emily: i am emily chang in san francisco. coming up in the next hour, facebook under fire again. could the social network itself be the one threatening to marker see? we will discuss the -- threatening democracy? we will discuss. uber moves one step closer to releasing data on sexual assault. our sit down with the chief legal officer when you're into the job.

and, apple rebounding after hitting the longest losing streak in six months. why investors are questioning their faith in the iphone going into the crucial holiday season. first, to the top story. it's no secret facebook has been struggling to keep up with fallout from its platform being used for election meddling. now, a blockbuster times report -- new york times report shows just how far the company has gone to protect itself. and cooally how the ceo went on the offensive to fight back against facebook detractors. this includes lobbying and going after lawmaker opposition. even hiring an opposition firm to paint its accusers as anti-semitic. specifically holocaust survivor soros.lionaire, george letter, to an open sandberg, the notion your company at your direction

actively engaged in the same behavior to try to discredit people exercising their first amendment rights to protest facebook's role in disseminating propaganda is frankly astonishing to me and disappointing to see how you have failed to monitor hate and misinformation on the platform. to now learn your active in promoting these distortions is beyond the pale. zuckerberg defended the company against the reporting on a call with reporters thursday. take a listen. >> to suggest we were not interested in knowing the truth or that we wanted to hide what we knew or that we try to prevent investigation of this is simply untrue. added that facebook will form a new independent body to review content decisions. here to discuss a sarah frier who covers facebook and david kirkpatrick. onh of you were listening in this call and zuckerberg seemed to be on the back foot here.

reporters were firing questions at him, who's getting fired as a result of this. walk us through what zuckerberg had to say. sarah: when i thought was interesting about this call in relation to calls past was that he was willing to say there could be people who could get fired because of this. he saidous calls, everything ends with him and he takes full responsibility. in this case, he said we did things wrong and we are always making personnel decisions. that is as far as we have ever gone as far as him saying he had to fire someone. one of the first pieces of fallout is that the firm that ,ade the link with soros although it was true there were financial relationships there, that firm has been cut from facebook ties. they're no longer working with them. did notrg said that he know about the definer's relationship and he was not informed about the way the company was using them. emily: this firm, the definer's,

it's interesting he admitted on the call that he did not know anything about it and learned about it in the new york times piece. i want you to take a listen to what he had to say about personnel because i think it is worth hearing exactly what he had to say. >> i generally don't talk about specific cases of that in public. it's not that we run the company and people make the mistakes and there is no consequences, it is that it is part of the normal process of running the company. we are evaluating performance and making changes in roles or in some cases finding different people to do different roles when we need to. that is an ongoing process in part of running the company. we will certainly keep doing that. emily: this after being pushed reporters. david, you have read the article and listened to the call. what you think about these revelations. -- what you think of these revelations is the most dam ning?

david: it was amazing the defensiveness of which the call was conducted. i think facebook is coming to a sense of responsibility so egregiously late on many of these issues of misuse and abuse, and political manipulation abuse, and political manipulation that they are forced into an extremely uncomfortable position. what the article laid out, i think it is not shocking to us that follow the company closely, but it was laid out in chapter and verse. it was in the title. delay, deflect, and distract. that has been the company policy. the other thing in the headline was leaning out. this article was very much about sheryl sandberg and her role being a progenitor or -- progenitor of a deflecting tactic. it's interesting she was not on the call today. emily: it's interesting to see

some of the internal imaginations of how facebook work. mark and cheryl have surrounded themselves for loyalists. for this story to get written, people were talking. .e heard about in exchange the detail is unusual. the board came out with an estate -- came out a statement saying they did push market cheryl to move faster on this interference, but to say they were not interested in figuring it out or getting to the bottom is grossly unfair. sarah: i think david is right. the story points directly at the book that is run by cheryl and the strategy she -- then praised for strategy and she has been .raised for notes afternk you

meeting with people and those things have a very different tone to them when you think about the broader narrative that facebook is trying to propagate which is that they are on top of this, willing to change and behind the scenes to have one of their top executives talking to members of washington saying you really should not be as hard on us. this is not something you should look at. that kind of thing is very concerning because you have a behind-the-scenes that is different from the pace book -- facebook people are trying to portray. emily: are some of these tactics -- some of them are representable that's reprehensible but some are used by all companies lobbying on capitol hill. is it fair to criticize facebook for them when we can presume other companies are doing this as well? david: i don't think there is anything wrong with the company managing its image. that is what pr is all about,

but what is unseemly here and which the article laid out in devastating detail is that even as the company has essentially been in active in addressing disastrously harmful social effects it has, it has been extremely active in managing its image to try to undermine the impact of people thinking it was bad at managing the social harms. to me, the former is much more important. i think the article may be did not hit as hard as i would have but that is what they need to be focusing on. not image, but substance. the board of oversight is a positive move. sucker brookstone in general was the best tone i have ever heard in terms of taking, seriously, the set of problems they face. but why they did not have the attitude years ago is the real

question that is not yet answered. emily: let's take a looks and to what zuckerberg had to say about this independent content review. thathave come to believe we should not be making so many important decisions about free expression and safety on our own. we have been talking to people about this for some time now. i've spoken to many experts starting in the summer. today, we are announcing we are making a new independent body that people will be able to appeal to that will have the authority to determine whether content should come up or stay down. emily: david, do you think there will be high-profile executives who leave as a result of this? i'm talking about going all the way to the top. say, and i talked to a lot of facebook experts, critics, thinkers, analysts, there are quite a few people

seriously questioning cyril samberg -- sheryl sandberg's role. i don't think she will be forced out because wall street will freak out knowing she has been the architect of the business that is the business that laid -- architect of the business that is the goose that laid the golden egg. she is not imposed significant governance into the system she had designed. that is where the question is being asked. emily: we know this company is scrutinized in washington and lawmakers are looking closely. has anybody suggested this company, which owns instagram and whatsapp, should be broken up? sarah: what is really interesting about what we see happening in the last year is that facebook has taken those external properties and brought them in and created what they are calling the family of apps which includes messenger, whatsapp, instagram.

this data is being shared amongst them, there are resources being shared amongst them, and the leadership changes this year with or without wanting them to happen, the founders of instagram the the founders of whatsapp left, and that opened up opportunity to really connect with these other apps more. i think they are making it harder to be broken up if somebody would come in and do that. democratar the leading t starting next yee to take a close look at facebook's practices, especially in light of what we heard in this new yesterday, that this is going to open up an opportunity for democrats to be harder on facebook. emily: sarah frier who covers facebook for us, i know you will continue to follow the story. and david compactor, thank you for weighing in -- david

kirkpatrick, and you for weighing in. uber is expected to launch one of the biggest ipos in history next year. will their continued losses stand in the way? we will discuss. 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. ♪ sirius xm. this is bloomberg. ♪

emily: uber has been spending more to fuel global growth, but it's the losses that seem to be growing. uber reported it lost more than $1 billion in the third quarter.

that's a 20% increase from the second quarter. while they look to diversify with scooters and bikes, growth appears to be slowing. they reported growth in the third quarter, almost half the rate six months earlier. the company is preparing for what could be one of the biggest ipos and 2019. here to discuss his eric newcomer. so why is it losing $1 billion in this quarter months before a potential ipo? eric: uber would say scooters, food delivery, investment into autonomous vehicles, we don't actually know. specific not break out numbers on ridesharing and part of the uncertainty around financials is that there is not visibility. losses are a war in the united states or investment and growth? emily: what's the timeframe? -- timeframe for the ipo? eric: he has stopped talking about it.

-- the ceo has stopped talking about it. next year, hopefully in the first half of the year. emily: will the company be ready in a matter of months? eric: their chief financial officer deflected several months ago when he had to figure out what's going on with the company. they have not said we have all of the pieces together, but it is a professionally run company. emily: give us the bull and bear case here given bankers are shopping $120 billion valuation. eric: the bull case is that the loss is mostly about growth. when we see the ridesharing business it will be good, they can make a profit with less competition, or when they make tactical decisions and eats is becoming one of the biggest food delivery companies in the world. there are a lot of these is that create this feature amazon scale business. the bear case is that they are hiding bad ridesharing numbers

with losing money through the food delivery business and you can make a lot of revenue by giving someone something for less money than it costs, but you need to make a profit on the service to have a profitable business. we're not seen evidence uber can do that. emily: how big is uber ease relative to the rest of uber? do we know? eric: they say it is like 17% of their total gross bookings which is not a perfect number because -- emily: it counts the food. eric: exactly. it's a number two pick if you want to make the point that uber eats his big. revenue baseson a the size of uber eats but it is a priority for the company. emily: the other businesses are really completely nascent. eric: right. self driving, they are surely spending a ton of money on r&d,

but it is not a revenue generator. scooters and bikes are extremely early. the company announced a reward program that had not even included scooters and bikes because it is so new and they did not have time. emily: uber analysts announced rewards programs and uber's seems to be more flushed out but they reiterated he idea that rideshare is a commodity like a hotel or airline. it is a page of the hotel and airline handbook. how much is lyft eating away at uber market share if it is? eric: i think lyft got somewhere near 30% market share. it is not the gains in market share, it is the fact that uber has to keep spending and discounting what it was like -- what it would like to charge riders on the service. booming has made it hard for companies to recruit drivers. the competition makes it a low margin or no margin business in the u.s..

doris at publicly at the wall street journal conference that the company is not contribution margin posits -- positive. that is problematic. the competition with lyft is challenging for uber. emily: eric newcomer, keep the company on its toes. thank you. up, uber's 53 page report on sexual harassment misconduct and assault. is rooting to be a force to be reckoned with in the battle for e-commerce. how it plans to take on amazon globally, next. "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. ♪ oc, on twitter. this is bloomberg. ♪

emily: amazon beware. walmart is ready for battle. they posted third-quarter earnings and it is clear that

they are coming after amazon hard. notrosy forecast ahead was enough for some investors and the stock fell. walmart is expected to overtake apple as the third largest e-commerce retailer in 2018. proving to be a fierce competitor. at a down with the cto conference monday before earnings to talk about the competition. >> their strategy and ours is different. we are trying to focus on hundreds of thousands of items you can pick up in the store. buying online, picking up in the store, making the shopping experience easy. online grocery is a place we are accelerating. emily: and to be fair you are beating amazon there. >> yes. so how do i focus our efforts to make that shopping experience just like you would expect at a walmart store, how do i make it so simple when i come in to pick up my turkey and cranberry sauce to make sure you have a time to

get a good toy or sporting good at the same time. really focusing our efforts around the omni channel experience and fresh and frozen emily: how will you stay ahead in groceries? jeremy: we have significant we have 2100 online grocery pickup locations. the biggest in the u.s. at this point. we will continue to ramp that. i think we are opening 30 or 40 stores a week that allow pickup, and we have also done delivery to stores. you can imagine the technology to integrate that and rolling it out to all of the u.s. as fast as we have is one of the fun parts of a technology job. scaling as fast as the business can. emily: across the platforms, what you doing to leverage customer data to make the shopping experience faster and easier online and off-line?

has a lot ofrt great data. what we're focused on is making a customer centric interface. things like easy reorder, when people buy groceries, they by 50 or 100 items. if it takes only five or 10 seconds to add an item to the shop, you are talking about a 20 to 30 minute shopping experience. how do i make that easy? you are buying the same baby food you did last week so how do i make that experience of adding 100 items to the basket easy? using customer data and trends and things he did last you're at this time of year can really help that experience. emily: walmart has bought flip cards and there's a new bat cart and -- battle there's a new battle in india. how does the india battle plan out with amazon there? jeremy: the one thing i say about this is that our has anhip team

incredible team there. with jdne partnerships and worked with rocket time and the flip cart deal. when walmart is not acquisition, we try to let it blue and for a little bit before we help too much. we do not want to hug technology teams as we go out there. we're spending time with them, talking about their data strategy, and they are doing great work. the international stage will be a very interesting one. emily: what do you think the potential is in india for walmart? jeremy: we have stores there obviously. judas is working on that strategy and how do i use the flip cart and lamar assets together. emily: europe -- walmart assets together. emily: your report, how does that work? jeremy: it is super fun because whohave somebody like greg

will probably go down in history as the best operator of a retail company in the world. emily: that is a big complement. themy: he is amazing and team is incredible. they are running a million person company effectively. just their operational excellence and efficiency and focus on not only things like price and customer experience and ability to execute that, it is fascinating. and markets a true innovator and has an idea -- mark is a true innovator and has an idea every minute. the combination of the two makes my job great. emily: that was jeremy king at -- techomy conference echonomy-- t conference.

we speak exclusively with uber's chief legal officer next. plus, apple shares at the longest losing streak in more than six months on more bad news. will the holidays bring more losses or rebound? we will discuss. this is bloomberg. ♪

emily: this is bloomberg technology. 53 pages. that is the length of a new cases that outlines how of sexual conduct and -- misconduct and assault will be labeled. this is at over. --uber. this after facebook and other

companies are changing their policies on sexual harassment. here to tell us more about this is the chief legal officer for uber. you are one year into the job. we talked about how you knew this be a difficult job. it to climbingd mount everest. how far are you? the thing about climbing everest, is the journey that the destination. our way to on getting to the top. i have to say the last year has been incredible for me. that hase at a company this organizing principle of doing the right thing. then, being able to make on issues like sexual assault prevention that we are beginning to do with this taxonomy. emily: you have not just push them to do the right thing but to do it.

this handling of a sexual assault cases goes beyond what other companies do. you the other are companies will follow? >> i am quite optimistic. we are talking to other countries -- companies about adopting this taxonomy. it categorizes what kinds of makeiors or misbehaviors up sexual assault or sexual harassment or misconduct. not always illegal but the kind that you don't want happening in a customer service environment area. it can be used by any company that pulls two or more people together in a customer service environment. how do you balance your previous experience as a doj attorney?

assault, it is believed that the incidents are highly underestimated. that there are far more that are not ordered. is this good for the business of uber? right thing to do. it is good for all of us. we have always believed that if you enhance the safety of the platform for women, you'll make it safer for everyone. what this effort does is it takes a closer to this goal of having a safer platform. i understand why some people might be reluctant. the chief legal officer is usually the guy in the room saying take less risk not more. the reason this makes sense for paramount duty to our shareholders. we also have a duty to our stakeholders. those are the millions of partners and writers who used the platform every day. we have to do right by them.

this is a step toward making the platform sustainable in the long term. airbnb is taking it a step further. microsoft allows class action around sexual harassment. why not go that far if there is that yount to be made address more systemic problems? i have to applaud airbnb and facebook and google for following it. barhink that the fact the is being raised for everyone is a good thing. it is a great thing when you have companies competing to raise the bar on an issue like this. when we took the step to announce the end of mandatory withration, we did so safety primarily in mind.

this is a first step but not the only step. these are active conversations we continue to have. i should say that there is nothing wrong with arbitration. that an appropriate tool is used by businesses every day in an appropriate way. what we determine is that it is used -- its use when it comes to sexual harassment was inappropriate because it strict control from the survivor. to do what the original act can do in terms of stripping the control. it is not an appropriate tool there. you want to give the survivor a atice area at as we look whether or not arbitration is appropriate for other types of claims, that is the kind of frame that we will approach it with. >> you have an anonymous tip line for employees. managing that has been

challenging. another executive resigned over some allegations. how do you balance corrective punishment and outright termination when people want to see consequences? >> i cannot speak about any particular personnel decision but i can say that it is important when you have a system of reporting and consequences in any workplace, that there be a progression of responses that you can bring to bear. ultimately trying to do is make the workplace safe, inclusive, welcoming for the people to be there so they can bring their best talents to work every day. you want to be of to support people in that environment. if you can create that environment by giving someone someone'sr changing assignments of a are not in the , the main thing

is that you have two telegraph that you are going to take those actions. you are going to hold people accountable for their behavior. that will be true across the board. no one is indispensable. everyone must be held accountable for their behavior. >> you reached a settlement on .he hack with all 50 states questions.till do you think that legal risks will factor significantly into the uber's ipo? >> you certainly consider legal risks whenever you are looking at whether you are going to go public or not. i should say that i cannot talk much about whether or not when

they go public. i can say that we just had a bond offering. part of the risks included a document like a included the legal risks that you face. one of the good things is that our legal risks are well known. there is not a lot of secrecy there. investors know that we have been inhodical and successful mitigating the legal risks. we have been able to not only announce a data breach but then resolve it in all 50 states. that has to be a record. we are continuing to be very methodical about that. >> for other legal concerns, can you say you have gotten the all clear from the doj? >> i am not in a position to state that -- say that.

we continue to work very tohodically and carefully make sure we are mitigating risks across the company. i am confident there is nothing that i am aware of that would be a hindrance to the company going forward. we need to deal with these issues. we have to put them behind us. i don't see anything existential in terms of a threat to the company. >> the sec and doj are looking for not disclosing enough to investors about how much instagram was harming their growth. ipo, which could happen next year, had your priorities change as you prepare for public scrutiny? >> i think the task for us is to recognize that even though we

are a private company, we are a global brand. that carries a great responsibility. it carries accountability. if we begin to hold ourselves to the same standards that public companies hold themselves to, we will find we are telling that line just fine. is if a important thing company goes public, what is most important is not the day is the day after and the day after that. execution is what will make this company continue to be great and successful. any potentialwhat ipo date may are meant may not be. governmenton your have experience. i'm sure you are glad you're not facebook today. where do you think democrats in the house should focus their energy when it comes to tech regulation?

>> i am probably not in a good to give the house democratic leadership advice. i will let others do that. i will say that it is important to always balance of the approach. as a regulator between creating andntives for good behavior inviting companies to do the right thing. holding companies accountable. that is a very careful balance. too fars, you can go one way or the other. the real balance is not to over correct but to make sure you are holding people accountable and also recognizing and incentivizing companies to do the right thing. >> earlier this week, your ceo said that you need more information to make a decision with yourto proceed relationship with the saudi public investment fund.

saudi officials were sanctioned earlier today. do you have enough information now? >> i am going to stand on the previous answer which is let's be clear and unequivocal that the murder of the journalists was a human rights and a civil liberties horrific tragedy that should never have happened. you can't mince words about that. the fact that we took it so seriously is manifest in the the that he was one of first executives to pull out of the saudi conference on the additional boards -- reports were incomplete. i think there is a process in place to see if we can get more facts and information. once we get those facts and information, we can respond appropriately as a company. >> your sales are slowing.

revenue was half of what it was months ago. are you plateauing? is this short-term? >> i saw the results yesterday and i said that is a healthy quarter for a company of our size. the reality is that we are investing for future growth. when you look at what we are doing in trade and food and electric bikes. what we are doing in high potential markets, we are investing for future growth. we want to solidify our leadership position as a platform for mobility and in key markets. that is what those results demonstrate. >> thank you for coming in. we appreciate having you here. up, apple rebounding after its longest losing streak in more than six months.

that conversation is next. this is bloomberg. ♪

bitcoin has fallen to a one-year low. they plunged 15% thursday. months, bitcoin has fallen by more than two thirds. the bad news just keeps piling on for apple. at least four of the key suppliers for iphone components have reduced revenue estimates for the current quarter. the latest is amf.

apple shares have had the longest losing streak in six months. how alarming is this? surprisingly, it is not alarming. chain when there is these tend not to be good indicators. the reason is that apple already gave their guidance on november 1. two weeks after, we are hearing the supply-chain cuts. hearing from the suppliers that you mention, those comments are already reflected in apple's guidance. this should not be anything new. my history of trying to figure -- every year going into a cycle, apple tells its suppliers it can produce more than it will have

orders for. every year, they cut orders coming into this. bit,ares have come back a but in general how confident are you that the latest lineup of iphones has been a hit or is it not the question to be asking anymore? i am in the camp that that is the right question to ask. can they grow the base of iphones in the low single digits. the next 12 months i expect they will increase the base by 3%. it is not about a big hit iphone. it is about maintaining the base and finding ways to grow from that. one way is by increasing the asp's. another way is by selling services. is the broader bigger question. i suspect the street is slowly

adopting the view that the overall apple business operates like a service. the hardware included has some predictability that historically hardware companies did not have. apple's iphone business will start to yield a more predictable trajectory. >> looking at the stock chart, around see the slide when the new iphones were unveiled. company thatis the has been dependent on iphone sales. going forward, do you see a point when services revenue is equal to iphone revenue? probably a long time away. 15% of revenue right now. the iphone going from 65 to 60% of revenue. i think there is a big gap there. toimately, the emphasis is

conceptualize that the hardware business is operating like a software services is this. that is the real inflection opportunity around the stock. that could pave the way that we are going to look back and this will be considered a buying window for long-term investors. >> they are now well off the trillion dollar market cap milestone that they recently had. do you think investors are getting it? >> i don't think investors are getting it. aboutoncern and anxiety the health of the iphone franchise is misplaced. i understand there are three factors that play into it. we are hearing in the supply chain. this caused the street to fundamentally miss the story. i believe the iphone franchise is intact.

the chatter from the channel is essentially already priced into apples december expectations. another piece that investors don't get is this story trades below clorox are coca-cola. it should be on par with those two type of consumer staple companies. that is what apple has become is a consumer staples company. >> what about globally? we know that in india, apple has failed to break into the market in any significant way. in china, there is concern that these trade tensions. the iphone is so much more expensive than many other phones out there. we are talking $50 phones. are you concerned that apple will not be able to keep up with the global competition? is the iphone always going to be the most desirable and

aspirational phone out there? apple willink that continue to be the leading edge. the population will want to pay up for a better experience. a lot of people cannot afford it. india and china are two different stories. in china, i am still confident that the availability of $50 alternatives -- a much different competitive environment than any other market. despite that more difficult market, the sheer size of the opportunity in china still renders this incremental positive for the apple story in the years to come. there are a lot of people who do make a lot of money in china who can afford iphones. india is a different story. path where't see the apple is going to get meaningful traction in india.

they just don't have the brand in india that they do in the rest of the world. >> thank you. still ahead, elon musk wants to provide global internet coverage. spacex just crossed a major regulatory hurdle. we will discuss next. this is bloomberg. ♪ spacex has won permission to

deploy satellites. regulators moved to reduce a greater risk from space debris. that is far more than operating spacecrafts a lot. elon musk announced that the

company has bought a trucking company to deliver model threes in the u.s. by december 31. specific about which companies were acquired. makerfund don't videogame -- nine funds exiting their states. lunch of the company's battlefield gain was delayed until after new releases from its key rivals. a big backlash. amazon's decision to put headquarters in new york city. some members of the city council love to know if it will really benefit the city. amazon promises to create 25,000 jobs in new york but critics it will displace local residents and raise housing prices.

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good morning. australian markets have just opened for trade. >> i'm shery ahn. >> welcome to daybreak asia. our top story, asia-pacific markets look to extend the rally in new york. watch out for chipmakers.

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