could vesa you $400 or more a year. it's a new kind of network designed to save you money. click, call, or visit a store today. ♪ san : i'm emily chang in francisco, this is "bloomberg technology." to limit getting ready chinese tech investment. security believed to be at risk. uber's london life line, the rests in a judge's hands. t may have won a key regulator over to its side. and our interview with liu, morning side founder, a stake holder in shall

me. how it is gearing up for the buck li public offering. plan, under the new treasury secretary steven nugent ill move to limit chinese tech investments in the us under the guise of national security china's ministry of correspondents didn't respond. secretary nujents took to saying to dispute it onbefl of donald trump, the tory is false fake new, the leaker doesn't exist or nose the tatement well: oining from new york to discuss, isaac stone fish, a senior fellow at the asian and in studio editor

brad. starting with you, reading the lines or tweets,way is your read on this. a bear areke there's bear there. he seems to have been caught wall street he journal story talking about on , and seems to reflect fights between tradehawks like manoora who wants a more balanced strategy towards china. emily: we are seeing us stocks dragged down with this. what is the impact on us tech companies? >> there's a lot of fear. micron down 5%. intel 3.5%. china is the biggest tech market. a had a lot of success in some sectors like you limit the ability for us companies to sell china, you put pressure urine on china to beat. it's a global supply made. chip is made in the us.

goes to china to be completed. smartphone and comes back here. there's a worry that there's not of nuance in the policy. emily: there has been an impact entertainment in chinese technologies, what is titimpacts so far given the for tat, and what could the impact be. investment - nese a roughly 90% drop in the first year onths of this compared to last year. t's a huge difference in 2018 versus 20 #. wheel tech companies have not hit. the hard eggs they have faced a lot more difficulty in facing a reception in silicon valley and beijing, in terms of policy, what is interesting is that on thursday, chairman shouldin pin and said in utives

the west you have the practice other cheek. in my country we punch back, before the news broke that chinese tech firms can face in the united states. i think it will get worse. emily: you were on the show a days ago, isaac talking with he investment in the chinese e-commerce company. will we not see more deals like that? >> i don't want to say it's the an era, but that was spot we the last bright may see for weeks, months or the with us tech companies cooperating. tech reacting? >> they were trying to do everything they can to make an policy, last month it was reported that tim cook the oval office asking for a more nuanced response, for a change in policy, they are doing what they

can. the u.s. administration going to listen. is trump open to this. >> we'll see. seen a lot of economic actions couched in national terms, i don't think they have shown a lot of flexibility. theo you get the sense that president is concerned about a trade deficit or national security? >> i think he started this out trade deficit.a me complained about the trade japan, it's a policy he's been consistent on. a lot of people around trump has a fear that chinese investment rings national security concerns, especially with major telecommunications companies. people in the administration are getting trump to speak away from focussing on a trade eficit and focussing on national security

impliationations. say it's not a trade war yet. there may be more leverage to wul. how many are there before we escalate to code red or whatever call it? o >> both sides have a lot of for this.tools to use the two economies are deeply integrated. a na, for example, there's lot of major brands that see future.s their i wrote a piece about starbucks, and great presence in china, and fear and possibility that chinese consumers from urging bicot e government starbucks, for example. there's a lot that beijing can it more difficult for american companies to flourish in china. happens, and if you have hina pushing against tech c.e.o.s, like apple. they'll go to the contact white on beijing bby

ehalf to a degree, because theyant tension to subeyed. stone fish and brad, thank you, we'll condition to follow elon mausk had days to make out on his pledge to pump 5,000 tesla distance. how will they how will they accomplish this? a giant tent the size of two football fields. the canopy an assembly lines to create model 3s. musk called it pretty sweet. critics are not impressed. coming up, oousher gets a win as the london trial begins. what it means on its fate to tens of thousands of drivers ext and if you blik julius bergman news, check us out on website. and this is it bloomberg. bloomber

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emily: uber's long-term desire to operate in london may have the london from transit authorities, moves to rotect passengers and driver appeared to apiece transport for ondon reducing a big hurdle to operations. it coincides with the start of a tsl's in london over reversal to extend the permit to capital.n the u.k. i want to bring in carrio line hyde. newcomer e tech covering uber. caroline, walk us through what at the hearing, it will

go on for several clays. you are right. it will go on for several days. inst it's in the westminster magistrates court. reporters and h the key lorders involved. lemera representing uber, and a lawyer representing heard in for london front of a female judge. currently aridge, the u.k. manager for uber, he was there cross-examined. plenty of mea cull pea from europe. media is the he digs that tsl took last year was the right one. perhaps they were not fit and of a to be in ownership licence it run in the capital. mily: eric, what are measures that uber has done to apiece the

regulator. eric: they put some independent irectors on the u.k. board, restricted how long drivers can work in london, a cross-border are making sure drivers working in the right country. the shared some data with city. to sort of a slate of reforms to appealing for regulators. emily: we have been hearing from rivers, many have goodwill towards uber that you may not expect. yes, hundreds of pounds have been spent. his is basically getting into ooubers and asking drivers how they feel. the commissions are high and they could have ab easier way of processing incidents. but notably there's goodwill coming from the drivers. they feel that, look,

they are supportive. they are love the flexibility offered. this is what you hear from plenty of drivers or delivery for big economy company, in london. we areuber, and they say paid decently, we have flexibility, i can spend time family and i'm rewarded. don't want to go back to my old job, a long disangs lorry driver. offered.at i'm perhaps i could be offered a few more safety measures, that's offered.y are they are getting insurance packibles they can tap into yuber. from for an 18 asking month licence as opposed to five years. eric: yes. this we'll go through potentially in another year and a half. eric: they are willing to make steps. there's a lot of confidence that under the c.e.o. they are new face, making

changes and in 18 months will now, and they an are trying to say, yes, we had it, wes before, we admit are brought in new leadership and we are changing. there's optimism if they go forward. they'll look better in the future. emily: caroline, whatever here doesn't crust you others.fect uber, but >> clearly, uber had its licence last year, another company were looking to enter germany, andked by they didn't get a licence allowed. day of ay after a operations. company waiting in the wings to see how it unfold. receptive city, they'll try to enter. for is a competitor

that wins out if uber struggles win over tfl. that looks unlikely. a us start mpany, up. company e backing of a running mercedes vans, they are teaming up. and entered the market in april. some of the drivers that to said if oke things don't look too good for the new may look at entrant in the competition more pleasantly. will do well. emily: what is next, eric, as we out.h the hearing play eric: there'll be a ruling. it's what we are waiting for. they can appeal and continue to operate. ongoing - it's an situation, uber is not about to be off the road soon. it's a win, you know, major victory and putting them good.n the path of the

emily: and a big victory for the coe. ric, newcombe e, and caroline hyde. sticking with ride hailing, a launching into the australian mark. aul allan filed this report from sydney. reporter: it's a slow and a ride sharp for sharing conversations in australia. chuxingment the city has been trialling in melbourne. here? sydney and the rest of australia we'll have to wait. he australian and new zealand boss says they'll take a with feedstep by step back from melbourne shaping the launches elsewhere. been raising capital to $4 million ion, a round raised valuation to $66 billion, with sources saying it cash on hand of $12 bill

be, discounts up to 50% will offered to riders. drivers this sign up early for incentives. the ride sharing market in australia is getting crowded. uber here, and d. olver will join taxify and on the streets down under. coming up, can chow my's up toon to go public live the contact open. a decision to postpone the china half next. "bloomberg tous on technology." and tick-tock on exiter, this is bloomberg. bloomberg.

♪ emily: chinese smartphone maker is on a way to a $6

lifting. us it may hit a snag in hoping to by h the valuation suspending the asia half. stephen engle reports from beijing. >> the decision to postpone a simultaneous listing in shanghai with a hong kong i.p.o. could those to list at home. the hong kong i.p.o. is set to the biggest in two years, to aise about $6.1 billion us, it's a considerably shaved down offering that was expected to $10 billion, the company's cfo said there's no time frame domestic part of the lifting. scrapped it iaomi because of dinses with the regulator, xiaomi said it had no csrc. with the nvestors may dispute the valuation, market at up to 23.3

imes forecasted 2019 earnings, making it twice as expensive as tansit, pricier than the biggest chinese internet company. says it deserves it because it sees itself as an e-commerce et and company rather than a lower player, they began to operate last night. look at condition a xiaomi's i.p.o. as part of the series.china ounding partner tells todd mckenzie why he hopes the largest i.p.o. will pave the way deals in the region. > hong kong started a new lifting structure, and xiaomi the first one to file under the rule. that i.p.o. will be for ssful paving the way more chinese innovative tech hong kong as o to

company.er interesting > what are your views on the changes around domestic listings, the moves to encourage list in the s to dom sac markets via the c.d. r plan. r rules are e c.d. interesting, because many of the bigger tech sful chinese companies chose offshore markets listing. the fundamental change in china listing requirements that enable similar companies of the future. "t"s to be able to list in china, a lot of people primarily on the c.d. r element of it. just one small portion. the new change

encourage the unicorns to list a lot sooner, a lot faster. alley ba ba and -- alley ba ba in. place and others -- tech very and others, had making your job more difficult in the start up. it has sometimes make the job difficult. hand, they are an interesting avenue of exit. bought out both companies as well as stakes. early investors such as xiaomi. regard, certainly it added more exit possibilities. terms of the overall entrepreneurial

a more subdued is stment environment probably healthy. compete that intense llegals between ten sen and alibaba will it grind on in. >> i think it will grind on for longer. both have a strong ability to do well in the or business. well in the or business. the network is on the weaker ecommerce side and then now fuelled by payment. that type of effect. they could get into a lot of new be ness and continue to successful. not too t's probably early at least for the

to think about encourages and how to the growth of the home champion, be minulf their ffect on the overall start up environment. yet. n't been detrimental but in uncontained and unchecked in years e dangerous to come. emily: that was venture partner's founding partner duang viktoriya tomova men's. mckenzie. we sit with nas berg's c.e.o., next. at wal-mart's members only shopping experience. black joins us, this is perking.

-- bloomberg. ♪

♪ emily: this is it "bloomberg emily chang in san francisco. friday africa's biggest company 72% increase in full-year earnings. credits toifing and ecommerce. it's one of biggest if under the radar tech investors in the 31% stake relied on a n a chinese giant tech sen to vernt profits. it s starting to bear froo. sold a 2% stake. and meted a 1.6 million by the of a state in indian

start up flip cart to wal-mart. us is naspers c.e.o. bob van dijk. story of how naspers transformed from a print media company. tell us about the recent share sales, why did you think you of dollars illions now to build the nas appears of the future much. bob: thank you for having me. the main reason why we freed up more capital is driven by opportunity. we have been focussing building our e-commerce business and classified and entertainment and online food delivery, and we scale.ting to we realize there's further opportunity for us to pursue and to shore up the balance sheet and give the capacity to do that. model of finding a great business and entrepreneur, putting the and making a him great company grow. >> to walk away from a small is risky given how the

company grows, where do you plan money?the where do you see that opportunity. >> what we see, basically. ten ten is an amazing k one of the most impressive stories anywhere in the world. 120 we see is we've built businesses, and they are not done. looking forue to be the right entrepreneurs, we find them. we just them and give them a lot of run way and do it again again. a good example is flip cart in india, we found an opportunity founder. backed a that was in 2006 in ind -- 2007 an ecommerceing at dream, where there was no credit and structured detail. we backed him and he made

something great happen. that's what we do. stake brought the small in tencent in 1951. million. up to 150 i am sure there's dramas on whether to get into games or e-commerce. you've been ringside for that. your u tell us more about shared history, what is it like of be on the front line tencent's growth. bob: it's probably the company by an incredible leadership team in the world. they care ave done, about the customers, they start ith the customers and technology, and they have been taking a view on what is the we can sible product offer. hat's what we do as well in autoinvestment. we find entrepreneurs with focus. trent is by far the best example

of doing that, that's we do.ntally what >> your stake in tencent is over more than naspers all. and the performance mirrored tencent. what is your strategy to close the gap? > we are a company that is it diversified. you expect a discount to be for at. ormal to trade for us, there are structural actors that make our lives a little different from others. fundamentally, what we are finding the ing is entrepreneurs to build great and the last set of results is a good example where growth. strong accelerating year over year, and core ecommerce surging. building great businesses, do.'s what we emily: you said you look at isting some business units individually, curious which of

your businesses do you think are listing ready. bob: i think at this point in ime we are looking at a broad set of options on which over time can help us to unlock the value, there's a broad set of options that we have. we have done it many times in the past. an example, we investeded in online food delivery called ago.very hero a while that company went public and has been on a fantastic ride. the time. it all which businesses would be better public e take them to a situation, and we make our sources. you give in sight in you are ctural changes considering and when and where the businesses could be listed. look at the company, - theit is today, and the questions that we face, what we

really want to do is take a step you make change to the contact structure of your company, you want them to last. want them to be short term. we look at a number of that could beions structural d other changes in the portfolio. a time where we can talk about it. that.get back to you on emily: nas per is the biggest in africa, it's not doing that well as others is entering the market. is that a business you would considering selling, if not, the plans for it. bob: if you are familiar with in should be share had a toughhey have time. currencies struggled. s a result our business had a tough time thx year we increased

entertainment system profitability, on the back of a turn around programme that is getting a broader subscriber pace, and reducing costs. well.s working we are focussed on continuing that. t the same time internet penetration is lower in africa, it will take time before has access to great broadband. we want to be ready for the consumer habit. we launched a video demand has grown on the continent. roviding great local continent around a continent that people love, looking alt local languages, the uptake has been great. do more about that. emily: a strong part of your classified.ness is people selling stuff. you are competing with facebook marketplace, facebook has the benefit of scale.

they don't need to spent that attract new customers, how concerned are you about the facebook? >> no one should underestimate facebook. in the last few years, if we take a step back to ago, we had an amazing from reneur whom we knew before. we invested in his company before, he came to me and said i build a business in the us to be the most vibrant trading for used goods. we knew he did it before. we listened carefully and backed him. if you look at what happened cop year, let-go, the involved. it was the second fastest the united in states in any category, they and 100 million installs, have been selling 400 million its in the united states, and after two years. clearly they are on an amazing

change the way that americans delayed second hand goods, it's an amazing story. you are still figuring out what to do with all the cash. in china jor success and india, what region or most intrigued by? >> we are vet excited about as an investment sector. at this point in time already, on the mobile internet. internet is the second-largest market in the world. after china. you look at the potential of martphone growth in india, the online population could double. and could catch up to the unparalleled levels where china is today. amazing growth market is what excites us about india, noticed is indian andepreneurs are tenacious, they have great ideas.

great car we found a champ, we have seen other great businesses, for example, we an online food delivery business swigie, which explosive growth driven by a large marke a big universal need that the addressing, and an entrepreneur that runs with it. top the success of tencent. bob: it's a great question. look at the history of internet investing, i don't there's another company delivering a similar return. that's the benchmark. if that's s failed the bench mark. i think the model of finding an of people thatup have a vision to build an amazing business, that's what we time. the i think that is where you'll see more of us. going forward, how do you expect to continue to advise tencent. like to see them o and not do when it comes to

expanding into new markets. positionou look at the that $0.10 has in the market. there's a lot of reason to be i've been ut what doing. as mentioned before, what i how mentally like is customer and product focused they are. if you take the approach where the ave an obsession doing right thing, you take the largest internet market. starting ambition, and willingness to invest in companies. they have an eco system of the nies they support with model. and it has become very large businesses in their own right. i think that is where we are excited for the future. >> all right. c.e.o. bob van dijk joining us from london. apple could tweak its audio strategy. air pods, a home air pod and

quality headphones could debut, in the process apple is xpanding with fox con and shifting away from smaller tech.s such as inven coming up. wal-mart's push into personal shopping. how it continues to compete with next. ant amazon, this is bloomberg. ♪ ♪

♪ emily: wal-mart wants to be your personal shopper, if you are enough to be invited. the biggest retailer unveiled black, a concierge service. a month people can text wrapping gift included. jet black is the first business

wal-mart store number 8 tech incubator. of jet black, jenny. thank you for joining us. talk to me about how this works. are.hat the goals >> sure. jet black is a personal shopping message. er text text us whatever you want. whether it is laundry detergent. for a killed's birthday and designer shoes. you. get it for we send you three recommendations for the product. we send in a courier style delivery. return. ree we are trying to take away the shopping. ecommerce emily: it's not just wal-mart and jet.com product. order want to the something from pottery barn, you full of that too. fulfil the wal-mart and jet orders to drive traffic to

companies. >> the goal of vet black is to black is to give customers the best ecommendation for whatever the product is. we'll serve up whatever the store or vendor is the best recommendations, it may be a wal-mart. jet product or it do be a from elsewhere. we want to find a best match for to develop that relationship with them. e are trying to get smarter to wal-mart can understand brands or product they may not carry that a consumer wants. over time they'll add the product to inventories as well. are using it so far? what are they buying? how are they using? in new york city for customers, we are invite only. we are scaling the business the launch, and trying to uphold an experience while business.ng the it's striking the balance, we

class to givet in you a seamless experience letting you save time when you shopping. plan how quickly do you to expand this beyond new york. >> we are moving quickly. this is the second business i have started. we have grown another team in new york. looking at other cities. we have indications of other areas throughout the country have excitement for the service. it will be interesting to see - an aunched in new york city urban center. what does the experience look that maysuburban areas not have the same access that do.ks in new york we'll experiment with a few different market and we tweak product market fit around the best pricing, delivering, packaging. start-up ry much a type experience in the world's retailer, wal-mart. t's great to see them being

entrepreneurial. emily: walk me through the price point. sustainable.s that ot the same as amazon prime which is $12.50 a month. you are aiming to offer high touch.at is >> absolute lip. we'll find current mark tit. current pricing is $50. for this consumer, it's a couple baby-sitting. the customer typically has young children at home. them. the greatest saving is time saving. the first is finding the product. a customer shopping for a travel spend hours reading through reviews. that researchtake them and arm them with the best product fit. and we save you time where you are trying to remember to buy aper towels, you need a birthday party. the mental clutter taking away

being e day to day and present. for the customer, $50 in time the free et alone shipping, it's same or next day for most its. free gift rap. the returns are hassle free. everything.e of it can quickly justify the $50 a not more.e point if emily: thank you jenny, c.e.o. of jet black. eye on you guys. instagram is estimated to be $100 million. n the facebook photo sharing a billion eaching ctive users will see revenue move past $10 billion, it could account for 16% of facebook's revenue, up from 11% in 2017. coming up, all week special of what may be the venture e and chinese rap tall. our interview with a mying

morningrichard liu from tech. this is bloomberg. [ ♪ ] ♪ .

♪ emily: an early investor in is set for a wind fall. china of the venture series. nvestor richard lu talks about drove his decision to invest early. we invest in the early days. based on andecision idea and the people. secondary market make the judgment through the market. have another view, is user o observe how many react to the contact company what it deliver to them. they don't know this company

background. if they are a ea great entrepreneur, they know small stood studio. about it. azy they are really loyal to the product. they take a huge risk. os. stall their that means we already got market the competitor. without. when the company decide to raise and valuation 1 billion, they have revenue. give you a return in the future. cheap.xpensive but is >> how much money did you invest. million. al more than 100 million.

most successful and my companies in china, you are a major investment holder. >> this return is great, fantastic. we are happy about that. the chinesew always know the history of what is the n. that perhaps no one has heard of but will hear years.in five >> we invest in another company, an auto company. related.nd ev is that's why we invest. horizon robotics. valuable tructure is for all the smart devices. and one of the biggest smart is a car. basically we embrace the two companies. increasing. are they made great progress.

stage.in an early >> some of the v.c.s we speak to rate. minimum hit they have a minimum number that need to grow their valuation by certain amount. do you have a minimum bar when it comes to your investment. mark for success. >> sometimes we say venture is an art. you can set up whatever you feel comfortable and expect. but it never works. do.ever you can >> what we have, invest in uncertainty, we have the principal and the strategy and the planning. the k.p. r. it's very dangerous. the impactworried by of trade sanctions and a trade on between china and america a tech company that is invested. >> in the long run i don't in the short term we

orry about the impact in each success tore. the united states has a higher word, and we this have the - working hard. have the grave engineers. paying people in this word. they can address the business opportunity in i'm d states and china, concerned. and can be so intelligent smart. they can make and have a choice. that. eve i believe it. richard li was founding partner at morneside. huge loss and strong grose hong kong i.p.o. it is looking to raise bigger in ride compete hailing. and follows xiaomi, targetting a i.p.o.ng a point ofmeituan is

contention with the united states. that does it for this edition of "bloomberg technology." tomorrow we'll hear more about the uber issues in london. and we'll be back. this is bloomberg. ♪ retail.

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>> trade tensions rattle u.s. stocks. china and europe from its retaliation to president trump's threats. >> tech shares were hardest hit but the nasdaq down more than 2%. the u.s. familiar also weaker. >> officials are downplaying trends to limit chinese tech on national security grounds. >> but some american icons are feeling the pain. harley david son and jack daniels among the losers