jeremy hunt will stay on after refusing a new role. the education secretary resigned. global news 24 hours a day powered by more than 2700 journalists and analysts. i'm a alisa parenti and this is bloomberg. ♪ ♪ emily: i'm emily chang and this is bloomberg technology. coming up, gopro takes a dive. we speak with ceo nicholas woodman after the company slashes jobs. cryptocurrencies opsware rocky start in 2018. bitcoin slumping as much as 27%, helping drag and smaller rivals. dissenting on las vegas for the consumer electronics show where driverless and electric cars are dominating the buzz. , our lead. gopro missed its fourth-quarter sales guide and signaling revamped cameras and price increases are not sparking revenue growth. shares tumbled more than 10%, its worst performance in a year. gopro ceo nicholas woodman spoke to selina wang and denied earlier reports that they hired jpmorgan for a potential sale. take a listen. nicholas: jpmorgan is in fact our banker, but we have not engaged them to help us sell the company. said, if there were an opportunity for gopro to partner up with a larger organization that can help us scale the company, scalar brand and reach to consumers, that is certainly something we would consider but it is not something we are actively engaging in the moment. selina: do you think you will want to actively engage in this? do you see a potential catalyst? at any potential suitors reached out? nicholas: the question so far is would we engage in something like this? this is something that we explored from time to time. grow the job to business in the most strategic way possible and that is one way to do it. gopro,ot a new topic at but i cannot share any more information than that. selina: can you talk about organizations that you would love to work with if theoretically something didn't work out in terms of a sale or partnership? i can think of a number of electronics companies that gopro could fit into. how are you thinking about it? nicholas: i'm not going to go into too much detail, but i would say that being a company that is enabling people to capture and share themselves and exciting ways, gopro is a very social company. we have one of the strongest brands in the world that is very well regarded for our ability to help people capture and share their active lifestyles. we're primarily focused on spreading our brand and spreading our hardware and software solutions to reach as many consumers around the world as possible. to us, scale is very important. selina: shifting gears to announcement, it seems like gopro is continuing to narrate the vision. the drone business is closing. how should we understand the product roadmap and revenue diversification of gopro? nicholas: i think what you are seeing from us is that we are listening to our customers more and more. we are investing in development of products and solutions that are customers want from us. recordpast, i am even on of having set in the past that one of the things that makes gopro strong is we are our customer and we developed products we really wanted and that seemed to resonate well with the market. we realize now we are in the business to build products for our customers and we need to identify what they want and go and invent for them. that can be difficult because as you are inventing new solutions, be it hardware or software, the consumer does not always know what they want. that is our announcement, it ses like gopro is continuing job --d the trends and bill for our customers. our customers love the entertainment that gopro enabled through the content that is produced today, but they did not need us to be a full-blown entertainment business. our customers have told us that they really love buying our cameras from us. while a passionate number wanted to buy drones, the majority want to buy gopros that connects to a great app experience. there was weak demand for the hero 5 camera even though gopro spent significantly on marketing for the product. for analysts, that would say this market is commoditizing but what would you say to that? nicholas: well, we got more data now that shows that we have a larger percentage of repeat customers that we thought we did, which is terrific on one hand because there are very loyalty, but it also shows us that pricing is increasingly important and that and session,lack both year-old products being sold in the 2017 holiday quarter for the same price they were launched back in 2016 did not resonate very well, because either a decent percentage of our customers already own that camera. and those that are waiting on the sidelines waiting to upgrade do not feel very good about upgrading to your old technology for the same price it was a year ago. that lesson is learned. when we lowered the price $100, we saw increases in cell sales. sales in hero 5 session. lesson learned. we also apply that same thinking to hero 6 black, our sales flag, which was already selling very well and meet our expectations. , we expected it to increase significantly as we lowered it yesterday to $399. selina: there have been several of layoffs over the last year, and there will be fewer than 1000 employees. should we expect more reductions to reach that target level of operating expenses? nicholas: no. the recent reductions which involved a head count reduction get us to the necessary sub $400 million level that will allow gopro to be profitable in the second half of 2018. we are seeing really good sales growth. as long as sales trends continue as forecasted, we feel like we will be in good shape. emily: that was gopro ceo nick woodman speaking with selina wang. tech firms big and small are flocking to las vegas for the consumer electronics show. driverless and electric cars are dominating with uber and volkswagen's showcasing the wonders of ai . all eyes will be on the of layoffs over the last ceo who will give a speech. alistair barr is with us. what are we expecting him to say about this incredibly pervasive chip law? alistair: i don't think he was planning on doing it a couple of weeks ago even though intel have known about this for several months. what i think he has to say is yes to make all his major customers -- microsoft to google -- he will have to make it very clear that when they put these patches in place, the performance of a personal phoneer or server or will not slow down. there has been a lot of debate about whether these fixes will really slow machines down. he comes out and says his support for my argument will not slow everything down will be good. he will may have to be more open about the machines being slower. emily: this affect a lot of other chipmakers as well from qualcomm to arm and amd. what are they saying? alistair: amd on the day it was announced said chips are really not affected. you can look at a statement like that and compare it to what intel said which is a similar thing. the majority of situations, it will not slow things down much but in certain instances, it might. what are the other highlights we are seeing out whr highlights we are seeing out of ces so far? cars, cars, cars? alistair: nvidia getting their chips into vw and u. there was one from samsung, not involved in this market at all. it was probably the last major tech company to get involved. i would say that is pretty depressingly slow and late for them but it is still -- there is no clear winner yet. emily: samsung announcing open modular and scalable software to allow automakers to make customized cars. they are obviously a late entrant but would you say in the race for driverless car's right now, anyone can have a piece of this pie? alistair: the market will be completely huge. that is good for someone like samsung coming late. the worry for them is in order to do this really well, it has to be software that makes it work all the time. it will take years. they are quite a way behind. emily: we are monitoring ces as we speak. we will have much more tomorrow. alistair barr, thank you so much for stopping by. we will have much more coverage tuesday evening. tune in for our interviews. raze upup, the crypto c 2017 seem to have died down due to regulation concerns. what to expect from digital currencies in the new year. bloomberg technology is livestreaming on twitter. you can check us out 5 p.m. in new york and 2 p.m. in san francisco. this is bloomberg. ♪ emily: a stock we are watching -- technologies climbing 60% after research suggested the company may own more than 50% of ripple. it is the third most fallible currency behind bitcoin. the security and exchange commission is cracking down on a hong kong-based company that benefited from 2017's cryptocurrency fever. a 900% stocks surge. the sec is a spending shares ubi blockchain internet due to unexplained activity. a product that reached a $3 billion market cap before concerns about history was raised in a story. joining us now is jehan chu, managing partner of kenetic capital. chu started investing in bitcoin in 2013 and has since started a venture capital firm investing in blockchain technology. york is the in new author of that story, cory johnson. cory, you are making waves today. tell us what happened with this ubi story. cory: the sec is listening the good.erg news, that is a company that has no product and a lot of operations yet. just 18 employees. good. worked for american bioengineering that sold a be dwetting patch. bioengineering thatthat was thet led to this company that was a blockchain company that had a $3 billion market cap with no product yet. the sec apparently is taking a look at this as well. we get a look at the bedwetting on blockchain on bloomberg.com. it really speak to the speculative fever around bitcoin, that anyone with any crazy background can create something that looks like it might have great value and attract investors. emily: what is your take on this story? jehan: i don't know much about ubi other than that they are in hong kong. this is really indicative of how the entire market is reacting to the phenomenon of cryptocurrency trading. i think it is important to note out of this story that the sec did step in and i think it is a good thing they did investigate. guideposts,ing investigation, some type of structure to the market to try and grow it in a more safe and i think sustainable way. as far as ubi, they are doing what they are doing and maybe they are really blockchain or not. i think what we are seeing in 2018 is really the year of bitcoin and cryptocurrency trading becoming a social phenomenon. emily: what does that mean? jehan: it means that -- i was in new york, in line at whole foods, i was eating noodles and everybody was talking about trading cryptocurrencies. emily: does that mean it has inherent value? jehan: no, it does not mean it has inherent value but it means it has a massive onslaught of attention. these attention economies turn into actual development and adds support and liquidity to these markets and could develop into meaningful and lasting types of development for applications. at the end of the day, this is all what it is about -- software being built. cryptocurrency trading is what we see on the surface. emily: go ahead. cory: god is in the details. one what think a hong kong listed company would be in hong kong. in fact, that is more interesting. their lawyer is a guy in chicago. the business partner is a guy in las vegas. when i called the new york headquarters, it rang someone's cell phone. the main number, it disconnected. things are much more interesting. indeed, the differences between bitcoin and ripple are substantial. it is worth finding out for investors to really understand what lies under these things to figure out if there is an intrinsic value. emily: cryptocurrency is running into headwinds not just in the u.s. but also in china. the chinese government cutting off the power supply to bitcoin miners. how serious do you think that is? jehan: i think this is the final strike of the chinese government's desire to reset the entire story of blockchain. i think what they want to do is clear the deck and they have done it with exchanges, ipo's and now they are doing it with mining. they understand the value and utility forl and society, economy, industry to build a new. i don't think this is the end of exchanges. this is merely the chinese government resetting and taking control of what they actually believe will be a truly transformational technology. emily: other cryptocurrencies getting dragged down today. utility for cory, you spoke with the ceo of ripple. take a listen to what he had to say. brad: there is no doubt 2017 has been the year of crypto. xrp xrphe year of crypto, as outperform every other digital asset. year to date, 20,000%. emily: that is from december 27. ripple going down with some of the others today. what do you make of this? --y: i think the volatility not to say something obvious -- it is obviously volatile with these currencies or trades. but i think our traditional lens cory,of looking at the volatilin equities, for example -- wow, it is down since the last hour. i took the last week off so let me show you what happened with ripple over the last day. yeah, it is down 11%. but i changed the start to the last 14 days, well, look, it is up a lot. it is up 100%. 138% in the last 14 days. i think one of the interesting things is the volatility we have seen tends to take the headlines. the long-term rise -- if long-term is a year -- really tells more of the story. i think when you look at the details, you see the great differences between ripple and t andin between the xr the like-minded blockchain technologies and the different problems they try to solve. you find a much more interesting story. that long-term lens, even if one year is long-term, is not the lens we are used to apply when it comes to equities. even though interestingly the futures contracts have not reduced the volatility in the trade of beeitcoin. emily: you told us that bitcoin would do you believe that will still happen? jehan: absolutely. i think we are seeing the market is inhaling and exhaling. we are seeing the body of blockchain, the application side is continuing to develop. in 2018, not only will we see $50,000 price levels, but i think we will be seeing cryptocurrency and blockchain technology emerging from its adolescence and really coming into its own as an empowered and self-aware technology. we are not going to be talking about how blockchain is impacting the markets. we will be talking about how blockchain is impacting the world. emily: and learning how to socialize. thank you so much. cory johnson, thank you. , and for that story. coming up, streaming services take home high honors of the golden globes. we give you a list of winners, next. this is bloomberg. ♪ emily: sony music publishing and facebook signed a deal for online video. users tollow facebook post songs from artists like taylor swift from a catalog of 3 million songs. the multiyear accord will give songwriters the users to post songs from artists like taylor chance to earn royalties when there'd music is used on facebook and instagram. could mesmerizing qualities of the iphone foster a public health crisis? two big shareholders of apple think so. the california state retirement system urged apple to great ways for errands to restrict child access to their mobile phones and study uses on mental health. amazon studios bounce back after a rough 2017, losing its studio head after allegations of sexual harassment. thatn's the marvelous won series and best actress of a tv series. the handmade tale won for best tv drama and best actress in a drama tv series. netflix garnered nine nominations but only won one with aziz ansari. we look at the intersection of venture capital and biotech. the year that was, medical breakthroughs and what could be coming in 2018. this is bloomberg. ♪ alisa: i'm in washington and you are watching bloomberg technology. here's a check of your first word news. president trump is very close to picking his nominee for vice chairman of the federal reserve, according to a white house official speaking on condition of anonymity. the official also said the managing partner of pimco has been rolled out. the central banks number two job has been vacant since stanley fischer retired. federal regulators that rejected rick perry's plan to bailout struggling coal and nuclear plants. the federal regulatory commission terminated a proceeding was considering the directive outlined by perry. the u.s. supreme court has left intact a mississippi law that curbs daylights. gay rights. businesses and government workers can refuse to provide services to gay and transgender people on religious grounds. an appeals panel previously found the lost challenges fails to show how it harms the lgbt community. president rouha is challengingni hardliners with calls for more freedom. he says the anger that led to protests exposed the need for freedoms that he has been pushing for. theervatives portrayed demonstrations as proof that his policies failed to improve living standards. global news 24 hours a day powered by more than 2700 journalists and analysts. i'm alisa parenti. just after 5:30 p.m. in washington, 6:30 a.m. in hong kong. inglesjoined by david with a look at the markets. good morning to you. not much to move the markets here in the states. how about you? david: we are looking at a few points in the asia-pacific. i want to remind our viewers that the north and south me today for the first time since 2015. in terms of catalysts, we have a few on the table. investors as they have been for the last three months are focused on valuations. we are kicking up learning season in some of the big markets. samsung headlines when it comes to that space within the next hour. preliminary earnings. they might get to 24,000 on the nikkei since 1991. a quick look at the currency space. rare dollar strength. traders expecting the bank of canada to move so we are expecting a little bit of a pickup. south korea very much in focus. there is substantial strength coming through in the south korean currency. wrap of yourute of you marketeer. s here. more bloomberg technology next. ♪ ♪ emily: this is bloomberg technology. milestones inor the biotech industry, including 46 newly approved drugs, making it the second most approved ever in one year as well as the u.s. approval for gene therapy for a rare form of blindness. one of the players in that field is third rock ventures. the firm has raised nearly $2 billion and launched over 40 medical based companies. me on the jpmorgan raised conference in san francisco, alexis borisy, the author of dozens of biotech patents. great to have you back. you are here on this show last are at this time. you made predictions for me on n 2017, said it would be a big year for biotech m&a. that proved true. what are your predictions for 2018? alexis: it is great to be joining you from the craziness of jpmorgan here in the hallways again. hoping that 2018 is going to be another very positive year. 2017 was a great year for approvals and for some incredible results for patients. will thatre hoping m&a wave really appear in 2018 is one of the big questions. we hope the fundamental innovation will continue coming along strong. emily: if your hope ends up fruition, what kind of deals deal expected see? to you expect to see? alexis: biotech companies that we invest in and become the fuel for the global pharmaceutical industry. see? to you expect to see? big companies, two thirds of the pipeline come from the small company. those big companies have hunger for innovation. we would love to see a series of bigm&a's across of differentm&at categories, whether it is physician oncology side or neuroscience side. he $1 billion to $10 billion markethe $1 billion to $10 billn market range -- there was not a lot of that in 2017. i think it is one of the big questions people are talking about -- will we see that in the first half of 2018? emily: what impact do you think the trump administration and a new health care plan will have? ll, the tax reform that was just past through, that is in a big overhang when people will be saying whether capital will be repatriated or not. some people thought a lot of large companies were sitting on the sidelines. that has been removed. there is a favorable environment. let's see how that actually plays out. on health care itself, i think fundamentally there remains a fundamental hunger for innovation. that matches up well with the great progress that is being seen in the innovative biotech sector. emily: how do you think that will impact drug pricing in general? alexis: this is always one of the great big questions. if you ask me what do i see are the two big risks of 2018 -- number one is does the m&a show up. number two is does there become another big thing on drug pricing, how drug companies are getting away with murder? ll, the taxfour, the fundamentan to happen, like what we do is we get involved in creating companies that can offer breakthrough medicines. we have to believe that if we start down the path of the 10 year cycle that cost multiple of billions of dollars to create that drives, that society will pay for those at the end. when things get mixed up, where some people are saying prices thetoo high and you mix question of price hikes on older drugs with paying for frontal innovations, that can cause problems in the early stage part of the cycle. optimistically -- yeah, go ahead. emily: you are talking about how long the lifecycle of some of these biotech companies are. do you expect her own portfolio companies to take the public market? sometimes these cycles can be frustratingly long. alexis: yeah, at third rock over the last 10 years, we have helped create 46 companies. and sixhad 16 go publicalexis:, of them from an m&a perspective. if markets stay as they feel now, we expect there will be several more companies in our portfolio going public in 2018. two to four companies going public. emily: and six of them when it comes to your on portfolio, what are some major portfolio, what are some major trends you will be watching out for and advising your companies on? alexis: th great activity in precision oncology. we imagine precision medicine coming onto the whole field of oncology. i think it will be a big trend in 2018 and going forward. precision medicine outside of oncology, particularly in areas of immunology, various autoimmune diseases, can be a very big theme. and regenerative medicine, rebuilding and restoring parts of your body. emily: you think this could be a big year for cancer therapy in general? alexis: i think 2017 certainly was. i think we see that theme continuing. one of the companies in our portfolio that we could see becoming a public company this year would be neon, which is focused on that personalized medicine cancer vaccines and personalized medicine t-cell-based products. we also see magenta therapeutics, the regenerative medicine side of the equation. emily: alexis borisy, partner at third rock ventures. thank you for joining us. hope to have you back a year from now to see if your predictions for 2018 held true. we will have much more from the health care congress all week long with david ricks. wednesday, we will speak with the cigna ceo at 8 p.m. eastern time. the engineer fired by google after criticizing its diversity policies is now suing the company, claiming an anti-conservative bias at alpha bet. bloomberg,peaking to he claims a class action lawsuit that he and the others were criticized for their views. he washe claims a class action t fired in august after filing a 10 page memo claiming that women were unfairly celebrated and white men were mocked. google says it looks forward to defending the lawsuit in court. the french government is pushing a new message to investors. france welcomes the business world with new reforms on a way to push the country forward. we discussed what is ahead for the country, next. this is bloomberg. ♪ emily: a stock we are watching -- tesla stocks rose more than 10% in fired monday's session, e biggest intraday jump since august 3. tesla gain back losses after reporting week model 3 numbers last week. the model 3 production rent has been somewhat derisked after tesla made it more challenging to short the stock. france is trying to remake itself as a hub for tech and startup after the election of emmanuel macron this past spring but it is facing challenges as it tries to tap into the global tech boom. pascal is helping to bring change to the country. he was general manager and vice president for apple europe, middle east and africa before founding his own firm. he spent the last two decades working in london. he spent the last two decades working in london. this is before al lot of these regulatory concerns we are hearing about. how would you say things have changed since you started working for apple in 2000? pascal: in five years, we moved from less than 10% to up to 50% of the 18 to 25-year-old french theg adults willing to join entrepreneurship enterprise. you've got last year in france more venture capitalists in the country than any other country. the culture change is massive. half peopleance, want to create their own. the change is here. emily: how would you describe the impact of increasing regulation and regulatory concern? pascal: i am not sure we can talk about regulation. we are now working with president macron. appreciate they are bringing more below us. how to deal with futures. we have a lower tax across the line, lower corporate tax. figures for the capital gains tax is at 30%. there is a massivethere is a mao the political landscape with a lot of newcomers. if there is a case -- emily: what do you think about the actions coming from the european competition commissioner and margaret? pascal: they do the job. clearly, we need to create market rules. we have been well known for the frame that iser a frame that is objective. yet, it has been under scrutiny. we appreciate it is really much market, free flow of goods and people. in france, an excess of 10,000 that has been created lately. when you look at the past technology of moving companies, france is in the lead. i think things will market, fref goods and people. in france, an change. emily: president macron says he wants france to be the landscape of a uniform. there is only one. how does he intend to birth more unicorns? pascal: you can add obh on the service side. in nasdaq.y public emily: a rare breed. pascal: we actually talk about france, what we talk about europe. we would like to see france as the entry gates into the open market. you also have the large arab world which is not out of the far reach of europe. i think everything is looking pretty good. the gdp growth is better, the mindset has changed. we really benefit from the platform that has been created in the last 10 years here in california. emily: what do you personally hope to accomplish and what do you bring specifically from your background and a company like apple which is clearly a global company -- how do you use all of that in your new role? pascal: i heard a lot about the french bashing. what i want to say in front of you today, to explain that france means business. d entrepreneur means going to france. i think france is very much welcoming for investors and talents. the place -- we've got the largest contingent. that has been the case for three or four years in a row. we have 50% more companies. it is about carrying the message that things are changing. cagni, c4 ventures founder, thank you so much for joining us. coming up, you don't need to be in the nfl or nba to be a sports star anymore. we look at the multimillion dollar eastwards industry and how it is taking over china, next. this is bloomberg. ♪ ♪ 580 million in the next three years and much of that growth comes from china where the s spends about $140 a year. one of the top draws is league of legends. bloomberg spoke with the company's head of e-sports about what new innovations they had in store. >> we just announced our franchising which is the end of promotion. we have long-term partners who are investing into our sport for the long run. we now have a lot more professionalized owners who is working with us, building the brand and really building the sport together with us. the other thing we are doing is our league of legends pro league. ---- we'll be working together with the home teams. they will be able to broaden the reach to the fans and strengthened the ecosystem. they get to work with all of the industries locally in those markets. we are looking much more like a professional sport. >> give us some numbers. what are you talking about in terms of audience numbers, players and revenue? give us some guidance on how big this market will be at the end of the year. johnson: 2017, the total number of hours watched for league of legends e-sports is 3 billion hours. the most-watched game during our world champion series which was 8 millionchina was unique viewers. that is higher than any sport out there for the entire year. no other sport has that many unique viewers for the entire year. you can say that in many regards, it is the most watched sport in china. in terms of revenue, we cannot disclose too much the revenue figures but we are proud to say that league of legends pro league in china is the highest revenue league in e-sports in the world. we are also probably the closest. >> how are are you broadening the accessibility to this sector, beyond hard-core gamers? how are you pushing it out? johnson: what we are realizing is that there is already a lot of viewers. we estimate that just league of legends e-sports viewers is about 70 million in china. e-sports viewers in general is about 220 million. these are really large numbers that are actually getting into y.e scale alread what we think is that we still want to provide the best experience to the hard-core gamers. but at the same time, we can provide an experience that the hard-core gamers and sports audience can like a like, will be great for us. we will continue to better the production quality, the value of our product. making sure we have better games , more competitive leagues. that is what we will continue to do. we will continue to market to the hard-core gamers and make sure the mass audience can actually understand are gain better. >> is the push to get e-sports into the asian games 2018, is that an attempt to broaden the audience? how close are you getting e-sports included? johnson: for asian games, it is a long story, but it is something we are discussing. strongink it will have a symbolic symbol for e-sports as a whole. i definitely look forward to that. in the end, league of legends is the most-watched e-sport. i think having the most-watched game and most played game for e-sports representing the asia games will be something quite meaningful. >> how do you respond to those that say this is not a sport, this is a sedentary activity? it is addicting. it is keeping a lot of young people at a desk for hours. this is not a healthy transition. johnson: it really depends on how you define sports. to me, sports is about having a competitive spirit. having a team-based or even individual based experience. a normal sports audience wants to watch. sport. any can be a for us, we have a sports activity that fits all of that criteria. highly competitive, it takes a lot of training. now we have a thriving pro league team. emily: that was the head of chinese sports johnson yeh at the ubs china conference. that does it for this edition of bloomberg technology. we are live streaming on twitter. check us out weekdays 5 p.m. new york and 2 p.m. in san francisco. that is all for now. this is bloomberg. ♪ >> we are live from bloomberg asian headquarters. welcome to daybreak asia. the top stories this tuesday -- asia stocks building on wall street records. japan returns for the holidays with the nikkei shooting for 24,000. we are live at the korean border ahead of -- hi stay stocks between the north and south. the first in two years. global bloomberg's headquarters in new york, it is 6 p.m. on monday. bitcoin slapping on monday, worries about demand and regulation dragging down smaller rivals as well. president trump is said to become