Emily i am emily chang and this is Bloomberg Technology. President elect trump invites tech meters to meet this week. My exclusive interview with investor, entrepreneur, and former Google Venture ceo bill garrett. We find out what his next for the media giant. First to the lead. A techfocused meeting of the minds at trump tower. The president elect sits down with top executives who largely backed Hillary Clinton and spoke out against him. Among those attending, jeff bezos, sheryl sandberg, elon musk, and chuck robin, larry page, and tim cook. Meeting is a chance for Silicon Valley to find Common Ground with the new administration. After clashing on key issues like integration, trade, immigration, and joining us is bill merits. I would love to be a fly on the wall at this meeting. What do you think is going to happen . Do you think there will be a reconciliation of sorts . Bill i dont know. I know almost all of the individuals who were reportedly attending and they are all good people. Tim cook in particular. A valuedriven person. I think it is good for people to talk rather than talk about each other. Emily do you have concerns about trump in the oval office . Bill i think it is a wakeup call for a lot of people, especially in Silicon Valley who for once did not get what they wanted and stop referring to the rest of the country as flyover country. There are a lot of things going on that Silicon Valley has been out of touch with. Emily you have any concerns about the future of Silicon Valley under donald trump . Bill i have concerns that are different from those. We were talking earlier. I learned that 62 people in the world control as much wealth as the poorest 4 billion. That is stunning. They could fit in this room and i probably know half of them. That is down from almost 400 people six years ago. I think there are real problems to talk about that are different weather than Silicon Valley will get along with the president. Emily you are a close friend with peter thiel, who was the loan Silicon Valley trump supporter. How do you feel about his views having a great influence on the president . Bill peter is a friend. He called it. He said the election would go this way and he said for a couple of years that people were unhappy and pessimistic and i think we have a new president who was elected fair and square. As an american, i think we should all want him to be successful. I have Great Respect for peter. Emily has peter asked you to help in any way . Bill peter asked, i would help you. If peter asked, i would help him. I will leave it at that. Emily you move your family down to san diego, in part of a disillusionment with Silicon Valley culture. Can you explain that . Bill there is a bubble here. A concentration of wealth, and on the flipside, a pursuit of innovation and disruption, which is admirable, but it is easy to ofpulled into a vortex bellybutton gazing and self interest. I deliver meals on wheels. When you go out and see real people who were not building apps, but who are hungry or alone, it puts you a little more in touch with the rest of the world. Emily outside the vortex, there are still a large amount of people with great concern about a Trump Presidency. The cia has told congress that russia not only tried to hack the election, not only hacked the election, but also hacked it to help donald trump. Trump has attacked the cia for this revelation, if you will. What is your reaction to that . Bill i have not seen any evidence myself that the outcome would have been different. Emily we dont know. Bill nor foreign no foreign power should interfere in our elections. But at the end of the day, i think we should judge trump on what he does rather than what he says or what other people say about him. I think that is a good rule in life for all of us to follow. I think this news about the election is just breaking. It is hard to know what happened and what did not. Emily what about the idea that Rex Tillerson could be the secretary of state . Someone wason and strong and friendly ties to russia and putin. Bill he is not secretary of state. Trump is not president yet. Exxon mobil is a giant corporation and involves a lot of responsibility to run a company like that. I would not judge i try not to corral people into what they can be as to what they have been. I would rather wait and see. The proof is in the pudding. Emily trump has said that Climate Change is a hoax and you are someone who i know is very passionate about clean energy. You have any concerns about the future of clean energy . Bill yeah, i have concerns. They go beyond that. I think rick perry, who i dont know personally, but the governor of a very large state, and Energy Producing state. He is not in the position yet. I dont know if he has been officially picked. Emily it is not official. Bill it is probably not worth speculating too much because part of the problem for me has been turning everything into fantasy for all fantasy football. Making judgments when Nothing Happened yet. I have concerns and would like to see clean Energy Advance but i think bill gates had a great announcement 24 hours ago about this. Emily some of this stuff has not happened but there has been a lot of tweeting going on. Bill i am not a tweeter. I think we would all be healthier that with the case. Arey jack ma, jeff bezos now in this clean energy fund. The you think this fund will move the needle in an area that has been slow to have a big exit . Bill i hope so. I know all of them and i admire them and i think bill gates in particular has an amazing track record, especially in health care, helping to rid the world of polio, on the way to doing the same with malaria. If he can do in energy what he has done in health care, it would be fantastic. Emily billmaris. We will be right back with you. Apple is said to have held talks about investing in its 100 billion tech fund. Apple may contribute up to 1 billion to the fund, which will give the Company Insight into up and coming technology. Apple also invested 1 billion in the right hailing ride hailing cap dd. Half of the 1 billion fund would be invested in the united states. Episodes of Bloomberg Technology are Live Streaming on twitter. Check us out on weekdays. 5 00 p. M. In new york. Isly Online Retail site banking on its recent success with plans for expansion. It is going to double its you to its u. K. Manufacturing. Rivals, they have benefited from the drop in the pound after the brexit vote because about 57 of its sales are outside the u. K. Turning back to our exclusive conversation with venture caused the list venture capitalist bill maris. He oversaw google tech and life sciences. He left earlier this year. Last week, he pulled the plug. He joins us why to discuss. Why . You are on track to close this week and said actually, im not going to do this. Bill i did this crazy thing called changing my mind. Wild, i know. I did it. I left hundreds of millions of dollars behind. I did it because i feel like there are a lot of venture funds right now in the valley. Every couple of days, i see new announcements of new funds. I felt like after 10 years in the business or close to it, there might be better ways to have a bigger impact on problems i think are worth tackling. Emily there was a report of 230 million. Did you have trouble raising the funds that you wanted . Bill no. This is a time where there is tremendous capital available, especially if you have a track record that does not mean that it is the right thing to do. Interest rates are low. Institutions are looking for places to deploy money. Venture is one of those places. It is almost overfunded. Emily you are planning to do this on your own. Im curious why. If there are so many other funds out there, why could you do it differently . Bill i did that once at a place called Google Venture. Virtually everything i have done in my life, apart from having a child, i have started it alone. To build anate amazing team at google. They are doing an outstanding job. There are real problems as well. There are funds out there i can help. I dont know that being a the worldal vc that needs another venture fund right now. Emily the you think we are in a bubble . Bill i think we are in a huge bubble. I think the election is a testament to that. I think that there is almost too much capital available to investors, which raises prices, which raises expectations, and there are a lot of people working on what i would think of as trivial problems as opposed to the real problems that the country faces. Emily what are the trivial problems . Bill do we need another more optimized advertising system to further consumer culture based on the consumption of goods and services . There needs to be some balance. Emily how does this play out . Is there some sort of catastrophe . Bill depends on how you define it. Maybe those are good things to happen. What happens is ultimately Interest Rates go up sometime soon. As a result, the stock market 1000 or anywhere to more points. The pendulum will swing the overweight. The other way. It will seem like armageddon, but it is not that. We are overdue for a correction. Headed for a wakeup call . Bill a lot of us got a wakeup call in november, you will see a lot of startups that were overly optimistic not being able to raise future rounds. Emily im curious about why you left google and i wonder, do you think that vc cant be done from inside a big company very well . Bill hopefully, my last 10 years proves that it can be. Emily you think that model works . Bill i think it worked. My last day was august 12. Beyond that, it is very difficult. Running a venture fund is very difficult. Doing it inside a Masimo Corporation is also difficult. It was successful a Massive Corporation is also difficult. It was successful. Creating the same model outside of google, i did not feel that inspiring at the end of the day, which is why i pulled the plug. What do you make you make of the transition we have seen inside alphabet . You are not the only one to leave. Bill every big company has turnover. I had a fantastic team of people who are all still there and i wish them huge success because im an investor with them in a lot of companies. Emily is this just the usual bynover, or is it spawned the cleaning of house . Bill i think it is interesting to go on it which a witchhunt. As far as im concerned, google is filled with fantastic people who want to do important things. My team feels that way. I cannot speak for the company at large other than i had an amazing experience. Like anyone who was hired to do a job, you need to know when that job is done. I felt like my job was done. Emily what will you do next . Will you be angel investing . Bill i dont know. I will Angel Investor i will help funds and colleagues and Companies Like i always have. The next few months are about taking a lot of calls and talking to people and seeing how i can help. Emily you are very vocal about fair note and foresaw some of the problems. Bill that is still of a thing. Emily what is the appetite for funding of Health Care Related startups in the wake of fair note . Bill i have seen a huge increase in the interest of life science, especially where Machine Learning and Artificial Intelligence can be applied to improve outcomes for patients. Te is an unfortunate story because it ended up hurting patients. It has not put a damper on investors appetite for innovation. Emily bill maris. We will be watching to see what you do next from san diego. Thank you for stopping by. Advanced micro devices is trying to make up ground on rival nvidia. Emily skype is working to make language barriers a thing of the past. They are working on making a conversation in two languages seamless. You will need to pay credits to use the tool. Translation runs in nine languages, including english, spanish, german, and arabic. Amd is taking aim at nvidia. Amd will be offering graphics chips tailored for Artificial Intelligence use in its data center. It will speed up the ability for computers to train themselves and get better at image recognition. English, you say that amd is trying to get into the business of recognizing your voice, sorting through pictures, and other tasks that companies are trying to turn over to ai with these jets. The task that you said, skype,ting things in recognizing whether it is a dog or a pig or whatever in those pictures. Doing those in parallel. A gpu is good at that. Emily this is a chip that normally gains are built on. Ian that is exactly it. All of these teenagers living in their parents basement that have gaming systems, they will pay 1000 for a graphics card has a gives them the most vivid image. Those are the chips we are talking about. Emily doesnt intel dominate in service . 99. 4 markete a share in service. That is a 15 billion a year business. Chips are good at multitasking, good at complex things very quickly, but not in parallel. Emily why has it taken this long for amd to bring this kind of a product to market . Ian you wind the clock back and people thought amd was going out of business, they were running in the market they were running out of money. They lost a lot of market share. It has taken them a long time to get to the point where they are able to invest in technology again. Emily how big is the market likely to get . Ian that is the question. Right now, nvidia is bring in a few hundred million a quarter. It is still a good business. To what intel is bringing in, 15 billion a year, not very much. Chip you cover the entire industry. There has been so much and mandate, so much action, Companies Falling behind, betting on technology. Assess the lay of the land in terms of who is in position to capitalize on the rise of ai if it is as big as people think it will be. Goingnvestors have been after video. Stock has more than doubled. It is now a 40 Million Company and just on the promise of what ai might mean. Emily who will be left to sign . , intel made it a lot of announcements about how they will try to bring their outside technology into their lineup. They are trying to respond. It is theirs to lose. Emily in 2017, do you think we will see more and mandate . A lot of people say under trump, we will see a lot more m and a. Has pretty much everybody been bought or folded at this point. One thing under trump is freedom from the regulations that some of the bankers are betting on, that there will be less restriction on m and a. Emily ian king, thank you so much for that update. How venture capitalists are preparing for a Trump Presidency and where they are placing their bets in 2017. Megan king joins us next. Make sure to watch Bloomberg Technology tuesday. Michael will be going to that highly anticipated meeting of tech leaders with president elect trump on wednesday. Nina Bloomberg Technology. Youre watching Bloomberg Technology. Lets begin with the first word news. The European Union setup how it will conduct brexit negotiations with the u. K. According to a statement, you governments will be asked to comply swiftly with the talks. Prime minister theresa may says article 50 will formally start withdrawal. Thieves set a truck on fire and police said the two drivers are rescued. Senate Majority Leader Mitch Mcconnell says he has the highest confidence in the intelligence community, after president elect donald trump attacked the cia over its conclusion that russia use cyber meddling to help influence the to help them win the presidency. President obama will leave Lease Office Space at World WildlifeFund Headquarters in washington, according to the washington post. Its located in the area of washington dc called foggy bottom. Day andews 24 hours a more than 120 countries. This is bloomberg. Its just after 5 30 p. M. Monday 9 30 in sydney. Paul, good morning. Paul new zealand has been trading for 90 minutes now, the only market open and its looking flat at the moment. Its better than can be said for the futures market at the moment. Nikkei futures pointing lower expectings on the afx a decline of. 4 when trading gets underway in australia in the next 30 minutes. We will keep an eye out Energy Stocks on the afx, they led the way on monday and a further 2 boost to the oil price overnight could mean another good day for Energy Stocks. Intending to cut production further than originally promised. The highest in more than two years with stockpiles at chinese ports reaching the highest in two years. Shipments were up 10 in november out of november so the iron ore really piling up in china, warning of price falls in 2017. Ore in 26 here in australia we have third theter house prices and Business Confidence survey for november, and china cap retail sales for november estimated at there andear growth chinas Industrial Production for november is expected to hold steady at 6. 1 . Sydney, more next on Bloomberg Technology. This is Bloomberg Technology. Im emily chang. Silicon valley leaders had to new york to meet with president backed hillaryy clinton did not hold back their disdain for them. The meeting will be a chance for them to find Common Ground with the new administration after clashing on key issues. One key question is what it will mean for mobile tech investment and how venture capitalists should be preparing for the coming year. There is megan quinn who knows the investment landscape all too well. Spark has invested in Companies Like twitter and oculus. Good to have you here on the program. What do you think the Trump Presidency means for Silicon Valley, and how are you guys talking about this internally . There is a lot of uncertainty that follows donald trump. There has been a lot of discussion around this meeting tomorrow that will take place with various technology leaders. My view is that these people are very accomplished and held an extremely high regard, and we need to is a proud surround the presidency and the cabinet with more smart, innovative thinkers. I hope they are able to find some Common Ground around innovation. I dont know there will be specific topics they get to the bottom of in an hourlong meeting, but i hope they open up a dialogue between the president and Silicon Valley. Emily how are you digesting this at spark . Theres a lot of uncertainty, the markets have reacted positively in some ways, but not others. There was a lot of weight in c. Megan there is a lot of see. T and see wait and to keep on keeping on. Really focus on your business. Emily you used to work at kleiner hogans kleiner perkins. Im curious what is the difference when you look at Growth Stage Companies versus earlystage companies and how has your own strategy shifted . What you are looking for companies that have artie found roddick market fits we are looking for companies that have already found Product Market hits. We are looking for metrics we can point to without having to squint too hard to indicate the Inflection Point has already taken place. There willou think be more competition at the growth stage now that the belt has been tightening at the earlier stage . It seems like fewer companies are getting a larger pool of capital. Megan there is certainly a tremendous amount of capital available. A dearth ofre is wonderful investors who can add value to Portfolio Companies at that growth stage. Guest who was just on thinks we are in a huge bubble. What is your reaction to that . Think if youre building an incredible company, there will be plenty of capital for you but its finding a partner that will be good for your business, not just a blank check for you can get it. Emily you invested 20 million in a company. Softwaren enterprise startup. What do we make of that decision . Megan spark has a long history of investing in these companies. There is a trend we are extremely excited about. Its tickling call consumerization of the enterprise. We expect as individuals for the products and services we use at work to look and feel like the products and services we use at home. It doesnt matter if we are behind a desk or behind a bar. We want in gauging products in the workforce. Fully integrated platform for Enterprise Companies to build better products for the end consumer. Emily they are based in raleigh, north carolina, of all places. Talk about getting outside the vortex. Are you looking beyond Silicon Valley more often now to find those diamonds in the rough . Megan we are always happy to get on a plane. A Company Building outside the bay area bubble is a competitive advantage. They sit at the intersection of three very wellknown universities and have incredible at muchto talent cheaper costs, so we consider that a positive when it comes to investing in a place like raleigh. Emily where are you looking in 2017, given the uncertainty and the climate right now . Megan we will ride out the macro shift toward more consumer feeling products in the marketplace. We think there is tremendous opportunity with compelling, engaging, delightful products in the work waste. In addition, we tend to be founder driven by trend. We are excited about applied ai. Historically been relegated to r and d departments and were starting to see products and services that consumers use. Now with vast amounts of data, the algorithms can learn over time. We are also excited personally about the r and ar in the enterprise. There might be more adoption of the enterprise in these services than in consumer life. It might follow the path of the pc. First you are sparks female partner and i know youre very passionate about this issue of diversity. Im curious, what do you think it is going to take to see actual change . Where do you think the challenge is still lie . Megan my view is you cannot see what you cant see. I am a general partner at a venture firm because i had a woman general partner on my atrd in my previous role square. That was mary meeker. She stood out as someone i could be like. We need to have more women in senior positions so the next generations understands there are more opportunities for them in their career path. Emily thank you so much for joining us. One disclosure, megan is a board member at the company handshake where my husband currently works. Top republican lawmakers offered strong support for u. S. Intelligence monday. In sharp contrast to resident elect trump who to started disputed reports that the russian government helped him win. Senate Majority Leader Mitch Mcconnell and House Speaker paul ryan praise them for taking on the government. The press secretary to Vladimir Putin told reporters today that the allegations have nothing to do with reality. Trump and his team are pushing back on the claims as well. Coming up, viacom and cbs walk away from a potential deal. Tontime, . 10 is looking cover the blockbuster boom. This is bloomberg. The golden globe nominations were announced today, but streaming Networks Appear to be losing their luster. Nets netflix scored five nominations, the lowest number since entering the awards race three years ago. Amazon studios got five nominations, despite the dramatic increase in the number of original series on the platform. Turning to the megadeal that wasnt. Merger talks between viacom and cbs broke down with Sherry Redstone pulling the plug on the deal. Leaving him in charge of the companys turnaround. Lucas shaw has been covering this and joins us from l. A. With more. The company has been through whiplash over the last several months. What does he bring to the table . He bring some measure of stability. He has been it viacom for a long time but was not part of the. Abal leadership he ran the International Business for about the last decade so he has a big priority there and he thinks he can apply some of what he learned there to energize the u. S. Business. I think most people it viacom have just been suffering throughout the year as they seem to be reading new news about their company and the press every week or so will be happy a cousin means all the turmoil is over. Its not guaranteed, but it seems like for now we have reached a status quo. Emily it seems like the deal fellow fell apart between because of a power struggle between Sherry Redstone and les moonves. I would say theres definitely negotiation and happen between the two of them. How much of it was a power struggle is unclear. Most people i spoke to said it broke down more overpriced and governance. Les moonves wanted assurances that he would have a great deal more control than even has at cbs. Going to gete was that, but as time went by, Sherry Redstone became increasingly comfortable and bob backish convinced her he could backit more valuable convinced her he couldish make it more valuable. They could never come to terms that either side was comfortable with. Emily there are reports of interest from other companies for cbs, including verizon. What do you know . On that front. Sources are saying that verizon probably does not want to buy cbs, and i dont know that cbs is a willing seller right now. Cbs is a very streamlined country. Down the road it could be merged or sold to someone. Les moonves may want to sell to someone, but there are no talks happening right now. There were people this morning who were surprised by her move. That letter came sort of from out of nowhere. Emily lets talk more about backishs strategy. What do we know about his plans to turn the company around . A bunch of seen leadership changes at the Different Networks already. Mtv got a new boss a couple of months ago. The paramount movie studio just got a new coo. Comedy central had an leadership had a leadership change relatively recently. Hes going to make sure that all those divisions have a strategy for how they will turn themselves around. Since taking over, he has assembled different leadership committees to try to discuss for mtv andplan comedy central. Everybody involved knows what the pressure points are. Theyre just hasnt been an effective means of turning them around. What the specifics are on those plans will probably come out over the next weeks and months. Emily lucas shaw in l. A. , thanks for bringing us that update. Staying with media, asias largest Media Company is gearing up for a major push into hollywood. They will make their own blockbusters instead of just writing checks for them. They will be working with some of the industrys top talent on the big screen. Sent. Porter covers 10 why are they hunting for acquisition in hollywood . Said, tencent not only wants to write the check, they want to write the script for hollywood movies. Acquisition is just one way to expedite their expansion plans. Theyre completing with a 10ing with alibaba for billion market. By these acquisitions, anything from studios to Creative Production houses, they can expedite those plans. Said they are very open to all kind of possibilities, provided those companies complement their own resources and the pricing is right. In light of recent political developments, donald selection, potentially increasing tension with the Chinese Government . The u. S. And chinas relations or at a very tense time right now. We are seeing a lot of rhetoric and criticism saying the u. S. Needs to be more critical of these chinese takeovers, especially with trump criticizing chinese trading currency policies. Ent as part of a group of companies that are looking to invest or have already invested in u. S. Studios. For example, alibaba investing in stevens the works Stevens Steven spielberg cross company. Movies are very powerful and influence public opinion. Going forward, these companies could face some headwinds. Emily what kind of genre will tencent focus on . Their stronghold is in games. Leaguethat they operate of legends. Already they have invested into war craft and skull island. Fan boys is the genre they are targeting most. Going forward we will see a lot of fantasy adventure novels being adapted into movies. That said, they are not close to only investing in one type of movie. Emily fascinating, the race for hollywood of chinese tech titans. Hanks so much, lulu coming up, microsoft is taking a second shot at chat box. See if it is newer than its predecessor. Watch our special coverage of the highly anticipated fed decision that starts at 10 00 a. M. In san francisco, right here on bloomberg television, bloomberg radio, and bloomberg. Com. This is bloomberg. Emily instagrams life feature is coming to the u. S. In the coming days. The live features will be in the story section of the app and live videos wont be stored on instagram meaning they can only be seen while you are broadcasting. That differentiates it from facebook which archives livestream on its platform. Instagram first announces plans for live content in november. We will be watching. Microsoft is testing a new chat box on the app kik. Our bloomberg tech reporter tied out the new tried out the new bot. A lot of people expect the way you will interact with Electronic Devices in the future will be in conversation with Artificial Intelligence bots. Its lightly backfired when they spewingthis expletive bot nine months ago. They are quietly trying again. ,hey have a bot on the app kik and we are going to try it out. Lets start with, who is barack obama . No, im not talking about this with you. It sounds like my parents at the dinner table when politics comes up. Intricate one. Should we get rid of the Electoral College . Im out, with a little wavy hand. One that is close to my heart. Should britain leave the eu . Been there, is her response to that. She is missing out, quite clearly. Everyone should go there with the pound so cheap. Who is ceo of microsoft . We have not met yet. Her, the former microsoft ceo Steve Ballmer, do you like Steve Ballmer . I know they are associated with the company so i am excited to meet them. I think it is quite an interesting take away. Her comments were not grossly offensive. Emily thats alex webb there. That does it for this edition of Bloomberg Technology. Show,e to watch tuesdays we will discuss the South China Morning Post and michael beckerman, ceo of the internet association. Tech leaders attend a highly anticipated meeting with president elect trump and beckerman will be advising them. York,ys 5 00 p. M. In new 2 00 p. M. In san francisco. That is all for today. We will see you tomorrow. This is bloomberg. From our studios in new york city, this is charlie rose. We begin with Cyber Security and the obama administration. The president ordered a full review of russias election related hacking. Security visor told reporters about the investigation on friday morning. She said the order will be delivered before president Obama Leaves Office on january 20. Announcing that Cyber Security issues would be a significant focus of the Senate Armed Forces community that he would chair. Joining me is senator john mccain