We will tell you about u. S. Tech stocks taking a hit. Our exclusive conversation with the ceo of one of techs most secretive companies. Why protesters. Them from doing business with the Trump Administration. Announced ite u. S. Will extend the limited set of exemptions that have text in Rural Networks and other u. S. Customers from a ban. This comes as the trade war rages on with u. S. Tech feeling the heat in anticipation of tariffs. Taking his problems to the top. A move that is apparently impressed President Trump. Hes the one that is comey and that is why he is a great executive. And hire very expensive consultants in tim cook calls donald trump are. The only 1 whenever theres a problem, he will call. We spoke to the Ark Investment Management who invests across the tech sector. This president want u. S. Companies to succeed, so ive the of the day this is part of negotiations. So manyd, apple has interesting things going for it right now we are learning more about apple tv, apple pay. They are also changing the subject. As you consider where to put your money, are tariffs being factored into your consideration . Some dont believe tariffs will ever hit that low even though there are threats. Is it something you are thinking about . Taxes, taxesbout provide incentives or disincentives. Not having a tax is better than having attacks but we do think the Services Platform that apple is building will overcome a lot of this and maybe even feed those services. Abouthave new details apple, there are new trailers out for some of the shows, and of course netflix is the gorilla in the room,s darting at seven dollars a month. We dont know for sure what apple will be priced in. How optimistic are you . Having learned they are pouring 6 billion into the content, which is netflix circa , i think they have a good shot. I know theows morning show with Jennifer Aniston they are paying a lot for that. Each episode is costing more than game of thrones. Content providers are the big winners here, but i do think this is going to be not just a one horse race, i think people will take several services, and it is problematic for cable and traditional broadcast tv. How much are you thinking about the antitrust issues, the doj opening an antitrust investigation, the ftc looking at facebook, looking at big tech there could be more. Right, we do think about that. We have pulled back on many of the same names partly because of this issue. We think it will be litigated for years and years. It took a long time to break and that ended up working out ok for investors. It is not always a bad thing, but the legal hassle, the distractions associated with it, can be problematic. So you are saying even if big tech is broken up they will eventually work for investors . Not necessarily. Sometimes companies will go through the process like microsoft did and nothing happens, its just a distraction. I much prefer full attention on businesses and not on these legal considerations. Thing,akup was not a bad im not saying i would like to see it, i just dont know. Solution,there is a sometimes it never resolves. Given the antitrust issues, the geopolitical insert t, the economic uncertainty, the volatility, where are you putting your money . Invested in five platforms heavily. Have exponential growth which should overcome everything we are talking about. That is because the cost of these technologies are falling so quickly. When we talk about alumina, these gene editing stocks are not priced for the exponential growth. We believe they are going to deliver. With tesla, autonomous vehicles, electric vehicles. We think electric vehicles will go from 1. 5 million gold units globally to 26 million in five years thats almost 20 full growth. No one is expecting that. Autonomous taxi networks no one believes that will happen. We are investing in opportunities that we believe are not discounted in the marketplace at all in the case of gene editing those three companies together, we are talking about curing disease, valued at only 5 billion. Closer to 1 trillion. These are lifesaving companies. Tariffsot worried about in terms of our largest holdings. Wood, ceo ofathie Ark Investment Management. Coming up, the Chinese Government has attempted to undermine continued protests in hong kong by backing fake accounts on twitter and facebook. How social Media Companies are cracking down, next. And if you like bloomberg news, check us out on the radio. This is bloomberg. Monday, twitter revealed it found and deleted early 1000 big accounts act by the Chinese Government used to undermine the hong kong protests and calls for political change. Months later facebook followed suit, saying it active attempt from twitter. Twitter says it will no longer accept advertising from state backed media worldwide. We spoke to the China Digital economy fellow at new america and the president of the Global Situation room, who set out the first task force to counter russian disinformation in 2014, as well as sarah frier. Know they are finding these coordinated disinformation efforts from china that are trying to discredit the hong kong protesters, calling them violent, saying what they are doing is backed by western resources, that they are trying to cause tensions in the group, which is similar to the tactics and russia. Twitter took on 930 six accounts, facebook, five fake accounts, three groups. Twitter says overall the accounts were deliberately and specifically attempting to sow political discord in hong kong, including undermining the legitimate positions of the protest, facebook saying that although the people attempted to conceal their identities, our investigation found links to individuals associated with the Chinese Government. Sound liket doesnt a huge number of accounts but in image and this Political Landscape can go a long way and have an impact on the world. What is your reaction to this, given the work you did with russia and your experience in International Media . First, china has been building over the last several years capabilities to influence both domestic, regional, International Conversations around sensitive topics, and what has happened in the last several days, based on the information they uncovered, as they have chosen to weaponize those capabilities. Many of us who are watching this space felt like china was going to hold back on some of those capabilities for a while, let russia take the heat, but clearly they feel threatened, and five Facebook Accounts they have not yet even begun to scratch the surface of where china supporters backed by china are trying to influence these debates. You are looking at video of some of these posts, that twitter and facebook are saying were backed by the Chinese Government. It is not necessarily surprising, given the army of internet mediators behind the scenes in china, that weve reported on for many years, but there is an irony that they are both blocked and mainland china, not in hong kong. What is your take . This classic Chinese State rep again to machinery the Chinese Government knows that they need to influence the International Perception of whats going on, so they are going to where the conversation is taking place facebook and twitter. Brett, given the power that you are indicating, that the Chinese Government has, the lever that they could pull what are the longerterm dangers , the longerterm threats, given that the u. S. Is going into another president ial election . Quite significant. The expectation many of us had was that china was going to continue to develop and test some of these capabilities many of them are out in public. Corners, wee street yetve on television there is behind all of that very well articulated strategy, and one that china has chosen in this particular instance to activate. Ist concerns me is if it activated not only on hong kong but on other issues, the south china sea, taiwan, let alone global issues and here at home, it would be devastating. China has capabilities that far surpass those of russia. They are able to combine not only this information capability but influence capabilities with the aid they give with their trade and economic portfolio that would pair it up with information operations, the much more devastating blow to market and the political conversations should they choose to go down that path. Sticking with social media, antitrust regulators in the European Union are looking into facebook Digital Currency libra. This is a currency that hasnt even launched yet. According to a document seen by bloomberg, the European Commission is investigating potential anticompetitive behavior and concerns that facebooks crypto ambitions would unfairly shut out rivals. Again,rier joined us this time with partners that eq Team Ventures to discuss. They are very concerned and reasonably so that if the Company Controls this currency that could rival the u. S. Dollar, that is way too much power to have. And facebook has said this is not just our project, this is a project with all these partners, we have a distributed network of people who were going to help. Some of those partners have backed away. Floor refused to raise their hand and say this is our problem they could say we stand behind facebook, but facebook gets all the recognition for being innovative stop there is a little bit of tension going on behind the scenes. Three angles. The first is it shows the extent to which their ambitions are selling out, like moving into payments this is a very ambitious move and i think it signals where they want to go. Stable coins and alternative currencies have come to stay its no longer something for the future. They are the leading market. They are not going into it alone not only do they deal with the concern from governments that they have to deal with central banks, who are coming together to see if they should be creating an alternative to fiat currencies. They are going up against Technology Companies that are coming up with their own versions, which has been very successful. It will be a very crowded world despite the size of the community. Bigger picture. The doj is investigating big tech antitrust, investigating facebook over antitrust, state attorneys general looking into big tech, and facebook decides to unveil libra. Do you think they made a major miscalculation trying to do this now . I think they have to do it because if they didnt someone else would. They cant control some of the timing, but i also think that with whats going on in the privacy world and with what some of the big Device Manufacturers have done to control the ability of people to bid on ads, and now with the u. S. And california, they have to. What we are seeing is a shift from the tradition of the last 10 years of selling access for ads to something dramatic, especially facebook. Their Revenue Streams will go away. They arehe eq says about anticompetitive behavior as it pertains to cryptocurrency, what are they actually worried about . They are worried about facebook being this massive global power. If you have a product 2. 7 billion people use one of the Facebook Properties thats a tremendous amount of influence over what they read, how they prioritize,at they and weve seen scrutiny from all angles and we will continue to because facebook is still growing. That now that regulators understand that power, it will come down on the privacy angle on the election interference angle and the propaganda angle, everything that they do is going to be subject to investigations and hearings and extra scrutiny. Your firm has invested in some alternatives to libra explain what the competition is. It comes from multiple angles but essentially they are saying in a world where Traditional Companies go away or become less popular, we want alternatives to the way we transfer money. The obvious place to start is in foreign currency. Companies already have come out that make it easier to shift money, and with things like libra, it makes it with less friction. That is where Companies Get concerned, because that is how you manage your own currency. That is one platform, a stable coin, and then you have banks coming out to create inversions using technologies from people like token next. All of this is pointing to a future where currencies will be much more fragmented and the way in which we move money will change. Thats not just libra, but open banking in europe, which has been a huge change with Credit Card Companies who are petrified if i can move money from bank to bank, what does that do . Change is happening at multiple levels. That was sarah frier. Coming up, amazon is betting big on india. How the company is going headtohead with walmart in the emerging retail market. [inaudible] amazon is doubling down on india. The ecommerce giant has opened its largest campus to date in it south indians any as battles for the fastestgrowing retail markets. Walmart spent 60 billion on acquiring an indian retailer. Comparison, jeff bezos previously pressed 5. 5 billion toward operations in the country. Our Senior Executive editor of Global Technology joined us to discuss. Amazon has over 60,000 employees, already a big presence and housing them altogether is probably a smart move. Buts one Office Building iny have been trying to grow an unfavorable Regulatory Environment for five years, last december the Modi Government passed laws that made it difficult for them to run their traditional retail website and they have to be more like a website. Putting a big stake in the thend, shovels in the hiring people Biggest Office holds 5000 people in this will hold 15,000 are they going to i think they are growing in even other fast, parts of india are trying to grow the ecommerce business. My colleague in india has a report that amazon is looking at acquiring a food Delivery Business and theyve been looking at making investments and lots of work and mortar chains. India can be the lab from the rest of amazon and they also need to hire workers to help them grow the business. How is amazon doing taking on walmart . Who is winning . The last i saw they were about. Cart, which walmart acquired for 60 billion last year, had a head start. There was some kind of internal chaos and walmart brought them flip cart is doing pretty well but amazon prime is taking off. They dont release numbers but they say prime membership is doubling. They are probably both doing well because this is a rapidly expanding internet, theres a rising middle class and Internet Penetration going way up, raising walmart is trying to take on amazon by offering free streaming and obviously bali what entertainment in india is huge. Talk about that strategy. I think amazon has shown that prime video brings people into the amazon ecosystem, it gets them ordering. Walmart cant necessarily do that in the u. S. Where you have some any player a lot of money, but the indian market is a little less developed and their approach is just it is in a dropdown menu but they think it is a good way to cement the loyalty of its users and probably particularly the second and third tier cities where maybe the wealthier, urban customer already has an amazon prime or netflix subscription, walmart is trying to expand into smaller cities as a way to bring them into the ecosystem. Weve been talking a lot about the trade dispute amazon doesnt have huge exposure to china, but what weve seen in the last few weeks is walmart and target report strong reports, alibaba report strong results, and i wonder if there is something about ecommerce that is more immune to these geopolitical uncertainties we are facing now and that other companies i would say amazon does have some exposure, china is the bread basket for amazon, so many of those sellers sell around the world, in shenzhen, in the , making products that are for sale and some of them will get hit as they are put into place by the Trump Administration. India you would think might be a recipient of some of the capital leaving china but they have been unstable i mentioned the modi gote rules reelected in may and i think its a little more stable we will see how the trade war will impact india, but it hasnt historically been the greatest place. It is very bureaucratic. That was our Senior Executive editor brad stone. Door is changing its controversial policy. The ceo explains what prompted the new model and what is different next. And we are livestreaming on twitter you can find us there. Be sure to follow our global breaking news network on twitter. This is bloomberg. From the 5am wakers, to the 6am sleepers. Everyone uses their phone differently and in different places. Thats why Xfinity Mobile created a Wireless Network that auto connects you to millions of secure wifi hot spots. And the best lte everywhere else. Xfinity mobile is a different kind of Wireless Network designed to save you money. Save up to 400 a year on your wireless bill. Plus get 250 back when you buy an eligible phone. Click, call or visit a store today. This is bloomerg technology. Is changing tipping policy following an outcry from customers and delivery workers