emily: i'm emily chang, and this is the "best of bloomberg technology." where we bring you all of the top interviews in tech. coming up, beijing has called president trump's decision to slap tariffs "totally unacceptable," but stopped short of spelling out what they will do in return. we discussed the tech fallout in the ongoing trade standoff. plus, a downbeat debut. xiaomi shares drop on its first day, as escalating trade tensions and uncertainty leaves

investors feeling skeptical. and our exclusive conversation with pandora's ceo roger lynch. we talk about their recent partnership with snap and how they are fighting off the likes of spotify and apple. but first, to our top story. another day, another new escalation in the ongoing u.s.-china trade dispute. this time, the white house is threatening to impose new 10% tariffs on $200 billion chinese made products. the list includes tech goods like television, car batteries. one of big-ticket item missing this round, smart phones made by u.s. companies like apple that are assembled in china. so while your future iphone may be spared, for now, consumer tech might see some price hikes. we spoke with bloomberg tech's mark gurman on wednesday. mark: the first thing right now is it does not appear apple products are affected.

there are a lot of different reasons why. one of the biggest points of emphasis is that apple is a california company based in the united states. donald trump and tim cook, ceo of apple, have talked about this. cook says he does not think these are a solution to the problem of the administration is saying is out there. there are other facets the to it. products are designed in the u.s., though they are manufactured in china. they are sold all over the world, so it is unclear what kind of hit they would get on these tariffs. emily: what about the components that go into iphones and ipads? mark: if you look at the components on the list, it is not a big amount. iphones are increasingly made of stainless steel, different types of metals. and we're seeing some materials, and it is unclear what percentage of the phones are impacted and if there will need to be a price hike on the iphone because of the margins apple already gets. could they switch to other components if necessary? would they do this for phones

sold in the u.s. and china? but if you look at tesla, they are down because cobalt battery technology is on today's list. that is the core of the batteries that power electric vehicles. emily: i have a chart in my gtv that tv's from china may be getting a lot more expensive what is going to happen. mark: that is interesting. why i don't think it is a big deal is because there are very few high-end china-based manufacturers that sell their tv's in the united states. many sold in the united states are made by sony, and samsung. those are companies that are not necessarily affected by the tariffs. emily: what are the impacts going to be consumers here? what should we be worried about? mark: cobalt batteries, as we see more electric cars happening. but i think outside of the u.s., really we have to focus on retaliatory tariffs. what is china going to do about this? and that is where apple really can be affected. about 20% of apple sales across 2017 were in china. if china slaps growing tariffs on the u.s. for selling iphones

in china, that could be bad for apple in the region. there has to be decisions to be made. apple cannot get away from not being a company affected by u.s. tariffs and not be an affected by china's tariffs. they will be affected from one side or another. it is to be seen which side, if either. emily: we saw tesla working towards opening a plant in china. this has been going on for a while, but it certainly goes against trump's direction here. so what are other solutions for these companies? mark: more solutions are to have homegrown manufacturing of different components. building cobalt in the united states. if you look at apple, building devices in the united states, bringing up metals and other technologies in the united states. but that also has an effect on consumers as well. because as we know, products developed in the united states, anything with a made in the usa stamp on it are traditionally more expensive because the labor costs in the u.s. are far higher than they are in china. emily: all right. mark, as always, thanks for

keeping us posted. meantime, president trump has embarked on a european tour with a sequence of high-profile events starting with a nato summit in brussels. let's get to bloomberg's caroline hyde in london with more. it was quite a dramatic and remarkable day. walk us through the day's events. caroline: just extraordinary. in some ways, tech was involved because a lot of these arguments seem to come out via twitter, of course, trump's favorite mode of communication. he took to twitter ahead of nato saying the defense spending in the eu was not high enough, complaining about the trade deficits he has in the eu. the so-called tariffs and barriers to entry. he had such a twitter tirade that it sparked the other key donald we have here in eu, the president of the european council hitting back saying the u.s. does not have and will not have a better ally than the e.u. he also has mike pompeo saying

what a wonderful institution nato was on twitter. i mean, it is extraordinary. they even have the old secretary of state, john kelly, saying he has never seen anything so strange or counterproductive than what has been going on in terms of president trump's reaction at nato. notably, really hitting out aggressively at angela merkel's germany, saying that germany is too reliant on russian energy, russian gas. just unprecedented nato meeting. emily: so, was there any agreement between these seemingly fraying allies? caroline: you have to ask the question, and while we see donald trump calling for greater spending, he wants the other allies to double their commitment to defense spending, but there seems to be something they are working towards. it is involving tech. it is cybersecurity. we did get a key announcement from janice stoltenberg, the

nato general secretary, saying yes, we have agreed to up our investment in what they call hybrid warfare, ensuring they are protected against cyber attacks that are then interweaved with with armies on the ground. they have a new cyber operations center to be announced drawing on member's cyber capabilities. there was some agreement there, but notably, an awful lot of tension. emily: bloomberg's caroline hyde there in london. u.k. regulators may fine facebook $664,000 over the cambridge analytica scandal. they failed to present user data from falling into the hands of the consulting firm that worked on the trump campaign. regulators say the data belonging to as many as 87 million facebook users may have been misused. coming up, xiaomi's ipo calls their company a new species. different from any other tech company on the globe. but are investors buying it? and later, president's supreme court nominee making the rounds. what tech cases might come

before him? we will discuss. this is bloomberg. ♪

emily: it was hong kong's biggest coming-out party in two years as xiaomi made its public debut. the market value is now in the region of $50 billion, making it the world's third biggest publicly traded smartphone maker. bloomberg's chief north asia correspondent stephen engle has more from hong kong. stephen: xiaomi shares fell out of the gate on its ipo in the hong kong stock exchange. a lot of uncertainty about this company and its lofty valuation, that put it more than apple, facebook, tencent. also, the true nature of its business.

is it more of a low-margin handset manufacturer, or is it like the chairman lei jun says, a broader internet services company? oh, and also, there is the backdrop of a growing trade war between china and the united states that has dampened sentiment here in hong kong. the company says it is a tough one to pigeonhole. >> we are actually a new species. we are in internet company that can do e-commerce at the same time. i don't think there is anything like us. stephen: on the one hand, xiaomi is now a $50 billion company, the third largest in the world for handset manufacturers, but a it's a far cry of an earlier estimate last year of a valuation upwards of $100 billion. the size of the ipo also really scaled back, down to $3.1 billion from an initial estimate or aim of about $10 billion. one dampening prospect was the elimination of a corresponding

listing in china in shanghai of a cdr, that's a china depository receipt. even the regulator in china shared similar concerns about the lofty valuation and the true nature of its business. stephen engle, bloomberg news, hong kong. emily: and we dove into the debut from every angle monday with ben and others. >> they have a lot to prove. they are very localized in china and more developing markets like india. they are very doing well in india and china. but that is just one portion of the world. there is obviously the whole trade war tension and the ability for chinese hardware makers and to get their devices in the u.s. and europe is increasingly difficult problem. emily: shelly banjo also joining us now from new york. how much of a disappointment is this?

>> i think it is a big disappointment, just because of how much expectations were built up. if they would have come to the market either as they were, it was a big compliment for what they were able to do eight years in existence and becoming one of the world's biggest smartphone companies. they did not just rest at that instead of saying this is who we are and what we make, instead said we are this $100 billion company that is an internet businesses. that is where kind of this mismatch lies. emily: i just want to point out the founder is an investor in your fund. would you be a buyer today? >> i am. emily: at twice the price of apple? >> i am. i think the business is underestimated and misunderstood. i think it is a company that delivered a product, hardware that is actually a delivery device for multiple services. in order to be a $100 billion company, they have to really disrupt and destroy an entire

business and in this case it is i.o.t. what they have done is democratized. they put the devices in the hands of everyone. not just in china, but in multiple merging markets and gives them a platform to deliver services at a very high margin. emily: mark, you cover apple. is this worth twice as much as apple? >> if you look at unit sales that apple is selling at, it is unprecedented, but if you go back to what ben was saying in terms of delivering services across the world, that is where the lucrative markets are. we see apple, google, amazon all shifting towards this services strategy. the problem is they are a china-based company and have so much competition in the services world. we have tencent and everyone else trying to get a piece of the pie there. it is a whole different world, in terms of services there, and they are not ahead of the pack. emily: you heard the company make the argument that they are new species. are they really an entirely different new species? >> there is nothing new there.

>> i think they are. again, in the i.o.t. space, you had all of these disparate makers, like fitbit, they have wiped all of them out by making a product they can sell at a tenth of a price still at profit. but then they can integrate things into their platform. it is really only the early days. things like health care, insurance, finance, all kinds of other apps that they can plug you into, it is unprecedented. but when you buy their televisions, for instance, you are forced to watch advertisements on it. once they are in your home, and they will because their products are superior quality at half the price, you have to take their services. emily: how much of this result is about being caught up in a trade war? >> i think that's the line you are going to hear from a lot of people, that this is bad timing. they are not wrong. this isn't great timing for the markets if you look at china and

hong kong in general, both markets are down and there are a lot of jitters about the trade war. but the thing is, they are not even in the u.s. their business isn't going to be affected by anything having the trade war. and so, it won't be that impacted by a trade war at least in the near future. emily: mark, you have done a ton of reporting including new iphones, what is the hardware that they will be up against? from apple and others. >> i think there is an opportunity for a player whether they are a u.s.-based or china-based to come in with a at a subpremium phone $500 price point. we have seen other phone makers do that. companies like one-plus and apple is working on a cheaper iphone. no one has nailed it that is good and cheap that people are going to buy in high volume. xiaomi had that opportunity. and right now in this climate with this administration, it doesn't seem plausible that they are going to have that success in the u.s.

emily: given the showing here, you are an investor in other chinese companies that are planning to go public soon, do you think this could lead companies to change plans? >> i don't think so. again, it is tough timing. they were out the first gate with the dual share structure. they had the cdr hiccup at the beginning. i think it is just a difficult position for them. and global investors understand a lot more easily because it replicates existing models under one platform and shows how it integrates. much more understandable than this new species. what we would call indominous rex, the combination of multiple business models under one roof is really difficult to understand. emily: xiaomi also has the mainland china half of its listing to come. how is that going to work and could the company recover? >> that is something that remains to be seen what will happen with the cdr. they tried to push for it. they want to be part of it, but there is a big disconnect

in what the government wants, what regulators want and customers want. and so it is going to take at least six months for xiaomi and the regulators to work through this. it could take a year or it could never happen. there is this new thing that no one has been able to figure out, and they were supposed to be the test case and that didn't happen. we'll see whta happens, if other tech companies, established companies, like alibaba, come forward first. that might pave the way for a company like xiaomi to come after that. emily: ben, mark, and shelly. there is a new sign the long struggling music industry is continuing its comeback. china's tencent plans to spin off its online music business and list shares in the united states. it will let american investors bet on music streaming. those services have brought new life to an industry that has been plagued by piracy.

for a second year in a row, consumer spending on music has seen double-digit growth. last year, u.s. music lovers spent $8.7 billion, up from in 2017. speaking of music streaming, pandora's ceo joins us for an exclusive conversation. that is next. this is bloomberg. ♪

emily: just last month, snap made its first big foray in working with outside developers by launching snap kit. one company working with them is pandora. pandora listeners will be able to send songs to friends through song cards, expanding their social capabilities. recipients of the shared music can swipe up and listen to the song through pandora's premium access features. pandora and snap are not the first to do this. earlier this year, it was announced instagram would partner with spotify to share music.

we spoke with roger lynch, ceo of pandora, for an exclusive interview. roger: music is fundamentally a social experience. and the ability to share it on snap now, i think is pretty meaningful. emily: instagram has a close relationship with spotify. they had a close relationship with facebook. is that why you picked snap? roger: we chose snap because they have a younger listener base. younger listeners tend to be more engaged with music and it was a big social media platform that had not enabled music sharing in a way we thought we could really do something unique with. emily: look, pandora has been going through a lot lately. a lot of executive turnover. this big investment from sirius. how have things changed since then? because investors were hoping for a buyout. roger: yeah, well, all that happened before i joined. so, last year it did go through a lot of turnover, which led to me joining the company in september.

it has really settled down quite a lot since then. we closed the sirius xm investment right at the time i was joining and since then we have refocused the company on a couple things. one is we are, as you mentioned, the largest music streaming service in the u.s. and 70% of revenue comes from advertising. digital audio advertising is the one big digital advertising business that's not controlled by google or facebook. pandora is the largest in that, so we have been investing in that. we bought a company called adwiz, which helps us invest in our strengths of digital audio while we continue to grow our subscription business nicely. emily: now, there has been a perennial question of whether pandora is a standalone company or an acquisition target. is it a wait-and-see? is that something you are open to, or do you see pandora going it alone? roger: i can certianly see why other companies would find pandora attractive because there are few companies that have the scale of pandora. but our strategy is to build on our core strengths.

and, as i mentioned, we are the largest in digital advertising and we are investing in that grow.ntinues to we are the largest in digital advertising and continue to growth that revenue base and with the investments we are making well growing our subscription business. emily: yet you have apple, amazon, spotify, google all chasing music with minimal profits. what is your strategy for profitability? roger: if you think about consumers, they are not homogenous. not every consumer will pay a subscription. most will consume music like they do on terrestrial radio today, which is a $16 billion marketplace, still waiting to be migrated away from traditional broadcasts to ip streaming. pandora is well-positioned for that. when we think about competition, of course we think about spotify and apple for our subscription business, but 70% of our revenue is advertising. our competition there is more about terrestrial radio. emily: what is the plan if

artists start to push buying their albums on paid streaming services? roger: that is great for our business. our paid streaming services last quarter grew 63% year-over-year. it is a fast-growing part of our business. but, again, we think consumers will be -- some will choose add supported, some will choose subscription. we are well positioned because we're strong in both of them. emily: do you think content cost will continue to go up? roger: i think there is a moderating effect. we see it as the platform start to gain more scale in streaming. and it is really to the benefit of the industry. we are now being music industry growing again after 15, 18 years of decline. emily: right, it has been a long time. roger: it is growing, and it is growing because of streaming. there's a balance between labels, publishers, and streaming services that understand there needs to be healthy ecosystem. it is the future of the industry. emily: that said, listener hours were still down in the first quarter. when do you see it turning around?

roger: we have a big opportunity to grow engagement, so not just listeners, but also hours with our listeners. that is a combination of what we do on the marketing front, what we do with our product, new features, like we launched personalized playlists and premium access that lets any listener play any song. and those things start to move the needle for us on engagement. emily: so, do you think you could turn them around by the end of the year? roger: i think that we will continue to, to start to see improvements in that. just like last quarter, we saw an improvement. yes, it was a decline from the prior year, but it was a big improvement over the prior quarter. we expect to continue to make improvements. emily: that was roger lynch, ceo of pandora. coming up next, we hear from a london-based company on how brexit is affecting the investing landscape. our conversation is ahead. and, bloomberg technology is livestreaming on twitter. check us out and follow our

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emily: welcome back to "the best of bloomberg technology." i'm emily chang. it has been more than two years since britain decided to leave the european union, but now the road ahead is in question. prime minister theresa may has proposed to keep britain closely aligned to the european union on trade and regulation after brexit. may'sile most in conservative party seem happy, the move towards a softer brexit led to the resignation of may's chief negotiator david davis and foreign secretary boris johnson, the face of the campaign, to quit the e.u. prime minister may: we do not agree about the best way of delivering our shared commitment to the referendum. it is a proposal that will take back control of our borders, our money, and our laws.

but do so in a way that protects jobs, allows us to find new trade deals through an independent trade policy, and keeps our people safe and our union together. emily: with may's own future, the future of the u.k.'s trade relationship, and a possible second exit referendum in the balance, what does it mean for britain's vibrant tech industry? we spoke with caroline hyde. caroline: they are concerned about the proposal at the moment. they are really concerned about the fact that it can section out services in particular. about 80% of all export from the tech sector in the united kingdom are services based. they are saying at the moment this is a lopsided deal. because what theresa may's proposal spells out is that you will have some sort of free trade arrangement in terms of goods that you are seeing imported and exported between the u.k. and the e.u., but not services. therefore saying that we could see two separate regulatory environments. this is a necessary concerns for

united kingdom based tech businesses, yet more headaches in terms of the regulatory environment that they will be facing. they are also laying out that there was not enough visibility yet in terms of the freedom of the movement of people. this has always been a key battle cry for the tech sector. "we are worried about talent." yes, the u.k. government has been backing new ways of having entrepreneurs come into the country and new visas for entrepreneurs, but that is enough in terms of hiring. we have got other key concerns going forward about the way in which brexit might occur and the regulatory environment for data that as well, the way in which data is processed across the border. so at the moment, tech united kingdom, a key voice for the tech sector, is saying we are worried. emily: so how likely is it that this deal, you know, it is clear that prime minister may's party is behind her. but how likely is it that the deal will be accepted in the u.k. and by e.u. lawmakers?

caroline: at the moment, not very likely. it is believed already coming from michel barnier. michel barnier is a key negotiator on behalf of the e.u., and he is already sounded off in new york that he doesn't like the sound and the smell of what is being proposed at the moment. i might add, at the moment, all we have is three pieces of paper coming from the u.k. government. we don't have the actual white paper which is some 200 pages, also. but as it stands, the fact the u.k. has thought of trying to cherry pick here, wanting to have a free trade agreement in terms of goods but not in terms of services, there are saying look, that is not cool. what we want is if you want to opt in to our single market, i am afraid that you have to allow the free movement of people, of capital, and indeed of goods and services. you cannot pick and choose. so it looks like michel barnier and the e.u. might push back really hard, even though we have some businesses, the likes of airbus, saying, go easy please

on the u.k. they are trying to extend an olive branch. but at the moment, it sounds as though this won't cut mustard when it comes to the e.u., let alone get the support that theresa may needs in her own parliament and the united kingdom. remember, she doesn't have a majority in government, therefore she would have to get all the conservatives to toe the party line, and perhaps look across the bench, look across the aisle to get the labour party to support her as well. emily: caroline, stay with us, because despite all the uncertainty, investments continue to hover near record high. through the first quarter of 2018 alone, pittsburgh reports that european venture capitals have invested 5.2 billion dollars, the fourth highest quarter in the last decade, and it would match the last year's record pace of investment. meantime, london-based vc index totures has invested 7.25 date that includes notable tech startups like dropbox, and skype and more. they just raised $1.65 billion for new funds targeting

companies in europe and in the united states. a partner at index ventures is with me now. so did all of this political certainty around brexit impact your fundraising plans? did you guys talk about this? >> we talk about it because it is current news and important. but fundamentally, not that deeply. you know, 2018 has been a good year for us. we had four major multibillion-dollar exits, and hopefully with some notes going public in the month or so, we will see another one. that environment creates a lot of interest from investors who want to provide us with the capital to invest in companies, so we were able to raise the money without too much trouble, fundamentally. the one area that we are always on the lookout for is immigration and the movement of labor. that is important to us. but most of the companies we invest in our small and young. and cross-country borders and labor and tariffs are not really their concern in the beginning, they are just trying to build a product that people love. emily: this is one of the big

issues facing these companies given all of this uncertainty. if it impacting your strategy? is it going to impact your strategy in terms of where you put this money? mike: not that deeply. i think the competition for labor is absolutely critical. the difficult part is typically the competition between the large and established companies like google and facebook versus small companies who are trying to get that same labor. having more of that labor is helpful, but also it is good for competitively positioning against google and facebook and saying why working at a small company is more exciting. emily: and caroline, based on the numbers, it certainly seems like other investors in europe are not holding back either? is that what you are hearing? caroline: yes, london is not only a key tech hub from europe, but also where the money is. that hasn't changed since brexit. you see index ventures of course is a key hub in london. but they lots of the vc's are based here, looking to get active in europe, and they are

raising more and raising more funds. we have a whopping amount of money coming out of index ventures, but we have also heard from highland in europe, they are based in a key hub in london . they have been raising money. optimus ventures, dawn capital. we have got record amounts being raised and record amounts being invested. despite all the brexit uncertainty, last year, we saw a record amount of money coming into u.k. tech firms. so that is fine. you can't run a counterexample. i can't tell you what it might have been if prices if brexit hadn't occurred, would have been more. but as it stands, london is still the number one tech hub in all of europe. emily: so, you have got some competition there. in europe in particular, what are you bullish on? mike: there are a number of sectors that we really like. one of the areas that the united kingdom helps a lot is that we were very early in fintech, partly because of the regulatory regime in the u.k. we started early in that sector. we have added yen in our portfolio. emily: they just went public.

helped us in our context. we do like conference and retail. we have done companies like "far-fetched" and "etsy." far-fetched is also largely based in london, so we are seeing commerce thrive in that environment. another area that we like is sort of urban mobility and transport, another company sort of like door dash. it is actually quite a bit bigger than door dash. all across europe. they were based in the u.k. we are also investing in urban mobility like e scooters, famous bird. we did that quite early. one aurora, self driving cars. those sectors we still invest in deeply. and then some of the kind of enabling technologies and software ai, those are the key sectors. emily: lots to unpack. let's start with e-commerce. amazon's ambitions seem to have no balance. given your investments in some other e-commerce companies, how concerned are you that amazon is

going to destroy the competition? they have got handmade. mike: absolutely. i think amazon is a formidable force, and i think there is some talk in vc circles that it is difficult to do anything in amazon's vicinity. but we have found that there are segments which are quite large, particularly for example in high-end fashion. couple of recent investments. we talked about far-fetched, which serves the high-end of the market. emily: amazon is also getting into fashion, although not the highest. mike: but if you think about it, the brand of amazon doesn't necessarily carry over to the high-end of the market. if you look at most of the brands you would think about gucci, they don't want to be , necessarily listed on amazon as a product. so i think there is an opportunity there. we invest in a company called goat that makes high-end speakers or provides high-end speakers, not something that you would find in amazon. so there are quite large sectors where you can build companies around it. it is important to recognize they are a force, but it is not impossible to make investments around that. emily: thanks to mike from index

ventures and bloomberg's caroline hyde. coming up, charging up and -- for a electric scooter. we will speak to the line ceo and cofounder. plus, tesla sets its sights on china, signing a deal to churn out 500,000 vehicles a year. how big a blow is it to president trump's trade campaign. this is bloomberg. ♪

emily: grab is opening its app to external developers and startups. the singapore giant is transforming into a every day super app, that covers everything from payments to food delivery. think wechat. the ceo anthony tan said the revenue could push beyond $1 billion this year for the first time. electric scooter rentals startup line has announced a funding round which includes a partnership with none other than uber. details of the alliance are yet to be finalized, but uber said

they will promote line in their mobile app. the financing pledges of their valuation to $1.1 billion, but will it give the company an edge in the brewing two-wheel turf war? joining us to discuss the deal, the cofounder. >> uber will be [indiscernible] they will start from investing, then on top of that will be also doing cobranding and also make our scooters available on the app. emily: so are we going to see the uber sign online? >> we are still figuring out the details. possible. emily: how much business will this actually drive for you. -- new business? toby: we do not know, but that is the purpose of this partnership. we will test it out and see how it works. we are thrilled to have uber as a partner. we will test it out and see how it works. emily: a $1.1 billion valuation is significant. what are the numbers to back that up? toby: this is a massive market. right, transportation mobility.

, and first and last model transportation has been a challenge for a lot of the high-density fits. so we have seen a lot of people starting to use that for fun. you know now, a lot of people are using that for a commute and adapt that into their daily life. as we look at 2013 when uber was first raised their $3.5 billion. emily: also from gv. toby: also from gv. now you look at uber, they are already over the most important $60 billion. thing is creating a movement that changes people's behavior. if we look at it that way, there is a lot of evaluation. emily: how many rides a day? toby: we cannot disclose that, but i would say we are growing fast. we have already done 6 million trips so far in only 12 months. emily: it has been said this business could be more profitable than a ridesharing business because you don't have

to pay drivers. is that a fair assessment? it's hard to believe you could make more money renting bikes and scooters than uber can make sharing cars. toby: we don't know about uber's economics, but not paying the drivers and cars is a big cost reduction for us. right? but i think more importantly, we are solving the higher frequency use case, which is shorter distance. part of people, most of the transportation needs on the every day basis. so i think that is a big foundation of our potential market. emily: there are challenges in every city and every city is unique and in san francisco , there is a freeze on scooters right now. people are not happy with the scooters getting left around, and they will be doing a trial program where they are going to pick five companies that can have it out, and you are applying for it right now. toby: yes. emily: what is going to make a difference this time? what can you promise the city and the residents who got pretty annoyed?

toby: so we hear the feedback, then one thing that differentiates us from the other players is we take the city relationship very seriously. before we launched, before going to any market, we talk to the city officials, sometimes mta or the department of transportation , and you know we hear the , feedback from operating about 10 to 12 weeks in the past. and we are implementing a lot of exciting features. for example, after each ride we ask the riders to take a picture about their parking so people are held more accountable and also we are hiring locally and so we have an operation team on the ground making sure things are going ok yen a orderly -- in a orderly manner. emily: you are taking a non-uber to working with cities. toby: we learn from best practices. good and bad. we want to do the best for the city. emily: thanks to the line ceo and cofounder. expanding its

footprint into china. they will become the first automaker to own a wholly owned factory in china and forego a venture arrangement. bloomberg has learned the electric carmaker is planning to produce a factory that can produce 500,000 vehicles a year. the plan deals a huge blow to president trump's trade campaign against china. tesla follows harley davidson in charting plans to expand outside the united states to circumvent tariffs under the trump trade dispute. we spoke to a bloomberg reporter who covers this for us. >> the difference between this and the harley davidson situation was that harley was manufacturing in the u.s. and then made an announcement saying they will move manufacturing because of this trade war. on the other hand, this is something tesla had telegraphed. musk brought it up in november. this has been part of their plan. i think it is a little different. we are in a politically

dangerous water once you start talking about u.s.-china trade, especially right now. emily: tesla was hit by retaliatory tariffs in china. this would avoid that. how big is the market for tesla and china? >> china is very heavily focused on electric vehicles. they want to be all electric by 2030. it is also, china is going to surpass the u.s. as the world's largest car market. emily: when we know about the plant in china? what will be they be making there, how soon, how fast? max: we don't really know much. today, tesla signed a memorandum of understanding. this is basically the first step to opening the plant. the assumption is this will be used to make tesla's lower end, mass-market cars. that would be the model three and a car that people are calling the model y which is sort of the suv version of the model we are talking about cars three. selling in the u.s. starting

around $35,000. most people, fully loaded or whatever more like $50,000. , so that is the assumption going in. but the truth is, we do not know exactly how this is all going to shake out. emily: i know you spent some time in china and obviously, many chinese drive u.s. cars. though they are also made in china, so it is not quite as dramatic as gm, for example. they built a lot of cars in china. how does this compare to the footprint of other u.s. automakers there? ivan: actually i saw more buicks in china than i see in america. china will become the world's largest market. they're focusing on electric vehicles, and this will be a tremendous opportunity for tesla. and you want to build locally because of the cost of shipping. the more expensive and bigger, you want to build it as close to local market as you can. and of course if you build locally, you avoid tariffs. i don't think this is an issue with president trump's war with

china on tariffs, i think it is addressing a local market opportunity. emily: that was ivan feinseth of tigris financial partners and bloomsburg -- bloomberg businessweek max chafkin. we know the supreme court nominee. what tech cases could be weighed in on if confirmed? we discuss that next. this is bloomberg. ♪

emily: the pick is in. president trump has nominated conservative u.s. court of appeals judge brett kavanaugh to replace outgoing justice anthony kennedy. it has provoked strong partisan reaction. take a listen to the senate minority leader chuck schumer. >> in selecting judge kavanagh, president trump did exactly what he said he would do on the campaign trail, nominate someone who will overturn women's reproductive rights and strike down health care protections for millions of americans. emily: in the meantime, the senate majority leader mitch

mcconnell praised the president's choice. take a listen. sen. mcconnell: judge kavanagh understands that in the united states of america, judges are not not unelected super , legislators whom we select for their personal views or policy preferences. emily: whether or not kavanagh is confirmed by the senate, the supreme court's next session will have some important tech-centric cases to hear. bloomberg tech's garrett de vynck joined us to discuss. garrett: probably the most sort of consequential case that kavanagh has had a say in in terms of tech today would be about net neutrality. he didn't make a ruling that went into law. he actually dissented on a judgment made by some of the other judges on his court, and he actually was in favor of pushing back on the net neutrality. of course, we know that congress has gone and legislated away those rules that were put in by barack obama earlier, but he was in favor of getting rid of it.

his argument focus we focused on -- actually focused on free speech. he said that internet service providers should have the first amendment right, the free speech right, to decide what goes over their wires and how fast it goes. that was sort of his take on net neutrality, which of course, is very important for the tech companies and for people who follow tech today. emily: and there are some upcoming tech-related cases that the supreme court could likely hear in the near term. so if he is confirmed, what does that mean for the future of the supreme court? garrett: he is pretty young for supreme court judges. he is 53 years old. in all likelihood, he will serve on the court for potentially decades to come. you can only imagine what kind of tech questions will face him. you know, maybe we will even get a ruling from him on whether ai should be treated and given the same rights as humans. who knows. looking forward to 20 or 30 years, you can only imagine the kinds of tech questions that will come before the court. much more sort of in front of us now. there is a case about apple and

whether it has the right to sort of charge the commissions that it does on its app store, while making developers only develop for its app store. that is an antitrust question, and which is, of course, a very pressing and major question for the major tech companies. things like such is is amazon becoming too powerful, is apple too powerful, should facebook be regulated like a public forum rather than a private company that can decide what goes on in its own network? but he does tend to favor government kind of taking a step back. he has been relatively conservative when it comes to cases about ip and copyright. you know, some more progressive activists might want to push back on his strict copyright rules we have seen in the music, and recording, and television industries. he ruled in favor in sort of a more conservative interpretation. probably the safest thing to say about judge kavanagh is he is skeptical about the government getting too involved. but he is also conservative

about these sort of business cases. emily: walk us through the timeline. the democrats are fighting back and the republicans have zero room for error. especially in mccain's absence, and there are already some republican lawmakers who could be protesting this. what is next? garrett: as you saw in that clip earlier, the democrats are going to make this about abortion roe v. wade. , and the republican leadership told president trump that this, this was reported by other publications, that kavanaugh might be one of the harder ones to confirm just because he has been a judge for so long and has ruled on so many important cases, it is probably going to mean a lengthy process. in terms of the tech response and where they stand, the big tech companies haven't said anything. they have the lobbyists for startups and tech companies are holding their tongues today. if you are amazon, if you are facebook, google, a massive corporation, maybe you want someone like judge kavanagh on

the court who will have a sort of pro-business or pro-corporation interpretation on laws that come before him. emily: bloomberg's garrett de vynck. and if you're planning on being out in the sun, you will need some spf, and it is no different from nasa's newest probe that is getting the and if you're planning on beingr protection possible. it has been given an ultra heat shield to keep it from burning up as it will attempt to get closer to the sun that any -- closer to the sun than any vehicle before. temperatures will reach nearly thousands of degrees fahrenheit. it will be 4 million miles from the sun's fiery surface. the shields will help keep the probe cool at 85 degrees. nasa engineers installed the protective shield in june ahead of an august launch. they are hoping to make new discoveries about how heat affects life on earth. that does it for this edition of "best of bloomberg technology." this week we will have full coverage of amazon prime day.

tune in at 5 p.m. new york, 2 p.m. in san francisco. bloomberg tech is live streaming on twitter. check us out and follow our global network tictoc. this is bloomberg. ♪

>> president trump goes to helsinki having bashed his allies again and says the european union is a photo. -- is a foe. . ramy: he will meet president putin. critics wonder who is next in the firing line. paul: china again warns about a trade war saying it is a lose-lose situation. beijing says it is not scared of a fight. ramy: jay powell prepares to deliver