emily: i'm emily chang. this is "bloomberg technology." qualcomm strikes back. the chipmaker wins a battle in court to ban the sale of some iphones in china. plus, it turns out uber and lyft have a file to go public. and disrupting the $445 billion beauty market. a ceo will share details about

how quickly the favorite millennial makeup brand is growing. first, our top story. qualcomm gaining the upper hand in the ongoing battle with apple. it won a ban on sales of some iphone models in china. the ruling is part of a dispute between the two companies over licensing fees. apple says all iphone models will be remaining on sale in china and they will dispute the ruling. for more we want to bring in anne king who covers chips. and we have are reported in washington with bloomberg intelligence who covers litigation and policy. what is the immediate impact of this ruling? >> that is a really good question. where people are struggling to find out, apple said it will remain, all of the funds it would remain on sale in china. qualcomm disputed that and it recently apple said they will file and asking the court to reconsider. nobody hasn't seen the text of the injunction, so the scope is

uncertain, but i think what we are waiting to see is is apple going to have to pull some of the funds from the market in china. and i think many people are sort of eager to get their eyes on that junction -- that injunction notice. emily: ian, what is your apartheid -- what is your interpretation on this for apple? >> for the last couple years, apple has been setting the agenda, they initiated this. they started talking about how qualcomm was a bad actor. has beenow qualcomm trying to fight back. they finally got a decision they can work with. now we will see whether this sticks. emily: we are talking about a lot of iphones. including 8, 8s plus, but not the newest models. ian: because the suit was filed before the new phones were unveiled, so qualcomm did not

know about them and could not file hat. it has taken -- that. it has taken a while to get this through. emily: so, tamlyn, what is the likelihood that apple had will dispute this successfully? >> it might have its hands tied in terms of getting the court to overturn this immediately. when they have been arguing or with a have argued so far is 12 operatingios system does not use qualcomm technology, that is why they see the newer models are not affected. and they say that all of their sales of the older phones are running on the operating system. but what it will have to do is convince the court that the new operating system uses technology that is different enough from the disputed technology that they should be allowed to sell it. i think it might be an uphill battle in the china courts to get it overturned in the short term. emily: do you agree? ian: qualcomm certainly does not agree. what they said is, look, this is

not a ban on operating systems. traditionally, what company would do when they are found guilty, they would try to do a work around in software, because you can do that quickly, but qualcomm is saying you cannot do that. emily: how big a dent could it make in apple sales? will depend on whether this can really be extended to the new iphones. at this point, we do not know. i'm getting questions and i am well.amlin is as nobody understands the chinese legal system, how immediate this is or what the enforcement will be. these are obviously not pretty headlines for apple at this point. emily: i know you will continue to follow this story for us. thank you both. tensions high after the arrest ,f the huawei ceo, wanzhou meng who was taken into custody in canada on her way to mexico, as the u.s. six or extradition.

the canadian trade minister says ties with china are strong enough to a stand the arrest, however china says they have a violated a bilateral agreement. they have not resolved the rest quickly enough. tom, what is the latest that we know? tom: right now, there is still a hearing in vancouver to determine whether they will set bail for wanzhou meng. the question is, does she represent a flight risk on the u.s. side, being represented by canada at the moment. canada says that she does represent a flight risk. she is very wealthy, she has the means to get around and get out of canada very quickly. the argument on the other side however is emphasizing her deep ties to vancouver. she has a relative in school in massachusetts. she has got some multimillion dollar homes in the vancouver area that she would use as collateral. they are also talking about her

health. she has a sleep disorder. she is having trouble eating. and there are a number of health reasons why her defense is saying she should be allowed to leave the jail while this works its way through the court system. emily: now, some chinese executives have expressed fear about traveling to the united states. take a listen to this from the ceo of the higher group, a chinese electronics and appliance company. >> the u.s. and canada have not disclosed the reason behind this, so we cannot speculate why this happened. fomr the company -- from the companies perspective, you cannot interfere with her safety on no grounds, which is not make sense. always. is one that claims itself to protect human rights, but now they have not

given any reason. whoever travels to the u.s. now, they must be very scared. emily: tom come are we hearing concerns on the u.s. side about american executive traveling to china? tom: we did hear a little bit from cisco on friday. there was a message that went around that among cisco staff, nonessential travel to china would be curtailed. cisco later said the message was sent out in error. we have not gotten folks to officially weigh in on this. speculate that folks are questioning whether right now is a great time to go to china. i will say in response to the executive that we heard from, i mean, whether or not you agree with the russian now for -- rationale for arresting the ceo from huawei, the u.s. has given a reason for it. whether you disagree with that, whether you agree with it as it

was a good thing to impose it trade sanctions on iran, whether you believe huawei was violating them, there is justification the u.s. has outlined. and saying that wanzhou meng played a role in these transactions that were violating this trade embargo with iran. tom has a piece out that says that the u.s. has huawei in cuffs, china has the u.s. in chains, laying out a vision for what could happen if china decides to retaliate as a result of this arrest. the biggest question remains, how will this impact the trade war? how is this impacting talks between the u.s. and china, what do we know? tom: we are calling -- our college put out a story over the weekend talking about how the folks who are working on the trade negotiations with china are trying very hard into keep this as a separate issue, to

separate the two in the minds of chinese officials and in the mind of the u.s. the fact of the matter is, they seem so linked, u.s. attitudes towards huawei, another company often mentioned in the same breath, are very much tied it to the reasons why there is so much tension in trade between the u.s. and china. and that has to do with protection of ip security concerns -- and security concerns about u.s. trade secrets. close of a have too tie to the chinese government, and is a good idea to do business with these companies. u.s.now the u.s. has -- telecoms are no longer doing business with huawei the way that they used to. they are not introducing huawei phones into their lineups. that has been playing out over the course of several months, if not longer. so it is really hard to separate

the two issues, i think, in terms of our negotiations at a very sensitive time in trade talks with china. emily: ok, tom giles continuing to cover this story for us. thank you. now, gopro is trying to minimize the impact of having its products on any new tariffs list. they quantum move most production out of china by next summer. the cfo says, "today's geopolitical environment requires agility." coming up, uber and lyft have a file to go public, but who will get their first? a check us out on the radio on sirius xm. this is bloomberg. ♪

emily: lyft may have been the first a file, but it's bigger rival was there with it, apparently last week uber also followed for public offering, but unlike lyft it did not announce a publicly. over is the most anticipated ipo to come out of silicon valley in recent memory, and with an estimated worth of $120 billion that could land in the top five biggest of all time. to discuss i want to bring back lane, who was previously the head of uber communications in america. also with us, eric newcomer. what do you make of the timing, eric? >> lyft has to be dancing. their goal is to be in the conversation. every time we talk about the bird, they want us to mention ,yft and lift -- mention lyft so good for them in having this david versus goliath narrative out. emily: what do you make of the

communications of this? lyft announced that they found a go public, but we learned on friday that uber had filed to go public, but we do not know precisely when -- is that a good way for the news to break? >> uber has a some of the best people in the world. i do not think you file overnight, this is long in development. i will say from the communications standpoint, it does not like they are anticipating what is happening on friday night. that is probably the worst time to make news. but from a long-term perspective, it was a good idea to do it before the holidays because you get a natural break from the narrative around the ipo and a restart in january. emily: are they trying to go public on the same day, or are they literally trying to beat each other to market? eric: given the market conditions, they both want to go out before anything gets worse, so i think that that is probably the controlling factor. i think if you are uber, you want to dominate the story.

and if they do go out before lyft, which we do not have evidence of that yet, that would give them a lot of power over lyft. that is why we have jockeying, of who gets to sort of defined everything first, go to investors first, that is what we will see. but you know, it is fun drama. emily: so you are a shareholder, obviously, and internally we are hearing that this is called project liberty, which i assume is a reference to all those who have been locked out for several years, but what is the mood around this finally getting the ball rolling? lane: uber is really good at putting names on projects. emily: for better or for worse. lane: so i think that most employees, the initial euphoria, the excitement that we had about the stock years ago, it may have subsided a little bit since we had -- in the past year, but

the, conversation among most alumni is how to deal with the tax applications of an ipo. not something many folks have had to deal with since facebook went public. emily: compare the financials. i spoke with an investor who said that anybody should be scared about the economics of uber at this point, and lyft, they are not making money. eric: uber lost $1.1 billion in the third quarter, 2.9 fillet that $2.95 billion in revenue. they are spending it on scooters, growing uber eats, fighting with lyft in the united states. they have both needed to burn -- pull back on burn. that is the argument. but the seventh benefit needs to generate cash flow. emily: how does that compare to lyft? eric: it is much smaller. it has not disclosed their financials on a quarterly basis,

so we know much more about ubers numbers -- uber's numbers, their massive global business and even where they have sold, they still have stakes in his businesses. so you will see people evaluating the business of uber not just on its own revenue, but the ownership percentage of dd, of graph. -- grab. has a huge reach that makes it a more massive business. emily: in the bigger picture, what are you watching? we look at some numbers for the first time, details about how the business is actually run. lane: year ago, everybody was worried about the future of uber. now there has been a dramatic turnaround. i think we are optimistic that the leadership team will turn around not just the narrative in the brand, but as eric pointed out the financial losses. and i think that is investing its future. as a retail investor, that is what i want to see. and the market will see that, too. emily: you are on the phone with a sources all day long, so what do you know about communication

between the companies, are they taking cues from each other? eric: i do not think they want messages to go back and forth necessarily. they have some shared investors who are paranoid about making sure that information does not go back and forth. they have public investors who are going to eye both of them, fidelity is a major investor. so i think it will be interesting to see. it is hard to see from where i sit how information gets back and forth, but clearly people are trying to get information from both sides. emily: ok, eric newcomer. uber, thankly of you. coming up, the eu coming down on big tex with the latest controversy concerning huawei. could the smartphone maker be its next target. we will discuss this next with an eu ambassador to the united states. this is bloomberg.

emily: the european union continues to take a tough stance on tech, zeroing in on huawei. following the arrest of wanzhou meng, the commissioner said the european union should be worried about the smartphone maker and other chinese tech companies. at a conference, he expressed concern over their ties to intelligence services and access to encrypted data. the european union has cracked down on tech giants on issues like privacy and fake news. the commission proposed a 3% tax on the digital revenues of large firms that could impact giants like facebook and google. here to discuss is the eu ambassador to the united states, david o'sullivan in washington. ambassador, what is your reaction to those comments coming out of europe? david: i think that the issue of security and security of

specific industries and technologies is something which is a common concern on both sides of the atlantic. screening investment in particular is a something which is managed at the national level buyer member states, but the european union recently agreed overarching legislation to ensure a coordinated european position of across these different decisions, even when they are taken at the national level. so i think this reflects, as the vice president said, a growing concern that there could be national security or public order risks in certain investment decisions, and this is something that we need to have a coordinated, to which we need a coordinated european response. emily: is the eu considering broader limits to huawei's operations there? david: i do not think we are dealing with it at the level of the eu, it is a question of specific companies. investment decisions and issues

of approving or not investment decisions are decisions taken by our member states on the basis of their legislation. not all member states have investment screening provisions like you have here. a growing number of member states are introducing these, that is why we have agreed provisions which won out enable the commission to take an overview of what is happening. so i do not think it is a quest of pursuing specific companies, it is a question of ensuring that we have the instruments at our disposal at the national and european level to ensure that any investments that might pose a risk to the national security of our individual countries can be properly screened and assessed the four they are approved. emily: the european competition has taken a hard line on google in particular, with the ceo scheduled to testify before u.s. congress tomorrow. what do you want to hear from him? david: i mean, competition

decisions, antitrust decisions, as they call them in the u.s., are managed by the european commission in a quasijudicial manner, so any of the cases which are being taken are not going to be discussed, i imagine, by the google chief executive tomorrow in front of the senate. these are specific cases taken on the basis of specific information that leads of the commission to have concerns about the behavior of google on specific issues. and they are pursued on their own merits. so i do not think that there is a direct connection between those cases and the testimony which we will listen to tomorrow. emily: on the digital tax, even if it is water down, are you concerned this could lead to retaliation from some u.s. based companies? david: no, i think that -- we clearly, everyone agrees there is an issue here about how to tax the digital space, where you have a disconnect between the

fiscal location of the companies and their economic activity. in other words, they are making money in one place, taxed on it in another. this can cause a problem, it is an internationally recognized problem, including by the u.s. and in the oecd has been discussing it for years. the european union was to see in international solution agreed upon, but it is moving slowly and people are losing patience. that is why there are moves within europe to have taxes imposed now, pending agreement at the international level. i do not see a reason why there would be retaliation, when in fact these are taxes designed to address a shared problem mechanized by the u.s. and -- problem recognized by the u.s. and members of the oecd. emily: the brexit vote has been delayed, do you believe this is good for the region even if it leads to potentially even more turmoil and uncertainty? david: of course, the brexit

vote is part of a domestic british approval process of the withdrawal agreement, which was recently negotiated between the u.k. government and the eu 27. repeatedlyas said they believe this is the best possible deal and they hope it will be ratified. we understand that there are some political difficulties in london, and the prime minister needs more time before she can put the matter to a vote in the u.k. parliament, and she will be in brussels at the end of the week to further explain her intentions at that point. we believe the agreement, which has been reached on the withdrawal, the orderly withdrawal of the united kingdom from the european union at the end of march next year, is the best possible deal to ensure an orderly and well structured departure of the united kingdom, as they have decided. emily: ok, david o'sullivan, thank you so much for stopping by. coming up, no secret that tech

has a diversity problem, but it is not just in silicon valley. we will talk to check warner and the ceo of a, co. about how europe is handling its diversity issue. this is bloomberg. ♪ there's no place like home ♪

argh! i'm trying... ♪ yippiekiyay. ♪ mom. ♪

emily: i'm emily chang. you are watching "bloomberg technology." europe's tech scene has a lot in common with the u.s., but not something to write home about in this case. partnered with others to publish a report detailing the state of europe's tech scene, and while it is growing five times faster than the rest of the economy, diversity is still a problem. 93% of funding from european vc's went to all-male founders. and there was only one female ceo out of 100 75 companies.

those are some of the highlights from the report. now they will go to london where we have niklas zennstrom and francesca warner, ceo of diversity c. we have talked about the diversity problem in silicon valley, but what are some of the unique trends that you see in the europe's tech scene that we need to know about? francesca: unfortunately, it is not that different from what you see in the valley. we still have a major problem with the amount of funding that is concentrated into white men. we still have little data on how much funding is going into demographic groups that are not just looking at gender. and we still have not enough diversity at the senior levels of the tech industry or senior partner level of vc's. that is why we establish diversity vc, to try to change that. emily: you have 5000 additional

data points as an investor, is there anything you found in this report that was particularly surprising? niklas: i think the report kind of demonstrates the reality is that diversity and inclusion is a global problem. and i think that we as a vc, we have taken a step back and we have looked at ourselves and how we conduct ourselves. and i have to say that the beenl vc industry has not a good job when it comes to diversity and inclusion. emily: some european companies have progressive laws on gender, mandating women on board for example, or longer maternity leaves, so why do you think that has not had an impact? francesca: it is a great question. sometimes, we tend to look to other models of tech industries that maybe are further developed than ours for kind of an example, it we have not stayed true to our european values that are about being progressive and inclusive. and i think europe has the

opportunity to take leadership on this topic, which is partly why i am excited that the first guide has come out of europe. emily: so, what do you plan to do differently as a result of the data you have seen. as an investor, will you change your focus, will it change how you run some of the processes in terms of who gets the money? niklas: we started over a year ago to look at diversity and inclusion, and we look at her own self, we look at the companies we invested in. most of our investments went to male founders. so we did a few things. we started to put the job on ourselves to find female founders and to track that. the other thing we did, we went portfolio companies and asked them how they thought about diversity, and if they have diversity policies in place. and it turned out very few companies had these policies,

but they all want to do have it. that is one of the reasons we partnered with diversity vc to come up with a guided to help companies put diversity policies in place. emily: as i can tell from your website, you have four women listed as partners, two venture partners are men. those numbers are better than many silicon valley vc's, what is your strategy within the company to make sure that you have a diversity of a voices being heard at the table? niklas: this is a very important point, because what we have seen, the data tells us that female investors are finding more female founders. and i think that the reality is a lot of female founders are more comfortable speaking with female investors. so what we have done internally, we have set some targets on ourselves that when we recruit people to our investment team, specifically on the more junior level, we want to have a 50-50 diversity. 50-50

emily: the me too movement has had some impact, as far as i can tell, in the u k . how often is this conversation happening in europe? there is a lot of talk here, we need more action, but are you even hearing the conversation? francesca: not enough. it was an interesting statistic in the report that only 11% of the media conversations happening on tech were happening about diversity, and the vast majority of the sentiment about those conversations was negative. what we want to do is start the conversation happening more regularly and encourage ceos and founders and people within companies to say, we are struggling with in doing more of it. but also encouraging positive conversation. tha is where the guide comes int and we want to move the conversation on from being, you know, dominated by negative

stories, to what can we actually do about it. emily: we have talked a lot about how this is the right thing to do, but also the smart thing to do, so do you believe your focus on this will give you a competitive edge? or have a scene evidence you can make more money as a result of having more diversity among entrepreneurs you are investing in? niklas: this is something that research and data tells us, that diverse leadership teams are better performing than non-diverse teams. so that is one key factor. the other key fact is there is a war for talent. most companies across the world are struggling to find talent to regroup. if you open up your final and try to find -- funnel and try to find talent in all diverse pipelines, you will be able to find more talent. the other data point is that a diverse investment team will make better investment decisions, so that is something that we strongly believe in. the data tells us that.

and the more we talk about diversity, the more we attract founders, i think this is important, that we think the companies in the leaders of tomorrow are the ones who clearly believe genuinely in diversity and inclusion. they will be able to build stronger teams. emily: absolutely. good to hear that you are focused on this, niklas zennstrom. along with francesca warner, thank you for being part of this important conversation. speaking of diversity, snap has named a new head of communications, julie henderson. she was at 21st century fox, but will begin in her role immediately following the sale of certain assets the disney. isrently, this role at snap being filled by their vp of communications. up next, glossy a shaking of the makeup industry with an almost entirely online business. now with an additional $52 million raise this year, the

makeup brand is entering phase two. the ceo, emily weiss, tells us about her vision, next. and a travel agency with a decline in travel to the united states. we look at the response to the rising tensions between the u.s. and china. this is bloomberg. ♪

to make their shopping decisions. so as we think about this, the we are focused on

facilitating word-of-mouth by having these connections with our customers and introducing them to one another. emily chang: i know you said you tripled in size last year, but this has been a big year for you. how big? emily weiss: we are said to cross the $100 million revenue mark this year in 2018. emily chang: camilla to -- will it be cumulative? emily weiss: 2018 in total. and we are excited about the one million new customers this year. when you think about the direct to consumer brand landscape, another thing that we are incredibly optimistic about is the fact that almost 50% of our monthly revenue comes from repeat purchases, so we have had one million new customers this year, but also 1.3 million repeat purchases or transactions, which if you think about non-endemic categories, whether it is mattresses or eyewear, or even clothing, that is pretty unusual. emily chang: i want to hear more about the vision.

it started off online, you know have two stores in los angeles and new york and some pop-ups that happen every so often. what is the actual vision for how much of this becomes a physical presence and how much of it remains online? emily weiss: you know, what is unique about the company is the fact that we have a 1-1 connection with every single one of our consumers, and not many beauty companies can say that. you look at the incumbent companies that rely on retail channels and retail partners historically to communicate with their customers, we have a direct connection with every cycle person. we facilitate that and we still could those flames by having off-line experiences, where we connect them with one another. and we create a community flywheel that leads to our growth. emily chang: so you would never sell to a department store, or on amazon? emily weiss: those are not part of our plans. emily chang: how do you assess or kegley the threat of amazon?

obviously, there are beauty products on amazon and they have had their 12 days of deals leading up to the holidays, and yesterday it was beauty products. emily weiss: when i think about amazon, i think what is so interesting is that they have created the playbook for e-commerce to date. an when you think about e-commerced and the fact that 10% of that commerce is happening online today, that is nothing. there are other customer experiences that people want when it comes to their fashion and beauty categories, these are emotional categories. you have over 50% of people walking into multi brand stores who take out their iphones and go on to google to search for products, because they cannot swipe right or left on the salesperson. so while amazon makes it easy to consume, it does not necessarily make it easy to connect. and when we think about the future of glossier, we think about the emotional commerce and the social utility we can build. emily chang: a lot of acquisitions, walmart bought a company and -- just took her

company public. there has been rumors about an ipo, is that something you have a plan for our would you be interested in it? emily weiss: we have a lot of runway ahead of us, we have been intentional about our growth, and we believe when you look at the beauty landscape and incumbents like estee lauder or l'oreal, in 10 years with the way that consumer behavior is going those may not be the most dominant players. and we believe that glossier has opportunity to fill in that space. emily chang: there is a risk in those very instagram a bowl brands, i think about -- very brands, so how do you maintain the buzz year after year? emily weiss: we do not think about ourselves needing to maintain the buzz, with about how do we provide the tools, whether it is the physical tools, the hardware products, the beauty products, or the digital conduits for connection

for women to write or oh stories. no blood -- for connection for women to write their own stories. everybody has the influence to create their own beauty routine. so as we look at the future, we think about giving voice through the lens of beauty and we think that opportunity is infinite. emily chang: you hired a summary from instagram, facebook, oculus, what does that social commerce, women telling their own stories future actually look like? emily weiss: we think a lot about the ability to create a platform that is all around social utility, not necessarily social network. when you think about social network, you think about these large players, whether it is twitter or facebook that are not necessarily. specifically around a particular interest beauty is something that all of us touch every day, it is something that every consumer is affected by. and we really want to use glossier, but our digital platform that is coming, either physical products, to activate may be more passive beauty consumers and encourage her to

use her voice and influence others. emily chang: you have been testing international markets, what is the plan to take this more global? emily weiss: we have launched several markets, including the u.k., france and canada. next year, we are focused on growing those markets. again, we are focused on intentional growth in a really high quality connection with our customers -- and a really high-quality connection with our customers. , you areng: glossier hearing it here for the first time, emily -- thank you for stopping by. emily chang: softbank setting the final price for their ipo of its japanese spin off. we have all the details, next. this is bloomberg.

emily chang: facebook may be feeling plenty of heat lately, but it is getting a sign of encouragement from one analyst. an analyst from deutsche bank is encouraged by their aggressive buyback plans. he views the move to buy an additional $9 billion in shares as why, and a positive

endorsement from facebook's board. facebook has purchased $9.5 billion in stock for the third quarter o this year. fnevermind the global stocks route, softbank sticking with its preliminary offer price of the japanese telco business. correspondent steve engle has all the details. reporter: the final pricing shows confidence. it did not flinch a month and equities selloff that has dragged in the nikkei 225 down by more than 5% this month. that is on top of a network outage at softbank last week that left 34 million mobile subscribers without services for hours. something is selling $1.76 billion shares -- billion shares in their new entity that includes an overallotment. while the parent transforms into a global tech investor, the spansic business that

wireless and broadband is a strong generator, but there are risks on the horizon. the wireless industry in japan is under pressure from the government to reduce phone bills and there will soon be increased cop edition from the likes of e-commerce giant -- an e-commerce giant, which could spark a price war next year. softbank corp. will begin trading on december 19. emily chang: now, asia's travel celebrated a 15th anniversary of his listing on the nasdaq. celebrated a 15th anniversary of his listing on the nasdaq. and to commemorate, the company rang the bell in shanghai. selina wang caught up with them to talk about the tensions between the u.s. and china. and how that is impacting travel. first, she asked about expansion plans going into the new year. >> we are going to have a steady girl out, as -- grow out, as

inl as our business international travel in those countries close to china. that will be our major plan, our main focus in 2019. >> how about your next acquisition target, are tightening policies around chinese investment impacting your decision at all? >> we have not run into any problems yet. beentrategy has always looking at the best companies, the best travel companies in the world, either with good technology or has good brands in those markets that we are trying to expand into. reporter: we reported u.s. companies are starting to reconsider sending their executives to china for fear of retaliation after the huawei ceo arrest, i am curious how you are seeing that arrest as well as the ongoing trade discussions?

>> i think that this should be just a temporary situation. athink that it is really mutual beneficial situation, if you have more change of commerce and exchange of people and ideas. so i see this has really a short-term setback. and i think that the long-term prospectsfor travel -- for travel will be bright. earlier thiseport year said that chinese citizens are reluctant to travel to the u.s. as a result of the ongoing trade discussions, how are you seeing that play out? are deformations outside of the u.s. becoming more popular? >> outbound travel to the u.s. is a small part of our business. i think that any earlier this year, when there is a perception that the visas can be getting harder and the u.s. is not welcoming many immigrants and taurus, have -- tourists, we

have already seen a little bit of negative impact. but the good thing is we have a very good substitutes for the u.s., so overall international travel business has not been affected. and hopefully, the u.s. can be -- or will do better next year. reporter: what are some of the countries that tourists are substituting instead of the u.s.? james: europe has been doing very well, better than expected. of course, asian destinations are always growing very well. and -- but i think the u.s. is more closely, you know, similar to other long-haul destinations such as europe or africa. those other destinations have been growing very well, better than the u.s. this year. reporter: and shares have fallen dramatically over the past year, there have been falling margins

as well as the broader slowdown. how much of that is due to political risks as well as the slowdown in china? james: the perception is that china's economy has a slow down and travel obviously will have in impact, but i think that overall travel is more resilient as the chinese economy is moving to its next stage of development, where service and consumption will grow faster than the overall economy. i think travel will be least affected, among the least affected industry in this kind of environment. emily chang: that was the ctrip co-founder with selina wang. he does noto says respect the fcc. the agency that he reached an agreement with in october. he told 60 minutes he has not had any of his tweets censored since he signed off on the deal. he tweeted in august about

taking the company private and cause months of chaos. the fcc tried to improve the governance of the board, which had been criticized for being too close to elon musk. that does it for this edition of "bloomberg technology." tomorrow, full coverage of the ceo of google's testimony before the house judiciary committee, including speaking to the congressmen who will be leading that committee next year, representative david cicilline of rhode island. and bloomberg tech's live streaming on twitter, check us out and follow our global news network tictoc on twitter. this is bloomberg. ♪

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