emily: i'm emily chang in san francisco and this is "bloomberg technology." next hour, apple doubles down in the lone star state. the company will invest $1 billion to build a new campus in austin as it adds more jobs across the united states. lots, a retail revival? the industry has been struggling, but the ceo of old navy says data connection best collection could be. the key to luring customers back and could the secretive facebook's revival be paypal?

we speak to one analyst who says this is a match made in heaven. first, to the top story. the wall street journal reports told the president not to involved -- get involved in the arrest of the huawei cfo. joining us now is mark bergen who recently wrote about huawei's ambitions and outlook. we continue to get reaction from the chinese governments, including a chinese official op-edan op-ed in -- calling this a premeditated political action. tell us more. mark: canada has been a tough spot -- been in a tough spot. we see a lot of activity in social media like lots of anti-canada. the wall street journal reported

there is a lot of lack of clarity about what the administration is doing. trump wants to get more involved but this is a doj matter. i understand, with the u.s. tech companies, it is tense and there is a lot of concern about retaliation. emily: meanwhile, -- our: my sense was that reporting out of japan is that the company is a little turbulent. it's unclear what they will do. as is affecting the largest business, the networking side. there the second largest handset provider. that's the bulk of their revenue. it seems like they are at a large turning point in the company. secretive, ande, even in china, they are known to be more secretive than apple is here. it's hard to read the tea leaves. emily: the president has been told not to intervene. situationsifferent going on here between canada and

the china, the united states and china, the united states and canada. what is next? mark: the reporting i did was at the huawei headquarters and the company is trying to turn itself into nai company. this is where -- an ai company. they have a lot of companies like alibaba and tencent, and even american companies, strength has been hardware and equipment. these specialized chips are going to work for advanced artificial intelligence. they can process a lot of video surveillance footage. that is something the chinese government is going in with her huge plan to massively support the initiatives. emily: and part of the reason the united states has a security issue with this company. mark: the revenue split evenly. after money in china and half outside of it. we will see a shift where they will have to delisle domestic -- rely on domestic markets for

sales. they will lean on the smart city initiative or the cloud and ai, selling equipment to build out that. that's hard to see how large that market can grow. emily: we will continue to bring you every twist and turn in this hauwei story. mark bergen, thank you for joining us. one billionpend dollars to expand its operations in austin, texas. they will build a new campus big enough to house 15,000 more workers. also announced it will build facilities in seattle, san diego, and near l.a.. boulder colorado will be expanded. joining us to discuss his mark gurman. apple already has some operations in austin. why double down there? mark: this is interesting because in january, tim cook, the apple ceo, said the company would be opening a new headquarters and the new location.

he said it would not be in texas more california, but in a new place. this would be a big new initiative for the company as part of bringing their money back overseas. instead, they announced they are opening a new campus, new offices, not too far away from their existing campus which is their second largest office park in the united states. it's interesting they went back on that. it's possible this is a stopgap announcement, and the real new headquarters announcement is that the later time. emily: the company has said they're looking to expand in someplace completely brand-new. 15,000 employees of the lot of employees. compare how apple has rolled us rolledhow amazon it -- amazon rolled its plans out. mark: one similarity and difference. the difference is that apple did hold a beauty contest.

they didn't go to numerous cities and ask them to send them pitches. they didn't create a public process, they did not keep updating people on their progress like amazon did. is thatsimilarity here they both appeared in different directions, and they said they would. amazon pulled a small bait and switch moving from a major new campus to splitting its between new york and the virginia area. apple went back on its word on a putlocation and basically out an announcement regurgitating a bunch of expansions we already knew about plus an expansion for an existing campus in austin, texas. both feared off their original direction and changed course along the way. emily: even though it was not a public process, don't you imagine apple has private processes similar with each of these cities looking for a place where it could get a deal? mark: absolutely.

we know for a fact that north carolina, they were in talks with the city of raleigh for quite some time. officials were blindsided by the announcement this morning. they were surprised apple did there,ounce the campus and basically announced an expansion of an existing headquarters. lots of surprise on this all around. emily: how political is this move coming at this time in the middle of a trade war when there is a threat of tariffs on the iphone? mark: i think it is extraordinarily political. you've not seen apple be so open about where their campuses are, offices are across the united states. we've reported about many of them, but i believe this is the first time they touted the presence in miami, boulder, colorado, pittsburgh, seattle, culver city, here in l.a., all of these other offices they kept under wraps. people knew about them.

but, then putting those names in a press release and counting them with this coverage, i think it says a lot about the sort of cold war we have here with apple write in the middle of the tariff situation. cold war. mark gurman, as always, thank you so much are stopping by. coming up, while the uncertainty of brexit may impact to the u.k., venture capitalist spread the wealth over the country's tech sector. we talked to one partner about the future of european the sea next -- vc next. if you like bloomberg news, check us out on the radio. listen on the bloomberg app, bloomberg.com, and, in the u.s., sirius xm. this is bloomberg. ♪

emily: one day after surviving a no-confidence vote in parliament, theresa may met leaders at a summit in brussels. mabel try to convince you leaders to make concessions on the brexit deal that they have already agreed to. period of uncertainty, this continue to attract investment. over $2 billion was invested into the u.k. in the second quarter of this year. according to world port, that's more than a third of the $5.6 billion invested across europe as a whole. here to discuss is an et

ventures partner. they are a european venture fund -- fund. it's uncertain whether brexit will happen at all. how is uncertainty impacting the u.k.? >> was not forget that theresa may, like 99% of the tech sector, is a remainder at heart. she knows anything about makes it harder for everyone to do business. we all want her to win out this. second, london remains the biggest hub for european investment. remains still the strongest. the third thing is that europe and theresa may, and the tech sector want a responsible

brexit. many: so there are possible scenarios, but let's talk about two of the most extreme. break it happens, how does that impact the tech sector? does the rest of europe -- and the u.k.'sn loss has been europe's gain. ai has done really well over the past two and years. that will start to normalize. resolved,hat gets whether it is a soft or hard one, it is a good thing. if you talk to most people in the tech sector, they want it done as quickly as possible. emily: how do some u.k. tech while theyostpone wait to see what happens and if scenario two, brexit does not happen, either behind? alastair: they are behind.

lps have not been investing. european lps have had uncertainty and pulled out of the market. orther you are an investor -- well in theone returns they have lost. emily: how is this impacting your investment strategy at eq t? -- eqt? >> we've lived through many down terms. you look for great companies and they always get funding. it has made it harder, but it allows funds to operate across europe. emily: what are the up-and-coming silica and of europe that we should be watching? think will do you become the next top at in the midst of this uncertainty? alastair: london will probably remain number one for a while.

ai --with then you have unexpected sectors the ones people would not think is huge but they deployed venture -- more venture dollars than anyone else. the call of giving mobile -- gaming mobile. emily: we saw crackdown from london regulators on uber. do you think uber, a company that tried to break rules in a lot of different companies in the name of growth, can never recover? alastair: that's a great question. let's talk about europe and tech. people have a different view about what the european community think about tax. i think it is more about what europe does on legislating monopolies rather than anti-tech. there's a special situation with london.

companies like uber, but's cooper companies have learned to have to work hand-in-hand with regulators. not just in europe, but in cities here with the scooters got thrown off of the streets. emily: what trends should we be watching? alastair: we love health tech and femme tech. a hotbed for that with the way health is funded there. an amazing company that just got has an amazing way for women to control their health. one, ai and robotics. there has been lots of money going in. in 2019, all of that money invested will come into the daylight.

the emails and phone calls you get, the are to watch, the tv, and music you are listening to will & grace. emily: thank you so much -- will increase. emily: thank you so much. it is now one of the largest media companies in the world. we have that's next. this is bloomberg. ♪

emily: since buying scripts, discovery is bigger and better. the discovery ceo caught up with david westin in an exclusive interview, and talked about how the deal has the size and scope to complete globally. >> we are trying to play in a space that others are not playing. when we pulled the scripts into discovery, we the game the

second tv company behind nbc universal in terms of reach across television and audience. we have great brands that people love. we had it at discovery and the scripts added. when you put it together, we create the top channels in id, own.or food, hg, discover is the number one channel in america for men. did our channels, they are a younity networks -- when look in our channels, they are a affinity networks. it becomes a home for them. so in the nonfiction area of the u.s., we own most of the great brands. we are fighting to even make them better. we are competing, if you want to call it to that.

we create an ecosystem on the tv set, but we are difference when it comes to direct consumer. whether it's the hbo, showtime, , or what bob iger is looking to do with his great deal he did with fox in aggregating. all of that side is scripted movies and series. there are lots of consumers around the world and domestically that have a choice of 4, 5, 6 places to go to get scripted movies and series. a lot of the movies are appearing on those platforms. if you want something else, that is us. we have natural history, globally. animal planet, science, food,

home. with this deal we did with golf, we own the pga tour. we are in business outside of the u.s.. we announce we did a deal with the european tour which includes and a bunch of markets in asia. two weeks ago, we announced tiger woods. >> i saw that on social media. >> it got the most like i've ever had. the strategy is the same. ,ad we do business we are doing which is still a growth business for us where we have all of these channels airing cable around the world, and had we take that ip we own and get above the globe? david there, the discovery ceo with david westin. fashion retailer, gap, has been struggling.

in the gapot portfolio is old navy. emma chandra set down with the old navy ceo who talk about how data and technology is driving growth. >> it's a fun time to be in retail. old navy is in its seventh year of great sales growth, so we feel optimism about this year and holiday. involves, staying true to who we are which is all about fashion, fun, family, and value. and at the same time, changing in this digital age. that is what we are excited about and driving our growth. >> how much has technology change what you're doing at old navy? >> we have had an awakening over the last few years on data. it started by focusing on customer data. we have over 800 million vantage points per year. it's an enormous amount of

information. as we pay more attention to that, we find many of the solutions that we are bringing to the market come from our customer insights. for example, this year, we rolled out by online and pick up in store. we rolled out mobile selling in our store. lofi funcoupled with like coloring tables for the kids. all of those insights come from gator -- greater access to data. >> so this is feeding into a tangible business. is, we gained confidence around that because customers are saying, we love our brand health is at an all-time high. our products are at a 4.75 rating. we have been hearing this and been responding. >> how does that play with the drive to being able to serve a

customer online as well? it's a ubiquitous relationship between online and its stores. the customer will start online in the morning, shop our site, and then come into the store to perhaps try on. we have focused on both channels. older important. we have been in the e-commerce selling space for 20 years now. which is a long time for the value sector. we have a leading advantage there, and our digital growth has been phenomenal. we just finished black friday, cyber monday, and some of the off the charts in terms of sales we deliver to our digital channel. wax tell us more about black friday to cyber monday and the fact we're in the middle of the holiday such an -- shopping season. yous a going so far for

? >> we are happy with our black friday through cyber results. it is the six-day period between thanks giving on thursday to cyber tuesday. we saw double the amount of sales on our global site, the mobile transactions really driving the growth. we saw our by online, pick up in onre at an all-time high monday. all of this was driven through some amazing products. we are really winning with differentiated products in -- cleats,leets and jeans. we sold over 4 million cozy stocks, which was super fun. that's like 2000 stocks per minute or something like that. >> that's a lot of socks. >> that's a lot of socks. >> with that kind of deal, that and online?

>> exactly. our customers loved it and we had a great black friday. emily: that the old navy ceo there with emma chandra. coming up, more bloomberg tech. we will talk about amazon hq to come in next -- hq two, next. ♪

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free shipping too. just go to buyleesa.com today. you need this bed. emily: this is "bloomberg technology." they ando facebook, paypal could be a match made in heaven when it comes to online commerce. they first teamed up in 2016 to offer payments through the facebook and messenger apps, but they should now take the partnership deeper. a note was published saying they need each other more than ever as facebook looks to monetize more areas of its business. joining me is lisa ellis. facebook is in a world of controversy. how could paypal help them?

lisa: this book looks to change its narrative from the controversy around privacy and revenues. one area for expansion is expanding into online commerce, and that's where paypal can really help play a role. facebook has this extraordinary user base, 2.6 billion users globally, with many avenues where they could potentially drive e-commerce over their platform but haven't to date. shows i have a chart that the two stocks diverging, and this yellow line here in the middle shows where facebook missed on earnings over the summer. give us more specifics about how you think facebook should be filed this partnership. lisa: we have identified three areas in particular. number one, paypal could power

payments to start to drive more commerce through the whatsapp that form similar to the chinese competitor. the second is in facebook marketplaces which is currently more of a craigslist style marketplace, that they could turn that into an e-commerce platform with paypal powering the platform, similar to what they did with ebay. commercecontextual through instagram. paypal already has some success elsewhere helping drive commerce directly in the middle of social media and you could do a similar thing in the instagram environment where there is a lot of identification of new niche brands, etc. you make of the divergence in the stock performance of these two companies? continuing tos put up very strong, 20% plus

earnings growth, quarter in an quarter out. i know facebook has been struggling, they missed and they have been struggling from slowing growth in their core ad business. are there any other payment companies that facebook should be looking to integrate more tightly with? competitor,ose the particularly around the instagram idea is strike. strike provides some projected functionality for facebook and instagram today. alternatively, when you're looking at the facebook marketplace concept, the hot european e-commerce payments company would also be an alternative. what one away a portion of the ebay business. emily: the overall promise of

social commerce has not really delivered. buts working on instagram you see other companies like tencent in china where social commerce is a thing, but it hasn't taken off in the united states among u.s. based social networks. when do you think that will happen? lisa: you are right, it is still coming. we are seeing pieces of it start to come. a big difference in the chinese while it, you can conduct a lot of your day today commerce, like hailing a taxi or ordering takeout right through that social media platform. that is often what drives the bigger ticket purchases and that's what we are trying to see flip. for example, paypal and facebook have experimented with that capability in facebook messenger

, but you are right, it hasn't quite gotten the full adoption yet, but it is coming. paypal is focused on monetizing their been mode platform -- ven mo platform. just day-to-day activities. emily: lisa ellis, thank you so much for stopping by. told employees at its seattle headquarters they won't need to move to the company's new bases in new york or virginia, according to the wall street journal. the search for hq2 and the pushback have dominated the headlines. join me is heather redman at flying fish partners venture capital firm in seattle. she is former chair of the

seattle metropolitan chamber of commerce. part of the reason amazon was looking to expand was because the pushback in its home city, in these seeing that new cities as well. people are angry. what do you make of this reaction? heather: it's very interesting, i think amazon ins up being a lightning rod for a lot of emotion that could be better directed at other target. it is an easy target in the era and people'strump frustration with the wisdom of the greater societal trend. i think we need to make a distinction between new york and virginia. new york has come out and had a lot of noise around amazon coming and you have seen stuff about that helipad and gentrification of the area adjacent to brooklyn. in virginia, the response seems more muted and welcoming. i am sure amazon was aware of that when they chose those locations but i think you will

see both regions over time welcomed the additional expertise and talent pool that will come as a result of amazon locating there. give us some context. you said the environment for amazon and its seattle employees was unpredictable and outright hostile. i thinkmily: heather: there is a tendency to demagogue around why we are having these societal problems that we have. we have had a homelessness problem up and down the west coast, a lot of human suffering that everyone is concerned about. so you look for the other big change it has occurred and how you can blame that change agent for what you see as societal ills. amazon has suffered from that, partly because they have been largely a quiet company and they haven't done a lot to publicize some of the positive things they do for the community.

that is going to have to change. i was looking at the age of amazon relative to win microsoft had all the issues they did with antitrust and being the bad boy of tech. comparable.t of microsoft is 43 and amazon is 24. the 2000 era is when microsoft was experiencing their maximum hostile reaction from the general population and from a lot of other companies. that is happening to amazon now. it has been a big issue in seattle because they have experienced a lot of growth. it is a much more complex picture in terms of the effect of that growth. amazon has gotten all the blame for negative and none of the credit for positive. ofly: there has been a lot controversy surrounding amazon's facial recognition technology.

one study by the aclu pointed out that the technology got wrong the identity of several members of congress, including oprah. heather: i think facial recognition, like a lot of computer vision, has uses and misuses. this is where tech is finally going to face these slippery slope concept. tech has been very binary, and policy is not. pretty much every rod use of ai is going to require some sort of regulatory framework that will be a little bit more of a slippery slope. could be verytion good. most of us use it on our iphones and we love the convenience of it, but the use of it for mass surveillance is something we may

not be comfortable with. regulated usen't of it but we have seen engineers stand up and say i am not ok building a product that is going to be based on national defense as opposed to enabling human productivity. and yet the science underlining those two cases is very similar. biasing ai is something that is important work that needs to be done. microsoft has made a call to action about this. amazon had a recruiting tool that trained itself to reject female candidates. what do you think the call to action should be? heather: it is very important that we build diversity into every layer of the tech sector. the drivers ofof change are on the tech side. one of the things we need to see is more companies have diverse

teams and the funders of those teams have diverse teams. invest in ai companies and we need to the verse five hour own teams. our companies that are not diverse want to be more diverse because they feel like they have a partner in us. this is both a downside and upside issue. payalk about microsoft bought that became racist in short order as it was interacting with a lot of trolls online. we talked about amazon's recruiting tool and googles they haveognition and difficulty recognizing people of color. that has to do with biased data sets and our rhythms.

the chance of doing a better job or greatly enhanced by having more diverse teams at every stack, whetherch it's the engineers, executives, or the funders. even the reporters covering the sector, we have to have those diverse voices. it is also capturing the upside. think of all the products it could exist if we were really addressing everybody's needs as opposed to just one segment of the population. you start to see a lot of upside in terms of economic development and profits for companies by addressing those additional products. emily: you do have three general partners and for venture partners, three of whom are women of color, so i wanted to point that out. heather redman from seattle, thanks so much for joining us. up, robin hood is rolling out a new perk for its customers. we'll discuss goals for expansion with the ceo, coming

up. this is bloomberg. ♪

emily: time for our feature on the future of money where we took it disparate -- different aspects on currency as we know it. robin hood rolled out its version of a bank account for customers on thursday. it will offer checking and saving account option with 3% interest. that's higher than the rates offered by goldman sachs. julie sat down with the robin hood co-ceo to ask how they can offer this substantially higher rate. -- the way robin hood offers this is we take customers cash and invested in

government great assets. u.s. treasuries, the yield we earn almost treasuries, we pay back to customers and we believe that long-term it will be a profitable business for us, so we are very excited about it. >> with the checking come with a debit card where you can make the interchange fee all caps that? >> correct. designs and it is issued in partnership with mastercard. we have a commercial agreement that we share in the interchange revenue which is how the product makes money. quick since you are able to go out and invest in other building products, i assume it is different than a typical checking account i would get at j.p. morgan. explain it customers should have any concerns that their money is not going to be safe when depositing it into this account.

>> robin hood checking and savings is offered by our broker-dealer and it is insured up to a quarter million dollars, which is the same insurance amount offered through traditional accounts. it has a lot of similarities to fdic insured accounts, but is offered through our broker-dealer. >> you have done things like get into crypto and options trading. it was not super surprising to me when i did a piece last week. some say you are an ipo candidate for 2019. is that too early, or is it a possibility? >> we announced robin hood five years ago this week, in 2013, with the stated mission that our goal was to democratize the financial system in our country.

we stated the way we would do this is by building a company that is insanely focused on customer experience and that did things a little differently. we made long-term investments in our own infrastructure by building an engineering first company. a major step along the way was clearing by robin hood, the first self clearing broker-dealer in quite a while, and checking and savings is the first product we built on top of it. we continue to make long-term investments in our business and building a company that we hope is around 30 or 40 years from now. we see it as steps along the path we have set forward for the company. we are definitely considering an ipo. cannot talk about the timeline yet. cfo whohave hired a

comes to us from amazon. we are continuing to build the business and we are incredibly excited about the trajectory. >> markets have been more volatile than the last two years. what impact has that had on customer behavior? >> one of the things that has always been neat about robin hood's customers is we tend to have customers we view as more contrarian. on market dips, we tend to see more by and selling behavior. we have continued to see that with the last turbulence we have had in the market. we continue to be bullish on the state of the economy as a whole. unemployment is still very low. that was the robin hood

co-ceo. still ahead, bitcoin has taken a turn for the worse in 2018. 2019 be any better? we will discuss, next. ♪

emily: insta card is breaking up with whole foods. it will begin separating itself from whole foods and eventually no longer let its customers order from the amazon owned grocer. it will take months to finalize because of how closely intertwined the two companies have been. bitcoin has been the roller coaster ride for investigators -- investors and regulators. it gained mainstream recognition in2017, then falling 80% 2018. that is the cover story told in this week's edition of bloomberg

businessweek. matt winkler joins us. you have covered many wild rides. how does bitcoin compare? matt: you may not remember because you are too young. in the late 1990's, there was a magic two words called cash earnings. that was the arithmetic used to justify the valuations of so many.com companies that went public. one of them was yahoo! which came out in 1996 as an ipo. it appreciated 120 times its ipo price and then it fell almost 80%. was a losingasdaq bet right until the financial crisis and did not begin to recover until long afterwards. ash earning, there is

comparison which i think is valid. where people cannot find standard ways to measure value, otherwise known as intrinsic worth, they do all kinds of mental gymnastics to do that, and bitcoin is a really good example of how everybody tried so hard to justify what it was doing when the closer they looked, they couldn't find it. even warren buffett said it's a joke. so we have been in this picture before and the.com bubble that burst in 2000 is a good example. emily: it took two decades to see the end of the guy who story and it never did quite recover. this story asked the question, will bitcoin recover? will it? i am not clairvoyant, and

that answer is way above my pay grade. all i can do as an observer is look at this and say what justifies the valuations that we see in the marketplace? and when it is difficult to find the answers, that's when you ought to be pretty cautious. emily: do you see bitcoin fitting into the broader story of volatility that is happening and tech volatility in particular? that yes, to the extent when you have volatility you are saying there is a lot of noise. people have difficulty finding the signals, so where we are right now is the difficulty of finding the signals in so much noise and the noise only gets louder. emily: let's talk about the

signals. where do you see value in bitcoin or cryptocurrency more broadly? are all kinds of excitement over blockchain because it is the technology, a tool that people can use and that in and of itself is where there is intrinsic value. blockchain is something i would spend a lot of time thinking about and its application. with amatt winkler valuable, historical perspective for us. thank you so much for weighing in. that does it for this edition of "bloomberg technology." we are like on twitter. check us out and follow are breaking news network tictoc on twitter. i'm emily chang. this is bloomberg. ♪

>> australian markets have just opened for trade. sherry: shery ahn. >> am sophie kamaruddin in hong kong. welcome to "daybreak: asia." haidi: our top stories this friday, washington welcomes china's initial moves on trade but concrete action is more important than mere gestures. the economy shifts from high-speed