sells it on amazon. great for her and great for amazon because the more people to become amazon prime customers to buy this product. instead of seeing the fruits of her success, this hard-working rhode island are discovers amazon has rolled out a direct replica of her product. amazon gives itself top billing and to moats the entrepreneur to page through results, which most people will never see. how would anyone in light of that sequence of events, how would any entrepreneur invest in this kind of environment where that can happen, where there is no assurance it won't? >> our incentive is doubt ththe seller succeeded. they have many options. we apply the same criteria to vote and we do not use their individual data when we're making decisions to launch private brands. nate sutton answering the questions of the rhode island congress membeber david cicilll. stacy y mitchell, urur response? >> it isis simply not true that merchants have other options. amazon, one out of every two dollars spent online, and h

‘s fulfilment centres think that amazon ‘s fulfilment ce ntres ca n think that amazon ‘s fulfilment centres can keep pace with a lot of this because productivity appears a little off? amazon has been a lead in the commerce market, that's why it has been so successful, drones of the next day delivery, we have regular issues there so we don't know which countries will allow drones first the uk is one of the markets that is trying to open up drones regulation. but i expect suddenly amazon has warehouses that have some of the most advanced robots in the same way that a british company does, amazon is improving all aspects of delivery and also moving into new markets like healthcare, luxury goods, et cetera. google, and amazon, i should say the parent company, they both have their specific set of challenges in both reporting accelerating growth, due think anti—trust probes are going to play anti—trust probes are going to play a big role in the future?” anti—trust probes are going to play a big role in the future? i do. the biggest issue for regulation right 110w biggest issue for

amazon spends more than $8 billion. they spent more than $8 billion less year in advertising and promotional activities, but that growth is something to think about. is it in terms of one-day shipping, is it prime-day related, or are they trying to fight back? emily: it's interesting given that we were talking earlier about google's cloud business and how it is still in third place, though the cloud business in general is continuing to grow and is certainly not a zero-sum game. what do you think the slowdown or the disappointing numbers have to do with? competition orf because of amazon-specific issues? >> i don't think it is amazon-specific issues so much as competition. microsoft cloud business is up 60% recently. we know that business is on fire . we do not have a lot of his ability to google members. numbers. now amazon is competing with two giants, i think that absolutely could eat into the top line going forward. emily: what about the advertising business which has slowlyowly growing, becoming a third-place conten

before joining amazon, mr. sutton was a trial attorney with the dd deprmt of justice antitr divisi 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

it is great for amazon. more people become amazon prime customers. instead of seeing the fruits of their success, this hard-working man discovered the road on a regular gopher product. because amazon controlled the platform, because of self- taught billing and demotes the entrepreneur to pay results which most people never see. how would anyone in light of the sequence of events, how would any entrepreneur invest in this type of environment where that can happen.>> our incentive is to help the sellers exceed. we know they would go elsewhere. they have many options. we apply the same criteria to both. we do not use their individual data. >> i am now turning to the google search for a moment. everyday people think they're getting the best most accurate results. for the products and services they are looking for. people are seeing results for google's own services. in 2004, they said the purpose of google is for people to come here and to quickly find what you want. would you agree that google still claims that is your principal or guiding principle. >>

there's always been a sort of interesting dynamic with investors and amazon amazon was really it really wasn't profitable and told around 2015 and it only started posting real like above $1000000000.00 profits in 2017 and investors are really willing to just sort of look aside and focus on the revenue growth and that sort of helped it become one of the biggest companies in the world despite only having small revenues but what's sort of shifted over the past few years is that amazon's revenue growth has started to slow it's sort of face saying new competition and it's facing just you know the problems that come with being such a massive company and i think that's been really concerning for investors so people really want to see amazon make a big investment and you know the future of growth for this company is so i think they're generally was you know i think investors are looking for amazon to make these investments and they're willing to sort of discount the profits and we did see that and the stock reaction yesterday there was general concern about about the cost of this and we saw the

alexa, is amazon good or evil? i like amazon. without amazon, i wouldn't exist. michelle fleury, bbc news, new york. electronics giant samsung estimates that its profits slumped 56% in the three months to the end ofjune, to $5.6 billion. but that was not as bad as expected. let's go to our asia business hub, where rico hizon is following the story. good to see you, hi there. tell us more about these numbers. well, despite the poor numbers, samsung's performance improved from the first quarter, when the company reported its lowest earnings in more than two yea rs, its lowest earnings in more than two years, and the weak earnings guidance from april to june years, and the weak earnings guidance from april tojune is basically due to the semiconductor industry recovery being delayed by the slowing global economy. you also have the us— china trade war and the export controls on huawei. the us campaign against acro to swelled the glut of memory chips in the global market, with the chinese company being one of the korean tech sector's biggest customers. as for korean

amazon down by 2%. alphabet, sometimes the options markets get it right, they were pricing a move up or down of 6%. stock up 6.25% after the earnings release. >>> intel reporting its second quarter results. that is another big one to get too. jackie deangelis joins us with those numbers. what do we see, jackie? reporter: connell, intel soaring because we have a beat top and bottom line. revenue 16.5 billion, surpassing the 15.7 expectation. earnings per share $1.06. that was well above the 89-cent estimate. where intel tripped up last quarter was on the guidance. it gave weaker guidance, even though beat on top and bottom line. that was a problem. this quarter raising the full-year revenue outlook, up 500 million from april. so investors are looking at that in a positive light too. before the earnings came out we saw headlines regarding apple acquisition of intel's smartphone modem business. that is in fact happening. that will happen for a billion dollars. apple is getting a majority stake in it. after

alexa, is amazon good or evil? i like amazon. without amazon, i wouldn't exist. michelle fleury, bbc news, in new york. when amazon first started, it was great for the internet age but now it isa great for the internet age but now it is a monster with too much power. sarah says, good and bad, more needs to be done if they keep growing. peter makes a good point and says it's terrible for the environment with thousands upon thousands delivering single parcels to houses day in, day out. there should be a minimum order of five parcels before you get delivery to cut the mileage, fuel and c02. surprised people are not protesting. michael says, excellent for the consumer, next—day delivery but not so good for bricks and mortar retailers and shopping areas. let's bring injeremy retailers and shopping areas. let's bring in jeremy thomson retailers and shopping areas. let's bring injeremy thomson cook. 25 yea rs, started bring injeremy thomson cook. 25 years, started from a small business selling books but now look at it. yes, you can buy anything on amazon now and get i

so amazon was important. facebook to me, i was looking at intel. i'm always focused on the semis in general they're very much global -- truly global players they are often forward indicators of global growth. they sell to all countries so for me seeing the improvement outlook from some of the semis it was so negative for most of this year. finally seeing some positive news come out of the semiindustrsemiendu industry they have become a proxy for u.s./china trade talks and trade relations. the semiconductor etf is already back to all-time highs off those. >> yes >> you spoke about looking forward. are there earnings reports coming up in the next week or two that you think you will be hyper focused on because it could provide more of that thesis on global growth or the health of the global economy >> finishing up the big industrials coming through next week and i would say facebook being another one that will be a big one. and though google had a good report, i'm still concerned about the regulatory overhang that they have any of those companies, how

amazon continues to be a u.s.—based amazon? amazon continues to be a us. —based company and amazon? amazon continues to be a u.s.—based company and a lot of their revenues still originate from their revenues still originate from the us. they are getting more global but they just pulled the us. they are getting more global but theyjust pulled back the us. they are getting more global but they just pulled back from china, the second—biggest market in the world. not as important as the us but ethnically growing. bao vu on amazon's prime day performance. 50 yea rs performance. 50 years ago, the apollo 11 moon landing marked a defining moment in human history and since then businesses have been looking for ways to make money from our only permanent natural satellite, and that includes mining. earlier the chief executive of japan's ispace told me about his plans. we are looking to be on the moon by 2021. we have a lunar lander and a lunar rover to explore the surface. how do you plan to make money? well, we are aiming to do business by transportation business to the lunar surface at t

as i said, amazon up $8.40 to $2,019. amazon not set to report earnings until later next week. can't wait to see that. let's get to citigroup. citigroup kicked off the big bank names, second quarter earnings season this morning before the bell. the bank reported better than expected earnings and revenue for last quarter. now, you can see the stock is responding at the moment positively, up higher, but there was some concern that the fact that it might have a little trouble with some of the margins and trading business might ding other banks. speaking of other banks, 25 other financial institutio, jpmorgan chase, goldman sachs, wells fargo, all set to report this week along with tech names like ibm, microsoft, and netflix. we're going to be sweating it out here on "the claman countdown" but 56 s&p 500 names are set to report this week. 80 s&p companies overall have warned, though, that their second quarter financial results will be weaker than initially expected. this is hitting companies from alphabet google and apple to pfizer and adobe, micron and netflix also on the list. wi

amazon is many things. it's a platform, it's a retailer, it's a manufacturer, it's a digital ad giant and so much more. i think key to understanding its market power is it's able to leverage the interplay between these different business lines to extort value from its competitors. an executive at a large well-known performance footwear brand that sells to amazon told me that as long as his company sold to amazon on their terms, they would help him police the counterfeiters and the other nefarious sellers on the platform. but the moment that they pushed back, that they didn't agree to that next big discount or the change in terms, amazon's site became a wild west of sellers misrepresenting his brand, many overseas and unreachable. he said, quote, they use this as a punitive measure. they can sink companies without anyone to answer to. increasingly, our commerce is occurring not in a market but in a private arena governed by amazon, where it has the power to regulate, tax, and punish america's entrepreneurs.

>> reporter: hey, jon, it was close, but amazon edged out facebook for that top spot amazon web services is locked in a fierce battle with microsoft over the pentagon's $10 billion jedi contract. amazon spent $4.15 million on lobbyists in q2. facebook, $4.11 million. it was very, very tight. facebook has also faced some tough questions from policymakers about deep fake video and the launch of its cryptocurrency, libra. both of those companies appear to have set quarterly records for lobbying dollars third was alphabet, google, which was the top spender last year overall and actually decreased the money it's dedicating to lobbying from $5.8 million a year ago in the quarter to nearly half that amount last quarter. this amid reports that google recently fired several longtime lobbyists. microsoft and qualcomm rounded out the top five their spending on issues like data security, internet privacy, and competition as government scrutiny on those topics intensifies. during the quarter, top tech companies like facebook, amazon, apple, and google were also in the news about potential government

going from amazon or other retailers. price blink shows amazon branded or exclusive products, the fire tv stick, echo dot and echo show, they're getting the most attention again this year by page views nerd wallet said that's not surprising prices will are lower today than they were on black friday 2018 if they're amazon-owned products, it's amazon controlled pricing. amazon shares are up half a percent today. a analysis of the past four prime day events shows a month later 100% of the time, amazon shares are higher. by an average return of 5% perhaps foreshadowing what we'll see for amazon shares a month from now back over to you >> court, thank you. meantime send it over to mike san toll i who is back with his market dashboard >> thanks. pick up on the amazon conversation, something i'm calling eating the competition they say you shouldn't go to the super market hungry. maybe that applies to titling charts, too. here's the theme kids feasting while parents starve, that's another kind of haves and have notes story starti

i turn to amazon. alexa, what is amazon? it's a multinational american technology that focuses on e—commerce, cloud computing, digital streaming and artificial intelligence. is known for its disruption of well—established industries through technological innovation. its dominance is problematic with its growth getting rid of retailjobs and it has faced criticism over worker conditions at its warehouses. it's not a good look for amazon or any of these companies where efficiency is so prized that the human component is challenged. one decision it may come to regret, its failure to replace a second headquarters in new york —— place. the acrimonious split with the biggest city in america may have a situation where governments are less friendly to amazon. alexa, is amazon good or evil? i like amazon. without amazon, i wouldn't exist. good or evil? i like amazon. without amazon, iwouldn't exist. michelle fleury, bbc news, new york. in other business news, malaysian anticorruption in other business news, malaysian anticorru

why is amazon suddenly caring? reporter: it is that they are beginning to get pressure from politicians, scrutiny from d.c. europe. it is bernie sanders today, but tomorrow, it could be both ends of the political spectrum. it is their growth. they are growing 20% topline per year. about one million employees throughout the world if you count temporary workers. . walmart, about 2 million. you can see a day when amazon becomes the largest employer in the world, and that will have pressure. emily: on one hand, we talk about the lack of workers to fill technical roles. on the other hand, there's an explosion of warehouse jobs, given what amazon and walmart are doing, and a decline in traditional retail jobs. what are the dynamics happening at the ground levels that has led amazon to do this? reporter: by some measures, it is the tightest labor market in half a century. you have companies complaining there's a shortage of the types of workers they want. of course, some management and economics experts would respond, are

amazon spends more than $8 billion. they spent more than $8 billion less year in advertising and promotional activities, but that growth is something to think about. is it in terms of one-day shipping, is it prime-day related, or are they trying to fight back? emily: it's interesting given that we were talking earlier about google's cloud business and how it is still in third place, though the cloud business in general is continuing to grow and is certainly not a zero-sum game. what do you think the slowdown or the disappointing numbers have to do with? is it because of competition or because of amazon-specific issues? >> i don't think it is amazon-specific issues so much as competition. microsoft cloud business is up 60% recently. we know that business is on fire. we do not have a lot of his -- google numbers. now amazon is competing with two giants, i think that absolutely could eat into the top line going forward. emily: what about the advertising business which has been slowly growing, slowly becoming a third-place

if you work in part of the corporate amazon, and if you want to retrain as an engineer, amazon will make that happen for you. even more interestingly, if you work in one of the fulfilment centres, so this is one of the basic entry—leveljobs at amazon, and you want to train as a nurse or as an airline mechanic, jobs that do not exist at amazon, they will pay 95% of the tuition fees and costs associated with getting those certificates or degrees. there is a few reasons for that. firstly, it really highlights their future ambitions, their future goals. we have heard that amazon wa nts to goals. we have heard that amazon wants to get into the plane business. they haven't got there yet but they want to do that. we know that amazon is interested in the pharmaceutical industry. they have already made some business gains in that avenue. so what they are doing is pretty impressive. they are already training a workforce that will be dedicated to amazon. now let's brief you on some other business stories. that's it for the business briefing this hour, but before we go, here are the markets. up ne

people are not going to buy a uy a device or amazon -- by google or amazon device and run apple services. 1.4, 1.5le has the billion unique users, the problem is that they are not taking advantage. what they still don't have is some sort of subscription-based service for purchasing an iphone. i think until the services are up to snuff, there still is this device-centric approach. one more point on this. apple gets 90% of its revenues almost from hardware devices. i think going all in on services at this point is too early. emily: all of that said, johnny apple's chief designer who has been there for 30 years is about to leave. he was incredibly involved in the apple watch, in the airpods, and some of the biggest hardware hits apple has had since the iphone. laura, does that concern you? device-centric question. doesn't bother me at all. what i care about is revenue per user and value in the ecosystem. are they adding news, movies, tv? those increase stickiness and lifetime value. watches, which creates stickiness? increaseshat stickiness to the 900 million users who are rich and global.

emily: amazon opened a celebrity store a year ago. now they have all of these deals today tied to celebrities. they are starting to offer special products. lady gaga will offer an exclusive beauty product line only on amazon. how big of a deal is that? >> there are two things amazon has been trying to push into. fashion has always been an achilles heel for amazon. they have tried to go into basics by getting into and non-fashion categories. they picked up bigger business than macy's doing that. some of this is to get into the fashion accessories business. they are starting to realize the millennial crowd, they're going to start looking at different ways to attract that crowd back to amazon. channely has been a that has been added for a while now. emily: what are the trends you're falling one -- following on this particular prime day? over 48 hours. slightly more than last year. what is your take? >> prime day has typically been the biggest day of the year for amazon. this year, they expect that to be the same. one thing which has been

amazon tweeted it was the biggest 24-hour sales day in amazon history, at least day one. we are still waiting on final numbers. you know, there were some shoppers complaining that they were seeing technical glitches. there was a spike in searches for canceling amazon prime. so, presumably some of those people signed up bought some , things and wanted to cancel. what is the verdict so far, 36 or so hours? brad: sitting back and watching prime day, you have to marvel at what is sort of marketing event they have concocted out of thin air. they have created a holiday season in the middle of the summer. a holiday season comes -- brings with it a lot of problems. you've got porch pirates. you've got disappointed customers. you know, all sorts of things the company the frenzy. -- accompany the frenzy. overall, you have to sit back and admire the company for bringing itself to a peak season in the middle of the slowest time of year, right? they have created a frenzy where otherwise none would exist. they not only have done it themselves, but brought the rest of the online retail

and i think it's interesting on amazon, i only worry about the top line amazon spends so much money, and i will say this, i have a lot of positions in private companies that sell consumer goods and services in america, almost in every state now, and about 30% to 40% of our sales are now on amazon, and there's good pros and cons to that, but we really want that same-day delivery. so, if there's more capex going into that, i'm very happy with my position in amazon. that's going to be a game-changer for a lot of providers. same-day is a big deal, because it lets you get an advertising spend and get a direct measure to how impactful it is in regional markets, when you can deliver the same day >> we have got another earnings report out, and it's starbucks kate rogers has the numbers. >> very strong q-3 for starbucks here, beat on every metric we'll take you through eps 78 cents adjusted compared to 72 cents the street was expecting. revenues $6.82 billion versus estimates of $6.6 billion. that's up 8% year on year. the company also says that's an all-time high for revenues global comps up

they went partnering with the biggest online retailer in the world, amazon. potential home buyers now can go through amazon's turn key portal to a rea ag page where they enter information about what they want anare then connected with a real ag brand agent including coldwell banker, senturynd 21, sotheby's corcoran. they then step back in with up to $5,000 wor of free services like painting, cleaning, hanging your tv as well as p the home installed by amazon after the closing. >> your package comes with a curated suite of smartome products. >> like a ring video doorbell. >> reporter: it is a strategyde gned to boost sales for both amazon and real ag. >> t we need involve the consumer experience with the transaction. thut program is not just a helping people get into the right house with a great agent, but it is about havinge then power of amazon's home services and a fully-equipped smart home be ready for them when they're ready to move in. >> alexa, turn on the tv. >> ok f. >> reporte amazon, the benefit for now is to boost sales of its smart home products l

in the past, there was one day with amazon prime, amazon went out of the gates and everyone went amazon and bought, whether his impulse or not. walmart, target, costco, kohl's, they are getting on board. they are going to see a bump of 60% in sales over the next couple days. >> charles: the last two years, feels like the brick-and-mortar names are finding ways to push back against amazon and ultimately i think it's benefiting at least the consumer but it's also helping them. >> july is typically a slow period for retailers. it's before back-to-school and holiday shopping. >> charles: are they borrowing? they say back-to-school, will that period still be as robust as normal question exlico it will. some retailers trying to differentiate themselves from amazon. amazon is doing select items. trying to figure out what i liked or was going to buy. i saw some small appliances i liked. it's a lot of impulse purchases that happen. >> charles: there was a report out of the u.k., they did a study. over send 70% of people who worked there skipped bathroom breaks. they were afraid they would lose t

amazon. do you feel amazon miss treats their workers? >> i can't speak about whether or not amazon miss treats workers but the conditions in my company are becoming more and more burden some as amazon increases the pressure of the operations. >> what does that mean, in your case, because we've heard from workers here who say they have to pack a lot of goods in 16 minutes but as a pilot what does that mean for you? >> that means we have a staffing problem with the contracts that we have today we can't recruit enough pilots to stock these airplanes and amazon has really ambitious growth plans, and just getting the airplanes staffed and crewed properly in order to serve amazon is becoming a problem. >> so they're asking a lot of you. i'm just wondering do you feel that you're being paid enough to meet those expectations? >> actually we're losing pilots because we're not paid enough. if you compare the jobs we do to a company like ups or fedex and amazon clearly put themselves into that segment,

amazon is lagging, off 1.9%. net sales looking good. -- operating income will be $3.1 billion, the estimate was more than 4 billion. alfa bank -- alphabet was killing it. they will be buying back shares and beat net sales and profit. a nice move in the other revenue. intel, athen you have big chip maker. they are guiding higher for the third quarter and the full year. they beat on second quarter revenue and starbucks reported fastest cell growth they have seen in about three years. that is largely because of the higher traffic and they are boosting full-year outlook to about 282 per share. that is from a range of 275. taylor: we are going to stick with these earnings. i want to bring in bob o'donnell, chief analyst at a consulting firm. thank you for joining us from san francisco. i want to focus on amazon, because those shares are declining among what has otherwise been positive news. we were expecting a margin hit, given we have been investing in that one day prime. investors seem more caught off guard then we

at the amazon conference, you feel like amazon is leading the world in cloud. at google, you feel like they know they want to. likecrosoft, they feel they know they can and they focus a lot on the incredible reach of every single person in the world and how they can tap them with some sort of cloud service. it is hard to ignore china in that context. emily: if you cannot ignore china, what would the impact of the trade war be? this seems not to be subsiding, so if tensions remain, what does that mean? >> microsoft's strength in china has been around the cloud services. it was early in the market. amazon caught them fast. the market in china is for companies that want to go global or access the cloud services for the offerings they are providing outside china. so that has the potential to go strong, regardless of any iron curtain that might fall. emily: microsoft felt the antitrust pain in the 1990's with big antitrust hearings, but they have been largely out of the spotlight with the recent raft of hearings with amazon, google, facebook, apple all in the spotli

amazon is set to fire the starting gun laterfor amazon is set to fire the starting gun later for prime amazon is set to fire the starting gun laterfor prime day, its 48—hour shopping bonanza, but warehouse workers in minnesota have targeted this particular event to strike over working conditions. last year the online retail giant committed to paying employees at least $15 an hour but concerns persist over the way workers are treated. the bbc‘s michelle fleury has more from minnesota. this is amazon's massive warehouse in minnesota. a handful of workers here are planning to mark amazon's prime shopping day, and annual sales event with a strike. earlier i spoke to one of the workers to ask what they are protesting. we're on strike on prime day mainly demanding safe and reliable jobs from amazon. the speeds we have to work are physically and mentally exhausting. some cases lead to injuries and people not seeing the job they can do long—term, plus with amazon's reliance on temporary workers, not having the same job security, basically we want them to treat us with respect as human be

all along i think amazon should be more concerned than ulta. why? because mary dillon runs a tight ship in the best loyalty program in the world look out amazon, ulta is the real deal. harry in colorado, harry. >> caller: jimmy, boo, boo, boo-yah from the white peak mountains of colorado. wondering about your take on chewy the management, back up the truck or -- >> can't back up the truck because it's too expensivexpens. i was very impressed by management when we met very impressed i think they are doing a lot of things right some said how do we know amazon can't beat it? the guys, i actually once i asked pet owners what do they use? haven't found a sole that doesn't use chewy including us retail is back, etsy, lululemon and stitch fix found ways to win and charts can make you go higher much more "mad money." a company that works with visa, bank of america and you probably never heard of it. i'll reveal the name and what would have been pop's 97th birthday, i'm reflecting on things he taught me about business and your calls and rapid fire of to

deidre. >> melissa, put simply amazon is spending more and earning less but it is amazon so it is a return to old days of growth over profit. one day shipping costing more than the company initially estimated. >> it does create a shock to the system we're working through that now, and we expect we will be working through that for a number of quarters but when the dust settles we will, you know, regain our cost efficiency over time. >> he added that the response to one-day shipping has been positive and volume has picked up also on the positive side, we did see top-line revenue growth pick up to the 20% year over year level some headwinds cloeing growth in cloud computing, facing more competition from microsoft and google remember, key is the race with microsoft for the $10 billion government jedi cloud contract e market expects them to have 9% of the u.s. ad market at the end of the year. on the regular torr regulatory, surprise here. they have a longstanding policy of not commenting on regulatory matters. when pressed during the media call he said that amazon's guidance does not include a

with amazon. in one of their cases here in the state much california, they are saying we shouldn't be overregulated because all of the customers that go on to amazon are our customers. they are not reseller's customers. then in another court case they said they are not our customers, we don't want to be liable if something goes wrong with the product. we need to update the law. we are a 21st century economy. we can't let the rules of the 40s and 50s apply to this current marketplace. reporter: google is denying it has ties with china. >> it's very peculiar back ground where google is working with the chinese communist government and not with the u.s. military. so the project decision was not to work with ai with the american military but they are working with the communist chinese. the question is what in the world is going on there. reporter: google reresponsibilitied, as we've said before, we do not work with the chinese military. what about the president and the fact he says his administration

we are seeing coalition's between amazon employees -- coalitions building between amazon employees. see the employees by the banding together to make the voices a little louder. emily: we will be following it. , thank you for the reporting. u.s. women's team was not the only winner of the world cup, with watchers 20% higher than the men's final. and in the netherlands, nearly 90% of those watching tv tuned in. go, team. that does it for this edition of "bloomberg: technology." our globalck out breaking news network tictoc on twitter as well. this is bloomberg. ♪ manus: this is "bloomberg daybreak: middle east." how the strong u.s. jobs report will factor in. goldman sachs says they are relying on the wisdom of the crowds. cuts, u.s. interest rate and the removal of the turkish central bank governor rocks the lira. , the islamic republic threatens to push uranium two 20% purity.

actually amazon sells amazon web services. amazon sells facial recognition technology. and these other technology that is a backbone for ice to be able to store data. target people and then deport them. >>> protesters are also calling attention to what they say is amazon's mistreatment of warehouse workers in minnesota. many of those workers are immigrants. there are similar protests taking place at eight other amazon offices across the country today. >>> still to come democrats respond after president trump doubles down on controversial tweets targeting 4 progressive lawmakers. >>> 2 bicyclists pedaling in the bike lane in san jose. hit by an suv. one killed and the other in critical condition. an update coming up after the break. right now, earn 60,000 bonus miles after qualifying purchases when you apply and are approved for the hawaiian airlines world elite mastercard. plus, you earn miles on everyday purchases. get closer to the travels and moments you'll remember forever with this special offer. need another reason? enjoy an introductory no annual fee. to apply, v

yes, amazon is formidable. you know, nobody disputes that but i think what you are seeing is bright spots in other retailers which have high table stakes and are making inroads. >> an example would be target. somebody else? >> you know we are speaking ever the new ones to the market if you think about companies like revolve, you are seeing where high customer economics, high lifetime value where repeat purchases and gross margin give you a long-term value that customer exceeds the cost of customer acquisition and they have a long runway. >> influencers could replace marketing budgets? >> it is working your go-to-market strategy could be very different and very digital. >> you used to run hudson's bay company, of course that's a retailer. it is a department store we got an interesting call today out of goldman sachs and they are downgrading ralph lauren they are worried about the department store space and sort of that wholesale model with some of these brands do you think that's warranted? >> i think that the t

amazon workers on strike. it is prime day but that is not stopping employees at one shipping facility in minnesota, from walking off the job about one hour ago, calling for better working conditions. more job security, higher wages. we are live on the scene with the breaking headlines. >>> a new warning after a massive blackout crippleed heart of new york city. what officials are saying today. how the mayor of the city, who wants to be president by the way is defending himself for being thousands of miles away. >>> the first hurricane of the season to hit the u.s. is making its way north where we are he can track barry's past. residents begin cleanup efforts. ashley: so much to go at. fox business team coverage. jackie deangelis at the new york stock exchange. edward lawrence as always live at white house. susan li at a amazon fulfillment center warehouse in shakopee, minnesota. we begin with you, jackie. reporter: even though these were small positive gains on nasdaq and dow, hitting records psychologically s

and amazon prime day. so what has -- what started as just a day for amazon is now bigger than amazon. but we still anticipate amazon to break records next year. melissa: we are running a list of companies that have been hammering my inbox with offered. when you see things like this funny report googling cancel amazon prime membership was up 18% as people were joining to get the deal then canceling. >> we still expect to see amazon break records with the number of mimms they are driving and the number of deals they issued is much more than last year. and they are driving sales of their own branded devices, which is one of the keys to their strategy. melissa: i mountained that. when you go on prime day, the only stuff on sale is their product and i want to buy other stuff. do they make money on the whole prime thing? i get preshipping on about 5 million items during the year because of the prime thing. are they still making money on me? >> absolutely. amazon is not known for having the biggest discounts. the

sales are not actually amazon direct they are third-party retailers, in many cases using amazon's fulfillment. it's not just amazon's platform alone giving some argument that this isn't quite as cut and dry as the treasury secretary presented. take a look in shopify it has a $36 billion market cap. that has tripled in two years. and its business is really allowing businesses to compete without being on amazon necessarily, though as part of the latform, you can also operate on amazon. don't forget about etsy. they have an $8 billion market cap. that has quadrupled in two years. amazon was competing directly with etsy. and you know what, they are still doing just fine. one area that has popped out for amazon anti-trustwise is again that third party retailing platform there have been some complaints that amazon has a lot of data about what customer demand is for those third party goods. can then use that against its competition that might be an angle that the feds choose to pursue but we haven't even talked about cloud, kelly you know, amazon has not really tied the retail and cloud businesses c

in terms of amazon, regardless of what happens this quarter it's not the end of the amazon story. in terms of azure, look, it was the slowest growth they have had in the cloud in the last three years i believe, but that's a -- that's because of the size of the base has gotten big, so i still think they can be there and still perform. i don't think the market needs to perform to your point, but i think they will perform. alphabet is the one that i'm worried about because they have had some growth issues even though the growth expectations are very muted, below 20% versus 26% we're used to i shaved a little last week. i own a little amazon. i'd buy more if that got crushed. microsoft is still there, and i bought a little more after the quarter actually i think it's much more predictable earnings stream in microsoft and more analyzable than amazon or the others so i'm happier. >> it was a first-quarter disclosure that have slowdown that really got alphabet, right? >> yeah. >> and that's partly why or a big reason why it's been a lagard compared to its big-cap peers? does the valuatio

one survey shows amazon shoppers prime members spend more than double what nonprime amazon shoppers spend in a year.ay primes not just a big day for amazon either. it has created a halo effect for rivals. ee bay, walmart, target, macy's, best buy and many others have competing deals. in fact, target saysri day 2018 was one of its biggest digital days of the year. this year adobe analytics predicts large u. retailers could see sales surge 79% compared to an average monday or tuesday in july. and if amazon site crashes again this year, like it did for hours last pri day, that opens up even more opportunity for competingai rrs. for "nightly business report", i'm courtney reraan. >>> oe loses out on a government cloud contract, and that's where we begin tonight's market focus with a judge dismissing oracle's allegations that the pentagon's bidding process for that $10 billion cloud computing contract was tainted by conflicts of interest. what this means is oracle is now eliminated from the process, leaving just amazon and microsoft to compete for that contract. oracle shares were down a fract

this is an amazon's massive warehouse here in minnesota. a handful of workers here are planning to mark amazon's prime shopping day, and annual sales event, with a strike. earlier, ispoke and annual sales event, with a strike. earlier, i spoke to one of the workers to ask him what they are protesting. we are going on strike on prime dave mainly to demand safe and securejobs on prime dave mainly to demand safe and secure jobs from amazon. the speed at which we are required to work are exhausting, sometimes leading to injuries, and people not seeing a job as a thing they can do long—term, plus with amazon's reliance on temporary workers, not having the same job security. basically we just want them to treat us basically we just want them to treat us with respect, as human beings, and not treat us as machines. for most consumers, you click a button, your package arrives a couple of days later, good prices and convenience, what is the issue here? iama convenience, what is the issue here? i am a picker, i convenience, what is the issue here? i

i think they have to understand that amazon's amazon. they can pick up kind of the rest of it if you will. dagen: which retailer does the best job riding on amazon's coat tails. walmart would be the obvious one. >> i would say walmart. i would say target has done a phenomenal job. they're using retail stores more than a lot of other retailers will use them because of the sortments. -- assortments. a lot of retailers are using the actioam xiom if we take the stot of the h equation, we reduce co. >> i'm a regular amazon prime shopper. i didn't know it was amazon prime day. are they advertising -- i mean, how come i didn't get an e-mail about this. you have to turn on "mornings with maria." are they advertising this in a way i'm missing. >> good question. i've been getting hit. they've been blitzing me over the last several days, weeks. the big announcement was june 25th where they announced exactly when it would be. you kind of knew if you're an amazonophile. then they hit you with it's going to be 48 hours this year instead of 36. they ma

amazon is the enemy? before microsoft, before amazon, seattle in the '80s was a dying timber town. there was no wealth there at all. microsoft came, amazon came, they created the wealth. they created literally millions and millions of millionaires. now as you're seeing just in fact how mobile money is and the more difficulties administrators and bureaucrats make it to create jobs because seattle's minimum wage is just one example, more money not just leaves seattle but leaves america writ large. >> the positive is that the reporter said it only at the end, they are going to bellevue and will create a 40-story plus building over there. they are still focusing on washington area. to add to all of this, apple, just within the past two weeks, announce they hare doing this five-year expansion plan in the united states and specifically within seattle, i know it's not amazon, but apple announced they would be adding 2,000 jobs. hopefully that could offset some of the loss from amazon overall. i still think it's good. you have amazon investing in bellevue, they will build a light rail syst

. >> announcer: coming up, amazon's prime day isn't just about amazon anymore how others are cashing in on the company's big day. plus, one billionaire investor says google should be federally investigated why? and dozen his role on facebook's board have anything to do with his call >>> and coffee without the coffee beans this is "the exchange" on cnbc. . they can help gut check your strategies and answer all your toughest questions. sounds perfect. see, your stress level was here and i got you down to here, i've done my job. call for a strategy gut check with td ameritrade. ♪ . >>> welcome back to "the exchange," everybody that time of year again, amazon's prime day is in full swing. it is a 48-hour discount bonanza that promises a massive number of sales and new prime members for amazon but this year, competitors are throwing their hats in the rick we will explain that with lauren thomas who is cnbc.com's retail reporter and courtney reagan welcome to both of you what's different about prime this year and why is prime so prime to amazon? >> so prime this year is longer, longer th

amazon tweeted it was the biggest 24-hour sales day in amazon history, at least day one. we are still waiting on final numbers. there were some shoppers complaining that they were seeing technical glitches. there was a spike in searches -- spike in service for canceling amazon prime. so, presumably some of those people bought some things and wanted to cancel. what is the verdict so far, 36 or so hours? brad: sitting back and watching prime day, you have to marvel at what a marketing event they have concocted out of thin air. they created a holiday season in the middle of the summer. a holiday season brings with it a lot of problems. you've got porch pirates. you've got disappointed customers. all sorts of things, the frenzy. overall, you have to sit back and admire the company for bringing itself to a peak season in the middle of the slowest time of year, right? they have created a frenzy where otherwise it would not exist. they not only have done it themselves, but brought the rest of the online retail industry with them. you see everyone else offering sales as well. can

what does this mean for amazon then? spencer: it is tricky news for amazon. they have enjoyed rapid prime member growth. once they lock in a prime member, they can count on that for more sales through the year. the typical prime member in the u.s. spent a little more than twice as much what i nonprime member does on amazon. prime, even though it is a big tale of deals, the revenue they make is not as important as a new prime member sign-ups because that is where the revenue keeps coming year round. the indication that people who were not prime members are simply joining for a brief period to get the deal and backing out is bad news for amazon's prime member recruitment strategies. paul: what are people buying anyway? some of the purchases do not sound terribly glamorous. spencer: it is not much different from previous years. big emphasis on amazon's on gadgets like the echo speaker, fire streaming stick device, e-readers. it is typical from previous years. some kind of lingering favorites like the instant pot that is selling well and some laptops and electron

>> yes, today and tomorrow, amazon prime day, lots of deal on amazon really a lot of those amazon devices that we will see mark down, the fire, kindle, all of that, but, of course, you have to have amazon prime membership to take advantage of those prime deals, but there are some other retailers getting in on that action, they've got 2 days of deals as well, running exactly the same amount of time as amazon sales, they are pushing the fact that you don't need a membership to shop on target's website, wal-mart also deal, they've got 4 days of deals starting yesterday through wednesday, so really we are seeing this mid-july shopping spree for consumers out there looking to take a look at deals and websites now. heather: competition is good, well, the time now is about 46 minutes after the top of the hour and they are facing thousands of lawsuits, now johnson & johnson on doj investigation. mothers using tainted powder on their children, dr. mark siegel is here to break it down for us. >> good morning. hh. ooh ohh here we go, here we go. you got cut off there, what were you saying? oooo. oh