helping our farmers who got targeted. now china is starting to buy our agricultural product again. they are starting to go with the beef and all of the different things, pork. very big on pork. but if you look and you see, and they actually put out a statement, but they are starting very heavy to buy our ag again. they want to make a deal, and they should want to make a deal. the question is if we want to make a deal. >> and a half take, is that passing enthusiastic congress? >> you know how i feel about and a half take. i think of his 29 worst trade deal ever made. the world trade organization was not one of the greats. that was a creation of china and it went like a rocketship from the day it was signed. that was terrible. we are going to find out. that is going to be a very interesting question with nancy, chuck and all of these people focusing on the witch

hunt, because they can't beat us at the ballot. they can't beat us at the ballot. and they are not going to win the presidency. e have internal polls from ohio, iowa, pennsylvania looking good, north carolina. we just won two races that a lot of people thought we were going to lose both races. one was down 17 points three weeks before the race, and he ended up winning by a substantial margin. dan bishop. and then we had a second race, as you know, and he was up one or two points and he ended up winning by 257 points or some incredible number. i will ask you folks. i don't want to be inaccurate. otherwise it will be a front page story. breaking news, trump exaggerated. he was leading by two or three, but he won in the 20's. so we are looking great in north carolina, looking great in florida.

and you had one or two congressmen, democrats saying listen, we can't beat them at the elections, so let's impeach him. al green, that is a beauty. he is a real beauty, that guy. but he said very distinctively, and it was all over the place. they are trying to lose that tape, i guess. we can't beat him. let's impeach him. that is pretty dangerous stuff. steve, go ahead. >> thank you, sir. you had expressed some concerns about the president of releasing the transcript, why don't you go ahead and do it? >> because i was getting such fake news. they are asking for the first phone conversation, and i will release that too if it is important to you. i had a question on a previous election plateau that he had hit.

the current president hit a couple of different plateaus, and i spoke to him previous to the call that we released, which was a very innocent call, a very nice call. as he said, i wasn't pushed, meaning pressured. he wasn't pressured at all. but i don't like the concept of releasing calls because when a president or a prime minister or a king or a queen calls the united states, you don't hike to say gee, we are going to release your call to the fake news media, and they are going to make you look like a fool. what happens is it is hard to do business that way. you want to have people feel comfortable. i hated it, but you folks were saying such lies, such horrible things about a call that was so innocent and so nice. lindsay graham said to me when he read it, very interesting, a good man, a smart man, he said i can't believe it. i never knew you could be this nice to a person. he said i cannot believe it.

i didn't think you had that in you to be so nice. i was nice. i am nice to a lot of people. people don't understand that. but he was shocked that it was such a nice call. he said there is nothing here. and all fair, people people say the same thing. precedent, like where you are dealing with heads of state and you think their call is going to be released. and we spoke to ukraine about it. mike actually called up his counterpart, and we spoke to ukraine about it. if they didn't want us to do it, we would not have done it. he actually said it was an innocent call. >> are you now braced for a long impeachment saga? >> i thought we won. i thought it was dead. the mueller report, no obstruction, no collusion, looking at all the things that

happened. corey lewandowski was fantastic as a person they were torre meanted. you look at all the legal fees. people came here with bright eyes. they wanted to make life so great for other people, and they left where they spent hundreds of thousands of dollars in leg fees that they didn't have. it is a sad thing. what these democrats have done to ruin lives is so sad. i have seen people with only good intention. they came to washington because they wanted to make the united states and the world a better place, and they went home, and they were dark. they got hit by mueller subpoenas. i think there were 2,500 subpoenas or some ridiculous number. 500 people were interviewed, and yet they don't interview david jacoby and his son? if you are a democrat, you have automatic protection. that is years and years of

people putting in certain people into positions. ut when you look at all of the trauma that these fakers have caused -- and the press. listen, much of the press is not only fake, it is corrupt. these stories they write are corrupt, and they know that. i used to get great press until i ran to politics. i used to be the king of getting good press. i was very good at it. they covered me well. otherwise i probably wouldn't be here. once i ran, i said boy, this is incredible. if you see the way they treat my family -- they used to be treated great. my family worked so hard. all of these people, they worked so hard. look, we have the greatest economy we have ever had. we have a military, $2.5 trillion, and we have rebuilt our military. you don't hear the vets complaining. we got choice approved. it couldn't be approved.

when you see what happened with he viciousness, and you see ad schiff go out and lie and lie, smart guy by the way. stand at the mic and act like he is so serious. he goes into a room with nadler, and they must laugh their asses off. but it is so bad for our country. rush limbaugh, great man, sean hannity said it, a lot of people have said it. they said they don't know if one man anywhere in the world, with all the men they know, or woman, that could handle what i have had to handle. true. that is i handle it. it is like putting on a suit. a question on the economy. a question on the economy? >> mr. president, b.p.ism tv from venezuela. >> you are doing well.

how are you doing over there? >> pretty bad. >> i would say pretty bad. sad. >> but we are fighting. >> it was one of the great countries, one of the richest countries not so long ago, 15 years ago. it is incredible. >> we are going to make it. >> i agree with that, and we are helping you. >> yes, i know. and thank you. >> go ahead. >> i have two questions. to russia and north korea, two of the most antagonistic nations in the u.s. interests. what can be done to contain this? what are they looking for in that country? and because they are special envoy said -- because their special envoy said the russians are wig to negotiate. that is one question. mr. president, you say the socialism is one of the biggest challenges. ou said it yesterday it in the

united nations. maduro is still a dictator full people in nd gentina and practices are on their way so socialism and populism. >> socialism will never happen to the united states. we have to use your country as an country of what socialism can do. it can tear the fab rib of a country apart. i know a lot about venezuela. i have had many friends of mine come from venezuela, many live in miami. a certain section of miami. i won't say the name. they are fantastic people, and they like this president. they like what i am doing for venezuela. we have venezuela very much in our hearts and very much in our sites, and we are watching it very carefully.

you know what i would say? we are giving millions and millions of dollars in aid. not that we want to from the meduro standpoint, but from a humanitarian standpoint. people are dying. they have no food, no water, no nothing, no medicine. the hospitals are closed or don't even have electricity. it is so sad to see. we have it say that under control. we are watching it very clairefully, and we are going to be -- we are watching it very carefully, including other countries that may or may not be playing games. >> but you know if russia is talking with the u.s.a., what can you tell about us? >> just put this in the back of your mind. it is all going to be fine. we know everything that you said, and it is all going to be fine. we are very much involved and we know what is going on. thank you all very much. thank you. thank you very much.

>> and you were just watching u.s. president donald trump at the u. information. he starred off talking about the economy, the strong u.s. home sales numbers, he touted some of his trade deals. then he segued into that investigation surrounding that call with the ukraine. he talked about how he asked house minority leaders to investigate david jacoby and his son, hunter biden and other democrats' ties to the ukraine rather than investigating him. he then brought out mike pompeo, the secretary of state and the treasury secretary to talk about iran sanctions on the economy. then he was back to talking about those investigations. still with us here to break it all down is bloomberg news national security reporter bill. bloomberg niece's 's

congressional reporter, who joins us from washington. bill, i want to start with you. this was a rather subdued trump from how we normally have seen him. he didn't have one theme that unified this press conference, but he did talk a lot about the investigation, a lot about this idea that in his mind the democrats should also be investigated for their ties to the ukraine. what is the story he is trying to get across with regard to the ukraine? >> politically, he is saying this is the latest teafment by the temperature kratz to distract from his achievements. he ran through a dozen and a half or more meetings with foreign leaders. he had his secretary of state and others talk about some of the things they have done on the side. but he did not answer the question when it was put to him about why it is appropriate for an american president to ask a foreign leader to do an investigation of his political opponent. instead, he said democrats have done some inappropriate things, but basically said they are to go the same thing.

it was a bit of a muddled message. it was his choice to release this transcript. he clearly feels like it doesn't show that he did anything wrong, but it has raised a lot of questions. as the president said, it has led to demands for other document and transcripts of other calls. this will play out over several days. >> what was your biggest take away from what you heard from trump? >> like bill said, we saw the president low energy and subdued. it was real interesting that he did hit all of his greatest hits. he talked about his electoral cejka victory, he talked about the wall. he talked about the agenda in congress and whether or not that is going to get done. one thing i was interested to hear him say was about the usmca agreement. he had said earlier he was worried-point state of that deal. he called it the and a half ake 2.0 with the impeachment procedure. he said that is going to be a very interesting question with

nancy and chuck focusing on the witch hunt. you can clearly see that the president is casting this as a democratic partisan exercise and something that is distracting from an agenda he would like to present as better for the american people. >> you mentioned we will have to wait to see how it unfolds. trump did say he would release our kainian call conversations. release other ukrainian conversations. >> right now there are six committees on the hill that will potentially be digging into this. the other question that wasn't asked of him that has been raised by this transcript is why the president is referring to his personal lawyer. urlacherly in these official calls he would say i would like you to speak to the secretary of state about this or another senior official, national security advisor. what was so unusual was him referring to rudy giuliani, and

rudy giuliani is going to be in touch. this is not what we are used to seeing a president say on an official call. these are all the questions that have been raised by the president's decision to go forward and release the transcript, and we are looking to hear more from the acting director of national spell janssen, if not tomorrow, at some point this week. >> the president it say there was no questioned pro kuo. vice president mike pence tweeted out while the president was speaking that the president it knowing wrong, just never ever happened. i think we all read this report here. in the past a lot of alfashions towards this -- a lot of the allegations have been sort of this rorschach test and you can read whatever into it. here you have the words of the president himself speaking to another fournette leader. how much of that has emboldened not just the radical left as president trump would put it, but some of the more moderate democrats to pursue this

impeachment process? >> that is absolutely right. we have already seen that division on the hill. we have seen house republicans come out in vigorous defense of the president saying there was no quid pro quo. there was no scompless it's connection between the pressure on the ukrainian president to investigate david jacoby's son and the ukrainian aid that had been held up just days before. nancy pelosi tried to get out yesterday saying it doesn't matter if there was an explicit quid pro quo in the conversation. it is self evident that the president's behavior was wrong. that is what the democrats have stuck to, saying if you just look at what actually transpired, the president very clearly pressured a foreign power to interfere with a political rafer. that is wrong, and it rises to a level we can ignore anymore, and there is a constitutional duty to impeach. >> and we will be talking about it for the next days, weeks and

months. great to get comments from anna egerton, and bill. that is all from what you missed. we are joining "bloomberg technology" in the united states already in progress. >> jemile had a lot of regulatory hurdles that investors in the company thought that the previous c.e.o. didn't handle properly. this is quite a fall from grace. the company had been valued at almost $40 billion when atria first invested, and who is to say what the value is now when countries like india are banning the vaping product. >> you have a former executive taking over. what are the plans for this c.e.o.? what did he do with ju everyone l? >> he is viewed rays sort of a safe hand to oversee ju everyone l's transformation. he had been at altria for many

years, and he had actually helped oversee some of the regulatory approvals for icos, which is the product that philip morris international is now rolling out in the u.s. that is viewed as a safer product, at least in the eyes of the companies compared to vaping. so he has that strength in washington to deal with regulatory issues, but it remains to be seen what changes he can make quickly because the story seems to be getting worse. >> i am glad you brought up millsap morris, because they announced they were ending the merger agreement they were in with altria. am i correct in saying that the merger is off and the c.e.o. is is stepping down, and tying those two together? >> it is certainly no coincidence. while these are companies that maybe are destined to be together at some point, now is just not the time because of all these negative headlines

and read winds around julul. en altria invested, they didn't know it would get so bad with nine deaths. it is not the time to announce a $200 billion merger with that much uncertainty. >> and philip morris has that pocket. they said they are now going to work on getting that into the u.s. and work with f.d.a. regulators to get that proved. any sense now about the extra competition that creates for ju everyone l? >> icos has been around for a while, and it was supposed to be the hot new thing before vaping came along with ju everyone l. the companies seem to be excited to roll it out. atlanta is testing it. i have not used it myself, and i am curious how -- you know, what will people be smoking exactly? it is heating the tobacco, but

not burning it, so it is supposed to be a miler inhale. we will see how customers react to it. >> liana baker, thank you for joining me. coming up, online dating service match, are they using scammers to fatten the bottom line? that is what some are saying. this is bloomberg. ♪

match group fell after the u.s. federal trade commission accused them of tricking consumers into paying for subscriptions. according to the f.t.c., match.com exploited messages from fraudulent accounting to induce non-subscribers to sign up for subscriptions. to discuss, i am joined by david. what is the f.t.c. arguing here? >> so this case comes down to

how match treated subscribers to its dating site, match.com and non-subscribers. what the f.t.c. says is that for non-subscribers who got messages or likes from people on the site, it was very often the case that those messages were coming from scammers and basically fake acounts on the site -- accounts on the site. and matheny when these messages were weren't, match would advertise to the users, you should sign up for a paid sun prescription to see this message and see this person. but those were fake accounts, and so the f.t.c. says this was a way to get subscribers up. on the other hand though, those messages that went to subscribers, they never saw those messages. so they are saying this was deceptive to the consumers who

weren't paid for paid sun prescriptions. > david, is it quantity flying for us how much match walking able to pad the bottom line because of this? > the f.t.c. didn't cite a amages figure. damages figure. they did cite about half a million user signed up for paid sun prescriptions in basically a two-year period based on messages that were linked to fraudulent accounts. in the lawsuit, one of the things that the f.t.c. is asking for from the court is obviously an order to prevent -- or an order to prevent match from continuing these practices, but also redress for onsumers who lost money. is match saying for their part? >> they came out with a pretty

lengthy statement saying that this is a baseless lawsuit, is they intend to fight it in course. hey say that the agency is misrepresenting e-mails that they got from the company. match also sort of touts its ability to shut down fake accounts that are on its site. they cite something like 96% of fake sites are shut down right away. and they also say that this conduct is based only on match.com and not tinder. >> david, it is very interesting. analysts came out and said this was previously disclosed in the company's 2018 financial report. coming out and g out and

saying this f.t.c. suit is not new news. any sense that the f.t.c. is behind on this, and this may not actually be new? >> well, no, i think you saw the market reaction today. the stock dropped pretty significantly. it did recover afterwards. even though it was disclosed, companies will typically disclose investigations a lot. but this was today, the filing of the lawsuit. this is actually the f.t.c. taking actions, going a step further than just simply investigating. now of course it is up to a judge to decide sort of what happens next, and it is very possible that the case could be thrown out. but this is a significant action when an enforcement agency sues a public company. >> talking about all things dating sites, that was david mclaughlin. thank you for jong me. coming up, drop box. dropping details on its revamped services. we will hear from the c.e.o. next. this is bloomberg. ♪

taylor: dropbox is going be filesharing. the san francisco-based company announced new services wednesday, including a new lets workershat collaborate on projects with their colleagues. dropbox's ceo joins us now. talk to me about dropbox spaces. what does this do? >> it has been a great day. we announced dropbox spaces, which is one of the biggest changes we have ever made to dropbox, and it is our first

step toward building what we call the smart workspace, which is a calmer, more focused work environment, and changes from -- changes the dropbox experience folder full of services.loud dropbox is becoming a new kind of app that brings all these other kind of apps together and cuts down on the noise and makes smarter. taylor: talk to me about how you are building on current customers or if you want dropbox .paces to be new customers >> we have built our entire business on collaborating on files, but with the smart workspace, we are going beyond that on a bunch of dimensions. first is supporting every kind .f cloud content

second is it is a much more engaging experience. in addition to the content, you can see all the conversations around it and the context around it and send someone a message from dropbox or see your calendar or start a meeting. we found users struggling to piece this together. taylor: talk to me about topline revenue growth. when we dig into your financials, very strong double-digit topline growth. some analysts say it looks like it could slow to the midteens. what are you doing to maintain that topline revenue growth? with a huge start opportunity. in many ways, dropbox spaces

expands on our opportunities because any companies or many teams need to collaborate on files, but every team needs to collaborate around content, so we start with solving a problem that every person in every company has, and with the new dropbox and the spaces, we are evolving the experience. we now have a new generation of our product that does a lot more for our users than we have in the past and now our focus is getting in into people's hands. taylor: analysts are starting to forecast what could be your first annual profit in 2019. are you on track to reach those goals? a it is a testament we have really efficient and scalable business. balancing growth and profitability has always been important to us, and we have in many ways applied the consumer and our playbook to business software, so we have this really efficient self-serve motion where people spread the product for free and that is how we have been able to reach -- that is

how we have been able to grow the business, and it has worked really well. taylor: there's been a lot of scrutiny recently on unprofitable companies. about 18en public for months or so. what has been the biggest challenge? >> it has been pretty straightforward for us. in many ways, we lay the tracks for being a public company years .efore we ever filed for an ipo the biggest challenge is actually something that i think is healthy for us, which is it's like being drafted into the majors. there's a big scoreboard. we outperform. it creates a big sense of urgency. on the one hand, there might be parts of that which are challenging, but i think in a lot of ways, it builds a healthy discipline into what you do, creates a lot of urgency. joiningthank you for me. coming up, cyber security firm crowd strike found itself in the

middle of the trump ukraine scandal. we will hear exclusively from the ceo next. this is bloomberg. ♪

taylor: it's the phone call summary read around the world. yes, that's the one where president trump asked the president of ukraine to work with his personal attorney and the u.s. general attorney to investigate joe budden. "i would like you to find out what happened with this whole situation with ukraine. they say crowdstrike. i would like you to do us a favor. i guess one of your wealthy people, the servers, they say ukraine has it." two address this, i would like

to welcome the ceo of crowdstrike. can you first react to those comments? >> in 2016, we performed a d&c investigation. we worked closely with the fbi over all the forensic data and we stand by the conclusions we have and they were backed up by the intelligence community. i think a lot of what we have done has already been said, and do nothat, you know, i understand where we are with things. it goes into broader comments about where you think your company fits into general election security. we are approaching 2020. >> election security i think is an important topic. if we think about how electronically connected we are are voting machines and we past the hanging chad's of yesteryear, i hope, but when we think about the ability to protect those systems, it is incredibly important for our democracy as well as the

integrity of the election itself, so it's a big topic. taylor: what is your role in working with, let's say, federal agencies like the fbi or with the dnc or the rnc? where do you see yourself playing a role? >> we are certainly not partisan, so we help all sides of the aisle and work closely with a lot of state, local, and federal government agencies to make sure they have the best security in place going forward. taylor: i could do financial analysis all day long, so let's dig into summer earnings and what we can expect from you. talk to me about topline growth. i'm looking here, really solid, triple digits. expected to slow maybe a little bit in the coming years. where do you see sources of future growth? >> one of the things when you look at crowdstrike is its ability to cross sell modules. that is an element of success.

the security cloud really had not been done before when we started, and part of our success is being able to collect data, security telemetry at scale and be able to cross sell that into our customer base. if you look into our most recent earnings report, about 50% of our customers have four or more of these modules. we have 10 of them today. that has worked out in our favor in terms of being able to go back to our customer base in addition to new customers. taylor: has this shift to the cloud provided a lot of future opportunities? >> absolutely. i think that's one of the areas where we have seen a model we have created as a true native architecture be embraced. it's one of the reasons we have been so successful. it is not just about endpoints and laptops and servers. it is really about protecting workloads, and those could be on premise or in a cloud like amazon or the google cloud, and

that is really important. you have to be able to protect these wherever they are at. taylor: when we look at bottom line, not profitable yet, but losses are slowing. what is the pressure to be profitable? isthe way we look at it first, unit economics. we have really good unit economics, and some of the legacy -- i call fossilized vendors get acquired, change their business model, try to move to the cloud, which is difficult for them to do. we think it is a great opportunity to go out and get new customers. we added 730 new customers last year, over double from the year before. as long as we continue to increase the rate of adoption of our technology, we will continue to invest there, but the amount of money we spend on sales and marketing from a unit economic perspective is right where we want it to be. on the upward end

of efficiency. taylor: does consolidation help or hurt you? >> i think it is a net positive for us and a natural evolution of this market. if you look at what happened in sales force automation, the natural comment around that is that it was hard to shift from a perpetual model of legacy architecture into something that is cloud-based and truly subscription-based. a lot of the companies you talked about were having a hard time making the transition in the cloud architecture as well as their overall revenue model and had these mixed subscription models. taylor: it has been a tough year for some companies that maybe are not profitable, valuations still too high. any advice you can give on how to ride the wave? >> first, you have to start with a great company, and i think the element of a great company that ride that wave, they have something to do with the cloud. they have a subscription revenue

model. they have high retention rates where they keep adding new modules, and i think those are elements that make you successful. i think the market is smart enough to figure out what companies have great earnings potential in the future, and those are the requisite characteristics we have seen, and we are fortunate enough to fall into that category. taylor: thank you. still ahead, amazon is focusing on alexa privacy as it unveils new gadgets in seattle. we bring you the latest on the newest alexa products next. this is bloomberg. ♪

taylor: on wednesday, amazon introduced the echo studio, a high-end speaker to rival the apple home pod and google's home max. the new device looks similar to the homepod, making it noticeably larger than any existing echo. the speaker cost 199 dollars and

is available on preorder on wednesday. i asked about the changes. we have really taken a different take on how audio is developed. basically, we have five speakers built into it, three midrange, that gives the sense of the music surrounding you, kind of how the artist wants the music to be portrayed and we think that is an industry first and we are looking forward to seeing how customers like it. taylor: you are taking on big rivals. are you happy with your penetration rate? >> we think this is not a winner of all. game, first you mentioned one of our great partners in sonos. we think customers want selection. think customers want choice, and we are looking forward to

it.ng if they like taylor: the pricing is interesting to me. it feels like everyone is really trying to be competitive here on pricing. are you worried that it is a race to zero? don't think so. we try to price our products with as much value as we possibly can. taylor: i was chuckling a little bit when the headline cross that will now tell when i'm frustrated with her. how will she be able to tell that, and then what does she do?

>> we built a pretty deep machine learning model to be able to recognize when customers are frustrated, and it is important to realize we are not checking if you are frustrated with the world around you or detecting that or somebody in your family. we are only detecting when you are frustrated with alexa herself. when that happens, we want to kind of teach alexa to autocorrect herself. the example i showed was a music example. we think it will be valuable on the path as these digital systems, alexa specifically, become more conversational over time. what new privacy controls have you added with these devices? >> we did a lot on privacy today. we added new utterances that allow you to ask alexa, tell me what you heard, so you can clarify that. you can ask alexa in coming months, tell me why did you do

that, so if she does something euro think is right you can understand context, and we added a new feature at our privacy hub that gives customers the ability to delete their auto utterances on a rolling window. taylor: in between that rolling three or 18-month window, confirm for me if there is audio listening, transcribing, recording before i delete those. >> we have a different setting, and i think we are first in the industry to allow customers to opt out of human beings annotating any voice recording that we might have. you can also turn that off if you want, but some of the personalization of the service or some of the capabilities of the service will get worse if you do that, but because -- but we want to give them the option. we have always had from the beginning the ability for customers to delete any single utterance, any group of utterances, or all utterances of a button, and

those are in the alexa privacy hub. taylor: why is it opt out instead of opt in? >> like i said, a lot of the capabilities we get from those voice recordings makes the service more important. we just launched hindi in india last week or maybe two weeks ago. we know that in the first three months as long as we have enough data, that the service is going to get something like 33% better, more accurate on behalf of hindi speaking customers. if we did not have that capability, we did not have those voice recordings, we could not make those improvements. the state of the art of the science would not allow us to do that. we hope customers will come with us on that journey and be able to have us do that to improve the service. if they don't want to, they can opt out and delete their utterances, and everything will

be fine. taylor: as we talk about the competitive landscape and pricing on all these devices, i wonder if hardware is profitable for you. >> we have always had the same business model when it comes to hardware, which is we strive to break even. where we want to profit is if customers use the device downstream. i mentioned kindle. we do not want to make a lot of money when we sell you the device, but if someone chooses to read books and likes books, we will make a little bit of profit from each book they choose to read. we think that is super unlined with customers. if they put it in a drawer and don't ever use the device, why should amazon get any profits from that? we were not successful in delivering what we wanted. it also has a side benefit that we do not invite customers to upgrade every year. we don't have to. we continue to update the software on our devices to make them better over time, and we think that is a very good business model that aligns us

with customers. taylor: that was amazon's senior vice president of devices and services. , myiscuss wednesday's event next guest joins me. what was your key take away from the new products you saw today? >> i saw amazon doubling down on two things. one is cementing the relationship we have with alexa in the home by giving us a new use cases for existing devices as well as new devices to expand if you like, alexa's capabilities within the home and allowing us toe take alexa outside the home. that so far has been a bit of a challenging situation. right now, alexa is a little bit trapped in our smartphones that are with us and a lot of hours in a day and have other

s on them. taylor: are you worried about pricing? i'm looking at the echo studio undercutting the homepod. is this a race to gain market share? >> i think it is more about inking, what is the product for amazon? for me, when i look at what they bring into market, the product is alexa, not the actual from ae, so for them, pricing perspective, that is the strategy. it is going to be much harder, to your point, about race into the bottom for hardware vendors that do not have a service that comes with that device that do not add a way to earn more , tonue from that service obviously be competitively priced. taylor: what are your thoughts on the penetration rate of amazon's in-home devices relative to apple, relative to google?

>> if you look at the competition between the three, i would say over the past six to eight months, it continues to consolidate between google and amazon, amazon because of the broader range of products and price points and more time to market as well. i think outside the home is obviously a different story with google assistant and siri being more pervasive. for apple, the question, especially after today, to your point about home pod versus studio and their price point, it will be interesting to see how apple responds if at all with a cheaper home pod. taylor: i asked if hardware was profitable, and he said the goal was mostly to breakeven. is that good enough for you?

like i mentioned, it is good enough when you look at what else the hardware is driving, which is engagement with the brand, engagement with amazon.com, which is engagement with other services like prime music, possibly now music hd, so there's more that comes after they sell the hardware, and it is not something other hardware vendors have. taylor: how do you feel about data privacy? this is opt out, not opt in. is that ok? a consumer perspective, it is an extra step. you would think the other way around would be easier, but at the same time, if you always have me opt out, if i don't think about it, my corrections with alexa do not necessarily get better. i think transparency is the key to all of this, so as long as

i'm aware as a customer of what the privacy settings are, then i should be good. what i liked today was that they nownew utterances that i have with alexa that do different things. they give me peace of mind because i can ask alexa not just to delete my data but also why she responded or it responded to something i said. i get engaged with her, so my relationship continues, and at the same time, i get educated so that for a lot of customers, i think there's concern with lack of understanding. taylor: creative strategies principal analyst, thank you for joining me. that does it for this edition of "bloomberg technology," and "bloomberg technology" is livestreaming on twitter. be sure to follow our global news network at tictoc on twitter. this is bloomberg. ♪

paul: welcome to "daybreak australia." i'm paul allen in sydney. from: i'm shery ahn bloomberg world headquarters in new york. sophie: i'm sophie kamaruddin in hong kong. we are counting down to asia's major market opens. ♪ paul: here are the top stories we are covering in the next hour -- talking trade. president trump switches tony at again, saying a deal with china could happen sooner than anyone thinks. progress, too, on a deal with japan. a limited agreement is signed after washington withdrew the threat of