♪ emily: i am emily chang in san francisco and this is bloomberg technology. in the next hour, how one analyst describes the third fall.r after shares suggestsdent trump talks with china's might not happen. negotiators will head to

washington. what all the back-and-forth means. and president trump once federal federal to -- wants agencies to work with social media companies to stamp out hate. but first, uber shares continue a fall after sales miss and 5.2 billion dollar loss in the second quarter. much is due to the ipo in may. cooper is trying to reassure investors, saying losses will -- uber is trying to reassure investors, saying losses will come down over the next few years. why such a dramatic reaction? eric: i think the stock reaction had to do with the revenue mix. if you are going to lose that much money, you have to keep growing. a $5 billion plus net loss is huge. that has to do with the stock

uber loses ipo, but money regularly, although it did beat expectations. emily: are investors generally buying that this is a once in a lifetime of a company fix? eric: that narrative is challenged. i think if they were holy buying uber aboveuld see its ipo price. analyst remain optimistic about uber. many have buy ratings for the company, but there is a lot of short interest in the stock and there is a lot of skepticism because the gross margins are huge and continue to grow somewhat, but will they outgrow the losses? ceoy: meanwhile, the uber talked about how he believed the competitive environment of ridesharing in the u.s. is going to start to stabilize.

toe a listen to what he had say. >> the competitive ridesharing space continues to be stable and to improve. we will see plenty of competition and significant capital investment but incredible potential. >> the competition for uber is not dying down anytime soon. rise after shares their results. a much more focused business. is the uncertainty around huber going to be a long-term deterrent question -- uber going to be a long-term deterrent? still loses a substantial amount of money, but compared to uber, which needs to use money from ride-hailing to do food delivery -- that's

basically what he is saying. ,ou see companies like doordash which spent 400 million dollars buying caviar, it's a huge investment area. emily: talk to us about uber war.and the ensuing the delivery business is super competitive as well. >> on the one hand, they talk a lot about japan. i think there are definitely uber has a strong position. generally, they have lost to doordash. they cannot say they are the

market leader in most of the places they operate. fight fororking to position. it's an exciting category that investors would say they should not abandon, but it makes explaining their financial story more challenging. over: what will it be like the next couple of quarters? they gave more of a forecasted than they have before. eric: we are going to be watching to see if these losses are one time or if they are humongous. second, revenue needs to keep growing. it's about the pace of growth and whether they can hold market share against competitors and keep growing. global losses keep coming down. are the losses on a path

downward and does revenue keep growing? it's pretty simple, they just have to deliver on it. emily: i know you will continue to cover it all for us. thank you so much. now, to another story we continue to watch. huawei has-- whil offered its first glimpse at software that might someday replace the google android system. skippen-door software will smartphones and instead to find its way into everything from cars, watches, to personal computers by 2020. we are joined by tom giles. google cannot supply the most updated operating system to i isei because huawe blacklisted. is this new operating system any good? tom: we don't know is the short

answer. there is so little we know about it. does it work? how reliable is it? huawei has made interesting claims that it is faster, more secure than android, pretty outlandish claims for something that has not been proven and is not widely available. there is so little we know. rolling out a software operating system to millions of phones is not the kind of thing you do overnight. arey: and may be why they skipping phones initially. we know that and that it's called harmony os. tom cole and and they are putting a lot of money into it, getting -- tom: and they are putting a lot of money into it, getting a lot of resources. but they are going to make it available to other devices, the whole internet of things, make that available to people, but

it's not going to be available on devices in the meantime. already derailed to the company's efforts to become the world's largest smartphone maker. they were on track to do that. there was a lot of fanfare around that, a lot of expectation, and bam, along comes the trump administration. emily: meanwhile, trade tensions continue to ratchet up. trump saying we are having the talks, we are not having the talks and then saying that's. mr. trump: we are not going to i business with huawei, and really made the decision. it's much simpler not to do business with huawei. that doesn't mean we won't agree to something if and when we make a trade deal. orly: so if you are huawei

google, how do you interpret that? : the trump administration has been flip-flopping so much, saying no way, not at all, and then backtracking, saying we know there are u.s. suppliers, chipmakers, for example, who are really intent on making their product available to huawei, and we think some of these manufacturers have found ways around to the embargo. you remember last night bloomberg broke the news that the process of filling out applications to cellular is on hold.o huawei those applications are sitting on someone's desk and no action has been taken on them while the trump administration continues pressure and china, in turn, retaliates. about we will talk more the trade dispute and its

evolution later in the show. thank you was always. coming up, we will discuss the fight to end online extremism of -- with each share of the house homeland security committee. chair of the house homeland security committee. this is bloomberg. ♪

emily: the white house close the week holding a summit with various tech associations and companies. the goal? trying to find ways to fight

online extremism. the white house press secretary tweeted that the conversation focused on how technology could be leveraged to identify potential threats. he added, we urge social media companies to continue their efforts to address violent extremism without compromising free speech. i would like to welcome congressman bennie thompson. he is the chair of the house homeland security committee. he joins us on the phone from mississippi. congressman thompson, how productive do you think a meeting like this could be between the white house and these companies in this climate? >> well, i think it's very difficult. first of all, you need all the stakeholders there. you have to have members of congress. you have to have the companies. you have to have advocates who monitor systems.

we have to have all the players in the room. i just hope the white house is not trying to give the impression that they are concerned with in reality they have not provided the real leadership to address this issue. emily: what would the real leadership to address the issue involve? you need to bring all the stakeholders together to talk about what the challenges are. we don'tno question have a point person in the white house, a main point person to address election security. we have a constant churn in our intelligence community with respect to leadership. right now, as you know, director coats is leaving. the person we thought was going to accept the position has had to resign because the president

wants to put another person in that position, so we have, in a number of very senior positions, a lot of acting people, so you don't have the ability necessary to create the program for this matter to really be addressed. from a legislative standpoint, we have had a difficult time getting this administration to acknowledge we have a problem. as you know, russia, we now know , did quite a bit in the last presidential election. for two years, everybody in the administration was in denial that russia did not do anything. now, we know there are other bad actors. korea, who, north also would like to compromise some of our systems, so the

notion that a coordinated leadership inclusive process that involves all stakeholders is yet to be done. i am suspect of it because in reality, if we don't have all the parties around the table, nothing will ever happen. emily: meanwhile, we have a problem with domestic online hate. in the aftermath of the shooting in el paso, we learned that the shooter allegedly posted a manifesto on heat can. chan. you sent a letter to the owner calling on him to testify. what do you want to hear from him and what do you think the problems with the platforms are? wax the platform is being used to push so much of this terrorist -- platform is being

used to push so much of this terrorist philosophy. i am a civil rights advocate, but i understand there are some things, given the times we are in, that we have to monitor, and some things, in the interest of keeping america safe, we have to cyberlow over our security systems and platforms. n, and contacted 8-cha they come as you know, have already pulled the platform. we have been in communication with the owner, and i am happy to report that we are creating to getrtunity , whether itfrom him be an committee or in a session with his attorney present. but it appears we are getting general agreement that there will be a discussion between the

homeland security committee and 8-chan.r of emily: all right. the president has called on federal agencies to work with social media companies to try to identify shooters before they pull the trigger, really putting the onus on social media companies. he has talked about mental illness, but he has not talked about the role of guns. blame do of work and you think the government shoulders and what about the social media companies themselves trying to combat online violence? we have is no question to have those companies actively engaged in monitoring their systems. it's no secret that they have in their general oversight. getave been attempting to

the amount of investment those companies have been putting into and in monitoring, and we have yet to get that information back. we do not feel at that -- from that perspective that enough is being done because we have yet to receive accurate information. we have been told the companies are now aggressively monitoring what is being put on their platform, but that's still not enough. the transparency has not improved. they have not shared it with members of congress. there is a need for companies to also a, but there is need for members of congress to put together what we think would be required. to be honest with you, in terms

of gun legislation and domestic terrorism, we have to do something about this military style assault weapons that permeate most of these killings and make them illegal. we have to put in waiting periods for the purchase of guns. we have to make sure that don't have disqualifying illnesses, and we have to follow up on that. but as you know, one of the first things this administration did was to do away with an obama era policy that prohibited people with medical disabilities in terms of mental health from acquiring weapons. so now they can. so, the president is speaking one way, but his administration

is doing away with policies that prohibited certain mental health illnesses individuals from owning guns. to president has to listen the american people rather than the nra. i am convinced based on the that a number of people, a substantial majority of people in this country, around 70%, are wanting to do away with assault weapons. assault weapons that are sold in this country and they would absolutely restore the ban. is reporting that the white house has drafted an executive order that would put the fcc in charge of how social facebookpanies like and twitter moderate their online content. do you have any knowledge of

this or do you think this is a ?ood idea >> up until this point, the administration has been relatively silent on this. it would have to include, at a to dom, the authority certain things. have acknowledged that cybersecurity is a vulnerability. --tforms are not robust platforms are robust, but we have never looked at the federal trade commission as the solution. anhave acknowledged from intelligence gathering standpoint that cybersecurity has to be robust in order to be

effective? without leadership from the somebodyse, without taking this responsibility, it will just get packed on from -- passed on from acting person to acting person, and that has been a challenge. emily: congressman bennie thompson of mississippi, thank you so much for taking the time to chat with us today. we appreciate hearing your views here on the show. alexa caughtazon's in a controversy. why kindle is now facing an investigation. and be sure to follow our global breaking news network tictoc on twitter. this is bloomberg. ♪

again amazon under fire after a major contractor refused to obey labor laws for wages. accused of is overusing high school interns and forcing employees to work beyond legal limits. the company makes the echo, and kindle e-readers in china. says they have replaced the head of human resources and punished the manager responsible. delayed the scheduled broadcast of the videogame competition. it features gun violence. president trump said earlier this week that videogames glorifying violence and riveted to the shooting epidemic. be aired inion will

october. more bloomberg technology coming u.s.-chinainto the trade war. this is bloomberg. ♪

emily: this is bloomberg technology. president trump fanned trade war flames anew suggesting that the talks might not happen. trump told reporters that while the countries have an open dialogue, the u.s. is not ready to make a deal. pres. trump: what is happening now is we have an open dialogue. we will see if we keep our meeting at september. if we do that, fine, but if not, it is time that summit he knows what they are doing. said heresident trump has no plans to de-value the

dollar. this after the administration china a currency manipulator. to david levens or. -- david levinger. what do you think of the strategy so far? u.s. hasthink that the been pursuing a strategy of if we dial up enough pain and brow beat the chinese, they'll cry uncle. so far it hasn't worked. emily: will it work? david: i don't think it will work. positivent to promote change in china you need to work with your other trading partners and allies. you need to focus. offcan't take a sawed

shotgun approach, you need to focus on the issues most important to the u.s., national security and the economy. emily: it seems like both sides are digging in. is there any going back? how hopeful are you for a deal? i am not that hopeful. there is a big deficit problem in u.s.-trained -- u.s.-china relations. trustthe trust -- deficit. saying why the u.s. is agricultural u.s. products first and the chinese are saying you fix huawei first. -- chinau have the pushing for the u.s. to manipulate its currency and the

u.s. calling china a currency manipulator. but at least there we heard the president stopped short of going further. david: the whole manipulation for him tosking throw in the kitchen sink -- which is what we have done with all of these sanctions -- when nothing is left i guess you call them names. compared to what we have already done, calling them a currency manipulator is like flogging them with a wet noodle. about naminged them a currency manipulator, i'm very worried that our commerce department will start to slap on tariffs on countries that they say have undervalued currencies. emily: some additional commentary from the president on devaluing the dollar.

pres. trump: we have such a strong dollar. the dollar is at a level that it makes it hard to do what we have. money is pouring in because we have the safest currency in the world. we have a standard of the world. emily: how is this impacted u.s. credibility around the world? i think that when you called china a currency manipulator, and really there is no basis for it. if they have been doing anything they were trying to keep the currency from weakening. this is clearly a market-led move. there were times when you could have called the may market manipulator -- called them a market manipulator. when the u.s. does it, it loses credibility. emily: thank you for your

thoughts. sticking with trade, the bloomberg new economy form comes to beijing. in san a special event francisco to talk about the evolving trade tensions. i spoke with professor susan shertz. and joy cann. we talked about the u.s. ban on huawei and i asked tan about the safety and security. singleever had a security incident so we have a proven track record. we opened our self for testing in the u.k., in germany, and canada. all of these governments are satisfied with our solutions. in?an i jump

isould argue that there security risk from huawei, but the answer is not let's dump the company. if we want a solution, we cannot muddy the risks. emily: what can you say to convince the united states government that the chinese government doesn't have a backdoor into your company when they work with private companies across china? ken: i'm skeptical. in my experience in china, the distinction between private and public in china is a fiction. it is the chinese government utilizing our terminology to, in a sense, mislead us. function.they are a if a private company becomes functionally it is going to resemble an soe.

emily: does the white house have a point? can the u.s. protect national security and continue to have a strong relationship with china? >> i think that it can. it depends on how we define the domain of national security. former secretary of defense robert gates, in talking about , what he said is you want a small yard and high fence. means not every advanced technology. include advanced manufacturing necessarily. it would not necessarily include biotech or development or cancer drugs. it would not include all of a

.i. necessarily. you have to have a more limited definition of technology that china is developing through various indigenous efforts and trying to get technology from the rest of the world. directlythat are going into making the people's liberation army and chinese military more capable. if you don't put some boundaries we'reve a small yard, engaged in technological protectionism. technological containment of china. the folks in china, that is the way that they see this. they think we're doing everything that we can to slow them down. to slow their progress to maintain our own superior position. discussion for a

special broadcast of the bloomberg new economy. a community of global leaders engaging with the most significant changes and challenges. you can watch it tonight right here on bloomberg television. facebook, youtube, twitter. the three social media platforms of choice for extremists. we will talk to two parts about how that can be stopped. this is bloomberg. ♪

emily: our continuing coverage of combating online extremism. summitte house hosted a with tech companies on the subject. we know two tech companies in particular were there. thre were two of the top

-- those are two of the top three social media platforms used by extremists. i would like to welcome the professor of social media at syracuse university. hayes, vicejim president at guidepost solutions. as somebody who has worked in federal law enforcement, do meetings like this accomplish much? can.i think that they i think what this administration imploreg to do is to the technology companies about how important it is, the platform they provide, and the information that could be shared that is detrimental and to provide an exigency if someone is making statements or threats that imply violent action.

talking to these companies is helpful. trying to foster that collaboration is necessary whether or not it leads to substantive action. building that is critical. emily: when looking at the origin of these mass shootings, how much is social media to blame for letting online extremism and violence run rampant? some say that the president has fanned the flames of some of these behaviors. how much of this is human nature? jennifer: a lot of the discussion has been about the platforms. facebook, reddit, 4chan. a little bit of that is a distraction. we need to focus on internet memes which is how this ideology and rhetoric that the president

has been pushing gets transmitted among people. we have been talking about the platforms, but i think we need to talk about the ideas as well. the white house meetings are important for collaboration. we can't be distracted about the messages that are also transmitted. emily: without getting too graphic, which type of ideas are you talking about? of ther: these are some internet memes related to immigration, but it can also be the concept such as fake news. even the textual languages a meme -- language is a meme. the idea that the free press doesn't play an important role in the united states is also a problematic ideology among the rhetoric. emily: how much of that would how much then internet has changed and how

much law enforcement seems to fight some of these issues, and to companies need to fight help prevent them. jim: i think jennifer is right. on social media, the proportion of negative information certainly can have an environment where like-minded people are encouraging each other to take action. one thing we can't get away from is the concept of personal accountability. when it comes to people committing these mass shootings. the stabbing act in los angeles -- we have to look at the attacker. we have to look that this is something that that person did that they are responsible for. we are losing the concept of personal accountability. everything is somebody else's fault. when i look at who is at fault

primarily, it is the people who committed them. emily: jennifer, how do you respond to that as summit he who looks at the broader ecosystem? jennifer: i want to echo what jim is saying too. in the wake of the russian election interference, we saw a lot of attention on internet memes and media literacy, this idea of fake news and we had to know what we are reading. i would like to call on the increasing importance of understanding this concept of influence and persuasion and allowing memes and memetics to come into our lives. it's part of the personal responsibility about being a good human. that weves the stuff consume but also what we share and who we look up to, who our mentors are and who we elect to leave the country. emily: do you think the federal

government should police social media companies? jim: i don't know that i would say that that is what the government's role should be. the companies themselves have rules about the type of content. unfortunately they are newer policies out of necessity. i think that media plays a role. i remember classes in high school and college that talked about what is yellow journalism. in my career in law enforcement, i learned pretty early on that what you're reading in a newspaper or periodical, there is a point of view that certain media organizations drive. it is important for people to understand that and to not take at face value what they are reading. people have to do their own research. they have to make up their own minds and not just believe what

is put in front of them. sometimes that is lost as well. emily: the president seems to want the federal government to help social media companies identify shooters before they pull the trigger. is that realistic? teach social listening at syracuse university. i teach being able to monitor to listen for news stories and journalism based on keywords and the study content moderation. at the end of the day, we have to talk about regulation in corporate citizenship. unfortunately, the regulatory companies is so light they do not have to engage in good business practices. we are talking about raising the bar, what we need to see from regulators in the not it states, how europe is leading the way.

untilis a risk to society social media platforms, into the structures we have seen in broadcast and radio. social media platforms are getting a big exemption and it is problematic. iel of jennifer gryg syracuse, university. jim hayes. it is a debate we need to have. thank you both. just months after a merger fell esart, the chip maker finds symantec's enterprise division. this is bloomberg. ♪

to buybroadcom agreed

symantec's enterprise division for $10 billion in cash. the deal comes roughly a month after discussions for a full merger fell apart. andre joined by ian king hans -- who currently holds a buy rating on broadcom. >> it looks like they were talking, could not get to a price and radcom said how about this particular division? symantec had been struggling with that division. broadcom said we could do a better job. emily: what does it mean for broadcom and the chip industry at large? sense.broadcom it makes it makes their software business

bigger. there are more sales and synergies. for bras,mi industry, --notadcom, they would be susceptible to the cyclicality of semis. i think it's a good deal for them and the industry. emily: in the meantime, you have intel shares falling this week. you have what is happening with amd. how does this change the competitive landscape? promotinghas been them for a long time. they have exceeded expectations in terms of the customers. they made some promises around performance and price which

would be very difficult around the market which is service. if they are capable of executing on promises, it will be toe to toe for a while. emily: what is necessary to keep up? hans: now they have to deliver. i was surprised that the relativece improvement to the intel best today, it is about twice the performance. it has never happened in the history of the silicon. i don't think they have a roadmap for the next several years that could match that. will easily amd surpass the market share they reached into thousand six. -- in 2006.

intel will be pressured like never before. big things coming for amd ahead and a tough environment for intel. emily: how much does this depend on the u.s.-china trade war not escalating? it doesn't look like there will be a deal anytime soon. hans: that is a challenge for the entire industry and it is independent of the market share trend for amd and intel. as analysts, we have been trying integrate the faraway component into our models but it is a problem in terms of managing. even in the next quarter because of uncertainty. it is a stressful dynamic that will hopefully not continue. emily: what are you watching? hans was justhat

talking about. we are watching for the next tweet. in july we had a scenario where the leaders went to the white house and it seemed like they would come away with the ability to move forward. fast forward to this week when we expected licenses to be handed over and we are left reporting that it doesn't look like that will happen. dominating everything. these are a lot of semiconductors. if you are an american company, you have to have access to the chinese market. anything that threatens that is trouble. emily: thank you both so much. there is a lot to watch as the trade war continues to evolve. , -- are said to unveil their ipo filing. we knew that they were planning to go public soon.

we will bring you more news on that as we have it. stick with bloomberg. that does it for this edition of bloomberg technology. this is bloomberg. ♪ ♪

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>> you have been in north korea. you have spoken with the leader. what kind of person is he? >> i have spent more time with him than any american. i passed dennis rodman on the last trip. tweetedpresident has unfavorable things about some people working for him. he has not tweeted unfavorably about you. >> it is early. >> sometimes when people get close to the president and see the job up close, they think i could do that.