>> let's begin with a check of first word news. in syria, and airstrike on the biggest market on the rebel held side of aleppo reportedly left 15 people dead. an assault from syrian and russian warplanes has devastated aleppo, which international aid organizations say is in the midst of a humanitarian crisis. as helicopters to liver food and supplies to haiti after hurricane matthew, there is another threat -- cholera. at least 200 cases of the waterborne disease has been reported. donald trump is suggesting

politicians in both parties work together to avoid legal trouble. trumpally in florida, to bringfbi refused charges on hillary clinton and said republicans and democrats in congress went along with it. hillary clinton is targeting republicans who support donald trump. her campaign may also be looking to turn three traditional red states blue. recent polling shows arizona, georgia, and utah may be up for grabs. global news 24 hours a day powered by 2400 journalists and 120 countries.r ♪

emily: this is "bloomberg technology. sociald be the biggest media ipo since twitter. snap gets a step closer to an initial public offering. amazon makes a run in music streaming. in an already crowded market, should pandora and spotify be worried? and, a report that apple has a seat on the board. we will take a dive into the boardroom dynamics. wells fargo shares climbing after hours after the bank announced that john stumpf will step down as ceo and chairman effective immediately. the company has named president tim sloan to replace him. this move comes amid a public outcry over the revelation at wells fargo employees opened millions of bank accounts for customers who did not request them. i want to bring in our bloomberg news reporter. first of all he's the guy who

, led wells fargo through the financial crisis. what do you make of this leadership shakeup? reporter: that's a good question. we sort of solace coming in insort of saw this coming september. -- the cfpb announced a $185 million settlement with wells fargo over more than 2 million accounts thought to be opened without customer knowledge or approval. so, the pressure has been mounting. emily: at this point, what is the real damage here to wells fargo? how are customers taking the news? if this really having an impact on the way down the chain? dakin: we haven't seen much of that. wells fargo will report earnings on friday and we are hoping to learn a bit more about whether customers are leaving the bank or picking up and moving to

competitors. so far, from what we have been hearing, not a lot of that is happening. it's not clear how much of this has affected the bottom line. it is worth saying that some clients have withdrawn from wells fargo. chicago, illinois, california governments have said they are no longer doing business with the bank on some transactions. it is starting to hurt a little bit but it doesn't look like a lot yet. emily: it will be interesting to see how this plays out over the longer-term. another take has been that the bank has emerged fairly unscathed. they paid $185 million fine and clawed back $60 million from executives. what do you make of that that it hasn't hurt them that much? dakin: when this initially came out, i think a lot of people

look at the size of the fine and looked at the fees the bank charged customers. it was like $2.5 million, and said, this is a small thing. it's sort of built on itself. washington, d.c. got involved and lawmakers got involved in a them downy brought for two hearings, first in front of the senate and then in front of the house financial services committee. it picked up a life of its own and built on itself and the scrutiny and pressure has been building on stumpf. emily: now he is out of a job. tim sloan replacing him. thank you for that update. we will continue to monitor the story and bring you any headlines. now to our "bloomberg technology" lead -- snap is said to be one step closer to a public offering. the company has chosen morgan stanley and goldman sachs to lead the ipo.

this, according to people familiar with the matter. the recently rebranded snap has a private market value of $2 billion, making it the largest social media ipo since twitter in 2013. november joining me now is our helped break, who this story for us. perhaps it is not surprising goldman and morgan would be part of this offering. the two top investment banks. what we know so far and what are the details you have been able to uncover? alex: morgan stanley is the lead with goldman: leading -- goldman co-leading. if you notice this is a lot of , the banks that helped extend this credit line in recent months to snapchat as well so , perhaps a bit of a pay to play there. snapchat has filled its suite of underwriters and we have reported that they are prepping ipo documents, looking to go public as soon as next march. really some momentum here in

terms of an actual offering. we thought it might have been further off than anyone of us expected. exactly. facebook didn't go public for eight years. uber and airbnb are still fundraising. what do investors make of the fact that snap is doing this now? if indeed it happens. alex: we think they will be paying attention to the fundamentals of the company. with snap, they are still developing relationships for content, like with an 8 -- like with nfl. they are making a foray into consumer products like with the glasses. whether or not these things are going to materially add to the bottom line and where margins are going to be, those will be the top things investors will pay attention to. talking to people in ipo land on the investor side, people are excited to get one of these big, notable names.

--n you think about cap about kind of the momentum play we've seen some of these smaller , tech docs trade up quite a bit after an ipo, and with the big name like this, you have to think there's a scarcity effect that would play into a public listing. emily: you have to wonder, are they going public because they want to or because they have to? has it been difficult to raise money at a high valuation given they are still in the early stages of developing the product? alex: they have tapped a lot of different funding sources whether it be equity or the credit line they have extended. it seems like they decided it's time to move on. looking at who's running the company, you have some former bankers and smart folks in here. if they are ready to get public and be financially reporting in

front of public investors and dealing with the quarterly cycle, that is something a lot of tech companies have been hesitant to do. if they are moving in that direction they have to stomach , these decisions at this point. emily: who are the people advising evan spiegel? you mentioned -- you referenced enron con, the chief strategy officer at credit suisse. snapchat has been through some cfos and coo. who is helping to march this forward? valero is currently standing it hasn't cfo and overseeing the financial nitty-gritty. evan is the face of the company, who is going to be an important person to get in front of investors. looking at imran khan's experience, he was responsible at credit suisse for leading the

alibaba ipo, which has been a biggest technology public listing that folks have cared about in the past decade. when it comes down to the actual ipo and ipo readiness, you have to expect he will be in there and have opinions and guidance for the company as they marched through this process, which is very involved, and some companies don't like to go there because they can see it as a distraction. to have that kind of person on the bench with a former mattel executive in that cfos see, it seems like they have some guidance to help evan spiegel as he runs this company as ceo. emily: i remember running into khan on the floor of the new york stock exchange on the day of the alibaba ipo. a great scoop. thank you for bringing us that update. later in the show we will chat , with snapchat's first

institutional investor. of lightspeed venture partners will be joining us. we're watching samsung seeing its biggest three-day stock plunge. $23 billion have an wiped off its market cap after the company said it will end production of the galaxy note 7 smartphone. samsung cut is third-quarter operating profits by $2.3 billion, but not all investors are fleeing. tc international, whose funding generated a 23% return last year said, "samsung offers exceptional value. we have added to our position. position." coming up, amazon dives into the world of music streaming. what does it mean for pandora and spotify? the number of china grants apple a seat on the board, but it is not tim cook who will be representing the company. ♪

emily: shares of a swedish phone network company sank the most in nine years. ericsson wiping out the $.8 billion in market value on wednesday after the company blind-sided investors with its unscheduled rate on third-quarter earnings that missed analysts estimates. the announcement coming a week after ericsson announced major job cuts in sweden. it said wednesday that it would need more to stabilize operations. the ceo reassured shareholders the company is not falling into a death spiral, saying, "this is not the beginning of the end for ericsson. we are a company that many years have been good at adjusting."

amazon is taking the plunge, diving into an already crowded music streaming area. amazon is sweetening the deal for prime customers with a discount to subscription plans acts $7.99 a month and $3.99 a with an echo.s they have expanded their library, giving a boost to go ahead of the holiday shopping season. joining me now is our bloomberg reporter who covers amazon. what is your first take on how compelling the bells and whistles are? talked was about the library, the subscription plan and , whether customers will sign up. spencer it's a message that : amazon is getting more serious about music. , they've had a vanilla catalog for years and it has been subpar for real music enthusiasts. so, the fact they are increasing

the song catalog so much and it will include more new releases from top artists indicates they are getting more serious about the music push. you hit on the key points. with spotifyarable , but a sweetener for prime members, and the big take away the promotion for the echo.they want to bundle with a a voice-activated speaker. emily: a really sweet deal if echo.n the amazon it is the only tech giant who has tried and failed in the streaming business. does echo really make this different? ,ow much will having an echo the benefits for echo owners actually increase the success of

this? spencer music is the key gateway : for the echo. it's difficult to keep track of all the new functions. you can did your lights order a , pizza, do all of these things through voice commands with the echo. they have introduced a low cost echo at that you can attach to $50 your own speaker. they want to get people excited about it, so the cheaper music streaming option is a way to get people excited and bring it at a lower price point. emily: how much of a threat do we think amazon is to spotify? there was a concern that apple music would make a big dent in spotify users, but it hasn't so far. how much do you think this could impact spotify and what about pandora, which is going through a rebrand? spencer you have to think of it

: as a long-term threat. you don't see it as overnight. amazon plays a slow and steady game. you have seen it with video, where they come slowly and gradually increase their offerings. music is going to be similar. even with logistics, they keep refining, getting better and faster. long-term, it is a considerable threat and the executives are watching what amazon is doing. emily: spencer, thank you as always. coming up, the ceo hoping to change the game of dating apps. joining us next. later we will dig into the theectacular boom and bust, cautionary tale of a fallen unicorn. it is the subject of a new podcast hosted by brad stone. ♪

emily: the meal delivery start up is looking to replace its ceo. the former ceo recently joined the board and said he has been asked to consider the job. nchery is not profitable right now it is said to be struggling to attract new investors in the latest round. hinge is swiping left on its own business model after realizing only 15% of its matches were materializing into actual conversations between users. the company is revamping. it has done away with swiping and incorporating a new seven dollar monthly membership fee. but with plenty of free competition, will it work? joining us to discuss that is the ceo. justin, thank you for joining us. to slide has become a

fixture in the dating world. why get rid of it? swipe: we found that the was kind of the affinity of what casino games or look up factories. it symbolized and also drove the whole reputation and culture. we felt, by getting rid of that and building something new, we could get into the space of people actually looking for relationships. emily: you released a video this week about there being a dating apocalypse. is there an apocalypse or are you just pivoting because tinder seems to have the swiping market cornered? justin i would say there is an : apocalypse out there. in a world where -- dating apps have become a staple of culture for this next generation. the way they affect our lives or the way they are designed to affect our lives.

you can see that in the video we created. the amount of loneliness that people feel and how objective people feel by just swiping to the left or right is damaging to people. it is just not conducive for people actually looking for relationships. that is what we are trying to change. emily: you will be charging users seven dollars a month. i wonder in a world where people are so used to free apps, will your customers pay for this? do they want an eharmony or match for their generation? justin you can look at eharmony : or match and they charge $39 or $50 a month respectively. i think our price point is geared at millennials at about seven dollars a month. for people happy playing a game or hooking up, there are other options for them. but for people looking for , there's more serious

really nowhere for them to turn except for match and eharmony. we trying to be the next generation of the match and eharmony. emily: one of the paradoxes of the online dating world is that if you match customers successfully, they leave. they stop paying. have you get around that paradox? eharmonyatch.com and are marketing companies. they don't make a stellar product but they spend a tremendous amount of money so you come sign up. the next generation our product companies. they built products that are affected at something and spread by word of mouth for the most part. if you look in the old world, there were only one or two players in the casual space. that was plenty of fish and .kcupid in this new world, you have

tinder at the casual land but nothing really at the relationship and. they get older, their needs are starting to change. trends int are the dating that you see? there is a quote from a professor in a "vanity fair" article that stands out to me that we are in the middle of the biggest transformation in human relationships since 15,000 bc when the marriage contract was invented and it's all because of the internet and dating apps. is the future bleak to you? if the swipe remains part of the dating lexicon, what happens? certainlythink that's culture has swung to one end of the pendulum. we are already seeing that the pendulum is swinging back the other way. people are disengaging from the platform. you can the user satisfaction going down across almost all of them. i think the culture is swinging

back the other way. dating apps introduce a new paradigm and we are starting to adjust to that paradigm and develop new norms. i think it will be for the better. when i started hinge in 2011, there were no dating apps out there. i was trying to have a lightweight way to meet new people. overall, i think it is a good thing, but it can be refined from the swiping culture we have now. emily: we will keep an eye on how the revamp does. thank you for joining us. coming up, the very first vc investor in snapchat. we will speak with jeremy liew. if you like bloomberg news, check us out on the radio. we are streaming now live on twitter. check it out. this is bloomberg. ♪

>> the latest first word news. china's exports fell the most since february last month as global growth remains tepid. imports are down 1.9%. data may increase pressure. says it haskorea taken the debacle into account in its latest revision of the economy. they admitted there would be some impact. reports say samsung may launch a new galaxy 8 phone

in february. it had its worst three-day selloff since 2012. shares falling sharply after a critical review of business. second-half results are no longer expected to be better than those in the first half. reported anathay 82% in income for the first part of the year. dayal news 24 hours a powered by 2400 journalists in more than 120 countries. as a bloomberg. juliette: checking the markets in asia. mostly weakness coming through. this is the fourth session of losses. losses in the energy space with crude oil falling down 2.8%. cathay falling quite sharply.

also, a switch up from some of those consumer related stocks. this week, we await a further updates. you have seen the thailand stock itsx fall 10.6% so far from 2016 high. . i weaker by 0.5%. this is we are seeing more pressure on some of those exports stocks. in australia, seeing raw material prices under pressure. a pickup in some of those gold related stocks. the market starts to factor in

the rate hikes coming in and december. 2.3% against the u.s. dollar. continuing to watch the tie -- the thai baht. ♪ emily: this is "bloomberg technology." i'm emily chang. the parent company of snapchat has selected bankers for its public offering. they will work with morgan stanley and goldman sachs only offering which could happen as soon as march. joining me in the studio is a -- is jeremy liew, partner at light speed. great to have you on the show. the story of how you discovered snapchat is amazing. it was before anyone else knew about it except for some teenagers. tell me how you discovered it. jeremy: we were very lucky. one of my partners had a

daughter going to school at one kobe high schools where it was initially popular. because he is an engaged dad, he noticed his daughter was using app all the time and he asked her about it. she says there are three apps everyone has -- angry birds, instagram, and snapchat. he said, i've heard of two of those but not the third one, so that's how we heard about it. we were able to connect with the ceo of the company and after a few conversations, he told us he was growing so fast that he could not pay his server bills and i said, maybe we could help you with that. emily: this was when facebook was looking to go public and nobody could imagine a world where facebook would not be the dominant social network. i am curious, what was the reception or discussion at the firm? was it a slam dunk or was there some skepticism around it? jeremy: one of the things that

is constant about technology is change. there is always new companies and opportunities and we are frequently investing in companies going up against big incumbents. if you have answered the door who you believe in -- and entrepreneur who you believe in and a vision you believe in. emily: i know you can't share the details on the timing, but given that facebook waited so long, why would they want to go public now? will let thenk i company speak for itself on that matter. emily: how should they sell themselves to wall street investors? how do they differentiate themselves from facebook, twitter? jeremy: i think the company will be in a better place to talk about how it differentiates itself then i can. emily: how do you make sure it does not become the next twitter? what do you see that is different than some of the pitfalls we have seen twitter

have to deal with? jeremy: i think for a company to be powerful, it needs to have the combination of growth and engagement. engagement leads to long-term retention. i think that's something snapchat has demonstrated in spades -- incredible growth and incredible engagement. people who use it use it many times a week and many times a day and that creates new habits. when you become a habit, when you become a verb, you become a very important company. emily: speaking of habits and new trends, snapchat is getting into hardware, making these things called spectacles. we did a poll and i know this is not scientific, but whether folks will buy snapchat spectacles, 89% of people said are you -- 89% of people said no. are you excited for snapchat spectacles?

what makes you think it could be a hit? jeremy: evan has spoken a little bit about it. he is an amazing product visionary and i tend to believe him. he has demonstrated over and over again that he has the ability to see around corners and see a new future that other people don't see today. i have full confidence in the company. emily: 500 people participated in that poll and perhaps the answer would have been different if we didn't on snapchat. -- if we did it on snapchat. you have invested in a number of e-commerce companies and you look for apps trending among young women. tell me about that. jeremy: i think that young women are the cultural carriers for society. what young women do today, everybody will end up doing three to five years from now. part of the reason for that -- and this is a bit of a cliche, but men will tend to do things with each other like go play basketball or go play golf. but women talk to each other.

if you have that ability, if your product inspires other people to tell other people about it, genuine word-of-mouth, that's a good predictor that it's going to be successful more broadly. emily: what is the next big thing young women want? jeremy: there's a lot of areas where we are continuing to see growth and engagement. e-commerce is a good example. we can all agree we will be buying more things online in the future than we are today and there are a lot of great companies that are appealing to young women. a company like hungry root, with reinventing packaged convenience food. there are a whole bunch of e-commerce things that i get excited about. emily: we will talk more about your e-commerce investments in the next block. but before we do, you guys are -- were involved in apple's first original show, committing

$10 million to the winners of the show. jessica alba is part of your mentor onand is a that show. i'm curious what it has been like working on the show so far and what should we expect? jeremy: shooting hasn't started yet and we are still in the process of casting the apps that will be on the show. we are looking forward to seeing what they have in mind and part of the job as a venture capitalist is you get to see the future through other people's eyes, and we are looking forward to seeing the future these people have in mind. emily: you have invested in some media companies and i'm curious, given your whole investment thesis about following young women, what do you think is the future of how people consume content? it seems like people are still watching a lot of tv on tv. maybe that's just me. jeremy: i think that's right, but the trends are becoming

quite clear. more and more video viewing that historically happened on tv is happening through other channels, whether it be mobile or through facebook or twitter. if you think about the five and a half hours that the average american watches tv, some of that is appointment tv like game of thrones or westworld. but another portion of that is ambient tv. you cannot watch "westworld" when you are getting the kids ready. it requires too much attention. but you often have something in the background, espn falls into that category morning shows, , late-night tv, and a lot of daytime falls into that category. if you think about the tv os players, whether netflix or amazon, they are focused on the replacements for appointment tv. if you really believe people are cutting the cord then that case , for ambient tv needs to be

filled. we think there's an opportunity for a new generation of content companies to really do that. emily: jeremy liew, you are sticking with me. we are going to talk a little bit more about e-commerce coming up. but i want to get back to a developing story john stumpf , stepping down from wells fargo effective immediately. shares are climbing after hours on the news. the company has chosen tim sloan to replace him and stephen sanger becoming the chairman. our bloomberg news reporter just got off the phone with sloan. what did he have to tell you? laura: what he said was this is a decision that john stumpf made -- and not something that the board asked him to do. he quit, he was not fired. then the thinking of why tim sloan was put -- he's really

planned for this succession for quite a while and was named in role lasted into a november as chief operating officer. the bank had groomed him, but it's important to note that after all these scandals, there has to be some link. emily: john stumpf is the guy who led the bank through the financial crisis. he has been in the hot seat for the past several months. you have legislators coming out saying he bears direct responsibility, whereby wells fargo employees were creating accounts for customers they did not even ask for. how big a blow is this to the bank long-term? laura long-term, we are not : sure. we will hear from them on friday morning and i'm sure it will be one of the first things investors want to know -- how long is the fallout going to exist and do you see customers leaving? do you think they will see more people leave? that is not something we have been able to answer yet.

not a lot of data has come out to the point where we can ascertain those details. but, for investors, that is the key question. they don't mind there was only $185 million paid for a fine. for that size bank, is not a lot of money. what the investors are concerned about is the reputational damage and going forward will there be , customers who pull deposit and will people stop using their wells fargo credit card? emily: we will continue to closely follow this story. thank you so much for that update. still to come, what happens after you crash a billion-dollar e-commerce site into the ground? well you move to berlin and , start over. we will dig in to the story of jason goldberg and hear how he is moving on. ♪

emily: turning now to what has become a cautionary tale in silicon valley -- the boom and bust of fab.com. in 2013, the site known for quirky home decor was valued at $1 billion and the ceo, jason goldberg, was feeling confident. jason: the way we look at the world is that there are currently cointreau e-commerce companies worth more than $10 billion -- amazon, rocket town in japan, alibaba in china and , ebay. have ak we had a -- we legitimate chance of being the fifth one. we have more money than we need to run fab into the future. emily: that was jason goldberg on bloomberg television just three years ago. but what came next was a spectacular flameout and remnants of the company were sold in 2015 for a mere $15

million. it's a reporter told by our reporter in our first podcast episode of "decrypted." she joins us here along with lightspeed venture partners'jeremy liew. what did he tell you about lessons learned? reporter: jason was actually incredibly willing to explain that this was a massive failure. he says he feels so much of the weight of all of these expectations that he didn't fulfill. he has actually moved away from new york or the startup was headquartered and he is now in berlin and fewer people know him and the reputation of fab.com. he says this is something that taught him that even when people tell you that you are at the top of the world and you are going to win, you can't let yourself believe it because if you do, you will have incredible blind spots in your business. emily: or even when he tells the world. [laughter] world,when he tells the

he started to believe it himself. he said you get a little bit of deliriousness -- about, you really feel like this is going to work and anyone who tells you otherwise is a traitor. emily: jeremy would you invest , in jason again? he is a bold personality but he crashed and burned? a businesson was school classmate of mine and he has always been ambitious and has had the ambition to bend the world to his will. he has taken a couple of runs companies and sometimes they at haven't worked out but sometimes you learn from failure and if you learn the right lessons, then hopefully it makes you a better investment next time. sarah: we don't know much about

it. jason wanted to get this off of his chest before he delved into many details about what it does. he does not want this to be another thing that gets so incredibly big and, given the personality, i will believe that when i see it, but he's using some of the same engineering team that he used at fab. he is basing it in berlin. he says he's going to try to be a little more measured about how he thinks about the future of the company. he's going to say, i'm just trying to build a product and not unseat the grace -- the greats in this market just yet. we will wait and see how people like it. emily: you are an investor in bonobos andny and we have seen spectacular flameout in subscription sites &a latelyve seen big m

with walmart. unilever buying dollar shave. where is the e-commerce world going and will there be companies that can outlast or outdo amazon, or will amazon ruin the business for everyone? jeremy: amazon is an amazing company and it can be difficult if you want to compete with them head-to-head. you have got to find an angle where you have an advantage. one of the reasons you see a lot of attention around vertically integrated brands, companies like bonobos like honest company , and dollar shave club, is that it creates a differentiator. you don't compete directly with amazon. you have much higher margins and much better margin integrity if you control your product and therefore control where it is sold. historically, brands have been built offline. one of the interesting things we are seeing is that you can build

a vertically integrated online native brand. it starts with all the advantage of being able to very quickly iterate and find products. eventually, if it is going to work, it ends up being omni- channel. you do want to be wherever your customers are. emily: jeremy liew, thanks so much for joining us. sarah frier on the first edition of our new podcast with brad stone, "decrypted." you can download it on soundcloud and other podcasting apps. this weekend we will bring you , the best interviews of the week, including our conversation with twitter cofounder biz stone and why he hopes twitter stays independent. ♪

emily: the information is

reporting apple has a seat on the board of a chinese ride hailing giant. it cites the regulatory filings saying apple got the position a few weeks after investing in the company. alex webb joins us now. tim cook will not be taking a seat on the board. but who is this person and why are they on the board? alex he is the head of the apple :'s m&a team. he is a very important person at apple. he is a former investment banker. but the reason i think it is telling he is taking the seat and not another executive is that it kind of hits at what apple's motivation is. it's a financial investment, not about technology tieups. there have been two motivations, maybe getting some map data out of china or trying to cozy up to the relevant authorities, showing they are investing in the country. emily: there are still a lot of questions around, will apple

give them some kind of special treatment and how will it pay off other than a billion dollars? alex frankly, it is the other : way around. didi is well-positioned in china and apple is not. it is hard for american companies to make headway in china, so apple investing makes a commitment to that country. one of the other motivations people have suggested is that it gets apple pay into chinese phone users' hands. uber is anceo of observer on didi's board. i just don't get it. didi has a seat on the uber board. alex: we did a graphic last week and there's a huge amount of cross investment in the tech industry, automotive industry

and ride-hailing industry. uber alone has microsoft, google, then there is personnel exchange where they take people from google and apple. meanwhile, lyft has a tie with them. it is usually confusing, this web of companies. everyone is in a panic about the future of automotive and ensures they are well-positioned. emily: i'm sure we will be following how much more incestuous it gets. thank you for that update. we will keep our eyes on that story. that does it for this edition of "bloomberg technology." tomorrow, we will talk about sony making its first -- making its virtual-reality rivalry official with playstation vr hitting the markets. that's all for now from san francisco. this is bloomberg. ♪

♪ carol >> signs of stress among producers due to dips in production curves. yousef: the fed minutes show it is close. >> china's exports plunged last month. trey fell by $10 billion. >> and samsung is said to be