emily: i'm emily chang in los angeles, this is bloomberg technology. the latest on the broadcom acquisition. a memo sent to lawmakers calling for the deal to be reviewed has been tagged a fake. plus, is the verge of a tech disruption? we will speak to the analyst behind the forecast. can give it the edge over instagram -- snaps new shows and

give it the edge of her instagram, but will it be enough? broadcom has sent a memo reported to be signed by the u.s. department of defense is circulating among members of congress calling for a review of the company's acquisition is a fraud. the pentagon is also saying the memo circulating is likely a fraudulent document. where did the memo come from? we are joined by ed hammond in new york. what we learned? >> this memo is probably a fraud. broadcom has said there are problems with it. i got sent an earlier draft of what looks like and there looks like there are indicates is easiest -- there are inconsistencies. the date on it is august 3. if it is a real memo, that would suggest it is historic at this point. onre are other problems

terms of misspellings on senators names which is site -- slightly strange. thepentagon has also denied veracity of it. emily: senator rand paul has said this deal is a security risk and should be subject to national security review as a result of this memo and is a comment still stand? ed: that is interesting and will be the big question going forward. .e cites stuff from the memo know is is a company we something to look closely at in the past. they were blocked from eight thecomm acquisition because government did not trust them. do we do this on their new merger as they can only look at deals with their choir them

coming from the outside of the u.s. -- they acquire them coming from the outside of the u.s. one of the things they can regulate is any company that has interstate commerce within the u.s., they may take a look at if this is not a deal they want to go through with. the pentagon has not asked for a review. emily: you wrote appease a couple of weeks ago about how a rise in and policies of the trump administration is sapping deal flow. to movepected this deal forward and do expect other deals to not happen as a result of the policies? ed: the second part of that is easy, yes, we expect some deals to happen -- not happen as a result of the policies. any deal involving

infrastructure, which is a bit that is a noiece, go right now. does the deal go through? confident butre the spread is not huge. broadcom is now u.s. company but someone who has noise around him as an owner. based on a lot of deals in the u.s. going through previously, the only wanted blocked is qualcomm which is a different kind of deal but it will be significantly different taking up the largest single player in the u.s. in this industry -- in this area of semiconductors. there's a good shot this deal goes through. more broadly, we are looking at a tougher regulatory environment for any foreign acquired company -- u.s.,o u.s. kona

europe, and china. emily: the white house shot the qualcomm merger down and i know you will follow this story to find out where the memo came from. thank you so much. moving on to take investing. softbank plows billions of dollars into just about everything. this time, the target is the co-working start up wework. they want to have a controlling stake in that company which means the new financing can total anywhere from 15 to $20 billion. this is according to the wall street journal. softbank has a 4.4 billion stake in wework and they are not satisfied with one vision fund even though they have major investments in companies like uber and others. he plans to launch new $100 billion funds every few years. we have david for to discuss -- david kirkpatrick to discuss and

sarah frier. sarah, you interviewed masayoshi son. what do you make of this new wework deal? plan: it fits in with his to deploy $100 billion every two to three years. that is a lot of cash. the size of the wework investment would fit right in with that. it works for wework which is doing a big extension into asia and other areas. the one missing piece is will it pay off? emily: that is the question, david. wework was seeking a $35 billion valuation. this would be much less. it is still losing hundreds of millions of dollars and has yet to prove that the revenue bringing in a sustainable and if it continues to grow. is this a good bet for softbank? sarah: it might not -- david: it might not be a good

bet for some people but wework and the softbank vision fund our shoot the moon operations. wework is a shoot the moon company and the softbank venture fund investment fund is a shoot the moon investor. they are willing to make you make this bets -- humongous bets and are enabling each other. another 10aises billion plus from softbank, that allows them to do more. it begins to be a self-fulfilling prophecy. they're not making any money and far from it. if they can expand fast enough and go public, when the markets frothy, maybe softbank can get their money back and it will be great. even if it does not long-term be the only place we work. i work in a wework. emily: they have good things on tap. emily: masayoshi son believes

this is a big opportunity and they will not lose money on the vision fund in general. take a listen to what he had to say last year. vision fund deal is the preparation for a god-given opportunity similar to the goldrush era that is approaching. we have acceptable money from partners to avoid building debts and we are sure the fund will be a success. we should be thinking big for this lifetime business opportunity. emily: that said, what kind of returns are investors in the vision fund expecting? are they thinking two x, five x? usually close to tenant's 10x ifoes a good job-- it does a good job. sarah: they have already said it returns in excess of .2% -- of 20%.

year in and hea said his personal rate of return since 2000 has been over 40% annually. him what it has been since 99 or 98 before the big.com run-up and crash -- the big dot com run-up and crash. some of thee hoping personal magic he has had will rub off on the vision fund and he is prepared to make the big bets even if the bulk of them do not work out. he think he will have one or two that knock it out of the park just as he did with yahoo! and alibaba. it almost became irrelevant he had dozens more investments that went nowhere. because of that track record, investors are prepared to buy in and listen to him. with wework, he and the wework's

ceo have a personal connection where they are both prepared to make these big, brash plans and think the world will follow along in their betting on social movement as well as wheel of state that more and more people like david are going to end up working out of offices more convenient to them then perhaps the offices of perhaps the companies that they work for. vision fund has already invested and we are looking at some of the companies. there's a construction company and an e-commerce company. david, you may love your spot in your wework office, but i wonder if there is a concern that softbank, by investing so much is keeping companies afloat that maybe should not be kept afloat. david: i would not go that far yet. there is a real risk of that. we are in an extraordinary up

economy. a really dramatic upmarket beyond what most of us expected. these companies are growing. some of the softbank investments like nvidia is a really strong company and the other chip company, the name of which who arm.caping me, companiespowerful already hugely profitable. those are different kind of investments. i think the amount of money that softbank is trying to deploy with the help of saudi's and others is a little dangerous for the economy in general. these hughesfind bets and huge bets can go hugely wrong. so far they have not. let's hope they do not. emily: let's talk about the fund investment and wealth

investing another $45 billion in softbank's vision fund. what do the dynamics mean there? sarah: it's means that the saudis have been pleased with how the vision fund is performing. they have a big investment conference coming up in the next son isks and musty as he --ected -- my feel she son masayoshi son is expected to be there. they seem to have forged a relationship that is very simpatico with each other and they seem happy with it so far. the interesting thing at softbank might be more internally with all the on investment managers on board with this investment. this would be one of the bigger ones of the vision fund.

that is another question for softbank. emily: david, what are the political implications of the saudis having a huge stake in this fund investing in american and globally ambitious companies. -- companies? david: the political implications of anything connected to saudi arabia and the crown prince are different this week than they were before. if it turns out that the saudis murdered and possibly the reporter in istanbul which is looking likely, i think the reputation of the country and leader will plummet. many of us who believe in democracy have been somewhat distressed by the things we have seen in the autocratic approach of the crown prince has taken to changing the country already. some of them sound good on the face of it, letting women drive etc., but the way they are doing it is by assassinating citizens

when they criticize them. that will color and taint anyone associated with its long-term i believe. i would say of masayoshi son how closecareful with he stays to the saudi arabia prince. --ly: i should it is something we continue to follow. isn't technology pushing the automotive industry into a new era? one that could put tesla on top? one analyst is betting big on that area next. if you like bloomberg news, check us out on the radio. listen on the bloomberg app, bloomberg.com, and, in the u.s., sirius xm. this is bloomberg. ♪ this is bloomberg. ♪

emily: a big name dropped as a potential replacement as elon musk as tesla chair. this comes as tesla snapped a five-day losing streak shaving $10 billion after the company is on track to reach profitability. a short seller is betting on a dramatic drop saying tesla is between a rock and a hard place because it needs to raise money through debt or equity. has tesla reached a turning point? by discussed, we are joined a senior analyst who sees the industry entering into an era of unprecedented -- what is your take on this james murdoch situation? >> it makes sense. paradoxs this weird

whether want to rein in elon musk but do not want to do it too much. is part of the appeal. is pretty close to elon musk. he is also independent and has his own profile. he creates a little bit of a veneer of independence compared with what the board had before. emily: your note is likely the reason tesla shares have run-up over the last couple of days. i'm curious if this james murdoch potential makes you more or less optimistic. >> the most important thing is ont elon musk is focused building model threes and getting deliveries out. kept the focus down to that is a positive thing. it james murdoch can rein him in and prevent some of the tweets

going out, and the focus comes back to the deliveries which is the fundamental of the business, that will be positive for the country. emily: can james murdoch rein him in? elon musk's behavior has been has it has been. max: i think the reigning in will have to come from elon himself. because of his larger-than-life profile and the extent to which his personality has defined a tesla, if you believe in his company, you hope elon will see the light. not that the sec or board member is going to do that for him. if we have seen or learned anything over the last few , even it is that elon when tesla has been dinged for various reasons, he is willing to be his own person. i think the chairmanship is important and an important milestone for the company but that alone will not bring much change. emily: talk to us about how you

came to your conclusion that ofu is a b and in the face opposition from the bearsy that mentioned early analysts who believed tesla shares will go in the opposite direction? maynard: my big call is that we are taking an angle of looking at the sector from a disruptive perspective and a technology angle. a lot of people will talk about autonomous as being the disruptors. we look at it as the enabler. this will enable a platform ecosystem. think about developers building applications directly on top of the car and turning that car into an application. you download something, press a button, and turned the vehicle into a ridesharing vehicle, or download a different app and turn it into a delivery vehicle. are so bullishwe on tesla is that if you look at the commercial technology into the car, a lot of the platform

ecosystem technology is already there. that is what makes this positive long-term for tesla. emily: we know production numbers over the last several weeks have looked good. we don't know if they can sustain the level over the next few weeks. you are optimistic and believe production numbers will look good and believe tesla will reach profitability. what has to happen for that to happen? maynard: you are right. the outperformance is predicated on the near term and being able to generate cash. we have done a lot of work on zero emission vehicle credits. on the back half of this year, they can generate around $500 million. there is no cost associated with this so this is pure cash flow which helps in addition to the generations they will get into the fourth quarter. i also think they have unused that components they can tap which will be more than enough to cover the debt commitments coming up over the next three quarters. emily: max, we get new information tesla is closing in

.n $145 million plot china is a huge portion of the potential. what does this mean? max: the chinese market for electric cars is massive. not made much progress there at all. if they are able to get into the market and sell cars, that will go a long way to improvin their bottom line and generating huge amount of revenue. china, especially in the donald trump era, there are regulatory hurdles. being able to find a location for the factory is important as a first step. maynard,x chafkin and we will have a lot to look for and thank you both. a reminder, "bloomberg technology" is livestreaming on twitter. check us out @technology, and be sure to follow our global news network, @tictoc, on twitter. this is bloomberg. ♪ ♪

emily: ai could enable your smart phone to respond to messages on your behalf. a startup is said to be working on a new kind of phone that would mimic the user using ai to respond to you now's and text or book appointments on its own. the design is not like a standard smartphone. it has a smaller screen requiring users to interact mainly through voice command. an internal memo is growing momentum. --zon web services the memo says microsoft has also competed for the club deal. uber is marketing bonds at investors are

pushed back by cash burning tech companies. uber is said to go public in the second half of next year. still ahead, snap announces a large slate of original content, but will it be enough to take on instagram? big move onking a carpooling. we will talk about that next. this is bloomberg. ♪

emily: not announced it will release a dozen original series. the programming slate announced wednesday the biggest push into funding and producing its own content. walk us through what snap is unveiling here. they already have additional shows. >> they have had some original shows for a while but this is a completely new slate of programming. outsidee encouraged

content partners to make media. to build their brands on separate channels. it now, they are doing it themselves in-house. they really want to demonstrate that they can do a show that is mobile first. a youngerdirectly to audience. the question is whether it will attract users down the line. >> all of the shows are shot vertically. one of them is called endless summer. sneak secret to snaps future? >> that is going to be a big question. it snap has had limited traction with content offerings. most of the time spent on snap has been with the messaging portion.

to monetize, they have to do things like the discover side with original content and programming. one to got the only after this. you have facebook, netflix, amazon prime. well they will have to show more traction on these types of offerings. come outxecutives have saying these shows have been a have millionsey of viewers. how many people are watching? what matters is not how many people are watching individual shows, but whether that number grows. toy announced last quarter a klein daily users for the first time. shockwaveaused a thinking maybe this company will not get to a size big enough to compete with facebook and google for advertising dollars.

what they have to do is roof can the media aspect side be a big moneymaker down the line. there isn't enough public information on how the shows are doing to instill confidence. wall street is not too excited about the shows. the stock is down hovering below seven dollars for the first time. >> original content aside, how optimistic are you that snap can continue to grow? they are losing executives. the redesign has been a bust. is this all enough to get back to growth? >> that is a good question. gettingnot seen it yet. back to the roots of communication fast messaging

fast sharing of photos is important, it does not generate revenue. that is a problem they are trying to solve. you cannot be a good messaging app and make a lot of money on advertising. productto see more innovation. i think 25% of users go to be discovering side of the app on a daily basis. that is a low percentage. a memo was recently released two employees were he talked about how the company has lost focus and wants to get back to its roots. making fun of his use of the code word cheetah which is the name for this redesign.

what do you make of this memo? time --se a lot of spent a lot of time with evan spiegel earlier this year. the company sees itself differently than the other social media platforms. as adon't see themselves social media company rather a messaging company. world to to allow the experience things differently. he is trying to communicate more directly to his employees and address some issues with clarity a 15 page memon, is not always the best way to get that across. while some people thought this was a good eye into how he it was athers thought little rambling and concerning. he is still in that place where he needs to prove that he is the

visionary leader for the next generation of snap. the next quarter is going to be so crucial for the companies teacher. i'm sure many tech ceos don't love speaking to the press. we have seen mark zuckerberg mature. eric spiegel does not love talking to the press. up?ou think he has to grow is he still the right person to be leading this company? >> that is a good question. about company execution. they are losing a lot of users to instagram. they say their competitive mode

is speed of delivery. the letter was confusing. >> a lot to watch. thank you both. rollout ofouncing a ways carpool. users tore enables request rides from other members. the ultimate goal is to decrease the number of cars on the road. this has been tested in california and texas. ceo and askede about how the company sees itself competing with over and lift. >> we don't see ourselves as taking on over and lift. car toe alone in your work, that is our competition.

better to give you a experience so you are willing to take someone with you. , but theyart of this will be part of a full mobility solution. we are focusing on the long haul. san francisco to mountain view, we will give you a price that is a traction of an alternative. experience will be a lot more fun. >> how big do you think the business can be? >> we don't know. there are trillions of dollars at waste in our economy from traffic. the cost to our environment and health, it is all coming off this in a logical way that we commute. there will be tremendous value created here. how that is split up between the driver, writer, arbors, and as is yet to be seen.

>> the last time you were on the show was right before the acquisition area. why have maps not been integrated? >> ways is very independent. we have our own admission around traffic. this allows us to do things like carpool. we share data on the backend, but we have a different approach and mission. for us it is about removing cars off the road. years from now, if you think about ways you will think about us as the way you get to work every day. could integration ever happened? >> right now, that is not what we are focused on. more than enough to do in this new changing mobility what has the

benefit of the google acquisition been? >> we can approach something like carpool. it won't happen overnight. dick cheney -- takes a long time. if you were a startup in a public company, worried about your next quarter, if you did not have the ability to think that far you could never make such change. this brings together all kinds of players. we have municipalities and employers and a variety of companies working together. >> the company did not disclose even though they knew about it. you have trust in the company being undermined yet again. how do you collect and use it data on the users of the ways?

waze. wetays within ask our users to share additional data with us. the platform is built on users sharing data. fundamentally, the data that users share is what builds the service for everyone else. liftmforters like over and -- what happens if there is an accident? who is liable? -- designedenied to the service not to be commercial. we cannot make money on the service. amount you can drive and the amount we will pay out to you. the service is designed not to

a profit and to work within your existing insurance. that is the model that we have built. lengths toe to great make sure you can get out of that envelope which creates that space. checks, of background we provide the users with a lot of information. it is up to the users to decide who they want to drive with. feature which was asked for is women want to ride with their own gender. coworkers don't want to ride only with coworkers. we have provided all of these things. we want people to do their first ride. once you do that, you see that fundamentally we are all good people. i have heard stories of people becoming lifelong wrens through this experience. are also doing work with

the public and private sector. >> carpooling will have to be a joint effort. we are working with municipalities like san diego and orange county to provide incentives. think about hov lanes. they are incentives used to take another person in your car. if we can find that person for you, you will save time on your way to work. these are the kinds of incentives that municipalities can do. we think there is a place for everyone to work together. parking is a huge problem for most employers. coming together and one platform as we have done in the past, is a way we think we can make this change in society and how we drive to work. that was our conversation

with the ceo of waze. this is bloomberg. ♪

we continue our coverage of san francisco's of blockchain week. cryptocurrency is male-dominated. is cofounder of ios t pushing for more female involvement. talk to us about ios t, you believe fits into the broader blockchain and crypto landscape.

what makes this a good bet? >> thank you for having me. it is a blockchain -- astructure we are having not only the infrastructure itself but the whole ecosystem. we are helping with a lot of our producers and communities at the same time. >> it was trading around $.12 as of february but now it is close to one cent. how long can you continue to operate without mainstream use of blockchain technology? >> that is a good question. the market is bad at this time. everyone is worried about the price.

it is a great time for a project like us. they have washed out the projects that are not focusing on the social bag -- social value. we are trying to grow social value and we will stay in the badet despite of this market right now. we are not worried about the price. to bring social value projects to the world. >> are any customers using your product yet? >> yes. we are having some partnerships main now although our network will be launched at the end of this year or maybe the beginning of next year. right now, we have a lot of project partnerships going out. for example, last week we had a

partnership with a charity company. iny are helping the children a province. every pair of sunglasses you buy will donate a pair of glasses to a child. we are helping them to put all these transactions on our blockchain so that people they know that donate it will go specifically to the children in that province. we are trying to use the blockchain technology to cover the gap to win a charity company and the community. the majority of people working in crypto are men. i am curious what it has been like for you to navigate the blockchain industry as a woman. think that experience will change for other

women? >> at the beginning, it is definitely more of a male-dominated industry. it brings us some difficulty the first time. it brings pressure in a good way. we will keep learning not only what is happening as a society but also the whole blockchain thing. with more challenges like women coming to blockchain, it is changing the manpower society. of blockchain.pt it is to build a more equally social friendly environment. genders, races, social status shouldn't be a factor at all. >> we don't want women to be left out of wealth creation. thank you so much for stopping by.

up, tech regulations seems more like a when the negative. this is bloomberg. ♪

our guest got his start at paypal. he went to cofound linkedin. he is now one of silicon valley's most prolific and successful investors. he bet big on facebook early on and has always been captivated by the dynamics of social networks. we caught up with him earlier and asked about the distressed surrounding social media and if the government should play any role. possible that some regulation could be good. it is easier to do damage. future,nvention of the

to the lead in the industry that we have, i think we should be very careful. isre the dialogue should be not whether or not to regulate but what should the target be? what do we want out of the social infrastructure of social media companies? would we want on the handling of data? what do we want on the new evolution of these technological platforms? what are the guidelines? we want you as companies to tell us about these issues, report on them, we want you to be more transparent about them so we can see how we need to push you. whether that pushes a dialogue inquiry or regulation. regulation,were would it be on the subject of meaningful disclosure. disclosure i can understand. say yessome control to i want that and no i don't.

>> the question would be to figure out what kind of transparency do we think would be most helpful in meaningful to us? the first thing would be to tell us about this stuff. if you are not disclosing enough then we will make regulation to make you disclose. then, for example data security is it an ability to have controls and your understanding how your data is being used and your buy-in? bute probably are resolved how do you do that in a simple way that also leads to the ability to innovate in the future? as you talk to executives, how is the discussion about how you get in front of this? how do you address the brand challenge? what could they do?

thing is tohe key bew the you are to transparent and disclose so that you are in the wings people care about. they are investing in election integrity and data security. not just to do it, but to show people you are doing it. andar what your worries are we are working on them. it may take us a few iterations to learn it but we care about it and we are investing in it. then, to talk about that. path tothey are on exactly those conversations. >> that is the cofounder of linkedin. fullan catch their interview on november 7. that does it for bloomberg technology. coming to youg

from los angeles today. this is bloomberg. ♪

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we are counting down to asia's major market open. these are the top stories. u.s. stocks plunging the most since february as renewed concerns about the trade war. the s&p 500 tumbling to a three-month low while the nasdaq saw its worst day in seven ye