emily: i'm emily chang and this is "best of bloomberg technology ," where we bring you our top interviews from this week in tech. sixosoft takes over websites created by a group with ties to the russian government and plans to meddle in the midterm elections. plus, more manipulation on social media. facebook and twitter take down hundreds of accounts linked to russia and iran. as elon musk faces scrutiny from the sec, investors, and the public, is he the right person for the tesla ceo job?

first to our top story. microsoft says it thwarted an attempt by hackers to disrupt the u.s. midterm elections. the company's digital crimes unit shutdown six web domains meant to mimic sites victims might expect to get emails from or visit like "senate. group. -- weoup responsible spoke with brad smith about the situation. >> we are very confident that these six domains were set up and were put together to be used to harvest passwords by this group. is 2016. 84th time this is the 12th order we have maintained to address activities of this group, which we had believed understood very well. what we are seeing now is a pattern that in many respects is similar to what we saw in the united states in 2016 when certain campaigns and political

hearties were attacked. it is similar to the pattern we saw in france in 2017. when we really saw every major candidate for the french presidency targeted. we're seeing it again. emily: you got to these websites early and there is no evidence they were used to propagate any sort of attacks. if they had been successful, how do you think they would have contributed or could have treated to threats against the mocker c as you describe it? brad: you are right. we were -- we don't believe there were any other successful attacks in this instance, but what people attempt to do in this situation is set up an internet domain, using a name that looks very similar to the name people would expect to see. three of them had the word "senate" in them. , thead the letters iri acronym for the international republican institute. members of the senate might

start to receive emails. they would be told that there was a problem with their account, that they need to go to this website. they would go to the site and it would look like the senate site and they would be asked to enter there in elena password. off toat happens, it is the races, unfortunately, for these kinds of attacks because then the attackers will attempt to use that to access people's email, to download all their email, to access the broader networks on which sensitive documents might be stored. emily: one of the websites, the domain name was senate. group. has any of the activity you have aftertarted or ramped up the summit in helsinki between president trump and president putin? brad: i don't think we can connect this to any specific summit like helsinki or anything like that. it has morean see

generalized, as taking place in 2018 as we approach the midterm elections. i think it is also significant in this instance, as we have said, that this is a focus not just on democrats, but the iri, the international republican institute. the hudson institute. seeing a broadening to address these kinds of think tanks in both political parties, which is what was saw in france last year. emily: you are also announcing you are expanding microsoft's "defending democracy" program. security toiding campaigns, think tanks, political organizations. why is microsoft so active in this arena compared to other tech companies? brad: i think there are a number of tech companies doing more. at microsoft, we recognize we are in the business of ensuring the cybersecurity of our customers. many of these candidates and political parties and think takes -- tanks are our customers.

this newo provide with initiative, state-of-the-art, cybersecurity protection at no extra cost so they are on par with our most sophisticated enterprise customers. we want to do this because both these are our customers and i think we all have a responsibility to do more. emily: that was microsoft president brad smith. meantime, facebook and twitter said they removed hundreds of a aimed atm -- accounts manipulating global politics. this time, and other country has been implicated. that is iran. facebook shut down 152 pages, groups, and accounts that originated in iran and took down an undisclosed number linked to the russian military. described ceo facebook's finding in a call with reporters. mark: we believe these accounts were part of two separate sets of campaigns. first, a set of activity from

iran, including some with ties to state-owned media and second, a set of activities the u.s. government and others have publicly linked to russian military intelligence services. investigating some of these campaigns for months now, which highlights the tension we face in every investigation between removing bad actors quickly and improving our defenses over time. emily: we asked jordan robertson to weigh in. good signis is a these organizations, facebook and others, are taking active steps to eliminate these kinds of disinformation accounts. the fact iran is getting in on ,he disinformation game as well at least the election season, is obviously not a great sign. what it shows is we all continue to be vulnerable to disinformation on the web, especially on social media platforms like facebook.

organizations don't do these things because there is no value in them. it is a reminder that an election season, we all need to be vigilant about things that look suspicious online. they might deserve further scrutiny. any evidencere these campaigns were specifically designed to influence the u.s. midterm elections, or to just sow general disinformation? cristina: it is a good question. it is hard to tell, but probably little of both. jordan: this is still a election season, so whether these were designed to influence a particular congressional district one way or another, that remains to be seen. we have not seen that with the data but it seems apparent that election season is high tide for these organizations, these attacker groups to so their disinformation campaign because this is when people are paying attention to politics. this is when people are assessing their own views and

taking a political information. it makes perfect sense this would be the time for those attacks. emily: on this call with the press, mark zuckerberg took a similar refrain. security is an arms race. something you not never fully solved. our adversaries are sophisticated and well-funded, and we have to constantly keep but theg to stay ahead, shift we have made from reactive to proactive protection is a big change and it is going to make facebook safer for everyone over time. these facebook discovered pages acting on a tip from the cybersecurity firm and they bungled their response to russian meddling in the 2016 election. does it make you wonder, is china doing the too? could north korea be doing this? could the u.s. be using facebook to do similar things in other countries? jordan: your first point is, there is a great sign we are seeing a different facebook now regarding the issue of take news and disinformation, than we did

before 2016. a lot of executives dismissed the idea of fake news as being something that would be kind of irrelevant. we are seeing a different facebook. they are being proactive and promoting efforts. it is ultimately a good thing. but to your point, there is no reason to believe that other countries are not using the platform for the same purposes. facebook's perspective, this is a hard problem to solve, like russian examples from 2016 where they pretended to be black lives matter activist pages. their propaganda didn't look dissimilar from actual promotional materials from black lives matter events. the motivations were completely different, but it is very hard to distinguish between state-sponsored propaganda and legitimate activist content. it all depends on the aim. roberts.oomberg jordan after three years of searching, uber has announced a new cfo.

he is a longtime banking executive who weathered the 20 -- 2008 financial crisis. he will guide the company to a planned initial public offering lakes next year. over in september, finding an experienced financial executive became one of his top priorities. up, how social media company behind snapchat is hoping to regain success. if you like bloomberg news, check us out on the radio. listen on the bloomberg radio app, bloomberg.com, and in the u.s. on sirius xm. this is bloomberg. ♪ ♪

ride-hailingore's company grab is rolling out its very own advertising service. will be incorporated in its fleet of vehicles in 200 plus cities in southeast asia is where drivers and delivery partners can earn 10% in additional income. three categories will be provided, in car options,

billboard, and in app advertising. after a disastrous redesign, declining daily use coming -- use, and an inability to gain profit, snap is trying to rebound. quartersof the six since its ipo, snap has posted revenues that missed estimates. in that time, he has lost to replace it is heads of engineering, finance, hardware, legal, product, and sales. we talked to sarah frier, who spent time with the ceo for her newest piece in bloomberg businessweek. critiques ofd the his management style, including in bloomberg, where he has a dictatorial way of managingl he is a secret keeper, that he doesn't get everyone on the same page, he hates criticism and his response to that is, well, i understand why you would think that because you don't know me.

this is his attempt to say listen, i am a shy guy. i don't talk about what i do or like and i am trying to get better at that. he hired a management coach. these are the basics of running a company that has about 3000 employees now, just starting to really think about that in terms of snap. emily: to that point, it is not just about the perception of him from the outside, but his own employees. a prettyou, i had serious christian upbringing. growing up, i was taught to be a turtle. i remember thinking, why would i go around the company and chat people -- with people? now i go around the office and get a ton of emails. do you get a sense the mood or culture of the company itself is changing? sarah: the biggest thing that has changed in the culture may not he something evan did just thebut really

geographical physical space that snap employees are working in. they used to be in dozens of scattered buildings in beach town of venice where there was tension with neighbors, people didn't see each other, weren't allowed to visit each other, and now they are in this nice business park in santa monica with a same kind of free food and drinks you would get in silicon valley. it seems much more corporate. they have the monthly all hands meetings that you would get at another company. ways, it is getting a little better, but i talked to some former employees today who theyreading my story and said this is not going to change. evan is who he is. inly: you make a good point your story that with facebook and twitter battling fake news and misinformation, online harassment, this could have been snapped's moment to shine, but they haven't been able to take advantage. why not? sarah: evan thinks the core of

it is that snap has not communicated to the public how different they are from these other players. emily: isn't the product itself supposed to do that for them? sarah: yes, but the product is hard to use. they don't really advertise it. that one of those things its coolness comes from trying to figure it out and understanding where to swipe and learn toally communicate with it. that is why it is so popular with young people, but their parents are befuddled. polythorp toadded the board, one of the people they hope will help them tell the brand story. evan spiegel has been talking with his mentors on the board, a coach who has coached other managers through tough times, and he says he is committed to trying to make that point clear to the public.

so far, it hasn't quite worked. emily: i guess i wonder with snap users hitting a plateau, similar to what we have seen at twitter, is can they re-accelerate growth? sarah: the same thing we solved quicker, right? twitter -- with twitter, right? people thought it would be the next facebook and now they are would it be.o.k. more of a niche product. snap is trying to prove there is a hunger for the type of communication that is not permanent. of course, facebook has capitalized on that popularity and build snap functionality into its own product, which makes people even less likely to download the snap app. if they think they are getting the same thing from an instagram. the ads on snap. it is one of those problems where they have to put them in the media portion of the cap, -- are communicating

with friends. they have to make sure the users want to see stories from publishers. it is going to be a complicated road. emily: that was bloomberg's sarah frier. coming up, the former cisco ceo making a big bet on the cloud. joining the board of the data management company rubric. we will hear from him and the ceo next. ♪

emily: first lady melania trump told us -- a cyber bullying conference that social media could be used in positive ways or be destructive when used improperly. she was speaking at a conference attended by google, facebook, and twitter. she highlighted her "be best" campaign, saying it will focus on teaching the next generation to conduct themselves in a positive matter in a online setting. this as her husband has been

accused of using twitter to bully critics. rubric --data company to invest in the company and join the board. the former ceo of cisco launched his new venture at the start of this year to find the next generation of tech and has turned his focus to rubric. we caught up with chambers and rubric's ceo on where they go from here. >> whatever i do, i do with a replicate able playbook. 180 acquisitions. i ami look at startups, lucky to get my pick of the litter on a global basis -- basis. been very kind. i look at a market transition. business model change and the technology change. whook for a world class ceo is wicked smart. i look at customers who say this is the company want to invest in scale,they don't grow in

they can be a huge player in the industry. what rubric has is all of the above. it is at the center of the cloud evolution and how you are inundated with data, and you have the ability to get that from public and private clouds in a big way. the customer lists -- when you talk to the customers, they show how exciting and valuable the company is to them. when you ask them about it, they say this is my favorite play. in, iclass ceos i believe believe this will be one of the hot stocks of the next decade. i hope that it goes public and we will share with you why i think that. job creation, and i want to see more jobs created in this country. emily: taking on very established incumbents. what is the unmet opportunity here? >> as businesses grappling with the data and data growth around the world, and as the cloud is coming into the picture, everybody is looking at the

single platform that can span from one premises to the cloud and rubric was born in the cloud and where all the other companies we compete with were born before cloud. position to take advantage of the cloud opportunity. our growth in some ways is indexed to the growth of the cloud. and you look at the numbers. 5 million, 50 million, 150 million, over 300 million this year, 250 people eight months ago, 1200 today. it is a growth opportunity that will be really exciting. what makes this exciting for me, it is a platform for the future in data management. it is the next cisco or the next they'll or the next s.a.p. or the next oracle. emily: that is a very high recommendation. one of your services targets ransomware, the process by which hackers take control of a company's data and hold it for ransom. it has been a very difficult

problem for the industry to solve. we have seen high profile ransomware a tax in atlanta. the attack the crippled computers around the world. is it getting harder to stop this or easier, because now, they are becoming more high profile and it -- hackers are seeing the impact? >> hackers are finding new ways to attack so it is a cat and mouse game. this problem on the architectural level and asked if thatn build a architecture is impervious. system that hackers cannot get to and we are helping hospitals and law firms and a very large global businesses around the world to not detect ransomware through our radar platform as fast, but also mitigate problems through instant recovery across all applications. meantime, we're hearing new information from facebook and twitter about meddling attempt to the u.s. election. we are in the middle of a trade

war, having run one of the biggest enterprise companies in the world for two decades, what are your biggest concerns about the sort of state of the u.s. economy? u.s.rst come on the economy, it is stronger than most people realize. when you talk to citizens, their paychecks are going up. they know they've got a good job or can find another good job. the enterprise ceos are as bullish on the economy as i have seen them in a decade. emily: is trade war a good approach? john: well, no. trade war is an undesirable outcome but we do have to get a good trading position with our global pairs -- peers and for many years, china was a great win-win partner. over the last decade, that has developed to win-lose. but it is in everyone's best interest to solve that. when you look at countries like india who are growing gdp at 10% and relationship. that relationship's never been stronger.

i think this is more the new status quo. there will be always be uncertainties that occur at a faster pace. world-class companies will steer their way through that. big potentialre bumps in the future. president trump said today he thinks the stock market crash if he is impeached. it is hard to believe we are even talking about this, but we are. do you think there is any truth to that? the impeachment of a president, or even that kind of statement. is it scary when the president says such a thing? john: i coach the young ceos to handle the difficult questions, so that is yours. the answer is, the market does not like uncertainty. ishink what you have seen with a strong economy and getting gdp growth above 4% and full employment and people getting raises, it gets nervous when there is uncertainty. at i think that is the new norm. our country will always be able

to navigate through that and we are making changes on tax law that needed to be done. we are getting the average american to have a raise, which we haven't done before. my worry is something different. i think our nation is losing its innovation image. we used to be number one in innovation. we didn't even make bloomberg's top 10 innovation countries. we used to during the mid-1990's when we were generating 22.5 million jobs. companies00 come -- public each year. startups are almost at a 20 year low. i think we need to become the innovation country again. that is what i lose sleep over and why i want to see role models and our country getting back to being the best in startups and job creation. emily: that was john chambers, along with the ceo of rubric. versus the sec. how regulators could stand in the way of elon musk's take

private dream. and bloomberg technology is live, streaming on twitter. check us out on bloomberg technology and follow tictoc on twitter. this is bloomberg. ♪

taylor: -- ♪ emily: through elon musk's emotional interview, he made mention of his quick trip to spain for his brother's wedding. he even expressed having barely enough time to savor the moment, saying he arrived two hours before the ceremony and arrived at tesla immediately after. bloomberg pieced together the data. he took his kids to belfast so they could see the set of "game of thrones."

his relentless work ethic be defended? we spoke with the author of the best-selling elon musk biography. ashley: if you go back in history, and 2008 at was a crisis that was like now where the future of the company was uncertain, it is going towards breakup see, and elon is under as much pressure as he was back .hen he would give his employees a really hard time. he went after the press. he was not as famous back then. companies were not as successful so there was not as much attention on all this. this time around you have elon on twitter. this is the first time the public has seen all sides of him. have tesla being this huge

success and now there is a lot more pressure on him. it is kind of this public crucible that is very strange to witness. emily: there is also the level of untruthfulness that he seems to be walking right into, not only tweeting something that could have been untruthful that funding was secured when it appears it was not, saying he and out of his brother's wedding, when his tweet say he did not do just that. how concerning is that? ashlee: he has always been a fundamentally truthful guy but there are moments when he chooses his words carefully and you can interpret them different ways. he is getting caught and making things up. there was an interview on cbs where he talked about, i would never go on vacation while my workers are suffering like this, but on instagram he had these posts where he took his children .

emily: i am glad he is taking his kids on vacation. he should be able to sleep. ashlee: this guy definitely works harder than just about anyone. people are entitled to vacations. it is like, all of this stuff, why is he shooting himself in the foot? why would you say this when you know it is relatively easy to stitch things together? he has been under this pressure before but this time it seems to be too much or there is too much going on in his life and it is overwhelming him. emily: at the same time he was supposedly doing this quick dash in and out. they had the 5000 model three a week milestone so there is a question, how much does tesla need him to be there 24 plus hours a day? ashlee: it is hard for me to

separate tesla from elon and to imagine these two companies apart. it is hard to imagine them keeping up this pace and hitting these milestones without him being this figure. even though he is away for five days, the aura of elon continues .o goad over the company i am sure he is checking his emails and letting people have it from far away. i do not know if he has to -- i think he takes a lot on where he feels this personal responsibility to make the company succeed in this cross he has to bear. i do not know if he has to be there is much as he thinks he does, but i think the company would push itself as hard without him. trying totalked about hire a number two including sheryl sandberg. a looked a few times for number two and has never been able to find one. does he really want one? .shlee: i do not think so

even before cheryl and tony bates, the ceo of skype. tony fidel was brought in at 1.2 possibly be what he thought was andceo -- in at one point, possibly be what he thought was the ceo. that was 6, 7, 8 years ago. this has been going on forever. you get the feeling that elon is setting the bar incredibly high and has some sort of hangup about being able to turn over control. if you look at the president of spacex, she has been doing that for many years and it has worked great. mark and system, reliable company of the two. emily: that goes to show the value of a number two. , hehe end of the interview

talked about if you can find another coo who can do the job better than me, they can have it. would never believe that someone could do as good or better than him. he has gone through a lot of pr past. in the he has brought in the top people from all over the industry. people in the car industry and other people in highflying jobs, and he does the pr himself. emily: let's talk about his relationship with the board, because a number of members are also on spacex's board. does this board have any control over elon musk and will they call him on his mistakes, of which in the past couple of weeks it seems there have been a few, or does he just get to run free? ashlee: a probably gets to run a lot more free than most ceos. it is only recently that the ceo

-- the board has taken on some people that are considered more independent. the biggest chunk of the board are people who have been with elon since tesla was going to go bankrupt and get blown off the face of the earth. they put a lot more face -- faith in him than a lot of board members would because this company would not exist without elon. i think they give him an extraordinary amount of leeway. at this point, you have to say get off twitter, stay out of the press, stop doing these self-inflicted wounds. you have so much on your plate. let this other stuff go. emily: a huge part of your reporting was driven by former and current tesla employees. thisdo they think of all controversy along with the idea that their company could be going private, or he wants it to , which means they would lose their liquidity? from a the feeling i get

lot of former tesla employees is shock. --y have certainly see heart the scene hardcharging elon, flamboyant elon, but they think there is a different tenor to what is going on now. i think for them, and the bigger picture overall, he has put himself in a real difficult situation now after saying he is going to take the company private and setting all these wheels in motion. if this doesn't work out, if tesla cannot hit these manufacturing targets, the company is in a fair amount of peril. it would be sad to see it crumble. emily: if it does not work out, which most people have told us they think there is zero chance, what happens to elon musk? is he the right person to run this company? ashlee: i am sure a lot of people would argue no. i think the company could definitely benefit with somebody

who -- the biggest problem tesla has faced is this manufacturing problem. if you look at something like apple and have someone like tim cook. steve jobs was the visionary and tim cook nature all the factories were humming along, apple was doing good deals. tesla clearly needs someone of that caliber to come in and fix the machinery of the company, and e line can do his elon thing. tois impossible for me imagine tesla without him and for it to have anywhere near the same value or cachet or brands. .mily: bloomberg's ashlee vance one of the most anticipated --stions since musk tweeted funding secure -- what does the sec doing about this? there have been multiple reports of ongoing inquiries. for an insider's view, we spoke to theresa goody.

she served as an attorney for the sec. teresa: the inquiry is serious if they are issuing subpoenas, so there is a formal investigation in place. once there is a formal investigation, that is when you get the subpoenas. thethe sec is acting very swifty and quickly and pursuing this investigation full force ahead. secured?"

teresa: the funding secured thing, that you have funding secured when you do not as $420 per share offer price wassecured?" arbitrary, was not based on any kind of analysis, and it is better karma .or 2014 rather than 2019 that was problematic. additionally, what was alarming was thatthat interview elon musk does not seem to think he has done anything wrong and the sec will look at that as someone continuing to act in this reckless manner without any idea or concern about what he has done. emily: what penalties could musk himself face, as well as the company? as i understand, each violation or each false statement, to each

--son it is made could sound count as a separate infraction? teresa: every time he made a false statement, that is a separate violation. fraud carries with it civil penalties with the sec and potential criminal wrongdoing with the doj. you have the shareholder lawsuits here. another impact that this could have what the sec is if they bring an enforcement action against him and they settle, they could require admissions. admissions of gilt, which would have an effect in the shareholder and criminal suits as well. emily: can each person to whom it is made, does that include multiple different shareholders? is one statement one infraction, if you will? ashlee: the one statement would , but thefraction egregious nest and the impact of

it is based on all of the various shareholders who were injured. here you have a very dramatic harm, financial harm. swings with the share price. you have tons of money lost by the shorts, tons of money lost by those who bought shares thinking there was funding secured for taking this private, and it seems as though funding is far from secured. you have them losing money. there is each violation of the statements, but the collective financial, huge financial ramifications from this. emily: the subpoena demands information from each of the board's nine directors. could any of them be liable? teresa: indeed, they could, and the company could be liable. elon musk appears to have gone off on his personal way of doing this and saying all of these in his personal capacity, but also

he is the ceo. once he makes the statements, the board collectively has fiduciary duties. i was surprised i did not see them make a quick corrective disclosure as soon as these tweets came out, to clear up the confusion and chaos. they could have some liability there. the sec does not look at anything in a vacuum so it will be looking at everything, including these communications. what they were aware of this week before it happened or what was going on afterward if there was any intent, you can see if there was anything untoward whether there was some effort to have an impact on the stock price and there was an intent, whether or not they reacted reasonably and responsibly. board having the these responsibilities and acting on behalf of the company and could have liability itself, as well as elon musk.

the sec clayton of indicated that to him it is more important to go after the individual wrongdoer, but by no means do i think that excludes the possibility the sec could bring an action against the company as well as elon musk. emily: what could that mean for elon musk personally? jail time? teresa: it is possible, that is fraudibility, and with comes the possibility of jail time, as well as fines. fines are generally the means that the doj takes more often than jail time, but it is a possibility. emily: that was theresa goody. up, the u k-based fashionace for high-end far-fetched have confirmed plans to go public on the nyse. we will look at the year of tech ipos so far. this is bloomberg. ♪

♪ face aapple and google brewing revolt over the apps store text. too say they are charging much. netflix is one of the companies trying to bypass the app stores. it could put a dent in apple and google's profits. we are halfway through the year and we have seen a number of tech companies hit the public market. dropbox, spotify, making their debuts. number of tech ipos in the united states will return to levels not seen since the miniboom in 2013 and 2014. how well the rest of the year play out? jackie kelly and alex barinka weighed in. >> technology in particular has been exceedingly active, and we have been waiting for this to

come back here at last couple of quarters have been exciting. we are definitely seeing technology companies themselves and tech enabled businesses in general just really eager to get out. a lot of this is driven by the fact that we have been in such a strong economic market for a number of years, everybody wants to access this window. emily: will it continue? jackie: q4 and q1 will be busy markets for us. emily: this bull market has been going -- alex: this bull market has been going on for some time. why now? why are these companies deciding now is the time, when i think back to last year and the year when everyone was saying, it will be next year? jackie: valuations are higher and they are almost up to that again. i think folks are saying, what

is the chance this will happen again? i am hearing it from a lot of companies. they are watching their competitors and saying now is the time to move. -- people have said this economy has been so strong for so long .nd can it hang on i think there is a feeling of well the market be this good a year from now? i am not sure. emily: yet you say 2019 is the year of the unicorn. been talking, when are the unicorns coming? i believe in 2019. we will see a lot of unicorns, see who is ready to go. we work with a lot of those companies and they are really themselves. emily: themselves. emily: i want to talk about the dynamic in the financial market

and how that is affecting the .ipeline you did an interview with bill gurley and talked about how venture capitalists have given -- because of the competitiveness they have hesitated to put pressure on companies to go public at all. bill: hyper competition has made it so that the majority of biggest fears is missing out on the next investment. they are afraid to have a reputation as someone who asks too many question or pushes too hard. there is a situation where there is not a lot of stewardship for discipline and results and that kind of thing. emily: are we in that same state? the things a little bit like folks are coming to a reality check. i do not know if that is because the venture capitalists have made out so well. people are coming to the realization that that comfortable space going private, people are probably not pushing you to go public. dropbox was in last week and he told me he is really happy he went out. he is ok with the scrutiny.

that is a different message than the silicon valley groupthink was a few years ago. we have auber changing of the guard and who would've known if 2019 would be the year that travis kalanick would be in charge. what is the role that you see inture capitalists playing ink urging or hands-off approach? play anvestors significant role and men are encouraging their companies to look at whether they are ready to go public. especially those who have been in the deals for seven to 10 years, many of these unicorn companies are starting to reach that range. we do a number of things like ipo readiness assessment where we say, are you ready to operate like a public company? that functional readiness combined with, do you have a strong growth story, which obviously management and leadership on that, can you storye on a strong growth

and operate a predictable business? if those things are in alignment, yes, you are ready to go. emily: that was jackie kelly and alex story and barinka. coming up, we hear from an analyst who warns a slowdown is coming to apple next year. why? we will discuss. this is bloomberg. ♪

♪ emily: this week, apple was issued it's only celebrating on the street. and analyst downgraded apple from new stroke -- neutral, saying he believes the iphone x has been so successful he believes next year sales will be disappointed. >> what is going to be disappointed is the aftermath of how successful 2018 has been. our perspective is that the iphone x has been successful and well received. to such an extent that we think

between 10 million and 20 --lion consumers actually the refresh of the iphone because they were attracted by the iphone x. we have sold 65 million iphone x. we think -- when you fast-forward to 2019, what happens? just bought an iphone x and do not replace their phone every year. i'm not going to buy a phone. risk on significant expectations for 2019 in terms of iphone shipment units and also in terms of asp because the -- x is0 is high-priced high-priced. investors realized we are not done with the weakness in iphone demand.

we are in a transition where iphone users very much like their phone and use it every single day. they replace it less often. this transition happened in the market -- in the pc market the and 2019 -- 2015. it is a very long and tough headwind that weighs on iphone shipments. --s is something investors in 2008 because they did very well with the iphone x. that does it for this edition of "best of bloomberg technology." tune in each day 5:00 p.m. new .ork, 2:00 p.m. san francisco be sure to follow our global breaking news network on

twitter. this is bloomberg. ♪

♪ jackie: -- nejra: funding secured, two words that could spell trouble for elon musk. turmoil, concerned growth over you -- taxing crypto's, are they a property or are they a commodity? hedge funds want clarity. i am nejra cehic in london.