Transcripts For BLOOMBERG Bloomberg Technology 20240712 : vi

About how his company is positioned. And speaking of 5g, the chip industry stands to benefit from it all i talk to a guest on everything from trade to more. First, Steve Mnuchin downplayed the chances of a stimulus deal before the election. Lets get the latest on Market Movers with abigail doolittle. Emily it was another topsyturvy day and officially a bearish reversal third stocks open higher prior to Steve Mnuchin getting those comments around stimulus target to reverse lower. Once those comments were out, a stronger leg down to investors a little unnerved by the idea stimulus may not get done the election but there are nuances suggesting maybe some of the skinny deals will get done. 7 the500 is down nasdaq down. 8 . The data transport really helped out by the airline. Perhaps again on hopes around the idea that some sort of deal for the airlines could come through even though some sides are saying that cannot happen. Crude oil also happening so you could bring in the idea of a reopening theme. So nuances on the day. Argue that as important is amazon. Com. On the day, the stock started higher and then started to drop lower. There are no reports in terms of how the prime day event has gone today and today. When you have the stock selloff like this on the day of the event, you almost have to wonder what the numbers will be like. Will consumers have some kind of Online Shopping teague . Fatigue . Either way, we dont know. It is just speculation on my part. The stock is down sharply and that was a big drag. That is when stocks really started to go lower. Supporting the idea it could have more to do. Some of the other stocks are also week on the day. Netflix, despite the fact that banks are positive on the report coming up next week. Lower on the other hand, you have apple paycheck the others on the day a little bit higher. Mixed moves, overall it looks risk on there are nuances to think it could be some of the smaller stimulus packages that could get done and maybe some small optimism around reopening given the fact that oil is higher. Emily alright abigail. Thank you so much. We will see if the topsyturvy nest continues into the week. Facebook saying it will reduce distribution of the story about candidate joe biden. Facebook said it was seeking to slow the pace of the spread before the spread in Fact Checkers had a chance to evaluate its authenticity. I want to talk to kurt wagner who covers facebook for us. This is a pretty dramatic step. The New York Post is a mainstream applicant publication even if you dont agree with the town and certainly not partisan. What do you make of this move . I am pretty surprised. Facebook pointed to a blog post from over one year ago that said they do this routinely if they believe the story might be. Isleading or wrong if you think about where it is coming from and who it involves, it involves joe biden who is running for president it is a drastic step to try and get ahead of the spirit a lot of our perception of whether or not they did the right thing will be determined if we find out if the story is true or not. If we find out this is a legitimate story, it will look terrible for facebook because they got in the way of it spread we find out it is indeed misleading, it will be quite a different story if they got ahead of something that could be really damaging. Emily to clarify, post is reporting that emails repeatedly show that hunter biden introduced him to a Ukrainian Energy film which contradicts what the Vice President has sent. Bloomberg has not independently verified to the authenticity of the emails that the post claim to have seen. Tweet fromoint out a communications at facebook, saying that while i will intentionally not link to the near post, i want to be clear story is eligible to be fact checked. In the meantime, we are reducing distribution on our platform is going to get bonkers as we get closer to the election. What do you make of it in the context of where we are now . What was interesting because facebook has been warning for over a month now about leaked campaigns. The idea that one side or the other would get their hands on documents and leak those to the press and drag candidate through the mud, it seems pretty clear this is what that is. It is clear this violates the policy around distributing hacked material. In some ways, companies saw this coming. They had policies in place to deal with stuff that does get hacked and leaked. The question is whether this is going to be legitimate emails and if it is all true or if it is some kind of damage they got ahead of. Emily talk to us about how twitter has responded heard they put the story behind warning have not locked or anything like that where does twitter stand in relation to what facebook has done. Is a unique situation i have not seen much of. The link is Still Available on twitter and you can share it, but when you click on the link as a user going to the new york most, you go to this warning screen they have put up and they are asking you are you sure this is something you want to go read or would you like to go back to twitter . They mention the fact that it could be misleading. They mention it could be sammy. Spammy. They are trying to prevent people from seeing the story not in the way they usually do where they add a label directly. In this case they are throwing something up between twitters website and the new yorks website emily in the last few days and weeks facebook has taken more dramatic steps. The holocaust denier situation, cracking down on and tiebacks ads, banning qanon. Do you get the sense that their position on free speech is fundamentally shifting or that this is only an electionspecific moment . I think they are asking the question we are all asking as people have been covering his company for a number of years and wondering why it is happening at one time. Is thing facebook will say they oftentimes have pointed historically to this idea of realworld harm. That if something our service can cause realworld harm, we will take it down. When you look at how things have involved over the last month or two with qanon and the president and his son calling for people to police the polls, when you look at discussions of the flu and coronavirus, you can see where this type of content could be used to cause realworld harm. Facebookis allowed on and they lie about the election, that could be facebooks fault so they are looking at how the stuff plays outside of the service and i think it is driving a lot of these decisions right now and i think that is the most likely expedition for why we are seeing a lot of this happened today. Pretty dramatic, and as you point out, unprecedented step by facebook and twitter kurt wagner, i know you continue to keep us posted on developments there. Coming up, apples 5g lineup is willing winning over wall street. Some in in washington are often are expressing optimism as well. This is bloomberg. Emily with so Many Americans depending on conductivity for school and work, the role of the federal Communications Commission has never been more critical. The fec is undertaking major initiatives close the digital divide, fund telehealth and navigate the thorny issue of the power of social media platforms. I spoke with the fec chairman new pai starting on apples iphones and whether they really will usher in a truly nationwide 5g network. I decided to see how the introduction of the new lineup goes. It will offer consumers and Small Businesses tremendous potential. Everybody talked about the much higher speed and much lower latency and responsiveness to the network but i think in particular about some of the applications zoomers will be able to use. Everything from telehealth to gaming and remote learning, you name it. Everything is on tap and will transform entire industries. Its one of the reasons the fec has been negotiating our plan, and place the Building Blocks to allow american entrepreneurs to thrive and deliver value. Do you and carriers are making some broad updates but when will there truly be nationwide 5g . A lot of carriers are narrowing out networks. A 600 megahertz flovent spectrum covering Something Like 200 million americans. Others are into spinning options in the most recent one we had was interesting. I think that 5g is going to involve much greater diversification in terms of the Companies Providing services in the types of services they provide. Its an exciting time for consumers and businesses alike. Emily there are other countries ahead of 5g, one of them from china. Are you concerned given how their infrastructure is already . There is no question china is a major rival and thats why we have made it a point to make sure that we put Building Blocks in place. The largest options in history, we have auctioned off almost 5000 megahertz, more spectrum that was held by terrestrial providers combined. Infrastructure has scaled up dramatically. Something like 7000 cells deployed that has now increased with 40,000 deployed last year alone. I actually think we are in very good stead in relation to china we have taken major steps regarding Companies Like huawei and tcg. Working across the government and other governments we have been able to put into place a shared understanding of the framework will need and threats Chinese Companies might present. Emily there has been a rearranging in the carrier hierarchy and now that that tmobile and sprint deal is done, are they bringing the competition you expected . I think they are. There competing very vigorously on price and service and besought they have announced a offerings, not something they typically have done. The conditions 95 5g on the company, coverage in a few years, 99 coverage in six years, those are major benefits and they are turbocharging the maps these companies had that were not fully deployed. Firethink they have lit a in our delivering value. Thats the reason we i think we made the right decision. We read major reports of an act that protect the platform of liability for content. Republicans are concerned about a conservative bias, rats are concerned about misinformation. The president has asked the fec to take it on. This has become an increasingly important issue to millions of americans its part of the reason the fec put out comments on behalf of these administrations asking us to take a look. The Public Comment just expired so we will be looking to figure out what the various viewpoints were and come up with a recommendation on the appropriate way forward. I cannot say when we will end up there but its something we are looking at very carefully. Emily just this morning, the New York Post but wished a controversial story about biden and facebook already said they would reduce distribution of the story, which is quite an active step towards potentially more editorializing. Do you think thats a choice that these platforms, which are so big and almost like utilities , is that a choice of platforms should be making . I cant speak on the effect of section 230 but i cant speak on november when i gave a speech talking on social media platforms and the fact that they are not transparent. How or whyderstand they are making these decisions but i do think there is a growing commission and you can hear it the congress as well that these tech giants should be more transparent. That is just something we expect in virtually every marketplace. Fec chair ajit pai. And we have some breaking now out of wells fargo. Telling bloomberg it has fired more than 100 employees for improperly accessing covid relief funds. There is abuse tied to the Economic Injury disaster loan program. Said city a fire these employees and fully cooperate with law enforcement. Combating a similar issue and they also found that hundreds of employees tapped the same government program, that dozens of them did so improperly. We continue to look and see if there was an impact of the stock there firing more than a hundred employees for fraud. Amazon prime day, traffic up 30 . The echo. Being the most popular item so far. We will take a closer look at the event. This is bloomberg. Emily we are in the final hours of amazons prime day sale, adding to jump on this holiday season. Shoppers are flocking to the Platform Team to score a deal. And with brick and mortar schools stores being reduced traffic, Analysts Expect this to be amazons biggest prime day yet. How is this prime day so far different than all the others . What is different is it is occurring in the Fourth Quarter. Historically, it was a june july event for them to beta test Fulfillment Centers to make sure they were up and ready for prime time, meaning black friday and cyber monday. This year, its about maximizing revenue in the Fourth Quarter and minimizing pressure on the Fulfillment Centers, which is why you have a prime day in october this year. Emily how do you expect this one to play out . As we head into the holiday season, which will be a season like no other . I think that by having prime day in october versus i guess not having prime day, which was a consideration for earlier in the year, this will provide amazon a really Good Opportunity to maximize fourthquarter revenue to the fact that it into pull holiday demands october and free up Fulfillment Centers to move the products later during holiday. I think this is really going to help amazon maximize its revenue in the quarter. What how do you see amazon doing performing the season compared to the other retailers out there like target and walmart, who have significant improved online operations and become more of a competitor in ecommerce. Not only have they improved operations, but amazons inability earlier to meet demand caused by covid was a shot in the arm for target and walmart as consumers were not used to going to amazon having to wait two months to get them and they increasingly turned to target, walmart as well as overstock, wayfair, etsy and ebay. When amazon looks back at covid19, they will regret they gave the opportunity to the constitution to win and keep customers. Then do you think the ecommerce landscape and hierarchy could be fundamentally changed . I think amazon will still be at the top but to the extent they were not able to meet demand during covid, that means shares and some shares were picked up by target and walmart, ebay and others. Of the day, amazons growth will still be very robust given consumers left sales on the table so it will hurt them as far as market share. Emily so as we get closer to black friday, how do you expect that to play out . It will also be an unprecedented black friday. I think amazon is wellpositioned because they chose to have prime day in the beginning of the quarter. But i also think etsy will do amazingly well during holiday because etsy sellers will be able to keep gifts in stock so doy may not be able to amazingly well at amazon but they will have an edge because keeping products in stock has been a challenge for amazon since covid started. Forte, its going to be an exciting holiday season. Thank you so much for giving us a preview. Iphonesp, apples new have got american cell phone providers vying to lead in coverage. Ceo about hishe greatest rotations for the company. This is bloomberg. Emily apples newest iphones have led a fire under the biggest telecoms in the race to own 5g. Verizon, at t and tmobile are all in on the race to offer the network to customers can americas current infrastructure support these ambitions . With us is the tmobile ceo. New iphonesd the would be a great competitive moment and now that its here, what is it about . We are celebrating at tmobile. This is the start of a race we have been talking about for years. Consumers have not been paying attention. Now it will matter which company is ahead and you cant stop tmobile. We are the only ones with dedicated spectrum and high band. So we are going to take this selectd run way ahead, so the beginning of the 5g decade starting today. Emily that said, how do these iphones change the game . You and i both now 5g network does not turn on overnight. Saw the ceo of verizon on stage saying it is here now. Is it really . Not for his. We found that surprising as you did. The Technology Many thought of as 5g earlier on and he spoke about is only reaching like 1 of americans. Thats not what 5g is about. 5g will unfold in mid band and low band and only tmobile has dedicated mid and low band. One, 25 we have, on day million customers being reached by mid band with a transformational experience. Seven, eight times faster, hundreds of megabits per second. And we are targeting 100 Million People with those types of speeds by the ends of this year. It is an unprecedented, breaking build. It makes a difference. That au have a 5g iphone seven or eight times faster, that is game changing. Its not just in a few places, it is across hundreds and hundreds of cities. 25 Million People as we sit here today. Emily since you got a little technical, the presentation made it sound like high band Millimeter Wave Networks are the future. Our tmobile airwaves really up to the challenge . First, we have more of the spectrum then at t but its only good as and augment to low and mid band and thats the part they got wrong. Theyre having to retool now. Argosy just redoing their strategy. Yesterday, they announced they would be supporting Something Like dynamic spectrum sharing and divide up the capacity. But we dont do that. We dedicate our spectrum to 5g. Explain, thes i highcapacity freeway that reaches miles from the tower but still goes hundreds of megabits per second. Then of course, we have millimeter wave like they do and we see that as an augment we have more of that then at t has. Verizon bothnd immediately announced offers for free iphone twelves. This morning, you announced your own promotion. Was there some sort of change mark did you decide you did not need a promotion . Fridaypreorder starts on but we announce the offers on time and all three carriers have free iphones. The difference is auntie is at tio mobile, your iphone is on top of the leading rates. You could have two lines at tmobile with free iphone 12 included for 100 a month. Iphoneple including your 12. So that really so cases the difference between us and them. 140 and then all cases include trading of a recent iphone. 40 less than those guys. And of course we are, we have always been the value leader in this country. Emily how many 5g iphones has tmobile sold date . The preorders begin tomorrow. And that is true across the whole world. Emily samsung has been out with 5g iphones for a while . I gotcha. They have been out with phones but they would take exception to the iphone term being applied to them. We have millions of people from samsung and other providers. What is interesting is once you have got the full lineup, i mean iphone is important culturally and once you have the full lineup, thats when the race starts. Thats when consumers start paying attention so it matters now who is ahead in a way that it didnt just a few days ago that is the strength of the brand in this country. Lets talk about how quickly the network will be built out and available. Can you tell me how many major markets are fully covered at this point in how many will be fully covered by years end . We are the only ones that cover all 50 states with 5g. Of the towns and cities nationwide 260 Million People. Verizon reaches about 4 Million People with dedicated ig. They have a dynamic spectrum to reach people with a partial 5g split up totally different. Andso we are way ahead building at a breakneck pace. We have the proceeds of the synergies from our recent merger. We not only brought together a spectrum portfolio but the synergies allow us to plow my into consumers at a faster pace that we have ever seen happen before. We are at 25 million today we are going to 100 million i the end of this year. Im speaking to the president of qualcomm and im curious given their role in giving out the infrastructure and supplying the chips and critical technology. Would you want to ask the president of qualcomm . They are such an Incredible Company with great technology. Whats really intriguing is can the technology unveil and unfold when it comes to real experiences . Chipsets and technology are what people will be tapping into. If you are a software or hardware interviewed innovator, you need to know what the software is look like. Ago, weo back a decade really thought 4g would be about loading interest faster on your picture from and obviously it unfolded very different. We are looking at something even more transformational. The more they can unveil, the more Software Innovators can create these amazing experiences that can fuel our Digital Economy over the next decade. Hear what he has to say on top of that. Always good to have you here on the program. Thanks for stopping on the program. Qualcomm president coming up next. He joins us to talk about whether the new iphones will make good on the promise of that is next. This is bloomberg. Emily we have been talking a lot about 5g this hour. Just to give you some perspective on how it might contribute. It could mean nearly 23 million additional jobs in the next 15 years according to a study by qualcomm. The chipmaker has used a Critical Role in the build out a 5g infrastructure that the network itself still has a long way to go. Joining us for more, qualcomm president Cristiano Amon. Broad pronouncements from the carriers yesterday about the improvement of their networks on the back of these new iphones. How much is the network actually improved between yesterday and today . Cristiano its a continuous improvement. You are adding the network will see activity across networks and globally its incredible. A large number of operators, 19 operators in more than 40 countries. Here are 300 other operators i saw a great interview with mike sievers and the great thing about having a complete with 5g wef devices will just continue to see acceleration and more scale at the networks are going to be more fully this fully deployed and we will have more coverage and capacity. Emily lets take verizon for example. Availableas only been in select parts of 36 cities. There is rapid dropoff in signals and when 5g is available. You, whenstion for the instructor and hardware and everything will truly be ready and when we will have nationwide 5g. Before i answer your question i love answering this question. I really do. In the past, i member 3g 4g were always about what do i do with this technology . Now the question is why am i not getting it . Why isnt it right here . Its incredible and shows how mature the mobile market is. And the weight to think about this, there is often confusion in the industry. The way is that everything will spectrum we have today will be and we will get away. , peoplend of the day will likely being deployed across all operators. I think verizon started with a white bent that requires the itwork to be more dense and requires incredible capacity and performance. Is goingthe deployed to be part of all carriers. There are 125 carriers in the million working a millimeter away. They will continue with 5g and continue to add mark spectrum as it becomes available. 5g as you are going to have every single spectrum in the networks over time will also be providing service you will get the new bands. Talk of this process, you will see coverage and capacity deployed in different municipalities over time. It is fair to assume that by the 5g is 2021, i think that fairly deployed in all metropolitan areas including of 5g. Cant expansion 2022 wereng into technology will be deployed quite globally. Its an interesting conversation. We want to see the aloof expect and even china is talking about millimeter wave for the livex and that is a very aggressive timeline. This moving faster than what 4g did. Emily qualcomm shares have been on a tear for the last couple of years and its crazy to think they once offered 17 a share, but what does the coming 5g mean for qualcomm . The comingen touting of 5g for years and now it is almost finally here in the company certainly stands to benefit. Were cristiano we were incredibly proud to say we are right and 5g is good for qualcomm. The market has started to understand we have said probably a couple of years ago. The best years of qualcomm are still ahead of us. Unlike the other transitions, what 5g is doing for qualcomm enables expansion of our business into a lot of other industries. Substantially in the automotive and transformation of the connected car. Industrialg into with Internet Things and we are going to expand into networking with private networks. We have a lot of Growth Opportunities for qualcomm than we are just at the beginning of the 5g curve. Emily you have been gathering a ton of data that the Economic Impact of 5g. This is number it will create millions of new jobs. What do you think the impact will be and how has that changed in the impact of the pandemic . Cristiano very good question. When you think of the future of Economic Growth in general, a big component of that growth is the Digital Economy and that is true for all economies. They all understand this give the emphasis. Ingredientundamental. Especially because in simple terms, there is technology that connects everything to the cloud and it really leverages the capabilities of the cloud. , theven with the pandemic size of the market, you saw some impacts and the number is still substantial. Numberber the revised of the Global Economic output trilliony 5gs 13. 1 and that is a significant number. 5gdemonstrates the impact of in the Digital Transformation of enterprises. And no question it creates a more resilient economy especially if we look at a robe of connectivity and everything we have been through. Conductivity and everything we have been through. Emily fascinating, and more to come. , thank Cristiano Amon you for taking the time to join us. Robinhood may once again make its Customer Data available two months ago, they pulled access to a data feed that was attracting followers. Is there now exporting options and customers have set they would like to see what other users are buying and selling in realtime. What happens when bars and consular concert halls shut down . People flock to airbnb and use them as nightclubs aired we will have more on airbnb socalled. Arty houses next this is bloomberg. Emily airbnb continues to struggle to crackdown on illegal parties and events at its rental despite a global ban. Residential neighborhoods across the u. S. Are seeing streams of strangers coming to their gate to party all night every weekend. Many events come with expensive tickets, bottle service, even djs. For more, what to bring in Olivia Carville covers airbnb for us. Why cant they crackdown on this . The problem is you have these party houses all over the country and all of these different suburbs and airbnb has so many listings even when they try to crackdown and create new policies for this issue, its hard to find a listing that will throw the next giant event and when you are going up against Party Promoters advertising these events on sites like tiktok, they are putting out invitations with include Gathering Spot and often this is a public setting and they pick everyone up in a bus and ferry them off to a private address there it address. So within half an hour, you have a house turning into a fullblown nightclub. Emily it is not just airbnb. Sometimes, the same rentals are on airbnb. What are some of these other platforms doing crackdown . Are they doing at all a better job . Problem just and airbnb it is normally just the most popular site people tend to use but a bunch of different shortterm rental sites are just being used. Essentially these promoters are scanning through different rentals looking for luxury condos and looking for giant mansions that would be great to host a huge event that some of these places are beautiful. I now of these houses that have pools and putting greens out there and we are selling tickets at 90 each because these airbnbs are expensive, i thousand dollars to rent per night because they are china mentions in the Hollywood Hills or some popular places in miami beach. Its not just in airbnb problem, its a vacation rental. All of them are trying to combat s but emily i imagine that neighbors are complaining and of course you have got individual Property Owners and managers trying to crackdown. Isyour next point, what airbnb say they will do about this on top of what they have been trying to do . We saw the party house issue become a national problem. Then, they have really been trying to crackdown on this. , it has kinda of been goodbye city bar and hello suburban nightclub. So the company has been trying to boost its policy to foment a stronger crackdown on this, including here under the age of 25, you cant print out the area in which you live in one night. Banning any event that has more than 60 enlisting. The problem is the parties keep happening. Hire member that shooting happened not too far from here. Olivia, we will continue to watch your reporting on this. Its argosy a critical time as we head closer to an ipo. Obviously a critical time as we head closer to an idea. An ipo. That does it for this edition of bloomberg technology. This is bloomberg. So youre a small business, or a big one. You were thriving, but then. Oh. Ah. Okay. Plan, pivot. How do you bounce back . You dont, you bounce forward, with serious and reliable internet. Powered by the largest gig Speed Network in america. But is it secure . Sure its secure. And even if the power goes down, your connection doesnt. So how do i do this . You dont do this. We do this, together. Bounce forward, with comcast business. Good morning and welcome to daybreak australia. I am paul in sydney and we are counting down to the major market opens. Shery i am shery in new york. Lets get to the top stories this hour. U. S. Stocks fall, and secretary Treasury Steven Mnuchin points to reality