emily: i'm emily chang in san francisco and this is "bloomberg technology." coming up, shots have been fired between the u.s. and china in the global trade war. the tech sector, caught in the crossfire. who is going to win and lose? facebook is putting together "an almost supreme court." we will take you inside the company's content -- content oversight board that makes decisions on what goes up and must come down. it going touches $11,000 for the

first time in 15 months. is the latest bitcoin bump here to stay or just another bubble? the clock is ticking on president trump's next round of china tariffs. a proposed new wave of tariffs set to go into effect as early as next month end half of those -- and half of the $300 billion of targeted goods are tech related. a new article details how china's tech industry is mostly insulated but there is one area where it is still dependent, very dependent. the semiconductor chip. over the last decade-plus, china has seen a surge of chip imports that surpasses $300 billion. to further breakdown the effects on tech in both countries, we have bloomberg tech's ian king, who covers the chip industry and the co-author of the aforementioned article. also with us, global senior editor brad stone.

china's greatest reliance is on semiconductors. how so? ian: esoteric parts like broadcom's switch chip, more common parts like an intel microprocessor, china really can't replicate those yet. they have been trying for years and haven't come close. emily: why not? ian: it is difficult. when you are arranging tens of billions of transistors on something the size of a postage stamp, you have to kind of know what you are doing. making them costs so much money. they have never been able to dollar -- develop that skill set. emily: which companies in particular in china are the most vulnerable? ian: you name it. it is the biggest pc market. it is also home to some of the largest pc makers like lenovo. they need these products. huawei, it goes without saying. they wouldn't be able to make their core routers. they need memory chips and all kinds of things.

absolutely essential. emily: brad, you have a piece out about how u.s. tech giants, even though they may be complaining about the trade war, are in the best position to weather it. brad: big companies like apple have the cash and negotiating power. foxconn has already talked about moving production to other companies in southeast asia. india, malaysia, thailand, taiwan. of course, the trump administration would like to see it here in the u.s. that is unlikely to happen. but i think they are worried. we saw a bunch of letters go to the u.s. trade representative last week. apple said the tariffs will hit iphones, ipads, macbooks, air pods. they say it will hurt apple's glow to -- global competitiveness. emily: as you mentioned, they do have the negotiating power and we don't know if that will pay off. brad: it has worked in the past. some of these product categories

were on previous lists of tariffs as early as early last year. they got off the list at the last second. i think the tech companies are hoping for that kind of reprieve. we will see what happens at the g20. emily: huawei, they are dependent on u.s. chips somewhat. they also make two thirds of their own chips, right? ian: smartphone. the key component of the smartphone is the nickel processor. they have been arguably the most successful company outside of apple in weaning them self off qualcomm's technology. they can supply themselves in that particular market very strongly. emily: there is a line that i love your you say laptops, smartphones, toy drones. have these people know compassionate all? my drones even? brad: they are coming for our drones. emily: how would you break apple versus amazon, for example? amazon is shutting down its entire china marketplace next month.

chinese consumers -- brad: it is interesting. you would think amazon might not be that exposed. they have a huge business there among the small third-party sellers that sell on the amazon marketplace. our colleagues have a great story out today. these companies, unlike apple and amazon, they have no negotiating power. they are one or two people shops, they sell everything on the amazon marketplace. really it is the uncertain that -- uncertainty that is impacting them. they have to get their holiday orders in now. it is not that easy for them to look for another factory in india. emily: what is plan b? ian: i think their plan b is to cut orders and raise prices. that will have an interesting impact on amazon's holiday this year. if selection is going down, prices are going up, it is another way the u.s. consumer is going to be hurt by the trade war. emily: how does that ripple back and impact china if u.s. prices

rise? china also depends on a lot of these companies in china. ian: apple is an example of that. yes, maybe we don't need that many iphones, but so many people are employed directly as a result of manufacturing chain. that can't help but impact the economy. you have all these relatively high paid jobs, tax revenue, if that goes away that fundamentally undermines the chinese economy. emily: what is their plan b? ian: a lot of people don't realize just how powerful they are. when trade sanctions have been used in the past against countries like korea and japan, they are relatively small domestic economies. china mobile has more subscribers than the u.s. has people. they are their own center of gravity. there are people who have never looked at google search because they never needed to. they are not using apps supplied in the u.s. because there are

enough gravity in the market on its own terms. emily: we don't know if the tariffs will go into effect. we are still waiting for this meeting to happen between president trump and xi. you wonder, even if these new tariffs do not go into effect, if this uncertainty has been so intense for these companies that they are already moving to plan b and start making arrangements for the future? brad: everything we heard from our reporting in asia and the reporting of others suggests it companies like apple are looking at other sources of manufacturing outside china. it makes a lot of sense. the one thing i would say, if you look at the market lately, i get the sense that maybe this market thinks there will be a resolution to this. otherwise, we would see a lot more volatility in the stock markets than we have seen. emily: are you optimistic? ian: it depends whether you are talking about the market or the companies. if you talk to executives, the

companies are not keen to go on the record. is they are saying, this wrong way to go about things. we have so much to lose. we want to resolution. emily: what is next? brad: i think all eyes are on the g20. i think there is an assumption the tech companies have proven their case that this will be difficult or them and bad for the american customer. if the president takes that into account, we are likely to see some form of resolution, may be short-term relief to these product categories. emily: thank you both. amazon web services says it has fixed an issue that impacted conductivity between some customer networks and multiple regions. they observed a problem with an external provider outside of its networks monday. it says conductivity to other providers was not impacted. coming up, facebook is building its own so-called supreme court

for content moderation. but will that solve all of its problems? we will discuss facebook's plan for an oversight board. if you like bloomberg news, check us out on the radio, the bloomberg app, bloomberg.com, and in the u.s., on sirius xm. this is bloomberg. ♪

emily: facebook is looking to create a new content oversight board.

the social media giant is hosting a series of simulations across the globe as they plan an independent board to review controversial content moderation decisions. the board will decide on appeals that have been removed or removed in ever. zuckerberg has mentioned the idea for independent appeals process is almost like a supreme court, quote unquote, his words. joining us to discuss is kurt wagner, who covers facebook. kurt, the supreme court is nominated by presidents and confirmed by congress. how would this be put together? kurt: that is the biggest question, that they want it to be an independent group but we don't know exactly who is going to be picked, how big it will be. they say it will be around 40 people and then they break up into small groups of 3-5 to review individual cases.

how do you pick a group of 40 people that accurately reflects a billion people? that is one of the biggest challenges. emily: how do you do that if facebook is doing the picking? >> it will be really hard and facebook is also paying for this board, so independence is always going to be a question. that is inevitable in the situation. the point that kurt made is a good one, that facebook is now a global platform. they have many users in places like india, indonesia, other places that have different values than facebook in the united states that was founded largely by american executives. the question is, will the board draw from people from those countries that are now basically facebook's future? emily: talk to us about these simulations that facebook is conducting. a controversial decision comes to this group of people and then they debate.

kurt: i sat in on one that was at facebook's headquarters in california. it was about 30 employees. they presented them with a post that was controversial. someone had listed 70 different academics and accuse them without any proof of being sexual harassers. they left the list up and said to add more names to the list if you know someone else who is a sexual harasser. obviously that is a dramatic and severe claim to make. facebook wanted its employees to discuss, is this the kind of post that should be left up or taken down? it was two hours long and they went through different questions. they are trying to get at, how do people get into this stuff? what kind of questions do they ask? so when the real board has to make decisions like this, they are prepared. emily: some of these decisions are cultural. who are these people? are these all english-speaking people? how will they understand the

nuances of the situation with the rohingya in myanmar? shira: that will be difficult. facebook has said, as they talked about this out loud, to their credit, they have sought input on this oversight board. would capthe board outside experts. they are dealing with an issue that is culturally specific to germany or india, that they would seek experts in those areas. let's not gloss over the fact that the vast majority of content decisions, judgment calls about what is ok to leave up on facebook, are made by this kind of low-wage contract workforce. not by the high-gloss, supreme court type authority. emily: there has been more reporting on this from the verge recently about the often horrifying situations that these content moderators have to go through day in and day out. does that jive with your

reporting? kurt: it is a really terrible job. think about policing the internet from the most violent and graphic stuff and seeing that consistently. that is what these folks do. the board would not replace that job. say,the board would do is this is a decision our moderators made. let's review it and see if we agree with it now that we have a little more time to look at the facts or discuss it among the group. it is speed. something pops up on the screen, they have to watch it. does it violate the policy, yes or no, and make a decision. emily: there's a question whether facebook should be doing this at all. facebook has made the argument that perhaps this should be a government decision. nick clegg, their new chief of policy, spoke to the bbc and said he doesn't think it is in any way conceivable and i don't think it is right for them to set the rules for the road as

far as how tech serves society. you wonder, would they be better off having governments make these decisions? is that even plausible now? shira: it doesn't really feel plausible, does it? i understand the position facebook is in. they created these platforms where many billions of people congregate every day. it turns out that facebook is a reflection, and amplification of the best and worst in humanity. now that the genie is out of the bottle, they want to basically turn over a little bit of responsibility. i think what facebook wants, in this engineering mindset, is, give us a formulaic solution. if x and y happen, we do z. i don't think we will ever be in a position where that is feasible given that the internet

reflects people and they can be -- and people can't be reduced to formulas. emily: how comfortable is facebook and facebook insiders with this formula? this proposed formula. kurt: i think they want this. mark zuckerberg does not want to be the one at the top of this foodchain saying, this is taken down, this stays up, ultimately that is my call. i don't think he wants the responsibility. we know he doesn't want that responsibility because he has said so repeatedly. i think they see this as a very clean option for solving those problems that no longer puts it at their feet. emily: when might this be put together? kurt: the goal is, by the end of the year, the first version of the board. theoretically if it works, we may still be talking about it decades from now. emily: we will see. thank you both. coming up, spotify downgraded to

underperform. we will speak to an analyst who says the music streaming company could have issues down the road to profits. that is next. -- iserg tech's wives live streaming on twitter. check us out on twitter @technology. this is bloomberg. ♪

ulta: sally beauty and beauty extended losses after amazon announced it launched a beauty store. sally shares scott -- saw a tumble and ulta fell as much as 4.5% for its biggest intraday decline since may 31. evercore isi is taking a stand

on the music service spotify. the firm has downgraded the stock to underperform to $110 from $125. an analyst wrote that he simply doesn't see a path by which spotify can generate a level of gross profit demanded by the street. kevin is with us now. kevin, walk us through your argument. kevin: i guess the argument comes down to the question, is there a path for the level of gross profitability that current street estimates are calling for? we see a challenging path. if you look through kind of what the stock has done recently, the move from $120 to $150, we think a lot of that has to do with a degree of confidence in the near-term relief by way of content costs and the ability to drive high revenue ancillary revenue streams. we think the likely outcome of some of those near-term events

is going to disappoint investors in a way that will lead shares lower over the near-term. longer-term, we main -- remain concerned around over the degree of competition and spotify's leverage over the labels that control many of their costs. emily: which competitors specifically? it is really apple music right now, right? kevin: in the united states, it is really apple music. but if you go market by market, it is a whole host of competitors. if we look at india, indonesia, turkey, brazil, there is usually a close second or leading competitor that doesn't get reflected when you look at the global averages. the market is far more competitive than indicated by just those headline numbers. emily: what kind of content bets are you skeptical of? they have doubled down on podcasts. kevin: podcasts could drive

growth. it is a question of scale. podcasts as a share of listening has gone from 2% to 4%. that is over the last few years. it is probably growing somewhere around 25%. we are really not at the point where that kind of growth at that limited scale is going to move the needle for shares or for sort of the financials. that is where we are struggling. it is a good opportunity but not probably big enough to satisfy the demands of investors over the medium term. emily: we have been talking a lot about direct listings, especially with the direct listing of slack last week. if you look at spotify's momentum, they are fairly flat from where they started trading on opening day. of course, they got to capture all of the gains from the reference price and the opening price. that said, in reality, shares are flat. do you think the direct listing was a good call? kevin: is a good question, one

that companies probably need to consider. we have seen slack do it, seen spotify do it. there are probably pros and cons to be made in both directions. i would not say there is a blanket statement as to whether one is better than the other. it is probably more for individual companies and boards to decide. emily: what do you think spotify's path to profit is? is there one, with apple having a deep cash pile and the benefit of being on the iphone? kevin: that is the question. our big concern is that spotify will ultimately prove to be a pure play on a loss leader category. if we look at the deep-pocketed competitors, apple, amazon, they can operate streaming music as a benefit to their broader ecosystems and not have to generate profit from streaming music on a standalone basis.

for that reason, we struggle to see a way in which the industry-level profit will be attractive. spot is a pure play on that industry. it is an ongoing question as to what the key driver is. the management team and bulls a two-sidedo marketplace, high leverage promoted revenue. that is worth exploring but is unproven. i would say only time will tell. we are skeptical but obviously there's room for debate. emily: kevin, thanks so much for sharing. good to have you. coming up, a notable year for tech on public. what happens after? we will discuss, next. this is bloomberg. ♪

emily: this is "bloomberg technology." i'm emily chang. since slack debuted above its reference price, it has been a calm down over the past couple days. stocks down 7.5% from where it closed on opening day and is not just slack that might be in the midst of a correction. over the last three market sessions, others have been lagging behind the s&p. our next guest is a board observer in the company and has -- in a venture capital firm, has invested in stripe, medium, and other things. good to have you.

you invested at about a $1 billion valuation and you are now 15 or 20 times that, not bad. how does it feel getting to this moment when there was a point when stuart butterfield wanted to give all his money back to investors. >> it's been a wild ride with slack. it's been almost five years since we invested in the company and that was the early days of what slack actually is now. they pivoted from a gaming company and to the product we are now know. -- we now know. it has been a wild ride over a relatively short time to get the company out there is a public company. but it has been a great ride. people who of the use slack love slack. how does it continue to tell the story to traditional companies that may not understand the slackiness of it? >> the story has basically been the same from the get-go go. everyone understands the

opportunity within the office space to facilitate better communication. everyone has used email since the dawn of internet time at the very least. when there is new technology coming into play, it's a compelling opportunity for a lot of different companies to figure out ways to utilize that. slack is the prime example that -- of the consumerization of i.t. that we are seeing across the board. they have been spearheading the way. i think there is a huge opportunity beyond what they have done so far in terms of market penetration. emily: why did they choose a direct listing? why was that the right call? m.g.: if you were -- if you look at what to direct listing is, you don't need to raise money from the public markets. emily: so you can raise a lot of money in the private markets. a good jobhave done utilizing the money and being able to send it in a prudent manner and being able to get to

the point where they are at without needing to go to the public markets for the fundraising, and rather using it for other opportunities. they are mature and ready to go. emily: many people said this would be the future for other tech companies. we were talking earlier about spotify, while it has continued to do relatively fine, they haven't taken off or dived. given the last couple trading days, i know it is just a couple days but do you wonder if slack lost that momentum by choosing this route rather than the traditional one? m.g.: without speaking to the go forward plan first site directly, i think there remains an immense opportunity that the company had for years and years. when you look at just one week in the events in the lifecycle of the company, there is a broader picture you have to zoom out to look into. this was an important milestone for the company to get to this point.

now that they are beyond it, there is a whole bunch of different paths to go down. is a nontraditional company. tell us about the other bets you have made, on media and content, for example. m.g.: with media in general, we look at it not so much from an overall perspective of trying to replace what has been out there. we look at it at a more granular level. we look at the millennial female demographic, even things like medium, which is broader but is trying to reinvent the business model for media as it has been and is focused on the subscription, doing no ad space revenue. emily: you are a former journalist. and esteemed journalist, and you still write. the content investments are fun and interesting, but are they really going to pay off? enterprise software can be more boring. going back to the level of

more granular bets within the media, i think people are looking for more and more, just being able to drill down into topics. at a fundamental level, everyone needs information and they will need a way to get to that information. you are seeing more and more that people want deep dives into certain types of information, not necessarily a publication that does everything but really focuses. emily: what do you think about apple news? there has been criticism that they are taking a large cut. that is going to put even more of the burden on news organizations that are already suffering, who may not have the resources to make something look nice on apple news. m.g.: it is interesting from the perspective of how many apple devices there are out there. when you have a preinstalled application and access to a billion potential devices, that is compelling. at the same time, they have the business model to figure that out.

companyuire the texture, and have moved into the apple news plus arena and they are trying to sell magazine subscriptions. it's interesting to focus on the magazines but they will have to make it more interesting value proposition. emily: is this going to be the death of journalism? are we are ready in the middle of that? medium isking to what going after, there is an interesting time. consumers are getting more used to paying for content online, which has not always been the case. we are seeing pay walls go up. it's a natural inclination to move against the advertising-based models but it is still tbd. the biggest tbd is probably, are we going to be inundated with subscriptions? we pay for netflix and spotify. going to pay for five different types of content he? emily: a new type of digital housekeeping, going through your bills and trimming the fat.

you are an investor in uber and one of your partners went on to be the coo of lime. how bullish are you on the scooter market? m.g.: i think it is a natural extension of what we saw play out with other companies in the rideshare space. i think the micro mobility movement is a real thing. there is real demand in the market for it. there's a lot of questions about how you roll it out going forward. does it -- it doesn't follow the same playbook as uber and lyft. or is it a different type of execution model? it's great to have people like joe at lime working on that implementation. emily: what is the next uber or the next slack? where are you placing your bets? largely focus on consumer. i've been sitting on the sidelines waiting for the next giant consumer opportunity. everyone talks about the iphone

and the app store. and's up happening in a macro sense is, there is computingconcert of that happens. it's not just about one device that replaces the iphone or something like that. instead it is using a watch, air pods different devices you , always have on you. google home, alexa, all those things. hope i didn't trigger anything, that happens in my office. basically you can use them throughout the day and you don't have to worry about which device you're using, it is which service you're using and having them be ubiquitous across all of them. emily: good stuff. thank you so much for stopping by. the venture capital arm of bloomberg lp is an investor in slack. verizon realigned its strategy around b2b advertising subscriptions and transactions recently and we to revive -- aiming to revive revenue growth by 2021.

verizon media's ceo spoke exclusively with bloomberg about how they plan to capture those opportunities. >> we want to go deeper into the member centric strategy across our media ecosystem. what does that mean? newshink about yahoo! sports, finance, entertainment. we have a more shallow experience. we are going deeper. we started building trusted content around that and we have more than eight studios now globally to start producing a deeper content experience. there are two that i talked about earlier that are diversifying our revenue. we are going from purely ad revenue to subscription transactions. that's the vision i've laid out for the team to diversify across thecriptions, add based and monetization on the transaction piece. we are focused on going deeper and expanding our revenue base. are planning to get a

third of revenue from subscriptions by 2021. tell us a little bit about your strategy there. >> if you've seen recently we have launched a lot of member centric products. we launched a yahoo! finance premium starting in the u.s. right now, we've done the same thing with sports. there is a premium version of the product. we have the same thing for huffington post. tech crunch is deeper, exclusive content for members. that's one way we are expanding the revenue base. the other part of the membership we have done in asia, hong kong, and taiwan, you see member centric rewards programs for consumers who are doing commerce but also get points and engage across our ecosystem. in return, they get more member benefits. the last one i would add is around 5g, when you think about verizon being the leader on 5g, it enables the media business

quite a bit across the different verticals. >> tell us a little more about the opportunities you see in 5g. >> we talk normally about 5g having eight currencies, in terms of speed, latency, device .ensitivity, battery power a lot of these things, when you take it in, one of the first segments that take it -- takes advantage of the media is business. from a consumer standpoint, what you saw experience with 4g, now you will have deeper experiential content. we do a lot around ar and x are and we built our first 5g ar lab in l.a. and we are expanding that across the market. when i start talking about trusted content, a lot of that is around 5g and building a deeper immersive experience for consumers, interacting with the video they are seeing or creating virtual characters that

we've talked about in taipei and hong kong. i would say content experiences go much deeper. then there will be a transition to commerce as well. one thing we see across our portfolio, 70% of our content has commercial intent, but we always monetize that to our business model. that is why commerce is a horizontal start, layering, as well. >> verizon did give a reorganization update to analyst last week but there was not a lot of mention of verizon media. do you find that a challenge at the moment in terms of low expectations? >> i would say we went through, below the line on a lot of issues in the last year to 18 months in terms of integration. done and ofion got quarter 4 when i took over as ceo. one of the issues, we saw

decline, we had desktop traditional traffic and transitioning that from -- to mobile, where we are seeing a lot of growth. it's more about getting to the reset pace we are at now. we are seeing in growth it -- we are seeing growth in mobile and video. in terms of our organization, we did most of the work through the end of last year already. a majority of work happened on the organizational side from the consumer and the business group. it went through most of the changes. we had already done a lot of those changes through the end of december. so there was not a lot of mention around that. we are keeping our heads down on execution and playing off it right now. -- playing offense right now. emily: that is verizon media upon ceo. coming up, brick-and-mortar may be dying a slow death, thanks to online shopping. will online shopping remain king, or something else? we will discuss, next. this is bloomberg. ♪

emily: mobile commerce is a sector that continues to grow. exceed so that sales may $2.3 trillion in 2019. mobile commerce platform button just raised billions to power sales. button maximizes the value of chat for publishers. the funding round was led by icon ventures with participation from capital one and read point ventures. joining us to discuss is the button ceo, michael, thank you for joining us. talk to us about where you are in the tech payment stack. you worked with companies from walmart to uber. we hear about paypal and stripe working with you as well.

where are you in that transaction? michael: the button platform sits above that stack. where we sit is really in this place where publishers integrate with button to connect their consumers to the next step. we're trying build an internet that will be better and built on action. what the publisher technology that we built does is, it sits inside an application, renders an actual button, and connect them to the place of intent that there you -- their users may want to go, whether that is a map that goes to uber or driving sales at asos. emily: mobile shopping is on the rise. but for many retailers, mobile shopping can be a fairly lacking experience. i find i make mistakes if i'm trying to shop on my phone, where if i'm focusing most sitting on my laptop, i have a much better experience. is that changing?

michael: i think there is a lot of change happening and button is trying to invest in that to make it easier. facebookeeing google, trying to make it easier. facebook is investing in making the checkout process the more seamless. we believed if we could build a method that would make consumers have a delightful experience getting from the moment of intent to the moment of fulfillment, saying i want a ride or to book a reservation and having that be as few taps as possible, we would win in the companies building on our platform would win. you're seeing innovation happen with sign on and the account credentials being passed more easily between experiences, apple pay of course and the google checkout experience and paypal is making it easier. strides are being made, but there is still a long way to go. like you said, it's still a lot easier to purchase on your pc. emily: where are you seeing the most growth?

instagram, for example, launched e-commerce and it is moving slowly. michael: an interesting point. in our judgment, we think the instagram effort is one we predicted for a long time. i was not the most popular guy in the venture capital pitch room saying the world is moving to commerce. they said advertising makes so much money. in reality, what i think facebook is doing is very smart. they are trying to habituate consumers around driving transactions from their platform and everyone is looking at amazon with a little bit of fear and a little bit of jealousy. i think what you are seeing is, they are looking at amazon's power as being a habituated source of transactions and saying look at how amazon is growing its business. what is fascinating is, if you look at amazon's business, the fastest-growing channel in terms of revenue growth has been the advertising business for the past eight quarters in a row. every company wants to grow and be part of that puzzle or that story.

that is the thing we are seeing grow most quickly. for the future advertising, when display and all types of advertising are under fire, the way you will be able to make money and build durability and your business model is to give consumers what they want. for us, we are trying to give that power to every publisher, to every company that has intent. emily: we will cover that story and the rise of mobile payments. michael, thanks so much. still ahead, bitcoin again on the move amid new details around facebook's crypto plans. is the recent run sustainable? we will talk all things crypto, next. this is bloomberg. ♪

emily: it was a good weekend for bitcoin. it soared to its

highest level in over 15 months. the cryptocurrency saw one week gains climbing 24% before prices scaled back slightly monday. analysts attribute the rally to renewed crypto optimism from facebook's libre announcement last week. joining us is lisa, an investor in crypto. what is driving this bump? is it all facebook? emily, thanks for having me. i think part of it is definitely facebook's libre -- libra announcement. bitcoin was rising before the announcement. there are a lot of reasons for that fundamentally and also sentiment. libra definitely had a big heart -- a big part in education, media, civilian users on facebook having an on-ramp to learning about crypto. that is a big part of it.

emily: how optimistic are you about what facebook unveiled and whether that can help or really, bring the industry into the mainstream? was awhat they announced centralized version of a stable coin, and it is backed by government bonds and currencies. it is really more of a payment mechanism to compete with paypal or wechat. i think the purists will say it is not a real cryptocurrency because it is not decentralized and has other characteristics, not crypto characteristics. i think it will raise awareness. i consider libra the aol moment. if you think back to when we all on boarded onto the internet and

we were in aol chat rooms wondering what else we can do on the internet, i think this is that moment and it is a watershed moment. emily: the house financial services panel planning to hold a hearing next month. maxine waters has already called for facebook to stop working on libra immediately. are you concerned about the blowback and that the bitcoin bump could be another bubble? nisa: i think it is different this time and this is not a bitcoin bubble, for a number of reasons. the unique characteristic of bitcoin as a store value and also a payment mechanism, that narrative is emerging. 100,000 merchants accept bitcoin including expedia, microsoft, and whole foods. there are tons of applications being built on top of it. in my book, i talk about what is

being done in remittances overseas, in africa. the unique characteristics of bitcoin as well as the institutional buildup that has occurred since the last bubble in terms of custody, settlements clearing and also futures and derivatives making this more of a sustainable rally than anything else. emily: we will watch to see if you are right. thank you so much for joining us. that does it for this edition of "bloomberg technology." we are live streaming on twitter. check us out on twitter and follow our global breaking news network tictoc on twitter. this is bloomberg. ♪

manus: this is bloomberg daybreak. the trump administration slaps sanctions on the supreme leader of iran, further easing pressure on the islamic republic. the ambassadors even hit back. -- the u.n. hit back. >> u.s. must stop. as well as the economic more antiterrorism against the iranian people. manus: the cost of insuring middle east oil shipments is soaring. risk premiums for a tanker and its cargo now cost upwards