texas as it continues his recovery from the devastation left behind by harvey. he spoke at a joint news conference with the president of finland. pledged ourump: we full support texas and louisiana battle and recover from this devastating and historic storm. there has probably never been anything like this. emma: trump also commended the texas people for their tremendous spirit. he is planning a visit tomorrow with the first lady. texas governor greg warns recovery efforts are in the beginning stages but the trump administration deserves in a plus for its handling of the crisis. he also says a major priority remains making sure people have access to food and water, and the mexican government is also offering assistance. louisiana is bracing for potential flooding as heavy rain head east from houston. new orleans residents arrived at local fire stations to pick up sandbags. the drainage system is still not

working at full capacity since the 2005 devastation of hurricane katrina. global news 24 hours a day powered by more than 2700 journalists and analysts in more than 120 countries. i am emma chandra. this is bloomberg. "best of bloomberg technology" -- "bloomberg technology" is next. ♪ emily: i have emily chang and this is "best of bloomberg technology." to runedia won the race it over. amazon's whole foods opens for business by throwing prices on the chopping block. we will discuss what the lower prices mean for the competition. there might be a wall between

president trump and silicon valley, that the administration is going all in on cybersecurity. we will break down the plan to up the ante against hackers and militants in the cyberspace a new c.e.o.picked in a statement obtained by "bloomberg technology," barry diller says if he does leave it will be to my great regret but also my blessing. shares of expedia fell about 4% on the news. criticaker and outspoken of trump beat out competition from meg whitman and jeff immelt who were both in the running for the final job. kalanickds travis whose aggressive management style was met with heavy criticism in the last year, eventually getting ousted in june. joining us for reaction, lane kasselman, former head of medications at uber. and eric newcomer who can give

us the play-by-play. what happened? >> it is crazy. we have been talking about meg whitman and jeff immelt. and then it is this dark horse candidate sort of out of nowhere. how did it get there? >> i think we are trying to figure it out. it is clear the board supported meg whitman and travis' camp resisted that and perhaps supported jeff immelt. a lot of the dynamics on the final day we don't understand. whitman came in saturday? it has been a blur of the weekend. and talked to the board. it was serious. jeff immelt pulled out after that. ultimately, we know the board voted unanimously for the new c.e.o., so some sort of agreement was reached. hard to know whether this was the result of a long negotiation

where no one got their favored candidate or there was more support than we realized for the dark horse. emily: having worked at uber and worked with travis, knowing he was in the room when this was happening, what do you make of the choice? >> it is an exciting choice for the people that work at cooper -- uber. it will be challenging for him. the board is loyal to the founders. he has a lot of work to do ahead of him. he has to convince 15,000 employees he has the best interest at heart. that will be tough. emily: you wrote a daunting list of to do's. recruiting? >> there is a lot of rate talent at uber but a lot of junior talent. chiefeed a serious financial officer as soon as possible. probably a head of operations. there are three g.m.'s divided

around the world. they had reported to jeff jones. now they report to no one. they probably need a c.o.o. or head of operations. there is no chief marketing officer. legal needs to be short up. they need general counsel. independent board chair. that decision will have to come from the board and the new c.e.o. there are a lot of in seats that he to be filled soon. emily: i have interviewed him a couple times. this is someone we will get to know over the years. i'm curious what you think it is an exciting choice. we know his record at expedia. we know he did some big deals including buying orbit. iacnow he was the c.f.o. at for many years. what do you think he brings to the table? >> i talked to a lot of former and current employees to get their reactions. it seemed like everybody the company wanted somebody who can

help deal with the issues of the past few months. it is pretty clear there was a strong desire for a female leader. but since that did not happen, i think they are happy there is an immigrant leader who can probably best represent the interests of multicultural drivers and employees all over the world and communities in different countries. i think there is a lot of excitement. emily: the problems uber started with, allegations about sexual harassment, disappointment from the community travis was on president trump's business council. the fact he has been outspoken about president trump brings a new perspective to the table. >> he has been super outspoken about trump, probably the most in silicon valley. his most recent tweet was about trump. emily: he talked about the remarks after charlottesville and said trump repeatedly failed the expectations of the office. >> uber operates in cities with

polarized liberal constituency in drivers and riders. c.e.o. onoutspoken this issue has proven important. i think that will be useful to them. emily: how do you imagine he will work with travis and what travis' involvement might be? >> it is too early to count him out. i suspect he will stay significantly involved. one of the first things i would do is build an alliance with travis, get rid of the petty bickering on the board level and start focusing on how we will work together to make sure the operations of the company are fluid and they understand what is next. hopefully, a big ipo emily: where do you think travis is on this right now? >> not unhappy. maybe happy. i think he would seem to be very worried about meg whitman from

everything we have learned. enemies's like not his candidate right now. i think the key fact is the board did not seem to solve its own problems picking this c.e.o. benchmark is still suing travis. can tell, there has not been a grand negotiation. it seemed whitman had these sorts of requests. with him we get a new c.e.o. but everything else remains unsolved in travis' relationship is yet to be defined. does he have a title or is he just a board member? filed foray, travis it to be moved into arbitration. , we've gotten at least one endpoint. we will see what happens tomorrow.

lane kasselman, thank you for joining us. hurricane harvey has been downgraded to a tropical storm. it has drifted back into the gulf of mexico and is poised to regain strength before crashing into the texas-louisiana border. some tech firms are stepping up rescue and relief efforts. amazon and whole foods announced they will match donations made crosse website to the red and said more will come. coming up, whole foods may not be whole paycheck anymore. we were bring you the changes amazon is bringing to the grocery chain next. "bloomberg technology" is live streaming on twitter. check us out. this is bloomberg. ♪

emily: a story we are watching. billionis investing $7 in memory chips. the investment will go to one plant. the memory chip business has become more profitable in apple in the most recent quarter. the announcement comes days after the court sentenced jay y. lee to five years in prison for his role in a bribery scandal. amazon is spinning its first day as the owner of whole foods cutting prices by as much as 43%. march found items can be seen with orange signs with the old and new prices listed. the amazon echo is also foranged though -- on sale $99.99. joining us from new york, jason mak and olivia zaleski,

who went to whole foods this morning checking out prices. what did you see? >> lots of price cuts. we saw them on bananas, lean beef, peanut butter was a big one. emily: avocados? >> they were down about $1. my favorite, organic rotisserie chicken, was down about $5. a huge price cut. emily: was a crowded? >> it was really crowded. i talked to people who said they held off to go monday to get big savings. emily: interesting you would see amazon echos in the stores. do you think people will be buying these while they are grocery shopping? >> buying the echos? possibly. i think the echo was the first successful entry into the living room. we are seeing a try to be copied

by apple and google. not as successful as the echo. when you think about the transaction for amazon, i think this is another point to underscore the deflationary impact from amazon across all of retail. as you increase touch points with the customer, especially as it relates to grocery, i think the opportunity is not just limited to grocery but think bigger picture into restaurants and all the way down the supply chain i think you will feel the effects. a big win for amazon to get this deal approved. emily: was in the grocery business, how do you see competitors responding? >> i don't think you can. the problem is the business models are so different. amazon has the opportunity to operate at a target 0% margin.

they are able to do that because of the fact the business is subsidized through the cash flow proceeds from aws. there is no grocer that has that luxury and no retailer that has that luxury. that is why you continue to see deflationary impact from amazon. groceryook longer-term, is a massive step toward capturing an even greater part of the broader economy. emily: olivia, what is next? >> i think we can see next what james is pointing out, reader touch points --greater touch points. amazon wants to be the retailer for everything. i spoke to people in the store today who said the traditionally buy toilet paper at costco or target. they said now they would probably consider doing it all through amazon whole foods because it is easier to have it in one place. especially if they are a prime member, they can get savings through the prime membership.

emily: james, the other question with the price cuts, they are great, but how along --long can they last? >> indefinitely. trades on the theoretical margin the company could get to should it back and exercise pricing power. that is not in the company's d.n.a. you asked about the next opportunities. i think it is not limited to grocery. you have to think about the other areas they are looking into. there is the pharmaceutical element they could explore. you have media. they are going to become the single largest investor in netflix,content after surpassing netflix in the near future, capturing advertising dollars. there's every opportunity they are pursuing at half a chilly dollars or more.

the fact the government approved this without blinking, i think you cannot stop this train. emily: do you think amazon will try to significantly expand the number of whole foods stores? >> i don't think you need to. you have about 500 locations around the most important markets around the country, the most affluent markets. you do expand on the distribution capabilities and leverage your logistical networks and use whole foods as a commissary to encroach on restaurants with prepared foods. as far as the blueprint of whole foods -- footprint of whole foods, i think there's a lot of existing opportunity they can leverage. emily: thanks so much. i'm going to check it out for myself. coming up, google and facebook continue to dominate global ad dollars. has the space hit its peak? we will explore next.

this is bloomberg. ♪

emily: we have breaking news coming from the japanese government saying a missile from north korea appears to have flown over japan. this coming from the japanese koreanent, that a north missile appears to have flown over japan. we have seen the war of words escalating between president trump and the north korean regime. we are getting headlines in and will bring you more information as we have them. now to another story we are watching. facebook will block at pages from sites that repeatedly share fox news. they will not be allowed -- that share false news. they will not be allowed to advertise on the platform. to further dig into the global ad space, james is still with

us. you make the assertion the global ad market may have. peaked. what makes you think so? globally, and it has always hovered around 1% to do t 2% of gdp. toward seeing a trend the lower end in terms of contributions to the broader economy because at dollars are going further so you are smarter and spending less. tohink the bigger phenomenon continue on the previous discussion on amazon is you are seeing the eradication of brands and brand affinity in the market. saw consumer, you packaged goods companies with sales shortfalls leading to massive reductions in advertising spend.

if you have a company like amazon pushing commodities down and making decisions about function and price over the brand, i think you could wipe out an entire portion of the brand advertising market that exists today. we may be in a situation where the growth of amazon and targeting capabilities may lead shrinking ad spend as we look forward. emily: facebook and google are the giants in the room. do they only get stronger even if the pie shrinks? >> yes. /google it is facebook and everybody else. i think you will have diminishing relevancy of other media channels, all the traditional ones. look at television time spent increased last year but

advertising fell. you had advertising dollars fall across every channel. television, print. the only space growing is mobile. the companies that command mobile are google and facebook. the mixture of the following traditional assets along with internet is not enough to be made up by the growth in mobile. emily: what does that mean for everybody else trying to take a bigger slice of the market whether it is snapchat were twitter --or twitter? >> the interesting thing about snapchat is i thought they had ulse on what it meant to have successful mobile content. what they were hitting on with discover i thought was excellent. they were securing deals to capitalize on that with premium content providers. if they are able to execute on that, they can serve as a third-party alternative. they have not been showing us

they are able to do that yet, which is why it is somewhat disappointing. i think the facebook/google duopoly is hard to shake. but the market does want an alternative. atm rooting for snapchat, least on a personal level, to succeed. also a giant is potentially in this fight. what is amazon doing that could change the game when it comes to online advertising? >> it is interesting because they are one of the top 10 advertisers in the market. their potentially shrinking the market but also a big contributor. the way i think about it is when you have all of these retailers suffering in the off-line world, you're going to want to be able to go to where the attention is. the attention is increasingly shifting toward amazon. if the attention is there, i have to find a way to differentiate my product on

amazon. that is where the advertising dollars open up. i think a lot of the dollars being spent everywhere else aside from facebook and google can be captured by amazon. i think what has been a two-horserace can quickly become a three-horse one. emily: if the pie is getting smaller, how much smaller does it get? >> theoretically, i think it can fall by one third. that is assuming all brands are eradicated. i don't see that happening. you could see a 10% or 20% reduction conceivably in overall ad spend. i think marketing departments will face stricter parameters of operation because it is known to be about long-term campaigns. increasingly, it will be about short-term results. short-term thinking can reduce dollars. and of course, the fact that if

you are no longer trying to pitch the energizer bunny versus amazon batteries that will have an effect as well. the consumer packaged goods industry is the largest spender in the market and has fallen. emily: we will be watching. thank you for stopping by. we are continuing to monitor the breaking news out of asia. prime minister shinzo abe reporting about the missile that has appeared to have been fired from north korea over japan. we are getting headlines from the japanese government and from the south korean government. we will bring you more news after this quick break. ♪

mark: i am mark crumpton in new york. you are watching waz "bloomberg technology." north korea has reportedly fired an apparent missile in the direction of northern japan

according to the japanese government and multiple local news agencies. it is unclear what kind of missile was launched by pyongyang. we will have more on this as it develops. during a joint press conference with the visiting finnish president, president trump discussed recovery efforts in hurricane-ravaged parts of texas and louisiana. harvey is the first major natural disaster of mr. trump's presidency. mysident trump: administration is coordinating closely with state and local authorities in texas and louisiana to save lives. we thank our first responders and all of those involved in their efforts. president trump the first lady are scheduled to visit texas on tuesday. reportsciated press more than 1000 people have died from a mudslide and fliood that hit the capital two weeks ago.

they kicked up a third round of negotiations in brussels with the chief negotiator warning the may administration needs to be more forthcoming about where it stands on the terms of the separation. almost five months of discussion have made little headway. the u.k. released a batch of position papers last week to outline its position. i am mark crumpton. this is bloomberg. it is just after 5:30 in new york. in sydney.y morning david, good morning. >> good morning. traders in asia already looking to digest breaking news out of the region and looking at the potential impacts from what we thehearing out of japan on news north korea appears to have fired a missile toward that country. thingsuld exacerbate that traders are already looking too. gold has had a big upward move

overnight on the news out of the u.s. on tropical storm harvey. they are looking for gold to potentially breakthrough the 1350 barrier. we should see haven demand as a result of the news. n was something traders were looking for. ♪ gety: we are continuing to breaking news headlines out of japan. these headlines coming from the japanese government and south korean government. we are seeing the japanese

government saying multiple missiles appear to have been fired by north korea, this is likely to have landed off the eastern coast of the northernmost main japanese islands. the first missile according to the japanese government flew a.m., was about 6:06 launched from north korea at 5:57 a.m. local time. prime minister shinzo abe has been speaking on japanese media. he says they are doing everything they can to ensure the safety of the japanese people. they are gathering information on this missile firing as quickly as they can. we do have a bloomberg news reporter joining us now from tokyo. now that i have you on the phone, what do we know? we are in the process of him joining us.

to recap, it appears north korea has fired several missiles over japan. initially, we have gotten a report about one missile flying over the northernmost of the main japanese islands. he is with me on the phone now. first of all, what do we know? >> it is a very tense situation right now. we know at least one missile appears to have been fired. it appears to have passed over in japan's northernmost prefecture. the latest information is saying the missile appears to have .anded in the sea there is conflicting information coming in about whether it was multiple missiles. seeing it is possible missile may have broken into several pieces. we know the missile over flew

japan and appears to have landed in the pacific. emily: i'm seeing a headline that at least one missile likely landed off the eastern coast. if that happened, what does that mean? is -- sorry. it is hard to tell right now. there is no indication of what type of missiles these were or what their intended target was. certainly, the japanese government will be on increased standby. but there is no information now on what the intention of these missile launches was. emily: we are still trying to figure out exactly what has happened. i am sure you have followed the war of words between president trump and the north korean regime. president trump drawing a year

medical redline. it was difficult to understand what he meant by that. how has that been received in your part of the world? honest in this part of the world, it has been more business as usual. more than you might think seeing it from the u.s. these types of launches and threats have been a consistent event on and off over the last several years. i don't think people have been more significantly worried than they normally would be. certainly right now, the threats toward guam were quite specific a couple of weeks ago. this does not appear to be the root -- route the missile would take or north korea said they would take if they were trying to fire them towards long --

while -- guam. obviously, people are always on standby for the north korean threat here. emily: talk about how we have gotten to this point. north korea has been known to test these missiles. they have had this program going for several years. talk to us about how we got here. been sucht really has a back-and-forth for many years era abouther's 15 years ago, the six-party talks, the historic visit to pyongyang by the prime minister. now we are in one of the phases where we get threats like this all the time. it is really hard to tell.

it is hard to tell if this launch will be received more significantly. i thinknd of the day, one of the things that was said was that there are limited options here. japan is scrambling to take care of this. i'm sure the resultant harsh language and security council issues will come up. here we are again with one of these. emily: to recap the headlines coming from the japanese government, north korea appears to have fired at least one missile that landed off the eastern coast of japan that has broken up into three parts in the sea of japan. obviously, we are continuing to monitor those headlines. thank you so much for calling in and giving us that quick update. we will be back with more

breaking news after this quick break. ♪

emily: we return to our other big tech story today, uber tapping dara khosrowshahi to be c.e.o. i want to bring in brad stone who wrote a book about uber and travis kalanick. what is your reaction? what do you think of this? >> i was surprised like everybody else because so much was leaked. people knew the name of the other candidates. dara is a savvy choice for a couple of reasons. he has run a company in a fast-moving internet industry. he has built a homegrown, thatng-edge tech platform

allows for different types of transactions and brands. he runs expedia with 20,000 young people. uber has a lot of young millennials. he has faced a behemoth in priceline that is a trial by fire. the experience at expedia will translate nicely into most of the things he has to do at uber. emily: what about the experience with the travel industry and uber being a transportation company moving into the next level? >> it is a marketplace with all the complications. you have customers, travelers, drivers who as a group were not happy with travis'leadership at uber. dara is an immigrant who came from iran at the age of nine, someone who is perhaps a more sympathetic figure to the driver

community now. all of the challenges of balancing supply and demand was one of the reasons meg whitman was so attractive to the board. dara brings the same skill set over. emily: what happened? what do we know about why they did not work out? >> what i know comes mostly from my colleagues. eric newcomer has covered this well. benchmark and its allies wanted meg whitman. travis clearly wanted jeff immelt. besides were at loggerheads. it has turned into litigation in delaware. dara comes in as a consensus candidate and someone who could get everyone on the same page. that will probably come down to bill gurley and travis kalanick getting over the personal enmity

and moving forward for the good of the company. emily: let's talk about travis. what do you expect his role in the company to be? do you think he will be gunning to get back into the job? >> he clearly wants to continue to be an advisor, and influential board member, someone who continues to contribute. he has always talked about uber in personal terms and you cannot see him walking away. he has become symbolic for many problems that the company. it might be better for him to take some time in the background. that is the tension right now. any news c.e.o. needs some running space to put their imprint on the company. i think there will still be some tension about what travis' role will be. i don't think any of that is resolved. emily: the company is making a lot of money but also losing a lot of money. can dara focus on the important

thing, getting the business in shape? >> in a lot of these high-growth tech companies, it is always a function of how hard you want to be pressing on the accelerator. any good operator is going to have levers to make more or less money. it is a matter of will. does uber want to compete in far-flung countries and lose money or ratchet back on the growth and get to profitability and look better for an ipo in 2018? dara has a lot of experience running a public company and competing in these ferociously competitive markets. travis had a growth at all cost mentality. you expect dara to ratchet it back. a softbank investment in uber. emily: is that happening? >> we don't know. that will be one of his first

decisions. that is also tied up in a dynamic -- the dynamic between benchmark and travis. it is massively complicated and personal. one of the first things he has to do is negotiate an outcome between all of these players. it is a good sign they got a candidate both sides seem to be able to get behind. emily: you know the company well. we are just getting to know dara khosrowshahi. in a year from now, do you think these issues will get ironed out and the focus will return to the business? >> it has to. they have to get past this. i think it is possible they settle this soon anyway. it is so destructive for the morale and long-term success of uber. in 2018 if everything goes back to where it should be, they are preparing for ipo. the attention is where it should have been all along, canada

uber --can uber survive in a self-driving future? dara does not necessarily come with the tech chops to lead the company into this inevitable age of driverless cars. can he do a better job than controversiale a acquisition with a lawsuit? can dara do a better job of preparing uber for that inevitable future? emily: thanks so much. we will see a year from now. that to breaking news out of asia. japanese prime minister shinzo abe speaking to reporters in tokyo saying a single missile appears to have passed over airspace and the government was urgently collecting intelligence on the incident and doing everything to ensure the safety of its citizens according to remarks made on the broadcast nhk.

south korea will be holding a national security meeting. the missile was launched from north korea we believe before 6:00 a.m. local time landing off the coast. we will have more details next. this is bloomberg. ♪

emily: we are continuing to monitor breaking news out of japan where the japanese government says a north korean missile has been fired over the northernmost island of japan. the chief cabinet secretary has confirmed the missile and says it is a serious, new development but there are no reports of any damage. according to headlines, the missile likely fell about 1180 kilometers off the coast. joining me from washington, d.c., to discuss the director of george mason's school of law jamil jaffer. i have to ask you first of all,

what is your reaction to this news and how serious is it? >> i think this is a big move by the north koreans. problematic that it flew over japanese airspace which is troubling news. they have sought missiles before into the sea of japan which japan has been concerned about. this is a change of pace and troubling. emily: what makes this one different? >> having violated japanese making japanests report to its people a missile may be inbound. that is disconcerting from a defensive perspective for japan. they have always known north korea has the capability of reaching japan with blistered missiles, much further today. but this is a provocative move i think. emily: there has been concern about the remarks president trump has made about north korea, concerns about trump's approach. what do you think about that as

having potentially precipitated this? >> i think to the contrary, president trump's approach has pushed them back. they have not launched toward guam. they've gone northeast instead of south, that includes today. the ones on friday were troubling. this one more troubling. the president has been affected in pushing the north koreans back. what happens now is a big question for the president and the north koreans. emily: what do you think happens now? >> i think the president is going to say something. i think he will not be pleased. the question whether he does something more than words. i think now words are the right approach. i don't think anything more is called for here. i think the president will make a stiff point to the north koreans. i think the north koreans are listening. the chinese are listening.

they are pressing to see how far they can go with this president. i think he is likely to show them where those lines are. emily: what is the message north korea is trying to get across? >> i think north korea is trying to show we have the capability. we will not be intimidated by the united states. people often think kim jong-un is crazy. he is not crazy. he wants to maintain power. that does not mean he will not try to press the envelope and figure out how far he can get with united states and our allies and his chinese patrons. his testing the boundaries to see where the edges are. it is important for the president to draw the line clearly for him. emily: you were originally coming on the show to talk about cybersecurity and the presidents approach to that. there is a decision to split off cyber command. i wonder what you think that means when it comes to our cybersecurity. >> a lot of people have been talking about the need to split cyber command and raise it up to

its own unified command. that has now happened. it is an important step. it demonstrates cyber as a fifth domain of warfare. in a lot of ways, cyber is at the heart of the way we fight on air and land and space. whether you separate the leadership is a hotly debated issue and one we will see discussed over the next few months. emily: your four people resigning from the advisory council that oversees many of our national security efforts. you have the risk apparently growing between secretary of state rex tillerson and the president. you have a lack of staff in the department of state. how does that impact our security in light of what we are seeing from north korea today? >> it is important to have stability in staffing and have capable people in all the offices. there have been some controversies ongoing with the

president's advisors, the business community, and within the administration. at the same time, what is important about the report last week is talking about the need for information sharing. i think that is the right call. it is important for the government to do what it is good, working with industry, and not do what it is bad at, regulating in a high-tech industry. emily: has anything changed when it comes to our level of security? are we as safe as we were before president trump took office? have these staffing issues and divisions within the departments had an impact on the level of protection? >> i think over the last eight or 10 years, we have seen a change in our security posture. our allies are less reliant upon us. our enemies are less afraid of us. i think the president has sought

to push back on the narrative. the challenges in the white house and the president faces with his party and congress and the opposition has made it harder for him to do his job. as the president is tweeting, i think it weeks it harder to stay on message. i think the best thing is to stay on message and focus on their issues. emily: thanks so much for joining us as we continue to monitor breaking headlines out of north korea and japan. that does it for this edition of "bloomberg technology." we will have more coverage tomorrow, full coverage on what is happening in asia right now. ♪

rum our studios in new york city, this is "charlie rose." charlie: welcome to the program. it is the end of summer. as we prepare for the next season, we bring you some of our favorite conversations on "charlie rose." tonight, a conversation with iran's minister of foreign affairs. >> i believe everyone should come together fighting these extremist ideologies. that is not mean only through military means. this is much deeper. it should be a comprehensive strategy