To undermine hong kong protests. What the company say theyre doing about it. And peering into palantir. Our exclusive conversation with the ceo of text most secretive and exquisite companies. Alex karp tells us why protesters wont stop them from doing business with the Trump Administration. But first, u. S. Announced this week it would extend a limited set of exemptions that protected Rural Networks and other customers from a ban on doing business with chinas huawei. This comes as the trade war wages and with u. S. Tech feeling the heat in anticipation of tariffs. One tech ceo is taking his concerns about possible tax straight to the top, apples tim cook. A move that is apparently impair impressed President Trump. I have with everybody, but he is when you called me. That is why he is a great executive, because he called me and others do not. Others go out and higher extensive consultants. And Tim Cook Donald trump directly. Pretty good. And i would take the call to. But yeley when he calls me is tim cook. He calls me whenever theres a problem. Whenever theres a problem, he will call. Emily we spoke with our Investment Management consulting kathy cook when across the tech sector. I think this president wants u. S. Companies to succeed, so 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 right now, apple tv, were learning more about that. Apple pay, what theyre doing in health care. So i think theyre also changing the subject to bit. So as you consider where to put your money, are tariffs being factored into consideration, of apple in particular. Well tariffs ever hit apple, even others this threat. Is this something youre thinking about . Sure, we think about taxes, which is what a tariff it is. Tariffs provide incentives or disincentives. So not having a taxes better than having attacks. But we do think the Services Platform that apple is building is going to overcome a lot of this, and maybe even speed those services along. Emily so lets talk about services. Their trailers out for apple tv plus and some of the shows, where expecting to see it unveiled in november. Netflix is the gorilla in the room. Disney is come out of the service at 11 per month compared to the competition. We do not know about apples price yet. How optimistic are you about apple tv plus . Having learned that they are pouring 6 billion into the circat, which is netflix 2016,. Netflix to 14 netflix closer billion now. 16 billion. In the morning show with jennifer aniston, there a lot for that, each up so costing more than game of thrones. There a lot, content providers on the big winners here. I do think this is going to be not just a one horse race. I think people will take several services and it is problematic for cable and for traditional broadcast tv. Thinkingw much are you about the antitrust issues, the doj opening it antitrust investigation to big tech in general, the ftc looking at facebook, states looking at big tech, there could be more. Rise. We do think about that. We have pulled back on many of the big names because, partly because of this issue. We do not we think it will be litigated for years and years. Break moblong time to l into the baby bells. That ended up working out ok for investors. So it is not always a bad thing. But the legal hassles, the distractions associated with it, can be problematic for some companies. Emily so youre saying even if big tech is broken up, potentially still good for investors . Not necessarily. Sometimes companys will go to the process, like microsoft did, and nothing happened. It is just a distraction. So i would much prefer full attention on their businesses, and not on these legal considerations. But the breakup of ma bell was not a bad thing. Im not saying i would like to see this. I just do not know. Sometimes there is a solution, meaning a breakup like that. Sometimes just never resolved. So given the antitrust issues, political uncertainty, economic uncertainty, the volatility of the markets, where you put your money across tech . Platforms,n five heavily. Theyre 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. So when we talk about dna sequencing, alumina and crisper gene editing and tell you, crisper therapeutics, these stocks are not priced for the x financial growth we believe that theyre going to deliver during the next five to 10 years. With tesla, autonomous vehicles, elektra veils will first. Electric vehicles first. From one point 5 Million Units to 26 million in five years. That is and was 20 phone growth. No one is asked almost 20 fold growth. Utonomous taxi networks no one believes that is going to happen we are investing in opportunities we believe are not discounted in the marketplace at all, in the case of gene editing, shall we say. Those three company together, we are here about curing disease, are valued at only 5 billion. Apple closer to a trillion dollars. These are lifesaving companies. So we are not worried about tariffs in terms of our largest holdings. Would, ceo was kathy of ark Investment Management. Coming up, the Chinese Government attempted to undermine to protest 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 in the radio. Listen on the bloomberg gap. On bloomberg. Com, and in the u. S. On sirius xm. This is bloomberg. Emily on monday twitter revealed it has found and deleted thousands of attacks used by the government to undermine the protest and calls for political change. Facebook followed suit, saying it acted on a tip from twitter. Also finding and deleting some fake accounts. Twitter says it will no longer accept advertising from statebacked media worldwide. We took we spoke to sam sacks, China Digital economy brett at new america, and bruen who set up a task force to counter russian disinformation at the white house. And bloomberg techs sarah luber text sarah frier. There 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. Twitter saying overall, these accounts were deliberately and attempting to sow, discord in hong kong, undermining the political 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. Brett obviously, it doesnt , sound like a huge number of accounts, but an image in this Political Landscape 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 . First, 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, for a while let russia take the , heat, but clearly, they feel threatened. And i would say that 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. Samm, 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 brett, 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 very 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 those 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 that was brett bruen of the Global Situation room, sam sacks of new america and luber text sarah frier. Regulators in the European Union bloomberg technologies sarah frier. E. U. Are and the looking into facebooks Digital Currency libra, a concern seat that is not launched. European commission is investigating potential anticompetitive behavior amidst concerns facebooks crypto ambitions would unfairly shut up rivals. Luber technologies 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 an extensive distributive network of partners to help on this. 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. So 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 there ambitions lie beyond in a post privacy world, lunching assets. 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 as we speakthey are coming together to figure out if they outould they be figuring 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 . No come 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, some of the things of their own making. And frankly, some of the big manufacturers and browsers have done is to control the ability of people to bid on ads. And in the post privacy world some of the legislative things that have gone on in europe and now in the u. S. , and california. 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. It is dramatically going to change or some of these big tech players, especially facebook. 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, thats a tremendous amount of influence over what they read what they prioritize 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. Thats going to be on libra. Everything they do is going to be subject to investigations, 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. Between places. We have already had Companies Come out and make it easier to shift money from one country to the other. Send money back. Now, with things like libra, makes payments much less frictional. 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 worrying 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. If i can move money from bank to bank without having to go through mastercard or visa card change is happening at multiple , levels. Emily that was sarah frier and Alistair Mitchell of eqt ventures. Amazon is betting big on india. How the Company 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, brad stone, 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 passed laws that 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 people. Is it mostly existing workers . Are they going to be adding new people . Brad probably both. I think they are going to be 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. Either from ola or uber eats. 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 prime 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, a 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. To take on amazon. 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 chinese business, china is kind of the breadbasket for amazon. So many of those sellers on amazon. Com. They are in 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 our global breaking news network tictoc on twitter. This is bloomberg. Emily this is bloomberg technology. I am emily chang in san francisco. Last month doordash announced a new pay model, including an increase in base pay and a guarantee that tips will always be added on top of dashers earn ings. Those are door delivery folks. Joining us for a bloomberg exclusive this week, doordash ceo tony xu. Tony for things to work at doordash, it has to work for hundreds of thousands of 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 that day every day. We have been talking to dashers and third parties. Validating what we are doing. We have shifted the model, so it has been out in the wild testing, and that is why we are making sure we are doing something important correctly. Emily what are the changes . What is the new policy . Tony under this new model there is base pay, tips on top, and there will be promotional bonuses. Under this new model, every dollar that a customer tips will be extra in the dashers pockets. This means greater variability. In the old model we did take care of the dasher when there was no tip. To offset that, we are going to increase base pay across all orders. That means on average, dashers are going to 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, where is the drop off, what is the amount paid for the delivery up front. Emily you have others telling Business Insider that nothing has changed. What is your response to that . Tony we have been talking to dashers and we have been 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 had to make sure that as we shift a new model, that we would constantly do it in concert with consumers and dashers. And that is exactly how the rollout will happen. It is already rolled out and we will be rolling out more improvements in the future. Emily i know 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 nba dasher or work for uber eats . Just like as you are a lift or uber driver. Some of these workers say they are making like eight dollars an hour. Is that sustainable for them and for you when you are trying to raise their pay . Like how do you make this model actually work longterm . Tony yeah 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, dashers on the platform earned 17. 50 an hour. There is a lot we have to do for these workers. For example it is not just about a. That is about pay. That is a critical ingredient. Doordash was the first Food Delivery Service to offer insurance. There is not an opt in. We will make sure they have it. It is free of charge area we have a Community Council that takes in everything. 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 some acquisitions. Reports this week you bought a selfdriving Car Technology company, scotty lab. What is the vision there . I mean, are we going to 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, real problems for consumers, merchants, and dashers, and were looking at how technology can enhance a dasher, enhance a merchant in order to offer a better experience for customers. We dont have any news to share today about some of the emily but you did buy a selfdriving car company . Tony that we have been working on, but 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 doordash platform . Tony we are very excited about caviar. It is a service you may have used. To start, it is always 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. We are very excited to onboard those restaurants. Caviar also plays in different geographies than doordash, and we think that is a nice complement. Door started in the suburbs, caviars 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 have known the team for a few years now and we are excited to be partners 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 i think, you know, 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 really about 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, ceo of doordash. Coming up, peering into palantir. Our pull back the curtain on one of the most secretive companies in tech. Our interview with alex karp. Another thing with huawei the , u. S. Using sanctions for another 90 days. This is bloomberg. Emily palantir, it is one of the most secretive and Controversial Companies in Silicon Valley. The Data Analytics firm has come under fire for its work the u. S. Government. Just last week protesters picketed their headquarters, describing it as a dirty data company. Bloombergs max chafkin got a look into palantirs express response to the conversation with ceo alex karp. Alex we went from being a Small Company to one that powers most of the west in security. There are really important questions. Under what conditions can you use the software who can be , surveilled, how has the surveillance happened, and what is the consequence . I believe every one of those has to be decided by society in and in open debate and the enforcement has to be clear and transparent. I do not believe these questions should be decided in Silicon Valley by a number of engineers at large platform companies. So for me the question is, these are really serious consequential questions that will affect all certificate a very way significant way 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 . What is the execution . Which by the way dont work and under what conditions . We have a view that in societies where there is a functioning democracy, checks and balances enforced by a functioning judiciary, we have provided the software and will continue to provide the software. That is a radical position in Silicon Valley. We were unpopular when we started palantir. We were unpopular when we financed in Silicon Valley. We were unpopular we built palantir and we are still highly controversial and unpopular in Silicon Valley because we have a differentiated view from our colleagues in Silicon Valley. Famously backed off a 10 Million Contract with the department of defense amid you are basically saying not going to happen at palantir. Colorjust to add a little to this discussion many people , believe i happen to share this belief 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 its precursor machine , learning. It is a very radical decision to say you will not help the u. S. On this. Now i believe it is every right of google and their engineers to make a decision. I believe that however that they should not be making this decision. I dont think any other Consumer Internet should be making this decision. U. S. Legislators and voters should make these decisions. De facto google and other companies are deciding what the role and stature of the u. S. Will be in the present and in the future. I think many people including veryf in this country are uncomfortable with the idea that google and other companies will define the winners and losers today, tomorrow, and the day after. Now if that is your position, if you think that these small number of People Living on an island that seems to be devoid norms of the cultural that the rest of us tend to share, should make these decisions, that is a radical position you have to bring to the American People and explain why you are making these decisions. At volunteer we have a controversial position that makes us unpopular. We at palantir believe that those decisions should be made by a u. S. With the switcher, representatives and by the court legislature, representatives and by the courts. Max in other words, palantir will work with either government whether it is the Trump Administration . Alex we have worked with three administrations. As long as the dish areas putting checks and balances, as long as people work within accordance with law. I think some of these laws should be changed. As an individual i grew up in a , progressive family and got a phd in what could amount to progressive german thoughts and living my life id the most progressive part of the world. I believe there are checks and balances. Our legal system is way too brutal and we need to have a discussion about that. I dont believe the brutality should be adjudicated in a tiny island of on which people live that have very different ideas about how the world should work than the majority of our citizens. Max you know another person who , has made a similar critique is peter thiel, cofounder of palantir, investor. There has been a suggestion that peter thiels closeness to the Trump Administration has somehow benefited palantir. I am curious what you say to that, what is your response. Alex what is true is 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 relationship between peter and this administration has helped our company in any material way especially given the fact that i have clearly been quite obviously and more publicly than i wanted a critic of this administration. By the way as a matter of fact, it takes 10 years to build the kind of Customer Base we have built. Most of that Customer Base was built under the obama administration. I dont see any material evidence for this and quite frankly i just view the claim as ludicrous. Max have there been protests inside of palantir . We have seen people from outside of your organization protesting in front of your office. What about your employees . Alex we at palantir hire people who are critical thinkers. We avoid hiring people who will look at a complex issue and see a lack of complexity. There is almost no one at palantir and not just in the context of homeland security, in the context of our software being used to help war fighters. These are very complex issues. What does it mean to provide Data Protection . You know, the success of thattir largely came down people look at issues like data security, civil liberties, transferring data in a classified environment, making data platforms work where there is high latency making data , platforms work where allies are sharing subsets of data, and we 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 palantir ceo alex karp. Coming up apple is just weeks , away from revamping its most popular products. We will bring you details and what to expect from the iphone maker next. This is bloomberg. Emily more now on our coverage of the u. S. China trade dispute. On monday u. S. Commerce secretary wilbur ross will deliver a limited set of exemptions to be granted. The extension will last for another 90 days. Ross explained how Telecom Companies in the u. S. Are dependent on huawei so a 90 day reprieve seemed appropriate. What this does not address as larger security concerns, and also doesnt answer the bigger question of whether u. S. Chip companies and other suppliers will be able to sell parts to china. To discuss we spoke with mark gurman and a China Technology fellow at new america. Mark the u. S. Is an important market for any Technology Player who wants to be relevant. In order to be relevant, you cant just be situated in one area. Apple goes far beyond the united states, and huaweis ambitions china andfar beyond india and the asiapacific. It actually proves at this how point vital the networking giant business is across the world and for the company and for other u. S. Companies. This issue like some of the others the administration is pointing to, there is a point at it starts hurting the u. S. Emily it has become almost impossible to separate huawei from the trade war and in the meantime china has said they are going to prevent certain u. S. Companies or Foreign Companies from doing business in china as well. In the Bigger Picture this has been happening for u. S. Companies in china for a long time. Cue facebook and twitter which we were talking about earlier which have not been able to operate in china for almost a decade or more. You know, how do all of these pieces sort of 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. And so i think extending the temporary and general licenses buys the administration more time to figure out how to square the circle on something that frankly doesnt work. On the question of Market Access for u. S. Firms in china, this has been a long issue. And i would say that 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 frankly it is not, and it is not going to work. Emily meantime late friday, we had a surprise tweet from the president saying, having dinner tonight with tim cook of apple. They will be spending vast sums of money in the u. S. Great then after that dinner with tim cook the president told , reporters some of what they had discussed and that tim cook was making an argument that the tariffs give samsung an n 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 . I guess the bigger question is, 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 trump 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. And that means being able to have easy access to selling products and importing components. You have the tariff situation hitting on september 1 and december 15, and cook needs to do everything to avoid this. He went to the level of saying we are an american company, and these tariffs are going to put us at a disadvantage to a south korean company, a chief competitor. 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 they are seeing on their devices are quite higher than what samsung is seeing on its products. Theres a way to sort of meet in the middle. Apple is probably 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 of new america and bloomberg techs mark gurman. Apple is getting ready to unveil a new basketful of products. Among them, three new iphones, upgrades to the ipad and its first new laptop in years. The main feature of what is called the pro iphone is a new camera system that can capture ultra wide angles and videos. Joining us now are julie and bob, reporting on 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 because it makes a big difference. That is one of the challenges smart cameras to get everybody in the shot. So people will like it, but it is not enough. Even the other things they are doing to get people excited. The thing that actually i am most interested in is this notion of shatterproof. People have been working on improving the rigidity of the displays, because how many people do you see have 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 about a year behind the rest of the market when it comes to technology. They will not have 5g until next year, they 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 right, that is one thing these phones wont have, which is 5g. Bob exactly. Emily julie, you know, what is your analysis on how many people will buy these new phones with, to be fair, exciting upgrades, not a big Design Change . But as the market is slowing down . Julie so not to be the nerd, but i think the camera is exciting. Cameras and media, they sell phones, so i think consumers are going to be pretty excited about this. I am excited about enhancing the transition for this being a device where i consume media to a device where i also 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 puts, it begins to set the stage for future experiences on smartphones that are much more immersive. Emily so bob, it is not just phones being unveiled. We have a refreshed ipad pro, a new entrylevel ipad, new versions of the apple watch, we will see what else. But obviously apple has been working to build out its service s 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 got to spread the wealth, so to speak, around different devices. They are giving more love lately to the mac, which is great. I think it is great they have this new macbook coming out. The ipads are going to be incremental beings. Apple watches, more incremental. The story i am sure they will tell when they do their event in the fall will be the new combination of the hardware with the services. Im sure we will learn more about the services and how they tie in. They are going to want to make it hook better on apple hardware than it does on other hardware platforms, so that will be interesting to see them tell that story. But you know 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 so again, being the engineer here, these are like really 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, i think they are doing a lot to create a platform that will go well beyond Media Consumption and home control. They are really setting the stage to become a platform for health care, education, financial services, commerce, and other categories for consumers so i am absolutely 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 for this edition of the best of bloomberg technology. We will bring you all the latest in tech throughout the week. Tune in every day, 5 00 p. M. New york, 2 00 p. M. San francisco. Bloomberg technology is streaming on twitter. Check us out technology and be sure to follow tictoc on twitter. This is bloomberg. From the 5am wakers, to the 6am sleepers. Everyone uses their phone differently and in different places. Thats why Xfinity Mobile created a Wireless Network that auto connects you to millions of secure wifi hot spots. And the best lte everywhere else. Xfinity mobile is a different kind of Wireless Network designed to save you money. Save up to 400 a year on your wireless bill. Plus get 250 back when you buy an eligible phone. Click, call or visit a store today. Paul i am paul allen in sydney. Shery i am shery ahn. Im selina wang. We are counting down to asias major market open. Paul the top stories we are covering, regrets, he has a few. The white house said President Trump wishes he had hit china with higher start tariffs. Jay powell said global trade is the most important issue