What this means for his role at the social network as well as square. Plus, we speak to the u. S. Deputy assistant secretary of state for cyber munications and communication policy for an insiders view of the u. S. Versus huawei. First, major changes happening at alphabet. Larry page and sergey brin are both said to be stepping down with Google Ceo Sundar Pichai set to take over that position. Sundar pichai will be the ceo of google and alphabet. Page and brin will remain on the board. How big of a surprise was this . A pretty big surprise. There were questions of how much longer sundar might want to be ceo of google. Google is under a massive amount of scrutiny. He has a lot of things to juggle. There have been internal protests. This really was a surprise where basically he has had to deal with all these things and he will be back dealing with all of the other things happening under the alphabet umbrella which includes self driving cars and other things. Taylor with larry and sergey as visionaries, and sundar as where do they fit in . I think larry page is the main Visionary People think of when they think of google and the driving force, but larry and sergey together, they obviously founded the Search Engine and turned that into what it was today. Larry was the driving force behind the idea that they be seven or eight years ago, google is going to have to do something else. He really pushed them into things like self driving cars and other things. Sundar, his background came from a very core google background where he ran the chrome operating system. He worked his way up the company. He can be seen as more of an operations guide. Certainly, since alphabet happened in 2015, sundar has been the one to deal with everyday things. Taylor stay with us, because joining us on the phone is gene munster. Gene i was not expecting this but in some ways i was not surprised, in part just because of the 10 year, how long both of them had been there. Separately, the concept that the company is moving into a different chapter. Google proper, the next chapter, will be a lot around policy, data privacy, and regulation. What the next couple of years would look like, going through some of the minutia. There is another part of me that is kind of sad because it had such a profound impact on our lives, just a reminder that the greats move on. Taylor how much can this be seen as a vote of confidence in Sundar Pichai . Gene undoubtedly a vote of confidence. I think it is more related to what sergey and larry ultimately want to do than it is a vote of confidence. But it is a vote of confidence nonetheless. If they did not have that, he would not have been the one tapped for the broader role. Taylor we talked a few weeks ago when you had apple ceo tim cook really work the politics. In this day and age, you are not just running a company. You have to be working the politics, working the regulatory issues. Is Sundar Pichai ready and able to do that . Alistair i think he is from a Technology Point of view. If someone asks Sundar Pichai a super complicated question about what data google uses, how is it protected, he will know all of that stuff. He was partly behind building all of that stuff. Technically, he is great. On the showing up for congressional hearings, that is not something he really loves to do. Hes quite a quiet and thoughtful person. I dont think he enjoys being asked things live one the whole world is watching in a sort of contentious situation. But, he certainly can do it. When you compare it to larry page, really does not want to do any of that stuff, that is really the comparison to make. Earlier this year, as scrutiny ramped up on google, larry page, everyone said, this decision today addresses that, larry does not have to be there anymore. Taylor what could be some of the challenges now, being on the board and still controlling most of the shares . Jean the obvious challenge is one that we have covered around policy. I think beyond that, it will be a months oxygen to give the other bets. When we think about what has changed in sort of late state investment, past profitability questions, even corporate sponsors of these are asking questions. That, to me, would be where i would love to be in the room and hear the conversation about how much funding to give some of these other bets. An easy one to talk about is waymo, a radical view to autonomy, basically launching an entire wrapped up and tidy product. This is revolutionary and a huge amount of spending would have to be behind that. That, to me, would be one of the key issues. More broadly, how they want to continue to foster other bets in that 20 time that has been a foundation of working at google. Taylor do you think this can be seen as a good thing, bringing both companies together, having him run both divisions, trying to simplify under a big umbrella . Gene i can see that. Google is definitely the powerhouse of the portfolio companies. That makes a ton of sense. I would not be surprised if, in the next year or two, sundar stays at the top and there is new leadership brought in for google. Taylor thank you very much. Meantime, back here in the u. S. , stocks selling off for a third day in a row tuesday as trade deal hopes dimmed. Tuesdays lows, the s p and nasdaq were down 1. 4 , only to finish lower by a bit more than 0. 5 . Here to talk about why this matters is abigail doolittle. What is it telling us about the stocks . Is it trade or something bigger . Abigail it is probably trade right now. Bumpy start for stocks overall, but even more in the chip sector. Down a couple Percentage Points over those three days, the worst three days since august. The reason i say this probably has to do with trade, the Chip Companies receive a lot of revenue from asia, supply chain deeply embedded within china. If we look at a chart in the bloomberg terminal, it appears that it is a bit of a binary event i had. They bit of a barometer, at least this year, for the trade war. We look at the chart, that tells you overall they like the chips. Take a look at that dip in april and may. The same thing in august, same in late september, early october. Stocks right now above that trendline. It appears we probably have another 2 to the downside. If it holds, new alltime highs looking at the history of this chart. If it does not hold, it could get pretty ugly. At that point, it could suggest it could be even more broadly than trade or that the trade war could eat into the global economy. Taylor as we talk about trade, so often apple, having its worst lines since august. Abigail in all of the news and noise today, apple lost some in the shuffle, but down sharply all the lows. It is another barometer to the trade war given that they received 20 of their revenues. Their supply chain, deeply embedded in china. Some of those apple suppliers we are always talking about. Qualcomm, broadcom, skyworks. The fact that you have the apple complex, it speaks to the rally this year. It may suggest that some investors, there may not be a deal getting done this year selling off these apple suppliers in particular. Taylor it is notable that almost a year ago, on christmas eve, we had that massive selloff. Since then, a big run up. Where do we stand . Abigail what an ugly day that was and what an ugly december last december was. People are wondering, will we climb the wall of worry . Or, too far, too fast . On this year, basically from those Lowes Companies s p 500 heading to its best day since 2013 if you use that as a gauge of what may be ahead, investors would be rightfully fearful. You see gains. History probably suggests that the s p 500 may finish up slightly. A rough start certainly on these trade concerns we are talking about. Taylor abigail doolittle, thank you for joining. Shares of salesforce falling in after hours trading even after they boosted fullyear earnings. The Software Company is also looking at fiscal year 2021 revenue of as much as 20. 9 billion dollars. That means they would see some of the best Revenue Growth they have had in years. Coming up, dorseys move to africa just in time for the 2020 election. What this means for twitter and square. This is bloomberg. Taylor twitter Ceo Jack Dorsey is off to africa for next year. He says he plans to live on the continent for 36 months. He has not said why but his plans are coinciding with a president ial Election Year that will likely be marked with debates about online hate speech and the role Tech Companies play in discourse. Kurt, how suspect is the timing . Probably not ideal. Some analysts saying this is a big year for twitter, not just them but big platforms that will be carrying information about the election. Will they be able to fight fake news, election manipulation . If you have the ceo of one of those companies have a across the world, what could that do to those processes they have in place . The timing is a little questionable. Taylor what you are saying in your story, it is not just twitter, but square. Neither of them have a clear number two. Who do you think could be in place to help keep the show running . Kurt in one case, the fact that there is no obvious number two at the company and they still operate on a functional daytoday level as jack dorsey has two jobs, maybe that is a sign that they dont need a clear number two. At twitter, their cfo does some front facing stuff. That may be the kind of thing. Jack dorsey has talked about remote work, pushed that internally, you will be able to work wherever you are most efficient and convenient. That might not be africa but that does not necessarily mean he will be stepping away for 36 months, he will to speak harder to reach. Taylor do we know why africa . He has talked about cryptocurrencies. Kurt he did mention crypto in his tweet, mentioned africa as being kind of the foundational region. During the month of november while he was visiting. If you think about it for me twitter standpoint, this is a global platform. There are probably millions of people in africa who use twitter. These are people he probably does not hear from very often. Spending some time in these regions that often get overlooked could be good for business at twitter as well. Again, we wont really know until this comes into play, what the criteria is around who will run twitter in the meantime, but that would be the positive spin. Taylor to be fair, twitter has taken probably the least handson approach when it comes to ads in the political election. They have decided not to have any of them on the political platform. Maybe it is not as important as twitter and facebook. Kurt there are two elements for this. One, we will not allow any political ads. They walked that back a little, that it will allow some issue ads. One of their top executives, their general counsel, is actually the one who will be in charge of implementing some of these tough decisions around content policy. It will be her decision ultimately act or not to act. In some ways, that is another burden off of jack dorseys shoulders. Taylor i want you to listen to a soundbite of Facebook Ceo Mark Zuckerberg on the political ads. Mark at the end of the day, in a democracy, people should be able to see for themselves what people are saying. Even if the ads contain false information. Mark people should be able to judge for themselves the character of politicians. Taylor that was on cbs this morning. Kurt this is what he has been saying all along. Ever since we saw him give that speech in georgetown in october, he has stuck to the same talking points that it is not facebooks role, not techs role. The people are smart enough to see through these lies. A lot of people say, you are profiting off of these ads, it is your responsibility to step in. What is actually more interesting is that he is not really wavering despite all the pushback. Taylor thank you. Coming up, tmobile and sprint will face fewer opponents in their antitrust file but that is coming with a cost. This is bloomberg. Taylor three states have agreed to keep their doors open for the merger of tmobile and sprint in exchange for better deals. Tmobile has brokered settlements with texas, nevada, and colorado. The case is scheduled to go to trial on december 9 in a manhattan federal court. What do we know about the differences between these states and what they negotiated . It is actually now four states. Mississippi is in that group, too. I think it is not surprising, to be honest, that some states have settled with the companies. I think initially, when the lawsuit was filed in june, you may have had different reasons. Some may have been just concern that the negotiated remedies beyond what they negotiated with the doj and fcc, to be sure that some of those promises about 5g buildout would go to their state. If you look at the four settlements, they are similar. They all involve promises to build out 5g certain portions of the population within three years, then more within six years. Some include payments. Others include guaranteed employment levels. Taylor do we have any sense if this will go to trial december 9, or do we think we could see a more broadbased settlement before then . Jennifer we could see more settlements but i am very certain it will go to trial. It starts monday. I dont think new york and california are interested in settling the suit. The parties are gearing up they just filed pretrial briefs. The states that are still in look pretty doug in still. Taylor i want to show you a chart basically tracking tmobile in blue and sprints share price in white. Sprint pretty much unchanged going back to last year or so. Analysts are a little worried. A lot of analysts are hoping for a deal. How much pressure is this putting really on sprint and tmobile to make a deal . Jennifer i think it is putting a lot of pressure on them. This has been a really extended interim period. It really puts a strain on companies business, especially the sellers business. Sprint did not negotiate an antitrust breakup fee. That means however they were hurt during the interim period, they will not get recompense for it after the trial if it is blocked. I think they are working hard to settle with the rest of the states. Taylor any sense what the competitors feelings are . Tmobiles coming out and saying they are first to get 5g and saying they will be a real threat if this merger goes through. Have we heard anything from the competitors about this . Jennifer they have been quiet for a reason. When a competitor can complain about a deal of it can have a strange effect on how the doj looks at the deal. It can suggest that the deal is actually competitive, that it will force that other competitor to lower prices and compete more strongly. At t, i think they are just watching because i think there is a good argument here and i thick it is hard to predict what will happen and if this deal will be able to get closed in 2020. Taylor bloombergs jennifer rie, thank you for joining us. Coming up, an insider look at u. S. Versus huawei. Our conversation with u. S. Deputy assistant secretary of state rob strayer is next. This is bloomberg. Taylor this is Bloomberg Technology global link, where we join bloomberg daybreak australia and bring the latest in global tech news. Im taylor riggs in san francisco, with shery ahn in new york and haidi stroudwatts in sydney. Lets take a look at the top global tech stories of the day. Haidi france says the European Union will retaliate over the proposed u. S. Response to its digital tax law. The tax hits large american Tech Companies such as google, facebook, apple and amazon. The Trump Administration announced it may slap tariffs on 2. 4 billion worth of french wine, cheese, handbags and other products. Starting tuesday, amazon needs to check off a patchy record. The companys prime Video Service will begin showing the worlds richest competition to millions of fans. Amazon is carrying 20 English Premier League matches this month. Previous attempts have been mired by technical glitches. And a California College student is suing tiktoc. It alleges the company is funneling data to china and tiktoc is using videos to create an online profile for targeted ads. Tiktok has come under fire in the u. S. For alleged National Security concerns. Those are your top global tech stories we are watching. Shery thank you. The Trump Administration has been looking at chinese tech as a National Security threat for some time now and it is focused on Companies Like huawei, zte and tiktok. A new u. S. Agency has a 60 billion budget to help developing countries and businesses find alternatives to Companies Like huawei and zte. Joining us now from washington is robert strayer, the state Department Deputy assistant secretary for cyber and International Communications and information policy. Thank you for your time. This latest approach seems to be the carrot approach where you are trying to convince these developing nations to stay away from cheaper chinese tech. Is this an acknowledgment that the stick is not working . Amb. Strayer we have sought to work with developing countries to make sure they have reliable technology. This is not a different approach to the matter. Independently, we are working with partners and allies to educate them about the risks of 5g. That there can be the potential for vendors of 5g to be controlled by other governments that would require them to take actions that are not in their countrys interests. There is not a rule of law for a company to object actions in line with their intelligence and security services. Shery back in september, you said there could be punishment for allies who refused to ban huawei. What is being discussed . Amb. Strayer we have set for some time, we want to remain very Close Corporation on Law Enforcement and military matters with governments around the world. When we are not able to share information securely, as would be the case when they have untrusted vendors in the 5g network, we are going to have to reass