amazon is a highly powerful. feature it's naive to say my data belongs to me that sounds good but most people aren't clear about the meaning of that. supposed to mean. andreas was a chief scientist at amazon for only sixty months and that was a decade and a half ago today he travels the world as a doctor expert and a walking doctor machine anyone can find out when where and what he's doing it any time. and greetings from the lispund world financial center. in new york one of the situations of the distributors that get out of the. country as is in great demand as a speaker he advises companies around the world has. bought his reputation as amazon's former chief scientist always follows him and gets him a long way even as far as the german chancellor. i'm convinced our government can only keep up with developments if we continue to seek external advice and that's exactly what we're doing by asking experts from the various fields to health and advise us in the digital council. to think east andreas is one of them if

offered by amazon offered by amazon in all the markets. and this is why of course i would take an interest in. the digital council is meeting for the 1st time today and on train is getting ready to meet the chancellor. yeah let's see what the day brings. angela merkel has called on just 10 experts to ensure that germany does not miss the digital connection there's another familiar face there too. and if you would have been out before the meeting with mrs merkel victim what should be said that did. i miss how are you today didn't like it i'm great. the meeting in the digital council is strictly confidential of course. but also on his agenda today posting his selfie with the chancellor and his book and even shooting a video with the late chancellor konrad adenauer. i don't i'm addressed by this is the end of the meeting of the 1st day off do you get tired out digitizer bored of germany because i'm going to work at a cabinet morning with some interesting ideas. the value of good in us and now we're due briefing and figuring out what shall we

the media amazon amazon is also manufacturing more and more products and selling them under the amazon name for and amazon will then take over the market stalls themselves will no longer be any diversity as an aside to some kind of nightmare market with jeff bezos behind every stand. it's a planned economy with someone in the middle who knows everything and do everything on a list come. it's not gone unnoticed. here for example more and more money is being spent in online trading and amazon share is growing and so is brussels the skepticism. muse them a great if they stay at and i'm the commissioner for competition in the european commission. it's not the fact that they grow because in europe you're more than welcome to be successful the question is of course what means are they using is this competition by the book the book or are they cutting corners we made a full study of e-commerce in europe bits and pieces you know had to r.'s electronics all kinds of things that we buy online and in that we found a number of things but one of the things we also found was a concern about amazon a

she hadn't watched amazon t.v. and she didn't have a lexer time but amazon. amazon even knew when i was on vacation because of where the searches were made also some people use amazon prime as their main streaming service too so when you add it all together it can create a gigantic personality profile that goes into frightening detail about someone to. inform information about how customers is an important part of our business we use data to make sure. products better and more convenient for our customers. amazon is a highly powerful. feature it's naive to say my data belongs to me that sounds good but most people aren't clear about the meaning of that. supposed to mean. andras was a chief scientist at amazon for only 16 months and that was a decade and a half ago today he travels the world as a doctor expert and a walking doctor machine anyone can find out when where and what he's doing at any time. and greetings from the lispund world financial center here in new york one of the situations of the day just to be honest. with you. fundraise is in great demand

amazon is a highly powerful. feature it's naive to say my data belongs to me that sounds good but most people aren't clear about the meaning of that. supposed to mean. andras was a chief scientist at amazon for only 16 months and that was a decade and a half ago today he travels the world as a doctor expert and a walking doctor machine anyone can find out when where and what he's doing it any time. and greetings from lispund world financial center here in new york one of the traditions of. the pianist. feet up. fundraising is in great demand as a speaker he advises companies around the world ondaatje matters. his reputation as amazon's former chief scientist always follows him and gets him along why even as far as the german chancellor. i'm convinced our government can only keep up with developments if we continue to seek external advice and that's exactly what we're doing by asking experts from the various fields to health and advise us in the digital council. to get east andreas is one of them he will leak medi

or amazon third party. you see something on amazon and and wait for it to be delivered. there are some small icons if you are really paying close attention to see where you are buying from, so it is less of a customer move. it is more of a supply chain move and more of a financial metrics thing. amazon is going to have more revenue coming in from its marketplace, less revenue coming from the retail side, and what all of that means is that the marketplace sales are more profitable for amazon, so it is basically amazon trying to get more sales through this more profitable channel that requires less overhead from amazon. emily: but how big a deal is this for a smaller cellar? it certainly seems like it is cutting off a big source of guaranteed business? spencer: it is hard to say precisely. it is not going to affect all of them the same way. some sellers have been preparing for this and getting to know how to sell things on amazon marketplace. for others, a transition if they are familiar. if they are a wholes

that could be its biggest weapon against amazon. it's bringing in more robots to do jobs such as cleaning the floor and taking inventories, giving staff more time to deal with customers. and it has bet big on the fast growing indian market, buying the leading online retailer there in a $16 billion deal. apart from amazon, walmart has other worries too. not least the escalation of president trump's trade war with china. that means higher import taxes on the thousands of items it sources there. 00:02:04,486 --> 2147483051:37:46,958 analysts warn that will inevitably 2147483051:37:46,958 --> 4294966103:13:29,430 have to be passed on to customers. having a trade deficit with china or having a trade deficit of $400 billion with china does not mean that the us consumers are not benefiting from the same sort of import from china. so that cost benefit analysis is notjust a matter of losing money to china, by oui’ matter of losing money to china, by our calculations, i think an individual us consumer would probably have to share around $70

it's apple and it's amazon. no matter how you want to define it as whether it's a consumer stock or not, it's a realization of this is where the game is >> right so scott, taking what you're saying, blending it with what josh is appropriately saying about investors need to evolve no matter what the style is, value investing and josh, i think i know this, used to be solely price to book in fact, for a lot of value investors, it still is that's absolutely the wrong way to be a value investor i'm convinced. and i think warren buffett is showing that you need to evolve to look at price to earnings to growth ratios or peg ratios. now, yes, amazon does trade at 50 times presumed next 12 months earnings but its peg ratio is below 1 so what it's saying is that multiple of 50 times is probably deserved by the growth rate now, look, of course the question's going to come, probably from you, scott, of why don't i own it my not owning it is not a negative, there's just other stocks that i have decided to own that have simil

or amazon third party. you see something on amazon and click "buy" and wait for it to be delivered. there might be a differentiation in the amount of time you wait for it to be delivered. that's about the only difference. there are some small icons if you are really paying close attention to see where you are buying from. so it is less of a customer move it is more of a supply , chain move and more of a financial metrics thing. amazon is going to have more revenue coming in from its marketplace, less revenue coming from the retail side, and what all of that means is that the marketplace sales are more profitable for amazon, so it is basically amazon trying to get more sales through this more profitable channel that requires less overhead from amazon. emily: but how big a deal is this for a smaller cellar? -- smaller sellers? it certainly seems like it is cutting off a big source of guaranteed business? spencer: it is hard to say precisely. it is not going to affect all of them the same way. some sellers hav

on amazon without amazon buying them and selling themselves. it is a model they want to press into the future. at the end of the day is less risk for them. even the small vendors are using amazon warehouses, if the stuff does not sell amazon does not have to take a loss. it is the vendor itself it does. vonnie: thank you for the great reporting and our whole team on the amazon story. let's check in with bloomberg first word news. here's ritika gupta. ika: in germany, angela merkel has been seated her succession plans have fallen apart. outheir apparent may not be -- up to the job. she has seen her popularity slide since taking a breath leader of the christian democratic union in december. on sunday, she oversaw the cbu's worst ever results in a national election. european union may reward brexit negotiator michel barnier with the top job of leading the european commission. france is pushing its candidate. it has spain and ireland in its quarter. eu leaders have gary in brussels -- havess who should gathered in brussels to discuss who should lea

i reached out to amazon. the spokesperson said that the company complies with privacy laws and we know earlier this week a "washington post" journalist, published a deep die article, accessed all his data from echo, he found a dozen snippets of conversations that he did not authorize amazon to collect. he said he picked up parts of conversations about recipes when he was discussing things with his wife, bits of "downton abbey" they had playing in the background. more upsettingly the device recorded parts of conversations he was having with a friend in his own living room about a friend's business deal. some family conversations about medications for a family. i obviously followed up with amazon about that as bell. they told me all sounds are randomized. they're not attached to a user's identity. the company said all these bits of conversation are really used for the purposes of improving the product, improving its artificial intelligence and not to sell to another party. for the record, melissa that is actual

. >> i have really admired amazon. i am a shareholder of amazon. however, i think as e-commerce goes from 10% to 40%, one company cannot solve everything. amazon is a juggernaut in software. there is a lot of different things. they are a brilliant market company but there are a lot of parts of e-commerce that have not been addressed by existing players. i think we can bring that. we can give consumers different ways to discover new products. emily: your wife and cofounder worked at amazon for many years. what sort of secrets does she bring to the table? >> no secrets. [laughter] amazon is a large company. she learned a lot from there. i think it is great to work with her. emily: you helped take snap public and took many companies public including alibaba. i have to ask you what is happening in the markets right now. we were talking about what went wrong with uber and i'm sure you are watching from afar. what is your take on what happened? >> at uber? >> yes. >> i don't want to specifically talk about uber. one thing that stood out to me -- versus t

they missed amazon if they'd just bought it now they missed amazon to the tune of 832%. >> it's from the moment they bought it to whenever. it could still be a great return i'm not trying to defend them at all. >> tom and ted, the venture. >> the lieutenants who managed the small portfolios >> you have to pick up a paper. >> is that what we do here we're in the media and -- >> i'm supposed to know. they bought it not him >> what does tim do? >> so we -- you don't follow warren buffett warren buffett has stayed away from technology. the tech that he bought was apple which is good and ebb which was terrible. >> not tim, talking about tom and ted. >> tom, tim. >> warren buffett is on mount rushmore, right? all those things mickey mantel. >> and even -- >> the other conversation, but i'll mention this, when he -- when they announced they'd bought j.p. morgan that was so not a warren buffett-berkshire hathaway buy why because it was trading 32 times book and i'm sure mr. buffett is overseeing this, but there are clearly other people now making decisions, so i don't think this is a berkshi

>> we've got big breaking news on amazon. warren buffett telling biky quick that brookshire hataway has been buying amazon stock you will hear from warren buffett coming up later on in the show a sizzling debut we'll find out what's driving wall street's insatiable appetite for that meatless stock. we count you down to the big jobs number. we'll break down the key numbers inside of it that you need to watch. facebook, watching a big crackdown on what is calling extremist content. we have got a wild stat about the horses that you have just got to hear. it's your rbi. we'll have it on this friday, may 3rd, as worldwide exchange begins right now >>> good morning, good afternoon, good evening, skps good morning from wherever in the world you may be watching. i'm brian sullivan looks like a happy friday early on ahead of the big monthly payroll number, which could change everything we'll get more on the expectation for that first, we have got big brnds on amazon.com warren buffett telling becky quick that brookshire hataway has be

in response to the amazon question, is amazon becoming a bigger threat because consumers are starting their searches directly on amazon? she said we see people using search robustly across a wide variety of use cases, including shopping. she also talked about how much ad budgets are off-line, and how much of commerce is still off-line. what do you think of those arguments? >> if you actually look at this quarter, you mentioned currency, comparisons, they say there are product changes that affected last quarter, and that tailwind is tapering. i mean, if we look at the revenue growth over the last three years, they had changes for the product on mobile search and youtube and the growth growth accelerated. now we are seeing a deceleration , especially in the paid out growth. in? ompetition kicked we do not think so yet, but it is a warning sign for this year. we think it is more of a function of the tailwind of all the changes done in mobile search and youtube fading, so the expectations need to reflect that. emily: colin colburn of forrester research and -- and bloomberg intelligence. w

eric shows us where the amazon rain forest has been turned into soybean fields. that. feel. respect if. we don't have it we've thought you decide to try not much. and. once in 2003 eric was called on to give in the agency treatment to as he tries woman suffering from a brain injury. he borrowed a plane from a friend and immediately flew to the rescue there was a small field hospital on a landing strip near to the zoe tribe's land however the flight was illegal and made it eric's and risk evacuated the woman to the hospital operated and flew her back 2 days later in so doing he became a zoe's possible doctor. today there's only. they are a model for the brazilian government's approach to tribal people the situation was very different in the late eighty's however when their very existence was threatened. after a visit from missionaries caused half the tribe to die from viral infections the state took them under its protection. the main ritual in this life involves piercing the lower lip. a ceremony carried out once children have developed their adult teeth. the piercing is mad

that's happening amazon. how are you so still. going to busy doing. amazon and nothing. nothing's going to do the population nothing much is going to people on the phone will you can see you can see that this is the famous amazon rain forest a long list of the planets one we were sailing to the morrow indians land we post formal bunches laden with. eric is going to check up on the morrow try they aren't as exotic as the zoe so they're easier to reach. ready ready one more small river to navigate and will be there. the indigenous people complain of conflicts with lumberjacks over their rain forest the limits of permissible de forestation a somewhat vague a lumberjacks interpret them as they see fit cutting down only 20 trees is enough to change the ecosystem within a radius of a few kilometers. the chief is now showing us his fishing gear. and. venomous snake bites 6 and one of the main local health concern is speed of response is vital but the locals boats have such low powered engine. it takes them about 12 hours to reach sounds around. the local healer's supply are boi

first of all, i really admire amazon. i am a shareholder of amazon personally, and through my fund. however, i think as e-commerce goes from 10% to 40%, one company cannot solve everything. and amazon is also a juggernaut. they do software, they do a lot of different things. they are a brilliant market company, but there are a lot of parts of e-commerce that have not been addressed by existing players. i think we can bring that. that sense of discovery, you know? we can give consumers different ways to discover new products. emily: your wife and cofounder also worked at amazon for many years. so what sort of secrets does she bring to the table? >> no secrets. [laughter] i think, you know, amazon is a very large company. she worked at one of their subsidiaries and learned a lot from there. i think it is great to work with her. emily: so obviously you helped take snap public and took many companies public, including alibaba, which is another e-commerce company. i have to ask you what is happening in the markets right now. we were just talking about what went wrong with uber, and i'm s

amazon can scale up. for every new customer, how much do they think they dashed you think they pay to get the customer? what is the company acquisition cost for a company like uber. i can guarantee you it is higher. a company like amazon, a company like match.com, they can scale up to new customers at a faster pace with minimum cost. uber does not have that luxury. that's where the concern is. how do you continue to scale up and gain market share and keep your capital expenditures under control. emily: and keep your riders and drivers. that is part of the problem. romaine: we know the drop -- we know the drivers aren't happy. we have heard from the ceo that says they will have to think about that relationship if they want to keep costs under control. how will they do that without making these drivers even more unhappy? emily: thank you so much for breaking that down. i want to turn to my conversation with the uber ceo. i spoke with him at the new york stock exchange moments after uber's stock opened at $4

facebook, amazon, netflix and alphabet down 10% as trade tensions escalate. should we be about this fang mess. >> we've had these bouts where fang left and that's been a place for concern and if you think about times where people are questioning global growth it hasn't been in this environment and i look at netflix and facebook and those were rebounds off of very difficult decembers and falls deep into the end of the year and the fact that they pulled back aggressively after such an aggressive move higher not a huge surprise and google is disappointing and amazon is disappointing and all we've done this week is talk about retail and amazon should be the one that doesn't have these secular issues and these exist earn issues and they're the ones that everyone is competing with and it's disappointing and fang is certainly not the place you can run to here and the jury is out where you should be running. >> facebook, 17%, amazon 11, netflix, 16, alphabet 12 if you want to do the elongated fang so to speak and it has gotten upset, as well >> scott first of all, we

why is amazon considering such a thing? spencer: if you think about amazon's revenue mix, it's e-commerce business has two parts. a retail side where advised products, wholesale, and resells them at a markup, like a traditional retailer. it also has this marketplace model consumer -- similar to ebay or consignment shops. like a matchmaker between the seller on the one hand and buyer on the other. amazon takes a commission on those sales without buying the inventory directly and taking on that risk. what is happening here is amazon is trying to shift more of it smaller vendors, people it buys through a wholesale model currently, shift more of them to this market place model, where suppliers will be selling directly to amazon shoppers, one at a time. shery: here is what amazon had to say for itself. they have said " we review our selling relationships on a normal basis. any speculation of a large guilt reduction of vendors is incorrect." if we see this happening, spencer, could we see some side effects of more competition bet

amazon is beautifully positioned. jeff bezos is an incredible operator and i don't think it's crazy to say the stock could be worth that much. >> matt, what are your hearing in your reporting? this is the first call i've heard where we get to $3000 by separating off amazon web services. from your reporting, do hear these rumors flickering out there? >> not so much on separation. it is kind of a parlor game with amazon. will they are one they consider spinning off that unit. i think it is an analytical tool, what would they be worth in that case? it is not outlandish at all. a couple years ago, stock was trading at $500 per share. everybody is pretty pleased with the job jeff bezos is doing. they are well beloved for the return. i'm not sure this is outlandish. if anything, it is conservative by some estimates. -- david, in your last comic, you talked about regulatory scrutiny. companies like google and facebook have been faced harder with criticism from the government. amazon has been able to escape that. because if y

whether it is amazon or walmart. amazon is just getting going with her ad business. they did not have the greatest quarter, growing 30% year on year when we are used to 90% plus, but they are just getting going to most of the money is coming from search advertising, and they have a lot of runway to go. emily: they have been reigning in spending, we saw go down last year. and what happens with margins, you can see them getting slimmer over the last three quarters. i did speak to alphabet ceo before the call got started, speaking about the revenue miss. she blamed it on fx, saying it reflects fx headwind. she said the year-over-year growth weight affects our strong. in response to the amazon question, is amazon becoming a bigger threat because consumers are starting their searches directly on amazon? she said we see people using search including shopping and talked about how much ad budgets are off-line, and how much commerce is still off-line. what do you think of those arguments? >> if you look at this quarter, you mention currency, comparisons, they say there are pr

amazon came along with its amazon restaurants offering, which proved an attractive, and it retreated. so it is having another go. we don't know how much of this chunk of money which has gone into deliveroo this morning, we don't know how much of it is from amazon, we believe pretty well all of it, they are being pretty secretive about it, but they are just saying, we wa nt about it, but they are just saying, we want to be here, we have got the money, why shouldn't we?” we want to be here, we have got the money, why shouldn't we? i suppose fairenough, money, why shouldn't we? i suppose fair enough, they have raised something like $1 billion since they launched back in 2013, when they we re launched back in 2013, when they were looking for funding. what do they want to do with all this cash? well, these businesses, think of it in the same way as uber‘s business, they are a massive bet that one day you will dominate a very new, very fast growing market, and that is an expensive business, people lose an awful lot of money. we have seen how much money uber has lost on cars and is now p

that's happening amazon. how are you still still. going out of her busy doing. amazon. nothing. nothing is going to do. the population nothing was going to people from momma's on floor you can see you can feel. this is the famous amazon rain forest along the of the planet while we were sailing to the morrow indians land we passed 4 more barges laden with. eric is going to check up on the morrow try they aren't as exotic as the so they're easier to reach. ready ready ready ready one more small river to navigate and will be there. the indigenous people complain of conflicts with lumberjacks over their rain forest the limits of permissible de forest station a somewhat vague a lumberjacks interpret them as they see fit cutting down only 20 trees is enough to change the ecosystem within a radius of a few kilometers. ready ready ready the chief is now showing us his fishing gear. all. the venomous snake bites and one of the main local health concerns speed of response is vital but the locals boasts of such low powered engines. it takes them about 12 hours to reach sounds around. the l

on amazon directly. i was told that they continue to invest in a wide variety of technology including shopping. we have ongoing opportunities. nearly half of the ad dollars in the u.s. are still spent off-line. and we are focused on digital playing a big role in that. what do you make of porat and the explanation from alphabet? >> the revenue slow down -- they did not do a good job of explaining it. they were very cagey. it was a timing issue. i am inclined to believe it is not the amazon affect. it is not that so much money is shifting, ad money is shifting. the funny thing about google is that it is such a huge company that even if they make a tiny tweak in ads that show up on 10% of mobile devices around the world, that can have a huge affect at google's scale. alphabet is not inclined as a company to be transparent about what they did -- again, big or small, to make the revenue growth slow down and i think that is what freaked out investors, the lack of explanation. emily: when i asked porat about th

. >> i really admire amazon. i am a shareholder of amazon. however, i think as e-commerce goes from 10% to 40%, one company cannot solve everything. amazon is a juggernaut. they do software. there is a lot of different things. they are a brilliant market company but there are a lot of parts of e-commerce that have not been addressed by existing players. i think we can bring that. we can give consumers different ways to discover new products. emily: your wife and cofounder also worked at amazon for many years. what sort of secrets does she bring to the table? >> no secrets. [laughter] i think, you know, amazon is a large company. she learned a lot from there. i think it is great to work with her. emily: so obviously you helped take snap public and took many companies public, including alibaba, another e-commerce company. i have to ask you what is happening in the markets right now. i'm sure you are watching uber from afar. what is your take on what happened? >> at uber? >> yes. >> i don't want to specifically talk about uber. one thing that st

whether it is amazon or walmart. amazon is just getting going with her ad business. they did not have the greatest quarter, growing 30% year on year when we are used to 90% plus, but they are just getting going to most of the money is coming from search advertising, and they have a lot of runway to go. emily: they have been raining ins ending, we saw go down last year. and what happens with margins, you can see them getting slimmer over the last three quarters. i did speak to alphabet ceo before the call got started, speaking about the revenue miss. she blamed it on fx, saying it reflects fx headwind. she said the year-over-year ourth weight affects strong. in response to the amazon question, is amazon becoming a bigger threat because consumers are starting their searches directly on amazon? she said we see people using search including shopping and talked about how much ad budgets are off-line, and how much commerce is still off-line. what do you think of those arguments? quarter, look at this you mention currency, comparisons, they say there are product changes tha

in response to the amazon question, is amazon becoming a bigger threat because consumers are starting their searches directly on amazon? she said we see people using search robustly across a wide variety of use cases, including shopping. she also talked about how much of ad budgets are off-line, and how much of commerce is still off-line. jitendra, what do you think of those arguments? jitendra: if you actually look at this quarter, you mentioned currency, comparisons, they say there are product changes that affected last quarter, and that tailwind is tapering. i mean, if we look at the revenue growth over the last three years, they had changes for the product on mobile search and youtube, and the growth accelerated. now we are seeing a deceleration, especially in the per-click growth. has competition kicked in? we do not think so yet, but it is a warning sign for this year. i think it is more of a function of the tailwind of all the product changes done in mobile search and youtube sort of fading, so the expectations need to reflect that. emily: collin colburn of forrester research a

amazon says, it is not losing them money. i find a five dollar thing being delivered is hard to believe they're not losing money on that. but i will not challenge amazon. i've been wrong a decade challenging them. david: mark? >> this is capitalism at its finest i'm waiting for first one to pay me to receive their products so. david: it is extraordinary. john, you have talked about this a lot. rising tide can lift all boats. you don't have to have one or the other as the president pressing the flesh in the crowd here in new orleans. go ahead, john. >> you look what amazon has done with all mom-and-pop businesses. people were upset about walmart moving into small country towns. amazon is slightly different. they have third party sellers on the site. they have created a lot of start-up millionaires an few billionaires what they do. >> absolutely. walmart is starting to do that as well. these are becoming home platforms, instead of selling proprietary services they are helping everyone -- >> yes, aoc was wrong not supporting ama

amazon can scale up. for every new customer, how much do they think they dashed you think they pay to get the customer? what is the company acquisition cost for a company like uber. i can guarantee you it is higher. amazon, a company like match.com, they can scale up to new customers at a faster pace with minimum cost. uber does not have that luxury.that's where the concern is . how do you continue to scale up and gain market share and keep your capital expenditures under control. emily: and keep your riders and drivers. that is part of the problem. romaine: we know the drop -- we know the drivers aren't happy. we have heard from the ceo that says they will have to think about that relationship if they want to keep costs under control. how will they do that without making these drivers even more unhappy? emily: thank you so much for breaking that down. i want to turn to my conversation with the uber ceo. i spoke with him at the new york stock exchange moments after uber's stock opened at $42 a share. stil

amazon is beautifully positioned. jeff bezos is an incredible operator and i don't think it's crazy to say the stock could be worth that much. >> matt, what are your hearing in your reporting? this is the first call i've heard where we get to $3000 by separating off amazon web services. from your reporting, do hear these rumors flickering out there? >> not so much on separation. it is kind of a parlor game with amazon. will they are one they consider spinning off that unit. i think it is an analytical tool, what would they be worth in that case? it is not outlandish at all. a couple years ago, stock was trading at $500 per share. everybody is pretty pleased with the job jeff bezos is doing. they are well beloved for the return. i'm not sure this is outlandish. if anything, it is conservative by some estimates. >> david, in your last comic, you talked about regulatory scrutiny. companies like google and facebook have been faced harder with criticism from the government. amazon has been able to escape that. >> is incred

amazon suppliers in fear. thousands of suppliers and vendors watching to see if they purchase small suppliers in favor of major brands. the possible move would increase --enue and position avenue amazon with walmart and target. it lets look at the story with our reporter. spencer, thanks for joining us. amazon has two main business models. it serves as a marketplace online for third-party sellers. basically they are selling -- suppliers, it is not going to buy stuff from you anymore. sell it yourself. spencer: exactly. this planning goes back to -- last fall. amazon was looking at the sales revenue for all of its smaller vendors to determine which ones were worth maintaining a relationship with and which ones it should push to its marketplace platform. the main objective amazon is salesis as it is online slow, it wants to not have to add that many people of its own employees to manage its web store. to theing more vendors marketplace side, amazon ligh tens its own load. it is no longer paying amazon employees

the last is now a major reason behind the deforestation of the amazon. for these reasons santa room has become a symbol of economic conquest and environmental destruction locals even compose ballads about it. no doubt 2 it was the go so. no yet it was because all those shouting and a movie got. it back got it up. not sung by. a jihadist someone good. news that. says. there must be our. nominee. you're going to get one of them from you didn't share your bidding will think you got. it really wars at once they've. given up going to you and then you keep going to get up bash got to be my fault i don't have a sniper lawmaker bored me with. a pick up. disease boats of the river people's main mode of transport santa ram is a hub for the inhabitants of the many remote villages scattered along the banks of the amazon and its hundreds of tributaries. people travel here for medical assistance groceries household goods and official documents such as some death certificates that said there is no passenger terminal in santa rem only a congo one. being here you can't a

for amazon, why would it make sense? >> amazon's business is done through the internet. all of that is going mobile. to have spectrum is a good decision for them. like i said, whether the company actually wants to give us amazon is another thing. if amazon wants to get into this business and build up 5g, that would require an investment from them. we know that amazon has had discussions with dish, which owns a lot of spectrum, about pardoning on building a network. what would charger be like, what would a google be like, and how would they sweeten the offer to make it better than amazon? >> i think the doj can stipulate who they might want to buy these assets. i think at the end of the day, it might not be down to sprint or t-mobile. i think what they will really look at is who is going to be the best competitor. from where we stand, charter and comcast are already in that business. growing theirdy mobile spots rapidly. their subs pull away, this is the area of growth for them. they might make a better competitor. vonnie: give us the argument while -- why boost is a good

either for sprint-t-mobile or for amazon. for sprint-t-mobile, or let us say t-mobile, the idea of taking a four player markert -- market down to three and then going back up to four is not a better situation. just strategically, this is not a terribly sensible idea. and for amazon, the problem is you cannot differentiate a telecom network that is a private prayer he -- proprietary network and still have cost advantage. cost advantage and network operations requires system loading, opening the network to everyone. you cannot have it both ways. it strategically does not make sense for anyone. been: we know the doj has leaning against approving the .-mobile-sprint deal what is being reported about amazon's interest? report which had several unidentified people familiar with the situation. is whathave confirmed craig mentioned is that the dha says you can do the deal but you have to make some concessions. basically, they have to do ivest. that would be selling the existing network, spectrum. amazonters story says would be intere

have really admired amazon. i am a shareholder of amazon. however, i think as e-commerce goes from 10% to 40%, one company cannot solve everything. amazon is a juggernaut in software. there is a lot of different things. they are a brilliant market company but there are a lot of parts of e-commerce that have not been addressed by existing players. i think we can bring that. we can give consumers different ways to discover new products. emily: your wife and cofounder worked at amazon for many years. what sort of secrets does she bring to the table? >> no secrets. [laughter] amazon is a large company. she learned a lot from there. i think it is great to work with her. emily: you helped take snap public and took many comfy's prop -- companies public including alibaba. i have to ask you what is happening in the markets right now. i'm sure you are watching from afar. what is your take on what happened? >> at uber? >> yes. >> i don't want to specifically talk about uber. one thing that stood out to me -- versus the companies that will have to raise

in response to the amazon question, is amazon becoming a bigger and bigger threat because consumers are starting their searches directly on amazon? she said we continue to see people using search robustly across a wide variety of use cases, including shopping. she also talked about how much of ad budgets are still off-line, and how much of commerce is still off-line. jitendra, what do you think of those arguments? jitendra: well, if you actually look at this quarter, you mentioned currency, you mentioned comparisons, they say there are product changes that affected last quarter, and that tailwind is tapering. i mean the way if we look at the , revenue growth over the last three years, you saw they had changes for the product on mobile search and youtube, and the growth accelerated. now we are seeing a deceleration, especially in the paid click growth. has competition kicked in? we don't think it has really checked in yet but it is a warning sign for this year. having said that i think it is more of a function of the tailwind of all the product changes done in mobile search and youtube s

that's happening amazon. how are you still still. going out of her busy doing. amazon. nothing. nothing is going to do the population much remote is going to people. armors on floor you can see you can feel. this is the famous amazon rain forest along the of the planet while we were sailing to the morrow indians land we passed 4 more barges laden with lumbar. eric is going to check up on the morrow try they aren't as exotic as the zoe so they're easier to reach. ready ready ringback ready one more small river to navigate and will be there. the indigenous people complain of conflicts would lumberjacks over their rain forest the limits of permissible the forestation a somewhat vague a lumberjacks interpret them as they see fit cutting down only 20 trees is enough to change the ecosystem within a radius of a few kilometers. ready the chief is now showing us his fishing gear. and. all. the venomous snake bites and one of the main local health concern is speed of response is vital but the locals boats of such low powered engines. it takes them about 12 hours to reach sounds around. t

on amazon directly. that we continue to ofest in a wide bridie technology including shopping. we have ongoing opportunities. nearly half of the ad dollars in the u.s. are still spent off-line. and we are focused on planning a big -- on digital playing a big role in that. pora andtu make of and the explanation from alphabet? -- theyevenue slow down did not do a good job of explaining it. they were very cagey. it was a timing issue. i am inclined to believe it is not the amazon affect. it is not that so much money is shifting, add money, is shifting. money is shifting. the funny thing about google is that it is such a huge company that even if they make a tiny tweak in ads that show up on 10% of mobile devices around the world, that can have a huge affect at googles scale. is abet is not inclined company to be transparent about again, big or-- small, to make the revenue growth slowed down and i think that is what free out investors, the lack of explanation. about when i asked porat the myth, she talked abo

there are people who do stores better than amazon. there are other companies that compute in the cloud that is an -- better than amazon. there are people that do content delivery, how this tv show will be delivered. they do that better than amazon. the feature will be multi-cloud. developers will use the best for each of these applications. at that lower price point, how long can you do that to keep scaling up your business? david: the cost of storage is dropping every year. we are growing 25% month over month. we have a really amazing sales proposition. we don't want to be everything in the cloud, we just want to be the best in storage. we can keep that edge for a long time to come. by focusing 100% of our intentions on storage. this is an enormous part. carol: i know it is a little loud. thank you so much. still ahead, how apple and facebook can compete on their own cloud storage. that is next. this is bloomberg. ♪ carol: welcome back to bloomberg technology, live from boston. after a strong start for the sales for the next couple

amazon is one of them. >> amazon is funded by their own cash flow. they don't have to raise capital. i can't remember the last time amazon went and raised capital. it's more about point of strength versus point of weakness. we lived through 10 years of bull market. i think a lot of companies are involved in many different issues. at some point, you have to drive more profitability. emily: you spent a lot of time sourcing tech deals in china. how much do you think is the fundamentals of these companies and how much is what's going on between the united states and china? >> a trade war is not good for anyone, but at some point all trade relationships have to be based on mutual respect and mutual health. i think everybody agrees that over the last decade the relationship was a front situation. -- fraught situation. i think it's a bipartisan view that we need a more respectful relationship with china and all of our trade partners. emily: how optimistic are you that the relationship will get better? >> i think it is in the interest of both parties to have

of amazon not to pay any federal income taxes. it goes a lot deeper than that. and let me tell you something that i think that no candidate for president perhaps has ever talked about. and that is the power structure of america, who owns america, who has the economic and political power to demand that congress work for them and not just ordinary people. so it is not just amazon, and it is not just walmart. it is about wall street. where six financial institutions have assets equivalent to 50% of the gdp of our country, and control the flow of trillions of dollars. well, you know what? today we tell wall street, we're going to break up the major financial institutions in this country. [cheers and applause] if a bank is too big to fail, a bank is too big to exist. [cheers and applause] but it is not just wall street, or walmart, or amazon that are ripping off the american people. take a hard look at the unbelievable greed and power of the pharmaceutical industry. >> [crowd boos] sen. sanders: listen to this. last year, the top 10 dr

of amazon not to pay any federal income taxes. and let me tell you something that i think that no candidate for president perhaps has ever talked about. and that is the power structure of america, who owns america, who has the economic and political power to demand that congress work for them and not just ordinary people. so it is not just amazon, and it is not just walmart. it is about wall street. where six financial institutions have assets equivalent to 50% of the gdp of our country, and control the flow of trillions of dollars. well, you know what? today we tell wall street, we're going to break up the major financial institutions in this country. [cheers and applause] if a bank is too big to fail, a bank is too big to exist. [cheers and applause] but it is not just wall street, or walmart, or amazon that are ripping off the american people. >> [crowd boos] sen. sanders: listen to this. last year, the top 10 drug companies in america made $69 billion in profit. meanwhile, they charged you, and you, and everyone else in americ

.>>> coming up would you let amazon take up a 3-d scan of your body? what the personal information could be used for.>>> san jose state students make history on their campus, the first ever autonomous vehicle built here.>>> coming up the one bay area city that refuses to fly the rebel flag. >>> a weather pattern more fitting for january is still here. it's a couple days away from the memorial hoy end. the memorial hoy end. le are we tnot yet.? at crystal geyser we put our mountain source on our bottle... that's cool. ...because we bottle at our mountain source. crystal geyser alpine spring water. always bottled at the mountain source. (vo) ♪ i know what you're thinking. electric, it's not for you. and, you're probably right. electric just doesn't have enough range. it will never survive the winter. charging stations? good luck finding one of those. so, maybe an electric car isn't for you after all. or, is it? ♪ when you can't get to the mountain... that's cool. ...we bring the mountain to you. let's go hike over there. i'm out. to. guys! crystal ge

there are other companies that compute in the cloud that is an amazon. -- better than amazon. the future will be sophisticated developers using the best for each of these applications. carol: how long can you do that lower price point and keep scaling up your business? david: storage -- the cost of storage is dropping every year. we are growing 25% month over month. everythingnt to be in the cloud, we just want to be the best in storage. we can keep that edge for a long time to come. by focusing 100% of our intentions on storage. this is an enormous part. carol: i know it is a little loud. thank you so much. still ahead, how apple and facebook can compete on their own cloud storage. that is next. this is bloomberg. ♪ carol: welcome back to bloomberg technology, live from boston. things took a turn for the worse this month. they fell for over seven straight days. joining us right now to talk about the business outlook is tom. >> the year is off to a great start. investors can of hold your feet to the fire. how do you see it? anyou have to have conversations with investors? >>

>> only amazon amazon disrupted the market. they're leading the market they're the number one player. i see that happening for a long time >> all right sticking with the big winner there, michael, jay see, thank you. for more trading nation, follow us on twitter. >>> thank you, like. >>> ahead on "power lunch" pivotal research has a big note on the tech sector we'll talk to the analyst who just became the biggest amazon bull and preparing for the future we'll ask a financial planner for tips on protecting your family's finances through market volatility the dow is down 409 at the lows. down 284 now much more when "power lunch" returns. >>> generally speaking a strong dollar is good for the economy but that doesn't mean that all companies are going to benefit equally. in fact, companies that do a lot of business abroad and those in manufacturing tend to be more vulnerable to a strong dollar. so if you believe that the dollar is going higher, you might want to check your exposure to those types of companies. who says our bank isn

that could do damage for amazon. yes, and bricks and mortar has an advantage, having access to it because remember, amazon is also trying to build a network of warehouses in order to gain access to customers and to deliver the goods we increasingly demand on the same day, so you could argue that walmart has the upper hand in that respect. the other thing that investors like ourselves are looking at when it comes to the uk is, what will it do about the asda state trying to monetise its value. will it do about the asda state trying to monetise its valuelj will it do about the asda state trying to monetise its value. i was going to ask you that and it seems an odd fit, but we heard it was seriously considering floating the business. who is going to buy into a supermarket these days when there appears to be so much competition in the uk sector? absolutely. it's not a particularly attractive sector from an investment standpoint and it's no wonder that the ceo alluded to some time for the flotation, wondering if some other