and killed him. one of the shootings on the reserve took place at an elementary school where at least one person was hurt. >> it was very clear early onset that we had a subject that was randomly picking targets. >> the county's assistant sheriff told the ap that the death toll could rise. senate majority leader mitch mcconnell says the chamber will take up the gop tax reform bill after thanksgiving. meantime, congressional republicans today projected confidence about delivering on a tax overhaul. president is planning an in person appeal to lawmakers. house speaker paul ryan has become the latest republican lawmaker to call on roy moore to drop out of the alabama senate race in light of the recent accusations of sexual misconduct made against him. >> he should step aside. number one, the allegations are credible. cares aboutif he the values and people he claims

to care about, he should step aside. >> right and later tweeted that the policy of mandatory anti-harassment and antidiscrimination training. global news 24 hours a day powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. ♪ emily: i'm emily chang, and this is "bloomberg technology." coming up, new details on apple's next-generation of the iphone. the iphone x has just hit stores, but the company is already at work at a new technology to its upcoming device. plus, airbnb hit a new milestone. the company continues the strength of posting a profit with $1 billion in revenue. can the rental startup keep growing? as the debate over saxophone continues in congress, we will discuss the impact for the tech

industry from the big companies to startups. first to our lead. apple continues its never-ending cycle to ramp up the technology used in the iphone. the company plans to take another step toward turning the smartphone into an ar augmented reality device. apple is working on a rear facing 3-d sensor in the iphone in 2019. it is a different technology from the iphone x face id system. joining us now is alex. also with us is our bloomberg editor at-large cory johnson. what does this new sensor involved? >> at the moment on the back of your phone, you have two cameras on the iphone x. this allows for depth perception, but it is not terribly accurate. when apple is doing is the 2019 , adding the depth perception on the back which allows them to do much more complicated augmented reality things with the rear facing camera. emily: with this impact any of

the current technology, the face id, or is this something separate? alex: it is something separate. if you are a laser maker, it is good news because there are two lasers on this green which allows face id to work. there would be another one on the back. if you take a monopoly board, a virtual monopoly board, you can play virtual monopoly on this table with the ar kit. if you put your hand in the field of view, it does not know your hand is there and ruins the sensor. adding the brady center can allow you to pick up a hat and move it to the next space. monopoly.ish emily: it is not surprising apple would already be pushing two,rd on technology one, three generations out, but would you make of this knowing about apple's broader ar strategy? cory: apple has look at what happened to the pc industry.

we have gotten to a point in pc's where there is no compelling reason to get a new model every year or every other year. the replacements have slow down for pcs and tablets. we see people replacing the tablet but at a much slower pace. people want to get a new phone after the 18 month or 12 month period, but they don't want to slow down and they want something compelling enough to get people to want to upgrade their phones. alex: i think the thing is interesting in that for to a that there are two production from out at the moment that have this kind of technology already. taking shows apple is the advantage because it wants to milk this cycle and the next cycle rather than putting all of the technology as soon as they can, it leaves room to advance the next generation. emily: apple working on ar headsets. how does this tie into that? alex: it can be seen as a foundation stone in some ways. there are increased numbers of

augmented reality apps. the problem with augmented reality glasses at the moment is there is not a huge amount of content out there which mixes worth people buying. if apple is building a whole ground foundation of our content -- of ar content, they can parlay that into smart glasses in three or four years time. cory: they have the ability to do a lot of things with ar using well.ds as augmented reality with the air pods with some kind of glasses as well could be somewhere they go. i think the fundamental of this is one of the development tools. if you think about pokémon go, it was ground breaking stuff, but they had to build that from the first 1 and 0 to the top. now, developers can get a head start and we might see real advances quickly. emily: new technology can be hard to imagine how you would use this. go, if somebody explain

that to me, i do not think i understand it until i played it myself. alex, give us some ideas about how i as a regular user might benefit from this kind of technology. alex: ikea, which has an augmented reality app, it allows you to place a virtual sofa in the image of your living room and walk around and see how it might work. what it cannot do is hanging your on the wall or a picture on the wall. is very good on dealing with horizontal planes. vernot as good at dealing with vertical planes. it adds that some of perception to it. the walking dead app where you seize on walking around your living room. ae moment a person approaches zombie, a does not know the person is there anything place an interactive thing with your friends saying hit them in the face or god knows what. cory: you have not seen the walking dead. emily: i do not watch scary movies.

cory: it is hard to imagine with the uses might be. one desktop publishing came around, people that you would take magazines and deliver them as a pdf. we did not magically it would be facebook or instagram or twitter. the notions of what you can do with as i sort of unknown. we will look back at this conversation five years from now and laugh at what people are doing with it because it will seem so obvious then if not now. alex: an animated emoji -- emily: love it. alex: we did not know it was going to be this karaoke thing. karaoke was the thing to push. we could not have predicted that three months ago. emily: try out some of the new features on the iphone. great scoop from you, alex. cory johnson. continues toft capitalize on uber's rocky year. we will talk about the global expansion plan, next. "bloomberg technology" is live streaming on twitter.

this is bloomberg. ♪

a rollout of a major update to the firefox web

browser tuesday with a bevy of new features, and one old fre nemy, google. firefox's default search engine will be google. the agreement will cause a similar older deal that was scuttled when the web browser became bitter rivals. three years ago, they switched as theogle to yahoo! provider in the u.s. after yahoo! agreed to pay more than $300 million a year over five years. has its foot on the gas as it drives the global expansion north to canada. this will be the first time it operates outside of the united states. the right helling company will start in toronto and expand into hamilton, ontario, . lyft ha. lyft has been gaining territory. in toronto have downloaded the app even though the service is not available. joining me now is our guest.

you guys invested in $6 million in 2011. it is now worth $11 billion. >> the valuation of the company is with $11 billion an hour stake is a lot from where we invested. emily: what do you make of their expansion finally outside the united states? >> i would say lyft is a great example of a company which is on to its mission of serving people, creating communities to transportation. our aim is to build one of the biggest companies in the information technology industry. we looked at toronto. we believe it is the fourth-largest city in north america. culturally, we are very aligned with the people there. we did surveys.people really wanted a choice . they are looking for inclusivity, diversity, and above all, they want people to treat them well, whether it is the drivers or the consumers.

based on market research, we felt the time is right for us to expand outside the u.s. into the first country which is nearby in north america because there is a lot of demand for what we do. emily: uber expanded globally much more quickly. not always working out. they surrendered in china and russia for example, but they have the lead when it comes to international expansion. was in the right call for lyft to wait? navin: absolutely. i have a believe having entrepreneur, building a business is like a marathon so our strong belief is , andeed to crawl, walk an run. for estimated to be good at something in the world and people love you. want to conquer that market, then you have the right to expand into other markets. let's take an example of google. first mogulot the

in search, but it is the biggest company today. there were people before google whether it was yahoo!, excite, and many more. so it is not necessary the first mover always takes the lion share of the market because as i mentioned earlier, it is a marathon, not a sprint. emily: obviously uber has had major challenges this year and lyft has gained market share in part as a result of that. what do you think is the likelihood that lyft can become not necessarily an equal player ube in in the u.s. -- to the u.s.r but to surpass them. navin: we have not disclosed the numbers. emily: everybody wants to know what the numbers are. navin: in the city's with the data that has been published, they are running a parity compared to where we were. emily: you mean you think uber and lyft have the same market share? navin: in many cities in the u.s. you can look at third-party data

and markets like san francisco, the general bay area, the big metropolitan cities, we are doing extremely well based on third-party data, and i think if you continue on our focus on the letting customers, keeping new products, i think the sky is the limit is at the end of the day, the brand we have built, this business, we are a community driven site who is looking at something more than just economic profit to itself. a good example is just in the last 12 to 18 months, lyft drivers had made $350 million on commissions. we are trying to get back to this whole trend of the 1099 economy, micro-entrepreneurship is going because of platforms like lyft. emily: uber drivers have made a lot as well. lyft was first pressure. -- for sure.

they raised $88.75 million. this company's are fresh meat in a market where it was on his life are the giant in the room. what makes you think it has what it takes to have a long-term sustainable path? navin: absolutely. first of all, the market is playing in. globally, a 2.6 trillion dollar fashion market. no leader in that space online. they are not a retailer. we are a marketplace like alibaba and ebay where the business has effects. effects. we have 3 million stylists sharing 8 million items a day come up with we have a community where our engagement metrics are at the same order of facebook and snap. if you look at it today, we are not an e-commerce company. we are the largest social commerce company for fashion.

when you have that fact with the community, it is a very different model. we don't even take hold of inventory. is a people to people thing. people started selling used merchandise.now they have expanded to selling essentially like new merchandise. 3 million women in the business of creating online boutiques. emily: when you look at the future of e-commerce market, is it amazon and everyone else? or do you see other larger players emerging whether they are a straight economist company or social economist company as you call it? navin: yes, i think amazon has 50% market share as we know, so they will be the giant gorilla in the market. that is always the case. if you look at google, if you look at microsoft and its markets, could there be 10, 20, $30 billion market cap companies created along these massive markets? i think it is going to happen.

you look at off-line retail in fashion, that is louis vuitton, which is very well known. great company that has been created, so this is not going to be a fashion a winner take all market. amazon does very well when you know what to buy. they provide you the cheapest thing the fastest. the biggest problem in fashion is most people do not even know what to buy. that sort of community of 3 million stylists is essentially helping you curate and style for you what is best for you, and that is the model o nordstrom pioneered with the offline concierge. those are the things using technology we are seeing coming online today. emily: all right. thank you so much. navin: it is a pleasure being here. thank you very much. emily: coming up, we will outline airbnb's path to profitability despite a warning by morgan stanley about slowing growt.

this is bloomberg. ♪

luxurythe u.k. e-commerce platform far-fetched reported a bump in sales last year with global demand continuing to grow for high-end fashion. the value of orders and services minus fees increased to $780 million, an 81% jump from 2015. if you recall, a company got a

claim in the company woul. now to airbnb milestone. the home and apartment rental startup pulled in about $1 billion in net revenue for the quarter ending in september. this according to people familiar with the financial. airbnb became profitable during the second half of 2016, but is still under pressure to justify the private valuation of $31 billion. the news comes after morgan stanley put out a report last week saying that airbnb's growthless slowing down. joining us now is olivia, who covers startups and venture capital. $1 billion in net revenue.what it would take away from that ? >> it shows this company is really growing. $1 billion in net revenue for this past winter. last year for the same quarter, $500 million so a huge acceleration in growth, and that is not slowing down. actually, they are predicted to

grow about 60% year-over-year compared to this time last -- compared to the end of the year last year. the company is really on the fast-track, which is interesting because the morgan stanley report came out that said that growthless slowing down a bit. exactly. the morgan stanley report only looked at the u.s. and parts of europe. it only pulled about 4000 airbnb users. it did not take into account these two huge new markets for the company, which is latin america and china. china saw about an 80% growth year-over-year. latin america saw a 150% growth. in valueclick look like the company is slowing down because it does appear it is slowing a bit in the u.s. and in parts of europe.such a small sampling . emily: at the same time, we learned that airbnb is and has been profitable. we do not know to what extent, but they are on a profitability

streak. olivia: right. they have been profitable for 17 months now, which is a really good sign. most of start are not yet profitable. we look at uber and we work, they are not there yet. brian says he expects to bring this company to the public market within a year so it is a really good sign, but they will have to continue to work pretty hard to justify the $31 billion valuation. emily: you mentioned china. you said they are seeing growth. at the same time, we are seeing tumult. the airbnb ceo had to leave. olivia: step down. emily: we now know a little bit more about why. there.us what happened the cofounder of airbnb taking over as chairman of china. what are the dynamics now in play? olivia: to step down basically -- h step downe basically for personal reasons.

there was a relationship between him and another airbnb colligan the company felt it was appropriate that he leave, which is an interesting signal in the age of uber where i think they are trying to take a stand and say they will not stand for that kind of behavior of our company. definitely turmoil there. china is a huge heart of their growth and forecast so they will have to make sure that that market is really well taken care of. the person in charge, it is a signal they are taking it seriously, but i understand they are looking for leadership there and it is difficult to find somebody who wants to work for an american company in china an american tech company in china because it is difficult to build a successful tech company. emily: airbnb, you have a call tomorrow with the global head of policy. what are we expecting? olivia: very colorful character. expect a lot of jokes and how airbnb is competing with hotels. emily: olivia, thank you so much

for stopping by. coming up, a shift in a massive operation with amazon web services also having to do with china. why the tech giant pulled a chunk of thi out of china. you can listen only bloomberg radio app, bloomberg.com, and on sirius xm in the u.s. this is bloomberg. ♪ is this a phone?

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see how much you can save. choose by the gig or unlimited. xfinity mobile. a new kind of network designed to save you money. call, visit, or go to xfinitymobile.com. retail. under pressure like never before. and it's connected technology that's moving companies forward fast. e-commerce. real time inventory. virtual changing rooms. that's why retailers rely on comcast business to deliver consistent network speed across multiple locations. every corporate office, warehouse and store near or far covered. leaving every competitor, threat and challenge outmaneuvered. comcast business outmaneuver. >> you're watching bloomberg technology. let's start with the check of your first word news. the house judiciary committee hearing, attorney general jeff sessions maintained he was withre of rushing contact

donald trump's presidential campaign. quite he made some comment to remember.t as i >> pass for yes or no. there are reports that you shut george down when he propose that meeting. is this correct? >> yes. insiststtorney general his story has never changed. for some new ton massacre victims has asked the connecticut supreme court to reinstate a law student against america remington arms. the suit -- the decision is not expected for

several months. 20 children and six educators were children that shooting. are alarmedations at the worsening miniature and situation in yemen. the conflict began in march 2017 and has produced the world's largest humanitarian crisis. inillion displaced people 280,000 people trying to survive. >> the world health organization announced a rise in suspected cases. it is just after five: 30 p.m. here in washington, 6:30 wednesday in hong kong.

david is here with a look at the markets. we feel a little bit of the tailwind coming through. i'm looking at when markets it going, markets get going next of the top our. we are looking at stronger currencies and very wary of the drop of commodity prices in the last hour. just one less thing out of japan. hopefully we get a positive catalysts, but at the moment across asia in the negative. ♪ this is bloomberg technology. i'm emily chang. amazon web services is going

some -- undergoing some big changes in china. the company clarified the move in a statement saying aws did not sell its business in china and remains fully committed. the market in china could be worth $30 billion. joining us now in new york, .anaging director matt has more than 20 years tech.ing in text -- what you make of this move? i think >> this is much more of a political move than an economic move. it is a competitive market in china and not only alibaba, but huawei and potentially others

including tencent will compete hard for the cloud business in china. i think amazon is saying we had to comply with this, but are committed to finding a way to win in china. >> technology companies have tried and failed in china whether it is facebook or google or amazon's e-commerce business. do you think amazon has a chance to win in china? >> i think one of the reasons that have a chance to win is in cloud a lead computing services and pretty much everyone else is embracing the standards that aws has set the last 10 years. if they can bring customers with them, i think they have a chance to win, although the combination of strong players, plus some of

the regulatory advantages are going to make it hard with them. >> meantime, microsoft and google are nipping at amazon's heels. how much progress do think they're making and how threaten should aws feel? >> i think microsoft is making more progress in google is still in a challenging situation. they have strong leadership and applications and those are things that aws does not have and so there are significant advantages for microsoft. ongle is trying to push hard the fact they have done a lot of early investing and can make deep learning services available as well as their own set of applications and they have a lot of resources so they can be more aggressive and winning certain types of customers. >> within talking the last few

days about alibaba. now we are coming up on black friday. the importance of black friday is declining as we are seeing sales all year round, more shopping spread out across the year. you think black friday will become a thing of the past? >> i don't think it will become a thing of the past. the physical retail world needs to the runway a way to bring people in stores. of course, we have seen amazon make their own investment. the understand the world of digital and physical realm -- i think cyber monday which takes place after black friday will be

an important measuring point between who is winning and who is losing in holiday retail. >> we were just in seattle and all the talk was about each secure. >> it is up to amazon ceo jeff jeff bezos. how big a loss as a shoot q4 the seattle area? >> i think it is a massive disappointment there is a set of things in terms of talent in terms of the city government that would lead them to put this out for a second headquarters. my more provocative point of view is titled amazon will pick

a second headquarters. there are a number of sinners of excellence across the country. theyld not be surprised if major senators -- sinners of excellence for machine learning as they ultimately make decisions sometime next year. it is disappointing that seattle has not worked as closely to the oneut a way to be and only headquarters. >> am curious what you think it means for the tech scene in seattle. you still have giants like amazon and microsoft base their, but you think it is a blow for the start of seen as well?

>> no is the short answer. five have two of the top market cap companies in the world. the only other place it has to is silicon valley and they have three. even those other three have major presence up in seattle. what i hear is how hard it is to compete for talent with the big companies in the fact that amazon is still going to invest , theyroad friday of areas will be breaking talent to seattle. we would like to have it all. i don't think it is a blow to the startup scene. >> that always -- as always, great to have you.

>> meantime, youtube has announced a partnership with ticketmaster. feature enables users to i tickets. the deal will be rolled out in north america with plans to expand globally. >> coming up as food gop taxpayer works with her congress -- we will explain in a is bloomberg.

crucial details of your tax reform are being worked out in the halls of congress, but one provision is grabbing the attention of the tech community. the senate version of the bill requires employees to pay tax on top -- stocks options when a vest rather than when they are exercised. bye to discuss, we're joined the managing director. let me start with you. there are some good things for tech. the house and senate bills are different. break it down for us. >> you get stocks awarded to you which basically means stock

options. is sos the reason there much condemnation. a lot of times, they don't work out. you'll be taxed on the friday when you get them. >> your tax yearly or monthly. the house bill is more favorable . >> it is the opposite. it basically delays when you have to pay tax on your stock options. people basically give more flexibility about how and when they pay taxes. >> this is just one part. matt, how big of an impact movies to scenarios have on the startup community? is it first thing to say is generally good and accepted that having simplified tax reform is going to help the tax reform overall.

having said that, the senate provision is bad. there are three issues for a first of all, these are stock options. this is not even something i own in in many cases i don't have the right to own back, so on being taxed on something i don't even own yet. to pay the idea to have that i've invested in shares is like saying if your house started to depreciate and had to pay taxes on the appreciation before you sold it. and then the whole notion of volatility. and then, companies don't work out and they so for the price below that value and then i have to pay higher taxes, so for three reasons the senate proposal does not make any sense to me. >> is the house proposal there?

>> i don't think the house proposal is a necessary thing. it is a little bit more generous on how it treats the situation for stock options, but i don't think we should be pounding on the table for that. i think in the balance of things , very hopeful we do get age of tax reform the house piece is a little bit generous, but i've it is illogical and have negative impact to read the last thing it is a lot of big companies don't have this issue. this is significantly the disadvantage of private companies.

-- in our >> how would they affect the tech industry question mark quest it strikes me when you add up all these for smaller tech companies and relatively good for the big companies. some of the best stuff is thinking about taxing intellectual property and that is the basis on how these big --panies avoid paying tax may charge licensing fees and that is how they avoid paying so much. >> we have about 30 seconds left. what are your thoughts about some of these additional provisions question mark >> i thek the tax is good for overall system, particularly in

the united states. in we have seen a no income tax system and simplified system that really helps grow our economy. >> inks for breaking down all of the nuances for us. appreciate it. >> coming up, why lower oil -- es mcafee gulf region we will hear from the chief bahrain next.

>> microsoft has joined a growing number of companies pledging to curb their

omissions. this set a new target to cut and also by 75% by 2030. the goal is aligned with the paris agreement. microsoft maybe announcement during the annual climate conference where the force support despite prison transplant to withdraw. lower oil prices have presented him economic crisis for many countries in the gulf region. and -- >> the challenge in finance is generally the drop in oil prices has been a blessing in disguise. to makeorced government changes. you have seen some of those changes. >> i don't think we would have

government -- investmenten the toraction double from 2014 2015. over 700 million -- .700 million coming we are seeing record numbers coming in to the kingdom of .ahrain i think it is due to the openness and because i think the government is looking to attract investors to pick up the slack. is good, i think it news. kingdom grows.

what will it do to the other say? kong, singapore, hong different ones succeeding. i think we will see them develop. what about 2018? >> it will be hard to match that number. i expect we will exceed $300 million to $400 million. we managed to track amazon web services. it is the first investment hosting hub. thes a server farm to serve entire middle east and africa. amazon encouraged by looking to set up something. >> and that is happening question mark >> that is under construction.

weevil see that launched by the first quarter of 2018. it is a game changer in the region. it will bring super computing power to small businesses and allow people to move workflows to the cloud. it will produce costs. -- every government into any entity why they won't move to the cloud. avoiding0% of cost by our own data centers. what is the dollar figure from amazon? >> i can't disclose that. >> is a more amazon can do with bahrain? >> absolutely. we would like to talk to them about other clients of his is and also talk to google and microsoft.

we want our -- -- more data centers. >> with think this will develop -- gital we think the middle east should not be neglecting that. we think it will empower businesses. >> so amazon is a done deal. how close are you to getting google or microsoft to make commitments #>> they have to see the potential in the region which i'm sure they do. conversations. i can't say we are close to concluding anything, but we are hopeful. i don't want to speculate.

>> that was the chief executive talking with our own erik schatzker. oft doesn't for our edition bloomberg technology. that does it for now. this is bloomberg.

announcer: from our studios in new york city, this is charlie rose. charlie: the essay has been grappling with the major cyber security breach. the new york times reports some the agency's most sensitive information has been stolen by an expert group of hackers. the paper describes how it is shaken the estate to its core. david is one of the reporters who broke this story. >>