Across the region were destroyed two weeks ago by the hurricanes. Global news 24 hours a day powered by more than 1 after 25s across the region were 2700 journalists and analysts in more than 120 countries. I am alisa parenti. This is bloomberg. Bloomberg technology is next. Emily i am emily chang and this is Bloomberg Technology. The iphone 8 has been on the market for a few days. Suppliers are not feeling the love. Shares have dived for vendors on the supply chain. We look into what is driving the slump. Chest in thets war crowded deliveries market. We will hear from one of the earliest investors and now board member that will join us to discuss the latest funding round. She became the face of the fight against gender discrimination in silicon valley. She joins us to discuss her new book on her highprofile lawsuit and moving the needle on diversity in tech. Consumer excitement surrounding the release of the iphone eight and latest versions of apple watch and apple tv have not translated to apple suppliers. See foxconn has fallen as much as 10 since the new unveiling earlier this month. Others have plunged more than 12 . What could be causing the slump . Apple has told suppliers to delay part of their shipments for the production of iphone x devices. Joining me from San Francisco to discuss, alex webb who covers all things apple. Analysts are saying iphone 8 orders are substantially lower. We have this report about the iphone x. What do we make of this . The problem is we are not comparing apples to apples. Staggered the release of the items. On the one hand, they are saying iphone 8 orders are slow. The new report seems to suggest apple is not expected to ship as many iphone xs. It could be that is not reflecting demand. Apple sometimes tries to to make it hoty to buy and build up expectations. They could be short of the technology the screens and cannot make enough. If the iphone 8 sales are not going well, it could be a bad or good sign for the iphone x. We dont know. It is really tea leaves. There is the idea that perhaps some people who want to buy the iphone 8 will wait and see the iphone x and if they decide it is not worth the extra 300, they will still buy the iphone 8. The first indication is when we start to see the earnings numbers in this quarter and the subsequent one and we queued can see the sales price. There might be some profit taking in the market. Apple stock has been on a tear this year. There are expectations for the device. The indication of a little thereforen iphone 8 they think means it is a good time to get out of the stock. Emily what about the iphone watch . The only moment we will know that the apple watch is becoming significant is when they start breaking out the sales. There is no indication they will do that yet. Lets not forget these products are far smaller in terms of revenue drivers in apples iphone. What is apple saying about whether iphone x will cannibalize sales of the iphone 8 . The other way around. It is the big problem. Often when you go into these new product launches, there is a slight skepticism in the market. Has the apple bubble burst sort of thing and will keep will people keep buying these products . History shows they do. The price point may change it. There is a note this morning from Drexel Hamilton saying they would buy now because of the declines in recent weeks. Emily interesting. We will talk about this more. Alex webb, thank you so much. After paying 800 for an iphone 8, the last thing you might want to do is take it apart. That is exactly what my next guest did to get a look at the hardware inside. Joining me to tell us what he found, wayne lam. You have looked inside every iphone since the beginning of the iphone. What struck you about the iphone 8 . What is different from the predecessors . We have had about 10 years of experience looking into the design of the iphone. I think the iphone 8 shows us there has been an Inflection Point in the design evolution of the iphone. We have seen it with the iphone 7 and now the iphone 8. We are seeing more newer in the components to justify new features we are seeing. Which we willlus release the analysis for has most likely the highest building cost we have seen yet. You can see a lot of the content and component going into memory, computing, the camera which yields a very good camera experience on the iphone 8 plus. Evolutioning this towards more and more feature steps. Up for the next big jump in innovation with the iphone x coming out in about a month. Emily you talked about the incremental memory upgrades but said this phone is different. How so . If you look at the history of the iphone, there is a time when iphone memory rates have not changed. It stayed at about 16 gigabytes for seven years. The reason for that is it is how you look inside apples monetization strategy. They sell you the base model at 16 gigabytes so the next incremental increase in storage would be 32 or 64. It incurs a 100 premium. The variable cost to apple is probably less than 20 of that. That has been their profit engine so to speak. Go ahead. Emily there has been talk about apple having handicapped the iphone with respect to future productivity. Can you expand on that . That is my words coming back to bite me. I was mentioning how apple is using dual sourcing of the modem from intel and qualcomm. The qualcomm chips in the iphone 16. A cat the intel version is only cap 12 cat 12. To compensate and match the performance, it had been designed so it does not take full advantage of the qualcomm chip. An analogy would be qualcommbased iphones give you 10 lanes of highway traffic but the other only allows eight to be operational. That is the handicap we are seeing. Emily the iphone x is coming. What are you going to be looking at most closely under the hold of the iphone x as compared to the iphone 8 . There is a big emphasis on the display of the iphone x. In tightomething demand. Are something of a new novelty to apple. They have used it in the apple watch but never implemented it in a smartphone. For a display that large and custom, they only have one supplier today which is samsung. We will be looking closely as to how they control the cost and manage to implement it on the iphone x. And also the other poetry components that are interesting is the true i. D. That is the fruits of the purchase of prime sense, that nextology behind the xbox connects. Theyve shrunk it down to something that will fit on the phone that enables facial recognition and so forth. There are a lot of great technologies to look at. Emily we waiting for your analysis. Wayne lam, thank you for joining us. Hasng up, deliveroo closed a new funding round pushing them to be one of the most valuable startups in the u. K. We will hear from an early investor that increased their stake next. Bloomberg technology is Live Streaming on twitter weekdays. This is bloomberg. Alreadybers c. E. O. Is demonstrating a more diplomatic approach with how he is handling his first big challenge, the revoking of the license in london. In an open letter, Dara Khosrowshahi says you have my commitment we will work to keep this city moving safely. Uber has said it will appeal the decision and started an online petition that has more than 750,000 signatures. Lyft is looking to expand in london according to the financial times. Deliveroo is one of the most valuable startups and the u. K. After raising 385 million in its latest funding round. The Company Plans to improve logistics and spread to new cities. Growing asoo keep the Delivery Business gets more competitive by the day . Martin, you guys are very confident in the future of this company. 385 million is a lot of money. What will it be used for . First of all, i want to say for great,reat day homegrown European Tech companies. We first invested eight years ago. It is very humbling and a great day for us in europe. We are very proud of what they have achieved. In terms of what the money will be used for, three main things. The first will be the rollout of the infrastructure to enable restaurants to open to a new area with very very quickly with little capex. The second is around product improvements. That is how you drive a lot of extension from the business. Is extending the business. There are many more cities to cover. Emily deliveroo has grown substantially. But there is skepticism about food Delivery Business and the margins. When you have giants like amazon getting into the business, how do you see smaller startups faring in this very competitive world . Having Large Companies come into your space is scary but it validates the size of the market. I think that is what we are seeing here. One of the reasons we are so excited about deliveroo is the size of the opportunity. Todayod takeaway market is about 25 billion. We see them is going is going andr the restaurant markets more importantly the grocery market worth 1. 2 trillion. In the 12 countries where deliveroo operates today, im not even mentioning the u. S. Or china or other large markets. It is a very large market and we are at the beginning of the trend. Just scratching the service. That is amazing. It has only been four years for the company and this is still the beginning. People are shifting behavior. We are seeing in the products they are shifting their behavior from growing to the supermarket and cooking once or twice a week to using deliveroo to order food much more frequently. That is a shift in consumer behavior. That is why the market is so. Arge emily softbank it back out of investment in part because of competition from uber and general skepticism about the space. What is your reaction to that . I cannot comment on any specific investor. The chapter on analysis. Investing preipo puts you in a strong position for the future growth of the business. If you want to go public, they are a great investor to have. They are two of the best. I dont think any other investors could have been better. We are very happy with around that happened the around that happened. Emily london authorities have revoked ubers license to operate. Do you think uber will work its way out of this . What is your reaction . I think it is a shame, to be honest. Quite disappointing. I do think uber has had its challenges. It is a fantastic product. Offering a great product for the users. London and all the cities in the world are better off having uber in their cities. Theone thing i would say is transport for london organization is in a tricky place by building a monopoly for uber and by not allowing new entrants into the market and getting them to grow to a large size. Better approach would have been to work with openingtheir issues and the market to more entrants. Emily it will be interesting to see if lyft can make a dent in that market. Martin, thank you for joining us from london. Coming up, a new report says president obama tried to give Mark Zuckerberg a wakeup call about fake news after the election. Details next. This is bloomberg. Week, facebookt c. E. O. Mark zuckerberg outlined a plan to combat potential interference with elections. It is a far cry from his initial outlook on facebooks role in the election after the november results. Here is what he said at that time. Idearsonally, i think the that fake news on facebook, which is a small amount of the content, influenced the election in any way i think is a pretty crazy idea. The lesson is reporting president obama reached out to zuckerberg around that time to make an appeal about the threat of fake news. We are joined by sarah frier who covers facebook for us. Very in depth story about what was going on behind the scenes. Evidence of some russian espionage as early as june of 2016 before the election but could not make sense of it and reported it to the f. B. I. What is your reaction to the story . In august, i had a conversation with the head of product for newsfeed. Seeing issuesere with fake news on the platform. But at that time, everyone thought Hillary Clinton was going to be elected. It was not reading alarm bells at the lovely did after the the same level as it did after the election. Conversation shows deeper than the naivete from facebook about how they could have impacted it. Emily do you think president obama had an influence on the response . I do not think it is just obama. There is a lot of criticism across the board. If cannot tell advertisers you use our ads, you can change mines and get more latino voters in this state. You cannot tell advertisers that on one hand and on the other ond say all the information our platform, there is no way it could have impacted the election. I think that statement zuckerberg made will haunt him over and over until this is solved. We did see a very different zuckerberg last week taking this much more seriously saying he does not want facebook to be used to subvert democracy. Very strong. Emily buzzfeed is out with a report steve bannon try to infiltrate facebooks hiring process. To what end . He wanted to figure out whether the hiring practices favored people with a liberal persuasion over a conservative persuasion. It goes to show how skeptical people are of facebook as it becomes so much more powerful over all of our lives. They have more than 2 billion users, more than half of the worlds internet connected population is on facebook. They have a profound impact on the way people share information. People have to be asking questions about it and coming up with their own theories about it like bannon is. Emily the heat is on for facebook. We will be watching to see how the russia investigation proceeds. Sarah frier, thank you so much. Coming up, ellen pao opens up about her public fight against sexism in silicon valley. We will hear about life after the court case and progress or lack thereof for women in tech. This is bloomberg. So we need tablets installed. With the menu app ready to roll. In 12 weeks. Yeah. The world of fast food is being changed by faster networks. Data, applications, customer experience. Which is why comcast business delivers Consistent Network Performance and speed across all your locations. Fast connections everywhere. Thats how you outmaneuver. Parenti in alisa washington and you are watching Bloomberg Technology. The tension and rhetoric between pyongyang and washington escalated further today with a direct threat on u. S. Warplanes by north koreas foreign minister. Since the u. S. Has made a declaration of war, we will have every right to make countermeasures, including the right to shoot down the united evens strategic bombers if they do not come into our airspace. Alisa he spoke days after fighter jets flew closest to the Demilitarized Zone for any plane this century in a deliberate show of force. The foreign minister says the yuan charter guarantees its right to selfdefense. A spokesman for rand paul says the senator remains opposed to the Graham Cassidy bill. Reduction inr grants to states for health care. Anthony weiner has been prisoned to 21 months in for sending obscene material to a 15yearold girl. He must report november 6 to begin serving. He will be subject to internet monitoring and must enroll in a sex offender treatment program. A u. S. Appeals court has on thely lifted a block bill targeting sanctuary cities. Sheriffs and politicians will not be arrested for opposing the ban. Global news 24 hours a day powered by more than 27 journalists and analysts in more than 120 countries. I am alisa parenti. This is bloomberg. It is just after 5 30 p. M. In washington. We are joined by paul allen in sydney with a look at the markets. Good morning. Paul we have futures higher by. 25 . The iron or price was off again, now hovering just above 650 per ton after sliding 4 in the past week on expectations china will reduce its steel output during the winter. In japan, nikkei futures traded out of chicago pretty flat. The Prime Minister has called a snap election. No date has been named. Much of the talk is focused on october 22. The bank of japan will release minutes today of the july meeting. Previously, they said low inflation means it is too early to discuss exiting the program. I am paul allen in sydney. More from Bloomberg Technology next. Emily this is Bloomberg Technology. I am emily chang. Ellen pao continues to make headlines. It has been five years since her trial against Kleiner Perkins became one of the most prominent cases of its kind in silicon valley. While she may have lost the suit, she helped kickstart the conversation about gender equality. Shes written a book about her experiences. I spoke with her earlier and asked what her goal is in rehashing all the details down. Take a listen. A big part of it was having so many women and men, to me and tell me how much my story had inspired them and how much it gave them comfort in the experiences they had. I wanted to give them all of the facts and the whole story to see if i could help other people through the writing of this book. And also to give this inspiring ending to what was a pretty terrible experience, that you can get through all of this and continue and have a career and move forward and also try to change tack and the business world. Emily you wrote in an oped that while a lot has not changed, people now a knowledge the problem of sexism in the industry. You think if you filed your seat today that the outcome agree different be different . I dont know we would be here if i had not filed suit. We changed the conversation. No longer are women forced to defend themselves. It is an easier experience for people to say i have been harassed or discriminated against. People believe it. If it had not been for all these women after me who shared her stories, i dont know we would be where we are today. I think someone filing today has a better shot. Emily we have seen so many allegations, Sexual Harassment stories at uber. Has any of this surprised you . Are you just not surprised at all . I think most people familiar with the highest levels of tech and Venture Capital have heard the stories. What has been surprising is so many people have come forward to talk about them. I think it started with a bunch of women who have come forward and inlast few years such a detailed and specific log post at her being accepted and not being taken down. It has opened the door for more people to come forward and change the conversation. Travis kalanick has designed resigned. What do you think went so wrong at uber . I dont know the details. I think what happens in companies is you get this culture and you want to be harddriving and break all the rules. That ends up not being limited to the business side. It goes into the personal side. It goes into your interactions with employees and peers and people who report to you. You dont think the rules apply so you do what you want and that ends up breaking down into a legal areas. Emily what responsibilities do havewhen vested in uber for letting the bro culture run wild . They have a responsibility. The problem is you have the fox guarding the hen house. You have people who do not clean hands trying to manage people and tell them you are not supposed to do these things when they are doing them yourselves themselves. As a board member, you have a huge responsibility to the employees, the other shareholders, to make sure the company is operating within the bounds of the law and building a culture that will help it be successful. That is diverse and inclusive because we know that generates better Financial Results and products. Emily you go into incredible detail about the boys Club Environment at Kleiner Perkins. Not just sexist jokes but racist jokes as well. If the culture is that broken, can it be fixed . I dont know if the Bigger Companies and older funds can be fixed. I know working through project include that there are a lot of c. E. O. s and founders committed to diversity and inclusion. They want to build companies that include everyone, that are tied to the community, tied to their customers, and that are going to build the best products. I have a lot of hope because i think the next generation of companies that are successful will have this commitment to diversity and inclusion and will be inclusive across all activities. Fundst know about these that have been around for a while and talked about lowering the bar in finding the next white male nerd. How do you change that attitude . Aily youre referencing comment mike morris of sequoia made to me a couple of years ago. Venture Capital Funds have one woman partner now. Do you think these maledominated firms are going to be surpassed if they still have the best returns and reputations . I know a lot of women and people of color who will not go meet with them because they do not think they will be treated fairly. If you look at the language, i am lowering the bar to bring in people from different groups, they do not think women or other groups are actually equal to the men they typically invest in. Do do you go and join how you let Something Like that invest in you and expect to get or that youcome would get with a different investor that believes you are capable and is likely to succeed as other people. Ily ellen pao, author of reset. Coming up, more of our conversation and what she has to say about her time as interim c. E. O. At readdddit. Tv er of the function on bloomberg. This is for bloomberg subscribers only. Check it out at tv. This is bloomberg. Emily the indian retailer is feeling the effects of amazon. Cheers rose over 20 after forging a deal with amazon. It will raise 28 million by sharing a 5 stake to amazon. First investment in a publicly traded retailer in india. It is expected to help the company tap part of the 400 million monthly visitors to and lines amazons online store. Back to my conversation with ellen pao. After she lost her case, she became interim c. E. O. Of rea ddit where she made bold moves to crack down on hate on the site. Eight, she was forced to resign. I asked what happened. This is what she had to say. I think we had a lot of change that had to happen. Came in a couple of years before i did and tried to transform the company. A small startup with mostly white men started by two white men and that culture was very as he camexclusion in, he brought in different people. All of the women kept getting pushed out. In 2013 andoining worked with him to push change together. This was a group that did not want [indiscernible] it was very locked into the product as it was and we were trying to reach more people and have more conversations. I think change was hard on the community and employees. It took a lot of effort to get to where we got at the end of it. Emily you made an effort to cut down on hate. You banned several of the most hateful reddits. There is some evidence to show it actually worked. There is a study that showed they have significantly cut down on hate. Do you think Online Harassment would be such a problem if more women had been involved in designing these systems in the first place . I think if more women of color were involved at higher levels it would be completely different. The people who get harassed the way the see all the system gets distorted into presenting a certain view and having that dominate the conversation, and if you cannot come out it from that minority, smallgroup perspective, it is hard to see everything going on. Emily how would it be different . How would twitter be different . How would read it be different . I think people would have invested more in tools, community management, would have had different rules, would have taken down more content faster, and band more people in a more consistent way. But it is hard when you do not put enough resources because the problem scales with the user base. If you are not putting in the frameworks and tools, it gets out of hand very quickly. Emily how much hope do you have for twitter . Get itster 10 years in, harassment problem under control . I dont know. I know they are trying and have made incremental improvements. I do believe it will take a lot of work to get rid of all of the harassment and make sure everybody feels comfortable participating on the platform. I think they should ban donald trump. I think that is a huge problem that he has this behavior counter to the terms of service and yet continues to be given this huge platform to dominate and encourage more of the same bad behavior. Emily you think twitter should ban donald trump . One of many people who believes that. It is not just me, and with good reason. Emily what is the reason . He is harassing of people. He threatens people on the platform and uses his influence to get people to address other people on the platform harass other people on the platform. Emily what about people who would say free speech . It is such a red herring. There are many reasons why people say free speech. It is an easy thing. Then you can say anything you want on the platform. When you allow free speech, it is people were dominant on the platform who can bully everyone else off. Everybody limits some speech on the platform. You ban spam. You ban certain types of harassment. People are not having complete free speech on the platform already. This is just driving the rules to protect people from getting harassed off the platform so you can have as many voices as possible. I think the purpose of free speech is to allow everyone to have a voice and have these conversations. If one group is pushing everybody else off, you can have this free speech platform but there are not many voices or opinions represented. Emily senator jackson is planning to introduce a bill that would explicitly prohibit harassment in the Venture Capital industry. What is your take on the bill . How optimistic are you legislation could solve the problem . I am hopeful. Else has notthing solved it so far. I think the shaming has started to help a little bit. People coming out and saying this is not acceptable. You cannot go on an airplane and experience people talking about prostitutes. That is not acceptable anymore. Now you know that so you should change your behavior. It is not changing quite yet. We need Something Else to help. Everything will help. I dont think that will be the one thing that prevents it because people think they are above the law so you need to keep pushing that Public Perception and telling the stories. I think the most impactful thing is all of these women telling their stories. Emily we saw that in your book. You dont mention his name. His name did come up in the trial. What else did you leave out . Im sure theres a lot you did not put in for various reasons. I wanted to be as fair as possible. With the c. E. O. , i did not know him that well. Maybe he had an off day or was goaded into doing something. I did not know so i did not want to have this one incident or when experience for five hours either way i portrayed him to the whole public. I think i tried to be fair. I tried to keep peoples families out of it. No collateral damage. You have people who are the protagonists in maine people i interacted with and held me back in holding a lot of other people back, and they were the people i wanted to focus on. Pao, author of reset. Fx networks is joining the paytv bund. The paytv service will offer programs without advertisements. To 4ll be available million customers. Fell mondayes losing nearly 5 , posting their worst day. Coming up, the latest on chinas online crackdown. This tuesday, janet yellen will deliver remarks in cleveland. Bloomberg tv will have full coverage starting at 12 45 p. M. Eastern time. This is bloomberg. Emily china has handed out fines for content relations. It gave the highest find to tencent for failing to supervise wechat as required by law. They gave baidu similar find after users posted ethnic hatred and other content. They did not give the amount of the fines. The troubles for chat services in china do not end there. Facebooks messaging service has largely been blocked. For is a huge setback facebook which has been trying to reenter the chinese market. Or some time that was the last remaining Facebook Service that was working in china. For more, i want to get to hong kong where Stephen Engle is standing by. What do you make of this . Inevitable iost would have to say having lived in china for so many years, including the entire Time Facebook has been blocked the re. You got to realize the Chinese Government is serious about blocking these services. Now it seems as though facebook is no longer available. I was there in july when the first crackdown started happening. I tried testing it by uploading photos or videos and it did not work. I tested it late yesterday when we started getting word it had been blocked. The actual messaging service. I sent numerous messages to my wife in beijing. She always replies wetter right away. She did not. I even said im about to spend lots of money. She would normally reply right back. She did not get it. I tested it. It is not working between the two of us. It is another step. Instagram, google blocked. Facebook, a number of them no longer working in china. Emily that is when you know for sure, when youre threatening to spend money. What do you think is behind this latest ban . Is it the same reason facebook was locked in 2008 and has not ince . Unblocked s where coming up to a politically sensitive time in china next month. They often slow these services down to a crawl if not an outright ban. Virtual private networks which a lot of people use to get around the great firewall of china are being blocked as well. You have the new cybersecurity next yearakes effect but is ari started to be implemented where vpns will be banned outright. Apple is taking steps to remove bpn apps from the apple store. A number of things have been taking place. Of september,eek a new band came down on wechat message groups. If you are an administrator, you are responsible for what those members post. Theres a lot of selfcensorship going on. This is what the authorities want to do in china, get people to self censor and also they can still monitor. It looks as though authorities have found a way to break the encryption. Wechat from tencent is not encrypted and is highly censored. Whatsappsgains from loss . What services might see a bump as a result of this . Wechat is the predominant messaging service of choice by the chinese because it is available and has not slowed down. Emily we have to leave it there. Thank you for joining us from hong kong. I really appreciate you stopping by. That does it for this edition of Bloomberg Technology. We will see you tomorrow. I will be live in new york. So new touch screens. And biometrics. In 574 branches. All done by. Yesterday. Banks arent just undergoing a face lift. Theyre undergoing a transformation. A data fueled, security driven shift in applications and customer experience. Which is why comcast business delivers Consistent Network Performance and speed across all your locations. Hello, mr. Deets. Every Branch Running like headquarters. Thats how you outmaneuver. From our studios in new york city, this is charlie rose. Charlie we begin this week in washington. President donald trump and Republican Senate leaders are engaged in a search for votes in a lastditch effort to repeal and replace obamacare. Senate leader Mitch Mcconnell has announced he will bring the Graham Cassidy bill up for a vote for next friday before next friday, perhaps on wednesday. Joining me is mike allen. Let me begin with what we just heard this friday afternoon, that john mccain has announced he will vote no. What are the at