emily: hello, i am emily chang and this is "best of bloomberg technology." where we bring you all the top interviews from this week in tech. grip asp, apple loses the top earning company. microsoft took over apple in its spot. plus, facebook battles accusations of racism. we hear exclusively from the former employee who wrote a memo about being black at the social network. and it was the biggest shopping weekend of the year.

we will implacably the black friday cyber monday extravaganza brought for amazon. but first to the leave. -- to the lead. apple's stronghold on the world's most valuable publicly traded company is no more. during monday's trading microsoft's market capital took , the first spot for the first time in eight years. just this month, the iphone maker topping $1.1 trillion. the share price has been shaved in the broader tech selloff. amidst concerns about weak demand for the flagship iphone. bloomberg tech's mark gurman joins us. mark: it is pretty unbelievable. if a year or two ago if someone said that microsoft would pass apple in two years no one would believe that, especially in the current technology climate where a lot of people think that apple has an endless runway of growth. if you look at the past two months, there have been so many concerns and so many issues with apple in terms of iphone sales, concerns about the prices of the high-end iphones.

the 10 are, the tennis, and the , and 10s max. concerns about long-term initiatives. if the company missed on previous big things like tv and voice where it is not all too surprising. the question is will it turn around and when? emily: i have a chart showing the rise of apple as well as the fall in apple and the rise in microsoft. aside from what apple might be doing badly, what is microsoft doing well? mark: he has really turned the company around since taking over from steve ballmer a few years ago. the company has transitioned from a software company to a software and services company where they are trying to get clear applications on as many systems as possible. you can buy an ipod that is fully loaded with microsoft apps or an android device fully

loaded with microsoft apps. if you bought an android device or a microsoft surface even, you can not fill it up with apple services. that is the difference between the two companies. microsoft works on every platform, google does whereas apple is glued to its own hardware. microsoft is winning for itself on that approach. apple, for the last few years has been running on its approach. there is room for both but that is why microsoft has been so successful lately. in addition to their infrastructure around services and service. fascist servers. -- servers. emily: alphabet and amazon are not far behind them. do we see these four companies trading as a group? will it be unclear who has the title going forward? will we see the shifts going over and over again? mark: i think we will see this happening in the next several months or years.

these four companies will be vying for the top spot. emily: apple also facing an antitrust case in the supreme court which could have wide reaching implications for the entire tech industry. the class-action suit accuses apple for a monopoly. over at distribution on iphones. u.s. supreme court justices on monday appeared to allow the case to continue. i want to bring in greg stohr along with mark gurman. this wasn't good news for the stock either, greg, but what did the supreme court justices signal about their position on this apple case? greg: the general sense was that they were going to let the lawsuit against apple going forward. one vote on apple's side is chief justice john roberts, while as many as seven justices might be inclined to allow the lawsuit to go forward. that would be bad news for apple. obviously, it adds a source of

pressure on them to reduce the 30% commissions that they charge to app store developers. emily: walk us through the argument. apple takes a cut from the app store. we know that 30%. , it has been in contention before. what makes this particular lawsuit significant? mark: right now, apple is really pivoting towards wanting investors to focus on its services revenue. basically the services revenue, , the majority of it comes from the 30% cut. if apple takes any hit on the 30% because of the lawsuit, the ir services revenue will take a significant impact. that is why the lawsuit has so much at stake for apple. emily: greg, you were saying, talk to us more about what is behind this particular case. greg: this is a consumer lawsuit suing saying that we are paying too much for apps at the app store. the focus of the lawsuit are the

commissions that mark was talking about. what apple argues to this supreme court is whether consumers consume over commissions charged to developers rather than consumers. there is a supreme court precedent saying that only the direct purchasers of something can claim they were overcharged. emily: greg stohr in d.c. and mark gurman from los angeles. apple shares took another beating tuesday after president trump hinted that he might include iphones in the next round of tariffs with china. ceo tim cook went on a charm offensive, spending the day with ivanka trump. the trip provided an opportunity for extensive conversation with and keyident's daughter advisor just before donald trump was to hold a key meeting with the chinese president in argentina at the g20. >> you have to assume that everything out of china will be tariffed.

i think that on that assumption, you have to think about who has pricing power. if you look at apple and take for example the least expensive new iphone -- the 10r is 7.5% more expensive then the eight. i do think apple has pricing canr versus their peers better withstand the tariffs assuming the next round is everything coming out of china. >> let us put the potential impact aside, does the president mean it? >> absolutely. if you think about, to date, you have had multiple rounds of tariffs. one tariff in place today escalates from a 10% to a 25% tariff on january 1. at this point in time, you have to make the assumption that tariffs are real and that there is more to come. as far as what more can be

tariffed, you have to assume everything that coming out of china can be tariffs. >> tim cook is spending quality time with a ivanka trump. will that make an impact and how has the ministrations been with apple -- the administrations 'relationship been with apple? does tim have the currency with the administration to make an impact? mark: that is a great question. i think they do. in early september, apple said that two of their most valuable products, the air pods and the apple watch, would be impacted by the tariffs. on the first $200 billion worth of goods. a couple of days later, the trump administration out and said we are not going to allow tariffs. on the apple watch earlier pods anymore. now they are spending the day with the daughter the president. this will be a topic on the agenda besides the schools they're visiting. i think they had that sway power

with the trump administration. i believe they will discuss why this will be bad for apple. despite exporting goods from china, they are a u.s. company. >> tom, let us say that tim is not successful today making his case to the daughter of the president and we do see a 10% tariffs on iphones that have not previously been affected by the trade war. you talked a little bit about how apple could potentially mitigate the impact with the 10r, what about the 10s. the previous -- the premium priced phone that some analysts say is not doing as well as apple had hoped. >> investors are underestimating the ability of companies like apple to mitigate the risk of tariffs. the chinese government is actually devaluing its currency which will take some of the sting out of tariffs. and in some instances, the chinese government is subsidizing manufacturers who might be affected by it.

and apple suppliers are already moving their supply chain out of china. on a short-term basis, the big winner from a prolonged china-u.s. trade war is vietnam as many manufacturers are making products in vietnam rather than china. i do think apple and other companies that are heavily reliant on china for the supply chain have a lot of opportunities to mitigate risk from tariffs. as it pertains particularly to 10s, the good news is that they -- with a higher average selling prices they do not have to sell , as many units to bear the fruits from a financial standpoint. emily: tom forte, and mark gurman with brad stone. coming up, how one big tech investor is navigating big volatility for microsoft, apple, to tesla. if you like bloomberg news, check us out on the radio. this is bloomberg. ♪

emily: it has been a volatile time for tech stocks. facebook's top executives under scrutiny for the handling of russian election meddling and apple is in limbo. amid trade in tariff threats. ark investment ceo cathie wood talked about her outlook. cathie: apple, because analysts are focused on units and average selling prices, very simplistically, i think it has really reached a period of undervaluation. having come down this much since earnings. i think they have pushed the pricing envelope a little too much but i think their services business is becoming very interesting -- not just the app store but the way they are getting involved in health care and augmented reality. i think this will become more of a services model which is a more higher multiple or it will reach a higher valuation at the end of the day.

emily: there is still uncertainty about trade. how concerned are you about potential tariffs on the iphones? cathie: before i heard today that peter navarro was back on the invite list to go to argentina with president trump, i was much more optimistic. he is a saber rattler. i thought they were going to leave him out and let lighthizer and larry kudlow do the work behind the scenes. i think we are seeing movement from china. their own economy is slowing down so they are cutting taxes internally and import duties. at the end of the day, i think we will see at the conclusion of negotiations, perhaps not this weekend, lower tariffs throughout the world which i think will be a positive result long-term. emily: peter navarro, a trade advisor for president trump, what about microsoft?

do you see microsoft going on a longer bull run? with the rise of the cloud? cathie: i think microsoft has done a lot of things right in the cloud and gaming and i think it has earned its way back into good graces of investors, even though its based business, windows and so forth, that we see as having more technical problems. i do not think longer-term -- i do think apple will continue to lead the charge. it is going through a period of uncertainty because of short-term thinking about pricing and units. you have upwards of a billion users of our iphones and other apple products around the world and that is only growing year by year. we are excited about the long-term prospects for apple. emily: what about amazon?

this is a company that has faced verbal and twitter assaults from the president. now under fire from german regulators which we will talk about later in the show. do you think tariffs will have a big impact on amazon given the company's reliance on third parties? cathie: i don't think so. at the end of the day, amazon is all about customer first. delighting the customer. it is awfully hard for politicians to fight. when their electorates love a product. i feel the same way about apple. if we get temporary tariffs, i do believe they will be just that -- temporary. these are products that delight the consumer. these are people the politicians want to keep happy. emily: the wall street journal is reporting that the trump administration has set up a roundtable with tech executives including the ceos of microsoft, and google who is scheduled to

testify on capitol hill next week. do you think anything be promising can come out of a meeting like this that would impact an investment strategy? cathie: i think it is good that they are talking. much better that than arguing in the media. and i think that at the end of the day, president trump wants our innovative leaders to continue to dominate out there. we do see that china has on its set of priorities being number one in artificial intelligence and all kinds of technology and i think president trump is responding to that. i think we will be in a "how do we work together" mode versus an adversarial mode. emily: meantime, facebook is in the middle of a pr nightmare. mark zuckerberg and sheryl sandberg and how they handled russian election meddling, fake news.

fake news. do you think this will continue to punish the stock, given that we have not yet seen concrete evidence that this is impacting engagement among users? cathie: we got the first signs in the last quarterly report that it has impacted engagement slightly. not as much as many might have thought. we are also seeing that in terms of top brands, facebook is losing its status. when that happens, we usually do have a period of underperformance by the business and the stocks. thank goodness they have instagram, whatsapp messenger and other properties to monetize because we do think they will be continuing to lower the ad loads on facebook proper and trying to right to the ship. they have a little bit of work

to do. emily: ark investment ceo, cathie wood. coming up, our conversation with hp ceo antonio neri. will hbe get into the game or wait it out on the sidelines? that is next. and later, we hear from the former employee that claims facebook has a racist problem. -- a racism problem. it doesn't just impact workers, but black users of the social network as well. this is bloomberg. ♪

emily: to hpe's big bet on the so-called intelligence edge and antonio neri's commitment to make more data more useful to companies. this comes along with developing more tech with security and ai and machine learning. i caught up with him in madrid to ask about when he expected to see a return on the big investment. take a listen.

>> we believe the intelligent edge is the next frontier and a massive opportunity for us. and that is why i made the announcement in las vegas that we would invest $4 billion over the next few years. we will see a return in the next two years. this is a business growing fast. double digits. we will take the core platform and add the incremental capabilities needed to move to the intelligent edge. the connectivity will be expanded. we added analytics. and security. and now, we are announcing the the iot reality aspect of the platform. so that we can move from billions of things between people and places to trillions of things. that is the skill needed.

emily: a prime example is a biotech company that is using hpe computer power to essentially power genetic testing at scale. what does your speed make possible there that would otherwise not be? >> we are really proud to work with them. one of the startups in position medicine. tech impact 2030, a partnership with a world economic forum. in september, we announced a partnership with purdue university to improve culture, crops, and quantity of crops. we have a fantastic use skill here with crops. and we are focused on position medicine. -- precision medicine. it is all about improving the research on disease and the imitation of that disease. using our memory driven computer

actually saw 250% improvement in the use of data to understand the disease. emily: what do you mean by 250% improvement on the understanding of the data? >> it used to take days to get information from the data and now they can do it in seconds. that is remarkable. they want to make sure that they focus on the right to aspect of their research so they can pass the research to people who can provide the cures. today, it is all about time to value. it will improve time to cure over a long period of time. for us, it is bringing the technology to do good because we want to advance the way that we live and work. it is perfectly aligned to what we are really focused on. emily: we have seen a lot more consolidation in enterprise software this year but it seems like tech hardware players are staying on the sidelines.

old hp was quite acquisitive. what is your appetite for m&a? >> if it is the right assets with the right complementary ip and the right talent, we would m&a it. we want to stay true to the core of what we are designing and add that capability to the platform. customers like what we are doing. versus trying to consolidate or do a feed type of approach. we really focused on accelerating the denomination to ip and talent acquisition. emily: will we see more deals in general in tech hardware? in 2019? >> hard to say. valuations are high. that is my point of view. obviously we think there will be , more consolidation over time. but i think now that the last case has been set. what customers are looking for are ip solutions in blocks where they can accelerate time to

value through data. more and more of infrastructure has to become more optimized for specific workloads. where they all come together to deliver a specific outcome. that is why we have this unique vision called composability. cloud is not a destination but an experience. we need to compose that cloud to the specific workloads. ultimately all of the answers , have to come together in a way that they can deliver the solutions with the speed and agility that customers are looking for. emily: what do you think of a newly public dell? would need for the broader tech landscape, hpe aside? >> it opens the opportunities. disruption is accelerating at this time so speed matters. and control points and intellectual property matters. depending on what is happening in the market, we may see an acceleration of that.

valuation has to make sense. at this point in time, i think valuations are a little bit high and that is why we see some correction going on in the market. we will see. at this point, our focus is really on execution. and i think this year we have done a really good job, i'm really proud of our execution front. emily: my exclusive conversation with hpe ceo antonio neri. at a time when facebook is in the spotlight for leadership issues, a former employee raises says he never heard from mark zuckerberg or sheryl sandberg when he raised big concerns about race. we talked to him next. bloomberg tech is live on twitter. be sure to follow our global breaking network, tictoc on twitter. this is bloomberg. ♪ ♪ there's no place like home ♪

argh! i'm trying... ♪ yippiekiyay. ♪ mom. ♪

emily: welcome back to the "best of bloomberg technology." i'm emily chang. facebook is battling criticism on all fronts and now from a ex-worker that says the company has a racism problem. mark luckie wrote a lengthy internal memo about how difficult it is to be black and employed at the social company. he wrote facebook's disenfranchisement on the network mirrors determination against employees. racism at facebook is real. he says he expected some sort of reply but instead he got a private message from one of the highest level black employees at facebook. saying his experience may not be

representative and taking it personally. mark luckie joined us exclusively from atlanta to discuss. mark: to be black at facebook is really finding your community because you do not see a lot of people that look like you. the majority of facebook's population is white and asian, when you see other black employees, you look to them for support. that's how a lot of the conversations that were the start of this post came from. emily: now, you write in the memo that not only did you feel marginalized but you would walk by employees and at least two or three times a day, employees would hold their wallets or put their hands into their pockets. why did you decide to go public with these feelings? mark: there are so many employees going through the same thing. prior to the post going internal, i would have a conversation with a black employee every week at least saying i am going through this or having a tough time with diversity on my team.

i'm being called hostile or things like that. even if every black employee did not experience everything listed in the post, chances are they experienced at least a little bit of it. it was tough to walk through the facebook campus knowing this is a company that promotes inclusion and diversity though it was not reflected in my day-to-day experiences there. emily: facebook executives have had a lot to say about some of the other criticisms they have been getting recently about a delay, deny, deflect with respect to russian election meddling and leadership issues and more but they did not say anything to you? mark: they did not and that is uncharacteristic. usually, for something that is this conversational inside the company, there is some comment from mark or sheryl or somebody from that team to say, we are thinking about it at least. but a lot of black employees felt even more marginalized because they did not get the same treatment that other issues may have received.

emily: you did get a response from one of the highest ranking black employees at facebook that said to you -- i guess i am confused and pretty hurt because i voted for your hire and was inspired by you and that post seemed so out of character. he later tweeted that many have diverse experiences but your experience may not reflect that experience of others. what do you make of that response? mark: about a week before i handed in my resignation, an employee told me that the only black employee that was not their authentic self was him. there is a disparity between the people who are close to mark and his team and those on the ground level. i think it is disingenuous to say that this is just my experience and i am out there putting out information about a

the company that is not true. because i was so visible is why i decided to put this out. i did not want to be just another black employee that left the company and did not say anything. the day i put up the post internally, several employees came up to me saying they had handed their resignation in for the same reason. i'm doing it for them and i'm doing it for all these people. emily: facebook did respond. we got this -- we have been working diligently to increase the range of perspectives. among those who build our growth from the people working in many different functions across the company is a key driver to our ability to succeed. you point out that this is not xperiencet employees' e at facebook, you believe this extends to the experience of black users on facebook as well. how so? mark: there is a lack of cultural competency. inside of facebook.

because most of the people to work at facebook are white and asian they do not think about , the black experience which is a shame because black users are over performing on the platform. it is a missed opportunity and a missed financial opportunity for facebook to not engage with those users in a meaningful way and to make their experience on the platform much more difficult through it taking action and its inaction. emily: this had me recall the incident in 2016 where there were black live matter slogans written on a wall at facebook which employees had crossed out and had written "all lives matter." mark zuckerberg condemned that. you also worked at twitter. i'm curious how your experience at facebook compared your experience at twitter and whether it is more deep-seated then perhaps mark zuckerberg realizes? mark: there are posters all through their headquarters many of which claim that black lives matter.

they may matter but you are not seeing them as frequently inside of facebook headquarters. the biggest difference between twitter and facebook is the scale. twitter made a lot of changes in the last few years. a lot of improvements. the black employee resource group is active and engaging in the community. someone asked me if i leave, was this the only a problem at facebook and i answered no. but for facebook to claim that it is connecting communities and really supporting these groups -- what happens after they get hired. you have to think about being inclusive and not just hiring black employees. emily: what is your response to general leadership issues -- both zuckerberg and sandberg are under fire for how they are handling the russian investigation -- do you think they should continue to lead the company?

mark: i think it is up to others to decide whether they should be running the company. i think what is happening in tech is the leaders inside are thinking the best possible use cases for their technology and not thinking about the worst. that is where you see issues like the russian hacking and the fake news issues and the issue about the black people on its platform. it would behoove tech companies to think of how it could get into the hands of the wrong people. and how can we curve that before it goes to market? emily: as i understand it, you have quit tech and moved to atlanta and you are done with silicon valley for good. is that correct? mark: that is correct, unfortunately. emily: why? why can't an employee like you help silicon valley change? mark: i tried to affect as much change as possible. i had a great run at twitter. ultimately moved on because there was more than i could do

in the company would not have been of great place to do that. facebook, i was very determined to stay there as long as possible and i was going through issues with living in a mostly white neighborhood. issues with having my work curbed at every level. and so i said to myself, i cannot give up my social life and personal life, my health and my security to work for a company that is not supporting me and also not supporting a lot of people that work in diversity. they hire a lot of these people but they are efforts are being curtailed left and right. emily: former facebook employee mark luckie. pressure is rising on sheryl sandberg for her particular role in responding to russian meddling and more. bloomberg spoke to eight current and former employees from her side of the organization. some who now blame her for facebook's woes. they say it is time for her to -- they say at times sandberg are it is thrown brand over

facebook and treated issues as perception issues rather than getting to the root of problem. a senior analyst at pivotal research and brad stone joined us monday to discuss. >> i have to say that the nuances were really useful. anyone that has not read the article should. the bigger point around sandberg said that it does occur to me if she has been so constrained in her role because she does not have absolute control over facebook -- if she has any control, it is over her own self. that is what you focus on if you are never going to have complete autonomy over the whole company. i throw out two things -- while there is elevated criticism around sandberg right now, there was appropriately some elevated concern about her last year.

i think when facebook had a parliament misleads that is a problem. , when they are advertising products that are actively misleading their customers, that is a problem. when they are consistently having metrics issues, again, these are also under sandberg's responsibility. they're lots of things were she is appropriately going to be criticized on, but it is not clear where the responsibility ends with her versus zuckerberg and frankly, the bigger problem is maybe more foundational inside the whole company. from the ground up. emily: on that note, here is what zuckerberg told cnn about his partnership with sandberg and his intention to continue to work with her for many years. >> sheryl is an important part of the company and is leading a lot of the efforts to address the biggest issues we have. and she has been an important partner for me for 10 years. and i am really proud of the work that we have done together. and i hope that we work together for decades more to come.

emily: what do you make of that? that is an interesting point -- if you cannot control a lot of the company, the one thing you can control is yourself. >> it was a sign of support that he was making for her. clearly he does not want to , throw her under the bus. that relationship will continue. but i think brian's point is right she might be constrained , and that mark and sheryl need to work on their partnership. to make sure they are not addressing the messaging aspects of these crises were getting to the underlying problem. emily: would you like to see facebook bring in a third person? there is reporting that mark zuckerberg had been looking for a third person to handle the policy issues but ultimately decided not to do so. >> the idea that the person would report through sheryl sandberg. but i would throw this out, the big issue is a board level

issue. let's go back to the days of yahoo! and marissa mayer. for all of the criticism that she rightfully deserved, after about two years, this was no longer her fault. it was the board's fault. to be clear, the problem at facebook had been pretty obvious. if they are obvious to the president of the united states in 2016 who told zuckerberg that you have problems, they have had over two years at least but the problems that have been systemic. the board has to have been aware for quite a while. then the question becomes what do the independent directors do? they are the ones in the best position to get to the root of this problem and figure out what is best of the company. -- best for the company. the fact is, if the company is in fact entirely dependent on mark zuckerberg, that is not a company but a sole proprietorship.

emily: many of the board members predate sheryl sandberg and her proprietorship. joining the board as well. brian is alluding to another story about the u.k. parliament seeing the internal facebook documents as part of the investigation into the cambridge analytica scandal which is kind of huge that we are seeing another government take such extreme action. walk us through what happened. >> it's complicated. you have to go back four years when a company sued facebook saying it was favoring some app developers over others and that it was being inauthentic in how it communicated. that lawsuit was here in california. the company obtained internal facebook communications. fast forward to last week when the british parliament was very upset over zuckerberg's failure to testify in the u.k. so that the testimony was disingenuous. they went and got the founder of

app company, 643, and got him to turn over those internal it could be internal documents. -- got him to turn over those internal documents. it could be internal communications among executives about how facebook obtains information from who and whether they are being disingenuous in terms of privacy control and how it manages that information. it could be very damaging. emily: coming up, we head to bloomberg's conference when we talk to samsung's next president. what he has to say about the slowing global smartphone market. amazon saw its biggest shopping day in history cyber monday, topping its very own prime day. which category performed best? and the site's top sellers? this is bloomberg. ♪

emily: bloomberg's "the year

ahead" summit on wednesday brought together global ceos to tackle topics facing every executive in the coming year. everything from brexit to trade talks including the future of , technology. bloomberg tech's selina wang sat down with samsung's next president to talk about the coming year for the tech giant. she started talking about the transition from a hardware company to a software company. take a listen. >> there are designations that we all use to label companies. are they hardware companies or software companies? i believe in the future, we will not use these designations because companies will be successful or not and products will work or not. the most successful products will most likely have a software integration with the hardware and software but the challenge is if you think about hardware or media even, when you launch a product and you bring it to the marketplace, it has to be perfect. once you sell it in the store, once the tv show is on air, you cannot change it.

and the opposite is true of software. the model that most software companies live by is to launch early and iterate. you literally use your consumers to provide feedback. so you can improve the product. the challenge is if you come from a hardware background is really understanding how you can be more agile and use your customers for feedback to create products and experiences that work and on the software side, you may launch and you can iterate but you have to cross a , certain threshold of quality so that it works for people. this is why companies from both sides historically have not always been able to workiteratea together effectively. it is improving now. within this hardware company, we are trying to bring in people that have software and services expertise to inject that dna into the bloodstream so we can have the best of both. >> the software market is slowing and samsung and other

companies are trying to revitalize it. like with the foldable smartphone that samsung is coming out with. as chief innovation officer, how are you looking at the smartphone business in the future for samsung? what is your plan to reinvigorate growth and innovation there? >> one of the things about samsung is that while we have a very successful mobile business and we sell two tv's a second, we sell in any given year, 500 million displays of one type or another and for us, that is not separate businesses but a huge opportunity to connect the devices so they can create complementary experiences. as we think about iot and connected homes, as we think about the proliferation of ai, we use these displays as touch points where we can gather information and provide experiences that are chained together. for example, many people, for many people one of the biggest investment they will make is in

their home. and yet, when you leave your home, you have no idea what is going on, you have no or ability to communicate with it as an entity. not just our company but other companies are now giving consumers an opportunity to have a relationship or a dialogue with their homes and this is supported and will be sort of fortified by having cameras and sensors and everything from climate control and energy usage to lighting all connected. and so, when you talk about a specific device like a smart phone or a tv, they cannot just be seen as standalone devices but seen as a part of a portfolio of things that can give consumers a better experience. so when i am away from my home, i might be able to send a message to my family and it shows up on the display of the -- on our refrigerator.

or when i walk in front of the tv, the photos that i took over thanksgiving break can be easily shown on my tv or the tv of someone i care to share it with. as we think about the future of our businesses, it is not just a pure hardware business but we think about how we can create great experiences which is what i call the integration of software and hardware. >> how is samsung navigating the current trade tensions between the u.s. and china? is that impacting your investment strategy at all? >> i am not in the hardware business. i focus on working with startups, as i said. our belief is that while silicon valley is a fantastic source of innovation, for me it is almost more of a mentality, a way of thinking. innovation can be found everywhere. we have set up offices and done deals all over the globe and we will continue to do that. we want to be wherever the entrepreneurs are.

emily: that was the samsung president. bloomberg text selina wang. up next, amazon claims it was a record-breaking cyber monday for the online retailer. we will unpack the numbers. this is bloomberg. ♪

emily: cyber monday sales hit an all-time high this year and amazon was no exception to the record-breaking. tuesday, the retail giant said it had its biggest day ever with the most products ordered worldwide than any other day. the holiday weekend set a record for amazon as customers purchased millions more products this thanksgiving through cyber monday compared to the same period last year. customers worldwide bought more than 18 million toys and 13 million fashion items on black friday and cyber monday combined. bloomberg opinions shira ovide told brad stone she wasn't so convinced about the spin.

>> you can comfortably ignore everything that amazon says about holiday shopping trends this year and every year. the word "record" -- amazon used it seven times in its news release this morning about holiday sales over the thanksgiving weekend. the word "record" -- amazon used but of course, as is amazon's habit, there was no specificity around the numbers. is 18 million toys a record? a lot or a little? it is a record cyber monday for every retailer across the industry according to everyone. >> e-commerce is growing, it will naturally be a record but there was some stuff in here -- 20% sales more from small and medium-sized businesses. does that not count for anything? >> it is directionally useful. it is interesting to see what people are purchasing. often that reflects what amazon is heavily promoting or discounting.

it is interesting to note that they sold a lot of echoes and instant pots but it is not as revelatory as amazon suggests. >> i am always interested to see how amazon uses these moments to promote the things it cares about. the four-star stores. the ring devices for your home. the echo devices. these are the things that amazon wants to highlight and have people pay attention to during the holiday season. >> i was struck at how much amazon was promoting its own products. you saw a lot of deep discounts on echo devices and the ring, the home security company that amazon now owns. and as you said, there were some promotions for things like prime video releases and amazon's digital musical service and the four-star stores. in bookstores. it is interesting to see how amazon uses the holidays to promote itself. perhaps no big surprise. >> serving you a softball, amazon appears to have coined a

phrase -- the turkey five. i have not heard of this before. what is it and what do you make of it? >> i had not heard of it either so apparently turkey five refers to the five days between thanksgiving and cyber monday. i guess a frenzy of thanksgiving related deals and shopping. i have seen it somewhat catch on in the analyst community much to my chagrin. if you could see my eyes rolling this morning when i read "turkey five" it would be quite a sight. emily: that does it for this edition of the "best of bloomberg technology." next week, we hear his testimony beforewe are livestreaming on t. you can check us out @technology. and be sure to follow us on tictoc on twitter. this is bloomberg. ♪ before congress on the hill.

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sophia: coming on "bloomberg best," the stories that shaped the week in business around the world. the drama deepens on trade as presidents trump and xi prepare to meet at the g20 summit. >> trump wants to project an era of uncertainty in these discussions. >> which version of trump will show up remains to be seen. sophia: the eu signs off on the brexit plan, but that is just the first step for theresa may. the fed releases minutes and takes heat from the white house. >> powell is trying to create a little bit more wiggle room for the fed. >> the president is not happy with anyone who does not do what he wants to do.