amazon spends more than $8 billion. they spent more than $8 billion less year in advertising and promotional activities, but that growth is something to think about. is it in terms of one-day shipping, is it prime-day related, or are they trying to fight back? emily: it's interesting given that we were talking earlier about google's cloud business and how it is still in third place, though the cloud business in general is continuing to grow and is certainly not a zero-sum game. what do you think the slowdown or the disappointing numbers have to do with? competition orf because of amazon-specific issues? >> i don't think it is amazon-specific issues so much as competition. microsoft cloud business is up 60% recently. we know that business is on fire . we do not have a lot of his ability to google members. numbers. now amazon is competing with two giants, i think that absolutely could eat into the top line going forward. emily: what about the advertising business which has slowlyowly growing, becoming a third-place conten

now she is taking on amazon. we will talk about the latest on europe's battle with silicon valley, next. ♪ >> they are hosting a number of businesses but also competing against those businesses in the very trade they do. now we are looking into the use of data to see if this is done in a fair way or will there be a case for us? emily: that is european union commissioner margrethe vestager. after five years battling big tech, the antitrust chief will step down from her post later this year but not without dealing one more blow to silicon valley. she plans to open a formal investigation into amazon within coming days. she has hinted for months that she wanted to escalate a preliminary inquiry to have amazon using sales data to undercut third-party markets. joining us to discuss is brad stone. how big of a blow could this be to amazon? brad: in the short-term term, probably not a huge blow. google is currently facing, think over $9 million in eu fines. it has been appealing them so that continues. this is the begi

emily: amazon opened a celebrity store a year ago. now they have all of these deals today tied to celebrities. they are starting to offer special products. lady gaga will offer an exclusive beauty product line only on amazon. how big of a deal is that? >> there are two things amazon has been trying to push into. fashion has always been an achilles heel for amazon. they have tried to go into basics by getting into and non-fashion categories. they picked up bigger business than macy's doing that. some of this is to get into the fashion accessories business. they are starting to realize the millennial crowd, they're going to start looking at different ways to attract that crowd back to amazon. channely has been a that has been added for a while now. emily: what are the trends you're falling one -- following on this particular prime day? over 48 hours. slightly more than last year. what is your take? >> prime day has typically been the biggest day of the year for amazon. this year, they expect that to be the same. one thing which has been

why is amazon suddenly caring? reporter: it is that they are beginning to get pressure from politicians, scrutiny from d.c. europe. it is bernie sanders today, but tomorrow, it could be both ends of the political spectrum. it is their growth. they are growing 20% topline per year. about one million employees throughout the world if you count temporary workers. . walmart, about 2 million. you can see a day when amazon becomes the largest employer in the world, and that will have pressure. emily: on one hand, we talk about the lack of workers to fill technical roles. on the other hand, there's an explosion of warehouse jobs, given what amazon and walmart are doing, and a decline in traditional retail jobs. what are the dynamics happening at the ground levels that has led amazon to do this? reporter: by some measures, it is the tightest labor market in half a century. you have companies complaining there's a shortage of the types of workers they want. of course, some management and economics experts would respond, are

we are seeing coalition's between amazon employees -- coalitions building between amazon employees. see the employees by the banding together to make the voices a little louder. emily: we will be following it. , thank you for the reporting. u.s. women's team was not the only winner of the world cup, with watchers 20% higher than the men's final. and in the netherlands, nearly 90% of those watching tv tuned in. go, team. that does it for this edition of "bloomberg: technology." our globalck out breaking news network tictoc on twitter as well. this is bloomberg. ♪ manus: this is "bloomberg daybreak: middle east." how the strong u.s. jobs report will factor in. goldman sachs says they are relying on the wisdom of the crowds. cuts, u.s. interest rate and the removal of the turkish central bank governor rocks the lira. , the islamic republic threatens to push uranium two 20% purity.

people are not going to buy a uy a device or amazon -- by google or amazon device and run apple services. 1.4, 1.5le has the billion unique users, the problem is that they are not taking advantage. what they still don't have is some sort of subscription-based service for purchasing an iphone. i think until the services are up to snuff, there still is this device-centric approach. one more point on this. apple gets 90% of its revenues almost from hardware devices. i think going all in on services at this point is too early. emily: all of that said, johnny apple's chief designer who has been there for 30 years is about to leave. he was incredibly involved in the apple watch, in the airpods, and some of the biggest hardware hits apple has had since the iphone. laura, does that concern you? device-centric question. doesn't bother me at all. what i care about is revenue per user and value in the ecosystem. are they adding news, movies, tv? those increase stickiness and lifetime value. watches, which creates stickiness? increaseshat stickiness to the 900 million users who are rich and global.

taylor: every time amazon enters the market, people get nervous. we call it the amazon affect. to be fair, these brick-and-mortar companies have done a very good job. target, walmart, of adapting. even when amazon came to the grocery business, walmart stepped up their game with online grocery delivery. what it can be said about these brick-and-mortar companies adapting and still hold onto their market share? jordyn: it says they still want to be in the game. they realize the game has kind of changed. their calculations have changed. but, when people think of going places -- you want to walk in, see things, have that excitement. the walmarts and targets of the world have able to maintain that excitement around back-to-school. prime day is not a real holiday. they are just competing on a fake holiday but they can also play that game too and manufacture some fun discounting days as well. taylor: we are in a whole new world when it is july 5 and we are talking about back-to-school. i just got my summer started. that was jordyn. if you missed the boston pops july 4 fireworks spectac

right now, the amazon echo has one tweeter. this one will have four or five tweeters which should be comparable to the homepod. emily: let's talk about sonos. do we know anything about -- they have made high-end speakers for a long time. certainly, many people have had sonos speakers in their home. i think we have lost mark gurman. all right, mark gurman is no longer with us. you can check out that story at bloomberg.com. what we are going to talk about now more is facebook and the record fine from the ftc -- $5 billion. we don't know more about it but alistair barr is likely with me on the set. tell us the nuts and bolts, what we know. all we know is the $5 billion number. alistair: we know the ftc commissioners voted 3-2 on that, with two democratic commissioners voting against it. we have been having a debate. $5 billion for sure and a split commission which is not ideal. they like to have 5-0 on these types of things. emily: there was some dissent. alistair: totally. it could mean we will have a debate of what happens on mo

at this point, amazon's u.s. e-commerce sales are not growing entire u.s.than the e-commerce market, and to me that is a little visually and. -- a little bit worrying. we will see how they do in the third quarter and beyond, but this company's growth is slowing down. at the same time, it is spending more on things like warehouses. the margins people have been excited about and amazon are coming down at the same time the growth rate is also doing that. emily: ross, tesla coming up next week. i know you always have provocative thoughts on tesla. where is your head at? ross: i am excited for next week. tesla has gone through an enormous growth phase. the first quarter was a stumble, trying to get that international rollout, but it looks like they have been successful with it. delivery numbers are over 95,000. i expect them to make a profit. the street has said this company is dead and bankrupt, and that has proven to be untrue. cars isnd for ev continuing to explode. the heat in new york is so bad today, if this doe

so, i don't see them outspending apple or amazon. so i don't think original content can do it alone. what i have said for some time, i think they should invest money in buying an existing content provider that has a library and a fan base and some following, similarly to how disney bought fox. i think that is much more likely. the other thing that people talk about less but will play a significant impact in terms of time spent on netflix is the growth of ad-supported streaming services like pluto tv, recently acquired by viacom, and others. i'm a big believer in 2020 that netflix has to launch some sort of ad-supported tier that they can maybe feature the original content library on. emily: interesting. what will you be watching for on wednesday when the company reports? >> a couple of things. i will be looking more at the international number. i think that is an area where they have more wiggle room in terms of the first mover advantage. in those markets, they don't have these huge global international companies they are , competing

asked the governor how he planned to bring amazon and others to the state. income tax and a very low business taxes. we have a tax structure that is randomly to businesses. soundly managed. companies know that so they sort i look athan incentive packages that states have to offer. we certainly deal with companies in that way. we incentivize companies to come there. they look at workforce development and we have done a lot in our state to create workers for companies that are coming there. particularly tech companies and technology-based companies. our administration has done something called a future workforce initiative that is establishing the kinds of education curriculum and pathways that will create the workers for the future. a presence has there. what in the future do you think you can offer tech companies? you are obviously making the case here in san francisco this week to put a bet on tennessee. >> the biggest thing we can do is show to them our commitment for workforce. jobs requirelated a workforce of the future. they require an education system

if you like amazon is leading the world in cloud at the amazon conference, at google, you feel like they want to. microsoft feels like they can. they have this incredible reach of every person in the world and how they can tap them into some cloud service. it is hard to ignore china. emily: if you can't ignore china, what could a potential impact of the trade war be? this seems to be not subsiding anytime soon. if tensions remain as they are, what does that mean for microsoft? aaron: microsoft strength in china has been around cloud services. early in that market, amazon caught up fast. amazon and azure, the market has been looking to go -- go global or access cloud services outside of mainland china. that market has potential to go strong, regardless of any iron curtain that might fall. they: microsoft felt antitrust pain in the 1990's with big antitrust hearings, but they have been largely out of the spotlight, with the recent raft of hearings at amazon, google, facebook, apple all in the spotlight. how can microsoft use that to its advantage? anurag: it is one of the biggest things fo

all of it stored on amazon web services. a former amazon employee has been charged. shares spiking after hours after reporting third-quarter results. revenue topped analyst estimates. apple saying it remains optimistic about potential sales of new iphone models set to hit the market in the fall. for more on apple earnings as they are unfolding, we are joined by max from bloomberg businessweek, with me in the studio. walk me through this. iphone sales missed estimates, services missed estimates, the forecast beat. what about all of these other indicators? is an interesting report. i would have said there would be no way they would be on top and bottom line. wearables was a big plus. they also used about $21 billion of cash on the quarter to repurchase shares and increase the dividend. they did some other things to kind of help along which initially you would have thought would have been a tough quarter for them, at least based on how they missed estimates on revenue and also services. we have the president warning that the trade war may not get that are anytime soon.

the power ofell -- google and amazon. fangipos list the two giants as a competitor or risk to their business. bitcoin's rally starting to waver again. the price of the currency down double digits since friday. first to our top story. any victory for beijing, president trump said he would hold off on any further tariffs for now and would relax constraints on huawei. manyonstraints remain and say optimism is overdone as many try to figure out what form the relief will take. huawei is still on the list usually reserved for rogue regimes and affiliated companies. on sunday, white house national economic council director larry kudlow commented on the move. >> this is not a general amnesty. they will remain on the so-called entity list and national security concerns will remain paramount. caroline: for more, we are joined by sarah mcgregor and sophie elstrom. sarah, talk to us about the orails surrounding huawei the lack of details. was it expected? sarah: there were a lot of questions on whether huawei would even come up in th

emily: next week, we have facebook, alphabet, amazon. i have a chart showing how microsoft has surpassed all of that. ross, what are you watching for next week? ross: i think all these companies are taking a different path. we used to look at it as they all kind of rose and fell together, but it is now as if they are all separating into their own orbits. it was from the explosion of facebook being a corrupt company. facebook is doing well in the advertising format because instagram is still a juggernaut, but their fines, their legal bills, the regulation, i just don't see a future where facebook is not heavily regulated going forward, and i think they are very clueless, and libra kind of proved that. on the others of the coin, we think amazon is doing well, and they are dominating the markets and continuing to drive growth in many areas. it is probably one of the most innovative companies in the world to this day, despite their size. as we go through different things next week, i think we will start to see divergence of the pads of these

when you are ou at the amazon conference, you feel like amazon is leading the world in cloud at . at google, you feel like they want to. microsoft feels like they can. they have this incredible reach of every person in the world and how they can tap them into some cloud service. it is hard to ignore china in that context. emily: if you can't ignore china, what could a potential impact of the trade war be? i mean this seems to be not , subsiding anytime soon. so if tensions remain as they are, what does that mean for microsoft? aaron: microsoft's strength in china has been around cloud services. it was very early in that emily: for two days this week, facebook's stephen marcus was peppered with questions about the social network's newly-proposed cryptocurrency, libra, but there was one question or statement that seemed to catch him completely off guard. take a listen. rep. sherman: we are told by some that innovation is always good. the most innovative thing that happened this century is when osama bin laden came up with the innovative idea of flying to wo airplanes into towers. th

is it amazon or microsoft? naomi: amazon from the get-go has been seen as the front runner for the contract. that's because, if you years ago won a very important crop contract from the cia. it burned the security approvals necessary to handle sensitive and top-secret data. recently, microsoft has been seen as a strong contender. we may get a surprise here. they recently also got a deal with the intelligence community. they are a known player in the defense department. many people in the federal government, many federal agents issued microsoft word. they definitely have a case to make to the dod. i think it will be interesting where the dod comes down on it. if it goes to amazon, there might be more concern about whether trump would weigh in or not. the microsoft could have an upset here. emily: bloomberg's naomi nix. thank you for your reporting. returning to facebook's libra. very social media company took a beating over its crypto plan in a hearing before the house financial services committee. chairwoman ma

amazon was an interesting story. they had a big earnings miss, but it was in an amazon typical way. developed a more robust one-day delivery operation, and that's the type of thing amazon investors in the past sort of embraced, even though it caused a hit in the short-term. i think the semiconductor stocks are a major story this week. instruments, semiconductors are a weak spot. texas instruments coming out and saying this is just a typical about fivethat lasts quarters of weakness. they see about three quarters of that. the semiconductor index rising to a record. this is just another boom and bust cycle in the chip industry. >> next week we've got apple, more chips. what are you watching? >> next week is a major week for semiconductor earnings. there are 10 members of the semiconductor index, about one third of the index next week. while the results are better than expected, they are down a lot. 14%.ng estimates by there doesn't seem to be a huge concern about the trade war yet. semi-socks --l semi stocks to report next week. >> what could the impact of that be? >> it's kind of sur

amazon at one point was one of the bidders. one of the networks that was pulled out of that was the yes network, sold for $3.5 billion to the yankees, but also amazon was one of the players. so more generally, at&t says it wants to sell regional sports networks, which are much more limited. they have the rockets, the penguins, the mariners. they are not nearly as big as the fox networks, but you are not integral to warner media. warner media is largely national media. networks are likely to be very interesting to companies that are local, like sinclair, two other regional broadcasters, but we step back and see all of the tech companies are now getting into sports more generally. we've got amazon, which is doing simulcasting of thursday night football. we had twitter, which is doing mls. we have facebook, which is supposedly bidding on international sports rights. we are about to see the tech companies get much more interested in sports. regional sports networks are likely to get a piece of that. caroline: and then sports teams

shares of apple, amazon, facebook, and alphabet down on after-hours trading as the u.s. justice department says it is investigating whether tech giants are harming competition. the head of the antitrust division laid out the reasoning, saying without the discipline of meaningful market-based competition, digital platforms may act in ways that are not responsive to consumer demands. and added the department's antitrust division will explore. -- explore these important issues. to discuss, we have chris calabrese, the vice president of policy for the center of democracy and technology. with us in the studio, eric hippeau, the managing partner of lerer hippeau. what is your take on the rising pressure at the highest levels of big tech? eric: it is a major reversal of the lack of enforcement we have seen in previous administrations. five of the top five companies in america are tech companies, and they are subject to antitrust activity. emily: used the word lax, implying that have not been doing enough? eric: i think they would like to on the privacy issue for sure and we are

the ftc was going to be looking at facebook and amazon. now this means that both agencies could be looking at these companies? a very broad -- it is giving itself a lot of leeway to take a broad look at these industries to find out whether further action is needed. this is basically them sending the signal that we are casting a wide net, we are not going to limit ourselves. all this talk about us getting this and the ftc getting that, we are not going to be bound by that. how there'st about a lot of people who believe that antitrust regulation in the u.s. which dates back more than 100 years needs to be updated for the 21st century to account for social networking, retail platforms that have taken over the internet and are killing the retail industry, need to be updated for search and all of the services being provided digitally from the apples, soogles, amazons, and facebook of the world. this seems to be what the doj is doing. do we need to look at these industries in a ? light?-- nin a new emily: all of these companies appeared on the h

how is what ibm is trying to do different than what amazon web googles, microsoft, and do with their clouds? olivia: they all provide different public cloud networks that have particular kinds of strengths. example,strength, for is its infrastructure services, or salesforce's cloud's strength is its customer management platform. you see companies buying and using these clouds for different reasons. what ibm is attempting to do is become the glue that will stick together or connect all of those different clouds onto one platform. you may be a company that needs to use salesforce for a particular reason and amazon for another reason. that means you may end up with up to 15 different cloud providers that all operate independently, and you have no way to bring them all together. ibm is hoping it will be able to become the connective tissue that aligns all of these clouds under one platform. one of the really interesting things here is this idea, this kind of strategic move to become partners with their former competitors, like amazon, microsoft, or google, is what ibm actually did in the

my sense is that amazon will take a slower approach. are clearly onn a very aggressive cap. we are -- path. we are charging ahead and feeling very confident about what we are doing. emily: a different view of the modern space race. thank you for sharing your work with us. that does it for this abuse -- this episode of "bloomberg technology." be sure to follow our global breaking news network to talk on twitter. -- tictoc on twitter. this is bloomberg. ♪ we're the slowskys. we like drip coffee, layovers- -and waiting on hold. what we don't like is relying on fancy technology for help. snail mail! we were invited to a y2k party... uh, didn't that happen, like, 20 years ago? oh, look, karolyn, we've got a mathematician on our hands! check it out! now you can schedule a callback or reschedule an appointment, even on nights and weekends. today's xfinity service. simple. easy. awesome. i'd rather not. >> the following is a paid program. the opinions and views expressed reflect those of bloomberg lp, its affiliates or employees. >> this program is a paid presentation for omega xl

my sense is amazon will take a slower approach. are clearly very aggressive folks, but we are feeling veryd and confident about what we're doing. emily: a different view of a modern space race. thank you so much for sharing your work with us. this edition of "bloomberg technology." on can connect with us twitter. this is bloomberg. ♪ hey! i'm bill slowsky jr., i live on my own now! i've got xfinity, because i like to live life in the fast lane. unlike my parents. you rambling about xfinity again? you're so cute when you get excited... anyways... i've got their app right here, i can troubleshoot. i can schedule a time for them to call me back, it's great! you have our number programmed in? ya i don't even know your phone anymore... excuse me?! what? i don't know your phone number. aw well. he doesn't know our phone number! you have our fax number, obviously... today's xfinity service. simple. easy. awesome. i'll pass. paul: welcome to "daybreak australia." sophie: we are counting down to asia's major market opens. ♪ paul: here a

this narrows the delivery gap in competition with amazon. they are also feeling pressure from an internet sales tax recognized in 19 states. bloomberg talked to the ceo and asked about the impact. >> there's no doubt we have seen a headwind from the rollout of internet sales tax. that will continue as more and more states roll it out until we fully implement it and work our way out of that next year. at the beginning of the year, no states had an internet sales tax. right now there are nine that have implemented, there are 30 have declared. i think it is a terrible policy. i think it is a regressive tax on small business. we've been advocating on behalf of small business for quite a wild. it's the only tax i know of where states effectively are taxing people out of state that can't vote for their politicians. so i think it is a bad policy, but at the end of the day, it is what it is. we comply with the laws of states, and if they implement a tax, we will collect it on behalf of sellers. i think practically, what it means for our business is

how is what ibm is trying to do different from what amazon web services, microsoft, google do? olivia: they all provide different public cloud networks with particular strengths. iszon's strength infrastructure services. cloud's strength is its customer management platform . when you see companies buying and using these clouds for different reason. ibm is trying to become the glue that will stick together or connect all of those different clouds onto one platform. you may be a company that has to use salesforce for a particular reason. up to 15 different cloud providers that all operate independently, and you have no way to bring them all together. theis hoping it can become connective tissue that aligns all of these clouds under 154 -- under one platform. the strategic move to become partners with their former competitors is what ibm actually did in the 1990's regarding the global services platform. it kind of partnered up with software providers, and allowed hardware, weour will partner with you instead of run against you. emily: a potentially huge technological transition un

at the amazon conference, you feel like amazon is leading the world in cloud. at google, you feel like they know they want to. likecrosoft, they feel they know they can and they focus a lot on the incredible reach of every single person in the world and how they can tap them with some sort of cloud service. it is hard to ignore china in that context. emily: if you cannot ignore china, what would the impact of the trade war be? this seems not to be subsiding, so if tensions remain, what does that mean? >> microsoft's strength in china has been around the cloud services. it was early in the market. amazon caught them fast. the market in china is for companies that want to go global or access the cloud services for the offerings they are providing outside china. so that has the potential to go strong, regardless of any iron curtain that might fall. emily: microsoft felt the antitrust pain in the 1990's with big antitrust hearings, but they have been largely out of the spotlight with the recent raft of hearings with amazon, google, facebook, apple all in the spotli

all of this was hosted on amazon servers using amazon web services. lyft has a $300 million contract with them for the next three years to pay for that. on top of that, google owns 5% of lyft and has a board seat. it's obvious that google and amazon are very deep within this economy. when you look into the filings, you see how concretely they are kind of the infrastructure behind how these companies work. >> in some ways, it is a blessing and in some ways it is a curse. you focus on amazon and google, and from the blessings side of the equation do you see this as , a good element that these companies have so much riding on , whether it be financially but for future revenue streams from these ipos? >> i don't know, caroline. there is good and bad. the benefits of cloud computing is that it allows startup companies, companies that are want to go public eventually or are going public to avoid infrastructure cost. cost you can treat your i.t. needs as variable costs rather than big fixed costs. you don't need to build up a large i.t. department to scale u

amazon tweeted it was the biggest 24-hour sales day in amazon history, at least day one. we are still waiting on final numbers. there were some shoppers complaining that they were seeing technical glitches. there was a spike in searches -- spike in service for canceling amazon prime. so, presumably some of those people bought some things and wanted to cancel. what is the verdict so far, 36 or so hours? brad: sitting back and watching prime day, you have to marvel at what a marketing event they have concocted out of thin air. they created a holiday season in the middle of the summer. a holiday season brings with it a lot of problems. you've got porch pirates. you've got disappointed customers. all sorts of things, the frenzy. overall, you have to sit back and admire the company for bringing itself to a peak season in the middle of the slowest time of year, right? they have created a frenzy where otherwise it would not exist. they not only have done it themselves, but brought the rest of the online retail industry with them. you see everyone else offering sales as well. can

we note in the story that his , came from and coo amazon, didn't last three years. there are questions about whether they could sustain somebody in that role. it may be telling that they don't plan to hire another coo. emily: lyft shares are down. what is the plan? they will have to outline that. profitobably won't have but they will have to disclose in a week and a half. the plan is they are still somewhat in growth mode, spending a lot this year, expanding throughout the u.s. where they have a huge presence. there's a big world out there to expand to. they haven't quite outlined how they are going to get to profit. emily: they did say this would be the year of spending. off people inng the marketing department. the: they are cutting marketing department by one-th ird globally. they: if those are what call extraneous people, that's a lot of people. something put out that talks about how they saw the company had been slowing down, too many people overlapping and responsibilities, so they have ordered a cut. something he says in the memo is that it is indicative of a

all of this was hosted on amazon servers. lyft has a $300 million contract with amazon web services and google has 5% of lyft and a board seat itself. so it's obvious that google and amazon are very deep within the digital economy, but when you look through these files you really see how concretely they are kind of -- that the infrastructure behind how many of these companies work. >> and in some ways, this is a blessing and some ways it's a curse. mark, you focus on both amazon and google. and from the blessing side of the equation, do you see it as a good element that they -- that these companies have so much riding on, whether it be financial or from that future revenue stream from these recent i.p.o.'s? >> i don't know, caroline. there's good and bad to that. the benefits of cloud computing is that it allows startup companies, companies that have eventually want to go public, or are going public to avoid a lot of infrastructure costs. you can treat all of your i.t. needs as variable costs rather than big fixed costs you d

that really advantages someone like amazon. we always see them increase their share later in the season as consumers don't have the same confidence in getting no deliveries on time with other retailers, but they do with amazon. the compressed season will really be to amazon's advantage. that is another element to upside in q4. emily: coming up, tech giants visit the white house. the trump administration hosted some of the biggest tech companies to talk about the fallout from the trade war and the ban on huawei. and if you like bloomberg news, check us out on the radio, listen on the bloomberg app, and in the u.s. on sirius xm. this is bloomberg. ♪ emily: white house officials are sending a delegation to china next week led by u.s. trade representative robert lighthizer. this is after a high-level meeting with the trump administration and ceo's from google, broadcom, cisco, intel, and qualcomm. the meeting was geared towards easing a ban on sales to china's huawei. i spoke to a representative from arizona's seventh district. >

that disadvantages amazon. their shareases later in the season as consumers don't have confidence of getting there products on time like they do with amazon. that compressed season will be to amazon's advantage. was an analyst for the marketer. a tech giant visits the white house, the white house host the biggest tech companies to talk about fallout from the trade war with china and the ban on while -- huawei. this is bloomberg. ♪ emily: white house officials said they would send a delegation to china read by robert lighthizer after a high-level meeting in washington between the trump administration and ceos from google, broadcom, intel and qualcomm. the meeting was geared towards easing a ban on sales from china's huawei. >> i think this is a very dangerous meeting. huawei is not an independent actor. it is an arm of the chinese intelligence agency. us doing trust that business with them will not have negative consequences. i just read the washington post this past weekend and huawei was working with a shell

we have seen companies -- snapchat went public and migrated from googled amazon. -- google to amazon. as long as you can migrate, i don't think there is a risk. caroline: what about the regulatory viewpoint we are seeing from capitol hill on amazon and google? is there a risk of them being so intertwined with the rest of the tech ecosystem? >> possibly. on regulatory risk is something that has become a major investor issue across technology. we just posted a call earlier today with an antitrust expert to talk about the risk of these platforms. particularly google, but also amazon and facebook. i think the chances of these forced to divest assets is extremely unlikely. i think government regulators would be very low the two unwind that. i think it would be hard to do that. looking at fines or changes that are modest at the margins. one quick comment, on the presidential democratic debates. big tech did not come up at all. except for the one time it did was some concerns over whether amazon is paying its fair share of taxes. the issue of google or facebook, that didn't come up, and that

mark, you focus on both amazon and google. from the blessing side, do you see it as a good element that these companies have so much riding on them, whether revenue or from their future revenue stream? mark: there is good and bad. the benefits of cloud computing is that it allows startup companies to avoid a lot of infrastructure costs. you can treat those as variable costs rather than large fixed costs. you don't need to buy and build up a very large i.t. department to scale up a business. that has been the magic behind aws, amazon web services, also behind microsoft azure and google cloud. in many ways, what they are offering is a real benefit to these companies. there's no doubt that in order to scale up on the internet, you need to pay one of those three cloud providers. and then if you are a consumer and you need to get consumers to use your service, get to know you, you will probably be spending money with google, facebook. probably just those two. that is how you get brand awareness on the internet these days. i don't k

froms this different microsoft, amazon? providethey all different public cloud networks that have particular strengths. amazon strength is infrastructure services or salesforce, cloud strengths, customer relations management platform. you see companies that are buying into the services and using clouds for different reasons. what ibm is attempting to do is to become the glue that will stick together or connect all those different clouds onto one platform. you may be a company that needs to use salesforce for a particular reason and amazon for another reason. that means you may end up with up to 15 different cloud providers, all operating independently in different silos. you have no way to bring them together. ibm is hoping it will be able to become the connective tissue that aligns all the different clouds under one platform. this idea, this strategic move, to become partners with some of these former competitors, like amazon, microsoft, google, is what ibm actually did in the 1990's regarding the global business services