Warning against seating Telecom Infrastructure to china. We get reaction to that. And tesla turned our heads this week. Look back at some of the biggest stories in tech. To our top story, u. S. Equities headed into the Holiday Weekend on a positive note after the release of steady figures for retail cells and with investors continuing to weigh contrasting data from china on the spread of the coronavirus. The s p 500 closed at record high after swinging between small gains and losses in fridays session. To discuss todays Market Performance and technology we are joined by laura kane of ubs. To kick us off, i want to take a look i am showing from my terminal. As you know, the trade of 2019 was u. S. Versus the rest of the world. I was speaking with david kelly, the global cio of jp morgan Asset Management who was trying to make the case for over waiting International Equities. Are you still trying to overweight International Equities or do you think it is u. S. Versus the rest of the world . Right now we see the u. S. In the lead. Given that there is this search for safety in light of the coronavirus. He came into the year, the set up was looking good for emerging markets. We still remain overweight. The rationale being that we still think once we get past the coronavirus fears, we hope most of the impact will be contained to the first quarter. Then we should see a recovery in the back half of the year. Once we get the recovery, we still think the set up for emerging markets looks good , aen the cheaper valuations widening growth differential relative to developed markets, some tell whens we see in terms of the ecommerce space and infrastructure and health care in those markets. Taylor we havent talking a lot about the coronavirus. Has anything from some of the markets warnings are getting about supply chains over there changed the way you are investing . Not at this point. We are sticking with our allocations right now. We are sticking with our overweight to emerging markets. Up till this point we see that it is mostly a demand story and concerns about a pullback in demand. If we do start to see more impact to International Supply chains, and if this does drag on longer, i think that is where we see the Downside Risk to the market. That is the situation we are monitoring closely. We have heard some Manufacturing Companies and some Ecommerce Companies mention some of these impacts to the supply chain. I would say that is a key rest. Seen, i think we only matteo risk to the downside in the event that the virus does heighten is not contained within the first quarter. Chartant to show another inside my terminal. So often we have talked about the rotation between growth and value. Yet Growth Continues to be leading, shrugging off concerns that growth here would return back into a value trade. How much of the growth outperformance has been based on big tech . Growth continues to outperform. A lot of it is driven by those Big Technology stocks. Right now, we have initial allocation between growth and value. Because we do think that Growth Stocks are starting to get expensive, especially if you look at tech valuations are at 11 your highs on a relative basis to the broader s p 500 per we do see that those valuations are getting quite high. At the same time, Growth Stocks do tend to do well later in the cycle, which is where we think we are. Taking those pieces together, we have a neutral allocation between growth and value. Davis analysts have been traditionally parish, some of their concerns they highlighted bearish. Some concerns they highlighted where the concentration of some of these big tech stocks that make up the overall s p 500 rate you get worried about the concentration here of how much concentration is making up these major indices . Yes, it is quite an interesting time when you look at the top five names represented. About 15 of the s p and nearly 50 of the returns. I think there is some risk there. At the same time, there are real secular tailwinds to some of those companies we like. For example, we continue to be bullish on growth for ecommerce and Digital Advertising. Enduring trends there that we like, despite some of the more stretched valuations. Again, we have to pick and choose among the Top Companies but there opportunities we still find attractive. Taylor you mentioned stretched valuation, take a look at this chart i am showing. It highlights those stretch valuations you point out, mainly within chipmakers and stocks. Youre not treading at a forward pe basis of almost 20 times your near decade highs. Are you still a buyer here, particularly of tech stocks . The chipmakers with these stretch valuations . We are not at this time. We filled evaluations got ahead. F the recovery in semis that is not one of our preferred areas. There is differentiation a penny on which end market you are looking at. Have seen strengths depending on on which and market. Overall semiconductors is not one of our preferred areas mostly due to valuations. Taylor and you said you are underweight and technology in part along due in part to the valuations here. But you are overweight munications. Communications. Yes we are underweight in tech mostly due to evaluation. We do continue to like internet stocks. A lot of those tend to align with Consumer Services or the consumer dish Communication Services or the Consumer Discretionary sector. We internet stocks is where want to take our bets and if you look at the byways of a broad basket of internet stocks, they do look quite cheap when you compare them to other technology stories, whether software or semiconductors. Taylor some internet stocks i think you are referring to, some we have been talking about on the program, were facebook and alphabet. Those were some topics from the street heading into 2020, strong advertising Revenue Growth they were looking at for 2020. Yet the market felt disappointed particularly after earnings perhaps did not live up to some of the expectations. Have you been surprised at the lack of these Big Companies can meet these expectations . I would say we would not get too concerned over a couple of quarters of earnings. For us it is a longerterm story. If you look at digital of adising space, 50 spending hours in the digital arena. We see this as a very longterm a story. With the growth we are seeing in social media, search, even streaming, we do see a lot of big opportunity in the Digital Advertising space. Do not see this relate slowing down. We are not going to get too concerned about a couple of quarters of earnings and are focusing more on the longerterm horizon. Taylor i read to your seven page report on 5g infrastructure and owning the inevitable. Yes, we see that 5g is coming. Where we see the best price opportunity is on the infrastructure side. Those communication equipment providers. We think there is an underappreciated opportunity baked into valuations, versus the smartphone side, where we see is maybe theres too much enthusiasm in valuations that are not justified. We think 5g is definitely coming. The place you want to be is in the infrastructure space, Communications Equipment and the tower companies. The valuations that really do not seem to appreciate the big opportunity coming. Taylor i want to end when you talk about the themes for the next decade. Lets push it forward an additional 10 years. You highlight demographic change. How does that influence your investment thesis . One of the trends is aging. The shift into the balance of the working age population versus the older segment. This is going to have profound effects across the world. It is something we talk about in the u. S. With the aging of the baby boomers. Dashed ofdoes affect it daz have affects really has effects across the globe. Theres going to be greater demand for health care, tech and canst health care where you can especially Technology Enhanced health care where you can reach more people at lower cost. Also Article Services to take advantage of the Demographic Dividend in emerging markets, so making sure the youthful population has the education and resources to really contribute to growth in those countries, where they can take it manage of having a greater balance of young people versus old. Ofcertainly see this dynamic an aging population really changing the landscape over the next decade and beyond. Taylor things for the next decade, we will have to get back to break down all of those. That was laura kane of ubs. Thank you for joining. Now softbank will invest a billion dollars from its Latin America Fund this year. The Japanese Firm will focus on ecommerce, health care and syntax. Softbank raised 5 billion for the fund and launched a year ago. So far it has invested in 17 companies and to Venture Capital firms. Syntech. Coming up, the u. S. Hit huawei with charges that sound right out of a bond movie. We will get the response director from huawei to secure the officer next. If you like bloomberg news, check us out on the radio. In the bloomer cap, on bloomberg. Com and in the u. S. On sirius xm. This is bloomberg. On the bloomer cap. Bloomberg app. E this is bloomberg. Taylor u. S. House speaker Nancy Pelosis backing president trumps assessment of the threat posed by American Allies doing business with huawei. As countries allow wally into its 5g networks. Such an illconceived concession will only embolden xi, as to economic values, independence and national security. Taylor this comes after the trumpet administration is using a racketeering law comfortably associate with mob prosecution to claim the country has stolen intellect shall property for decades. The u. S. Is trying to persuade toies not to let huawei build every structure. Taylor furniture, spirit what firstke of ms. Pelosi i want to get your comments. What you make of ms. Pelosi and her comments joining president trump. That they can agree on anything is miraculous. It demonstrates there is an all of government approach by the United States to use every tool in its arsenal including bringing together 20 years of previously resolved civil issues to try to hurt while way. Is this hurts americans , while way. Way wasip theft, while not investing in its own rmd. Huawei. That made by you be why was stealing. Huawei is privates we cannot see the numbers. Can you talk about it stealing from other companies . Not become the worldwide leader in 5g by stealing other peoples technology. We have 11,000 patents in the u. S. Asterisk that 15 billion for research and develop men around the world and we will spend 20 billion this year. So one of the great things is, as a former federal prosecutor and former attorney, the United States courts are going to require evidence and not just braggadocio and repeated claims and trying to browbeat other countries into blocking wally. Huawei hasor in the past, huawei said it blames rogue actors from killing, when they got caught stealing a robot from tmobile. They say these are rogue actors. What can you do to alleviate concerns this is not orders from the beijing government . That these were indeed rogue actors whose goal ip . You have stolen ip . There are a lot of issues in your question. The issue you are talking about was a previously resolved civil case where the court found no malicious conflict conduct by wowing. Till by huawei still the u. S. Decided to bring that is a criminal case in washington. In the Western District of washington. We can prove we are not subject to the undue influence of the china Government Regarding who we sell are products to our how we service the products. States wouldd consider looking dispassionately at the potential benefits and consequences and potential Risk Mitigation to provide assurance. Taylor lets have some of that conversation now. What can you tell us about any interaction you have or have not had between huawei and beijing . We operate in 170 countries in the world. We have the necessary committee cases with governments in those countries. We strictly abide by the laws of the countries. But we are a privately owned company. Our records are open. Anybody can take a look at it. Youre not going to be forced by , and we have never been asked by any country, to steal data or implant backdoors. Has beenhuawei successful in europe and the you kate said they will allow partial access to help build out 5g and the United Kingdom says they will allow partial access to help build out 5g networks. Onthe u. K. Is using evidence which to make decisions to make sure the citizens of the u. K. Are safe. I just saw a major canadian and germany and the European Union are going to try to do things based on real facts. The china government is allowing european companies, ericsson and nokia, to compete against Chinese Companies because they see the benefit of competition. The United States could benefit by encouraging competition. And a pretty,s thank you for joining. Oracles larry fiercely competitive moist he can an edge over competitors including amazon. Allison is now making friends with his enemies and me el lison is now making friends with his enemys enemy. Support in a ton of Silicon Valley. What is the say bout ellison and trump teaming up . Is someonelison willing to do things his own way. He is also super competitive. Those play a part here. Trump has been, causing a lot of trouble for jeff bezos. Larry ellison and jeff bezos are competing on Big Government contracts. Theres a lot of tension there between oracle and amazon. On the other hand, Larry Ellison is someone who has supported kids in the past. He held a fundraiser for marco rubio. He has been who has supported republicans in the past. In blue Silicon Valley, he has supported republicans. Taylor he is going to host a fundraiser for the president in his homes and top contributors are expected to shell out 250,000. What is the goal of this and some of the issues Larry Ellison is try to tackle here . You know, i think if you are a billionaire, happy that probably trumps his policy agenda was lowering tax rates. From the outset of his administration. Then there has been this error spite over the pentagons jedi contract. Trump has criticized amazons bid for it. Has reportedly looked to screw amazon in the process. To the point of judges now until up microsofts amazon finishes its court case. Theres is everything from tax policy to these government contracts that the president could have sway over. Taylor are you surprised by Larry Ellisons support . Surprising,t is given how few Silicon Valley leaders are willing to come out on this peter thiel obviously spoke at the republican convention. The first time around. That was such a contrarian bet. Again,aid over and over talking about peter thiels decision. Now we are starting to look at it this time. So Larry Ellison is holding a fundraiser. If it looks like trump could sanders becomes the democratic nominee, where did these other wealthy tech leaders net out . Taylor and besides the highs in the technology leaders, who to the Employee Support . To behnology employs seem much more leftleaning looking at donations in the fourth quarter, Bernie Sanders got the most. Lisbeth warren is popular. Elizabeth warren is popular. They are donating and among the democrats they seem to support sanders and warren generally. Theave seen reports with planned fundraiser that there are oracle employees who are clearly upset he is going to host the fundraiser. Taylor our thank you to bloombergs eric newcomer, all things politics and the intersection of technology. Now tmobile has received and on a nod for its merger with sprint. Does that mean for spence owner softbank and other wireless carriers . Week, the show airs tonight on bloomberg tv and radio and available everywhere online. This week features ihf vicechairman dan juergen. We are looking at a big decline. In february, Chinese Oil Demand is more than 20 lower than it was a year ago. Yergen. World oil demand is lower than anticipated and we think it will be lower than the growth than other people think. Taylor an Illinois Company that rapidly expanded in the past two years to deliver packages for amazon is now shutting down operations in five states. Bear downcalled logistics, will let go 400 drivers after failing to meet the ecommerce giant standards. The move underscores the challenges amazon faces about while outsourcing deliveries to new untested companies, instead of traditional partners like ups and fedex. It is also a warning to delivery partners that amazon is willing to cut them off. Has clearedmobile to close its merger with sprint is great for both Companies Sources say, the Parent Company of tmobile Deutsche Telekom now wants to renegotiate the terms of the deal. How will the merger affect other carriers as well as sprint owner, softbank . Joining us over the phone to discuss is a Senior Research analyst, Craig Moffett. First are you surprised this merger went through . A little bit. We have been a 5050 odds and i think a lot of that street was the same place, to say there was no way to predict with certainty taylor we are going to hold you over and bring you back in a few minutes. This is bloomberg. When you rest on a leesa hybrid mattress, bedtime is no longer simply the time you go to sleep. Its time to switch off and catch up. Enjoy me time, and we time. 40 winks or 8 hours solid. The leesa hybrid mattress combines two technologies to give you deeper rest and rejuvenation. 1,000 pocket springs provide edge to edge support, responsiveness and comfort, while premium foams relieve pressure. Keep you comfortably cool and limit motion transfer. Leesas hybrid mattress is not only recommended by experts, experts choose to sleep on it too. Try it yourself in any west elm store. Or order online and well ship it to your door so you can try it risk free. The leesa hybrid is american made. Built to last. And, because Everyone Needs a place to rest, we donate tens of thousands of mattresses to those in need. Experience the leesa hybrid mattress. Right now, its on sale. Order today. Go to leesa. Com. Taylor this is bloomberg technology. I am taylor riggs in san francisco. There was news that tmobile is clear to close its merger with sprint earlier this week. We were talking about that and i want to thank our guest Craig Moffett for continuing to stay with us. Thank you. Talk to me again, are you surprised this merger went through . Craig yeah, i was a little surprised about the way the judge made the decision. I think i said before the break, i was sort of 5050 and so was almost everybody else in not knowing what the final decision would be. When you read the judges decision, it is a personal view of what he thinks should happen. But, i think that speaks to what it was so hard to predict. It is hard to decide or figure out what one person is going to decide in a case like this. Taylor i was reading through your note and you argue frankly that sprint needed this more than tmobile. What does this mean for sprint . Craig no question about it. Tmobile was going to be fine either way. It is good news for tmobile but they were going to be fine either way. For sprint, this was really a make or break decision. They would have been in very dire straits without it. Clearly good news for sprint, and therefore by extension, great news for their corporate softbank. Taylor before we get to softbank, what does this mean for the new tmobile . What does the new tmobile look like to you . Craig tmobile is in a very interesting position. Remember, tmobile on its own has been growing very rapidly in a very slow growth wireless market by taking share. This gives them an even better story to tell. Sprint obviously brings a lot of cost synergy. Thats nice to have for margins and that sort of thing. But it also brings a lot of spectrum and Network Assets that when combined with tmobile gives tmobile what will arguably be a real Network Advantage versus at t and verizon. For the first on that either of those companies have other faced a company that has had a Better Network than they do. Taylor you mentioned sprints Parent Company, one of the parent companies, softbank. Softbank really needed this as a win as well, right . Craig sure did. theyve had their share of tough breaks, shall we say, with wework and uber and brand works. They have taken one blow after another. So, it has been it has obviously been a rocky time for softbank. Had they lost this as well, it would have been a big problem. This is still a big piece of their equity value. They would have potentially had to take it in and take sprints debt under their balance sheet. Are now washed away. Huge win for muscle yoshi son and softbank. Taylor i have to bring it back to the consumer. What happens to my phone bill . Are my prices going up . Craig i suspect probably not. But look, theres a reason why antitrust analysis and hhi says it is usually not good for prices. This case might be different. Tmobile has some commitments under the Consent Decree to keep prices down and they will clearly try to take share. But, i think what the judge decided interestingly although, the judge did spend a lot of time deciding that he could read the motives and intentions of the various players with great acumen. But, with the judge decided was that price is not the only thing that matters in this market. That consumer welfare is also a function of the qualities of the networks, and this would give a boost to sprinttmobile in the sense of having a much Stronger Network that would almost necessarily force verizon and at t to invest aggressively in their networks, and that is good for consumer welfare. Taylor our big thanks over here to Craig Moffett of moffettnathanson. Now, the u. S. Federal trade Commission Just ordered Major Technology companies to fork over details on ways small acquisitions made during the last decade. The more sizable deal as seen as the target for the regulator, googles 1. 1 billion purchase of waze. To discuss this and the other top stories of the week, it is dan ives and with us, Bloomberg Contributor david kirkpatrick. I want to start with the ftc news. David, i was speaking to an analyst earlier this week and he set of the Big Five Companies targeted, facebook by and large is most at risk. Do you agree . David probably. I think facebooks behavior has generally been more reckless. So even though we dont know what they will find in such an investigation, my guess is they will most likely find questionable things with facebook. It is partly because this is the youngest company of the five and it is the most immaturely run, in my opinion. Taylor dan, your thoughts. After facebook, who else . Who else is most at risk from this becoming a real threat . Dan i think it is alphabet. I think this is a shot across showingin terms of Tech Acquisition is going to be a lot more scrutinized. When you look at facebook and alphabet front and center, apple has as well, i think this was looking back but even looking forward as the strong continue to get stronger in big tech. This is becoming a political football that is being tossed around across the beltway. Taylor i think some of the concerns are always around the big acquisition. You think of instagram, whatsapp. This ftc order is targeting those smaller acquisitions. Sometimes the smaller acquisitions are harder to break out. Maybe they are bought because of talent. How do you go back and break out the small acquisition . David i dont think we will see them requiring anything be broken up. Even analyzing the impact and hypothetically what would have happened if these little deals had not occurred is going to be really difficult. I think this is in many ways an unusual effort on the part of the ftc. I frankly dont know exactly what they are heading toward. One thing that it really does say is all of these companies have entered what is effectively a new era of constant scrutiny and greater and greater eventual regulation. Taylor dan, i have to ask. Why are we talking about antitrust instead of data privacy . Dan data privacy is going to continue to be the, but i think there, but i think if you look at what is happening right now, in terms of tech, you are seeing across different segments stronger and stronger. From an antitrust perspective, that is becoming front and center. Data privacy we have seen over the past few years, it is going to continue to be a focus. In terms of antitrust, the risk to faang names. That is very topical for tech investors going into 2020. Ishink this just shows m a going to be a lot more scrutinized Going Forward. Taylor i want to switch to another big story we were following this week and that is the shared ride company. Uber reporting their Quarterly Earnings last week and lyft earlier this week. Are you surprised that lyft was unable to match the earlier timeline of profitability that uber came out with . David not really. Both companies are on shaky ground in some sense on the macro level. On the other hand, lyft is in better financial position then uber by considerable margin. It is much smaller but if you look at the amount of cash it has, it has enough cash to last for Something Like seven years. Uber on the other hand, if it keeps moving money at the rate it is losing, despite the fact that has 11 billion in cash, that would only lasted like a year and a half. Uber has a lot more pressure on it. I dont think we have really proven that either of these businesses ultimately is a Growth Business longterm from a profit standpoint. It has not hit the numbers yet. It does not seem like the companies are struggling yet. Is there a headwind . Dan it is an overhang on uber analysts. I can tell you every day i talked to investors to quantify the risk of where this could go, especially through court systems, is it going to have more of a Ripple Effect . You look at what has happened in new york and other cities and across different countries. I think right now our view on a. B. 5 is it will be less draconian than feared want to go through the courts but it continues to be a risk for the gig economy, especially uber and lyft. Taylor i want to switch to another story we talk about every day and that is the story of elon musk and his tesla. They sold 2 billion in equity to help shore up the balance sheet. David, is the question why not because you are at 800 a share with a 147 billion market cap . David when i started covering business, there was not drama that elon musk creates. It is very gratifying for a journalist like myself to talk about. Is up 90 nys stock since the beginning of the year and the company that not long ago was being discussed as possibly on fundamentally shaky ground, if they can raise a couple billion dollars, give themselves some insurance, it makes perfect sense to me. Also, it seems to me that even though elon musk said in late january they need more money, this coronavirus thing has become more and more of a question the chinese economy which is a giant part of the business. I think they might want insurance for that reason alone. Taylor dan, are you as an analyst happy with the equity raised because you now have improvement . Dan i think this was a majorly smart, strategic poker move for both musk and the board to make this because that is the key right now. It comes down to the capital. You need to shore up the balance sheet. This is the right move they need to do. I think it puts more in the stock. Taylor as a followup, they have a factory in fremont, shanghai, berlin. Where are they building next . Dan that is the question. That is going to be the key in terms of the year up. Building out giga three. This is going to give them the the trajectory where they can meet 750,000, a million down the road towards what they can produce. They are in a position of strength, both from a demand and production standpoint. It was the right time to raise the capital, but a lot of Going Forward needed. About capwant to talk x. Theres a lot of concern that the company was under investing last year to hit their profitability targets. Are you happy with the 3. 5 billion cap x budget and the big ramp up in spending . David i think it is a good idea. The Company Seems to be despite a lot of turmoil, a history of turmoil, a newly announced sec investigation reasons we dont really know anything about, i think they are managing the Company Really well. Yeah, i think they are investing wisely. Taylor dan, can they still reach their profitability goals . 1 billion in Free Cash Flow but now have a double cap x budget. Can they still be profitable . Dan we believe they can. If you look at the stock, short squeezed, it is really when can they get to 25 earnings power . In china, it is key there. If you look at profitability, especially giga three being the linchpin come i do believe they can be profitable sustainably. Everything from the capital perspective, shoring up the balance sheet, it is a great onetwo punch. Taylor it wouldnt be my favorite topic of the week if we didnt mention cap x and Balance Sheets of tesla. Along with dan ives and david kirkpatrick. Thank you both for joining. Bloomberg will have plenty more on tesla and the electric Vehicle Market next friday as part of a one hour special, evs on the brink of change read it is hearing next friday. Coming up, how an online marketplace aims to make sneaker resales more accessible. That is our conversation next. This is bloomberg. Is an sneaker reselling emerging market but it may not be accessible to everyone. That is the problem that an Online Platform tries to solve. The start of positions itself between the primary and resell markets. For more, goat cofounder and see ceo eddie liu joins us from los angeles. Eddie, ok, i want a pair of shoes for about 1300. Why what i come to you instead of nike for example . Eddie hows it going . First of all, goat is a Global Platform for style. Our whole mission is to make our buyers globally just feel and look the greatest. 2015,e launched goat in my cofounder who is a lifelong sneaker enthusiast, his first pair of jordans was bought when he was 10 years old. Releasedlater, nike the shoes so he went at the largest marketplace at the time which is ebay to buy the shoes. He bought them, receive them, took them out of the box and he was so upset because they turned out to be fake. How could this day in age you are spending 300 on a pair of shoes, is left of worry if it is real or fake . We said lets build a marketplace built on trust and safety. We pioneered what we call schip to verify which means whenever you buy something on goat, the seller does not ship to you directly. The seller ships it to one of our warehouses globally for us to authenticate. We use machine learning, plus Human Technology to authenticate the product before. We quality inspected and send it out to you. That is why we have a business. Nike is the most counterfeit brand in the world. Taylor you mentioned shipping twice now. Theres a twopronged approach and you are passing that cost onto the customer. What were your concerted effort and decisionmaking to pass that shipping cost onto the consumer and not eat it yourself . Eddy because it is such a big value proposition, because there are so many counterfeits last year alone, we prevented over 72 million of counterfeits on our system. Its something that, yes, there is an additional cost but for the consumer, would rather spend five under dollars on a pair of shoes and have it be fake or spend a couple of extra dollars on shipping to make sure something is authentic . The customer really understands the value. Taylor there is a big trend going on in the Retail Market right now, direct to consumer. How are you handling the increased wave of direct consumer to consumer . Eddy because we are primarily in the secondary market our sneaker retells are secondary. We accept all forms of purchase. Whether the consumer buys a direct from a brent or the consumer buys it through a retailer like footlocker, the case is the fact that for us, nike and adidas have certain skews they released direct. These brands have a few hundred skus at any given time they are selling. Probably 1000 to 2000. As opposed to on goat, we represent the past, present and future for sneakers. We have over 75,000 skus, which means yes, you can buy the current direct but if you want Something Like my cofounder who is nostalgic about something 23 years ago, that is when you go to goat. Taylor eddy lu, thank you for joining us. Still ahead, with brexit signed off, the u. K. Is in the process of negotiating new trade deals. What this means for the future of its tech sector. Thats next. This is bloomberg. Taylor i want to get back to huawei and the story we touched on earlier. The u. S. Government is backing down in a dispute with the u. K. Over using the chinese tech in 5g networks. The u. S. Will not be changing its policy on intelligence sharing with the u. K. After britains decision to allow huawei into its 5g networks. To discuss this and plenty more regarding u. K. Technology, i would like to welcome the founder of tech london advocates. What do you make of huawei u. K. Partially partnering up . I think it is a good thing because it is important that the u. K. Engage with huawei. I think the u. K. Has mechanisms in place to ensure that any software or hardware that gets deployed into the 5g network is independently evaluated. There is something called the cell northwest of oxford run by the government and the National Cybersecurity center. Before anything goes into the u. K. Network, it has to pass inspection. I think that is a really interesting model the u. K. Has developed that i think other country should be taking a look at. Taylor the u. K. Is going through its own postbrexit trade negotiation with the eu and u. S. What are they going to do about tech talent and the Human Capital . Russ it is a huge issue. My community has been a very outspoken voice on the importance of getting decent immigration policy correct. Theres different tiers of visa immigration policy. Good steps have been taken to introduce new visas. It is the next level below. The cto, Software Developer level. There is a cap on that at the moment. Even before we formally leave cap. U union, lift the that sends a positive message openly that the u. K. Is open for business even though it is leaving the European Union. Taylor out here in the u. S. , we are in an election year. What are your thoughts on technologys increasing role in the election year, namely around political advertising . Russ really significant issue. I applaud Companies Like twitter, and to a certain degree, google who said we are going to prevent this from happening. The 2016 election was filled with so many issues. Great they are doing something. Disappointed that facebook has not moved in the same direction. This is going to be a wild year ahead and i think the Big Tech Companies need to behave responsibly so that democracy can happen and unfold in an appropriate way. Taylor is this tech ready for 2020 . Russ i dont think so. I think some of these organizations are preparing. Even Companies Like facebook are saying they are putting more in place, but if you talk to people on the street who use their products and services, there is growing anxiety that theres going to be a lot of problems with this election unless big tech behaves more responsibly. Taylor one of the problems we saw was in the mobile app in oiowa. And then you have New Hampshire and nevada said they would not use the same app. Its highlighted how unprepared big tech is for the election. Is that an example of how unprepared we are . Russ i think it is a really good example. The debacle with the app in iowa illustrated that you have to do so much rigorous testing, which many Tech Companies do do. The parties were not prepared for it. I live in the u. K. We still use paper ballots for everything. I think there would be a significant outcry if too Much Technology got involved in something that people considered to be a fundamental democratic right. I think there are some Lessons Learned from iowa that we have to adopt quickly, otherwise you undermine Peoples Trust in democracy. Taylor you applauded twitter and to some extent google earlier. Facebook is on the flipside of that. Some of the questions not only about political ads, but how they treat influencers, how i politician can pay in influencer to post something about that politician. How does facebook tackle all of these issues . Russ i think the really need to take a deep, close look at themselves and their behavior. And talk to people on the street who are using the services. Many of us love what they do. I use facebook but if they are getting too involved and going beyond what is appropriate, they have to think about how they rein themselves in. We have not seen the signals from Mark Zuckerberg and others at facebook that say, look, we are going to step back from this and that because we know it will go too far into undermining democracy as a democratic institution. I think as they grow in size and scale, they have to be a responsible citizen and take a good look at themselves. Taylor still waiting for that, but thank you for that analysis. That was russ shaw. Thank you for joining. That does it for this edition of bloomberg technology. Bloomberg technology is livestreaming on twitter. Check us out and be sure to follow our global breaking news on twitter. Icktake, this is bloomberg. Everyone uses their phone differently. Thats why Xfinity Mobile lets you design your own data. You can share 1, 3, or 10 gigs of data between lines, mix in lines of unlimited, and switch it up at any time. All with millions of secure wifi hotspots and the best lte everywhere else. Its a different kind of wireless network, designed to save you money. Switch and save up to 400 a year on your wireless bill. And save even more when you say bring my own phone into your voice remote. Thats simple, easy, awesome. Click, call or visit a store today. David china has more virus cases than we knew and the stock market gets used to Bernie Sanders. Im david westin. This is bloomberg wall street week. I think it was a last hurrah for the central bankers. Lower is inflation. Inflation for a variety of reasons has been a noshow. We will see a much bigger variation between companies in the same sector. We are looking for the ways that affect the customer today because this is a customer driven revolution. Possibly, china is a form of diversification. There is very likely to be a decoupling between the u. S. And china. On the american outcomes