And our extended conversation , with the ceo of qualcomm. Why he thinks 5g will change the way we do business forever. It is starting to feel like the Holiday Season. Americans got out their wallets over the holiday weekend, spending more than 70 billion on shopping over that fourday period. Amazon is gearing up for the heavy spending month by heading back to basics, testing cheap warehouses. That will let merchants to store resources near amazon delivery locations. It will let merchants avoid storing their goods in amazons warehouse base where they pay premium prices. To discuss, we are joined by ysomberg technolog spencer. What do we know about the new Service Called storage and replenish . Spencer we know they are giving this a try in southern california. Highlighted it nicely. The problem with amazon this time of year is it is always a race to create capacity. It has these expensive automated facilities with conveyor belts, robots shuffling things around. Those facilities are expensive so it is not smart to use them for storage. Amazon needs to supplement the Storage Capacity for those facilities with cheap, plain old warehouses nearby. They are kind of scouring the country for cheap Warehouse Space near their other facilities around the country. This thing could ramp up if it goes well this year. Taylor talk to me more about that. You said they have that one warehouse in ontario, california away, but notably that is only one, which means it is not ready for cyber monday, for example. Are there concerns that there were not more of these locations heading into the Holiday Season . Spencer the tenter has been that during the tension has holidays,during the amazon hits capacity. It only wants the fastmoving inventory in there. It does not want to clutter up the space storing goods that are not selling. What amazon historically has done is it has simply raised storage fees to try to discourage merchant partners, these independent merchants that sell on amazon, to discourage them from putting things in their warehouses. The risk of that is maybe they can run out. This is kind of like the happy medium. We dont want your stuff cluttering our warehouses in peak season, but we will provide a warehouse nearby that is cheap so you can have the stuff nearby in case we do need replenishment. It is kind of like the next phase of them wanting to declutter their warehouses. Taylor what has been the merchant reaction . Spencer if it goes well, it could be favorable. That has been the concern. Up itsazon did jack storage fees they had to make , this critical guessing game. Just enough to get through the Holiday Season. If i do not send them enough, i am losing sales. If i do not send enough, i am getting hit with high storage fees. This is a way to get a little bit of a buffer so you can send more than you think you are going to sell without getting penalized on the storage fees. There will be a cheaper Storage Solution nearby. Taylor we often hear that in the shipping business, it is that last mile that is the hardest. How does this help amazon both in the middle of the supply chain and the final mile to get the product to the front door . Spencer especially as amazon goes for this next day delivery pledge, they are trying to ship more and more of their inventory to next day as opposed to twoday. If they are going to accomplish that, they have to have inventory close to shoppers. They have less and less time to react from the moment someone tocks buy on their website when they can get the order out the door. Aen you used to maybe have handful of facilities that could adequately serve the entire country, now you need at least 16 stations to reach the majority of the population the next day. That means you need these ancillary facilities around it to feed into the system. Taylor Bloomberg Technologys spencer soper, thank you for joining us. To continue our discussion about cyber monday, lets bring in dan ides and stephen. We have talked a lot about amazon. How has this cyber monday compared to previous years . Steven the Holiday Season is off to a really strong start. If we look at black friday, we see that the additional transactions this black friday versus a year ago. Going back a year, that year was up about 20 over the year before that. Taylor in your opinion, is amazon the key player that is the key winner in all of this . Dan it continues to be their world. Everyone else is paying rent. Look at walmart, target, in terms of the eur yearoveryear numbers. This continues from an investor be amazon. To some of the products, the apple, the airpod, others. Taylor we just came off the investments of amazon, is that cost paying off yet . Dan i think that is starting to payoff but it will play out in , the next 6, 12 months in terms of next day shipping. That continues to be a Core Advantage of the amazon machine. When you see ecommerce right now, you are starting to see a narrowing in terms of the competitors right now. It is that last mile that continues to be the focus of investors to really close the get up. Taylor stephen, how much has the pressure increased to get the shipping time faster . N ephen amazon steve amazon has upped the game. Earlier in the year, there was talk about amazon not being able to sell what they called crap products, cant return a profit. A lot of it is coming from the Competitive Pressure that dan mentioned, traditional retailers with Services Like click and buy online and pick up instore, they have had pretty good years taylor i want to show you a is that has Department Stores hitting a rough patch, fallen 1. 6 . This is hardly a new trend. Dan, as you have mentioned, walmart and target, what are they doing to be able to take on the Companies Like amazon . Dan it is really around inventory. I also think it is some of the talent. I know many ecommerce players that they have hired at walmart, it is about inventory. It is no longer asleep at the wheel. It is a narrowing of the cap. Gap. Consumers are smart. It is not just amazon. That continues to be in the eye of the street, who are the winners. You have to put a feather in the cap for walmart. Taylor are walmart and target also the clear beneficiaries . Stephen they are clearly pulling away from the competition. In the Digital World just as you , have seen google and amazon pull away, as we look in specific categories of ecommerce, we see the same thing. The dominant players pulling away and finding niches where they do not have to compete with each other. Taylor who in your opinion has been struggling . Who are some of the losers who have not been able to keep up . Stephen when we look at companies who had a big boost from black friday, it has not always been a positive story. Fromve seen big boost victorias secret, forever 21, gamestop when we look at our data, we sometimes call it the trifecta. If i had a big boost around black friday but a big boost also in paid search, and they have following prices that is a trifecta that , is tough to rebound from. Taylor how do you incorporate the sense of the omnichannel, be curbside pickup, a great delivery service, how do you put that into your analysis . Dan it is all about the cost of getting an incremental customer. If you look at amazon, it is all about prime. Once you are in that ecosystem, you will spend incrementally more. It is around the omnichannel, that is not just what amazon is focused on. That is why you look at these early cyber monday numbers, it is not just one player that is going to benefit. You are seeing it across the landscape. Taylor dan, you cover apple, so i would be remiss if i let you go without asking quick question without asking a quick question here. Forecast for the Holiday Season when it comes to apple. Dan in terms of airpods, 65 million units. The big thing is iphone 11 15 above0 to expectations. If that continues, this will be a stock that will have a three in front of it next year. Taylor Stephen Kraus and dan knives, thank you for joining us. Shares dropped on monday for roku. This is after Morgan Stanley downgraded. The bank said roku could see revenue and Profit Growth slow meaningfully next year. Before shares were up monday, 400 this year. Coming up, tech stocks tumble with the nasdaq falling the most in more than eight weeks. We will look at if it is caused by trade tensions or something bigger. 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 u. S. Stocks in the red on monday with tech leading the losses. The tech heavy nasdaq closing down more than 1 . That remains the star performer in 2019. 25 gains this year. Joining us from new york to discuss if there is a faang overhang or if there is room to ron Craig Johnson. ,talk to me for a moment about todays price action. Is something bigger happening or just a momentary pause . Craig i think this is just a momentary pause. The markets had a very sharp advance over 25 coming off of the lows we had seen in september. Stocks have gotten a little bit ahead of themselves. From a technical perspective, we have seen 70 plus percent of stocks above rsi. I would not be surprised to see a little bit of profit taking. This is a market that has really been pushed higher really on the fomo trade, fear of missing out. We are going to some sort of trade deal done in washington and equity markets , will push ahead. Perhaps equity markets. A little bit ahead of itself and todays price action was a reaction to the commentary. I do not think it change any longterm trends. Taylor you have a chart in your 99 page report called the faang overhang. Do you need faang to go higher in order for everyone else go higher . Else to go higher . Craig i think you will see the faang stocks participate. The chart i had included in that particular marketing here for the east coast marketing this week was just to make the point faangwhen you look at doublea this is an equally , weighted index that is not broken out to alltime highs. Despite the market having made multiple new highs this year, a lot of these stocks have this index. Let me just add that, even if we dont see this faang index breakout to new highs, we will see the expansion and the overall breath of the market in that case. A lot of money gets tied up in those faang stocks. I think that could be a very healthy broadening of the market. I think at this point in time, you are starting to see that happen. Taylor one of these stocks in your thesis is apple. Apples market cap is worth more than the entire s p 500 Energy Sector combined. Walk me through why apple is not overvalued at these levels. Craig first and foremost, lets start with a chart, then i will walk back to the valuation side. Michelson does a great job from a fundamental mike olson is a great job. You can see that we are making in a series of higher highs and higher lows. The stock had broken out of a nice consolidation range over the last six or seven months. From my perspective, this looks like a stock that had taken a time consolidation and is starting to work its way higher. When you look at the overall apple products leadership, it is not a stock that looks like it is tremendously expensive at this point in time. I still think there is more room to go. If i could add my peter lynch perspective, my wife and i had a chance to go to the mall of america on black friday. The apple store, i am not sure you could have gotten more people into that apple store. Taylor so you are not factoring in regulatory and antitrust overhang in any of these tech stocks . Craig i spend time thinking about price, trend. What i am seeing in these stocks right now i dont have trend on a lot of these large cap names. I think that is adding to the fuel of the wall of worry. You continue to see stocks, tech stocks, apple, some of these other names continuing to climb that proverbial wall of worry. Right now, until i get a trend change, we need to play these stocks to the long side. Taylor i would note that none of these stocks were on your bear thesis. Is it a fundamental or technical issue . Craig when i was going through and looking for names to include, i was viewing this market from a more positive perspective. I was pointing out stocks that were more constructive looking. I did have anet, a smaller name. Overall, some of these big stocks and tech names look good. Sky works looks constructive. There are a lot of names in the Semiconductor Space that, to me, look like names that still have room to run and work. Taylor we would love to have you back and be able to expand more on that thesis. That was Craig Johnson from piper jaffray. Coming up, the french president once had a tech friendly credential, and now, he is calling for greater control over big tech Bloomberg Technology is livestreaming on twitter. Follow our global breaking news network on tictoc on twitter. This is bloomberg. Taylor tmobile has jumped to an early lead in delivering 5g. The service being offering now will not be the hyped 5g experience that Wireless Services have been boasting about. Tmobile says it will offer a much better 5g network if its takeover of sprint is he proved. Is approved. French president Emmanuel Macron has toughened his stance on big tech. He has imposed a new tax on Global Tech Companies that collect 25 Million Euros in Digital Sales in france. The tariff, which will be retroactively applied from the beginning of the year the move follows a raft of fines by the European Union against Companies Like facebook and google. I want to bring in Laura Davidson in washington, d. C. France has been much more tough when it comes to big tech. What are the new laws and conversations france is now having taking on big tech . Laura they are looking at a tax saying the consumers in france are not necessarily paying for the service but that the consumers are there and france should get a piece of that pie. You are seeing a lot of other countries the u. K. , new zealand , looking at passing those laws. In some cases, we have seen more of these get on the books. The u. S. Sees this as their tax revenue. These are americanbased companies and they are saying, if anyone gets to tax facebook, google, amazon, that is us. Taylor it is interesting how. He conversation started has the conversation shifted now to an antitrust or data Privacy Concern . Laura that is part of the concern, but really the big , tension point is you get the u. S. Saying, look, you dont get this money. All of the other countries are saying you are , operating here, you have employees here, our residents are using the service. What we have seen at the large multilateral level, you have 133 countries sitting down and trying to see if they can figure out some system of which company gets to tax which companys portion of their revenue. On one side of the other, you have the u. S. And france. France saying, we will abandon our digital tax if you can get 132 people to agree to something. Taylor how does the u. S. Respond to protect our entrepreneurial spirit in the tech sector . Laura that is something we are waiting to hear about today. The u. S. Trade representative has been looking at this. They opened up this investigation to see if there should be some sort of trade reaction. They are looking at tariffs, some way to punish france to say, look, if you will do this to our tech companies, we will do something to some of your products. President trump in the past talked about tariffs on french wine, for example. We do not know exactly will be in this report. It will be a 90 day waiting period with comments and back and forth. The u. S. Is seriously looking at starting a titfortat battle here. Taylor it is notable that they are not ruling out how would you do that in the e. U. . Laura they are trying to figure out, where would you draw a line of what is big tech and what is a smaller startup . You are looking at pharma, manufacturing. It is a really big 800 pound gorilla that makes it really hard to get every side to agree to the tax. This means that some countries like the u. S. Could end up losing out on tax revenue while some countries india and china could end up winning. Taylor bloombergs laura davison, thank you for joining us. Coming up, china is cracking down on cryptocurrency but miners are still creating tokens. We will look at the global you fight this is bloomberg. Next. Global effect this is bloomberg. Taylor this is Bloomberg Technology global link, where we join bloomberg daybreak australia to bring you the latest in global tech news. Im taylor riggs, with shery ahn in new york and haidi stroudwatts in sydney. Lets take a look at the top level tech stories of the day. Shery Goldman Sachs made its third and biggest Latin America Fintech bet yet. The bank is lending 125 million to mercadocredito in mexico. It plans to use the funds to triple its 100 million working capital portfolio. Goldmans previous two loans were to two mexican companies. Another blow to the coworking market space, wework competitor rocketspace is pulling out of london. The u. K. Employees have been told last month they would be out of work by december 20. Bloomberg has learned san franciscobased rocketspace will refocus on Funding Services for startups. Indias shopkeepers are uniting to take on the likes of amazon. Merchants staged around 700 sittings at bazaars across the country over the past week complaining that global ecommerce giants are engaging in predatory pricing. In october, indias government announced an investigation into the accusations. Amazon and walmart told bloomberg their operations comply with local laws to operate as thirdparty marketplaces. T