Our top story, jp morgan setting records. Tuesday, reporting the best year for any bank in u. S. History. Shares jumped in the fourth quarter, ruled by a rebound in trading. Joining us to discuss, bloombergs sonali bostic. It seems like humans at least stand another chance against the robots that had been threatening so much of the trading business. Sonali even though there are humans involved, remember that jp morgan among other banks are working very hard to make these businesses much more electronic. Almost every part of these banks are being transformed by technology, except the m a rainmakers we really need the relationships to make a difference. If you talk to anyone at jp morgan, the ceo definitely says that they are just at the early innings in terms of what technology can do for them. That is with the nearly annual 12 billion spend on technology. Taylor we are only in early innings of that transformation from technology. What do we do from that retail visible presence . Sonali if you go to a Branch Network and need a certain type of loan, they still believe those are necessary. That does not mean that you cant supplement the digital with the Branch Network. Citigroup, this morning, they were explaining that digital deposits have risen to 6 billion just last year. That is sixfold. They are making progress on all fronts here. Taylor any thoughts on how they are looking to repurpose that space . Much of the banking is done online but Millennials Want to make sure they can at least see a branch if things go wrong . Sonali first of all, they have to make these places more welcoming and do a lot with less space. We had citigroup this morning talking about their relationship with google, and to expect more product alongside google in the first and Second Quarter of this year. Goldman sachs, the ceo has already started talking about the market that has rolled out much more quietly than their relationship with apple. Now, you can do many more Banking Services on a mobile app. The big banks have been pretty hesitant to do what we saw with visa, for example, to go out and acquire a big company. We have seen goldman make acquisitions at the margins but generally, we have seen them investing to make their own products and do partnerships on the side. Taylor you mentioned a lot of their tech spend. What do we know about how they are spending to invest in electronic trading and some of the other robotics and ai perhaps . Sonali when you look at the trading businesses, in the equity trading business, there has been a a lot of progress across wall street. Fixed income, we are at the early innings. If you look at market access, one firm focuses on this world, they have really flown out of the water. They are really benefiting from the investments they are making there. Taylor dont go anywhere because we are moving on to our next story and i want to include you in this conversation as well. The big deal around fintech. Visa has agreed to buy plaid a company that connects customers. Lets bring in Bloomberg IntelligenceSenior Analyst for fintech, julie. What does plaid do for visa . Plaid has 2800 fintech customers. It has the big ones. Venmo, coinbase. Plaid has really been a u. S. Based company so visa is in a great position to add Fintech Companies internationally with the plaid services. Payment capability into fintech. That would mean, more Payment Transactions coming across the visa payment network. Taylor earlier, we had nea general partner and a plaid investor, rick yang. Take a listen. You have a lot of traditional and Financial Institutions talk about our software strategy, how do we stay relevant . Then we have a lot of Software Companies recognizing the benefits of fintech to the consumer. With infrastructure like plaid, it becomes much easier to bundle that into software. Visa, the rationale for acquiring plaid, it was really about growth and expanding. Taylor what do you make of those comments . Sonali it is Pretty Amazing because when you look at some of the big stories of last year. Wework, peloton, trying to command multiples, they had a hard time. A lot of the Software Companies won out. It seems like we have a pretty perfect marriage here where the Software PeopleFamily Financial industry and the financial industry had a real need for the Software People. Otherwise, they would need to be paying up so much to be hiring. I dont know how many exits we can see that are this big. But remember, there are a lot of interesting Fintech Companies that have ballooning valuations, including stripe, the most valuable startup in america right now. Taylor an analyst at jefferies came out with a note saying that visa had traditionally lagged mastercard when it comes to showing its value to fintech customers. How does this change the game for visa . Julie i think this allows visa to catch up and levels the Playing Field. The companies with deep pockets are able to throw money at the issue. When they need a capability, when they feel the time is right, they are able to go and pick up these companies. Essentially, the revenue of a company like plaid is practically a rounding error for the revenue of visa. As these Companies Need the technology and feel that the time is right, they are able to throw their big dollars at them. Taylor this also addresses the theme of digital wallets. What other transactions have we seen from visa . Julie when the digital wallet first came out, everyone was writing the obituary of visa and mastercard. The card brands were smart direct is that people did not necessarily want to get rid of their credit or debit cards. Now they could use them on mobile. Visa allowed its credentials to be added to a wallet so people can keep using the accounts that they always wanted to use. At the same time, it needed easier for the merchants to accept digital wallets because they were already connected, most of them, and they could continue to process payments. The threat turned into an opportunity and right now, visa partners with all the major wallets in the u. S. , europe, india, and china. Taylor thank you. Rachel holt, one of the first employees at uber, who rose to become one of the most powerful employees in the company, is leaving to start a Venture Capital firm. She is creating a new firm, construct capital. Holt led the development of new mobility projects at uber such as electric bicycles and scooter rentals. Coming, aol cofounder and current chairman and ceo of revolution, steve case. If you like bloomberg news, check us out on the radio, the bloomberg app, bloomberg. Com, and in the u. S. , on sirius xm. This is bloomberg. Taylor british Prime MinisterBoris Johnson is hinting that he will not and while way from the countrys 5g networks. The u. S. Has been pressuring the u. K. To ban the company from the country for National Security reasons. Johnson said that if they ban one supplier, they have to come up with an alternative. There is no shortage of tech related news. Data privacy, antitrust, as well as trade. I am joined by steve case, aol cofounder and chairman and ceo of revolution. The first story, apple and fbi. A complicated story. A december 6 terrorist attack in a florida navy base. Apple is a little bit hesitant to turn over the data. Generally speaking, where you see tech as protecting peoples data . Steve i think you framed it perfectly as a balance between individuals. Five years ago with apple, there was a case in San Bernardino and they wanted them to open up the phone. It went back and forth. We will see more of these cases in the years to come as technology and the internet becomes more embedded in everyday life that it will deal with a lot of issues in terms of what it enables on the Positive Side and how you make sure society is protected from bad things happening. Taylor one of the arguments, if we create backdoors or loopholes, it allows bad actors to come in. Steve it is a fair argument. I do not know all the details with this recent case in florida. Apple obviously would have a lot more insight than any of us. These are not simple issues. It really requires engagement. That is one of the things i hope will happen more in the next 10 years. Engagement with Silicon Valley, the policymakers. We are going into an era where it is so fundamental. Of course, privacy is important. It makes sense for apple to protect the privacy of its consumers. It is also of course reasonable that Law Enforcement has the tools to protect us as a society. It is tricky and you have to get into the details. Taylor we are waiting, phase one perhaps of the signing of the u. S. China trade fight, hoping to get a little bit of a resolution. As you look at phase one and going out further, and especially as a tech entrepreneur, do you think we got enough concessions from china with ip theft and some of those forced tech transfers . Steve the tech transfer issue is probably the most fundamental and the trickiest. China agreed years ago to not require Technology Companies to transfer technologies to compete in china. I think having some kind of truce, some kind of settlement so people can move forward with there is clarity, everyone knows the rules of the road i think that is a step in the right direction. It really comes down to the nittygritty, the execution. I think broader, from a global standpoint, for decades we have been focused on internet as a global phenomenon, but we are seeing, particularly in china and more broadly in asia, a splintering of the internet. The internet will not necessarily be as global. How that is connected into everyday life, dealing with policymakers to getting these issues right. Taylor how do you operate a company in china and how do you operate an Internet Service given that effectively your reporting to beijing . Steve it is tricky. Google, as an example, did not do that. They decided a few years ago that they made those compromises. Not to continue to compete with some things like instant messaging because we were concerned about some things around censorship. Trying to build revenue, serve more customers, create shareholder value, but also figure out your broader responsibilities in society. Every company has to make its own decision. It is getting more difficult than it was years ago. Taylor steve case, revolution chairman and ceo, will be staying with us. Up next, how he thinks technology will shape the next decade. Bloomberg technology is livestreaming on twitter. Check us out technology and quicktake on twitter. This is bloomberg. Taylor revolution chairman and ceo, as well as aol cofounder, steve case, is still with us from washington. You have been traveling the u. S. Looking at startups and innovation hubs outside of Silicon Valley. You announced five new destinations. Wichita, oklahoma city, tulsa, northwest arkansas, and st. Louis. Why those cities . Steve this is our ninth road trip. We have been visiting cities to shining spotlight. They are building really interesting companies. Obviously, Silicon Valley is going to continue to be a great center of innovation. Venture capital went to just three states. Whether it be kansas, ohio, michigan, other states, get less than 1 . We want to level the Playing Field and allow entrepreneurs to people feel like they can be part of the future as opposed to just a few entrepreneurs. There have been a number of breakout successes. We have now backed over 100 companies in 70 cities, over 30 states. It is excited to see what is happening not just on the coast. Taylor it would not be a good interview with an entrepreneur if we did not get some of your top 10 predictions of the next decade. Reading through your blog, one thing that stuck out to me was the rise of health and wellness. I wonder, how much of this appears to be overvalued even that there appears to be so much attention on health, on wearables. Steve a lot of the focus has been on the wellness side of things. The consumer decision. Over the next 10 years, the core of the health care system. A lot of companies doing really interesting things. A Chicago Company using an ai to diagnose cancer more precisely so people know what they are dealing with and there can be a more personalized approach. You would see a lot more of that. Better outcomes and at a lower cost. Taylor another one of your big predictions, more tech backlash. Do you think the problem here is that there is not enough trust between the consumers and the owners of that data as well . How do you get more trust so there is not that big backlash we have started to see . Steve two areas, one is the consumer side of things. They are starting to get a little more concerned. They are concerned about the elections given some of the things happening. Not surprisingly, the policymakers, they are saying, this technology is allowing things to happen, but how do we strike the right balance in terms of managing this. The backlash, regulatory backlash, probably a look on the antitrust side, facebook, google, others getting broken up. These companies will be a little bit more careful about making new acquisitions and that will have an interesting impact in the startup sector, maybe open up opportunities in sectors that right now look locked down by the incumbents. Taylor you are looking at a rise in ecommerce. Does someone come in and disrupt amazon . Steve amazon looks to be in good position. Walmart and amazon are duking it out. They had different strategies, they are starting to converge with a bricks and clicks type of strategy. Most of the attention is on what is happening on the direct to consumer side of things. Many copies that have formed, warby parker, frame bridge capitalizing on the ecommerce boom. On the backend, Companies Like big commerce focusing on reverse logistics. What happens when products get returned. Freightway, figuring out where trucks should go to deliver the products. All the infrastructure happening around that will continue to accelerate in the next decade. Taylor we have less than a minute. I wanted to get your thoughts given that we just passed the 20 Year Anniversary of the aoltime warner merger. Would you do it again . Steve i would do it a little bit differently. Trying to drive the conversions of what we have seen, things like netflix, the ipod. Aol and time warner together had the potential to do that but they never worked well together. There was a culture clash, a bunch of other challenges. It is great to see Companies Like disney bring the whole company together in an integrated way to launch disney plus. I wish we had seen that 20 years ago. Thomas edison said, vision without execution is hallucination. That is what i think about that merger. Great promise but it was obviously a big disappointment. Taylor always great to have your thoughts. Thank you to steve case, revolution chairman and ceo, and cofounder of aol. Coming up, how Chinese Companies are pursuing access to global technologies. This is bloomberg. Taylor this is bloomberg technology. We joined bloomberg daybreak australia to bring you the latest news. Haidi stroudwatts is in sydney. Lets take a look at the top tech stories of the day. Haidi royale has vowed confidentially to raise 1 billion, according to sources. Its now tapping u. S. Markets after liquidity downturns. Royale is known for manufacturing the worlds first commercial disposable phone. Credit suisse has stopped working on the upcoming u. S. According to sources. It joins other investment firms including citigroup and bank of america. It follows going concerns about a potential sector downturn. Amazon has offered alone after u. K. Probe into the startups funding round brought on a cash crunch, according to sources. It could be running low on capital at the londonbased Food Delivery Service is said to have sufficient funds to continue operating. A spokesman declined to comment. Those are the top tech stories we are watching. Shery an achievement in the tech sector for huawei in china. It broke into the top 10 recipients of u. S. Patents last year. Its the latest sign that Chinese Companies are aggressive in pursuing the u. S. Lead in global technology. And trying to overtake germany for the first time as the fourth biggest recipient of u. S. Patents. Im joined by anand, great to have you with us. It seems a lot of those patents were related to 5g and we have this trade dispute still ongoing in the tech sector with the blacklisting of huawei. How has that affected this rollout . Is no surprise that china wants to dramatically expand its tech prowess from semiconductors to advanced Internet Services. It is no surprise that huawei and other chinese Technology Companies across the landscape are filing for more patents, to the degree this is homecourt, and it is also a large market. They want to secure homecourt advantage, so to that extent they are pushing for patent exposure or patent protection in the Chinese Market before they expand into other areas. That is the first part of it. With respect to the global trade drama, this is going to be a continuing saga, number one. Number two, were going to see these patents be enforceable in multiple jurisdictions all the way from d. C. To europe to china to the u. S. , and multiple jurisdictions even in the u. S. , so it is not surprising that this is a natural evolution, both by chinese Technology Companies as well as from a location perspective, they are trying to secure this adv