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tv   Bloomberg Technology  Bloomberg  August 7, 2019 11:00pm-12:00am EDT

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emily: i'm emily chang in san francisco. this is "bloomberg technology." coming up in the next hour,, go for lift off. shares in the ride-hailing companies surged after hours as the company beat estimates for the second quarter. news on the lyft lockup is causing volatility in trading. we will bring you the latest on of theresults from one
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earliest investors. plus, fedex drops amazon. the delivery giant will not renew their ground delivery contract with amazon as the online retailer expand in its own logistics and shipping gain. we will talk to one of the founding members of fedex ground. and, new phones, new features. samsung's first look at the new galaxy note 10 and 10 plus from its brooklyn event in new york. we've got all the details. a rebound in tech shares helped fuel recovery in u.s. equity markets. the day started wednesday with an ugly open as traders hit the eject button without any clear catalyst. but an early turnaround in names like broadcom, apple, helps erase losses among major indices. ,nd speaking of broadcom symantec surged in after hours trading on the news, up as much as 20%. --field the gains the s&p
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largest seen since last year. the nasdaq closed in the green, while the dow was fractionally lower. joining us to dissect the moves is our senior markets editor. talk to us about broadcom here. the report that broadcom is nearing a deal to symantec's enterprise business. mike: dow jones reporting this deal after the close that it may happen as early as this week. it is valued at $10 billion. there was a tremendous rally after hours in symantec. up as much as 20% at one point. it came up from that and 8% or 9% right now. there you go, 13%. still a pretty big rally. this type of deal could potentially be bullish for the tech sector rate large. -- writ large. symantec, a provider of security products, so something a lot of companies would want to get to in this day and age with all of
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the data breaches we read about. not the kind of thing where there are a lot of publicly traded stocks that will get a halo effect from this. still, a pretty bullish catalyst for the tech sector. tech rebound so fast in particular? mike: it is one of those days, they are not exactly a clear catalyst. the future markets before the cash exchanges open, it was actually higher in the morning, then spiked down very abruptly. there doesn't seem to be any fundamental or news-driven reason why. i tend to believe that when volatility is introduced into the market, like it was on monday this week, there tends to the these unexpected swings both up and down that is very hard to explain. it takes a few days for the market to sort itself out. i would point out tech was not the leader on the downside today. that is a bit of a change from
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what we have seen this entire semiconductors, were very much on the lead on the downside of this correction of stocks we have seen in the last couple weeks. today was not necessarily the trade war itself that was causing the weakness earlier today, but rather, the knock on effects. we saw this tremendous rally in treasury bonds and bonds across the world. that really reduced interest rates sharply. it was banks in the lead for the downside today. tech rebounded yesterday, so despite the fact that it is very hard to predict where the swings are going to shake out over the next few days, it is encouraging if you are a tech stock investor to see the follow-through today from the rebound yesterday, as well. emily: what about cryptocurrency, bitcoin? fairly stable over the last couple days. big spike in volatility monday,
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despite what we have been seeing elsewhere, is it sort of a safe haven? mike: there is a lot of debate about that. people are talking about the correlation between bitcoin and gold getting high again, suggesting it is being viewed as a safe haven asset. i would also point out that bitcoin tends to be the type of thing that could rise, because on monday, when china's currency was very weak, there was a lot of speculation about capital outflows leaving the country to avoid this weakening currency. clearly, bitcoin can be a beneficiary of anyone trying to get money out of china and into other assets. a reporter on bloomberg intelligence put out an interesting report saying the one thing standing in bitcoin's way is the short-term volatility is very high. bitcoin's a notoriously volatile asset. traders and investors get used to a certain amount of volatility.
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when it gets higher than that in the short-term, from his work, it tends to put a lid on prices in bitcoin. as you look at the chart this week, it is having a hard time staying about the 12,000 level. there is a bit of a safe haven appeal to it, as well as the china capital appeal. they will see if they can crack the 12,000 level and stay above it. emily: thanks so much, mike, for that update. to our other top story, lyft earnings. ailers of the ride h popping on second-quarter results that beat estimates. the company reporting revenue reaching $867.3 million, up 72% from last year. the good news was quickly overshadowed by the company's decision to allow shareholders to sell earlier than anticipated. lyft announced its lockup period will end august 19. that is when $16 billion worth of equity will become eligible
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for sale. i want to get perspective from one of lyft's earliest investors. down since have been the ipo. you knew about the lock-up expiring earlier. >> yes. emily: why are they doing this? >> this was in the s1 filing originally, but there is a restricted stock unit plan that is causing this lock-up to be moved up from september 24 to august 19. it is coming off august 19. we are not selling. we are in it for the long haul. emily: why? tim: i still believe strongly in the management team. the founders are doing a great job day-to-day. business at lyft, the numbers were phenomenal this quarter. $810rojections were million. lyft has done a great job at not
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only managing expectations, but beating expectations, which is great for wall street. emily: they are not going to replace the coo leaving the company. they are going to fill the job another way. from a management perspective, ?s that a concern tim: no. i think john zimmer has been the de facto president from the beginning. someone coming in and try to duplicate his effort didn't really make sense. it is kind of the same thing is going on at uber, as well. they just lost their coo. that is what you are seeing at both companies. emily: does the lock-up is ending concern you hitting the market, even as the share price is down? tim: i think that is just the way things are these days. with unicorns going public and
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that many shares hitting the market, with lockup expiration, we have seen over and over and companies we have invested in, the stock takes a hit when shares hit the market. people are hungry for liquidity, and when they have the opportunity, they take it. emily: let's talk about the future. the story of lyft versus uber has been price wars almost as long since they have been in existence in getting the lowest price, but that means lower revenue, less incentive for drivers, as well. is there an end to that anytime soon? tim: i think we are still in the early days. i think we have a long way to go, but i think we will see less drivers and those drivers making more money in the future. emily: why less drivers? tim: i think the business model is geared towards full-time drivers. you're going to see less of those in the future.
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emily: less drivers make more money. does the company themselves make more money? rates go up and that means more for the company as well. emily: what does that mean for the competition between lyft and uber longer-term? is it more about the brand? which company has the better brand? tim: room for a coke and a pepsi -- i have always thought that there was room for a coke and a hailing it is a huge market. there is a lot of growth to come. there is room for both lyft and uber. ever do theyen or get to profitability? the two companies combined lost $2 million in the last few quarters. tim: competition is top of mind
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for the cfo at lyft, and probably, that is the most important thing for him on a daily basis. i think autonomous vehicle, i think electric vehicles. i think there is a way to achieve that path to profitability. emily: autonomous vehicles are so far out. tim: i believe that is correct. emily: on the path to profitability, a lot further out? tim: i think there is a bridge with electric vehicles. lyft can take advantage of things like charging stations, the city bikes in new york city. other infrastructure that exists today to provide vehicles to drivers that require less maintenance, that are much lower cost that incrementally adds to the bottom line for drivers and the company. emily: lyft shares are almost up 2% after hours. tim sullivan, always great to
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have you on the show. fedex snips another time with end of enhancing the their ground delivery contract. we talk to one of the founding members of fedex ground, next. this is bloomberg. ♪
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emily: shipping giant fedex is offloading their ground delivery contract with amazon, the latest move by fedex to reduce its dependence on amazon as the online retailer grows it's only just takes network. for more on how this affects both --panies, we have and a founding member of the company that became fedex ground. who does this hurt more? fedex or amazon? >> amazon is so big, and they have built their own capability to deliver their own packages so
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rapidly in less than two years, that amazon is not going to feel any pain from this. in fact, i will tell you as of june and july, they have not been using fedex at all. it is an academic exercise that fedex is eliminating its contract, because there was no business. fedex is the one who will have to replace the volume with other e-commerce shippers. emily: how does fedex replace that volume? satish: how do they replace it? by offering that capacity to other guys like walmart, and target, and kohl's, who are fairly large shippers of fedex, making their capacity available so they can of some of the business those retailers going from ups or the post office to be converted to fedex.
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emily: would you agree? no pain for amazon, just a lot of work for fedex? >> amazon spends more than $31 billion in shipping every year. this is a couple hundred million dollars business with fedex. this is a long time coming. this is not something that was unexpected. the variability and the risk here is not revenue, the risk here is margins. to one dayis moving shipping. usps is there, they have their own capacity expansion as well. back in 2015, their capacity, they had to pay more for shipping, so margin variability, that is something to think about. but from a long-term perspective or topline perspective, this was largely expected. emily: to be somebody who founded the company that became fedex ground, what do you make of the longer-term prospects for
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fedex given they are keeping their relationship with ups? they have always had a relationship with the postal service. and fedex, globally, has had patchy issues, struggling particularly in europe. satish: that is a great question. i think you will see for the next three or four quarters or more, the company is going to be challenged to produce results that are desirable from the shareholder perspective. they have lost express volume. they are losing some ground. it is not going to be easy. it takes time to have customers, -- takes time to have customers replace another carrier with fedex. it is going to be a lot of hard work and tough times ahead for fedex until they recover from it. long-term, also, when you terminate a customer and put a press release out, it leaves a bad taste in the minds of the shipper. amazon will be very reluctant,
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even if they have fedex coming in knocking on the door, that we would like to handle your peak season volume, amazon will think twice before they give them any business again. emily: what about the other companies that satish mentioned? walmart, but target and all of these companies trying to compete with amazon to narrow their own delivery times. could this be an opportunity for them? jitendra: walmart in particular has the biggest delivery network here in the u.s. private network, if you will. they are definitely well equipped to handle their own. there's a lot of direct consumer demand. it is a third-party revenue model that amazon has been benefiting from for a long time. you have direct consumer demand, companies that do not want to sit on the platform, want to sell by themselves on other platforms or things like that, maybe that is an opportunity they can go after. it is a big market in the end, but losing access to 300 million
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plus customers that are willing to buy your products because you are on the platform, obviously it holds a big volume back. it is going to be a wait and see. as far as walmart is concerned, they are equipped. emily: the logistics wars continue. thank you. samsung has announced the new generation of its galaxy note phone lines. how did the funds ward off competition -- phones ward off competition from huawei and apple? that is next. this is bloomberg. ♪
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emily: simpson announced the galaxy note 10. it will come in two sizes, a 6.3 inch model and the note 10 plus, with a choice of 5g. the new phones will be vital in tackling smartphone profitability and increasing competition from apple, huawei, and other chinese vendors. spoke to's mark gurman
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a representative at the brooklyn sung'sand asked about sam services strategy. caroline: from a services perspective, samsung will leverage the relationship rather than creating their own services. consumers have already met their best as far as content, so leveraging those relationships and making sure that the experience you get on a samsung device is the best experience that you can get. i think it is what they are trying to achieve. think at what they announced at withthe channels apple has samsung tv's, that is an easier play with samsung than not starting with their on content. mark: do you think this upgrade with the bigger screens are enough to really pull people from other ecosystems? whether that is apple devices, google has they are very small
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-- their very small slice on their own pixel phones? who do you see buying these new devices? carolina: the core audience is the note owners, the current owners. from an android ecosystem perspective, there is a chance for samsung making it more mainstream. it is very smart to diversify on the screen size, as well. women tend to prefer smaller devices than larger devices, but they need productivity and being able to juggle everything they do as much as the men do. i think that opening up a broader opportunity for the note is very smart. mark: what about the market? the market has been going down the past few days. the trade war is pushing down the market quite a bit. looking at the market, the dow jones, the s&p 500, what is samsung's involvement there?
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how do they compare to apple and the impact they are having from these tariffs? carolina: i think there are main differences between samsung and apple and how they respond. one, samsung is not american. to some extent, they are a little bit -- they are not as impacted. as in the back and forth between beijing and washington. the other is, unfortunately from , market share perspective china is not a strong market for samsung. everything is an opportunity for being hit negatively. mark: you have been testing the apple card on the iphone. do you find in your few days of usage that this will become a core component of a phone just like a streaming service? carolina: i think as you get more into financial services and health, those are key parts on
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, that mighte actually shield consumers from looking at the iphone and thinking, maybe it is not the most useless device, because now it is my link to my doctor. i think for samsung looking at health and the pairing with the active watch they just announced a few days ago, it is probably the first step. financial services may be harder for them. mark: lastly i have to ask you nearlyhe galaxy fold a phone that if you rip the $2000 sticker off, the screen protector would destroy the thing. how is that impacting the note 10? do you think there will be fallout from those issues into this new one? carolina: i don't think so. the note has a strong loyal base. the fold attracts a different
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audience to it. samsung was smart in announcing there was a shipping date for the fall, which is september. that put the minds to rest of those that were skeptical about the phone hitting the market for real or not. emily: creative strategy analyst carolina milanesi there. coming up, u.s. lawmakers are not too happy with google. they are calling of the company over its plans building a speaker with huawei, next. why facebook is merging its systems and rebuilding instagram's chat products, next. this is bloomberg. ♪
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emily: this is "bloomberg technology." a trio of senators is continuing 's tiescrutiny of huawei to american companies. they are going after google. tom arebio and concerned over a report that google is developing a smart speaker with the chinese telecom. one that would be sold outside china. they sent a letter to google saying, "it is hard to interpret your decision to help huawei place listening devices into millions of american homes and putting profits before country." been brody.e have
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in the studio, our own mark heard in who covers google. they plan to develop the speaker in may,wei were stopped the same month they were blacklisted by the trump administration. there have been concerns about national security concerns that have been expressed by the president and the white house many months before that. what do you make of these plans? >> the letter is slightly disingenuous. the odds of huawei device going into millions of american homes are pretty low. they cannot even sell their phones and they are the second-biggest phone maker in the world. u.s. carriers have not been carrying them for years. if they even came out with a speaker that it would sell. it could be a google brand of speaker. the senators are getting to the has beenich is, huawei consistent with google for years. they built the nexus phone.
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since the trade war instance, theyxport ban on huawei, have their partnership and how that will change and affect their business. emily: this coming in a mix of lawmakers scrutiny of google at its peak, along with scrutiny from the president himself. at the same time, we have a new rule going into effect involving the huawei blacklists. tell us the latest. >> that will be going into effect. it was expected. it will basically be stopping the government from using huawei gear. it is disbanded. now it will be disbanding it from executive agencies and things like that here in the u.s. it was expected but is coming at a time when the trade war is ramping up all the news we have been seeing out of china. you have the trade war on one hand and national security concerns about chinese espionage happening through companies like huawei, and things like that.
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it is that sort of escalation, when those things come together, that i think is making it interesting. we will see people comment on it and say why they think it should be broader or narrower. given thate, congress told the white house to do this, i think it will probably consider -- it will probably continue the same way it looks now. isly: the u.s. ban on huawei having global consequences. the u.s. has been putting pressure on other countries to take similar actions against huawei. the chinese are warning there could be reversed sanctions on some countries. for example, india. if india bowed to u.s. pressure to stop doing business with huawei, the chinese saying they could be subjecting indian products to reverse sanctions by china. all ofe complexity of these relations are things that people are constantly worried about here in washington. we do know the white house has
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been pressuring a lot of our allies to keep huawei gear out of their networks. it has been largely unsuccessful, even though it does seem other countries share our concerns about chinese espionage. doubt that trade war, national security, those two things are going together. just bilateral tensions, but multilateral tensions on the world stage. the white house will have to deal with that. emily: just yesterday the president took aim at google over alleging anti-conservative bias. this as social media companies remain under scrutiny over what ns on their platforms. they have been invited to talk about online hate in the midst of these mass shootings. will google be a part of that? mark: they have not commented. google is taking more he now.
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there was a former engineer on the show yesterday, or a couple was firedo saying he for being conservative. former employees have been very claiming evidence that google and youtube are sensitive -- censoring conservative content. it is in front of the president and his media diet. it will probably be the topic of conversation. inquiryeaving the house into antitrust is calling on the make some special qualifications to youtube, especially as it pertains to children content. he is asking the sec to put all of its case content in one collectnd also to not personal data or store personal data on kids under 13. ben what have a better
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sense of political dynamics. it sounds like the fcc is in talks with youtube about the children's privacy lock. i read this -- law. i read this as saying congress has keeps with this. you implied to the world biggest video platform. what we talked about a lot. there is a strange issue where they say there is no one under 13 under supervised. then you go to youtube and there is children content that has been successful. it is helping with their advertising. keep wasu are have to updated about how that develops. bloomberg's mark and ben. thank you both. switching gears to softbank. for hisany reported critter profit. that beat the highest estimates. that was to the success of a vision fund. investments in companies like to up theiraged declines. the company is getting ready to
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launch its second vision fund this year. we have bloomberg technology's global executive editor tom giles. what are the biggest takeaways from these results? tom: this is him really transforming softbank away from this old buying telecommunications company with a majority stake in sprint. he is very confident that that will get the approval that it needs so he can offload sprint off the balance sheet, and really position himself, position softbank as an investor and up-and-coming technology. he has ainted out, hundred billion dollars vision fund. a lot of that money has been deployed. he is reaping a return on it from companies like slack. doordash is another one. his hotel business. now he is embarking on vision fund too. it will be launched it very soon. you will see new investments from that fund. $108 billion.
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he really wants to position softbank as a cutting edge company that is a savvy investor. even though sometimes those investments do not go quite as well as he had hoped. uber being a case in point. emily: many of the investments still have not come to for mission. -- fruition. can a vision fund be as successful as the first? excellent question. now there is a shadow hanging over the entire tech industry, which is the regulatory one you just discussed with your guests, mark and ben. there is questions about the global economy, questions about growth, the trade war is hanging over the entire industry. there are a lot of factors that will raise questions over whether new invest in its will work out, over the previous late of investments. will you get the return?
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not to mention that when softbank comes in, sometimes it comes in later when there is less upside for some of these investments. it has a tendency to inflate valuations be on what they actually should be, based on the soundness of the underlying business. , will it be as successful as vision fun 1? emily: what are the biggest challenges going to be? a, they have to place the bets and find companies willing to take that money. it's a lot of money. tom: and finding smart businesses. of,re through this cycle where there was a lot of relatively easy money to be had in investing and consumer facing, ride-hailing businesses like uber. so, finding smart investments in
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an environment where there is less willingness for risks. all those questions. we talked about the global economy, the trade war. and the outlook for the technology industry is less -- than it has been for a wild. forgetting remember sprint off the balance sheet and enabling people to value softbank as a savvy tech investor. done yet.s not sprint and t-mobile has gone and a lot of federal approval. there are antitrust laws from u.s. space. you still have to clear that hurdle. the chances are it will, but it is not unprecedented for a deal to get snagged this late in the game. fory: tom giles, thank you that update. coming up, crunched in a trade war. a look at a startup cop between cross hairs of the u.s. and
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china standoff. that is next. this is bloomberg. ♪
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emily:emily: by now you have heard plenty about how they trade war is hitting tech, especially in china. as washington and beijing continue to up the ante, companies are protecting their supply chain. oh pro has moved some production out of china. smaller companies face tougher companies. the ai startup has operated in hong kong for the last two years. he uses imaging recognition to track runners and connect them. as tensions mount, the process of relocating outside of china looms large. a first look of the impact, i want to get to the cofounder and ceo standing by.
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taylor, as this trade war has evolved and escalated over the last few days, how has your thinking changed on whether or not remaining in hong kong is the best idea? taylor: i think it has been in butnews as an economic item stays in the news in hong kong. our decision to restructure our company in the u.s. has been a long time going. we form -- we feel more solid. there is a lot of uncertainty that has been added because of the unrest in hong kong. emily: so you are moving your company to the united states? ylor: that is correct. we feel confident in it. emily: talk to us about what is involved in that. it is a pretty huge undertaking. so ir: i am an american, am no stranger to the legal culture. it is a lot of lawyers. we are fortunate to have a great lawyer on staff as an advisor.
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we have saved a lot of cost and headache. in addition, it's about tax minimization. hong kong is a very business friendly environment traditionally. of taxfrom an ease standpoint. many clients are here in the west. it was less of a struggle for us. will be some there struggles for hong kong startups that have not yet established a presence or entity outside of hong kong if they choose to move. nonetheless, it is always a difficult process. emily: what was your biggest concern about remaining in hong kong? did you see it impacting your business? taylor: definitely. in the ai field your clients trust you with their data. we put privacy first and have since the beginning of the company. that is very well aligned with the western approach to ai and data. byhas helped us to confirm,
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restructuring our business with our current clients and perspective clients. on the investment side, uncertainty, and hong kong certainly has a lot of it today, uncertainty drives risk. if we can remove the risks from the table from a perspective of investor, it will only serve us. about how the us technology works. facial recognition technology, ai, especially for identification purposes has become much more controversial. is correct. we built the system so that it ofrates independent biometrics for facial recognition. we use the whole body to identify an individual. we do it in a way that is gdp are compliant, but also with regulations of the u.s. it has been a unique thing we have been able to offer clients. it has been a big part of our growth recently. the technology is deep learned.
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we throw lots of data at some very interesting problems. the biggest ones being in the brand space. shoe brand is our biggest place right now in the running space. emily: we will be watching to see how the business develops. taylor host of miro. facebook takes its first big of its bigge all apps. we will look at the changes coming to instagram's chat feature. samsung's two galaxy note 10 comes to that bigger screen. and a new microsoft innovation. we will talk about everything new, next. this is bloomberg. ♪
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emily: facebook is letting users exchange messages between all of its different mobile apps. engineers are working to rebuild chat technology on facebook messenger. it will make it possible for instagram users to comedic it
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would those using messenger. it does chip away at the independence of instagram as a standalone product, that has always enjoyed a level of autonomy. joining us now is bloomberg technology's kurt wagner. the messaging part of these apps has been controversial, but it seems like facebook is not deterred. logical stepe most one. you take a service like instagram that uses a ton of facebook technology. known for their ad network or the login technology. you say, we will make you this first step towards bringing our messaging services. whatsapp will be a different challenge. people weren't happy because they like that instagram is instagram and facebook is facebook. they don't want those two blended. emily: facebook is putting its branding on instagram and whatsapp. i still don't understand why.
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i am a little confused as well. their statement was something like, we want to be clear about what products we build. i was speculating that some has to do with their new privacy deal with the. namef we add the facebook to these apps, maybe it protects them. it would have been easy for them to say and they did not say it. i do not understand. facebook's brand is not strong. they are settling to stronger brands with the facebook logo. emily: in the midst of a a lot of scrutiny about facebook's power at the highest level of the u.s. government. kurt: we are talking about an ftc antitrust investigation that is currently ongoing. facebook has always been a little brash in the sense that they don't necessarily let these outside scandals stop them. they launched portal, they are trying to launch libra, a
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cryptocurrency. they say it is not the motto anymore but their actions say otherwise. emily: kurt wagner will keep us posted on how these plans evil. i wanted -- plans of all. i want to get back to the south korean company talking about its galaxy note line. the galaxy note 10 grapples with waning chip and smart phone demands amid global trade tensions. joining us from brooklyn to discuss where the event is happening, our very own mark gurman. what are you most excited about that you have seen today? mark: i think the biggest thing is the screen size. it's the foremost most impressive change. one of the only changes, visually wise. 10 plus.a new 6.8 inch that makes me want a bigger iphone. the iphone maxes out at 6.5 inches. you can really tell that the
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samsung's bigger screen you can see video more clearly. better for gaming and productivity. hopefully apple goes in that direction. it is the most impressive thing alongside the new 5g model. emily: how will this impact sales? there is competition from apple. lots of things going on with huawei. in general, the smart phone market locally is slowing down. mark: my view is that this will do nothing to turn that around. news not going to give growth to the smart phone market in general. people are not going to buy their new smartphone because of the note 10. people will not switch away from the iphone because of the note 10. what will happen is people on six, theys, like note are going to want to upgrade to this. as you know, as we have talked about, the combination of a lack of major new features with
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skyhigh prices north of $1300 for the high and 5g, that is a lethal combination for bad news. of cannot charge those kinds prices without adding revolutionary new things and expecting people to upgrade every two or three years. that is the problem and i don't see it changing because of the note 10. that whenreported apple unveiled the iphone in september, the updates will also be incremental. there is a big design upgrade, design overhaul coming next year. is that the same for samsung, that next year there will be a bigger difference between this year and the year to come? is that appleit and samsung are on opposite schedules. last year and this year will be very small years for new iphones. theok at those is some of smallest year-over-year upgrades we have ever seen for an iphone.
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i think we will see the same thing when he announced the iphone 11. samsung views there s 10 and note 10 as bigger radical changes, like the iphone x was in 2017. i don't anticipate big news from samsung next year. we will see if they keep rolling out new folding devices. that is were a lot of their market demand will be coming from in the future. emily: let's talk about that. the big full double phone that was supposed to have a huge debut at a lot of problems, which you discovered when you tried the phone out for yourself. really readynes for prime time? mark: two words we did not hear, galaxy fold. will be verye s 10 different. it was so easy to discover fundamental flaws with the galaxy fold minutes into it playing them a few months ago when we first got our hands on them. the s 10, i had time to play with it today and the other day.
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seen as solid as last year's model. i don't anticipate any fundamental issues with them. the microsoft ceo spoke on stage. tell us about the partnership between samsung and microsoft. they did not announce to much. they are expanding a little bit. they are opening up the phone app on the microsoft windows tend to be able to support the new samsung phone. the note 10 will be sold and microsoft stores. there will be deeper integration between microsoft and samsung. , but anotheraking notch on microsoft's belt for working with more companies. emily: i will let you get back to the event. thank you for joining us. that does it for this edition of "bloomberg technology." we are livestreaming on twitter. check us out on technology and follow tictoc on twitter. this is bloomberg. ♪
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