♪ francine: president trump says that from the brink on china, deciding against the harshest measures. we assess what that means for chinese tech companies. plus, we talked to the man leading movers legal battle. the right-hander getting a shortened license to operate in london. their chief legal officer joins us.

and the u.s. supreme court upholds president trump's travel ban, giving him a victory on a -- controversy that has defined his presidency. to our top stories. the white house is moving forward with plans to limit tech investment. but in a less confrontational manner than previously reported. they're looking to congress to strengthen the committee on foreign investment to keep companies from stealing intellectual property. steve mnuchin hailed the move when speaking to reporters on wednesday. >> when this passes, we will have the necessary tools to protect technology, whether china or anybody else. we discussed that with our correspondence. guest, manager of the

venture fund that has invested billions in china. trump is going to rely on congress to strengthen the laws that already just. see is ite going to is already an untrimmed pairing. an interesting group of folks that are managing and editing and looking at each investment coming in through china. what they will want to do is strengthen that even more, so taking a look at joint ventures, something that used to fly under the radar. and smaller deals, which also used to fly under the radar. this idea that we aren't just looking at a deals, but smaller deals coming out of china and trying to buy up u.s. tech. then, as somebody investing in both, how does this impact your strategy? >> we look at this as a boon, frankly.

we thought this type of aggressive action actually led to greater drives of self-sufficient locally. it pushes many to start to breed a new crop of businesses. to replace the u.s. components that might have been taken out of the markets. i think this action and things like the cte sanctions open people's eyes to how empty a lot of the businesses are when it comes to cortex. it spurred a deep soul-searching within the venture and entrepreneurial community and led to a push over the last few towards businesses being developed, capital pouring into new areas. not an unexpected move, but one i think has started a process where you will see more

innovation and development in china. emily: what is the reaction from people in beijing as these dramatic developments have played out? >> a bit of a roller coaster. as an american here, i am also questioned what the true meaning of these measures are and what is going to stick to the wall and what is not. the overall view is that trump is a businessman. he understands the impact of these measures would have on u.s. businesses as well as the shareholders. likewise many of the other businesses are backed by venture capitalist firms, coming from u.s. investors. that a lot here is of these extreme pressure measures are being used, ultimately, a way would be found

so that the impacts would be medicated. -- mitigated. so not huge damage done to local businesses. emily: we are hearing from lawmakers, take a listen to the senator from the senate finance committee. >> this is a better course of action. use andicated they will legislative approach as opposed to what they were talking about reviews. i think that makes sense. if you look at the concerns we had about potential retaliation from china, with respect to the administration, i think this is walking back, a little bit. and to me, represents a more thoughtful and logical approach. emily: what exactly are we expecting in terms of legislation? bill are expecting this and legislation. it is basically going to be more

scrutiny, more staffing involved. more scrutiny over the companies that are engaging in these deals. we have already seen the impact for chinese companies and going into the u.s. going down. we have seen venture capitalists pullback a little bit. the idea is maybe that is going to happen more if they increase their scrutiny. the band's earlier point, there is nothing like telling somebody you cannot do to doing to wrap them up more. if you tell them they cannot invest, you are bet that is going to push some entrepreneurs to say maybe we don't need to invest in u.s. targets, maybe we double down and create our own technology. it will be interesting to see what happens next.

is this going to end up spurring more tech and innovation in china than what people were expecting in the first place. and we have already seen the chinese ipos nonperforming as well as expected. ,ake a look at this chart showing the recent hk listed ipos. coming up, andmi you were an early investor. any concerns about how they will , given that now we know there financials? >> it is not an easy time to come out right now. aroundew regulations cer's in china, certainly

frustrating many. not an easy time. it is complicated by the fact , at xiaomi is a new species company that does not fit the usual metrics or valuation methodologies. or the company profiles that the public understands. iot, hardware, software, e-commerce services. it is difficult to put a finger on it. the net result is that a lot of people are scratching their heads, both institutional and individual investors. that was msa capital investing partner then. -- ben. a $6i is on their way to billion plus marketing, the big ipl. -- ipo.

but it may hit a snag. our chief north asia correspondent reports from beijing. the decision to postpone a simultaneous listing in shanghai could hurt their ambitions to lower its larger tech companies --this at home via ctrs cdr's. a considerably shaved down offering, which was expected to top $10 billion. their cfo says there is no timeframe to revive the domestic us to -- listing. they say they scrapped the offer, but that they had no dispute. disputes though, may the valuation. it is said to be market at up to 29.3 times forecasted 2019 earning. making it twice as expensive

than apple and even more than china's biggest internet company. they say they reserved a premium valuation because they see emergings as an company rather than a lower smartphone player. coming up, the travel bans impact on silicon valley. we hear from air b&bs kris letang next. bloomberg. ♪

the united states supreme court has voted to uphold president trump's travel ban. it rejected arguments that he exceeded his authority and violated the constitution by targeting muslims. the current version targets visitors from seven different countries.

and indefinitely bars more than 150 million people from entering the united states. president took to twitter, saying the supreme court upholds trump travel ban, well -- wow. tech pushed back big time on the travel ban the first time around and is back again. among the first to react, airbnb. who tweeted the travel ban was wrong from the beginning and is wrong today. they also said we are profoundly disappointed by the supreme court's decision to a poll of the travel ban, a policy that goes against our mission and values. to restrict travel is wrong. we believe that travel is a transformative and powerful experience and we will continue to open doors and build bridges among cultures around the world. chris joined us on tuesday, the head of policy and communications for the company and a white house official under the clinton administration. >> what our ceo tweeted out is

specifically based on our concerns, based on our philosophical values. if you look at the history of the united states, fundamental to our history is travel. travel has always advanced the human condition. we are in a time period where you are having a travel ban. controversies about children being separated from their parents. conversations about building walls. that is fundamentally inconsistent to what it means to be american. about the american experience, democracy. if you look at the course of human history, whether it is migration, immigration, x ration -- exploration, innovation travel has always been at the , center of that. we think this is really a fundamental question about whether we want to continue to move forward as a country or go backwards? this does not involve our business from a dollars and cents perspective, but our values. i cannot help but think that on this day, 55 years ago, in what

was then west berlin, john f. kennedy gave his speech about tearing down walls. today, you have the supreme court ruling. the statue of liberty is crying. emily: you also had a strong statement about the family separation, the cofounders of airbnb said gripping children from the arms of their parents is immoral and counter to the american values of the longing. -- belonging. they need to reunite these families. we are a better country than this. you are matching donations to the assistance project. you have been hosting guests as part of your program. how many have you posted? sted?sted -- ho >> in 2016, we did and add around the super bowl. we housed over 11,000 displaced people. we contributed $4 million to support refugee efforts.

we are matching that program. with the international refugee assistance project. for us, it is not only about speaking up and standing up, it is also about putting action behind it. we are a community-based platform. we have 5 million plus listings around the world and we work with our host community to help open up homes for people who are displaced. we will have more to say about this as we go forward. for us, this is a values-based issue. even from a business perspective, think about what has happened over the last year. you have seen travel go down. travel is 10% of our global gdp. similar in the united states. there are millions of jobs over the next 10 years. these kinds of decisions are fundamentally not good for the u.s. from an economic perspective. i really want to underscore that we continue to grow, even as the rest of the industry has been impacted by this. for us, it is not a business, it is values.

i have actually referred to some of these decisions as -- you are impacting an economic sector in the u.s. that is not as big companies, that is restaurants that depend on it, small businesses that depend on it. we have been speaking out about it. we talked about it when the comments were made about the various countries. i won't use the word that was used. when the initial travel ban was announced, when other issues have come up, such as that separation of children and parents at the border. we will continue to talk about it. it is germane and material to what we stand for from a values perspective. emily: it does impact your business if travel is down. how has trouble been impacted, not just by the travel ban, but by the america first mentality and president trump's anti-immigration stance? >> that is interesting. other travel groups have put out the information that traveled to the u.s. from international

origins has gone down. we have been very fortunate that we have seen travel from those international origins go up. we think that is part of the fact that people are actually coming to stay with other real people. in some ways, our model actually works for those folks who want to spend time with real people. but yes, overall when you are , out there putting out travel tariffs and travel bans, that will not be good for that particular economic sector. for us, that implicates a bigger issue. a question of whether we will have an open world or a closed world. we face climate change, economic inequality, conflict. from all sorts of forms. the only way the issues are addressed in a global economy and global context is with countries working with one another. that requires the mindset of an open world. isolationism, tribalism, it is pretty clear that has never worked. emily: do you worry about being so closely aligned with

democrats from the perspective of your business, but also some of your employees might be republican, who might sympathize with the president's policy? >> for us, we speak out on issues that go to our values. travel is inherent to our values. we do not look at it as a dr, democratic, republican. people know where i come from philosophically. but we as a company look at this as moving forward or backwards. that the prism we are using. we do not speak out on every issue out there, but we speak out on issues that go specifically to our values. at the center of what we are about it is a sense of , belonging, of promoting belonging and having people stay with people from different backgrounds. when you get rulings like this, that is inconsistent with what we are all about. emily: surely there are people who work for airbnb to disagree. >> anybody who works here has signed up to promoting belonging. it is about core values.

we have a core value that talks about the power of belonging, the transformative impact of travel. when you come to work you are , coming to support a community that is committed to driving belonging. i think people understand that when issues come up that are inconsistent with that whether , it is here in the u.s. or other parts of the world, we are going to stand up for the issues and values that our community cares about. emily: now that this has happened is there anything you , are doing on the business side to adapt? >> we'll be releasing a video in a very short time period that will communicate how strongly we feel about the power of belonging and the power of travel. how important it is to the american experience and democracy. we have announced we will do a matching fund to the international refugee assistance program. we will continue to find ways to house people who have been displaced.

again this all tracks back to , our values and our purpose and . emily: coming up, china's booming tech sector. where we see the most growth and opportunity. and bloomberg gets a second chance in london. this is bloomberg. ♪

companies are among 22 unicorns that have one thing in common, investment from this firm with over $4 billion in assets. factors behind their success is this woman. she was a top woman on the list and sat down with bloomberg's tom mackenzie as part of our venture china series to explain where he sees the most growth coming in the chinese tech

sector. >> our focus is around the habits weof buying call it our e-commerce upgrade strategy. investors and companies like alibaba. we are seeing new innovation happening in offline construction. the online companies are leveraging data that has been collected from consumers to serve them better, not just online, but also off-line. in terms of what they are shopping and buying off-line. this is happening in formats like convenience stores, so that is a big peace. e-commerce integrated into off-line. the second area of growth for us is around social. before, wek about,

if you find a facebook every 10 years, you are great, but you can only find it every 10 years. but in china, you can always find a facebook like this this model. there is always new social disruption, whether in the phone -- form of video, livestream. but the key is content, features driven, and targeting different segments of users. we have investments in companies that is the number one business in china, in the number one square dance at in china -- app in china. have another that only targets generation z. there is quite a bit more room for growth within social, and so expect to see this company taking that model overseas. >> do think those models can be

moved overseas? we have not seen that many success stories of chinese social tech migrating successfully. >> it is starting to happen. we had investments in this chinese company, based in shanghai, and they launched in the u.s. and it is one of the top five social apps the u.s.. recently, it was acquired, but it is an example of a chinese developed at -- app making it number one. appsve also seen chinese going to southeast asia. for example, this company has a similar application called beagle, one of the largest apps in southeast asia. how many are you looking to pull off? >> over the last two years, i

have had six exit. this year, it will be ipo. we have around six or seven companies preparing for ipo, both domestically and overseas. given that you are based in silicon valley and in china, how does the beijing washington trade tensions play into your decisions? well, we are watching the development very carefully. we need to know which direction it is going to go. in the short-term, we feel that both countries will not benefit from increased trade attention. long-term, china may come out ahead. was a jenny lee, speaking to bloomberg in our venture china series. coming up, we hear from hoover's

chief legal officer on what it is like to have one of the most challenging jobs in silicon valley. and we are live streaming on twitter, check us out on tictoc. this is bloomberg. ♪ retail.

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granted over a 15 month license to operate in london after some changes. it came tuesday after 1.5 days of argument in which lawyers insisted that they had completely overhauled its culture, passenger safety policies, and reset their relationship with the regulator. bloomberg, up with the details. they have got 15 months to keep making good on the products they said they would. crimeng better, reporting , and other changes that they

say, now, we are happy. so there is a. whether we'll keep going, and then reapply for another license in a few months. hopefully they can get that without going to court. you did some fantastic reporting by getting into a lot of them. generally, the consensus was the drivers certainly like the product. and they want flexibility. >> the number one feedback that i got was having benefits would be very nice, but it is all about the flexibility. the are not competing with the -- cabs.s that we have in the city because they are competing with many cabs. this is the opportunity for them to be there own boss and work when they want. caroline: this does not end the legal battles in the u.k. when it comes to the drivers, there are still some hurdles in terms of giving them not just insurance packages, but more benefits. >> potentially.

this is battle two of this year. that is two will be in october. when they will be in court over employment. they lost their appeal about employment rights, vacation pay. we very recently had another company with plumbing. it is a little different than ride-hailing. it was called pimlico plumbers, and one of the workers was given the right to vacation pay. it is one of the first times we have ever seen anything like that. uber will have to go to court knowing that some other company with a set of workers very similar to theirs has been told that he can have vacation pay. caroline: does this undermine the business model going forward? or are they here to stay? and really this is a takeaway of , good news. >> i think for uber, having to pay for things like insurance,

even vacation pay, it is a lot less expensive than it would be to pull out of london. london is the biggest market in europe. one of the biggest worldwide. for uber, it is a no-brainer. it has to do what it needs to do to stay here. if it have to pay vacation pay i , have no doubt they will have to do that. they do not have a direct rival. the u.s., there are the twins of them and lift. some people say it is over and the black cabs, but they serve quite a different audience. or type of passenger, rather. uber probably needs to sort out the legal battles first, but it also needs some competition. emily: caroline hyde along with bloomberg tech's nate lanxon. we continue to conversation with their chief legal officer.

i spoke with him about how he is tackling the big challenges ahead at an event hosted by bloomberg law in san francisco, and asked about them finally getting their 15 month license to operate in london. >> it requires us to walk the walk and to demonstrate that we are, in the words of the licensor, proper. and i believe we would not be here at this point had we not, , wherepreceding months our former see -- ceo engage in some extraordinary diplomacy. there have been a lot of changes we have made to the way we operate. thisuld not have gotten to sense ad observers change in the way we approach the market. emily: a representative for the

taxi drivers suggested it would clothing. sheep's >> the new company is what you see. say is it behooves us to be as transparent, behooves us to be as upfront as possible. to take accountability for things that went wrong. take credit for things that go right. and to be as open and upfront about where we see the company going. we know a couple things. one is that we survive only if people trust us. simple as that. they have to trust us with their data, with their safety, the safety of their loved ones. and we have to earn that trust every day. that is the mandate.

if we do not do that, we will lose, simple as that. if you think about us being the mobility platform of the future, a place you go to not only because you want to ride in a car, but because you want a bike, to take another mode of transportation. you want to get into an air taxi, right? when you think of the platform in that way, as a mobility platform, the ideas of concept -- and concepts of trust and safety become more important. emily: the california supreme court recently ruled in favor of drivers for a document delivery company, which could have wide-ranging implications for you and other gig economy companies. are you thinking proactively about making your drivers employees? >> the dynamics decision is a

big decision. and the implications are far broader than just ridesharing company's. clearly, it affects us, but many more who use an icy model. model. what it means is we have to back up a little bit and be willing to engage a broader, fundamental question. economy and the opportunity we want to create for individuals who participate. what it means and participate.s who you ought to be able to have flexibility and security. the partnership in the eu is a

demonstration you can do that. we contribute to something with other rideshare companies to something called the black car fund. administered by labor, but tries to do what we have done in europe for drivers in new york. i think it could be a model for the rest of the country. require really does that we come out of our and engage crutches in honest conversation about how we create more opportunity in this new economy, which is here. we have to grapple with it, deal with it, let's do it in a way that creates opportunity or everybody. emily: could drivers become employees as a result? are the implications that big? >> sure, it is possible. that could be one result. i personally do not think it is the right result. model,t in our business

that means there is a great degree of flexibility that is then taken away. of there is a question whether that business model can be as efficient or effective. one of the things that is so important is the vast majority of our drivers, they drive less than 10 hours a week. who aree individuals supplementing their income, adividuals who are finding way to drive on their schedule, their terms. they ought to be able to not only engage in that practice that have protections for them while they are engaged. i think that is the win-win that we want to get to. be remiss if i did not ask you about multiple criminal investigations that your former employer has. the companye that

paid bribes overseas, with a used faith cars to avoid law enforcement, all of this allegedly. software used to track lift fromrs, stealing secrets other companies, and pricing antidiscrimination laws. any updates? [laughter] it feels like to be on the other side of myself a few years ago. look, without confirming any of that, look, i will say this. we continue to be very cooperative with regulators who are investigating a host of issues. is the approach our ceo believes in, that i believe in. i think a couple challenges that we engaged was cultural change.

that was job number one, as anybody will tell you. the most important thing about a company is its culture, everything else is secondary. that was job number one. the other thing we had to work on is what i call the regulatory shadow, the overhang we want to move through. unfortunately, one of the things i encountered was an incredibly talented team of lawyers who have been working on this and intinue to work on this, and think they are now working in an environment where we can engage regulators and perhaps a more cooperative way that has been in the past. and i think that is benefiting. sticking with ride-hailing, one of their main rivals is making a push into the australian market, launching operations there on monday. bloomberg paul allen filed this report from sydney.

>> it is a slow and steady start. the company has been trialing its service ahead of its launch in melbourne. sydney, we are going to have to wait. they say add will take a pragmatic step-by-step approach feedback fromith the launch used to shape offerings elsewhere. they have been raising capital's best capital to fund their expansion. they raised their valuation to $56 billion. with sources saying the company have cash on hand of $12 billion. discounts of up to 50% will be offered to riders until the end of july. drivers who sign up early will qualify for incentives as well. the ridesharing market in australia is getting a little bit crowded. we already have uber here and didi will be joining tax if i -- taxify as well on the street down under.

paul allen, bloomberg news, sydney. coming up, we sit down with the ceo of africa's biggest company that made maybe the best tech investment in history. their ceo joins us to talk about backing tencent next. this is bloomberg. ♪

emily: last week, africa's biggest company by market cap reported a 72% increase in earnings. they credited advertising and e-commerce for this boost, and happens to be one of the biggest tech investors in the world, and has long relied on its 31% stake in the chinese tech giant tencent to accelerate growth. but its investments in online companies are starting to bear fruit. folded 2% stake in tencent and then netted another 1.6 billion

dollar profit from the sale of a stake in the indian e-commerce startup in may. their ceo joins us to discuss. >> the main reason we freed up our capital is driven by opportunity. we have been focusing building our e-commerce business in class -- classified and online for delivery. getting to some scale, we realized there is so much for the opportunity to pursue. we really wanted to shore up the balance sheet and give us the capacity to do that. repeat the model of finding a great business, finding a way entrepreneur, putting our backing behind him, and making a great company grow. emily: to walk away from a small stake in tencent is risky given how fast the company continues to grow. where do you plan to put this money? where do you see that opportunity? bob: what we see basically -- of course, tencent is an amazing company. probably one of the most impressive growth stories anywhere in the world today.

but what we also see is that we have managed to build excellent businesses in 120 countries, and we are just not done. we realized that if we continue to be looking for the right entrepreneurs, we find them. we actually trust them. we give them a lot of runway. we can actually do this again and again. a good example is what we have done with flip cart in india and found the opportunity really early and backed a founder in 2007 in india, looking at and e-commerce dream. wanting to build this great business. while there were no credit cards, no logistics, no structured retail, we backed them from early on and he made something great happen, and that is what we do. emily: you bought that small stake in tencent in 2001. it is now worth upwards of $150 billion. i am sure there's been some fascinating drama over the years whether to get into games or e-commerce. you have been ringside for all

of this. i am curious if you could share more about your shared history. what has it been like to be on the front lines of tencent's growth? bob: it's probably the company that is run by the most incredible leadership team in the world. i think what they have done structurally well is they care about their customers. they start with the customers. they start with technology. and they have been basically taking a view on what is the best possible product we can offer. and that is very much what we do as well in our other investments. we find these entrepreneurs with an extreme product and customer focus, and tencent is the best example of doing that. that's fundamentally what we do. emily: your stake in tencent is worth more than naspers overall. what is your strategy to close that gap? bob: we are of course a company

that is quite diversified, so you would expect a certain discount to be for us, normal to trade at. for us, there are structural other factors that make our lives a little different from others, but fundamentally, what we focus on doing is find these great entrepreneurs that build great businesses. actually, the last set of results are good examples where we see very strong growth in the e-commerce business growing close to 40%, accelerating year-over-year, and our core e-commerce investment starting profitable. building great businesses is what we do. emily: you said you look at listing some business units individually. curious which of your businesses do you think are listing ready? bob: we are looking at a broad set of options to which businesses can actually help us over time to unlock this value. there is a broad set of options we have.

we have done it many times in the past. for example, we have an online food delivery business called delivery hero. that company went public and is on a fantastic ride. we look at it all the time. we look at which businesses would be better off if we take them to a public situation. and we make those choices. emily: that was the ceo. up, salesforce has announced a $200 billion investment in the u.k.. we talked to be secretary of state for digital media on all future tech investments into the u.k., next. this is bloomberg. ♪

emily: the u.k. government is making it a point to show off the country's taxi. ofpite the price

distraction, they're working to secure the economic rewards of being a destination for digital investment. this week, they unveiled the london cyber innovation center after announcing billions in new investment from overseas. with this amongst the international companies showing some love. hyde spoke caroline with the uk's secretary of state for digital media and sport. large technology coming from across the world are not only welcome here to invest, to soand, but they are doing with great pace. salesforce, you mentioned, we have had major investment decisions from apple, google, ibm, amazon, a couple weeks ago. samsung opening there. there is massive investment,

doubled from 2016. we want to keep pushing in that direction. >> what about the regulatory environment? at some point, people look at and worry will they be slapped with fines, they feel copyright law is going to tackle. how much is your regulatory environment a blessing or curse? >> we think there is opportunity here to. the u.k., traditionally, has a good track record of writing regulations that gives us a framework in which they can operate, but also is strongly pro-innovation. they havetory sandbox developed is, yes, of course, having regulations. financial products do need a level of regulation. but allowing for in -- innovation.

the presumption something is ok, and if there's a problem, the regulatory will have a conversation, as opposed the other way around. a very pro-innovation stance. we are constantly changing the law to update that. example, in parliament today, there is the autonomous vehicles bill. that will help to make us a autonomous to run vehicles safely, securely, and in the interest of citizens, but harnessing new technology. and likewise, the data protection act brought the gdp gdpr into.k. loft,-- uk law. rule.nk it is a good and even though we are leaving the eu, we are going to keep it. we think it is a good balance

between privacy and innovation. >> many companies have been bred in the u.k.. what do you think about the consolidation within the media space? happening.nly see it i am very careful to ensure that decisions are taken clearly and objectively. we obviously had a very detailed process, looking at the fox takeover of sky. the final details of how that will work without causing robbins of media plurality are out for consultation for the next week or so. also, the comcast proposed takeover we looked at and decided that did not raise

concerns. now, there will be a takeover contest, should that proceed as build -- billed. u.k.osition we take in the , that the government does not take a strong view on these mergers, generally, outside of the specific rules. i think the fact that politicians do not express a view between different potential bidders, i think that is a strength for our economy. one of the reasons we get so much investment here. that was caroline hyde with matt hancock, secretary of state for digital, culture, media and sport. and that does it for this edition of "best of bloomberg technology." throughout the week, we will get tesla's delivery numbers and

this company's ongoing question for a profit. , bloombergh day technology's live streaming on twitter. and he sure to follow our global news network on tictoc on twitter. this is bloomberg. ♪

minister,a's prime mahathir mohamad he left his country for 22 years until 2003. now he is back. turning 93 in july, he is the world's oldest prime minister. this is the same party since independence. beenhir mohamad: it has corrupted.