and clearly some of the tech companies don't either. the news value there is that they have a platform, and that they are gathering and so you can't ignore it, even if you don't agree with it. >> pew tube is one of many alternative sites popping up. this is cody wilson. i spoke to him years ago when he was working on a pretty controversial project. >> i think i'm known for one of the more radical free speech activists. >> he was dubbed one of the most dangerous people on the internet when he posted instructions showing how to 3-d print a gun. >> fascists probably. >> he's a very famous troll. >> yeah. you get somebody like -- it's nice endorsement. >> one of the worse trolls on the internet. >> i think so. >> mr. spencer i think is considered a pretty successful troll. >> keep in mind his ideal is to have a white ethnicity. should these people get a platform and where should the line be drawn? >> are you worried some of this will incite violence? >> no. i'm not worried about it. i mean when i'm talking about like -- outside someone's ho

growth, tech growth versus let's say chinese tech what i've got here are the names you know and there are six of them. and they are big and important and they are all appreciating aggressively let's go to the next slide here are six others, you know them five of these, the largest five stocks in the s&p. then there's this smaller guy, netflix, but important nonetheless. six u.s. tech stocks worth $3.4 trillion those asian stocks were worth $1.2 trillion. now, let's look at a few charts. here is five years what we've got is just what we were discussing as a group there. chinese tech, massively outperforming this u.s. basket take a look at the past two years. again, chinese tech, outperforming. let's bring it in a little closer here is the past 12 months, almost a double. this is where it gets interesting. i'm going to do a one-year chart. instead of two lines comparative, i'm going to look at relative performance of chinese. what we have now is not two lines. simply the six chinese tech stocks this is relative performance to the u.s. basically what we have is the following situation. t

companies in tech and outside of tech are very happy to have a lower tax rate.ven as you said, a lot of these companies are not paying the 35% statutory rate because of tax breaks and other reasons. emily: what about repatriation? how much will this bring back -- $4 trillion as donald trump said? shira: i am not sure where he got that number. there is several trillion dollars that are permanently invested overseas. but companies like apple have done stealth repatriation. apple has $250 billion or so parked overseas. they also borrowed $100 billion in the last few years to do things like buying back their shares, issuing dividends. you can look at that as a way to repatriate money without paying tax, which is what apple might be able to do under this proposed bill. emily: there was concern over stock option legislation that was not in the house bill. it was dropped from the senate bill. where are we with that? shira: it was the start up -- startup immunity's worst nightmare. one said, there was a version of this in the house bill that looked like it would force p

but i will read the tech coverage of the most important news on tech. it takes a lot of time. but i learn things. i am interested in tech, so i'm interested in the approaches of different people. host: in a recent column you wrote about tech companies, that we have now in consumer tech a an oligopoly. walt: we do. host: expand on that. walt: speaking from the vantage point of somebody who is about to retire, who started writing about tech when i was 44, i was already pretty old. i had done 20 years of non-subjective straightforward washington reporting. i can tell you the first year i started as a tech columnist, if you looked at "pc magazine," the biggest deal at the time, they had an annual issue where they reviewed each of the computer manufacturers whose products you can buy in the u.s. there were 72 or 75 of them at that time. there was no internet. there were very few companies. there were some software companies. very few companies did services and web things that we think of now. no facebook, twitter, itunes. none of that stuff. they were reviewing computer companies.

megan is here to tell us who made the cut in tech. so, megan, who made the cut in tech?well, someone you are just talking about, elon musk. i am personally thrilled to hear about the transit between o'hare and the city. when you look at what he did this year in the rocket space as well as in the driverless vehicle space, he was a clear choice for us. he is someone who, even when we tried to make a list where you get rid of the usual suspects, he still stands out. another one, jeff bezos. of course, amazon, the washington post, and now potentially the total reinvention of the food and grocery market with the stunning move into whole foods and that space. i think we are all watching to see what shakes out there. those are just two of the people who stand out from tech as well. emily: other tech notables, the founder of softbank trying to negotiate a big stake in uber as we speak, the senior vice president at google. david, what do you make of these picks? david: i think they are great. i think maybe it's the first list of this type in a long time that didn't include mark z

>> i don't think they impact tech as much as one would think. don't forget smaller companies aren't profitable. startup companies aren't profitable for years they have losses they are caring for. corporate tax rate not a big benefit. anyone who lives in new york state and new jersey and california is going to suffer. that's going to be negative for states and i think it's the wrong thing to do. overall i'm concerned about the deficit. it's not the right tax plan going forward. i don't think it will be beneficial in the long run. >> also i want to ask about the tech environment overall you've been behind companies like mongodb, tech database, orac oracle, digital media is having a hard time. guilt group in retail. see what's happening in amazon is this an environment in which big guys have gotten too big for smaller companies to win or does innovation have a chance because there's enough big guys fighting each other. >> i think innovation is doing great. there are hundreds and thousands of smaller companies doing very, very well. i didn't worry a

tech companies. at the end of the day, you know, there's new policy around a general data protection that europe is going to institute in may of next year. facebook has said they are going to be compliant with it, and as long as the tech companies, u.s. tech companies, are exerting force in their marketplaces around advertising or kind of how their businesses are being run, i think you're going to continue to see this kind of prickly elationship, and so as far as the substance of what's been said today about germany and facebook, i don't think there's anything there that facebook needs to worry about. >> but, michal, i remember when what's app and facebook first linked up. there was this sort of idea that data was going to be segregated and what's app wasn't going to put advertising in the app and that was sort of a somewhat of a benefit to europeans, who use what's app a lot more than we do in the u.s sort of the sense that facebook snuck in this provision later saying, oh, well now we're sharing th

what about the other big tech names? that have to do with what we were seeing with apple or what is happening or not happening with tax reform? abigail: a little bit of both. apple, the downgrade, investors are wondering if that is a sign of what is to come for the other big tech names. facebook, amazon, netflix and alphabet -- there could have been that. plus, idea that all these technology companies already have low tax rates so less likely to benefit. that could be a small piece of it. a bit of a risk for all these high data names. we had tesla trading lower on the day. ups said they have commissioned 125 of thoser electric vehicle trucks. one thought could be that production for this company has had its issues, so maybe investors are thinking that is a high bar for the company. relative to taxes, while there does not appear to be an electric vehicle tax credit ding in the current tax overhaul, the fact that has come up, that it should be limited to 270,000 vehicles, that could be something investors are thinking abou

. >>> model secretly hired to mingle it bay area tech parties. mingle it bay area tech parties. we ask, is this really a if you encounter a downed power line, mingle it bay area tech parties. we ask, is this really a you need to stay away from it. call 911. let our first responders come out and handle it. police and fire will respond as well as pg&e. pg&e will make the scene safe. ♪ if you are in your home or your first step is to get out, travel to a safe distance until you can't smell the gas anymore and then call 911. the first responders will come out and they'll make it safe for you and your community. space.. says his dog saved his life. it happened earlier this week on east 12th street in oakland. both the dog and owner are now recovering from bullet wounds. kpix 5's christin ayers has their story. ((pkg))if it wasn't for the dog, >>> the dog and the owner are recovering from bullet wounds, christin ayers has the story. >> if it wasn't for the dog i wouldn't be here. i would not be here at all.>> reporter: he is still shaken and shocked after what happened to him and his

here we are, tech is hot fintech's hot.now, cryptocurrency, blockchain, just change your name, and it's a thermometer and people should be really nervous about that thermometer because what it says is people are way too excited about technology >> is that possible, mike, to be too excited about technology >> it is possible to be too excited about technology investments. the ones that are available and to overpay for them, yes. >> like 1999, late '90s. >> you know, when 30% of the s&p was in technology sector in '99. i don't know if i can diagnose the issue as being that in bitcoin. honestly, i almost wonder if the very low volatility environment we've had in traditional assets is almost kind of creating, sending the gamblers somewhere else and had this tremendous kind of world-changing cover story that says this is going to be the future. this is the ground floor of the next internet. what's interesting is when you had the ground floor of the past internet being created in the early '90s, nobody was talking about it so it's

tech giant's ipad.d for a trademark and can appeal the decision one more time in the e.u.'s top court. the united nations designated 2017 as the international year of sustainable tourism for development. airbnb is using the u.n. guidelines to showcase its potential as the top sustainable option. we sat down with airbnb's global and policy public affairs head and began by looking at the , company's growth. >> what is really interesting, we are seeing travel called the flyover areas, and also an emerging economies. if you look at a recent report, it shows 250% growth in indianapolis, indiana. what that speaks to, the network effect of the platform, those are places that have been traditionally underserved. hard for those hotels to justify buildouts. when you have the indianapolis 500 or the big ten football championship you see our , platform spring to life. emily: you are expanding in asia, africa, the pacific. what is the biggest challenge? chris: for us, it is just the pace of the growth. that is a hig

all tech is about 20% plus of the s&p 500.o, at some point, we are going to see investors slowing down investment in these companies. it seems like we ask that every year and every year tech keeps getting higher and higher. michael: part of it is that you are dealing with companies that are so dominant in these businesses. if you look at between google and facebook, they totally dominate all digital advertising. 75% of digital advertising. if you look at apple, you can look at all the super cycles but the reality is apple delivers the highest priced phones. and the entire ecosystem around it. in a lot of ways, these companies are unassailable. their growth will continue. emily: we saw what happened with apple earlier today. where do you see weakness? michael: the biggest weakness will be as these companies are moving into international markets, they are facing very tough competition. if you look at alibaba, jd.com, tencent, these companies are not just staying at home. they are moving beyond. i think we will see a lot more of

. 0ne woman in tech, especially a woman of colour.my co—workers put his hand on my bottom and i remember at that moment thinking whoa. in hindsight that was unacceptable but in the moment i was a deer in headlights. thank you for your time and getting involved. let's see what happens next. we are setting up a base camp at the playground, an incubator for start—ups in palo base camp at the playground, an incubatorfor start—ups in palo alto com plete incubatorfor start—ups in palo alto complete with state—of—the—art 3d printers. they are fighting the battle of the boardroom on different fronts. roman and italia have decided to work together. we will be narrowing it down into something we can accomplish in a few days. we are not going to break the glass ceiling inafew not going to break the glass ceiling in a few days. you are going to have to pace yourself. yes, it's really easy to get carried away and say i'm going to do one more thing, then the next thing you know it's four o'clock in the morning. and royal will lead a separate work s

but it is going to be, it takes high touch and high-tech.ple coming in, we have to do a great job. we have many million mobile customers and digital, and we have to do a great job. alexa and erica in the build, we will interface alexa and the iterations here, but it is really using all the number one things is you have got to have the customer. number two is you are investing far before to change the -- before the activity change is material. so all the digital locks that we have, apple pay, android pay, it is still a small percentage. it is growing. and someday a decade from now it will be a big number, but you have got to work, you have got to have it in order to make it go there. it is growing 100% year-by-year. it, but still, it is a minor amount of payments that go on in a consumer's account, large because we don't know how to use it because we have got to help them use this. tremendously great product for customers. we just have to drive it out there. so technology without that human adoption both from a teammate or not is important. w

the christmas day is over and retailers are stockings to see if they've been bad or good this season tech has been top of many christmas lists we'll check in with the trends also coming up china's new silk road can one hundred billion dollars revive the oldest trade route in the world and. sells how the self-styled home of father christmas finland is drawing tourists from all over asia. and on the winter and this is your christmas business update he made a list he checked it twice and now father christmas can put his feet up meanwhile retailers will be taking stock of the run up to the seasonal festivities retail chains and department stores sold a lot of books toys and gadgets more people than ever also went online to buy items for their family and friends the german retail association says online sales increased here by ten percent this holiday season to twelve billion euros. and many of the big money spending products are from the world of tech from both the serious and the city. look at the little drummer boy playing without a drum set he's playing on free drum using sensors to track

and many of the big money spending products are from the world of tech from both the serious and the city. look at the little drummer boy playing without a drum set he's playing on free drum using sensors to track a drum his movements high tech his fun throw in a roller coaster at copenhagen's to fully you can ride a dragon through a fantasy world or enjoy the thrills of a hyper realistic london skyline adventure when in fact you're laying in an advanced swivel chair. virtual reality made a big splash in twenty seventeen but not only for thrill seekers v.o.r. is a learning tool to this shirt lets you look inside the body a lesson in biology ready to wear. wearables were all over the place dressing humans in east and dogs with a collar that connects to g.p.s. and other devices. and if wearing your tech isn't personal enough for you how about implants chipping people sounds like an orwellian whoreson ario but it's quite practical. once chipped employees at a swedish company can open doors with the swipe of a hand employees are thrilled and want to be heard on the future and. a future w

everybody is bullish on tech, facebook,apples, others. you say no way, not from the individual stock standpoint but tech is going to be a loser in 2018 why? >> you know, so i can't disagree on fundamentals. i fully agree on the fundamental story for tech i think it remains intact and will remain that way over the coming quarters. the part that concerns us is a little more when you look at positioning and relative valuations in the market, sector versus sector. keep in mind that, again, the secular growth names, tech, he can father there as we will have been the key leaders so far this year we're basically getting closer and loesser to the finish line is an important trigger point for rotation in the market that we've been arguing for the last few months we've already seen pretty violent moves in the market in the second half of november, early parts of december and money flowing out of tech. it's not a concern on the fundamental sided. >> you think if there's a sell on the news of a tax plan like this one that tech is the most vulnerable

the ceo of models and tech calls for models brand ambassadors.ech savvy educated, attractive men and women.>> to join our agency they have to have an education. >> reporter: she says her bottles are hired to help businesses, not socialize. she has had to reject firms that have asked for more. diana, a tech entrepreneur who holds workshops about sexual harassment in silicon valley says see -- she is not the price. >> they are now brought to the valley, which is the glamour and sexiness. >> reporter: she says this trend is only growing in a male- dominated industry.>> they are not only dealing with the gender ratio, but make sure they retain these guys. >> reporter: she says modeling agencies i -- say it has been a record year for them. >>> holiday traditions and golden gate park, 500 light were eliminated at mclaren lodge. also in the park, they flip the switch on a brand-new light display with the conservatory of flowers. celebrating the natural wonders of winter. >>> there is lighting events going on all across the bay area. it is need to see be

back to the top tech story of the day.s tapped into the travel industry yet again, naming barney harford as its new coo. harford will oversee the company's food delivery business and serve as dara khosrowshahi's right-hand man. this news comes the same day as the ridesharing company took a major hit in the eu. the eu court of justice ruling uber a transport company, after another court rejected its claims to be a tech digital service provider. what is your take on this? is this just about needing another grown-up in the room? is this about his background in the travel industry and the future of uber as a travel company? >> this is someone that dara khosrowshahi knows well. he worked for him. there was a transaction of companies between them. this is someone who has competed against dara khosrowshahi. this is someone he has a lot of trust in. when dara is away, as we saw with the case, for example -- dara was in london, dealing with london regulators, at a time when they were in crucial negotiations with softbank over softb

vote however, josh, it's the rotation out of technology, again, that has us asking the question is tech now firmly out of favor, or is this just a rest and people will come screaming back in. >> so firmly would probably be a bridge too far but out of favor today, sure, and by the way, this looks like a repeat of an episode that we saw on wednesday of last week, so you look at, like, for example, s&p value index, which just breaks out the value stocks within the s&p, up 1.2% and s&p growth up 0.4 or flat. >> this is more than a one-day thing, right >> the banks -- listen. >> this is tech down 3.5% in a week. >> amazon in a 6% drawdown which slashes its year-to-date gain to a pitiful 52%. that's what we're talking about here these are stocks that have gone up by orders of magnitude all year and within the last week or two people are falling in love with other sectors like financials and industrials and transportation, and then have you this other thing going on which is only tangentially related which is a big bounce in retail names i think a lot of that has to do with seasonality and sho

the ceo of models and tech calls her models brand ambassadors tech savvy educated attractive men and women. >> to join our agency, they have to have education or be [ indiscernible ] >> reporter: but she says her models are hired to help businesses, not socialize. and she has to reject tech firms to wanted more. >> they, um, requested to have models where [ indiscernible ] >> it's the new hollywood. >> reporter: this tech entrepreneur who holds workshops about sexual harassment in silicon valley says she isn't surprised. >> the things that came to hollywood are coming to silicon valley the glamour and sex. >> reporter: this trend is growing in the male industry. >> this is a way that companies are trying to not only deal with the gender ratio at the parties, but, um, make sure that they retain these men. >> reporter: maria medina, kpix 5. >>> tree lighting ceremonies in the bay area continue as christmas gets closer. last night a monterey cyprus with more than 500 lights was lit at golden gate park in san francisco. beautiful. >>> elsewhere in golden gate park, the switch was flipped

the purple line is the tech sector. tech gets really hurt. joining us is david lafferty.t strategist. it's good to see you. the rotation, how much of that is based on emt? david: if you believe in momentum is a factor, that has been one of many factors driving the tech sector this year. it's been a juggernaut. it's hard to explain it in any other fashion than to look at what was happening in terms of the snafu and them leaving it out of the bill. it's hard to explain it any other way. the sector has been leading the market and dragged back so quickly. alix: even though it was supporting the market, i found it interesting. nothing really happened to the s&p. it was modestly weaker. we would have expected a big selloff. is that a rotation? david: i think we have to be careful with rotation. we find it to be an attractive sector, but investors have to remember the tech sector is dominant. it's almost one quarter of the s&p. it's very hard for the market to do anything attack isn't at least claim along. what we saw yesterday with financials picked up the slack. it's heart of

this is the tech sector on top this is relative performance to the biggest sector, to tech. energy on top. here we go now, this is the key to the whole thing. s&p 500 energy, which again has all the look of a bottoming out. but important, not only is it going up it's starting to outperform the very thing that dominated the market it's a nascent bottoming out action let's go to the chart itself here is a five-careyear chart you can draw the lines this way. we've clearly broken above trend. that's an important development. that's energy. and now take a look at this. this is the whole story, right brian was just talking about it. you've got cloudy i'rude oil an got energy the presumption is energy stocks will go the way of crude you want to be overweight this in 2018. >> you could look at the march 72 1/2 call, spend $2 for that the options are quite cheap, 15% implied volatility off an all-time low of 13%. the options are quite inexpensive here the other reason you don't reach out and buy the stocks is despite the fact that spot crude, the near end of the curve is more than 20

relative performance to the biggest sector to tech.nergy on top. here we go this is the key to the whole thing. s&p 500 energy, which, again, has all the luck of a bottoming out. not only is it going up, it's starting to outperform the ver thing that dominated it market it's a bottoming out action. let's go to the chart itself here's a five-year chart you can draw the lines this way. we've clearly broken above trend and that's an important development. that's energy and now take a look at this and this is the whole story, right? brian was just talking about it. you've got crude oil and you've got energy the presumption is energy stocks will go the way of crude i think you want to over weight this in 2018 >> mike, how do you trade this >> the way i look, you could look at the march 72 call, spend $2.50 for that the options are quite cheap here, a volatility off of an all-time low of 13%. so, the options are quite inexpensive here the other reason you don't reach out and buy the stocks is more tan 20% higher if you go out five years, fiv

should the tech giant be worried.nd more from our best conversations of the year with candid discussions with c palmer and meg whitman. the sector outperforming the broader market, breaking records , up nearly 30% for the year -- i did not see the final numbers, -. pretty dam close to that it was a really amazing year. just across the markets, i think. you have been investing in tech as long as i have known you. what a run. david: it was a good run, but it .as a nasty close today in the scheme of things, i think what really distinguished tech was that growth was scarce and secular growth stories, as characterized by -- corey: you mean topline growth in technology? david: i mean topline and earnings growth and the stalwart in the just cap -- the stalwart and the largest cap name in the s&p was apple. corey: it also seems there were not -- at least i did not notice -- there were years when software and service was the thing. there were years when hardware or even consumer facing stuff with the thing. this year seemed to

big tech got to raise that. last few days, coming back a bit today, all of them up 1%. all of them up 1%. is this an occasion where you buy on the dip? we have seen a dip. >> we have seen a different. by quality on the dip. a third or so of tech stocks are at new lows the last 20 days. i want to say let's let that get to 50%, let the big market tech stocks settle out, pick the all-stars, pick amazon which i own, pick something like apple which i don't, something like microsoft, the ones that are going to be there. google is an astonishing stock, pick the winners, don't just buy everything. stuart: retailers were beaten-down something rotten and in mid-november, off they go to the races, some are up, abercrombie 34%, macy's up 8%, would you touch any of them? >> some of those like penny and macy's i would not touch but that is because i don't think they have their customer anymore. one out of 10 americans worked in retailing and retailing is an enormous gigantic business and is not going to 0 tomorrow. there are

according to goldman sachs, the tech sector already benefits from a 24% effective rate.ordes of cashhe stockpiled overseas. big tech stands to benefit from this legislation that allows them to defer taxes on foreign earnings until they bring them to the u.s. at rates of seven point five to 14.5%, down from the current 35%. >> if we get this passed, we have to as a country, it is going to bring back $4 trillion back into this country, which right now cannot come back. >> in our view, it should be a repatriation. andhould be a required tax so, you are not asking the people that have had earnings from their international subsidiaries if they would like to bring back money. current bill would be a voluntary repatriation. telecom firms could win big if enhanced deduction for the capital expenditures make it into the final bill. the radically allowing them to -- for now, the waiting game goes on until the final bill hits the president's trophy. -- desk. administration wants tech companies to bring back their overseas stockpiles of cash and keeping companies like apple from fle

susan is here with more on these tech holiday party models. >> well last night we told you about howot only being paid to talk to men at these parties but they are being told to lie to them about who they really are. we wanted to know how women in tech felt about this so today a ceo gave us her take. >> it is sending the wrong message because if executives are paying for these models to participate and entertain men, it's a very subtle form of exploration. >> she says she was enraged when she heard the news that they were hiring models to attend holiday parties and socialize with male employees. >> were you surprised this is still happening in the end of 2017? >> i am absolutely shocked and -- because of all the headlines that you see everyday, not just in the tech industry but in the financial industry and the entertainment industry you think that people would get a clue >> she is the ceo and founder of girls in tech. a company that helps tech firmty verse guy their staff and is working to create change in this male dominated industry. she founded the company ten years ago. >> i've

are perceiving tech. seems to be a bipartisan frustration with tech. democrats not trusting it now because of their investment with the 2016 election, or their infiltration during the 2016 election. then republicans see it as just out of touch with america. this liberal part of the country, and then liberal op-ed pages interestingly are using words like, evil and not your friend, when it comes to big tech. so as the person who represents a good portion of silicon valley what is your response to those sorts of criticisms? >> well, i think we have to some some nuance. first, these companies are still widely admired. i think apple and google have over 80% approval ratings and i'm reminded in congress we have an 11% approval rating. that said, look, they have to do better. there were mistakes made. they didn't do enough to have third party verification. if someone goes on to your show and if i make a claim, it will be verified on social media. there were no mechanisms to verify it and they didn't do enough in

s&p for what must was think as tech stocks is even more tech than 25%.s are a lot overweight tech. the biggest group in the index. great year for them, we lose as the nasdaqon is the tech index and the s&p is everything else. they are converging. tech gained about 40% as a group and the s&p 500, its gain was double the s&p 500. arenasdaq, the weightings catching up. scarlet: there is performance and valuation. if we see that they are that distinct, if you overlay valuation of the tech stocks versus the s&p 500, we get something that shows it is not all that concerning. techel: you look at the valuation, nothing to fret about. if i were to extend that i would say nothing to fred about more than fretting about the overall market. -- both veryth richly valued. on a relative basis -- simply because especially looking forward, tech is projected to have the strongest earnings growth going forward. is regulations. everyone assumes the regulatory rollback is a great thing that lifts all boats. not so sure about tech. if you think about net neutrality, there is a

on the tech side, it remains a struggle. of computer science graduates today that our women, compared to 35% in the 1 980's, when the field was smaller. blacks and hispanics are not represented in computer science. in order to hire computer scientists, we have to persuade more women and underrepresented minorities to going to computer science. we take that really seriously at facebook. we have a large facebook internship program. we hire people from all backgrounds. we started going earlier in the program. we created facebook university, tried to find women and underrepresented minorities, who we thought could be great at computer science, but were just starting in the field, so we could get them earlier and invest in them and try to keep them in. we have a large computer and science -- pewter science and engineering program. -- a very large computer science and engineering program. if you go to computer science class, but you don't have enough women, you can be in a lean in circle of computer scientists, where you are seein

the tech giant -- can the jets -- can the tech wrong?ve the analysts plus, amazon celebrate a very strong holiday season. we will look at how the smart home tech gadget fits into amazon's plans for 2018. bitcoin, what a ride, rallying ? at 16,000 after last week's big selloff. what does this mean about the bitcoin bubble? first to our lead. apple analysts lowering the iphone x shipment projections for the first quarter, citing weak demands during the holiday season. shares falling more than 2.5%. 10 million fewer units will be sold in q1 2018 compared to the current quarter. blaming the phone's higher price and lack of interesting innovations. joining us right now is alex. covering apple for us. we talked about this on bloomberg radio a while ago, and this is really interesting because it is a projection of what is about to happen in the quarter that starts next week and what just happened. alex: it has been one of the concerns heading into the christmas quarter. of course the iphone x was released six weeks after the iphone 8. there was

we are often the place where china makes the world's tech, where china makes the world's tech, wherenew smartphone is born. they make loads of phones in this factory. to keep ita of phones in this factory. to keep it a secret from all the other workers, everything happens behind the blue shroud of secrecy. are you ready? thank you. come in. welcome to production line 27. the phone sta rts to production line 27. the phone starts life as a tiny camera and then gradually assembled around this production line, which means by the time it gets to the end, it is a fully featured phone, just about there. this is the reason china has come to dominate electronics manufacturing. a ready supply of a disciplined, relatively low—cost workforce. each person has one uniquejob that workforce. each person has one unique job that requires concentration, speed and precision. a single speck of dust in the camera lens and the finished phone would be rejected. what i have found most surprising is it is all people. i would have thought with this high pressures “— would have thought with this high pressures

happy tech giants taken much action since people started talking about this —— have the tech giants?hange, not as much of their would have liked. they are taking westminster seriously. it all seems like a small dispute far away. the difficulty is taxing them. the treasury knows how difficult it is to get internet companies to pay out, their business models are not like previous business models. their bases are often overseas. he is hoping for some kind of windfall tax. if he has a real idea of how you extract hundreds of millions of pounds from apple and google, he needs to talk to the treasury who have not been able to crack this.” suppose technology has been moving so suppose technology has been moving so fast. it is leaving people who are trying to fight, people taking advantage of the internet, and that global audience. they cannot keep up with things. what he is saying is that the government, because they cannot access these sites and services like what‘s up, they are having to invest in human surveillance, which is really expensive. there is a place for that. he is saying hundr

the tech selloff in the u.s.tinues through asia after the senate tax plan was seen hitting some road bumps. chip companies were some of the worst hit with the s&p 500 semiconductor index down by five out of the last six days because of concern about the alternative minimum tax. where is that money moving to that is leaving the tech stocks? the reason i ask is we called this a rotation. it seems more like a selloff. ,f that money is going back in what are investors buying? mark: your observation is fair. there are two different economics. there is a rotation out of stick -- out of tech stocks or growth stocks and we are seeing a rotation. there was -- after value stocks underperformed and it got a surge yesterday as we are seeing. overall we are seeing money, out of u.s. stock market, it did not trade great yesterday and there is more negativity that tax reform spurred the economy so much. after the bill passed in the house that week as well, u.s. stocks surged and finished the week lower. we are seeing a repeat h

, fang, was down 1.9% or s&p tech i should say.ang was even worse. then that move into media which the old media stocks -- i watched discovery -- >> discovery was one of the best performance stocks. >> amc, by the way, discovery is a malone company think they have a high tax rate? that's not even -- had nothing to do with fundamentals, heavily shorted stocks that have not seen a lot of love that we're getting movement into them and meanwhile the big tech names were taking on the chin. it was nasty. >> what's good is their opening down every one of them. if you start looking at 2019 numbers, which for a tech company you're going to do, you're going to see astonishing things i was working on alphabet last night. what do you think alphabet trades at if you get the decent number 120, 119 it's 21 times earnings 21 it's not just a search company anymore, it's heavy into the cloud. it's heavy into youtube, we saw those people have to be added but clorox sells -- colgate, huge premium to these stocks product tcter is that right the answer

but not everybody is convinced by the tech—based solution.country. and does everyone have smartphones? she has one, but most people don't. and if there is one at home the men gets to use it, that is the issue as well. at the end of the first day there are still lots of questions about the e—book. tech experts work through the night to try and show the others what might be possible. we are here to see which capable... the tech sector in india is growing fast. internet use here has risen by 90% since 2015. to open up minds... but will that be enough to persuade the others? it's day two and the experts have stepped out of the building. don't get any ideas. they are still brainstorming, but it is now fuelled by a strong cup of delhi chai. ladies, delhi chai! having heard more about the e—book, the team think a powerful way to use this tech would be to tell her own story. but they also need something that could appeal to the next generation. and to find out more about the challenges facing younger women, we've arranged for them to meet priyanka. s

you are seeing this tech route continue, big-name tech stocks like tencent, but there has been buying energy space. you can see consumer staples and industrials looking quite good in the region. of the overall markets, the tech rep continuing, so no surprise apple suppliers coming under pressure. there has been a rebound in china stocks, particularly defense stocks rallying and does electric vehicle suppliers coming through as well. australia's market is down, but retail sales better than expected out of australia. the cash rate on hold at 1.5%, so the aussie and kiwi getting a boost. let's have a look at the stocks we have been watching. that tech route is continuing, flowing through to japan, sony off 1%. tencent under pressure. samsung down by .6% in seoul, korea. the southchs saying korean semiconductor industry has more upside, so just a little selling in that stock today. baic motor group in hong kong up .2% after an upgrade to outperform has this continuation comes through from the fact we are hearing china could be planning more tax cuts for that electric vehicle move. there a

and this is relative performance to the biggest sector to tech. energy on top.ere we go again as all it look of a bot m bottoming out. not only is it going up, it's starting to out perform the very thing that dominated it market it's a bottoming out action. here's a five-year chart we've clearly broken above trend and that's an important development. that's energy and now take a look at this and this is the whole story, right? you've got crude oil and you've got energy the presumption is energy stocks will go the way of crude i think you want to over weight this in 2018 >> you could look at the march 2 1/2 call, spend $2.50 for that the options are quite cheap here, a volatility off of an all-time low so the options are quite if had expensive. the other reason you don't reach out and buy the stocks is more tan 20% higher so we have this inverted curve a lot of times people will say that is bullish when you start to trade than in a more normal tangle but the fact the elongated stuff hasn't gone up is why the integrated space isn't my favorite >> it's going in the

large cap tech, material space, industrials, the trump play.o everything is in question that's the first thing that people go for is where they have their gains, where they saw their growth coming from and they attach to that. >> steve grasso of stuart frankel. >>> there's a few economic reports on the wall street agenda the november adp employment report is out at 8:15 eastern followed by revised third quarter productivity and labor costs at 8:30. on the earnings front, brown-forman, h & r block, american eagle outfitters are set to report before the opening bell broadcom and lululemon are out after the close. >>> shares of dave and busters are shooting higher. landon has the details >> shares of dave & busters moving higher. the arcade operator posting earnings of 29 cents a share topping projections of 24 cents per share. rer nekne revenues missing slig same-store sales down as hurricanes took the toll on the business including a delay of a flu openi new opening in puerto rico steve king says he plans on opening 14 new stores this year repre