>> i am emily chang in san francisco and this is "bloomberg technology." coming up, coming up, president trump steps back from china, deciding against the harshest measures we will discuss what it means for tech companies. man leadingk to the uber's legal battle on the heels of its getting a license to

operate in london. uber's chief legal officer joins ahead. amazon is rolling out a perk for prime members. from groceries to health to financial services -- parties bets paying off? >> the white house moving forward with plans to limit china's tech investment. but in a less confrontational manner than previously reported. the president is looking to congress to strengthen the committee on foreign investment, to keep companies from stealing u.s. intellectual property. steve mnuchin hailed the move in talking to reporters on wednesday. passes,this legislation we will have the necessary tools to protect technology. day, bloomberg reported that mnuchin and the treasury department are ready to use a where law.

that is no longer the case. we have our guests here to discuss this new plan. shelley, i will start with you. what happens now? >> donald trump is going to rely on legislation to strengthen the laws that already exist. it is already a transparent, interesting group of folks that are looking at each individual investment coming in and what they want to do is strengthen that even more. that means taking a look at joint ventures, which used to be under the radar. this idea that, we're just not going to the big deals, but also some of the smaller deals coming

out of china. >> as someone investing in china and u.s. technology, how does this affect your strategy? >> we look at this as a bone. -- as a boon, locally. we thought this type of aggressive action actually led to greater self-sufficiency. amongst governments, regulators, universities, venture capital firms, they start to breathe a new crop of businesses here, to replace the u.s. components that might have been taken out of the markets. i think this action and things tions opente sanc people's eyes to how empty it is when it comes to core tech. it led to a push over the last few months toward businesses towardbeing developed,

businesses where we feel we can develop sufficiency locally. one thatected, but started a process where you will see more innovation and development in heart attack and deep tech in china. what is your reaction from people in beijing as these developments have played out and gone back-and-forth? >> it is a bit of a roller coaster. i am oftencan, referred to in question about the true meaning of all the what is not. ae overall view is trump is businessman. he understands the impact it would have on u.s. businesses and shareholders there. likewise, many of the chinese

businesses are backed by venture capital firms. much of that money comes from u.s. investors as well. the view was that while a lot of these measures were being used, ultimately, the statement would -- statements would be mitigated and there would be huge damage done to local businesses. emily: we have already heard from lawmakers. senator john to boone, on the senate finance committee. >> i think this is a better course of action. they're going to use a legislative approach and i think that makes more sense. i think this is walking back and -- from the potential retaliation from china. it represents a more logical approach.

shelley, what are we expecting in terms of legislation to come out of congress? >> we are expecting this bill and it is going to mean more scrutiny and more staffing involved over the company's that are engaging in these deals. we have seen some venture capitalists pulled back. -- pull bkac. we have seen chinese venture capitalists pulled back. the idea is maybe that is going to happen more if the u.s. increases scrutiny, but to an earlier there's nothing like point, telling someone you can't do something to rub them up to do more. if you're going to tell chinese companies, you cannot invest in our businesses, you can bet that

is going to rub some of these entrepreneurs, saying, maybe be will need to double down and create our own technology. it will be interesting to see what happens next. will this spring up more innovation in china than what people were expecting? emily: we have already seen chinese ipos not performing as well as expected. take a look at my bloomberg showing recent hk listed ipos. up.ave xiomi coming i understand the founder is an investor in one of your fines. any concerns about how it will perform?

>> not an easy time to come out right now. you mentioned a number of underperformers in hong kong. there are new regulations in that option of taking this off the table is frustrating many. not an easy time to come out and that is complicated by the fact that xiaomi are new species. valuationg new methodologies that most of the company profiles understand. it is a hardware company, software company, iop's, e-commerce, services, it is difficult to put one finger on it. i think a lot of people are scratching their heads today, both institutional as well as individual investors, trying to figure it out. another bigabout one? companies,one of our

one we have been bullish on for this is veryme, much an aggregation of a one of the services we are ready no. bookings, your shows,iling, tickets for the number is still really powerful there, the types of numbers they generate. gone up over the last three years in terms of revenue. the ipos will come up with a lot of momentum around the business iaomi is starting to feel less of. emily: thank you both.

his beef is continuing with anyone who has a negative outlook on tesla. this time, it happened on a companywide email obtained by bloomberg. is inman sacks analyst for a "rude awakening." he expected tesla to deliver on model fleets, short of the expected number. tonyg up, we'll hear from west on what it is like to have one of those challenging jobs in silicon valley. if you like us, listen on the radio app and on sirius xm. this is bloomberg. ♪

ft just got a vote of confidence from investors. money it has received will allow the company to better control the timing of its ipo. a slew ofeen facing legal issues around the world, including multiple criminal investigations here in the united states. but the company has pled a new modus operandi under a new leadership, including chief legal officer tony west. i spoke with him about how he is tackling these big challenges ahead, and asked him about the company finally getting its license to operate in london. tony: it is a win. win that requires us to

demonstrate wend are fit and proper, in the words of the license. i believe we would not be here at this point, had we not in the preceding eight months, where the ceo really engaged in some extraordinary personal diplomacy. there were a lot of other significant changes we made to the way we operate. we would not have gotten to this point had tfl and other observers sensed a change in the way we approach that market. you are working with regulators in arizona, where a self driving uber killed a pedestrian. we heard the driver was watching "the voice" on hulu. can you share any updates on

that investigation? tony: i can't really get any updates on that investigation. we are cooperating with the ntsb. i want to say what happened was a tragedy for her and her family. it is something that shook the company. the folks working in the atg units, just brilliant people. many came from carnegie mellon to work on this new technology. it,reason they are doing they believe and i believe that vehiclesy autonomous are going to be safer than a vehicle driven by a human. there's a lot of reason to believe that will ultimately be true. that journey is difficult. when this happened, it shook people to the core.

we are cooperating with the ntsb on their investigation. hours after the incident, they ordered a top to bottom safety review of our practices and culture. that is coming to a close. it has been a long time and we are pleased with some of the recommendations coming out of that's, and it was led by a former ntsb chairman. there are things we continue to do to try to improve safety of the culture and our platform and again, we see it as intrinsic to the brand. emily: one of your big moves has been ending forced arbitration, meaning that employees, drivers, and riders can pursue claims of

sexual assault and harassment in public. uber is a leader and this is very uncharted territory. corporate america does not do this. should more companies do the same? tony: i think so. we worked with advocates in the sexual assault, sexual harassment space for some time to really understand the issue and when it manifests itself, how do you respond to it effectively and more importantly, how do you prevented? -- prevent it? one of the outcomes was our dissension for mandatory arbitration for individual claims of sexual assault and sexual harassment. one of the reasons is it is so powerful in the conversations i've had with advocates -- and importance of returning agency and a sense of control to a survivor of sexual assault and harassment.

, which strips agency and control from the individual in a way like nothing else does. the last thing you want is the process that it imposes more control or revictimization in some sense. i'm proud that we took that step. i think others should take it because i think there is strength in numbers. emily: the supreme court has upheld the president's travel ban. 150 million people cannot travel to the united states. at the same time, the president is dealing with the blowback from legal family separation at the border. is the law broken?

tony: immigration laws have been broken for a long time. i believe when it comes to separating children and families, we are a better nation than that. that does not represent the best of who we are and our values. this is my opinion, it is not the opinion of uber. i don't make the decision. as many have said, the supreme court is infallible because it is final. that is the law of the land and we will live with it. emily: some of my conversation with tony west, uber's chief legal officer. coming up, china's booming tech sector. jenny lee tells us where she sees the most growth and opportunity. bloomberg technology is live streaming on twitter. be sure to follow our global breaking news network at tictoc on twitter. this is bloomberg. ♪

22 uniforms -- unicorns have one thing in common, investment from gtb capital. jenny lee sat down with mackenzie too tom say where she sees the most growth in the chinese tech sector. we call it our e-commerce upgrade strategy. we have investors in some earlier companies like alibaba, which includes cross-border

e-commerce. we are seeing innovation that is happening in off-line destruction. we want to try and assert consumers better -- and serve consumers better, not just online, but with what they are shopping and buying off-line. online e-commerce, integrating isinto off-line, with data, a big piece for us. of growth isea around social. you can only find a facebook every 10 years, but then you are great. in china, you can always find a facebook-light type of -- facebook-lite type of business model.

there is always new destruction, whether in the form of livestream video -- but we want to target different segments of users with content and video and livestreaming. companynvesting in the that is the number one -- produces the number one fitness app in china. we have another investment in a company that only targets generation z. there is quite a bit of global growth within social. companies may be taken that model overseas as well. overseas ashat model well. we have an investment in a , that wasmpany

recently acquired. the topsponsible for five or 10 social apps in the united states. seeing chinese apps, social apps, going to the united states and southeast asia. chinais a similar app in that is one of the largest social apps in southeast asia. tom: how many exits are you looking to pull off by the in of 2018? 2018?the end of six or seven companies. these are looking for ipos. i also have four portfolio companies.

washingtone beijing trade tensions playing into your decision? jenny: we're watching these developments carefully. we need to know which direction this is going to go in. feel bothrt-term, we countries will not benefit from increased retention. china may come out ahead in the long-term. capital managing partner jenny lee, speaking to tom mackenzie. coming up, you can now get discounts of whole foods,. this is bloomberg. ♪ what's a gig of data?

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>> this is "bloomberg technology." i am emily chang in san francisco. amazon prime members when i get 10% off at whole foods nationwide. amazon's expansion of whole foods grocery delivery and five new cities and apartment delivery highlights management , focus is -- focusing on online shopping pain points. phone is our the luke capital analyst, anthony,

here with me in san francisco, along with our bloomberg executive editor. anthony, why raise the target? ony: amazon continues to eliminate the pain points for online shopping. the more people shop online, the more they will shop on amazon. it has over 40% market share in terms of u.s. online purchases. like amazon. the amazon locker inside the apartment building, it is better for residents, and open 24/7. amazon can package with any shipper. and it is better for the buildings because buildings are being overrun by packages. we do like the rollout for whole foods of savings for prime members nationwide and the fact that they are now delivering in 19 cities, large u.s. cities and

, will be doing more. we think it is going to spur additional grocery orders. these are ways that amazon is making it easier and easier to shop online and shop at amazon. emily: let's talk about the whole foods rollout. some people have contended that amazon has made whole foods worse, not better. people do not understand what they are doing but they are , trying to get their 10% off. is it really paying off for amazon yet? brad: i think it will. there used to be a saying that amazon has many small advantages but they need to create a rope ,of them together. many big advantages, with hundreds of millions of prime numbers and hundreds of whole foods stores. there might be some pain points to get prime shoppers to will foods but i think it is going to , pay off more.

emily when is it going to pay : off? anthony: it is already paying off. like brad said, there will be curve forlearning consumers, as well as whole foods. but this was a win-win. jeff bezos says that your profit margin is my opportunity. whole foods had significantly higher gross margins than conventional grocers. they are going to invest in price and delivery to gain more market share. emily let's talk about some of : these new businesses that amazon is pushing into, paring up with american express, the health care initiative. we know is going to run but we do not know exactly what they are going to do. how big of a piece of eight --

of the pyre these businesses? brad: amazon wants to sell office furniture, artwork, power tools to companies. just like they do with credit cards to consumers, they are going to give it to small businesses so they can go and buy more with the credit card. looking to come up with maybe an alternative to the corporate, high deductible health care plans. i think he is going to have a pretty clear blank , sheet to go and try new things and cut down on unneeded medical procedures. a journalist, he can communicate with challenges and the opportunities in health care better than anyone. wants anthony, germany amazon and ebay to be liable for a vendor sales tax. do you think this will hurt

amazon overseas? anthony: i really do not think so. if you look at amazon's history in the u.s., amazon was originally very resistant to collecting a sales tax, but at some point they acquiesced, and their business did not skip a beat. the thing to remember about they are already the low-price leader, whether they collect sales tax or not. i do not see that being a major issue for amazon in germany. emily: how about the scotus ruling does well on sales tax in the u.s.? anthony: we wrote a report about that a few days ago. it will not tax any products that amazon sells itself because amazon is already collecting that tax. it will affect amazon's marketplace vendors, but once again, we do not think much. if

-- we don't think that will be much more amazon. it impacts itself to the point where small businesses cannot sell on amazon anymore, amazon will pick up the slack. it'll will be additional revenue for amazon. they will have to account for the wholesale price, not just the commission from the third-party seller. we really, really do not think it is going to move the needle for amazon. emily: another situation where amazon emerges unscathed? brad: maybe not unscathed, but it is the smaller seller that is not up for the technological challenge of tracking sales tax across regions that will be hurt. amazon, probably ebay will be fine. emily: brad's stone, bloomberg tech, along with anthony chakumba. coming up, salesforce has announced a $2.5 billion investment in the u.k. over the next five years.

we will talk to the u.k. secretary of state for digital culture, media, and sports. this is bloomberg. ♪

the pay government is making it a point to show the country's tech scene -- emily once again, : the u.k. government is making up points to show off the tech themes the u.k. as hoping to be a destination for ai and cybersecurity investment and implementation. it unveiled a center just weeks after announcing billions from overseas with salesforce. caroline hyde in london has more.

caroline: salesforce announced a $2.5 billion investment in the u.k. over the next five years. i had the chance to sit down with the u.k. secretary of state for culture, digital media, and the sport. about opening the london cyber innovation center, and how much he thinks tech giants are willing to keep investing in the country. >> large technology companies from across the world are not only welcome here to invest, to expand their operations, but they are doing so with great space. salesforce, you mentioned, over the last two years we have had major investment decisions from apple, google, ibm, amazon, and further news from amazon, samsung opening a facility in cambridge. there is massive investment. it doubled from 2016 to 2017 and we want to keep it pushing in that direction.

caroline: what about the regulatory environment? copyright law now is going to tackle facebook and google. how much do you think the u.k.'s regulatory environment is a blessing or a curse for these companies? >> we think there is an opportunity here, too. the u.k. traditionally has a good track record of writing regulation that gives us a framework within which people can operate but also, is very , strongly pro-innovation. sandbox developed for contact, -- sandbox developed for fintech -- you need to allow innovation, that presumption something is okay,

and if not, the regulator will have a conversation, as opposed to being ok before you can move anywhere. we have a very pro-innovation regulatory staff. we are constantly changing the law to try to update that. before parliament today is the autonomous vehicles bill and that will make a great place to run a thomas vehicle safely and -- a thomas vehicles safely and securely, but also harnessing the new technology. the data protection act brought the legislation into u.k. law, but also exercise to the number of innovations to be -- litigations to be more pro-innovation. caroline: some of our companies have been born and bred in the u.k.

and have consistently become targets. what do you think about the consolidation in the media? selfe -- well as being a -david -- self-digital culture with media and the sports? matthew: i am very careful to ensure the decisions are taken clearly and objectively based on the evidence. we obviously had a very detailed process looking down at the fox , takeover of sky. the final details of how that could work without causing problems in terms of media plurality are now out for consultation for the next week before we come to a final decision. the comcast proposed takeover, we looked at and decided it did not raise a concern. now there will be a takeover

that proceed as billed. the position we take in the united kingdom, that the government does not take a strong field outside of the thumb,c rules of competition and media plurality, i think that is a real strain for our economy and one of the reasons we get so much investment, and i'm going to keep abiding by it. caroline that was matthew pay secretary of state of digital media and culture. emily: you did talk about the media consolidation, disney has one antitrust approval for its $71 billion offer to buy 21st

century fox's entertainment assets. that is bad news for comcast which is reportedly trying to , recruit private equity investors to back up its efforts to acquire a chunk of fox's film and tv businesses. it seems that disney is always one or two steps ahead of comcast here. some of the exciting meetings between bob iger and james have -- james murdoch have happened in london. caroline: interesting that we have become the epicenter of all things media. you are right. disney is getting the bigger offer here, $71 billion and one of the things that comcast prided itself for the whole race, it was more likely to get regulatory approval. today, that seems a two horse race. it cannot win in that respect either. fox saying that disney will selloff some of those key assets, so they could get rid of the regional sports. the deal could go through. what is interesting now is will we see comcast come back with a

bigger amount than $71 billion? who will be the private equity that will come in and by the u.s. portion of fox's assets. emily bloomberg's : caroline hyde in london. thank you. coming up is an ivy league , degrees still worth the cost? this is as technology disrupts higher education -- we sit down with the outgoing harvard president. this is bloomberg. ?

emily: facebook's strategy to

distinguish journalism from political commentary will take place in the coming days. which adske clear promote political news stories and political issues. this follows weeks of criticism that facebook's promotion to categorize ads as political content would confuse readers as to what is fact and opinion. in the latest episode of bloomberg studio 1.0, i caught up with drew faust, outgoing president of harvard university. we covered a lot of ground as she has led deeper stages university for over a decade. we talked about her record-breaking amounts of issues, tackling thorny all the while fighting to prove that ivy league education is it still worth of the rapidly rising cost. drew: this is a great and important question because we compete based on the experience

we can offer students, the resources we can offer faculty for their research and teaching, but we do not compete on cost. the way higher education is organized financially, there is not that sense of pressure to bring down costs. we have brought down price by funding financial aid significantly so that any student who comes from a family that makes less than $65,000 per year has to offer no parental contribution toward tuition or room and board, so it is very accessible in terms of what it costs students. but in terms of the cost of what we do, that is something we need to get under control. we to address it more fully. -- we need to address it more fully. technology will help with that. what can we do online to supplement or replace a certain

part of instruction, so we can leave to people the parts that we absolutely need to people for and streamline some of the other parts, i think we will see that coming forward. constraining costs is going to be a real challenge for all of higher education. emily: there are a lot of companies trying to disrupt higher education and some people say, a harvard degree will not matter when my children go to college. how do you respond? how does harvard stay the best? the gold standard? we have to make sure we attract the best talent, and that is why affordability is so important. i also believe the experience, and you have had that experience the experience of , being in that community, living in that community with other students from whom you learn, probably as much as you would learn in any class you take, that is the core of what a harvard education is.

at its best, the residential dimensions of harvard education are essential to the full experience of what it can be. that is not going to be disrupted by an online experience. you can learn a lot from an online experience, but what you are learning is about the subject matter. you are not bumping into somebody at a corridor and finding that they challenge you in ways you did not expect, or the way they are different from you and expand your world. that is an important part of what happens in and outside of emily: there is a sense from silicon valley that stanford has surpassed harvard, especially when it comes to technology and becoming them biggest and most it -- and becoming a feeder for becoming the most powerful companies in the world. is that a fair assessment? drew: of course not. [laughter]

we are different institutions and i think that is the strength of american education. they are -- there are different thatses and opportunities institutions like stanford and harvard offer. i do not want to have a stanford-harvard competition in front of you and say, we are so good at this. we have a growing presence in technology. and in fields of engineering. our students concentrating and engineering have tripled in the so that is an area last 10 yearsso that is an area where we are paying more , attention than we did a decade ago. but we also have such deep-seated strengths in life sciences, humanities, the arts, and such a commitment in social sciences. and the endeavors that are not simply involved in technology. we compete very successfully with stanford for students and for faculty.

we are very pleased to be harvard and we expect to remain harvard. emily: what is harvard doing differently to train the worker for tomorrow? >> differently from? >> it is essentially a liberal arts education. do you think that harvard needs to do anything differently to arm workers or with the skills necessary to succeed in the modern economy? drew: there are been some changes of how we approach education that respond in part to what you are saying. we find our curriculum much more oriented and our students much more eager for hands-on experience in a variety of ways. engineering is a discipline that has a lot of hands-on dimensions. our students are also very interested in making it in the arts and , the creativity in innovation that is part of making things as you learn. we also see students much more involved in wanting to solve problems and have an effect on the world.

there tends to be many more internships or public service opportunities tied into curricular offerings, doing and thinking are intertwined much more closely. it used to be, you thought in college and you did when you left. now those things intersect and interact with one another and that is an important part of readying students to take on the challenges they are eager to embrace. emily: some of my conversation with drew faust, outgoing president of harvard university. you can catch our full conversation tonight at studio 1.0 at 6:30 p.m. pacific 9:30 , p.m. eastern. finally, snap is pushing to become a bigger player in the videogame industry. it will let outside developers make a games to be played through the app. snap will launch a platform for

the game this fall. it has said to already have lined up one gaming publisher to make games. that is all for now for this edition of bloomberg technology. i am emily chang. this is bloomberg. ? two, down, back up!

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