Suing the fcc, huawei. The first ever Safety Report detailing Sexual Assaults in the news for uber. Our top story, a big jobs day. The u. S. Economy added 266,000 jobs. According to one source, tech grew. Joining us now is our guest. Adam, such a big day. Where does tech fit in for you today . It is the sector that continues to grow and out case overall job growth. What ever stories, individual thisnies and concerns, sector is adding jobs more quickly than the rest of the economy. Islor wage pressure something we have been talking about. We are seeing wage growth as well. Our tech jobs following that . Wage growth is broadbased. ,ou see it across industries and it has been stronger for low labord workers lately, as markets lacked gets lower and lower. Those are the worker starting to benefit now. Taylor as you look across the tech sector, what industries and sectors are winning . Good,nformation is doing , tech innications general, data processing. It is hard to say it is one sector versus another. It is occurring across the board. Broadbaseds a improvement. Me about thato labor skills gap. ,e talk about the mismatch where are we in tech . Arent not that workers available. It is not a mismatch in who is able to do this work. It is where they are. What you have is in crowded, expensive cities, it is harder to find workers, but there are workers to hire. As a result, companies are finding it in their interest to hire workers remote in any way they can to connect between the places where the jobs are in the workers are. Taylor do you sense regionally where that is. I am in San Francisco where people talk about needing more workers and cant find them. Where are their cities where labor is available . If you look in rust belt cities, cities smaller than your big metropolitan areas, you can find workers there. Lower costofliving places are other areas. You have College Graduates coming out of the pipeline every year that bring more supply. Leaving because there isnt enough work for them. So its not having people to hire, it is a matter of working harder to find them and going to where they are. Taylor how cyclical is tech hiring . Seemedodds of recession to be forecasted later in the future. When the economy does well, does under hiring, or economic agnostic . You dont have as many Business Cycles to look across to see how modern Tech Industry does. And certainly during the tech bubble, you had a huge run off at the time. It was recently that we started to reach the Employment Level peaks when you are focusing on the tech sector. The cyclicality matters. It matters for every industry. But tech is sort of its own thing as well. Taylor i have to ask, adam, where are the female jobs . Adam they are throughout the Tech Industry as well. I think every industry is working hard to find more people. And they are going to have to hire men and women as well. Taylor adam, thank you for joining us. Adam thanks for having me. Tolor now switching gears videoconferencing, zoom video was one of the celebrated tech ipos of 2017 that went up but after a strong thirdquarter and raising its fullyear revenue outlook, the stock has been tumbling. It is down nearly 10 in the last few days. To tell us what is going on is our guest. I have to ask, solid earnings, good guidance . What happened with the stock . Lets be honest here. The magnitude of thirdquarter earnings seem to be pretty big. Obviously, wall street was not prepared for the magnitude of which it was placed on the prior quarters. One thing the market and analyst is you can tell this is a what have you done for me lately type of industry. One thing investors want to see his continued growth, especially as it seems like we might be coming into a recession as well. Taylor did it seem like expectations coming into this were just so high that nothing was going to satisfy analysts . Kamaron that is the sad thing about it for a company that is zoom video. They had a really good ipo in april. One thing investors wanted to work is stash the cash. Definitely. I will say that it was superhigh going into the earnings report. Taylor yeah, lets talk a little about the fundamentals of the company. They revised their full year outlook higher. What is driving that . Kamaron it is definitely revenue and their whole recruiting process. That is one thing the ceo spoke about on the call today. That seems to be a really big growth driver for them. Particularly as there seems to be more traction with the larger Enterprise Companies. That is anything for zoom video to figure out. How can they find their niche in this market as they compete against cisco or microsoft but still knowing consumers are using facetime and skype . Taylor you know, despite some of the bearish commentary today, analysts overall remain pretty positive on the longterm outlook for the company. What do you see as the longterm opportunities . Spokey analysts today about several catalyst. One thing you have, but before we get to the catalysts, one thing analysts did speak about is the lofty valuation. They revised their estimates aggressively, so that way, the valuation kind of makes sense for what is coming up. Taylor i have to say, it is one of the few ipos frankly that managed to do well. Any sense of what is setting this Company Apart from some of the other botched ipos we have seen . Kamaron just the brand itself. Zoom video comes off as cool. That is the thing. Thats the thing, are the are they marketing to everyday consumers or something that is for Enterprise Companies . The ceo kind of spoke about the model working for them. That was a question that came up on the earnings call, but it seems to be going well. Taylor ok, final question here. Who is the competition to take on this cool company . Kamaron we have to think about the big players. We have cisco, microsoft, adobe. Also i would throw in, lets see i said microsoft. I would say ring central as well. Taylor wonderful. Thank you for joining us. Now, tmobile is preparing for a crucial battle over its sprint deal. The fight begins monday in a federal court in manhattan. A judge will weigh arguments to from a group of states that say he should block tmobiles proposed 26. 5 billion acquisition. The states say it will raise prices on consumers by eliminating competition in the wireless business. But tmobile says by combining with sprint, it can reduce costs and lower prices. Coming up, we will get the inside scoop from huawei as it battles the u. S. Government. Our conversation with the chief Security Officer is next. If you like bloomberg news, check us out on the radio. You can listen on the bloomberg app, bloomberg. Com, and in the u. S. On sirius xm. This is bloomberg. Now to a story we are continuing to follow, huawei versus the u. S. Government. On wednesday, we reported how the Chinese Telecom is suing the u. S. Communications commission in a fight for greater u. S. Market access. On wednesday, their chief legal officer made huaweis case to reporters. Any claims about National Security are dangerous. Politicians in the u. S. Say they are very concerned about cybersecurity, and we share these concerns. The fact is banning a company like huawei just because we started in china, this does not solve any cybersecurity challenges. Taylor joining us now from washington, huaweis chief Security Officer. Andy, i have to ask, why spend the time and money suing the fcc was, frankly, the u. S. Is such a small market for you guys . Well, we are really sorry we had to do it. It is disconcerting. There are good people at the fcc. This action they took is beyond the pale. As we allege enough our lawsuit, they have ignored the constitutions, the statutes, due process under the statutes, and they have not followed their own precedent. A rule of law country that we are rightly proud of, but this commission has not acted consistent with the law so we were forced to take legal action. It is not about our ability to make money in the u. S. We want to protect our customers and want to help serve over 300 suppliers for which over 40,000 jobs depend. Taylor so you dont think this has been an outdo distraction from focusing on some of your bigger markets like europe or asia . Andy we are in 170 countries. I have been to 26 countries. I was recently in moldova, only 2 Million People there. Only 2 Million People there. We are about digital inclusion, about bringing the benefits of technology to the underserved. Half of the worlds population is underserved. That is what we are really about. Taylor you mentioned some of the u. S. Suppliers. Some of those received the right as well to start selling back to huawei. Do you feel in your opinion that is a fight that you one in that won in that case . Andy we dont think of it as winning, although it will be difficult if we cannot buy from other companies. We will be ok in the long run. Executives are not going to lose their jobs. But we think there is a greater likelihood a lot of americans will lose their jobs. We believe those jobs are really pawns in the u. S. Trade war. It is really a necessary and not related to National Security. Those companies are not allowed to sell to us. Taylor so you would like to see the huawei National Security issues separate from the trade war. Andy well, we believe the issues related to security, and i participated in meetings at the United Nations in new york on tuesday where we are talking about what is necessary to promote a safer cyberspace. And it requires a joint responsibility between government and private companies, between Telecom Operators and equipment operators. There are sophisticated factors. We have to make sure we test everybodys product, test the code, hold the companies and governments accountable to do the right thing. That is the conversation we would like to have with the u. S. Government, but unfortunately they are not willing to talk with us. At least we can discuss those issues with the United Nations this week. Taylor what do you say to people with concerns that huawei is turning over data to the beijing government . Andy at least five nations in the world have the ability to hack into everybodys technologies and products. So to make america safer, we have to make sure mechanisms are in place that govern the telecom and operators, equipping suppliers, regardless of where they do business, regardless of where they are headquartered. We need to and are ready to put in mechanisms to guarantee the u. S. Government our products are not back to us from the Chinese Government to guarantee the employees and the responsibilities, that they are not doing anything improper. There are guarantees that are allowed nokiahat to do business in the United States despite their deep ties to china. We want to have those discussions. It is not about trusting anybody , it is about putting mechanisms in place to guarantee we are safer. Taylor can you guarantee they have not turned over data up until this point over to china . Andy well, we can guarantee going forward. A lot of folks forget the equipping vendors do not sell the equipment. There are very strict requirements, as there should be. The equipping vendors who were hired to update the equipment do so in a way under very controlled supervision of those operatives. For example, in the u. S. , we only use specially configured laptops. We need written permission every time we are going to have access. Every keystroke is recorded, so the customer has full transparency on what we access and what we do with it. Those are the kinds of guarantees that need to be in place for everybody so we have a safer cyberspace. Taylor you said you would like to have discussions with u. S. Administrations. Have you had any contact with the administration or other federal agencies . Or do you feel like you have been shut out completely . Andy we have been shut out. In fact, when you look at the independent federal communications commission, their rulemaking, they are supposed to hear from the people that are affected. They are supposed to follow their own rules in their own s. Ecedent we want to have conversations with the u. S. Government. If it was not for the u. S. And china trade war, i think we would be having those conversations, but we are a pawn and thousands of american jobs are in the balance, and it is a shame. Taylor are you will read other european nations are considering a ban on huawei or zte the way the u. S. Is . Andy the u. S. Government has been putting pressure on our allies and countries around the world. And you saw that then Prime Minister theresa may of the u. K. Angela merkel of germany. They said the u. S. Government has given no evidence of significant cybersecurity wrongdoing by huawei. What i am encouraged by and what we are encouraged by is what the European Union is doing with their 5g risk assessment. They want to have mechanisms to have a comprehensive approach to address the most significant risks in cyberspace using international standards, recognized testing, independent testing, including code review. That is the kind of thing that is encouraging. Maybe as those efforts progress in europe, maybe the u. S. Can take some lessons from that so we can be safer in cyberspace. Taylor a conversation that will indeed continue. Thank you for joining us. Andy youre welcome. Taylor and coming up, citi is expecting a strong Holiday Quarter for apple and raising its price target for the company. We will talk to one analyst on the move next. Bloomberg technology is livestreaming on twitter. Check us out and be sure to check out our Global Network on quick take on twitter. This is bloomberg. Apples price target was raised to 300 from 250 from forecasts strong results in the companys Holiday Quarter. The pricing strategies and recent demand trends were factors. Walk me through your thesis as to why this holiday could be better than last year. Last christmas, apple preannounced after january, in fact it was january 2. It was a negative preannouncement, the First Time Since the iphone launched, which was over 12 years ago. A remarkable, terrible, disappointing quarter. Some of the hottest selling products are the wearables. Apple watch and the air pods, they are selling extremely well. We believe people will be surprised by the results driven by those items. Taylor i want to talk about apples ability to pass on the costs. What is their ability to raise prices on the consumer when it comes to that iphone . Jim great question. I got to tell you to be honest when they hit 1000 for an iphone, that was the ceiling. They saw a slow down once they hit 1000. Beyond that, the reality is what they are doing is packing more and more features into these phones. Things like memory, screen content, capacitors, resistors, all those things typically come lower in price. Instead of making the iphone cheaper and less expensive, they pack more quality into it so that consumers can have a better experience. They try to keep their prices generally stable, except the apple watch now, the older version, is selling below 200. Teenagers want this left and right. And these lowerpriced items are starting to appeal to the younger generation. Taylor you mentioned the watch, wearables, services. I want to show your chart im looking at in my terminal here, which is the Services Revenue growth. We have seen it decline a little bit. What do you need to see from the company to get the reacceleration of that Services Revenue growth . Jim there are two things we are looking at. First, apple arcade. This is a studio for me or you as a parent you can look at and put in different parameters for your child. Do they want education . Do they want more racecar, motorcycle crash games, violence . And put on some parameters. Over time, they can continue to change the parameters to be more loose. That is different from going out and buying a single subscription to a videogame your child may become bored with in three or six months. We are looking for apple arcade. It was launched in september. Everybody got a 330day free 30day subscription for free. We will see how people renew on that. The second thing, apple tv. A lot of content and things coming up. So far, they have not been overly successful with it. We are watching this closely. But it will be harder to track because when you buy a new iphone today, you can one year of free subscription. The revenues from that will come from a year from now. We are monitoring it. It is important. But it is decelerating, mostly because it is a law of large numbers, about 10 million a quarter. Taylor i want to talk about tariffs, potentially december 15. If it hits, how much does the it fall . Jim tariffs are bad. They are bad for apple. They are back for technology. It is basically a tax the government is going to put on the corporations, who will likely pass it on to consumers. Taylor will apple pass it onto the consumer . Jim i dont think they will. I think they will bite the bullet and shift production to lower cost areas that do not have tariffs. For example, india. That will be the next generation hub. Also, mexico, guadalajara, vietnam. These countries are going to benefit less so than the United States, but with a benefit. Taylor will they do that in the next two quarters . Jim they cannot do it that fast. Great question. To employ an entire dorm of workers, thousands of people, it cannot be that fast. Taylor you have been doing it for 20 years. I could have made this conversation go on for 20 more minutes. Jim, thank you for joining us. Jim thank you. Taylor coming up, we go over the top tech stories of the week, including that dramatic exit. How the company will perform under the new leadership. That is next. This is bloomberg. Taylor this is Bloomberg Technology. I am taylor riggs in San Francisco and it is time to go over the top s