Company could run out of cash next month. The week that was from the tech in the crosshairs from hong kongs prodemocracy demonstrations. Now visa, mastercard all valley got from facebooks cryptocurrency group. First, our top story. There has been a breakthrough in u. S. China trade talks. On friday, President Trump said we have come to a substantial phase one deal. Hes not part of the discussions, but what is not part is huawei. I want to bring in sarah mcgregor. What, talk to me broadly, did we learn about phase one of the deal today . Sarah what we do know about this deal which trump describes as substantial and a lot of people are parsing through the details the see if that is the case. Row we know is the Trump Administration has said they have reached agreement with intellectual property issues. There is a currency pact inside the agreement. There is going to be agricultural purchases, up to 30 billion from china over the next couple of years. Just a few of the aspects of it. This is a phase one deal. Importantly, it is not written on paper yet. These came out in the facetoface talks happening in washington between u. S. And chinese negotiators. Over the next four to five weeks, we ask becca to expect that to get onto paper. Theres a lot of work to be done to get this deal as firm as possible. Taylor our technology audiences ears perk up when you say intellectual property, specifically around ips, what do we know from this deal . Sarah the interesting aspect is all of these details have trickled out of a press conference that trump gave with the treasury secretary, u. S. Trade representative. We dont have a lot of details. We can only get what they verbally told us. They did specify huawei is not part of this deal. There have been rumblings that perhaps these licenses for American Companies to do business again with huawei might come as an early trade deal, but the Trump Administration says that is not the case. Taylor we have a soundbite from Robert Lighthizer on huawei. Take a listen. In this agreement, we are not dealing specifically with huawei. It is not a part of this agreement, that is a separate process. Taylor we think huawei not part of phase one. Any indication it could be included in phase two or three . Sarah i think it could also be billed as something of a separate process. Perhaps they want to leave it out of the announcement today but it is something that will come down the line in the coming weeks. We have those special licenses coming up for renewal in november, mostly for rural networks. We will see what comes of that. There was mention of the press conference of looking again at these blacklisted companies, Companies Like huawei. We have the other additions this week like hikvision. I think they are not being billed as part of these trade negotiations, but perhaps there is some movement along the way. Taylor i think the question we keep asking ourselves is a partial deal better than no deal even though it is not fully comprehensive . Sarah i think a lot of american businesses right now and economists may think a partial deal is a good thing, at least for the fact that it delays the tariffs increases from 30 to 25 on a big batch of chinese goods that is scheduled to take effect next week. The next batch, the december 15 tariffs, that will hit things like apple iphones, tvs. We dont know if those tariffs have been excluded yet. The Trump Administration said that is a decision to be taken later down the line. I think the fact there is a suspension of the increase of tariffs for next week will be seen as a good thing, at least for the Global Economy and u. S. Businesses. Taylor giving me the latest on trade, sarah mcgregor. Thank you for joining me. Now, sticking with trade. We go over to apple. Shares rose to an alltime high on friday as iesrk the year marked by turmoil by the u. S. China trade deal and uncertain to mid by the iphone. A product that apple is living away from but remains very central to its business. Joining me over the phone to discuss is dan ives. Briefly, from the trade deal that we have so far today, does anything about this trade deal change your stance on apple . Dan i mean, i view this as incrementally positive. Specifically around the december 15 tariffs. That was the big worry for apple and tech investors. Right now, it looks like it will thatd or temporarily temporary reprieve may be permanent. If that happens, there will be more money for apples stock. Taylor what was included in those december tariffs that makes you so happy they are not going into effect . Dan those are really what was going to hit the heart and lungs of apple in terms of processors, smartphones for the u. S. Consumer. That would have been a 4 hit to eps if that came through. That is also across the whole tech foodchain for semiconductors as well. This was why it was such a key for the december 15 tariffs. Apple is a poster child for the u. S. China trade war. Any positive is a positive for apple, positive for semis. Talking to tech investors the whole day, they are starting to pop the champagne relative to the dark days we saw two weeks ago on u. S. China trade war. Taylor what was the biggest question from those tech investors today . Dan the biggest question is whats happening today, how does that impact the december 15 tariffs . That is the key did not just apple but the whole tech ecosystem. In terms of reading the tea leaves, that is something that would be pushed at a minimum or potentially off the table. That right now, many tech yeow light to a green light in terms of owning tech stocks because of u. S. China. Taylor any readthrough from apple to the apple suppliers . Can you quantify a boost to the bottom line for apple and some of those suppliers . Dan in our opinion, this is something that, its probably what i view as a 3 to 4 to quantify it improvement to what we can see from a cost perspective. To suppliers, that would be a cut of 3 to 4 demand that will not happen. You see that through its suppliers, semis, apple. That is a massive Ripple Effect which is a major feather in the cap for any techniqu investor. Taylor is it too soon to say apple no longer needs to look at manufacturing outside of china . We talked about them shifting the supply chains to other regions. Would you say they are too tentative to firmly stop those moves and keep it in china . Soon tohink it is too call any major changes. They are still looking at india, potentially over the longterm. This definitely does change the game, because for apple, you go back six months ago, this was kind of in the red zone in terms of the worries, in terms of china. Now that they looks like there could be a phase one deal or other deals coming forward, this could be a situation where right now i dont see anything majorly changing for apple when it comes to china. They could double down when it comes to production as well and that is something we need to see moving forward. Taylor before we got all of this news, a potential trade resolution, you came out with a call that moved the stock near record highs. Moved the price to 265. Does anything about this deal boost that price target higher than 265 given the new information . When the facts change, the fundamental change. Dan great question. To 20ow, about a 15 overhang on u. S. Stocks because of the u. S. China black cloud. If that is removed, that is something that could incrementally add value. You look at what is happening with iphone 11 demand in china, 20 below expectations. I could tell you right now, cook, with his back against the wall at apple, they are going to come out swinging later this month and earnings. I think bears will have to go back into their caves in hibernation mode. Taylor coming out swinging. That was dan ives, thank you for joining me all things apple and trade. Ebay, visa and mastercard abandoning facebooks cryptocurrency project libra. All were members of the original offending group of tech and Financing Companies that made up the libra association. Paypal announced it was leaving last week. The remaining members are due to meet in geneva monday a charter agreement. Facebook shares paired some of the days gain. We will have more on the access from libra and the challenges facing facebook later in the show. Dont worry, those of the blue angels flying by practicing for fleet week. Coming up, wework is running out of money but lenders could be coming to the rescue. What this mean for the trouble startups future, next. This is bloomberg. Taylor i want to take a look at President Trump speaking to reporters. Lets listen in. Tremendous benefit to our farmers, technology, Banking Industry, financial services. By now, you know pretty much we have had a very, very good couple of days with china. It looks like that deal is very much on its way. It will be the largest deal ever made for farmers. We are talking about a 40 billion to 50 billion purchase, and other things. An incredible deal for farmers. I will have to go out and buy more land and by bigger tractors. We hopefully will get that done pretty quickly. [indiscernible] pres. Trump we will take a look at it. We will take a look at it. [indiscernible] pres. Trump this will go a long time into the future. This is a very big buy. Its two years but it will go a long time into the future. The biggest deal made was 16 billion and this could be 50 billion. This is many times more, many times bigger than any deal made for the farmers. Say it. [indiscernible] pres. Trump they will keep their word. China will keep their word. They want to make the deal. They will keep their word. [indiscernible] pres. Trump i have not spoken to rudy. I spoke to him yesterday. Hes a very good attorney and he has been my attorney. [indiscernible] pres. Trump we are looking at it. We did not discuss that, huawei. We didnt discuss it having to do with phase one. Twoase one of a phase or phase three deal. We have not discussed huawei. Basically, the status will remain the same. [indiscernible] she may be a wonderful woman. I dont know her, but she very much may be a wonderful woman. If you remember the phone call i had with the president , the new president , he did not speak favorably. But, i just dont know her. She may be a wonderful woman. [indiscernible] pres. Trump im not going to talk about it now because we are just starting the negotiation of phase two. Actually, it will begin as soon as we are finished papering phase one. Phase one is one of the biggest deals ever made an unbelievable for technology, unbelievable for the Banking Industry and services, and for the farmers, there has never been anything like it. We are going to see what happens. We are going to be discussing that in phase two. Who . [indiscernible] pres. Trump the whistleblower has been very inaccurate. The whistleblower reported a totally different conversation that i had. I released the transcript of my conversation, an exact transcript. The whistleblower did not say that. The whistleblower is either saying untruths, ok . Or he didnt know or is making up a story, like schiff. When schiff read what i actually said, he said i cannot say this because he would be wrong. He made up a live. It is a fraudulent story. You know that, you know that better than anybody. He went out and made up a fraudulent story. He went to people in the u. S. Congress and the American People and reported a fraudulent story. Schiff, something should happen to schiff for that. Why should schiff be given immunity when he goes out and tells a story about the president of the United States and it bears no relationship. Every word was different. I tell you what, i cant believe that a congressman could be that dishonest taylor that was President Trump talking to reporters as he departed the white house en route to joint base andrews. This is bloomberg technology. We will have more next. This is bloomberg. Taylor wework is looking to make sure it has cash to keep going. The Office Sharing startup is in talks with jp morgan and others on a 5 billion debt package, according to sources. This comes after what was a highly anticipated ipo and that fizzled out following questions about the companys valuation and governance. Wework needs new financing before the end of november to avoid running out of money. To discuss, i want to bring in bloombergs ellen huet who has been tireless on all things wework. Talk to me about what we know about this potential deal. Ellen it is still in discussion. It could get formalized as soon as next week but could stretch out over the next week or two. Time pressure is on as our sources have been telling us. Wework needs cash, needs to line up some new infusion in cash before the end of november otherwise things will go downhill. Initially, people thought based on weworks burn rate, maybe that was going to be a time that came mid next year but it seems like it is sooner. Now that the ipo is not going to happen this year, they need an alternative source of money. Taylor any sense of what happened . We are analyst after analyst say mid 2020, they dont have to go to the data over equity markets. What happened at that timeline moved up so quickly . Ellen it is possible people all reassessing how quickly these things could change. Maybe they thought they would have more access to cash after selling off assets or the vesting from investments in those are not coming through. It is hard to know, but i think it has become clear wework is strapped. Theyre also expecting to cut a lot of jobs in the next few weeks. We had reported last week that at an all hands meeting, the new coceos and remaineing cofounder told staff to expect cuts coming in october. Taylor you mentioned selling off assets. We note they were looking to sell off a stake in wing. And then there was group about an Elementary School that they are thinking maybe does not align with our core business. What do we know about how the selloff of these stakes are going . Ellen there have been some Side Businesses wework acquired which includes meetup, conductor these are acquisitions the company has made over the years that they hope to be able to sell off. When you look at the scale of weworks losses, it is not clear to me and two other observers that some of these asset sales will make a huge dent in the amount of money that they need to figure out how to get back. I think it is unclear how that strategy will go. Wegrow is in a different case. This is a business that was started within wework, started by rebecca newman, the wife of the ceo adam neumann. She found it wegrow, an Elementary School. This was just a Side Business that wework got into that everyone looked at and thought why . Now it seems clear. They have told parents of students today that the school will no longer operate after the end of the 20192020 school year. Taylor finally, the fine print of this deal looks like it could last dealich was the they had in terms of the 5 billion loan. Any sense of how much that rate goes up on a new deal given the cash crunch they are under . Ellen im not sure. People are going to be watching very closely to see what other decisions wework makes to show it has control over its balance sheet. I think there has been a lot of skepticism around the way they handle money, the way they make decisions about finances. That will be the biggest question the new coceos have to face. How are you going to right this ship . How are you going to make sure wework is moving forward as a viable business with Flexible Office space . Taylor thank you to ellen huet. Now, i will look at how weworks space is affecting the economy. For more, i want to bring in mark vitner, wells fargo senior economist from charlotte. Mark, thank you for joining me. I loved your piece talking about the impact coast bases are having on the economy. What is your take on the longterm durability of this space and its impact on Financial Stability . Mark i listens to eric rosenkrantzs concerns. This is a new innovation. Whenever we have new innovations in real estate, they have not done all that well when a recession comes around. Coworking space has been around for a long time and i think in this particular Business Cycle, the ability of companies to try a market out and for Large Companies and established companies to open a Technology Office in charlotte or raleigh or nashville and try that market out without having to make a major capital commitment to a building or longterm lease, that adds a lot of flexibility to the economy. Is it just in time office space . That may actually help mitigate the real estate cycle. Taylor talk to me more about the risks that this type of Office Leasing has on the broader commercial real estarte market. Mark the Business Model is risky. That is probably why wework is having such problems going into the market. They may have done better if it was not this late in the Business Cycle and we did not and an inverted yield curve that a recession was around the corner. We dont, by the way. Coworking spaces account for 2 of the Office Market. Its not that large a piece. It has accounted for a larger portion of the growth of the Office Market in all the text centric cities techcentric cities. The fed is thinking tech is where the fastest growth of the economy has been. When funding begins to dry up, it will likely be hit many heart and many of the tenants are likely to run into trouble. I think thats probably close to the way things are going to play out, but i think there is a lot of established companies that are tenants too. I think they will hold on fairly well. Recessions,at, in you tend to get a lot of innovation as companies spin off divisions, cut back their workforce and people start their own businesses. Those will ultimately be customers for this coworking space. Taylor mark vitner, thank you for joining me. And coming up, leaving libra. Facebooks proposed crypto loses five potential partners. Why companies are saying no to the social network. That and more in our this week in tech, next. This is bloomberg. From the couldnt be prouders to the wait did we just winners. Everyone uses their phone differently. Thats why Xfinity Mobile lets you design your own data. Now you can share it between lines. Mix with unlimited, and switch it up at anytime so you only pay for what you need. Its 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. Call, click, or visit a store today. This is bloomberg technology. Im taylor riggs. October, the month for libra, but not a good month for facebooks cryptocurrency. Paypal has dropped out of the social Networks Crypto association and now four more Payments Companies have said no thanks. Visaiday, ebay, stripe, and mastercard all abandoned the project. It is the latest blow to the troubled efforts that has drawn criticism from lawmakers and others. To discuss, i have sarah oveaide in new york. Joining me from los angeles, michael papner. Let me start with you. What is your take on all of these companies abandoning facebook . How much more of our hurdle is this for facebook . Michael i think it is insurmountable. I dont think facebook could do this by itself. The only thing they bring to the table, and it is a big thing, is a couple of billion users. A billion active users. Itsously, facebook thanks relationship with its user base is such it could crosssell them some access to a currency. But without the Banking System behind them, without the payments processors behind them, i dont think they could pull it off. I dont think they are capable of building up that infrastructure themselves. If it is not accepted at places where visa and mastercard is accepted, it is just not going to work. Short of a big bank stepping in, jp morgan saying we are all in and we are going to support this no matter what, i dont think this will ever happen. Taylor shira, should facebook abandon the project were continue to fight . Shira the problem with libra from the very beginning was it was both a very ambitious idea and entirely vague and halfbaked. I almost wonder if facebook really anticipated moving forward with this. They released this very vague white paper. They created this association based in switzerland that did not seem to actually exist. So, i wonder if facebook from the beginning really i just dont know if they intended to move forward with this project at all, to be honest with you. Like michael said, i am not sure they can. Taylor was this ever a good idea . This was a side project. Did not contribute significantly to revenue. Why did they start it . Michael you could ask that question about any of the Big Tech Companies that wrenches up into something that is not their core business. Why is google in devices . The answer is they think it will benefit their core business. Facebook is doing this because they have this billion daily active user base and they think they can get those people to conduct commerce on its site. They want to keep them captive. They thought the cryptocurrency would facilitate that activity. Im not so sure anyone is on facebook to transact business. We are on facebook to see our High School Friends kids, see our kids getting married and sharing those pictures with our friends. No, i think they were stretching way beyond their capacity. I think oculus was a stretch, yet i see how maybe we want to have Virtual Reality with our friends. I dont see why we need currency to look at pictures of my high school classmates. Taylor shira, i want to transition and go over to another story we were following, all about big tech and privacy. Just this week, twitter and facebook, as you wrote about in your column, getting caught using peoples phone numbers to help target ads. What is your take on why these Companies Continue to disregard privacy . Shira i think that is a great question. Look, they definitely Pay Lip Service to privacy and say they want to give people more transparency and control over the personal information they gather on our activity and what they do with that. The status quo for the entire internet age has been this gradually expanding, kind of perpetual surveillance of our Online Activity by, you know, they growing number of Large Companies from the telecom operators, mobile operators so the mobile platforms to these internet Companies Like google and facebook. I think they have all gotten to this point where more data, more personal information is regarded as a good thing and they have gotten used to operating with few, if any limits. When you see these privacy controversies out in the open, it is an occasion where they have gone too far. Where people start to think, wait, i dont want humans reviewing video clips of my home video cameras as, our colleagues at Bloomberg News reported is happening with amazon contractors in india and romania. This has become the status quo for the internet now. Taylor michael, what companies in your coverage are the worst at privacy transparency . Michael i have to say everything i know from this, i get from following shira on twitter. She is prolific in writing about this. I think that nobody is transparent and the line they cross is an implied line where we consumers accept that if i do a Google Search for cameras, that somehow a camera company, canon, is going to find out i am looking for cameras. Or if i go on to amazon and look for a mans dress shirt, that i will get an ad later for a mans dress shirt. That does not trouble me. I know when i go on those sites, voluntary put in information, and get back for the purpose i intended to be used, that is not trouble me. It is when siri is eavesdropping or alexa is eavesdropping on my conversation, that is when the line is crossed. Im not trouble if my ring camera that is focused outside is used by the police. I have the camera because i want to know if there is some creep trying to break into my home. Im probably different than some other consumers, but i dont expect twitter to use my phone number, period. Tory havent for twofac identification only. I dont expect siri to listen to anything unless i am directly speaking to siri. The line gets crossed when they are using the data in a way we dont expect. They are all pretty opaque and how they tell us what they are doing. Taylor the third and final sort of big story we were looking at this week is the heightened tensions between china and hong kong. You have Tech Companies we learned this on twitter the trying to letle, employees tweet about hong kong and prodemocracy, but also trying to cave to china and beijings demands. As you navigate this 10 just landscape, what is your take on u. S. Companies being able to support hong kong and beijing or bowing to pressure . Shira it is a very big call for any global company. You have an enormous economy in china with a government that has clearly shown that it wants to world, of view of the itself and the world onto the companies it does business with. The nba fell into that trap this week. We have seen before from Companies Like mercedesbenz and marriott when people of those companies, a social media intern or somebody running marriotts twitter account or tweeted about tibet and the Chinese Government forced an apology. I think this is just going to be the Standard Operating Procedure now with any company that has any business with china. Even a company like google, which pulled this Hong Kong Related game from the app store, said it was not in response to the Chinese Governments demand. Google is a company that pulled out of china, yet they may be still feel pressure over their shoulder from the worldview of the Chinese Government. Taylor michael, in your universe of coverage is activision blizzard. Did they make the right decision by suspending or pulling back one of their employees who have the tweet about a hong kong prodemocracy protest . Michael my guess is they did not make a decision. My guess is the ministry of andure in china reached out said get this guy suspended. I dont think activision has a choice. Their choice is to pull out and stop doing business there or to comply with the internal whims of the ministry of culture. Remember, this is a country that has banned winnie the pooh because somebody posted a picture of obama and chairman xi and tigger and winnie the pooh and he did not like being compared to winnie the pooh. Justlized our president congratulated them on 70 years of communist rule. They dont have a First Amendment. We should draw a distinction between activities that happens inside the peoples republic of china and activities that go on inside the u. S. The nba, commissioner silver saying he supports the free speech rights of his athletes and general managers and coaches, that is right. They are in the u. S. We cannot enforce the First Amendment in china. Yes, activision did what they had to do. I dont think pulling up is in the best interest of their shareholders. I think this is something that was compelled. Taylor a great tech in week review. That was Michael Pachter and shira ovide. Thank you for joining me. The kremlin is backing a law to restrict Foreign Ownership of russias largest internet companies. The proposal would limit foreign stakes in Tech Companies to 20 on National Security grounds. U. S. Listed shares of russias Largest Internet Company fell as much a 70 following the news on friday. The stocks biggest decline in a year. Ats is lookingar e to expand with the acquisition of cornershop. We bring you the story, next. This is bloomberg. Taylor uber is making a deal that will expand its Geographic Reach and bundle food delivery with rides. It will by a majority stake in the online grocer cornershop which could end uncertainty for the chilean startup. It was planned to be sold to the mexican subsidiary but mexican regulators said no. Lets bring in Lizette Chapman to answer the question. What does uber get with cornershop . Lizette two things. It gets to continue to expand geographically and gets to withgthen those markets Additional Services on top of the ridesharing which is still unprofitable. Theseering on Additional Services, they are hoping to boost the overall profits. Taylor how does this expand their food delivery and grocery business . We talked a lot about uber eats and how that fits into the broader strategy. What is the targeted deal . Lizette cornershop has been around for about five years. It is a pretty good win for exce l, one of the many venture capitalists. Walmart tried to buy it for 225 million. It is the biggest Home Delivery platform in mexico and chile. It allows people to get pretty much anything they want delivered from costco, walmart, bakeries, you name it in about 90 minutes for a pretty large fee. Uber also gets to answer back to investors who have been very concerned. Taylor walmart has faced regulatory opposition with the mexican regulators. Is there any indication uber could face similar regulatory hurdles . Lizette walmart wanted to purchase the whole thing out right and there was concern there would be some anti that it was going to be too big. In antitrust regulators came and said this would not work. But with this deal, they are civilly buying a majority share in the service. It also does not have competing Grocery Services like walmart does, where many people shop for food in those areas. Taylor with the international expansion, what other countries does this help uber gain traction in . Lizette cornershop has a presence in peru and canada. The Bigger Picture here is how majorityacquisition or stake acquisition fits into overs strategy into becoming the operating system for your life or for wherever you are. So, their intention is you open the app once and from that, you get a ride, you get a scooter, you get a bike, maybe a helicopter. You get groceries and you get food. With this grocery majority ownership acquisition, if it goes through, they plan to have they expect it to go through early 2020. Uber is continuing with its vision to make that happen. Taylor any sense this is an added cost or does this help uber get to that elusive profitability that investors have been wanting them to get to . Lizette the share price, it has been one of the more disappointing ipos of 2019. Its share price is still trading at 33 off its may ipo. Because deal terms are not disclosed, we dont know exactly how much they spent for this majority stake. Taylor we will keep guessing. That was Lizette Chapman. Thank you for joining me. Still ahead, we talk about the trade fight and stocks index that continues to outperform the s p 500. That is next. This is bloomberg. Taylor lets get a look at the top tech stories. Cloud strike as Goldman Sachs rejected to a sell. While the company has strong Growth Prospects come of the stock is trading at a high valuation relative to peers. Goldman downgraded the price target. Shares of tulio close higher friday after rbc initiated coverage of the stock would outperform with a price target of 135. The company is one of the most durable growth stories and software. There is also upside for consensus revenue estimates. Of Canopy Growth fell to a twoyear low. The price target was slashed to 25 canadian. The analyst said he is concerned about delivery and performance over the next 12 months. Now, sticking with a similar theme. Chipmakers outperformed all the major indexes on friday. This is as trump said the u. S. And china reached phase one of a deal. Chips with a revenue exposure to china like amd, micron, nvidia all jumped on news of the deal. Joining me is steve king from bloomberg technology. He covers all chipmakers at rbc. Ian, let me start with you. From what we know about this trade deal, what does this mean for the stocks index . Ian we can talk about the reaction. As we saw, as you will read, we want something more substantial. This has been going on for a long time. They had hoped it was just a glitch in negotiations for the industry on the fundamental level. China is the largest market, the u. S. Is the largest producer of chips so many decay in the relationship is potentially harmful in a longterm basis. I think we want to see something more substantial, particularly resolution to huawei before we start cheering. Taylor did anything that you here today change your bold thesis for any of these chip stocks . Mitch i think we are sticking with the same names we like. We still like nvidia, amd. They will benefit from new matter what happens from this trade deal. We still like micron. I think q4 are more derisked now. People know that tariffs will not be in play at least until december, if i was a customer, i would buy more in case it falls apart. I think that helps the nearterm numbers. Those are the higher beta plays in the space. Taylor i want to take a look at a chart i am showing on my bloomberg terminal. We are taking a look at the prices. We have noted similar prices in memory chips. Hasite this, the stoxx continued to push higher and higher. As you take a look at the fundamentals of this space, have you seen a bottoming out in chip prices . Mitch i think we are past the bottom. We think q4 will be the bottom. Dram will be essentially at the bottom. Within the next two months, it will probably be officially done. The big debate is that intel, amd sound a little bit better on the data center side. I think the consensus view is one of them is lying is incorrect. I think the answer is demand came back. Demand came back and data center has more dram. Both of them are seeing in improving environment. If that is the case, you want to be low on nvidi. Taylor what is your take . Ian the first half of the year was arguably, statistically one of the worst declines in overall revenue for the Semiconductor Industry basically continues. You could look at that as colleagues are doing. Things will not get any worse, the second half recovery, that the industry promised will come along. Some of the other analysts being more pessimistic are saying we have not really seen demand computing back yet. We have seen some here and there, but probably not enough to justify the massive runup. Taylor if we see the trade tension resolution was a tailwind, as you look into earnings, what are you hearing is one of the bigger headwinds facing these stocks . Mitch inventory was one of the concerns. Of if you are buying ahead going up, by nature you are putting things into inventory. Inventory has been one of the scary things in the chip industry because a lot of these things, they dont improve over time. These are not like buying fine wine. Inventory is not a good thing to have. Taylor mitch, final word, 20 seconds. Top pick as we head into earnings. Mitch amd is probably the best one. It is probably the most hated after their announcement. Numbers will go up for the first time in a long time. Secondly, our top pick has been synopsis. Taylor we are always looking to make headlines. That was mitch steves and ian king, thank you for joining me. That does it for this edition of bloomberg technology. Bloomberg technology is livestreaming. Check us out. Follow our global breaking news network, tictoc, on twitter. This is bloomberg. Everyone uses their phone differently. Thats why Xfinity Mobile lets you design your own data. You can share 1, 3, or 10 gigs of data between lines, mix in lines of unlimited, and switch it up at any time. All with millions of secure wifi hotspots and the best lte everywhere else. Its a different kind of Wireless Network, designed to save you money. Switch and save up to 400 a year on your wireless bill. Plus, get 250 back when you buy an eligible phone. Thats simple. Easy. Awesome. Call, click, or visit a store today. David from the harvard law review and columbia law review, you were flooded from job offers from major law firms. You13 years, did you think had a chance to be on the Supreme Court . Justice ginsburg no one ever thinks my aim in life is to be on the Supreme Court. David when you first got on the court, where other saying we are happy to see you . Lets have dinner together. Justice ginsburg Justice Oconnor was the most welcoming. Gave me very good advice. Will you fix your tie, please