emily: i am emily chang in san francisco. company up, while way scrutiny huaweie way -- scrutiny ramps up.

the u.s. meet with german officials to discuss -- proposed by the german company. after a new report found russian hackers targeted users, the naacp is calling for people to log out of the social network. we will speak with the president of naacp. from production "hell" to hitting model three milestones. we will look back at the roller coaster that was tesla. a u.s. delegation met with german counterparts friday to share concerns over huawei's role in germany's five g network. this comes amid fears the equipment maker is an enabler for espionage. while a held his first press conference since an arrest tuesday. they blacklisted the company without -- warning that black listing the company without proof will only hurt the company. it is speech tuesday, xi jinping one other nations not to interfere in china. -- warned other nations not to

interfere in china. >> no one is in position to dictate to the chinese people what should not be done. emily: here to discuss his tom giles. what is so significant about this meeting between the u.s. and germany. >> this is the u.s. wanting to get its allies on board. this goes way beyond the reasons they used for arresting the cfo. they talked about violating sanctions against iran, talked about she lied to a particular bank. the concerns are so much bigger than that. we are on the cusp of a huge 5g rollout. one issue is u.s. competitiveness and huawei is a vehicle for 5g competitiveness.

that raises the question of national security and does chinese technology and critical infrastructure create inroads for chinese government to spy on our network traffic, our interactions with other countries. can they listen in on our telephone conversation? can they listen in on these interactions, communications between our allies and the u.s.? it's about competitiveness and national security. the more you see hauwei getting a foothold around the world with our allies, the greater the concern that is to the u.s.. it's about so much more than just u.s. ancient against iran. emily: hauwei has denied having a backdoor to the chinese government. that said, now you have european telecom companies voicing their concerns about hauwei. does it sound like the u.s. allies are on board?

>> they are taking a look at their relationships with hauwei. they are taking a closer look, and saying is there justification for the u.s. concerns. is there justification for the u.s. coming to us and say don't buy their equipment, sever ties with hauwei. how far do we take that? this is important infrastructure, major contracts. this is critical infrastructure for your country. it's not a simple case. people look at hauwei equipment saying it is good. why should we go to an alternative when we have had a good relationship with this company and we have not had security concerns. we have not found evidence of this. do we take the u.s.'s word for it? we don't know how much proof the u.s. is showing in these nonpublic meetings behind closed

doors. emily: meantime, the cfo is awaiting extradition. she is the daughter of the founder of hauwei. what is the latest on that? tom: we know the judge granted her bail which is a big concern. she has health concerns, strong ties to vancouver, and her defense made the case to the court that she should be allowed to live in vancouver under house arrest as opposed -- and she is not up flight risk -- a flight risk. the court gave her the benefit of the doubt. it will be a few months until we see more about the u.s. case against her and hauwei in this particular instance. meanwhile, we have this brewing trade war in the background and continued worsening relationships, or delicate relationships should we say, between the u.s. and china. emily: president xi jinping doubling down in his latest speech celebrating the 40th anniversary of china's economic reforms.

think you so much for our continued reporting on this story. oracle earnings are out with a strong sales forecast. the company is signaling they expect greater customer demand in transition to this cloud. they say revenue will increase up to 4% in the current quarter, and it expects higher growth through the second half of the fiscal year. coming up it is apple versus qualcomm. we have already heard from the attorney representing the manufacturers that make apple products. now we catch up with the qualcomm general counsel, 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. ♪

emily: the chinese court has ruled in favor of qualcomm banning sales of older models of apple's iphone across the country. a lawyer from apple's manufacturer said it will not come to that. we spoke with that lawyer who had this to say about the apple, qualcomm global patent showdown. >> it's not a blow at all. it's part of qualcomm's distraction technique. they got an order secretly, my clients -- that my clients didn't know about. in order that relates to software, it does not have anything to do with the technologies in the lawsuits we have against qualcomm for my clients were we see about $9 billion in damages. emily: joining us now to discuss the case is don rosenberg, qualcomm's general counsel.

apple said this ban will not pass any impact. you disagree. explain why? don: facts. this case started back in november 17. apple and its attorneys have been involved regularly in every process going on in the court. they were aware preliminary injunction was being fought -- sought and it was ordered. this was an order that became effective immediately and affects older iphones. it affects the iphone 6s right through the x. the only reason it does not apply to the later devices, is when we brought the suit, they didn't exist. emily: when do you expect his band to take a bite out of apple's sales? don: it should have been taking a bite and should be taking a bite out of their sales now in china.

the order requires them to stop selling, stop offering for sale, and stop importing any devices from those model numbers i suggested. the new models will becoming -- will be coming very soon. we are already in the process of seeking an order covering the new models as well. emily: there are developments in this global patent showdown every day. we spoke with steve mollenkopf back in august. take a listen to what he said. >> i think there is probably no better opportunity and partnering qualcomm then to work with apple. it makes sense the technology leader in mobile should be partnered with the product leader. those things tend to work out. the way we think about the business, eventually you get the disputes figured out, and you move on to a different period. i hope to be in that period according to the schedule we laid out.

emily: this seems to have gotten uglier since. is that's really possible? don: possible to get uglier? resolve. -- resolve and continued to do -- emily: is it possible to resolve and continued to do business with apple? don: as steve said many times, this will resolved one way or another. rulings such as this recent china ruling, or through a settlement process, that is the way these things terminate. do we want to do business with apple? absolutely. as steve has said many times, they are a very significant player in the mobile communications market. if we were to get there, through settlement or because one of these many milestones have occurred, or more than one has occurred, that brings the parties together, so be it. emily: there seems to be confusion on the pathway to

resolution. are the companies in talks or not? don: we are not talking about whether we are in talks. the companies have engaged in the past, continue to engage on some level. it is apparent to everyone that can watch this that the companies are involved in extremely difficult litigation processes, and we are bound by certain confidential reality -- confidentiality requirements, we are bound from the day today in court. the process of negotiations is something we are always open to. emily: the relationship between the u.s. and china has taken a turn for the worst. what has been the impact of the trade war on all of this? don: it is hard to connect dots. although everyone tries to connect dots.

it's hard to assume there is absolutely no impact. i can say this about a particular issue that we started talking about. that lawsuit has been in the works for well over a year. the ruling, as i understand it, we only received it around december 5 or so, was filed on november 30. if that was even before the g20 meetings for example. i don't think this court, which was looking at the question of infringement of our intellectual property, was influenced in its ultimate decision here. an order of a preliminary injunction is a very strong order. apple has tried to ignore it by telling the world that this was subsequently ruled on. the order is something many to be taken very seriously, unlike apple seems to be.

if it were my company, i would have immediately indicated i would be abiding by this court order and following it to the letter. if i have issues or want to seek reconsideration, which they say they do, then they can do that. unless this court turns itself around, this order is in effect. it applies to phones even if they have new patches, new ios installations, unless and until apple can prove to this court that these models are no longer infringing. emily: the ftc has brought an antitrust case against qualcomm, similar to apple's. qualcomm said you are in settlement talks with the ftc.

what are the chances any of these cases go to trial? don: there is probably a good chance to go to trial. we are anxious to go to trial in san diego where we can prove apple and its contract manufacturers, in the case of the contract manufacturers, have breached the agreement. they have not paid as an close to two years now for intellectual property they had been paying us for, in some cases, 10 years. apple has told those manufacturers not to pay us, and they are obeying. we would like that to get to trial and establish a right to have those royalties paid, both for the past and going forward. the case with the ftc as you said, we have been in some time in settlement discussions. we hope to resolve the case. if we don't through settlement discussions, that is scheduled to go to trial in january.

we believe we have extremely strong defenses. we believe the basis of the ftc case, like other cases, is unfounded. we think we can prove that. emily: we will have to leave it there. don rosenberg, qualcomm general counsel. thank you so much for stopping by. it has been a wild three months in equity markets, but for stan druckenmiller, he thinks there is a bright spot. he made his fortune predicting and navigating the last four recessions. now he runs his own family office in manhattan where he spoke exclusively to bloomberg explaining his long position in the cloud and why he expects companies to outperform the rest of the market. >> let's take these card companies, which to me, look

like mobile 10 years ago. maybe they are in the second inning of a nine inning game. corporate america and corporate everything has to convert to the cloud. >> you're talking about microsoft -- >> >> i'm talking about microsoft, service now,. these are companies i like. they are very high-priced, but 2%me, if we go to a 1.5% to environment, we will go to the same rate. you can argue if we get in a mild recession, demand for product goes up because it is a way to cut costs. trade moving into the cloud for employment. that view worked out beautifully, and was really bad in october. how is between 20 and 30% short stock in the entire month of

october, and managed to lose a present. you would think it is mathematically impossible, but these names have such beta. when you go from nine times sales to seven-time sales, even though your earnings are not missing a beat, it's a problem. i look at them now, and they are selling for quite a bit less than they were in say september. i just described to you why i think they would be ok over longer-term. emily: billionaire investor and former hedge fund manager, stan druckenmiller, speaking exclusively with erik schatzker. uber and left has stressed the lyft have stressed the importance of passenger safety. is not done to ensure the safety of drivers? we will discuss, 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. ♪

nancy: -- have beenr and lyft hailed. women who frequently drive for left and uber say they frequently acquire assault. what do these drivers tell you? >> these women were lured to the platforms because they are often taking care of kids, juggling responsibilities, and trying to make ends meet.

what they weren't prepared for was the frequency of harassment they experience. these women were telling me they are frequently propositioned for sex, asked for drugs, forcibly kissed, touched inappropriately. the stories i hear were shocking. what's interesting to me is how frequent this happened. many women were told they would not have these passengers again, but despite the measures taken, it happens over and over again. emily: what are the company's responses? selina: the first thing they tell me harassment and violence are not tolerated on the platform. in a company like uber, which has faced scandal over scandal, has made a point to me they recognize the need to improve. these companies have been putting growth over safety historically. only in recent months have they been rolling out new features including a safety button to reach 911, the ability to share your rides as a driver or rider,

and they had 24/7 support lines. i recently joined this 10,000 plus women facebook group and the frequency of stories on hearing on the post is interesting. a lot of these women say they had to call the police many times or have not found the support forms very helpful, and the level of violence in the assault isand unacceptable. emily: what has been -- there are a lot of outside studies, third-party studies. is there any academic research on the experiences of men and women on these problems as -- platforms as drivers were -- or riders. selina: you would expect the earnings gap is equal. what they found is that there is a roughly 7% earnings gap. men are earning about 7% more on the hour. a big reason they found was the accumulation of experience. because women were turning over

on the platform, or they weren't staying on the app as long, they weren't getting the accumulated experience of whether to accept or reject rides. safety is clearly a big component for why they weren't staying on the app. many of the women i spoke to said after an experience, they have to take the day off for several days off to get in the mindset again. emily: that is something to be very concerned about given they need these drivers. women are 50% of the population. selina: another difficult aspect is that these women to make ends meet. they want to drive at peak hours and make as much money as possible. often times, that means driving late into the night. a lot of women i talked to said they drove until 8:00 p.m. until 5:00 a.m. they are often picking up men are groups of men from bars. that is the most precarious position for them because they are stuck alone in a car often

with intoxicated people. these apps are aware of the problem, but there is only so much the platforms themselves can do. these women often feel like these platforms are giving a more relaxed policy to the riders because they want as many riders as possible. and the are more stringent towards drivers. emily: really important story to take a look at. thank you, selina, for holding the companies to account. coming up, we speak with the naacp president and ceo on why they are asking congress to investigate facebook's involvement in russian hacking and calling for users to log out of the network and protest. this is bloomberg. ♪

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"activecore, how's my network?" "all sites are green." all of which helps you do more than your customers thought possible. comcast business. beyond fast. emily: this is "bloomberg technology." the naacp, one of the oldest u.s. civil rights organizations, is calling on users to boycott facebook for a week after a new report from the senate intelligence committee shows russian hackers heavily targeted black users leading up to the 2016 election. derrick johnson, naacp president, joins us now. why exactly are you asking users to log out not just of facebook but instagram?

mr. johnson: instagram and facebook are part of the same company. we are concerned at the part facebook played in the effort to suppress black votes. that is something no company should tolerate. we should be protected as citizens of this company. country and companies should make sure our democracy is safe and sound. emily: you also returned a monetary donation you received from facebook. you said as much in a tweet. how big was that donation, and what was the response from facebook? mr. johnson: we have been in communication with facebook. our goal is to make sure they hear our concerns. we found our value system must align, that any type of corporationa

refuses to support democracy by making sure citizens are protected, the very nature of a company using racial hatred to divide the nation is something that should not be tolerated. our mission is to fight against that, so we could not accept any monetary donation from facebook at this time. emily: was it a sizable donation? are you willing to share the size of it? mr. johnson: it is something we would have standardly accepted. but at this juncture, anytime you have this scenario -- compounding this is that it was a firm hired by facebook. solidarity with all companies that this third-party, outside firm did research on. emily: emily: facebook says they

have undertaken an audit by a key civil rights leader to help work on some of these issues that they are raising. they say they have expanded voter suppression policies and added resources when it comes to safety and security, and sheryl sandberg released a blog post today saying facebook is committed to working with leading civil rights organizations to strengthen and advance civil rights. they have raised a number of important concerns and she's grateful or their candor and guidance and they know they need to do more to listen, look deeper, and take action to respect fundamental rights. have you gotten to speak with sandberg or mark zuckerberg? mr. johnson: i have spoken with sheryl a couple of times. i do agree with her. these but needs to do more. -- facebook needs to do more. one of the things i raised was the importance of the audit, that it cannot be an audit that his been used now in the media and individuals three levels down are responsible for carrying out the recommendations. it needs to have the level of importance to ensure that facebook changes its culture and maintains a positive relationship with the african-american community and

u.s. citizens as a whole. emily: what was her response? mr. johnson: she was very nice. she heard what i had to say, and for us, now is a matter of seeing the next steps. are they going to take the recommendations that were released in the audit? are they going to implement those recognitions, and will they ensure african-americans are not used in a proxy fight for political gain? emily: you're not the first person to complain about the black experience on facebook. we spoke to a former employee who raised concerns about the treatment of african-american employees and also how the company treats lack users. -- black users. take a listen to what he had to say. >> they really don't think of the black experience, which is a shame because black users are over performing on the platform. it is a missed opportunity, a missed financial opportunity for facebook to not engage with those users in a meaningful way.

emily: what is interesting is perhaps tech companies and even facebook may not realize the power of black users on their platform, and yet, russia's troll army does. what does that mean for the future of the naacp's advocacy? mr. johnson: it is important for facebook and the tech industry to appreciate and respect the consumerism of the lack community. black community. that is reflected not in doing more ads to the black community, it's reflected in their corporate hires, if there's enough diversity of african americans in their c suite or board, where when opportunities

present themselves, they can seize upon those opportunities where at the same time recognize there may be some cultural sensitivities around some decisions and they can avoid those sensitivities. emily: talk to us about what you are calling for. mr. johnson: we want to make sure african-americans are not targeted by foreign nations, that racial hate is not used on their platform. diversitylook at the in their decision-makers. they have vendors, that those vendors are not used in d towards ourize community. emily: what exactly do you want users to do? it is a temporary boycott enough? mr. johnson: what we're doing now is asking members and supporters to log off, simply not use facebook for a day or week, and our goal is to make sure facebook understands the nature of what has taken place. the fact that racial intolerance has grown since the 2016 election is something many of us

in the african-american community are confronted with, and some people are living in fear. that was festered on facebook's platform. the fact platform was used to suppress black votes. that needs to be addressed. the fact facebook hired an outside firm and that firm began to target african-american organizations -- that practice needs to stop and never be revisited. facebook needs to own up to the fact that diversity is important in this country and their leadership should reflect the diverse population. emily: diversity is important indeed. derrick johnson, naacp president and ceo, thank you for stopping by to share your concerns. in the latest attack in the battle against amazon, williams-sonoma is accusing the online retailer of copying its furniture. the company says the rivet furniture line includes products

that are strikingly similar to the west elm brand, including a $300 chair it introduced to years ago. several other companies, including apple, have accused amazon of not doing enough to stop the sale of counterfeit products. joining us to discuss, the author of this story. what is in this lawsuit exactly? spencer: williams-sonoma is saying amazon's private label, which includes everything from batteries and baby wipes to dog food and coffee -- they are going after this visit -- this rivet brand saying three chairs in particular are strikingly similar to chairs they introduced a couple of years ago, down to the descriptions and the words used to describe them, so it is basically coming after them with a patent and trademark infringement case.

the significance of this is that amazon has been -- it's private label has been moving up into more expensive categories where the stakes are higher, so we are starting to see -- this is, let, the first of what will likely be greater blowback against amazon if it is simply going to copy other people's products and try to sell them itself. emily: how is this different from previous complaints from companies like apple or birkenstock? spencer: previous complaints have been about amazon not maintaining enough border in its order in its market place, where third-party merchants post goods, and a lot of the previous complaints have been that this is like a wild west place where counterfeits are running rampant. apple did some test buys and found a majority apple products they buy on amazon were indeed fake. the previous complaints were

more like "clean up your house," but not accusing amazon of a deliberate effort. williams-sonoma is accusing amazon of a deliberate effort to pretty much copper -- copy an entire furniture line. emily: we will continue to follow this story. amazon private label brands obviously an important part of the company's future strategy. the next move and i high-profile case involving sexual harassment and a giant severance package to les moonves. a statement says moon best flouted company policy and failed to comply with an internal investigation. my best -- moonves' lawyer called the suit without merit. coming up, after an erratic year, could elon musk begetting the last laugh? and can a home-cooked meal kit recover?

this is bloomberg. ♪

emily: the tesla headlines in 2018 have kept coming, so fast it's been hard to keep up, from the fallout from's ceo elon musk's funding secured tweet to shortstop. circlingrt-sellers around the stock. we are joined by the bloomberg exec who covers the company and the "wired" writer who recently

wrote an extensive piece. you interviewed dozens of current and former tesla employees, and i suppose a certain amount of love/hate in their relationship with tesla is expected, but what surprised you most? charles: what surprised me most was how fairly chaotic it became in the company the last two years. we saw elon musk talking about the model three as one of the most difficult times of his life but we did not understand how intensely difficult it was for everyone inside the company as well. people talked about it not only being a hellish year, but as being two year's so challenging that many ended up leaving. one person said everyone in the company ended up being in an abusive relationship with elon. it was a year that was not only transformative or the firm itself and that they got through the process of being able to make the model three, but you saw such a huge exodus of talent, in part because the

bloom was a little bit off the rose for many people about what kind of company tesla was. emily: they talked about him being 95% genius and 5% mad. one of the more startling notes was the idea of rage firings where musk would say, "i have to fire someone today. i just do." charles: i heard from a number of people that one of the bigger challenges in the company was that mr. musk is a very passionate individual and would walk around and if you happened to encounter him and could not answer his question right away, if you did not have an answer he was looking for, you might be fired on the spot. one executive said she had for -- forbade her employees from walking close to his desk because she was terrified they might be let go.

it is a place where elon musk's personality impact almost every aspect. he has said he sleeps there sometimes. he wants to be at the front of the lines, leading them to victory. as a result, his quirks, eccentricities, short tempered news has a hugely undue impact on the company itself, and it really is a reflection of who he is. emily: we cannot ignore tesla hit some huge model three milestones. tell us about the successes despite all of this. danna: s charles reported, this was a hellacious year for everybody -- as charles reported. you saw dozens of executives leave, and yet, they recorded record profit. emily: take a look at this from "60 minutes."

the sec issue seemed to be resolved. then musk says this. >> i want to be clear -- i do not respect the sec. >> but you are abiding by the settlement, aren't you? >> because i respect the justice system. dana: this was someone who had to abide by the sec because the stock was in the tank. he is not really flagrantly abusing the settlement decree. he is not following the spirit of it in terms of his public statements, but he is not out of compliance. emily: dana mentioned executive turnover, and there has been a lot of it. do you think musk can continue to lead the company with that kind of turnover? charles: i think he will continue to lead the company if anybody wants them to or not. he has an incentive system in

place that will give him $55 billion. it will be the largest package in history. nobody can force out elon musk, and the board is not inclined to do so. it is a board that very much does exactly what elon musk tells them to. the bigger question is if they can maintain their share in this marketplace. for consumers, investors, and counterparties, trust is everything. we buy a car because we trust it will do what it is supposed to do. suppliers handover parts without asking for cash upon delivery because they trust they will get paid. one of the real challenges is, as you saw in that clip, mr. musk says he signed an agreement with the sec, but he does not respect them at all. there is a question of how much rope they give an executive before they say they are worried about the direction things are going. when that happens, as we know in financial systems and market

places, once the trust is gone, it's very hard for a company to hit its full feed. emily: how much rope do you full's full speed -- its speed. emily: how much rope do you think current and potential employees will give him? will tesla continue to be able to attract talent? charles: the line worker, absolutely. there's a long list of people -- they are seeing record numbers of, for example, college graduates who want to work for tesla. at the executive level, the elite ranks, that's the challenge. when i talked to executives, they said there biggest concern was they had shed so much talent -- their biggest concern. people did not want to work for tesla because they knew the environment was such a challenging one. tesla has always been ahead of the curve in terms of technology, coolness, being on

the cutting edge of a market they essentially helped develop, but other car companies, car companies that know how to manufacture at scale, they are catching up, and the question is for the next car and the car after that, will tesla have the people in place to be able to beat other car companies who know how to do this at scale? emily: pretty safe to say 2019 will be another erratic year for tesla. thank you. still ahead, beloved meal kit delivery company blew a friend -- blue apron has struggled since its public debut last year. now shares have tumbled below one dollar. why it is having such a tough time next. this is bloomberg. ♪

emily: blue apron shares dropped

below the one dollar level extending a rough year for the company. it has lost roughly 90% of its value since going public. in november, the company reported third-quarter revenue that missed expectations and said it would cut about 4% of its workforce, amid the growing threat of amazon and others in food delivery. it was $10 a share a year ago. what happened? >> crazy to think this company debuted at $10 a share, and now it is a penny stock. it has been a really rough year. right out of the gate, they were troubled. they came out right after amazon said it was buying whole foods. that was not a good thing. and they had issues with their fulfillment centers. believe it or not, meal kits are are a really tough business. there are not great margins, and it's tough to keep customers and there's a lot of competition. emily: if it's a penny stock for 30 days, it gets delisted? olivia: after 30 days, they have to come up with an alternative plan. emily: now what happens? olivia: they look for partnerships.

i think they are hoping someone will buy them. question becomes who will buy a money-losing company and really, then, what is their value you can i think they do have some values in their learnings and a lot of the mistakes they've made. emily: there's food delivery, grocery delivery. we just had the head of uber uber everything who basically runs the its business talk about had they are exploring delivery. >> we're not urgently eating into it, but we are starting to look into it. there are some grocery stores on uber deeds, but a full-fledged -- at uber eats. emily: one of the things he said was prepared meals from grocery stores are a hot trend.

olivia: those are prepared meals that have been made perhaps in the grocery store so you just have to keep them up or throw them on a plate. the same people who order uber eats or ordering blue apron and probably felt it was a novelty, but they just don't want to do it week after week after week. they just love the convenience of food that arrives they don't have to do much to it. those are the macro trends affecting blue apron. meal delivery premade is just so convenient. emily: we have seen other companies struggle. doordash just got a huge investment. olivia: doordash is growing like a weed. people just love to order food to their couch. i think we can expect even more growth in those areas for sure.

emily: fascinating stuff. thank you so much for stopping by. that does it for this edition of "bloomberg technology." on wednesday's show, we will be speaking with doordash's ceo. this is bloomberg. ♪

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