Nondisclosure agreements to join the android option. Some are calling the move another example of strongarming the competition. First, what a difference a day makes. Major markets have closed in the green after mondays recordbreaking losses. Tech can be partly to thank for the turnaround with apple, tesla, cisco leading gains. The s p closed up 1. 2 while the nasdaq closed up 1. 4 . Should take investors be popping the champagne just yet . Joining us to discuss, bloomberg Senior Editor michael regan. Should they . Ke they can at least breathe a little bit of a sigh of relief. Tech was the leader yesterday mainly because people saw that fix the chinese currency sunday night, monday morning china time. It was a dramatic move, the weakest fix for the currency on basis since 2015 and it allowed the currency to drift above that seven level compared to the u. S. Dollar. People thought that was a line in the sand. Fix, the peoples bank of china fixed the currency below seven. That is psychologically important. It was clear they werent letting the currency drop in freefall. That was important part take investors because so many of these Companies Get so much of their revenue from china. 15 from that get china. It is a lot of brand name tech companies. A lot of the semiconductor stocks. Apple, tesla, a lot of very important tech stocks derive important revenue from china. Today,w them to rebound it is still down quite a bit from the highs in july. Semiconductors dropped 12 from their highs at the end of july. To see a rebound of about a percent and a half today is not necessarily sending the all clear signal just yet. Emily how much does this simply have to do with the level at which china fixed its currency . Mike today in particular has a tremendous amount to do with it. There was that concern in particular not only that the fix was so weak sunday night, monday morning, but that this was the start of things to come, that they would allow the market to push the value of the currency lower. China took some steps, sold some , sucked up the liquidity on the overseas currency of the offshore yuan. That really made people start to believe that they are not going to let the currency go into a freefall. Emily what are the safe havens in this moment in time . Mike outside of the stock market, we have seen a tremendous amount of money poured into the bond market. Falling to the lowest since 2016. Gold trading near a fiveyear high. Itself,he stock market theres a lot of debate about where safe havens are. Utilities have gotten a lot of money but they have really become crowded, trading at high valuations for the utility sector. Real estate, the same. People are really trying to figure out where a good safe haven is in the stock market. Emily thank you so much for that context. First met donald trump the chinese leader said they had 1000 reasons to make the chineseu. S. Relationship a good success and no reason to break it. Today, thais are at their lowest in decades and ties are at their lowest in decades. On monday, the u. S. Labeled china a currency manipulator, sending Global Markets into a tailspin, further escalating the trade war. Bydiscuss, we are joined edith young. You split your time between the United States and china. Give us your view of what is going on on the ground in china. Called china a currency manipulator. In china, a lot of them call them a tariff manipulator. Against the Technology Sectors particularly in china. What has been going on banicular with the huawei created a strange sense of National Pride and support. A lot of the chinese public felt bad for huawei. In the last quarter, the mobilephone sales increased about 4. 6 . So chinese consumers are sympathizing with huawei, buying huawei phones more often than they would have. Does that mean they are not buying iphones . Edith i love the iphone and i still think it does well in mainland china. Overall, just the stance of wanting to support a local brand and really feel bad and feel they are the victim of this tension. Emily how does this impact and will this impact. Obviously there is a lot of crossborder investment. Edith to start with, for andcon valley, in 2015 2016, certainly a lot of chinese in silicon shop valley. Having said that, even though they certainly see the u. S. Committee for the u. S. , a Ripple Effect and specific funds from china, very specific companies. Think about alibaba with money m,andma recently moneygra or recently with grindr. It sends a strong signal that chinese vcs arent welcome in Silicon Valley. Emily how about calling china a currency manipulator, which trump threatened to do for a long time but didnt do until this week . Edith the way i usually describe, many years ago, President Trump had this deal called art of the deal. Two the chinese people, he is playing the tactics just like he said in the book. For the Chinese Government, is playing the long game, sort of the art of war. I dont the get will be easy for the Chinese Government to compromise in easy way and in any way and they will continue to fight. Emily how does it impact where you are putting your money . Edith we invest in both china and the u. S. When im talking to my fellow vcs in china, if you think about it, the strongest ipo from s,ina in the last two year many of them do go ipo on nasdaq, and they are logistics focused, automotive. Their target market is actually not the u. S. At all. Now, instead of coming to the u. S. , a lot of the chinese vcs are thinking southeast asia, latin america, brazil, germany. Emily would you say we are in the middle of a tech cold war with china and, if so, how does it end . Edith it is unfortunate what is going on now. It pains me being someone who has spent time on both sides. In the Venture Capital community, i think the communities will mix as much. It is not saying that any Silicon Valley startup really needs chinese money anyway, nor does chinese startups need u. S. Money, but we would like to see more collaboration. Cold warhe socalled will segregate the communities. Emily what does it mean for innovation . Both countries are less innovative . Edith at the end of the day, technology is not a zerosum game. Siliconcontinue to see. Alley u. S. Who anyone in the wants to play games. Google and facebook have been for a long time in china anyway. Edith yeung, partner at proof of capital, thank you so much. Amazon looks to attract talent in arlington, virginia, home of its second headquarters. We will speak to the person in charge of hq2 developing plans and hiring. This is bloomberg. Emily welcome back to bloomberg technology. Talking about amazon now. A new program out to retrain workers, train workers from childhood to career. Amazon dedicating over 700 million to provide people across its corporate offices, tech hubs, and Fulfillment Centers with Training Programs that will allow them to move into more highly skilled jobs within or outside amazon. One of them is about is called amazon future engineer, a program to educate and train kids and young adults from underserved and low income communities. Earlier, we spoke to the amazon Vice President of Workforce Development about the program. Amazon future engineer is a conference of program and really an opportunity to meet kids where they are and help them build the skills they need in order to continue in Computer Science at hopefully to engage in a career that Integrates Technology into whatever they choose to pursue. Emily you are offering a scholarship and the winners get an internship at amazon. How many of those people the think will become fulltime employees, or what do you hope . All 100we hope that them to come fulltime employees. Them become fulltime employees. What is important to us is increasing the number of students who pursue Computer Science. Emily how are you benchmarking yourself . What will be a measure of success . Ardine theres the regular feedback on the program that we solicit from participants and teachers. At the high school level, we look at how many students actually take and pass the advanced placement test. For those who receive scholarships, we look at the scholarship renewal rate. For the interns, whether they choose to return to amazon or not at the end of that first year, we look at whether they get an invitation back because that tells us they are thinking strong progress in the field. Emily you have been instrumental in hq2 and focusing on the d. C. Area. When amazon set up in seattle, they did do programs like this and we saw the relationship between amazon and the community suffer. What are you doing to build a better relationship with the community in arlington from the start . Ardine i think the nice piece about arlington is we have a view to the flightpath. We know we will hire when he 5000 employees over the next 10 years. 25,000 employees over the next 10 years. What that tells us is there are kids in school today who want to get interested in Computer Science so they can join the ranks of those College Students who obtain tech degrees. We are excited to be here in arlington, engaging more with the community about the programs that exist now and where we can put our shoulder to the wheel. Emily you promise to that 25,000 employees in a decade. What is the pace of hiring so far and are you finding the skills you need . Ardine the first year is relatively modest, we will hire 400 folks. That is really so the construction can begin on the site. So far, we have had a fantastic response from the community and have had the opportunity to interview great talent. Talent is the number one reason that brought us to National Landing and we are excited to be here in the community. Emily in doing all this hiring, you have the opportunity to change the profile of the company. About three quarters of managers are men. You dont report the percentage of women who hold technical jobs but the rest of the Tech Industry is about 20 . How will this Program Change that . Ardine you are right, this is a great opportunity for us change the profile of folks who work in tech. Key to that is impacting the pipeline. We know that within science, technology, engineering, and math, fewer than 8 of that population pursue degrees in Computer Science. A fraction of that 8 are women and people of color. By creating programs like amazon future engineer, which expose students early in their education to Computer Science and make it something they can see and understand, provide the opportunity to make that pipeline richer, to invite more women and people of color into it, which ultimately helps representation in the workforce. Emily given that you are arlington, hq2 in also in nashville. You pulled out of new york city after pushback from local leaders. Some of the folks that were bound for new york city, what happened to them . Ardine we have a large presence in manhattan already, about 5000 corporate employees. There is still a presence. We have a Fulfillment Center in other island as well as sites across the state. Those businesses will continue to grow organically there. Emily we know you are focused on hiring but we have to ask, when a day like today when the trade war is escalating, how much are you, amazon executives following what is happening between the United States in china and what impact it could have on amazon . Ardine i expect our executives are following it closely, as they do any initiatives or amazon. Hat would impact we will always take the long view. Emily bloomberg broke a story about the president considering intervening in the pentagons plans to award a huge cloud contract which many believe amazon is best position for. Youve got a new defense secretary saying hes going to look into the process by which that contract was awarded. How confident are you that amazon will secure that deal . If it goes to microsoft, what does amazon do . Ardine i dont have insight into the contract. I think the new secretary has every right to take a look at the full portfolio of things that he manages and make the best decision for taxpayers. Emily that was amazon Vice President ardine williams. Coming up, disney shares fall after reported thirdquarter earnings that missed estimates. Seems like not even avengers could save the day. Details, next. This is bloomberg. A emily disney shares plummeting in late trading after reporting Quarterly Results that fell short of analyst estimates. Falling themepark attendance, spending on new service new streaming services, and a flop of a movie inherited from fox. Chris, i dont understand. Disney opened the most anticipated theme park attraction may be ever in star wars and attendance dropped . Ardine chris yes, we are calling it the star wars stumble. Theres nobody on main street, no wait for these rides. Bob iger today on the call gave a surprising mea culpa. Hard to we tried too limit attendance because we thought the crowds would be too big. They had a reservation system for the attractions. Everyone in anaheim raised hotel prices. They didnt have that other big attraction they were going to open. Some people just stayed away. Same at Walt Disney World in florida, people stayed away because they are waiting for that to open later this month. Emily lets talk about streaming. Obviously, streaming is way down on some of the expenses this quarter but disney firing a shot at netflix, announcing a price for not just one but three streaming services in one. Take a listen to this from the call. In the United States, consumers will be able to subscribe to a bundle of disney plus, espn plus, and add supported hulu for 12. 99 a month. The bundle will be available on our november 12 launch date. Emily disney plus, their new service, espn, and hulu for 13 . Yes, which is coincidentally the price of the entrylevel netflix package. Youre getting sports, kids entertainment, and the hulu broadcast shows, about a 30 discount to whether you 30 discount if you bought those three things together. Emily lets talk about the film lineup. This fox film that was a flop, dark phoenix, how can that outweigh hits like avengers and also them launching toy story, aladdin . Chris disney has three 1 billion movies in the quarter, including the highest grossing ever, avengers. They admitted that the fox acquisition is costing a little bit more than they anticipated and that is going to continue some time. They outlined even wider losses in the next quarter. A lot of it has to do with the new film library. About boosting the results for foxs liveaction film business and said that could take a couple of years. Emily we will see if this quarter, with lion king coming out, gives them a boost. I will let you get back to covering the disney headlines. Emily coming up, taking down a hacker with a tip line. Using the old school to fight the hightech. That is next. This is bloomberg. At comcast, we didnt build the nations largest gigspeed network just to make businesses run faster. We built it to help them go beyond. Because beyond risk. Welcome to the neighborhood, guys. There is reward. Beyond work and life. Who else could he be . There is the moment. Beyond technology. There is human ingenuity. Every day, comcast business is helping businesses go beyond the expected, to do the extraordinary. Take your business beyond. Emily this is bloomberg technology. Im emily chang. When you hear the words tip line, you are thinking about a Police Hotline to report a crime. But, they are also used by companies to expose cyber vulnerabilities. According to a 2018 report, 93 of the Worlds LargestPublic Companies do not have policy to handle cyber tips. For capital one, they did and that is what led to the arrest of the person who allegedly accessed Sensitive Data on more than 100 million people. To talk about this and more in the world of cybersecurity, roy, the chief product officer at cyber reason, a firm that got a 200 Million Investment from softbank. He is with us from las vegas where he is attending the Information Security conference. In new york, jenny who has been covering the hack. We are learning new details on how capital one responded to this tip for the hotline. Tell us what is the latest. Jenny capital one got this tip. It was in early july that an anonymous tipster emailed and said it looks like some of the data is available out on the internet and the company was able to respond pretty quickly. Two weeks later, they were able to disclose the breach and working towards remediation. That was the unusual aspect of how pete how this came to light. It Takes Companies a really long time to respond, but this tip line was really instrumental in capital one having a quick response. Emily roy, this is not typically the way hacks are discovered. How impact will or helpful can hackers be in the future . White hackers be in the future . Roy when you look at capital one or any other organization, they are dealing with any threat going from traditional viruses in the past to more creative type of attacks is the one we saw here. In this specific attack, internal information was leveraged and used it to get access to this information. What we are seeing is more and more of the attacks are becoming driven by creative types of hackers or malicious players, what we call advanced persistent threat. The only way to find them is to have an intelligence way to look at the organization and actually understand the behavior and stop it. In this specific situation, the information was just posted on the internet so it was was so it was just visible. When it is not, you have to look at the way the behavior changes and stop it ther