on venezuela. we will have the latest at 8:00 p.m. eastern. have yourself a wonderful weekend. maria begins right now. >> from the fox studios in new york city. >> happy weekend. welcome to the program that analyzes the week that was in helps position you for the week ahead. coming up, chinese venture capitalist and the -- of ai is my special guest. we have a lot to talk about. artificial intelligence. the first markets have good news. secretary of the treasury, stephen mnuchin traveled to beijing and said u.s. china trade talks are on track. we got the latest data on inflation saying it's a

contained leading investors believe the fed will not consider another rate hike. the next meeting is in march. the markets go from here? s joins me now. s, it's good to see you. >> same here. >> maria: i guess, we have good news on ppi. at the end of the week we had some retail sales number. down 1.2% for the month of december. we were expecting again. does that tell you where we are on this economic growth story? >> i think it's more sentiment. i think in december people got so spooked by the markets. remember the fourth quarter was horrible. people didn't have a compass as to where they were headed. one of the symptoms is that people tend to pull back a bit and say, i'm not sure what the future brings so maybe i'll cut back on retail sales. >> you think it was a function of the wild markets?

i agree with you. what about the broader market? what catalyst you see on the horizon to dictate how you will allocate capital? >> first, the catalyst, people are focusing on the political policy issues, the tariffs, the wall, while it's important it's not as important as plain old fundamental analysis. we lost our way in that process. when i look at them from all the companies i own, they all look very strong. i would advocate going back to traditional fundamental work, rolling up your shirtsleeves and looking at the credit of the company but also the financial statements and getting a good picture of what it looks like. >> maria: what about the fundamentals of the global economy? we got a report this week european growth forecast is going to slow to about 1%. 1% growth in europe, china has slowed, even though we got strong export numbers.

they were up in the last month. but, industrial production across the 19 nation eurozone, falling at the fastest pace since the financial crisis. that has ultimately hit the u.s. >> may be. if you look at small mid-cap companies, you might be able to avoid that. remember, this is cyclical. did a study once i showed when the u.s. economy does well, the european economy does poorly. it's very cyclical. right now, were doing well, the european economy is not doing so well. so stay a more parochial type stocks in the u.s. >> you would do domestic stocks. >> yes. >> maria: and policies like lower taxes and. >> another example would be united rental equipment.

that's a company that does most of its business, it rents heavy construction equipment in the united states. it's trading so cheaply, a pe of six time yet his earnings have grown very strongly. it's a us-based company that i don't think you can fill only. >> maria: go for force in 2019. how do you expect this to play out? we had the best january in 20 years. >> we had a good january last year. i do think i do think all these issues, the walls, the term, they will resolve but if you use something called game theory and tariffs you realize at some point we will reach equilibrium. were not sure what the details will look like but when it does finalize i'm pretty sure both sides will be happy. that has tremendous impact on the results of the market. >> anything you want to avoid here that is so glaringly bad?

>> the only thing i like to avoid is placing too much emphasis on these things like the tariffs, brexit, right now, people are so focused on that it has blinded them to the fundamental work. we need to put that in perspective and work more on the fundamentals. that's the only thing i would avoid is being too distracted. >> were going to talk with the chinese venture capitalists. do you think the china deal will be a big deal for the markets? >> i personally don't think it should matter that much. i think the markets are putting so much expectation on it it will be a big point. >> maria: thank you. we'll take a short break. more wall street after this. with my friends to our annual

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>> maria: welcome back. ouartificial intelligence, more important than ever for business and our lives. president trump signing an executive order to take on china and accelerate the country's ai innovation. i sat down with former president of google, he was running google china for a while. now, he's the -- adventures president. we want his take on the power of ai and which industries will benefit the most. >> is going to come in waves. the first is the internet industry. every worksite uses it. next will be financial industries.

those are also numbers. lots of numbers coming in, trying to optimize and meant minimize fraud and maximize return. those kinds of applications can use ai, it almost turns into a cash printing the scene. there is no factory, logistics delivery, just virtual numbers. then after that are tougher but you can use it in retail, healthcare, manufacturing, you can use it to see and hear computer vision, face recognition, gesture recognition, speech recognition, speech translation. then, you can start to move and manipulate. >> what are the jobs most at risk of being eliminated as a result? >> routine jobs are the most risk, especially are basically reaching quantitative decisions

and actually the white collar jobs, entry-level jobs that are routine are most at risk. i think a lot of the same environment blue-collar work will get displaced. then we get to more complex jobs. as long as the job is routine can be defined by an objective function, and is quantitative in nature, over time it will eventually get displaced. eventually the easier ones, first. >> let's talk about those other jobs. you have said in the past, drivers, chauffeurs will get displaced. >> the process of driving a truck on highway, today, research technologies already be people. we just have to implement it. i would say in about five years there will be very competitive, safer autonomous driving trucks that stay on highways. certain types of doctors will be easier to be displaced, mostly, none completely, for example,

radiology. radiology, at least within the job of a radiologist, that is looking at an mri, ct, x-ray and writing down what is being observed, whether tumor, size, and so on, those will be better done by machines probably over the next ten or 15 years. that doesn't mean a reality just will be out of work, they can move on to research, do patient interaction, but a decent part of the job will be gone. similarly, diagnosis of different types of cancer. let's say lung cancer, skin cancer, were beginning to cai algorithms doing better than doctors specific diseases. >> maria: you are there former president of google china. you have done a lot of work in this area and are now venture capitalists. you are are investing around us. tell us how you are investing.

what are some of the groceries you put money behind? >> we've invested in about 45 aa companies, mostly in china. five of them have become unicorns. they are totally valued at $21 billion. they have been very successful. we have invested in ai chips, and for banking, autonomous vehicles, ai for customer service, and ai for retail and manufacturing. many of these are vertical applications that will make manufacturing more reliable and have fewer people involved. that will make banking more accurate, more profitable, lower costs. in some of the more advanced ones will be robotics and autonomous vehicles that will do special things like karzai tries themselves, trucks that drive

themselves on the highway. also, robotics that will deliver packages to home and pick fruits and wash dishes. >> talk to me about implicit bias that you may or may not be conscious of. if ai is so reliant on data, that data better be right. you see some areas where there could be implicit bias. if you want to look at the workforce and financial services company. if you're monitoring the people that work there, there's an implicit bias there because is largely men. it's not 50/50. are there other implicit biases that we see data that may be good throughout the accuracy of ai? >> the biased issue is a complex one. there have been incidents. the carelessness of the product builders have caused one company to build in hr filtering system

trained largely on men, very few women. thereby causing the system to prefer to hire men. i think that is an example of exacerbation of bias. i think these mistakes are very basic mistakes that should never have been made. we will have to make sure they are not made. once you have enough representation, ai is most overlooked biases and look for objective signals and correlations that lead to the best outcome possible, which we all want. hypothetically, if we had a database that didn't have enough women that was 25% women and 75% men, i would argue that's an acceptable database. when you look across job performance, whether attendance, high eq, or strong execution

results were 360 feedback, that's enough sample for it to pick what makes an effective employee. i would not say you have to have exactly 50/50 balance. >> maria: don't go anywhere. more of my exclusive sit down when we come back. >> google and facebook have become two of our biggest ♪ -morning. -morning. -what do we got? -keep an eye on that branch. might get windy. have a good shift. fire pit. last use -- 0600. i'd stay close. morning.

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>> the current view is that american view is that corporate capital is driven. that is, a lot of power is being given to the facebook, google, and amazon. there is some outcry from the community that is that too much power. that's a debate that is being had. without prescribing what is the right answer, i would say there's a trade-off by giving the corpus a lot of power and related bands the state-of-the-art. if u.s. wants to stay ahead in ai, probably one of the best bets is to bet that i will bet google or amazon, or facebook becomes world's strongest ai company by having great scientists, deployment and data. that would be strong both for

u.s. economically and technologically. however, that may come as an expensive individual privacy and things like that. that is a conscious trade-off. i would caution not to go too far on either side. the current trend seems to be going a little bit too much on the protecting privacy side. >> we shouldn't worry about that. >> i think we should. but you have to balance it. i think privacy is privacy. and and inalienable human rights that must be gardening give it back to the individual and deprive the corporation the right to aggregate and build ai. if so, these monolithic large ai companies will collapse. that is what europe is doing. that's why europe will have no hope of building a google amazon. one has to consider, what are the important steps to guard

privacy without hurting these giants, which are important to any country's progress. for example, permitting sales and giving away data like facebook and cambridge analytic god. ensuring there is transparency and policies being delivered to end-users. ensuring there are opt outs or dials that users can have to scale back in terms of how much data to take. i'll talk to some european policymakers about the consequence. the rear is, mr. lee, you are telling us this may slow down ai, you misunderstand. we want to slow down ai. as long as the country intentionally wants to slow down ai and its technological competitiveness then, of course it's free to do this.

>> maria: congress is looking at this right now about privacy and zeroing in on things like google and facebook. >> i saw the congressional hearings on facebook, google, and the other companies. i see there is currently a d.c. versus silicon valley debate going on, as well. i was in one hand, there are things that facebook and perhaps other companies have done that could be done better. they could be better regulated, they can be under supervision by media and so on. that there chastises understandable. at the same time when i listen to some people in congress, the question they ask show fundamental lack of understanding of technology. a proud technology and privacy all work together. so, i feel that is important for the congress, as well as for people in politics to really study what europe is doing with the way it is basically tying the hands of entrepreneurs and

technologists and holding back the economy for u.s. not to repeat the same thing at least understand the serious consequences if it were to follow europe's footsteps. >> maria: is it okay for a technology company to censor conservative conversation? >> no. i think there are a lot of principles want to put forth. >> but when you have one body in charge, this is the way it is in charge o china. there is one backbone that everybody's information searches, doctors, everything goes through. if you have one backbone like a google or facebook that's deciding and normal people are getting their news from the social media companies. isn't it true they could in fact be in charge of showing us what they want us to see? >> well, it's important that they disclose what they do, how

they do it, and that users can choose to opt out. these services can be chosen. but, if the government goes in and starts calling one question was asked of google ceo, whether it's possible to determine the location of someone. well, the whole premise is that that's what the whole location services about. that's how we get the conveniences of finding nearby atms and restaurants. how can google not know someone's information. i'm not questioning the request for transparency and fairness. i'm not questioning some regulation but when you think google and facebook cannot know where that is with the

incredible convenience it provides a gps and everything, it shows a fundamental lack of understanding. i think that understanding should be brought up. once that's brought up then it will be in a better position to decide how to deal silicon valley. >> maria: my thanks. don't go anywhere. more wall street, right after more wall street, right after this. when it comes to so,type 2 diabetes,.. are you thinking about your heart? well, i'm managing my a1c, so i should be all set. right. actually, you're still at risk for a fatal heart attack or stroke. even if i'm taking heart medicine, like statins or blood thinners? yep! that's why i asked my doctor what else i could do... she told me about jardiance. that's right. jardiance significantly reduces the risk of dying from a cardiovascular event for adults who have type 2 diabetes and heart disease. that's why the american diabetes association recommends the active ingredient in jardiance. and it lowers a1c?

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maria: coming up next week, we are talking with the founder and ceo of girls who code. we want to zero in on education. are we teaching our young girls how to code and about engineering? also this weekend, join me on "sunday morning futures," 10 a.m. eastern live on the fox news channel, we will talk a lot about the news of the week. plus, start smart, tune in weekdays rights here on -- right

here on fox business for "mornings with maria." and be sure to follow this program on facebook, twitter and instagram for the latest videos and pictures from the program. that'll do it for us this weekend, thanks so much joining me perform i'm maria bartiromo, and i'll see you next time. ♪ ♪ gerry: hello, is and welcome to the wall street journal at large. in his state of the union address last week, president trump uttered words very rarely heard at the top levels of american political debate. >> we renew our resolve that america will never be a socialist country. [cheers and applause] gerry: now, the very fact that he felt the need even to make that i vow says something about the state of the nation's politics today. the democratic party's agenda is