emily: this is bloomberg technology. in the next hour, president a $5 is firing back after billion fine was slapped on google. how this could escalate trade with china and it u.s.. -- u.s. and eu. zuckerberg backtracks. deniersnts on holocaust

has people once again debating free speech on the social network. to our top story, president trump is weighing in on the record antitrust by the eu slept on google. the president took to twitter saying "i told you so." the european union just slapped a $5 billion fine on one of our great companies. they are taking advantage of the u.s. but not for long. official said this rejects the business model supporting created more for everyone. we attend to appeal. caroline hyde joins us from london and mark bergen who covers all things google and out for that. mark, what do you think of these remarks? is this about america first or uroplasty -- europe last? sense thate some there were calls to have the doj and ftc by similar cases.

this seems to be a little less calculated than that. this is largely around his opinions of europe and tariffs. it is interesting that the news corp., who have been the largest complaint and's against google and the european union, have strong ties to the white house. either they are not being effective in their anti-google lobbying or something else is in play. emily: according to politico, trump has claimed that the eu competition commissioner hates the united states and, in a g7 meeting with european commission that shesident said really hates the u.s.. in the press conference you attended, caroline, she responded to what the president said. take a listen. >> i have done my own fact attaching -- fact checking. this is 100% correct.

i work with tax and i am a woman. this is not correct for the latter part of the sentence. i very much like the u.s.. was the euline, prepared for this kind of backlash from the united states and perhaps directly from the president? >> i think she was. she prayed herself from saying fake news but this is generally a woman who has plenty of criticism that she targets the u.s. successful tech companies. some claim she does this too but -- two put europe up and pushed back of the tech companies. expecting criticism from donald trump, she dodged that question trying to focus on similarities and the fact that they have shared views in terms of the customer comes first. what she is saying is that no, she does not in any way have an

issue with dominance of google in the eu as long as they play by the rules. that is the key takeaway. she has felt they have had illegal behavior and that is why they find -- find themselves in this fine. not her personal feelings. saying this is because they broke the rules. i think she obviously anticipated political tension that this would antagonize donald trump. emily: mark, reaction from google yet? >> not anything publicly. emily: that's good news for them. rishaad: it is weird news. years, they two talked to people internally to position around the president's immigration policy. google has been opposed and they are very cautious to come out as the so company against that in

part because they did not want to get a tweet from the president. now they get their first tweet, they are positioning themselves as a very global ambassador. they clearly do not want this image of being behind u.s. and being that sort of policy stance that they want. emily: caroline, google intends to appeal as it stands. who are the winners and losers as a result of this decision if it stands? >> if it stands and they have to change their business model, and indeed they have 90 days to do that, if they have to take google search off automatically from your samsung phone, maybe samsung starts to win because they are developing their own ai and want to bring their own search tools. orbe they start to win maybe being sees more pickup. -- bing sees more pickup.

said google had been breaking antitrust laws by inserting google search and google chrome within android smartphones, and since then, since they have been forced to offer on and void -- on android platforms, you are starting to see a pickup and other liable -- other rival searches. they are shifting the dial and we could see more movement to different search engines and therefore, slightly less advertising dollars going google's way. it will be interesting to see how much of an effect it will have. many feel it is too little too late. there's not much i can shift. thing: mark, is there any backing the claims? no stronghere are

tech players in the eu, and rather than playing on a level playing foiled -- plainfield, they are taking this measure as a rotella toward measure. think certainly google can now point to the president's tweet and public positions and say that, to republicans that have come out and attacked them, the president is on our side in this position. emily: could you think wins? is it samsung, handset makers? rishaad: one of the interesting questions -- >> one of the interesting questions is that google has won the market and it is hard to see rivals come out, not because of the policies from android but because google is so far ahead in his position with very popular consumer apps and services. mark bergen and caroline hyde, thank you both. we will follow the tweets.

the story we continue to watch, comcast has surrendered to disney. it will no longer compete to buy 20% three fox. -- 21st century fox read they will try to take -- fox. they will take control of the sky. if disney would be willing to sell the stake to comcast. coming up, grabbing a ride, how and uber has its sights set on asian countries. if you like bloomberg news, check us out on the bloomberg app, bloomberg.com, and in the u.s. on sirius xm. this is bloomberg. ♪

emily: when it comes to ridesharing in the united states, the first things that come to mind are uber and lyft. but in southeast asia, it is a different story. that market is expected to grow to more than $20 billion by 2025. one of the top names in the market is a grab. since 2012 when they in septic, they beat out and bought out in the area asns it operates in 225 cities across eight countries. grab is now setting at sites on creating a we chat like super app. encompassing everything from map payments to -- from maps, payments, two other services. did you have any idea that you would be here in six years? >> every year is a new journey.

and we first started the company, the initial ambition was to sell space in malaysia. we have grown since then. emily: 225 cities, it countries, was the outlook for future growth? how much bigger can the market before you? >> we launched grab platform to go intor strategy much more. it sells food, logistics, payments, and we want to become southeast asia's everyday super app. emily: grocery delivery is one of the newest ads? tell me about it. hooi: we launched a partnership with happy fresh. we think this is tremendous because groceries are the highest average household spend for all southeast asian

families. emily: do you think you can do all of these things well? hooi: this is why we are very focused on the partnership approach and it is a critical pillar and how we launch grab. we want to bring together the best partners on board to leverage the assets we already have. today we have more than $100 million. we serve more than 7 million drivers and agents. we have the largest distribution network in southeast asia. the technology platform that has been built as well for just southeast asia. emily: what areas are you considering to expand to? hooi: we are focusing on every day, not everything. things a groceries. we've also launched a cyclist platform with cyclist and scooter platforms -- partners. you should not expect the ability to confine. emily: how do you guys make

money in the partnership structure? hooi: i think it is different depending on what kind of business and what kind of services we are getting. our partners can see three type of methodologies. happy fresh is not fully integrated into our services. they will use happy fresh through our app. where we also touch touch -- where we partner with e-commerce platforms where we can see grab a pay and grab deliveries as part of the checkout. there are these different kinds of transactions, and there is a third one engaged in our platform with grab rewards which is the largest platform for rewards in southeast asia. as you guys are expanding, singapore's antitrust agency accused grab of having monopolistic power in its home market. you said you disagree and plan

to appeal. how? hooi: for context, that singapore government launched a pulmonary announcement on some of the investigation into the acquisitions. andtly, we disagree with it of course, there is a form of appeals process which where we are writing officially to them and having ongoing conversations. this was one of the largest transactions of southeast asia. we are not surprised the regulatory bodies are doing their jobs. they want to same things we do. which is for the best customer experience for the simpletons of signator -- singapore. emily: do you think you will monitor your strategy is a result of these inquiries right now? it is interesting to have the antitrust agencies, but you also say you want to be a super app. hooi: think about what we have

been doing over the last six years, over our history, we have been doing it consistently where we create markets and build new businesses via technology that changes the status quo. because of that, every time we do anything that adds value, it is growing, changing, building and away, disruption in a positive way. -- building in a way, disruption in a positive way. we work together to figure out how to deliver this outcome. it always also takes a bit of time to figure out how we do it together. emily: last year, grab made a op getting -- co uber's shares. how is the integration going? hooi: it has been a fantastic experience so far.

it has not been 100% smooth. dara sits on our border now and he has been a great board member. operationally, the integration is doing well as well. all drivers are using our platform and it has been pretty smooth relative to the size of the deal. emily: i never quite understood how the communication between you and our work because grab and uber are still competitors and other territories. hooi: grab is very focused on southeast asia. uber no longer operate in southeast asia. emily: do you have no plan to expand beyond the southeast asia? hooi: it's important to understand southeast asia is a huge market. it is the third largest population in the world. it is larger than the america and the eu. we are moving into a platform play to become a super app or southeast asia. emily: what are issues that you and/or are working through?

give me some examples -- you and dora are working through? -- dara are working through. aoi: he has been like shareholder and great at it. he has been able to become a business partner and sitting on both sides, he gets to share what has worked in uber and what has not while he learns from my experiences as well. emily: you mentioned grab is starting to address the fact that a grab driver was stripped and robbed. what are you doing to better protect drivers? hooi: we're doing a lot. these instances make us sad because we know there is so much more than we can do, not just for passengers, but for drivers as well. some of the recent things we have launched have been like emergency buttons collect to lows will -- local police enforcement.

we're also looking into passenger safety which was historically not needed. i think it is important to note that as the economy evolves, many different people are taking means that are not great to earn an income. we are doing what we can fulfill the promise of becoming the safest platform in southeast asia. right now, we are five times safer than any alternative transportation. we want to make it zero safety incidents. emily: how does this compare to uber and lift and others -- uber and lyft, and others. how ourt me share platform is different in terms of what kind of services you can get first. uber app is a car service. cars,a, we have taxis or we have motorbike taxis as well. ridern jump on a civilian

on the small bike to weave through traffic. shuttles and integrate with public transportation. that is just on the transport side. for a driver of motorbikes, you can pick up passengers, deliver food, deliver things, and now groceries. there is significantly more income than we ever have had with purely just contract workers. emily: we've been talking about they runer market and into a lot of regulatory issues in the united states, are you running into the same issues in all theseasia where new forms of transportation are popping up but cities and countries are not ready? have the good news is we already been doing that for the past six years and have had a lot of successful conversations with various regulated bodies.

in singapore, we launched with 100% oversight with the government. fix pricing for tax season as well. this overrides the tax needs in singapore. if you think about what that means, as a five-year startup, when we lost the product, singapore governments said we trust you enough to serve the citizens of singapore in a way that is different than what the original taxi industry has done for decades. emily: are you interested in m&a and the partnerships or companies to buy to fulfill the super app mission? hooi: we have had a few m&a and some are like where we talked to millions of agents. we also recently launched grab centric where we are hoping to help startups. we don't want to go through the same challenges we did when we were trying to build a regional company. emily: are there other areas,

and if so, what areas do you see buying rather than building partners? hooi: it is a case-by-case basis. what we do is we identify growth areas and try to figure out if they are partners that can deliver with the right in an optimal,s efficient way. if not, we make a decision on whether we build it or we buy it from someone else to continue building as well. son spoke about availablearing is not in japan. is that a market pursued if allowed and you see potential progress there? hooi: going back to the point that southeast asia is a market where we understand the customers, it is a market where we know what needs to be done and we have lots of existing partnerships to leverage. that is the market we are focusing on.

always ask about australia, japan, china. we do not see the need to go there because there is so much more to do in southeast asia. numbers, it has been close to a digital transformation wave bringing $1 trillion worth of impact to the economy in southeast asia. the gdp in southeast asia is 2.6 trillion. think about how much more we can do together. e will grab be in the next six years? hooi: i wish i could tell you. emily: tencent? hooi: i hope not. we used to be called the uber of southeast asia. we want to be the grab of southeast asia. but we are focused on his understanding what are the key everyday pinpoints of grab becoming the everyday super app and solving that with this many partners. emily: grab cofounder, thank you

so much for stopping by. i had this hour, is tech taking our job? a genetic scientist proves it may be creating more opportunities. bloomberg tech's live streaming on twitter, you can check us out @technology. and be sure to check out our news platform on twitter. tictoc. this is bloomberg. ♪

emily: ibm one back investor trust one day after announcing second-quarter earnings that beat consensus estimates. the manufacturer reporting a 2% revenue gain and $20 billion in the second quarter while were $19.9 billion. this is the first growth after of revenue decline. investors want to see other improvement in cognitive revenue. investors are worried that he by -- ebay is losing momentum. he gave a lackluster sales cast

for the quarter and lowered its forecast for the year. ebuddy -- ebay is trying to find its place in the shadow of amazon. more when we return. this is bloomberg. ♪

♪ emily: mrs. "bloomberg techonology, i am emily chang in san francisco. crypto insurance. there aren't two many details -- there aren't many details on how this works. a is an industry worth well-deserved reputation for being like the wild wild west, an unregulated digital frontier. and as cryptocurrency blockchain technology slowly gain appeal and acceptance, insurers are betting that they can avoid the pitfalls. we are joined by chief commercial officer sunny

tseng. how does crypto insurance actually work? >> we take it very seriously. we have had our insurance providers on it as well, and we think it is a necessary evil. you have to have insurance, as ashley with this type of money floating around. we raised enough money. we have a large new york equity firm that is focused on insurance, run by jeff greenberg number from a ceo of marshall mcclellan. we are working closely with them to work on an insurance strategy, because most people do not know how this works and they are trying to make the rules as they go along. emily: how about the risks you are taking on? right, bit pay -- doesn't

have a lot of insurance risk, but we have a lot of money that merchants are holding, the you all have to worry about risk. emily: what about the view that some crypto currencies might overstate the amount of insurance that they have. sonny: that is something that consumers have to worry about, the regulators have to worry about as well. bitday, we spent a lot of time with the insurance companies. we just got approved for a license, which is all about transparency of your financials and management team. emily: what does the license allow you to do? sonny: it gives you credibility in the state of new york, consumer money, it gives you the credibility that insurance and regulars have looked to even approved what you are trying to say and do. emily: do you think about insurance well invigorate the

industry? . the fact that there are some projections, will that attract more investors? sonny: i don't think it will invigorate the industry, and is already pretty invigorated. --t year, was the hike cycle the hype cycle, this year is about realization. we build thiso product that is here for real bitcoin? it is no longer just a fad. you are starting to see investment company such as fidelity, lack rock, altering to enter -- blackrock, all trying to enter the space. emily: how is demand for crypto payments not that the prices have fallen so much? and it is not recovering either? sonny: yes, and i do not think it will require for a while, not until companies make it more

mainstream, versus the rumors where we heard a couple of days or, that some of them might might not do it. we went to see the reality of what people are actually doing with it. i think we will see that next year, when fidelity launches a custodian service. , your mainstream adoption will start to see people use it and then that is on you will see the price break 20,000 again, i think? sonny: so there is still a lot here.ey to be made here ye i am looking for a year. emily: where are you seeing the most demand? sonny: all the merchants we talked to right now do not worry about the price, they are all putting crypto on the roadmap to go live next year. emily: what about the second half of the year, what will it

look like for crypto? sonny: i think you will see more companies like the fidelity's of the world, planning and working with regulators to lunch and approve solutions. you will start to see that coming out at the end of the year or early next year, all trying to compete with companies like coinbase and bitpay. emily: thank you so much as always for stopping by. sonny: thank you, emily. emily: this company is betting big on its cloud business, and second-quarter results showed a boost in cloud services. cfo spoke with bloomberg. he says that there is still gas tank to sustain cloud sales well into 2020. waslub subscription growth actually the biggest growth rate would have enjoyed in quite a even if youd discount the latest acquisition

that we have been doing, which has been closing in the beginning, which makes us very strong as a player in the first growing market as well, we midd've been growing in the 30's. so the organic growth machine is definitely accelerating. we see great prospects for the remainder of the year, which is where we have raised our guidance with another 50 million in the high-end, after having raised it already in the first quarter. >> the cloud business obviously is all the rage. crm -- and the crm business, you just launched a new suite. what can of growth do you expect in that area of the software universe? will you be making any acquisitions qamar is it all going to be organic growth? or is itquisitions,

going to be all organic growth? luka we have been making a lot of moves, with acquisitions of certain companies which can offer our customers end-to-end portfolio. they are perfectly complementing our organically developed see room salesforce automotive solution -- automated solutions. we're also tried to come up with really compelling customer management solutions, which is really a differentiator because you can now offer our customers to really manage the files of their consumers with data privacy in all towns of interaction. we have also done an acquisition in the service management space. so from that perspective, we have the main assets we need, and we see absolutely an exponential growth opportunity

in crm. this is the biggest software applications market. has so far been underrepresented in it and we are breaking this out. you will be able to track our progress on a quarterly basis, and the growth rates there are spectacular. you can see that in the first half of the year, this business has been growing in the triple digits, and the commitment stands, you will continue to see the triple digit growth for the next future. emily: that was the cfo of sap. lunch at the world's first smart loan technology in an effort to getting a mortgage faster and easier. the startup, that has investors like nfl quarterback joe montana, raised a lot of money in the funding round.

it runs continual compliance checks, to avoid application bottlenecks. companies can also get advice on financial decisions. coming up, we look at the future next.e editing, and later in the show, the facebook ceo speaks out trying to set the record straight on comments about holocaust deniers on facebook. this is bloomberg. ♪ ♪

♪ emily: while concerns continue to rise on the risk of job automation, technology is also creating new jobs. gene editor dan carlson saw a need for his work in in unique group, farmers. the process that is particularly in full for animals itself,

seems to have found a solution in his work. we have a report on this. >> this is brie. he might look like any other call, but there is one thing about him that sets him apart from his breed. he has never grown up their horns. that was not a fluke of nature. parts of his dna were rewritten by this man. editing, tools in gene santos like him are gaining unprecedented control -- scientists like him are gaining things.over many >> my name is dan crawls and i am aging editor. the field is changing, almost daily. gene editor.a

this technology will improve our lives in so many ways. >> here in st. paul, minnesota. >> this is the embryology of lab. >> he is tackling a problem that has big farmers for generations. most dairy cattle are born with horns which they can use to hurt each other and their human handlers. because of that, worldwide, farmers are move horns from millions of dairy calves each year. but it is a painful and distressing problem for animals. dan wants cows to be born or hornless and remove the practice of removing them altogether. ♪ dan's passion for animals to him's, growing up on his farm. it is run by his dad, who has a

very fitting name. >> this form is where my dad started off forming -- farming. i never dreamt that dan would be a scientist. gene editing sounds kind of science fiction to me, but i am very proud of the work that he does. . >> they look hungry for darwin,. dehorning has always been the worst part of his job. >> they holler like crazy, so you know that it is not a comfortable thing that is happening to them. >> six years ago, dan started working on developing oh ornless dairy cattle. using a gene editing tool discovered less than a decade ago, his team took a dairy cow's sell, cut out the genetic segment that makes the horns grow, and inserted them into a

gene segment that makes certain less.orn they've been inserted it into a surrogate mother and waited for nine nerve-racking months. >> you expect it to come out without any horns, but you just don't know. world's first cow to be jen edited for corn -- jean gene-edited was born in iowa than shortly afterward transferred to uc davis. strong. incredibly i can see why would be dangerous to have horns on him. >> yes, they use their head as their defense. it is natural for them to do that. but when you have a 1500 pound animal moving their head like that it doesn't take much for them to do significant damage. >> biologists are now pouring into the field of gene editing,

coming up with new applications at dizzying's needs. if it goes according to plan -- dizzying if it goes to plan, it could change all of our lives for the better. but how much of tinkering with nature is too much? our answers will shape the future of dan's profession. >> whether this strain of animals takes off, it is really up to the government. i cannot do a lot about those things, i can only do my job. emily: that was bloomberg's aqib aki ito. coming up, facebook's ceo wades into the freeze each debate. we will discuss that, next. this is bloomberg. ♪ -- the free-speech debate.

♪ emily: when tech companies start

raising alarm bells, you know that we are facing serious issues with children's screen time and social media use. by the jury is out on how much much. time is too a study has found conflicting information about how social media affects your child's mental health. our quick take explains what is next for children's relationship with technology. ♪ car screens at disrupting childhood? in short, yes, but it is complicated. the average age for getting the first smart phone in the u.s. is about 10. half of all american and british kids have social media accounts by age 12. smartphone building teens are glued to their phones, using social media to share sensitive data about themselves, during ahat can already be tough time navigating puberty adolescence. there are worries that this can

be addictive and researchers say that it can lead to a bullying and depression. a recent survey reported that 22% of 8-17-year-old said they had been bullied online. but there is a flipside to this. >> there is evidence to suggest that kids can use smart phones for up to two hours a day if you spend time sharing positive information on social media. >> i am the tech editor of bloomberg in europe. havelike anything, if the responsibility of the parents to manage a. >> parents are not the only ones bells. the alarm a group of pediatric and mental health experts are lobbying facebook to discontinue messenger kids, a version of its messenger up for children ages six to 12. most platforms have age restrictions but the on the system is virtually impossible to enforce. after claims from two of his

major shareholders to address this, apple unveiled a new feature to help people take control of their habits. >> we know that i can help families achieve the right talent for them. >> meanwhile, experts still cannot agree as to how serious a threat this is. >> most of the evidence is new on whether social media is a good or bad thing. you have to remember, snapchat only happened in 2011. we don't know how long it takes academics to come to the conclusion. >> like it or not, social media is here to stay. putting parents in a difficult bind. letting children run amok or risk as the leading them from their peers. emily: lots to think about as apparent. speaking of social media -- as a parent. speaking of social media, facebook ceo has clarified his remarks. he originally said that -- i am jewish, there is a set of people who did not the holocaust

happened. i find it offensive, but i believe at the end of the day, i think there are things that different people get wrong. i don't think they are intentionally getting it wrong. he clarify the comments in an email saying -- i personally find holocaust denial deeply offensive and i absolutely did defend theto intent of people who deny that. but the only way to prevent bad speech, is a good speech. manus guesses here to discuss that. how did that even happen. ? >> he was trying to explain what facebook does with people who deny the sandy hook elementary school murders. he was saying that in some harassment. like if you go to the victim, one of the parents of one of those children and saying that -- your child was not murdered, that would get taken down. but if you are simply denying it happened, he might not the

intentionally trying to harm anyone, so therefore, facebook would not take it down. he tried to explain that was. the most unsympathetic example possible, the holocaust, which you probably should not bring up on a spontaneous podcast interview situation. emily: and his apology doesn't necessarily sound like an apology. >> facebook does have this policy to allow people who deny the holocaust to remain on there for years. they discussed it in 2009. it is a very common issue for social media because holocaust denial is one of those things that you have to decide early on. it is illegal in germany. so by saying that you allow it to be legal elsewhere, you are making the distinction that your website will only take content down when it is absolutely necessary. emily: really fascinating, especially when going into the midterm elections. facebook continues to deal with these questions of biases. i recently sat down with

president trump's 2020 campaign manager, who ran the 2016 digital campaign. take a listen to what he said about how facebook was influential in their winning. >> i have been very specific that i think facebook is how we won in a lot of ways. i think president trump won, facebook deliver his message and if facebook had not existed, it would have been tougher. emily: but then he goes on to well against facebook and other social media companies for liberal bias. >> it is up to me to be a person is a leader in our party, or someone who was writing the campaign, to make sure these accountable. held that they do everything they can to try to kill those internal biases and provide a playin levl playing field. emily: in a way, he is anointed himself the arbiter of what is not. biased on facebook how is facebook going to navigate these

issues going into the elections? is anything going to be different? >> and will be a lot harder for facebook to do that if they decide that truth is a matter of opinion. people are getting angry at facebook for 11 content to be on there that they do not agree with. this company is really trying to deal with these people who say that they have anti-conservative bias. they've hired a former senator to advise them on this. they are looking into it, but on the same side, they have made changes to their algorithm that has not in a fitted conservative .ommentators they have built this site that is a place where ideas on either side get more attention than ideas in the center, or ideas --ters of the fact-based ideas that are simple fact-based. but they cannot make it very political. it is tough for them.

emily: while it is evolving. facebook is navigating its way through all of these thorny issues. thank you so much for joining us. a medical lab testing company appears to have been hit by ransomware attack. labcorp handles millions of blood, urine and other medical test each week. their servers and devices have been affected by the attack. the report says that there was breached,tion of data and they plan to replace the affected devices that. does it for this edition of "bloomberg technology." i'm emily chang. we will see you back here tomorrow. this is bloomberg. ♪ retail.

under pressure like never before. and it's connected technology that's moving companies forward fast. e-commerce. real time inventory. virtual changing rooms. that's why retailers rely on comcast business to deliver consistent network speed across multiple locations. every corporate office, warehouse and store near or far covered. leaving every competitor, threat and challenge outmaneuvered. comcast business outmaneuver.

♪ >> the dollar soared after president trump attacked the fed. he says he is not happy about rid arises. >> microsoft is rising after hours as it's clouded driven turnaround continues. --es popped $30 billion topped $30 billion. >> the eu identified trade targets in response to washington's friend duties on cars. brussels says nobody can win. >> chip industry