We will have the details. Ticket pact. Several Car Companies band together with california to reduce emissions, even after efforts to ease restrictions on carmakers. President trump calls the action illegal and now the Justice Department is investigating. But first over top story. I think trade war escalates, the job market decelerates, or so the u. S. Jobs reports indicates. Jobs came in at 130,000, below what was expected. Despite those numbers, President Trumps top Economic Advisor tells uber he believes in the strength of the u. S. Tech sector. Larry we are the world leader in technology, innovation, application, and new business startups. We are the world leader. Technology. Technology is our family jewel, and we must protect america on that. That is the president s point of view. Taylor joining me to discuss is mike sullivan. So, michael, you heard it there. Tech is the crown jewel. Do you agree . Michael i do. Tech is a big sector that is going fast. I dont know if we are the exclusive world leader on that, but we are doing really well. Taylor aside from some of the jobs report which i want to get into, a lot of the conversation has been about trade. Do you see it higher within the tech sector . Michael not directly, but what we are seeing is trade and the trade war influencing the overall economy, and we are heaving talk of hiring freezes, layoffs. We are starting to see that. What we are seeing in the tech sector is companies are trying to hire much more quickly than they were before. I think for fear that summary will pump the brakes. We helped negotiate a job and they moved quickly and were willing to give us what we were looking for for that person. We are also starting to see on the file inside an increase in demand because the hiring is slowing. Taylor interesting because i heard a lot about business hesitation and summaries about hiring because they are not quite sure how the trade fight will work out. So you are seeing the opposite. You are seeing companies at speed up hiring to get ahead of it . Michael yes. They want to get people in these key roles before somebody at the top says hiring freeze. Taylor very interesting. Ok. Talk to me about todays jobs number. The main number not good. Michael we will see changes coming to the rest of the economy as a result of the tech sector. We in the tech sector are creating so much efficiency and building such great products and technology and software. We are just at the beginning of seeing what is going to happen. As this downturn comes, and it will, we will see a lot of jobs that go away that are never going to come back. Taylor i want to come in my terminal here at gtv. From the markets perspective, software has outperformed hardware as we think software is less vulnerable to the trade war. Michael correct. Taylor are you seeing that play out in the job market . Michael not directly, but we are at the tip of that iceberg because as companies are having to rethink their manufacturing chains, they are having to rethink everything around technology. Everything around hardware, software and where they are manufacturing it, and how much it costs. We are seeing a lot of Companies Start to prepare consumers that you will be eating some of the cost from this trade war. Taylor it was very interesting within the jobs data. We noted more people are working more jobs. Two or three jobs because frankly one job is not cut it anymore. How does that fit into the economy . Michael that was a really notable part of the report. The section of people who are dissatisfied were not able to make enough money and moving out of fulltime jobs because they cannot get them into gig economy is growing. We will see that. That has been happening for years. It will keep happening for a while. I believe the public thought the gig economy was a choice. We represent at the highest levels of Technology Creators that it is a choice, but for many people doing two or three jobs, it is because they cannot get a job. That is where the jobs numbers that happen coming out are a little bit misleading. They are both misleading because they dont really factor in people that have fallen out of the unemployment numbers, but they are also misleading because they are not counting these people who end up in this category. Taylor a decade ago, San Francisco was the only place to do tech. Or san jose, Silicon Valley. More and more, it is spreading out. D. C. And new york within top five places that tech jobs are being created. Is tech spreading to the east coast as well and texas, for example . Michael everywhere. Any company that things they are not a tech company is not going to be a round for a long time. This is how you have to be thinking. You have to create efficiencies. There is so much opportunity between automation and a. I. That if you are not thinking about this stuff, and the implication is massive and scary, but from the standpoint of being a Business Owner or running a company for shareholders, you have to be looking at this. Mcdonalds bought 3,000 kiosks to replace cashiers. That is the beginning. We all heard about the driverless car revolution that is coming. We will see it across the many sectors. Taylor talking later this summer about Goldman Sachs trying to hide some coders as well, survey analysis. That was michael. Thank you for joining me. Now in japan, pushing back a lot of a mobile phone service originally set for next month. That is as shares of the ecommerce companys giant down by the most since may. A limited trial will begin october 1 and the fullscale rollout will happen between a month after that and the end of the year. Coming up, huawei tries to circumvent u. S. Trade sanctions by exploring gmail alternatives. The p30 pro, more on that as well as expectations ahead for next months u. S. China trade talks. If you like bloomberg news, check us out on the radio. You can listen to us on the bloomberg app, bloomberg radio, and in the u. S. On sirius xm. This is bloomberg. Taylor companies affected by u. S. China trade sanctions, huawei plans to unveil an updated phone running googles latest software in some regions. It would be huaweis first major update to the p30 pro phone since the restrictions which forced the company to slash revenue projections by 10 billion. At the same time, huawei seems to be coming up with efforts to make up an encrypted email service on future mobile devices, getting away from googles gmail. With details, bloomberg technologys Alistair Barr from San Francisco. The key for me is this was an updated software, not a new one. Is this how they avoid sanctions . Alistair this is one way to do it. They already had the stone out and are going to be basically doing a major update to it. The rules the u. S. Has imposed on suppliers to huawei, they revolve around new products, so if it is huawei putting out a new phone, google will have trouble providing huawei with the system and the google apps like gmail and google maps that go with that. That is the small loophole that huawei is jumping through right now. The problem will come when they actually want to do a brandnew phone, which may come a little later this year. That one is likely to be shipping without android, the official Google Android and google apps. Taylor that was one of my key questions, is you have customers that might be ok for now with an updated software. How long until they become frustrated enough that they dont have the new software, that they start to switch away from huawei . Alistair i think that is a big risk for sure. We were looking at one note today from gene munster, who is a veteran apple watcher, and he was saying this actually might be good news for apple in europe. Really, it will probably lead premium providers because huawei will struggle if they dont come with the official Google Android system when they ship. Taylor alistair, what is huaweis longterm game plan . You think when android comes out and apple comes out with the new phone, what does huawei do . What is there longterm solution . Alistair the longterm solution is to build an operating system of their own, which they are working on, so they dont need android. The problem comes when you are outside of china. People expect an Android Phone to have gmail, google maps, the google play store, which is the important one, where you can get all the other apps through the play store. Huawei is going to have to build an app store itself, build an operating system itself. And the news that came earlier today about this other email service, protonmail, that is one of the examples where huawei is going to have to go out and provide an alternative to gmail and google maps and all these other google services. Taylor quickly, alistair, is that protonmail enough to satisfy huawei and customers in the shortterm . Alistair protonmail is a very specific service to people really concerned. It charges a monthly fee right now. That might be a bit of a stretch for a lot of people. Taylor thank you. That was bloomberg technologys alistair. It may not be on the table in the next round of talks in october. That is according to a statement by President Trump on wednesday in which he said huaweis a National Security concern. The comments came a day after huawei accused washington of work spreading a campaign to intimidate its employees and not cyberattacks. Lets get insight on the trade talks next month from craig allen in washington. He is president of the u. S. China business council. It seemed at least for this week trade tensions sort of simmered down. Would you agree . Craig yes, i would agree, but it is on very little information. The only thing that we really know is that there will be a vice minister meeting sometime in september followed by f that is successful, the vice premier and secretary meeting or cabinet level meeting in october. But none of that is certain, so the information we are working on is indeed very sparse. Taylor any idea specific details that we want . Is it ip theft . Is it that huawei is a National Security concern . Is it soybeans . What is trade coming down to . Craig when you go back to the original source of the problem, there are probably six items that were very important. Intellectual property rights, of Course Technology transfer, state owned enterprises, subsidies, market access, and cybersecurity or hacking. All of those are important issues. I think a lot of progress has been made on all of them. That does not mean that we can get to a solution to an agreement. But the fact that we are going into our 13th round of negotiations is a very good sign. Will 13 be the lucky round . That remains to be seen. Taylor we spoke with larry kudlow this morning, the Trump Administrations chief Economic Advisor. I want you to hear about what he has to say about the next round of traits. Larry there are no conditions. They are coming to talk and we welcome them with open arms. Our team would like to go back and pick up where we left off in the may talks. Whether that will be possible remains to be seen. I dont want to predict it. All i know is we got a new round of talks and i think that is a very hopeful development. Taylor craig, your reaction . Craig so, this is number 13. The fact that the two sides are meeting is a very good thing. At the same time, i would not want to exaggerate any shift on either side than indeed we have quite a few new sanctions in place. We have tariffs going up on october 1. We have a large round of tariffs going up on december 15. Does that help negotiations were hurt negotiations . Are we closer to a deal or further away from a deal . I think time will tell. I appreciate Larry Kudlows optimism. He knows a lot more than i do. I hope that he is right. We have to wish the negotiators well. Taylor talk to me about the next round of tariffs. On september 1, as you mentioned, within the technology sector, you have airpods, a lot of Hardware Devices that really get the consumer come into effect. December 15, as we know from a retail, holiday, shopping season. What are you looking for from the december 15 tariffs that can hurt the consumer . Craig on december 15, there will be 170 billion worth of imports which will be subject to 15 tariffs. Now, that is a lot. It is a lot of imports and a lot of tariffs. It will absolutely have an effect at the till, at the cash register. This will be inflationary. Now that is on top of, as you just said, september 1 tariffs. And another round of tariffs coming on october 1. And so this will have an impact on cpi. It will have an impact particularly on lower income americans. A tariff is only a tax, and it happens to be a very regressive tax that affect low income americans more than others. We are about to begin to feel the impact of that, i regret to say. Taylor you talk about how the devil is in the details. I think both sides want a deal, but the problem is getting there and meeting in the middle. Huawei, for example, i know you cannot speak specifically to it, frankly is a nonstarter from the chinese side, and from the u. S. Side, it is deemed a National Security concern. Where do we stand generally as it relates to National Security and trade, lumping them together, and then you get huawei . Craig that is a very complicated question. Huawei is a perfect example of the complicity that we face here. And the rest of the cfo in vancouver awaiting extradition to the United States again is a point of real tension. The president has said he is willing to consider this as part of the trade deal. He suggested otherwise as well. Having said that, we have mixed National Security and trade policy. Not a good thing to do, but it has already been done. From a chinese perspective, i understand their negotiating position is that they want to settle this deal as well. That adds complexity, but it does not make it impossible. Certainly a plea bargain, some sort of an arrangement can be made by which huawei admits to breaking u. S. Law without necessarily admitting that they broke chinese law. Such a deal is possible. And im sure such a deal is being considered. Taylor like you said, very complicated lumping the two together. Coming up, Health Concerns continue to stir around thc vaping, but what does that mean for the ecigarette companies . We discuss, next. This is bloomberg. Taylor marijuana vaping products have become increasingly popular in recent years as a discrete way to take a quick puff of pot. But suddenly, serious lung illnesses have struck people leads vaping devices to many cases of products that contain thc. Many researchers have come out with new information on vaping in the last few days. Health questions still remain when using ecigarettes. To discuss, we are joined by craig. Craig, you have been covering this. Im relatively new. Break it down for me. Ecigarettes, vaping, same or different . Craig basically the same. In common parlance, they are often talking about marijuana, but juul is a type of a vape as well. Ecigarettes are type of a vape as well, but they refer to Tobacco Products that people used to often quit smoking or cut back on smoking, but vaping and ecigarettes is like kleenex and tissues. Different ways of saying the same thing. Taylor to be clear, the cdc was talking about mostly thc related illnesses. Craig thats right. Taylor that is different from the black market sometimes. Craig in the news today, there have been hundreds of illnesses in the country. Three deaths now. Nobody knows what is going on. What the cdc is saying today is most of these people have been vaping thc products. These people are in states where marijuana is not legal, which means they are acquiring blackmarket thc products. That is the concern is heightened now about they have suddenly become very popular in the u. S. Over the last couple years. They are available in Legal Marijuana markets and widely available on the black market including new york and other places. That is the concern now, the people appear to be being affected. Taylor when we got the headline, what does this mean for companies for which they have stakes in . Juul, for example. Craig juul has been under fire because of the concerns about a lot of teens juuling and how it has gone popular. They paid 12. 8 billion in that state. The reason why altria comes up as they are worried about thc. Phillip morris on the other hand have spent billions of dollars on heat, not burn technology. It looks like a cigarette, put it in a device, inhale it and they argue it is less harmful than cigarettes. They have high hopes for it. They are going to go headon at juul and other products sooner rather than later. Taylor come into my terminal here at g tv because what im taking a look at his segment revenue of smokeless products. Grubbing agreement, no the highest it has been in multiple quarters. I wonder how this impacts the altria deal with phillip morris. Can we assume a deal is on the table . Craig one of the rationales for putting the companies together has to do with the u. S. Both juul and aikos. Altria holds the license to market it in the u. S. Phillip morris is saying now we are to go to market. Maybe we dont want to share the profits. We can reap all the benefits in the u. S. Plus, by the way, altria has a stake in juul. Longterm, juul will be a good option to get smokers off of cigarettes. We have to take care of this teenage problem but there is a future for juul so that as part of the rationale. Taylor complicated story and you broke it down for me pretty well. Thank you so much. That was craig. Coming up, facebook caught more antitrust fire, this time from the state. We will give you the details on the latest investigation, 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. This is bloomberg technology. Another