out infrastructure again. all of these are being taken as early indicators that we will see a better 2020. taylor: much more ahead, so

stick with us. this is bloomberg. ♪

taylor: optimism swelling around apple as da davidson chairman has raised the price target. he cited the potential of 5g as his reason. apple is already enjoying a rally thanks to strong iphone sales in china. sonos recently went to war with tech giant forhe infringing on patents. google says it's technology was developed independently.

with more on this story and the overall trend of upstarts fighting against the pull of industry giants, attorney ira blumberg, and brad stone. ond, let me get your take sonos and google. what does this take about sonos and where we are in the fight with amazon? brad: it is sort of a movie we have seen before in tact. i feel like -- in tech. i feel like sonos is having its tivo moment. in 2014, there was an earthquake. --zon introduced allete introduced alexa. suddenly, sonos was a step behind. i am not qualified to talk about the merits of the lawsuit. clearly, sonos is seeing a market that is racing ahead.

tivo has found a path forward in dvr's by licensing its tech. liker: how does a company sonos survive in this environment? ira: it is a tough one. sonos has a fairly high price point and google and amazon can sell their products for a lot less money. my understanding is that the google and amazon products are not as high fidelity. they are interested on the voice recognition technology. in a price squeeze, having trouble being profitable even at that high pricing. a royaltyrying to get stream that has allegedly integrated their technology. taylor: that brings us to a different company, suing apple

watch. does this case differ or is this similar, a big company stealing a small company's technology? is a heart tech company. apple said it wanted to work with mossimo in 2013. they had meetings. then two very senior executives of mossimo went to work at apple. is suing apple saying, you took our best people and took our technology. trial, it looks bad, but it gets down to the merits of the patent, which apple will probably try to invalidate. taylor: in your story, you have this word, if you will, called

seedlings. over marketng share? brad: a group of companies who are pioneers and find themselves bigng market share to the platforms. this is a's -- this is a script we have seen before in tech. big tex platforms have emerged and kind of become black holes or gravitational centers for technology. sonos is still valued quite highly. spotify. there are many others. it becomes increasingly more difficult. taylor: what does this show about how some of these smaller tech companies initially partner with the big companies? fitbit, mossimo.

ira: it is a quandary. for a small company to get traction, they have to interface with an be compatible with existing platforms. at the same time, if they open the kimono too far, they do expose some of their secret fore, which makes it easier these large companies to duplicate what the small companies have pioneered. if you are a small company focused on a single product, you are inevitable -- you are vulnerable to the -- the mobile phone is an example of that. when it started out, you could talk on a mobile phone. then they incorporated so many more functions. there was once a very healthy ipod and music player market.

nobody buys those anymore. you just plug in or wirelessly connect your earbuds to your phone. you have all this integration that has put aside standalone products. taylor: we were sort of joking here on "bloomberg technology," you get some of these small companies and you ask, what is ?our good exit strategy is it that are to be a sonos and fight back against a seedling, or a fitbit, looking to get acquired, is that a better strategy? ira: what do you see, what do you recommend? -- what do you see, what do you recommend? ira: if a company can get a good offer in a buyout, that is probably the best path. if you are a single product

company, it is almost inevitable that some larger company will integrate your functionality into a larger product. your options are diversify. just as apple did with smartphones. if smartphones had stayed phones, they would be single devices. if you are a small startup, one alternative is to diversify. the other alternative is to become attractive enough for an acquisition. the third is eventually phase out a product development and focus on technology development that you can license to the big tech companies. brad stonenk you to of bloomberg technology and ira blumberg of video labs. meet products on the market last year. the co-founder spoke to tom on

the sidelines of the greater china conference in shanghai about how competition for this market is shaking out. >> they want more plant protein, intake for the chinese consumers. unfortunately, last year, it doubled the effect of the plant-based food sector. like our competitors in the u.s. and like beyondmeat impossible foods, they have done very successful marketing and product development. if there isxpecting a company or a market for china. tom: do you have an estimate for the value of the market in china over the next five, 10 years?

is there a dollar number you are putting to your investors? vince: it is hard to tell right now. solide have is a very prediction. plant-based milk or drinks is about 15% of the dairy market. if plant-based meet could be up market inthe meat china. tom: you were talking about beyond meat. they are knocking at the door of the chinese market but they do face some regulatory hurdles. how can you be in a position to fend off that competition? vince: i don't see that as competition right now because we are small. i would be excited if they came to mainland china because that would open the market and

agitate people. the main goal is the same, to get people into more plant-based proteins, plant-based foods rather than animal-based foods. we have the same vision and same results that we want to achieve. it will be better. as soon as possible. :ince: you welcome the --tom you welcome the entrance? vince: of course. we are open to possible investors from the u.s. and of course mainland china. more and more local investors. investors from the u.s. or europe are more familiar. share the vision of is anternative protein important factor.

tom: we are looking at one million to 2 million usd? that you will be raising in the next month? is it too early to be talking about ipo plans? vince: it is too early, yes. taylor: that was zhenmeat co-founder vince lu speaking with tom mackenzie. next, we will hear about getting closer to silicon valley leaders. tesla shares today topic $500 for the first time after oppenheimer raised its price target. china's government signaled it would not continue to cut ev subsidies at the same rate as last year. this is bloomberg. ♪ ♪

facebook former general counsel will oversee t-mobile's acquisition of sprint if the

telecom deal closes. a federal judge approved the justice department's appointment as a monitoring trustee. federal antitrust lawsuit. several corporate counsel positions, most recently for facebook. attorney general william barr has requested apple to provide access to iphones used by the gunmen in the pensacola naval base shooting. he says it was an act of terrorism. it is an escalation of an ongoing fight between government and big tech, pitting privacy against national security. apple has given information for the icloud account but has refused to open the phones. a top executive says iphone security and encryption says it cannot access on device data

even if it wanted to. mike pompeo state is planning to attend a dinner in silicon valley, including with larry ellison. this comes days after new sanctions on iran were announced. i am joined by bloomberg's sarah frier. do we know -- what do we know about this meeting? is trying to garner support for the trump administration among tech leaders. of other issues that tech leaders care about right now like immigration, the trade war. all of these issues are bubbling up to become very real. it is not just larry ellison. mark and recent. reeson, sarah friar,

not me, but the ceo of nextdoor. taylor: i like that you brought up the tension with iran. are a lot of these tech experts, would pompeo be meeting with cybersecurity tech firms? sarah: i think he would like to do that. it is interesting timing right now given that there is so much going on in d.c., for him to be here. he is speaking at the commonwealth club tonight as well. executives, these who knows how long this administration -- it could be another four years. they need to establish these

relationships, know where they can come in on policy changes, keep up-to-date on what is happening. taylor: when you talk about relationships, it seems that for many of these big tech companies, relationship has never been lower. you think of all the antitrust, data privacy concerns coming from the trump administration that has fallen on big tech. h: it really does seem to be a bipartisan issue to want to scrutinize big tech companies further. we have seen a lot of employee uproar in the past when their leaders meet with trump for members of his administration. we saw a lot of uproar when tim cook on that factory tour with trump. when mark zuckerberg had dinner with him. taylor: what else are we hearing

-- you mentioned marc andr eessen. what do we think about some of the other guests that we hear about this from not only big tech but all the way down to venture capitalists and some of the silicon valley banks. thank you to bloomberg's sarah frier for joining us. that does it for this edition of "bloomberg technology." check us out on twitter @technol ogy and follow our global news network at quick take on twitter. this is bloomberg. ♪ when you move homes, you move more than just yourself.

that's why xfinity has made taking your internet and tv with you a breeze. really? yup. you can transfer your service online in about a minute. you can do that? yeah. and with two-hour service appointment windows, it's all on your schedule. awesome. so while moving may still come with its share of headaches... no kidding. we're doing all we can to make moving simple, easy, awesome. go to xfinity.com/moving to get started.

>> very good morning. comedney markets just online. kong. in hong asia"aybreak >> trump administration lists as a manipulator. u.k. economye, shrinks may not record any