We will find out. And some say just when you called into a netflix show, it is canceled. Why the ax falls so quickly. We explore. Our top story, the trade war between the u. S. And china, President Trumps decision to delay 10 tariffs on an additional 300 billion of chinese exports hasnt stopped beijing from hitting back. A report says china has no choice but to take necessary measures to retaliate. Apple shares have rebounded. According to bank of america, apple is facing a much lower impact from tariffs as a result, and the impact to Company Earnings could be minimal if products are exempt. To discuss the continued trade standoff we have eugene munster, and in los angeles, bloomberg trade reporter sarah mcgregor. Sarah phyllis and over the last 24 hours, still no sign of how china will tell will retaliate, right . Sarah we dont have a clear picture yet of how china will retaliate. The week is such a whirlwind, the trade war, so many ups and downs. Companies like you said, the apples of the world who have more time to get their holiday gear in, will be held, while not helping apparel makers or footwear makers who will still get those september 1 duties, and we are still no closer to a deal with china. Emily you concluded it is unlikely apple will be hittite hit by tariffs, but you still have the apple watch, still set for tariffs september 1, two weeks away. How likely is apple going to dodge this . Eugene a highbrow mobility that they will dodge it. That will not be in consensus, that thinking. That is more clearheaded thinking, i would suggest, in terms of how this plays out. I want to talk about that. There is a lot of misunderstanding of how these tariffs are ultimately implemented. There is discretion from the administration on which companies to implement against. But keep in mind, the goal of tariffs is not to hurt u. S. Companies. The goal is to hurt competitors coming into the u. S. Market. U. S. Domicile companies tend to get a reprieve from these tariffs. Im not saying that there is no probability, i think it is a very low probability that apple will face any tariffs, even after the reprieve this week. I think that it largely speaks to the misunderstanding of the markets. I have a strong feeling apple products will not be targeted. There is another piece to this story regarding apple. When you think about the symbol, apple is a global symbol in terms of the strength of a u. S. Company, and if the administration were to tariff those products, that would undoubtably undoubtedly be painful and have a negative impact on apple. The take away is that there is misunderstanding about the tariffs and apple wont the impacted. Emily apple is the Biggest Company in the world with most exposure to china. Sarah, would you agree . Sarah we know someone like steve jobs had access to somebody like president donald trump. Apple may be big enough to have enough sway with the administration and have the ear of the white house. We are really hearing where some of the pain is, smaller Tech Companies, people who make gadgets or apparel makers, footwear makers, and they havent been able to have the same influence to keep their items off the list or get those delays. At the end of the day, the Trump Administration, we heard from trump yesterday, saying tariffs are a Pressure Point for him that he is not afraid to use, but there is a lot more tools in his chest. A big issue for these Tech Companies is retaliation from china. They have fewer items to hit from the u. S. Because they import less with tariffs. Are they going to hit investment . Are they going to make it harder to do business in china . Are they going to make it harder for apple or other companies to sell products there . It is a big question. Emily tim cook had several meetings with the administration and the president himself and says apple asked for a tariff reprieve on the mac pro. The president said he would not grant that. Eugene, lets walk through scenario sprayed lets say apple products on the list for september 1, air pods, apple watches, et cetera are tariff. What is the impact on apple then . Eugene before i jump into that, i put this in the heavy speculation category. I want to remind people this will take a year to play out but it is important we go through that. Lets say the watch and air pods are the subject of tariffs. It increases costs 10 to 20 . What is the impact on apple . Those two segments are roughly 10 of revenue, just under 10 revenue. That would have a negative impact on that 10 . Every percentage of growth is important for investors. If that happened, it would have a negative impact on apple stock. But that would probably be the context. I could see that having potentially, taking out. 5 or 1 of apple revenue if that was implemented for a year. Keep in mind, this is just for the u. S. I misspoke, i said 10 of revenue, that the u. S. Portion of that is more like 3 of revenue. Emily lets take it a step further. December 15, the iphone is hit by tariffs. What then . Eugene iphone is a 60 of revenue in the u. S. , about a third of iphone revenue, so we are talking about 25 of the business. The question comes up, who is going to pay for that . I dont have a good answer whether that is going to be apple, or shared with the consumer. But that again would have a negative impact. What you would see in this case, a low, remote probability this happens, but if it did happen, you would see People Holding onto their phones longer. The upgrade cycles would be stretched out. It would not be a situation, it would be unlikely somebody would leave their iphone for a galaxy or samsung device, but it would have a negative impact. If you would ask me to put a percentage on that, that could have a 1 , 2 , 3 potential, albeit very unlikely. Emily sarah, as these companies try to maintain a relationship with china, how difficult is that at this time . Sarah i misspoke earlier, i mentioned steve jobs and it was tim cook, tim cook visited with trump. A lot of companies are shifting their supply chains, it is not an easy process, but we saw crate barrel say they are doing less sourcing in china. Imports from vietnam into some of the ports here are up. So we do see signals that maritime trade ties are changing, but these are deep relationships built over time. Just to say companies can start changing productions lines production lines are sourcing from different places is too simplistic at this point. And also, the Trump Administration ultimate goal that companies are going to set up shop here and reshore all their production is also tough to imagine. Wages here are pretty high, there is a cost to setting up your production here as well. So we are still seeing how it plays out, but now it looks like there are shifts from china to lowercost places in southeast asia. Emily bloombergs sarah mcgregor, following the trade dispute with us, as well as gene munster. Gene, you are sticking with me. Staying on apple, 14 point 4 billion battle with the European Union reaches the blocks courts next month. They hearing puts a spotlight on a crackdown on tax deals doled out to big companies. The eu ordered ireland to recoup the record some plus interest, saying the worlds Richest Company was handed an unfair advantage. Coming up, continued anticipation for the release of new electric cars from the likes of jaguar and honda. But will anyone take on tesla . We discuss. Check us out on the radio, the bloomberg gap, bloomberg. Com and siriusxm in the u. S. This is bloomberg. Emily electric vehicles are poised to top 100 thousand registrations in california, a rising share of the car market in the state, counter to a downward trend in sales overall, annual deliveries expected to fall 4. 6 percent according to the california new car dealers association. Tesla registrations surged over 40,000 in the first half, four point 2 market share in the u. S. s most populous state. Bloomberg auto reporter Craig Trudell and eugene munster, jean, the electric car landscape has shifted in the last year dramatically, and will again this year. How do you think tesla will fare against new competition . Eugene they will fare exceptionally well. Some quick numbers here. 2 of cars sold year to date in the u. S. Has been electric. Tesla caught 75 market share. Call 865 of total u. S. Market share around the model three, rough numbers here, but getting perspective. And what we have looked at is how sustainable. Well they fair well . It comes down to alternatives for consumers. This year there are 17 electric cars on the market. More competition for model three and tesla. Take a closer look at the 17 number, and they break down into two camps. One camp of 70,000 and greater in price, not a massmarket car. The other is vehicles that have a range of 130 miles per day or less. That is another market that isnt feasible. The sweet spot is less than 40,000 and greater than 220 miles. That boils down to five vehicles. Let me finally get to the punch line. In that group of five, there is the chevy volt, and to hyundai cars most of your viewers i suspect have never heard of. Put those five cars together and the only car people are going to buy is the model three. Emily that said, bloomberg is reporting a fascinating story out of germany. The story of a rental car Company Called move that placed a big order for tesla, and there were problems. Moisture in the headlights, scratches, tell us what happened. This was an interesting story where you have a Company Called move that is trying to be called next move, trying to be the leading rental car company in germany. The model three is a very attractive package, it offers a range that is feasible for a daily driver, and at an attractive price point. There is a lot to like about tesla and terms of over the air updates, a cool brand elon musk has built, but the big criticism next move has leveled that the companies is that they dont have their their sales and Service Organization in that country in a position to be able to handle repairs in a smooth way. That was the big knock this company has leveled at tesla. So after those first 15 deliveries, next move was going to take delivery of another 85 model three cars, but that was called off, definitely signs of a lot of work to be done in some of these markets that we expect to be a key driver for tesla to be able to continue to expand. Emily meantime, craig, didnt tesla in this case try to deliver cars that had already been registered, therefore would not count toward new registrations . Craig there are concerns about whether that is an isolated incident. Tesla downplays it as that they describe it as an issue of matching vin numbers of vehicle identification numbers on two vehicles. But certainly if you are next move and making a bulk order, you want to take advantage of tax credits to help stop at us to help subsidize that purchase that was a major issue for next move. That combined with quality things he referred to and the delay on repair work that they described to us in frankfurt, combines to them being very disappointed in the experience of dealing with the company. Emily gene what is your reaction . Tesla is the leader in electric cars, but certainly not without problems that could prevent a new buyers from jumping on board. Eugene everything that craig outlined is negative, no doubt about it. My reaction is to take a step back and look at the bigger trend. Tesla has quality issues. There are quality issues around it. I think those are generally under the magnifying glass, because this is a company in the news, it comes under the magnifying glass. I do not own a tesla or shares in tesla, but i try to keep a clear view of what is going on. My response, emily, is that yes, there is negatives, but the Bigger Picture is that this is a compelling value and it is an undeniable truth that cars should be electric. If you put that together, the substance of this is going to seem very simple. What are the delivery numbers in the September Quarter . If they move up from 77,000, the surprise number in june, move up from that number in september, that will be a powerful sign that despite all of the problems that get reported around quality, there is something bigger going on. And that simply is that people want electric cars. Emily your answer begs the question, why dont you own a tesla . Eugene i dont own a tesla because luke is two and a half years old and i promised to turn money back over to investors before i get a new car. Emily good answer. Craig, what is next . Tesla has challenges and we have the second half of the are coming. What are you looking out for . Craig in addition to working through some of these service issues, a big secondhalf stories going to be how quickly they are able to finish up a plant in china. There is a major concern of the trade war flaring back up, being a major risk to this company. Because despite the fact china puts massive tariffs on imports of vehicles built in california, tesla has built a significant business in that market. And to the extent they are able to finish the gige factory in china and start spooling up production locally, there is a substantial opportunity there for them to keep expanding. They set this ambition to finish this plant later this year, and it really is an ambitious timeline they set. I would not be surprised to see that timeline flip. Often we see out of elon musk, he sets a goal that is really a stretch and tesla maybe hits it, may doesnt. But the Bigger Picture eugene is talking about is, can they get production started in china . Because once they do, that does unlock a significantly bigger market for them, a bigger segment of buyers for them in china. Emily Craig Trudell, thank you, Loup Ventures eugene munster, sticking with us. Prove cars are getting smarter. Eugene has results of a new test. This is bloomberg. Emily Digital Assistants are taking over. But does alexa, syria or google understand you best . Eugene munster of luke ventures conducted a digital assistant i q test. Eugene, who one . Google. 93 of the questions were answered. Second was a series with 83 percent, up from 77 a year ago. Alexa was third at 80 , a big jump from 61 accuracy one year ago. Altogether, google wins, an unprecedented number of correct answers. I think alexa made huge improvement. It is worth mentioning that the survey we do, we ask each device 800 questions in five different categories, everything from commerce, information, commands, and there is a bigger insight into the winter in that these devices across the board have had unprecedented improvement in their ability to answer questions. Over the past two years, since we have been doing this, on average each of them has increased accuracy by 30 . So they are getting much smarter. Emily do you think the lead google has, at least in your survey, is enough to impact sales and give it a boost . Eugene no, the category is so small. But where it matters is that the idea of voice and use of voice becomes a fabric of other products, your phone or other aspects, and that is something that allows people to rely more on google products. This is part of the idea that googles Business Needs to become the fabric of different products that we use. That is in particular to google. When we think of the functionality, especially google hitting 93 accuracy, what does that mean for the average person . The average person uses these for only three things, the music, the weather and a timer. But google is a great example of the information category, it does exceptionally well. If you ask, for example, what are the side effects of cough syrup . It will answer that. What starts to matter for google longterm is that people start to realize these devices avenue a more use case outside the three areas they use it today. That is where it becomes a bigger deal. Emily we will be watching as the market gets bigger. Loup ventures gene monster, good to have you on the show. Coming up, state and local governments will have to spend big ahead of the 2020 elections, that what they have the resources they need to do so . We discuss, next. This is bloomberg. At comcast, we didnt build the nations largest gigspeed network just to make businesses run faster. We built it to help them go beyond. Because beyond risk. Welcome to the neighborhood, guys. There is reward. Beyond work and life. Who else could he be . There is the moment. Beyond technology. There is human ingenuity. Every day, comcast business is helping businesses go beyond the expected, to do the extraordinary. Take your business beyond. Emily this is bloomberg technology. Im emily chang in san francisco. Now to a story we are continuing to follow safeguarding the 2020 u. S. Elections from interference. A your report estimates states will have to spend more than 2 billion to protect their election systems in the next five years. That means replacing outdated machines, purchasing software to protect existing equipment, training employees. The problem is they dont have enough money, so is 2020 at risk . To discuss, we are joined by maurice taylor. In ann arbor, michigan, alex haiderman, a professor of Computer Science with the university of michigan. Professor, is 2020 at risk . Alex unfortunately, yes. We know from the recent report of the Bipartisan Senate Intelligence Committee that in 2016, russian attackers probed election infrastructure in all 50 states. We have every reason to believe that they are going to be back again in 2020. Emily so, what are states to do . Maurice it starts with basic cybersecurity training for local election officials. Convincing statelevel legislators to look at longerterm funding solutions, and most importantly, advocating at the federal level for shortterm Election Security dollars to make sure that we can have an impact immediately and help defend 2020. Emily it does not seem like those dollars are coming through. We have had 380 Million Congress has distributed to states, but Mitch Mcconnell blocked a bill that would distribute an additional 600 million. States need far more than that, they say. Maurice they do. The report said we need at least 2 billion over the next five years to help secure elections. Congress seems to be interested. There are over 30 bills that have been introduced in this session alone. It seems like nothing will get through senator mcconnell. Emily alex, with time running out, what are the options . The election now is about a year away. Alex well, fortunately, securing the election is not going to take any breakthroughs and it is not rocket science. What states need to do, they need to make sure we have a paper trail with a paper ballot for every vote. That the paper trail is audited manually to make sure the computer results all right. And to implement basic cybersecurity hygiene. Compared to the cost of securing almost any other area of Critical Infrastructure the health care sector, the power grid 2 billion is a real bargain. Emily what do you mean by a paper trail . Even if they are voting electronically, they should vote on paper as well . Alex we need people to fill out a piece of paper to mark their votes the oldfashioned way but then to scan it into a computer in the polling place. That is the way most of the country votes today but we have to get every other state on track. When you have that paper record and the electronic record, we can make sure they agree and that is much stronger than either voting by computer or voting on paper alone. Emily now, maurice, bloomberg did a story focusing on the state of illinois and their efforts. Another state, they say they have not gotten enough money. This is a state that was singled out in muellers special report. What they determined is Russian Hackers infiltrated the system, stayed inside for three weeks, and meddled with 200,000 voting records. What is the worstcase scenario . Is it possible that Russian Hackers could swing the election by tinkering with the number of votes . Maurice the possibility of actually changing the outcome of a nationwide election will be relatively small. The larger concern is actually disrupting the operational side of elections. Causing long lines on election day or causing confusion with a disinformation campaign. That is what we are looking when we are talking about how are the elections of 2020 going to be impacted by foreign influence. Emily one thing that is certainly different or will be different is awareness. Election officials, states, all of us were all aware this could potentially be a problem, but i wonder how much does that matter given that hackers, you know, bad actors are always one step ahead . Alex awareness is the first step to prevention here. But, weve got to go way beyond awareness. We have to bring every state up to a strong level of protection because as maurice said, the attackers are out to undermine peoples faith in democracy and potentially getting anywhere in the country could be enough to make voters doubt whether their vote will count. Emily you experimented on Voting Machines yourself. What did you find . Alex i and other researchers have reverse engineered many of the most widely used Voting Machines in the country. Unfortunately, in virtually every case, we found ways that an attacker could come in remotely and in fact the machines with Malicious Software to steal votes. Virtually every case. Unfortunately, the machines are often closer to the internet and more centralized behind the scenes than people believe. All the more reason why we need that paper trail and auditing in order to protect them. Emily doesnt that prove that if someone is determined to break into these machines they can . Alex the great thing about having that physical paper trail is paper cannot be changed in a cyberattack. That provides a way to see if an attack took place and to correct it. That is the best kind of defense we can provide. There is actually a lot of science that goes into how you design and easily audit a paper backup. Emily maurice, look, we are a year and change out from the election. We are aware. States are working on it, but they dont have nearly as much money as they needed to protect themselves. What is your production for 2020 and how smooth or not it will be, given there is a hiccup in every election . Maurice election day is sooner than you think. You have to think about which states are having primary elections and working backwards. How much time does it take to actually prepare for election day . Looking from that perspective, there is not a lot of time left. There are still some time left to do some basic things like cyber hygiene or taking a look at auditing procedures, but there will always be more elections. If we start with doing the basics now, we can plan for protecting the elections in 2020, 2022 and beyond. If we dont start, we will never be able to adequately protect against the growing threat. Emily maurice taylor, as well as alex haiderman of the university of michigan. Thanks so much for covering these issues. Ok, amazon is designating products sold by Certain Companies as top brands. A test that, if widely implemented, could ease tensions between the online retailer and companies. Amazon already labels certain products as best sellers or amazon choice. Coming up massive losses, potential interest of conflict and financial genetics. We have an assessment of the wework ipo filing, next. This is bloomberg. Emily a new owner for the brooklyn nets. Alibabas executive vice chair joe tsai is paying 3. 5 billion to the Basketball Team and its arena. He previously amassed a 49 stake and had until 2021 to exercise his option to take control of the club. It is so unicorn, it hurts. That is what our Bloomberg Opinion has to say about wework. The shared Office Space Company is expected to raise 3. 5 billion in the upcoming ipo which would make it the year second largest behind uber. It lost 690 million in the first six month of the year and almost 3 billion in the last three years, along with some unique business dealings by the ceo. One person who has a unique perspective on the company is shira ovide who joins us now herself. You also say that the ipo filing reminded you of a lower stakes Mueller Report. What do you mean by that . Shira what i meant by that was i think what we saw in the Mueller Report was it was good, i think, for the president of the United States that a lot of the revelations were things that people reporting over the course of several years. Maybe not as shocking as it might have been if it was dealt all that once, all this new information. I think wework was the same. Because there has been good reporting on wework in the last few years from our colleague and other people in the media business, we have been able to see some of these companies in all of its glory and shame, right . Both the fast growth and some of the good ideas the company has infused into the commercial real estate industry. And also some of the bad things like a lot of these intricate Financial Arrangements between the company and ceo, the wild losses. The kind of willynilly spending on all kinds of things. Both good and bad, we had a cushion for us from years of reporting. Emily talk about the Financial Arrangements between the ceo and the company. At one case, the ceo took out a loan from the company, a massive loan. There were several interesting agreements made between newman and the company. Walk us through some of these. They are quite unusual. Shira i dont think i have ever seen anything like what wework has done in terms of its relationship with the ceo. So, for starters, he owned several buildings personally that he leased to the company which is an unusual kind of arrangement. The company has now moved away from. He has borrowed hundreds of millions of dollars from banks and others, in part back by his ownership of wework shares. He has a couple of family members who have done work for the company or currently work at the company. His wife is one of two or three people who would pick the next ceo if adam newman were to die or become incapacitated. The Company Recently restructured into this kind of partnership in a way that seems to personally, that seems to deliver Tax Advantages to adam newman and others. The kinds of things, Financial Arrangements between the ceo to his own interests is something i have never seen before, certainly in the kinds of companies i write about. Emily this is another one that raised my eyebrows. The founders trademark the word we and sold it back to the company for 6 million. Why wouldnt they just do that through the company . Shira i dont know. It is a good question. It is obviously not on the same scale as a lot of the other Financial Arrangements, but i think it goes to the heart of this company and questions about its kind of corporate governance, and whether the company is able to say no to the ceo. Emily why would the board it is an allmale board why would the board allow this . Shira i cant, i cant be in their heads. I cant really explain their actions. I can imagine they believe in the interests of the companies to own those trademarks and it so happens that adam newman or the companies he controls had owned those trademarks, so they wanted to control one of the company level. Emily all right, we will be seeing how investors receive this as the company gets to market. Shira ovide, thank you for keeping a colorful for us as always. Switching gears to cancel culture but not the twitter outreach. We are talking about netflix and its quick trigger finger when it comes to axing new shows but is that really the case . Are they any quicker to cancel shows any quicker than hbo . To answer that, lets bring in dallas lawrence, cco of openx. Some people may have never heard of those shows because they did not last long enough to really enter the public consciousness. Bloomberg did some reporting and found that netflix was not quicker than hbo or cbs to cancel its shows. Netflix shows just may get more publicity. They clearly have a huge budget. What is your take in general on how much mind share netflix is winning as these competitors like apple tv plus and disneys streaming service and warner comes to market . Dallas i think your article nailed it. There is always a feeding frenzy over any new news around netflix. At the macro level, there is a story when it comes to content. It is the best of times but also the worst of times. The best of times, they had 1500 hrs of new content created last year. Really Strong International growth for them with localized content that is actually traveling really well around the region. 15 to 20 Million Viewers. Strong programs that we have talked about in the past. Orange is the new black, stranger things. At the same time, it is becoming the worst of times. Stranger things is a doubleedged sword. There is a program that had 18 Million Viewers watch the entire season in the first four days. At that clip, netflix will be need to bring in 20 to 30 new shows a year to keep attracting those audiences. At the same time, seven out of every 10 minutes on netflix is spent watching syndicated content. Content like friends and the office that is now leaving in droves behind the pay walls of these new services from disney, apple, cbs and comcast. I think netflix has laid in on creating content that travels well. As you said, because every time it cancel shows, it seems to be headline news. Emily of the current and coming competitors, what do you think is the biggest threat to netflix . Dallas netflix has two fronts. The first is content. The second is their Business Model. They have a saturation challenge in the United States. They lost 100,000 subscribers in q2. Half of u. S. Households are not streamers yet. They have looked at netflix for the last couple of years and have not been enticed to join netflix at 12. 99 per month. In the next couple of months, they will have an option to join disney. For that same price, they will have disney, espn and hulu. I think the Business Model is a challenge for netflix. Their decision not to accept advertising to lower that threshold, the barrier to entry for new subscribers is also going to be a challenge for them. Emily do you imagine there will be a big shakeup this fall or changing of the guard, or new guards getting more powerful . Dallas i think you are going to see as we said in the past, content is king. I think disney is in the pole position here. You have apple coming online with a distribution model of one billion subscribers. You are going to have a double front for netflix competing. Massive content providers, but also some significant distribution. The plus side for netflix is most of that battle front for them is going to be in the United States. They are still going to have the International Market to themselves to continue to grow and regionalized. It is not all bad news for netflix. There is good news as well. Ultimately good news for the consumer. We are going to have more choices, more options. Whether they want an advertising base model or subscriptionbased model. Emily if you could bet on one competitor, who would it be . Disney . Dallas i think the disney package they brought to the market today if you are thinking about the 48 of american households that have not signed up for streaming, they are waiting for something. They will get to have their sports, television channels, license content and the powerhouse disney portfolio of marvel studios, pixar all for that price. We will see a tidal wave of people coming into the streaming Market Driven by disney. Emily openx dallas lawrence, lots to watch and discuss. Thank you for joining us. Ahead, google employees speak out once again. This time to keep the company from helping u. S. Immigration agencies. We will discuss why, next. This is bloomberg. Emily some early investors in the ridehailing company lyft will get the first opportunity to sell shares on monday. An expiration was brought ahead from december 24 as the original date which would have been in the blackout period. In a report published after the recent earnings, an analyst said the companys cofounders will not be selling shares at the time of the lockout expiration. Employees at google are calling on the company to promise not to work with u. S. Immigration authorities on a Cloud Computing project. The petition signed by at least 70 employees says we demand google publicly commit not to support cbd, cpb, ice or orr with any funding directly or indirectly until they stop engaging in human rights abuses. By any interpretation, cbp and ice are in grave violation of International Human rights law. To discuss, mark bergen who covers alphabet for us. A lot of acronyms, but explain what the google employees want. Mark historically, we have seen employees speak out against a pentagon contract against work in china. They are coming out and saying preemptively the company should say we will not work on the specific cloud projects. Custom and Border Protection put up this fascinating contract looking for a type of hybrid Cloud Computing that google had just earlier this year put out this new product that is exactly like that. It is not something that google has said. They have not said they are bidding for that contract or others, but it is a collision course where we see these large Silicon Valley companies doubling the Cloud Computing with ai. We have seen more and more Government Agencies wanting that. Emily this puts google in an increasingly tough spot, especially as they are facing accusations of working with china, treasonous work by peter thiel. You have President Trump saying the u. S. Government wants to investigate that. And, google has had to take a stand on whether or not they will work with the government at all. Mark you can see they put out a policy position, their Ethical Principles around ai that was clearly written by a lot of lawyers. They said we will continue to work with the military, facial recognition. Google said we will not release open, that anyone can access facial recognition technology, but they have not ruled out working on facial recognition tools. Amazon, the controversy that they are willing to sell facial recognition tech to police department, local governments. Microsoft has said we are willing to work with the government on certain contracts. Google employees have really boxed in management and management has not responded as far as where they are willing to work. Emily there has been this continuous drop of bad news about google as a place to work. This is not a good place to work. Obviously, a huge company and people have their own personal experiences, but is this impacting morale . Mark my sense is there is a bit of bias. We hear from people complaining the most. We have been hearing a lot from rightwing and conservative members of the company that have come out to largely rightwing people, leaking documents and the culture there being against conservatives. I have talked to people that say it is a great place to work. I think the interesting turning point for the company has been one of the features they have touted and the recruiting tool is this open culture where anyone can debate anything. Where they have the time and resources to spend a lot of time having internal dialogue. That is changing. We have seen in the past few years there a good story in wired about it they have stopped having these open conversations with employees. That is probably where we are going to see a lot of affected morale. Emily clearly, a lot of work to do. Mark bergen, thank you as always for joining us. That does it for this edition of bloomberg technology. We are livestreaming on twitter. Find us there technology. And follow our global breaking news network, tictoc, on twitter. This is bloomberg. From the 5am wakers, to the 6am sleepers. Everyone uses their phone differently and in different places. Thats why Xfinity Mobile created a Wireless Network that auto connects you to millions of secure wifi hot spots. And the best lte everywhere else. Xfinity mobile is a different kind of Wireless Network designed to save you money. Save up to 400 a year on your wireless bill. Plus get 250 back when you buy an eligible phone. Click, call or visit a store today. The following is a paid program. The opinions and views expressed do not reflect those of bloomberg lp, its affiliates, or its employees. The following is a paid presentation brought to you by National Debt relief. Are your credit cards maxed out . Are you just making the minimum payments or falling behind on your payments . Are you stressed out . Is that stress keeping you awake at night . There is reason to worry. Check out your credit card statement. If you are only making the minimum payment, it could take you over 20 years to pay off. Having debt is like having tremendous weight on you and you cannot lift it