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? is it because of competition or 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 -- google 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 been slowly growing, slowly becoming a third-place

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

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.

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

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.

now she is taking on amazon. we will talk about the latest on europe's battle with silicon valley, next. ♪ ms. vestager: 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, i think over $9 million in eu fines. it has been appealing them so that continues. thi

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

what does this mean for amazon then? spencer: it is tricky news for amazon. they have enjoyed rapid prime member growth. once they lock in a prime member, they can count on that for more sales through the year. the typical prime member in the u.s. spent a little more than twice as much what i nonprime member does on amazon. prime, even though it is a big tale of deals, the revenue they make is not as important as a new prime member sign-ups because that is where the revenue keeps coming year round. the indication that people who were not prime members are simply joining for a brief period to get the deal and backing out is bad news for amazon's prime member recruitment strategies. paul: what are people buying anyway? some of the purchases do not sound terribly glamorous. spencer: it is not much different from previous years. big emphasis on amazon's on gadgets like the echo speaker, fire streaming stick device, e-readers. it is typical from previous years. some kind of lingering favorites like the instant pot that is selling well and some laptops and electron

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

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

amazon is lagging, off 1.9%. net sales looking good. -- operating income will be $3.1 billion, the estimate was more than 4 billion. alfa bank -- alphabet was killing it. they will be buying back shares and beat net sales and profit. a nice move in the other revenue. intel, athen you have big chip maker. they are guiding higher for the third quarter and the full year. they beat on second quarter revenue and starbucks reported fastest cell growth they have seen in about three years. that is largely because of the higher traffic and they are boosting full-year outlook to about 282 per share. that is from a range of 275. taylor: we are going to stick with these earnings. i want to bring in bob o'donnell, chief analyst at a consulting firm. thank you for joining us from san francisco. i want to focus on amazon, because those shares are declining among what has otherwise been positive news. we were expecting a margin hit, given we have been investing in that one day prime. investors seem more caught off guard then we

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

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

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

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

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

jason: i love catching up with brad stone on amazon. he can go deep on the amazon go story but then we get to spend a little extra time with him. check that out on our podcast. carol: and you can find more stories on businessweek.com. jason: and check out our daily show. carol: more bloomberg television starts now. ♪ ♪ emily: i'm emily chang and this is the best of bloomberg technology will bring you all of our top interviews from this week. tech on the hill, all under scrutiny this week. representatives from amazon, apple, and google, all on the defense. plus, netflix needs to get stranger. subscriberge after a plunge -- dip.

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

an explanationto about the amazon complexity. >> amazon has this dual role, hosting a number of businesses , but also competing against them. we are looking into their use of data to see if it is in a fair way or will there be a case? to discuss,ng us our senior tech editor, brad stone. how big of a blow would this be? >> in the short-term, probably not a big blow. these things take a long time. google is facing $9 billion in eu fines. it has been appealing them, so that continues. this is the beginning of an investigation. or at least the expansion of an investigation for amazon in the eu. i think vestager is going to demand a kind of level of information that amazon has been unwilling in the past to provide. to the extent of which the company takes data from its marketplace how certain products are selling. seasonally, overall. and then moves those products into its first party marketplace. in other words, decides to sell what other sellers are offering, itself on the first party marketplace. amazon says it does not look at individual seller's data. if vestager could demand information f

this was on amazon servers using amazon web services. on top of that google owns 5% of lyft. google is buried deep within the digital economy. when you look into it you see how concretely they are the infrastructure behind how these companies work. >> in some ways it is a blessing and did some ways it is a curse. you focus on amazon and google and from the blessings side do you see this as a good element that these companies have so much riding on but for future revenue streams? >> there is good and bad. computingts of cloud is that it allows startup companies that want to go public eventually or are going public to avoid infrastructure crossed. needs atreat your i.t. variable costs rather than big fixed costs. build up aeed to large i.t. department to scale up a business. that is the magic behind amazon ure services and microsoft az and google cloud. there is no doubt that in order to scale up on the internet you are going to pay one of those three cloud providers. -- if you a consumer need to get consumers to use your service or your application you will be spending money w

this is amazon's debt to revolutionize retail. carol: i was fascinated by the weighing of items, people moving products around if something is on the wrong shelf. tell us how it works. is something my colleague and i were curious about when we started to research this. one thing i knew from following amazon was they have worked on this for an extraordinarily long time. probably longer than most companies would invest. they start this in 2012. jeff bezos told a top lieutenant, figure out a way to do something unique in retail. this is what they went on. they investigated a number of to removeke it work the lines of the checkout. they were looking at rfid chips and packages, having customers scan barcodes. what they landed on was the combination of computer vision sensors. there are cameras on the feelings. there are cameras behind the shelves. there are weight sensors in the shelves. --combines a shattering smattering of inputs to figure out what has been trade away as opposed to what has been put back. the other thing is there is

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. >

let's take a look at those amazon results first. how important is growing at sales to their growth and outlook? >> that was one area that was actually pretty strong for them. we saw about a 37% year-over-year increase in terms of their other revenue category, which is basically their ad actually, that was even though the quarter was interpreted as being somewhat negative because they missed on the bottom line, that was actually part of the report that was actually very strong, so that is encouraging that they are continuing to garner more of that online advertising dollars because we saw great numbers earlier this week from facebook and snap in that same space. call: that's the encouraging side of the picture, but amazon has had to defend its story around this one-day delivery. how is that cutting and profitability, and does -- is amazon's story believable going forward that this is the way to go? >> it's not really much different than we have seen from amazon over the years. they came out, said they are going to spend $800 million

to favor amazon products? >> our algorithm aims to predict what customers want to buy. we welcome now from washington, david, he served as the policy director of the bureau of competition of the fcc. welcome, good to have you with us. you heard one of the exchanges where you heard lawmakers say you have too much power and you are abusing it in your the tech people say no. is there too much power, too much concentration in big tech today? >> from a competition perspective, power has to be defined in terms of a specific market. you look at the example of amazon, they are in intensive -- intensely competitive retail market. they the relatively small market share. it is important not to look just at size. what amazon and some of these other competitors do is they help make the market more efficient by eliminating middlemen, by having greater at -- access for consumers and ultimately leading to lower prices. necessarily something you need to be concerned about. david: the definition of the market is critical here.

give us a sense of how big this is for amazon. sarah: there is expected to be $5.8 million in sales that would be an 11% increase in what it saw last year. it is important day for them to satisfied customers and an important day for them to remind people why they have a prime membership in the first place. we reached this moment where walmart and target are starting to match the speed of shipping that has been promised by prime and doing so without a membership. this is an important test for amazon to show why people should be shopping there. wonder how much amazon has created a new shopping holiday that work for everybody. we have seen other retailers that we are cutting prices, too. not just shop at amazon. you will have to go to school at some point. why not start in the middle of july? sarah h.: this has become a rising tide that lifts all boats. 250 retailers expected offer sales today, compared 194 last year. this does into be moving back to school shopping season into july. usually august would have been peak. it is now spu

that really advantages someone like amazon. we always see amazon increase their share later in the season as consumers don't have the same confidence in getting their deliveries on-time with other retailers as they do with amazon. that season will really be to amazon's advantage. that is one upside to q4. an,ly: that was andrew lipsm analyst for emarket. coming up, we invite 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, check us out online, on sirius xm. this is bloomberg. ♪ emily: white house officials said they would send a delegation to china next week led by robert , lighthizer. this is after a high-level meeting with the trump administration and ceos from google, brought come, cisco -- brough broadcom, cisco, intel, and qualcomm. it was geared towards easing a sales ban on huawei. i spoke to a representative from arizona's seventh district. >> while huawei is not an independent actor, it is an arm of the chinese government. you cannot tru

that includes amazon and google. jason: we spoke to neri about his plan. >> we believe the future will be eccentric and clout central and data-driven. and the cloud has to be closer to where the data is being generated. that is the edge. the edge is where we live and work. that's where the action is. so we have a clear strategy, to provide the right conductivity with a secure connection, analytics, and move computing closer to the data. it is cheaper to move the cloud to where the data is. not the data where the cloud is. so we have made a bold statement last year to invest $4 billion to develop that set of technologies that will accelerate outcomes. carol: how much pressure are you feeling from the likes of amazon, google and others? i know you have a partnership with google, but some of these other companies that have put their stake in the ground. how much pressure do you feel from them. >> many have moved to the public cloud. but when you look at the enterprise level, even the midmarket, see that not many product

two or three times as much as nonmembers on amazon. the big business is locking them into get that big spending going forward. tell us a little bit about the competition that amazon has seen from rivals. wal-mart said, amazon is doing a two-day sale, so we are going to do a four-day sale. they are starting the day before prime day, ending monday after. bargains on whenever junk you need. specifically having a computing sale on the same days as prime day. the most interesting was ebay, where they did their crash sale, kind of mocking amazon's web glitches last year. a lot of customers frustrated. ebay launched a crash sale, crashes, jumpazon on over to ebay and check out our deals. they even had a commercial poking fun at prime day, saying they are selling a bunch of junk. see the real things on ebay. amanda: always great to have your thoughts, thank you. a quick reminder, you can catch all of the interviews on the bloomberg. the function is tv . from toronto and new york, this is bloomberg. ♪ i am mark compton with bloomberg's fi

. >> nobody knows amazon like brad. he is the person to dig into jeff bezos's next attempt to slice into retail. uber might want to take a page out of jeff bezos ' book. carol: this is bloomberg businessweekcarol: ♪. jason: welcome back to bloomberg businessweek. i am jason kelly. carol: i am carol massar. still ahead, businessweek talk. solutionus, a special section called prognosis, meeting health care issues head on. carol: it has been 15 years since the first moon landing. how we got there. jason: we begin in the features section. the company that reinvented retail are not done. this is called amazon go. major cities in america, you may understand it. we went to the guy that literally wrote the book on amazon and bezos. >> there are 13 of them now. san francisco, seattle, chicago and new york. they are adding them slowly. it is best described as like a convenience store where you can pick up lunch or breakfast, a smattering of grocery store items. the big innovation and the reason things -- amazon has been working

amazon's take on nasdaq you see futures rising. let's check in on the markets in asia, with juliette saly, in singapore. juliette: a bit of a risk off session in asia, ahead of the u.s. gdp later. we got industrial production numbers here in singapore, a beat, rising 1.2% in june, first is estimated 0.8% drop. about 0.6%, yen steady at 108. indian stocks fluctuating on earnings coming through, but elsewhere it is very risk-off, and australian stocks off near all-time highs. the kospi down a third session in a row. i want to focus on stocks in japan. we heard softbank will launch a second division fund, with -- vision fund, with $108 billion in funding, including with partners, the likes of apple. this investment, daiwa securities, is likely to boost earnings. bloomberg opinion says masayoshi son has a lot to do with the second fund, because there aren't many didis, grabs, ubers to find with this new investment round. tokyo, on the close in with a 99% plunge in first quarter profit, doubling the jobs it will cut to 12,500. no surpri

amazon is describing this as one of the biggest investments of its kind. that iscts a company between the tightest labor market and have a century and a political pressure on amazon from figures in both parties. and rising activism by amazon employees who are not content with the conditions there now. amazon is always in the crosshairs for putting retailers out of business. how much of this is getting ahead of some negative publicity or catching up to political pressure? is trying to position itself as part of the solution. amazon would say that they are helping employees who want to rise into other positions within warehousey, including workers who want to do other things. and workers who may want to move on to another type of job somewhere else. they find working at amazon more attractive if the career ladder is made that much easier to climb. that is how amazon is describing this. they are not saying this is about automation. will beainly it perceived as an part about how jobs are changing and the need to prepare workers for tasks that this company and

samee does not have the assets that amazon has. amazon kind of splits the difference. we can talk about their of as a platform player, but the thing that makes the money is amazon web services. so the effectiveness of that business is not necessarily to do with their platform, it is the things on top of it. anna: thank you very much. let's get to our top stock stories. annmarie hordern has the movers. annmarie: good morning. this is the biggest gainer on the stoxx 600, up more than 15%. , biotech technology company boosting revenue forecasts for the entire year. asml, they are to the upside. coming out of global growth slowdowns. pretty much unscathed after second-quarter results. while they are forecasting third-quarter sales trailing analyst estimates, they're keeping the outlook -- 2019 outlook the same. to the downside, down more than 2%. it is the biggest silver miner, cutting production forecasts for the year. we have not seen the stock drop that much since april. matt: thanks very much. i want to offer a sincere apology. you may notice we are experiencing some t

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

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

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

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 as getting deliveries on-time. that season will really be to amazon's advantage. emily: that was an analyst for the marketer -- for emarketer. analysts visit the white house. of the biggeste tech companies to talk about the fallout from the trade war and the ban on huawei. and if you like bloomberg, check us out online, on sirius xm. this is bloomberg. ♪ emily: white house officials are sending a delegation to china led by robert lighthizer. this is after a high-level meeting with the trump administration and ceos from google broadcom, cisco, intel, and qualcomm. it was geared towards easing a sales and on -- ban on huawei. i spoke to a representative from arizona's seventh district. iswhile way is not -- huawei not an independent actor, it is an arm of the chinese government. we cannot trust it will not have negative consequences. huawei was working with a shell company in north

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

amazon misses estimates and disciplines forecasts. amazon web service also comes short. deskn secretary of state secretary of state mike pompeo says he is willing to travel to tehran. and, the e.u. immediately rejects ellis johnson's demand for a better brexit deal. jean-claude juncker says the current agreement is the best and the only two possible. good morning everyone, good afternoon if you are watching from asia. this is? >>? > "bloomberg surveillance," i am francine lacqua in london. >> shares are moving higher by more than 7% for vodafone, spinning off their european business, saying that they might ipo. still, it will be officially super and entity in may of 2020, so we are seeing big gains. kering is on of the bigger losers unlike vodafone, dropping 7%, on track for the biggest loss since 2018. it is all about gucci, gucci is not so gucci anymore. sales flatlining after three years of breakneck pace. some of the comes are difficult. analysts are still bullish on the stock despite the sum of today. finally, anglo american had. positive earnings yesterday but toda

amazon forecasts income below expectations. alphabet and intel jump in late trading after beating expectations. good morning. matt: good morning to you, less than a half-hour hour to the start of trading. take a look at the bunds. this is something i was talking about. you saw a reversal in the bond yields. as we were heading into the ecb meeting, yields were coming down. investors were looking for the possibility of a cut. then we interviewed the german finance minister where i circled in red. and you saw but yields go up again. that's because he says there is no crisis. he sees it coming back to the economy once these man-made problems, as he describes them, are solved. meaning once the char not u.s. -- u.s. china trade war is over, he sees it coming back to germany. investors were relieved and started letting go of the paper, yields rising. look at the stoxx situation. we don't see futures falling here. but we do see asian stocks coming down. we have cac and dax futures up a little, ftse futures down, but relatively little c

alphabet and amazon earnings after the bell. what to expect and the numbers you need to know ahead of that, when we come back. this is bloomberg. ♪ this is bloomberg markets. i'm shery ahn in new york. amber: and on amber kammer into rocco -- in toronto. onslaught ofe an regulatory scrutiny and including a $2 billion charge tied to its ftc settlement, the social media giant still reported better-than-expected second-quarter earnings and revenue after an initial advance. shares are now down over 2%. for more insight, let's bring in our senior equity analyst. he has a hold on facebook. great to have you with us. so investors did like what they saw in the performance of facebook. they don't like the regulatory environment at the moment. does the stock price right now reflect that environment? so, actually. it is pretty much the regulatory environment, the additional costs that facebook can incur because of that will keep the stock down. i think it will limit the upside to the stock, and it is trading pretty much where we valued i