Calls for 2020 what sectors he is betting on. We examine streaming content providers. As disney and apple enter the fray. Peacockl 2021 hold as enters the market. A partial trade deal between the u. S. And china will ease a key risk for investors. The index rose in the wake of the agreement. For more, lets bring it bloombergs Abigail Doolittle. Is this all about the trade agreement . Abigail interesting question, because the euphoria we are feeling today, it would seem that way. Rallyis has been a huge year. 40 ,tocks into october of so we do have solid gains after that fact. The tone was set earlier in the year. Last year, we had that horrible first horrible Fourth Quarter. This year, going into the end of the year, it feels as though traders and managers really trying to hang onto those gains and stoke them. We seem to be having more of that response happening today and probably into year end barring a shocking sort of event that seems unlikely right now. Upgraded today on nonrecovery. I know that helped out those shares as far as micron and others. Is this justified . Abigail last year, they were calling a bottom in nan pricing. Stoxx, up nearly since 2009. T nandue, we are seeing pricing, the type of memory used others. S and dram pricing also in that area where it appears to be bottoming. Maybe a little bit easier to call bottom but that does not look like a true bottom, at least not yet. Maybe these analysts are seeing something fundamental relative to demand that makes them think it is not quite relative to pricing just yet. Kurt what should investors be concerned about . Abigail perhaps the biggest concern is the degree of this years rally. Uph up more than 40 , apple more than 70 . Another huge year after those sorts of big gains. Unless it is the euphoria of the late 1990s. But it does wear pressure on the fundamentals. We have been in and earnings recession. The Third Quarter was better this year. Most expect it to end in the Fourth Quarter of this year. If that does not happen, that could really take a chunk out of the rally and make 2020 difficult. Plus, trade. That agreement still has to be signed. President trump indicated that could happen over the next few weeks. Then we are looking at phase 2. 2020 could bring some new risks that are not priced in, at least not now. Kurt certainly something we will be following. Thanks to bloombergs Abigail Doolittle for that update. The final stretch of the Holiday Season and shipping deadlines loom. A decline in fedexs delivery performance. Here with us, spencer, who covers amazon for bloomberg news. What is happening here . Spencer you basically have a big fat vote of noconfidence in fedex from amazon as we enter the Holiday Season. These are the dates that people decide, will i buy this online and hope it gets here in time for christmas or not. Amazon has narrowed the amount of time people are willing to make that call. Thinks fedex cannot monitor the pledge for prime thevery, cannot meet pledge for prime delivery. Kurt i am wondering why there is heightened attention on this right now . This andthey analyze figure out, when will the delivery cut off feet, who can we count on, who can we not . As amazon emerges as more of a logistics provider, yes, indeed they will be a threat to Companies Like fedex and ups, they are creating their own logistics operation, there is heightened sensitivity to this kind of news. Merchantsare amazon reacting so far . Merchants who rely on this service. If you basically have your Holiday Plans set out and you know who your carrier will be, if you have committed to buying a certain amount of capacity from fedex and you have a rate you are comfortable with, it is extremely difficult for you. All of a sudden, you have to find alternatives. Charge you handsomely deliver packages now even if they have room. Kurt is there anything they can do or is this kind of out of their hands . Spencer it is definitely out of their hands. It is a race to find an alternative. We never know. Every Holiday Season, ecommerce sales grow by double digits. Every year, it is a new rates to find new capacity. That is one of the reasons amazon launched this business to begin with. They saw demand where they thought their partners did not appreciate the extent to which ecommerce demand was going to grow. Basically, they have to scramble right now to find a truck to take a package to their customer. Kurt obviously, regulators are looking at tech right now for a lot of antitrust reasons. Do you think this has a big impact on a lot of the antitrust stuff going on in the Tech Industry . Anncer because amazon is ecommerce platform, ecommerce marketplace. There are estimates and the u. S. That amazon controls 70 or more sales,mmerce marketplace like ebay, or walmart has a marketplace now. Amazon clearly dominates online marketplace sales. Dominancen use that to shift more business towards their logistics services, that can be an antitrust nono. That will be important to watch because that is something ups and fedex do not have. Cloud to is using that steal business away from them, that can be something alarming. Kurt thank you. Spencer soper in seattle. Bid thatlost a court would require them to reclassify drivers as employees. A judge refused to dismiss the case entirely. A decision stemmed from a driver filing a complaint saying that uber failed to pay for Services Based on how he was classified. Stop hate moderators speech and report crime. But some moderators say the job is too much for their Mental Health. 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. Moderation is becoming a bigger challenge as tech giants host more and more more more content online. The job itself is causing trauma. Newton has written about this exclusively for the verge. He has a new article out about moderation at google and youtube. Is basicallytory two stories in one. I tell the story of these lowpaid immigrant contractors who work in austin, texas, hour, workingan ve,what youtube calls the w violent extremism. I also tell the story of a young woman who had a great salary, goldplated benefits, but after a year she got ptsd as well. Kind of a story about the Different Levels of care you get depending on whether you are a contractor or not. Similaru wrote a investigation into facebooks content moderator practices. Did you notice a lot of similarities or were there a lot of differences . Similar in ately lot of ways. The Companies Operate this part of their business like a call center. There were noticeable differences. Facebook gives their employees about nine minutes a day to decompress. Google gives them two hours. That, i think, is better. Havingrage moderator is context of give us how things have changed over the past couple of years. Mark when he 17, they had this big hiring. Googlewide, they hired 10,000 moderators. Teeth areally cut its decade ago with the copyright fight with viacom, all these legal challenges where they built up their liability, we will release it to the best of our abilities according to our guidelines, but they had a very handsoff policy. 2017 was a flashpoint year where they had a series of advertising and content problems. Clearly, they have a long way to go. They, like facebook, are also pushing for algorithmic and sort. Machine learning systems kurt a few months ago, facebook raised the minimum wage for a lot of their contact a lot of contract workers. What are you hearing from the companies in terms of policies . Casey the biggest fallout so far has been that one of the Major Companies doing the work said they will exit the business. Some combination of brand risk and business trouble led them to say to heck with it. A lot of these big consultants are in over their head. They see that giant contract, they want the 100 million or 200 million, then they get these folks in the door and figure out they are over their head. Kurt to do that, there needs to be another solution, you talked about maybe transitioning this work to official intelligence. Both facebook and google so that was the planet some point. Do have a sense of how that was the plan at some point. Do you have a sense of how realistic that is . Ark with video, it is still long way to go. The more pressing problem is political. Where do you draw the line . Child pornography and terrorism videos. Debate aboutctive white supremacist, nationalist content. All the platforms are running up against this pressure. Politically, they are being seen as anticonservative. I think that will be a bigger hurdle than the technical one. That it seems to me facebook and google are dealing with a lot of the same issues. Are there any ways they are working together . Mark the hash network they have around child pornography and terrorism. They are lobbying to repeal section 230 which is shielding them from certain liability. D. C. Working together in to make sure they can continue to have this user generated advertising Business Model in the future. Read theey, when we personal stories of the people you have spoken with, it is pretty disheartening, to say the least. You or these companies have any sense of the longterm impact . Is one thingd that i find frustrating, that they are not investing in finding out the longterm consequences of this work. They are not isolating the folks ues. Are in these que even though, for four years now, they are seeing employees going to their managers and saying, i need to take medical leave because i have ptsd. Kurt 2020, you talked about how some of these thirdparty groups may get out of the business entirely. Obviously facebook and google still have millions of posts. What happens . Think i am cynical and i there will always be some consultant that will step up and say, we will do it. The question, what sort of conditions will facebook and google tolerate . You, keep up the good work. Thank you for being here. The verges casey newton, and uber technologys mark berman. Theng up, technology and relationship with content creators. And, Bloomberg Technologys livestreaming on twitter. Check us out technology. Follow our Global News Network at quicktake. This is bloomberg. 2019 an easy year between 19 has not been an easy year for social media platforms. Very people who built their careers on these platforms. To discuss, we are joined by john shahidi. We just had people talking about a lot of the issues faced by content moderation. I am curious if all of this criticism has affected your relationship with the youtube and instagrams of the world. Necessarily not affected the relationship. The content and platform world, you always have to adapt to new policies, algorithm changes. It is just another thing we have to adapt to. With a know you work whole range of different platforms. When you are selling to a brand or partner come how do they view youtube versus instagram or tiktok, all of these platforms . Are there certain ones that they are more or less comfortable with . John the brands we have been working with are most interested in you two. We have worked with in youtube. We have worked with google to create longer content. Stoodeople come to shots studios, they want something that will create more engagement. Kurt the election is coming up next year. Do you think it is something we will see a lot of, a lot of politics coverage from creators . John i think so. I think you will see creators speak up a lot more on different topics out there that are important, whether it is politics, climate change, debt. I think you will see creators start speaking up more to educate their audience. Kurt what other kind of stuff do you have in the hopper . I imagine, on the journalism side, kind of a 2020 coverage plan, what stuff will we see from you . Yearsover the last three since we made the pivot into shots studios, our big focus has been comedy. The last year and a half, we usedgotten into music and youtube to successfully launch the careers, including lele pons. We are going to start creating videos thatonal inform our audience about what is important in the world. A littlementioned igtv earlier. You were at the launch about 18 months ago. It does not seem that it has caught on the way instagram had hoped. What do they need to do to get igtv more on the map . John i think it takes time. The User Behavior on instagram is so different than a video platform. It took youtube time. 10 years ago, you are watching quick home videos on youtube, charlie bit my finger types of videos. Then it was hard to watch a five minute, six minute video. Now, the trending section on youtube, half of the videos are over 20 minutes long. It takes a while to create User Behavior. I think it will take instagram a little bit of time. I am a believer in it. I just think it takes some time. Has been used to uploading photos and short form video. Kurt one of the ways instagram made a lot of news was they said, we are going to test removing the like count from the feed. How does that fit with some of your creators . Is that something you are they are taking about . Be anit is going to interesting move. I am an advocate of positivity online. I think removing the likes will harm the business a little but i thicket will help it in the long run. But i think it will help it in the long run. Comparing posts to previous posts, start thinking, that is thee creators come in, toxicity of social media comes in. I think when you start removing that, you can share what your life is about, and that is what social media is about. Shahidi, from shots studios, thank you. How disco is taking on instagram without likes or comments. This is bloomberg. Kurt this is Bloomberg Technology global link where we joined bloomberg australia to bring you the latest and global news. Lets take a look at the top level tech stories of the day. They are getting out of uber holdings quickly. Cofounder has sold it brings has proceeds to more than 2. 1 billion. Remainsining uber stake about 1 5 of his 3 billion fortune. A japanese banker is taking a hard look at its most important clients. Some say they are less comfortable with his management of softbank. Softbank reported 6. 5 billion loss the last quarter, blamed on falling valuations of investments of wework and uber. Billionaire deborahs mavericks owner mark eban is selling one buying avestments and technology company. Cuban is the biggest investor. Analyticsovides its to a number of College Sports teams. Those are the top global tech stories we are watching. Kurt it is a social media platform redefining the way jenz is posting genz is posting. It has taken the social media steam seen by storm. It has generatedgavv we are joined by the cofounder. This has been around since 2011. I feel like this summer was the big moment for you with this. How does that happen this far into your lifecycle . Guest we have been growing and it is something we have seen this rising trend definitely this summer with the meme, it went to all new heights. I think a lot of that has been a lot of how we have bit built this from the beginning. Vsco was built without likes or comments. It is a safe space to be who you are and create and express yourself. We up what we are seeing specifically with genz is they are looking for this outlet where they can share how they see the world. Shery the thing about social media and what attracts these young people is engagement you see. How do you compete with axel apps like tictoc . What you will hear say is it is more like a social to broadcast to as many people. Would tictoc it is to find humor and fun and pass the time. Vsco is not about sharing how you want the world to see you but sharing about how you see the world. Kurt unlike most social media platforms, your business is not advertised independent. You have a sub scription offering. How do you convince people to pay for something what often they have a lot of other free outlets to post or share . Joel from the beginning vsco has built something of value people would be willing to pay for. There has always been a component of praying paying for. Paying for tools. In 2017 we brought that into a complete package. Last year we launched with video that brought up our membership to over 2 million members. We see that continue to grow. Shery tell us about your acquisitions and how you plan to grow besides editing and photo sharing. Joel like i mentioned previously, one of the biggest girls last year was biggest growths last year with a recent acquisition we , we are excited by the technology they were building. They would just about to launch. Helping to advise them on that launch. Kurt you just completed a new study on genz. These are a lot of your users, teenagers. What was most interesting that you learned . Joel we surveyed over 1000 genz members on vscos platform. The one thing that was not surprising to me was over 56 ancient that through social media they have been able to find their group, their friends or where they fit in. A lot of that was also around 46 of them identified as an activist through this, or 46 identified as creative. 41 flipside of that is that said they were feeling really anxious about going home for the holidays and not being accepted for who they are. This is really something that i think has grown at a much larger scale. 46 said they feel judged by their social media posts. When i was young it was really only what i said around the table, and now i cannot even imagine going home for the holidays and having my entire family judge everything i posted the previous year. Kurt i am not sure that is genz specific. I am sure a lot of people can relate. We were talking earlier about instagram, removing likes from the feet. You have never had like counts on vsco. Tell me about the decision to do that. You were ahead of your time a little bit. Joel we were very intentional. One of our biggest inspirations around that was it is like an actual museum. When you walk into a museum you are not seeing the net worth of the creator of the wall, you are not seeing how many people have walked through that day, you are definitely not seeing emojis at the bottom of the work to tell you what to think about it. For vsco it was how can you have this personal connection, and how does this inspire you to go and create . From the beginning we are a protected community that way, and we really do welcome others to that because it really is a positive step and the right direction for Mental Health and impact social med