the war of words between the u.s. and north korea escalates. said the war in the korean peninsula is unacceptable. moscow also says a neutral european nation should mediate and the u.s. and south korea should stop joint military exercises. senator john mccain voted against the proposal becoming the second republican to oppose the measure. he joins rand paul in opposing the bill. the white house did not sign off from tomst two dozen price. price took at least 24 flights since he joined the cabinet in february. said his job is difficult and is working as long. the death toll in the caribbean has climbed to at least 27. reportingnds

fatalities included haiti and the dominican republic. maria is heading for the bahamas. i'm jessica summers. this is bloomberg. "bloomberg technology" is next. ♪ ♪ i am emily chang and this is "bloomberg technology." new plan, asking the board to draw the proposal to create a new class of shares. a rare victory for outside investors in the battle for control of the world's largest media company. what this means for shareholders, next. londonels of uber's operation could completely fall off. we will map the road ahead and

impact without the pool of 3.5 million customers. apple's latest in a region of hardware hits markets. facebook has scrapped plans to create a new class of shares. it is a rare victory for outside investors in a battle for control of the world's largest social media company. this comes days before the c.e.o. wasa giant's due to testify. said he would sell up to 75 million of his own shares over the next 18 months. that would total up to $7 billion. the facebook c.e.o. said the business has performed well in the value of our stock has grown so i can fully fund our philanthropy and control control

for 20 years or more. discuss, ourw to guest host for the hour, david kirkpatrick. and sarah frier who covers all things facebook. astounding development. what is your reaction? >> it is a funny conclusion because this has been such an embarrassing case for facebook. bloomberg reported in december on some behind-the-scenes between mark zuckerberg and marc andreessen. this is coming at the wrong time. facebook is in the crosshairs politically right now. it is not the right time for zuckerberg to go on the stand to defend ultimate control of the company. good thing he is rich enough it does not matter. that is basically what he is saying in the statement. he is rich enough this is not

even a thing he has to worry about. emily: david, what is your take? we have been talking about founder control and how much is too much. what is your take on facebook and zuckerberg's ultimate decision? david: sarah called it exactly right the timing was fantastic for shareholders and terrible for zuckerberg. if he had gone on the stand and been interrogated by an attorney who is very aggressive, it would have been a p.r. disaster almost without question because of the issues flying around right now. and the fact that realistically, quite a few of them could be tied to this case. if the issue is governance of facebook and it is clearly not going well at the moment, the argument for his long-term control is not that strong. it is alsor hand, super lucky for him the stock

has gone up so much. it is a bizarre time for this company. the pace at which the frying pans have been flying at his head recently is astonishing. emily: he said he will be able to retain control for 20 years or more. what happens in 20 years? >> i think he might tried again than. so much can change. the thing we have learned about mark zuckerberg this year is this person is so dynamic. he is changing all the time. he is adapting to new situations. me,ne of his managers told he wakes up every day with amnesia and reevaluates all the things going on. that is a really good thing to have been a leader. emily: david, talking about the situation. mark zuckerberg did a facebook live yesterday. he said facebook was turning over more information to congress for congress to decide how much they revealed to the

public. he said they would revamp how political ads are displayed on facebook. "ter this, president tweeted the russia hoax continues." what do you make of this situation that facebook and mark zuckerberg now find themselves in? david: again, i am agreeing with sarah. is an extraordinary agile thinker and a very idealistic leader who nonetheless finds himself in an incredibly difficult situation which is somewhat of his own making. that facebook live you did yesterday and the amazing litany of things he promised to do was a turn. he continues to change and say i'm am going to take this more seriously. he started a year ago at my conference a year ago saying it

was a crazy idea to think they meddled in the election. now he is not only turning over all the ads to congress that really acknowledging it is not just in the u.s. it is in a range of other countries. they have to start monitoring the nature of political advertising in every democratic country around the world, which is going to be expensive. the one thing i think is worth noting is i think they are going to have to do so much in response to all of these concerns it is going to start cutting into their profits. they have had astonishing affability because they have not needed all the money. they are going to start having to spend enormous amounts to stay ahead of this panoply of issues about free speech on facebook. >> i don't know that is going to be the thing to cut into their profits. it is expensive to deal with. there are other factors that might have a larger impact like

spending so much on video content for their new video watch product. that is going to lower their margins. sharing ad revenue with publishers. i think those are the more boring aspects of facebook's business right now because they have all of this political turmoil. let's not forget this company has done extremely well and reaches more than half the world's internet connected population. there may be some macro trends that will affect them more than these political trends. emily: david? david: do you think that means there astonishing profitability will get affected one way or the other? i think definitely. i also think this company continues to be profitable. they figured out how to monetize mobile ads. now they have so many irons in the fire.

they have virtual reality, artificial intelligence, all of these things they have not monetized their full extent. company has been pretty predictable from a business standpoint the last few years. i think the next big years are full of question marks on the geopolitical scale but also in terms of the business model and how it evolves. emily: david, last question for you. you mentioned sarah's interview with mark zuckerberg this week where they talked about whether he is running for office. he says he is not. do you think he will? david: i do not think he will. i say he cannot until he starts to fix some of these problems. fixing them is almost impossible. if he were to run for political office, and the same is true for sheryl sandberg, it would draw attention to the reality that if facebook chose to, it could effectively determine the outcome based on the control of

the information flow for such a huge percentage of the electorate. that is not something he or she would want attention to be drawn to the degree it would if they were to run. therefore, i don't think he can run. emily: david kirkpatrick, you are sticking with me. sarah frier, thanks for stopping by. coming up, a major blow for uber . how the company is responding to having its license revoked in london. what it means for competitors. "bloomberg technology" is live streaming on twitter. check us out on weekdays. this is bloomberg. ♪

emily: now to a story we have been covering all day on bloomberg. london is sliming the brakes on uber. the right toking operate. the impact could be huge. 40,000 drivers in the british capital. dara khosrowshahi says i have learned that change comes from suffer flexion. the truth is there is a high cost to a bad reputation. here to wrap up the news and what it means to the world's the valuable startup,

c.e.o. of a nonprofit that focuses on accelerating growth of the tech industry in the region. he joins us from london. in san francisco, we have eric newcomer. still with us, david kirkpatrick, c.e.o. up techonomy. eric, you got the memo from dara khosrowshahi. what more did he say? >> sort of a back and forth. the head of the region sent an email saying everything uber was doing. wanted to respond that there is a level of culpability even if we think we did the right thing. we need to deal with our reputation. it is a very different message you would have heard under -- than what you would have heard under travis kalanick. emily: how devastating of a blow is this? >> if they have to leave the streets of london, it is terrible. it is one of their best cities in the world.

there is a question whether they really have to leave. they are appealing the decision. if they had to, it would be terrible for the company. emily: what is the immediate impact of and reaction to this news in london? >> right now, we are seeing a petition being signed by hundreds of thousands of people. i think it has reached about 350,000 signing the petition online. they are clearly appealing. while the appeal, uber will continue to operate in london. 3.5 million people use the app so you can imagine the appetite is very high. this is not about the technology. this is not about the technology or innovation. this is about the conduct of the company in certain areas like records,obtain medical

how they report offensive crimes. that is what is really interesting. it is unfortunate it had to come to this point. i would have hoped they would have resolved this. as i said, uber will continue to operate as it appeals the decision immediately. emily: david, this may be the most significant consequence of uber's high risk behavior. what is your read? david: i have to congratulate eric on getting the memo. it is refreshing to hear an uber c.e.o. talking so candidly and realistically about the nature of business. we have not heard that kind of talk from uber before. they seem to think business is something different from what the rest of us think. a bloomberg columnist talked about the pirate culture of uber , which is what they have had. if this pushes them in the direction of turning more toward

a more reasonable culture, that would be beneficial for the company long-term. they have a lot of things -- skeletons in her closet yet to emerge. i think some of them are going to be awful. there are things reported only beginning to be researched and investigated by governments like whichformation revealed is what would be, if proven, illegal corporate espionage against lyft in the united states. if that were to be proven, governments all over the world will start thinking this way and uber's reputation will be hard further. at least with the new c.e.o., they are talking -- starting to talk the way a reasonable, long-term company ought to think. emily: how many more skeletons does uber in its closet? >> there are three department of justice probes. china, malaysia, indonesia, south korea.

there is a global look at whether they bribed officials and any of those countries. i think there's a lot we will learn that i'm still digging into. i think it will take some time for dara khosrowshahi to put the old company behind him. i think to some degree it will have to be that was the old uber . but how much they are embracing the old uber will play a part. emily: we are looking at the timeline of uber's difficulties. they have had run-ins with governments in all of these places. what is the impact across the region of these choices uber has decided to make over the years? >> i think london was one of the first cities in the world outside the u.s. to adopt the technology. it reached a point where 3.5 billion people are using the app, so it has been very well received.

it is a great application. there's a lot of competition. the black caps have introduced credit card systems into their cars finally. that has been a positive move. i think you will see a lot of grumpy customers if it is totally wiped out. i hope that will not be the case. as my colleagues are saying just now, let's hope uber will appeal this and will continue to operate. i just hope they will come to some sort of conclusion which will enable uber to continue operating. emily: you mentioned the black cabs. how much of a dent has uber made in the historic london black cap business? >> i think they felt the impact. there have been many protests in the streets. nothing violent.

they have been -- been on the streets a number of times. london has been trying to work this out. it was one of the first open mobility institutions in the world to open up its data sets to allow app developers to develop services on the back of the data being opened up. they are very forward-looking when it comes to technology. as we have been talking about, they are questioning the conduct of the company in connection with two or three things. and transportber for london will resolve this over time and we will continue seeing uber on london streets. emily: what is the appeals process? how long could it take? >> it is not exactly clear. it will take time for it to play out and see. the mayor's response has been

very interesting. emily: the mayor supported transport of london? >> as soon as it came out. the political ramifications will be super interesting. i think uber will emphasize they have this immigrant base of drivers, a sympathetic base. there are larger issues at play in london about the class of the black car driver versus the immigrant class of the uber driver. playing up that debate could be to uber's advantage in terms of saying we have people who need this job working for us. emily: david, final thought? david: if i were lyft, i would be working hard to launch to have those drivers work for me. that company has a much better reputation. emily: david kirkpatrick, you are sticking with me. eric newcomer, thank you.

gerard, thank you for joining us on this evening in london. coming up later in the show, amazon delivery is not just for groceries. giant was toe bring you food from your favorite restaurants. this is bloomberg. ♪

emily: some headlines grabbing our attention. according to people familiar with the matter, hewlett-packard will in a money -- eliminate about 10% of its staff as part of the effort to reduce costs in the face of tougher competition. walmart's online merchant has thrown the first official blow as the holiday price war gets off to an early start. cashback onng 5% early orders. shoppers can earn up to $50 that can be redeemed on the site.

sales for the upcoming holiday season are expected to surpass $1 trillion. high since the announcement of a deal with google with shares soaring as much as 10%. the smartphone maker is now rated as a buy by five analysts. people were lining up to get their hands on the new iphone 8. will lukewarm reviews impact overall sales? we will discuss. if you like bloomberg news, check us out on the radio. feature i would like to bring to your attention. our interactive tv function. you can find it at tv on the bloomberg. you can send our produces a message, play with the charts we bring you on air. this is for bloomberg subscribers only. check it out at tv . this is bloomberg. ♪

mark: i am mark crumpton in new york. you are watching "bloomberg technology." the u.s. federal government reportedly told election officials in 21 states hackers targeted their systems last year

according to the associated press which also reports in most cases the systems were not reached. many of the states had been unaware until notified friday by the department of homeland security. mexican authorities have raised the death toll from tuesday's earthquake to 293. are confirmed dead in mexico city. john mccain said he will vote against the obamacare repeal proposal. he becomes the second republican along with rand paul to oppose the measure. thendergarten fight is how russian minister describes the world words between president trump and kim jong-un. he says the world should take a reasonable and not emotional approach toward north korea. the international atomic energy agency has officially adopted a resolution condemning north korea's pursuit of nuclear weapons. the draft was agreed on by the

u.s., russia, and china before it was presented conference delegates. >> today, this conference reiterates its firm stance possession ofrk's nuclear weapons and underscores the dprk should not harbor any illusion its illicit pursuit of nuclear weapons will ever achieve legitimacy in the eyes of the international community. mark: the ambassador also called for enhanced pressure on pyongyang. iran state tv has aired footage reportedly showing a medium-range ballistic missile being fired. tehran has not mentioned the time or location of the test. it is a direct challenge to president trump who signed a bill imposing mandatory penalties on entities involved in iran's missile program and individuals who do business with them. british prime minister theresa may has laid out the plan for a two-year brexit transition. may said neither the u.k. or e.u. would be completely ready to implement all the arrangements for brexit when the

u.k. formally leaves in march of 2019. >> if we get the spirit of the partnership right, at the end of the process we will find we are able to resolve the issues where we disagree respectfully and quickly. mark: prime minister may promised the u.k. with live up to its budget commitments as long as it is in the european union. global news 24 hours a day powered by more than 2700 journalists and analysts in over 120 countries. i am mark crumpton. this is bloomberg. ♪ ♪ emily: it is a big day for apple. lus iphone 8 and 8 p available in stores around the

world. so far, we have heard reviews for the new gadgets have been lackluster including everything from the design to price point compared to rival models. we are joined by alex webb and david kirkpatrick is still with us. how did today go for apple? >> it is hard to tell. increasingly over the past few years, more people are able to order online. the upgrade program means you do not need to wait in line anymore. the significance of the line has diminished. in new york, there were large lines. it suggests there is a certain appetite for apple devices. with the price point of the iphone x in november, it has persuaded some people they do not need it. emily: what is the take on how many people will buy the iphone x issus the x given the such a significant design overhaul and the one that you want? >> short lines do not necessarily mean bad news for

apple. i have not seen any forecasts. it makes it hard to tell. apple does not break down how much of each model is cells. because we are going to see a lot of the iphone 8 demand frontloaded into the fourth quarter which ends at the end of september, the iphone x sales will come in the next fiscal quarter. it will be hard to work out exactly who is buying what. we will see the average sales price jump in the next quarter from the current one which might give some indication. emily: david, you were with us the day apple unveiled the new phones. entries what you think about apple's change in strategy. it used to be there was only one iphone. you could get a couple of different colors. now you have three different models, maybe more. is this going to be a good strategy? david: there are so many possibilities. we cannot look inside tim cook's head.

as alex was talking, i was wondering if this iphone 8 think int in the sense that we know the x will be hard to manufacture. it could be they are worried about their ability to make enough to meet demand. by coming out with the 8 a few months earlier, they are bleeding off a number of users so they have more time to build the more complex device they ultimately want to make their flagship phone. any of us would be the kind of people who would stand in line for it. if i am the kind of person who gets up in the middle of the night to stand in line, i will not do it for a phone that will be out of date in two months. i think it makes sense there is not a lot of lines today. clearly, the test for apple will be what happens with the x. emily: we have been desperate for any information on the supply chain. do you think there could be any water to david's theory? >> potentially.

what will be interesting is when we get under the hood of the iphone x. get into the device and you can pick out the components and have a good sense of how much it costs to put together in terms of the components. some people have been estimating already. it seems the iphone x is considerably more expensive to make. it may be that apple is not getting that much more profit from the device itself. that might speak to the fact apple might be preparing for the iphone 8. the flipside to that is services. apple might be able to sell more services through the iphone x with augmented reality. there are a lot of balls apple is having to juggle. emily: you wonder if there will be an iphone 9. is there going to be something in the middle? >> who am i to predict? we need mark for that. i did hear a funny joke the other day. someone said you have to be consistent. one phone 10the

or iphone x. emily: maybe apple is trying to buy themselves some time right now. right now, they have three different models that are going to be hitting the market. i wonder if for consumers it is confusing, especially given all the competing products. is this really sort of a moment of evolution and the next cycle will be completely different? david: i think it is confusing for consumers. apple does have a fairly significant competitor in samsung that has done a very good job advancing its own technology. they had to come out with a really cutting edge high-tech phone like the x. they have to succeed with it. even though they still are the premier provider and high-margin company, they have somebody

executing really well sneaking --keeping close behind. if they were to slip with their supply chain abilities or design, samsung could surpass them in terms of the image of who makes the best phone globally and the most desirable phone. they have got to do well with the x. no matter the margins, they had to come out with that phone. may be aon of the mixed blessing for them8. if it takes customers away from the x, that is a good thing for several reasons we have discussed. >> the big word in all of this is oled, the screen in the iphone x. controls most of the supply of that. that is going to change over the next 18 months.

the extent to which it does and the pace that happens will speak to apple's ability to roll out products with this new technology. emily: i want to ask about issues with the other products, the watch, the cellular connection, the tv set-top box. how serious are these? >> the watch seems to be a software fix. you have to sign into the wi-fi again. it seems easy to fix. with the tv, that seems to be more of a cost issue. other devices are cheaper. that is the classic apple issue. it has not stopped people from buying apple products in the past. emily: alex webb, thank you so much. david kirkpatrick, you are sticking with me. john mcafee, founder of eight mcafee antivirus company, set down exclusively with bloomberg in hong kong. what he has to say about china's recent crackdown on

cryptocurrencies. this weekend, we bring you our best interviews from the week including highlights from the global business forum including my exclusive conversation with jack ma on competition with amazon. tune in the saturday for "the best of bloomberg technology." this is bloomberg. ♪ ♪

emily: singapore has risen to the top of an infamous list. it is being called the top spot launch global cyberattacks. the city-state stepped up efforts to tighten cybersecurity after high-profile attacks. in may, singapore stopped most of its public servants from accessing the internet from their work computers. says china's banning of initial coin offerings will not halt the momentum of cryptocurrencies. he sees the coin sorting fivefold within a year to $20,000 per coin. mcafeengle sat down with at the global summit in hong kong and asked about china's recent crackdown. take a listen. iswithin china, everything

extremely uncertain. any officer of any cryptocurrency exchange in china may not leave. they are not being arrested but they have been told they should stay in beijing. the rest of the world is in chaos because no one knows what is coming next. banning mining would be externally disruptive to the chinese economy and world. >> a lot of the bitcoin mines are in china. >> the largest is in china. tens of thousands of machines mining 24 hours a day. those coins are staying in china. i do not think that will happen. i truly believe the chinese government is rational and in withong run will legalize certain legislative restraints that will legalize exchanges, again with controls. people have taken advantage of china.

people would come over and do i co's in china promising a 1000 return in a week. you cannot do that. it was making everybody look back. i think in the long run, it is very good for the cryptocurrency industry. >> do you think there will be too much regulation? you have heard all the arguments. >> of course they will. this will be a seesaw effect. when legislation is enacted, people will get around it. we are talking about a decentralized world, a decentralized process where isr-to-peer activity foremost. you cannot legislate that. you would have to have an enforcer in everyone's home. they will enact legislation. people get around it. more legislation will be enacted. people get around.

in the end, governments will lose because the power of this technology supersedes the power of centralized government. >> i know you are on record saying you expect significantly higher prices. the chinas dip after crackdown but it is already coming back up. >> it was at $4000. it was not just china. it was jamie dimon of j.p. morgan. he called it a fraud. up,id right after him, wake which is the fraud? it cost my company over $1000 to create a bitcoin. please. >> do you see hong kong playing a significant role now that china is not necessarily playing in the game at this point? hong kong and a lot of cryptocurrency companies have started here. >> it is still legally part of china. while china has had difficulty integrating it, if they choose,

they could collect me and everybody here. hong kong is too close to china. switzerland, india, the philippines. the world is a large place. founder of mcafee, the mcafee antivirus company, and bloomberg's stephen engle. the u.s. international trade commission has determined cheap imports are hurting solar manufacturers. it could increase crisis and cut demand. some analysts say imposing tariffs could cost u.s. taxpayers about $1.2 billion. coming up, have you been dying to get shake shack and chipotle delivered directly to your home? amazon is trying to make that a reality, next. this is bloomberg. ♪

emily: a story we will be monitoring. google has less than a week to meet a european union deadline in an antitrust case. the company has been ordered to stop illegal conduct in search. says ife vestager comparative search engines are unhappy, they will start investigating. google already faces a record fine. amazon may be bringing chipotle and shake shack to your door. the e-commerce giant has been trying to get into the food

delivery business for a decade. now amazon has teamed up with a company that provides digital orders and pay technology to 200 restaurant brands with 40,000 locations in the u.s. joining me to discuss, olivia zaleski as well as david kirkpatrick. at the risk of offending the west coast, when can i get shake shack delivered? >> starting very soon. they are going to integrate over -- about 200 restaurants. many of them big name brands like chipotle, applebee's, into the program -- platform so amazon can offer foods from those brands. amazon restaurants has traditionally focused on mom-and-pop relationships with a small the neighborhood bistro you like to go to with your family. it is harder to make money on those. restaurants. it takes a lot of time and money for amazon to acquire those restaurant customers. emily: amazon has been experimenting with this in

seattle. how have those experience gone? -- experiments gone? >> it is a tricky business. the average for delivery can cost amazon up to $10 a meal. the margins are slim on this business. by stepping into these larger brands, it is a big move for them. it solidifies their ambition to have as many customer touch points as possible. amazon wants to be in our phone, the in our daily life in as many ways as possible. this is just done by the way for them to get a piece of the $1.5 trillion u.s. the market. emily: obviously, david, there is a lot of competition in this market. seamless is a huge competitor where you are in new york. how optimistic are you that amazon can succeed? david: first of all, i wish there was an in and out burger around the corner from my office. i very optimistic about amazon's ability to do almost anything

because their motives are not the same as any other company. they are doing this even though they are losing money. it is -- they are developing a business. as long as they accumulate the right kind of data, and some businesses may not care if they make a profit at all, not to mention the way investors are willing to give them the benefit of the doubt even when they are not profitable. the fact is they can do more and more stuff because they get more variety of data they integrate. they build profiles about us. they can anticipate other things we will want to spend money on an offer that to us. they play a very long game. it is all based on data. has been getting into groceries. amazon is getting into groceries. there are interesting parallels. alibaba sold their food delivery business to buy do. is there anything amazon should learn from that? >> it did not work for them in

that case. maybe they did not want to play this long game amazon is willing to play. i think we can see amazon is committed to making something really worked in food. we are seeing it with whole foods, we are seeing it with the amazon go concept where you don't have a checkout counter. you take something off the shelf and can walk right out of the store. they are putting an enormous amount of resources into this. i don't see them selling any business is off to a competitor anytime soon. emily: now we are a few weeks and the whole foods acquisition, give us an update. >> it is going well. foot traffic increased in whole foods locations as well as online. i think what we can learn is by purchasing whole foods which has done a good job of building trust with consumers, amazon is now able to take that natural trust people have when they go into a whole foods and feel like they are buying an organic banana and feel the same way when they purchase something

online now. it has been difficult for companies to sell food products online. that has always been challenging. i think we are right on the precipice of a big shift in consumer behavior. emily: david, you get the last word. amazon is looking for a second city in the u.s. to locate a new headquarters. new york could be among the top contenders. where is amazon in five years? david: where are they physically? emily: where are they in general? be an i think amazon will even bigger colossus in five years. i think if you add up all the stories we are hearing about uber and facebook, amazon is going to become subject to some of the same forces even though each company's story is different. sheer scale will become suspect for good reason. if these companies are based on data, they arguably are going to have more data than they deserve

to have. that is going to interest governments. i think it is going to cause a different relationship between these companies and the regulatory authorities. we are going to see a bigger amazon, but it is going to be have to treading more carefully and be required to do so by governments all over the world. i am certain of that. emily: david kirkpatrick, our guest host of the hour, thank you for stopping by. olivia zaleski, thank you as well. that does it for this edition of "bloomberg technology." we are live streaming on twitter. check us out at bloomberg tech tv on weekdays. that is all for now from san francisco. have a wonderful weekend. we will see you on monday. ♪

♪ announcer: from our studios in new york city, this is "charlie rose." charlie: jens stoltenberg is here. he is the 13th secretary-general of the nato. he is also the former prime minister of norway. nato is the largest and most powerful military alliance in history. since its founding in 1949, the organization has significantly redefined its role. it's primary focus after 9/11 has been combating terrorism. russia and north korea have become a priority for the lion's --alliance. the secretary-general recently declared the world is more