Fatalities included haiti and the dominican republic. Maria is heading for the bahamas. Im jessica summers. This is bloomberg. Bloomberg technology is next. I am emily chang and this is bloomberg technology. New plan, asking the board to draw the proposal to create a new class of shares. A rare victory for outside investors in the battle for control of the Worlds Largest media company. What this means for shareholders, next. Londonels of ubers operation could completely fall off. We will map the road ahead and impact without the pool of 3. 5 million customers. Apples latest in a region of hardware hits markets. Facebook has scrapped plans to create a new class of shares. It is a rare victory for outside investors in a battle for control of the Worlds Largest social media company. This comes days before the c. E. O. Wasa giants due to testify. Said he would sell up to 75 million of his own shares over the next 18 months. That would total up to 7 billion. The facebook c. E. O. Said the business has performed well in the value of our stock has grown so i can fully fund our philanthropy and control control for 20 years or more. Discuss, ourw to guest host for the hour, David Kirkpatrick. And sarah frier who covers all things facebook. Astounding development. What is your reaction . It is a funny conclusion because this has been such an embarrassing case for facebook. Bloomberg reported in december on some behindthescenes between Mark Zuckerberg and marc andreessen. This is coming at the wrong time. Facebook is in the crosshairs politically right now. It is not the right time for zuckerberg to go on the stand to defend ultimate control of the company. Good thing he is rich enough it does not matter. That is basically what he is saying in the statement. He is rich enough this is not even a thing he has to worry about. Emily david, what is your take . We have been talking about founder control and how much is too much. What is your take on facebook and zuckerbergs ultimate decision . David sarah called it exactly right the timing was fantastic for shareholders and terrible for zuckerberg. If he had gone on the stand and been interrogated by an attorney who is very aggressive, it would have been a p. R. Disaster almost without question because of the issues flying around right now. And the fact that realistically, quite a few of them could be tied to this case. If the issue is governance of facebook and it is clearly not going well at the moment, the argument for his longterm control is not that strong. It is alsor hand, super lucky for him the stock has gone up so much. It is a bizarre time for this company. The pace at which the frying pans have been flying at his head recently is astonishing. Emily he said he will be able to retain control for 20 years or more. What happens in 20 years . I think he might tried again than. So much can change. The thing we have learned about Mark Zuckerberg this year is this person is so dynamic. He is changing all the time. He is adapting to new situations. Me,ne of his managers told he wakes up every day with amnesia and reevaluates all the things going on. That is a really good thing to have been a leader. Emily david, talking about the situation. Mark zuckerberg did a Facebook Live yesterday. He said facebook was turning over more information to congress for congress to decide how much they revealed to the public. He said they would revamp how political ads are displayed on facebook. Ter this, president tweeted the russia hoax continues. What do you make of this situation that facebook and Mark Zuckerberg now find themselves in . David again, i am agreeing with sarah. Is an extraordinary agile thinker and a very idealistic leader who nonetheless finds himself in an incredibly difficult situation which is somewhat of his own making. That Facebook Live you did yesterday and the amazing litany of things he promised to do was a turn. He continues to change and say im am going to take this more seriously. He started a year ago at my conference a year ago saying it was a crazy idea to think they meddled in the election. Now he is not only turning over all the ads to congress that really acknowledging it is not just in the u. S. It is in a range of other countries. They have to start monitoring the nature of political advertising in every democratic country around the world, which is going to be expensive. The one thing i think is worth noting is i think they are going to have to do so much in response to all of these concerns it is going to start cutting into their profits. They have had astonishing affability because they have not needed all the money. They are going to start having to spend enormous amounts to stay ahead of this panoply of issues about free speech on facebook. I dont know that is going to be the thing to cut into their profits. It is expensive to deal with. There are other factors that might have a larger impact like spending so much on video content for their new video watch product. That is going to lower their margins. Sharing ad revenue with publishers. I think those are the more boring aspects of facebooks business right now because they have all of this political turmoil. Lets not forget this company has done extremely well and reaches more than half the worlds internet connected population. There may be some macro trends that will affect them more than these political trends. Emily david . David do you think that means there astonishing profitability will get affected one way or the other . I think definitely. I also think this Company Continues to be profitable. They figured out how to monetize mobile ads. Now they have so many irons in the fire. They have virtual reality, artificial intelligence, all of these things they have not monetized their full extent. Company has been pretty predictable from a business standpoint the last few years. I think the next big years are full of question marks on the geopolitical scale but also in terms of the Business Model and how it evolves. Emily david, last question for you. You mentioned sarahs interview with Mark Zuckerberg this week where they talked about whether he is running for office. He says he is not. Do you think he will . David i do not think he will. I say he cannot until he starts to fix some of these problems. Fixing them is almost impossible. If he were to run for political office, and the same is true for sheryl sandberg, it would draw attention to the reality that if facebook chose to, it could effectively determine the outcome based on the control of the information flow for such a huge percentage of the electorate. That is not something he or she would want attention to be drawn to the degree it would if they were to run. Therefore, i dont think he can run. Emily David Kirkpatrick, you are sticking with me. Sarah frier, thanks for stopping by. Coming up, a major blow for uber. How the company is responding to having its license revoked in london. What it means for competitors. Bloomberg technology is Live Streaming on twitter. Check us out on weekdays. This is bloomberg. Emily now to a story we have been covering all day on bloomberg. London is sliming the brakes on uber. The right toking operate. The impact could be huge. 40,000 drivers in the british capital. Dara khosrowshahi says i have learned that change comes from suffer flexion. The truth is there is a high cost to a bad reputation. Here to wrap up the news and what it means to the worlds the valuable startup, c. E. O. Of a nonprofit that focuses on accelerating growth of the Tech Industry in the region. He joins us from london. In san francisco, we have eric newcomer. Still with us, David Kirkpatrick, c. E. O. Up techonomy. Eric, you got the memo from Dara Khosrowshahi. What more did he say . Sort of a back and forth. The head of the region sent an email saying everything uber was doing. Wanted to respond that there is a level of culpability even if we think we did the right thing. We need to deal with our reputation. It is a very different message you would have heard under than what you would have heard under travis kalanick. Emily how devastating of a blow is this . If they have to leave the streets of london, it is terrible. It is one of their best cities in the world. There is a question whether they really have to leave. They are appealing the decision. If they had to, it would be terrible for the company. Emily what is the Immediate Impact of and reaction to this news in london . Right now, we are seeing a petition being signed by hundreds of thousands of people. I think it has reached about 350,000 signing the petition online. They are clearly appealing. While the appeal, uber will continue to operate in london. 3. 5 Million People use the app so you can imagine the appetite is very high. This is not about the technology. This is not about the technology or innovation. This is about the conduct of the company in certain areas like records,obtain medical how they report offensive crimes. That is what is really interesting. It is unfortunate it had to come to this point. I would have hoped they would have resolved this. As i said, uber will continue to operate as it appeals the decision immediately. Emily david, this may be the most significant consequence of ubers high risk behavior. What is your read . David i have to congratulate eric on getting the memo. It is refreshing to hear an uber c. E. O. Talking so candidly and realistically about the nature of business. We have not heard that kind of talk from uber before. They seem to think business is Something Different from what the rest of us think. A bloomberg columnist talked about the pirate culture of uber , which is what they have had. If this pushes them in the direction of turning more toward a more reasonable culture, that would be beneficial for the company longterm. They have a lot of things skeletons in her closet yet to emerge. I think some of them are going to be awful. There are things reported only beginning to be researched and investigated by governments like whichformation revealed is what would be, if proven, illegal corporate espionage against lyft in the united states. If that were to be proven, governments all over the world will start thinking this way and ubers reputation will be hard further. At least with the new c. E. O. , they are talking starting to talk the way a reasonable, longterm company ought to think. Emily how many more skeletons does uber in its closet . There are three department of justice probes. China, malaysia, indonesia, south korea. There is a global look at whether they bribed officials and any of those countries. I think theres a lot we will learn that im still digging into. I think it will take some time for Dara Khosrowshahi to put the old Company Behind him. I think to some degree it will have to be that was the old uber. But how much they are embracing the old uber will play a part. Emily we are looking at the timeline of ubers difficulties. They have had runins with governments in all of these places. What is the impact across the region of these choices uber has decided to make over the years . I think london was one of the first cities in the world outside the u. S. To adopt the technology. It reached a point where 3. 5 billion people are using the app, so it has been very well received. It is a great application. Theres a lot of competition. The black caps have introduced credit card systems into their cars finally. That has been a positive move. I think you will see a lot of grumpy customers if it is totally wiped out. I hope that will not be the case. As my colleagues are saying just now, lets hope uber will appeal this and will continue to operate. I just hope they will come to some sort of conclusion which will enable uber to continue operating. Emily you mentioned the black cabs. How much of a dent has uber made in the historic london black cap business . I think they felt the impact. There have been many protests in the streets. Nothing violent. They have been been on the streets a number of times. London has been trying to work this out. It was one of the first open mobility institutions in the world to open up its data sets to allow App Developers to develop services on the back of the data being opened up. They are very forwardlooking when it comes to technology. As we have been talking about, they are questioning the conduct of the company in connection with two or three things. And transportber for london will resolve this over time and we will continue seeing uber on london streets. Emily what is the appeals process . How long could it take . It is not exactly clear. It will take time for it to play out and see. The mayors response has been very interesting. Emily the mayor supported transport of london . As soon as it came out. The political ramifications will be super interesting. I think uber will emphasize they have this immigrant base of drivers, a sympathetic base. There are larger issues at play in london about the class of the black car driver versus the immigrant class of the uber driver. Playing up that debate could be to ubers advantage in terms of saying we have people who need this job working for us. Emily david, final thought . David if i were lyft, i would be working hard to launch to have those drivers work for me. That company has a much better reputation. Emily David Kirkpatrick, you are sticking with me. Eric newcomer, thank you. Gerard, thank you for joining us on this evening in london. Coming up later in the show, amazon delivery is not just for groceries. Giant was toe bring you food from your favorite restaurants. This is bloomberg. Emily some headlines grabbing our attention. According to people familiar with the matter, hewlettpackard will in a money eliminate about 10 of its staff as part of the effort to reduce costs in the face of tougher competition. Walmarts online merchant has thrown the First Official blow as the holiday price war gets off to an early start. Cashback onng 5 early orders. Shoppers can earn up to 50 that can be redeemed on the site. Sales for the upcoming Holiday Season are expected to surpass 1 trillion. High since the announcement of a deal with google with shares soaring as much as 10 . The smartphone maker is now rated as a buy by five analysts. People were lining up to get their hands on the new iphone 8. Will lukewarm reviews impact overall sales . We will discuss. If you like bloomberg news, check us out on the radio. Feature i would like to bring to your attention. Our interactive tv function. You can find it at tv on the bloomberg. You can send our produces a message, play with the charts we bring you on air. This is for bloomberg subscribers only. Check it out at tv. This is bloomberg. Mark i am Mark Crumpton in new york. You are watching bloomberg technology. The u. S. Federal government reportedly told Election Officials in 21 states hackers targeted their systems last year according to the Associated Press which also reports in most cases the systems were not reached. Many of the states had been unaware until notified friday by the department of homeland security. Mexican authorities have raised the death toll from tuesdays earthquake to 293. Are confirmed dead in mexico city. John mccain said he will vote against the Obamacare Repeal proposal. He becomes the second republican along with rand paul to oppose the measure. Thendergarten fight is how russian minister describes the world words between President Trump and kim jongun. He says the world should take a reasonable and not emotional approach toward north korea. The International AtomicEnergy Agency has officially adopted a resolution condemning north koreas pursuit of Nuclear Weapons. The draft was agreed on by the u. S. , russia, and china before it was presented conference delegates. Today, this conference reiterates its firm stance possession ofrks Nuclear Weapons and underscores the dprk should not harbor any illusion its illicit pursuit of Nuclear Weapons will ever achieve legitimacy in the eyes of the international community. Mark the ambassador also called for enhanced pressure on pyongyang. Iran state tv has aired footage reportedly showing a mediumrange Ballistic Missile being fired. Tehran has not mentioned the time or location of the test. It is a direct challenge to President Trump who signed a bill imposing mandatory penalties on entities involved in irans Missile Program and individuals who do business with them. British Prime Minister theresa may has laid out the plan for a twoyear brexit transition. May said neither the u. K. Or e. U. Would be completely ready to implement all the arrangements for brexit when the u. K. Formally leaves in march of 2019. If we get the spirit of the partnership right, at the end of the process we will find we are able to resolve the issues where we disagree respectfully and quickly. Mark Prime Minister may promised the u. K. With live up to its budget commitments as long as it is in the European Union. Global news 24 hours a day powered by more than 2700 journalists and analysts in over 120 countries. I am Mark Crumpton. This is bloomberg. Emily it is a big day for apple. Lus iphone 8 and 8 p available in stores around the world. So far, we have heard reviews for the new gadgets have been lackluster including everything from the design to price point compared to rival models. We are joined by alex webb and David Kirkpatrick is still with us. How di