Lab. Opens his largest campus to date in india. Company is to capture the thecompany is to capture the ecommerce market and in coming years. Now, to our top story as the trade war rages on, seems like apples ceo might be making progress in getting the president s ear via phone calls. That is what President Trump told reporters. Thats before he departed for kentucky. Take a listen. Pres. Trump he is the one that called. That is why he is a great executive. Because he calls me and others dont. Others go out and hire very expensive consultants. Tim cook called donald trump directly. I would take their call, too. Hes the only one that calls me. He calls me whenever there is a problem. Emily President Trump, talking about tim cook there. To discuss this and more, i want to welcome cathie wood. So great to have you here in the studio. What do you make of tim cooks approach . Cathie i think this is good news for apple, for technology. Emily the president has the denied some of apples formal requests to give a tariff reprieve on the mac pro, for example. How much do you think these tariffs are actually going to impact apple given that starting september 1, we are supposed to see tariffs on air pods, apple watches, etc. . Cathie i am glad there is a dialogue and i think this president wants u. S. Companies to succeed, so i think at the end of the day, this is part of negotiations and just that. It will end in lower tariffs overall. That said apple has so many interesting thing going sport going for it right now. Apple pay, what they are doing in health care. Apple is changing the subject of it. Emily as you consider where to put your money. Are tariffs being factored into your consideration of apple in particular . Others have said tariffs so will never hit apple even though there is a threat. Is this something you are thinking about . Cathie we think about taxes, which is what a tariff is, taxes provide incentives or disincentives. Not having a tax is better than having a tax, but we think the Services Platform that apple is building is going to overcome a lot of this and maybe even speed those services along. Emily lets talk about services. Were expecting one to be unveiled in november, there are new trailers for some of the new trailers for shows, and netflix, the gorilla in the room. Disney coming out with the Service Starting at seven dollars a month, which is fairly cheap compared to the competition. Were not sure what apple will be priced at yet. How optimistic are you about apple tv plus . Cathie having learned they are pouring 6 billion into the content, which is netflix circa 2016. Emily netflix is closer to 14 billion now. Cathie yes. I think they have a good shot. Some of the shows, i know the morning show with jennifer aniston, they are paying a lot for that. Each episode costing more than game of thrones. They are paying a lot of content. Providers are the big winners here. I do think this is going to be not just a one horse race, i think people will take several services. It is problematic for cable and traditional broadcast tv. Emily how much are you thinking about the antitrust issues . The doj opening an antitrust investigation. The ftc looking at facebook. States looking at big tech, there could be more. Cathie we do think about that. We have pulled back on many of the names we had, partly because of this issue, but we think it will be litigated for years and years. It took a long time to break the ma bell into the baby bells. Its not always a bad thing, but the legal hassles, the distractions associated with it could be problematic for some companies. Emily even if big tech is broken up, it is still potentially good for investors. Cathie not necessarily. Sometimes, you are going through the process, like microsoft did, and nothing happens. Its just a distraction. I would much prefer full attention on their businesses and not on these legal considerations. The break above ma bell was not a bad thing. Im not saying i would like to see this. I just dont know sometimes, theres a solution, meaning a breakup like that. Sometimes its just never resolved. Emily given the antitrust issue, the geopolitical uncertainty, the volatility of the market, where are you putting your money across tech . Cathie we are invested in five platforms heavily. They are all focused on exponential growth, which should overcome everything we are talking about here if we are right. That is because the cost of these technologies are falling so quickly. When we talk about dna sequencing, alumina, crispr gene editing, these stocks are not price for the exponential growth we believe they are going to deliver during the next five to 10 years. Same thing with tesla, autonomous vehicles, electric vehicles. They are going to go from 1. 5 Million Units globally last year sold to 26 million in five years. That is almost 20 fold growth. No one is expecting that. Autonomous taxi networks, nobody thinks thats going to happen. We are investing in opportunities that we believe are not discounted in the marketplace at all. In the case of gene editing, shall we say, those three companies together, we are talking about curing disease here. They are valued at only 5 billion . Apple closer to 1 trillion . These are lifesaving companies, so we are not worried about tariffs in terms of the largest holdings. Emily interesting. You mentioned tesla. Every week, there seems to be some new tesla controversy. One company canceled orders because there was moisture in the headlights. Walmart, suing tesla because they rented roofing space. There were multiple fires, seven fires out of 200 different places. You know, obviously you are bullish on electric cars in general, but are you as bullish on tesla if they cannot overcome these issues . Cathie i think what we are seeing here, for example, we hear about every fire in a car that takes place, but you dont hear in terms of traditional gas powered cars how many fires are taking place with those. Many, many more than tesla. Tesla seems to be a lightning rod for publicity. Last week, it was a german rental car company. Teslas response to that is, we dont think thats the issue, we have a dispute a former dispute with them which they are not going to go into, and thats what its more about. They can say all they want. I would be very surprised, especially going to germany, tesla shipping cars to germany and how autooriented they are and designoriented they are, that tesla would have shipped that many faulty cars. There is Quality Control at the end of the day, at the end of production. And walmart, those solar panels were put in place when solarcity was a standalone company. They will probably have to replace them or pay for pulling them out or pay some compensation as well. Its a oneshot deal. When i talk about electric vehicles going from 1. 5 million to 26 Million Units, that is going to be much more important impact on tesla especially if it continues to maintain its share. We think they will lose up to two thirds of their share in the 200 to 6,000 bear and bull price target. They have been sustaining their shares. It is outstanding. Emily cathie wood, thank you so much. Switching to ecommerce, shares of target set an alltime high today. The retailer, boosting their earnings forecast. Target reported Digital Sales were up 34 . Coming up, President Trump says he is the chosen one to take on china. We will discuss the ongoing chinau. S. Trade dispute with a former ambassador. Why tariffs are not working. This is bloomberg. Pres. Trump i am the chosen one. Somebody had to do it, so i am taking on china. I am taking on china on trade. And you know what . We are winning. Emily President Trump, earlier wednesday talking about taking on china in regards to treat. In regard to trade. The ambassador took his disputes to the l. A. Times in an oped writing if as a result the Chinese Companies no longer compete in the u. S. Market, it would push china to clinch market leadership elsewhere. With more than three decades of Diplomatic Service around the with, i have to start there are many president s who have dealt with china and had to deal with china. What is your reaction to President Trump calling himself the chosen one on china . Charles i try and stay out of politics. Obviously, the president is very sure of himself. He is trying to point out how essential he is to decisionmaking on this. In that, he is right. Emily you dont think tariffs are going to work. Why . Charles i go back to the original objectives. The president started this whole process with an investigation of Technology Policy for foreign direct investors first. Investing in china. He put the first group of tariffs on because he found, as others have found, that the chinese required technology sharing, licensing, coinvestment, all kinds of discriminatory things for Companies Interested in investing in china. So, the president said, well, this is a denial of our rights and unfair trade practice. In fact, the president and the administration really did not support the u. S. Companies investing in china. It seems to me that the original purpose of this trade war wasnt really the real purpose. The real purpose is to detach the u. S. Economy from the chinese economy and somehow to rectify the bilateral trade deficit. Emily so in your view, as a trade dispute, trade tension is playing out, who wins or loses it . Charles no one wins in a trade war. You basically take both sides down when there is action and retaliation. The barriers go up between the two trading partners and all the other countries in the system win. Emily so, how do you believe this will play out . We talked about the unpredictability, you never know what will happen the next day. Given your understanding on how the Chinese Government operates and what we are seeing from the president , how does that impact emerging technologies . Charles i think that the chinese are digging in for the longterm and they are open to an interim agreement with the president. They know from the statements the u. S. Officials have made that were most sensitive about the farm products, farm exports to china, which have been cut off by the chinese and retaliation. They are going to demand a very high price in terms of reduction of our tariffs on chinese goods in order to give us that benefit. It is going to be sticking, it is possible they do a half a deal, but i dont think we will see in the next between now and the next november of 2020, that we see a big reduction, a return to the status quo, before this ratcheting, retaliatory sequence started. Because you cant see the interest being benefited. The result is going to be that the competition in hightech and other areas will take place in the rest of the world. And that is where you have to worry. American companies depend on chinese components to be competitive all over the rest of the world, and the big game now is for hightech, 5g networks and the rest of the world. This will hamper American Companies in the rest of the world. Emily speaking of 5g, huawei has become a pawn in the u. S. China trade dispute. Right now, we do have other players in 5g, but many experts say they dont compare to huawei. How does that position the u. S. In terms of leadership or not on 5g . Which is going to be a very important emerging technology . Charles it certainly is. It is early days in the 5g race. I remember how motorola dominated the early cell phone competitive landscape, 20 plus years ago. The first mover doesnt necessarily win. So there is that. Digital mobilehe market, the socalled secondgeneration mobile market, that the Global Market mattered. There were two competing systems, the european system, gsm, and the american system. People think the american system was better technically, but gsm won, and it was the european system. It was on the gsm system that nokia and erickson became Major Players in mobile telephony. It was because their systems were available and used in more countries all over the world. So apple adopted it. I think that is what is going to happen with 5g. You cannot look at it on a country by country basis. The successful players will be global players. Emily ok. Ambassador charles ries, thank you so much for joining us. Coming up, a social media double standard . That is what china is accusing facebook and twitter of. Why social media is drawing chinas ire. That is next. This is bloomberg. Emily Jpmorgan Chase is preparing to shutdown their smartphone payout. Is the third reversal in as many months. Customers will still be able to use chase pay on the websites and apps of retailers that accept it. Two days after twitter and facebook announce a closed accounts backed by the chinese that attempt to manipulate news and hong kongs, and beijing is heading back. An editorial in the peoples daily newspaper saying this is a full display of double standard in action, saying one thing while doing another. They suppress peoples voices but not motivations to reveal the truth. What does the Chinese Government mean . Sarah i think there is a lot going on. First of all, the editorial said there was no evidence given for the fact that this influence came from the Chinese Government. There is a little bit of evidence if you look at twitters blog post. They say some ip addresses were unblocked from using the cap the app from the countries, the editorial also doesnt say that twitter and facebook are blocked by the government for all citizens. And so, this is the kind of thing, they were just told they cant advertise on twitter anymore. This is a tense moment. Meanwhile, shelly and i have reported that twitter, the company has been training Chinese Government officials behind the scenes on how to use twitter and helping verify them. Emily lets talk about this. Twitter employees are helping Chinese Government officials get their word out, get their message out on twitter. Sarah if you think about it, it is like they would for any other public official. If there is a celebrity or an athlete or an actress, they are going to be helping that person learn how to use twitter. The weird thing here though, is that this is a government that has blocked twitter for years. It does seem a little bit strange. To be training those government officials to be using the platform to get their message out to people in other countries. Emily twitter is a global company, based in the u. S. How do they navigate or even justify the aspect goal complications of this when it is a government that is present that does not necessarily share American Values . The argument here is that all officials should be treated the same way no matter if it is trump or bolsonaro. It doesnt really matter. Emily they will help anyone . Sarah they will help anyone just like facebook will help anyone with their account. We reported a couple of years ago that facebook has been training the philippines how to use facebook, and in india. Just think of it in terms of content. Are these people who have a following, that people are going to want to see what they have to say . If so, if they will say it anywhere, might as well train them to say it on our service. Emily what is twitter saying about this . Sarah the company has not really been commenting on this, but we are confident in our sources here. Emily twitter has in the same week decided to block date run state run media from advertising on twitter. So they are taking a stand in a sense there, a political stand. Sarah in a way, because now they have the tricky job of defining what state run media is. They already said they are going to exclude the taxpayerfunded and independently operated entities like the bbc and npr, getting some federal funding here in the u. S. But they have not said exactly which Media Properties they will be removing from advertising capabilities. So, we know they will be removing the ones in china and they have removed the ones in russia, but this kind of opens up the opportunity for them to decide on a casebycase basis if they see a big propaganda initiative, what they want to cancel. Emily sarah frier, thank you. Great scoop. Coming up, amazon is betting big on india. Really big. How the company will go headtohead with walmart in the emerging Retail Market with the largest campus ever, next. This is bloomberg. Emily the is bloomberg technology. Im emily chang in san francisco. Amazon is doubling down on india. The ecommerce giant opened its largest campus to date as it battles walmart for one of the fastestgrowing Retail Markets. Walmart spent 16 billion last year acquiring indian retailer flipkart. Jeff bezos previously pledged 5. 5 billion for the company boss operations in the country. Joining us to discuss his brad stone is brought down, offer of a book about amazon called the everything story. You have traveled to india to report on amazon. Why put the largest campus in india . Brad amazon has a lot of employees in india. All the Tech Companies do. Amazon has i think over 60,000 employees there. Already a big presence, housing them altogether probably a smart move. I think the biggest part is that they are making such a big deal out of this. Its one office building. Theyve been trying to grow inside india in an unfavorable Regulatory Environment for five years. The Modi Government made it difficult for them to run their conventional retail website in india last year. They have to behave more like a marketplace for other sellers, so putting a big stake in the ground, some shovels in the ground literally, helping with modis economic development. Emily the Amazon Office in seattle holds 5000. This office will hold 15,000. Brad i think they are growing in india quite fast, not just engineers that service other parts of india, but trying to grow that ecommerce business. My colleague in india has reported that amazon is looking at potentially acquiring a food delivery business. Theyve been looking at making investments in lots of brick and mortar Grocery Store chains, so india can b