revamp of the republican health care bill which seeks conservative support by letting insurers sell low premium policies with minimum coverage. it is unclear whether it will survive a vote next week. revamp of the republican health care billfrench president manuan concludes to differences with president trump. but says the disagreement will not hold back discussions. they held a news conference in paris today and followed it up with dinner with their families at a famed eiffel tower restaurant. president trump's proposed budget would not balance in 10 years, contrary to the white according to the nonpartisan house budget office. they estimate the deficit in 2027 would be $720 billion under the plan. prosecutors call more than -- charge more than 400 people with health care scams. it is called the largest health care fraud takedown in u.s. history. former president jimmy carter treated in canada where he is

helping to build houses for habitat for humanity. the 92-year-old carter was dehydrated after working at a construction site. global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. i am alisa parenti, and this is bloomberg. ♪ emily: i am emily chang and this is "bloomberg technology." uber hits reverse on russia and gives the driver seat to a rival. second retreat from a major market. doubling down on vr with a new headset and price tag. how the hardware stacks up against industry leaders. under -- the gop unveils

the new health care replacement. first, to our lead. uber is handing over the keys to its business in russia. the u.s.-based ridesharing giant is teaming up with what is known as the google of russia. ofwill take more than 1/3 the stake in the venture, valued at $7 million. it is a second retreat from a major market for uber. last year they left china in exchange for a 17.5% stake from a rival. this, after losing money from its competitor. have caroline hyde from london, david kirkpatrick, ceo of techonomy. had many tech heavyweights at their annual conference. and eric newcomer. how did this deal go down?

in the worksbeen for a while back when travis kalanick and emile michael were still working in operational roles of the company. luber has been negotiating this for a while. i think it was clear they were not going to have the lead position. two to it is basically a one ratio. about $500 million for uber. huber was just behind here. they got a big stake of this negotiated new company. it was a good deal in a market they were not going to win. ofy were losing in excess $115 million. the google ofis russia, they have mail, music, video. why did uber decide to wave the white flag? the taxi was too

successful with a two to one ratio for bookings. the taxi was toothey were wille cash to diversify. they may be dependent on search. look at the bloomberg, you can see 3% of revenue is coming from taxis. diversifyrying to themselves away from the 88% they get from search. all of this shows that once again, competitive terriers to entry are not that high for these businesses. 2011, only got in in separate from the overall parent business in 2015, called yandex taxi. they can throw money at the situation. pay due toing to more tax rolls. they are entering russia, just like they did china.

david: if you think about the math, they are getting 27% of a $3 million -- $3 billion business, which is more than they invested. that is not such a terrible outcome. caroline has is entirely right to do what we're really seeing more and more is that ride hailing, despite huber's strength is not a winner take all business. therefore, they will have to strategically choose their market. this is a country where a non-russian country would have a hard time ever dominating. i do not think it would have been allowed. emily: eric come up uber is at a great -- eric, uber is that a great period of instability, with their loss of travis kalanick. there is a piece out today that suggests a kinder, gentler uber

may be in the future. what do you think the future holds? will we see more retreats like this? learning to be kinder and gentler will be a learned skill, take a little time. in terms of moving away from markets, there are investors that would like to see luber -- uber be the aggressor in the deal, so there is only a single player market. it is exactly right that we are learning the two players, at least as long as there is an abundance of capital, have been able to operate in many of these markets. it seems the only way to get a single player market is these negotiated truce is -- truces where uber takes one. i would not be surprised to see more deals in india and southeast asia, going forward. emily: what about europe, caroline? it is not all rosy there.

new world a new administrations. caroline: precisely. there has been an aggressive push in germany and france by uber. there was a lot of backlash. when i was living in berlin, you cannot access uber via the app. you could only use licensed taxis. this is rearing its head in russia. they are looking at whether they should only be using licensed taxis rather than normal drivers. paris, we had donald trump and macron there. are they focused on u.s. tech advances and allowing uber to survive in their countries? that is something the lights of yandex taxi will come across. together worth $3.7 billion. we saw them yandex share price spike today.

havenalysts themselves seen a valuation of their taxi units. emily: meanwhile, david, the u.s. times out with names in the ceofor the potential uber job, including the ceo of youtube and a few seasons executives that are available. former yahoo! ceo marissa mayer, america,o of virgin what do you make of these names? david: i saw marissa in london the day after travis kalanick stepped down. i said, you should take that job. you would be perfect. she did not show any enthusiasm for it. investor inbeen an over. she knows the company super well. i believe she is friends with kalanick and has followed its progress closely. it would not surprise me if they went after her. i think she is a terrific manager.

her leadership of the yahoo! was a tough, tough job. that is one i would vote for. marissa mayer not one to shy away from a challenge. she has spoken positively about travis kalanick in the past. eric -- ericw newcomer is chasing down. what do you know? eric: i am skeptical that marissa will be the next ceo of uber. think she ist seriously in the mix. she came out and defended travis very publicly and a lot of people at uber were wondering what was going on, it seemed tone deaf to the situation. a lot of the names we are hearing are people without real gigs. i think it will take some time for uber to land on that. they're keeping a pretty secret and they are looking at top

executives in airlines, that type of global operation. i think that is where we are going to look. it is possible there is a tech exec. there are a lot of jobs available, ceo, cfo, chairperson -- we will get a mix of characters. we will have to wait. it is very much a live process. emily: a name you floated was former disney ceo tom stagg. we will continue to watch your reporting, eric newcomer. caroline hyde in london, and ceo david kirkpatrick, you are sticking with me. snape reversed recent losses, rising 3% and thursday's lesson. there was a $22 price target. and five cellolds ratings for snap shares. coming up, facebook has big plans to make its oculus headset

a mass-market phenomenon. but can it happen? this is bloomberg. ♪

emily: going now to facebook, reinvesting into its oculus headset to make it a standout device in the vr industry. later in the year, they will unveil a cheaper and wireless version of the heads that. but will it catch on? gurman.o bring in mark mark, you broke this story. what is facebook working on? mark: they are mckee -- they are making a big push in vr with the oculus rift. but they want to go after the sweet spot.

a $1000 pc.ity is but this would be a device like an iphone, ipod, apple watch. you can take it out of the box, hook it up to wi-fi, and use it. it is completely wireless. at $200, they are expecting to sell a lot of these. emily: facebook has been troubled. the cofounder has left, another has moved into a different position. they brought in someone from xiaomi to run it. different company than it was one or two years ago. he really led the android efforts at google. he understands the wants of consumers and how important it is to not only have a resource division and do projects longer-term, but understand how critical it is to turn out consumer products that people will run to the stores to buy every holiday season, just like

people want to buy the latest samsung phone or ipad. they hired people from apple, high-level executives, michael hillman they hired earlier this year to run hardware components of the company. clearly there is a seachange going on it oculus. zuckerberg's mark farbet on vr was bold but from a sure thing. is this a market oculus can dominate? david: dominate is to be proven. mark zuckerberg is known for long-term bets and long-term thinking. i am sure in his mind, there is no fundamental disappointment so far. he believes social will be virtual. in other words, we will be facebook-esque. demonstrating that in their conferences.

he knows it is inevitable. somebody will do it, therefore he thinks facebook have to do it. there are unlimited resources within facebook for making this work. was a huge step forward. to have someone of that quality shows facebook is becoming and other diversified tech conglomerate. emily: mark, how does this oculus headset compared to others on the market, which have been out there longer? options,re are a few there is the samsung. you have to plug the galaxy smartphone into it, and it is cheap. the rift is $400 but does not show the price of a gaming pc it needs to connect to in order to stream the games. there are cheaper players for under 100 dollars. there is one from google, you can put a google axle -- pixel

in there. being is going after all-inclusive at a low cost. emily: hugo barra came from xiaomi. how does xiaomi fit in? couplehey joined a months ago, and oculus in discussions for some time with xiaomi in order to produce this. not a contract manufacturing company, they have a network of manufacturers for outsourcing and development of their own smartphones. xiaomik is in talks with on producing this device. facebook does not have strong branding in china and other parts of asia. what they are going to do is kill two birds with one stone. not only is a partnership with show going to result in the manufacturing, but the version of the device in china will have that xiaomi brand and software. whereas outside china, it will

be singularly and oculus part -- product. david: it is all very impressive. facebook has determined they will get there eventually. this is going to be as powerful as the high-end oculus device. what are people going to use it for? there was not a killer app outside of gaming, is there? mark: i agree, but we have a stepping stone, something tangible. towardhas been working an all-inclusive device with the power of the vr for extraordinary gaming. it does not need to connect to a high-powered, expensive pc. six months down the road is as close as we will get. have is people being able to use it vr. the fact we will see v are in the environment will spur development from other players

and great a new gold rush for app developers, just like there is a gold rush of apps on the iphone and google pixel. i sort of agree that there is no killer app, but i can imagine, people may want to pull this out on an airplane rather than their phone or tablets. emily: interesting. mark gurman, our consumer tech reporter. and thank you, david kirkpatrick of techonomy, you are staying with me. the latest read on apple's iphone earnings. this is bloomberg. ♪

emily: apple's next edition of iphone is one of the most anticipated releases of the year for both consumers and suppliers, counting on the upcoming device to fuel the growth of smartphone shipments. customersir biggest

accounting for 17% of their revenue. peter ahlstrom, david peter, what is what we are seeing from taiwan a semiconductor about how things are going at apple? peter: it is interesting, there were a couple companies in asia closely watched as proxies for apple. manage apple products. they listed earnings today a little light for the second quarter, which is not that bad of a deal. a slowistorically quarter. but what people are looking for is the forecast for the rest of the year that gives insight into what kind of demand they are expecting for the next iphone, the highly anticipated next iphone. that forecast came in light in terms of estimates. it was a little surprise, a little negative for tsmc.

taiwan has a competitive business, margins are slim to slimmer. what is your take? the thing about taiwan semiconductor, they have chased down technology so their always at the cutting edge. the seven nanometer chips and a $10 billion capital investment this year amazes me. it is more than a quarter's revenue. i do not know of other companies that invest more than one quarter revenue and capital, it is extremely rare. it shows their own confidence in their business, despite what might happen with the iphone has got to be strong. they have shown that confidence over decades. fewer companies can spend that kind of money and still be in this business. they are a keeper. emily: peter, there is another

interesting development. the founder of taiwan semiconductor, his fortune is ever-expanding. tsmc's stock price has been on a roll. he started the company in 1987 with help from the taiwanese government, as david mentioned. massive investments in chip plants has been a good is this, especially as smartphone demand has taken off. 17%,year, with shares of he became a billionaire based on his estate. he has done well, and they are hoping it will continue from here. emily: when talking to other wepliers in china, what have been able to glean about the outlook for the next iphone? peter: when you look at the key players, tsmc is one of them. another has shares on a tear.

they're sounding optimistic about what is going to happen in the future. the overall challenge is, the smart phone market has gone from fast growth to slowing growth and shrinking in some quarters. there are concerns about whether there will be ongoing strong demand. the forecast of this year is for growth of 3%. we will see if they can deliver. honghai is another good proxy of demand for apple. emily: iphone 8 come are you excited? david: i think so. they have to deliver something exciting or they will feel it bad. they will impress us, i am confident they will. emily: david kirkpatrick, ceo of techonomy, you are sticking with me. peter elstrom, thank you for sticking by. leadership in washington attempt to repeal and replace obamacare. with someone trying to disrupt the health

care industry. if you like bloomberg news, check us out on the radio. you can check us out on sirius xm. this is bloomberg. ♪

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which is why comcast business delivers consistent network performance and speed across all your locations. fast connections everywhere. that's how you outmaneuver. so new touch screens... and biometrics. in 574 branches. all done by... yesterday. ♪ ♪ banks aren't just undergoing a face lift. they're undergoing a transformation. a data fueled, security driven shift in applications and customer experience. which is why comcast business delivers consistent network performance and speed across all your locations. hello, mr. deets. every branch running like headquarters. that's how you outmaneuver. washington and you are watching "bloomberg technology." rex tillerson has wrapped up his tour of the persian gulf, where

he has been trying to mitigate the crisis between qatar and focusing onighbors, written documents to alleviate issues. theresa may's brexit draft law she unveiled today suffered furious backlash from scotland and wales. it will transfer british laws onto the statute book. but leaders of the scottish and welsh government says it failed to give them sufficient power theirocks the vote in national legislators. turkey has agreed to pay $2.5 billion to acquire russia's most advanced missile -- an about-face from a nato alliance that has angered turkey from the west. a will allow turkey to deploy missile system anywhere in the country. peaces jailed nobel liu xiaobo died from

cancer. global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. parenti.a this is bloomberg. it is just after 5:30 p.m. here in washington. already 7:30 a.m. friday here in sydney. we are joined by paul allen. another record for the dow, though not much movement for stocks here in the state. right, it is translating to a mixed outlook for the asia-pacific. nikkei futures and chicago futures higher as we wait on industrial production out of japan. retailing inn fast japan, recording third-quarter earnings after the close. third quarter profit missing estimates at $22.9 billion. it would have been worse, if not qlo's expansion,

mitigating sluggish growth in japan. he in australia, asx futures pointing down by nine points. keep an eye on the miners today. chinese iron ore imports hit a acord, expected to surpass one billion tons. watch for the national were conference in china. it happens once every five years. we might get a few clues on who the next pboc governor may be. more on "bloomberg technology," next. ♪ is "bloomberg technology," i am emily chang. leader mitchty

mcconnell has released a revised republican health care bill. he is seeking conservative support by letting insurers sell low premium policies with minimal coverage. the bill is aimed at repealing much of president obama's health care law. joining us from new york on how it may impact insurance companies as a whole, mario schlosser. we will talk about that any moment. first, there is a huge debate and a lot about the future of health care in this country. what does that mean for you? mario: i come back to first principles when i think about this. happen, nobodyo would be suicidal enough and crazy enough to throw millions of people individually insured back into the market without insurance. i should not call the play-by-play what will happen in the senate and house the next few months, but i do think we will get to a market that is stable. worked for the

future and the future as i think it needs to be in u.s. health care. consumers have become more powerful to control what i'll scare they want and demand that are systems -- better outcomes from the system. uniquely engage people on onir health care with an eye lowering costs and improving the quality of health care they receive. emily: you are partnering with one of the biggest health care companies in the country, launching it for small businesses. why would one of your rivals want to partner with you? into the market with a unique angle, if you look at the u.s. health care system, we vastly overpaid. a much and switzerland less. ist is $1 trillion the u.s. overspending. there are two good things wrong with u.s. health care. the data does not flow through

the system in a good way. and nobody gets paid for outcomes. ago at thefive years start of the company, that -- we are in a unique position to do that. your doctor will actually know which other drugs you are on a what happens. that is what we provide. we can also told the system to where you get paid less per service for stuff you do in a practice. is ayou need technology-driven insurance company that engages the consumer before they become sick. that is what we have built. other partners in the system, like the cleveland clinic, which we have a risk sharing plan with. they think we have a unique technology and engagement model that can help them get into a

future where individuals will have more decision-making power in health care. emily: talk about the tech-driven part of this. what makes oscar a tech-driven company rather than just another insurance company? mario: there are three categories of technology we build. we engage around the consumer, individual. long before you get sick. we are the first insurance company that makes tell a -- telemedicine totally free. all respiratory infections and rashes get treated over the phone, totally for free. with the click of a button, doctors treat you 24/7 with no cost. that compares to 2% or 3%. --terms of user engagement is in havingtegory

a full stack of technology. where our claims are coming in and reassign when someone goes to the emergency room and connect right away. the third aspect, different partnerships with networks. we mentioned the cleveland clinic, we are launching a risk-based insurance plan with them. data fieldting 1400 or providers we service on a daily basis. we know what availability doctors have and where we could get you in. if you talk to one of our telemedicine doctors, they may notice something is wrong with you and they can connect you to a doctor in person. that requires a data field between the systems we have and connectivity back to the network that delivers.

the design is comprehensive and quite unique. emily: your co-founder is josh kushner, jared kushner's brother. what kind of aroldis he played? mario: josh, my co-founder, we sat together five years ago and were complaining about health care experiences to read -- experiences. what will this cost me, where will this take me? we had cheat sheets. a year later, for my daughter's birth, it showed me the c-section rates that i might encounter the night of the birth using our oscar data so i know what to watch out for. josh was complaining about andng into the tr -- er having a bad experience getting health care in a convenient way. we have been in the since the beginning. what we spend our day on, we think about what is the next

thing to launch, how do we make our messaging more powerful, have our concierge teams? any member of oscar has four team members that can watch real-time the health care system. what is the next feature we launch? that is what josh and i talk about every single day. emily: there was a lot of noise around this administration, around jared kushner. does any of that affect you? mario: no. we are heads down, we are building a product. if you look at the membership base we have, about 1/3 came in because friend and family members of say, it is awesome. the first viral he growing insurance company that ever existed. that is what we are focusing on. we have a unique frontline

reporting from changing the health care system. if we do not do something about the underlying cost of u.s. health care, it will bankrupt the country. there is no way out except for making the system, pushing it toward risk sharing, individualization, consumerization. we do go out to republican and democratic senators to share the innovations we have for making the transformation happen. i do think the u.s. health care system needs to be more individualized. i am hoping any conversation happening right now, which i hope will be eventually bipartisan, will push it toward the direction. otherwise we are moving too high cost for anybody. emily: we will continue to follow you and how this all unfolds in washington. mario schlosser, oscar health, thank you so much. now to a deal we have been following. draftkings and fanduel have

ended their plan to merge. draftkings ceo jason robbins said the threat of a long and expensive legal battle was a big factor in the decision. is oned that draftkings firmer financial ground than when the merger was announced in november. , for thee sun valley founder on google x. turning the flying cars into a reality. this is bloomberg. ♪

emily: twitter executive chairman claims the social media platform should not ban president trump, saying, it is good to have him talk on twitter. he spoke to bloomberg in sun valley, idaho.

the average monthly users increased 6% in the first a year ago,pared to due to people following more political news. tweetsve said trump's amount to cyber bullying. we sat down with sebastian thrun, the udacity and google x founder, father of google's self driving technology. they talked about everything from higher education to his flying car aspirations of the at kitty hawk. >> you had a good year in terms of growth. we launched education programs in paris. things like deep learning, self driving cars. it is the only place that teaches these skills. we have tens of thousands of students that come to the sites. >> where is the demand coming from?

our company is coming to you, saying we seem more talent -- we need more talent? .> we go to companies they say, we would love to get more self driving cars. portfolios would impress you. it is really hard. >> i have talked to people that run community programs. google might say we finance a training program and higher those -- are you saying more of that with companies that sponsor courses? there were over 20 people place to google. there is such a desperation for talent, people with machine learning or data science or web design. >> how do you fit into the landscape?

i know traditional academic institutions are offering them. do you see yourself as a competitor or complement to them? where do you fit in with the pantheon of companies? >> we admire the other companies. it is good to see us all doing something interesting. it makes a huge difference in the material. [indiscernible] in a lifelong learning space, we have the strongest credential at this point. >> how do you operate and monitor these programs with all the countries you are in -- it is hard, i imagine? >> i am going to the middle east right now. we have offices in saudi arabia and jordan, egypt, and various other countries. i think there is an imbalance.

we have a phenomenally great universities in the u.s. you want to go to the people in the middle eastern regions and give them opportunities to become a developer or data scientist, they can make $100,000 a year. the reception and those countries is a normal sleep positive because there is almost no alternative. positive because there is almost no alternative. how do you overcome a the hurdles to get someone to pay for this course, when i could try to get into another institution? >> we have to make it a credible entity. --work really hard to make first student job placement. hard on employer

education. companies like amazon, twitter, facebook, google and many others. we give the students equal treatment. flying cars, about something you are keenly interested in, as the ceo of kitty hawk. where are we -- it seems like something strictly in the realm of the fantastic. five yearspeople, ago i said i was working on flying cars. you get a smirk. we talked to people, they smiled. there is no belief it could happen. but when you think about it, transports underground is very bad, it is very congested, it is hard to get around. the air is free, there is a must nothing in the air.

at the end of the day, 50 years or 10 years, i see more transportation to and from work, we go through the air than through the ground. ones. not the only it is a lecture, very quiet, flies horizontally and vertically. we have gotten to the point with a computerized system that everyone can learn to fly in five minutes. we can make flying accessible to a broad set of people. the system is called kitty hawk flyer. we go on the market later this year. we deliver our first units soon. udacity and google x founder sebastian thrun with bloomberg. betting big on latin america.

what is behind the latest expansion into the region. this is bloomberg. ♪

emily: emmy nominations have been doled out and a major winner has emerged. streaming of services, hbo which offers streaming through hbo now leads all networks with a total of 110 nominations. close behind, netflix with a whopping 91 nominations. hulu receiving 18 nods for "the handmaiden's tale. and my favorite, "silicon valley," with 10 nominations. expansion in latin america. peoplert of will boost working as facilities across the region tenfold by the beginning of 2018. the move comes after the start

up's recent forays in china and india. lydia --s to report, olivia zaleski. olivia: the country is growing aggressively globally, opening offices in korea, japan. those are expensive to open. not only is it a capital-intensive business because you need to hire a lot of people to recruit freelancers and small businesses, you have to retrofit the buildings we were signing leases for, to make them part of the wework brand. it is expensive upfront, so the company needs a lot of cash. emily: we reported some of the wework's troubles in the past. why is there renewed interest in the company? olivia: they are seeing an uptick in enterprise customers. have focused they

on getting freelancers and small businesses to buy space or rent space month-to-month. if you're renting desk space to that traditionally has a large satellite office, you're renting hundreds of desks to them and they're not exactly going to not pay the bill. they'll be consistent, stable. investors have caught on to that growth. it is the largest growing segment for wework. they are interested in being part of the company. emily: pretty nice-looking offices. david, what is your take on the future of wework? how optimistic are you? david: i am optimistic in one respect and dubious and another. i agree with olivia, they put a ton of money into their wework retrofits of these buildings because they do a beautiful job. in manhattan, and nasdaq has a wework space.

billionnder about a $20 valuation. it is real estate, it is hard to imagine it could be that much growth technology. emily: we talked about expanding into tokyo -- why is softbank interested? olivia: probably because softbank has a lot of money. they raised the $93 billion fund. it has done that with saudi arabia. that is a lot of money to put to work. i think that is why they have taken a large stake with wework which is why it is expanding in tokyo. they expect up to 20 new office spaces in tokyo alone. emily: olivia zaleski, thank you so much. david kirkpatrick of techonomy, great to have you. that does it for this edition of "bloomberg technology." we are live streaming on twitter.

that is all for now. this is bloomberg. ♪

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♪ >> from our studios in new york rose."his is "charlie william: good evening. charlie is away. we begin tonight with charles a best-selling author, and op-ed columnist from the new york times. his columns have grown increasingly critical of the trump administration. many see him as one of the leaders of what can loosely be called the resistance. welcome, charles. great to have you