♪ emily: i'm emily chang. this is "the best of bloomberg technology," where we bring you all the top interviews from this week in tech. coming up, tech loses an ally after gary cohn exits the white house. what the loss of the president's top economic advisor means for the looming trade war with china and for silicon valley. plus, the amazon agenda. our deep dive into the ever expanding footprint of america's e-commerce king. not just the company, but industries potentially in its crosshairs.

and our extended interview with google cloud ceo diane greene, just one of the top female leaders of tech we bring you ahead. first, to our lead, gary cohn the parting the white house, president trump's desired trade tariffs are sending chills throughout the tech community, especially if they take aim at chinese imports, including consumer electronics. amazon and apple could feel the impact, especially considering the products that they manufacture in china. apple could have the most to lose, with most iphones, ipods and more being assembled there. we discussed what a looming trade war could mean for the industry at large with executive editor tom giles. we also spoke to max abelson, who covers money and power for bloomberg. max: wall street is not happy. on the one hand, we cannot go too far. the reality is that nobody knows what is going on with this white house. you do not see the market losing

10%, but people are upset. gary cohn, if you remember, was the president of goldman sachs. he left being the number two guy at goldman for the white house, and that came after trump literally mocked goldman sachs on the campaign trail. people are relieved that they have this guy that they saw as a friend, someone who could push to cut corporate taxes, and now gary cohn is gone and that is sort of destabilizing. i talked to wall street executives over the last 24 hours that said this freaks me out. somebody compared it to losing a security blanket. emily: let's look at apple as an example. it is still unclear if apple would be marked as an importer. if this would hit company that manufactured apple products, like foxconn. what does this really mean as far as we know for apple, its products, its supply chain? tom: apple has to be caught in the middle of this somehow, given the fact they are the world's largest, most viable company. they are importing products from china, both finished goods and a

lot of the supply chain is in china. to the effect that china is affected, apple is not going to get off scott free here. the question is, in a worst-case scenario -- we have talked to a few analysts here -- it certainly would be affected. in a company that generates so many tens of billions of dollars a year, we have heard people talk about this as something more of a rounding error. we are talking about tens of millions of dollars. not, at the end of the day, a big factor. it really all depends on how much of a levy is going to be imposed on steel, aluminum, finished goods. trade wars are not good for big, multinational companies like apple and to some degree, amazon. although amazon and some of these other tech companies, the faangs people like to talk about are less affected because they are so service-based. microsoft, a software provider. facebook, social media delivered over the internet. amazon, the lion's share of what

it does is not consumer electronics, but the echo is getting bigger and bigger. emily: apple in particular, we know, president trump took aim on the campaign trail. tim cook has met with the president a couple times. so, who knows where that relationship stands. max, is there a silver lining here? max: there might be a silver lining for wall street considering that steven mnuchin is the treasury secretary. he worked for goldman sachs, just like gary cohn. but when i hear tom talk about apple and am reminded that trump mocked apple, considering the direction -- nobody knows what is happening -- if donald trump decides he needs someone to beat up on, it might not be wall street. what if it is big tech? the guy who made the movie about clinton cash, his next documentary, which is going to

debut at cannes, is about the big tech companies. i can smell in the air the sense that the new wall street, the new punching bag, instead of being goldman sachs and jpmorgan, it could be amazon and apple. emily: marty schenker was on the show yesterday during the breaking news, and he talked about how he thinks the relationship between silicon valley and the white house has taken a bit of a pause. we just don't know. what is the general vibe or response from the tech community so far? tom: what you have to think about with silicon valley is to the extent that we are going to look at foreign nations as the enemy, that is going to have a big impact. there are lots of different ways, and that think the biggest way i want to talk about is when you look at the big deal, the biggest deal in tech, which we brought to you at bloomberg, broadcom trying to buy qualcomm, this is a transaction that is

hitting a buzz saw. they are looking at this and what they are saying is, to the extent that this transaction would undermine our competitiveness as a country, vis-a-vis countries like china, they do not want to see it happen. treasury is raising objections. we wrote about the letter they published earlier this week that says we do not want to see this transaction go through. on one hand, that sounds friendly to tech companies. on the other hand, if you are broadcom, you do not want to see a deal like this, a big, game changing deal, get blocked. so how much are big tech companies going to get caught in this larger narrative with u.s. competitiveness and competitiveness with countries like china? emily: what does it mean for companies that have been trying to crack the u.s. market? they are coming with products from china. tom: it is not going to get easier. if you are trying to sell phones, tablets, laptops, it is

not going to get any easier to get it to hold in the u.s. under a regime like this. emily: max, you talked to a lot of people about what gary cohn might do next. you got some interesting answers. any inkling as to what he will do next, and who will fill his role? max: someone like gary cohn is not like trying to figure out the white house. he spent 25 years at goldman sachs, then went straight to the white house. the truth of the matter is, the way the world is going, it is not that insane to think he could go back to goldman sachs. especially because deana powell just announced that she is returning. i think she is going to the management committee. it would be a bad look for the revolving door idea that people could leave goldman sachs, accrue political power, then turn it right back into a goldman sachs job. someone said he could work for

spacex, but it looks like they have wonderful management, including one of the biggest women in tech. someone said he should just go spent six months on the beach in the bahamas, and i feel out of like all of the options, that seems like the most realistic. emily: i love that idea. what about who would fill his job, and how important is it that it is another banker? max: it is so crazy to think about. if someone was twisting your arm and you had to say what does donald trump stand for, i am pretty sure you would say populism. this idea, the stephen bannon cooked up idea of populism, that donald trump represents the average person. it is just so remarkable to think that he is a billionaire who has surrounded himself with billionaires. bloomberg news has done a good job of explaining how his cabinet is the richest cabinet in the history of america. so on the one hand, i feel like it would be crazy to guess that he would pick anybody but another tycoon, someone like wilbur ross. steven mnuchin. i can almost imagine him moving

someone who is already there to take gary's job. shuffling around. people i talked to said it is hard to imagine people leaving from wall street to go to the white house, considering considering how chaotic things are there. that does not seem like a place you go and stay for a while. emily: that was bloomberg's max abelson and tom giles. president trump may have an ally in elon musk, at least when it comes to china's trade protections. musk was in a bitter fight with chinese authorities to build a factory in shanghai. he tweeted his response to an earlier post by the president, writing "do you think the u.s. and china would have equal and fair rules for cars?" the tesla cofounder and ceo noted that china charges 25% import duties on cars, compared to america's levy of 2.5%. he says it is like competing in the olympics wearing lead shoes. coming up, our important conversation with top female voices in technology. we will bring you amazon's

stephanie landry and google cloud ceo diane greene later this hour. and if you like bloomberg news, check us out on the radio. you can listen on the bloomberg radio app, bloomberg.com, and in the u.s. on sirius xm. ♪

emily: well, another day, another legal battle for uber. pennsylvania's attorney general is suing the company. the suit says uber failed to disclose a hack that affected over 13,000 drivers in pennsylvania. uber has known for over a year that this breach potentially impacted 57 million passengers worldwide. under the law, the ag's team can seek civil penalties as high as $13.5 million from uber. well, this thursday was international women's day, and we brought you a slew of top female leaders in technology. from google cloud ceo diane greene to amazon's stephanie landry, and uber's regional manager for the u.s. and canada.

before joyce joined uber, she worked in the public and private sector, and at the u.s. treasury. we started our conversation on uber's business and its changing culture. meghan: i have been extraordinarily lucky and have had a remarkable experience at uber. since the day i came on board, i have been working for an incredible woman that is leading our east coast organization. we had a board that was 50-50, men and women, that was really supportive of people of different backgrounds and styles. it was a place i really felt like i could drive and encourage those around me to thrive. to be honest, a place i knew i could come in to work every day and make decisions with integrity and fight for what i knew his right -- i think the disturbing thing that we have all realize over the course of the past year is not everyone in our organization can say the

same thing. it has been invigorating, in a way, to say that this is our mission going forward. i have been deeply involved in ensuring that our culture and our norms and business practices going forward are ones we can all be proud of. i think the exciting thing is that we have teams in the company who show that we can grow and scale in a way that we feel proud of, and now it is up to us to ensure that every single team across the company can say the same thing. i am really excited about the progress we have seen today. emily: you were hired by travis kalanick and there has been a big changeover. i am curious about how your work and your mandate has changed, and if you are seeing an actual change in the culture at uber as a result of new leadership? meghan: there has been a distinct change in our company, the mandate from the top, and even the direction we we are

going strategically. i think we have acknowledged that we need to articulate and hold our teams accountable every time. even if it is something that is going to cost us a bit more. especially in the short term. emily: where is the balance of power between growth versus profitability? talk about where the pendulum is and what you have been told about the priorities? meghan: we need both growth and profitability. any company does, especially if it is optimizing for the long-term. we need to ensure we are continuing to invest in long-term growth, but ensuring we are doing so in a sustainable way. i think the challenge of any business leader is to hold those two things at the top of mind at the same time, and to ensure we are helping navigate the company through those trade-offs.

the work consistently is putting the long-term interest of the company first and ensuring that we are setting ourselves up for long-term sustainable success. emily: the competitive landscape has also changed, and there is some data to show that lyft has gained riders as uber was going through this big cultural transition. what do you have on the competition, and are you at all concerned about the threat of lyft? meghan: riders and drivers always have a choice about whether to use uber or not. they can use another platform or they can drive their own car, choose to walk, or some other alternative. at the end of the day, what we find exciting is the opportunity for people to be able to leave their keys at home or not buy that second car or never by the first car to begin with, and consider using options that are actually more sustainable for our cities at large. when we do that, we will need

fewer land in our cities allocated to parking. we will have less congestion on our streets. we will have safer roads because we do not have people that are getting behind the wheel drunk. we will have great opportunities for drivers who need it. i think as we think about some of the lessons we have learned over the past 12 months, to ensure that we are consistently delivering on the promise to riders and drivers so that we have a better option than anything else out there. emily: that was uber's meghan joyce. we also caught up with amazon vice president stephanie landry for international women's day. she launched and runs the company's prime now express delivery service, and now is the business leader for amazon fresh and its restaurant delivery service. we started on how the company can continue to retain its top talent. stephanie: we have over 4000 open jobs in our seattle offices today. we are constantly looking at our

businesses and evaluating and making sure we are applying the right amount of resources in different areas. but we have so many jobs open right now. we are looking for people all over the city and actually worldwide. the opportunities here are tremendous, and i have had an incredible career over the past 14 years. i do not think there is necessarily any sort of issue with the amount of jobs that we have. emily: stephanie, you now run amazon prime now and amazon fresh. talk to us about how big prime now is and how many people are using it? stephanie: the connection of all the businesses that i run is that we deliver food, often fresh food, and really fast to customers, in some cases as little as an hour. the prime now business is currently available in over 50 cities worldwide, nine countries. in the u.s. we are in over 30 cities. so we have started that business in 2016, so it has expanded

incredibly fast. emily: you were involved in the kickoff of amazon fresh grocery deliveries, and now, of course, amazon is all in. amazon bought whole foods. but the company still lags walmart in grocery delivery, and there is a lot of competition. what is the path to greater domination in grocery? stephanie: you know, throughout my 13 year career here at amazon, what we have focused on is creating a great customer experience, and specifically a great customer experience for our prime members. i think that our collaboration with whole foods gives us an opportunity to solve an important problem. i have a six-year-old. i am a mom. taking a little kid through the grocery store is a big chore. to be able to get it delivered to your home is such an incredible convenience. so i think that our collaboration between the whole foods company and amazon, to bring people groceries at great prices, is an incredible opportunity that our prime customers are really going to love. just today, we launched grocery

delivery in as little as one hour in san francisco and atlanta, and i am very excited about that opportunity for customers. emily: that was amazon's stephanie landry. coming up, asia is encouraging its biggest tech firms to bring their listings home. we will head there, next. and the bank of amazon? the company's new move into the world of financing later this hour. this is bloomberg. ♪

emily: tencent is calling on the chinese government to boost regional trade between hong kong and the mainland. ma met with the media and explained his proposal.

>> border controls and different taxation regimes are two of the biggest obstacles to the greater bay area project. also the free movement of high skilled workers is yet to happen because hong kong is concerned about the inflow of labor. so i suggested the idea of an id system linking hong kong and mainland china to allow people to cross the border and may -- and make electronic payments more easily. emily: ma also fielded a question around blockchain and the cryptocurrency market. take a listen. pony: blockchain is a really innovative technology, but we must be careful using it. technology is good but usage is important. ico's for digital currencies means a lot of risk. i am not saying the technology is not mature, but everyone can create and use digital currencies, so there could be huge issues for regulators. so even though cryptocurrencies are now very popular, we haven't participated in an ico. emily: meantime, some of the biggest companies are being floated back to china through dual listings. this coincides with an effort by

hong kong to rework its expectations to lower companies to achieve exchange. our managing editor of asia tech coverage from bloomberg joins us live from tokyo, along with selina wang. peter: the backdrop is interesting here. you have this annual national people's congress. a gathering of thousands of delegates from all over the country. in the past you will see business leaders come and express their support for the administration, but they were typically traditional businesses in real estate, state owned enterprises. this year, you are seeing the coming out of the technology companies that have become some of the most valuable in the world. so leaders like robin lee at baidu is talking about listing his shares in mainland china, and they're talking about listing shares in mainland china in addition to listings overseas. so there is a burnishing of the existing party's reputation if

they can learn these stars home, and it helps the tech companies, because valuations in mainland china tend to be quite high. emily: selina, talk to us a little bit more about the pros and cons of this structure? selina: the chinese stock market does not have the best reputation. they have difficult regulations these companies have to comply with. they're known for volatility and for sometimes spontaneous government intervention. as peter mentioned, this would be a good move on the chinese government's part to boost the reputation and attract some of these big listings. it is also great for a lot of domestic retail and institutional investors. they have not really been able to participate in some of the greatest wealth creation in china's history, alibaba, baidu, and tencent. give them a chance to dissipate and boost the valuations of these companies. retail investors are excited to get in on this if it becomes possible. emily: and peter, some folks won't be pleased about this. who are they?

peter: there is competition for these listings. right now, hong kong is competing to draw more attention. historically, they have not allowed the dual class shares you see at many u.s. tech companies, including some foreign companies that are listed in the u.s. they are competing aggressively for this business, but you cannot have dual listings in places like mainland china and hong kong, and the u.s. and mainland china. emily: there are some big tech ipos in the pipeline, tencent music, how do we expect those companies in particular to proceed? selina: changing regulations in both hong kong and mainland china are going to play a big role in what they ultimately decide. -- xiaomi is considering a dual listing in hong kong as well as in china.

tencent music is also considering a dual listing, and is already listed in hong kong. these stock exchanges are going to do everything that they can to attract these companies and to become the global leader here. hong kong, as we know, has really fallen far behind new york in terms of attracting these companies, and they want to get ahead of the game again. emily: peter, do you have any thoughts or inklings as to how those potential listings could play out this year? peter: it is interesting, certainly, the big prize will be xiaomi this year. as selena mentioned, if they are leaning towards hong kong as their primary listing but they list in mainland china as well, it gives them a chance to tap into that consumer demand to give customers of xiaomi an opportunity to buy into the shares, and that could help their valuation quite a bit. it will be interesting to see how that one plays out in particular. emily: thank you to peter elstrom and selina wang there. still ahead, we sit down with diane greene, the google cloud ceo. how she is fending off the threat of amazon and doubling down on innovation. and a reminder that all episodes

of "bloomberg technology" are now live streaming on twitter. check us out. this is bloomberg. ♪ mom you called?

oh hi sweetie, i just want to show you something. xfinity mobile: find my phone. [ phone rings ] look at you. this tech stuff is easy. [ whirring sound ] you want a cookie? it's a drone! i know. find your phone easily with the xfinity voice remote. one more way comcast is working to fit into your life, not the other way around. emily: welcome back to the best

of bloomberg technology. diane greene has been ceo of google cloud since 2015 and it is a big job. last year eric schmidt said alphabet invested $30 billion on the cloud services. before google dian green was founder ceo of mware -- of vmware for a decade. we asked her how she made the jump. diane: i was sort of the background helping. and as i got more and more involved and got to know first what was available at google in

terms of the phenomenal infrastructure and technology and engineering. and secondly, just sort of realizing what a big deal because it is. i mean, i knew it was a big deal, but it is profound when you think about, this is a place where everybody in the world can share and the whole world is going digital and being connected to all of these mobile you canand centers and you know, kind of make this available to anybody to use, almost amaga ties technology through it. anyhow, it was exciting to me the more into it i got. so, google had been talking to me about doigng it. eventually i said i would do it. is hotlye cloud contested territory. amazon is in the lead and then microsoft. which one of them are you more afraid of. [laughter] can't say i am afraid

of either. i do pay attention to them. you know, it is -- last year the cloud it did about $45 billion in business and you could argue it is about $1 trillion business, so there is quite a bit of head room for everybody and microsoft and amazon have different strengths. so does google. differentiated in our machine learning and data analytics. we are very differentiated with our security. if you want to keep your information secure from our productivity on down to the basic network, i think we know -- we are the people that discovered that their meltdown. -- discovered vector meltdown. we have these differentiations which is where all companies are going. i am a why i cannot say freight. i do see that we have a lot of work cut out for us and we are working extremely hard.

matt: meister you said google has a pretty good shot of being number one in five years. do you believe that still? diane: i think it is possible. those words were quoted out of context, but we are executing extraordinarily well. call from january for google said we passed $1 billion per quarter in 2017 and cloud platform is the fastest-growing of the public clouds, according to publicly available numbers, which puts us in the triple digit growth. so, just tremendous momentum. millionover 4 customers. it is a possibility. i don't. it is more about you know, we are benchmarking our own growth against ourselves and we're pretty happy with it. emily: speaking of the metric , we always want more.

when will google actually give more details on how the cloud business is doing? diane: well, we will in good time. it's interesting to me that in january we give some metrics and now it is the most frequently asked question, when will you give real metrics? they were pretty real, but they were not the real company performing data you are looking for. emily: do you think blockchain's will change cloud computing? diane: blockchain gives you this mechanism to verify things, which is powerful for everything. the cloud is powerful for security. it is going to be powerful for health. because the cloud is where every company is going to operate and all the data is going to be -- it is inevitable that blockchain is going to play a gigantic role in cloud.

and you know, in our fully distributed world of which cloud plays a very meaningful role because it is where all the data gets shared. emily: that was google cloud ceo diane greene. we also spoke with ellen pao will for international women's day, the officer at the center for social impact. it is best known for suing her vigil capital firm for gender discrimination. , butost that sued in court somewhat argue she had one in the court of public opinion. we talked about the lack of diversity that persists in technology and why. ellen: it is more of this backlash against change. to fix therying problems that have taken place for the last several decades in tech, where we have created these systems that favor homogeneity? ?nd how do we change it it requires taking down those systems and really try to catch

up and transform how you do things and that is uncomfortable for people who succeeded in the system. emily: he suggested that people need to be fired for real change to happen. who should be fired? ellen: i think people that don't believe that women and people of colder in people who are older, and people who are immigrants are equal employees, who are able to do the same work and biasesese innate against them should be fired. if you cannot treat your coworker equitably and fairly, you really have no place in the workplace. emily: how do we know who these people are? is this a matter of you have not gotten result, or you have not tried, or if you have made an untoward comment. how do we identify the people who are not doing enough. ellen: i don't know it is not really doing enough of. i know there are people who are saying terrible things about their coworkers who are sharing

private information about their coworkers, so their coworkers get attacked by outsiders. those people should be fired. there is no place for those people. we want people who believe in your culture and if they don't believe in your culture and they show that, then they don't belong. right? they are not promoting your workplace ideals. they are not on the same page and are in making it harder for others to do their job. emily: you were ceo of red dit for it while and made some changes that cut down on hate on the website. one of the questions i ask in my book is, how might the internet be different if more women were involved in creating and designing the systems in the first place do you think online harassment and trolling would be such a problem, whether it is facebook, reddit or twitter? if women had been there. ellen: it is unfortunate they were mostly started and run for white men for so long and most of the engineering teams were white men. nobody ever experienced it the

same way that people who were of color, or who were women, or nonbinary experienced it. ityou don't experience it, is hard for you to address it and there was nobody calling attention to these problems and you see it on other platforms, too. like nextdoor and airbnb which are now trying to fix problems that came from the homogeneous workforce and they are trying to bring in changes to make sure the platforms are more open and more inclusive and do not reflect the biases that the early employees did not experience. emily: thanks to ellen pao k of of the kapor center. twitter is taking steps to -related accounts from disrupting others. this book recently banned ads

tied to cryptocurrencies. from your doorstep to your wallet to your health care, amazon. how it all fits in to amazon's bigger plan. in and italytes are is getting a new antiestablishment government and once again, people are ready to blame social media for the outcome. this is bloomberg. ♪

emily: amazon is reportedly offering a discount to the millions of medicaid recipients for prime membership. the move is another step towards lower income shoppers and keeping pressure on walmart.

under the offer, customers on medicaid can get amazon prime for $5.99 a month, about half the usual cost. now is a good time to take stock amazon from the club businesses to newer forums into groceries and hardware. in january they also announced a venture with j.p. morgan chase and berkshire hathaway. ch, amazon is now looking into providing the customer us with checking accounts and has announced the expanding whole food deliveries to amazon prime . cities. in more u.s how do these announcements fit into the complex operations of amazon. we spoke with brad stone. --d: it is a company that one of its products is its culture. decentralizes teams to go innovate. you have got tens of thousands of people around the world

looking for growth and expansion opportunities and it yields everything you have mentioned. emily: not every new business has succeeded, right? brad: absolutely. they spent 10 years to make grocery stores work. the amazon fresh delivery asvice did not work as well they hoped. and resulted in the acquisition of whole foods. emily: talk about the expanding whole foods delivery and what that means. can: there is so much they do inside whole foods. they can bring amazon pay into the checkout. they want to do a little the club for prime members. they could redesign the grocery store, make it friendlier to customers. but the easy stuff is delivering from the supermarkets in the hall food supply chain. and that is what we are starting to see in a couple cities, including here in san francisco. my colleagues wrote a story about it today about how they had the delivery relationship with whole foods and is getting shunned to the side as amazon

workers start delivering to people's homes. emily: gene munster predicted earlier that amazon might buy target next. take a listen to what he had to say in january. >> the future of retail will be a combination and i would bet that investors would view this as amazon -- the takeaway would be amazon is taking over the world and that is a good thing. emily: is amazon taking over the world a good thing? maybe 4 -- four amazon investors, obviously, the company's performance has been stellar. the stock price has multiplied by a factor of four over the last four to five years. but no, the bigger it gets, the more industries it enters, the more questions about the market power arise. maybe we could say, great for customers certainly that amazon

brings the long-term orientation willingness to lose money to pass on the benefits over to customers in the form of lower prices, great for customers, but destabilizing the other industries and raising questions about market validation. emily: it has not been all great news. amazon studio is struggling to get back on its feet. also, a big high-profile the pressure today, amazon prime's greg greeley leaving for air bnb. brad: he was an old timer. he left for the finance department. there was a product people do not remember, super saver shipping, where for the first time the people wanted to wait a few extra days they could get shipping for free. lot of money, a but cemented the loyalty of customers and that was the beginning of the pathway that led to prime, another product he headed up recently where they were using the efficiencies in the supply chain to pass on benefits to customers. a senior member of the team, somebody who would spend more time in the whole foods division.

bench is extremely deep. the bigger story is how little turnover they have in the upper ranks. him over to be president of the homes division because a really experienced division who knows marketplaces. emily: speaking of the cost of delivery, these things they offer to customers do not come cheap and two hour delivery is really expensive on the amazon side. is that at some point going to hurt them when they raise prices to what is more comparable with what they actually are. brad: you can always look at the cost curve. a the beginning, yeah, it is lot of money, when the distribution of customers is small but this is the long-term thing jeff bezos wants to talk about. they are willing to do that for 10 years and as they get the concentration of customers higher, the cost per delivery comes down and they are uniquely situated to be able to do that and a severed the early bad economics for the longer term payoffs. it might look bad now when you have got one drop making one

delivery in one neighborhood, but fast-forward in five years, and suddenly the truck is filled with stuff. emily: what do you make of amazon buying that ring doorbell company for $1 million and amazon key, to have the concierge service, for those who can drop off your packages inside your door -- and they even have house cleaning services they are testing out. brad: i read about this during the tech newsletter "fully charged" monday. they are up against google and apple. it is a novelty now and people love quizzing alexa and getting the weather, but in the future it will be utilities. it is going to be opening your door, getting your lights, and amazon works with third-party of lines makers. over the longer term not only allowing the delivery guy to come into your door, but maybe

moderate your door from work, letting your housekeeper in, letting the plumber in, not having to wait at home for the cable guy -- all sorts of things that we call it the true lock in. when they control your doorway. it is pretty powerful. emily: thanks to bloomberg's brad stone. amazon says it is aware of the bug in its alexa feature. they are working on a fix. the problem? some users have heard strange laughing noises at random from the home speakers. the company did not say when the fix would be deployed, but amazon can push updates to the voice service automatically. speaking of amazon, the battle for the cloud continues to heat up. the man behind one company looking to stave off giants like amazon and microsoft, next. this is bloomberg. ♪

emily: blackberry is suing

facebook for patent infringement. it is asking the facebook the order to stop providing the primary at an facebook messenger and instagram applications on websites. s have past, facebook exec explained that popping what works is sometimes necessary and it publicly credits snapchat for grading the popular stories function. gotd computing management big news when dropbox announced it is the latest such company to file for an ipo. box's share price tumbled but shares of picked up in the last couple days. we spoke with the ceo and cofounder aaron levy on tuesday. q4 itself, was by all accounts very strong. we did $136.7 million in revenue. annual assessments were that

number and that is the range we got into. we did over $200 million, over $13 million in free cash flow. really strong quarter overall and it was really box's -- what box looks like when we are executing at our best, serving some of the largest customers on the planet, insurance agencies, customers, banks. deals over $1 million. what ended up happening was a guided decelerated rate for f 1-19, the year we are in now. really, the reason for this is, we are transitioning from a single product company to a multi-product company and as we are doing that, the way we are selling is to serve bigger customers and bigger deals and we want to make sure that we set ourselves up for a really good foundation for the year that would have some leverage for accelerated growth either later this year or especially next year. we are still on our past two and

billion dollars in revenue over the next few years, but he wanted to make sure we were more conservative. emily: i know you have been asked by dropbox many times over the years, including by yours truly. now that you have seen the numbers and they have filed to go public, are you concerned? aaron: i do not think the numbers are the competitors of the business. athink dropbox's numbers are tale of two types of companies, a consumer business, 60% to 70% of their business, people like you and i using it for professional or personal use and the other is b to b. that is the only part of the business that looks like box and that tilts more to small businesses or teams, whereas our revenue tilts towards midsize companies. emily: and why couldn't they go after the large enterprises? aaron: i think they have been trying over the last five or 10 years and they have pulled their focus back to where they are really good, on the consumer s&p side.

our companies have evolved to look different. the kind of consulting you need, the level of security and an clients you need. they end up looking like a very different company at scale. the things that our 1800 employees do every day look very different from what dropbox's employees do, though we both let you share files, the general electrics of the world need a different type of functionality and that is what we have largely focused on over the last decade. emily: you have a couple years on them as a public of any. any advice to drew houston? aaron i do not give general advice to pseudo-competitors. [laughter] think it will put a massive spotlight on the industry, which is good for us. we are collectively going after a $40 billion to $50 billion market, so there is no shortage for us to tackle. we are focusing on enterprises

and they are focusing more on consumers and as an b's. emily: you said you will start investing more. where are there companies you like to acquire? emily: i will not announce any corporate moves today. emily: why not? aaron: i.r., and p.r., and the sec, they have problems with this. someday we will be able to get there. we are focused on organic growth and organic investment with r&d. but the best way to think about ae roadmap is, if you were 50,000 person company or a 100,000 person company you are transforming how your business works or operates in the digital age, maybe you are a bank or life-sciences company or government. we want to be the backbone of how you are managing security the work.g with a lot of solutions go deeper in to security or compliance to be able to better serve our companies, these tend to be the

focus areas for the business now. emily: bloomberg has just confirmed that gary cohn is leaving his post at the white house. aaron: wow, breaking news. has been speculated for a while now and you have been a very outspoken opponent of the trump administration. what do you make of this in the context of you know, in general where we are more than one year into this administration? like, are we better or worse off than where you thought we would be? aaron: honestly, we are so far off the path of where i could imagine. generally, we tended to think linearly and this has been on linear. i think the gary resignation would just lead to more internal chaos we have already been seeing. so, incredibly hard to know how to compare where we are today versus where we could have been thinking one year ago or whatever. in general, it is not good to see that lack of stability and maybe steady hand of some of the people he was surrounded by. emily: do you think it will hurt

business? no idea -- i think businesses and the market probably appreciated having somebody with gary cohn's background involved in the administration. very pro-trade, very sort of oriented towards a growth economy. and so, i think this could put some risk from the policies. that's what matters a lot with these roles, who is advising the president. and ultimately, what are the policies we see enacted? maybe having something like every out of the system, not advising trump is -- i cannot imagine it is a positive thing. emily: that was aaron levie, box ceo and cofounder. that does it for this edition of the best of bloomberg technology. we will bring you the latest from tech throughout the week and 10 in all week. -- and tune in a week. all episodes of bloomberg technology are streaming ar on twitter.

that is it for now. this is bloomberg. ♪

>> good morning from bloomberg's new european headquarters from the city of london. i am anna edwards. >> this is bloomberg daybreak and these are the top stories. anna: power play. ion advised energy from rwe, valuing the renewable energy giant at 22 billion e uros. matt: trade tensions. the eu fights for a exemption from the trade tariffs. china positivist trade minister fires another warning shot at washington. >> there is no winner in a trade war. it will only bring disaster to china, the u.s. and the global economy. china does not want a trade war

and will not start one first. anna: and treasury angst. the u.s. prepares to auction bonds this week, but with 10-year demand the lowest since 2009, could yields beheaded 23%? matt: good morning and welcome to daybreak europe from berlin. i want to give you a quick look inogy earnings. this was the renewable's leg of rwe. well, it remains as of now, it says it sees 2017 dividend of 1.06 euros per share. in 2018, they adjusted the

income to more than $1.1 billion. very interesting on its own. but also interesting because will break of his company, giving eon the grid resources and utilities of the nation's power needs and rwe, all the power generation resources of the power business in germany. is a very interesting deal and we will talk about it some more. anna: absolutely. chris bryant is writing a very great piece. the singing and dancing power giant is just too great and that is what we are seeing this and why we are seeing this deal taking place in germany, he argues. let's talk about what is going on more broadly overnight then. on the risk radar we have the msci asian-pacific up by 1.5% this morning. economy and job

creation story versus concern about paris and it seems the real economy, the job creation story is just winning out right now. as we see the extends coming through from the asian equity session, a lot more jobs were created in the united states last month them are estimated and the wage number is not enough to get people too angsty about inflation. will that continue into the session? meet touched a fresh record on friday. the nine-year bull market. over reading a great piece the weekend about how actually, this is a bear market recovery, plus the bull market. that started in 2013. maybe we will dip into that during the program. the start of you astray, of a little further and watch dollar-yen. interesting here in terms of the politics. controversy around land sales. he says he is not interested in resigning, but it is something that has been leading the dollar-yen on a crazy ride today, a lot of

volatility there. matt: i have got an interesting chart here from what has been story on the bloomberg terminal overnight. that is because the bank of international settlement has warned that china, as well as canada, are at risk of a banking crisis. g#btv1400. it is chinese credit to gdp. you can see the credit has risen. it has come down a little bit in the last year. but it has risen to a relatively high level as households are maxed out on credit and companies are taking credit as well and you see the same problem in china as well, which is why the bank international settlement says china is one of ae country's at risk for banking crisis -- the most read story on the bloomberg terminal. wordt the bloomberg first

news now. let's go to juliette saly. juliette: north korea want to sign a peace treaty after meeting with donald trump, reviving a long-held goal of the on yang. -- of pyongyang. citing an unidentified senior official in south korea's office, says kim jong un will raise the possibility of establishing diplomatic relations. the cia head mike pompeo has ruled that any relaxation of sanctions and says camera must stand by his offer to stop nuclear tests before any meetings. is getting pressure to resign. one lawmaker says he has a report from the finance ministry admitting that documents on the sale of public land to the school were altered. stocks strengthened and pared some gains over concerns the scandal could derail japan's

recovery. china, canada and hong kong are amongst the countries most at risk of a making crisis. canada, whose economy grew last year at the fastest pace since 2011, was flagged due to next up credit cards and high debt levels in the wider economy. the study also found the house full of borrowing is seen as a risk factor for china and hong kong. hinted. chancellor has that britain might start to see the beginning of the end of austerity. this comes of philip hammond prepares to announce the smallest budget deficit in a decade during his spring statement tomorrow. he spoke to the bbc. >> there is light at the end of the tunnel. that is what we are about to see. debt is about to start to fall after it has been growing for 17 continuous years. that is a very important moment for us.

juliette: global news 24 hours a day, powered by 2700 journalists and analysts in more than 120 countries around the world. more stories on the bloomberg at top . it has been risk on following the u.s. jobs report and of course, u.s. futures signal another positive session tonight. we talked about that yen punctuation about the politics in japan. retireo said he will not . some solid moves coming through from hong kong and china, despite those concerns that bis raised and we saw the australian market rise, along with the aussie dollar after australia was exempt from the tariffs. noble ineen watching singapore, never far from the headlines. it did miss a bond payment today, but there are reports it received a counter offer for the rescue plan. look at that up, nearly 28% there in singapore, though it is a penny stock. prada, rising by 17%, the most since lifting in june 2011,

after forecasting like for like sales growth of single digits. to the downside, new crest off by 4.6%, a seven-month low. that is after it received a broken downgrade due to some operations at one of the mines, which has halted operations there. anna: juliette, thank you. matt: that is the market. let's talk trade now and taro aso -- and tariffs. the eu trade chief has no immediate clarity. the president of the united states tweeted about the eu, la ying down his conditions and threatening to 10 scarves and more if they are not met. he repeated the call to european automakers at a rally in pennsylvania over the weekend. donald trump: they totally restrict us. then they say, we want those

tariffs taken off. i say, good, open up the barriers and get rid of your tariffs. if you don't do that, we will tax mercedes-benz, we will tax bmw's. you want to have money -- you want to have money come into our country. anna: joining us now here on set in london, kathleen hunter from the politics team and joining us for the next hour, the global head of flow strategy and solutions at societe generale to bring us the market view. cap lane, let's come to you on the politics, the rhetoric heat felt from president trump, we have heard overnight as we looked at headlines from the chinese. the list of countries then, that want exemptions is growing. what do we know on that? kathleen: i think that is the question. who will get the exemptions? i think that really, the eu is itarea to watch because seems the trump administration,

even though the u.s. does not import a lot of steel from china seems to be wanting to put the vice on china when it comes to the trade issue. they will be interesting to see how they plan to handle the eu portion of it. how they respond to iconic american products. anna: yeah, we have heard from the eu side quite vocally. what is the fallout within the republican party, the gop? kathleen: that is the other thing to watch. we have a special election coming in pennsylvania tomorrow, part of the state that trump won by 26 points in 4016. a lot of money is being funneled into that because it is being perceived as a bellwether for republican weakness heading into the midterms. republicans in congress have been very sort of anti--- pretty the heavenly anti-trump -- pretty vehemently anti-trump on the tariffs. we have a special election --

they do not always translate into midterm waves, but they are indicative with their own characteristics. they could be as a democrat pulled off an upset win tomorrow, people could talk about that within the context of tariffs. it could feed the general storyline. anna: away from the tariff story, the markets seemed excited on friday by the underlying strength of the u.s. economy, but also for the potential of reduced to political risk on the korean peninsula. what is the latest on this because we heard a little bit about the potential talks between camkim jong un and trum. kathleen: it seems the logistics are still coming together. those will be interesting to watch, in terms of where it happens, when it happens, what the terms are. the main question is really, what trump is able to achieve when the meeting does occur. i think there is a little bit of skepticism, even among his staff

that the meeting will come together. and then some concern that -- because just having the meeting provides kim with a degree of legitimacy he has not had before. but for trump, trump's in the room negotiating style seems to be pretty freewheeling and a lot of north korea experts say it will take patience, persistence, outlining clear goals and sticking to those goals and having the ability and discipline to walk away if he does not get what he wants. and so, we have not seen those characteristics in trump's negotiating style thus far. anna: thank you, kathleen. a lot to watch on the politics with kathleen hunter from the politics theme. let's get into the politics and, our correspondent from societe generale. it is really interesting to see how they are tried to pick the winners and losers from this.

what kind of conversations are you having with investors. i have this charge, which is 6647, which highlights the underperformance from european autos and metals and miners. how does this play out into the future? >> you have to think about the first order impact and the second order impact. the first order impact would be the metals and mining stocks. how they will be impacted by the tariffs. you have to think about the domino effect. it is a question about the european union retaliating as well, or china trying to essentially put more tariffs as well. prob this is a lose lose situation. there is a case that the u.s. could be the last man standing so to speak, because there are $20 trillion in gdp, so they are effectively bigger than the other. ?nna: is there really no winner

i understand the effects of globalization and therefore, it has been described by many as lose-lose. but if you look at the way markets have reacted, when you see trump talking tough and countries lining up for exemptions from steel and aluminum tariffs. are investors talking to you about ways to play the u.s. stock benefits. >> we are constructing domestic baskets, where you could potentially go long. this is already playing out in terms of price actions. you have some of the older losers within the eu. in the u.s. we have domestic producers which will get more market share. this is playing out, but as markets are able to discount these ideas quickly, the pricing adjustment has already occurred to some extent. what is more interesting is the domino effect and what is next.

what is interesting to finish on this topic is trump has given the opportunity to countries to argue against and be taken out of the tariffs, which creates uncertainty with respect to have significant this will ultimately impact the earnings of this company. anna: ok, matt, jump in. if it makes wonder any sense to you that this could just be a negotiating tactic from donald trump, kokou. clearly he has said, we will flap tariffs on you and then mexico and canada complaint, maybe not if you send the nafta deal we want. it seems he does this again and again with kim jong un, as well as the previous comments he made and now he will go meet with him. inseems like a pattern donald trump's behavior. is he just negotiating, playing hardball, as i am sure he would love to collect, to get the u.s. a better deal.

youu: absolutely and if listen to what he says, this is one of the key points with respect to the eu because he argues the eu also has a tariff , and if they want the u.s. to drop the tariffs they should do the same thing on their side. there are the midterm elections in the lot of people can think about this as a negotiating tactic. the problem is, this has consequences and the gary cohn having resigned, the likelihood results thang more just a negotiating tactic is what investigators are worried about, hence the price action you have seen. ultimately, this brings more uncertainty and it is very difficult to see what the endgame would be. but the last interesting thought is that the other countries are not going right away into just putting more tariffs. they are essentially trying not are, alate an outcome situation that would be damaging for the world economy. matt: can we -- it would be silly to expect that without

donald trump we would have free trade around the world. clearly, there are already tariffs on so many goods in so many countries coming into and out of some the country. if you look at eptr on the bloomberg, you can see the trade deficit the u.s. has with various countries. it is not necessarily a negative thing, but i am pointing out we have a 300 $27 billion trade deficit with china. dollars with trade mexico and $56 million with germany and germany has massive trade surpluses with the most every country in the world. is it possible that the u.s. in , hasast decade, or decades just generally gotten the short end of the stick when it comes to international trade? : well, i think we are only looking at part of the story. you have to realize one key point. economy is the largest

in the world with $20 trillion in gdp and 2/3 is consumer spending. the u.s. consumer spends twice as much as the indian and chinese consumer combined. so, this is part of the world order in which we have been for the past few decades. and this other important point is the u.s. also outsources a lot of its production capacity to china and other countries. the companies globally are part of a global platform with an international and global supply chain process. so, trade deficits are just not good coming from other countries. there could be semi-finished goods that could be used by u.s. companies on shore. i think the question is if you are going to change the world order and the way companies supply themselves i think this ultimately will have precautions as well. anna: meanwhile, we heard from the chinese trade minister overnight, as he does the size of the deficit.

about the need for the united states, in his view, to allow more technology exports from the u.s., but we know the big conversation behind that. big --d data remain a and the strength of the u.s. economy, despite talking about tariffs and trade, that remains a preoccupation for markets because the equity markets are up on friday, been asia overnight. this chart shows the picture we got on the jobs front, 6479, the u.s. implement rate just continues to fall. does this give you -- what kind of comfort does this give you? when you look at this data on friday, it is almost strong on the jobs creation front, but not enough wage worried to do what it did last month. >> this is an excellent point because this is ultimately one of the reasons why the market is not falling faster or harder than what it would otherwise do. the key point is that we have low ande to a 20 year

the question about the phillips curve, which links the and appointment and wage inflation. we had a bit of sort of disruption, which is one way of describing this early fed with the average hourly earnings number. the cpi data also shows continued upward pressure on inflation. i think with respect to the economy, this will be the tipping point. today the u.s. history much on fire in terms of growth activity and this ultimately should boost consumer spending and help earnings and healthy economy going further. the question is whether that will create wage inflation that will trigger a monetary policy by the fed. but at this current situation, there is not enough pressure on wages to create a brutal treasuryof the 10 year yield, which is the environment very positive for equities and obviously, share buybacks as well. anna: neel kashkari was talking about the participation rate and how that keeps coming down.

he said we have gone from maximum employment to maximum employment, just to add to the confusion of the situation. thank you, kokou agbo-bloua from socgen. matt taking a backseat. will macron's plan get lost in the noise of the italian election? that's next. we discuss the eurozone and the reform agenda. this is bloomberg. ♪

matt: welcome back to bloomberg daybreak: europe. i am matt miller in berlin alongside anna edwards in london. emmanuel macron's ambitious plans for the euro area will get a reality check today. voters in italy overwhelmingly back anti-establishment parties and anti-european parties for their complicating -- further couple getting efforts for the eu.

in germany, leaders of the spd and cdu will sign their agreement today at 2:00 p.m. local time. what does this mean for the future of the eu and single currency? kokou agbo-bloua from socgen is still with us. let me start by asking your thoughts. euroes not seem that investors are concerned. kokou: one of the reasons behind the strength of the euro is the current defensive plus of the bureau area as a whole. you talk to a germany a few minutes ago and this is one of the key drivers. the second key point is the the ecb will be tapering the qe program. from a second derivative standpoint, the interest rate

prefrontal should go into the favor of the euro versus the dollar. the last point is clearly in terms of the eurozone debt crisis, the concern with respect to the eurozone banks or eurozone periphery. well, we are a much better position than we have been over the last year. anna: the european commission is still mourning italy about the mpl. what is the priority for you, banking in completed, the eurozone finance minister a budget? what with the market want to see? kokou: the market ultimately wants to see less uncertainty and the fact that there has been some new programs put in place by the eu to stabilize the banking system, even though i do agree that the mpl situation is a concern, the unemployment picture today is improving and activityof growth is improving. ultimately what it means is the sentiment into the eurozone is better and it is more effective

with the asset prices. anna: thank you very much. kokou agbo-bloua stays with us. she gets the rubberstamp as china scraps residential term lemons. what will that mean for the future of china and the global economy? this is bloomberg. ♪ mom, dad, can we talk?

sure. what's up, son? i can't be your it guy anymore. what? you guys have xfinity. you can do this. what's a good wifi password, mom? you still have to visit us. i will. no. make that the password: "you_stillóhave_toóvisit_us." that's a good one. seems a bit long, but okay... set a memorable wifi password with xfinity my account. one more way comcast is working to fit into your life, not the other way around. anna: good morning, this is

bloomberg daybreak. it's 6:30 in london and 7:30 with matt miller in berlin. it has been quite volatile on the back of the political story about sales involving the assettss. let's check in on the market action with nejra cehic. nejra: we see risk on across asian equities after we saw the s&p 500 gain 1.7% on friday. u.s. equities did gain more than 3% on the week and the s&p 500 ended 3% away from the record high and we see that