emily: this is bloomberg technology. big tech and the u.s. government are preparing for major antitrust battles this year. we will talk to the lawyer who took on a microsoft in the 90's. plus, google wants restrictions on huawei lifted. a top government official in charge of the u.s. stance on huawei will join us to assess the threat.

you no longer have to be an astronaut to visit the international space station. just need tens of millions of dollars. the company that will return a lunar lander back to the moon will join us. debut, tumultuous stock the uber ceo is parting ways with two top lieutenants in a major leadership overhaul. the coo and the chief marketing officer are both leaving the company. for more we are joined by our journalist who covers uber. month after an ipo to lose two top executives, it take like he wanted to control of more of the business. he's been out apologizing to anyone and everyone who would listen making peace in london.

then there was the ipo. now that he has the time to focus on the business, he wants to run it more and especially with the coo who is leaving, it is been a controversial figure already. matter of him having the time and space to take control and the fact that the coo didn't seem to be a perfect fit. >> you wonder which had more influence there. in an email sent to employees he said over the years, i have learned that at every critical milestone it is important to shouldck and see how we organize for the future. it now is one of those times. i can be more involved in the day-to-day operations.

it seemed that employees were with racist remarks and an internal investigation that eventually found nothing but could it be that they just could not get over the hump or that he was not performing? >> i think there is also just the element that andrew mcdonald who is taking over more the operations role and the key executives whether it is -- have been at uber a long time. they know how the businesses should run. andrew mcdonald was a key figure when another executive left and now he is taking on a lot of responsibility and the same with jill. and now she adds marketing to the purview. these have been to key executives inside uber who will

have the types of names we are seeing on tv. it will be interesting to see if they take more public facing roles. >> jill has been at uber for many years. the outgoing cmo just joined in the fall. she worked at coca-cola for more than 20 years. the leader said in his note that brand was becoming even more important. was just sign that she not working out? >> nine months into the job, she climbed the ranks at coca-cola. i don't know exactly what the drama was. that one was more of a surprise and it will be interesting to emerges if anything about this agreement. fixed its brand. lyft is still competing strongly on the basis of having a more liked brand by consumers.

uber's problems are still there. >> the uber drama continues. switching gears now, one name absent from antitrust investigations is microsoft. this is the first significant move of this type against tech since 2001 when microsoft was an qs of a monopoly. desh accused of monopoly. we have an antitrust lawyer with us to discuss this. also with us is our executive editor. the u.s. government has divided

oversight of potential investigation into google, apple, amazon and facebook. how much of a case do you think they have if they move forward with these investigations? to google,pect people have been complaining for quite a long time and it's has been veryduct well documented. the eu has brought three successful cases against google. there was a complete investigation by the ftc and some of google's conduct so with respect to google, they are probably far along. less so with the other companies but we don't know for sure. >> with google specifically, the ftc did recommend a lawsuit if you years ago. nothing came of that. why? >> i think it is politics. conducted an

investigation with great fanfare then closed it. if you years later, it's staff report leaked and was published by the wall street journal. it showed the bad things that google was doing. most viewers and observers and commentators think that google was protected by the last administration. even the president of the united states at the time spoke out ofinst the eu investigations google and facebook. it looks quite bag -- bad in retrospect. >> let's talk about the political dynamic. we have seen pressure from the president on all of these tech companies but we are also seeing support from both sides of the aisle. there is a campaign coming up. >> 2020 will be a big litmus test. elizabeth warren who has been climbing the ranks in terms of the polls, there is a more --

more support behind her. she has taken a bold stance on this talking about breakups of companies and the ways that you should not let companies like apple and amazon compete with the smaller developers and companies that operate on their platforms. that these companies are charging unfair prices that they are gathering too much data and using it against their competitors and acting in an anti-competitive way. is supportht, there from both sides of the aisle across the board. recently we had nancy pelosi and justice kavanaugh on the same side of some of these issues. again, you can't just say like you could in the past that the democrats or more sympathetic to the technology industry that they have silicon valley has democrats in their back pocket. you are seeing it from across

the board. seehat differences do you between the potential investigations of these four tech companies and the case that you brought against microsoft many years ago? >> i didn't bring the case, the government did. but that was at the urging of my clients. the biggest difference i think is a supreme court case called citizens united. a number of years ago, it said companies could make unlimited anonymous campaign contributions without penalty in the united states. that really changed a lot. beave been thinking we would out of the sherman act enforcement business because of that campaign contribution ruling. it looks like these big companies overstepped their bounds. they alienated a lot of people. they are right now on the path

that microsoft took that lead to a government action. that case, microsoft was not broken up but a settlement was reached. what do you see is the most in terms ofrio and action, that would come from the doj or ftc. what kind of result do you ask desh expect to happen here? since we are so early, it is hard to say what the remedy is going to be. you make a good point about microsoft. when we have gone after tech companies, we have not had to take down the hammer because they have seen the light and fixed things themselves. although most people think the government broke up at&t, at&t broke itself up when it was sure

the government would come after it. when the government started coming after ibm, ibm unbundled the software from the hardware and that is where the american software industry comes from. like you said, microsoft stopped doing some things that would've gotten it into trouble. if we get far enough along, if they willy believes be in for a big penalty they will fix it themselves. >> thank you. speaking of microsoft, a broader tech rally has lifted the company to over $1 trillion for market value. shares of the tech giant rose for the fourth straight day.

coming up a silicon valley giant coming to huawei's defense. we will look at why google wants the u.s. company to back off. that is next. this is bloomberg. ♪

emily: huawei is getting a surprise defender. the android maker is worried it will be forced to stop updating its operating system on huawei phones. says the new operating

system could be vulnerable to hacking. what is google lobbying for? that google think would be on the side of the u.s.. google sells its operating system to android. it's not allowed to do that now to huawei now because the policy of the u.s. government and that might change. the reason google says it is doing this is that in a world where huawei develops its own operating system, that would be where phone users are not a secure and potentially american users are using huawei phones, they could be spied on by the chinese government. i think there is more going on here. huawei doesn't want google to build a system that could be successful in selling other countries southeast asia and

africa. these countries where google and android is popular. mostawei is one of the popular smartphone makers in the world. not supplyinge them with the operating system couldn't that be a huge hit to the android business? >> it could down the road. it is all speculation right now. this whole tech trade war could go away and we don't need to worry about this anymore. you can imagine a future where huawei is able to develop its own operating system. governmentinese requiring other chinese smartphone makers to use huawei instead of android further eroding android's control. >> this is continuing to develop. u.s. stance on huawei evolves, we have the top cyber

diplomat at the state department joining us from washington. you are one of the top government officials when it comes to handling u.s. policy on huawei and 5g. realis your opinion on the threat of huawei when it comes security?ge and u.s. >> thank you for having me. it is important to recognize that as we move to 5g, that will be truly transformational. we are not just connecting our wireless devices to the internet. there will be critical infrastructure including ,lectricity, water distribution autonomous transportation networks including vehicles. to ensure that those are protected and not disrupted by an adversary state, we need to only use trusted vendors in our

5g networks. it is about espionage of course but it is also about a compromise a very important critical infrastructure of the future. ambassador to the united states was recently on bloomberg and said that these concerns about huawei are unfounded. i will tell you i have had many private conversations with top business leaders who are also skeptical and say that huawei does not pose a threat. what evidence does the u.s. government have that huawei has ever engaged in either espionage or the transfer of information back to the chinese government in a way that would compromise u.s. security? thee know that china has intent and capability to take advantage of a 5g network. intent has their been to steal intellectual property. we know that since 2010, there was rerouting of internet traffic through beijing with

china telecom. as far as capability, anybody in a 5g network that provides the hardware or the software which would be patched and updated every day would have the capability to compromise those networks or to x will trade data. the intent and capability and a best array of software that is going to be providing the 5g networks, china has more than enough ability to compromise our future networks or cause us to have to be concerned about that technology. >> is there a situation in which everould say -- see huawei be incorporated into a u.s. 5g network? >> among the concerns we have are the need to have free and fair competition. the need to ensure that whatever provider is providing that type of critical care to telecommunications network must be one that is not subject to the coercion of the chinese state. not subject to the intelligence

law and one that would be able to turn to an independent judiciary and not just be governed by the chinese communist party. and unable to be able to go into an independent court and object like our companies can and have about intelligence requirements or other mandates from the state would inherently put us in any other country into a subservient position. >> how far does this go? nowre talking about huawei but what about a cte or other companies? other u.s. companies that manufacture in china? where do you draw the line in terms of what chinese technology or manufactured technology can and can't go into u.s. networks? >> that is a good question. i can say that for today, a company that is going to provide the underlying key components to the 5g network in the sense that

they will be able to provide the operating system and the key hardware, that is an area of vulnerability that we are unable to accept the risk that would result from any types of mitigation measures we would place on a company like huawei or cte. when it comes to other types of technology, we haven't formed an opinion about that yet. >> the president has been in europe. he just came back to the united states he has been pushing the u.s. agenda that the u.k. and other european governments from theso ban huawei 5g networks. some parts of europe have pushed back saying it will cost own operators more money if they ban -- if they ban huawei. how much progress do you think the president made in terms of convincing european lawmakers

that this is the way to go amidst the other side? >> the president made tremendous progress with our allies talking about this. they have committed to having a continued dialogue about this. to the point about the cost and any delays associated with using more secure technology, we know that in the united states, our carriers will only be using the most secure technology which does not include huawei or zd. we know there will be more connections in america than in asia. a skepticism needs to be applied to statements by european operators who already have 50 or seven -- 50 or 70% huawei in their networks. be required to navigate away from huawei.

operators don't want to be mandated for national security reasons by the judgment of national security to move away from huawei at this time. they are probably exaggerating on the terms of cost and delay to their networks. should we expect more action from the u.s. administration toward huawei or other chinese telecom makers? >> we are still working on our i.t. supply chain executive order. to the look forward actual regulation that comes out of that. you for joining us. we are livestreaming on twitter. this is bloomberg. ♪

emily: ibm is laying off 2000 employees. a small percentage of employees who are not performing at a competitive level will be leaving. in a statement they said they are continuing to reposition our team. while aggressively hiring in critical areas. the move amounts to less than 1% of its workforce. itsx is not renewing contract with amazon. it is a strategic decision and amazon represented less than 2% of its sales last year. this as fedex's domestic air service will walk away from the dominant e-commerce company when the company and the rise of online shopping is feeling record demand. africa is coming online. two mobile phone makers may

bring new users to the internet at just $20 each. a look inside walmart's annual meeting. this is bloomberg. ♪

emily: this is "bloomberg technology." africa has the world's lowest share of people using the internet, just 25%. in many countries, high prices and poor infrastructure continue to stand in the way. two mobilephone makers may be nudging the nation online. south africa's ntn group and france's forge started selling -- orange started selling a smartphone to bridge the divide. it is a spinoff of a chinese giant with funding from google. tell us the scale of this. it is hard to imagine, but a

huge chunk of humanity in africa isn't online. how will this help? >> there are a lot of barriers to getting the 75% of people in africa, and the 50% of the world that isn't yet using the internet -- there are a lot of barriers. affordability is one. both the price of devices and the price of mobile data -- people are typically getting online through smartphones, so mobile data is a big issue. there is lack of good infrastructure, even in lots of places in the united states, right? mobile internet speeds are very poor. especially true if you are talking about rural areas in the u.s., and africa, there are physical limitations when people are spread out, if there are mountains or jungles,

all of that is a problem. there are literacy barriers and other social obstacles to people getting online. there is a whole host of challenges. emily: you talk about these phones having the bones of the cheap feature phone, but the brains of a smartphone. can you really provide the brains of a smartphone for $20? shira: if you are used to using samsungiest iphone or smartphone, maybe a candy bar phone with the guts of a conventional smartphone will not do it for you. you are never trying to text on a 1990's flip phone, it is kind of like this experience. these phones have a button in the center where you push it and you can use the google voice

assistant, which has been optimized for these low-power devices. in many cases you can get popular apps like facebook and youtube, which these companies have optimized for these devices. if you are google or netflix, you know in order to keep growing, you need to reach the other 50% of the world that is not yet online. those companies are having to do new things to optimize their services for the other 50% of the world that maybe doesn't speak english, that may be has not used the smartphone or the internet. those companies are all raising to catch up. emily: talk about some of the previous phone makers have faced in the past. there is rural terrain, geographical challenges that have made it difficult to reach of these people. shira: this is a long-standing goal.

companies and people like mark zuckerberg have been talking for years about what is called the next billion users, the 50% of the world not yet using the internet. definitely structure is a challenge. noware seeing companies like huawei and zte, these controversial telecom companies, they are making their equipment rural markets or urban markets that have not yet been served well. there are huawei devices that are solar powered, a cell tower that is low enough to operate with the sun and a backup battery. possible solight as you can install them in all kinds of nukes and crannies, maybe on a crowded urban street. the cost and challenges of beaming internet to underserved

voices is one of the central obstacles. emily: fascinating, bloomberg's shira ovide. thanks for bringing the story just. walmart wrapped its annual shareholders meeting in arkansas, where e-commerce and low wages were in focus. we caught up with walmart's e-commerce ceo and asked if it's delivery service to bring produce straight to your fridge is the special thing that will give them an edge over the competition. >> this is a great opportunity for walmart to leverage its unique assets. we haven't 4700 stores. in those locations, we have 100,000 products, including fresh and frozen. we started doing pickup a couple years back, now same-day delivery. we decided to take it a step further and deliver it directly into customer's fridges. >> you think this will help

customers choose walmart over amazon. >> i think this is a step change in the value proposition. imagine coming home and having all the groceries stopped in your fridge -- stocked in your fridge. >> what makes this viable now? >> we saw the opportunity to have our walmart employees make deliveries. >> you will use cameras in the home of the customer and on walmart employees. how much will that cost? >> we don't need to have cameras in the home. the associate will have a camera on their best. you as a customer can-- on their vest. you as a customer can track them in real-time or anytime you want. very safe for customers as well. >> once you get customers to allow you into their home, what else is there as well?

>> doing a return -- imagine leaving something on your table and going to work and we will take it away from you. or deliver general merchandise into your home without any packaging. i think there are lots of opportunities for services and health and wellness. >> have you thought about any specifics? >> we have some ideas. >> you have a very enthusiastic crowd there. deliveryas a menu of options. this past month you announced next day delivery. marc: it has been great so far. it is in the l.a. region right now. by the end of the year, 75% of the population will have access to next day delivery. the cutoff is by 3:00 p.m.. if you order by 3:00 p.m., you will get it next day in a single box. it will be overnight in one box. really excited about that.

>> you said this has not costed walmart anymore. >> the big reason is we are able to get it in a single box, and all this inventory is replicated close to the customer. if it is close to the customer, it costs us less to ship it. it is actually cheaper. the reasonout, is it it is taking longer to roll out because you need to build logistics? marc: we are being very measured and how we roll it out. by the end of the year, three quarters of the country will have it. 40 of the top 50 metro areas will have access to it. four 45 areas a month we are adding. -- or five areas a month we are adding. >> home delivery must come at a cost as well. you launched initiatives on the e-commerce side. it isn't yet profitable. how much pressure are you under to make it that way?

marc: we are in a good position. over the last year we rose our profit margins. we are delivering into categories like fashion and home. >> does that momentum give you any sort of date for when you make it the inflection point? marc: we feel really good about where we are and where we are going. emily: walmart e-commerce ceo marc lore. coming up, nasa wants to return to the government president trump thinks that is a bad idea. we talk about the controversy in the modern race. this is bloomberg. ♪

emily: women accounted for 33% of apple's workforce yesterday according to the latest inclusion and diversity report. in 2018.w hires the company said it has reached pay equity in every country where it operates. the international space station is open for business. nasa announced friday it would open the iss to commercial businesses and tourism. >> pharmaceutical companies that butterravity can mix pharmaceuticals. there are better uses for creating artificial retinas. at the thin levels on earth, they collapse on themselves, but

you can create these in no gravity. in some cases it can open of the opportunities for blind people to see again. cableso have fiber-optic that can be produced at much better quality than it can in a gravity environment. emily: the news comes a week after nasa selected three companies to send robotic letters to the moon. spacecraftevelop that will carry nothing equipment to the lunar surface equipment tonasa the lunar surface beginning next year. space angels is an ambassador botics.o congratulations. this is a huge milestone for your company. in being is astrobotic able to send a lunar lander with a giant load to the? payload to the moon?

>> we are thrilled to be leaving america back to the moon. paylender will take 28 oads, 14 nasa and 14 non-nasa tables. this is the beginning of regular routine surface access to the moon. emily: meanwhile, president trump had some thing to say, "for all the money we're spending, nasa should not be talking about going to the moon. we did that 50 years ago. focused on things like mars, of which the moon is a part. >> before i was walking in, the white house put out a statement talking about how he was reaffirming their commitment in going to the moon as a way to get to mars. the mars-moon debate has been

ranging above states circles for a long time. it goes back to the obama nasa agency. the moon is seen as a staging ground to understand how to operate on mars. when we go to mars, we will have to be there for two years. this is what was mentioned this morning, talking about the importance of living off of the land and being able to stay on mars for a couple years. emily: of the three companies chosen, astrobotic will be carrying the biggest payload. as i understand it, the goal is deliveries. style what exactly would you be delivering on a regular basis? >> we want to make the moon accessible to the world. that means taking payloads from all different space agencies, corporations, even universities.

our first mission is a mix of science instruments, experiments to go to the surface of the moon. infrastructure, like a laser communication system that will dramatically increase the space,th possibility in as well as extraction from the surface of the moon. if we can live off the moon and produce rocket fuel, that could be transformative for our transport to and from the moon, and probably one of the best ways to get to mars. the moon is the best pathway to reach our ultimate goal of mars. emily: the lenders are expected to fly in 2020 and 2021. how far are you from sending a human up? >> we are primarily focused on robotic lander's for the near future. we have small rovers that will be going up on the early missions. we have a lander that is twice as big as the early mission.

we are scaling up in time. the robotic side of flying to the moon will consume us for some time. when the humans are going to go, we will need robust to scout the area and collect resources. we will need robust to build settlement sites and clear the area for lenders. -- for landers. robots will be a key part in concert with humans when we are exploring the moon, and eventually the same architecture for mars. opening up a visit to the iss for $50 million. what is your take on nasa opening up space tourism to very wealthy civilians? i got,t was the takeaway private astronauts. the space station is making it

more accessible. you heard about manufacturing and research in space. they are making nasa astronaut time available. controversially, they are making marketing opportunities available. private astronauts as well. that is supplying the market with more space station. they are supporting the demand side as well by supporting these new commercial habitats that are in development. nasa has really given them an idea as to how much demand they would want and being an important early tenant. , blue where do spacex origin, virgin galactic -- where do they fit into nasa's efforts today? chad: they play a really key role. they have opened up space and the entire space economy for the

new entrants today. ands the lowering of cost making their pricing transparent that has allowed for these new innovative ideas to be realized. thistoday on the heels of nasa announcement, bigelow announced they have put a substantial deposit on spacex launch vehicles to take astronauts to the space station. spacex will be taking these private astronauts, boeing will as well. they will be taking a number of these commercial service companies as well. emily: fascinating. space angels ceo chad anderson. astrobotics ceo john thorton. looking to every step of the way. a number of companies have hit the public market, but not all have been off to a hot start.

major shares have been -- we talk to the ceo about what sets the company apart. this is bloomberg. ♪

emily: pagerduty came out of the gate strong with its first earnings report since going public in april. the digital operations management software company up 49% year-over-year, ahead of analyst estimates. it is one of the few companies to go public this year, making a splash in the green. i want to bring in pagerduty ceo . we have seen companies not even hit their opening price. what makes pagerduty different? >> we were ready. we were in a good position with a business model that we understood reasonably well, but

we solved a very common but painful problem for our customers. it is a pretty ubiquitous problem. it doesn't matter whether you are a large or small startup, you have consumers increasingly demanding about an experience, and you have technology that makes delivering that harder and harder. emily: trying to use technology and ai to see tech issues before users can point them out. talk about what the new frontiers are. jennifer: the old way of doing things is something would go wrong and a customer would complain about it and that would start a many will process where humans would work to find the root cause. today we use machine signals to signify something may not be working the way you expect it to be and could potentially cause an impact over time on customers. we are using machine learning on

our platform to get teams across different parts of the business to work together to solve the challenge proactively before it becomes a customer issue. emily: does this overlap with cyber security threats that could also disrupt? jennifer: many cybersecurity teams use pagerduty as a part of the response process. that is why we invested in integrating over 25 applications and solutions within the security space, to ensure that is easy to do. emily: how concerned are you about continued market volatility as a public company? in the middle of the trade war with china -- i don't know what your exposure to these issues might be. jennifer: we don't currently serve customers in china, but we look at the broader macro dynamics. market volatility is part of any cycle you might be involved in leaving a public company. eeving said that, we s

continued strong demand signals from our customers. every company of some form is going through cloud migration or transformation or worried about i.t. security. these are not products that change depending on what happens in the market. part of my job is to keep people from being distracted from the volatility. emily: when you look at companies like lyft and uber, who didn't have strong ipos, and you look at companies like yours with blowout ipo's, what do you think the differences are? jennifer: investors look for businesses where they can understand the market. is it a big market? are you solving a problem that is going to continue to grow? do you have a lot of competition? do you believe in the business model? is there a path to profitability? pagerduty ticks a lot of these boxes.

we are very early in this market of digital operations management. it is a big market. a lot of our customers are just getting started. we think there is a lot of opportunity overtime, but it will take some time. we deal with customers at every point of the continuum. they are very immature from an operational perspective, or they are already adopting a lot of artificial intelligence to their work processes. tejada, ceo of pagerduty. thank you so much for stopping by. that does it for this edition of "bloomberg technology." you can always catch us on twitter. you can follow are breaking news network tictoc on twitter. have a wonderful weekend everybody.

we will see you on monday. ♪

david: what does the moment of a lift refer to? >> if we can lift up all women, we will change the world. david: do you find sometimes a woman would say, take my child? >> it is heartbreaking. that is the story of women, many around the world. david: when someone called you, we are giving you $50 billion or $60 billion we did not expect, what did you say? melinda: bill and i took a walk and we both cried. david: when did you first meet bill? melinda: he said, a bunch of us are dancing, why don't you come? david: is he a big dancer? >> would you fix your time, pl