Transcripts For BLOOMBERG Bloomberg Technology 20240713

They have to say about what elon musk is doing right and wrong. And facebook and Apple Employee post facebook and apple earnings. More on what wall street wants to hear. And a chipmaker reported thirdquarter earnings that met top and bottom my expectations, including inline fourthquarter revenue forecasts, suggesting the number two maker of computer processors is gaining on rival intel. Covers this for us. Falling in after hours trading. With the former guidance a little bit light . Ian about 50 million, but nothing to panic about. The stock was up. Also, with the forecast, there or thereabouts, we are talking about growth from one year ago, so that is obviously not bad. To workut so much money in the stock, and they did not get any upside. Taylor well, and they have put a lot of money to work. My bloomberg terminal showing it is up about 14 yeartodate. How much of this was expectations really high, and how much was good news from the company we got today . Perfect mixture of people getting what they expected. The bad news continues to be this division that sells into Microsoft Xbox and the sony playstation, 20 down. People are done buying those machines now. They are quite old. We need new ones and more details per that is what people want. I amr still, gaming, if reading you right, was downplayed what about sees . Was downplayed. What about pcs . Ian this in higher shipments, higher selling prices, higher higher they said shipments, higher selling prices, higher revenue. There are the custom chips, sony and microsoft, and they said better growth for those chips. About theat highermargin chips, and are you seeing enough sales of those . Ian when i mention is the one we really want to see them do the one i mentioned is the one we really want to see them do well in. The margin on those kinds of chips is absolutely enormous. Had a strong has hold. Making gains, and we have been hearing them making gains for a while. Are you seeing enough to pivot that scale . Thatthe kinds of things they need, amd has made a move. The volume of the market is in the laptop computers. That was being slow, and there are some better chips coming next year, and this third third sector, back to the data center, back to google. The chips, that traditionally moves more slowly, so we are seeing some progress but not massive share gains. We are nowhere near the quarter of the market where they were a quarter decade ago. They are still in the single digits. Lets take a look at my chart that i have on the bloomberg, volatility dropping off or all of these companies, nvidia, intel, amd. Did you get information from the report that would push volatility higher, or is this still very much in line . Ian it is in line for you have to remember that amd has been an edge case for so long, a company that was struggling to survive even a few years ago, so there has been a lot of short interest, a lot of volatility in their stock, so they are not traditionally a read on what the rest of the industry is doing. The fact that they came in end line, where things were supposed to be, that is good for them and helps. Taylor so could we do any read other chipmakers and any sense that maybe the trade war has calmed down for now . Ian we will have to see what they say. I would imagine there are questions around the general demand environment. Ony have been concentrating the look. These are new products and why they are making gains. Their worry is what damage they can do to intel and nvidia in gainscs, more damage than , to get back some of the shares. Taylor what is the one thing you want to hear . Ian we want to hear more about the unit and where the sales came and get some more precise numbers. Bloombergs ian king, thanks so much for joining. Video gaming. Despite being in a cash crunch, they applied for a trademark we. R the name play by they are said to have belttightening by selling off some of their businesses after their delayed ipo and restructuring. For more, i want to go to new york and get our bloomberg reporter. So, why gaming right now . Is looking fork ways to make money and leverage space. They have done well, some companies, in the esports is probablywork looking to get in on this. The question is, is it too late. It may not be the time to doubled down in a new area that is not in the core of weworks business right now. This toliana, explained me. We saw them selling off some of their noncore strategies, really focusing on office sharing. So how does egaming fit into their strategy . When weworknt know originally started looking into this, so it could be part of the old establishment of wework, so it is not clear where there goes. Ports gotes. We will not know how serious they are. There are a lot of companies in the sector, some that are huge in video games, so it could be a expand itsork to core business, so that is one way to think about it and how it might link into the core business, but as for stadiums or or how it plans to branch out, that is very unclear at this point. Has been a lot of concerns about their Business Model because it has not been tested in a recessionary environment. If they were go into this egaming environment, will it offset some of the concerns about what a Company Looks like in a recessionary environment . Liana it makes sense that wework would look into new areas, but this is crowded. Many companies are looking into esports, so it seems to be a curious time to be expanding in an area that needs a lot of investment, and i am curious what softbank would say about this recent move. They put in another 9 billion into wework recently to bail it out, so it will also be interesting to see what softbank thinks about this venture. You mentioned the word softbank. It has just been a week since they infused to the company with more cash. This has beenw going in the last week . Liana bloomberg has reported that the new chairman is looking to turn this around, might bring in his own management, so it is still early to see how this company is going to turn around, and we will see what the future holds. A reason fore softbank to try to recoup its investment, maybe in an ipo year, but they have to find a way to get something for their big investor. That keeps onory giving. Er, thanks liana bak you. And another company beating estimates, ea rising in after hours trading. They have been under competitive with the star wars jedi. And in the Third Quarter, what things mean for the electric car maker next, and if you like bloomberg news, check as out on the radio. You can listen on the bloomberg bloomberg. Com, and on sirius xm. This is bloomberg. Despite reporting surprise thirdquarter results, there is a drop in u. S. Revenue for tesla, its largest market for your the automaker sought sales fall about 2 billion in itsest quarter largest market for the automaker. Sales fell about 2 billion. The biggest survey of tesla drivers, bloomberg surveyed 5000 owners with a questionnaire, and the data reveals that tesla has finally figured out how to deliver cars with fewer problems. Here is our reporter who covers tesla for bloomberg news. Tom, lets about this filing before we move on. We know this story, 97,000 cars. Did you learn anything new though from this report in terms of the geography of these sales . Tom not much. I think what we are seeing is an artifact of them continuing to expand their geographic footprint overseas, so looking at the yearoveryear number, we are comparing that to the Third Quarter of 2018, and that is where tesla found out how to massproduce cars, and they started cranking them out and flood the market with the model of built up years demand. When they satiated that demand, they moved in february to Start Building cars overseas, and so, of course, there u. S. Numbers dropped considerably. I think some people will look at that number and say, oh, is this a warning signal that u. S. Demand is dropping off a cliff, but i just do not think there is a lot of evidence to support that. Right go to tesla. Com now, there is a twomonth wait to get a model 3. A signal. Is you know, it is representative of what is happening as they expand overseas and kind of smooth out their production, but it was a record quarter for unit sales, and i think we are going to continue to see that ramp up as we see their shanghai factory going. Taylor tom, you are not just sitting there being a talking piece. You are there doing the work and rolling up your sleeves and questioning 5000 tesla owners. Generally, as you take a look at the first part of the survey, what is the key take away . Ron ok, yes. This is really a Massive Survey ok, yes, this is really a Massive Survey. Now that they are cranking out these cars, what is the experience of owning one, and can they provide the kind of quality and experience of volkswagen or toyota that is going to track the next round of like more mainstream buyers, so we started by looking at quality. There is two times of polity, driving performance and hightech features that people ofe there is two types items. Driving performance and high tech features that people love problems they have with their tesla when they first received it, and we found that , what we in q3 peaked were just talking about, and in that quarter, you will remember that is when tesla famously created a whole new production line in their parking lot under a tent structure and tripled production, and since then, their defect rate has dropped significantly, down 44 in the Third Quarter of 2019. Taylor so what was the most common complaint that has not now gone down . The complaints are superficial in nature. It is paint defects, panel gaps, you know the gaps between the panels, dents and scratches. These are the things. These only affect your driving experience, but in the automotive industry, people see that as kind of a signal that attention and care is being paid, and if you can provide a perfect paint job, you are giving that same care to, you know, what is inside the car, as well, and those are the things that gave tesla a whole lot of trouble early on. We found that 12 of tesla model 3 owners had some sort of issue with their paint, so we saw a lot of that early on, and those are continuing to get better. Taylor and does it bode well for the company that the complaints, as you mentioned, were not structural or mechanical in nature and that they were purely cosmetic, or do they need to do a better job of doing the whole thing right . They were not purely a cosmetic issue. We saw some items that were unique to electric cars and unique to tesla, some motors that needed to be replaced, and at least one highvoltage battery that needed to be replaced, so it is kind of painting a picture. This is a different kind of car, and they also had Software Defects that they had to deal with, and most Car Manufacturers would not have to deal with that because they are not offering these advanced features, but most owners said they were fixed with updates with really no loss of convenience of their vehicle, so i think we are seeing signs that tesla is becoming better at offering the kind of quality that one would expect of a massmanufactured car, and overall, tesla owners truly love the car. I think one of the indications of that is when we asked people about their favorite features of of drivers said it was a pleasure to drive. Are of part one of a few the survey. We know you cannot drive the car part one of four of the survey. We know you cannot drive the car until you charge it. We will have further parts of the survey. An impacting growth, that is next. This is bloomberg. Taylor lets take a look at the top tech calls. One company was tumbling after analysts from wells fargo, credit suisse, and others cut the rating. Ramping up for the first half of 2020, leading to competitive turbulence for the stock. Alphabet slid in tuesdays trading even as analysts hailed the company for slid inty tuesdays trading, even as analysts hailed the company for its stability. And another cup and he raised their price target and another company raise their prices target. And a Food Delivery Company gave a fourthquarter outlook that was well below expectations. Analysts are extremely bearish on the results with at least three firms lowering the ratings and others cutting the price target. One analyst said, we struggled to find any Silver Lining in these developments, and those were a look at your top calls. Now, a leading Online Travel agency, the parent of companies trip companies. Despite rapid growth since it started in 1999, the company has seen its shares decline, and tensions like the u. S. Trade war and hong kong protests, and the ceo spoke to my colleague, bloombergs tom mackenzie, in beijing. Take a listen. People probably still will travel, but perhaps may be four times a year, maybe three times of travelingad long haul, it might be traveling to asia or within china, but i think travel for middle to highend customers almost is the golden week holidays, chinese new year, or summer break. They will bring their family. Being weighed down by the near time nearterm weakness . yes, it has a negative but i think of this as kind of a one time thing. So we will still make a strong investment in the long term. Drivesw would you say it the broader impact of the trade war in your business . I am very hopeful that leaders of both countries will have the wisdom to focus on our shared interests, and there are so many things we shared together. I think, both countries will be benefiting from our collaboration. Course, in hong kong, there has been significant pressure. Can you quantify for us how it has played out for ctrip, in terms of demand for mainland tourists . Jane the impact estimated is around 5 of our total revenue. Tom about 5 , ok. When do you expect that to turnaround . Hopefully, the area will be stabilized very soon, so, both governments both government and the people will look forward for what is the best for hong kong. Recently has been to grow in sort of smaller cities in china. How much success have you had there, and what are your targets for growth . There was one target that i saw an additional 50 from those smaller ones. Are you close to meeting that target . Jane correct. We have about eight thousand stores, and the growth we stores, and,000 that growth, we have put efforts various tiers of cities, and it is working out for the yearoveryear growth for the lord tier cities, the lower tier cities. Tom and you expect those numbers to continue . As we keepnk as long with our execution, we will be able to gain more market share. Ctir ctrips ceo. Will beany says they putting money into something other than Combustion Engines. That is next. This is bloomberg. This is bloomberg technology. Im taylor riggs in san francisco. All eyes are on electrification. On tuesday, General Motors laid out an aggressive approach to electrifying its lineup, saying the bulk of rmd will be spent on evs and not Combustion Engine cars. But is demand still there . In a regulatory filing, tesla reported their u. S. Sales fell 39 in the Third Quarter. Numbers continue to raise questions about how much incentive is needed to keep customers enthusiastic about electric cars. Joining me from new york is Morgan Stanley analyst adam jonas. Adam covers the automotive industry. Great to have you. One of your most recent notes really highlighted the connection between Climate Change and evs. As you look at the landscape, how much does Climate Change start to really drive the shift to evs . First, thanksor, for having us on. I just got back from Morgan Stanleys inaugural ball Sustainable Investing summit where we had a couple of hundred clients skewing towards cio and Portfolio Managers that really focused on this topic. Look, here we are 111 years after the model t, the average car emits almost five metric tons of co2. There are 40 tons per second of co2 emitted by all the cars in the united states. 40 tons a second. Yet, the worlds most valuable auto company, toyota, makes zero evs todays. It is kind of a shock. On the flipside, you have the worlds most shorted auto company, tesla, that only makes evs. Something has to give and investors want to understand how to play that multitrillion dollar shift in capital as we reinvent the industry. Taylor how does technology play into this . I think early days of tesla when i was not sure if tesla was a tech company or an automotive company. Where is technology . Adam we think tesla is more of a software company, and a hardwaresoftware Fusion Company that will be covered by a tech hardware analyst rather than the auto analyst community. We will take what we can get. We think the connection between tech and autos is when you see these large multitrillion dollar tech platforms like amazon, alphabet, and apple that clearly have their eyes set on the Auto Industry as a domain. Not necessarily to make cars, but perhaps apple wants to make your car into an apple store. As they try to look at this internet of cars marketplace, thatre getting drawn in to 40 tons per second in the u. S. Ecosystem. Its happening within cities ridesharing vehicles might emit 25 tons in a year, five times more than the average car. As firms get to that Autonomous Vehicle topic and shared car, they are being drawn in and have the resources and capital and obligation to do something about it. Taylor in your other latest report called the Global Electric Vehicle Market monitor of october of 2019, you talked about within the u. S. , we are down yearoveryear, but up your today in terms of u. S. Sales in the battery electric market. As you look beyond, paint the picture for me. Where are we . Is there demand . Adam we think the stock market is defining the ev market through the wrong lens. They looking through the lens of wealthier people buying cheaper and cheaper teslas in a suburban community for your home, like the retail experience. That will grind along. I think your segment before, tom who did that survey on tesla was spot on with his observation. , we think where the stock market is moving to now in terms of analyzing ev adoption is suites and shared vehicles. In order to make this large shift, 2 ev adoption in the u. S. To 10 , 20 , it will be the regulatory purview and a city going after logistics, taxis, taxis,mobility shared mobility fleets. That is how you get the big chunks. That is where the money is. That is where the Business Model can use the ev infrastructure and you software and data to fix the problem instead of relying on the 100yearold ecosystem to do it. Taylor as a fundamental analyst, you assume further margin compression bu because you have to give out discounts to lure buyers. Adam all else people, absolutely. We think of the ev market is just a machine with software that has to perform with incredible reliability, that will get hyper commoditized overtime. Shortterm, you do have tesla shifting production or at least expanding production into china where labor costs are lower and logistics cost are a fraction. There will be some volatility. Auto companies have proven before, if you have a highly utilized factory at that cost base in china, you can do some pretty interesting things with the margins. They may not be sustainable, but i would be prepared for some interesting developments. Taylor is tesla the clear winner . Who is second and third place . Where is gm, vw . Adam we all legacy Car Companies will get drawn into this even if they would like it to move very slowly or else they would not be able to sell vehicles in the state of california. And they certainly would not be able to sell vehicles operated in cities like new york, london, oslo, norway, los angeles. Its going to move at the pace of those cities that are going to take matters into their own hands. They will all get into it. But if you asked me who is the biggest competitor to tesla, we dont think it is toyota or General Motors right now. We think it is large tech firms that are worth 1 trillion, worth more than all of my Auto Companies combined, that generate cash that are equal to my entire industry combined, and it is more of regular recurring cash. These are the type of companies that have the ability to attract talent and capital, and lose money if necessary to take on some alike tesla. Capx spent 20 billion in over the last decade. That kind of thing will be a difficult task for a legacy auto company to replicate. They will attempt to do it, but the real threat is from the mega tech. Taylor who is the biggest loser and what is the problem . Is it capx spending, r d . Adam the biggest losers are companies that have to defend a declining Business Model that is at the margin obsolete. Internal combustion technology, for example, that cannot be repurposed into electric, for example. And or does not have the backings from the state or a National Policy to be able to absorb losses from flipping the Business Model. There may be a lot of people on your program listening who say it may sound like the average auto company, and it is. I would say the average auto company that cannot make that cultural transition would be the loser. The question and what we are seeing depending on the board room we are engaging with, some Auto Companies really have a high level of urgency and have kind of accepted they need to go all in on this. But, they will require some planning and support from regulatory bodies, governments, and perhaps some creative legal structures to attract capital on a competitive basis. It is not going to be easy. Taylor not going to be easy. That was Morgan Stanleys adam jonas. Thank you for joining. Coming up, amazon may challenge the lucrative pentagon cloud contracted lawsuit microsoft and the company puts President Trump sights. In its details ahead. This is bloomberg. S is signalingn President Trump may play a prominent role in its challenge to pentagons cloud contract going to microsoft. With more, it is matt day in seattle. We heard originally from amazon, all that originally set was they were surprised by the decision. T are we hearing from the company . Matt they are considering their options of what to do next and they may have to move quickly. What protestsy want to file. They have 10 days to launch a formal protest. We know amazon is pretty busy evaluating its options at the moment. Taylor assuming they do pick a battle, what is their argument . Matt i think the most obvious one two observers on the outside is the involvement of President Trump in the award or alleged involvement at this point. Earlier this year, he made the kind of precedent shattering choice to discuss the ongoing contract in public in a way that echoes the criticisms that some Tech Companies had of the contract process. Seeming to suggest the deck was stacked in favor of amazon. That is likely to going to feature in whatever protest amazon should take that route. Taylor any sense of how likely it is that they could win . Matt they face a steep challenge. Amazons rival oracle showed that earlier this year when they tried to challenge an element of the contract. They said they were unfairly excluded from it based on some ties that amazon employees had with the pentagon. That was thrown out by a judge. Just showing how hard it is to prove that a contract, or that the government improperly awarded a contract. Courts tend to give a lot of deference to a boarding agencies in these cases. Given the amount of stuff in the Public Record from President Trump on amazon, they are likely to make the effort. One thing contracting experts have pointed to is there a chance maybe the public hearing would force a revisiting of the contract, portions of it, but theres a long road ahead regardless of what amazon chooses. Taylor matt day, thank you for joining. We take a look at facebook set to report earnings after the closing bell on wednesday. Despite regulators greater scrutiny, ad revenues should remain robust due to consumer strength and the ongoing transition to stories. Bloomberg intelligence expects thirdquarter results to reflect the mobile ad environment, yet the focus will shift to spending into the u. S. Election. To continue into what we should expect to hear from the company, kurt wagner. Lets talk about at revenue. Facebook and google dominate this space. We heard from google, really good ad numbers. Do we expect the same from facebook . Kurt analysts are optimistic this will be a strong quarter. Snape had a strong quarter. Twitter was a little bit down but they have some wonky excuses. You all beasley mentioned google. Typically, these companies tend to move together and the optimism for facebook is definitely high on the ad revenue front. Taylor how much more scrutiny over going to be digging through those Financial Statements to figure out the money they are getting from political ads . Kurt they dont break that out historically. They admitted political ads is a very small part of the business. Usually after the election or midterm, they will come out and there will be a report. A couple hundred Million Dollars of ad revenue. That is a drop in the bucket. There is a lot of discussion around their policies which are probably a lot more important and interesting to most people than the money they make. I dont think we will hear a lot from them from that as a business. We may hear a little bit around the policies, but political advertisements for twitter and facebook have been historically small. Taylor we talk a lot about facebook. Some of the user growth slowing. The shift to instagram has been a key driver of growth for them. What do we need to see on instagram . Kurt facebook has not broken out instagram revenue, but their estimates that others come out with that shows instagram is the biggest driver of growth for the company. That could be something incredibly interesting if facebook were to actually put that as its own line item tomorrow, kind of give us a peak of how important instagram is to the business. Most likely, we will hear a lot about how strong it is and how happy they are with no real numbers. Taylor you are not allowed to come back until you give us numbers. Just kidding. Lets talk about the monetization of whatsapp. What do we need to hear . Kurt facebook, i think it was two years ago that mark came out and said we are putting ads in messenger. People kind of lost their mind. Analysts spent the whole time asking questions about messaging ads and facebook did not have a lot of answers. We still dont know how much they make from messenger. The point is these are slowmoving part of facebook business. They continue to make most of their money in the newsfeed from instagram. And messaging is seen as something they will get right hopefully at some point in the future. I do expect them to talk about improvements they have made with whatsapp or messenger. I do not expect for them to talk specific numbers. Taylor of the analyst call, how much of a distraction will antitrust, data privacy, libra be compared to just the fundamentals of the business . Kurt i mean, the big threat here, could facebook get broken up . A lot of people think that is a real, rare chance of that happening, but it is a massive threat. It would totally dismantle the entire thing facebook built. I would expect them to answer questions. I dont know how much facebook could say given these are regulatory investigations. The last time we heard from them was the day they paid a 5 billion fine to the ftc. I think it is fair to say what is going on . Do you anticipate there could be some financial penalty as part of these investigations . Iknow, this is a way down the line. We have heard a lot from them on this front in the past. Taylor analysts said some of the big headwinds are what is hampering the evaluation and the multiples of the company. That was kurt wagner. And, still ahead, we continue our earnings preview. How the iphone 11 sales may have impacted apples Fourth Quarter. Thats next. This is bloomberg. Apple is set to report earnings after the closing bell on wednesday. The companys september 10 launch of the iphone 11 lineup likely left many potential buyers on the sidelines in advance, leading to a soft quarter for iphone sales. At 55. 6 of year to date sales, the iphone hold sway over apples Revenue Growth which consensus sees flat for last years Fourth Quarter at 62. 9 billion. To discuss, im joined by the Cfra Research analyst. With me, bloomberg technologys mark gurman. Give me the lay of the land of the iphone 11. How much of that will we see in the Earnings Report . Mark investors and analysts are excited about the iphone 11, even though it was not a big update. The stock price seriously rallied since the september 10 announcement but we are looking at another year of flat or a decrease in iphone unit sales, and a drop in iphone revenues despite the higher prices. It is not really truly good news, but i guess investors do not think it is as bad as it could have been. Taylor angelo, i read your report in your expect betterthanexpected iphone sales. In your opinion, what is driving that demand . Angelo we would agree with mark in the sense that the September Quarter is not going to look that great on a yearoveryear basis. I think what investors are really getting excited about here is the estimates were reset earlier this year. We are now setting up essentially a lobar environment going into fiscal year 20. Our view is you could see a potential return to unit growth in the december quarter, partly due to the fact we saw apple kind of lower that price point, entry price point down to 699. We think that helps a number of geographic regions. We do see betterthanexpected results out in china. If we get all of that, even if you get an in line kind of number, we think that bodes well for the shares. Taylor angelo, you are ok with that even though they dont have 5g for about another 10 month or so . Angelo that is actually a positive in our view. Essentially, this is a point in time right now where even if apple were to miss or to go lower over the next couple of quarters, we think investors will largely overlook it and essentially by any sort of dip in anticipation of the 5g device in the fall of 2020. Taylor the problem with all of this, because they are so dependent on the moment on the very cyclical iphone sales, they need to sort of transition or continue to transition to services to help balance out the volatility. What do we expect from the Services Side . Mark apple really has not shown the ability or the willingness to come out with a product that is going to add seriously High Percentage points like the iphone, over 50 of the overall revenues. Services will extend the life of the iphone for apple. It allows them to add new things like the apple card and apple pay. At this point, it is not seen any of the services will make a dramatic jump individually, but it is that continuation of the app store that will help apple in the next few years. Taylor angelo, what is the Inflection Point for you, where services offset the highly cyclical iphone sales . Three years from now, five years . Angelo in terms of the top line, i dont think you get there anytime soon. When we start thinking about potentially, lets say, the services profit. You think about the margin profile, 2x of the hardware business. You start looking at the margin nifile of services and bumlump wearables in wearables, the combination of both those businesses, services and wearables, could exceed the rest of their business over the next three to five years in terms of the profits. Taylor the integration of health care with the watch, wearables the next key of growth in your opinion . Angelo we think health care is an enormous opportunity for the company. When we actually see some of the potential Incremental Service toortunities as it relates the health care to the Health Care Industry remains to be seen. Yes, we do think health care remains an absolute critical part of the apple story longterm. It will be driven by wearables combined with potential services offerings. Taylor mark, the macro backdrop appears to have improved. We got potentially a phase one of the trade deal. Any sense if that is a game changer or not yet for apple . Mark this a lot of discussion when apple have the iphone sales in china which was due to the trade war. From the perspective of people not wanting to buy American Products in china might have some influence, but apples problems in china are much deeper than the presence of a trade war. That comes down to lots of Companies Really being specialized in terms of services, apps and other offerings for the chinese market, where apple has not really optimized what it is offering for that market in any specific way. Taylor quickly here, you said you are waiting on positive comments from china. How was the trade war in your opinion . Angelo at the end of the day, we think there has been somewhat of an easing in the near term for apple. Longerterm, i do have my concerns. We think the biggest risk for apple longterm is going to be china because of the competitive offerings out there. That being said, we think nearterm, apple should be ok in terms of the china play. Taylor on a similar story, you are at a Samsung Developers conference. They unveiled a foldable phone. What was your take away . Mark that is a new look for their foldable strategy. It opened like a puppy now it will fold open like a small makeup case. Very interesting new formfactor. Hopefully for them, it succeeds more. Taylor a makeup case, i like that. Angelo zino and mark gurman, thank you both for joining me. That does it for this edition of bloomberg technology. Bloomberg technology is livestreaming on twitter. Check us out. Be sure to follow our global breaking news network, tictoc, on twitter. This is bloomberg. Welcome to daybreak australia. Im haidi stroudwatts. Shery im shery ahn. We are counting down to asias major market open. Haidi here are the top stories we are covering in the next hour. The u. K. Prepares for the polls again as Prime Minister Boris Johnson finally wins his bid for an early election. Boeing goes on the defensive. The ceo faces tough questions in the senate. Talk of another big