emily: i am emily chang in san francisco and this is "bloomberg technology." netflix adds just over 5 million subscribers. well under expectations. does it mark the end of an era? amazon crashes on prime day. and the 36 hour extravaganza and $3.4 billion in possible earnings. we speak to the man who heads up the prime business at amazon. and elon musk raises eyebrows

again on twitter. this time has the outspoken ceo gone too far? netflix's second-quarter numbers are in and the numbers came in well short of expected numbers. 5.1 million new subscribers, about a million fewer than expected and the trend may continue as netflix announces it plans to add 5 million subscribers in the next quarter again. the numbers are plunging. why the subscriber slow down? joining us is dan nieves and in studio we have bloomberg tech editor tom giles. they were expecting 6 million adds.riber i know you are bullish. what went wrong? >> a negative punch. expecting a bead on the subscriber number.

light, especially international. if you look at it, predicting so much international growth will add some quarter to quarter. we have seen some blowout results. this is what i view as more of a speed bump, not the start of a negative trend. you will see a negative knee-jerk reaction. the international growth story. the growth season is intact and things will go much higher. nevertheless, they will have a lot to do to explain in terms of why they missed and looking forward, is there anything they are seeing internationally, why they saw this weakness. emily: he thinks it is just a speed bump but why? >> when is the last time you got excited about a show on netflix? emily: it has been a while. i will be honest.

>> "stranger things", we were on the edge of our seats. emily: and they don't have a seasonal schedule which gives them more flexibility but it also leaves people frustrated. >> it is not like when we were growing up. in the fall you knew you would get the new shows. you got the upfront advertising. that is all gone away. and in many ways, that has been the strength of the streaming services. amazon is the same way. at the same time, it leaves the rest of us guessing -- when will that happen again? and they are few and far between for netflix. one of the bright spots has been a comedy show. people talking about that and getting excited but it is a one-off. it is not a series. dan also talked about international growth. netflix has talked about getting original program in countries like india. that can make a really big

difference. once you start creating shows that people in other countries can get excited about. emily: netflix is feeling the punch. we have been talking over the last few weeks over how it has surpassed. is this because of the lack of new content or the unpredictability of the schedule of new content? others suggested is due to the world cup. >> you take a step back and look at disney, 21st century fox, and streaming services. more competitive headwinds. time warner. that is why they need to drive content. tom has a good point. it speaks to why netflix had to spend at this rate. any dip in content, you could see speed bumps in the quarter. and the international buildout. content will be so key for

netflix. you put it all together and you have disney on the horizon. this will be a key in 6-12 months for netflix to navigate some of these linear headwinds. like what we saw this quarter. and the comfort that it is a speed bump and not a negative trend. emily: netflix is burning through cash. even as the stock price climbed. netflix's fastest-growing expense is not content. it's marketing. >> when you do not have the word of mouth that everyone is talking about and getting excited about, you need to get the message out. you need to keep it top of mind because there is so much competition in streaming. alternatives.ny as you pointed out, the world forcould have been a factor some people who were tivoing

that. not watching it during work later in the g it day. if you want to get the message out, you have to get it out somewhere and it will come from marketing. emily: and other tech stocks have gotten rattled. is there a longer-term trend at stake? we're expecting all of these next ies reporting in the couple of weeks. >> you will see a risk off trade. i think what you will see in the next week or two, you could see some of them getting hit. not necessarily a correlation but the worry is given some of the valuations, you will see the stocks get hit. a worry is that we navigate through the rest of the earnings season. is netflix a canary in the coal shaft? that is why they have to do a very good job in the conference call giving investors

omfort what the next three to six months look like. emily: we will continue to discuss this later in the show. the letter coming from hastings to shareholders saying youtube is their major competitor. hbo and disney. thank you to you both. the fcc is questioning sinclair media's attempt to win approval by contribute stations. they would send it to a hearing, step that may kill this deal. sinclair wants to sell some of stations to meet regulations. he contends that the sale is structured in such a way for sinclair to control the assets regardless. the deal would give sinclair a reach into almost 59% of u.s. households. the deal is being reviewed by the department of justice and the fcc. in february, the fcc revealed it was conducting its own investigation. coming up, it is one of the important days on the amazon

big dar and it has already snafus. we will talk to the executive in charge of prime, next. this is bloomberg.

emily: a major hiccup on one of the most critical shopping days of the year at amazon. the prime day sales promotion ran into some major technical glitches on the website and the app about one hour after the sale kicked off spiking around lunchtime. according to website down detector.com.

we are bringing in our guest. guru hariharan, a former executive at amazon. analysts are quite frankly shocked that amazon would not be prepared for this kind of traffic. amazon says they are working on it. what do you make of it? guru: prime day is like the super bowl of e-commerce. the day when amazon is putting its best offers in front of everyone on its website and now the ecosystem including companies like walmart and the consumer package groups behind that. and one thing we know about amazon is that they are extremely good at operations. given that, if the website is going down, it means one thing which is that they have a lot more traffic than they expected. if i am an amazon shareholder i am signing up and rooting for this.

emily: you don't want to mess up the first quarter. >> for them to lose this traffic and not convert on it will be a major problem. if you look at the positive side, there are a lot more shoppers and it has become a big phenomena. and another thing to remember is that prime day is almost a preparation day. preparation they are doing for the holiday season. and they are essentially using this to stress test their system. they did not stand up to the stress test this time. but, in preparation for the 2018 q4 season, they are getting the right signals so they will be ready for that prime time. emily: it has been going on for a couple of hours. do you still think this can be a record-breaking prime day with this more than a hiccup?

>> it is going in one direction, up and up. last year it was 60%. the year before it grew 40%. all of the numbers are double digits and nearing 60% growth. this is expected to be the same especially given they are getting a lot of support from manufacturers like procter & gamble and kellogg who are also putting up their own prime day websites on amazon in support of the prime date deals. it is a lot more mainstream this season as opposed to a couple of years ago when they got a lot of criticism. emily: it is the first prime day plus whole foods. one place you will not run into technical glitches is at the whole food store.

can people get that excited about grocery shopping? >> grocery shopping is hitting critical mass online. years ago, if you were a large company like kellogg, you were not focusing on amazon or e-commerce. whole foods puts online shopping, online grocery shopping front and center. this year there has been a big push with amazon pulling $10 off if someone purchases something from whole foods. with the grocery segment in e-commerce, we are starting to see a lot more mainstream companies making the series. emily: amazon does have some major weaknesses in apparel and furnishing. they are trying to combat that i making more amazon branded products. can they make up for lost ground there without losing their relationships with third-party

sellers? >> they have more than 70 branded products now. they have launched mama bear and happy belly and not to mention the whole foods private brand of 365. although that is starting to gain a lot of margin traction for amazon. in a traditional sense, amazon used to push for topline growth and very little bottom line margins. these private brands are helping amazon get margin advantage back from all of this. emily: hang on. we caught up with cem sibay, amazon vice president for prime, in seattle before news of the glitch broke and we asked how they get the right deals in front of the right customers on a day like today. cem: you would be surprised. the launch of the whole foods benefit for prime members has been one of the greatest benefit. i said at the time that this would be our most important benefit launch.

the adoption of prime members to hold food benefits with the savings and the deals -- and in the lead up period, it has been phenomenal and humbling. customers have saved over millions and millions of dollars through the purchase of whole foods. emily: what does a win look like at whole foods in particular? cem: prime day is a celebration of that. we launched prime day four years ago in 2015. we are celebrating 20 years of amazon and 10 years of the prime program. what is important for us is to try and engage as many members as possible. make sure they have a great day and find the deals they are looking for. and they walk away remembering why prime makes their life great. this is around a celebratory event, engaging with our

members, and exposing new members to what is still the best shopping deal in history. a unique combination of shopping and entertainment benefits. we keep getting positive feedback from customers. we try to make it better every year. emily: amazon recently raised the price of prime since 2014. have you seen a reduction in renewal rates as a result of that? cem: customers continue, particularly most of them continue to engage with us through shipping benefits. we see increasingly higher renewal rates as they engage in our entertainment benefits. many members will start off with shopping but then they will stick around for the entertainment. we continue to be very humbled by the response. last year on prime day, we added more prime members than on any given day in history to that point. we expect another big year. emily: you are raising the stakes today. you have cash prizes. cars.

deep discounts for alexa. is it working and in what categories? cem: it is across all categories. it continues to be a great -- a shopping period also. last year, we sold more back-to-school supplies then on any other day in the year. we are really expecting strong engagement across all of our categories. emily: talk to me about what trends you're seeing in terms of how people are using echo to actually shop as opposed to just play a song or ask questions. >> we are seeing customers engage with prime day in a variety of ways. i purchase using my echo devices. especially for reordering.

and also for great orders. customers can go to the echo device and ask alexa for the great deals. we are trying to make it as easy as possible for people to find the phenomenal deals we have on offer today. emily: what are you doing behind the scenes to make sure there are no hiccups? historically, there have been some glitches. some people unable to fill up their carts or people not excited about the deals on offer. how do you make sure it is not like a rummage sale and really is a cause for celebration? cem: we start planning for prime day the day after the previous prime day ends. we are focused on making sure it is a great event. most of the incidents you are referring to were minor glitches and they were resolved very quickly. customers can quickly find a deal they want. emily: that was some of my interview with cem sibay, amazon vice president of prime. that was just a few hours before the glitches started happening. he said the glitches were minor.

these glitches are not. amazon just tweeted -- confirming the glitch. some customers are having difficulty shopping. we are looking to resolve the issue quickly. many are shopping successfully. there are hundreds of thousands of deals to come. and more than 34 hours to shop on prime day. can they make up for the lost ground? guru: it is disappointing that they are still having issues. typically what we see is the site goes down where there are ordering issues. but they bring it up relatively quickly because they have multiple layers of redundancy in their system. in this case, it seems like things are more deeper and just falling back to a redundant layer. but it looks like given that, some customers are able to order. it will be critical for amazon to get the server is back up and see how they can handle the load

they are getting. emily: you have been behind the scenes at amazon. give us an idea of what is happening right now on the engineering floor. guru: it is hell breaking loose right now. you have engineers trying to debug what is going on. everyone is on a call. principal engineers are on the phone trying to fix this. there is no blame game at this point. it is purely trying to figure this out and fix the issue. emily: what is jeff bezos doing? guru: he is on the call. emily: thank you as always for stopping by. we will be watching in the next few hours. up, google is facing e.u.er showdown with the this time over control over the

android platform. that is up next, this is bloomberg.

emily: google is facing another showdown with the eu. this time over the company's control over the android mobile operating system. the european commission is expected to announce an top rust fine which could million. google was fined last year. more significantly, it could be any order from the eu freeing up manufacturers to choose non-google apps to install on android phones. >> when you buy a small -- from samsung or sony, you're also getting the android operating system. google gives the android platform to the manufacturers for free. they come preloaded with google services. android runs on 77% of the

world's smart phones. the european union says google is stifling competition and hurting the development of android applications. the idea is to use a stick with the default often. and may be less likely to seek out other products like -- from companies like microsoft or --. it is the second of three google's robes into business. last year, google was fined for reaching -- for breaching antitrust laws. the size of the penalty for the latest ruling will grab headlines, the bigger impact will be decisions on how google should address the eu's concerns. it could be ordered to remove or renegotiate contracts with smartphone manufacturing. which will put a dent in mobile advertising. google denies it is being anti-competitive and argues that the real loser will be consumers who currently get cheaper phones

android is free. in a blog post in 2016, google says its actions to prevent multiple versions of android is to make sure apps work across all phones. the company is expected to fight any eu finding. emily: we are watching airbnb. it was warned to expect a regulatory clampdown unless it complies with eu standards by the end of august. the eu says the company's terms and pricing are not in line and they must make it more transparent. airbnb says we take this seriously and are committed to being as transparent as possible for our community. netflix plunges after slowing growth threatens its high fire status. what has caused its second-quarter slowdown? you can check us out on technology and follow us on tictoc on twitter. this is bloomberg.

emily: this is "bloomberg technology." i'm emily chang. back to our story, netflix's second-quarter results to reflect -- to recap, it slowed in the second quarter. missing its estimated forecast. adding 5.1 million sets of i's. one million fuses -- fewer subscribers than suspected. some fingers are pointing to a thin slate of new original content while others are ondering if viewers were distracted by the world cup. let's dig into the reasons behind the slowdown to we have

our bloomberg intelligence analyst dean descent. an in studio, dell, -- bill. what do you make of this? bill: i'm not surprised by what we saw. i think you hit it on the money. content is king. there have not been a lot of new shows. we see a view of over 100 million users worldwide. in theowth rates were up u.s. 7%. they were up 34% internationally. the growth will be internationally. on the world cup, our peak load in q2 was three times higher than it was in q1. driven by the world cup. the world cup was a major factor. emily: david, let's talk about the fact that netflix missed its own estimates. the ceo said, we strive for accuracy but were in some quarters we will be high and quarters we will be low guidance.o our

it is a pretty big overestimation for netflix itself, isn't it? >> it certainly is. it is interesting because in the newsletter to investors, they have a chart where they compare them number of forecasts with the actual subscribers every year. you see every four-five quarters that they come up with a mess. they are suggesting this is really a one-off situation. what management suggested is that it is hard for them to markets across the globe. kind of suggesting that it is a one quarter blip. not the beginning of a longer declining trend. emily: is it a blip or trend? bill: i think there will be some trend involved because the world cup went through july 15. we saw triple viewer consumption versus q1. you can only grow so large. as much as they are driving and content, they will have to drive more content than the united states and internationally. also, disney's entering

streaming in 2019. sling, hulu, hul yu tv, and others. if you are a content provider, you have more options than you had in the past. i think they have 140 pe forward ratio. i think things will slow down. emily: it is interesting that this is on the back of great news for netflix getting more emmy nominations than anyone else including hbo for the first started making original content. they have completely shattered the way we expect to see new shows. yet, these new seasons are often delayed, we don't know when they are coming out. what is the consequence does have on viewership and subscribers? bill: without the level of predictability, it becomes hard to know when the shows will come ut and there is more viewing options than ever. emily: why don't they put it on schedule?

bill: those of us in product development think slip. they have more flexibility than linear tv has. i think these things happen. it becomes costly. emily: netflix we have noticed is spending more on marketing than it has. the bulk of the spending still goes to original content. then i have the marketing of those shows on the marketing of netflix in general. are we expecting those costs to continue to rise? geetha: i definitely think so. they made a conscious effort to increase their marketing, doubling it. it is up $1 billion at the end of the june quarter which is a double from last year. this is a conscious effort on their part. they know that disney will be coming into the market. they know competition is ramping up in get ahead there. that's will be a concern. marketing expenses will be rising. even with these elevated marketing expenses, they will miss subscriber estimates project to be a cause for concern. emily: is the party for netflix over or is the playing field going to become more -- more level? bill: it is deftly not over. it will be more level.

we don't know how hulu is doing but we expect they are doing well. both with regular service and tv. emily: apple? bill: apple is coming up. we don't know yet. emily: amazon? bill: amazon's hot too. imagine being a content provider. there are many options. i think the deals will be more expensive. emily: i wonder if we will see changes to the netflix playbook over the next few quarters. geetha: i think really what is going to happen as netflix management has to come out and really comfort investors that this is just a speed bump. this is not the beginning of a longer downtrend. the next 6-12 months is going to be key for the company. emily: all right, geetha ranganathan thank you. as well as bill. great to have you in the studio. speaking from helsinki, president trump sided with russian president vladimir putin over the u.s. intelligence

committee on the issue of russian election interference. dan coats, the director of u.s. national intelligence, pushed back on the president's claim saying "we have been clear in our assessments of russian meddling in the 2016 election and their ongoing pervasive efforts to undermine our democracy and we will continue to provide unvarnished and objective intelligence in support of our national security." i want to get straight to washington where our reporter is standing by. president trump said he did not see any reason why russians would interfere. what? [laughter] >> that's right. the president casted doubt on his own intelligence committees assessment. all standing next to the russian president has denied repeatedly that the -- of that russia has anything to do with the election meddling during 2016. the indictments i came out of the justice department on friday gave additional evidence that the president could have used

during this meeting to tell president putin that russia meddle, this is the evidence we had. instead, he seemed to equivocate and said that putin is denying it strongly. i've heard from my intelligence community and i believe so both sides. i have confidence in both. he tried to clean that up a little bit. with a tweet from air force one saying that of course i have confidence in my great intelligence community. he left out the part about saying he believes putin as well and that has led to recriminations from across the political spectrum. republicans are criticizing president trump for not taking a tougher stance with putin and not standing up for the intelligence community's assessment that russia and interfered in the 2016 election. emily: i believe every word of this tweet is worth repeating from president trump. as i said, many times before, i have great confidence in my intelligence people. however, i recognize that in order to build a brighter future, we cannot exclusively

focus on the past. as the world's two largest we must get s, along. are we had a point where a vladimir putin says something, so it is? toulse: president trump seems willing to accept the word of putin, a former k.g.b. agent who has been an adversary a numberited states on of issues. including the ukraine and syria, when it comes to cyber intrusions. present entrance administration has said as much that russia, the strategic adversary against the united states working in opposition to the u.s. and a number of different fronts. president trump seemed to want to but that behind them and talk about having a brighter future and a better relationship with russia and trying to work together on things like nuclear proliferation. it is clear president trump wanted to show that he could start a new path with the reset of hishave a

own. he did it in this fumbling way that led to basically criticism from his own party because it seemed like he was taking putin's word over the word of his own intelligence agency. accepting the word of the russian president rather than listening to his own administration. emily: exactly. there is an open investigation. an open special investigation, 12 russians have been indicted has me and president putin actually invited bob mueller's team to russia. mueller take him up on that? toluse: it is doubtful that robert mueller would come to russia under the various recommendations that president putin laid out. basically president putin said russia if the o russian investigators are allowed to come to washington to u.s. operatives. i don't think that is a deal anyone in the justice department would be willing to take. it is sort of a gimmick by president putin to say we are willing to be transparent that we have things we want to look

into as well. president trump did call it an incredible offer. he seemed to be willing to look into that offer. even though members of his own administration seem to think of it as more of a gimmick and classic russian kremlin style politicking. it seems that president trump is this atmosphere -- it seemed it's a my president trump is somewhat new to this atmosphere and it seemed -- he seemed to be intrigued by putin's." offer. --putin's offer. that is another reason why republicans were so aghast at what president trump said and why they are willing to speak out against him on this issue. emily: and yet, the probe continues. toblerone bar, in washington for

bloomberg news. thank you. silicon valley has given us the tech we cherish. but a new look is giving us plenty of gas upon its early days. our conversation on at -- with adam fisher with his new book. this is bloomberg. emily: uber ceo's is the company does not need -- need to be profitable. speaking earlier today at the o be profitable. speaking earlier today at the

emily: uber ceo's is the company does not need -- need to be profitable. speaking earlier today at the brainstorm conference in aspen, colorado, he said he was generating on positive cash flow than making profitable. uber has burned more than $10.7 billion since being founded in 2009. bloomberg is also reporting that uber is facing a gender discrimination probe by the u.s. equal employment opportunity commission. this coming as new questions arise about the corporate culture at one of the world's biggest startups. the inquiry reportedly focuses on allegations of pay disparities and other discriminatory conduct towards women. it is one of at least half a

dozen federal investigations into the ride-hailing company that have emerged in the last year. it is a habit of american technology. that is why we are here. it is a place the chinese are trying to copy. it is given as google, facebook, twitter, and more. that is silicon valley. but, it has a dark and sordid history that is coming into focus. a new book is shedding light on the early days of google making ost of its monday off of pornography and others. it is not all sorted. the early days of facebook being a lord of the flies like office or steve was the blowing off steve jobs. all of that in a new book, my next guest is here. adam fisher is here with me on set. thank you for joining us. adam: so happy to be here. emily: it is an oral history. you let them tell the story in

their own words and then you use others to share opposing or different views, if you will. why did you choose that approach? adam: the mainstream media, the new york media -- emily: who are you calling mainstream media? adam: not you. i read your book. and i love it. people think there is a king of silicon valley and if they find the king of silicon valley, they will understand silicon valley. now with steve jobs, now it is elon musk, but really silicon valley has a different structure them at manhattan hub. it has a network structure. there are many kings of silicon valley. and queens, occasionally. really, it is about -- you have

to tell the story as a chorister do have to understand, all the players to really understand the full arc. otherwise, you're missing the point. emily: it is interesting you call the book "valley of genius." i had to chuckle a little bit there. i wonder if there is any bit of sarcasm there. sometimes these big visions in this great genius doesn't quite work out the way it is promised. adam: "valley of genius" was a temporary title. i had to -- to write this, i had to get the cooperation of 200 billionaire types. emily: you do do interviews with larry page. adam: those are archival interviews. steve jobs is also archival. he died before i started. i have interviews with literal billionaires who are there helping page and brin code. i can drop names that i want. -- but i won't. but you needed a cooperation. everybody had to tell the story in their own words. that is the conceit of the book.

when you call up and say, i'm writing a book called "valley of genius" would you like to cooperate? if it was called "brotopia" that would not have worked. after four years of doing this, it stuck. these guys are -- they probably have genius iqs, but -- emily: they don't necessarily have the best personal judgment. we have to talk about the wild ski parties, you talked about how larry and sergei had a harem of women. brandon was not the best behaved. what did you uncover there? adam: it was really the chef at google. he is an interesting guy. you would think this is a minor position, but he was the vice president of food or something. he was in all of the meetings. emily: and through some pretty awesome parties.

adam: he got special invitation to throw these parties where drugs were freely distributed. those drugs are now legal in california so i don't know if it is a huge scandal. but it was wild. i also got the first human resources person at google, her name is heather karens, to tell much as she could. she said yes. people were getting caught in the massage room, having sex with underlings. she did not name any names, but you know, if you read between the lines, it is all pretty clear. emily: has google or larry or sergei given you any comment on this? adam: their comment is no comment. emily: let's talk about facebook. fratlike atmosphere in the early days, no surprise.

you had some fascinating insights from mark zuckerberg himself. adam: zuckerberg is also -- those quotes were taken and credited to the harvard crimson. again, i had a bunch of people who were there in the early days, katie german or who was the project manager of facebook, talk about what it was like. it really was sophomoric. the company was founded by a sophomore. it was a one huge beer bash. my favorite anecdote really is them creating a cake that -- a keg that would tell the office who was drinking and invite them to drink. the way the story seems to be, it seems like they were drunk half of the time when they were coding it up. emily: quickly, tell me about steve wozniak skipping out on steve jobs' funeral? adam: this was a shocker.

i sat down with them and we hit -- we whether the history. i said, tell me about the memorial service. that was pretty intense. he was like, oh, i didn't go. and i said, you weren't invited? he said no, i was invited, i was busy. i was like, what? what are you talking about? he was like i was on a plane to europe. i just thought, oh, now i understand the depth of this rift between not just jobs and laws, but the engineer, the creative type who is really making these technologies and the entrepreneurial conduit to the money that is really -- i don't know, probably too much money and silicon valley. i'm not so happy with that side of the valley.

emily: adam fisher, there is much more in the valley of genius. in their own words, the part of silicon valley. thank you for stopping by. adam: thank you. emily: tesla ceo elon musk serves -- stirs up the twitter sphere. both of the ceo and tesla stock prices are going down. this is bloomberg.

emily: a former apple engineer pleaded not guilty in court on monday after being charged with stealing driverless car secrets for a chinese startup. he was arrested before boarding a flight to china for downloading proprietary files after leaving his position at apple. while he admitted to downloading apple files for axis, they claim he never shared confidential information from apple.

as elon musk grows stronger, so do the controversies. musk took on twitter that is -- he's an still it is comments. he's getting criticized for campaign contributions after the self-proclaimed socialist gave $38,900 to a pact that supports. house republicans -- that supports house republicans. the one thing we left out is that used to -- used the word pedo to describe someone who were -- who was involved in the effort. has elon musk really gone too far? >> i think this is a bad one. musk has been known for -- elon musk has been known for picking fights. often he is not choosy about the fight. in this case, he picked a fight with somebody who i think had been considered a hero. these divers who saved the boys on that soccer team had risked life and limb. there's something distasteful

about making unfounded accusations but particularly at somebody at that moment. it is part of a pattern and with musk come you have to take the good with the bad. this is somebody who is extremely hands-on, technical, unconventional in a lot of different ways. and that has led to a lot of amazing marketing. but we have another situation where it is kind of a cell phone where tesla is in the middle of this crisis trying to get as many cars out the door, and meanwhile, you have this distraction. emily: let's take a listen to some of his most recent greatest hits, i will call them. >> next. bonehead questions are not cool, sorry. these questions are so dry.

they are killing me. i am here to convince you to buy our stock. do not buy it if it is scary. there you go. emily: that is from the tesla earnings call on top of the remarks today that don't bear worth repeating. even rest -- musk deleted those comments. are investors going to question whether he has it together? max: they are in a bind. the stock fell today. it seemed like there was some punishment for this. but part of the problem is tesla is probably worth more with elon musk running it than without him. you have the situation where you have a ceo who is perceived by some to be a little bit out of control, a little unfocused. on the other hand, is also the secret sauce. to the extent that tesla has a future, i think most investors, even tesla skeptics would prefer to have elon musk involved. it is a bit of -- they are in a bind. it is hard to figure out where they go from here. emily: max chafkin, as always, thank you so much for breaking it down. that does it for this edition of

"bloomberg technology." we are going to keep our coverage of amazons glitched prime day front and center with over 300 -- $3 billion estimated at stake. i'm emily chang. this is bloomberg. retail.

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manus: this is "bloomberg daybreak: middle east." president trump causes outrage as he cast doubt on whether he believes russia meddled in the 2016 election. john mccain calls it one of the most disgraceful performances by an american president in memory. the minneapolis fed president sees little reason to raise rates much further as it may cause inversion and recession. jerome powell delivers his monetary policy report later. sinks amidff, crude speculation about increased volumes from saudi arabia and the u.