Munster. Hospitality disruptor. Shortterm holds that combine elements of hotels and apartments. We will hear from the ceo. But first to our top story. Record highs on tuesday on averages, but Something Interesting happened during the day. The s p 500 tech index closed down slightly. Is this a sign of trouble to come . Joining us to talk about what this means is bloombergs abigail doolittle. I want to take a look at a chart im showing in my terminal which highlights some of the profit taking. I am wondering if that is what happened today given the overbought levels on the tech sector. Abigail i think you are dead on with that, taylor. That is exact a what that represents, you little bit of profittaking. That stock up so much this year, and that is really what makes today so interesting, the nuances you were talking about, the nuances, each finishing at a record high. The stocks and chip index also finishing i record high. The reason that stands out is they are leading up all year, up more than 4 on the year, on pace for its best year since 2009. When you start to see a mini divergence like that, the first not record close in 4 sessions, you want to pay attention, especially without chart showing the rsi can overbought territory but a lower high from the last time it was overbought. Plus, the tech sector right now, more than 10 above its 200 day moving average. The last time that happened, consolidated down. Could be a push to the downside in the weeks and months ahead on exactly what you are talking about. A monster year for stocks. Taylor it has been a monster year. Another sector we continue to follow is the stocks index. I want to come and take a look at a chart we are showing inside my terminal. A lot of this is on demand pricing. Mizuho, they are out with a note saying we could see a bottoming out in these prices. What are you seeing . Abigail this is a little puzzling to me. The official bottoming for pricing. The chart we are looking at, nand was on bottom. It was showing a lower low. On the other hand, stocks going so high. It is the idea that memory pricing is going to recover. That chart does not support it. Very difficult to call a top or bottom. You want to see the last high ticket out, suggesting there is a true bottoming process. That is certainly not showing in that nand chart, at least yet. Taylor i want to pulled it over into a stock specific company we are continuing to look over today and tomorrow, which is micron. Also lacking. You have seen micron continue to jump higher, getting another upgrade this morning ahead of earnings tomorrow. What do you make . Abigail that is another extraordinary chart. Divergence again with nand. The lower low. Nand is interesting because it is the processing memory. It is used more so by iphones. Dram typically leads. That is the memory used for storage and servers. But that chart does not look all that different from the nand chart. It looks like unless these analysts know something that will cause the pricing to go well higher, maybe they are giving ahead of themselves. It looks like a bottom could be setting up, but one that might happen in the second half of 2020. Meantime, some stocks up 70 , 80 , 90 , 100 on the year. It could leave them high and dry to start the year. The street is doing what they are good at, setting themselves up for their client. Next year, making the big calls. Stocks are falling. Next year for the chips could be a bit painful perhaps. Taylor i want to bring this full circle and look at some of the Software Stocks we talk about so often. One of those is microsoft. Red bush also taking a look at microsoft this morning, saying they could be poised to win some of the cloud wars particularly when they face amazon. How is microsoft going to take on amazon when it comes to the public cloud market . Abigail that is a great question, taylor. That will be interesting to watch their strategy evolve with time to see if they are able to do that, but red bush is very positive on that possibility. Saying while amazon has been winning it, they have the Growth Potential there. Something i like to point out with microsoft slightly down on the day, that goes to your first point, profittaking. Microsoft up more than 50 on the year, even though top and bottom line growth just in the low teens. Investors starting to weigh that a little bit. That is weighing on the tech sector. It will be interesting to see whether more chips come off the table, but it sounds as though over the longterm, the Cloud Business will continue to help propel them perhaps higher. Taylor thank you to bloombergs abigail doolittle. Now to another top story we continue to follow. Wework obtained 1. 7 billion in financing in a fundraising push by goldman sachs. Bloomberg has learned the deal could free up roughly 800 million in cash for the struggling officesharing company. It is the first hurdle cleared. It pledged to put together 5 billion in Debt Financing for wework as part of a bailout package. We are joined by gillian tan. What do we know about the 1. 75 billion in the midst of the broader 5 billion package . Gillian goldman has underwritten this. They are tricked to syndicate out of the 1. 75 billion line of credit for the bank to maybe retain a portion of it obviously. It frees up wework to spend on growth to reinvest in the business, to really focus on its core sharing business in its key markets that it identified and to eventually get its goal of being profitable. Taylor do we know anything about the 3. 25 billion as part of the broader restructuring . Gillian we do. We know it will be 1. 1 billion up secure and then 2. 2 billion of unsecured. We are not sure. They have not come to market yet, so it is not clear. But again, bondholders really appreciated seeing goldman step up. Up anyone since in the past month alone and will continue to go up as the package is put together. Taylor i like that you also mentioned freeing up 800 million in cash. So much of the endless reaction comes on the use of cash. You talk about investing and growth. Is that where they want to see this 800 million in cash being spent . Gillian i guess it continues to be about growth, but it is about profitable growth, instead of going at all costs, which is what the company was on previously. The company is focused on its key markets, like london, new york city, san francisco. They have identified 12 markets. Already committed to a bunch of spaces. They need this cash to construct to fill out the spaces, to continue growth in markets that they believed can eventually be profitable for them. Taylor you smartly brought up the bond price reaction. We say the smart money is in bonds. Investors are believed. I want to take a look at the chart we are showing in the terminal, which is . 82 on the dollar, a readout off of the . 70 on the dollar we had before news of this deal was struck. How long though do i wonder can the company last before it goes back and tries to get a new loan . Gillian that is the 3. 25 billion we just touched on. It is unclear if these bonds will be taken out or if they will be left hanging out there. I think they expect the companies to come back to market early in 2020, which is around the corner now. Taylor bloombergs gillian tan, thank you for joining us. Facebook says it is hiring contractors to one of his partners for a new program. The findings will be shared with a thirdparty back checkers as additional context as they do their own official review. The company says they are partnering to make sure that the pool of Community Reviewers represents the diversity of people on facebook. Coming up, big tech is on a quest for dominance in consumer gaming. We will discuss how it is all shaping up. Syntax with one of the latest unicorns. If you like bloomberg news, check us out on the radio. You can listen on the bloomberg app, bloomberg. Com, and in the u. S. On sirius xm. This is bloomberg. Taylor apple wallet, uber money, checking accounts, it seems like everywhere you look, big tech is getting into the Financial Services game. So what is that trend doing to syntax . Henrique dubugras is here. He is the ceo of a brex, which minted its a unicorn this past summer with the 2. 6 billion. Welcome to the program. I wonder given how big competition is, how competitive the space is, where do you see the next step in terms of opportunities . Henrique thank you so much for having me. I believe there is a clear distinction between distribution and actual innovation in Financial Services. I think a lot of the big Tech Companies, what they are doing is creating new Distribution Channels for existing products. So for example, amazons credit card is issued by jp morgan and american express. I truly believe that if there is no Technology Development in the back end, it will not change much. I think a love the opportunity are for both firms that actually rebuild the Technology Behind it and do not use the technologies built by the bank. Taylor so as you talk about that and some of the partnerships, i noticed you have a partnership with mastercard. What are you hoping to bring them . What are they bringing you in terms of the technological innovation . Henrique the exchange of knowledge. They have been working with banks and a Global Market and have a key beleaguered a lot of knowledge and expertise over the years. We bring in the side of technology and education from silicon valley. We can learn from them and they can learn from us. We get to use their big distribution network. Brex card works anywhere mastercard works. Taylor how are you hoping to differentiate yourself . We talk a lot about uber money for example. With your technology, but also you hoping to use to try to make sure that you stand out in what is a very crowded field . Henrique the first thing we do is focus on businesses instead of consumers. A lot of the focus has been on building Financial Services for consumers. Number two is we rebuilt the entire system from scratch. We dont use any Legacy Software from banks. We rebuilt everything from scratch. That allows us to build a fudge analogy that did not exist before. For example, not requiring any kind of personal guarantee on business cards. Or having extremely simple expense management on your card. Taylor how are you expanding outside the traditional syntax world . I am thinking commerce or lifesciences. Are you taking on clients from those sectors . Henrique we are basically of the view that you cannot fool businesses together into one thing. A start up Ecommerce Company in a hotel and restaurants, they are completely different businesses. In the future, a lot of the businesses will be catered to the verticals instead of being generic to s ps. The same way in the consumer world, there are focuses on millennials and banks. We think in businesses, it will start to be on verticals. Taylor we have been showing your valuation, getting a new 2. 6 billion valuation over the summer. I asked a lot of the unicorns in here if it is helpful or hurtful given the extra scrutiny that comes with now being valued at more than 1 billion . Henrique i think for us as a Financial Services company, it is more on the helpful side. Brex is a fairly intense capital business because we are lending money. In order to lend money, we need money. To establish with our customers and stakeholders, the valuation definitely helps, but more than that, being able to raise a large amount of money is what is enabling us to go and disrupt this sector of Financial Services, which is full of very big and established banks. It is hard to do that without the money. Taylor is it easier to go public rather than staying private if you are taking on the big large established banks . Henrique i think being public is part of a companys life. It needs to be the right state of maturity. Even though brex was valued at 2. 6 billion dollars, we were a young company. We were founded in march roughly 2. 5 years ago. We will get to our stage and going public but we are still young and outward element. Taylor you talked about doing more verticals. What is the appropriate strategy outside an ipo . Could it look at being bought out or being sold up into one of the verticals you mentioned . Henrique we definitely want to stay independent. I think that because of the success of other startups, there is a lot of money in the private markets. We have been able to raise over 300 million on the private market. That has been a lot compared to what a company was able to do 10 years ago or 20 years ago. For sure, now you can stay longer private and still raise a lot of money, but we for sure want to stay independent. Taylor where do you go next in 2020 . Henrique in 2020, making our second product, brex cash, work, which is basically bank management. A Cash Management account. Companies can do wires and earn yield on their money. Taylor always a pleasure. Thank you to brex ceo henrique dubugras. Coming up, making money while you shop. A japanese ecommerce site wants to help you do just that. We will hear from the rakutens president. That is next. Bloomberg technology is livestreaming on twitter. Check us out on technology. Be sure to follow our breaking news network on quicktake on twitter. This is bloomberg. Taylor lets take a look at todays top calls. Starting with microsoft. Received a massive Growth Potential in the cup competing business. It was on clearly won the first phase of current spending. The next will be dominated by microsoft as it significantly narrows the gap over the coming years. Downgraded to a sell from neutral. The companys revenue is expected to decline next year. The company losing market shares as huawei will try to support nonus suppliers. It would not be enough to offset the declines in other instances, the analyst wrote. Guggenheim analysts with a buy rating and a 90 price target. Saying it is wellpositioned for small and mediumsize businesses. The companys effort to move upmarket can drive Sustainable Growth in mediumterm. Those were a look at the top tech calls. It is the final stretch of Holiday Shopping season. One ecommerce platform is confident it can attract with the best deals at a cashback program, but how does the chinese Online Retail company make money . Rakutens president spoke to bloombergs alix steel in an exclusive interview about their Business Model. Kristen the Holiday Shopping season is really interesting this year, particularly because we have one less week between black and christmas this year. So what we are seeing is unprecedented deals at a massive amount of retailers. You are definitely seeing market places pop up in a big way. Their deals are aggressive but also an interesting direct to consumer world, we have a lot of retailers like all of these smaller players that are increasingly taking a place in the retail stage this year. Alix where are they shopping . Is it going to be ecommerce, Retail Stores . What areas are seeing the biggest uptick . Kristen in terms of where people are shopping right now, we saw a lot of aggressive ecommerce shopping around cyber monday this year. Cyber monday was definitely more than black friday when everyone came out to play. With the consolidated time between black friday and cyber monday and christmas this year, it will change the patterns of consumer spending. We saw a big pop around cyber monday. There was a bit of a lull while people got ready for the Christmas Holiday season. This week, it is getting really aggressive again. This is one of the last days for people to shop online before christmas, when things get shipped to them before christmas. What we will see this week is a gradual shift to things like buy online and pick up in store, and more instore shopping. We do a few things that are attractive to consumers. We pay cashback on transactions at 3500 plus stores, which in its own right is attractive. The second thing is we have all the stores Consumers Want to shop at. We really have a Broad Spectrum of stores in the retail industry. Everyone is very well represented. The third thing is we amalgamate all the deals from the retailers. We allow people to stack cashback on top of retailers sales that already exist. If they have a coupon code or a sale going on, people can start cashback on top of that coupon code and sale and then use the rewards and it gets really aggressive. A lot of value seeking customers and people looking for the best deal. Alix how do you make money . So where can you can make one for one. What is the Business Model . Kristen we have about 13 million members. A very large audience of people. Companies pay us to send traffic to them, so they pay a commission on each of the transactions that our Companies Make and then we share that with our customers. So it is a pretty easy and simple Business Model where everyone wins. They get the traffic and our members when in terms of the cashback. Alix like walmart and target has, does not put a step over you . They dont need you as much anymore . What do you notice . Kristen not necessarily because it was a subsegment of customers for whom this is a very attractive Value Proposition and they shot this way regardless of who is or who is not on our platform. They will shop with the people on our platform because they are very loyal to us. Even if people get better at on the, we are playing increasingly in the instore cashback space so we offer not only online but also instore cashback. But also, there are groups and audiences that these retailers cannot reach without us. Taylor that was rakuten president kristen gall. Coming up, help wanted. Must work well with robots. The finance industry is looking for a few souls who can get along with metal colleagues. We will explore a. I. In banking, next. This is bloomberg. Taylor this is Bloomberg Technology global link where we join bloomberg daybreak australia to bring the latest in global tech news. Im taylor ri