Transition to publicly traded company. Life after an ipo with shares down and the strategy for fending off growing competition. First to our lead. Apple uttered in a new era for the iphone tuesday. E of new unveiled a suit products with the iphone x grabbing headlines. The most advanced iphone weve ever made, the incredible new design. True depth camera system and more powerful Camera Technology than weve ever put in an iphone before. It really is the future of the smartphone. They roll out a tv set top box. We spoke with bloomberg technologys mark gurman to get their first impression. Is a nice phone. Im sad that it doesnt go on sale until november as it as a fan of the product. That mrs. A whole term of sales. It will be interesting to see. It is nice. Emily it is light and small. Especially if been carrying a iphone 7 plus. What struck me was the height of the screen. You dont have to scroll so much and the facial recognition technology. It is quick and putting in five fingerprints. I feel like i was the first person outside of apple to enroll my face in phase id. The quick setup process works well. If you have an app on your phone it will convert to a face id app. The integrated well. Your im curious from perspective looking at the big picture, how big of an upgrade cycle do you see this will actually be given that 80 re have an iphone. The biggest change was not having a phone to having a phone. I think it is a big upgrade cycle they are facing and one of the things that apple is found is that when people when they upgrade from an iphone to another iphone, it is a system in which they tend to stay. Leave anden people Android Device they will switch to an iphone. Over time they grow that larger margin. The time between buying phones as they go on longer and longer would should just the upgrade cycle could be a big one for apple. The question is we could sit here and speculate, but the wenswerable question, will as consumers feel the need to get this device. These bells and whistles, they are in an obvious way not with the experience with your phone, but the experience with looking at your neighbor using the phone is the thing that going to help them sell this. The facial recognition stuff might be more pleasurable to transfer the user, but its something the person who is yet to upgrade is going to see and they will respond by getting a new phone. Emily it is a new phone factor. New design and several analysts and suggested to me that it might discourage people from buying the iphone 8, why would you buy it if you can spend a little more and get the most expensive phone. I was speaking to jean at the event and he said nevertheless it will be a home run. What do you think . The 10 will be a home run. I dont know why anyone would buy the eight. The thing i was surprised about they raise the price. It is now 700. Now youre about 300 between the eighth and the 10. You look at that in terms of dollars per month. Or six probably five more dollars a month. I dont see why people would not get the 10 if youre on a smaller plan. Why is is not coming out to november 3 . Be in theould there store . Maybe for five of them. They have more capacity, they filled up. Think they are saving up for a big november 3 launch and try to have as many of these phones as possible. Emily it will be available more on the third than the typical first day. Multiple countries per wave, its a big expansion of the iphone. Emily i want to talk about the apple watch. They emphasize the health. Eatures of the apple watch they introduced with a surfer wearing the watch while riding a wave and getting a call on the watch. Obviously i know you are obsessed with the trackers, apple said today this is most popular watch in the world. What is your take on just how much bigger of a category the watch can be for apple . I dont know what people are going to do for business plan. They threw bunch of things out there to see what would stick. Dr. Oz was there when they announced the watch and when we got to cover the event. They have always thought health was going to be a part of it. What they figured out was they had a lot of success with the product again focus on fitness. It seems that apple has figured out as much as they thought fashion would be a part of the watch, the fitness is the thing. Certainly showing off the waterproofing capabilities that other devices dont have in a ,ery big way, be it paneling im all for the paddle diva. But also everything else. Emily apparently it works, thats what they say. Lets talk about the apple tv that they unboxed. They demoed the four k capacity. It is impressive, but not if you dont have a four k. This was a big shock to me. If you have 1080 p video in your library, they will conferred k videowo free to the 4 format. Thats not what im at and they would do. Typically if its a different quality they would charge more for the higherend. We are upgrading them and them when you buy new they will charge the same price as they did. Its a great thing. Emily cory johnson and mark gurman there. The rush into the demo room right after the Keynote Presentation got his hands on the new iphone x. We do have one more thing. [applause] we are here at the steve jobs theater at the new apple park campus. This is the new iphone x. You can see it has the screen, up there little notch for the face recognition center. Stainless steel edges. This thing looks really nice. The screen makes other colors pop out. You can see the time. You can flip the status bar. Bottom charger and this has Wireless Charging on the back as well. The screen is 5. 8 inches, so it is bigger than the iphone 7 and the iphone 8. Overall this feels like the size of an iphone seven or eight. I know people have been asking about the side button. It is longer and you can hold it down to activate siri. Doubleclick for apple pay. To go home you swipe it from the , bottom and you can go invoke multitasking from there and swipe between different apps. You can see so many more texts at once and it is great for video. This goes on sale november 3 after preorders at the end of october starting at 999. There is also a 256 gigabytes version as well. Emily mark their giving as a first look at the new iphone x. Coming up, President Trump has blocked a Chinese Investor from buying a chipmaker on security concerns. We will discuss what it means for relations between the countries. We speak exclusively with blue apron ceo matt salisbury. Ipothoughts on life post and their strategies were fending off the competition. This is bloomberg. Emily social media is now a redhot focus of Robert Muellers investigation into the 2016 election and possible links to President Trumps associates. That is according to u. S. Officials. The team of prosecutors and fbi agents is zeroing in on how russia spread fake and damaging information through social media. His team is seeking additional evidence from facebook and twitter about what happened. Last week it was discovered that facebook had discovered money connected to fake ads. Fake accounts likely run from russia. Has blocked ap chinese backed investor from buying oregonbased semiconductor, just the fourth time in a quartercentury where a u. S. President has halted a foreign takeover of an American Firm because of a National Security risk. These burned buyer is a privately equity firm backed by a Chinese State owned asset manager. Our editor at large, cory johnson, spoke to ian king about this story. A very small company. A billion and a half dollars is nothing in a market like this. They make programmable types. Programmable logic. They can use these whether its an automaker refrigerator maker and they dont have to design the whole chip, they can make it do certain stuff for them. They have been used when you design another chip because you map it out. We know it works. You can use this because it has a lot of optionality. Then you specify the chip once you have done that. You can change its function after its been locked out. This doesnt seem like, it is complex. It doesnt seem like really complex technology. No. This is obviously not a large company. The product itself could be used in various ways, useful to the military and so forth but that is not what we are talking about here. What we are talking about is a broadening of the purview of a change in policy from washington and a hardening of the stance from washington toward china. If if french backed Venture Capital firms, might not face the same sort of pressure . Yeah. The technology in and of itself, is there a suggestion that there could be an embedded ability to monitor the use of these chips, if they Chinese Government controlled company can see what is happening with these . There is an element of that. They are often used in networking equipment. A lot of it based the stations are on phone networks and they control various functions. I want to stress, quite clearly, security is the stated reason. Whether we look at these things fundamentally, the u. S. Semiconductor industry, the u. S. Government does not want china coming in and taking those key capabilities away from it. Who else competes in the area . Intel. Zylinx. The business was a lot more focused on networking and was bigger. They divide the market up between them. Is there a notion this seemed to be a suggestion it was being used in a lot more stuff that he used to be and it might continue. An fpda was an accelerator to another chip. The argument has been they have a specific use, even more narrowly confined to the design of other chips. The suggestion was they would spread and get into data centers. Microsoft is using them in data centers now. That is happening but not quickly. It is how the chips can be used. A broader point is, were seeing the chip industry consolidate massively over the last several years. We are down to 60 market share for the top 10 companies. The market is shrunk like mad. China needs to get into the industry, it doesnt have anyone in the top 10. It is the largest market for semiconductors. It will throw a lot of money to buying its way into the domesticating industry. With things like weve seen today, how will they do that. It seems that it would also limit the ability of all the other Semiconductor Companies to get higher prices in the market with the notion there might be a chinese bidder . That is exactly it. If youre a company like them, what do you do . Everyone else is getting together. You havent been bought and you cant by anyone else. It doesnt make sense. Where do you go . One haven was supposedly all this money china had said it was going to spend, that will be the rainy day fund. Not looking like it will happen. Emily our editor at large with ian king. Coming up, why we may see self driving trucks on the road before taxis. We will hear from the ceo of waymo next. Emily this week a u. S. Appeals court cleared the way for waymos lawsuit against uber. The car developer claims ubers stole trade secrets for his self driving car. The judge declined to send the suit to arbitration. The case centers around the allegations that engineer Anthony Levandowski took thousands of proprietary files from waymo to uber. Waymo will get access to a key piece of evidence. A report that aims to scrub anthony from any proprietary information and examining the forisition of his company 680 million. Cory johnson spoke with Eric Newcomer who covers all things google. And influential engineered google, waymo, leaves, starts the self driving Company Called auto. All of a sudden, self driving trucks . What is that about . There is a whole message around monetize wellbeing sooner. Uber buys them a year after he left. They buy the Auto Trucking company . A small team. They are not pursuing that at all. They just want to go back to automated. Ubers focus is self driving cars and they put him in charge of their self driving car effort. Waymo digs around to see if any of their trade secrets have gone with him. That is the basis. Uber wants arbitration because why . They dont want it in public. There are embarrassing details that, out. The arbitration claims says it looks like a stretch and they lost. They were basically saying, waymo should be bound by its agreement to arbitrate things with Anthony Levandowski even though they are only suing uber. They are trying to take the arbitration clause that they had with anthony and say that applies to us. Exactly. So now the trial happens . We will get some discovery. The trial in october seems real soon. The key other ruling here, uber suspected there would be issues. They did this diligence and had a cyber Forensic Firm look into everything lewandowski had. That report has been tightly capped and they have refused to give it up and didnt mention it. Finally a judge has said you need to hand that over to waymo. It will be interesting to see what that firm said because we have been not been able to turn up the 14,000 files. That was the explosive claimant claim at the beginning of the suit. There were these files that uber had and so far waymo has not been able to say, there they are on ubers computer. Emily sticking with waymo, the ceo was on stage at the bloomberg sooner than you think conference. He spoke with bloomberg Senior Executive about when we will get self driving cars on the road. The answer is literally the name of this conference. It is sooner than you think. We have been working on this at google and now at waymo for over eight years. We have driven well over 3 million miles. We have started to talk about the simulation models we are miles we are driving now which are more important. Last year alone, 2. 5 billion miles in simulation. We are to the point now with the where the technology is feeling mature and ready, which is why we are spending a lot of time in phoenix and mountain view. There is something in phoenix called the Early Rider Program where we have families driving around in our cars and we are beginning to understand how real people would like to use this technology. That is the last part for us. Understanding that as we continue to refine the technology before we are ready to deploy. Yesterday was interesting in terms of regulatory framework. Elaine cho put out a vision strategy statement, which some consumer groups criticized for taking a hands off approach. Allowing manufacturers to test the Driverless Cars on highway. The same day, highway regulators , pointing more active to the tragic crash of a man last year and a tesla. Where do you see the regulatory mind . What are your concerns about taking this tech forward safely . If you look at what the administration has done in the last couple weeks, it is encouraging for this technology. We are in the early stages. We really havent served our first users yet. It makes sense that we are careful and flexible so we dont unnecessarily or inadvertently squelch innovation. How many things of the house of what we have seen in the house. How many things of the house of have the house of representatives united behind recently other than self driving cars . Which passed a bill recently which having to supportive and in line with what we saw. I think that is great. It bears reminding, there is a difference between the problem we are trying to solve which is fully self driving and removing the human from the car and letting our technology do the whole driving task. The different problem that is trying to be solved today is Driver Assist technology. There is a difference between those things. That that is what the ntsb was ruling on. Our drivers getting too comfortable these technologies . It is the fundamental conundrum we face in this space. We learned it at google prying prior to becoming waymo in 2012, we had a pilot experiment where we put employees in cars for highway use. We told these smart googlers, they had to be very attentive, we would be watching them and if they did not behave we were going to take this free car away from them. We ended up having to stop that pilot experiment after a couple months, because those google employees couldnt stop taking their eyes off the road. They very quickly came to trust the technology too much. That is the fundamental conundrum. If at some point the car needs to ask the human to pay attention, the human has fallen asleep, got distracted, that could be a big problem. Emily waymo ceo speaking with brad stone. Equifax is still reeling from a massive data breach. It may have impacted anyone in the u. S. With a credit card. Can their insurance policy come close to covering the damages and what are they doing to stop the bleeding . All episodes of bloomberg tech are Live Streaming on twitter. 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. Emily welcome back to best of bloomberg technology. Im emily chang. The massive equifax data breach could be ranked as one of the largest in history. The hack may have hit 143 million customers. And a Class Action Lawsuit is demanding up to 70 billion in damages. While the company carries an insurance policy for this, it reportedly only covers 100 million to 159 million. We spoke to the chief Information Security officer at fortune net about the hack. I think what it means is the doing its Due Diligence to figure out what happened, what the extent of the breach would be and what they need to do to address the victims of the breach to include probably cooperating with local Law Enforcement to get to the bottom of it. Emily in europe there are laws against not reporting things like this faster. I believe you are required to report data breaches within 72 hours. Wouldnt that make more sense . So that the hackers dont get a head start . Phil what you are talking about is the European Regulation called gdpr, designed to bake in privacy protections fo