Zuckerberg would not. Twitter banning political ads of all types. We have details. Tesla owners talk. Bloomberg conducts the biggest survey of tesla drivers today. 5000, in fact. What they have to say about what elon musk is doing right and wrong. Dominated byk was tech earnings. Apple beat across the board wednesday, topping estimates for both last Quarter Results and next quarters forecast. This all despite sputtering iphone sales. Andlights included sales profits that topped analyst projections. The ceo announced apple will launch a no interest iphone payments on the apple card, adding that the apple card is the most successful launch for a credit card in the u. S. Ever. I got insight from forrester analyst julie osc. We have been seeing upward revisions to basically all of the numbers throughout the quarter so it is not a surprise that the stock had performed pretty well coming into the report that said, especially on the services aside, this was a really large to be large be at. Obviously, the guidance for the Holiday Quarter was really good. When you look at the iphone numbers and when you look at the expected revenue numbers, the midpoint of that guidance number for the Holiday Quarter is about 5 billion below the alltime high, which was last year. In terms of apples business. The financial is asian of the business itself has led to tion has financializa led to higher eps and higher stock price. 50 of revenue comes from the iphone so it still comes down to iphone sales. Im looking at a chart talking about the average sale price. Thathave it loaded how much of this demand are using, particularly perhaps around iphone 11 . Lowering the prices can bring more consumers into the market or speed up replacements. As the phones have got more inspected more expensive, consumers have slowed down. The replacement cycle was much closer to two years and now its up beyond that. Taylor did we see in this quarter people replace their older phones faster than we thought . Is that also what is driving next quarters forecast for iphone sales as well . And does not look like that actually. I think julia has got it that the replacement cycle is expanding. Myself and my wife are good examples. I have the 10 and she has the seven and neither of us upgraded this year because we are looking forward to something new, you know, something that is actually a game changer in terms of the hardware. There is really nothing there. The next cycle looks like we are going to get 5g. Thats where both of us will obviously upgrade. I think you will see that upgrade cycle tick up again. I think the market basically baked this in, that you will get a lower upgrade cycle. Out in china, that upgrade cycle is also slowing significantly because they are working off of from the last year where the upgrade cycle was very high when apple did not have a large phone to sell into china. Now we are on the backend of those tough comps. It will take a wild for that to kind of burn off. Again, that 5g upgrade cycle you might see pickup again. Julie, we were talking olivia talking a little bit before the show. More and more we want to talk about services as well. That is the highermargin business of the company. My terminal showing the growth of that service. Up 18 here. How much of that Services Business do you see pushing growth Going Forward for the company . I think it is absolutely essential to apple as we move forward. On one hand, they have more services on the market with bringing the tv service and arcade service in. If you look at somebody opting in to buy all of their subscription services, you could be up over 500 per month. Because they are subscription, they tend to be stickier. The other advantage apple has in the market is a lot of building relationships and do have building relationships with almost all their customers. That makes easier to convert customers and keep them. That was forrester analyst julie ask. Facebook was also one of the most anticipated Tech Companies out with earnings this week. The company impressed wall street wednesday by posting strong thirdquarter sales. This is all despite regulation woes and doubts about its cryptocurrency plan. Ceo Mark Zuckerberg remains defiant on the investor call. I expected that this will be a very tough year. We try to do what we think is right, but we are not going to get everything right. This is complex stuff. Anyone who says that the answers are simple has not thought long enough about all the nuances and downstream challenges. I get that some people are going to disagree with our decision. I get that some people are going to think that these decisions may have a negative impact on things that they really care about, but i dont think anybody can say that we are not doing what we believe or that we have not thought hard about these issues. For insight, i turned to Bloomberg Intelligence senior analyst. It has been a big topic for the last couple of quarters and it will continue to be so. Going into an election year. If you look at the business side of things, that is coming will humming well. They did well in every metric there was. They are projecting a slowdown in 4q. It might be a little conservative. There are some comparison issues with respect to product changes that. Ings like what this quarter is really showing is that facebook is setting appear next year for its newer businesses to diversify beyond advertising. So you are talking about e commerce, payments. That is what is going to be the story all about from a business standpoint. As far as the regulatory aspect is concerned, i mean, that is going to be an ongoing discussion, debate, argument throughout next year. The business side is sort of stays untethered. Are we seeing any cyclicality in their ad revenue around the election cycle . We know that facebook and google continue to dominate the ad space. I was starting to see any cyclicality there . It is not that big in terms of their total revenue. So if you look at facebook or twitter, the political ads, it is a very small portion of their business. Not a lot of cyclicality in terms of revenue, per se, but there is some organic traffic, more eyeballs that come along the way. That may help twitter more so than facebook. Elections, based on at least on the business side of things, it should not sway the results much. Not to be a total negative nancy, but i think if there were some concerns that the margins beat. We were looking for a margins miss to show that they were spending money on cleaning up the platform. Are they doing enough on cleaning up the platform . And they are accelerating hiring. Next year if you look at their expenses, they usually give a higher guidance early on and tapered it off. It is basically telling you that the headcount growth will continue to increase going into election year. They are being more cautious with these improvements and henceforth. This is really going to be a moving target over here. This is not a one quarter or one year fixed really. Theres going to be an evolution of Infrastructure Spending and how they allocate personnel. So at least from a financial standpoint, they are making sure that there is capital and spending allocated or baked into expectations for next year, especially going for an election year. This hour, we will hear from facebook coo sheryl sandberg, who set out for an exclusive interview with the bloomberg after the Company Reported earnings on wednesday. Again, the interview later this hour. Coming up, political ads on social media sites like facebook coming under scrutiny. Play,r makes a big announcing it will stop accepting ads from candidates for elected office. Details ahead. If you like bloomberg news, check us out on the radio. You can listen on the bloomberg in theoomberg. Com and u. S. On sirius xm. This is bloomberg. Twitter announced on wednesday it will ban political advertising from its platform globally starting november 22. Ceo jack dorsey tweeted to the move, saying we believe political message reach should be earned and not about. Says theg opinions decision clearly upstaged facebook. She weighed in on the matter thursday. He was already under considerable pressure if you have people like joe biden and Elizabeth Warren and alexandria ocasiocortez all piling on, criticizing Mark Zuckerberg and facebook about their policy. I am not sure jack dorsey really tips the scales that much more, but certainly what jack dorsey and twitter did on wednesday takes away one of Mark Zuckerbergs arguments, that his peers at twitter and google are all doing the same thing when it comes to political advertising. Door security dorsey basically said ,nope, we are not. At one half of 1 of revenue, why even get into this controversy to begin with . I think that is a great question and certainly that is a point that many people have made , that facebook would not be giving up really that much revenue if it decided we are just going to stop taking political ads and just take ourselves out of this part of the conversation. I think the argument that i Mark Zuckerberg is making and you can say it is the wrong decision, but it does feel like he really believes it, is that facebook does not want to be in a position where they are asked to censor political speech. He really sees this as kind of a freespeech argument and there are certainly a lot of people, particularly conservative politicians, who agree with him. It does feel like a principled stance rather than a standard that is motivated motivated entirely by money. Facebook has one half of 1 , i was hearing that twitter has political of the revenue from political ads. It is one thing for them to start saying they are going to stop taking ads related to certain issues, because those kinds of advertisements are teeny fraction of a company that is already a fraction of the size of facebook. Twitter has never been a place that was either large enough or were the ads are targeted enough politicalaling for related advertising. Dorsey, give him credit for taking a position and sticking to it, but it is also true that it is a little bit easier to take that kind of stand when the advertising that he is talking about is relatively insignificant for twitter. You read a Bloomberg Opinion column and you get hundreds of calls coming in. Who is right here . I dont think my email comments are necessarily representative. That facebooklike is in this cycle were nothing they do is right. There is a little bit of unfairness to that, but it is also true that look, they are a place that has an audience of a couple billion people plus on a daily basis. The choices they make have an extremely large impact, both on what people see, who gets seen, whose voice gets hurt. Thats why there is so much attention on the policy choices that facebook makes and on how they write their algorithms that the choices of one Company Controlled almost entirely by one man are so important in the discourse of the country. You write a very obvious question that i had failed to ask up until this point, which was, how did google manage to stay out of all of this . I dont know. To me, this is one of the great mysteries of advertising, has lined Online Advertising controversies. Google has managed to stay out of the fray. Is the largest world. Sing seller in the while Mark Zuckerberg has gotten criticized by everybody from the president on down for how they handled political candidates and their advertisements on facebook, google has said nothing and they have not really been called to account. I cant imagine it will stay that way, but so far, they have just kind of let Mark Zuckerberg take the fire. That was shira ovide. Coming up, complete earnings coverage continues with alphabet posting a few misses in the thirdquarter. We have details next. Bloomberg conducts the Largest Survey ever of tesla model three owners. What they think about reliability, design, and function. This is bloomberg. Taylor while facebook and apple beat earnings, alphabet, googles parent company, delivered a mixed bag when it reported thirdquarter earnings on monday. Operating income, earnings per share, and even paid clicks missed estimates. The company did say it is investing heavily in thousands of new jobs geared towards googles Cloud Computing business. According to the ceo, Cloud Computing and Machine Learning continues to be the companys priority. I got reaction from a market analyst and jitendra waral. They are spending and ramping up cloud but it is showing results. It is pretty strong. Probably cloud is going much faster than that. What we are seeing over here is for the next year, cloud is going to take center focus as they push into enterprise. They are getting some early success over here. They have the capacity to compete with amazon and microsoft. Youre going to see cloud becoming a bigger and bigger deal for google but it will come at a cost as they scale that business. To us, thats what you largely see in the Cloud Business. Taylor, what is your take on the cost of keeping up and gaining market share in that Cloud Business . It is going to take some continued investment, as we just said, but i think there is the potential for a huge payoff on that side. We have seen some major contracts awarded to competitors recently, so i expected google to keep investing in hopes of winning some of that business in the future. Taylor i want to talk about the income statement, because it seems like a broadbased myth. Toppling revenue comes in line, but operating income, margins, and the bottom line seemed to be a miss all in a row. Is a revenue problem or expense problem . It is not a revenue problem. If you look at their core ad business, there is a dynamic where the ad pricing is improving. We see a search becoming more and more valuable on mobile as it gets more credit with space. There is impact in terms of improving with pricing. That is offsetting the 18 increase in paid clicks, the volume of ads that you see. This dynamic will keep playing. I think the ad business will keep humming well. The Cloud Business is where disclosure could be a bigger deal for them next year. At scale, it is a very profitable business. Google has the scale. If they can come out and show that disclosure, look, this is how fast we are growing and this is the profitability, which could very well happen next year. The phonejust got off with the cfo as she said it was a very noisy quarter, which broadly led to the miss in the margins and bottom line. On the expense side, there was a onetime Legal Expense they had to pay for. There was an unrealized gain or loss which had to do with some accounting changes and how you have to mark to market. Slack. K it is uber and she would not specifically clarify that those are the companies. Is there a real impact that the Venture Capital arms of these companies can lead to some bottom line misses relative to where you think they should be . I think that it is possible. My biggest take away from google , we do focus really heavily on the ad side and they beat Investor Expectations and our expectations for their gross ad revenues. Although cpcs are continuing to decline a little bit, overall paid clicks our way up. Additionally, traffic acquisition costs have continued to stabilize. They picked earlier this year. They have dropped slightly since then. I think that is a really good sign for the bottom line on their ad business. Taylor we have talked a lot about the ad business. Last week, we sat here and said the same thing about amazon. But that ad business is so strong for that company. It is a lever they can pull. How much are is google and alphabets ad business or is there still more levers they can pull . Google search has room to grow. Peers. E still trailing as a result show, it continues to be a very valuable franchise for the company and they are the market share leaders. We expect the momentum to continue. With amazon and google sidebyside, they are switching roles, where advertising will come at the forefront for amazon Going Forward is a Cloud Business faces large numbers while google will start showing results on the cloud front. You will see this dynamic play out, which really plays well for both companies. We think the market is going at clip. Healthy there is enough room for the three of them to enjoy good clip. There is enough room for the three of them to enjoy good growth. Disclosure on both companies, c. There is enough room for the three of them to enjoy good growth. Disclosure on both companies, advertising on amazon and potentially cloud on google, is what could make it more exciting. Taylor you had a good no on this that ad revenue had accelerated in 2018, had a bit of a slowdown or moderating of in 2019. 2019 are there still pockets of worry . To offset any slowdown that we see in growth in general would continue. Because they are market share leaders, because it searches in many ways amateur business. There is a much are business mature business. Taylor i mentioned that we havent spoken with the ceo earlier. I want to bring up a quote when i asked specifically about youtube. There is arguably outside the cloud, youtube could be a big future growth area for the company. She did reiterate that, saying that we continue deliver does to deliver growth to deliver growth. We are excited about the upside potential. Are you getting enough of an outlook Going Forward into the next few quarters as it relates to youtube to make you confident that that can continue to be a driver . I do think that youtube will continue to be a driver. We certainly have not seen anything that suggests otherwise. Advertisers are very keen to spend on video placement. They would love to have more video inventory, especially video inventory that they can target at scale. Youtube is the absolute number one place to do that. Taylor there has been a lot of controversy sometimes about youtube. Are they doing a quick enough job of pulling down content . There is a broader concern about data privacy and misinformation. What is the Downside Risk here with youtube . The Downside Risk really is more on the profitability side of the things, like we just said, the momentum in advertising continue to be strong. Because it is shared infrastructure, searches share infrastructure, youtube is sharing infrastructure, clout is. Sharing infrastructure. If you look at their cost profile, search would be considerably more profitable. That helps them keep youtube humming on a good clip on a topline basis. I think youtube will keep hoping that topline. As far as disclosure is concerned, would you not think youtube numbers will be disclosed anytime soon. Cloud, there is real potential. Taylor that was our market analyst and Bloomberg Intelligences jitendra waral. Coming up, we asked about 5000 tesla model three owners what they think about the cars reliability, function, and design. Those results next. Bloomberg technology is live streaming. On twitter check us out at technology and be sure to follow are breaking Global News Network at tictoc on twitter. This uber. This is uber. Bloomberg welcome back to the best of bloomberg technology. Despite reporting surprise Third Quarter profits tesla revealed in a filing this week that the auto maker saw a nearly 40 drop in u. S. Sales. Sales in china, however, rose almost 700 million. So filing was revealing the same week bloomberg released a wide ranging survey of owners. The data reveals that tesla has finally figured out how to deliver cars with fewer problems. But that is not all it revealed. I think what were seeing here is an artifact of them continuing to expand their geographic footprint overseas. So looking at the year over year number, were comparing that to the Third Quarter of 2018 and thats when tesla finally figured out how to really mass produce cars and started cranking them out and flooded the u. S. Market with the model 3, two years of builtup demand. So after they sasheyated that demand they moved in february to start selling cars overseas. So of course their u. S. Numbers dropped considerably. I think some people will look at that number and say is this a warning signal that u. S. Demand is dropping off a cliff . You know, i just dont think theres a lot of evidence to support that. If you go to tesla. Com right now theres a twomonth wait to get a model 3, and thats i think the longest wait that theyve had since about this time last year. So i think its a signal. Its representative of whats happening as they expand overseas and kind of smooth out their production. But it was a record quarter for unit sales and i think were going to continue to see that ramp up as we see their shanghai factory going. Youre not just sitting there being a talking piece, youre actually doing the work and rolling up your sleeves and questioning 5,000 tesla owners. Generally, as you take a look at the first part of the survey, what is the key take away . So this is a massive survey. Its nothing like that had ever been conducted for tesla. Now that tesla is cranking out 100,000 cars per quarter what is the experience of owning one . And can they provide the kind of quality and experience of volkswagen or a toyota thats going to attract the next round of more mainstream buyers . So we started by look agget quality. Theres two kinds of quality. Theres the driving performance and hightech features that people love about tesla and people are just raving about those things and then theres the quality of manufacturing quality and precision. We measured that by asking first how many problems did you have with your tesla when you first received it . And we found that that rate peaked in q3 of last year, that we were just talking about. In that quarter youll remember thats when tesla famously created a whole new production line in their parking lot under a tent structure and tripled production. Since then, their defect rate has dropped significantly and is down 44 in the Third Quarter of 2019. As for the electrifyication of vehicles like tesla we saw plans this week for another auto maker embracing evs. On tuesday general motor laid out an aggressive approach saying the bulk will be spent on evs and not combugs engine cars. But is the demand Strong Enough to support a strategy shift . I asked adam who covers the auto industry. Here we are 111 years after the model t, the average car on the road is emits 5 metric tons of co2. There are 40 tons per second emitt by all the cars in the United States yet the worlds most valuable auto company, toyota, makes zero evs today. Its kind of a shock and then on the flip side you have the worlds most shorted auto Company Tesla that only makes evs. So something has to give and investors want to understand how to play that shift in capital. How does technology play into this . I think of early days when i wasnt sure if tesla was a tech company or automotive company. Where is technology . We think tesla is more of a Software Company and a hardwaresoftware Fusion Company that in an ideal world would be covered by a tech hardware analyst. So well take what we can get. We think the connection between tech and autos is when you see these large trillion dollar tech platforms like amazon, alphabet and apple that clearly have their sights set on the all theo industry not necessarily to make cars but perhaps apple wants to turn your car into an apple store. So as they try to look at this internet of cars marketplace, they are getting drawn in to that 40 tons per second in the u. S. Eco system, and its happening within cities where ride sharing vehicle might emit 25 tons in a year, five times more than the average car. So as tech firms get close to that topic and the shared and connected car theyre being drawn in and they have the resources and the capital and frankly the obligation to do something about it. Also in your other latest report in october of 2019, you talk about within the u. S. Were down year over year but up year to date ins of u. S. Sales. As you look out into 2020 and beyond paint a picture for me. Where are we . Is there demand . We think the stock market is still defining ev adoption through the completely wrong lens. Theyre looking at it through the lens of wealthier people buying cheaper and cheaper teslas in a suburban community for your home. Like the Retail Experience of personal ownership. That is going to grind along. I think that your segment before tom i believe who did that 5,000 survey was absolutely spot on with his observations and conclusions. But we think that where the stock market is moving to now, in terms of analyzing ev adoption, its fleet and its shared vehicles. So in order to make the large shift to get to 2 adoption in the u. S. To 10, 20 its going to be the regulatory purview of a dense Community Like a city going after logistics, taxis, shared mobility fleets. Thats how you can get the big chunks and again thats where the money is. Thats where the Business Model can make use of ev infrastructure and use data and software to solve the problem instead of just leaning on the 100yearold legacy system to do it. Thats getting blood from a stone if you try to do that. Now, in china we got a glimpse this week of how the ongoing u. S. China trade tensions and pro democracy protests in hong kong are weighing on the travel industry. Chinas leading Online Travel agency and parents like trip. Com has seen trips decline as result. People probably still will travel but maybe instead of traveling four times a year they might reduce to three times a year. Maybe instead of traveling long haul it might be traveling to asia within china. But i think travel for middle o high end customers almost is a natural during their holidays, new year, or breaks. Is growth being weighed down by this weaks in in the economy . The hong kong situation, es, it has a negative impact with top line. But i think when one time kind of thing. So we will see through it and still make a strong investment in the long term. How would you crark tries the full impact of the trade war on your business . Im very hopeful that the leaders from both countries will have the wisdom to focus on our shared interests. And theres so much things we share together. And maximize our shared interest. Only then i think both countries will be benefiting from our collaboration. We know of course towards the in hong kong and out of hong kong has been under significant pressure. Can you quantify for us how it ctrip . Ed out for the onetime impact we roughly estimated is around 5 of our total revenue. When do you expect that to turn around . Hopefully the area will be stabilized very soon. So again i think both overnment and people will look into the future, look forward, what is the best for hong kong. A big focus i know recently has been to grow in smaller cities in china. How much success have you had there and what are your targets for growth . There was one target i was seeing an additional 50 revenues coming. Are you close to meeting that target . Correct. We have about 8,000 Offline Stores, and the growth empowered by these Offline Stores is tremendous. Also put a lot of effort in the third tier fourth tier and fifth tier cities. So far the growth for lower tier cities is more than 50 year over year. So were confident in that. Coming up, part of bloombergs exclusive interview with facebooks coo, what she has to say about the social Network Giants policy. You cant mention facebook without mentioning the scandal of 2018. We hear from one of the central figures to immers from those events. Her comments on personal data and her new mission. Thats next. Hanging over en its head. Mark zuckerberg has said it will not ban political ads. In an exclusive interview after the Company Posted earnings wednesday, we got perspective of facebooks coo. Were not doing it because of the money. This is less than 1 of our revenue and the revenue is not worth the controversy. We believe in Free Expression, we believe in political speech and ads can be an important part of that. Where were focused is on transparency. We put out an ad library, we now announceds an ads tracker which means you can see any ad that anyone is running anywhere in the u. S. Anywhere in the world, even, if it is not targeted at you. That kind of transparency we think is really important to people understanding. Also talked about investing in protection. One of the things we talked about just now is the size of the investments were making prepared for 2020 working with election commissions all over the world hiring engineers, using reviewers, doing what we can to make sure people are kept safe. So when twitter decides to go the opposite direction does that make you question your decision or you still stand by the transparency . Mark has said on the call that we thought about this for years and certainly weve been thinking about it now. We fundamentally believe that political ads are an important part of the dialogue and can be important against incumbents, for new views. But we also believe that Free Expression across the board is something that we stand for as a company. And people all over the world are using that, certainly politicians are using that but people are using it and thats how you see our growth continuing. Talk more a little bit about politicians because its going to be a tough year in terms of regulatory scrutiny. Do you worry about talk of the Business Model being under attack . How do you see your role on educating those on capitol hill about this . I think we really have to help people understand that targeted ads and privacy are not at odds. We can do both. If youre an advertiser youre the Biggest Company in the world or youre the smallest company, and we have 7 million advertisers, 140 million businesses using our services. You want to show an ad to women in their 50s thats me, who live in california, we take the ad, we show it to that person, we give you back aggregated rultsdz. We can do very good ads targeting that makes ads good for people and helps advertisers reach the right person without violating privacy. Thats something i think we need to do a much better job of explaining. That was part of our exclusive interview. The Facebook Cambridge anlit ca scandal of 2018 shows us just how vulnerable our personal data is on line. One of the people at the center of that at that time was whistleblower Britney Kaiser has a new role and mission. We caught up with her at the sooner than you think tech conference in new york this week. Since becoming a whistleblower i have sought to explain to people exactly how important their data is. It is now the most valuable asset on planet earth, more valuable than oil and gas, and on a day to day basis this is being taken from you by companies all around the world making a multitrillion dollar industry off your most private information. That sounds a little gloom and doom when people think they cant get their privacy back but the truth is people have agency. Theres a lot of things we can do on a daytoday basis to protect ourselves and legislators and regulators are finally listening. There are fantastic laws that have been introduced that not only can protect the head of the next elections but make sure we live a more ethical digital life here forward. Weve seen california pass laws, working with wyoming. But do you think p. R. Is something that facebook has pointed to and europe is looking at some sort of blueprint. Where do you think legislation is leading the way . I think the most important is it recognizes that your data is your property and therefore tough right to transparency. If they want to continue to use it you need to opt in. Transparency is the most important part of this conversation which is why im really excited that the state of california has implemented a version, that is going to come into effect in january. Also governor newsome in the state of california has introduced the data dividend law which means do companies not only have to tell you what theyre holding on you but give you a cut on that. Theres legislation put forth by senator ed marky which means we have to opt in as a nation. Right now everyone is opting in, which is the opposite in europe youre pree opted out. Snow senator mark warner has an entire package of legislation that demands everything from transparency and consent to banning negative use cases of your data and malicious algorithm that put hatred and vitriol to the top of your news feed. Its interesting that at the same time legislation is being enacted were seeing the skps themselves react in many ways. Facebook announcing they are having more thirdparties fact checking. The amount their spending on security. We see google moving more with you tube did. What do you think about the steps being taken by the companies themselves and whether they go far enough . I think that the investment that facebook is currently making into stopping foreign intervention in our elections is incredibly important and direly needed. Unfortunately we didnt have those protections in 2015 and 2016. Unfortunately what facebook is knock recognizing is that the greatest threat to democracy is domestic. I think that decision a few weeks ago could not give the same Community Standards that you and vi to abide to to politicians is not only a massive threat but will continue the problems that we saw in 2016 where everything from incitement of violence, acial hatred, sexism and Voter Suppression tactics were used and aided. Industry up, crypto big wigs descended on San Francisco as part of block chain week. We hear from the coin list ceo who passed a new big Tech Industry backer. Details next. This is bloomberg. Security, economics, and products. They were all part of San Franciscos Second Annual block chain week. The event was a whos who of investors, businesses, academics and even regulators. Coin list among those attending. We are building an exchange called coinless trade. We have done primary offerings for new token and today were expanding it. Historically when youve run these primary sales youve gotten these tokens afterwards and need to move them to an exchange. Imagine if you bought shares in ipo and had to move them to an exchange to trade them. Doesnt make any sense. Were taking sales that weve run the primary four, put them on the secondary exchange and letting people trade them. You said you are compliant. In this world what does compliant mean . A lot of things and there are a lot of agencies that have stake. The s. E. C. , all these different agencies are looking at this space and you have to make sure youre abiding by whatever regulations there are. Trading crypto currencies, nonsecurities assets so you have to be compliant with whatever regulators are looking at. We look at what theyre doing and have to be careful. When we talk about being compliant i would be remiss not to bring up libra. They said they would not launch until they had approval. What are your thoughts . I think a great thing for the industry. Facebook has more reach than almost anyone in the world and theyre going to expose a lot of consumers to the idea of crypto currency. Once that happens its an open market and people compete for market share with libra. I think there are upsides and down sides to the details but at the end of the day they will expose a lot in this industry. How is that Regulatory Environment . Libra clearly has struggled to get people onboard. How is the Regulatory Environment shift sng one big piece touf look at is facebook is not looked at kindly in d. C. For a lot of reasons, and a lot of that is tainting the discussion around leebra. Some of the pushback is not specific to leebra but more about the issues that facebook has had. But there is good news and this has gone largely unnoticed. In the last couple of weeks theyve started to talk about in public speeches, about the idea of a safe harbor for crypto tokens that you might be able to carve out certain with certain attributes and allow them to be traded more freely. So you think by the fact that were talking about it more despite some of the negative headlines out of libra is good for the industry because more people are talking about it. I think at the end of the day they will find a way to launch libra. There are hurdles but they will launch it, it will shift, it will reach millions maybe even more people and that will be a good thing. So funding environment, a private company. We talk a lot about private companies particularly we work in how they have just change it had funding environment and valuations. How is the funding environment now more difficult than lets say a year or two years ago . Theres a lot more scrutiny around Business Models. For a long time we were living in this eco system of growth at all costs. Today especially in light of the wework news over the past couple of months people are looking at Business Models. Its something weve been focused on because the crypto industry more than any other industry goes up and down. It has crypto winter and spring and you have to be able to survive that. For us being able to build a real business has been incredibly important for building. Your investors this time around want to see that more so than two years ago . I think for the most part. Paula was already an invester, jack looked at this. But we have a lot of investors and thats why theyve reupped their stake and got involved. That does it for this edition of the best of bloomberg technology. Well bring you all the latest in tech throughout the week. Tune in each day 5 00 p. M. New york and 2 p. M. San francisco. Bloomberg technology is live streeming on twitter. Check us out and technology and be sure to follow our global breaking news network on twitter. This is bloomberg. The u. S. Economy delivering stronger than expected jocks growth validating the economy is in a good place. As the United States and china look to close out of phase one trade deal. We begin with the big issue, an unexpected solid payrolls report. This is certainly a solid labor market report. Very solid report. Good numbers. Strong. Strong. Across the board. The jobs