[captioning performed by the national captioning institute, which is responsible for its caption content and accuracy. visit ncicap.org] ♪ >> i am in san francisco in for emily challenge. this is "bloomberg technology." coming up, tech stocks on the move. the u.s. and china agree to that ne of a trade deal includes splectwal property. simmering tensions. continuing to floor between alphabet and management.

we will hear from the former workers who say they were wrongfully let go. from digital taxes to drones. prm boris johnson cements his desire for brexit with a sound victory in the u.k. we will discuss what it means for the u.k. technology sector. first our top story and it is all about trade. stocks index, which is a bell weather for sentiment, closed at a record today, but today it has been under performing, and that is unusual given the trade deal. it is a sign the market may be skeptical of this deal. abigail is here to explain what is going on. what do we know about what is and is not included? >> lots of confusion on the day around the deal. with it, up and down moves for stocks. one thing, probably most important for stock investors and financial mark investors is the fact that those december 15 tariffs are not going into place. that is a big relief.

we know that the 25% tariffs on $250 billion worth of goods, that is staying in place. the 15 prlings on $110 background of foods, those are being rolled back to 7.5%. that is a bit after compromise. some had been hope fog a full roll-back there. turn, china has agreed to buy agricultural goods. president trump is saying $50 billion. net-net, the meter average is flat on the day. not enough to produce some sort of a news event, not enough to produce a rally. but to your .on the stocks, it is interesting to see that they under performed. that could have to do with the fact that they were rallying on the week. maybe that bell weather of senlment, a bit of news there.

>> taking a page, look at this chart that i am showing inside my terminal, which s and p relative to the shanghai composite. it is u.s. versus china. does anything about this chart change for you today? >> yes, a tiny bit. it is a subtle nuance. as we talked about the other day and you were saying brutal for china stocks there. the u.s. was dominating. since the beginning of the trade war, china stock hits, down about 10%, u.s. stocks up 1%. however, there does appear to be a small amount of bottoming. china stock up about 1.8% relative to the u.s., call it .8%. one day a trend does not make. we will need to see china stocks continue to rally more than u.s. stocks to make any sort of meaningful depth in that chart. stay tuned. >> i want to push forward to

apple, which we are going to highlight in our next seguin i am because apple was excluded from a lot of those tariffs you mentioned. gene, a guest on the program, said that apple could be one of the best performers next year. how is apple set up as we go into 2020? >> that is a pretty bold called by gene. this is a megacap stop, more than $1 trillion market cap. up 74%. that is saying you are going to ve one the biggest companies rally in a big way after a rally. they need fundamental drivers. they avoided that $150 billion tax per i phone, plus not having their profits shaved by 4%. so that is positive. now we have to look forward. we are in their all important holiday quarter. they have to hit the numbers. this past year if you recall in january of this year, 2019, they cut guidance.

reactions this year have been on a series of low numbers. it sets up 2020 for's korvers, but they are really going to have -- for easy comps. >> abigail, thanks for joining us. i want to stick with more on apple. because the company avoided the 15% tariffs on its most important products like the iphone, ipad and mac books. i want to bring in mark. what do we know about how much this could now be a boost to the margins and bottom line given we have avoided this 15% tariff? >> i don't really look at it as boost. i rookie at it more as a status quo. instead of having that margin crushing hit, the e.p.s., which estimates come out 4 chrs, there are estimates this would cost additional taxes on

iphones between there are 100 and $150 depending on the model. they are missing out on that, and that is a positive. revenues are going to be in line. they are going to come in between $86 billion and $90 billion for the quarter. you will see a smooth q2 as well. there will be strong conps because of the slow down. all things considered, it is a positive and mostly drew stanton us kuo for apple because of the trade deal. >> we knew they weren't going to pass on the extra $150 to the consumer. they were likely going to eat the cost. were they pressuring the suppliers to avoid the impact on some of their own financials. how was apple maneuvering around this? >> historically in terms of tariffs, it applies to the apple watch, ipods and homepods as well. they have raised the prices on

some of them. there is a more expensive tie tan yum tier and gives back on the margin side for them. then you have the air pods pro, which is $90 more expensive. they are expanding the lines, wanting to get improved margins from the supplier side but actually keeping the prices mostly the same for the consumer. i feel like if they have raised prices on the consumer side, what the customers are paying for, that would be a bigger hit than from margins being hit from the friffs in the first place sticking to those prices is important. >> mark, we do know this is temporary, and we would be waiting for an indefinite delay in the tariffs. for now that is not likely. do you get any sense that tim cook's relationship is strong enough with president trump that even if the trade fights were to continue, that apple would be exempt given tim cook's relationship and continued conversations with the president?

>> there is evidence out there that tim cook is one of the tech c.e.o.'s or one of the c.e.o.'s in general that trump has a good relationship with. you see the whole microsoft/amazon situation with that big government cloud deal. he clearly does not like jeff bazos, does not like the washington post. there has been a lot of speculation about microsoft getting that deal. that jedi contract it was called because of that. tim cook had that big press conference with trump. he stood there silently as trump went off on nancy pelosi and the media. that is a really bad look for apple, but it paid off in the sense there probably was some influence on the back channeling side from tim cook for the u.s. to get a deal done with china avoiding apple and all the other companies involved in that list of products. >> mark, thank you for joining us. and now i want to push this alford to 2020. we are hearing about phase two.

more specifically, about how cywer may be impacked. let's bring in our person to discuss. what are you hearing about phase two and cyberrelated issues? >> what we are hearing is the i.p. staff is a really important part of this trade deal. what is interesting is that i.p. theft has been an issue for the u.s. for years. in 2015 under the owe palm administration, the u.s. and china agreed to stop -- agreed to a norm that would stop i.p. theft for commercial gain. that was the last major deal we have seen on i.p. theft, which is taking stpwhreaktwal property through cyber means. here we are looking at a deal that would involve intellectual property again. it will be interesting to see what the sides agree to. >> any sense of what is changing, in is in the talks.

is there a renewed agreement from what you just discussed? >> it remains to be seen. what is interesting is that some say that china has sort of ramped up that i.p. theft again. some are saying that there was a drop-off after the agreement saw en in 2017-2018 we additional i.p. theft. however, others say what china has been doing is sort of in the kind of espionage that nation states do. the obama administration agreement was about i.p. theft for commercial gain. the question is, is there going to be any kind of broadening of that terminology, or is it a renewal of that agreement? e are watching that closely. >> keeping us updated on the

2020 trade progression. thank you. coming up, the strain continues to grow between alphabet employees and management. we will from a former worker who says she was wrongfully let go. that is next. if you like bloomberg news, listen to us on the radio, on the app, and in the u.s. on sirius-xm. this is bloomberg.

>> the communication of america workers union filed a complaint on baffle of google employees who were fifed. they argued they were fired over illegal retaliation.

google cited clear and repeated violations of data security policies as the reason for the termination. joining us from boulder, colorado, one of the former employees, redick came rivers, and mark is with us, who coffers google. rebecca, i want to start with you, and thank you for joining us. walk me through your complaint on why you think that you were fired for activism in stead of the data security policies that google seems to kulemin? >> of course. the data security policy vie layings are nothing more than a red herring put out by google to try to silence us activists and organizers at google. many people at google have done similar if not the same things that we have done that are supposedly against these data security policies. these policies were actually applied consistently across the board, if they were, you would see a lot more than four

individuals being fired. >> so rebecca you would continue to claim that you ever violated any data security violations, correct? >> the data security policy itself is inherently flawed. it is vaguely written and written in such a way that it can be selectively enforced in the way the google executives wish. documents can be receipt actively classified as need to know, which can therefore know that anyone looking at any document can be fired for ccessing a document they thought they had legitimate business reason to. >> what are you hearing about when those data policies were enact the? >> we have a story up this morning about this. the company has said and kent walker has said to both employees and publicly that it is a long-standing policy.

our reporting this morning suggest that the people we have talked to and the messages we have seen, is there a lot of employees who agree with that. it has been point, made clear. they think it is a newer version of a policy or they have never heard it have before. there were a lot of employees that spoke up publicly inside the company saying hey, this feels very disingenuous to us. >> i want to bring up google's statement. we did reach out to them for comment, and they said this is individuals who were engage ts in intentional and repeated violations of our long-standing data security policies, including systemically accessing materials and work. no one has been debating the company's activities. can you walk us through that statement? > google has not confirmed this with the employees they have dismissed. the company sent that memo out to all their employees about

this. they are taking a firm stance. i think that what we talk about in the story this morning is google has changed quite a bit from arguably from the search engine it was 20 years ago and even a few years ago. it is more into more business like the cloud business, more similar to microsoft amazon. we are seeing the leadership trying to impose a cultural change that reflects that change. >> rebecca i want to bring you back in here. mark brought up the choud business, which has some of the tension surrounding the activism. what do you say to critics who say that frankly google is paying you to do your job, not to be an activism investor, but paying you to create programs that reward shareholders. how do you respond to that? >> well, i want to remind everyone that most google employees are also shareholders. google has just as much of a

responsibility to answer to our requests and demands than any other shareholders. but back to your main point, i think that sort of the culture at google has been shifting a lot over the last few years. a big part of that is alphabet insistence on driving profits. it is coming at the cost of colorado tour and worker rights and psychological safety. i think if they keep going down this road and disregarding workers and their genuine concerns over the company's businesses, they will be ushing away a lot of the great talent of the year. >> rebecca, what would you like to see from this complaint? what is your end goal? >> my end goal would be and acknowledgement by google that they have taken some missteps in this process and a

commitment that they will, you know, listen to workers' complaints, concerns about not only their psychological safety in the work place, but also what their products are being used for. none of these products at google were made by a single person, and a single person shouldn't be determining who is and isn't allowed to use these products. it should be collective decision made by all the people involved in this company. >> mark, this is not the first situation. we have talked a lot on this program that rising tensions frankly with all big tech between management and employees. what is being done by google to address some of the growing frustration with the culture change going on in the company? >> the company says we continue to have a lot of different after news, formal, informal, for the employees to raise issues they feel morally concerned about or about the

work place. n.r.b. has found that google employees have a right to speak up about working conditions. that is going to be an important case for these charges going forward. think the company has changed a little bit. some of the previous mentions of management say our doors or open. they met with some leaders around the military project. they haven't been as willing to sit down with some of the activist leaders speaking around the issues that rebecca talked about. >> thank you to former google employee rebecca rivers and mark from bloomberg. coming up, a car break-in that has left tens of thousands of people's data compromised. and "bloomberg technology's" on twitter. follow our breaking news network on quick take on twitter. this is bloomberg. ♪

>> facebook has been under fire for exposing its users personal data. but this time around it was the company's staff information that got out. almost 30,000 workers had their personal banking data compromised last month when a thief took corporate harbaugh an employees car. here is kurt to discuss the incident. one saga after another. how did this happen? >> when i first found out about this, i did a you've got to be kidding me kind of thing. we talk about facebook and personal data all the time, but employees own personality daily. this employee who works in the payroll department had all these hard drives, probably brought them with her to do work at home either over the weekend or in the evening, and someone smashed the window of the car, grabbed the bag with the hard drives in it. by the time facebook did this

forensic analysis to realize what was on those hard drives, they realized it was a lot of personal banking information. >> a a few things causality our eye. one that the hard drive data was taken out of the office and into the personal car. facebook has not commented on the details but has hinted that is not allowed. it should have stayed in the building? >> that was not policy. an employee should not have had that kind of personal data outside of the office and off campus. definitely not unencrypted. not only were they stolen, but the ere unencrypted so data would be easy to access. they said the employee was reprimanded. >> this struck my eye because acebook said it was sort after random freak accident. yet -- and i know we are not law or crime experts, but the odds of someone finding an employee who they knew had that

unencrypted data in the car and breaking into that car felt more real than chance? >> really? i was kind of feeling the other way. living in san francisco for a few years now, it is not that uncommon to be walking by and see windows broken open. i know i have had a bag stolen from a bar just right down the street, believe it or not. i can see how this kind of thing could happen. if it was someone who was targeting this employee, facebook has not said that, for the record. but if this was the case, that would be a pretty impressive swipe. >> let's get back to facebook here. what do they dough next? we have the employee information that was sfolen. what do we know about that data that was stolen and what is facebook doing? >> because this is payroll data, it is sensitive stuff. bank account numbers, last four digits of peoples social security number, payment information, bonus information,

all the intimate financial stuff that you don't want in the wrong hands. obviously that poses some couture risks to the people whose data was stolen. facebook has given employees a couple of years of identity theft software. they encouraged people to talk to their banks to make sure there are no fraudulent charges to their account. once stuff hits the internet, you can't really get it back. >> the saga continues, crime and facebook. that is "bloomberg technology's" kurt wagner. coming up, it is my favorite part of the week. it is our weekly tech week in review. we are breaking down apple, and that big peloton short position. that is next. this is bloomberg. ♪ here, it all starts with a simple...

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>> this is "bloomberg technology." i am taylor. let's get back to our top story of the day, that interim trade deal signed by president trump. it means apple and other companies avoid tariffs on their products. it averts 15% duties which could have added as much as $150 on the price of your iphone 11. hire to talk about this and other top tech stories of the week, dan of "bloomberg technology" alistair. you are the kin of apple. let me start with you. it isn't really a boost, but it is sort of maintain