Rodney has informed the gop leaders he opposes the bill. A u. S. Official tells the ap investigators are examining whether an amtrak engineer was distracted when the train derailed yesterday, killing three people and sending cars off an overpass. Investigators are looking into whether the engineer lost situational awareness. The Trump Administration is blaming north korean hackers of last years malware attack. Pyongyang has dismissed those allegations. Global news 24 hours a day, powered by 2700 journalists and analysts in more than 120 countries around the world. This is bloomberg and Bloomberg Technology is next. Emily im emily chang and this is Bloomberg Technology. After a killer year for tech stocks, will the sector become a victim of its own success . Ares to cryptocurrency fueling record gains of littleknown companies. We will discuss. Amazon can outdo its own monster year. While americas ecommerce came could be on track to becoming the first u. S. Retailer to sell 1 trillion worth of products and services. First, to our lead. U. S. Stocks finished with the techheavy nasdaq having its worst day in two even as tax reform is pending. At one point, apple was one of the biggest point drives in all three of the major averages. Bloomberg news stocks reporter Abigail Doolittle joins us from new york. What is happening with apple . Abigail it really stood out. Apple down more than 1 on the day, on a rare downgrade. Nomura downgraded the shares to neutral from buy. Analysts citing the fact that all the good news is already priced in. He makes a good point, making the point around the iphone super cycle. And Something Else that stands out around these gains. If we hop into the bloomberg and btb7997, there is a pattern that emerges around the super cycle. We saw the shares rally and then fall off. We certainly see that rally on super cycle expectations. But the interesting thing is relative to growth, the fiscal year 2018 for apple which ends in the September Quarter is about 20 . That is a tremendous growth rate thanks to the iphone x. For fiscal year 2019, it is expected to dropdown to about 2 . That is a pretty incredible drop off in growth. We have seen those dropoffs in growth over the last super cycles. If you can believe this, it is not an apple to apple comparison no pun intended there for the fiscal year 2019. Walmart is modeled to grow slightly more than apple over the comparable time period. That might be something that the street is starting to look ahead to as well. Emily i like the puns. What about the other big tech names . We also saw a drag there. Did that have to do with what we saw with apple, or what is happening or not happening with tax reform . Abigail a little bit of both. Apple, the downgrade, investors are wondering if that is a sign of what is to come for the other big tech names. We have those names selling off on the day facebook, amazon, netflix in alphabetical stop it could have been that. Plus, idea that all these Technology Companies already have low tax rates so less likely to benefit. That could be a small piece of it. Unclear there, but a risk off tone for all these high data names. We had tesla trading lower on the day. Ups said they have commissioned a company for 125 of those electric vehicle trucks. One thought could be that idea that production for this company has had its issues, so maybe investors are thinking that is a high bar for the company. Even though it is also positive. Relative to taxes, while there does not appear to be an electric vehicle tax credit ding in the current tax overhaul, the fact that it has come up, that it should be limited to 270,000 credit that could be something investors are thinking about for the future. Tax reform, tax overhaul is certainly a big influence on the markets today. Emily all right, Abigail Doolittle for us in new york. Thank you for the run down. The euphoria around tech stocks may evaporate by next year. According to a survey, the trade is getting a bit crowded. Michael wolf, cofounder of activate, is my guest host. What is your outlook for tech in 2018 . Can it compare to 2017 . Michael i think we can see massive growth in the earnings of these companies. If you look at them, each of them from a market perspective, it has been way up. The largest companies, 50 . Of course, investors are concerned. The Tech Companies account for way overweight. Together they are about 10 of the s p 500. All tech is about 20 plus of the s p 500. So, at some point, we are going to see investors slowing down investment in these companies. It seems like we ask that every year and every year tech keeps getting higher and higher. Michael part of it is that you are dealing with companies that are so dominant in these businesses. If you look at between google and facebook, they totally dominate all digital advertising. 75 of digital advertising. If you look at apple, you can look at all the super cycles but the reality is apple delivers the highest priced phones. And the entire ecosystem around it. In a lot of ways, these companies are unassailable. Their growth will continue. Emily we saw what happened with apple earlier today. Where do you see weakness . Michael the biggest weakness will be as these companies are moving into international markets, they are facing very tough competition. If you look at alibaba, jd. Com, tencent, these companies are not just staying at home. They are moving beyond. I think we will see a lot more of the penetration of android phones. Of course, there is a big backlash against facebook and instagram at this point. Somebody else will come out with a service that drives consumers. Do i think these are nearterm trends . No, but i think it will affect them longerterm. Emily where do you think the battle lines will be drawn . Abroad . What countries or what markets do you see these companies clashing with chinese Tech Companies . Michael certainly in asia, but the chinese Tech Companies will be moving here. At the same time, we will have a lot more regulation in europe that is going to dampen the growth of any of the major Tech Companies. So, it again, there is nothing imminent. But over time, the law of large numbers over takes you. Emily our producer says the worst thing tech has going for it is how well it did this year. My question is, if none of these things are nearterm or immediate, what happens in the first half of 2018 . Michael i think they will continue to grow. I think we will see tremendous growth from each of these companies. And part of it the Underlying Forces are there. It is the shift of ecommerce, it is the shift of advertising and the growth in digital. Everything that is going on across the industry is a rising tide that will float all of these Big Companies ships. Emily michael wolf of activate, you are with me for the hour. Michael great to be here. Emily great to have you back. Facebook has introduced new features to curb abuse and protect privacy on the platform. New facial recognition features should help prevent unwanted contact like friend requests and messages when someone you block sets up a new account or try to contact you from another account. The new features also provide the option to ignore a messenger conversation and move it out of your inbox. Without having to block the sender. Coming up, what is the formula for a 2700 rally . The combination of fintech and cryptocurrency. Why finTech Companies like Digital Power are pushing into the crypto space. Bloomberg technology is Live Streaming on twitter. Check us out weekdays 5 00 p. M. In new york and 2 00 p. M. In san francisco. This is bloomberg. Emily a marriage of fintech and cryptocurrency is fueling serious gains. Just look at longfin. Shares have skyrocketed more than 1000 since last week. What is sparking the gain . Announcing the move into the Digital Currency space. The market cap swelled over 7 billion. Interview onr an , heres began to move. Watch this interview. It was fascinating, fascinating. What happened . Cory so, from the day when you and i first met, i told you about these stocks i was involved in. I would look for these companies that had nonexistent Business Models with robust stocks that seem to tie into a trend. I have seen this movie before. We have seen a lot of these reverse companies, shells of companies that come up with new names for a business plan. Or throw out some buzzwords. We are seeing that now with bitcoin. The bitcointy with market, or people trying to capture the next greatest thing, they are just running after any stock if they can get it. There may also be stock promoters at work. They will start a stock running, get a stock on the move, hold sell shares back, buy and we have seen the wolf of wall street. We have seen that when these stocks keep running and continue to run. Emily they go public and two days later they are buying a blockchain company. The stock soars. What makes this Company Worth even 1 billion . Cory the greater fool theory. Some moron thinks it is going to do well. Emily it still closed today at 5. 8 billion. Cory they are not alone. We have a whole bunch of these companies that have reinvented themselves. They have somehow gotten a new surge. A Chinese Energy company will call itself a blockchain company. Look at the valuations on some of these businesses. Billion. Ubi58 blockchain, 2. 3 billion. I looked up the companys headquarters in the u. S. , a office space rental in park avenue. I called the number for the u. S. Headquarters and some guy picked up on his cell phone. A 3 billion valuation. This is where we are right now, people bidding on these assets without understand the value. Emily if i were running one of these stocks and i got a call from cory johnson, i would be worried. Cory there is nothing to worry about. I get along with everybody. Emily the crypto company, where trading has been halted by the fcc. What is happening . Cory concern over who was buying and who is selling. The sec wants to know what is going on and who is buying this thing. The concern is not these guys are doing things that are illegal. We have seen things in the past that look like this. The sec is concerned that we have buyers and sellers with some relationship with each other. That is against the law. We dont know if that is the case. The sec may get involved to find out. Emily this is a company with billionaires. Not a small company. Cory only billionaires can have the share. The insiders have not filed toi se sell shares. The volume of the names have come down than previously. A lot of value created on paper from these companies. These companies that almost all have virtually no business, in terms of just revenues and being able to sell anything. The ubi blockchain, that company has got 18 employees. And it has got a valuation over 2 billion. Emily another survey from Yale University about skepticism, concern we are in a dangerous bubble. What kind of regulation this might prompt . Cory none. I think particularly with this congress, they dont want to get involved in regulating the market and protecting investors. We have seen very aggressive efforts to take away protections for investors and i think we may see more of that. I dont think people losing i speculate will not prompt congress to do anything to create more investor protections. I am not saying it shouldnt, but that it probably wont. Emily keeping as honest as always. Thank you, cory johnson. Well, elon musk appears to have just given his phone number to his 60. 7 million twitter followers. In what looks to be a message intended to the cofounder of do you havewrote, a second to talk . Then, he wrote out the digits. He quickly deleted the tweet but this is not the first time someone accidentally tweeted out what was intended to be a private message. Coming up, a new battle for better shipping. We catch up with the shoprunner ceo. How the ecommerce site competes with amazon for holiday delivery. If you like bloomberg news, check us out on the radio. Listen on the Bloomberg Radio app, bloomberg. Com and siriusxm. This is bloomberg. Emily big news for tesla. United Parcel Service has placed the reservation for 125 tesla semitrucks, the biggest order yet. The new trucks will join ups existing alternative fuel fleet, which is powered by electricity, natural gas, propane and other nontraditional fuels. Ups committed to growing its green fleet as its pull to reduce the absolute Greenhouse Gas emissions 12 by 2025. Holiday sales are shaping up to be best in years. That is according to retail metrics. That is good news for retailers, but online spending growth is expected to outpace brickandmortar. When it comes to ecommerce, Free Shipping will entice more customers to click buy. We sat down with sam yagan, ceo of shoprunner, an alternative to amazon prime. Sam shoprunner is a membership that allows our members to get great Shopping Experiences. Primarily that is Free Shipping, free returns and seamless checkout. For the retailers in our network, it gives them the chance to aggregate their scale to better compete in the marketplace. Reporter what we hear from the consumer side of things is this shipping experience or better shipping experience. How do you convince them they can get that by paying a membership fee . Sam amazon prime has set that precedent. We were founded on the thought that shop runner would be just like amazon prime for everyone else. Amazon prime has millions of people paying 99 a year. And wece is 79 a year, have partnerships with people like american express, where cardholders can get a membership for free. Reporter amazon prime office a number of other benefits which may be a reason why people are willing to pay it. Are you concerned you will not reach the kind of figures amazon will because you are not offering anything else . Sam i am not worried about being compared to amazon. I am really happy. We are focused on making the ecommerce experience as strong as possible. We have 140 retailers in our network. That is what they want us to do. They want us to help them have a best in class, frictionless ecommerce experience and that is what were focused on. Reporter what is interesting to me is that a number of the retailers within your platform or operate on your platform, they have their own ecommerce sites. What is the advantage of them to be a part of shoprunner. Sam i think the reason the retailers join the network is to aggregate their sale. The way i think about ecommerce you have a superpower in a war against these rebel armies. The question is, how can each of these companies alone it is hard to fight with someone so big. In aggregate, if you have a membership that spans a number of retailers then the consumer says i am willing to invest in my shoprunner account. The biggest friction to most retailers is what email address did i use to sign up, whats my password. You just dont have your account set up the same way you do with amazon. Because you can use your shoprunner credentials across 140 retailers, people invest in their shoprunner account to make their checkout super easy. Reporter amazon is already doing this. They are huge. How do you compete with the likes of amazon . Sam i think the most important thing we do from the competitive perspective is, from a retailers, we make sure to put their brand first and we are transparent with the data. The data belongs to our retailers and that allows them to continue to survive and thrive. For the consumers, people like diversity. People like shopping at different places, to be able to express themselves with products they care about. People want to have a great Shopping Experience so that they can wear clothes that are not just from one retailer. Reporter what are you learning about the consumer . You rely on big data. You are gathering a huge amount of data from the way people shop. What are you learning about them about how they shop during this crucial time . Sam we see data all across the network. This year we have millions of members spending billions of dollars in our network. We can track the category level, but also the retailer level what the trends are. One of the things we saw this year was people pulled forward their spending even before holiday week. So, november 1 through november 20 was much stronger than it was last year as retailers brought their promotional calendar forward. Reporter one of shoprunners investors is alibaba. Are they involved in the company at all . Sam sure. Alibaba has a seat on the board. They are an investor in the company. More than anything, we use them to have a global perspective on our business and bring their wisdom from operating globally across a bunch of businesses to help make us smarter. Emily that was shoprunner ceo sam yagan. Coming up, amazon on track for another major milestone for a u. S. Retailer. We dive into amazons Growth Strategy over the next five years. And a feature i want to bring to your attention. Our interactive tv function. On can find it at tv the bloomberg. You can watch us live. If you miss an interview, you can go back to it. You can play around with the charts we show you on air. This is for bloomberg subscribers only. Check it out at tv. This is bloomberg. Debra mao with your first headlines around the world. Saudi arabia is rolling out a huge expansionary budget. Toyre expanding spending almost 300 billion in a bid to revive a languishing economy. Inect gdp to expand it. 7 . 5 , after shrinking by this year. While inflation accelerates to more than 5 from its current negative territory. House republicans celebrated passing their tax bill, but not for long. Three members of the senate found provisions that violate the rules, and they will have to be stripped out before it can finally be written into law. That means the house must vote again before sending the bill to the senate, and ultimately, president trump. Few signsrive shows of coming to an end as we round up 2017. The original cryptocurrency traded sharply down in hong kong , the lowest since prior to the introduction of futures for recovering. Investors have shown more interest in Solid Digital coins, where gains have lagged. Have a look at the bond space. This is where we have a significant selloff similar to the treasury. Of course, were focused on tax but there may be a mix of buys next year. You are seeing asian weakness in these bonds across the board. When you look at the Regional Equity picture, it is selling flat. A couple of markets look quite 1 . , up 4 10 of otherwise very narrow with lowvolume keeping a lead on very strong moves across the pac region. Significant downward pressure coming through on a lot of these tourism related stocks. As they locked bases. Hong kong stopped looking good in lunch break. Up by half of 1 . Ite analysts estimate that could approach records before hitting a peak in 2019. We are seeing one of these banks tsuruha holdings, down 960. It is looking good with the banks, about one 4 10 of 1 . That is becoming a high energy player, up by a 10th of 1 . But as i mentioned, it is pretty much these next pictures coming showingacross the board weakness from ip stocks and real estate really keeping the overall regional index fairly unchanged. That is a quick check of markets. Emily amazon hit several milestones, including hitting over 100,000. Over 1000. The stock is up 54 for the year. The company could be on track to becoming the first u. S. Retailer to sell 1 trillion worth of products and services by 2025. This according to the latest report from bloomberg intelligence. Joining us now is the analyst who wrote the report, jitendra waral, and still with us is michael wolf. So jitendra, 1 trillion, why . Jitendra you look at the markets that amazon can realistically target globally excluding china, the size is about 7. 1 trillion today. If the Reference Point i would give you is the Empire State Building was the market amazon could target, amazon today is on the third floor. What you are going to end up seeing is that amazon will expand prime, increased consumer penetration and the video strategy they have, they will conquer a bigger portion of this pie. The trillion dollar number seems very realistic if you actually look at the growth of the end markets they are participating in. Emily the third floor of the Empire State Building, would you agree . Michael i think it is higher than that. One of the reasons is it is not just about the merchandise they are selling. A big piece is some of the other businesses. The Amazon Web Service which will continue to grow with the internet. They are going to be the one company that will challenge a google and facebook in advertising. They have almost as many visitors in the United States as those two other companies. Then we look at it, amazon does not release the numbers on the number of prime customers, but roughly 60 million prime customers. That is half of the u. S. Households. And no one is even looking at the fact they are likely to be able to raise prices on those customers. And so there are so many , tailwinds in terms of growth for this company that you could not be more excited about it. Emily what do you think the biggest opportunities are . Jitendra if you actually look at what jeff bezos said in an interview a couple of month ago, he asked it could be alexa or video. Or Amazon Studios. We think video could be a very pivotal strategy for amazon because today amazon makes 90 of the revenue from only five countries. And prime is available in 16 countries, but prime video is available in 200. So they want to use video, original content to bring in prime members, get them into the advertising business as well, and probably get into contentbased ecommerce. Emily the head of Amazon Studios left after sexualharassment allegations. They have not had a huge hit this past year. The main actor in transparent is gone. Where do you think these hits will come from . Jitendra they are hoping the new deals they have signed up on, some regional deals they signed up in asia as well they are hoping that can bring in the audience. When you look at the service and why people are signing up for amazon prime, the number one reason is Free Shipping but number two is video. It is becoming increasingly important. Emily do you think video is as big of an opportunity . Michael im not sure. They are spending a lot of money. They have some shows. Just like netflix, they are blowing a ton of money like this. Ton of money on this. Emily netflix has had more success. Michael netflix has had a lot more success but there is another part of amazon a lot of people are not remembering. Twitch is a massive video platform. Twitch has tremendous amount of traffic and has been way underexploited. But video maybe nothing more than a retention vehicle to get people to spend more time with the site and more with prime. And our activate forecast for 2018, we believe that speaker sales will peak next year because you will have alexa built into every other device. So its likely that even though they will sell speakers, the price of those speakers is coming way down. Emily what do you think the main weaknesses are with amazon . Jitendra regulation. Antitrust topics keep coming but the bigger issues are because thirdparty sellers business is getting bigger and bigger for amazon, the tax collection issue could be a problem. And then of course, you have competition from walmart. Expansion in those verticals. Competition and regulation are the top threats. Emily we have to leave it there. Jitendra, always great to have you on the show. Michael wolf is sticking with me. Microsoft is letting employees to say they have been victims of Sexual Harassment have their day in court. The seattlebased tech giant is ending its policies that some cases have to instead go to arbitration. In 2015, three female employees brought a lawsuit accusing microsoft of gender discrimination. Microsoft has endorsed a Bipartisan Senate bill that prevent companies from forcing employees to settle these kinds of cases behind closed doors. Coming up, the battle for music streaming supremacy in china. How singing with your favorite stars helps. This is bloomberg. Emily youtube has taken a big steps towards its own paid music service. Google streaming sites signed a new longterm agreement with universal music and sony. It establishes royalty rates for professional music videos. Record labels have long you may criticized youtube claiming a lax approach to protecting copyrighted content. Youtube is promising stronger you policing of copyrighted songs. Meantime, the crown jewel in music streaming might well be china where tencent is currently king. Tencent dwarfs apple and spotify in china and will eye a 1 billion ipo next year. One Music Company they are backing is smule whose flagship app lets users sing with famous characters. Joining me now is the leader of smule, a classical pianist, jeffrey smith. Talk to me about this tencent investment in your company, what you get from them and does that give you a window into the chinese music market. Jeffrey we are thrilled to have tencent as a partner. We are happy to be on your show. You tencent understands not only social media but the role of media and content in driving driving deeper user engagement. You and you i think because of the insight of both media and social engagement, it was natural for them to partner with smule because we are a Market Leader in defining a new category in social music, allowing people to create music you rather than listen to it. Emily do you have a context on the size of Tencent Music and the potential of music in the china market . Michael tencent now controls 75 of the music market in china. They are saying they are getting more paid subscribers than spotify. The difference is they are getting a dollar a month and spotify is getting 9. 99 a month. There was a lot to suggest that not only what they continue to be strong and it will be a great business, but it will be focus not just on u. S. And international artists, but a lot of chinese artists. Emily what do you think of the potential of tencents music next year . Jeffrey i think music has gone to one of the most exciting Market Opportunities and i think investors are waking up to it, perhaps in part because we are seeing innovative Business Models alongside with the recognition that music is one of the most engaging platforms of media on the internet. When you look at data from nielsen, over 90 of americans were listening to over 32 hours of music each week. That is up from 26 hours a week the year before. So when you think about how engaging this medium is and when you recognize that streaming today only represents 6 of music revenue, there is an Incredible Opportunity for all of us to scale alongside that engagement. Emily Tencent Music and spotify have an interesting stake swap going on but they are also competitors. What do you think about the potential spotify and apple versus Tencent Music . Michael certainly, tencent will dominate in china. Emily what about beyond . Michael we are really at a point where it is a race between two players. It is going to be spotify and apple music. The one wildcard is what happens to soundcloud because soundcloud has so much more songs than apple and spotify which has roughly 30 million songs. Emily right, but it is all the songs you would want to listen to. Michael it may not be the songs people are listening to because youtube is the largest music player. They may not be the ones charging, but more people are listening to music on youtube than either of the other services. Emily what do you think has the ultimate edge . Jeffrey i think we do. Emily shocking. Why . Jeffrey spotify has a fantastic business and tencent understand understands the impact of engaging music in china. When you think of where music is today and where it might be going in the future, or even historically where music has been, it is not simply passive listening and streaming. Music intrinsically is about engagement. If you look about this segment of the music market, the biggest revenue producer is live, not streaming. If you are truly trying to bring music back to its roots, it is not just streaming premium content. It is allowing people to participate, create, explore. There is a User Generated Content segment in this with the social media. Emily lets talk about your deal with disney. How does this work . How big is this going to be . Jeffrey it is really fun. I have a nineyearold girl who wanted to do sing a duet with maui, the demigod from moana. There she is. She was embarrassed that she was in her pjs. I told her most people would not recognize it. It was so much fun for her to create that experience, have an intimate relationship with the characters. At smule, we believe there is an opportunity to allow people to engage more with music rather than listen to it. Michael do you think you have a lot of other companies that you can license their music and grow this business . Jeffrey i do. If you look at the roster of billboard artists using smule, it is not a small list. Ed sheeran, demi lovato i think what these artists are realizing is it is a nice complement to the professional streaming to have a social network for music where you can engage more directly with your fans. What we are doing streaming and engaging the market itself gets bigger. That is why we are partnering with tencent, partnering with apple. With apple, we will launch of the original version along with the professional versions and cross promote and we will see bigger engagement with that artists across networks. Emily i am setting a date for a duet. Jeffrey smith, thank you so much for stopping by. Michael wolf, always great to have you here on the show. My guest host. Coming up, were looking back at some of our best conversations in 2017. We will hear from the former softbank president on why we are only in the early stages of Artificial Intelligence. This is bloomberg. Emily softbanks massive sorry softbanks massive fund is adding a fintech start up to its portfolio. It is betting it can overhaul the Home Insurance industry by leaving a 120 million round in new york. The company uses Artificial Intelligence to minimize paperwork and speed up the claims process for renters and homeowners. And as we wind down 2017, we are taking a look back at some of the biggest interviews of the year. We sat down with former softbank president nikesh arora on studio 1. 0 back in august. I started about asking about the current state of Artificial Intelligence and who was ahead in this competitive landscape. Nikesh i think the ai conversation is clear. I think we are in the early days of ai. A lot of areas where you want to apply ai, we dont have good data. It will be garbage in, garbage out. The technical horse power exists, but to apply it, we have to be smart about collecting and utilizing data. Emily do you think elon musks doomsday scenario is overblown . Or irresponsible, as Mark Zuckerberg says . Nikesh i love elon. I think he is one of the most interesting tech visionaries we have. We need people like him to have these conversations, but i think he might be a little early on his production. On his prediction. Emily what about self driving cars, which tesla is working on, google, apple . What happens there . Nikesh i think it will be a while before we see a large proliferation of self driving cars around us. I think the economics, the regulation, the retooling required to get this to happen at scale is far, far away. I think we have not thought about the ownership models and the societal problems it will cause, or how do you park these cars . Where do you put them . We may see people who do closed loops tests, that can happen in short order. But largescale deployment and having an impact on the rental business and why failing business is further away. Emily should uber and lyft, google and apple, should all of these companies be working on self driving cars . Nikesh i dont think the ride hailing businesses should be worried about making their own self driving cars at this point in time. Emily why not . Nikesh i think its early. I think the ride hailing industry has not settled down. We have not quite figured out where the industry is going to stabilize. I think they have lots and lots of work to do in the logistics, in the way they move cars from one place to another. They are very early in their evolution. So i think if they worry about operating excellence in their car business, they might be better off. There is lots of Tech Companies working on self driving cars. I think a Partnership Approach might be better than trying to do with themselves. To do it themselves. Emily i know you spent a lot of time thinking about the ride hailing business. At softbank, you put a massive debt on one. Nikesh we had long conversations about ride hailing. We were very impressed by the uber model at that point in time. We felt softbank would be better served investing in some of the other players. So we invested in india very early. Very early in southeast asia. We also partner in tencent and alibaba. Subsequently since i left softbank, they have doubled down on many of those bets. I think when you can find an industry where you feel that somebody has developed a product or service from which there is no going back, so it is here to stay, it is a great place to be. But when things go from a nice to have to a musthave in your life, you realize this is a winning scenario. You understand this is going to get more and more popular over time. I think it is clear in china that didi is kind of the only player. I think you can see it where they keep executing well, this is a huge opportunity for them. It also plays into the needs of the country where you dont want to have car ownership. You want more green cars. It is easier to take large players and get them to work with the government. Emily uber has pulled out of china and russia. Do you see that making those same decisions in india, southeast asia, in brazil . Nikesh i believe it is possible for two players to coexist in a market and coexist happily. But i think that requires the markets to rationalize and stabilize. The are Many Industries where they coexist. The telecom services. They are competing every day, but some of them actually make lots and lots of money. Like the cable industry. I think this is a very large market. Im sure they can. Can they go it alone . I think they probably could. Emily do you see that with uber and lyft in the u. S. , that this is a twocompany market . Nikesh as of now it is. Emily does that continue . Nikesh it is hard to tell but i think it will continue for some time. There are so many different conversations and moves going on in the market that it is hard to call where it will settle down and stabilize. Emily part of my conversation there with former softbank president nikesh arora. That does it for todays show. Thank you for watching. We will be back tomorrow. This is bloomberg. Cannot live without it. So if you cant live without it. Why arent you using this guy . It makes your wifi awesomely fast. No. Still nope. Now were talking it gets you wifi here, here, and here. It even lets you take a time out. No no yes yes, indeed. Amazing speed, coverage and control. All with an xfi gateway. Find your awesome, and change the way you wifi. Announcer the following is a paid presentation for the teeter, a natural, simple inhome solution to back pain that has helped millions of people get real relief for over 35 years. If back pain has been keeping you from enjoying an active life, if youre missing out on time with family and doing the things you love, now theres an easy way to finally get the relief you need. With teeter. Teeter offers a gentle, fullbody stretch using gravity and your own body weight to