Are feeling the pressure. Our extended conversation with the ceo of qualcomm. Why he thinks 5g will change the we forever. Americans got out their wallets over the holiday weekend, spending more than 70 billion on shopping over that fourday period. Basics, testing cheap warehouses which will storemerchants to resources near amazon delivery locations. It will let merchants avoid storing their goods in amazons warehouse base where they pay premium prices. We are joined by spencer. What do we know about the new Service Called storage and replenish . Know they are giving ins a try and a try southern california. Ontario, california. With amazon this time of year, it is always a race to create capacity. It has these expensive automated facilities with conveyor belts, robots. Those facilities are expensive so it is not smart to use them for storage. Amazon needs to supplement the Storage Capacity for those facilities with cheap, plain old warehouse is nearby. They are kind of scouring the country for cheap Warehouse Space near their other facilities around the country. To me more about that. You said they have that one warehouse in ontario, california , but notably that is only one, which means it is not ready for cyber monday, for example. Are there concerns that there were not more of these locations heading into the Holiday Season . Has an that tension during the holidays, amazon its capacity. It only wants the fastmoving inventory in there. It does not want to clutter up the space storing goods that are not selling. What amazon historically has done is it has simply raised storage fees to try to discourage merchants. Independent merchants that sell things on amazon, to keep them from putting things in their warehouses. The risk of that is maybe they can run out. This is kind of like the happy medium. We dont want your stuff cluttering our warehouses in peak season but we will provide a warehouse nearby that is cheap so you can have the stuff nearby in case we do need replenishment. It is kind of like the next them wanted to declutter their warehouses. Taylor what has been the merchant reaction . Spencer if it goes well, it could be favorable. That has been the concern. When they did . Storage fees, they had to make this critical guessing game. Just enough to get through the Holiday Season. If i do not send them enough, i am losing sales. If i do not send enough, i am getting hit with high storage fees. This is a way to get a little sendf a buffer so you can more than you sell without getting penalized on the storage fees. That inwe often hear the shipping business, it is that last mile that is the hardest. How does this help amazon both in the middle of the supply chain and in the final mile to get the product to the front door . Spencer especially as amazon goes for this next day delivery pledge, they are trying to ship more and more to next day as opposed to twoday. If they are going to accomplish that, they have to have inventory close to shoppers. More time to react as soon as someone hits buy on their internet to the time they g et the order out the door. Where you used to may be have a handful of facilities that could adequately serve the entire country, now you need maybe 16 stations to reach the majority of the population the next day. That means you need these ancillary facilities around it to feed into the system. Taylor Bloomberg Technologys spencer soper, thank you for joining us. To continue our conversation about cyber monday, lets bring in steven. How has this cyber monday compared to previous years . En the Holiday Season is off to a really strong start. Black friday, the additional transactions, this black friday was up 19 compared to a year ago. Going back a year, that year was up about 20 over the year before that. In your opinion, is amazon the key player that is the key winner in all of this . Dan it continues to be their world and everyone else is paying rent. Look at walmart, target, yearoveryear numbers. This continues from an investor perspective it some of the products, the apple, air pond, others. Airpod, others. Taylor we just came off the investments of amazon, is that . Ost paying off yet dan i think that is starting to pay off but it will play out in the next 6, 12 months in terms of shipping. Right now,ommerce you are starting to see a narrowing in terms of the competitors right now. It is that last mile that continues to be the focus of investors to really close the gap taylor close the gap. Taylor stephen, how much has the pressure increased to get the shipping time faster . Steven earlier in the year, there was talk about amazon not being able to sell what they called crap products, cant return a profit. A lot of it is coming from the Competitive Pressure that dan mentioned, traditional retailers like click and collect, by online and pick up instore, they have had pretty good years of self. I want to show you a chart that his Department Stores hitting a rough patch, fallen 1. 6 . This is hardly a new trend. Mentioned, have walmart and target, what are they doing to be able to take on the Companies Like amazon . Dan it is really around inventory. Playersany ecommerce that they have hired at walmart, it is about inventory. It is no longer asleep at the wheel. It is a narrowing of the cap. Consumers are smart. It is not just amazon. That continues to be in the eye of the street, who are the winners. You have to play feather in the gap for walmart. Taylor are walmart and target also the clear beneficiaries . Stephen they are clearly pulling away from the competition. The digital world, just as you have seen google and amazon pull away, as we look in specific categories of ecommerce, we see the same thing. Who in your opinion has been struggling . Who are some of the losers who have not been able to keep up . Stephen when we look at companies who had a big boost from black friday, it has not always been a positive story. Victorias secret, forever 21, gamestop when we look at our data, we sometimes call it the trifecta. A big boost around black friday but a big boost also in paid search. And they had falling faces. That is a trifecta that is tough rebound from. Incorporatedo you hannel,se of the omnic whether it is curbside pickup, great delivery service. Dan it is all about the cost of getting an incremental customer. If you look at amazon, it is all about prime. Once you are in that ecosystem, you will spend incrementally more. Nel,s around the omnichan it is not just what amazon is focused on. That isat every one chasing them is focused on. You are seeing across really the landscape here. Taylor dan, you cover apple, so i would be remiss if i let you go without asking quick question here. Forecast for the Holiday Season when it comes to apple. Of airpods, 65 million units. Above 11 tracking 10 expectations. If that continues, this will be a stock that will have a three in front of it next year. And danstephen kraus ives, thank you very much. Monday forped on roku. The bank said roku could see revenue and Profit Growth slow meaningfully next year. Through monday, shares were up 400 this year. Coming up, the nasdaq falling the most in more than eight weeks. We will look at if it is caused by trade tensions or something bigger. If you like bloomberg news, check us out on the radio, the bloomberg app, bloomberg. Com, and in the u. S. , on sirius xm. This is bloomberg. Redor u. S. Stocks in the on monday with tech leading the losses. The tech heavy nasdaq closing down more than 1 for the tech sector means the star performer in 2019. 25 gains this year. Joining us from new york to discuss, there is a to discuss if there is a faang overhang or if there is room to run, big johnson. Johnson. , craig happening orbigger just a momentary pause . Aig i think this is just a momentary pause. Stocks have gotten a little bit ahead of themselves. From a technical perspective, we percent ofanyplus stocks above rsi, i would not be surprised to see a little bit of profit taking. This is a market that has really been pushed higher really on the fomo trade, fear of missing out. That will get some trade done in washington and equity markets will push ahead. Perhaps the market got a little ahead of itself and todays price action was a reaction to. He commentary taylor you have a chart in your 99 page report called the faang overhang. Higherneed faang to go in order for Everything Else to go higher . Theg i think you will see faang stocks participate. The chart i had included in that particular marketing here for the east coast marketing this week was just to make the point equallythis is an weighted index that is not broken out to alltime highs. Despite the market having made multiple new highs this year, a lot of these stocks have this index. Let me just add that, even if we dont see this faang index breakout to new highs, we will see the expansion and the overall breath of the market in that case. A lot of gets tied up in those faang stocks. I think that could be a very healthy broadening of the market. I think at this point in time, you are starting to see that happen. Taylor one of those stocks that you are bullish is apple. Apples market cap is worth more than the entire s p 500 Energy Sector combined. Walk me through why apple is not overvalued at these levels. Craig first and foremost, lets start with a chart, then i will walk back to the valuation side. That we are making in a series of higher highs and higher lows. The stock will can out of a valuation range over the past six months or so. This is a stock that had taken a time consolidation and is starting to work its way higher. When you look at the overall apple products leadership, it is not a stock that looks like it is tremendously expensive at this point in time. If i could just kind of and my peter lynch kind of add my peter lynch type of perspective, my wife and i had a chance to go to the mall of america on black friday. I am not sure you could have gotten more people into that apple store. Taylor so you are not factoring in regulatory or antitrust overhang in any of these tech stocks . Thinkingspend time about price, trend. Right now, i dont have trend breaks and a lot of these large cap names. I think that is adding to the fuel of the wall of worry. You continue to see stocks, tech stocks, apple, some of these other names continuing to climb that proverbial wall of worry. Right now, and till i get a trend change, we need to play. Hese stocks to the long side taylor is it a fundamental or technical issue . Craig when i was going through and looking for names to include, i was viewing this market from a more positive perspective. I was pointing out stocks that were more constructive. I do have anet, a smaller name. For overall, some of these big stocks and tech names look good. There are a lot of names in the Semiconductor Space that, to me, look like names that still have room to run and work. Taylor we would love to have you back. To expand more on that thesis. Johnson fromg piper jaffray. Coming up, the french president is calling for more control of her big tex. Bloomberg technology is livestreaming control over big tech. Bloomberg technology is livestreaming on twitter. This is bloomberg. Tolor tmobile has jumped an early lead in delivering 5g. The service being offering now will not be the hyped 5g experience that Wireless Services have been posting about. Tmobile says it will offer a much better 5g network if its takeover of sprint is he proved. French president Emmanuel Macron has toughened his stance on big tech. Companies that collect 25 Million Euros in Digital Sales in france. Retroactively applied from the beginning of the year of the move follows a raft fines by the European Union against Companies Like facebook and google. I want to bring in Laura Davidson and washington, d. C. France has been much more tough when it comes to big tech. What are the new laws and conversations . Laura they are looking at a tax , saying the consumers and france are not necessarily paying for the service but that the consumers are there and france should get a piece of that pie. You are seeing a lot of other countries. The u. K. , new zealand looking at passing those laws. In some cases, we have seen more of these get on the books. The u. S. Sees this as their tax revenue. These are americanbased companies and they are saying, if anyone gets to tax facebook, google, amazon, that is us. Taylor has the conversation shifted now to an antitrust or data Privacy Concern . Laura that is part of the concern but really the big tension point is you get the u. S. Saying, look, you dont get this money. The others are saying, you are operating here, you have employees here, our residents are using the service. What are seeing, a large multilateral level, 130 countries sitting down and trying to see if they can figure out some system of which company gets to tax which company. On one side of the other, you have the u. S. And france. France saying, we will abandon our digital tax if you can get others to agree to something. Taylor how does the u. S. Respond to protect our entrepreneurial spirit in the tech sector . Laura that is something we hear about today. The u. S. Trade representative has been looking at this. They opened up this investigation to see if there should be some sort of trade reaction. They are looking at tariffs, some way to punish france to say, look, if you will do this to our tech companies, we will do this to some of your products. President trump in the past talked about tariffs on french wine, for example. It will be a 90 day waiting period with comments and back and forth. The u. S. Is seriously looking at starting a titfortat at all here. Taylor titfortat battle here. Taylor it is notable that they are not ruling out how would you do that in the eu . Laura they are trying to figure out, where would you draw a line of what is big tech and what is a smaller startup . You are looking at pharma, manufacturing. It is a really big 800 pound gorilla that makes it really hard to get every side to agree to the tax. This means that some countries like the u. S. Could end up losing out while some countries like india and china and appointing. Taylor bloombergs laura davison, thank you for joining us. Coming up, china is cracking down on cryptocurrency but miners are still creating tokens. This is bloomberg. Taylor this is Bloomberg Technology global link where we join bloomberg daybreak australia to bring you the latest and global tech news. Im taylor riggs with shery ahn in new york and haidi stroudwatts in sydney. Lets take a look at the top level tech stories of the day. Shery Goldman Sachs made its third and biggest Latin America Fintech bet yet. 125 million to mercardo credi tor in mexico. It plans to use the funds to triple its 100 million working capital portfolio. Goldmans previous two loans companies. Mexican another blow to the coworking market space, rocket space is pulling out of london. The u. K. Employees have been told last month they would be out of work by december 20. Bloomberg has learned san franciscobased rocket space will refocus on Funding Services for startups. Indias shopkeepers are uniting to take on the likes of amazon. Bazaars across the country over the past week complaining that global ecommerce giants are engaging in predatory pricing. In october, indias government announced an investigation into the accusations. Amazon and walmart told bloomberg their operations comply with local laws to operate as thirdparty marketplaces. Those are the top global tech stories we are watching. Taylor the end of the year has not been particularly been kind to bitcoin and other cryptocurrencies. 7 10 of gaining today 1 . Its now at a nearly 20 decline over the last month. It is not just bitcoin. Other cryptocurrencies have also fell off after chinese authorities crackdown on the trading assets. Joining us to discuss is spencer bogarts, general partner at blockchain capital. Take a look at the chart i am showing inside my terminal, all about the fundamentals. Trying to support the 200 Day Moving Average but it does not look oversold just yet as you can see on the screen. Your thoughts . Spencer overall, china late has been driving through the price action of the last couple of months, but you would think it is challenging to read between the lines on what china is doing. We have seen favorable moves in terms of xi jinpings move to blockchain the whole country. We have seen some moves like bitcoin miners who were once put on a list of industries being eliminated from the country, it has been removed from the list. We have seen some crackdown on some of the smaller, shadier crypto exchanges, some of the larger ones seem to be getting more credibility within the country. Does the fate of blockchain, of bitcoin, these Digital Assets depend on a clear trajectory from china . Because as we know from a lot of their policies, it can be one step forward, a couple of steps back, sideways maybe. There is not a great deal of consistency. How high are people betting on the future of Digital Assets . Spencer absolutely. I dont think bitcoins future is anyway dependent on what china does. It is helpful to zoom out and get away from the nearterm headlines because in general, any shortterm trading strategy around bitcoin is the wrong one. The question people to be asking is bitcoin going to be more successful over the next five years than it is today . If we look at the underlying trends, they are very constructive. Bitcoin has gone from being a joke a few years ago to processing 1 billion to 3 billion of transactions daily. Over the past two years, bitcoin has processed more than 1. 6 trillion of transactions. Whether it is that or the other startups we are seeing, particularly a lot of the on ramps of Companies Like coinbase, we are seeing a lot of positive growth across the industry. Taylor what about some of the regulatory overhang and the struggles that facebook, libra has had to face . Does that help or hurt . Spencer the regulatory overhang israel. There are concerns the regulators can make it more di