Finally, the new leader and how he may be able to help the stock that has slumped postpandemic. Caroline it is time to move on from the potential cage fight elon musk, but will wait . But will we . I am looking at the nasdaq, managing to pick ourselves up from the concerns we had from china. The big chinese names that are traded here in the u. S. , they are still under pressure as much as they were in earlier days trading. We are now off by half of that, this is the anxiety around both management and exposure there over in china, and warm with the property market, how much of the market will stimulate this economy. There are some anxiety in the bond market, a couple of weeks, in terms of the 10year, 4. 2 on the 10year that we see, 5 on the two year, we see that yield move absolutely higher on the tenure as it stands 10 year as it stands. We have seen a knockdown on sunday trading but that is then volumes, we have volumes no matter what asset class you look at. Im looking at what is happening in bitcoin and we managed to tread water in between 9000 level. We very much feel range bound, pushing up on the higher side as we speak. Ed three quick news stories, tesla is down 2 , higher spec models in china, a former tesla board member will join us in a moment, sticking with the automated being, fortis modestly higher, peter stern, uc apple alum is joining to lead the sulfur of integrated Services Part of that business. Will bring you more information later on and paypal has named its ceo. The big story out of asia is foxconn, shares of 1. 4 , it has cut its Sales Outlook for the year, telling us that in the quarter and on the annual basis the smartphone business is going to decline, inmate, they told us it would be flat in terms of topline growth. This adds to every story we have been covering over the last several weeks about the pain in the smartphone market. Principal here in the united states. Foxconn, the principal assembler of apples iphone. It matches the narrative we got from apple executives a week ago during earnings. Caroline it also reflects we have heard from welcome, from tsmc, this overall narrative that the consumer is slowing our purchases of smartphones and electronics. What about business spend . How willing they are in this Global Economy . Ed we are tracking a crystal ball of commentary two consecutive quarters of phone slow down, sewn saying the remote is coming in 2024. It is a demo ill look for a core piece of electronics for consumers and businesses globally. Caroline you get in the pi wrap, it could be affected by muted bone growth, margin pressure due to perhaps even a locked down impact that we still remember in china. I want to stick on the china thing because the narrative of the day, tesla rolling out new rounds of price cuts over there according to his weibel account. It is reigniting fears that they have been pushed to the side. Over the last week known alone, they have been ringing back prices. We are glad to have someone who knows the company very well, steve wesley, you served on the board of tesla and you were on the board for three years. I want to put this anxiety too bed, an agreement between the key players in china that they would not be . Heres what i think has happened. Every automaker is going all electric, tesla has a cost advantage over everybody else, they are trying to grab market share. What americans investors do not understand is often understanding that china is the biggest auto market in the world, 54 of all teslas made in china or less expensive and elon is taking advantage of the price advantage she has. Ed you say they are going for market share but byd is a fierce competitor, ultimately, does it spell concerns more globally as well for ev competition . The top 10 auto brands in the world, seven are the 10 or chinese. Most americans who think ford is the leader, it is tesla, the volkswagen coming on quickly, the biggest seller of vehicles in the world in 2022. Those are the big three, Everything Else is trying to catch up. It will be an interesting battle. It is so fascinating to me is tesla really is the leader for a long time, the first ones to connect every vehicle, they have of the world not to bring battery production inhouse, increased robotic causation and manufacturing, the most important part, really taking a lions share of optimizing the over the air software, Software Sales drops right to the bottom line. That is where they had the use case, apples software ahead is helping them figure out their software pricing, they need that profitability. Ed we will bring peter stern later on in the show. Tell us about the specific cuts . 1900 cuts, the two highest spec models in china, 4. 5 percent cut to the long range, 3. 8 to the performance spec. If elon musk came to you and said i have changed my mind again, we will cut prices, we keep targeting volume and growth, what would you have said to him . I know better than most, he is hard to predict. Im looking at the market and i am seeing tesla trading down a bit and investors are thinking reduced profitability. I think that is shortsighted. Here you have a global battle and tesla has a chance to take more territory now and i think they are doing the right thing. 15 profitable quarters close to 20 billion profitability last year. They can afford it, why not make the grab now . Ed i was china changed how has china changed as a priority for the company . China was not even a speck in the Rearview Mirror for the last 50 years, we have been looking at the japanese increasing it, the koreans, they make outstanding cars, hyundai, and kia, these are great brands. There will be part of the picture. Tesla was not in the picture. Fast forward 20 years, what has changed is electric cars are better in every way. They are faster, better for the planet. The fly in the ointment is that they cost too much. Think about this from 1100 thousand dollars kilowatt hour down to 90 . The reason the chinese are doing so well, the Chinese Government subsidizes a lot of companies and most all of the auto batteries in the world are made in china and that gives them a Competitive Edge in battery pricing. Can the chinese use the lower cost batteries to catch up on the edge but tesla has in manufacturing and software . Ed steve has a great grasp on the data, he is talking about 54 of production coming out of china, it raises the question of if you cut back in china as well . Caroline the third drop in shipments for the month of july coming from china, make this global for us for a moment because they do not just produce in china, it has been a key area of focus but they do produce largely in the u. S. , germany, how much are we going to see overall production or indeed a curtailment in over a curtailment of production . Costs are so low, we would be foolish not to look at the political concerns on the horizon, doubling down on the expanding capacity of china and about to break ground this month with a new plan in mexico, tesla is not stupid, they are diversified, theyre looking at other markets like mexico where they can enjoy the lower cost vehicles but i must say i think elon having survived a tough time five or six or eight years ago, there were not sure the company would survive, he is focused like a laser, he has a cost advantage over the others and he will squeeze a lot of the new incumbents and what you will see quickly is this big global shakedown between tesla, we are sitting on top, the chinese were coming quickly, very low cost batteries and volkswagen which is probably the other western brand i think has done the best at modernizing battery production and improving manufacturing capabilities. Ed your reaction to zach, the cfo of the last four years, 13 years at the company, leaving tesla . It is no surprise. Executives at tesla tend to turn over fairly often. Zach survived as long as he did is a testament to him. I do not think it is a surprise, elon may be a visionary but you had to have him and give the board credit, they are playing long ball here and i think if you look at the revenues this year they will cross 100 billion with the highest profitability in the auto industry, hard to complain about what they are doing right now. Ed steve wesley, great to have you back on the show. Thank you very much. Time to move here on bloomberg tech, that is what Mark Zuckerberg saying about the cage fight between him and elon musk already said if elon musk gets serious about a real date and an official event, he knows how to reach me, otherwise, time to move on, i will focus on competing with people who take this sport seriously. Elon musk responded saying he cannot wait to bang on his door tomorrow. Real quick, nicola shares her down, the reason im tracking this one is because they buried the news friday night and said that a fire at the facility which came from the battery packs and electric trucks was not foul play, as they previously said theys expected, but actually it was a malfunction mesh at as they had expected, it was actually a malfunction. The of the apple watch said to come with a minor but flashy update in time for the 10th anniversary. More details on what to watch, a lot about watches, visit Bloomberg Technology. This is Bloomberg Technology. Ed amazon and u. S. Regulators are about to meet this week, the final set for a longshot bid to break up amazon. Amazon is trying to argue that it behavior is harmless plan to avoid an antitrust lawsuit in court. Will it work . Let us bring in our Editor Technology our technology editor. The ftc commissioners and representatives from amazon, it seems like despite the drama of the room, the ftc will go ahead anyway . It is interesting for what it represents, the whistle at the beginning of the game, the formal start of festivities. It is a bit of a ritual, in other cases these meetings also called last rites can be significant, the company may bring its ceo and they may offer compromises to get out of the litigation, in this case it is unlikely, i think everybody is going through the motions here, the ftc has been on this course ever since lina khan was nominated as commissioner by the biden administration. She made her name arguing the amazon was a monopoly that behaved competitively. I think the company is assuming ever since then this day was coming. Caroline you made some rather nice sporting analogies. Outline if you will, remind us, we are the key argument you think could land, could stick . It is interesting because unlike other companies, microsoft in the 90s, google today, amazon does not have the kind of commanding market share that we think of as a monopoly. In some cases it is just a couple Percentage Points of overall retail, it is high 40s in ecommerce in general, the ftc is likely to find this market as u. S. Retail market places the likes of ebay or walmarts marketplace. In this respect amazon does have the kind of percentage market share we think of as a monopoly, high 70 . What the ftc is likely to argue is that the situation is not bad for consumers which would be the traditional way that you analyze antitrust but it is better for smaller businesses, competition, and in particular it is bad for the small sellers that are forced to use amazon or amazon forces to use things like distribution fulfillment by amazon or advertising, it is basically increasing the amount of tape the amount it takes. There will be the ftc that will be the ftcs argument. Ed we have been through this with meta and activision and investors do not seem to worry, look at the shares today, we always ask ourselves are they paying attention . The upward trajectory of this would suggest even if they are, they are sanguine about it. Charges have not been all that favorable to this ftc either, they have lost a lot of these cases. All of the antitrust experts i spoke to think that the odds are long for the ftc in this case as well. I think investors are paying attention and they realize that this ftc, the record has not been great. A wholesale reinterpretation of antitrust law, so far, and has not been the successful in the courts. Caroline there are 60 buys from analysts on the stock, zero cells. Thank you so much as we look ahead to that this week, coming up, some strange livestreaming trends that are taking up on tiktok. Taking off on tiktok. What is the dance of wework . A penny stock, a . 24 stock, a record low last week after there are concerns about being a going concern and managing to rally once again, this is uber technology. Bloomberg technology. Ed time for talking tech, peter stern is getting a new start at ford, he was named president of the newly formed for integrated services where he will oversee software and services for fords key models. He was in charge of apple tv , mastercard is by a Minority Stake in africas biggest wireless carrier. The size of mastercards stake is not disclosed until the transaction is closed , mtm i use it at 30 million. Elon musk is Funding Research group at the university of texas austin devoted to the study of population. We know where that money went, it must has been outspoken about the dangers of population collapse for some time. Caroline let us move on, we talk about the latest tiktok trends for a second. I had an entanglement with the doughnut, thank you. Caroline a new trend that users are livestreaming themselves will acting like robots. Acting with robotlike oneliners as if they are in a videogame. That kind of stream may be a bit weird but it is also the biggest live video trying to hit tiktok in the united states. It will talk we will talk about a brilliant piece do write down exactly, alex, what nonplayer character trend is all about . Why will it help tiktok sell stuff here in the u. S. . It looks weird and silly, it is really potentially important for tiktok. This is the biggest trend on a live stream video in the u. S. For tiktok since it has been pushing it, livestream video for tiktok is more than people getting gifts sent, making money off of that, it is a key part of the Global Commerce strategy. Tiktok a superstorm in ecommerce in places like Southeast Asia and livestream commerce, livestream video, those are the things that are key to their commerce over there, in the u. S. , that has not worked, i talked to sources close to the company, as they have moved commerce over here for tiktok, i have had to split their strategy. Theyre educating and evangelizing livestream in oh, while they are building on their commerce operations. To see Something Like this or users are organically on their own creating where users are organically on their own creating things, that brings to iktok into a superpower of livestream shopping. Ed explain what is happening . I talk about npc, what is this . People are sending her things like corn and she will explain it is corn or they will spend . 10 to center a cowboy hat that you see and she will say the same kind of phrase. It is something that has gotten few words really interested because they are curious. If i spent six cents to send her a hot dog emoji, what will she do . If i spend more . It is for creators like crystal who have found success year, she told me she is making 700 an hour. I chatted to another guy and he stream for 21 hours straight, 10,000 during that stream. Caroline 21 hours, the talent the tiktok is bringing over, not just intrapreneurs or the creators . Friends like this out of the algorithm on tiktok itself has been good at birthing new stars, this livestream trend we have seen new people come into the limelight. Really good on life and not all rainbows and butterflies, don moss said they do not sell things although that they get on stream, we will see if the commerce crosses the rubicon. Caroline executives will be joining too, meanwhile, coming up, let us talk paypal, alex chris replaced as the ceo, we will talk about it. What if tax rates change . Ahhhhhh filing sales tax returns . Ahhhhhh business license guidance . Ahhhhhh crossborder sales . Ahhhhhh item classification . Ahhhhhh does it connect with acc. . Ahhhhhh ahhhhhh ahhhhhh i dont want you to move. Im gonna miss you so much. You realize well have internet waiting for us at the new place, right . Oh, we know. We just like making a scene. Transferring your services has never been easier. Get connected on the day of your move with the xfinity app. Can i sleep over at your new place . Can katie sleep over tonight . Sure, honey this generation is so dramatic move with the xfinity 10g network. Wow, you get to watch all your favorite stuff. Its to die for. And its all right here. Streaming was never this easy, you know. This is the way. You really went all out didnt you . Um, its called commitment. Could you turn down the volume . Here, you can try. Get way more into what your into when you stream on the xfinity 10g network. Caroline welcome back to Bloomberg Technology. Ed a quick check in on the markets, nasdaq 100, tech heavy index, we go to it every time come up. 6 . We are rebounding off of the first back to decline for the nasdaq 100 of 2023. Going back to december we had four straight weeks where the index of the client on a weekly basis, everything from the fed to the tail end of last week we started getting worried about china, folded in tesla price cut news and it adds to the economic discussion we are having and the impacts on the technology sector, the other name we are watching us paypal, we will get the details in a minute. A stock is up 1. 7 percent, alex chris is coming in as the ceo. He is coming into it is a stock that is coming out of the pandemic and slowing down because it has not maintained momentum that is all in the depths of the pandemic era. We are up 1. 75 . Caroline the changing of the guard at paypal, jenny is with us from bloomberg news. Alex chriss, he helped through m a, bribes Small Businesses, why is that good for paypal helps Small Businesses, why is that good for paypal . It provides Different Services to Small Businesses all over the u. S. , paypal has been focused on getting more Small Businesses to add the paypal button to their websites. You will see some synergies there, the faculty led the acquisition back in two, a clear, seasoned dealmaker at the helm and paypal is not afraid to do m a. You have a really interesting mix here. Ed there is a question on how settled this makes paypal. Actually, it is a company that has seen a lot of departures, longstanding executives have less paypal left paypal, how does alex chriss stabilize th