people familiar with the matter say rosenstein brought up a molar probe to the president during -- up the mueller probe to the white house -- to the president during a meeting. monday on is to vote the nomination of mike pompeo as secretary of state. it faces opposition from the democratic party. mitch mcconnell says it may be tough to block pompeo after his meeting with north korean leader kim jong-un. the justice department's inspector general has returned a finding that former deputy director andrew mccabe misled investigators. they will now determine whether mccain should face criminal charges for allegedly -- mccabe should face criminal charges. mccabe has disputed the accusations. southwest wanted more time last year to inspect fan blades like

the one that snapped off during one of its flights tuesday in an engine failure that left one passenger dead. in new york, i'm mark crumpton with "first word news." "bloomberg technology" is next. ♪ emily: i'm emily chang, and this is "bloomberg technology." or's -- semiconductors. we will put the forecast that rattled investors into focus. fbi, and the pentagon, other law enforcement agencies tapped feeder teal -- peter teal for help with -- peter thiel for help with --

amazon's underpaid army. our look at the other story buried inside the letter and the window it opened into the company's rank and file. to our lede, apple and a slew of chipmakers fell thursday after rekindled concerns that the handset boom is waning. sales will be $1 billion less than projected. smartphone shipments declined for the first time, a reminder that the best days may be in the past. mark gurman, who covers all things apple, and bloomberg's ian king, who covers all the major chipmakers for us, join us now. why is this having such a big impact on apple shares? . >> it's a good question. this is more than just a low-cost contract manufacturer. they are a leader in this new wave in technology of outsourcing chips. if you are a smart phone maker, it is quite likely that the main component in your product was

factory.n a tsm if they are not getting the orders they thought they were or the market thought they were, then that is a bad sign. emily: what is driving the forecast? >> communication. they don't give the specifics. they don't say this customer or that customer isn't ordering, but they do talk about the biggest part of their earnings. they said that is weaker. emily: what other indicators are we seeing that smartphone demand may be slowing down? mark: that's a good question. the biggest indicator is iphone sales in the q1 holiday quarter, which came in about $3 million to $4 million less than expectations. apple posts earnings on may 1. emily: 3 million to 4 million phones fewer. they were projected to sell around 80 million, but they sold about 77 million phones. emily: we do this every single quarter.

every single quarter, we are wondering, is this global plateau finally happening, is this it, or are we going to be asking it again next quarter? hand, there are not that many more people in the world that don't have a smart phone. emily: and they are keeping them for longer, right? ian: that the other part of it. has the design or functionality changed radically? it's the screen makers. they are all pretty good. the other part of it is, if you look at india, some other parts of the world, maybe people are getting to an economic level where they can spend $1000 on an iphone x. mark: we are about to go into one of the most significant transitions in the history of modern technology. we are at the end of the smartphone. the question is, what replaces it? ar glasses, home iot products,s

something else? chips will always be around. from this company's perspective, they will always get the phone reading for new chips to be built. emily: we are at the end of the smartphone, a fairly bold proclamation from mark gurman. would you agree? ian: i don't have a personal opinion. the industry still believes in technology. they still believe they have things to offer that will surprise and excite people, but we haven't seen it. you mentioned in passing ar, vr. these are supposedly things that are going to be made into our phone. the smartphone will be the hub of all these new technologies. they have been talking about that for several years, and it hasn't really happened. emily: there was a big design upgrade, design change with the iphone last year. are people holding on to their iphones longer, despite that? are people upgrading, as we expected them to? or our they keeping the iphone 8 that they had -- or are they

keeping the iphone 8 that they had? mark: the iphone 8 and iphone 8 plus looked nearly identical to the 6 and 6 plus that came out three years earlier. emily: but the iphone x looks completely different. mark: but it also costs about $300 more. they had a more expensive phone that looked different. they had a little issue. there was that gap in the middle of people who would want to upgrade for a new design, but couldn't afford the more expensive one. they will change that this year with a redesigned, lower-cost model, that comes in at that cheaper price point, replacing the 8 and 8 plus. emily: is there anything else we are seeing in the supply chain that is concerning? ian: we saw an equipment maker you have probably never heard of. emily: i have heard of lam research. what are you talking about? ian: they are a player to the memory chip industry. they came out and said, we

thought orders would be equal in both parts of the year, looks like it will tell off in the second half. that caught people going -- got people going, maybe this is a sign of the downturn. emily: apple results out in a couple weeks. what are the expectations? mark: 15.5% year-over-year growth. emily: how many iphones? mark: more than i have in my closet. tens of millions of phones. i don't have the analyst estimates on phones yet, because we are not quite at the time when they put those out, but it will be fewer than the 80 million they sold in the holiday quarter. it's going to be interesting to see. they need year-over-year growth on the iphone side or else the iphone x, combined with all these negative remarks, will be a bad look for apple. emily: bloomberg tech's mike -- mark gurman and ian king, thank you both. istter's bet on video

beginning to pay off. an increasing number of advertisers are buying slots. twitter's daily active userss jumped 12%, marking the fourth -- fifth time in a row it recorded double-digit year-over-year growth. shares are up 30% this year. coming pu, peter thiel -- coming up, peter thiel may have ditched the valley for the midwest, but he is not ditching the technology it created. we look at the secret surveillance software in his tech empire. if you like bloomberg news, check us out on the radio, listen on the bloomberg radio app, in the u.s. on sirius xm. this is bloomberg. ♪

emily: hulu is now reportedly worth $8.7 billion, according to disney. fox's is buying most of entertainment assets in a $52 billion all stock deal, which would include taking control of hulu. time warner owns 10% of hulu while disney, fox, and comcast each own a 30% stake. disney would end up with a controlling stake of the video streaming giant. it's one of the most secretive technology companies in the world, and it is mining massive amounts of data being used by everyone from the department of defense to the f ei -- fbi, local law enforcement, and more. it is the brainchild of billionaire tech backer peter thiel. it comes through so cruel wreck

-- social media and other digital footprints. the result, a spider web-like creation linking it altogether. bloomberg is shining a light on the shadowy nature of power and tear -- of palantir. i would like to welcome bloomberg's lizette chapman. talk to us about what palantir actually does. spreads --lantir pulls apart -- pulls together different data and minds it for meaning -- and mines it for meaning. emily: this is not illegal. it is perfectly aboveboard. lizette: it is. but there is a question of how far is too far. emily: talk to us a little bit about what you learned. you talked to 100 people for this story? lizette: myself and my co-authors talked to about 100

sources for this. we combed through a lot of documents as well. some of the things that we learned included that -- just how deeply some departments were willing to go or had explored going. for example, the lapd has used it extensively. they looked into purchasing private data from camera feeds from hospitals, parking lots, even pizza delivery information from poppa john's and -- papa john's and pizza hut. one of the things that became clear that mark zuckerberg highlighted in his testimony as well last week was how much data is available on individuals and how little they control who has it and what they do with it afterwards. emily: mark zuckerberg was actually asked by one of the senators about palantir. and it was interesting. he didn't have all the answers, which is intriguing, given that peter thiel is a longtime facebook investor and board member.

the indication was that palantir may be doing something wrong. did you find any evidence of that? lizette: there are a lot of questions about how it's being used. ultimately, it's up to whoever is using it. palantir sells the software, than the customers and, ostensibly, their privacy and civil liberties team of engineers decide what are proper uses of how that technology is employed, for example. with jpmorgan, there were over 124 deployed engineers that jpmorgan employed for several years to look for any insider trading or any type of problems. how theywound up -- wound up using it was quite different. it turned into an internal spying mechanism on jpmorgan employees. emily: is this like a weaponization of data? lizette: that is a very good

point. i think it's fair to say that. the way it is used is unequal by different customers. merck and airbus use it for things like supply-chain automation, looking for parts, and drug discovery. the department of homeland security uses it to keep tabs on immigrants. there was some conversation about whether palantir would be used to create a muslim database sometime back. knows a lot more about me than facebook, is that what you are saying? lizette: facebook is one of many sources of data that a palantir system would have access to. as storage gets cheaper, as people sign on to more and more, allowing more and more apps to access their data, that trove increases exponentially. not to mention all of the third parties that can buy it. it is free reign on the open market for that. emily: how reliable is palantir? we saw the spiderweb earlier.

are they creating reliable connections, reliable conclusions, or could some of these conclusions they're drawing be false? lizette: it depends on the data they are sucking in. it is helpful to think of palantir like a spy's brain. it doesn't do this buying. it connects -- do the spying. it connects the hands, the eyes, the ears collecting the data about the world around us, then palantir pulls it together and figures out what it means. there is so much data out there. palantir is a very powerful tool for pulling it all together in a way that is unprecedented. emily: what is peter thiel's involvement today? lizette: peter thiel is the chairman, one of the cofounders, and he owns a massive amount of the stock, both personally and through two of his investment funds. emily: how much is palantir worth today? this is a company people have

talked about going public, but it certainly hasn't and also has been valued at, as i understand it, tens of billions of dollars. lizette: it was last valued publicly by private investors at $20 billion in 2015. morgan stanley has written down its stake multiple times. the last report we have was about $6 billion. it has been written down many times. this was according to bloomberg holdings in december. what's interesting about this company, as powerful as it is, with hundreds of millions of dollars of contracts in the federal, state, local agencies, plus all of the private deals that it has, it still has never turned a profit. so, i think that there will be some pull and push, according to the sources we've talked to, about how much they are going to want to automate the system going forward, which, of course, removes human judgment. one thing that ostensibly is protecting some abuses in the

drive for profitability. emily: fascinating. great piece by lizette chapman and a couple other writers here at bloomberg. thank you so much for sharing that with us. catch that in this week's issue of "bloomberg businessweek." britishp, british -- a artificial intelligence startup announces a new funding round. details on one of the largest funding rounds in the emerging ai pharmaceutical sector next. bloomberg tech is livestreaming on twitter. check us out @technology. this is bloomberg. ♪

aily: benevolent ai is london-based startup using artificial intelligence to discover new drugs. the company has received millions of dollars in new funding to hire more people and expand its focus to new diseases, giving it a valuation now over $2 billion. earlier, caroline hyde sat down

with the cofounder and chair of benevolent ai. she asked how ai can fast-track drugs and bring them to market. >> we are trying to bring drugs to very difficult to treat diseases. at the moment, we have 20 drugs that we are developing, and they will treat anything from als, parkinson's disease, sarcoma, just things that are very difficult to treat and require very scaled knowledge, because they are very specific diseases that require that you have all of the information in order to define a treatment for those. knowledge,y scale of there comes the power of machine learning, the power of data i assume,. how is ai really fast-forwarding, fast tracking

the process of finding drugs that work and getting them to market? >> part of it is scale. the system has ingested 25 million publications, hundreds and thousands of clinical trials, genomic databases, prodi ohmic databases chemistry databases,, and has digital recollection of what each and every fact is that has ever been written in the compendium of human knowledge as it relates to human biology. then it can reason on top of that. i kind of think of it as, we have all these knowns out there and we've done amazing job standing on the shoulders of giants where all this research has taken place, but there is a much that we don't know about disease -- is so much that we don't know about disease. this technology can begin to reason and say, if i know that, i should also know this. we generally focus on diseases that are very difficult to treat, that have a lot of different factors, like als is a

good example. there are 30 genes associated with als, the disease that stephen hawkins recently passed away from -- stephen hawking recently passed away from. ist's so difficult about it 85% of patients don't have any of those mutations, so there is a lot going on in that disease and it requires us to really scale our knowledge, to the a humanere, to date, scientist has not been able to hold all of that information and begin to reason on that information. caroline: so, a computer can. you are scaling the business, raising money, $150 million. what will that be used to do? >> much of that will be used to expand our therapeutic footprint, to begin to look at other diseases. also, scale the business. we are about 165 people at the moment. i think comfortably we will be

300 around by the end of the year. and we will be growing from there and really looking at making an impact on those diseases. it is kind of a mix between biological scientists that we need and advanced computer science that we need to tackle some of these very difficult problems. caroline: where does the talent lie? where do you need to hire? >> we have offices in london and in cambridge and in new york, and those seem to be the hubs that have really the deepest talent pools for the type of skills that we need. the u.k. has been, historically, there is strong in the sciences -- very strong in the sciences, inh biological and more innovating in the ai sciences. caroline: no threat from brexit? >> no. if you look at the footprint of our staff, they are from all

over the globe, so it is something that we are mindful of. that these very talented scientists will have a place in the united kingdom. caroline: who is your competition? >> that's a good question. in terms of artificial intelligence companies that have this capability, at the moment we stand alone. there are companies who do components of what we do. but in order to really define the right target, you also have to understand the clinical landscape, so you have to be able to understand the whole process end-to-end it's probably more the pharmaceutical companies that we feel we would be making the biggest impact on, rather than players thate ai will look at target id or chemistry. but actually the companies that have the breadth to go from preclinical development all the way through the clinical

process. caroline: you are now worth over $2 billion. do you remain independent? what happens to benevolent ai? ken: it's a good question. we set out this company to retain our independence. we do want to bring drugs to market. it's certainly a passion of mine. i think that we can make a difference, particularly in diseases that are really hard to treat. emily: bloomberg pas caroline hyde with ken -- bloomberg's caroline hyde with ken mulvany. big tech ipos already this year. there appeared to be -- appear to be plenty more on the horizon. ♪ welcome to the xfinity store.

i can tell you about... streaming the most free tv shows and movies on the go. yeah, and... xfinity internet. it's so fast! and you can save by... by getting up to 5 mobile lines included. whoa, you're good. i'm just getting started. ♪ simple. easy. awesome. come see how you could save $400 or more a year

with xfinity mobile. plus ask how to keep your current phone. visit your local xfinity store today. mark c.: i'm mark crumpton in new york, and you are watching "bloomberg technology." according to people familiar with the matter, deputy attorney general rod rosenstein told president trump last week that he is not a target of any part

of the special counsel's investigation or his probe into his longtime lawyer, michael cohen. despite objections from mitch mcconnell, the judiciary committee will consider a special counsel protection bill. >> congress must consider its constitutional role and act to availsure that it can itself of additional checks against the executive branch. thatc.: the chairman added the views of the majority leader are important to consider, but affect what happens in the committee. -- the president is adding rudy giuliani to his legal team. the pentagon says there have been no reports of civilian thealties in syria after missile strikes by allies.

in cuba, the communist party has iaz-canel to be the president. he will report to raul castro, who remains head of cuba's communist party. global news, 24 hours a day, on air and @tictoc on twitter. i'm mark crumpton. this is bloomberg. ♪

this is "bloomberg technology." i'm emily chang. the 2018 u.s. tech ipo market kicked off with a bang. companies from dropbox to

spotify have hit the public market. the quarterly value of u.s. tech ipos by trading date. scroll over to the right. you will see we have some of the biggest ipos hitting since 2014. more news on what could be the biggest public offering of 2019. --r $100 billionking a valuation. enrique salem -- is joining us, and with us in new york, david politis. talk to us about the global tech ipo landscape and how bullish you are. enrique: this has been a very interesting time. this year we've seen nine major ipos in the technology industry. you saw dropbox go public

recently. there are a lot of other companies that are in registration right now. docusign is expecting to go public later this year. this is a vibrant time for companies. they are thinking about how do you move from on premise to cloud computing and applications. you're seeing a vibrant market. emily: this is certainly your area of expertise. country is what you think about the dropbox ipo in particular -- i'm curious what you think about the dropbox ipo in particular. enrique: what's happening is you have a lot of data, and data is what criminals are really coming after. so, dropbox is a storage mechanism for lots of your data. if you're going to target something, whether it be ransomware or pictures, your financial data, they are coming after things like dropbox, so they need to have the right and appropriate security. emily: bettercloud just raised

$60 million in funding. security is a huge focus for you as a software solution. what does your company add to this market that currently isn't being served? david: the thing that's happening is that there is this massive shift going from on premise to the cloud, specifically to sas applications, and is changing the way we work. this is the biggest shift in how we work in the last 20 years. the last time we had a shift like this was when we started getting email on our phone. look at how we are working with files in the cloud. nothing is living on the device anymore. it is all in the cloud. we help companies secure the sas applications they are using, and all the data being moved around, shared, collaborated on, we protect that. emily: how concerned are you that this shift to the cloud, to more shared workspaces in the cloud is making us more vulnerable? enrique: you really have to think about, what are you doing

in the cloud, what are the sites you trust. if you work with companies like sales force.com, workday, those companies take security so seriously that you are in good shape. it really comes down to what are you doing, what are you looking at, what are you going after. there are so many new technologies coming out. investment ind an a company that palo alto networks just bought. we led the investment in david's company. it's all about managing and securing across all of the sas apps. if we are going to be protected, we need to have the right technologies. emily: david, bettercloud just a year ago, forbes reported you are close to "near-death." you have done an entire rebuild. it wasn't working, but somehow you changed course. now you are in the $1 billion club. what happened? was that wehappened

had spent two years building this new platform. applicationss sas and helps control and secure those applications. what happened about a year ago is, when we launched this platform, we realized that our message and pricing and some of the details in how we went to market was not resonating. as soon as we changed that, that's when we saw this explosion in terms of adoption. so, we were never really near-death, per se, but we did have a challenging couple of quarters. and we turned that around in q3, once we changed that messaging and the pricing. emily: enrique, the cloud is -- companies are at war for a piece of the cloud right now, whether it is amazon, google, microsoft. who owns the cloud of the future? is it always going to be many companies? is amazon on its way to a cloud monopoly? enrique: we are in a 20-year transition to the cloud. we are still in the beginning.

you are seeing a real proliferation of lots of companies, new companies that are taking up different pieces. what we know is that everything we do is moving to being more cloud-based. you are using office. 365, dropbox, slack. so, i don't think there is any one company that will own the cloud. there will be hundreds and probably thousands of applications that we use every day. what you have to think about is how do you work with those applications. what will you trust? all the different businesses i work with, what they talk to me a lot about is, how do you secure your data, how do you enforce what users can and cannot do, how do you protect their data, how do you enforce privacy. there is not one owner. there are hundreds of businesses that will flourish. emily: there has been some controversy around how much the tech industry should work with the u.s. government. for example, the pentagon is

considering offering a huge cloud contract to a single cloud provider, amazon is supposedly in the lead. some of the competitors have a problem with that. meantime, you have eric schmidt testifying that tech companies should be helping the government, using ai and some of the many technological advances. do you think silicon valley should help the u.s. government, and to what end? david: i think if we can help the u.s. government and drive them to the cloud and using not just cloud and infrastructure from amazon, but sas applications, which we've seen and worked with a number of government agencies that have already migrated to using some of these applications that we mentioned before. i think that's a good thing for us, long-term. because if we can move the government, the u.s. government to start using cloud and cloud applications, then there is really nothing that is off-limits. there's no business, no industry

that is off-limits. i think it's a good proving ground for a lot of these technologies. we've now reached the tipping point where they are trusting the cloud, trusting these new applications. that's a sign that we have hit the tipping point, and it's about to accelerate, in my opinion. emily: enrique, i'm sure you've been following this facebook controversy. the social network under fire about data privacy, about fake actors meddling on the platform. you think tech needs to be regulated? enrique: when you think about it, the key is, what's going on for the consumer. ultimately you have to protect consumers. when you have too much information in any one's control one's control, you have to make sure safeguards are in place. emily: does facebook have too much information? enrique: how are they doing to protect your data? the government has to step in when you think it is being mishandled. as a user on facebook, i think they do a good job of keeping

their settings up-to-date and controlling what people can and cannot see. is there an opportunity to make some improvements? i think so. emily: enrique salem, david politis, thank you both. coming up, the world's richest man makes 59 times more than the median amazon worker. we crunched the numbers. this is bloomberg. ♪

emily:emily: on wednesday, amazon dropped a massive number -- 100 million. that's the number of prime subscribers.

it's another number that has people talking today. 28,400 $66, the median salary of 8,466, theloyees -- $2 median salary of amazon employees. contrast that with the net worth of the world's richest man. the number is even more shocking when contrasted with the median pay at facebook. here to tell us more, the man who literally wrote the book on amazon, brad stone. obviously, this is a sign that amazon is built on the back of a small army of workers who don't make any money. that i might not put it way. these are dramatic comparisons. a probably not the right comparisons to make. amazon is 2/3 a blue-collar company. they are a network of 200 plus fulfillment centers around the world. these workers, full-time workers make $14 per hour, median, about average for that kind of work. amazon presents benefits that

probably other warehouse type companies do not present. on the other hand, it's not a union workshop, so $14 per hour probably comes under what other warehouse weight -- workers make. this is a 500,000 plus person company, lots of seasonal workers, part-time work, probably impacting the numbers as well. amazon brings on 100,000 people every holiday season. to compare what they make versus what a programmer at facebook or google might make, it's not quite apples to oranges. emily: what do you make of this prime number am a 100 million members, more than -- prime number, more than costco, 100 million members? not necessarily apples to apples, but showing the hold that amazon has taken. brad: the subscription business is a great business. 90% plus retention. people don't really reevaluate it at the end of the year, plus they probably have some inherent instinct they are getting their value out of it.

that's where the prime video and prime music comes in. amazon is constantly adding benefits to prime subscription. that was one of the messages of the shareholder letter, which is customers keep wanting more, amazon keeps larding prime number ship with benefits. it is probably a more upscale membership compared to costco. --hink maybe there are some there are some people who have both, but this is the strength of the retail business, those prime members who continue to spend $99 a year and continue to buy on amazon. isn't amazonay, part of its own problem when it comes to raising expectations? brad: that's right. it's part of why we are seeing such a shakeout in the rest of the retail world. the ground is tilting here. customers expect more. when they walk into, say, a se ars and it is the same customer experience it was 20 years ago, they are unsatisfied. emily: you have a piece out this week on the ceo of amazon

consumer worldwide. -- you focus on his role in harnessing the power of ai at amazon, which is an extremely big job, given that google, apple, facebook, everyone wants it. brad: its what he wants to talk about these days. he is a hard person to interview. he wants to talk about ai. google, to some extent microsoft, are known as research organizations. amazon does a better job applying ai to products. you have not just the alexa, the amazon go story, using ai to create a cashierless experience. you have robots moving inventory around their warehouses. who knows what else? it's one message that amazon wants to get out, which is that they are competing for ai talent and creating ai products as much as these other companies. emily: talk about jeff wilke's bigger role at the company. he has half the business, essentially. brad: there is the cloud

business under andy. wilke is responsible for what they sell you, what's available, figuring out how to most efficiently get it to your house. he started out by basically designing amazon's entire fulfillment network and supply chain, creating fulfillment centers that don't ship pallets to stores, but figure out how to get individual items to houses. bezos has come to trust him, so he has taken on more and more responsibility. emily: uber has hired a cfo. s darag towards an ipo a khosrowshahi has been very public about that 2019 could be the year. brad: the previous cfo at vmware is taking on the role at uber. he was also at continental. before that, apple. a ton of experience, of professional cfo, someone who

might be able -- a professional cfo, someone who might be able to instill confidence in these big investors that uber can handle the cost side and get the company to profitability. emily: another company that is still not profitable. brad stone, thank you so much. coming up, apple angst. it drops as a key iphone chip partner forecasts weak demand for smartphones. we will bring you the latest. this is bloomberg. ♪

emily: lyft plans to spend millions of dollars to offset the pollution created by drivers. it could help company draw environmentally conscious customers from its rival, uber.

lyft hired three degrees to oversee a carbon offset investment. those will include efforts to reduce pollution in forest conservation. qualcomm announced it will cut 1500 jobs in california, the majority at the san diego headquarters. this is all part of a pledge the company made in january that would slash $1 billion in expenses to improve earnings, as far -- part of its effort to fight off a hostile takeover bid from rival broadcom. apple's the strength of continuing iphone business may be wavering. a major apple supplier announced a forecast for second-quarter sales tha fell short. t the imf noted that -- sales that fell short. shipments declined for the very first time. shares of apple and major chip companies are trending lower. elstrom joins us now from

tokyo. peter, the view from asia, break this down for us. this is where most of apples suppliers are located -- apple's suppliers are located. peter: that's right. tsmc is particularly closely watched. it is a key chipmaker in the supply chain with apple. they give these forecasts. we were able to dig out this information a bit early in the presentation yesterday. their forecast for next quarter is quite a bit lower than had been anticipated. as you saw in the market today, that was taken as a negative sign not just for tsmc, but for the others who depend on it, beginning with apple and others in the supply chain for smartphones in particular. emily: talk to us about what we are seeing with qualcomm here, probe in china.a what's the latest? peter: the probe in china is a bit concerning at this point.

qualcomm has to go to the chinese government to get approval for this acquisition of nxp. they proposed that more than a year ago, and it has been dragging on and on. what china's regulator said yesterday is -- this is the first time they've said this on the record -- they have been reviewing the deal and the remedy that -- well come has been offering some remedies, and they are not sufficient -- qualcomm has been offering some remedies, and they are not sufficient at this point. they have to refile the application. they want some reassurances that the combination between the companies will not have detrimental effects for its domestic companies in particular. they buy a lot of semiconductors in china to put into different products that are then shipped around the world, so they have a big say in this deal. emily: how does this fit into the trade tensions happening now? would like, qualcomm to say that this doesn't have

anything to do with the tensions between the u.s. and china, but it appears it could become a bargaining chip between the two countries as they are trying to work out these trade negotiations. of course, donald trump has threatened to tear ofs against tariffs against he calls practices unfair. the commerce department in the u.s. decided to cut off the big telecom equipment maker from buying any kind of components from american suppliers. that's critical. that includes qualcomm, not coincidentally. so, qualcomm's approval from the chinese regulators may end up getting caught up with these other negotiations over exactly what the tariffs are going to be or what kind of approvals, what kind of practices chinese companies are going to be able to use as they work with the united states. emily: i know you will be following this for us, bringing us the outcomes. peter elstrom, thank you so much

for joining us. that does it for this edition of "bloomberg technology." we are live streaming on twitter. check us out, @technology. that's all for now. this is bloomberg. ♪

♪ haidi: u.s. stocks fall for the first and four days as tech comes under renewed pressure and treasury yields hit their highest since february. commodities remain strong as opec and ellice meet in saudi arabia. washington prepares restrictions on china, march 6 hours across sensitive areas. betty: