Emission said they will break up the tech company. Get ready for things to get messy if he tries to be u. S. Stocks suffering another the selloff in treasuries. Surging as mountain signs of an economic slowdown still fears a recession. The s p 500 has big tech driving the losses. , amazon allsoft closing deep in the red. It has gripped the index since President Trump rekindled the trade war with china at the start of august. The s p 500 has gone 1 for 11 straight sessions and is now down 6 from a july record. We are joined by our Bloomberg Cross asset reporter in new york. A lot of bond buying today. What does that mean for tech . Longerf you look at dated bond yields with 30 year sawing to a record low, we a yield curve inversion between the two year treasury yield to a 10 year treasury yields for the First Time Since 2007. We were no longer in negative territory. We should mention that. That means for tech going if you think about the high data areas of the market, tech is largely put into that group. Maybe not as much software, but when you think about Semiconductor Stocks and apple, because they are so intertwined with china, some of these areas are very well intertwined with the global economy. When you think about the message that we are seeing from the inverted yield curve, some are saying that this time is different because you see flows from foreign money into bonds. Ise say that the yield curve artificially lower because of what Central Banks have been doing. In the past it has receded a recession. Those that do believe a recession could be coming at 12 to 18 months out, that does not bode well for big tech names. Emily allday we have been talking about how this bond be a sign of a recession. What does that mean for tech especially . We see beically when signs, you dont see a reaction right away. You do see a reaction right away, but that does not mean the stock market is peaking right away. If you look at the stock market today if you look at the Philadelphia Semiconductor index , for example, we saw as deep fall falling into correction territory, now down 11 from a high, plummeting through its 100 day moving average. 200 day is still far away. What was interesting to me was, if you look at software and hardware, those two areas actually fell even more than Semiconductor Stocks. Which are typically the more volatile areas. You have to take into account the gains we saw in hardware stocks led by apple. Yesterday we were dealing with the news that the tariffs were going to be delayed. Now we are getting the flipside, not so much that the tariffs are delayed, but when you get a strong rally in apple with hardware, you will see it come right back. Emily lets talk about cryptocurrency. A couple of weeks ago we talked about bitcoin being a safe haven. The wrecks the rest of the market was going down and bitcoin was going up. But it has plunged. Is that the case . Sarah we have heard the statement made that you look at gold. Gold is a safe haven. Japanese yen is higher today. Very strong gains. And say, its a similar story to gold. Bitcoin is extremely volatile. No one can debate that statement. It is very difficult for people to actually look to bitcoin as a true safe haven, because of the volatility that you see from day to day. Just seeing strong flings and huge falls. I dont know if you could say bitcoin is a true safe haven just yet. Emily bloombergs cross as a reporter sarah. Thank you for that update. Assetas a reporter reporter, sarah. This was just a placeholder. We were expected to raise closer to 3. 5 billion. That would make it the year secondlargest ipo behind uber. Of 690 million the First Six Months of the year. And 300 million during the last six years. Joining us with the details is ellen. What were the surprises . There were some things that we already knew. Falling we has been werehave been giving out selects Financial Information quarterly for the last year or so. We already knew that in 2018 we to 2 billion while making a revenue of around 1. 8. There were some surprises. We got more details about some of the loan and complicated financial structures that go on between the founder, adam newman who is also the ceo, and the company. Some knowledge before. He was a landlord in some properties wework rented. The Succession Plan that would happen if he could no longer serve as the ceo. Emily our called our colleagues called it the off ing company. They are offering three times the class. It takes a step further than what Mark Zuckerberg and the founders of google have done. Ellen there are three classes and two of them have 20 volts per share. Class a has one vote per share. That is a great consolidation of power. It is largely in the hands of adam newman. He has a lot of voting control over the company. That is by design. People who support the structure thing adam has the right vision, doubled this and the leadership to take we worked even farther than it has been. For some of the people, they will look at that and raise their eyebrows thinking that might be too much. Emily the other thing that is interesting as they laid out how many of the buildings are fairly new. 30 of their locations are mature. 70 are two years or younger. The vast majority of their space is incredibly new. Changed thehey have definition of that metric of a mature location. Hes to be 18 months, they have expanded to 24 months. Even with that, its only 30 of the Office Location open for more than two years. They look at that as pointing to highgrowth. Interesting because, a lot of the most stable Unit Economics they like to highlight are focused only on mature locations. They say these are where we no longer have to rely on marketing to fill the buildings. When you start to realize thats only 30 of their portfolio, it starts to raise some questions about how sustainable their growth is and how easy it would be for them to get to profitability. Emily they say they may never be profitable. Which is similar to what we heard with uber and lyft. Are investors excited . Of activitye a lot on twitter on both sides. They think the growth is exciting to read other people cannot wait for it to go public so they can short it. It will be a divisive stock. We will see the price will be decided soon by the Public Markets. People are looking to see if it will meet that 47 billion private valuation. Emily how quickly do we expect them to get to market . Ellen sometime in the next few weeks. We expect a september ipo. That is just around the corner. Emily you will be covering it every step of the way. Thank you. Shares of uber fell to a record low when data markets of the right hell are has fallen by more than a fourth. That has come since the Company Reported its earnings. Uber mr. Revenue expectations and posted a 5. 2 billion loss. Heads to the lobby. How the Chinese Telecom giant is fighting for its u. S. Survival by using an ageold tactic, washington lobbyists. News, like bloomberg listen on the bloomberg app, bloomberg. Com, and on sirius xm. This is bloomberg. Howy we have often covered big u. S. Tech companies are lobbying washington with spending on their d. C. Advocates going up. Huawei even the embattled Chinese Telecom gianthuawei is working the power of lobbyists. They lobby on trade and other National Security issues as they fight for the right to do business in china. Joining us to discuss in we have our Global Executive editor for technology, tom giles. Ben, what exactly is huawei doing and why do they want to lay off the onboard . Ben they have hired a group called federal federal advocates i have a lot of ties to the Trump Administration and republican leadership. As we understand it, what they want to do is lobby on those export control stopping them from playing into the u. S. Market. The lobbying disclosures are vague, but they clearly say, export controls for the law firm working with them in other cases. We also have Telecommunications Issues they are working with with the other lobbyists. It seems like they are trying to break the back of it. Emily they almost shut down their lobbying operations last year. Now a full 180, presumably, because of the president putting them on a blacklist . Gone down to three staffers here in downtown washington, d. C. A little bit over where i am sitting now. They got rid of all their consultants. They were not having them do anything or they werent spending money. Now they have hired three offers firms to add lobbying on to their mandate as law firms. As well as this trump connected firm, federal advocates and michael esposito, who is an advisor to and are in seed rnc chairwoman. Emily the trade wars are escalating. The president delaying tariffs until december. The others will go into effect in september. You have interesting dynamics happening between President Trump and beijing, given the hong kong protests. All of this continuing to Impact Tech Companies and a supply chains. You have the makers of hp laptops saying they are moving the production out of china. It just makes sense to look for an alternative to mainland china. What we have seen over the last several months is Tech Companies looking to move bits and pieces of their production. 5 here, 10 there. The problem that a lot of Tech Companies are encountering right now with u. S. china relations is , no matter how this gets resolved, it shows you the vulnerability of dashboard or ability and the risks of keeping all of your supply chain in mainland china. At a time when the u. S. President can wreak havoc with u. S. china trade relations by threatening the trade war, imposing the sanctions, ratcheting them up, ratcheting them back, there is what looks like a game happening here. If you are reliant on china, you cannot be subject to the win of one administration or the Chinese Government, whatever the case may be. Resolvetruly going to and better trade relations between u. S. And china . Is this all heading towards the 2020 election . Its really hard to tell. You relied on, if china, you need an alternative. That is whats happening. No matter how this gets resolved in the shortterm, longerterm, u. S. Companies are saying it does make sense for us to look outside. We are seeing it with every day and week that passes. Another u. S. Company talking about, or showing, in one way or another, we are looking for an alternative. You are increasingly seeing the emergence of this alternative second supply chain. Emily meantime, you have the u. S. Government leaning on allies to not rely on huawei, to push huawei out of its plans for five g networks as huawei has in this pawn u. S. china trade war. Are those u. S. Allies coming on board . Whose side are they on . I think that map you have up there tells the story. The u. S. Has struggled to convince allies that they need to make this move. Theree heard reports that is movement potentially with india. That india might be willing to go up against china and that particular move. When it comes to europe, when it comes to the top allies, those countries that we share intelligence information with, it has been a struggle. It is not hard to see why. Dear is cheap and reliable. They keep saying they have no more Cyber Security risks than anybody else. There is always a possibility of back doors. Our allies may be in private conversation. They may say we are worried and we will keep it out of a core of our networks, that they are saying, i think you are going at it alone. Tom there is a big question mark for our allies about how much of a threat huawei is. The one thing they are sure of is that huawei equipment is prettydarn reliable, good and pretty cheap. What are the alternatives . That is the question hanging over the deployment of 5g. Emily it seems like there are no alternatives of the same quality level . Timethat is what we hear and time again. You have people like nokia who do provide some of the infrastructure, some of the equipment, what is it as reliable as it is fast . Is it as cheap . No. Answer seems to be there is the question about wanting to see more evidence will create backdoors. They are not seeing it yet. Emily the question is, is it a Security Risk . Thatll continue to follow story. The Global Alternative meat market is expected to reach over 6 billion by 2023. How a new vegan plan plans to side otherlong companies. This is bloomberg. Emily tmobiles takeover of sprint has moved forward to a bona fide the federal communications commission. The last hurdle for the deal. A group of states have challenged the deal in court. The suit says the tmobile tie up will reduce competition and raise prices. Me has seen its share of hits in the last couple of days with Global Growth in the consumers. Stocks up more than 550 since the companys ipo in may. It has helped move Plant Protein out of the periphery and out of supermarket shelves. Is problem for beyond meat that the alternative meat market is about to get more crowded. A new Vegan Company is rolling bringing out its new meat next year. Unlike the existing landbased options on the market, it is using fungi to create chicken tenders, lobster and burgers. How is this possible, lets ask. So, tell us about the technology and Science Behind these products. We are really creating no compromises meat and seafood. We use a superproducer. This is an 8000yearold superfood. What we do is grow it so it is a proteinods source of that you cant find implants. It has the natural texture of meat, so we can replicate everything ranging from lobster to beef and everything in between. Naturally, the texture of meat comes from it. It grows in fibers that are the same as animal products. Chunks, crabcakes, protein bars. You can make all of that from the same kind of mushroom . Yes, and we have. That is the exciting thing. We are able to make products like no other alternative meat product. We are really focused on building a community and a brand around our product to put in the mainstream. Emily you are actually asking consumers to vote on which you should launch in 2020, online. What has been the most popular . Most bacon the has been the most popular product. People love bacon and a lot of people are vegetarian. I can see why they can is the most popular. We have a lot of products that are ranking really high up in our voting. For us it is fun to listen to our consumers. All of the products at been developed with the help of our communities. Emily what do you think set you apart from beyond meets and beyond meat. . Taking an alternate approach to making food from plants. We actually grow textures naturally. That is a large concern for our consumers. People who are looking to buy these products. We are really taking that to heart and making it a product that is completely allnatural, nongm of and is naturally made. I grew and made all of our products in my kitchen. This is a far cry from web grown. This is reality. This is also wholesome food that everyone can get behind. Emily what other applications do you see in this technology of food. I see that in food for our technology, the options are endless. Naturally, the super protein has that texture. Youre planning to sell this directly to consumers, rather than putting it on store shelves . Yes. The other problem with the industry is that there is really this way of thinking about the consumer. Product loading to how we are interacting to consumer, we are taking that to heart and changing the whole experience. Events wereve many people can come and interact with us and also try the products. While we have not sold products officially, we have done a lot to build community and over 10,000 people have already tried our products. Watch for that to hit the shelves next year. , thank youberlie le for joining us. The ftc chair said he is willing to break up big tech. Under what circumstances, we will discuss. We will get back to the Global Market selloff. How the attack is faring as recession fears mount. This is bloomberg. Emily this is bloomberg technology, im emily chang in san francisco. Giveth, tariff delay the curve takes away. All end do you think as mounting signs of a Global Economic slowdown stoked fears of economic recession. To make matters worse both the u. S. And u. K. Yield curve inverted for the for the First Time Since the economic crisis. Here with more is gina martin adams. What are you read what are you reading into this and what it means for tech . Weve been in a crush since late july. This is more evidence that the correction persists. You dont have weak days like this in the midst of a minor selloff. We started talking about this last week when we had a correction in the s p 500 on monday. Down nearly 3 again today. These panic days happen in the midst of bigger corrections of 10 or more. What that means for tech, tech is one of the highest beta sectors, and one most exposed to Global Growth and to china. As a result, the semiconductors and equipment needs in tech will et dammed more in a selloff. I think though the software is at risk as well. As a result of the fact that they continue to power higher, powering stock high they are summer, they are pretty high beta. They get thrown out with the bathwater when markets are a are in a sell now, sink later mode which were in now. Emily what do you think has been the bigger driver of the tech selloff, trade fierce recession fears . Gina i think up until the last couple of weeks it was more about trade. Especially over the last week. We started to see significant deterioration in Economic Data overseas and the yield curve and the significant meltdown in rates globally over the last few week woufs suggested that this may be more about the trade concerns leading us into recessio