Crime. Bernie sanders has endorsed Hillary Clinton for president. The two former rivals appeared together in New Hampshire today. Theresa may has less than two days to build a team to rescue the u. K. From its worst little political crisis in more than a decade. She replaces David Cameron as Prime Minister tomorrow. China is calling a landmark ruling on the South China Sea null and void. The hague has ruled china has no rights to the resources within its borders. China claims territorial rights two more they can 80 of the South China Sea. Global news 24 hours a day powered by more than 2600 journalists and analysts in more than 120 countries. Im mark crumpton. Emily im emily chang and this is bloomberg west. Coming up amazon prime day a , couple of hiccups right back memories of last years online reviews. Did the ecommerce giant deliver on the muchheight global sales bonanza . Plus google underwater . Linking organ to japan. It is not the only major cloud player looking to the seabed for faster service. We will dig deeper into the subsea cable industry. And the u. K. Unplugged . Britains decision to checkout of the eu stokes fears of a major tech exodus . We will ask oracle ceo mark hurd for a prediction on the companys tech future. First to our lead. Amazon prime day. New numbers on the lack of success on amazon prime day. Sales were similar to last year. Sales in u. K. Are up 12 . Shares of the everything stored dipped earlier in the day on reports of lackluster numbers. The Second Annual oneday sale event also experienced a challenging start. Shoppers had issues with their shopping carts amazon fixed the , issue but not primedayfail circulated on social media. I should preface this by saying even though amazon prime day did not get great reviews last year, they say they still sold more then the black friday the year before. Having worked at amazon in many different capacities, what is your take on the actually successive today . Guest i worked for them a little more than five years. I suspect its a little bit more than revenue. There are three things to consider. They are trying to push newer categories into the market. We are a retail analytics firm. We looked at more than 27,000 products being sold on the prime day and we found more than one in four items are apparel, which is not the case last year. So there is a new category. Emily there was also a lot more Electronics Stock of the range of deals, everything from a 55 Inch Samsung Television to a toilet nightlight, which i didnt know existed until today. James how much impacted the , technical issues earlier in the day actually had . Guest it might have had some impact on sales but as far as executing on their mission statement, i think it was a success. I know that from last year, the conversion of prime members to actual paid members was on track. That helps to drive more vendors and more growth in selection which yields and acceleration in the number of units sold which we have seen for the last four quarters. , 22, 26, 27. And possibly higher coming up. Driving prime membership, there may be some pickups as far as converting from particular sales but i think the mission was a success. Emily amazon releases for a very Little Information from the company itself about how they truly performed. When it comes to expanding beyond physical products, getting them to use prime now getting them to try to , a Grocery Service or Restaurant Delivery service, how would you rate this success . It guest it has in a pretty good success. Even testing the alex cap where you are getting 10 off if you are a firsttime user of that and you are purchasing something for the first time. And more importantly, there is another agenda. Think about it, we are about 90100 days away from the massive Holiday Season where amazon and other retailers make a killing. This is a good way for amazon to really put the Software System to a stress test and test it prime time. Es on emily i want to talk about other retailers but i want to talk about amazon echo because there were some specific deals related. We do not know how many they have actually sold, but i was andng about Marc Andreessen take a listen to what he had to say. Mark it is clear that amazon has lapped everybody, at least this year and ago and alexa are fundamental breakthroughs. Its shocking for people in the field how well they are doing. What the consumer responses for echo from people who are not us is really spectacular. Theyve set a new benchmark for what it means to have interactive ai. I think apple, you know theres , going to be a certain amount of catch up happening. I think apple realizes that and they are going to try to catch up. Emily as an amazon echo owner, it is cool for knock knock jokes and getting the news, ordering things, but still, the capabilities are fairly limited. How much more potential do you see for the growth of the echo plant form and what kind of growth do you see . Echo platform and what kind of growth do see. Guest im an avid user and owner. We know they have sold millions of units so far and what they are trying to do is proliferate that across different third parties like automobiles and so forth. And these smart home in order to build an ecosystem around it. They are the First Successful entry into the living room we have seen. So i am very bullish in that regard. The one caveat i tell investors is i would not be dismissive of google in the ua Virtual Assistant effort because they have superior language processing capabilities not just across english, but across you know, many languages around the world and at the same time also doing this to process more and structured data versus more structured collections sort of, you cant pull the answers quickly. Butot dismissive of google certainly very upbeat on what echo has become. Emily there were additional promotions this month. Which retailers are doing well and who is not doing well when it comes to competing with amazon . Guest when we look at the data of how well amazon is doing against target or toys r us in the deals coming up on prime day, it is surprising it was much deeper discount than we expected and amazon was about 36 cheaper than walmart and what they were featuring on prime day. With target, they were about 29 deeper. So some pretty deep discounts. What this means is the shopper is winning. There are retailers who are winning the game. One of our customers, staples, for instance, they have done a tremendous job focusing on a particular category, which is back to school, and they have come out with an Aggressive Program and in some situations of categories which are relevant to back to school. Like folders or notebooks. Cheaper they are 40 70 cheaper. The point is if you focus on the right category and right customer, you can have a good and solid place. Emily a former amazon executive and an analyst, thank you both. We will see if we can get some more information later today. Turning to tesla Highway Safety regulators are asking elon musks electric car company to hand over information about their autopilot feature as they investigate whether the automated driving system is defective. It was in use when a model s car crashed into a truck in florida, killing the driver. Since that incident, two other crashes have been reported. Officials are looking at the automatic braking system as well as other systems in use when the wreck happened. Elon musk says he has no plans to disable autopilot. And other story we are watching Hyperloop One is being sued by a cofounder over claims of mismanagement. Cofounder and former cto filed a suit alleging the companys top executives engaged in financial misconduct, abuse and physical threats, marginalizing many employees and jeopardizing its future. Hyperloop one issued the following statement in response thesefiling stating employees try to stage a coup and failed. They knew that the company was aware of their actions and todays lawsuit is their primitive strike. Their claims appear nonsense and will be met with a swift and potent legal response. Coming up, senator al franken is raising the alarm over pokemon go, citing privacy concerns over the latest hit mobile game. And a stock we are watching work day on the move, or percent on speculation it could be a takeover target. This is bloomberg. Emily nintendos new mobile game, pokemon go is still the talk of town, sending nintendo shares soaring as well. Along with that success has come concern over privacy issues. Senator al franken sent a letter voicing concerns about the extent to which nine and take may be collecting and using and sharing personal information without their appropriate consent. My guest is a longtime mobile and gaming investor. And someone from Bloomberg Intelligence here with us as well. The privacy issue was initially when you signed up, the app got a lot of your google or Gmail Account information. They have released an update that they say fixes it, but given your experience, how serious do you think this issue is . Guest i think is serious when it includes children. Pokemon is making mobile gaming accessible for very Young Children at to you are seeing out in the street that are not necessarily engaging with their parents for permission. This brings into question the childrens online protection act concerns and i think that whether it was a mistake or not on behalf of of niantic, it needs to be remedied quickly. Emily what about safety and Security Issues . And maybe even legal issues. Guest i think it calls into legal questions about possession, trespassing. Do you own what is on your phone . People are clambering over fences to get access to certain pokemons. Does it raise questions about indemnification . Questions like that come up as well. Emily you are very deep into this, you own equipment and play a lot of games. How it serious do you think these issues are . Guest isnt it fascinating to be talking about these implications a week after the game is launched estuary that is how successful adoption has been. Nintendo probably makes a fraction of what niantic makes, but this whole locationbased gaming is going to get bigger and a new avenues of monetization. The intention they can get their mojo back to invent gaming back has gone up. Emily you mentioned augmented reality but you dont think this is an ar game . Guest absolutely not. It is much for a locationbased game. My definition of what augmented reality is, being an investor in the space, is applications. You are seeing pokemon flying in the middle of space for example. Theres no dynamic mapping of realtime around you. It is drawing upon googles data the fixed longitude and latitude data. The only dynamic mapping that seems to take place is what niantic is pushing. For example, if you might go to a particular location and a new pokemon appears there. That is not necessarily representative of any realtime environmental mapping, though. Emily do you think it is ar . Guest the type of game is not but if you look at the locationbased games but they did not have pokemon behind them and did not see as much. That need you to our mobile devices. Also augmented multiglasses of the future. It is going to be a mobile device way down the line and this experience will extend that. They are not native ar games per se, but niantic likes to call it real world gaming, so the genre is locationbased. Emily killing your battery i assume can be resolved, but there are larger issues. Can they keep up with them . Keep up the momentum . Guest i think it is going to last for a while. Singleow we have a player mode, but eventually it will be 10 players. You cannot have layer versus player battles. You are doing it at locations. As player density increases and you can login and play against your friends, i think that will see a whole new leg of this game take off once the player base is robust enough. What about monetization . Guest mobile gaming is expected to be a 57 billion market. Nintendo has a massive opportunity now to take a big piece and it has it out for a while and they are taking that by bringing mario on mobile and making these accessories that can support them and so forth. This genre might go beyond pokemon as well. Right . So there are a lot of avenues , that have opened up. That are more visible to investors. So thats the confidence you see , right now but as far as the financial impact, it is very dicey. Emily what are the implications for the rest of the gaming industry guest im not going to use it to discuss vr or a our gaming, but we are in a very mature phase in mobile right now. Branded i. T. And celebrities, Kim Kardashian half game and a high cost of user acquisition, its necessary to get peoples attention in a crowded mobile market. So i think that to what this means is we saw the surge in the stock price for nintendo and i think people are excited about the they haveeasure trove developed. Mario, etc. , coming to mobile and finally embracing this platform and their licensing ip is helpful. Emily what does it mean for ar and vr . Guest i think its better understood through snap chat facial filters. You know, going back to ar when it was from qr codes, for example. Ar is coming when magically been google tango phones are out there in the public and that is still a few years away. Emily thank you so much for joining us. Thank you both. We will see what happens tomorrow. Coming up, why one music streaming app has emerged as a major player in the political ad space. Stay tuned. This is bloomberg. Emily turns out there was more behind that scheduling conflict last month that forced the cancellation of a planned meeting between donald trump any intel ceo. He said he had canceled the gathering at his home to discuss key issues but backed out when it turned into a fundraiser. He has not endorsed candidate and says he will engage with both campaigns. The amount spent on digital ads is skyrocketing. Hillary clintons super pacs have begun making a push on one surprise platform in particular, pandora. Why pandora . About a quarter of the apps listeners are latino and candidates are targeting young minority voters. Bloombergs tim higgins joins us. From washington with more. First of all tim what are the , surprising trends you have seen when it comes to changing in digital ad space . And spent . Tim we are looking at a billion dollars in digital ad spend compared to less than 200 million just four years ago. Emily talk to me about pandora in particular and what has made it such a useful way to target potential voters. Tim you hit it on the head almost a quarter are latino and that is a demographic both parties are trying to target this political season. One of the reasons pandora has emerged is they put a lot of resources into latino and hispanic music in the last three years, bringing in a lot of mexican, cumin and latin cuban and latin American Music and also, they can target that community with. Emily i interviewed the founder of pandora who said last year that pandora can tell right away if you are a democrat or a republican based on what you are listening to. Have they been targeting latinos specifically . Tim they have been able to talk about whether someone prefers spanishlanguage ads or other demographic information that is useful for when they want to target what kind of ads they are sending to people. We looked at ads from the proHillary Clinton super pac targeting folks with that that talk about Donald Trumps payments about deportation, for example. Emily radio has traditionally been one of the best ways to reach these folks. Is streaming radio encroaching on that territory . Tim that may be the perfect marriage it may have been radio but if you look at demographic information, young latinos are more likely than the index to be using their mobile devices for a long time and so streaming radio becomes a very powerful tool to reach them and when you look at the potential over the latino voters, a lot of them are young people. Emily something we will continue to follow. A very important voting block for this election. Thank you so much. Coming up we caught up with the , ceo of oracle for their next move. If you like us, you can listen to bloomberg on the radio. You can listen up on the app or in the u. S. , on serious xm. This is bloomberg. Emily this is bloomberg west, i met emily chang. Back to brexit. In an exclusive interview, mark tells the is ready to whether brexit. Fantastic market for us. To again take customers in that market and we will help them any way we possibly can. Would you have to rethink europe but of regulations . We are going to be very active in helping our customers and aggressively focused. Would be on your radar before you determine operations in both markets. The things that could affect our decisions are availability, do we have access to quality people coming out of quality universities so we can build our workforce. We make decisions on where to house operations. The operationsg close to talent. Madeof our decisions are around access to talent, markets, customers. What about the issue of immigration . Gap left . L the want to get into the issue of immigration but i will about talent. It is about telik, we have 140,000 people in our company. A large Diverse Workforce both in terms of skills and talents other things. We bringo promote, and people into the company out of school and we try to grow them in the company, promote them, train them inside of oracle. So it is very important for us to be able to get to talent and use that talent across companies. Recent we saw microsoft a buying linkedin for 26 billion. Impact oracle in any way . Final think linkedin is a company that is half consumer, half enterprise kind of play. We have had this strategy for a execute the transitional cloud we expect to lead in the cloud and we have done that with a lot of organic development. We changed almost everything in our company over the last couple years embracing the cloud. So you are not going to see a change in strategy. You are cash rich and we think of relations of companies right now, they look reason, reasonable. Even cheap. What would make sense for oracle . Mark we feel very good about what we have done both him and o