♪ emily: i'm emily chang. this is the best of bloomberg technology. coming up, the battle with the as. border over mexico delicate balance between immigration reform and big-money government contracts ahead. the u.s. senate voted overwhelmingly to reinstate penalties for the cte -- zte. potentially upending the deal the president struck with the company. we here from senator mike brown.

intel, the ceo is out and reveals he had a consensual legendship with an employee, a violation of company policy. first, to our top story. lawmakers push back against president trump's attempt to save the chinese telecom maker. senators passed a bill to restore penalties, cutting off its axis two chips and coonents it needs to build smartphones and equipment. senator chris van hollen spoke to bloomberg to explain why lawmakers moved to pass what could be a death sentence for the company. >> they pose a national security threat to the united states through their telecommunications and network. that, they violated u.s. sanctions multiple times, flagrantly. so there is no reason to let them off the hook. emily: but president trump is

not backing down, here is wilbur ross, speaking on bloomberg television. saying there might be a compromise, but the government will take action if violations continue. >> we have taken over $2 billion in fines. ever, we havetime the ability to implants into a company that has violated sanctions our code of conduct, our code of export control. and we have unfettered access to the company in order to monitor it. ,f there are further violations we will shut them down as we did before. we have the power to do that. emily: bloomberg tax correspondent joined us to explain. >> we are seeing them get punished severely. the longer they are in this limbo, the more damaging it is for companies.

they have already lost billions, their operations have been halted. they do not have a clear path ahead and still rely on united states chipmakers for key parts and their equipment. thehe end of the day, process is providing more impetus for ski jumping to achieve his made in china goal, which is actually at the center of concerns for u.s. lawmakers. china to bewant economically dependent, to steal ip from the united states. but the tsonga is telling china they need to figure out how to create this them ethically in their country, so that they are not beholden to the u.s. parts. emily: thank you so much for that update. i do want to bring in senator mike brown of south dakota. he currently sits on the committee, and was previously the governor of south dakota. welcome. >> thank you. emily: do you think president

trump has started a trade war, or would you call it a trade dispute? >> well, right now, it is a dispute. but nonetheless, it is impacting our markets. down, andices are that's a lot of money in south dakota. china takes up about 25% of the entire soybean markets. 60% of exports. so it makes a big impact on one of our -- on our agricultural states. emily: this certainly sounds like a trade war to me. we're talking about another billions of dollars of chinese goods facing terrace. -- tariffs. is, the president does not think we're getting a good trade. we will allow the administration time to put together negotiations, but time is

running short, particularly in agriculture where we are looking at production maturing. soybean and corn coming in. if we do not have stability at some point, it will start to impact our economy, and that is something we do not want. most certainly, if the agricultural states there is support for the president, but they also want to know what is and it is -- end game is. how can we sustain this impact? bloomberg has published a story that these tips for cap, the war, disputes, whatever, could hurt american companies. apple, walmart, gm, tesla, starbucks, amongst the most vulnerable. does that concern you? >> it certainly does. as we have said for several months, when you go after china, they are the big dog, you have

to do it from a position of strength. i think the president understands that. but right now, we had a few with canada, with mexico. tpp,d not get into the which had 11 other countries representing half a billion new consumers. felt veryhouse strongly we should do individual agreements with each country. we don't have a single one done, so let's get one done, and go after china in a position of strength. but what we are asking is what is the end game? we need to continue to grow the economy, and you cannot do that without some stability. your senate colleagues have voted to restore these penalties on zte. do you think the president's deal lets them off the hook? >> it wasn't so much letting them off the hook that concern me and my colleagues. we are concerned with what they represent as a threat to our

national defense, and by that, kaspersky had relationships with the russian government and we prohibited our government from buying and per se that equipment. in this case, my concern is not zte hasthe damage that done. the president addressed them with a billion dollar fine and wanted the board of directors removed. i do not have an objection with that, but i do have a concern that we have to make sure their equipment, at this stage, is not being utilized within critical infrastructure. doesn't it seem like these issues are getting a little bit muddied? a separate case or being used as a chip in this broader trade war/dispute? >> in some cases, it is part of the discussion. it is also part of the issue that the president would like to be able to use in negotiations

to china on other is, including north korea. i do not want to tie his hands when he makes a deal with the leaders in china, unss it impacts our national security. that is the one thing we have real concerns with. to stilllowing zte to infrastructure critical areas that impact our national defense. look, we have passed a bill and now the president can tell us what he is willing to negotiate with us. the house has a bill with similar restrictions. there are simple modifications that could be done to the senate bill if we get an agreement with the white house, in terms of agreeing to move forward. can simply not be allowed to sell to the federal government, and particularly the areas critical to our national defense.

the infrastructure areas where telecommunications could be impacted by this organization, which has direct ties to the chinese government. mike: thanks to senator rounds from south dakota. google is pushing deeper into online commerce, investing millions in china's jd.com. florida joinedal retail solutions in southeast asia, u.s., and your. it is seen that europe -- europe. nearly 2000all, miles long, and silicon valley is trying to cash in. how because it's of the wall border big tex immigration politics. if you like bloomberg news, listen on our radio app. this is bloomberg. ♪

emily: a new ceo has been named

for the health care business. the company will provide health care to berkshire, amazon, and jpmorgan's one million employees. the goal is to be free from profit-making incentives and constraints. the battle over the u.s. border with mexico is not just a political fight over the thousands of miles were people seek to enter. it is a conflict raging in silicon valley, which seeks to balance immigration reform with big money government contracts. take microsoft for example. they scrubbed an online reference to their work with ice. it touted microsoft's cloud contract with ice and the air force, but recently, it went missing, as the battle over separating families at the border was all over the news cycle. we asked my son on monday about the omission, and it is back online. this comes as their relationship

with government agencies are coming under increasing scrutiny. bloomberg's reporters have written extensively on the company's long history with the u.s. border. karen: microsoft touted this contract with ice back in january and how it had this great potential future. to use ai tools and facial recognition. it was just out there since january, and all of a sudden, it disappeared. after a lot of media scrutiny, it was quickly put back online and they have had a ball of -- a lot of pushback from their own employees. saying they don't want any contracts with ice. microsoft has been saying their work has been legacy functions, the boring stuff of a big bureaucracy. but now they have some internal employees saying we do not want any contracts with them at all. it put them in a tough position, because they have been saying this policy is unacceptable.

emily: this is coming from a letter from microsoft employees by the new york times. we request that microsoft cancel its contract with ice. as the people who build the technology that microsoft profits fun -- from, we refuse to be complicit. we recognize the great responsibility that those pretty powerful technology have to make sure what they build is used for good and not or harm." "we -- no sign of any of these companies planning to protest their government contract, right? karen: no, or even anyone say, we will cancel this contract or anyone say we will let this one lapse. so what do you make of the response of tech companies? so many heavyweights from zuckerberg to elon musk are coming out saying they are against this, but walking that fine line between politics and business.

>> some tech companies, it is easier for them to take a political position position. -- position. they don't have as much business directly with the government. , theyfounder of air bnp are not ingrained in tech operations as some of these other companies. but they have led this movement of people coming in. but you have not seen everyone, for example palantir has not , said anything, which is one of the largest contract holders of ice. we have seen nothing official out of amazon. it is a fine line when they do business with the federal government and are looking for comprehensive immigration reform and the type of policies they need to get high skilled workers. emily: you have written an incredibly compelling piece about the history of technology at the border.

hundreds of millions of dollars spent on technology. projects started and stopped. how is the united states using tech at the border right now? what is working what is not? karen: there are many parts to the border. there are the official ports of entry and the surveillance technology being used. x-ray cameras, databases, biometrics, things like that. is the hugere expanse of the border between the u.s. and mexico, where it is just to rein. -- terrain. that is where the government has tried over decades to use surveillance technology to bring the image of border crossings into local patrol station so they can respond. the thing that struck me and my colleague, who did a lot of reporting on this together. is that decades of struggling to make technology work. the border is immense, with an extremely harsh environment. there are huge wins, extreme

heat, insects eat through sensors. this is different than deploying this system in the middle of a city. it is way out there and makes technology a lot harder. although, there are a test to change that. technology and sensors have become less expensive. i think we will see change over time around this. emily: that was bloomberg's karen. the ceo of intel resigns at the company discovers he had a consensual relationship with an employee. as cfo takes the reins in the interim. bloomberg tech is livestreaming on's twitter, and be sure to flow our global breaking news network on tictoc on twitter. this is bloomberg. ♪

emily: tesla is suing a former employee accused of stealing company secret. they have accused a former technician of launching a

sabotage campaign, after being denied a promotion. computer program to steal proprietary information and sentenced to three unidentified entity. tesla is asking a judge to stop him, and anybody working him him -- with him. they are also seeking unspecified compensation and punitive damages. top ofise shakeup at the the world's largest maker of semiconductors. afterave removed the ceo learning he had a consensual relationship with an employee, a violation of company policy. bob swan has been named interim ceo. crash moved up over three decades and let the company as ceo. the company through an era of intense consolidation, and leaves much work unfinished. he was in the midst of trying to remake intel into a more general provider of chips. multiplewith

correspondence after this news broke. yeah, this is obviously shopping. we are still looking into exactly what happens, who it was, the type of relationship. this is an ongoing process. the company is just trying to move on, but clearly, we are in an environment, as you know and wrote about yourself, where this kind of behavior is no longer something that just get swept under the table. and he was actually one of the executives who was out there talking about equal rights , and advocate of the me to movement. >> exactly. if you just look at his twitter account, which is still open, you can see all of these statements he made. he tied executive pay in intel to a greater degree of

minorities, especially in an industry with aren't many women at all. he was out there, one of the public faces of doing something about this. and then this happens. they also significantly increase referral bonuses for diverse candidates as part of his push. i wanted to take a look at this chart, which shows intel's growth under him. for me, your team has had the opportunity to meet with brian several times. how did this strike you? >> at this point, i met within a few weeks ago. i have always had a tremendous heunt of respect for brian . he has always been very straightforward and candid in response to our questions, which i can tell you is a rarity. i thought he did a good job. under his tenure, the company grew revenues by more than $15 billion. they grew earnings per share by almost 100%. emily: now intel has always,

, always, always promoted from within. could they break tradition here? and go for an outsider? >> they are in an interesting situation here. they have had a plan all the time, where they will encourage executives to get experience, and then they will see who sorts themselves out. who comes to the front of the past, we make them present, coo, that have a clear succession will see in ways. -- in place. krzanich has also been fairly dynamic of bringing in people from the outside and one of the people who would we one of the natural successors or the people who would step in this kind of situation is stacy smith. the rene james's are not there. they are gone, he got rid of them or they left because they did not want to , stay, so that does leave a vacuum in terms of that continuity. so, yes intel is going to have , to widen its viewpoint in terms of where it goes next. emily: the interim ceo, bob

swan, was on bloomberg television a couple of weeks ago talking about the accomplishments over the last couple of years intel has had. >> over the course of the last couple of years, we have dramatically expanded our served market. where we used to focus primarily on cpu's, we now focus on demand for data and where silicon can be a differentiator. our product portfolio today cpus and fpgas and theficial intelligence for data center, or pcs, or autonomous vehicles. so we had dramatically expanded the market we serve. emily: who are the most likely contenders, and should it be an insider or an outsider? >> i think if they go the inside route, i think the top candidate is probably murphy, who is effectively their chief engineering officer, but i also think there are some outside candidates that intel will

seriously consider. you highlighted sanjay, former qualcomm executive, somebody who ran a global foundries, a manufacturing powerhouse. somebody who is respected by some of the largest shareholders in the sector. -- from broadcom. he has done a phenomenal job. probably not much left to do at broadcom, so that would be a big change in culture for intel. those are the two that come to mind. emily: that would be a huge break in culture. i want to go back to renee james, a woman who pitched with krzanich to become president, and he became ceo, and she left so fast. could these new revelations shed any light on why she left or could she be a candidate?

ian: she basically left the company and now has set up her own company which is effectively competing with intel, trying to get into the server market. intel's home turf. that's not the actions of someone that feels a lot of loyalty and affection, at least for the current leadership of intel. would she be on the list? we will have to see. if they are open about diversity, open about looking at the candidates who might make the most sense, she would certainly be someone they should put on their list. emily: romit, what would you like to see, given the challenges intel has ahead, given the consolidation of the industry, the competition. this design flaw they are still trying to get through. >> i thought they brought in a world-class cfo in bob swan, and i would like to see them go externally. there's a tremendous opportunity as an investor in intel. the company obviously has very good momentum today which i think will continue. they are struggling, though,

struggling with manufacturing execution. m&a has looked at times wasteful. if you in terms of who they brought. if you bring in the right executive with a good track record, i think there is a tremendous opportunity. the current price could actually be a very attractive entry point, so we will see who that person is. it is pure speculation at this point, but i do see this change as an opportunity in intel shares. ahead, here comes the taxman. this week, the u.s. supreme court freed governments to start collecting billions of dollars in sales taxes from internet retailers. repercussions are ahead. and later this era -- hour, will google make changes to increase

diversity and close the alleged pay gap. we hear from an employee speaking up. ♪

emily: welcome back to "the best of bloomberg technology." in a landmark decision, the u.s. supreme court ruled state and local governments can start collecting billions of dollars of sales tax from online retailers that do not charge taxes for their customers. it overturns a 1992 ruling that made much of the internet a tax-free zone. it has shielded retailers from collecting taxes if they did not have a physical presence in the state. ofputs pressure on the likes amazon, at sea, and internet retailers as a whole. we look at the repercussions for the industry. >> the winners are probably brick and mortar for the next year.

we can go back and look at what happened with amazon rewind , 10 years ago, only about 10% of the items they collected taxes on. now that's about 70%. during that time, they accelerated their growth. from midteens to mid 20%. the reason why it is a win at least near term for traditional brick-and-mortar is there will be a period -- probably a year -- where people will maybe stop and think twice because they don't get that 5% discount on some items. and so i think over time, people , will forget about that and by what they want where they want, but it is a small win for traditional brick and mortar. emily: we spoke with a hedge fund with a big position within wayfarer and he said it's not , that material because most internet retailers are already collecting taxes. consumer behavior will not change.

this isn't going to drive consumers traditional stores, they still pay taxes there as well. would you agree? >> i'm not so sure about that. i actually think it will make a big difference for companies like wayfair and newegg because they are not used to collecting these taxes. we are talking about 12,000 different tax jurisdictions that they will have to comply with. amazon is already doing that, so they have an advantage over companies like wayfair. certainly brick-and-mortar companies will benefit, but i think amazon will benefit as well. emily: let's talk about what this really will mean for consumers. consumers love low prices, but in this day and age, they really love convenience. >> you are exactly right. we surveyed this over the years. i was surprised when i originally found this out. cost/price is the third reason why people shop online. usually it is selection and then

the delivery. those do, you could wrap them up more broadly as convenient. but it is the third most important piece, so i think that is the reason why after a year, people kind of move on and come back to online despite higher taxes, but, yeah, to put this quickly in perspective, there's about 350 million unique items on amazon in the u.s., and it's obviously difficult to drive to a store and get that kind of selection. that is paramount in consumers' decisions. emily: ebay' statement in today's ruling is limited to large online retailers and confirms that small businesses argue differently by the court. it's time for congress to provide clear rules with strong business exemption. talk to us about what this decision does not address and what will be left up to congress. >> congress has a lot of areas to address. one is back taxes, going back

years for taxes that have not been collected. south dakota, not part of their law that was in issue, but also de minimus rule. congress has proposed a couple of different laws that have not been approved. the diminished role is much lower, something like 10,000. for small businesses, this rule essentially says that states can tax them without any sort of minimum. you sell one thing in one state, and you are taxed. emily: how are we expecting congress, then, to respond? >> before i answer that, i just want to mention, there is a little wrinkle in

this for amazon. they have a service right now that they charge third parties for managing their taxes, typically 2.5% to 3%, for all the headache we talked about. andrew talked about the 12,000 different tax jurisdictions. if there is a universal tax that congress does pass to simplify taxes retail, for example, 5% across-the-board that may have a , negative impact on that business. but to answer your questions, we do not really know what the terms of this are the . congress needs to still decide. i don't know what the timing of that is, and i would say the probability that there is some sort of holistic view on online taxes is extremely high by year-end. i would put it above 90% chance that we get something. emily: you have a little bit more on the timeline. how does this play out? traditionally, it takes congress about 5-8 years to address supreme court decisions. it would be great if they could

address something by the end of the year. we have nothing congress getting their act together on things that are even this evidence and, so it is pretty hard to say. like to see something by the end of the year, but it is difficult to say if they will do something. although, we do have a couple of bills that are already there so , they could just reintroduce one of the bills that are just pending. ily: coming up, blockchain in ducis have been boasting all the solutions and applications. and now multiple corporations are paring up to use it in the gaming industry. details on that next. plus, a chef provided you the highest quality fuel for your competition. not the life of a football player, the regime of the modern sports star, the videogame or -- videogamer.

emily: goldman sachs ceo lloyd blankfein spoke with our editor in chief at new york on tuesday and touch with cryptocurrency,

reiterating that goldman sachs does not own bitcoin. does not believe a fluctuating digital currency to be a store of value. >> it is not a systemic issue at this point. people are passionate for it, i rememberagainst it when it came out first with cell phones. , who ther thinking hell is going to love this thing around. -- there are 10 phone booths on every corner. this is a fad, no one is going to carry a cell phone. i passed on that whole thing. turns out to have worked. [laughter] not for me, i don't do it. i don't own bitcoin. goldman sachs, as far as i know has no bitcoin. , if it does work out, i can give you the historical path why that could happen. emily: though bitcoin has taken a tumble, there's still a lot of

interest, and global spending is expected to reach $2.1 billion, more than double the 945 million spent in 2017. bloomberg's caroline hyde spoke with a global innovation the companyeader .ust announced a partnership >> the solution where trying to solve here is the incredible complexity of business contracts. xbox gaming platform and all the videogame publishers out there. there are several thousand publishers and games. every single one of them has unique contracts and rules for the different countries. hugely complex intellectual property problem, that lends itself to being deployed on a blockchain. >> how can this be expanded? to othery to apply

areas of royalties and where else can be easily be applied? >> absolutely. rights and royalties or video games are similar to movies and entertainment. working with microsoft we plan , to put out this solution across all ranges of intellectual property. and also, to open it up beyond video games, microsoft and their partners. >> why get involved in this? i'm sure they have got plenty of blockchain expertise in the company. >> they do, and microsoft has been an incredible technical partner. but not only do we have deep process knowledge around it, but we have been partners with microsoft in the technology development. so they have been putting together the process around smart contracts, scaling up blockchain. from a transactional perspective, this will be the biggest blockchain in the world.

when fully deployed, it will be 2 million transactions a day. our engineers worked alongside microsoft engineers. to make sure we could build a solution which would scale even larger than the. and bitcoin combined. >> talk about the scaling challenge, because it is what has been holding back and frustrated some with why it can't be used for the payment solution. have you been able to scale to get so many transactions when it is an industrial solution? >> there are some advantages when working with the microsoft environment. we chose a program called quorum. we made some choices in the design architecture that will allow us to speed up the process. the most important thing is if you look at platform like ethereum and bitcoin and others, they have plans for scaling, but what is more challenging is figuring out the business process application and business value creation.

that was the big driver for microsoft. we are able to take out two thirds of their cost of managing a rights and royalties system. and, we are able to drop the time required to process and -- transactions and tell partners how much they have coming. we dropped it like 99%. this is the biggest cycle time compression we have had in my career. emily: are you looking for a job? one that lets you got down the competition, fight off hordes of alien invaders, be part of a team of top athletes? and one that pays up to $4000 a month with nine digit signing businesses -- bonuses? aofessional gaming is no billion dollar industry coming giving a new wave of teens and twentysomethings a shot at celebrity. just imagine living in this $15 million home. steady salary,

supported by a team of staff whose sole purpose is to , get you to play at your best. >> fellas, let's go. >> if you don't perform, you are cut from the team. >>ere we go. round three. round three. no breaks. >> if you think this sounds like the life of a pro athlete, you would be right. kind of. it's is the life of the future, lived by the lucky few today. >> my name is michael, i'm a professional gamer. for someone who is uneducated in the e-sports scene and doesn't understand how it works, the way i would describe it is it's kind of similar to a professional athlete. it is a lots of preparation, hard work, and team effort. >> ghost gaining plays players like mike to play in videogame battles.

yes, that is a real job now. more people watch video games then netflix, hulu, espn, and hbo put together. e-sports is already a billion dollar indtry. that is how ghost can afford to shower players with all kinds of perks like this team house, a a 10 bed 16-bath mansion hollywood and houses 10 players at the time -- a time. >> when most people look at the house we are living in, it's a bunch of teenagers, and it's a lot of us, so you would think it's rowdy, we're just reckless, but we are professional e-sports players. >> here's the day of a professional gamer. >> i wake up 9:00, 9:30. breakfast.

11:00 a.m., we have workouts. that lasts for an hour to an hour and a half. after lunch, we play from 1:30 to 7:30. that's just a long grind of playing against other talented teams. we play from lunch to dinner. [indiscernible] >> mike did not want to discuss his contract, but when he joined ghost, it was reported he and his teammates shared a $50,000 signing bonus and were each offered $4000 month salary. on top of that, he sells his own

-- earns his own money on the side. he streams on the popular site which and sells his own line of apparel. but like professional sports, gaming is not a lifelong career, and there is a ton of turnover. met mike,hs after i ghost dropped them from the team and he is now back home in new jersey. this sounds tragic and could nearly end a player's career, but is very common in these teen. players get relieved and switch around all the time. whodvice to young gamers want to play professionally, you got to stay patient, dedicated, and understand it will take sacrifice. there's always another person out there trying t that spot t i don't have any plans to give up the gaming career. i'm going to bounce back from this and make my mom and dad proud. emily: i want to bring in

"bloomberg tech's" aki ito. down in the hollywood hills, shooting that story. do all pro gamers live like this? >> know they certainly don't, this is the best of the best. earnings true they are bigger and bigger salaries, signing bonuses, all kinds of perks. but maybe not glamorous. that, i could get used to but why they need a professional chef? they're sitting on the couch. >> that's the thing, sitting on the council day, that's incredibly unhealthy so you do need to correct some bad habits. emily: the characters we saw here, what are they up to now? >> mike, who use a feature, he just signed on with a new team. we heard him say he only was going to bounce back, he did. emily: we speak to a google employee talk about the lack of diversity, pay equity, and more. this is bloomberg. ♪

announced agram has billion active users for the first time effort -- ever. in comparison, facebook has around 2 billion. the social chapter will also start a new chapter of mobile video, for people to be able to watch longform videos, which can be up to an hour long. alphabetsis month, meeting was turned on its head when an employee to two-stage to criticize her bosses. she proposed base time pay raises to diversity and inclusion. the proposal was voted down, that it reflects a sentiment that they are not doing enough. a long-time google employee, back to partition to create better policies and procedures. i am frequently disappointed

by the fact that not much has improved. more thatere is a lot alphabets executives could do improve diversity and inclusion. emily: what do you think the problems are? report washen this released, they care deeply about representation and creating an inclusive culture. while moving in the right direction, we are determined to googleate progress executives are often saying all the right things. >> it is true that they are saying the right things, however the problem is they are not , doing the hard changes that need to happen within the company that would materially affect making changes to the way they conduct their business. emily: so you helped create a petition with co-worker.org pushing for better work pace policies. ending things like harassment. at google for a long

time, and we don't often hear from employees while they are currently at a company. why are you speaking up about this? >> we tried to fix the problems internally, but we reached a point where we realized we couldn't help this problem entirely on our own first of all, this is a medical problem -- systematic problem that affects not just google but all tech companies. secondly, we needed more leverage to get this problem of discrimination solved. market what do you make , of the fact that google employees are increasingly speaking out when we never heard from them before? >> it is something happening across the industry. just yesterday we saw microsoft employees, over 100 employees sign a petition to the ceo about their work with ice? --. time hads, for a long , a lot of avenues where people can air their grievances.

they have a culture of having open debate and discussion. and yes there have been issues , where management has refused to move. now, this past year there have been significant changes. the military contract with the pentagon, that is no longer being renewed in large part because of an employee protest movement paired. --. emily: liz, you have active on some of these issues. tell us what you are doing and what you are hearing from your colleagues about this arrangement that google has with the u.s. government? >> i'm constrained in what i can talk about in regards to information my company might consider proprietary or in and save -- sensitive. it is true that employees do have a robust culture of communicating and expressing dissent within the company. this has led to positive results for google and the world at

large. however, i cannot speak specifically about certain projects that google may or may not have engaged in, because i am concerned about retaliation from my company. can you tell us, then, about your own experience at google and the experiences of her calling? -- colleagues. it is not just about hiring, it is about retention and regression. how have you felt about your own journey at google and you feel like management has supportive of advancing your career? >> i think that i have been very lucky that i have a supportive management chain. i know that other people have been significantly less lucky. they have had experiences with hostile managers who refuse to advance their promotions and career prospect. i know of people who have been assigned the wrong level upon higher, and had take two or three years to be assigned to

what their similar peers have been assigned. it's a situation where a lot of people, myself included, would have many micro-aggressions. situations where people talk over you in meetings or deal -- steel your ideas. but i think it goes beyond that. with there are systematic problems about how the company assesses performance, assigns levels to people. i think it really hold back minorities as far as how equitably they are treated with the company and what their career prospects are. emily: google does have a fairly robust peer-reviewed system which employees have told me can be easy to game if you have a lot of friends. if you don't, it can be more difficult. >> i think we have heard that from a lot of employees. google's management is in a difficult position. they are facing wall street on the opposite end the fired engineer cleaning the company has been discriminating against white males.

i think the idea is that google feels they are between a rock and a hard place on these issues. the company has been a trail blazer around silicon valley. everything from the way they give out free food, which is something all these countries aspired to, and even larger companies look to google to set the path on hr, company culture, hiring. and it seems like this issue that the employees are pushing management to be a leader on this is well. liz, engineerto at google and bloomberg tech's mark barton. -- bergen. that does it for this edition of "bloomberg technology. we hone in on a potential google age for chinese capital. we bring you the top names in chinese of the sea throughout the week. tune in each day, 5 p.m. in new

york, 2:00 p.m. san francisco. and remember, we're live streaming on twitter. and be sure to follow our global breaking news network on tictoc on twitter. this is bloomberg. ♪

♪ nejra: bitcoin could break the internet. the bank for international settlements tells the currency world it is not ready for prime time. mifid ii takes months on, the transparency around dts. the future of compliance, when it meets regulation, what wrong does the blockchain play? welcome to bloomberg markets: rules & returns, i'm nejra cehic. we delve into the regular challenges and opportunities for financial markets around the world.