speaking in new jersey today he said the administration has been trying to cut down payroll and putin may have done them a favor. he said there is no reason for those diplomats to go back. putin kicked them out in retaliation for u.s. sanctions. trump said his fire and fury warning for north korea is backed by everybody. that is after pyongyang dismissed it as nonsense. we heard trump refusing to roll out a preemptive strike. better getth korea their act together. the president continues to express his disappointment at congress -- as congress fails to repeal obamacare. that is after criticizing mitch mcconnell on twitter. trump said after hearing about replacing a house law for seven years, he just wants mcconnell to get it done. john mccain says america is addressed in afghanistan. made thata senator declaration today as he unveiled the war strategy that includes more u.s. combat forces and

increases counterterrorism efforts. he said u.s. soldiers are putting themselves on the line and they deserve better. global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. i am alisa parenti. this is bloomberg. ♪ caroline: i am caroline hyde, in for emily chang. this is "bloomberg technology." the in-house drama continues at the start up. former uber ceo travis kalanick driven further away. and why they decide it is time to step down. plus, revenue misses in the face of the competition. we breakdown today's

disappointing second-quarter report. --ing jill little geopolitical tensions rattling the market. tensions between the u.s. and north korea continue to escalate. we will bring you the latest at this hour. drama in uber continues to unfold. benchmark capital, which has a 13% stake in uber, filed a lawsuit to remove former ceo, travis kalanick, from the board. they say he engaged in fraud by misleading investors about his -- allies willing to keep him a director. a representative for kalanick said, the lawsuit is without merit and riddled with lies and false allegations. actinghowing benchmark in its own best interest, contrary to uber, its employees, and shareholders.

is stepping down from his current managerial role in the company. let's go to brad stone in san francisco who wrote about uber in his book "the upstart." the continuation of this come this bitter rivalry, seems to be a point between benchmark capital and travis kalanick. tell us about this unfolding. doesn't mean travis will be removed from the board, do you think? brad: we will have to see how it plays out. a bitteright, it is rivalry between one-time allies, benchmark, capital investors in uber. and travis kalanick, one of the founders and second ceo to raise the company to great heights, a $70 billion valuation. you can look at these past months and a couple different ways. you can see it as the chicken of bad management that has come to roost.

but also the relationship between benchmark and its founder, bill gurley. fundamentally disagreed on how to run the company, when it should go public, and who should be the next ceo. they each have equal voting power. theylawsuit is evidence cannot figure out a path forward. caroline: it is amazing thinking back to your book, where we saw bill gurley driving after travis, trying to get the piece of the pie. benchmark capital has 13%. could we see the amount travis still holds having to be distributed back to the board? that is a $7 billion valuation on that stake. brad: i do not think he would lose his stake. when he was trying to hang on to was his board position and influence at the company. this lawsuit is about three new board seats the board authorized

to be created in june 2016, which travis controlled. ceo,he departed as the which feels like a year ago, but was only a couple weeks ago, he apparently pledged he would give up those seats. he has never sign that documentation giving up his power to control or appointed those two board members. that is why nominally, benchmark is suing. travis is trying to hang on to control. maybe he has designed. jobsinguoted as steve it. they want to find someone as aggressive, ambitious, hard driving as he was as uber's ceo, and benchmark has a new idea. they want a more professional, perhaps less dramatic ceo. they cannot agree, so they have a lawsuit. travise: the ceo

kalanick hired, ryan grays. he has said, i am out of managerial roles, but i'm staying on the board. is this timing related to the lawsuit -- what pushed him over the edge to stand down? brad: i do not think it is related at all. he was the first ceo and one of right hand. he was a spiritual leader at uber. those 500 cities, at the time, a decentralized structure. over the past couple months he has been ceding control of the company, his domain has shrunk. he was feeling burnt out, so he on his board responsibilities and finding the next ceo. this is someone who knew the culture and can really be a

guide to the ceo, whoever that may be. do have an operational role would have been an advantage for the ceo -- the next ceo of uber. billionugh for a $70 startup. caroline: another one that is tarnished in his reputation, took to twitter. he was talking about ryan graves and how he has consistently been respected by those in the boards and is graded building consensus. how does it go with the new ceo search? the new ceo search as others have reported, it drags on. they are down to three candidates. ceo.s said to be former ge meg whitman took her self out of contention a couple weeks ago. she was rumored to be on the short list.

they have talked about wanting to appoint someone by labor day. i think they are at an impasse. there is a different vision between travis and his allies, and benchmark and its allies, about what ceo uber needs. tied into that, when should this company go public, and take his foot off the gas? this is a divided board with a lot of bad history, and now a lawsuit. frankly, they are stuck on the way forward. it might still be weeks or months before we have a new uber ceo. your second question about morale, it cannot be good at uber, with one thing after another. people have to be wishing this drama was behind them. caroline: i am sure they do. brad stone, i know you will be there every step of the way. meanwhile, microsoft and a lab

had antitrust complaints in europe and an investigation in russia. agreement, the software giant will make adjustments this fall. was complained microsoft favoring its own software. snap misses the mark on daily active users by 2 million. the company's second-quarter earnings, next. this is bloomberg. ♪

caroline: snap shares are plummeting in late trading after reporting second-quarter earnings. their growth fell short of estimates, fueling fears that aggressive competition from facebook is blunting snap's potential, just months after their ipo.

missing $180 million that $185 million estimate. we will give you headlines throughout the hour. cakmak andd by james cory johnson. both have been digging over the numbers. shares are down 15% in after-hours trading. james comer, talk about the fact that they missed. is it daily active users they are worried about -- lack of monetization? james: i agree that the shares are plummeting. i disagree the headlines that this is a facebook affect. wehink 100% of the problems see it snapchat are self-inflicted. they're not doubling down on core areas of expertise that they could capitalize on, like the content side of the picture. they are not to getting users and potential new users on new product iterations. when you look at the metrics, i

felt the user number was fine. not too far off what the street was looking for. the issue was on the monetization side because you see a much flatter trajectory than what would be expected from a company at this stage. that is why the red flags are starting to go up. caroline: looking at some of the headlines, snapped saying since the mac launch, stories are up 30%. the ceo and cofounder saying they are not planning to sell shares this year. let's look at the story unfolding. average revenue per user, this is an all-important metric, and it is not driven up quickly. do we have to wait a little until they get the big cap players in -- app players in? cory: there are a lot of problems here. if you look at the year on year basis, it is an improvement, nearly doubled, from $.50 to $1.05.

the hope was they would have a big and growing platform and grow a lot of users, and turn on the ads, but the places they had never gone before, and dump them in. that is not happening, we can see that from the numbers. major advertisers have not come on their side, as they hoped they would. there are technological issues. james and i were sitting here listening to the call, his jaw dropped. the problems they have with android, most phones in the world are android, they will not be fixed until next year. these are self-inflicted wounds, as james so smartly said. this company is having issues doing the basic tackling to make their company available for the revenues of might want to come to it. caroline: when you are gauging potentially the stories that

unfold from facebook and instagram, 20 50 million users milliongram -- 150 users on instagram. where do see the making inroads on the market share, especially for the likes of mobile ad market? get 6% of the global pie? i am shocked you do not think this is a competition issue. cory: it is english -- caroline: it is a british thing. james: you took the words out of my mouth. to conceptualize -- conceptualize it, it is less than 6% of the global budget. when you think about the fact command 85%,anies 90% of the global revenue, companies want to explore a

third alternative, which is what snapchat has become. there is too much emphasis placed on the user growth. if they were able to get the content side of the equation, which they are on with a multibillion dollars of cash on the ipo, but at the same time improve on the product at a faster pace of iteration, you can see that number creep up at a much faster rate. the fact that that is not happening -- [indiscernible] james has faith. caroline: james, you are one of the first with a buy recommendation on snap -- to stick by that buy? james: i cannot tell you now. the way we position the quarter, the preview into the quarter,

was, this is a make or break story. the numbers are not suggesting the readmission of the growth on the monetization. but we need to understand -- the numbers do not speak to favorably.- too fromine: james cakmak monness, crespi hardt & co, thank you. blue apron giving investors a sour taste after its first report. shares of the meal kit livery service falling after a lost customers in the second quarter. cory, you have been pouring over this one, as well. revenue did beat in the circumstance. it is all about having to rein back its spending and customers. when i think of marketing, whether blue apron or any other company, usefully, we can see

the effect of marketing. they do not give us all the markets we would like to see, most importantly, the return rate. it tells us how many subscribers they have and what the marketing cost was to get them. if you think of marketing as a way to drive the business, like gas, ifa pedal on the you take the pedal off the gas, you see how well the car rolls without the gas. what this shows me is that customers a blue apron do not like the service, and not to keep buying it without hit with advertisements. whether that means people stand time, a limited period of and every customer, we do not know that because we do not know the average length -- average time of a customer, how long they stay with them. food is a great business, restaurants are a wonderful thing when they are good.

the question for blue apron, maybe the users do not want to stay with the service. caroline: we know how hard margins can be in the restaurant business, as well. particularly when you have amazon trying d lunch on your business model, as well. trying to eat lunch on your business model, as well. it could get in and hurt even when blue apron is managing all on its own. cory: i do not see amazon as a competitor, they do not have an offering to speak of. or aer it is sunbasket green alternative, it is an attractive idea because the revenue is so high. when you get a user spending thousands of dollars a year on the service, if the business is successful, you can imagine why so many would try. but it is a tricky business, the food business.

the food delivery business, also tricky. fun,g is fun, cooking is cooking for someone you love is even more fun. taking the decision process away from that could be a good thing. it is why we have the food network on tv, and recipes in every newspaper and magazine out there, it is why we have cookbooks. to make this simpler using technology is a very attractive business. but blue apron does not have it, and taking their foot off of marketing is a problem. caroline: hello fresh is the european competitor. cory, great to have you. thank you for breaking snap and blue apron down for us. the biggest losses in u.s. stocks since may. president trump ramped up his warnings to north korea. this is bloomberg. ♪

caroline: now, to the moves we saw in the u.s. stocks today. amid tensions between the u.s. and north korea, benchmarks having the worst day since may. joining us from new york is abigail doolittle. not a good day to be these markets. ugly,l: it certainly was especially the nasdaq, finishing right at the load -- lowest. heavyat 2%, that tech nasdaq. we asked whether or not this pullback we saw today was anything like the pullback we saw in june. june 9 there was a big selloff in tech pulled back 4% from their. -- today,t contacts more caution. a number of those contacts were focused on the macro picture,

not whether it had to do with tech. one made the interesting point that we have three down days in a row. what changed the trading action fields, a little more emotional, which means we could see more downside. some think we could see a bit of a correction, a long overdue correction. one reason we break down the nasdaq, there are other momentum sectors. semiconductorhia index sold far more than the nasdaq and nasdaq 100. sometimes investors see that as a towel on bearish action, maybe this dip turns into something more. as for what really dragged down the nasdaq today, some of those big names -- apple, facebook, amazon, microsoft. fundamentally, to

bring them down. but some of these stocks have a on up levels of data and or down days they tend to swing and a more significant way. talking about swinging, i want to take a quick look at what is happening to chipmakers. if you go into the terminal, g 7430, nvidia weighing on the chip stocks. the numbers looked all right for the chip designer. but is the devil in the details? abigail: in that chart, in white is nvdia. expectations going into the quarter were very, very high. as you mentioned, they beat in a significant way, put up a dollar. $2.23 billion. billion dollars.

it is a clean quarter. they said it was a little disappointing. but relative to the start, it had been less than nvidia. so that makes sense. the point of a like to make, and oppenheimer technical analyst made the point that the one concern to him is, the stock did not put in a new high, relative to the nasdaq just recently, and that that could be a tell. with nvidia's weakness, maybe there could be more ahead. caroline: we will be talking google. ♪ mark: i am mark crumpton in new

york. you're watching "bloomberg technology." president trump says if the north korea attacks guam or anyone the u.s. cares about, they should be nervous.

he was responding to recent threats from north korean leader kim jong-un. president trump: he has disrespected our country greatly. he has said things that are horrific. with me, he is not getting away with it. he got away with it for a long time between him and his family. it is a whole new ballgame. mark: the president made the comments following a security briefing with top advisers. there are plans to exit the paris climate accord. they released a report that demonstrated global warming is real and getting worse. prepared by nearly 500 fighters from around the world, the report shows last year's average global temperatures were the highest on record. in venezuela, a fifth opposition mayor was removed from his post and ordered under arrest in a continuing crackdown on president nicolas maduro. meanwhile, the president of the

mayor's association of venezuela told the press conference in caracas, none of us is afraid of persecution. pakistan's prime minister criticized that country's supreme court hedges for disqualifying him a from offices. he reluctantly stepped down last month, said he was voted into office, and his removal was an insult to millions. he embarked on an on the road rally from islamabad to his hometown to get support. i am mark crumpton, this is bloomberg. it is just after 5:30 p.m. in new york. paul allen has a look at the markets. good morning. paul: we are placed for a slide. nikkei futures looking sharply lower. asx futures by off -- off by more than 1%. we are keeping and i on national australian banks, a third-quarter trading update today. we expect to see a $1.6 billion

profit. we will be watching the australian dollar, much to the joy of the reserve bank of australia, has been easing off. philip lowe will be testifying to lawmakers later this morning for a grueling marathon, three-hour session. watch noble group out of singapore, with a $1.75 billion loss in the second quarter. that will be an interesting day for noble group. we will be watching sing tao earnings at the open. i am paul allen in sydney. more from "bloomberg technology ," next. ♪ caroline: this is "bloomberg technology," i am caroline hyde, in for emily chang. employees will have a

town hall meeting on thursday. the discussion is about the recent diversity memo from the fired employee, james damore. he offered an internal 10 page memo that said there are biological causes between gender inequality in the tech industry. emily chang spoke with james damore in an exclusive. she asked if he had regrets about releasing the controversial memo. james: it is hard to regret it because i do believe i am trying to make google in the world in general a better place, by not confining us to our ideological one chambers, where only kind of a story can be heard, and it is totally intolerant to other viewpoints, and even scientific evidence. emily: what scientific evidence are you talking about? in the follow-up to your piece, there is been plenty of

discussion -- has been plenty of discussion about this. there is noon, research to support this idea that there are biological causes for the lack of women in tech or the lack of women in leadership positions. i spoke to megan smith who worked at google, a former cbo for the united states. she said this is a myth. james: among psychologists there is a consensus that prenatal testosterone does affect a lot of personality traits. \ in particular -- interest inr, one's people versus things. but thereaying all, is a distribution of these personality traits. that distribution differs between men and women. there are very many capable women at google. i am not trying to say any of

them are any worse than average male engineers at google. why werying to address do not have equal representation from the population. wojcicki wrote an impassioned response to this and said your memo, had it been about black people or latinos, or the lgbt community, you would not have anyone defending you. how do you respond to that? james: that is just a false analogy. she is trying to lump me in with racists and other bigots, which i am not. i am not a sexist and i am not a racist. i think that is just trying to smear my image, rather than actually looking at the evidence. very little of the responses have been actually looking at the science. they have just been calling me oh, the nitpicks of,

formatting was a little wrong. or the original documents leaked did not have citations, when my original document did. emily: you are pushing for ideological inclusion. don't you think that extends to women and minorities and all kind of people? google is making projects -- products for the world. don't you need all kinds of people making those products? james: yes, i support diversity and inclusion. i think that also, our lack of ideological diversity has hurt our projects, or our products. us think that, for example, just the stereotype that all conservatives are stupid, for example, that is widely held within very left-leaning circles. that has hurt us. it makes us alienate large

portion of the population. caroline: that was former google engineer james damore speaking exclusively to emily chang. sundar picture has issued a statement. he says, we build great products to make a great difference in their lives. to suggest a group of our colleagues are less biologically suited to the work is offensive and not ok. joining me now for a deeper look is ellen huet, who has been reporting on this story and diversity at large. talk to us about the town hall meeting that sundar pichai will be holding. is this a rare occurrence? what does he want to achieve by it? ellen: the town hall meeting is a tgif, weekly google meeting that is usually on fridays. watchedill be a hotly tgif. i talked to sources within

google that say they will dial-in. they are interested to hear what sundar have to say about this memo. he cut his vacation short in order to address the company about this. ahead of time, you can see googlers internally voting for questions they want to address at the meeting. it seems like they are very interested in, how can we make sure we make google place it feels comfortable for everyone, and make sure it is a place where employees feel like they can express their views without getting fired? which is a concern mr. damore had originally brought up in his memo. caroline: do you think there might be some ways of issuing and easing concerns to those that might be of a conservative persuasion working in google? it has not been brought up just by james damore, but at the shareholder meeting in june or earlier this year. i shareholder bought up the point that they felt perhaps conservatives are not welcomed

by google. ellen: if you talk to people who are supporters of james damore, he says the same things in his memo and in interviews afterward, there is the idea of a silent majority of conservatives who do not feel safe speaking up about their political points of view because it is not a commonly held belief that google. you are right, it has implications for how google is viewed. and very large silicon valley companies tend to lean left. it has had an effect and how they deal with, facebook has had to deal with allegations that they suppress conservative content. this extends a little farther than this one engineer and his time at google. caroline: has anyone spoken out in support within google for james damore? i think there is this idea -- he said yesterday in his interview with emily, to speak up for support of him within google would be "career

suicide." he said many have sent them private messages of support. it is far less likely they are posting publicly. there are a lot of internal boards at google they can look at. many have had messages that are not in support of him. but he said many have expressed to him privately that they agree with us or many of the things he support. caroline: what about the legal action he mentioned as well in his interview? what about the national labor relations board, protection versus employer retaliation? where do they stand with that? ellen: the charge is very new, it was filed on monday. he did tell emily he was planning to pursue legal action. he would not clarify whether it would be a wrongful termination lawsuit. it remains to be seen. it has only been a few days since he was fired. he has met with human resources several times a week before the

memo was published, apparently, to bring up his concerns over what he saw as illegal hiring practices within google. also one of the arguments he made before and after he was fired. caroline: a great interview by emily, great reporting by yourself. i know you will sit with this story, ellen huet. thank you for joining us. a $100 million investment from a groove -- group, ivp. it comes amid a delicate time for the digital currency exchange. they suffered a trading crash and upset customers over how they handled the bitcoin fall. bitcoin plans to spend the money on engineering and customer support staff. they want to open a new york office for the professional training that form. -- platform. we look at the latest wide-ranging investments.

we continue to monitor snap earnings, despite pressures on shares, -- take a listen. i feel it is important to note that bobby and i will not sell any of our shares this year. the company will withhold the shares this year to meet our obligations. we believe deeply in the long-term success of snap. ♪ caroline: softbank's vision fund

is continuing its spending spree, investing $2.5 million in the indian e-commerce giant, flip cards -- flipkart. e-commerce is expected to grow 30% each year for the

next five years. softbankbegun by [indiscernible] stageay they are in late starts with a drug startup in the netherlands. joining me from san francisco is executive editor. let's focus on india first. -- already they had an investment in the rival, snap. they have gone in, guns blazing. >> where will he and his investments? everywhere, seemingly both geographically and industrywide, to hone in on the india question. he did try to orchestrate some kind of a merger between these two rivals. the better to fend off of the amazon threat, which seems to be very real and also ubiquitous,

much like the softbank vision fund. that did not pan out. the next best thing is to invest the capital in both of the companies, so they at least have a fighting chance against this war chest that amazon has. it is a big market, 500 million people. e-commerce is really taking off in india in all kinds of ways. better to invest in two different rivals and have amazon take the one you have that you are invested in, and the terror to part, and not give help to the other one. caroline: you had a reputation thing against amazon, he was one of the first investors in alibaba. they made significant returns. what is so significant about the vision fund? look at what ridesharing has gone into across several countries and chipmaking,

e-commerce. they have made big investments. nvidia, $4.3 billion. indeed, we saw $5 billion. where else are they looking? in europe they are looking at potentially farmer action. what they are doing, one of them is benevolent. another company called benevolent ai. they use machine learning, artificial intelligence, to help root out new jobs -- new drugs upng the machines to speed drug discovery. this is an emerging area, it has proved of interest to the likes of gates. it is one that is definitely caught a lot of people's eye.

close to theeople vision fund the said they will bulk up their staffing. they will be adding people that can help them understand this field better. it is not my area of expertise, one, with these two they could get into a new area. he has such know ambitions, to be the biggest investor in tech in the world. he was talking about getting it lyft and uber.to can you paint a vision of the vision fund? to be in everything? tom: there is a running joke that every time we had the scuttlebutt about a potential

investment or the startup looking to raise funds or find a strategic partner, the next question becomes, have they talked to vision fund? or, where his vision fund in all of this? they have rumors of their fingerprints on every deal. multiple industries, it is a lot of money. ,y question on uber and lyft is can you get into uber on a lower valuation? it is the most valuable startup in the world, essentially. what we heard, they make a minute a lower valuation than they are already in. part of the vision fund is from saudi investors that already have a piece of uber at a higher valuation. do you want your partner to come in and undercut your existing investments at a lower valuation? that could be a little complicated, a little tricky. definitely you will see the vision fund across many more

industries and many more geographies. caroline: fascinating, making some big bets in europe. this is worldwide. tom giles,. great to get your take on all of it -- tom giles, great to get your take on all of it. the social media giant working on more eyeballs on the platform. this is bloomberg. ♪

caroline: the amount of videos on facebook has exploded over the past few years, giving the social media giant a new way to bring in ad dollars. they are expecting to gain more viewers with the launch of its new video platform. covers the country

-- covers the company for us. the watches facebook's attempt to get viewers to talk about the videos as they occur. content,e episodic short video content, the likes of which you might find on youtube. some of it is more reality tv. some of it is more exploratory. there is a whole series where people go to try to taste the best teas in the world. they are hoping what people will do in this watch section is look at videos, recommend them to their friends, comment on them as they are happening, and come back again as the next episodes show. caroline: is this aimed at millennial's? -- millennials? from what we have seen in the market, it seems like it is youtube, similar in terms of the

social aspect of it. on facebook they say they are set apart by the fact that your host social network is on facebook. it may be more of a fan-based thing. this is internet-style content, as opposed to what we have seen from netflix and the like. and thertners like vice sports teams and everyone coming to facebook to make this content, and hopefully make some money off it. they gathered a lot of influencers and creators who can come and then share revenue on the ads they sell and make money off of branding that content responsibly. caroline: i have to ask you, you cover facebook and snap. snap itself has been pushing into video aimed at millennials.

good luck america is part of their original programming. has it been working at all? focused on is episodic video that is mobile-first. they want their video to be shot in vertical format, to be short and sweet. the way that we would watch a movie trailer on tv. totally different from the way it shows up on snap. they want to reinvent how we view tv on the phone. whereas the facebook ever, they have this available on mobile, but also desktops, browsers, and tv apps. tooline: making it easier woo in content. , down 17%ng at snap after hours. did anything strike you, as the reporter on this? evan went through

some great stats. i was interested to hear that on average, people spend $.20 a day. evan and is cofounder, bobby murphy, are not planning to sell any of their shares this year. caroline: fascinating. we will see who else exits. currently 70% after hours. that does it for this edition of "bloomberg technology." we're live streaming on twitter. check us out weekdays 5:00 p.m. in new york, 2:00 p.m. in san francisco, 10:00 p.m. here in london. this is bloomberg. ♪ who knew that phones would start doing everything?

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charlie: tensions between the united states and north korea escalate the dramatically yesterday by president trump's warning that the country's nuclear threats would be met ith fire and fury. president trump: north korea best not make any more threats to the united states. they will be met with fire and fury. like the world has never seen. he has been very threatening, beyond a normal statement. and as i said, they will be m