>> i'm in san francisco, this is bloomberg technology. corporate stock paying nearly $19 billion for ca technology. deal baffled some investors saying they gone too far from chip-making focus. sky high bidding war. comcast increases its offer for sky for $34 billion.

move is on murdoch and in.r ceo's settle first to our top story. china tones down its trade amid hints china and u.s. trade officials maybe talkg to figure out to again. additional tariffs could go into weeks.in a few is the biggest tech impact? >> it's semiconductors and telecom equipment. challenges for lot of tech companies, tech hardware is completely entwined with china. some of the subcomponents like metals, things that go into pieces way down the chain. so hard to extract that for

all these companies. even though we haven't seen the tariffs on phones and typical products you be concerned with, those components are purchased by everybody. all hardware companies are taking a bit of a hit if these to kick in. >> we haven't fully figured out the impact of the trade tariff drama. we've been operating from an assembly standpoint in china for so long. been such an efficient gizmos. meet technology giz chip making industry expanded. made in the united states anymore. extricate yourself to penalize a company for operating china, it's a very dangerous path to go on.

of this is not known. emily: bob, what about start-ups? start-ups fall? >> software start-ups are fine. cloud-based services could expensive. telecom equipment becomes more expensive. are companies that get 20% of their sales from china. them -- this executive impact them? measure.ill be easy to measuresstart to see by china to have a direct impact. critical also components that go into food chain that china needs and want.

gaming pc's for which is a key supplier. there are not that many in the world. vendors.ver three we're joined at the hip on this one. i'm baffled that you will try to do as painful exercises. emily: there seems to be hope that the side will start talking. could this get bad? >> it could. have to be careful about is china's efforts. them in the past to drive their entire own ecosystem. in 2025 program that they've been talking about is say,bout being able to thee going to develop all the

atellect -- up until now it's single global tech evolution. if things really get bad, we see these dual paths where technology standards become different. bad.would be very emily: we've seen this with japan? telecom standard with we have these paths and we have together for 4g. the market has a way of making this and but youing stuff back together. i agree with bob a would be paths. emily: what's your take on this. qualcomm didn't happen. got got involved.

certainly, still ambitious as always. >> number one makes zero strategic sense. number two, you're going so far your core competence a only ting you can do, this is financial engineering. it plays ber than most betterductor makers and than most technology companies. got?is all we to expand margins and etcetera. got?is all we we can do better than this. multiplecumulate a makers.semiconductor qualcomm slipped away. agreed there's not that many left. plenty of chip makers put have enough size or together few of them to have an back. is undergoing substantial market drama now.

emily: also relative to china. could fall through. i'm little puzzled as is most of the particulate the stocks are 15% now. or take. broadcom could have done better. one of those head scratching things. from?did this come clearly it's this conglomerate to tech put related together. there's no integration with customers or supply chain with anything. it makes you scratch your head, what are they possibly thinking? at the pairly surface level, they're adding chips, we were talking about intel trying to

buy mcafee. that was an effort. some degree of sense. this one is much more challenging. with intel buying wind river which is a much smaller theisition which is in business of designing systems using intel chips. both acquisitions got sold for pennies on the dollar. transactions, chips buying software companies historically, hasn't worked out. monitoring --cop keep monitoring it. power up apple's new house. the giant unveiled new line of pros.ok next.

emily: an is -- apple is releasing new version of the laptop. they up veiled new -- unveiled pros.ne of mac book this coming as apple remains in fourth place market share wise for global pc shipment. and dell.p, lenovo about the macial brook pros? >> this is what the pro users have been waiting for. released it in end of it had cool features. people were asking is this really what we want. the answer was really no for a people.hose it was more of a consumer laptop name.ice and pro it has a more powerful

faster than0% 15-inch model. it has more ram. let you component that do more things at once. it has desktop quality ram. now the higher prices are matching. do movie editors and developers want? of stuffant to do lot at the same time. they want it to get stuff done. don't want have to wait. they want processes to be smooth. movies to take shorter time to make. that's why they're paying so much money for these tools. smaller markhad a share. is that changing could the happen ford that mac. >> the mac in term of growth has

stagnant. it's been that way 20 million last year, that's about 5 million quarter average. look at the ipad in growth slowed over the past several quarters. i think it's a good thing that growth has been very steady. marketplace for other devices slower growth. emily: do you think apple can take larger share of the pie? even if the number don't accelerate in a plateauing market. could apple own more of it? secret up apple is its sleeve. they're working on a revamp new cheaperon of the mac, model. them anthat is give turn to hype up their growth and market share on the mac climb. emily: we've talked about going public that no one really cheaper, high end smartphone. which apple has tried and didn't

out. can they get a decent amount of mac?t share with a cheaper >> i think so. had one.ok air, i super successful under thousand dollars. hasn't hasn't been revamped in seven or eight years. new coming in with a new macbook replacement. emily: we shall see. microsoft is aiming to get slack a run for its money. it is releasing a free version of its corporate chat team.ation called it gives users unlimited search 10 gigabyte of data storage. is laurie wright. thank you so much for joining us. does microsoft team have that slack does not?

>> thanks for having me. the things we're excited about this today is being able take what teams was built for. space anddigital work have it where you can do everything from chat and allaborate on files to make video call or even a phone call. all of that right together. we think about our competitive opportunity here, can bring the power of the office suite in and bring in that and unlimited number of applications and really be able to offer this to everyone. has 500,000 said it organizations, 8 million active has 200icrosoft organizations since team launched months ago. marketthe plan to win share? >> just to make sure we have the right statistic. it's 200,000 organizations that we have brought into teams in

year.st incredible mark coverage. over 60% of users are outside of the united states. we're looking at 181 markets world.the we're thrilled with that progress. we have 135 million monthly users of office 365. team.ers have access to this announcement today is really about focusing on small businesses and helping these small businesses who are sometimes strapped for resources. you think about a start-up and nonprofit, all of these organizations they can come in the power ofting microsoft teams. emily: how does this fit into broader vision microsoft the ceo laidath out to increase productivity in workplace? >> right. if you think. productivity, long e-mail has been about individual productivity. this now is the expansion unit

productivity perspective. we've seen such a shift in the workforce where organizations thinking about gets work done and how groups get work done. that's what teams is. all the power of office 365 and microsoft 365 together through the lens of team work. you think about, over third of planet has an e-mail address. now how do we take any of those who are working together in a group and give this teamwork. emily: how do you see the future work in the collaboration network changing? the advent of slack was shocking but nothing that simple existed in workplaces before or that workplaces remain tethered to internal system. how does that change in the future? >> what we have seen is the

the work force. you have gone from long form form.ication and short people like simple chat. increasingly, there's also the distribution of the workforce. people are working remotely. half of people in the workforce today work remotely of the time. there's also more than five generations. would of these different trends we need mu ways to bring people fromher and help them move that individual productivity. apple, microsoft, alphabet are driving towards this probably trillion dollars cap. how does a development like this line? microsoft's pot >> for us it's about giving tople the tools they need enhance how they do work.

this as anng at opportunity to say, we have office 365ss in our suite. 135 million active users. there's 200 million windows 10 there's 200 million windows 10 devices. all these things are happening and they are growing. for us, with team, it's about sure that each individual who are working in a collaborative setting can sure that upgrade to the suite. profit 365 wright launch. thank you for joining us. coming up uber offers a new way ride. for your what does this mean for apple pay? this is bloomberg.

emily: elon musk may have missed out a chance to save the children trapped in thailand. the people oflp flint, michigan. this aconsider commitment i will fund water any house in flinn that has water contamination above fda level. kidding. the mayor will be open to him.ing with starting thursday, uber riders in the united states will be vin modesee pay with option. uber joined over two million offering pay with venmo. joining us now to discuss the

partnership bloomberg julie -- it's surprising this doesn't exist. how transformative could this be? >> you seen apple pay inside uber for a while. my questions, why do you guys do this right away? they thought that now was the time when they looked, paypal can see lot of arermation on what people using the app for. over the past years, there's been six million transactions that had mentioned uber in them. like, people are -- uber asking people to pay usingack on venmo after the uber with each other. why not make it seamless right use itthe app you can and say hey, my friend stephanie me.iding with let's split this bill and not have to make that request later on. it's something they thought would be very profit all for equation. of the jo emily: transactions will be custom emojis.

how significant is it? >> paypal stock has been doing very well. the past year alone it's up roughly 50%. there's been a big push by the executives to monetize venmo. peer to peers offering where i would request meey from my roommate to pay back for rent. for venmo this pay option, they have more than two million signed on. then they make a portion of the fee. this is definitely part of that strategy.tion braintree is another start up owned by paypal. want tomething they increase that venmo brand. many things -- facebook like and instagram. thatgram is a great thing escaped lot of the things that

facebook dealt with. brand.e better venmo is something that not lot of people know that paypal owns. very valuable customer set that they have. lot of millennials using this times a day. emily: what about the of venmoty cannibalizing paypal's business? know it would totally cannibalize it. something paypal wouldn't care too much which one was there. venmo has a stronger brand now. seeing more pay with venmo options versus pay with onpal options when go internet site to make a canhase, it definitely you see venmo gaining traction. they want it to gain traction. square cash has been gaining traction lately. last thing they want to see upething like that coming sales.ing wind out their

emily: lyft doesn't have this option yet. we expect lyft to answer here? upthere's a big push to ramp the number of retailers, merchants and apps. i wouldn't surprised to see someone like lyft or another app in theffering this well. as emily: thanks as always. silicone, china or valley. the asian nation produces most of the world technology and now developing itin as well. faster.rypto how are thieve able to hack into exchanges and what's being done prevent it. this is bloomberg.

emily: this is bloomberg technology i'm emily chiang. is no secret china is to be the tech power in the world. china 2025n initiative and start-ups the dislodgelans it america. one of the keys to doing so having its own version of silicon valley. them. of you see china currently has a 2.1 billion. tech center in beijing and 156 state level tech zones scattered across the country. the city is building a tech center and offering plenty

incentive for start-ups to set up shop. can china do it? to answer that i want to bring editor whonaging wrote about this. york.n us from new peter, some of the biggest china tech companies are based in the cities in china. that?cus on >> china has been aspiring far reach theto try to u.s. in different technology fields and surpass some of the key fields like artificial intelligence and electric vehicles. look at the closer incentives they are offering companies. we traveled to and we were able opening ceremony for a start-up that was moving into a.i. start-up.

they talked about move into the space and what they're able to do with this government support. some senses it's little bit like support that american states amazon.ng to give to it goes way beyond the traditional incentives. taxes, it'sy no free office space and some cases housing for their employees. the chief talked about the financial incentives you can get. capital firmenture several million r&b. model.very interesting it's one we haven't seen in the athnology world and it's odds with the traditional free system. emily: capital chair argued that tech is winning the global

race. venture capital with huge practices in the united states big practice in china. would you agree? >> i don't think it's already winning. interesting about it they are using this alternative model in a tech industry that seems to be working operate well. gaining ground in key area. there are complaints from the u.s. part of the reason we wanted to this story is come at time of high trade tensions between u.s. china. u.s. made accusations by unfair practices by china and tech industry. of that is protectionism to keep out companies like facebook and twitter. that is allegations of stealing intellectual properties. there are chinese companies gaining ground. they have a whole bunch of start-ups that are getting cities and these

they are of cog up -- they are coming up strong. ofly: there's lot uncertainty surrounding how this trade dispute will play out. much do you think what we've seen so far could put a dent in ambition to become the leader in a.i. or leader in electric cars? >> there are two sides to that answer. it moreoes make difficult in some respects. administration said going get closer scrutiny to chinese investment in key field.n technology of it is, this is going to make china, the government and also the chinese technology companies even more determined to develop their own technology because they will need it more if these trade tensions get even higher. one of the key issues in the

dispute over zte was that zte when the u.s.wn cut off access to american components. chips and optical components from american suppliers. none available. this will become even more toortant issue for china develop the technology industry. emily: thwhat is happening acros it's such a country across so cities?ferent what's happening in beijing, and hong kong. mentioned, there are more than 100 of these parts. to be clear, there are some reservations even within china about whether this makes sense. see this government activism they are concerned wasted.ll be solar andd this in

steel. they ended up in over capacity. try to do is areas.ize in key it is driven by this party rough the mayor and little party second he of that.ail because their goal is to leave that legacy behind to go beyond the school manufacturing that they used to do and really develop new technology a can be'. tech, peterberg elstrom thank you for stopping by. over its dong sued not disturb feature.

this feature instrings on its own patent. userso.s. allows iphone to freeze a phone when owner is driving. the lawsuit can complicate the iphone to update its and tablets. apple has yet to respond. uses more to hackcated techniques on and steal funds. on can check us out technology and follow our network attic to be on twitter.

emily: cryptocurrency considered risky investment for the more investors. crypto exchanges continues to rise. caroline to bloomberg hyde in london. >> we've got a fascinating guest through london. according to the security, more inn $760 million cryptocurrency was stolen in year.ges this already in the first half of the year. by much are we going to see 2018? >> it's notten reasonable to suggest $1.5 billion. if we look at the trends from last year and year before and we

tripled what we saw in 2017. we're only half way through the year. sete seeing new exchanges up. not quite ready for prime time often times. that's where we're seeing the money being stolen from. easily because a enforcement enforcement. >> sometimes they go after of exchanges. fishing them. password and private keys. aftermes attacks like go your i.t. people and fish them. sophisticatedly let me plant malicious code and over the exchange. it's global. the criminals are global, are the exchanges are global.

everyone. to emily: what about the global regulators. sophisticatede, one. seewe starting to regulators get it? >> regulators are getting it. it's different from country to country. we've seen great work in the the u.s. it's tonight important to look at how people are looking at it. sometimes it's very defensive. that areother people aggressive, they trig to be crypto island. you low tax rate and regulatorya nice

encourage you to invest here. happening in bermuda. be enough tothis sheen arthur they are not being hacked. >> if look at the banking you remember back 10 years ago when fishing of starting to get going against and businesses. regulators had to step in and put recommendations and say here's the best practices to stop phishing to detect transactions. we're in london, 20 minutes doing transactions from russia. things will start happen with regulators. emily: give us a flavor some of the more extraordinary ways you found these new breed of

identify and target the players. criminals are going where the money is. people.e educated knowinge people graw up -- you don't have to be the best coder. you have to be good tricking people. they're very good about for figuring out who in i.t. is at a crypto exchange. targeting them with one or two very targeted e-mails to get their passwords to criminal whole exchangea over. traffic.over all the or, planting a very special piece of code inside of an to get them access to code. they'll hijack cell phone number

one of the -- whe-- emily: you just launched a new product. cyber pace offering products to help educate. >> seeing the industry mature. we've been creating anti-money laundering capabilities for these crypto exchanges and hedge funds and other inventories who the source of the sound punned fund. people is what misconceive, you can trace bad actions within

--gure ho ficult to out who's, who's. if you risk scoring a tonsaction -- you apply that crypto. those are all looking pretty safe, pretty good. ones we don't know anything about or we see some bad traffic. the customersout or the funds that are dangerous. fascinating tobe see how this industry continues to grow. up.t's going to grow everybody wants it. much. thank you very see you -- >> i want to talk with another story. report from the british government highlighting how maintain smooth

e.u. and u.k.he how do us how they can change rules? >> this is the new white paper coming from the prime minster theresa may. within that is the devil in the of how the you can our flows be-- how data impacted. this is clear that the u.k. will called digital signal market. have to prove its adequacy. comes touacy when it the mental right of protecting the data. like argentina at the moment and

such new zealand they are deemed adequate when comes have they are allowed to free flows of data. u.k. will not automatically have leaves the e.u. eu and u.k.,een theyng at data how interact. able tountries will be share data and within five rings. is something that can't be .ssumed u.k. will get just about not privacy and it's about national security. concerns.the thanks so much. coming up, your move murdoch. ball is back in fox's corner the bidding war for sky heats

up. bloomberg.

emily: 2018 emny nominations are in. netflix achieved a milestone. they scored 112. netflix overtakes hbo. reflect rapid rise of netflix. theking with media in bidding war for sky, britain provider. u.k. government approved bid sky.fox for fox selling sky 24 hours news

channel to disney. over.andoff is far from fox now have to decide whether to beat comcast bid of thrower which represents 5.4% premium over what fox has table. ed hammond join us live from the sun valley conference in idaho the great and good of the media and tech world gather every july. on in theing background here which comcast disney fighting over fox 21st access.nment walk us through where things stand now. we're talking about these kind of big deals that go wars. refer to them as in this case it's probably some accuracy there. so many different battles being fought and so many different fronts and potential outcomes. sky have to deal with fox that to.greed

-- they said you can do it as long as you do the other deal that you agreed to do disney. now comcast they say we want to buy sky. the assets. buy there.there, fox is it's a really complicated picture. -- main players are .ere you guys needs, something better to write about. sorts as you say, this is moguls,tle of media what is the end game here? let's start with comcast and brian roberts. >> i think for them sky is a price. i want this expand their international business. sky would get them there

immediately. they can foresee closing that .eal. not the deal that murdoch want to do. they want to do the deal with disney. outlined the solution roles.here's legacy skyink it's comcast do this deal and, it will be interesting shareholders respond to it. emily: report. we can imagine many intense conversations. what else is coming up in sun valley? think the interesting thing is that you have lot of these deals that we're talking about because we have so

much pressure from the tech industry but also other forces traditional media. jeff bezosg, accuracy -- i'm sure there will be discussions going on how the will shake up. you have the political backdrop and his outcoming summit with putin. he was talking about the sort of is going on.g there's a lot of apparently good happening but very little of substance. backdrop which is difficult to deal with. we've seen more recently trade putting --hina is emily: where do we expect u.s. regulators to fit in on these deals? question.great

we went full 180 on this. the original expectation was trump administration will be light on regulation. came out already strongly with time warner. it will be aa fear muscular approach. if you consider what that is putting together in term of power -- i think last think-- i uncertainty probably the word i itld use to describe emily: uncertainty it is. you so much. oft does it for this edition

bloomberg technology on tomorrow show we'll be discussing the purge.witter what will be the fallout when the platform banishes millions followers. that's all for now. this is bloomberg. retail.

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