Taylor how cyclical is tech hiring . Forecastedssion later in the future. Doesthe economy does well, text see some over hiring and when it doesnt, does it see under hiring . Is it defensive, or economic agnostic . You dont have as many Business Cycles to look across to see how modern Tech Industry does. Certainly doing the tech bubble, you had a huge run off at the time. It was recently that we started to reach the Employment Level things focusing on the tech sector. The cyclicality matters. It matters for every industry. But tech is doing its own thing as well. Taylor i have to ask, where are the female jobs . Adam they are throughout the Tech Industry as well. Every industry is working hard to find more people. They are going to have to hire men and women as well. Taylor adam, thank you for joining us. Adam thanks for having me. Taylor switching gears to the realm of videoconferencing, zoom video started to celebrate one of the tech ipos of 2017 that went up but after a strong thirdquarter and raising the full revenue outlook, the stock has been tumbling. It is down nearly 10 over the last few days to tell us what is going on in new york. Is Solid Earnings good guidance . What happened with the stock . Lets be honest here. The magnitude of the thirdquarter earnings seems to be pretty big. Obviously, wall street was not prepared for the magnitude of which it was placed on the prior quarters. One thing the market and analyst discusses is you can tell this is a what have you done for me lately type of industry. One thing investors want to see his continued growth, especially as it seems like we might be coming into a recession as well. Taylor did it seem like expectations coming into this were just so high that nothing was going to satisfy analysts . Kamaron that is the sad thing about it for a company that is as good as you nvidia. They had a really good ipo in april. One thing investors wanted to work is stash the cash. Definitely. Superhigh that it was going into the earnings report. Taylor lets talk a little about the fundamentals of the company. They revived their full year outlook higher. What is driving that . Kamaron it is definitely revenue and their whole recruiting process. That is one thing the ceo spoke about on the call today. A really big growth driver for them. It seems to be more traction with the larger Enterprise Companies. That is anything for zoom video to figure out. How can they find their niche in this market as they compete against cisco or microsoft but still knowing consumers are using facetime and skype . Taylor you know, despite some of the barest commentary today, analysts overall remain pretty positive on the longterm outlook for the company. What do you see as the longterm opportunities . Kamaron spoke today about across the several catalyst. S. Before we get to the catalysts, one thing the analyst spoke about his wealth evaluation. They revised their estimates aggressively, so that way, the valuations kind of makes sense for what is coming up. Taylor i have to say, it is one of the few ipos frankly that managed to do well. Any sense of what is selling this Company Apart from some of the other launched ipos we have seen . Kamaron just the brand itself. Zoom video comes off as cool. That is the thing. Are they marketing to everyday consumers or something that is for Enterprise Companies . Spoke about the model working for them. Another question that came up on the earnings call, it seems to be going well for them. Taylor final question here. Who is the competition to take on this cool company . Kamaron we have to think about the big players. We have cisco, microsoft, adobe. I saids see microsoft. Ring central as well. Taylor wonderful. Thank you for joining us. Now, tmobile is preparing for a crucial battle over its sprint deal. The fight begins monday in a federal court in manhattan. A judge will weigh arguments to block tmobiles proposed 26. 5 billion acquisition. The states say it will raise prices on consumers by eliminating competition in the wireless business. Tmobile says by combining with sprint, it can reduce costs and lower prices. Coming up, we will get the as it scoop from huawei battles the u. S. Government. Our conversation with the chief officer is next. If you like bloomberg news, check us out on the radio. You can listen on the bloomberg app, bloomberg. Com, and in the u. S. On sirius xm. This is bloomberg. Taylor now to a story we are continuing to follow, huawei versus the u. S. Government. On wednesday, we reported how the Chinese Telecom is suing the u. S. Communications commission in a fight for greater u. S. Market access. On wednesday, their chief legal officer made huaweis case to reporters. Let me be clear about National Security dangers. Politicians in the u. S. Say they are very concerned about theseecurity and we share concerns. Banning a company like huawei because we started in china, this does not solve any cybersecurity challenges. Taylor joining us now from washington, huaweis chief security officer. Spend theask, why time and money suing the fcc when the u. S. Is such a small market for you guys . Well, we are really sorry we had to do it. It is disconcerting. This action they took is beyond the pale. They have ignored the s,nstitutions, the statute due process under the statutes, and they have not followed their own president. We are able of law country, but this commission has not acted consistent with the law so we were forced to take legal action. It is not about our ability to make money in the u. S. We want to protect our customers and want to help serve over 300 suppliers for which over 40,000 jobs depend. Taylor so you dont think this has been an outdo distraction from focusing on some of your bigger markets like europe or asia . Andy we are in 170 countries. I have been to 26 countries. I went to a small country in europe. Only 2 Million People there. We are about digital inclusion, about bringing the benefits of technology to the underserved. Half of the worlds population is underserved. That is what we are really about. Taylor you mentioned some of the u. S. Suppliers. Some of those received the right as well to start selling back to huawei. Do you feel in your opinion that is a fight that you one in that case . Won in that case . Andy we dont think of it as winning permit although it will be difficult if we cannot broaden the companies. We will be ok no longer. Our execs are not going to lose their jobs. But we think there is a greater likelihood a lot of americans will lose their jobs. We believe those jobs are really a pond in the u. S. Trade war. It is really a necessary and not related to National Security. Those companies are not allowed to sell to us. Taylor so you would like to see the huawei National Security issues separate from the trade war. Andy well, we believe the issues related to security, and i participated in meetings at the United Nations in new york on tuesday where we are talking about what is necessary to promote a safer cyberspace. It requires a joint responsibility between government and private companies, telecom operators, and equipment operators. There are sophisticated factors. We have to make sure we test everybodys product, test the code, hold the countries and governments accountable to do the right thing. That is the conversation we would like to have with the u. S. Government, who unfortunately are not willing to talk with us. At least we can discuss those issues with the United Nations this week. Taylor what do you say to thele with concerns over beijing government . Andy at least five nations in the world have the ability to hack into everybodys technologies and products. So to make america safer, we have to make sure mechanisms are in place that govern the telecom and operators, equipping suppliers, regardless of where they do business, regardless of where they are headquartered. We are ready to put in mechanisms to guarantee the u. S. Government our products are not back to us from the chinese government, to guarantee the employees and the responsibilities, that they are not doing anything improper. Have been proven. Nokia has been allowed to do it despite their deep ties to china. We want to have those discussions. It is not about trusting anybody or putting mechanisms in place to guarantee we are safer. Taylor can you guarantee they have not turned over data up until this point over to china . Andy well, we can guarantee going forward. Thera lot of folks forget the equipping vendors do not sell the equipment. There are very strict requirements, as there should be. The equipping vendors who were hired to update the equipment do so in a way under very controlled supervision. For example, in the u. S. , we only use specially configured laptops. We need written permission every time we will have access. Every keystroke is recorded. So the customer has full transparency on what we access and what we do with it. Those are the kinds of guarantees that need to be in place for everybody so we have a safer cyberspace. Taylor you said you would like to have discussions with u. S. Administrations. Have you had any contact with the administration or other federal agencies . Or do you feel like you have been shut out completely . Andy we have been shut out. When you look at the independent federal communications commission, their rulemaking, they are supposed to hear from the people affected. They are supposed to follow their own rules and own president s. We want to have conversations with the u. S. Government. If it was not for the u. S. And china trade war, i think we would be having those conversations, but we are a pawn and thousands of american jobs are in the balance, and it is a shame. Taylor are you will read other european nations are considering the way huawei or zte the u. S. Is . Andy the u. S. Government has been putting pressure on our allies and countries around the world. You saw then Prime Minister theresa may of the u. K. Angela merkel of germany. They said the u. S. Government has given no evidence of cybersecurity wrongdoing by huawei. What i am encouraged by and what we are encouraged by is what the European Union is doing with their 5g risk assessment. They want to have mechanisms to have a comprehensive approach to address the most significant risks in cyberspace using international standards, recognized testing, independent testing, including code review. That is the kind of thing that is encouraging. Maybe as those efforts progress in europe the u. S. Can take some lessons from that so we can be safer in cyberspace. Taylor a conversation that will indeed continue. Thank you for joining us. Andy youre welcome. Taylor coming up, citi is expecting a strong Holiday Quarter for apple and raising its price target for the company. I will talk to an analyst on the move next. Bloomberg technology is livestreaming on twitter. Check us out. Be sure to check out our Global Network on quick take on twitter. This is bloomberg. Taylor apple price target was raised to 300 from 250 from citi. Strong results in the companys Holiday Quarter. The pricing strategies and recent demand trends were factors. This holiday could be better than last year. Last christmas, apple preannounced after january, in fact it was january 2, it was a negative preannouncement the First Time Since the iphone launched, which was over 12 years ago. A remarkable, terrible, disappointing quarter. Some of the hottest selling products are the wearables. Apple watch and the air pods, they are selling extremely well. We believe people will be surprised by the results driven by those items. Taylor i want to talk about apple. Their ability to pass on the costs. What is their ability to raise prices on the consumer when it comes to the iphone . Jim great question. I got to tell you to be honest when they hit 1000 for an iphone, that was the ceiling. They saw a slow down once they hit 1000. That, the reality is what they are doing is packing more and more features into these phones. Things like memory, screen content, capacitors, resistors, all those things typically come lower in price. Instead of making the iphone cheaper and less expensive, they pack more quality into it so that consumers can have a better experience. They try to keep their prices generally stable, except the apple watch now, the older version, is selling below 200. Teenagers want this left and right. These lowerpriced items are starting to appeal to the younger generation. Taylor you mentioned the watch, wearables, services. I want to show you my terminal here, which is the Services Revenue growth. We have seen it decline a little bit. What do you need to see from the company to get the reacceleration of these Services Revenue growth . Jim there are two things we are looking at. First, apple arcade. This is a studio for me or you as a parent you can look at and put in different parameters for your child. Do they want education . Do they want more racecar, motorcycle crash games, violence . They can plan parameters. Over time, they can continue to change the parameters to be more loose. That is different from going out and buying a single subscription to a videogame your child may become bored with in three or six months. We are looking for apple arcade. It was launched in september. Everybody got a free 30 day sets cushion for free. We will see how people renew on that. The second thing, apple tv. A lot of content and things coming up. So far, they have not been overly successful with it. We are watching this closely. But it will be harder to track because when you buy a new iphone today, you can one year of free subscription. The revenues from that will come from a year from now. We are monitoring it. It is important. It is decelerating, most because it is a law of large numbers, about 10 million a quarter. Taylor i want to talk about potentially december 15. If it hits, how much does the stock fall . Jim tariffs are bad. They are bad for apple. They are back for technology. It is basically a tax the government has put onto the corporations, who will likely pass it on to consumers. Taylor will apple pass it onto the consumer . Jim i dont think they will. I think they will bite the bullet and shift production to lower cost areas that do not have tariffs. India, that will be the next generation hub. Also, mexico, guadalajara, vietnam. These countries are going to benefit less so than the united states. Taylor will they do that in the next two quarters . Jim they cannot do it that fast. Great question. To employ an entire dorm of workers, thousands of people, it cannot be that fast. Taylor you have been doing it for 20 years permit i could have made this conversation go on for 20 more minutes. Jim, thank you for joining us. Jim thank you. Taylor coming up, we go over the top tech stories of the dramatic exit. How the company will perform under leadership. That is next. This is bloomberg. This is Bloomberg Technology. Taylor i am taylor riggs in San Francisco and it is time to go over the top stories the week. At the top alphabet technologies founder sergey and the other founder step down. Here to discuss, we are joined by bluebirds Sophie Alexander as well as Bloomberg TechnologySenior Executive editor brad stone. Every analyst on the street said this is a great thing, they are consolidating. We now have seen our pichai, clear man in charge. Try sundar pichai. Larry and sergey have been receding from public view. Rollback ofesent a the alphabet structure, putting one person in charge. I think the streets reacting the way they did because they think to dart will bring some discipline to those far off debts. Most of them pretty well but not a lot to show for the others. As we transition from the business back to the iunder, one said frankly if were worth 50 billion, i, too would just take a leave and just had an island somewhere. You have been following them. What is their story . Actually 60 billion. And they have seen a pay bump. In the past few days after the news, shares rose 3 . That means one point 6 billion for each of the founders, larry page and sergey brin. That does not mean that much because it is all still held enough about stock. It is only going to mean money they can spend if they start selling stock, which is what we will be watching. Taylor we talk about now, he has taken over alphabet and google. What will be the biggest task as we move forward. Probably to keep his eyes on the ball. Google still represents 99. 9 of alphabet cells. Of alphabet sales he has more response ability. Yet the problems that youtube, keeping advertisers in the google ecosystem as amazon and facebook make headway. Those are still too dark and ties core concert those are core concern. Also voices with the powers to make himself known. That has been destructive to some of the corporate goals like doing business with the corporate federal government. Taylor this brought up the broader question of all these Big Tech Companies that do not still have their founders. They have been found passed along to the secondgeneration. The founders billionaires and moving on. What we know about who is gone and he was still left . Ceo andurse Apple Microsoft ceo, neither our founders. Now you have google. It is interesting to watch. From the wealth perspective it is interesting. Obviously the seals are still paid well and have a substantial amount of stock. But the real money obviously the ceos are paid well and have a stock but the roman is in the billionaires. Taylor the second story of the week is tesla and elon musk. We will find out as early as friday, perhaps next week, if elon musk will have to pay for a disparaging a off british came driver cave diver. What we know about how the case is going so far . The jury is out now. Continue with the theme of the travails of wealthy people, elon is saying perhaps he does not have the cash for the play out payout. I think his lawyer was hypothesizing that damages could go into 100 million or 200 million. Elons wealth is tied up in spacex and tesla. This was two guys insulting each other on twitter. So it is unclear how the jury will come out. Taylor and let me bring you in here because it was notable and elon musk had a headline who semiam worth about 20 billy dollars but im cash poor appeared where is his money 20 billion. . The bulk of his wealth is in spacex. Is a private company and it is hard to sell the stock and get that liquidity. He is cash poor. Taylor i move onto to the third story of the week, it is about twitter. Not applicable as not about the political ads. Jack dorsey sending a tweet that he might be spending six months to six three months to six months in africa. Spend three to six months in africa. He was in africa and has been impassioned by the fintech and opportunities for cryptocurrency there. He sent a tweet and said he might spend three months to six months and see her. It is worrying to investors. He is already running two companies. He is the busiest man in the world. Now he will spend six month on the road during an election year. But if anybody can pull it off it is jack. He has pulled off his to come any act pretty masterfully. Taylor and he brought up it is an election year. At least it is not facebook or google which is running political ads without fact checking. At least twitter is staying out of the game. Does that relieve some of the concern for investors that at least they are not in that game . No because twitter is already ground zero for this campaign. And the president is very active. He has a lot of decisions to make and no clear number two when these things do cross the plate. Taylor and i want to bring up a story we have not been we have been talking about. It is from tesla. That elon musk beating defamation lawsuit over that insulting tweet. Spread, i know this is breaking us for us all. A jury has found in favor of elon musk in the defamation suit. Wow, amazing. Taylor any early thoughts . What he said was inappropriate, perhaps indefensible. But we live in an age where people are saying things on twitter all the time. Elon has already carried the day or this is something he peeled off. They were insulting each other anyway. In the end it did not amount to hurting the plaintiffs reputation. Taylor again, youre hearing it here. Elon musk is beating the defamation lawsuit over and insulting tweet. The jury finds in favor of musk in that defamation lawsuit. We will bring you more headlines as they come. Alexanderss sophie and blumbergs brownstone, thank you for joining me. For the first time brad stone. Uber disclosing the number of deaths and assaults for the first time. This is bloomberg. Taylor netflix will spend 420 million this year and next to but is more content in india. It is one of the biggest and most crowded markets for the World Largest paid streaming service provider. Netflix is battling with disney and amazon prime for market share in india. The companies are offering relatively cheaper packages to lure paying subscribers. It is something different, in a country used to free youtube videos. And uber found more than 3000 claims of Sexual Assault in the u. S. Last year. The ridehailing Company Reported thursday, publishing for the first time the volume of deaths and misconduct on its system appeared to learn what this means for over, i want to bring in, white, a Senior Research analyst. Tom, thank you for joining us. What did this report mean for you and the fun metals of the company today . The fundamentals of the company . The longerterm applications are, it will take us it will take time to understand how this might impact coopers round and its is in a relative to left this might impact coopers brand ubers brand and positioning has doneo lyft. Lyft a better job positioning itself as a socially conscious brand. Was morally, this the correct thing to do and also good for business. Shining a bright light on issues like this may impact the stock in the near term and may not do much to help sentiment, but it is probably good for the business over the longterm. Theor is safety some of biggest overhangs on the stock right now . I do not know that i would say it is one of the biggest overhangs paired i think broadly speaking, how regulators view and look to regulate these businesses as argie late maybe the Biggest Issue overhanging is arguably may the Biggest Issue. Quickly lyft grew so and created these Large Businesses for regulators could keep pace, in terms of how to oversee them and regulate them and legislate them. Youre seeing them that in some of the statistics that maybe the regulators were not able to keep pace in terms of keeping track of what kind of drivers or getting involved with the platforms. Regulators are starting to catch up. We saw that in london which told over there not interested in renewing their license to operate. Uber is appealing that decision. This catch up on the part of regulators is one of the main ares that uber and lyft facing. Taylor we want drivers and passengers to feel safe in an uber or a lyft ride. Aer talked about over billion rights taken. Has it impacted the fundamentals, have you seen a drop off in ridership . Are you confident that the fund metals of the company are still intact . Amounttive to the total of rides we are talking about a very infinitesimal percentage arrives in which these happen. We do not have comparable data for other modes of transportation, like taxis. So it is hard, in isolation, to understand what these numbers mean. Worthive us two years of data. It is worth 20 out that the absolute number of incidents, salts increased in 2018 it and versus 2017 paired but the rate of assaults declined. Inthe trends are happening the right direction. Generally speaking, uber and lyf t should be considered quite safe ways to get from point a to point b. We should continue to monitor these statistics to see if they can continue making progress. Taylor i want to push the story about uber into 2020. They are appealing the decision from the london Transportation Authority which bans them. How much of an overhang is that, or how worried are you about . Hat , the london issue is worrying but while uber is appealing that can operate status quo. So we do not expect an effect on their performance over the next several months. The appeals process could go on for several quarters or a year or longer. London is a big market, one of the top five largest markets for uber globally. If they were unable to operate there, it would certainly cause estimates. Duce their that said, i do not think there are many large minas apologies or large cities out there large municipalities or cities out there that want to gain a reputation for stamping down innovation. For any large city globally, being a place where Technology Companies are able to operate at scale and employ constituents, is an important consideration paired i presume that over the course of the appeals process, uber will be working double time. But they were working double time when the process flared up with london a year ago. Be workingrobably trouble time and come to some sort of solution that enables uber to operate. Taylor we talk about more regulation and we are talking about here in california facing a b5 which could go into effect in january. Any idea if uber has to treat those drivers as employees instead of contractors, what impact does that have on the stock . At a minimum, regardless of as writtens ab5 now or a middle ground of the legislation being agreed to, by the legislators in california, i the Ridesharing Companies do think costs and expenses will rise for the Ridesharing Companies. And i do think the two sides will hash out some sort of agreement that incorporates but enablesb5, that Gig Economy Companies to pool risk or added expenses. But netnet costs are set to increase by potentially as much as 25 ish, the penny what version of the legislation goes in. I think youll see Companies Like uber and left kim effectivelyft pass costs onto consumers in the form of higher prices. The question is whether that will impact the attractiveness of ridesharing for consumers. Will it reduce the number of use cases where it make sense to take in uber versus walking, or taking the bus . Ery important issues it really speaks to how big the Addressable Market for these types of companies, and how transformative they ultimately could be. So, something to watch. And writer classification is only one area where Ride Share Companies are facing potential Cost Increases type catalysts. Classification is only one area. In some companies some countries like india you are looking at Commission Percentage as well. In new york, the city is adding a small surcharge. A series of different challenges. Taylor we are well aware of those. Tom white, thank you for joining us. Of dollars worldwide to russians, cyber offense. British authorities are accusing a Russian Group called people corp. Of some of the worst fraud schemes of the past decade. Joining us to discuss, what is corp . Ll corp. Evil is a group of hacking criminals and we are watching them closely as they u. S. Government to private of justice and treasury unveiled sanctions and charges against them. To hacke used malware in and steal tens of millions of dollars from banking and Financial Institutions around the world. They have targeted dozens of countries. The sanctions and charges the u. S. Revealed suggest that the u. S. Is focusing on them and trying to do some kind of deterrent to prevent this malware from continuing to spread. Taylor well be the effect of the sanctions imposed this week . Researchers say sanctions are good thing. They call out the hackers. They limit their ability to travel. But, course, there has to be real consequences on these kinds conductingwho are crimes at these big scales. Researchers say it is a good ofrt but not finish the job bringing hackers to justice, according to many experts. Taylor today have clear ties to the russian government . Il the allegedly are of evo; corp, also worked for the Russian Intelligence Service according to the department of justice. Researchers say there is a fairly common trend where hackers who work in these criminal groups are also tied to nation state governments. So this follows a pattern of ties between criminal activity and government activity in cyberspace. Taylor i want to talk about some of the other russian style tactics we heard about this week. There was a Disinformation Campaign in the u. K. Ahead of their election. What else we know about that . What is fascinating here is that a Cyber Security firm discovered that the Disinformation Campaign that occurred in the u. K. Ahead of the election very much resembled a tactic that russia is accused of using as it spread disinformation elsewhere. These researchers are tying the spread of what our leaked trade documents in the u. K. , and their application on the internet, to other tactics we have seen from russia. Why that is especially interesting to people studying cybersecurity and looking at elections, is ever but he is on alert, trying to see, what is russia going to do ahead of the 2020 elections in the u. S. . ,nd see what they are doing where tactics are being used in the u. K. Ahead of the election, gives us some indication, according to the researchers who published the finding. Taylor thank you for joining us. Coming up, the robots are coming for the Banks Highest paying jobs. We will have details next. This is bloomberg. Taylor robots in finance could wipe out some of the highest paying jobs must so says an expert in machine learning. , i have toe details wonder how many jobs have been cut so far and how big a deal is this . Housetimony to the Financial Services committee today, a professor said it is tens of thousands of jobs cut around the world for execution traders. Those are the traders who plug in the trade on the system and execute it. That is a lot of people. On top of that, he says that the jobs that are really under threat are the ones for people who are say, modeling portfolios, modeling risk and also doing roles like, some of the most some of the more basic tasks on wall street. This will eventually go up the chain to more complex tasks as well. Taylor it was notable here that lawmakers were also asking about racial and gender bias going on in ai. What were experts say about that . The experts were saying we have to be cautious, especially in the early days of using ai within financial systems. So, what they said is that ai can encode our current biases. And it can encode biases around race and gender into systems. But it can also be used as a tool to counteract biases and to ask systems more fair. So it is really important for lawmakers and to make systems more fair. So it is important for lawmakers before they start to bake ai into their workflow. Taylor how do regulars and lawmakers respond to this . Broadly, the presenters to the house Financial Services committee talked about the fact that the jobs in the next 10 years are going to change dramatically. I know you are a cfa member and the Cfa Institute actually said that already three percent of its members expect their jobs to be significantly different and theres ahead. 43 . A lot of people who may be made obsolete include the sales agents, traders and performance analysts within financial markets. When it comes to reg leaders, that is really important to think about how those when it comes to regulators, it is important to think about how those jobs will not be around anymore. It is also important for regulars to keep up with these markets. It is like a needle in a haystack for regulators to keep up. The haystack gets beggars. Andhe haystack gets bigger regulators who need to Police Conduct in this market have a harder job. Taylor computers have been doing electronic trading, wanted tate of traders have been writing code and using robots. How is this how quantitative traders have been writing code and using robots. How is this different . Most of what we hear is how far about functions that are simplistic, like the back office being taken into ai. Those functions we know are most likely to be automated. The thing that is interesting about the studies of this professor is he is saying some of the higher level, expert level tasks can actually be generated and done based on ai. You do not need one expert trader. You might need a bunch of coders who do not really know financial markets, to tackle a tough or thorny problem. And then that trader goes away. Taylor thank you. And that does it for this edition of Bloomberg Technology. Bloomberg technology is livestreaming on twitter. Technology and be sure to follow our global news on twitter. Ktake this is bloomberg. David why is it that wall street doesnt Value Airlines as much as you think they should . Ed Warren Buffett said you guys are the chicago cubs of the business world. You had a bad century. David initially, you went to fritolay . Ed i consider that my postgraduate work. David what percentage of people lose their luggage . Ed we never lose. We call it mishandled. David mishandled. [laughter] would you fix your tie, please . David well, people wouldnt recognize me if my tie was fixed, but ok. Just leave it this way. Alright