And google gets an earful. The Search Engine rival blasts the company for requiring them to sign nondisclosure agreements to join the android option. Claims they are strongarming the competition. First to our top story. What a difference a day makes. Major markets have closed in the green after mondays recordbreaking losses. That follows increased trade tensions between the u. S. And china and the tech turnaround is partly due to apple, tesla, cisco leading gains. The s p closed up 1. 2 while the nasdaq closed up 1. 4 . But should tech investors be popping the champagne just yet . Joining us to discuss, bloomberg Senior Market editor michael regan. Should they . Mike i would not pop the champagne, but they can at least breathe a little bit of a sigh of relief. Tech was the leader on the downside yesterday, mainly because people saw that fix the chinese currency sunday night, monday morning china time. It was a dramatic move, the weakest fix for the currency on a percentage basis since 2015 and it allowed the currency to drift above that 7. 00 level versus to the u. S. Dollar. People thought that was a line and china would not let it weaken past that. Last nights fix, the peoples bank of china fixed the currency below 7. 00. That is important for tech investors. So many of these Companies Get so much of their revenue from china. Companies that get 15 from china, it is a lot of the brand name tech companies. A lot of the semiconductor stocks. Apple, tesla, a lot of very important tech stocks derive a significant portion of revenue from china. Toe currency stabilize rebound today, it is still down quite a bit from the highs in july. Semiconductors dropped 12 from their highs at the end of july. To see a rebound of about a percent and a half today is not necessarily sending the all clear signal just yet. Emily how much does this simply have to do with the level at which china fixed its currency . Mike today in particular has a tremendous amount to do with it. There was that concern in that the fix was so weak sunday night, monday morning, but that this was the start of things to come, that they would allow the market to push the value of the chinese currency lower. China took some steps, sold some chinese yuan denominated bonds in the offshore market, that really sucked up the liquidity on the overseas currency of the offshore yuan. That really made people start to believe that they are not going to let the currency go into a freefall. Emily what are the safe havens in this moment in time . Mike outside of the stock market, we have seen a tremendous amount of money poured into the bond market. Bond yields falling to the lowest since 2016. Gold trading near a fiveyear high. Within the stock market itself, theres a lot of debate about where safe havens are. Utilities have gotten a lot of money, but they have really become what many consider a crowded trade. Trading at high valuations for the utility sector. Real estate, the same. People are really trying to figure out where a good safe haven is in the stock market. Emily thank you so much for that context. When xi jinping first met donald trump in turkey 17, the chinese leader said they had 1000 reasons to make the chineseu. S. Relationship a success and not a single reason to break it. Are atrs later, ties their lowest in decades. On monday, the u. S. Labeled china a currency manipulator, sending Global Markets into a tailspin, further escalating the trade war. To discuss the rising trade tensions and how tech is being impacted, we are joined by edith young. You split your time between the United States and china. Give us your view of what is going on on the ground in china. Edith it is interesting, President Trump called china a currency manipulator. In china, a lot of people call them a tariff manipulator. Really fighting against the technology sectors, particularly in china. What has been going on particular with the huawei ban created a strange sense of National Pride and support. A lot of the chinese public felt bad for huawei in many ways. In the last quarter, the mobile phone sales increased about 4. 6 . You would expect it to impact their business quite a bit, but it is the other way around. Emily so chinese consumers are sympathizing with huawei, buying huawei phones more often than they would have. Does that mean they are not buying iphones . Edith i love the iphone, and i still think apple does really well in mainland china. Having said that, overall, there is a sense of wanting to support a local brand and really feel bad and feel they are the victim of this tension. Emily how does this impact and will this impact the u. S. China tech vc Startup Ecosystem . There is a lot of crossborder investment. Up to this point in their has increasingly been crossborder investment. Edith to start with, for Silicon Valleys tech ecosystem, in 2015 and 2016, certainly a lot of chinese vcs set up shop in Silicon Valley, wanting to bring u. S. Startups to china. Having said that, even though we certainly see the u. S. Committee for the u. S. , definitely sent out a Ripple Effect and specific funds from china, very specific companies. Think about alibaba with money grams, or recently grindr. A lot of these deals are being called a National Security risk. It sends a strong signal that the chinese vcs arent welcome in Silicon Valley. Is thewhat do you think latest escalation with President Trump calling china a currency manipulator, which trump threatened to do for a long time but didnt do until this week . Edith certainly President Trump never stops to surprise everyone. The way i usually describe, many years ago, President Trump had this book called art of the deal. To the chinese people, he is playing the tactics just like he said in the book. In particular for the Chinese Government, he is playing the long game, sort of the art of war. In many ways i dont think it will be easy for the Chinese Government to compromise in any way and they will continue to fight. Emily how does it impact where you are putting your money . Edith for us, we invest in both china and the u. S. When im talking to my fellow vcs in china, if you think about it, the strongest ipo from china in the last two years, many of them do go ipo on nasdaq, on new york stock exchange, and they are ecommerce focused, logistics focused, automotive. Their target market is actually not the u. S. At all. Very china focused. Now, instead of coming to the u. S. , a lot of the chinese vcs are thinking southeast asia, brazilatin america, like or germany instead of coming to Silicon Valley. Emily would you say we are in the middle of a tech cold war with china and, if so, how does it end . Edith it is unfortunate what is going on now. It pains me being someone who has spent time on both sides. I think it will continue to have , especially in the Investment Venture Capital community, i think the community will not mix as much. It is not saying that any Silicon Valley startup really needs chinese money anyway, nor does chinese startups need u. S. Money, but we would like to see more collaboration. I think the socalled cold war will segregate both communities. Emily what does it mean for innovation . Does it mean both countries are less innovative . Does it force both countries to innovate more . It i hate to compare at the end of the day, technology is not a zerosum game. We will continue to see Silicon Valley focus on solving a lot of Silicon Valley problems, which even china seems like it is doing well. You see over 200some unicorns. It is not anyone in the u. S. Who wants to play games made by tencent or shop on alibaba, and vice versa. Google and facebook have been around for a long time in china anyway. It will continue to stay as it is. Emily edith yeung, partner at proof of capital, thank you so much. Interesting to hear your insights on the show. Coming up, we will speak exclusively to the amazon executive in charge of h2 Development Plans next. This is bloomberg. Emily welcome back to bloomberg technology. Talking about amazon now. A new program out to retrain workers, train workers from childhood to career. Amazon dedicating over 700 million to provide people across its corporate offices, tech hubs, and Fulfillment Centers with access to Training Programs that will allow them to move into more highly skilled jobs within or outside amazon. One particular program is attracting students is called amazon future engineer, a comprehensive childhood to Career Program to educate and train kids and young adults from underserved and low income communities to pursue careers in Computer Science. Earlier, we spoke to the amazon Vice President of Workforce Development about the program. Amazon future engineer is a comprehensive program, and really is an opportunity to meet kids of all ages where they are and help them build the skills they need in order to continue in Computer Science, and then hopefully to engage in a career that Integrates Technology into whatever sealed whatever sealed field they choose to pursue. Emily you are offering a scholarship and the winners get an internship at amazon. How many of those people the think will become fulltime employees, or what do you hope . Ardine we hope that all 100 them become fulltime employees. What is most important to us is increasing the pipeline of students who pursue Computer Science. That benefits not just amazon, but the entire Tech Community at large. Emily how are you benchmarking yourself . What will be a measure of success . Ardine we look at a number of things. 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, which tells us if they are continuing in Computer Science. And for the interns, whether they choose to return to amazon or not at the end of that first year, we look at whether they get an invitation back, because that tells us they are strong candidates at making progress in the field. Emily you have been instrumental in starting the staff of hq2 and focusing on the d. C. Northern virginia area. When amazon set up in seattle, it did not do programs like this and we saw the relationship between amazon and the community of seattle suffer. What are you doing to engage more productively with the community in arlington to build a better relationship from the start . Ardine i think the nice piece about arlington is we have a view to the flightpath. We know we are going to hire 25,000 employees over the next 10 years. What that tells us is there are kids in school today that we would love to get interested in Computer Science so they can join the ranks of those College Students that attain tech degrees. We are excited to be here in arlington and engaging with the community to learn more about the programs that exist now and where we can put our shoulder to the wheel and improve things for the community at large. Emily you promise to add 25,000 employees in a decade. What is the pace of hiring so far and are you finding the skills you need . Ardine the first year is relatively modest, we will hire 400 folks this year. That is really so the construction can begin on the site. So far, we have had a fantastic response from the community and have had the opportunity to interview great talent. Talent is the number one reason that brought us to national landing, and we are excited to be here in the community. Emily in doing all this hiring, you have the opportunity to change the profile of the company. About three quarters of amazons managers are men. You dont report the percentage of women who hold technical jobs, but the rest of the Tech Industry is about 20 . Not even close to 5050. How will this Program Change that . Ardine you are right, this is a great opportunity for us to change the profile of folks who work in tech. And key to that is impacting the pipeline. S. T. E. M t within science, technology, engineering, and math, fewer than 8 of that population pursue degrees in Computer Science. A fraction of that 8 are women and people of color. By creating programs like amazon future engineer, which expose students early in their education to Computer Science and make it something they can see and understand, provide the opportunity to make that pipeline richer, to invite more women and people of color into it, which ultimately helps representation in the workforce. Emily given that you are staffing up hq2 in arlington, you are also working on building out a new site in nashville. You pulled out of new york city after pushback from local leaders. Some of the folks that were bound for new york city, what happened to them . How is that plans panning out . Ardine we have a large presence in manhattan already, about 5000 corporate employees. There is still a presence. We have a Fulfillment Center in staten island, as well as other sites across the state. Those businesses that were already in new york will continue to grow organically there. Emily i know you are focused on hiring, but we have to ask, when a day like today when the trade war is escalating, how much are you, amazon executives following what is happening between the United States in china and how concerned are you about the impact it could have on amazon . Ardine i suspect our executives are following it closely, as they do any initiatives or issues that would impact our customers. We will, as always, take the decisionsand make based on what is best for our customers. Emily bloomberg broke a story about the president considering intervening in the pentagons plans to award a huge 10 billion cloud contract, which many believe amazon is best positioned 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 doesnt, 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 in afterhours trading after the Company Reports thirdquarter earnings that missed estimates. Seems like not even avengers could save the day. But disneys streaming services have a price plan. We will have details, next. Emily disney shares plummeting in late trading after reporting Quarterly Results that fell short of analyst estimates. Earnings squeezed by falling theme park attendance, spending on new streaming services, and a flop of a movie inherited in the 71 billion acquisition of fox assets. Joining us to discuss is chris, who covers disney for us. Chris, i dont understand. Disney opened the most anticipated theme park attraction in star wars, and attendance dropped . Chris yes, we are calling it the star wars stumble. We have written about this. There are social media posts saying there is nobody on main street, no wait for these rides. There were a lot of explanations given. Bob iger today on the call gave a surprising mea culpa. He said, we tried too hard to limit attendance, because we thought crowds would be too big. They had a reservation system for the attractions. They have never done that before. Everyone in anaheim raised hotel prices. They didnt have that other big attraction they were going to open. People just stayed away. Same at Walt Disney World in florida, he said people stayed away because they are waiting for that to open later this month. Emily 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 . Chris yes, which is coincidentally the price of the entrylevel netflix package. It is a direct shot at them. Youre getting sports, kids entertainment, and the hulu broadcast shows, that is about a 30 discount if you bought those three Services Together from the getgo. This is a huge push from disney to go after netflix. 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 in the same quarter . Chris disney has three 1 billion movies in the quarter, including the highest grossing over with avengers. The prophets in the division were profits in the division were up, they admitted that the fox acquisition is costing a little bit more than they anticipated and that is going to continue some time. They outlined even wider losses in the next quarter. Part of it has to do with the film library of fox. Bob