>> i'm emily chang in san francisco in this is bloomberg technology. getting tough on trade, apple suppliers may consider moving iphone production away from china if tariffs on u.s. imports rise. what is it mean for apple supply chain, and will other companies follow? plus, turn up the volume. pricing shares at the

bottom of its market range. how it will impact the global music industry. amazon backlash, employees in york have launched a new push to unionize is the tech giant attempts to gain support for its expansion. first to our top story, rising trade tensions between the u.s. and china have apple suppliers prepping for some unfavorable scenarios. that could mean moving production out of china if tariffs rise to 25%. remember, president trump the wall street journal that test could be let on smart phones and laptops made in china. let's welcome the managing nla,, what york and would this even look like? grexit this point it does not appear to be very likely. frankly we will probably get more clarity as we know how much

longer this administration is going to last and if there's indication that the next administration will continue these tariffs. these are scenarios that the company is weighing right now. our colleague that right now tariffs are around 10% on iphones. it does go into place, there is not much room for panic. of a 25%sions begin tariff on iphones exported from china to the united states, then there might be contingency plans going into effect. emily: does this mean apple views the tariff issue as more serious than we might have thought? dan: it's not just white knuckle for apple, but for investors. , trying toething make sure this doesn't heat up in terms of tariffs because apple is front and center in terms of a bull's-eye on its back. to mark's point, i think the

likelihood is very small. i think there is a better chance of men going to mars that apple factory out of china. nonetheless, this is a nerve-racking situation. and the stock reflects it. emily: tim cook has been to washington several times and has met with the president's daughter we would apple moved production out of china, let's talk about the scenarios. where would they move it? mark: i love dan saying it's more likely we will have a man on mars than have apple move its operation out of china. malaysia, thailand, vietnam, other countries have similar labor practices and the ability to keep costs down. i don't see a time where the iphone is produced locally in the united states, but i think there will be more of it wait and see. i think apple will try to wait this one out.

you see the stock price, this is a real issue and a real concern for investors. it is not real in practice yet, but it is clearly real to the market. emily: is it something that other companies could follow? mark: absolutely. we also see companies jumping ahead. gopro put out an announcement indicating they will start moving some production of their devices out of china. it clearly is having an impact industrywide. apple has enough money to wait it out, whereas a company like gopro which should probably go private if they are not required , they are in a tougher situation. the ban on iphones in china right now, the results of the dispute with qualcomm, how serious is that? dan: from everything we see on the ground in china from our context, it is the old version.

we see only about 10% of the phones in china are potentially impacted. global outcome is doubling down, trying to focus on forcing their hand in terms of apple. china is key to apples growth process. the last thing you need was some sort of further worries around china. that's why the investors are closely watching this. the last thing you want to see is a further dent in terms of china demand from this latest court issue. cfo being huawei detained in canada now been granted bail, and a diplomat going missing in china, how concerned are you about this having a broader impact? mark: apple has a bull's-eye on its back.

this sort of tit-for-tat retaliation, you look at u.s. technology companies, right now they are worried in terms of the supply chain. i don't see too many u.s. tech ceos running to book their fight to china over the next few weeks. next callp back, this at 30 or 60 days, we will see how this goes between u.s. and situation the huawei throws a wrench into it. you have seen it impact the stoxx and that has been a black loud over u.s. tech, specifically apple. emily: meantime we have the google ceo not ruling out plans to get back into china with its search engine even as a result of his testimony on capitol hill, you have numerous lawmakers calling for more tech regulation. are you concerned about the impact on the tech sector if congress takes a harder line on

big tech? went i think when we through the hearings with zuckerberg, that's where there was a big investor concern. it is still a risk, but right now it is more in the background in terms of regulatory risk. it is something that has been added to an overhang in the stoxx. you go back to last year or two, you never had regulatory risk and now that is being factored into the multiples. investors are keeping a close eyes on it in terms of what comes out. dan and mark, lots of stories we will continue to follow here. tencent music finally debuted on the new york stock exchange wednesday, china's largest music streaming service raise $1.1 billion. .t opted to lower its pricing

, host ofg in shery ahn bloomberg daybreak: asia. what is that mean about the optimism for this company? >> they raised $1.1 billion selling 82 million american shares at $13 apiece. of course the market sentiment right now is pretty weak, so that was one reason. but bloomberg intelligence also saying this is because there is really us optimism about the global music and streaming platforms, especially after the poor experience with spotify which is trading below its ipo price. this was one of the most anticipated ipos of the year, good news for tencent, which before the offering held about 59% of the company. also for spotify, which owned about 9%. significance the of a chinese company listing in the u.s. in the middle of an

essential trade war? >> that is the key question and something chinese companies will really have to look closely at. given that this year we have seen a lot of these chinese companies listing in the u.s., in fact chinese companies raising $8 billion from ipos in the u.s. this year, which is more than double the same time in 2017. we have a few big ones coming, , a cautious sentiment out there given the tepid performance of some of the a chinesepos like and thece platform, trade tensions going on between the u.s. and china. emily: shery ahn for us in new york, thanks for stopping by with that report. coming up, is now the right time for uber to make its public debut?

we will talk about that and the current climate for other startups with the president of the national venture capital association, next. this is bloomberg. ♪

emily: we've got new d -- details for what is expected to be one of the biggest ipos of 2019. uber could be valued at over of $120 billion. will the splashy ipo have an impact on private fundraising in public a views going forward? we have bobby franklin and jackie kelly. bobby, what do you make of the fact that uber and lift are going out at the same time and a

particularly volatile time? is it a good idea? it's ai don't know if good idea, but i think it is about time for uber. it is important that we have some successful ipos. venture backed companies need that help the ipo market. when you to find success when companies go there and these are clearly be companies. i would like to see changes in the ipo market so it welcoming to all entrepreneurs and to the 8000 companies that venture capitalists invested in last year. emily: what is the choreography going to be for these two companies, filing in the same week? are they going public on the same day? how does this work? jackie: it's a good question, and we are excited that a lot of the unicorns we've been waiting massivelyll be

choreograph. the most important thing is that the companies perform well to do want to see some of these hot companies have a great debut. emily: do you think they will perform well? jackie: these companies have been preparing for an ipo for a long time. we hear about it now and are excited, but any of our large unicorns have been preparing for years for this big event. and yet these are two companies that are still losing money. do you see greater efforts to become profitable before going out or create more sustainable businesses earlier on before they open their books to the public? i hope that is not the case, to be honest with you. i hope the markets are in a place where companies can go to the public markets sooner in their lifecycle.

we have seen such a lack of the withver the last year's the exception of biotech companies. i think it is important that there are half the number of publicly traded companies today then there were 10 or 20 years ago. if he don't get the public markets in the right place to see some more successful ipos coming to the public markets, we will not have an entrepreneurial ecosystem as healthy as it should be and could be. how long do you think the tech volatility is going to continue? the great thing is, we do recover. recovers faster than some other sectors. we have a group of peerless entrepreneurs in this space and

they don't look at the headwinds out there. goingy are thinking about public, they will charge ahead unless someone puts the brakes on them. they are still focused on ipos in 2019. emily: how are these impacting private fundraising among startups? bobby: there has been a lot of capital in the industry. obviously the economic conditions have helped that capital formation so it can be deployed into the entrepreneurial ecosystem. if you look at the u.s. compared to the rest of the globe, just 20 years ago, 91% of venture capital dollars went to u.s. startups. 10 years ago it was 81% and last year it was 54%. we know that capital is available around the globe. we know that markets dictate when capital becomes available. we need there to be a steady stream of capital so that all of

these entrepreneurs from all across this country as well as the globe have the opportunity to try to take risks and try new things and try to create successful enterprises. it is good for the economy and for jobs. emily: do you think we will see a lot of exits next year? jackie: the great news is when markets are firing on all cylinders, you can do both very well. there is no reason we cannot continue to see strong activity. i felt this was going to be the year of unicorns. we are already seeing this, the trends are happening. if we can get these unicorn companies out, it will help m&a markets overall. emily: is airbnb going to go next year? jackie: who knows, there are lots of opportunities. emily: but it comes to private

companies, we are seeing a lot raised outside of silicon valley. how optimistic are you that we will see silicon valley being created elsewhere? bobby: i do think you can re-create silicon valley in other places. i was down in atlanta a month ago and there's a lot of activity in the southeast. we have board members that are excited about that to be there. even my home state of arkansas has more activity. i was with a member of congress from arkansas left-sided he was bragging about what is happening in little rock, arkansas. there is a lot of optimism to be shared, and we hope that is what happens. emily: i'm curious what is happening in the banking community, interesting that uber chose morgan stanley and not goldman sachs. what do you make of that? jackie: there are a lot of really hot deals happening right now.

who is that being the lead on that is to be determined. you see multiple leads on the covers, that is still all being sorted out at this point. emily: we reported that morgan stanley is the lead. leade: you have a primary and sometimes a secondary or third. are you end up with a dozen or more banks behind the scenes. there are opportunities for everyone. everyone will get a piece of these deals. emily: thank you both for stopping by. coming up, the rise and fall of bitcoin has been quite a ride for investors and followers. according to google, most people still don't even understand what it coin is. we'll talk about the year to come, next. and follow tictoc on twitter. this is bloomberg.

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emily: bitcoins mesmerizing rise and fall has left regulators and investors asking what happened? and a more fundamental question, what is bitcoin? that was the most searched definition in 2018. bitcoin gained more mainstream recognition after searching 1400% in 2018 and falling 80%. huge make sense of it all is eric ervin. i'm curious how the rise and fall has impacted your company and what it means for demand. eric: we look at the market is

really a long-term play. iss entire asset class almost a venture asset class. you should be looking at a longer time horizon. we sat minimum of three years. because it is so inefficient and there are so many operational risks that are yet to be sought for, it creates a lot of opportunity for those investors who are willing to wade into the shallow end and start to invest in the asset class. it's nice because of the asymmetry and the potential reward, it is so much bigger than a small allocation. it presents a nice opportunity if you can do it in the right way. emily: i have a chart showing just how bad the year has been for bitcoin and other cryptocurrencies. i wonder how this is impacting your strategy. are you having any cuts as a result?

despite some investors jumping into the shallow end. eric: we are actually grown into this market. we think this is actually healthy. it really just takes us back to where we were in march or june of 2016. about 18 months ago. we had a big run-up and then a big low all and now we have real people in the space building technology, building those on ramps. that's what we're trying to do, build those on wreps. the systematic strategies we run for our own proprietary strategy, we have an alpha predator system. any short take positions. it is long or it goes to cash systematically. there are few markets where you can do that efficiently and gain those kinds of alpha on a market when it is down 70%. events -- presents a lot of opportunity.

we are seeing almost 40-50 basis points a day in pure crypto arbitrage across different exchanges. there's a lot of opportunity for investors who are a bit more sophisticated. emily: the market cap is about $400 million, which limits liquidity, and yet you are recommending it. why? eric: you stick with your core top sixs of those cryptocurrencies. then you start to play around with some of the other projects. there's a lot of really bright developers who have stayed with the ethereum classic chain. when you think about all these different chains, they are network. you want to go where all the developer talent is. there's a lot of developer talent on ethereum.

you can add it to the classic chain. it isn't underrepresented chain, it's a lot cheaper from a valuation perspective but it provides a lot of the same efficiencies that the is very him chain is doing, but ethereum is clogged up from scalability problems. emily: the sec has pushed its decision to the end of february. how optimistic are you about that? eric: they are not going to approve it in february. a bitcoin etf will get approved in 2019, but it won't be in the first half of the year. we will just have to wait and see on how that comes through. emily: eric ervin, thank you so much for joining us today. china's tech goal shifting, and is president trump the reason? we will, next. this is bloomberg. ♪

emily: this is "bloomberg technology." it is no secret that one of president trump's aims is to make sure china doesn't become the global -- global leader in tech. he may be getting his wish. china is considering delaying its black ship made in china 2025 initiative. robotics, aerospace, and renewable energy. china may be focusing on more industry strand -- industry standards. siegel, whats adam

is your interpretation of this? adam: i think we are likely to see a very temporary change of china's description of the policies and not a real change in actual policy. as you mentioned at the top, china wants to move up the value chain and wants to be a technology leader, and it is not easily going to give up those goals. emily: what does this actually mean? beijing is ahat master at rolling out plans. not always as good at executing them. and really good at saying they are suspending problematic regulations, often to have them creep back in in other forms. we have seen them time and time again. i don't see why this would be any different, we think that china's technological ambitions. why would they get off that course? emily: gary locke was on earlier today saying something similar.

take a listen to what he had to say. don't think the chinese back away from their overall plan of one to be world-class leaders. so much of what they use now comes almost exclusively from the united states. when the obama and even the trump administration has threatened to stop u.s. company from selling very sophisticated cell for corning glass or phones, it would have bankrupted a lot of these chinese companies. the message to the chinese is we need to double down on this policy of being more self-reliant on our own manufactured items. former u.s.locke, ambassador to china. what does this mean for trade tension? adam: i think it will be good in the short term. might dieconflict down in the markets might be happy in the short term but i

think we will have to revisit the issue that the u.s. government will be back at the table saying that china has not followed through on its promises. emily: new develops, that massive marriott hack has been traced that to china. it also led to the hack of insurance companies insecurity clearance files. how serious is it? samm: is not just commercial espionage, we are talking about accessing personal data that the chinese government could potentially used to identify and monitor individuals that are sensitive national security roles. i think this is a big deal. emily: give us some examples of how they might use this information. samm: travel information, say hypothetically you want to find out who travels with the president of the united states. you triangulate that with information about financial information, this could be used

to blackmail people or identify who is in positions they could compromise. emily: do you expect this would be just another data point that would rankle the white house? adam: i think it will. i think we will see new sanctions rolled out this week geared to chinese hackers that have been engaged in commercial secrets to help chinese companies. the issue on the hacking at marriott and anthem is even harder for the u.s. because those seem to be driven by national security concerns and counterintelligence reasons. the u.s. probably does similar types of hacks. that is more likely to see some restraint on the u.s. side. emily: we have the cfo of huawei being granted they'll in canada, but the chinese government very vocally unhappy with her arrest.

how does this impact the broader, tenuous situation between these two countries or now three? samm: the u.s. government is insisting it is separate, a law enforcement operation in parallel to negotiation's about the trade war. but in this political climate, you cannot separate them. buildingy theories are and if you think about the fact that this week we will get more announcements about indictments, we're looking at a situation where the u.s.-china relationship is potentially headed over a cliff. it's: would you agree that impossible to unwind this from the broader situation? impossiblenk it is an important is the perspective of beijing and hard-liners in china. they will see all of these

things is connected and has proved that the u.s. is working to prevent china's rise as a technology power. and they will see reasons to double down on self-reliance. in the relationship is only going to become more contentious as we move forward. >> what do you expect the reaction in china and beijing will be more broadly to backing down on some of these other things? we knew that the government was preparing for this. the chinese press was told to stop using the term made in china 2025. we can see the public reaction to the holding of the cao from huawei has been very nationalistic. it will be hard for the chinese government to be seen as backing down in the face of u.s. pressure. emily: so what is next, if you could guess? samm: we did see some

retaliation from the chinese government, focused on u.s. tech companies in china. and we might see some concrete measures to give u.s. firms more access in the china market, so let's not write that off entirely. this is an administration that wants a deal and clearly we have some leverage here. so let's not right off that entirely. emily: what kind of access are we talking about? letting facebook back into china , or allowing some companies to have a few more meetings on chinese turf? samm: we could be talking about lifting restrictions on specific sectors. but thee auto sector, chinese government has been talking for a long time about lifting the requirements on autos, so is that really making progress? it will play out in areas like standards.

is the chinese government willing to accept international standards to comply with domestic licensing requirements, for example? what about the cloud sector where there is a lack of reciprocity? these are hard issues that will take time. we need to see if they are showing a willingness to attack those issues beyond the rhetoric. emily: so many fascinating dynamics happening in parallel. thank you both. twitter ceo jack dorsey has responded to outrage over his series of tweets about myanmar. he's been called tone deaf and irresponsible. a trip to describing myanmar where you called the people full of joy, but the military are being accused of ethnic cleansing. dorsey responded to his critics

on twitter saying i am aware of the human rights atrocities and suffering in myanmar. i don't view visiting or talking with the people as an endorsement. i could have acknowledged that i don't know enough and need to learn more. up, responsible for backing some of the most , with two startups batches of investments in the year ahead. next.l discuss, and amazon's plans for new york headquarters are being met with increasing opposition. now some employees are pushing back with plans to unionize. this is bloomberg. ♪

emily: when it comes to success

in the start of world, one firm back some of the biggest success stories from airbnb to drop box to strike. ,hey have provided seed funding mentorship and education resources to over 1900 startups. 2018 coming to an end, they're gearing up for the next round of funding. continuityfocus on and you focus on more earlier stage. what are some of the trends you saw break out in 2018? >> the trends we saw and doubled down on were a lot of information and financial services. we are seeing more innovation on the digital banking side.

i think we will continue to see that. one of our portfolio companies is focused on payroll and is offering more services. trucking andit in ridesharing and scooters. a lot of capital went into these three categories in 2018. >> we talk about the obvious companies, but what is the next generation? seen a drop in radar. as well as we've seen a lot more hard tech become more accessible. a lot of companies are using that and they will be able to put in ai. some larger companies are going into try to build cashierless

stores. you could just walk in and buy your groceries and lee. some larger companies are doing that as well. we are seeing the next generation, we've heard about ai insurance.g ai for now we are seeing they are a store that uses computer vision and putting ai on top of that to figure out the trends that people are buying and such. those are some of the things we are seeing. next generation will continue to be global. you have also launched an operation in china. what exactly are you doing in china? we hired a microsoft executive and premier ai expert. we want to be accessible all around the world.

it's not just in one country alone. we decided to open up in china. of operationsot from international companies. we are seeing more applications from international companies. emily: i have been following you for a long time. 1900 startups, can you really provide that many startups support, like quality support? >> we take the badges and break them up into smaller groups. the partnership a bit larger, 33% are female. we go and help make the batch smaller and kind of the same as that was before, so you can get that of ice and attention that they need.

-- advice and attention that they need. you mentioned 33% of the partners are women. what about entrepreneurs? >> we all need to work on the numbers more. 12% were black and latino, but we are putting efforts into not just in terms of founders that are applying, but even before that. we have more than 10,000 aspiring founders. we want to get more female founders and people of color into the system. the best part is if we can help support founders from various backgrounds, i think we will see more. emily: traditional venture capital firms are raising massive amounts of money. you have softbank coming in.

does it change the strategy? does it mean more competition? is it isason i joined super focused on helping the founder at all stages of the company. you can come in with just an idea and we have a startup program for you. and we have an accelerator program for you. and a growth program of continuity as well. vcis much more than just a fund. it's a place for founders to learn and grow in their company. brown 11,000d a applications. there are a lot more founders globally starting companies because tech is no longer just about tech. emily: we have been talking about the backlash against big

tech in general, big visions, these promises to make the rolled a better place with these companies are also making money. continue,ect that to and will that trickle down? the founders that are starting companies are truly aspiring to solve a problem and hoping to make experiences better. as we talked about, tech is now entering many different industries. what i do notice is a change in the way founders are thinking. they do think about what will be the impact of the product or the andice multiple years long what sort of impact or they want to have in people's lives? if things work, we've had consumer companies that scale really quickly and it's hard to see exactly the impact were

having in the system. we are seeing founders pay more attention to that. emily: what is going to be big and not being in 2019? >> voice will be big. scooters, and financial services , and international companies coming to the u.s. will be a big trend. emily: we will keep our eyes on it. thank you so much for stopping by. still ahead, while amazon looks to drum up support for hq two, workers are pushing back with threats of unionization. employees described working conditions, next. this is bloomberg. ♪

emily: a group of employees at

amazon staten island fulfillment center have announced their intention to unionize. several in toys compared their treatment to robots, citing safety concerns, unreasonable hourly quotas and insufficient rakes, among other problems. this is the latest complication for amazon's hq to plan in new york city. amazon has hired lobbyists to drum up support. have joshuauss we covers workplace issues. what are these workers trying to change by unionizing? >> employees discuss production quotas that they say are unreasonable and ever-changing. one described it as a finish line it keeps moving for the amount of stuff they have to move. she said she is insulted by

these power hours the company has, where they try to get you to work even faster to win raffle tickets. emily: power hours? how does that work? >> the company says they have a positive culture where they have incentives that motivate people even more. but a woman i talked to said that she finds it condescending, that already workers are in physical pain from the amount they have to move their body each hour and these goals that keep changing, and to be told try to getower our, these raffle tickets, she said it is patronizing. emily: here's a quote from one of the workers, just beezus to see how we are being treated firsthand. we cannot come into work after only four hours of sleep and it be expected to be fully energized and ready to work. that is impossible.

all the company cares about is getting their product out to customers as quickly as humanly possible. what is amazon's reaction to this? josh: amazon says it has a positive workplace and it respects people's right to unionize or not, but that it refers a direct relationship with employees without a union. it came up again at a city council hearing where amazon officials said again that the company respects people's organizing rights. emily: how will this impact the hq2 situation? fresh challenge for amazon because there has already been serious opposition about potentialnd the billions of dollars in money that the company is getting from the government, and what the union these workers are working

the has told me is that mayor and governor are now responsible for protecting the workers that are stepping up to organize on being retaliated against. emily: amazon saying it maintains an open door policy. is there any expectation that j eff bezos might pay some of these workers a visit? josh: i'm not aware of any plans for him to come and visit but it --striking to see this coming forward by name and being public, joining people opposing amazon's effort to build the facility in queens and joining them in in saying look at all the problems we have already where we work. emily: how much can local governments do to help

unionization efforts? josh: in the private sector, labor law preempts and restricts some areas by making regulations that make it easier to unionize. however, there are loopholes where the local governments own money that is involved and that can say they have a proprietary interest. they have somewhat more leeway. emily: would it impact prices if they concede -- if they succeed? josh: it would be a huge transformation and one that unions would say would lead to more productivity and better policies in the workplace and people being able to buy more of the goods there. say it affects amazon's flexibility and could hurt the security of people's jobs if the company is not able to be as nimble because there is a union. attention fromwn

bernie sanders and elizabeth warren who say they may be illegal. emily: we will continue to follow the story. that doesn't for this edition of "bloomberg technology." we will see you back here tomorrow. ♪

announcer: the following is a paid presentation for new lifelock with norton. paid for by lifelock. >> look around, so many of us are on our phones or laptops, on public wi-fi, shopping online, filling out forms and applications. in the connected world we live in, our personal information is everywhere. we enter our names, birthdays, passwords, social security numbers all online. what happens if that information gets in the hands of identity thieves? jamie a.: i started getting