Another 90 days, but President Trump says he is not quite ready for a trade deal. We will have the week in trade tensions. Plus, fake out. Twitter and facebook say they have proof of fake accounts backed by the Chinese Government meant to undermine hong kong protests. What the Companies Say they are doing about it. And peering into palantir. Our exclusive conversation with the ceo of one of techs most secretive companies. Alex karp tells us why protesters wont stop them from doing business with the Trump Administration. But first, the u. S. Announced they will extend a limited set of exemptions that have protected Rural Networks and other customers from doing business with huawei. This comes as the trade war rages on with the u. S. One tech ceo is taking his concerns about the possible tax straight to the top, apples tim cook, a move that has impressed President Trump. Pres. Trump he is the one that calls me. Thats why hes a great executive. He calls me and others dont. Others go out and hire very expensive consultants, and tim cook calls donald trump directly. I take their calls i would take their calls but the only , one who calls me is tim cook. Whenever there is a problem, he will call. Emily we spoke to an investor across the tech sector. I think this president wants u. S. Companies to succeed, so i think at the end of the day, this is part of negotiations and just that. It will end in lower tariffs overall. That said, apple has so many interesting things going for it. Apple tv, we are learning more about that. Apple pay. What they are doing in health care. I think they are also changing the subject a bit. Emily as you consider where to put your money, are tariffs being factored into your considerations of apple in particular . Some have said tariffs will never hit apple. But is this something you are thinking about . We think about taxes, which is what a tariff is. Taxes provide incentives or disincentives. Not having a tax is better than having a tax, but we think the Services Platform that apple is building is going to overcome a lot of this and maybe even speed those services along. Emily lets talk about services. Weve got new details about apple tv plus this week. We were expecting it to be unveiled in november. There are new trailers out for some of the shows. And yet, of course, netflix is the gorilla in the room. Disney is coming out with a Service Starting at seven dollars a month, fairly cheap. We dont know for sure what apple will be priced at yet. But how optimistic are you about apple tv plus . Cathie having learned they are pouring 6 billion into the content, which is netflix circa, i think, probably 2016. Emily netflix is closer to 14 billion now. Cathie yes, yes. I think they have a good shot. Some of the shows, i know the morning show with jennifer aniston, they are paying a lot for that. Each episode costing more than game of thrones. They are paying a lot. Content providers are the big winners here. But i do think this is going to be not just a one horse race. I think people will take several services. It is problematic, though, for cable and traditional broadcast tv. Emily how much are you thinking about the antitrust issues . The doj opening an antitrust investigation into big tech in general. The ftc looking at facebook. The state looking at big tech. There could be more. Cathie we do think about that. We have pulled back on many of the names, partly because of this issue. We think it will be litigated for years and years. It took a long time to break the mom bells into the baby bells. That ended up working out ok for investors. Its not always a bad thing, but the legal hassles, the distractions associated with it, can be problematic for some companies. Emily you are saying that even if big tech is broken up, it is still potentially good for investors. Cathie not necessarily. Sometimes companies will go through the process, like microsoft did, and nothing happened. Its just a distraction. I would much prefer full attention on their businesses and not on these legal considerations. But the breakup of mall bell was not a bad thing. I am not saying i would like to see this, but i just dont know. Sometimes, theres a solution, meaning a breakup like that. Sometimes its just never resolved. Emily given the antitrust issues, the geopolitical uncertainty, the economic uncertainty, the volatility of the markets, where are you putting your money across tech . Cathie we are invested in five platforms heavily. They are all focused on exponential growth, which should overcome everything we are talking about here if we are right. That is because the cost of these technologies are falling so quickly. When we talk about sequencing, alumina, crispr gene editing, crispr therapeutics, these stocks are not priced for the exponential growth. We believe they are going to deliver during the next five to 10 years. Same thing with tesla, autonomous vehicles, electric vehicles. We think electric vehicles are going to go from 1. 5 Million Units globally last year sold to 26 million in five years. That is almost twentyfold growth. No one is expecting that. Autonomous taxi networks, nobody thinks thats going to happen. So we are investing in opportunities that we believe are not discounted in the marketplace at all. In the case of gene editing, shall we say, those three companies together, we are talking about curing disease here, are valued at only 5 billion . Apple closer to 1 trillion . These are lifesaving companies. We are not worried about tariffs in terms of our largest holdings. Emily that was cathie wood, ceo of ark investment management. Coming up, the Chinese Government has attempted to undermine protests in hong kong by backing fake accounts on twitter and facebook. How social Media Companies are cracking down, next. And if you like bloomberg news, check us out on the radio and in the u. S. On sirius xm. This is bloomberg. Emily twitter revealed it has found and deleted thousands of attacks used by the government to undermine the protest and calls for clinical change. Facebook followed suit, saying it acted on a tip from twitter. Twitter says it will no longer accept advertising from statebacked media worldwide. We spoke to the title the China Digital economy fellow at new america, and the president of the Global Situation room to set up the first task force to counter russian disinformation, and bloomberg techs sarah frier. Sarah they are finding these coordinated disinformation efforts that are trying to discredit the protesters, calling them violent, saying what they are doing is maybe backed by western resources, just trying to cause tension within the group, which is similar to the tactics we have seen from russia in the u. S. Emily twitter says it kicked off 936 accounts. Facebook, five fake accounts, seven pages, three groups. We have statements from both companies. They said, overall, these accounts were deliberately and specifically attempting to so political discord in hong kong, undermining the position of the protest movement on the ground. Facebook saying, although the people behind this activity attempted to conceal their identities, our investigation found links to individuals associated with the Chinese Government. Twitter said the same. Obviously, it doesnt sound like a huge number of accounts, but an image can go a long way and have an impact on the world. What is your reaction to this, given the work you did with russia and your experience with International Media crises . China has been building over the last several years capabilities to influence domestic, regional conversations around sensitive topics. What has happened over the last several days, based on the information facebook and twitter uncovered, they have chosen to weaponize those capabilities. Many of us watching this space felt like china would hold back on some of those capabilities, let russia take the heat, but clearly, they feel threatened. Five Facebook Accounts they have not yet even begun to scratch the surface of where china, supporters that are backed by china, are trying to influence these debates. Emily you are looking at some of these posts that they are saying were backed by the Chinese Government. It is not necessarily surprising, given the army of internet mediators behind the scenes in china that we have reported on for many years, but there is some irony that facebook and twitter are blocked in mainland china. They are not blocked in hong kong. What is your take . This is classic Chinese State propaganda machinery. The Chinese Government knows that they need to influence the International Perception of what is going on, so they are going to where the conversation is taking place, facebook and twitter. Emily given the power that you are indicating the Chinese Government has, and the levers that they could pull, what are the longerterm dangers of this, or longerterm threats of this, given that the u. S. Is going into another president ial election . Brett quite significant. As i said, the expectation many of us had was that china was going to wait and continue to develop and test some of these capabilities. Many of them are out in public. We see on the street corners the china daily paper. We also have on television the cgtv. Yet, there is, behind all that, a wellarticulated strategy and one that china has chosen in this instance to activate. What concerns me is, if it is activated not only on hong kong, perhaps on other issues the south china sea, taiwan, let alone global issues it would be devastating. China has capabilities that far surpass that of russia. They are able to combine not only this information capability, but influence capabilities with the aid they give, with their trade and economic portfolio, paired with information operations, would be much more devastating both to markets as well as political conversations should they choose to go down that path. Emily regulars are looking into facebooks Digital Currency libra, a currency that has not even launched yet. According to a document, the European Commission is investigating potential anticompetitive behavior amidst concerns facebooks crypto ambitions would unfairly shut up rivals. Sarah frier joined us again with a venture partner to discuss. Sarah they are very concerned that, reasonably so, that if the Company Controls this currency that could rival the u. S. Dollar, that is way too much power to have. What facebook has said, this is not just our project. This is the project of all of our partners, there is a dense, distributed network. Emily some of those partners have kind of backed away. Sarah or refused to raise their hand and say this is our problem too. They could come out there and say yes, we stand behind facebook, but facebook gets all the recognition for being innovative and creating this. There is a little bit of tension going on behind the scenes. It is interesting from three angles. I think the first angle, from facebooks point of view, it shows the extent moving into payments is something they have talked about for a long time. This is a very ambitious move and signals where they want to go. The second thing is that it shows that alternative currencies have come to stay. This is no longer something for the future. Facebook has planted a flag and is being the leading market. But they are not going in alone. Not only do they have to deal with the concerns of governments, but they have to deal with those governments own Central Banks. They are coming together to figure out if they should be trading their own alternative currency. Then they are going up against Technology Companies coming up with their own version. We have invested in one called token x. That has been very successful. It is going to be a very crowded world despite the size of facebooks user community. Emily lets take a look at the bigger picture. Youve got already the doj investigating big tech for antitrust. You have the fcc investigating facebook over antitrust. You have state attorneys general looking into big tech as well, and facebook decides to unveil libra. Do you think they made a major miscalculation in trying to do this now . I think they have to do it. If they didnt do it now, somebody else would do it. I think the scale of their ambition is very high. They cannot control some of those timings, but i also think with whats going on in the privacy world, frankly, some of the big manufacturers and browsers have done is to control the ability of people to bid on ads. They have to. What we are seeing is a shift from the tradition over the last 10 years of selling access to people for advertisers. And if they dont move into this area, the Revenue Streams they have relied on will go away. Emily when the eu says they are concerned about anticompetitive behavior in regards to cryptocurrency, what are they actually worried about given libra doesnt even exist . Sarah they are worried about facebook being this massive global power. We have seen that if you have a product that 2. 7 billion people use one of the facebook properties, thats a tremendous amount of influence over what they read and how they interact. We have seen scrutiny from all angles, and we are going to continue to because facebook is still growing. There are not a dying brand or dying company by any stretch. Now that regular readers regulators understand that power, it is going to come down on them on the privacy, the election angle, the propaganda angle. Everything they do is going to be subject to investigations, hearings, and extra scrutiny. Emily alastair, your firm is invested in alternatives to libra. Explain what the competition is. The competition comes from multiple angles, but they are saying in a world where traditional currencies go away or become less popular, we want alternatives to the way we transfer money. The obvious place that that starts is in foreign currency. We have already had Companies Come out and make it easier to shift money from one country to the other. Now, with things like libra, already having Companies Come out and make it easier to ship. That is something where the countries get very concerned because you manage your own currency. It is a stable coin. Then you have banks coming out to create their own versions, using technologies from people like token x, and then you get the Central Banks themselves worry about it. All this is pointing to a future where currencies will be much more fragmented and the way we move money will change. That is not just things like libra, but also things like open banking in europe, which has been a huge change. It is the Credit Card Companies who are petrified with what that will do. Change is happening at multiple levels. Emily that was sarah frier and Alistair Mitchell of eqt ventures. Amazon is betting big on india. The company is going headtohead with walmart in the emerging retail market. This is bloomberg. Emily amazon is doubling down on india. The ecommerce giant has opened its largest campus in the south indian city of hyderabad. It battles walmart for one of the Fastest Growing retail markets. Walmart spent 60 billion last year on acquiring indian online retailer flipcart. In comparison, jeff has pledged 5. 5 billion on operations in the country. Our Senior Editor of Global Technology joined us to discuss. Amazon has over 60,000 employees there, a third are in hyderabad. So already a big presence in housing them altogether is probably a smart move. The bigger thing is why they are making such a big deal about this, it is one office building. Theyve been trying to grow inside india in an unfavorable Regulatory Environment for five years. Last december, the Modi Government made it difficult for them to run their conventional retail website in india. They have to behave more like a marketplace for other sellers, so, you know, putting a big stake in the ground, some shovels in the ground literally, helping with modis economic development. Saying we are hiring people in india is probably a smart political move. Emily the Biggest Office for amazon in seattle holds 5000. This will hold 15,000. Is it mostly existing workers . Are they going to be adding new people . Brad probably both. I think they are growing in india quite fast, not just engineers that service other parts of india, but trying to grow that ecommerce business. My colleague in india has reported that amazon is looking at potentially acquiring a food delivery business. Theyve been looking at making investments in lots of brick and mortar chains, so india can be the kind of lab for the rest of amazon, and they also need to hire workers there to help them grow in the country. Emily how is amazon taking on walmart in india . Who is winning . Thats a good question. Last i saw, they were neck and neck. Flipkart, the Company Walmart acquired for 16 billion last year, had a head start. There was some kind of internal chaos. Walmart came and bought them. The founders have left. Flipkart is doing pretty well. Amazon prime is taking off. They dont release numbers, but they say membership is doubling. Look, they are probably both doing well because this is a rapidly expanding market. It is a country of 1. 3 billion people, rising middle class, Internet Penetration going up, so it is kind of a rising tide lifting all boats. Emily walmart offering a service with free streaming. Bollywood in india is huge. Talk about that strategy. Brad amazon has shown that prime video brings people into the amazon ecosystem and gets them ordering. Walmart cannot necessarily do that in the u. S. , where you have so many players spending a lot of money, but the india streaming market is a little less developed. They are taking a different approach. It is free, just, i believe, in flipkarts mobile app. Youve got to go discover it in a dropdown menu. But flipkart thinks this is a good way to cement loyalty of its users. And, particularly, those second and third tier cities or maybe the wealthier urban customer already has a prime or netflix subscription, walmart is finding ways to expand in those smaller cities, and video is a way to bring them into the flipkart ecosystem. Emily we have been talking a lot about the trade dispute and the threat to big tech companies. Amazon does not have huge exposure to china, but in the last few weeks, we have seen walmart and target report strong results, weve seen alibaba report strong results. I wonder if there is something about ecommerce that is more immune to geopolitical uncertainties that we are facing now and that other Companies Might be facing. Brad i would say amazon does have some exposure. Even though they dont have a big business, china is kind of the breadbasket for amazon. So many of those sellers on amazon sell from shenzhen, in the factories, making products for sale, and some of those companies will get hit by the tariffs as they are put in place by the Trump Administration. India, you would think, might be a recipient of some of the capital that is leaving china, but the political environment there has been unstable. I mentioned the ecommerce rules that went into effect last year. Modi got reelected in may. I think the political environment may be a little more stable now, so we will see how the trade war will impact india, but it has not historically been the greatest place for foreign investment. Its very bureaucratic. Emily that was bloomberg techs Senior Executive editor brad stone. Coming up, doordash is changing its controversial tip policy. The ceo explains what is different, next. And we are Live Streaming on twitter. Find us there technology. Be sure to follow tictoc on twitter. This is bloomberg. That moment you walk in the office and people are wearing the same gear, you feel a sense of connectiveness and belonging right away. Our shirts from custom ink help bring us together. [announcer] custom ink has hundreds of products to help you look and feel like a team. Get started today at customink. Com emily this is bloomberg technology. I am emily chang in san francisco. Last month, doordash promised to change its tipping policy following an outcry claiming the company was withholding tips. Now it is sharing the details of these changes. Doordash announced a new pay model, including an increase in base pay and the guaranteed tips will always be added to earnings. Doordash announced a new pay model, including an increase in base pay and the guaranteed tips will always be added to earnings. This is after facing criticism from for a policy that allowed them to subsidize workers pay from tip money. Joining us is the ceo, tony xu. Tony for things to work and or come it has to work for hundreds of thousands of consumers, merchants and dashers. This is a very consequential change and something we always work on. The day that i announced we would be making changes about a month ago, teams worked every day. We have been talking to dashers and third parties. Validating what we are doing. We have shipped the model for over a week, so it has been out in the wild, testing. That is why we are taking the time to make sure were doing something correctly. Emily what are the changes . What is the new policy . Tony there is base pay, tips on top and promotional bonuses. Under this new model, every dollar a customer tips will be extra in the dashers pockets. That means there will be greater variability. In the old model, we did take care of the dasher when there was no tip. In order to offset that, we will increase base pay across all orders. That means on average, dashers will make more money in this new model and we will keep the transparency we have always had which means we will show every piece of information about an order, wheres the restaurant, drop off, pay for delivery up front. Emily you have others telling Business Insider that nothing has changed. What is your response . Tony we have been talking to dashers and shipping this new model for a long time. This change was difficult. There are lots of dashers who really like the old model. They like that consistency, so we have to make sure that as we shipped a new model, we would constantly do it in concert with consumers and dashers. That is how the rollout will happen. It is already rolled out. Emily i ask you this question every time you come on, but there are continued questions about how sustainable this ondemand food delivery model can be. Can you earn a living wage for doordash or uber eats. Some of these workers say they are making eight dollars an hour. Is that sustainable for them and for you when you are trying to raise their pay . How do you make this model actually work longterm . Tony at the start, it is important to understand who these types of workers are. 80 of them have jobs, especially when they are delivering on doordash. On average they are working three hours or fewer per week. In 2018, they earned 17. 50 an hour. There is a lot we have to do for these workers. For example, its not just about pay. That is a very critical ingredient. Doordash was the first Food Delivery Service to offer insurance. We will make sure they have it and its free of charge. And we have a Committee Counsel we take into account all considerations. Its not just about the pay model but also product changes to make sure it keeps Getting Better for them. Emily meantime, you have been making acquisitions. Reports this week you bought a selfdriving Car Technology company. What is the vision there . Does that mean no dashers . Does that mean an Autonomous Car is going to bring me my food . Tony were always working on technologies that solve real problems for consumers, merchants, and dashers, and were looking at how technology can enhance a dasher or merchant in order to offer a better experience for customers. We dont have any news to share today emily but you did buy a self driving car company . Tony i have to say every day is about solving problems at the intersection of how technology and humans work together. Emily you also bought caviar, a food delivery company, from square. How will that be integrated into the existing platform . Tony we are very excited about caviar. It is a service you may have used. To start, its about adding to restaurant selection. Today, doordash has the largest breadth of selection out there and caviar is independent stores that are a bit more premium in brands. Caviar also plays in different geographies than doordash, and we think that is a nice complement. Their primary focus has been in cities like manhattan and chicago, so we are excited about that complementary focus, and we are excited about the team. We are excited to partner soon. Emily you have taken a big round of funding from softbank. How are you spending that money, and how are you growing the business slowly but surely . Tony the first thing is to remain disciplined. It is not about the money. No one ever says you have to spend it. For us, it is making sure we keep doing what is best for consumers, merchants, and dashers, and if we can work on those products, the rest will take care of itself. Emily our exclusive interview with tony xu. Peering into palantir. We pull back the curtain on one of the most secretive companies in tech. Our interview with alex karp. Plus, another lifeline for huawei. The u. S. Is easing sanctions for another 90 days. We bring you the latest next. This is bloomberg. Emily palantir is one of the most secretive companies. Cofounded by tech billionaire investor peter thiel, the firm has come under fire for its work the u. S. Government. Just last week, protesters picketed their headquarters, shouting time to cancel antir konstantinos describing it as a dirty data company. Max chafkin got a look exclusively with the ceo max karp. We went from being a Small Company to a company that powers most of the west and its key institutions including homeland security. So there are really important questions under what conditions can we use the software, who can be surveilled, how has the surveillance happened, and what is the consequence . Every single one of those has to be decided by society in and open debate and the enforcement has to be clear and transparent. That is also a software problem. I do not believe these questions should be decided in Silicon Valley by a number of engineers and large platform companies. For me, the question is these, are serious consequential questions that will affect all our lives now and in the future. Do we want a motley crew of people in Silicon Valley who build platforms deciding which institutions work, under what conditions . Which ones dont work and under what conditions . We have a view that in societies where there is a functioning democracy, meeting checks and balances enforced by a functioning judiciary, we have supplied the software and will continue to provide the software. In Silicon Valley and one that has made is unpopular. We were unpopular when we started palantir. We are still highly controversial and unpopular in Silicon Valley because we have a differentiated view from our colleagues. Max google backed off a 10 billion dollar contract with the department of defense amid you are basically saying thats not going to happen here. Alex just to add a little color, many people believe that the present and future ability to control the rule of law and its application will be determined by our ability to harness and master Artificial Intelligence and machine learning. It is a radical decision to say you will not help the u. S. On this. I believe it is every right of google and their engineers to make a decision. I believe however they should not be making this decision. U. S. Legislators and voters should make these decisions. Google and other companies are deciding what the role and stature of the u. S. Will be now and in the future. Most people including myself are very uncomfortable with the idea that google and other companies will define the winners and losers today, tomorrow, and the day after. If that is your position, if you think these small number of People Living on an island that seems to be devoid of cultural norms that we tend to share, should make these decisions, that is a radical decision. You have to explain to the American People why you are making these decisions. We have a controversial position that makes us unpopular. We at palantir believe that should be answered those decisions should be made by the representatives and the courts and that we should advocate for views that we believe. Max in other words, palantir will work with either government whether it is the Trump Administration . Alex we have worked with a with three administrations. As long as the judiciary is putting checks and balances on the implementation, as long as people are working in accordance with law. I think some of these laws should be changed. I grew up in a progressive family and got a phd in german thoughts and living, living my life and the most progressive part of the world. Europe. I believe there are checks and balances. I do think our legal system is way too brutal and we have to have a discussion. I dont believe the brutality should be adjudicated in a tiny island on which people live that have different ideas about how the world should work than the majority of our citizens. Max another person who has made a similar critique is peter thiel, palantir, investor. There has been a suggestion that his closeness to the Trump Administration has somehow benefited palantir. I am curious what you say to that, what is your response. Alex peter and i have had a long and deep friendship. I view him as a close friend, and it is true i value his opinion and he plays a role at palantir. It is ludicrous to believe a role between peter and this administration has helped our company, given the fact that i have been more publicly than i wanted a critic of this administration. It takes 10 years to build the kind of Customer Base we have built. Most of that was built under the obama administration. I dont see any material evidence for this and i think the claim is ludicrous. Max have there been protests inside of palantir . We have seen people protesting in front of your office. What about your employees . Alex we at palantir higher critical thinkers and avoid hiring people who will look at a complex issue and see a lack of complexity. There is almost no one looks at any of our employments. Not just in the context of homeland security, but our software being used to help war fighters. These are complex issues. What does it mean to provide Data Protection . Our success came down to we took issues that people think are simple like data security, civil liberties, transferring data in a classified environment, making data platforms work where allies where there is high latency, making data platforms work where allies are sharing subsets of data, and provided solutions. Palantir is housed by highly complex thinkers so we have divergent views on every issue and certainly on this issue. Emily bloombergs max chafkin with alex karp. Apple is just weeks away from revamping its most popular products. Bring you details on what to expect next. This is bloomberg. Emily more now on our coverage of the u. S. China trade dispute. On monday, wilbur ross announced a limited set of exemption that have protected World Networks and other customers from a ban on huawei. It will last for another 90 days. Ross explained how Telecom Companies are dependent on huawei so a reprieve seemed appropriate. What this does not address as is the Wider National security concerns and the bigger question as to whether u. S. Chip companies and other suppliers will be able to sell parts to china. To discuss, we spoke with mark gurman and China Digital economy fellow at new america. Mark the u. S. Is an important market for any Technology Player that wants to be relevant. To be relevant, you cannot just be situated in one area. Apple goes beyond the United States and huaweis ambitions are to go beyond asia. This is definitely hurtful for huawei and its proves the point of how vital the networking giant business is across the world and for the company and other u. S. Companies. This issue like some others is pointing to, there is a point at starts hurting the u. S. Emily it is almost impossible to separate huawei from the trade war and china has said they will prevent certain u. S. Companies or Foreign Companies from doing business in china. In the bigger picture, this has been happening for a long time, cue facebook and twitter which have not been able to operate in china for almost a decade or more. How do these pieces fit together in the broader narrative as the u. S. And china try to hammer out a deal . Samm the answer is that these pieces dont fit together. The reason is that there are competing end games for what this administration is actually trying to accomplish. You have a growing number that want to kill huawei as a company globally and significantly weaken it in china. Then you have others like trump who want to use huawei as leverage in the trade deal. You cannot have it both ways. Extending the temporary licenses buys the administration more time to figure out how to square the circle on something that doesnt work. On the question of Market Access for u. S. Firms in china, this has been a long issue. I would say it is much bigger than facebook. This is about how we create a level Playing Field when we are talking about a very complex Regulatory Environment that favors domestic companies. That is what this administration is trying to do. Is huawei the right bargaining chip to do so . I would say it is not it is not going to work. Emily late friday, we had a surprise tweet from the president saying, having dinner tonight with tim cook of apple. They will be spending lots of money in the u. S. Great after that dinner, the president told reporters some of what they had discussed and that tim cook was making an argument that the tariffs give samsung an advantage because samsung products will not be tariffed as much as apple products. What more do we know about the conversation between tim cook and President Trump . Is this likely to sway the president to not put tariffs on apple and other products . Mark tim cook has been meeting with President Trump and his administration for plenty of times since he became president , and this is not a political thing. This is a purely business meeting. It is cooks responsibility to do best by apple shareholders and his company. You have the tariff situation and tim cook needs to do everything to avoid this. He went to the level of saying that, hey, we are an American Company and this is going to put us at a disadvantage to a south korean company. One could think that is a fair argument. President trump seems to think that was a good argument by tim cook. On the other hand, apples products are very expensive. The margins are high. Theres a way to sort of meet in the middle. Apple is able to take in a 10 tariff without much of an impact on its bottom line if it is willing to suffer a little bit of a margin hit. Emily that was samm sacks and mark gurman. Apple is getting ready to unveil a new basketful of products. Among the devices, three new iphones, upgrade stipend upgrades to ipads and largest laptop in years. The main feature of what is called the pro iphone is a camera system that can capture ultra wide angle photos and videos. We caught up with a researcher analyst and tech analysis present bob odonnell on the news. Bob the wide angle camera is nice. We have seen this on other phones. Samsung and others have had this for a while. People will like it, it makes a big difference. That is one challenge with the smartphone camera, so people will like it, but it is not enough. Even the other things they are doing to get people excited. The thing i am most interested in is this notion of shatterproof. People have been working on improving the rigidity of displays, because how many people you see with broken phone screens, so having that, if it does what it implies, could be a big deal for a Certain Group of people, but again, at the end of the day, apple is a year behind the rest of the market when it comes to technology. They will not have 5g until next year, will not have the 3d camera until next year. We have seen that on other devices from other makers. This is the challenge they face this fall. Emily that is one thing these phones wont have, which is 5g. Bob exactly. Emily julie, what is your analysis on how many people will buy these new phones with, to be fair, exciting upgrades, not a big Design Change . Julie so not to be the nerd, but i think the camera is exciting. Cameras and media sell phones, so i think consumers will be excited. I am excited about enhancing the transition for this being a device where i consume media to where i create media. And in addition, the better the camera, the better the chips, the faster the network, the better the Computer Vision is, and it sets the stage for future experiences on smartphones that are much more immersive. Emily it is not just phones, we have a refreshed ipad pro, a new entrylevel ipad, versions of the apple watch, we will see what else. But obviously apple has been working to build out its service offerings. You have apple tv plus, apple arcade coming this fall, and for the first time, the iphone made up less than half . Bob lets not forget, that was a huge marker for the company. People have been concerned with the Smartphone Market slowing down, which it has been, people are extending the lifetime of all the phones they have, and so they have to spread the wealth, so to speak, around different devices. They are giving more love lately to the mac, which is great. It is great they have this new macbook coming out. The ipads, apple watches more incremental. The story i am sure they will tell when they do their event in the fall will be the new hardware with the services. Im sure we will learn more about the services and how they tie in. They will want to make it hook better on apple hardware than other hardware platforms, so that will be interesting to see them tell that story. Fundamentally, we are still in this era of apples innovation cycle that is a little bit slower than people would like to see, so that raises questions longerterm. Emily julie, would you agree . Julie again, being the engineer, these are big steps forward. If you think about the future of experiences and where we are headed, more sensors, more immersive, better Computer Vision, better speech analytics, they are doing a lot to create a platform that will go beyond Media Consumption and control, but setting the stage for a platform for health care, education, financial services, commerce, and other categories for consumers, so i am impressed by the technology and engineering and what they are setting themselves up to do here. Emily that was julie ask and bob odonnell. That does it. Tune in every day, 5 00 p. M. New york, 2 00 p. M. San francisco. We are livestreaming on twitter. Check us out and follow our global breaking news network on twitter. This is bloomberg. Francine the Intercontinental Group is one of the Biggest Hotel companies in the world. It has nearly 900,000 rooms in more than 100 countries with brands like holiday inn, crowne plaza and the intercontinental. The holiday inn in nashville hosted icons like bob dylan and prince, Martin Luther king jr. Put the finishing touches on his i have a dream speech at the willard intercontinental in washington, d. C. Today on leaders with lacqua, we meet keith barr. Chief executive of ihg. Thank you for joining us on leaders with lacqua