before joining amazon, mr. sutton was a trial attorney with the department of justice antitrust division. he also worked at the law firms of william & conley llp from 2001 to 2007. he received his b.s. in nuclear engineering from north carolina state university and jd from the university of chicago law school. the last witness or our panel is kyle andeer, vice president of corporate law at apple. prior to joining apple, mr. andeer spent four years as deputy chief trial counsel with the federal trade commission's bureau of -- he also served as the principal competition attorney adviser to commissioner jay thomas roche as well as the doj's antitrust division. mr. andeer received his b.a. from the university of pennsylvania and jd from the university of california berkeley school of law. we welcome all our distinguished guests on the first panel. now if you please rise, i'll begin by swearing you in. please raise your right hand. do you swear or affirm under penalty of perjury that the testimony you're about to gi

ra i nfo rest, august burning swathes of amazon ra i nforest, would august burning swathes of amazon rainforest, would you accept that that has put a new level of scrutiny on the actions of the brazilian government? definitely. we are already concerned about this problem of the burns, it begins in the middle ofjuly and when all the public opinion and people have raised this question, we also get into it and try to make the solutions faster and more intensive. we will talk about solutions, specific responses from your government that it strikes me as interesting that in that concern expressed from many parts of the world about what was or was up to, senior members of the brazilian government chose to speak out, questioning the science on the idea of man—made global warming, climate change. why did so many of your senior clothing —— colleagues voiced doubts at this particular time?” think the government of was still now, we have different perspectives on that issue but the main one which has to prevail is the one that was enacted by the ministry of environment, actually i am th

one of the biggest heavyweights moments away from reporting is amazon set. melissa: look at amazon. connell: they're all cheering for. we'll see if they're cheering when the numbers come out. mixed averages for the dow. dow fighting for gains in the last few minutes. closing down 28, 29 point. down to the lows of the session. we were down 119 points earlier on today. good to be with you on a thursday. i'm connell mcshane. melissa: amazon day. also thursday. i'm melissa francis. this is "after the bell." the s&p 500 also fighting for gains at the close ending in positive territory. the nasdaq in the green for the second day in a row. yes we're double-checking, that's right. take a look at twitter plunging today after the company added plenty of new users but struggled to sell advertising. the drop shaving off 1/5 of the company's value, wow. connell: better day for tesla. that company overtaking general motors, most valuable american automaker. how about that? following a surprise third quarter profit. tesla shares up more than 17 1/2%. there you go. melissa: as we're waiting for ama

coming up, we take a look at all of the amazon earnings call -- at the amazon earnings call. that is next. this is bloomberg. ♪ devices are like doorways that could allow hackers into your home. and like all doors, they're safer when locked. that's why you need xfinity xfi. with the xfi gateway, devices connected to your homes wifi are protected. which helps keep people outside from accessing your passwords, credit cards and cameras. and people inside from accidentally visiting sites that aren't secure. and if someone trys we'll let you know. xfi advanced security. if it's connected, it's protected. call, click, or visit a store today. taylor: this is "bloomberg technology." back to our top story -- e-commerce giant amazon missed analyst estimates, posting a profit drop for the first time in two years. amazon's forecast for the all-important holiday quarter also gave investors more to worry about. ir more analyst reaction, have two guests joining me now. great to have you here. after this, you run to the call. what would be your first question? >> yes, thanks for having me.

not and what amazon -- amazon is just, they're not as bad as netflix on protections, but amazon is very excited they know they have a winner with one day then they have to do one day then they figure out how to make one day cheap. suddenly you buy it and the gross margins fly up and advertising margins are good a good job on web services you say, hey, i got a chance to get in that's what i think. >> doesn't mean walmart can't be making end roads >> walmart is definitely doing well but there's so much business walmart is doing well. goldman downgraded target today. but it was really just saying, listen, we've been right on it i think the american consumer, and if you judge by what visa said, really big numbers on consumption f you go back to what jamie dimon said, the american consumers are spending their head off, and a lot of it is going to amazon but there's enough to go all around there really is. costco, by the way, having a very good quarter. >> you don't begrudge the target call, do you it's having its best year since the '90s >> i love an analyst that says, look, this is going to

there are hundreds of different restricted indigenous zones within the amazon forest. how many have you visited? around ten. ten. so, it's much less than 10%. well, but i am not in charge of the indigenous land. this is not a ministry. the environment is quite different... yes, but the relationship between the two so clear, because they are threatened by so many of the illegal developments that the brazilian government appears to be ready to turn a blind eye to. let me just quote you one indigenous leader, davi kopenawa yanomami. he speaks for his people. he said, "my people didn't tell anybody that we want to become white, that we want mining, that we want money." he said, "money's like the wind — it comes and goes, but this forest is a sacred place and we do not want the white people to ruin it." what do you say to him? well, we will respect him. what the president said, that for those who want to continue in this way, being isolated, keep their lifestyle the way thatitis,itis going to be respected. but in the other hand, i can quote you here — five different pla

down 6.6% is amazon stock. looking ahead to tomorrow we'll get earnings from a bchblt and and bet, bark collar averizon keep an eye on those. >> come monday private space tourism virgin galactic trading on the stock exchange. spee firps company publicly traded. shareholders approved the with the special purpose vehicle social capital and deal gichg the $1.5 billion valuation is expected to close tomorrow watching for that as well. virgin galactic air launched space plane can carry six passengers and two pilots. ticket price $250,000. service expected to start next year more than 600 customers op the wait list. company has gearing up and reeflgd underarmor designed space suits. beginning to hq space sport process mexico a couple months and recruiting a new investor in this which is boeing guys this is going to be one to watch. it's a real test for this new space economy. >> well, earlier there was a read and it said the first public listed space company you changed it i noticed and said commercial. >> commercial

amazon had widely been considered the front runner. to discuss, we're joined by bloomberg's naomi nick's was been covering this and dana bash, who covers microsoft. how did microsoft do this? >> we are all trying to figure out to what extent it was the involvement of president donald trump and to what extent it was microsoft's own bid. the last couple years, microsoft has been improving its cloud offerings. they built data centers that were appropriate and overall, they have been expanding globally. they also have a long history of government contracts. microsoft worked with the federal government for a long time. they generally been successful. taylor: now me, from the pentagon, the d.c. angle, was the advantage of amazon over -- of microsoft over amazn? on ? >> microsoft has been a longtime contractor with the dod. the dod uses amazon products currently in its office suite. there was some synergy in terms of microsoft ability -- microsoft' disability to say, hey, we know how the government works. and we have the technical capabilitie

searching the amazon's choice endorsement. some shopper complaint the products aren't as good as advertised. the complaints prompted two u.s. senators to write a letter to jeff bezos demanding the company explain how amazon recommends products. we have the story. >> reporter: when stacey barringer's daughter needed dance shoes she turned to amazon. >> i use online shopping for everything. >> like millions of americans the busy mom says she boys a lot on the site relying on amazon choice. >> i was surprised when i dug a little deeper. >> reporter: surprised because she started comparison shopping and came across reports that reviews for some of amazon's top rated products could be five-star fakes. >> the price of the amazon choice item was double the cost of the dance shoes that i ened up purchasing. >> reporter: amazon puts this choice badge on products they say are highly rated and well priced. the items typically sell three times better than the competition. but the fight for shopper is so fierce some companies pay for posit

there is one more reason i hesitate to draw any conclusions about amazon from this jedi story. it may not have been a fair fight. we know president trump loathes jeff bezos, the ceo of amazon who happens to own "the washington post" and it wouldn't shock me if he or someone in their orbit put their thumb on the scales of the scale and favored microsoft. are there any real reverberations from this jedi contract i said it once without putting it on. on addition to being positive for microsoft it it might have oracle and vr and microsoft azure are now interoperable and this means it should be easy for oracle to defend the pre-existing business with the pentagon vm ware, they signed a partnership, thank you sanjay, coo of vm wear, with microsoft to make it easier for customers to run the legacy systems and data centers powered by azure. heck, you could even argue this is a win for ibm and alphabet, but it needs it after the number tonight because it means amazon can't mon on liz the government's cloud-related spending for defense to the announcement there was a sense that amazon ha

fallsne: aws for amazon short. china says they are willing to buy $20 billion worth of agricultural products in just a year. mario draghi says goodbye to the ecb. ♪ caroline: more earnings. visa, quarter numbers for $6.1 billion, in line with the average estimate. $1.34 for eps. adjusted earnings-per-share ahead of expectations. revenue just in line. they are a bit shy on their fourth quarter cross-border volumes. let's return to amazon. amazon earnings just breaking. for more, we are joined by ed ludlow. your take in terms of a hit to profitability, but revenue seems to be the worry for the next quarter. more than 8%n after hours. the investment focus was the bottom line. three point $2 billion, ahead of estimates of $3 billion, on net sales of $70 billion. there has been this ramp-up and spending largely focused on one-day delivery with regards to amazon prime. look at the fourth quarter, net to $86.5$80 billion billion, well below the estimate. that seems to be what the market is trading on today. share,re, ea

in seattle amazon seeing decline. a shake up at citi group 145 s&p 500 companies set to release numbers next week. >> forced evacuations. some 40,000 residents to evacuate their homes amid wild fire rage. the one thing at the biggest risk in stocks now it is friday, october 25 "worldwide exchange" begins right now. good morning, good afternoon, good morning thank you for joining us this friday morning this is your stock and your story of the day that is amazon shares are sinking in the pre-market after those earnings were reported. bounced back some what down around 5% still that is a nearly $$50 billion move they are losing a ford-sized company right now. moving on to indonesia authorities recommend closer scrutiny of automated systems and better flight deck systems in a statement, they say the max are undergoing, quote, unprecedented level of testing, oversight and analysis they say they are making sure the conditions from the accident will never happen again. >> boeing, the highest value stock means it is the heavi

amazon's push for faster delivery eating into profits. the stock dropping 7% after hours, that was yesterday. the company's fourth quarter outlook disappointing analysts as well. cheryl: amazon says costs for the one day shipping program which customers love is nearly doubled to $1.5 billion. that's going to be for the holiday season that's coming up. jeff bezos saying, quote, it's the right long-term decision for our customers. also, amazon web services, the company's cloud computing operation, also showed signs of slowing growth but just slower. bezos lost about $7 billion in personalal wealth and he also lost his title as the world's rich evidence man to bill gates. for now, anyway. >> for now. they're still both doing fine. >>> verizon reporting this morning before the open of trade. an lists predict -- analyst predict a 2% increase in earnings from the same quarter last year. investors will be looking for advances on the 5g front. verizon trying out the technology in several markets. the goal is 30 cities by the end of the year. the

cloud is amazon's thing. they just put h q2 in d.c. a lot of people expected them to win this interesting, i sniffs around on microsoft's side, trying to understand what it means from their perspective. they found out 3:00 p.m. eastern time friday they won the contract, a little bit before the world found out from the press release. unclear exactly when the revenues start to flow, even when the scope of work becomes clear for the first stage of this, but would expect to hear about them meeting with the government, maybe the end of this week, to start the process going. also unclear what's more valuable, the contract itself, which is as you mentioned enormously valuable or bragging rights associated with it that allows microsoft to tout the fact they got the contract for other government work both in the u.s. government in the states and abroad, in the enterprise game, being able to put forth your wins as case studies is a big part of it. thomas cureon at google cloud set up a white glove area within the sales force just for handling bi

its forecast for q4 operating income well below what amazon expected that as amazon is in spending mode to make good on its goal to offer prime members one-day delivery the stock in the red, but as you mentioned, wilf, well off lows rbc's mark mahaney was on cnbc earlier today, saying, he would have bought the dip. it's the kind of investment, mahaney is arguing the company should make as it deepens the mote around its businesses guys, back to you. thank you for that, josh let's send it over to mark santoli for today's market dashboard. >> here is what we have. we happy few a few giant retail names that have dominated that sector and a couple of pictures on that stand on tiptoes that's what the market is doing. both the breath measures and the indexes themselves, touching those all-time highs and a gentle condition this is a look at the credit market a pretty strong underpinning of the stock market this year zpooi and finally, the greater share take a look at how good investors have had it over the last decade. so we first take a look at two different etfs tracking the retail sector. xr

microsoft comes into play again it's really evil amazon. out. it's really evil amazon. out. and about the other. there's the other there's the other. but then i've got the other. there's the other there's the other big dog that we haven't talked about the room with this is google and you know i want to get this in real quick is that you know what's the big dog that we haven't talked about the room with this is google and you know i want to get this in real quick is that what's that for good amazon also owns the cloud computing techniques for the intelligence community so that's going to be really interesting but the forget amazon also owns the cloud computing techniques for the intelligence community so that's going to be really interesting but where do you go fit into all this because they've got their super computers and all of that going on right but in all this because they've got their super computers and all of that going on right so actually last year google. google employees came out so that they don't want any thought actually last year google. google employees came

mike, main markets, back to them keeping an eye on whether amazon drags. >> seeing if neck absorb the amazon hit as it's shone the ability to absorb the one off earnings misses this zbloonz out of time on "closing bell." thanks for watching. >> "fast money" begins right now. >>> live from the nasdaq market site overlooks times square. f2 this is "fast money." i'm melissa lee traders tim seymour. karen finerman and guy adami and joined by mark tepper president of strategic wealth prrnlts. the businessest day of the earnings season in the books visa intel, gilead on the radar tonight. we have the latest from each on the quarters but beginning with the stocks to watch in the after hours that would be azmodan. the tech giant falling hard offer a earnings miss. we have full team coverage stapg by to break down results gene munster firing up the red phone in minneapolis we kick-off with more on the amazon big quarter josh lipton live in san francisco. >> besides the bottom and top obviously investors concentrate on the q 4 guided are guidance light. between 86 and 86.5 billion. obviously fo

amazon, twitter and many others set to open their books today. it is the busiest day of earnings season around and new promises from tesla over the tiely anticipated model y cross over those shares are soaring trouble in dearborn. zuckerberg defending the libra digital currency and his company as a whole and an end of an era at the ecb as mario draghi prepares to end his time as head of the ecb. "worldwide exchange" begins right now. >> good morning and welcome. your chart of the day has to be tesla. breaking out with a more than massive 17% gain that sharp move higher, we've levelled off a little bit. still a 17% gain for tesla shares on the heels of the earnings announcement. we'll tell you more on that coming up. first, equity futures showing signs of stability if these futures hold, the dow would be up a whoping 35 points, s&p up by five marginal gains to start. watching now what is happening at the bond market the treasury yield checking slightly lower the yield 2.8% as well in asia trading, we did see a little bit popping up. the nikkei and

here, we haveing seen this before at amazon. this is a company that can dial of the expenses and then just as quickly dial them down. the question is how much they want to invest in their businesses, fulfillment centers, warehouses. of course they are spending money on their cloud business but investors generally like that because it's been a superior growth story, great return on investment. the filing of expenses in the short term. generally, shareholders have been very forgiving to jeff bezos and the strategy. scarlet: partly because amazon train them that way. this was a narrative that he pushed on the conference call. that since amazon is spending more, it is entering a new phase where it will spend more for a couple of quarters looking ahead? >> the cfo on the call said this is where we are spending the money, and we think we will continue to spend for the foreseeable future because we think it will drive business long-term. it comes out of the amazon playbook we have seen the last 10 years, and we could be going into a ph

amazon shares plummeting. for the first time in over two years, the company reported a decline in quarterly profit. most notable, amazon issued a -- a weak this is not bringingforecast. the sales boost investors are hoping for. was about sales short. to write down all of his numbers, i'm joined by darren baker -- to talk about all of these numbers, i am joined by darren decker. you estoril -- you are still turning a profit. >> we knew that one-day shipping would bring some cost with it for a couple of quarters. are spending a lot on content, aws, advertising division. goingis a spending cycle on that actually makes the next couple of quarters -- the anxiety would continue from a cost perspective. where it is paying off, you are seeing an impact on the retail side because of one-day shipping. it will pay off long-term in terms of market share, revenue growth. cost variability is concerned, we can continue for a few quarters. >> are you concerned about the rate of spending? -- side ofand signed that income state

speaking of which, we have amazon earnings up after the bell. amazon's marvelous mrs. maisel may be a comedian, but nobody is laughing at the endless number of subscriptions you may soon need to see your favorite streaming shows. a company that enables companies to set up their subscription services. the ceo of this publicly traded company is here exclusively to prepare you for what he calls subscription fatigue. and the real estate landscape dotted with high prices, but also very low inventory. in a fox business exclusive, the rock star of million dollars listing los angeles is here. what deals is he seeing and is now the right time to buy? less than an hour to the closing bell. we're watching the dow see if it can get into the green. let's start "the claman countdown". breaking news, this just coming in, president trump is planning to cut off federal agencies from reading the "new york times" and "the washington post". the white house press office says that the president will order federal branches to end their subscriptions to both news publications. the reason give

apparently not owned by amazon. >> not owned by amazon, although increasingly they do have some amazon branding on the newer vans. previously they were sort of those unmarked white vans. so we did a big investigation into previously we were talking about the first stretch of trucking, the first stretch of delivery. this is the final mile getting it into your house and we wanted to look at how it was getting to your house. so amazon has third-party delivery contractors which it sort of controls. it tells them what hours they are supposed to show up. it tells drivers through a gps system how to get from point a to point b and when they need to be back. >> that doesn't sound very third-party. in the courts amazon has argued that they are not responsible for these drivers and the accidents they inevitably get into. some employees say they haven't been paid on time. in the courts amazon has successfully mostly been able to say but that doesn't have anything to do with us because they use the contractors as sort of a liability insulator, if you will. >> i am sorry, michael, but one of the th

amazon oracle and i.b.m. all pitted against each other microsoft is the winner so i don't know what it is exactly of the contract and microsoft is the winner so i don't know what what is exactly the contract and what is the jet i program please i'm assuming it's what what is the jet i program please i'm assuming it's what korea advertising for the upcoming star wars movie like a p.r. campaign right which we all know that those are i think ties in for the upcoming star wars movie like a p.r. campaign right which we all know that those are i think i think are going to be living invested as well. but the judge i think are going to be living invested as well. but the joint enterprise defense infrastructure is what i stands for and what it is is it stores i don't prize defense infrastructure is what i stands for and what it is is it stores and processes vast amounts of classified data and now i want to bring up this quote because due process has vast amounts of classified data and now i want to bring up this quote

, those are still two big profit centers for amazon. so it might be suited for a bigger payoff than historically. >> are you at all worried that their cloud business did slow a little bit? >> the answer is absolutely. if you look at the competitors, especially microsoft you're starting to see increme pressure and it is important because cloud computing along with advertising and when other people sell on amazon, third-party retail sales those are -- for amazon. >> what about regulatory risk? that's something in your notes you pointed out a number of times. >> so glad you brought that up. i like to think of amazon as the great white shark in retail and i think o regulatory risk as the megalodon. the basic concern is the goth like they did with microsoft could institute rules not to be able to maximize sales and profits in the future. it's something we are monitoring closely. >> tom, thanks so much. >> thank you. >>> it was a different s sry fot intel, the semiconductor company trounced earning ands expect faces, better than expected sale

taylor: we forget that amazon also has amazon fresh, it has whole foods. are they doing a good enough job focusing on groceries given the competition from the fresh companies of walmart and target? >> that's a great question. groceries in general -- thinking that to even some of the earliest dot-coms. pod and other companies trying to do fresh grocery delivery, they had a hard time and it seems like amazon is as well. we have seen stories of people buying goods past their expiration date. with groceries, the problem is even much more severe because you have fresh produce and things like that. i think they are working on it. i think they are trying to figure out how to best use their whole foods asset. there has been talk about doing another type of grocery store for more of a mainstream income level. i think they are still working through that and trying to figure out a good way to do it, but i do think that business is a tough one and has proven to be a long time. shery: what was really interesting this week as well was we saw them spend 11% more in the t

i worked for a catering company contracted by amazon for a thanksgiving meal for every amazon employee for every shift. this was a 24 hour gig each shift had three or four groups the following amazon employees seemed totally unfazed and active this is nothing out of the norm. what are you doing. i desperately tried to put together but the further shame of crying and public didn't work. it only made things worse. nobody walked by. that is one upside of isolation. it's pretty clear whatever algorithm around the warehouse is indians man and complicated and set to key people getting within speaking distance of one of other. ann's form with people during peak is a very lonely place. i kept people pushing carts. keeping us isolated makes logistical sense because it's so narrow but also limit its opportunity for workplace chatter which i'm convinced is a goal rather than a side effect. when i'm sent over to learn packing workspaces are set up at a quarter which makes it impossible to talk. i have been much more productive where i was able to talk to people and not been a journalist either. of

if amazon had done these five years ago, we would be back in the loss mode at amazon. the fact that we're not highlights what i think is the greatest story in tech, the fastest growing businesses are advertising. that was almost 50% revenue growth that run rate is well over 10 billion or close to 10 billion you have this super high margin business the margins are coming down near term so you still have the great mix. but it allows them to do big 3 billion a year investment and still grow margins next year that's the beauty of amazon today versus where it was five years ago. it's safer for investors >> john, should we expect more bull cases being built on the advertising silo >> yeah. great point. their ad business accelerated this quarter we had expected acceleration interestingly, investors we felt were a little disappointed in the ad growth profile the last couple quarters. off of the acceleration, we're expecting 13 billion in ad revenue this year, going to 40 billion in five years. amazon's share of global digital advertising will nearly double during that time as

for amazon or amazon and. the national the national defense authorization act is what they cited which is basically saying there's a conflict of interest here it was deep authorization act is what they cited which is basically saying there's a conflict of interest here it was deep who worked for amazon he both worked for amazon both before and after his time of being with the who work for amazon he both worked for amazon both before and after his time at the department of defense this federal judge then was like oh ok so we'll put a hold on the department of defense this federal judge that was like oh ok so we'll put a hold on this fast forward to august of this year weeks before the winter was expected to be this fast forward to august of this year weeks before the winner was expected to be announced of the contract to be placed on hold again for this trial of the contract to be placed on hold again for the defense i could defend secretary marcus or terry mark esper to endeavor to investigate complaints of fa

the president did not mention amazon ceo jeff bezos by name but repeat lid criticized amazon over taxes and other issues and, of course, doesn't like "the washington post," which belongs in that portfolio. microsoft shares up more than 3% in the early trading this morning. brian? >> that is a big contract and a big move for microsoft, which is a trillion company by the way. thank you very much. >>> we are just getting started on this very busy monday morning. when we come back, wall street again on record. watch stocks look to hit all-time highs today we're one point away on friday will we get it today >>> plus, more than 50,000 acres burned more than 80,000 structures threatened california continuing to feel the brunt of the kincaid fire. live to the region next. later, the world's most wanted man is killed. you're live in dubai when we come back. ud, huh? mm-hm. your employees must love you. thank you. ah, you could say that. so how are things with you guys? great. thank you. thank you, sir. lunch next week? terrific. say hi to the team. will do. call my office, i will. -sounds good.

no surprise, amazon not happy. says it was surprised about this conclusion tech analyst patrick moorhead says this is a big deal for satya nadella, in part because it's a powerful marketing tool and nadella can reassure companies working in highly regulated industries from banks to hospitals that his tech is secure enough for the u.s. military, so surely it's good enough for them as well. but the fight might not be over. amazon is reportedly considering a challenge to this award. guys, back to you. >> josh, thanks so much for that stephanie, unsurprising to see microsoft breaking out higher on the day the s&p 500 is probably going to close at a record all-time high. and the sector construct today is tech leading the charge >> it's nice to see. tech is leading the earnings charge, too. that's what's fueling the better than expected results. but i'm impressed that amazon has actually snapped back. i would tell you earlier, that i actually added to it, because i thought the quarter was better than the underlying kind

what amazon could be doing with your amazon cloud cam foot age, next. this is bloomberg. ♪ from the couldn't be prouders to the wait did we just win-ners. everyone uses their phone differently. that's why xfinity mobile let's you design your own data. now you can share it between lines. mix with unlimited, and switch it up at anytime so you only pay for what you need. it's a different kind of wireless network designed to save you money. save up to $400 a year on your wireless bill. plus get $250 back when you buy an eligible phone. call, click, or visit a store today. taylor: this is "bloomberg technology." now to a bloomberg scoop -- just months after learning and amazon and was transcribing annotating commands recorded in customers' homes, another privacy issue has emerged. bloomberg has learned the online giant may be watching some of footage.d cam matt day, who covers amazon in seattle, is here to explain. talk to me about what the bigger story is here. is this a privacy concern or the fact that frankly amazon is admitting a little bit the cloud c

what amazon could be doing with your amazon cloud cam footage, next. this is bloomberg. ♪ taylor: this is "bloomberg technology." now to a bloomberg scoop -- just months after learning and amazon team was transcribing and annotating commands recorded in customers' homes, another privacy issue has emerged. bloomberg has learned the online giant may be watching some of your cloud cam footage. matt day, who covers amazon in seattle, is here to explain. talk to me about what the bigger story is here. is this a privacy concern or the fact that frankly amazon is admitting a little bit the cloud cam cannot do it all, it actually needs humans. matt: basically anything these companies market as artificial intelligence probably has a human playing some role. it might not be a very large role. amazon told us humans only look at clips if you submit them for troubleshooting, say something did not work, or a notification was wrong, or in case of employee trials. folks who had a sense there might be some review of their clips. there might be a small percentage of t

web services is extremely important to amazon both financially and strategically. even though it has about 1/5 or so of the revenue of amazon's e-commerce operations, it generates more operating profit than all of them, than the e-commerce business. that shows you amazon needs aws to work in order to generate total profits for the company. in this third quarter, what you saw was both the slowest quarterly growth rate for aws since amazon started breaking up -- breaking out those results five years ago, and a margin, a profit margin that was at least by amazon's standards not great. that combination was a little bit worrying. taylor: tom, we look at the profits so much because the company heavily invests, but analysts are defending the stock. is this because every time you see big investment, eventually leads to growth? tom: that is what happens with bezos. he is willing to spend heavily. we were doing the math on this. the analysts' expectations is 24% higher than where it closed today. analysts are out there telling their clients buy these shares even at these nea

this is bloomberg. ♪ ♪ amazon's cloud division is expanding. ae company plans to build regional data center in a free trade zone in argentina. amazon is preparing to invest about $800 million in the project over 10 years and will reap considerable tax benefits. themore, i want to bring in person who covers amazon forest. why argentina? amazon'sthis will be first data center in south america since its first one in now this was1, so in argentina come the second economy in south america, so it is expanding its presence in latin america for the first time in several years. taylor: spencer, when i was in new york, amazon was looking at expanding their second headquarters, and they got a lot of pushback for tax breaks. is there any risk amazon gets backlash for the amount of tax breaks in argentina? >> i have not heard much on that. a lot of these are fairly standard for the trade zone down there, so that would be any business operating in this specific trade zone, getting these benefits that the argentine government put in place to try to grow more

now for a quick break but stay tuned because when we return amazon has come under heat for controversy around recognition technology and now that commerce giant is proposing to write their own regulations for their own program literally author and. joins a program to give us his view on what's in store for this sector and as we go to break here are those market numbers on a wild day at the court. all right going to follow on that comes out of. the middle of the set of one among them . a far left for the main t.v. they tell you not the high. i mean. some of the said on months in front of the house and so on. totally unknown to me a lot of those. didn't even then that it is someone who did the board. didn't. know why a paradise with some ground turned into a round experimentation feels great cultural chemicals we know that these chemicals have consequences they are major irritants there's no question otherwise why would the chemical company workers themselves be geared up that suited up locals attempt to combat the on regulated experiments but often in day you have many of these people w

now for a quick break but stay tuned because when we return amazon has come under heat for controversy around recognition technology and now that commerce giant is proposing to write their own regulations for their own program literally author and. joins a program to give us his view on what's in store for this sector and as we go to break here are those market numbers on a wild day of the. revolution . the demonstrations going to be relatively peaceful political protests. revolution is. always spontaneous or is it you know we're here i mean you are liz put pretty with me in the neighborly as i do spelling needle the former ukrainian president recalls the events of 2014. those who took boat i've invested over $5000000000.00 to assist ukraine in these and other goals that will ensure a secure and prosperous and democratic. on the surface this is not reported because it's too harsh fine to speak of that the fact that a credit markets reach such a stated just disrepair. that's. causing a run on the dollar. but because. of this connection to last him should ask for the past 70 and seen and

we also saw amazon invest heavily in sales and marketing for amazon web services. amazon did have a big leeway in terms of getting a head start for developing its cloud computing business, but now you are seeing google and microsoft pickup and stiffen the competition. the theme is investors concerned about this quarter not just being a one time miss that increased spending is going to continue for several quarters into the future. great to have you with us. we have a red headline breaking on eni. million net at 776 euros, slightly below the estimate. more details on that as they come through. we are busy with earnings season this week. coming up on daybreak europe, partly as reports third-quarter earnings. we speak to the bank's ceo jes staley. don't miss that after 7:00 a.m. london time. tune in to bloomberg radio on your mobile device or dab digital radio. ♪. matt: this is "daybreak europe." nejra: global equities are on track to end the week unchanged. the most loved shares were pummeled. dani burger, what are you looking at? >> we are seeing a slow-motion rep

the hospital ship papa francisco will serve people in remote villages in northern brazil along the amazon the world's longest river. and it will provide medical care to villages in an area heart the size of germany. report back works full time on the hospital ship. they got one out got assigned as i heard about the project i was very enthusiastic about it it enables me to work as a franciscan and as a doctor in a region where the people are very distant here and we discuss with us look we can provide the people with what they really mean good health care but have to go on top of all. the franciscan nun gave up her post a senior physician at a hospital in germany and took on the job of chief medical officer on both the proper francisca and exciting challenge. dawn in santa antonio a small community of rivets well as in brazil. as soon as they heard the hospital ship was on its way people from the surrounding villages started gathering here. the assembly hall has been crowded since early morning free medical treatment brought virtually to the front door is. almost too good to be true but 1s

half amazon's online sales do, in fact, come from small business joining us, amazon vice president of small business, nick dennison. good to have you. >> thanks for having me. >> there's been a long-standing debate about the relationship between small business and amazon to what degree is the company interested in trying to change that sentiment >> as you pointed out, over 50% of everything sold on amazon actually comes from small and medium size businesses, you know, so i mean their success is our success, and so we're definitely focused on doubling down on that we have over 1.9 million small and medium size businesses in the u.s. that work together with amazon to conduct business they include sellers, authors, skill developers they're just an important part of the consumer experience we serve up and the 58% i called out, actually that part of the business is growing faster than first party business we definitely have interests aligned with small business on all fronts. >> nick, it is clear obviously that good business can be done online on amazon for small and medium businesses but

that was reported in the book screw amazon, trump's order to screw amazon that is an abuse of power, that is wrong. i have been harsh on president but he deserves it in this case. his endless assault on sa amazo, because jeff bezos owned it, this wrong, this is interfering in private business, the president is not just some guy with an opinion. >> caroll, one side of the argument buon button it. >> i don't like cronyism, i like free markets but be realistic this happens in every level of government, amazon has exploited it their benefit many times this time it did not work out for them, too bad. david: deal or no deal, conflicting reports about future of phase one of trade deal with china. what is going on? we'll ask a man in the know. curtis ellis, joining us next. ♪ (dramatic orchestra) performance comes in lots of flavors. there's the amped-up, over-tuned, feeding-frenzy-of sheet-metal-kind. and then there's performance that just leaves you feeling better as a result. that's the kind lincoln's about. ♪ it's been reported that there's a cyberattack on business every 39 seconds.

the reform of the catholic church might just have its origins in the amazon. now tourists are flocking to australia's iconic sandstone rock allure for one last climb before a permanent ban comes into effect starting on saturday the monolith will no longer be open to climbers the decision was made out of respect to indigenous australians who consider the site sacred according to the park's most recent data 300000 people visited the louvre and 2015 with a 130 people climbing it every day was added to the list of unesco world heritage sites in 1987. coming up next business africa where gary hart al for staying tuned for that in just a few minutes our. children. from africa. who are learning to exception your stories and discussion. of easy to our website interviewed smart pick up join us on facebook. for.

petersburg police arrested that former amazon driver. >>as they should they say daniel zambrano is now facing charges for grand theft. dealing in stolen property. let's take a live look outside right here in san francisco to talk about our 4 zone forecast there's the embarcadero it was windy and some of the other shot so looking little bit calm here. but the bear. >>it's been then with the little bit. >>classic fall weather chief meteorologist lawrence karnow is here. for the 7 day forecast. yeah we're working on a real yes, give me. we're going to these temperatures cooking i would be surprised we saw some 90's may return to bay area so yeah, this kind of in between though right now you can see >>as all right now at the airport winds kind of kicking up around the bay area see that in the tree down below in blustery at times but yeah, the camera kind of shaking in the wind there as well, but no delays at sfo oakland, or san jose we are looking good, but those winds have blown around you can see ghat 29 miles per h 20 in the palo alto 17

amazon oracle and i.b.m. all pitted against each other microsoft is the winner so i don't know what it was exactly that you know there was other companies in there as well we had microsoft amazon oracle and i.b.m. all pitted against each other microsoft is the winner so i don't know what it is exactly of the contract and what is the jet i program please contract and what is the jet i program please i'm assuming it's what korea advertising for the upcoming star wars movie look at your company right which zooming it's what korea advertising for the upcoming star wars movie like a p.r. campaign right which we all know that those are i think i think are going to be living invested as well as we all know that those are i think i think are going to be living invested as well. but the joint enterprise defense infrastructure is what i stands for and what the joint enterprise defense infrastructure is what i stands for and where i did it and this is what it's going to stores it's across the stores it has been processe