♪ >> google bringing in dollars despite costly regulatory issues. plus, alphabet stocks are up to how the google parent earnings play into the broader tech momentum. andand one tech titan had a rouh

start this week, that is amazon. why? president trump once again taking aim at jeff bezos and his ownership of "the washington post your code details on that, later this hour. but first, to our top story. shares of alphabet dumped as much as 6.1% in late hours strong after reporting a second quarter. in the face of costly regulatory trouble in europe. alphabet reported second-quarter billion,t above $26 analysts were expecting about their ad business grew 24%. $25 billion. joining us to break it down, our research analyst colin colburn and also with us, bloomberg's romaine bostick. remain, let us start with the expert nation here. google released two different income numbers, including the $500 million fine from that european commission that they are a dealing, and one not. seem toestors to not

care, they were looking at the revenue growth, which seems strong. >> the revenue growth was strong. the eps was strong, even if you put back in the $5 billion fine. the company has shown it is still writing its own story, in the past quarter, you saw that not only in the revenue numbers but also in the ad spending, their cloud business, the components. this is what investors were looking for. i think they came in a hotter lot hotter than some folks expected, and you are seeing that reflected in the stock after hours per year. here. emily: colin, i just got off the phone with ruth porat, the ceo of alphabet. we talked about what was driving the earnings strength. she singled in on mobile. she says, we will focus on the ongoing strength in mobile, in particular, innovation. we will see improvements which can enhance growth across platforms and we will continue to invest and support growth opportunities we see. which is interesting given that

we are seeing cutbacks go up significantly again. i asked how long that could keep going on, she said, our view is to give you the outlook for growth. investment is supporting growth across the business. it is search and ads, it is the importance of new machine learning. we are looking for additional compute capacity given the outlook for growth. does the investment google is making across its platforms concern you, this rise in capex? >> no, it does not concern me at all. i think from an advertising perspective, it is a great thing. because, if you are an advertiser any have been investing with google for upwards of 15 years at this point, you want more innovation. and i think you have seen it, them taking some of their advertising technology and putting it together, so it is more easy for an advertiser to buy ads across youtube, across google search, across google's properties. so, more investment there is actually a good thing, i do not think it is something to be too

concerned about. emily: it is ironic, romain, e given the last week or so for alphabet and the possibility that with this european commission ruling, google could be forced to pay handset makers a lot of money to support their apps going on to these phones preinstalled and could force google to fundamentally change its business model. that's not something ruth porat would get into on our call. she directed all the questions about the fine and about cloud as well, test sundar per child, the ceo of google who is talking about the earnings as we speak. let us talk a little bit about the cloud. google is in third place right now behind microsoft and amazon, but it is also rapidly growing territory. how much do you think the cloud in particular could supercharge alphabet growth going forward? >> before this earnings season,

i talked to a couple of analysts , and one thing they were especially looking for, was not just expansion of the cloud revenue, but really to see more diversity out of alphabet's revenue. they were just completely reliant on the ad space. i think you are seeing that in these numbers. now are a few charts on the terminal that will make their way around, that show that in the past few quarters, add spending is dropping mildly but they are finding other ways to bring in more revenue and giving investors more to hang their hat on. i can tell you that a lot of investors sort of shrugged that off. not only because the dollar amount was not really that impactful for a company with the most 100 billion dollars in cash in their balance sheet, but also the fundamental changes are still esoteric and down the road. so what you saw was investors coming into this earnings season, fairly confident that they would get earnings beat. he saw that not only in the

shares -- there was a bit of a run-up in the shares, but when you look at the short interest in the google over the last couple of months, it has really dropped. the lowest it has been, since you have seen a lot more 2016. optimism on alphabet then you then you have seen in quite a while. emily: they also spent five minutes talking about artificial , helligence, sundar pichai has gone to great lengths to position google as a leader in ai. collin, what do you make of that? collin: they are. if you look at what they have done in the advertising business, if you look at all the companies they have ought up over the past few years, they are one of the leaders when it comes to ai. it will be interesting to see on the ad side, how they continue to evolve that artificial intelligence and bring it to the ad experience, to make better-relevant ads for consumers. for now paid search on google is , probably one of the more engaging, relevant forms of advertising that there is, but even more artificial

intelligence to be a what to understand the customer a bit better, to tune the advertising better, to a more personalized kind of ad, i think, is the future state of where they are trying to bring it. emily: also want to talk about the other line item, which, you know, overtime has been shrinking. they lost about $100 million more on other bets this quarter, but ruth porat told me it is historically lumpy. we're not talking so much about google's moonshot, aside from waymo. she went to great lengths to talk about how all of these other bets, waymo in particular, is one that she and they are most excited about. collin, how optimistic are you about waymo as a true contributor at some point to alphabet's overall business? collin: oh, man. a true contributor. it is broad language, but i think it is far off. you look at the breakdown today.

the advertising business -- it is google's entire business for the most part. and i think that it is going to take time. while waymo is in later stages, compared to other of competitors in that space, it will take some time for it to be a substantial part, or a big driver of their overall business. emily: all right, thank you. research, forrester colin colburn. sticking with me is romaine bostick. we will talk about the tech momentum and what is going on with alphabet. in the meantime, a vote of confidence in paypal. the hedge fund has taken an interest in the payment processor. in an investor letter of 10 by bloomberg, they say that shares could reach 100 $25 in 18 months, a 40% rise from where this talk is trading now. up next, alphabet is just for starters. -- 40% from where the stock is trading now. up next, alphabet is just for starters.

facebook, amazon, and twitter all report this week. of the faang stocks in focus, next. if you would like to check us out on the radio, listen to us in the u.s. on sirius xm. this is bloomberg. ♪

♪ emily: alphabet out with earnings and just to recap, this was a home run quarter for google. investors had been looking for alphabet to jumpstart momentum in faang stocks. remember, s&p tech heavyweights facebook, amazon, and twitter all post as well and netflix, which had a conservative forecast for the rest of the year, disappointing the market. with us to discuss the broader

outlook for faang stocks, we have our guest and in our office in new york, we have our market on markets reporter romaine bostick still here with us. does alphabet get any credit for driving the broader tech momentum, in spite of netflix's with last week? >> thanks that, emily. i think people are looking at alphabet as a bellwether, and rightfully so. the fact that the company delivered 26% organic revenue growth -- were company of the size, i think says a lot about alphabet and google, but also probably something about the broader environment from a spending perspective.

as strong as out for that's -- as alphabet's were, the stock is only up for percent in after-hours trading and what is interesting about that, if you look at the faang names, both alphabet and apple have been outperforming the s&p technology sector. not including the after-hours action. emily: do you concur? romaine: you look at apple and amazon, all of the faang stocks, they have underperformed the s&p 500, even the broader nasdaq. going into this earnings season, one thing you did not see was the type of run-up in shares we often get in some of these names. we did get a bit of a run-up in facebook. that was probably the most notable run, 2% over the last week, and there was about a 1% jump in google, but other names have really been treading water. i think folks are trying to decide whether this is a long-term growth story. i think a lot of that was

settled today with alphabet. we will see later this week with facebook and amazon. when you have stocks trading at or near all-time highs, when you have 30% earnings growth on some of these names, you have to wonder if we have reached a peak and whether investors want to stick around to find out if we are going to go down the other side. emily: i do have a chart that shows that alphabet's revenue growth, despite its strength, still trails facebook, amazon, and netflix and facebook, despite all of the controversy over the last several months -- scott, what do you read into this? scott: first of all, i just wanted to rfi that i was referring to year to date performance. we have seen netflix up 88%, up 55%, facebook up 19%, i think the broader tech sector and the s&p 500 is up 15%.

there is a disparity in performance among the faang names. last year we saw the tech sector up about 15-20%, and all of the faang names were up as well. one thing that people need to keep in mind, the performance has been more diverse this year aang names this year, compared to last year. emily, one thing you pointed out, the revenue growth. i think people were taken back and astounded that last week, microsoft put up 17% revenue growth and one of the things i pointed out, which is important to keep in mind for earnings season, particularly this week, will this be a peak for revenue growth for some of these names, whether it is for cyclical or secular reasons? that is important to keep in mind. how much better can it get for these companies --alphabet 26% revenue growth. how sustainable is that? i do not know that will be sustainable for the next couple of years, perhaps the next couple of quarters. emily: what about facebook?

you downgraded facebook from buy to hold. obviously, we know about the data scandals that they had been weathering, but yet, the stock has really shrugged that off. are you concerned about engagement, about user growth? >> you are right. we downgraded the stock after the tremendous snap back on the cambridge analytical revelations. that being said, we do have concerns about facebook. they include not just what is going to happen as a result of cambridge analytica and further scrutiny related to data and personal privacy, but also the notion that we think that the facebook life form is not a place for growth anymore. you think about messenger and instagram,n plans on you remember -- oculus vr? there are questions facebook needs to answer now. that may not happen now because instagram has been so successful, but even video on

facebook. we have been hearing about that growth driver from a monetization perspective for a couple of years, but i do not know that we have released in that -- which is a plus in terms of future opportunity -- that a negative, perhaps in terms of near-term execution. emily: meantime, romaine, we of have amazon coming up. we will talk momentarily about the president's ire toward jeff bezos and "the washington post." but, that aside, what do you -- we when it comes to saw fairly strong prime day earnings, amazon is expanding its tentacles and all of these new categories. romaine: amazon is one of the which are basically writing their own story. most investors view it not only as a company with a great deal of dominance, but it really can change things at will. when you take the political issues out there, it's a company

that a lot of folks see as able to grow at will. as long as it spends at well. it well. for now, investors are fine with that. amazon and a lot of these other faang names, they have become haven assets for investors who are worried about the political issues out there. they are turning to facebook, they are turning to amazon because at a minimum, these are companies that can weather the storm of geopolitics and trade issues, as long as they continue to spend and grow. emily: all right, romaine bostick, bloomberg markets, thank you so much, as well as director of the research scott , kessler, thank you. researchor of equity scott kessler, thank you. we will continue to cover all of these companies reporting throughout the week. speaking of amazon, coming up, president trump has resumed his public campaign against jeff bezos by calling his paper, "the washington post," and expensive

lobbyist for amazon. you are watching "bloomberg technology." be sure to wallow our global news network on tictoc on twitter. this is bloomberg. ♪

emily: bloomberg has learned the trump administration try to will try to revoke california's authority to regulate car emissions, including those affecting new-car sales. the proposed revamp would put the brakes on federal rules to boost fuel efficiency in the next decade, and instead, would cap left he will economy requirements at the 2020 level. we will look more into this later this speaking of president hour. trump, he is taking aim at two familiar targets in the u.s., amazon and "the washington post." both are controlled by the richest person in the world,

jeff bezos. the president says that "the post" is nothing more than an expensive lobbyist for amazon. he believes that he should be prosecuted for antitrust charges. with more from washington, bloomberg's been brodie who covers tech lobbying for us. then, can the president really have a negative impact on amazon here? that's a really good question. there are a lot of way amazon has a nexus with the government. it is pursuing government contracts. it obviously could have antitrust investigations, all kinds of things, the health care space aspirations. while trump can pressure the department of justice or the federal trade commission, they probably are guarding their independence, and anything that they would want to do, would take months, if not years, for them to put off. it's not even clear he can end their stock price for more than that she can dent their stock price for the morning. emily: is this about amazon or "the washington post"? reporter: this is about jeff

bezos, this is about the washington post, it is about a feud between two billionaires. amazon probably has very expensive lobbyists that can do better than the newspaper. but the president has not been shy about covering the company. emily: the exact to eat -- in my opinion, the post is nothing ad. than an expensive used ashould not protection against antitrust claims that many feel should be brought? should antitrust claims be brought? : there are a lot of critics. there is a group of activists who call themselves the hipster movement, and they have trained a lot of fire on amazon, they that they are using different parts of its business to subsidize auditory pricing; they

have said that its third party sellers who sell on the marketplace, that amazon is basically competing against them, raising major antitrust concerns. on the other side, you have a company that is broadly popular with consumers. it's not clear that a lot of consumers are harmed. it is not clear that there is another company and has the market share to be dominant in a way that the ftc in the doj -- and the doj would be looking into it. emily: how does amazon lobbying actually look like? and how does it compare to other tech companies? reporter: it's focus is on congress and the agencies. -- the lobbying that has probably or has in fact grown fastest in the last five or six years, and in many ways, it is probably the broadest in terms of other government agencies, that they are really going out there and talking to. we found out on friday that the company said it quarterly record for lobbying, so it is a very big force here it the district.

the other thing that you see is facebook setting records, when it was facing cambridge analytica, and then you see google, which of course reported today, spending more than either of those companies, almost what they are spending combined areas so it is fighting a fight, but there are a lot of companies that are literally spending millions of dollars to lobby every quarter. emily: there was a recent supreme court ruling that really fx amazon and all these other companies. what is the impact of that? reporter: that's a great question. that was another thinks trump was saying, amazon had lost the case -- "the washington post -- that was one of the things were saying, amazon lost the case, "the washington post" lost to the case. neither of them was really party to the case. amazon had been collecting tax ports of merchandise. the question is, what happens with the third party merchants of use amazon as a retail platform and now face new tax burdens? when you look at sales of its own merchandise, amazon was collecting the tax area at the

question is, what happens to these merchants we use amazon as a retail platform and now they are facing these tax burdens? will it be something else? will they go to amazon for compliance? the company survived when it started collecting those sales tax. what happens to the merchants? it is unclear. emily: all right, bloomberg's ben brodie. think you very much. we will be watching the president's tweets. coming up, google will be investing more in hiring people in emerging markets like indonesia and india. that is from the google ceo sunder pichai. here he is on growth in emerging markets in particular, take a listen. : the user growth there is extraordinary to see, and reverse the knit across all of our products. all the major products, products which have over a billion users each, they are all doing well in these markets. that is where most of the growth will come from. ♪ two, down and back up.

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emily: this is "bloomberg technology." i am emily chang in san francisco. back to our top story. amazon pretty much beating on all met -- alphabet pretty much beating on all metrics. shares are popping in after hours. google ceo sundar pichai speaking on the earnings call talk about emerging markets, ai, the cloud. he said, that is an inflection point, when commenting on the cloud. we now turn to our expert roundtable to dig in on some of these highlights. we have someone from bloomberg intelligence, and also from "bloomberg technology. we always want more information

about the cloud. but they so really give it. what do you think he means by saying that there was an inflection point? >> there are two things he mentioned. he talked about diversification. aret of companies now looking to not just partner with one cloud company, like have your own entire business on amazon, but also spread those bets that you make. so there is enough room for microsoft, google and amazon. diversification benefits all of them. when you put those things together, you're talking about a market that has grown it 35% compounded growth over the next five or six years. because the end market is really that big. sizing come at our up by 2025, we expect the market to be upwards of $350 billion. basically, there was a lot of room for three players. not everybody can compete in

this marketplace, and because of that and the diversification angle, we think there is enough for him for three players to face robust -- to post robust growth. inly: there are headwinds the eu, in the meantime they are a growing the $500 million fine area ruth porat, with the phone call with me, did not going to detail. r,e did talk about the gdp which of course, did come from europe. they believe that google could be benefiting from gdpr. she talked a lot about how the main thing she said -- you have a long history in it, we care about privacy and we have been working closely with publishers and advertisers to make sure that we get the right to talk about the measures have implemented, and other things they are working on. what do you make and become a the fact that some of these rules were designed to -- share

the wealth, if you will, but they have actually only concentrated the wealth? andy: i think you are right, i think more advertisers trust google, because a have been doing it for some time. so much the company is bigger, they know how to handle it much more than smaller companies would. so, i think you are right. it is the opposite of what people thought, privacy regulations will help advertisers put their business with google, and keep it there. because that they know that these privacy regulations will be followed properly. emily: we know that there are questions on the european ca commission five. sunder pichai addressed it on the phone call, take a listen. sunder: more advertisers trust google. we're looking forward to finding a solution that prisoners above all, the enormous benefits of android users and so on. so there is more work to be done. i think it will become clear as

we go along. but i am confident that we can find a way to make sure that android is available at scale to users everywhere. emily: so, do you think that google could be forced to change fundamentally, it's business model? can app makers start charging google appsinstall -- handset makers start charging google to preinstall their apps? how much could that hit the bottom line? jitendra: that is not a change in the business model. they do that today with apple aggressively. emily: they weren't contractually obligated, but now, because potentially charge google? jitendra: where the surprises on the call was the acquisition of cost growth was moderating. that was interesting to see the context of what he said about how we could think about solutions, of how to make android available globally. it increases, ther

volume growth itself is so strong, that it could offset that. we saw that in the last couple quarters. they printed 58% increase in paid clicks. that is after posting 59% last quarter. it tells you how this company is balancing demand and advertising with a lot of traffic seem toion costs, which be moderating. so it seems that they did give us a warning about the cost going up in the second half, and on the back of what is happening with the eu. i think we'll have to wait and see. but so far, it's teams like it will be long. andrew: can google's competitors in search take advantage of this? there's a lot of doubt whether they can right now. i think it is a long-term issue, more than a short-term issue for the bottom line. emily: he was even talking about emerging markets.

taking a specific look at what is going on in asia, what else are you seeing us ride the u.s.? jitendra: we see a lot of these lunches like taser in india. that is a long-term tale for revenue growth. seeing strong growth this quarter, and the contribution will continue. is what they are doing, making a foundation if you may, for the long-term revenue growth for these economies. those investments might actually's the debtor return on investment than we think, longer-term. emily: going into the break we were talking about all sundar pichai was doing into ai and -- to tout machine learning and ai at google, and whether or not google is really backing it up. andy, do you think they are? but i think it is a difficult thing to measure. andy: how does ai help their search? does it make it more targeted? how can we see it? i think it's very difficult to

measure, though they tout it all the time. jitendra: the competition cannot see how they are increasing the roi for advertisers. so basically, this call, every product they mentioned, -- they talked about machine learning, in conjunction with that product maps, ---- hardware's, basically what you will end up seeing is that the development of these searches, the return on investment that advertisers are getting, are increasing with the machine learning and the ongoing investments in every product category. that means longer-term high-margin sales? emily: we have a raft of earnings coming up, that tech stocks lifting on the back of alphabets earnings your yard andrew: i think you have spoken -- alphabets earnings. about: you spoke earlier facebook. the issues they have had, and

also, everything is looking at amazon to the if the moneymaking continues. they had a great time day. push investors continue to the stock price up and up? alphabet will have a record tomorrow again. amazon is setting records. i think that is another thing to watch for. itendra, what are you watching? jitendra: this has set the stage for facebook, amazon's advertising business to trend popular results. we look at the paid click number, which is a sign of demand, add demand is very strong. you see this in mobile advertising, it is expected to grow about 28%. so, the market share of these companies consistently growing, and limited impact so far from regulatory risk and things like that. you combine all of these, and you are set up for a baseline increase. emily: thank you both. lots to talk about this week. there was some disappointing news for iphone users?

s. the latest apple iphones trail samsung when it comes to download speeds. that's according to a survey. by a data firm. data breakdown indicated that the iphone x operated fastest on verizon's network, with average speeds of 31.5 megabits per the galaxy s9 plus, second. which is closest to the iphone x plus in terms of rise, was second on verizon. still ahead, los angeles has been making itself a name in tech. we will talk about silica and beach's growing tech team, coming up. plus, should investors be word? this is bloomberg. ♪ that should investors be worried? this is bloomberg. ♪

inder, the honest company, what do these companies have in common? well, they successfully launched their businesses in southern california. we have jimmy montgomery managing director of a leading la-based investment bank, and also finer of the montgomery often as theibed sxsw of l.a.. thank you so much, for joining us. what trends are you seeing in silicon silica an silica beach, if you will?

>> so, los angeles is the echo system that we consider southern california, there is a large engine nearing base there. we have leadership coming down from the bay area, sales and marketing, executive leadership. we've had some great companies come out, service now, crowd strikes, large companies -- media companies usually get more attention, but we are getting some great enterprise tech companies, so that may be surprising. emily: is there an advantage to funding or had quartering in l.a., as opposed to san francisco? the think you need best of both. it is so hard and expensive to retain talent, and there is a huge pool of talent that google is taking advantage of. to have a successful company, you need a foot in each camp. you can build engineering teams down there and retain the

engineers most likely. apt year, companies are always under attack for talent. emily: you have been doing this for a long time. i know ai is something you are interested in. what are some of the unique trends you are seeing in ai that we need to look out for? jimmy: the advantages of ai, they have massive data sets. they look at 18 billion incidents per day, they make 2.3 million decisions per second. we look at companies that have huge data sets and then they can trained their algorithms to run over that. you have three or four companies with massive data sets. you can argue whether microsoft or google had the better algorithms, but google had the bigger data sets. it is impossible to compete with. emily: it is controversial as well, because a lot of us are wondering, what kind of data do they have on me?

do i know about it? who are they giving it to? jamie: they have everything. emily: could that be a fundamental flaw for a company like facebook, which has had a lot of that trust undermined in the past few months? do you think people really care? jamie: i don't know if there is a price point put on it yet. people care at some price area you saw the hearings. it was a clown show. facebook is a great company and so is google. but there has been no price put on privacy. when there is a price, we will figure out what it is worth to people. emily: what other trends are you excited about? jamie: we are interest-rate in industry 4.0 -- industry 2020 -- emily: industry 4.0? jamie: the manufacturing sector is anywhere between 20% and 40% countries' gdp. that is an area technology has not really hit yet. information technology is starting to hit the manufacturing world through streamlined processes, improve

safety,ency, increased reduced cost, it is a massive area and it will be a long process of rolling this out, it will take about five or 10 years to really roll this out. companies like honeywell and ge, rockwell, and their supplier base. but that's a massive, massive industry that we are excited about, and we are building some good size companies there. emily: what about cars? we hear a lot about tesla, but incumbents,here are the gm's of the world who have been making cars for many, many years. but tesla has sort of become a market leader. can the established automakers catch up? jamie: yes, i think so. you talk about google earnings today on the news, i think you are buying a great company with google at this price, you will probably get waymo for free and the cloud for free. there is still a lot of optionality with google. emily: when i talked to ruth porat about that, she was very optimistic about waymo's

prospects, but analysts have no idea when it will actually be a revenue contributor. jamie: they have no idea. and look at baidu in china. it is the same thing. i talked to rob in the, and he , about when lee that will be come and he doesn't know, and he is the ceo. you just put a couple thousand dollars per car, multiplied by the number of cars, it is a huge market cap i think you are area i think you are getting that for free on the google side. some of the key components of automated vehicles, you see that manifest in the research coming out. coming out of companies down there. emily: you do the montgomery summit every year, you were doing's them it's like this before most people were. now, there is a lot of competition. what makes montgomery special? jamie: we are a moving target. we try to keep ahead of the competition.

this year, anderson, quantum computing, i think it is closer than people think. ai will be a big theme. this is the fourth year we have had our large women's conference, we had over 400 women there last year. emily: i like to hear that. jamie: i love competition, competition is good. we learn, we listen, we watch, we pounce on it. they also have a lot of fun down california, people love coming down for a couple of days. our guests stay, they interact, we were great with eric schmidt. he met with everybody he could. he saw evan spiegel at a local university. he spoke at a local university, so it is pretty typical. people staying gauged. engaged. emily: so it is good to see that you are still going. jamie montgomery, founder of the montgomery summit.

thank you so much for stopping by. jamie: thank you, thank you. emily: coming up, tesla is reportedly requesting cash back from suppliers? will this turn a profit, or hurt future operations? this is bloomberg. ♪

emily: tesla alarms investors yet again as a report surfaces that the company is trying to get refunds from suppliers. mondayhares fell on after the release of a memo showing that the company was requesting a return on a meaningful among of payments

from 2016. the report says that tesla called on all suppliers to help the company turn a profit. many doubt that the pace of 5000 model three's in one week can be sustained. here to discuss further, max chafkin from "bloomberg businessweek". worst of all, did they not think these emails would be linked to the press? max: you have to think that they were expecting this. tesla also confirmed to "the journal" something like this was going on and elon musk tweeted about it, basically clarifying some of the accounting issues around these potential refunds or rebates, or whatever. so yes, i think this was planned. it is part of their strategy to try to do everything they can together finances in order, get as many cars out the door, and get cash flow positive as soon as possible. emily: ok, but are investors

that to buy it, knowing this is how they got it done? max: it did not go super well today. the stock was down. it depends on your point of view, i guess. if you areone hand, an investor and you're concerned about their cash position, you could they, well, it is great. they are taking advantage of leverage. if you are running out of cash, you need more leverage in the negotiation, and they are getting a discount. but on the other hand, yes, it doesn't look sustainable. we have seen a lot of stuff out of tesla the last two months , from workers describing very long hours, elon musk describing very long hours, to the tents where they are making the car, now the supplier issue. we have a lot of stuff that feels kind of slapped together. that could be a bad thing from your point of view, or it could be just a sign from a company that is really doing everything they can to get it done. emily: we have a chart in my gtv library showing the tesla interests spiking and then fading.

is there an argument to be made that this is a good thing? max: that which is a good thing? emily: that tesla sending the emails, trying to get their money back, that that is a good thing? max: yes, i think the argument i said, theree are just doing everything they can. i also think, from the point of view of tesla, they are growing their customer base very rapidly. they have a lot more market power today than they did, say, in 2006. ago, back so, it is sensible to say, hey, you have to give us a better deal now, we are a bigger thing. what is a bit unusual is that the idea of retroactively asking for money, and it also does not look like a company that has its feet under it. emily: how might this impact their future plans, the model y, all the other plans may have the company? max: this is something i have

been thinking about, especially with respect to the layoffs they had, when they laid out about 9% of their staff -- if you are tong anything you can now look really good, it makes the future a lot harder to figure out tesla has done really well area tesla has done really well keeping people focused on the we have thisg, great new car, this new technology coming out, and it is harder to see how they will get outmodel y, the compact suv , as quickly as they would like to, or some of the other far out things. you start to wonder that investors stop looking at this as a company that is all about the future and more like a company that is managing itself quarter to quarter, which is not what elon musk wants or envisioned. emily: we will watch to see how these suppliers respond. max chafkin from "humbert businessweek"," thank you as always for weighing in on tesla. here is a wrap of alphabets

second-quarter revenue. shares rallied as much as 5% in late trading. business is firing on all cylinders despite concern about other tech companies like amazon and facebook. another major story this season is cloud, doing well for everyone. take a listen to the google ceo on the call talking about the club. sundar: i think all of the major players are definitely seeing traction. to me, typically when you look at enterprises, even once you deploy them, you have an architecture and you try to stay on it as long as you can. in many many cases, change is hard. but this is a case where the benefits are for clear and overtime, i think there is a tremendous cost to your business of being on the wrong architecture. emily: google ceo sundar pichai there weighing in on the back of amazon's strong earnings

results. we will have earnings all week, facebook, amazon and twitter. that does it for the show. i am emily chang. this is bloomberg. ♪ g. ♪ this isn't just any moving day.

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yousef: top story this morning. entering a new phase. asian stocks climb. tariffs.gainst u.s. boosting domestic demand. saudi aramco looks to wall street. lining up some of the biggest banks to raise money to deal the problem. out of a jump in late trading. shrugging off investor concerns about a kospi regulatory crackdown in europe.