emily: i'm emily chang in san francisco and this is "bloomberg technology." coming up in the next hour, markets get a breather. apple, tesla, and cisco leading gains after the s&p tech sector lost $250 billion in value the day earlier. the trade issue between the u.s. and china, where does it stand now? shares fall in third percent trading to blame themepark attendance.

and google gets an earful. the search engine rival blasts the company for requiring them to sign nondisclosure agreements to join the android option. claims they are strong-arming the competition. first to our top story. what a difference a day makes. major markets have closed in the green after monday's record-breaking losses. that follows increased trade tensions between the u.s. and china and the tech turnaround is partly due to apple, tesla, cisco leading gains. the s&p closed up 1.2% while the nasdaq closed up 1.4%. but should tech investors be popping the champagne just yet? joining us to discuss, bloomberg senior market editor michael regan. should they? mike: i would not pop the champagne, but they can at least breathe a little bit of a sigh of relief. tech was the leader on the

downside yesterday, mainly because people saw that fix the chinese currency sunday night, monday morning china time. it was a dramatic move, the weakest fix for the currency on a percentage basis since 2015 and it allowed the currency to drift above that 7.00 level versus to the u.s. dollar. people thought that was a line and china would not let it weaken past that. last night's fix, the people's bank of china fixed the currency below 7.00. that is important for tech investors. so many of these companies get so much of their revenue from china. companies that get 15% from china, it is a lot of the brand name tech companies. a lot of the semiconductor stocks. apple, tesla, a lot of very important tech stocks derive

a significant portion of revenue from china. -- toe currency stabilize rebound today, it is still down quite a bit from the highs in july. semiconductors dropped 12% from their highs at the end of july. to see a rebound of about a percent and a half today is not necessarily sending the all clear signal just yet. emily: how much does this simply have to do with the level at which china fixed its currency? mike: today in particular has a tremendous amount to do with it. there was that concern in that the fix was so weak sunday night, monday morning, but that this was the start of things to come, that they would allow the market to push the value of the chinese currency lower. china took some steps, sold some chinese yuan denominated

bonds in the offshore market, that really sucked up the liquidity on the overseas currency of the offshore yuan. that really made people start to believe that they are not going to let the currency go into a freefall. emily: what are the safe havens in this moment in time? mike: outside of the stock market, we have seen a tremendous amount of money poured into the bond market. bond yields falling to the lowest since 2016. gold trading near a five-year high. within the stock market itself, there's a lot of debate about where safe havens are. utilities have gotten a lot of money, but they have really become what many consider a crowded trade. trading at high valuations for the utility sector. real estate, the same. people are really trying to figure out where a good safe haven is in the stock market. emily: thank you so much for that context.

when xi jinping first met donald trump in turkey 17, the chinese leader said they had 1000 reasons to make the chinese-u.s. relationship a success and not a single reason to break it. are atrs later, ties their lowest in decades. on monday, the u.s. labeled china a currency manipulator, sending global markets into a tailspin, further escalating the trade war. to discuss the rising trade tensions and how tech is being impacted, we are joined by edith young. you split your time between the united states and china. give us your view of what is going on on the ground in china. edith: it is interesting, president trump called china a currency manipulator. in china, a lot of people call

them a tariff manipulator. really fighting against the technology sectors, particularly in china. what has been going on particular with the huawei ban created a strange sense of national pride and support. a lot of the chinese public felt bad for huawei in many ways. in the last quarter, the mobile phone sales increased about 4.6%. you would expect it to impact their business quite a bit, but it is the other way around. emily: so chinese consumers are sympathizing with huawei, buying huawei phones more often than they would have. does that mean they are not buying iphones? edith: i love the iphone, and i still think apple does really well in mainland china. having said that, overall, there is a sense of wanting to support a local brand and really feel bad and feel they are the victim of this tension. emily: how does this impact and will this impact the u.s.-china

tech vc startup ecosystem? there is a lot of cross-border investment. up to this point in their has increasingly been cross-border investment. edith: to start with, for silicon valley's tech ecosystem, in 2015 and 2016, certainly a lot of chinese vc's set up shop in silicon valley, wanting to bring u.s. startups to china. having said that, even though we certainly see the u.s. committee for the u.s., definitely sent out a ripple effect and specific funds from china, very specific companies. think about alibaba with money grams, or recently grindr. a lot of these deals are being called a national security risk. it sends a strong signal that the chinese vc's aren't welcome

in silicon valley. is thewhat do you think latest escalation with president trump calling china a currency manipulator, which trump threatened to do for a long time but didn't do until this week? edith: certainly president trump never stops to surprise everyone. the way i usually describe, many years ago, president trump had this book called "art of the deal." to the chinese people, he is playing the tactics just like he said in the book. in particular for the chinese government, he is playing the long game, sort of the art of war. in many ways i don't think it will be easy for the chinese government to compromise in any way and they will continue to fight. emily: how does it impact where you are putting your money? edith: for us, we invest in both china and the u.s.. when i'm talking to my fellow vc's in china, if you think about it, the strongest ipo from

china in the last two years, many of them do go ipo on nasdaq, on new york stock exchange, and they are e-commerce focused, logistics focused, automotive. their target market is actually not the u.s. at all. very china focused. now, instead of coming to the u.s., a lot of the chinese vc's are thinking southeast asia, brazilatin america, like or germany instead of coming to silicon valley. emily: would you say we are in the middle of a tech cold war with china and, if so, how does it end? edith: it is unfortunate what is going on now. it pains me being someone who has spent time on both sides. i think it will continue to have , especially in the investment venture capital community, i think the community will not mix as much. it is not saying that any silicon valley startup really needs chinese money anyway, nor does chinese startups need u.s. money, but we would like to see

more collaboration. i think the so-called cold war will segregate both communities. emily: what does it mean for innovation? does it mean both countries are less innovative? does it force both countries to innovate more? it -- i hate to compare at the end of the day, technology is not a zero-sum game. we will continue to see silicon valley focus on solving a lot of silicon valley problems, which even china seems like it is doing well. you see over 200-some unicorns. it is not anyone in the u.s. who wants to play games made by tencent or shop on alibaba, and vice versa. google and facebook have been around for a long time in china anyway. it will continue to stay as it is. emily: edith yeung, partner at proof of capital, thank you so much. interesting to hear your insights on the show.

coming up, we will speak exclusively to the amazon executive in charge of h2 development plans next. this is bloomberg. ♪

emily: welcome back to "bloomberg technology." talking about amazon now. a new program out to retrain workers, train workers from childhood to career. amazon dedicating over $700 million to provide people across its corporate offices, tech hubs, and fulfillment centers with access to training programs that will allow them to move into more highly skilled jobs within or outside amazon. one particular program is attracting students is called amazon future engineer, a comprehensive childhood to career program to educate and train kids and young adults from underserved and low income communities to pursue careers in

computer science. earlier, we spoke to the amazon vice president of workforce development about the program. >> amazon future engineer is a comprehensive program, and really is an opportunity to meet kids of all ages where they are and help them build the skills they need in order to continue in computer science, and then hopefully to engage in a career that integrates technology into whatever sealed -- whatever sealed -- field they choose to pursue. emily: you are offering a scholarship and the winners get an internship at amazon. how many of those people the think will become full-time employees, or what do you hope? ardine: we hope that all 100 them become full-time employees. what is most important to us is increasing the pipeline of students who pursue computer science. that benefits not just amazon, but the entire tech community at large.

emily: how are you benchmarking yourself? what will be a measure of success? ardine: we look at a number of things. there's the regular feedback on the program that we solicit from participants and teachers. at the high school level, we look at how many students actually take and pass the advanced placement test. for those who receive scholarships, we look at the scholarship renewal rate, which tells us if they are continuing in computer science. and for the interns, whether they choose to return to amazon or not at the end of that first year, we look at whether they get an invitation back, because that tells us they are strong candidates at making progress in the field. emily: you have been instrumental in starting the staff of hq2 and focusing on the d.c.-northern virginia area. when amazon set up in seattle, it did not do programs like this and we saw the relationship between amazon and the community of seattle suffer. what are you doing to engage

more productively with the community in arlington to build a better relationship from the start? ardine: i think the nice piece about arlington is we have a view to the flightpath. we know we are going to hire 25,000 employees over the next 10 years. what that tells us is there are kids in school today that we would love to get interested in computer science so they can join the ranks of those college students that attain tech degrees. we are excited to be here in arlington and engaging with the community to learn more about the programs that exist now and where we can put our shoulder to the wheel and improve things for the community at large. emily: you promise to add 25,000 employees in a decade. what is the pace of hiring so far and are you finding the skills you need? ardine: the first year is relatively modest, we will hire 400 folks this year.

that is really so the construction can begin on the site. so far, we have had a fantastic response from the community and have had the opportunity to interview great talent. talent is the number one reason that brought us to national landing, and we are excited to be here in the community. emily: in doing all this hiring, you have the opportunity to change the profile of the company. about three quarters of amazon's managers are men. you don't report the percentage of women who hold technical jobs, but the rest of the tech industry is about 20%. not even close to 50-50. how will this program change that? ardine: you are right, this is a great opportunity for us to change the profile of folks who work in tech. and key to that is impacting the pipeline. s.t.e.m --t within science,

technology, engineering, and math, fewer than 8% of that population pursue degrees in computer science. a fraction of that 8% are women and people of color. by creating programs like amazon future engineer, which expose students early in their education to computer science and make it something they can see and understand, provide the opportunity to make that pipeline richer, to invite more women and people of color into it, which ultimately helps representation in the workforce. emily: given that you are staffing up hq2 in arlington, you are also working on building out a new site in nashville. you pulled out of new york city after pushback from local leaders. some of the folks that were bound for new york city, what happened to them? how is that plans panning out? ardine: we have a large presence in manhattan already, about 5000 corporate employees. there is still a presence. we have a fulfillment center in

staten island, as well as other sites across the state. those businesses that were already in new york will continue to grow organically there. emily: i know you are focused on hiring, but we have to ask, when a day like today when the trade war is escalating, how much are you, amazon executives following what is happening between the united states in china and how concerned are you about the impact it could have on amazon? ardine: i suspect our executives are following it closely, as they do any initiatives or issues that would impact our customers. we will, as always, take the decisionsand make based on what is best for our customers. emily: bloomberg broke a story about the president considering intervening in the pentagon's plans to award a huge $10

billion cloud contract, which many believe amazon is best positioned for. you've got a new defense secretary saying he's going to look into the process by which that contract was awarded. how confident are you that amazon will secure that deal? if it doesn't, if it goes to microsoft, what does amazon do? ardine: i don't have insight into the contract. i think the new secretary has every right to take a look at the full portfolio of things that he manages and make the best decision for taxpayers. emily: that was amazon vice president ardine williams. coming up, disney shares fall in after-hours trading after the company reports third-quarter earnings that missed estimates. seems like not even avengers could save the day. but disney's streaming services have a price plan. we will have details, next. ♪

emily: disney shares plummeting in late trading after reporting quarterly results that fell short of analyst estimates.

earnings squeezed by falling theme park attendance, spending on new streaming services, and a flop of a movie inherited in the $71 billion acquisition of fox assets. joining us to discuss is chris, who covers disney for us. chris, i don't understand. disney opened the most anticipated theme park attraction in star wars, and attendance dropped? chris: yes, we are calling it the star wars stumble. we have written about this. there are social media posts saying there is nobody on main street, no wait for these rides. there were a lot of explanations given. bob iger today on the call gave a surprising mea culpa. he said, we tried too hard to limit attendance, because we thought crowds would be too big. they had a reservation system for the attractions. they have never done that before. everyone in anaheim raised hotel prices. they didn't have that other big attraction they were going to open.

people just stayed away. same at walt disney world in florida, he said people stayed away because they are waiting for that to open later this month. emily: let's talk about streaming. obviously, streaming is way down on some of the expenses this quarter, but disney firing a shot at netflix, announcing a price for not just one, but three streaming services in one. take a listen to this from the call. >> in the united states, consumers will be able to subscribe to a bundle of disney plus, espn plus, and add supported hulu for $12.99 a month. the bundle will be available on our november 12 launch date. emily: disney plus, their new service, espn, and hulu for $13? chris: yes, which is coincidentally the price of the entry-level netflix package. it is a direct shot at them. you're getting sports, kids

entertainment, and the hulu broadcast shows, that is about a 30% discount if you bought those three services together from the get-go. this is a huge push from disney to go after netflix. emily: let's talk about the film lineup. this fox film that was a flop, "dark phoenix," how can that outweigh hits like "avengers" and also them launching "toy story," "aladdin" in the same quarter? chris: disney has three $1 billion movies in the quarter, including the highest grossing over with "avengers." the prophets in the division were -- profits in the division were up, they admitted that the fox acquisition is costing a little bit more than they anticipated and that is going to continue some time. they outlined even wider losses in the next quarter. part of it has to do with the film library of fox.

bob iger talked about boosting the results for fox's live-action film business and said that could take a couple of years. emily: we will see if this quarter, with "the lion king," coming out, if that gives them a boost. i will let you get back to covering the disney headlines. emily: coming up, taking down a hacker with a tip line. using the old school to fight the high-tech. that is next. this is bloomberg. ?

emily: this is "bloomberg technology." i'm emily chang in san francisco. when you hear the words tip line, you are thinking about a police hotline to report a crime, or sending your local news station the lead on a story. but, they are also used by companies to expose cyber vulnerabilities in their own software systems. according to a 2018 report, 93% of the world's largest public companies don't have policies to handle such outsider tips. for capital one, they did, and that is what led to the arrest of the man who allegedly accessed sensitive data on more than 100 million people. to talk about this and more in the world of cybersecurity, roi

carmel, the chief product officer at cybereason, a firm that got a $200 million investment from softbank. he is with us from las vegas where he is attending the black hat information security conference. in new york, bloomberg's jenny surane who has been covering the capital one hack. we are learning new details on how capital one responded to this tip over the hotline. tell us what is the latest. jenny: capital one got this tip. it was in early july that an anonymous tipster emailed and said it looks like some of the data is available out on the internet, and the company was able to respond pretty quickly. two weeks later, they were able to disclose the breach and start working towards remediation. that was the unusual aspect of how this came to light. normally you see these hackers lying in wait for months and it takes a long time to respond, but this tip line was really instrumental in capital one having a quick response.

emily: roi, this is not typically the way hacks are discovered. how impactful or helpful can white hat hackers be in the future? roi: when you look at capital one or any other organization, they are dealing with any threat going from traditional viruses in the past to more creative type of attacks is the one we saw here. in this specific attack, internal information was leveraged and used it to get access to this kind of information. what we are seeing is more and more of the attacks are becoming driven by hackers or malicious players, what we call advanced persistent threats. the only way to find them is to have an intelligence way to look at the organization and actually understand the behavior and stop it. in this specific situation, the information was just posted on

the internet, so it was just visible. when it is not, the way to look at this is how the organization -- how the behavior of the organization changes and stop it there. emily: what if some of these whitehat hackers, supposedly good actors, come across sensitive information in their work to stop the bad guys? jenny: it is a great question and i think it is honestly a reason why you don't see a lot of banks adopting these policies and inviting hackers to find these vulnerabilities, because they are worried if that information gets into the wrong hands, they could the facing -- could be facing a huge liability. companies kind of deal with it in different ways. goldman sachs has a pretty explicit description of their vulnerability disclosure program on the internet. they say if you come across the information, stop and immediately let us know. it is kind of a chess game, in terms of assuming these guys that are really coming in to help your company are not going to turn around and hurt it. emily: now, roi, your company

actually installs software that aims to stop threats before they start. tell us what kind of hacks you have been able to discover with your approach. roi: ok, so, if you look at the type of technology cyberreason built, we took the type of white hat approach for being an intelligent system that looks of what can be a vulnerability and developed an artificial intelligence capability that gathers huge amounts of data, and understands that data in real-time, almost like 8 million white hats asking questions every second. and try to understand if there is anything weird that is happening that we need to stop. when you look back, we uncovered operation soft sale, which is the biggest cyber espionage that was ever discovered by a

nationstate attacking a commercial telco organization across the globe, in order to run an espionage campaign around specific individuals through this telco organization. the type of attack they had was actually a very slow and quiet attack into the organization. the only way to figure this out was to constantly collect this immense amount of information and understand behavior is changing and stop it right there and then. emily: you are at the black hat cyber conference right now. i have been there. i imagine there are so many different topics under discussion especially with tensions ratcheting up between the u.s. and china. you have this new national funding from softbank. how do you plan to deploy it, given the trends in cyberspace right now? roi: this is a pivotal moment for cybereason. we are extremely excited for this $200 million investment. we have three things we plan to do with the investment.

the first one is to expand our existing market globally. we are deployed on all five continents and multiple countries. we want to strengthen our relationship with our partners and dramatically grow our market motions. from a portfolio perspective, we are doing two things. the first is we are strengthening our position with in what is called the protection platform market and solidifying the portfolio we already have there. the second is we are building the next generation of autonomous security to allow artificial intelligence and machines to start protecting these organizations instead of throwing bodies of the problem. emily: roi carmel of cyberreason, we will let you get back to the conference. jenny surane continuing to cover capital one for us. thank you. wework is close to naming j.p. morgan the lead underwriter of its ipo next month, and offering expected to be the second largest this year. a relationship many years in the making.

jp morgan bought a stake in wework many years ago and it propelled the startup's growth more than any other lender. the bank will help the company line-up its most ambitious fundraising yet, a $6 million package that depends on the ipo's success. joining us from new york to discuss is bloomberg's sonali basak. what is the latest we know? sonali: jp morgan's relationship with we work spans much further than wework itself. when adam newman goes to the other banks, he pitches his own relationship with jamie dimon. the reason this matters is jp morgan has $40 million out in mortgages for adam newman's own homes. they have provided the financing for the money he took out against his own private stake he took out in wework. they have a very strong relationship. they are poised to lead the ipo. the reason wework is a prime climate for the banks is not just this financing or the ipo, it is the fact they are so capital-intensive. they will keep needing money.

that will keep driving a fee pool for these banks. emily: what is next? the clock is ticking. sonali: they said around september, any day now we could see the ipo. they have at least the filing for it. we had analyst day last week, so people got a glimpse of what they are trying to sell. the $47 billion in the last valuation, a lot of people are skeptical they could hit that in the next one. that means a lot for wework, but it means a lot for all of the banks that are really trying to place themselves well in the ipo race. if they don't keep on making these ipos work well for them, then it bodes poorly for the next set of ipos ahead. emily: how well does this set up jp morgan specifically in silicon valley given that morgan stanley has typically been the leader? sonali: very well. lyft did not do too well earlier this year, but neither did uber and morgan stanley was leading

that one. it helps them get on more high-profile deals. the other thing that is interesting about wework, people debate about whether it is a real estate company or technology company. a lot of companies are in this situation. are you an automobile company or technology company? for jp morgan to show themselves as a broader firm, to sell themselves as a technology firm, a high-growth firm which the market has had a lot of demand for, that is going to help them get pretty far. emily: bloomberg's sonali basak, thank you so much for stopping by. coming up, android everywhere. how google's mobile os beat out microsoft and apple to be the smartphone king, and making waves now. that is next. this is bloomberg. ♪

emily: amazon defended its use of sales data from third-party sellers in response to questions from a house panel conducting a broad antitrust inquiry of the tech industry. in a letter to the house judiciary antitrust subcommittee, amazon said aggregating sales data to bolster its private label strategy is a common practice in the retail industry. amazon's general counsel said, "it's important to note that private label products are a common retail practice, and that is good for customers and competition." google and facebook responded with their own letters. the representative addressing the congressman's antitrust concerns. joining us to discuss is mark bergen in seattle and shira

ovide with me in the studio. you guys have had a chance to digest this response. what is their argument? shira: the argument is a little different depending on the company, but what i think is true across all of the three, google, facebook and amazon, is the message that they are not that big, they are not that bad. they have lots of competitors. did we mention china? wave american flags. the end. emily: what about amazon's argument? shira: a couple different things. shira: a couple different things. one is amazon is trying to say you are looking at market share wrong. that if you look only at how much people are spending on amazon as a share of online shopping, that is too narrow. because if somebody is buying a microwave, the example they gave in their letter, you probably are not only shopping on amazon. you may also go look at that microwave at walmart and things like that. the other argument they make at amazon is basically the sellers,

the merchants that sell more than half the goods on amazon, they have the same access to information that amazon does. and that amazon is not using that data to determine when amazon makes its own version of a desk chair or office lamp. emily: is that a fair argument? shira: not really, to be honest. an individual seller does have information that amazon provides them, but amazon knows what every -- amazon has visibility into everything that is happening on its site and an individual seller only knows what is happening to their merchandise. emily: what about google's argument? mark: the questions looked at google's evolution from where they used to send out viewers and searchers to different websites to a world where a lot of the property now lands on google's own sites. they have their knowledge box. you can get an answer right there. their response was twofold, it send clicks to

other websites. also, websites can pull themselves from that knowledge box. their answer was was kind of revealing. they are effectively saying we are still driving a lot of traffic, but if people do not want to participate, they have a choice to back out. emily: speaking of android, there is another story out today that google is requiring its competitors to sign nda's as part of an android auction that will list alternative search engines as an alternative on android. tell us exactly what is happening here, because google's competitors are not happy about it. mark: they are not happy about it for a couple of reasons. one, it seems like we had great reporting out this morning that they are being forced to sign nondisclosure agreements. that is suggesting they cannot even talk about the eu, the concerns that they are hamstrung. the idea that this is set up like an auction. may effectively have to pay in order to get in front of

consumers, if you are opening up a samsung phone, say. the biggest reason why they are frustrated here is because google has had years and years with android of cutting these special deals with makers. when you buy a phone out of the box, you will have google as the default search engine, google apps. it is clearly something where a lot of consumers, their default is to think about search, maps, browsers, they automatically think about google. emily: shira, you have a great piece out about the history of android. you remind us that even at the very moment android hit the market, steve jobs was pissed. this quote from him -- "i will spend my last dying breath if i need to and i will spend every penny of apple's $40 billion to right this wrong. i am going to destroy android because it is a stolen project. i'm willing to go thermonuclear war on this."

you forget how colorful he was. how does the argument that steve jobs is making inform what is happening right now? shira: that is an interesting question. the argument jobs was making was two-fold. one is that android is a stolen project. that is how he felt. that it was an open ripoff of the iphone, and apple's strategy back then was to sue these android proxies like samsung and try to stop them in the courtroom. the other jobs also made was point android was kind of this horrible mess. it was bad for consumers because it was insecure. because there were a zillion different versions, and that often meant people buying android phones did not have the latest operating system with all the features and security. i think those are similar arguments being made now about android. they are all true, for what it's worth. those are arguments google has made to justify if it is making its own android hardware.

it does not matter because android wanted smartphones and people at thinking about what is next and i think the status quo is not going to change. emily: google taking another beating from the president today in a new series of tweets. it seems president was watching fox news when an ex-google engineer appeared claiming there was anti-conservative bias and that is why he was fired. we have that series of tweets from the president, mentioning this engineer, specifically saying at the very end, "very illegal. we are watching google closely." google came out with a statement that the political leanings do not inform the product, and if they did that would make the product worse. teeth to these threats from the president have given the looming antitrust investigations and the continuing scrutiny from lawmakers in general?

mark: it did not seem to affect their stock price today. i think it went up. i do think that they are much more concerned about the direction about the inquiry from the department of justice and certainly from congress than the y are from the president at this moment. politically, it seems like the president is using google and in general silicon valley, liberal leanings as an election issue. i think, if they are smart, google is bracing to continually getting beat up on this. it will be interesting to see if they come out ahead and try to respond to this more publicly. emily: mark bergen and shira ovide, we could continue this conversation but we will have to let you go. thank you. could israel be home to the next silicon valley? why the nation is being dubbed startup nation, next. this is bloomberg. ♪

emily: silicon valley is notorious for tech giants like facebook, google and apple. with a population of just 8 million, israel might not be far behind. according to the 2018 global startup ecosystem report, tel aviv has the highest number of startups per capita in the world. and israeli tech companies raised a record $6.5 billion in venture capital last year, up 17% from 2017. joining us to discuss is nir zohar, wix president and coo. wix is a cloud-based development platform in tel aviv and a huge company. tell us about some of the tech trends in israel that might surprise us. nir: i think the most interesting trend, israel has

been dubbed a startup nation for a long time now. what is interesting today that you see in israel is the maturity of some of those companies. some of the companies are moving beyond just being startups and becoming full-blown companies like wix and a bunch of others. i think generally, you can see there's a new generation of entrepreneurs that are less prone to trying to exit early and seller companies and want to build something bigger. something that can last for many years. as an israeli, my hope is someday we can see one of the tech giants coming from israel and having our own tech giant. emily: there's a lot of talk about trade. a lot of things happening geopolitically. what is the impact of the u.s.-china trade tensions, for example, in israel? nir: i don't think we have seen any real impact directly on israel.

i think there is some impact around currency. when israel has a stronger shekel, we pay salaries in shekels and make most of our income usually in u.s. dollars. that he can have an impact and put some stress on the local industry for the high-tech. so far, as much as we are feeling that, i don't think it has had a huge impact. emily: obviously, there are cities and countries around the world trying to re-create silicon valley. even cities in the united states trying to re-create silicon valley. do you believe that is possible in israel to continue to build the tech hub there that could rival the united states or china? nir: rival, it is hard to say. at the end of the day, there is the question of population. it is a much smaller population than either the united states and definitely china.

i do think in terms of per capita, if you look at the ability to innovate and generate tech companies, absolutely yes. what we are still missing, what i mentioned before, the bigger companies coming directly out of israel. hopefully, wix will be the first one. emily: wix.com president and coo , thank you so much. a swedish payments and banking firm backed by snoop dogg is now the most valuable european fintech startup. klarna now valued at $5.5 billion and it is challenging companies like paypal and square. speaking of the silicon valley beyond. that does it for this edition of "bloomberg technology." we are livestreaming on twitter. you can find us there @technology. be sure to follow our global breaking news network, tictoc, on twitter as well. this is bloomberg. ♪

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