emily: i am emily chang in san francisco. us is "bloomberg technology." in the next hour, hour interview with president trump's 2020 campaign manager, also known as the secret weapon who ran 5.9 million facebook ads for trump and 2016. his strategy for reelection amid concerns about the russian meddling. amazon lost his footing after a rough start -- finally gets its footing after a rough start. how many shoppers flooded the

site and ho what they're invitin -- they are buying. to our top story, it is no ranet that president trump perhaps the most successful social media operation in presidential campaign history. so much so that it has been relatively unknown that his campaign had was dedicated to rerunning his entire campaign for 2020. now that the campaign is accused of colluding with russia, trump administrated russia did meddle with the 2016 election. brad worked closely to on the campaign's strategy. one other company he worked with was one at the heart of facebook's recent data scandal. him for an with exclusive interview at a marketing association event in

california to talk about the groundwork. take a listen. now is ons right midterms. yet to understand for 2020, holding the house and growing the lead in the senate is important. to get the agenda of the president done so we have a great platform for 2020 of support, told those seats. what you see, from a camp standpoint, is us producing a supportive role in that. we take a supportive role. contentney, options, and creative things we can do to help. we can help in several dma always. -- ways. that is to make sure we can do everything in the president's campaign and committee to support them and do everything we can to hold the house and the seats. emily: what are lessons you've learned knowing what you know now? what would you to be doing differently what will you be

doing differently -- what will you be doing differently? >> in 2016, i do not have a basis of information. i came in with a clean slate which was an advantage for me. emily: you have never run a campaign? >> i run a campaign, but never put up a campaign. lots of product campaigns. i had great support. the republican national committee came in read i had jared kushner by me and he was my boss, and was great. we would bounce a lot of ideas off of each other. they are an amazing family. -- bestd the bed bought boss in the world. he was always leading the right direction. learned was how important it is to understand the data. i knew that going in now, and even more now to learn to ask

questions to those who have experience doing it. i've been doing a considerable amount of reading in scriptures going back 100 years. i've done everything i could to educate myself and this will be a much more grind it out, long-haul for me as campaign manager. believe the- i also president can finish by getting rid of the unfair bounce between china and the tariff problems if he continued to grow his economy with wages and increasing economies. as he continues to solve national security issues to make the world safer, i don't know if it will take a lot of work. it might be like starbucks on election day. millionou made 5.9 facebook ads. william make that more -- make that many this time around? >> we will have to see what the playing field is.

up and maybe wake they won't play fairly -- >> what you mean? >> maybe they want to make the api harder to do those things. right now facebook used to be that we could put an ad up in a few seconds, now it takes a couple days. it's hard to put up that many ads when you cannot use it automatically. i brought it up as one of my items i was frustrated with. i said this is a kind of change that is biased towards us. understanding how our technology works, you created a rule which made it more difficult for us to use that. that is a frustrating standpoint. we won't figure out a way to get it done. right now, we of the popular president -- he is more popular than election day. he is the most popular republican president in modern history. i think we will see a successful

trump and 2020. -- in 2020. emily: it's ironic that you are pressured with facebook when they played a key role in the election. >> i've been specific that facebook wanted in a lot of ways. facebook is the .1% that delivered his message. if facebook did not exist, he would be a lot tougher. facebook connected rural cities across the country and different types of backgrounds. it is doing exactly what it is designed to do, connect us all. i think facebook is also a liberal company, maybe it's management is not, but it has been based in a place that is extremely biased. northern california is not eastern kansas. their employees have bias.

this is in everything they do. they will have to swap that and try to kill that. i think facebook is trying to kill it. the question you're asking is whether or not they can crush that. i do not think they can. is significant and it is up to me to be a leader in our party and somebody running the campaign to make sure the companies are held accountable and that they do everything they can to kill the internal biases and provide an even playing field for the companies. emily: what about twitter? >> they did not contact me back from the letter we sent. i've spoken to mr. dorsey a couple of times. i feel the company is more squandered with bias. itself ise platform not useful with putting out press releases and for the press to figure out what is going on in the country. emily: and it is ironic that twitter is the president's megaphone. >> but it is not good for press

releases. trying to convince some of the on twitter is like going to a bar at 1:30 a.m. right when they turn the lights on and sell something to somebody. if you can do that, you can sell something on twitter. facebook is more like a church on sunday. emily: there is concern on facebook engagement and trusted social media, what are the platforms that will matter most in 2020? youtube from google will play a bigger role. to internet-based shows, the continued use of watching television content on tv, i'm sorry, on the internet is a significant change from tv. play a youtube will role, a larger role than 2016. emily: how so? >> where eyeballs go. ads so many place times. if you are watching facebook for four hours, and next year is

three hours of facebook and one hour of youtube, that changes. tohink youtube continues work on the platform and make improvements. while google has done to the search algorithm to what youtube at the top, they continue to put a lot of focus and understand the value of that platform. we are watching closely and using it for a lot of things now. we are probably using it more now than 2016. i think it will increase trend. emily: how will you divide your budget between digital tv and others? >> it is too early to make that decision. you never know. youtube could blow up. we are all watching youtube on her phone connected skyrocket. the day i had to make my budget decision and make it with the team is the day i will split that up. that might change hour-by-hour as well. i hope that google is paying attention to what facebook and twitter are doing. their ceos invest their time and

money, whereas markets like mark zuckerberg has been better at staying less bias in his own personal views. he has a view of what progressive america is, but he tries not to influence politics as much. there are people that try to directly influence it. i will be curious to see if they will walked on the bias of other companies and keep youtube as an equal playing field. aret now, conservatives already saying they have been shut out of youtube. videos of valued within their algorithm -- are valued within their algorithm. ofre is still a lot faith-based people and they believe in what that means. i hope google would not cut that out. emily: you have been accused of crossing the line, of suppressing the black folks. you hired in virginia litigant .- cambridge analytica

>> i have been accused of it or bloomberg said it? emily: bloomberg wrote a story that there were attempts to support -- suppress the black vote. >> and anonymous trump campaign official, right? no, that is something that we did not do. do we show negative ads? yes. do we suppress anyone's vote or intentions to do so? no. emily: you also hired cambridge .nd lyrica -- analytica was there anything that crossed the line? >> the way we used cambridge had nothing to do with what they did. they provided visualizations and they were mainly staffed. they had taken a lot of the quality staff from an operational standpoint from the governor walker's campaign.

i had to hire cambridge to do it. one thing that has never been accounted for is the $5 million that you see on the line is a tv via not the data by. the president's summit with president putin yesterday, does that cast a shadow over what you are trying to do? >> no. i think this is a successful president who's trying to make the world safer. i cannot speak about what the president is. i'm not in the white house and not pervy to all of that information. i think what the president is doing will be greater for 2020. emily: your leaders in your own party saying this is treasonous and disgraceful. >> know, we have rhinos within the party saying that. you'll long-term see, time after time he is showing he is right and making the world safer and economy better. i believe in him. emily: the president is taking vladimir putin at his word that russia did not meddle in the u.s. election.

he seems to believe the president of russia over the u.s. intelligence community. >> you'll have to ask them what he believes. emily: what do you believe? what isis not part of my job. you will have to ask him on that. emily: as you work towards reelection, you are meeting with the president a couple of times a week. how do you handle the special investigation? >> there is a legal team that sits and works on that. that is not my goal. shows thathe data this is not resonate with americans. very few people are connected with it. it has no effect on polling numbers and president trump's number says the nothing but increase. america sees it from this fake story on collusion. i continue to say there was zero collusion. it is such a joke, at least for my part in the campaign.

i think i played a major role so i know it is not part of it. say that anyue to come -- any government that is foreign and metals should be held accountable. emily: the trump campaign message aligned with very much what russia was also trying to disseminate. july 2016trump in saying russia, if you're listening, i hope you can find the 30,000 emails that's when missing. that is the very same day when the russians hacked into the system. did you see any evidence when you are doing what you are doing? anything that seems suspect? >> i don't have complete access to everything in the company. that is why we have intelligence. i will tell you, from everything i saw, there was no collusion and nothing we did with them. we ran a legitimate campaign and was the right thing -- we did everything the right way. we ran a complete legitimate

campaign. is unfortunate that some people did not like what happened. emily: are you worried that americans can be manipulated by foreign powers? does that concern you? >> i think americans are smart enough. i never believed that they will be manipulated in their thoughts. emily: do think voters will still track social media as if you use them again -- trust social media ads if use them again? >> i continue to think that using social media an advertisement for all businesses and political campaigns will be an important way for people to show trump and 2020. emily: going into the next couple of years will be a hard swap for you. what is one thing voters care about that is not being talked about in the mainstream conversation? >> i think the media has

-- is so infatuated with their conspiracy theory and they forget to notice the economy is getting better, world is getting safer. more people last month quit their jobs in the history of the united states. the reason why is because more opportunities than they have ever seen. people are waking up thinking life for the better, a better chance for them, better choices for the children. , in that continues to happen think trump wins in a landslide. if the president does not want to talk about it, it doesn't matter because people will wake up and feel it. had you deal with the unpredictable tweets and a president that seems that he cannot be controlled. or maybe he can be? >> i think there is one person that controls imperfectly. that is himself. as hisit is frustrating campaign manager? >> some days i wake up and say

why. but then i talked to him and say yeah. it, hee times i question continues to be right. i don't do that as much as early on. but, he has a heck of a high batting average. he made himself into a beautiful amily -- you made himself beautiful family, a wealthy man, a president of the united states, and i think he is solving the country's problems. if this style is the way that things get done and my children have a better opportunity, i will support it for the rest of my life. emily: on the back of the meeting, do you think he looks strong or weak? >> i think there is a small amount of the media that has a lot of power and likes to make the message the way they want to make it. they think they can control it with written word. emily: you are called the secret weapon in 2016, what will be the 2020 secret weapon? >> donald trump. emily: that is not a secret.

>> it will be because he will come up with something new. emily: will trump win in 2020 and by what margin? win think 2020, trump will that i won't predict the margin. emily: that was trump campaign manager. after the interview, president trump did receive from his -- retreat from his statements saying that russia did meddle in said ittion but then could be other people also. lots to discuss. we will go behind-the-scenes on some of these headlines you just heard with our very own bloomberg reporter covering it. this is bloomberg. ♪

emily: top republican lawmakers attacked one of the legal

most prized by social media companies. they're questioning whether google and facebook should be held liable for content posted by users. bob goodlatte asked the companies why they should be treated differently from hotels who face legal responsibility for you legal action on their property. the controversial role of social media in the presidential election is one of the issues we -- with trump's campaign manager worried for more reaction, i want to bring in one who is intimately familiar with the bid and wrote the book in 2016. that is steve bannon. josh is a reporter with bloomberg businessweek and, josh, i know you had been listening to the interview, anything about that surprise you given the events of the last 24 hours? josh: what you got to me was fascinating and that was the degree to which he seemed intent

on bully king -- bullying companies in silicon valley saying they are riddled with bias. he is essentially trying to appoint himself or trump as arbiters of whether or not they are actually biased. if you look forward over the next year between now and 2020. we will see a lot of pressure from republicans and the white house trying to get these tech companies to bend to their will. that was really interesting to me. emily: give us a sense of how tough this guy's job is given a president who perhaps cannot be controlled and to retreat from his statements and test down on them in the very same sentence. josh: it drives a lot of staffers crazy. but not his campaign manager. he is used to rolling with the punches. if you hear the praise he gives to trump, that is the way trump likes to operate. -- he is is somebody

somebody that best when he announced he was read running the campaign, that shows you how much faith trump has in his campaign manager and his ability to work and manipulate social media and the running of an organization when trump got in the white house. emily: he testified behind closed doors and he told us he is not been contacted by robert mueller. does that surprise you? josh: it does surprise you if only mueller has been so trumpgh in the range of people he has interviewed. on the other hand, maybe -- maybe mueller will still call him. think he wasn't involved in the section of collusion. in the meantime, the campaign

head is preparing to run his reelection campaign under a new set of rules. i think you heard him say in the interview that those are more difficult and, it sounded like to me, more frustrating for republicans to work through. that is partly because these companies like facebook and twitter and so on have been working so hard to get rid of the fake news and propaganda that really infected our electoral discourse last time around. fed.: yet the hand that josh, thank you for weighing in. analysis and reactions to amazon's primed a pickup. breaking records after glitches early on in the promotion. if you like bloomberg news, check us out on the radio. this is bloomberg. ♪

emily: much more coming up on

"bloomberg technology." we will talk about the open letter to elon musk. bloomberg tech is live streaming on twitter. check us out there. this is bloomberg. ♪

emily: welcome back to "bloomberg technology." shoppers are brushing aside that technical glitches that marred the opening of amazon prime day. sales in the first 10 hours grew faster pace that's lanier. amazon sold millions of devices on the electric voice platform. we have jump shot ceo joining us. they deliver the valuable platform. here with us in san francisco brad stone. brad, does it appear that amazon recovery?l >> it does. let me tell you the slow cooker.

to buy it five times the. i don't know what it does. i was told to buy it because it on sale. emily: i have one. i don't know how to use it. >> last night, the site went back up. i bought it. apparently my colleague many zonethat forfeitedabout -- $99 million in sales. they recovered. emily: would you agree a drop in bucket? >> yeah. these are compared to other big thingss, we do see happening. now,u look at the numbers early numbers, they clearly hit the record. track 100 billion devices and you're looking at

behavior. what did you see? how much did this glitch as far as ung tell hurt them? >> we didn't see that the give hurt them too much. we think they still have an incredibly strong start to the day. we've seen some really strong growth with some of the products they've got like own private label product. fire stick, amazon and lots of other products. about thed, what bright spot? >> the bright spot it's a big promotional day all around the world. whole foods into about the a effective showroom. but not only for amazon but prime. front and center, the amazon website and app are home grown products. but all of amazon's white label goods and home and beauty and furniture. everything else, it's look, turned july into one of

the busiest shopping days. emily: i did speak to amazon prime vice president about whole in particular. i asked july into can you get cs excited about chicken breasts and strawberries as you can on the insta pot. >> i said at the time this was our most important benefit launch. primethe adoption of members is for deals and early signs in lead up period to prime day has been truly phenomenal and very humbling. emily: how much do you think win from the whole foods side of things? room theylook at the havein whole foods, they 60 million plus. the fact that he mentioned it's the fastest benefit launched that they have seen. it's running ahead of internal target. scaleave a lot of room to that. it's just using some of these

promotions helps them. it i think will be longer term scaling their business while profitability. emily: darryn talk about the trend aside from this glitch. what product won? privatef those amazon label product. what our data shows about 88% of private label products are commodity products. that sells battery. there's still lot of room for them to grow. more brand conscious products like women's apparel and home furnishings. a strong focus on that. we've also seen some really strong non-amazon competitors making dent in that market. emily: brad, you wrote a book on amazon. you've seen the evolution of the relationship between amazon. of itsthink this pushing own product the batteries, baby

that going to alienate the merchants? >> i think amazon is aware of optics. press releasing trumpeting number of sales. amazon wins either way. is a brilliance of the model. they have their own private label products. this is the first place people shop. amazon increasingly as an advertising business where it profits in selling product third parties. they want to send a message that this rising tide. emily: do we have estimates how big this private label business is for amazon? >> we believe third it could co0 $40 billion by 2025 conservatively. if you look at the retail industry, for any retailer to

private label it's 13% to 20%. hits that target. with other retailers they struck a balance. amazon could replicate that decades. the last two that's the strategy from a margin perspective because these are higher margin products. they know what product categories they can push without the ecosystem. they'll be strategic about it. pushinghey're categories like apparel like furnishings. are those categories that amazon can do significantly better in? think it will be a slow start. you saw, they are lagging in that segment. but apparel, they've done pretty well. what you end up seeing once they few mainstream categories and once those hittinges start

saturation rates, they would othero move into these categories. it's not a choice. it's not an option. be a functionill of how they can do to profitably. devicesiven number of you guys are tracking. who's amazon's competition? >> back to the point you guys were making. there's some interesting category where is amazon is struggling. some analysis. 's.com sell michael koors brand. emily: amazon added four new including australia. >> these are countries, netherlands were the other three.

like at avenue. it's another way that they can enter these new markets. you so much.like at texas instruments has ousted the ceo over code of conduct. the violations are related to behavior that is not consistent with our ethics and value. not related to company strategy, report.ns or financial crutcherrer's predecessor will resume the role. netflix isfter disappointing result likely to be more scrutiny for big term firms. can the industry keep up bullish sentiment after outperforming this year? market ♪

emily: netflix is disappointing 2nd quarter report raised big investors tuesday. 14%.s itemly -- tumbled because of netflix's massive growth last year which showed no slowing down. overall big tech shrug off the news. hitting new record tuesday and looking at the bigger picture you can see from cap tech hasrge easily outperformed the s&p 500 years.last few do netflix's results signal that there should be more caution into the earning season?

michael, first of all should the rest of the investment community be concerned about oater big companies not living up to expectations over the next weeks?of >> we need to step back for a how important it's to the tech sector. about howds to care performances will be. to overn continuing weight tech for few years including this years for all sorts of reasons. if you look at the fang index, higher p.e. than it was back in late january before volatility erupted there. the stock price is not the index for the fang. it's not quite as overextended above working support as it was then. it's up there. i think -- regardless of what you might think about the

individual companies, it seems now for the earning season for the other guys that are going to be coming later week, really turns out perfectly. lot of caution is here. longer term, i would expect that any dip in amazon and facebook and google, will be pretty aggressively bought. emily: there's still a question netflix's subscribe is a a speed bump or is it part of longer term trend? >> it wasn't just the weakness in the second quarter. netflix was forecasting a decline in the second in third quarter numbers.r maybe the company is being conservative with its forecast with itsat happened second quarter. it's interesting that we were sort of two soft quarters in a row for netflix.

which makes a little bit harder to argue the blip scenario. had annow, michael, we analyst at bernstein saying priced fors are perfection. stocks don't react much to news.ental positive negative news has much more pronounced effect. we've seen stocks run up and up. even in the midst of volatility around facebook and controversy cambridge analytica. what should investors be accept call about? ofthere's a fair amount caution that's been coming with facebooky since the lateal e-- erupted back in march. if you look the ndx, that has a much stronger for the sb exports. ndxou look at the level of

volatility relative to vix it is in that top spread 10% and it's been that way for some time. playing this recovery from the facebook scandal that rally. they're going into it with a fair amount of protection. which i think is healthy and may we get overr dips the next few weeks out of are not quite as dramatic. emily: if you take a closer look at the numbers, evaluations are still credentially high -- incredibly high. a look at the ceo earlier television. >> netflix and tesla, my goodness, does any buyer of or decembe tesla look at evaluation ratios or the story? both cases they qualify as a bubble. guaranteebble doesn't they'll underperform long term. likely. it awfully

emily: are netflix and tesla in a bubble? two stocksse are based on theired s.aluation those three stocks are the exception. companies like andly, -- microsoft, google facebook, those companies have earnings and enormous earnings growth and earnings margins. some of the tech giants are really expensive. all of them. emily: you summarized here netflix as a religion. cracks in the foundation and now people are asking questions about it. expound on that. >> you put tesla and amazon in

that religion bucket too. stocks ande are investment stories that you believe or you don't. with those kinds of narratives if you have these points like an earnings miss, it called into question the entire belief of the faith system. emily: could this religion analogy be extended to other big cap tech stocks like facebook or like apple like alphabet? like amazon? all ofe's nuances within these religion type stories. if you look at facebook and amazon, facebook in particular, google, they have these -- awarded high growth positions there. certainly those positions sort of came into question back in march and april. seems to haveor faded pretty far from the landscape.

if you look at a tesla religion have theey don't demonstrated high margin, high earnings growth status. an exciting company product.citing a very large's difference there. it may look at the surface same sort of cultish fervour which supports those stocks. the defense of facebook's a fortress that .ill be hard to untangle emily: michael purves with company.d thank you. when we come back, what prompted all-star analyst penning open elon musk for bad

behavior? .

emily: in an open letter to elon musk well known wall street tesla ceo shaking investor confidence with concerning behavior over the last six months. he said, your behavior is unhealthy perception of your leadership. he join us on the phone now. back to the show. this letter?rite from investorsme who we talk to about the tesla that and they felt important that this message get out. believee supporters who in musk's visionary and leader and feel he has a great

opportunity. he is jeopardizing the opportunity. that's why we have decided to take this step so that the investors opinion can be heard. list a few different behaviors. you find concerning. more specifics. what it about elon musk's few weekver the last and months that concern you most? >> going on for about six months. started with outburst of analyst on now famous march 2018 earnings call. frustration was short sellers that's always a red flag when started with start to get debas with short sellers the broader media. this e-mail exchange a month ago -- it crossed the line with the message tweet earlier this week. at that point, it had got to a where it is jeopardizing some of the confidence in

investors. oft's an important part tesla's success is to have investors that are willing to continue to fund the company capital. it's a very capital intensive business. emily: that was a tweet disparaging a critical person in rescue operation of those young flooded cave in thailand. you want elon musk to apologize. want him to apologize for? >> i think it's really this last where the apology is necessary. out asally stood inappropriate. but the apology is a first step. thirds the second and step is taking maybe a sabbatical from twitter and also focusing his energy on their mission which is a great mission. is accelerating the globe and adoption in energy. lost.ission gets in his role, it's particularly tesla to date,se advertising.

potential consumers opinion of the company is being formulated engages with twitter. this is not healthy at point. emily: you're in an interesting position. need elonesla and you musk to engage with you. have you heard from musk, have tesla?rd from >> we have not heard from them. that he will read it. i'm not optimistic that we're get an apology. in other words, i'll be surprised if we get an apology. is going to slow down and i am willing to bet his behavior on twitter is going to change going forward. emily: how optimistic given you that what is happening in tent. how they are working to get production under way and meet targets that he has set out for tesla. many of which they have already

missed. do you think they can get it together and meet some of thee production goals before end of not?ear or is he too distracted? >> he's not too distracted. he -- that's the irony, by him tweeting this stuff out gives perception he's distracted. the company is making measurable progress that's 5000 a week number. that's probably wasn't tweeting this sustainable. really had to throw everything they had to get that across the line. will see a greater loss than expected for the june quarter because of the amount to spend. if you look at the production exiting thehe average production model 3 in about 650quarter was per week. we think it will be 4000 a week quarter.ptember we think they're making the appropriate progress there. is one step. them figuring out a more efficient way to build cars

profitable.ore i think lays the foundation for other models. theink they are making right progress. twee should musk stop tweeting? >> no. has a way to engage with customers through twitter. what needs to stop just ignore the shorts. you start to engage with the shorts. you will lose that battle. focus on the production side. anything out of bounds like we saw more recently, that's the needs to stop. wants about all he for example, the things they're production,rove the if it's focused on the right piece of advancing their mission. i think he needs to take a break. emily: gene munster on his open letter to elon musk. we'll be watching the tweets. that does it for this edition of

from sang technology" is bloomberg. ♪

>> the nasdaq hits new high thanks to recovery in tech. and amazon both shrugging off disappointing headline. >> investors welcomed upbeat message from the fed. to movell continue higher.y >> oil is on the slide after reports that u.s. stockpiles have expanded analyst were decline. a >> president trump backtracks from his controversial comments on