Creed, and that bullying and prejudice in our public life set a national tone. Global news 24 hours a day powered by more than 2600 journalists and analysts in over 120 countries. I am alisa parenti. This is bloomberg, and Bloomberg Technology is next. Emily i am emily chang, and this is Bloomberg Technology. Gets 1 billion in its war chest and a funding round with alphabet leading the charge. Whether google parent is riding shotgun in the start of race against uber. Says that apple slashes orders for the iphone 8 by half. We put the strategy of logic 2 smartphones weeks apart under the microscope. And the Company Continues to face a series of political and public setbacks. How the ceos multitasking skills are being tested. Gets investment of 11 billion and it comes from its biggest rival. Alphabets g unit is leading the investment. Google ventures made a big investment in uber years back. Waymo is embroiled in a bitter lawsuit with uber. Joining us is our guest was for the hour, bob mcdonnell, president of Technalysis Research. Thateported months ago this was possible are now it is official. What does this mean . It is amazing, the aboutface on alphabet. They invested in uber back in ck15 went uber was doing bla cars. They were way ahead of things. The relationship has totally deteriorated. Amazing. Emily they also have a stake in ubers success. If there were a massive exit from alphabet would benefit greatly. You can see both sides of it. Clearly the industry is growing and why not have stakes in both . On the other hand, it is kind of a zerosum game. There traditionally used the money to spend on subsidies against each other. It is like taking money out of your pocket and lighting in on fire because they keep using it to gain market share. Emily bob, is that fair . Is. Im not sure that it i may disagree with eric on this one. It is still not ubiquitous. Many market grows when there are strong competitors. 2 Strong Companies helps raise all boats, i would argue. Certainly there is a lot of that that is going on. But i think the opportunity to drive more strength across and make it more completely ubiquitous remember, we were in the bubble here. Outside the bubble, there are people who have not tried it yet. That is where the Growth Opportunities are. Lyft takes some of that money and goes international, thats interesting question as well. Emily i interviewed to gm president earlier this week and a gm made a Huge Investment in lyft just a year ago. Now they are partnering with uber. Take a listen to what he had to say when i asked if you would ever consider buying lyft for deepening the partnership with lyft. A lot of options in terms of how we go to market. We can go to market for our own network capability, go to market for different partnerships. All options are open at this time. Emily so, eric, no loyalty. What do you read into that . Eric especially with self driving cars, nobody knows who is going to win, nobody knows what strengths they are going to bring to the table exactly. Everybody wants a bit of everything. Alphabet is not putting all their chips in with lyft. They have thoroughly self driving car platform and are free to partner with other people. Lyft partnered with ford and, obviously, gm. They have a lot of relationships of their own. There is a lot of crust and nominated a lot of cross pollinating. Emily what progress we have on lyft in the market . Have they gained relative to uber as uber has been struggling . Eric they are definitely gained market share in the u. S. We dont have exact numbers. You sort of lie on thirdparty data collectors. They have gained. How much, we need to see. Emily bob, it is perfectly feasible that there could be 2 big players. Bob absolutely. Eric is right on autonomous driving. It is really early days. Nobody knows where this is going to go. Having said that, the concern i have is the longterm play for both these guys is, you know what, eventually it will all be autonomous. If this takes longer than people think, and i think it will, and all of a sudden you have given people employment for seven, eight, 9, 10 years, it will be harder to start that back away. Ironically, i think there will be big challenges down the road as people take the ultimate step in this business model. Emily what is the latest in the uberwaymo lawsuit . Eric set to go to court in december, continuing there was this huge bit of data from this report were basically uber identified information taken from waymo, and that happened very late in the game to disclose to alphabet. They are seeing if that gives them new evidence for preparing for court in december. Emily eric newcomer, who covers uber and lyft for us, thank you. Bob mcdonnell, you are staying with me. The unlimited data plans verizon once shunned are helping the phone giant buy time for its new move. The largest u. S. Wireless providers saw a surge in subscribers for the second straight quarter. It gives verizon more breathing room to create new sources of revenue in media, advertising, or connected cars, as it struggles to maintain market share in a price war. Relieved investors sent the chairs of the most since july. Coming up, shares of apple drop on signs that iphone 8 demand are not as strong as expected. What is fueling the apple anxiety. Bloomberg technology is like streaming on twitter. 5 00 p. M. In new york, 2 00 p. M. In san francisco. This is bloomberg. The dow and s p 500 extended record highs on thursday, but it was by the slimmest of margins as the session started in selloff mode. A constant drag on major averages was apple, down the most in two months. Joining us to explain why, abigail doolittle. This has to do with the report of apple cutting orders to some suppliers. Abigail indeed it did, emily. There was a report out in taiwan that apple had cut orders for the iphone 8 relative to its chip supplies could that sent shares of not just apple lower, but the supplies. It has to do with why u. S. Major averages were sharply lower, especially earlier in the session, relative to those cuts. It sounds as though it is modelspecific, because some of the reports that come out of the asian papers are not necessarily written in stone. I spoke to one analyst earlier would do he said he followup work to figure out whether this is true, but if it is, it is one of the Production Cuts that typically comes in november or december. This would be the first Production Cut in october since the iphone 5c. It could be a bearish signal, but it sounds like a model cut, and even the iphone 6, because the pricing relative to the iphone 8 is better. Everyone is waiting for iphone x, so we could have consumers holding off for that and going to the cheaper models. The iphone 8 seems like it is getting a bit squeezed. Emily abigail, there is little question that theres a lot of pressure on iphone x to perform well, but what are the risks . Abigail the biggest risk is what if it turns out to be a dud . Everyone assumes it will be great and people will love it and will spend thousands of dollars, but if it is not as great as expected, it could cause the average selling prices to go down, too. Apple has complete inelasticity relative to pricing they dont budge. But if the phone isnt selling, that could turn out to be a risk. Another risk, china. If we hop in the terminal and look at what is happening in the financials, on the left side we see the revenue segments americas, asia pacific, europe, and so forth. Lets hone in on china. We see that between 2013 Revenue Growth out of china was very, very big, but more recently over the last few quarters, it has been declining, and right now the reports are that the demand out of china is really pretty weak. That could be a worry. However, in china, the iphone is a status symbol, so most consumers are probably waiting. Or the iphone x nonetheless, this could be a point of worry. The stock, apple, still up more than 30 . However, in an odd way, that in itself could be a bit of a risk. It tells us that analysts and strategists have High Expectations for the iphone x, as to whether or not it will be super psycho everyone will be looking for. Time will tell, but today was a bit of a rocky day for apple and the apples of players. Emily bloombergs abigail doolittle, thanks for weighing in. For more context on apple and supply chains, still with us, bob mcdonnell, president of Technalysis Research, and our guest for the hour. This is a report that came out of the taiwanese Economic Daily news. How reliable is a report like this . Bob coming out of taiwan, rumors abound. Having looked at that market for years and years and years, things pop up. Generally speaking, you get a good sense of some of the things that happened in the supply chain through taiwan. Emily is it conceivable to you that they could have cut orders by more than 50 . Bob the absolute 50 number doesnt strike me as kind of high. Did they cut orders by a good amount . My guess is it could be true. If you recall, at the apple event this is something we talked about i had concern about the fact that you had a phone that a lot of people felt, the iphone 8, was very similar to the seven and six, and the x was more interesting, more exciting, yet was going to be delayed. I recall them about this for usa today saying, hey, is the iphone 8 going to suffer . It looks like that is executive what is playing out. Emily abigail used to work that ive never heard associated with the iphone, that it could be a dud. Bob i will disagree with abigail on that one. Sure it will do great. The question is supply. In november. Out if there are supplychain hiccups, all the people hoping for the iphone x under the Christmas Tree may not get it. That changes the dynamic. We could ironically see with the 7 that even6 and though apple introduced highpriced phones, the asp goes down. That seems counterintuitive, but if you do some math, the iphone 8 is in selling and not enough can get the x, that is what could happen, it is not inconceivable. Emily have you heard about supplychain issues around the iphone x . There is concern that there will not be enough to meet demand. There wont be. Im sure demand will completely outstrip the supply, and again, that is my concern as well. There are a lot of people who will not make it for holiday purchases. Q4 numbersmpact for sure. And the whole question of the super cycle gets delayed into 2018 if not later. Emily and then does this all smooth out the middle of next year . Bob i think it does. It is apple, it is the iphone. It is still an iconic thing. People will buy it. It will do well, no question, but it gets delayed. The one question is china. You havetronger these brands that are getting much stronger in china, and the differentiation between apple and all these other guys is getting smaller and smaller and smaller. Lets not forget samsung. They are doing very well right now. Emily bob odonnell, founder of technalysis, you are sticking with me. Coming up, strong showing in its public debut. How the ceo plans to stave off amazon and oracle, next. If you like bloomberg news, check us out on the radio. This in on the Bloomberg Radio app, bloomberg. Com, and on the radio on sirius xm. This is bloomberg. Emily paypal posted strong earnings for the third quarter, driven by a surgeon payments volume and growth on its mobile platform. Shares are up nearly 5 in late daytrading could it top forecasted revenue it topped forecast revenue. Shares of paypal have already soared more than 70 this year. Mongodb has markets trading debut. The Database Software maker rose in early trading after pricing above the marketed range. The ipo comes in what could be the biggest month of the year for u. S. Listings. After a slow summer, he joins 20 companies that are priced or are scheduled to price in october. Alex barinka caught up with mongodb president and ceo dev ittycheria and started by asking how the company will use the new capital. It is all working capital. We have no plans to make acquisitions today. We are going after a large market, one of the largest in enterprise software. We are using the proceeds to invest in products and continue to innovate and produce new products as well as expand our existing portfolio of products, as well as invest and go to market in as many parts of the world that we dont have salespeople and. Even in the u. S. Can we dont have salespeople in every nfl city. We are looking to expand our reach and reach more customers more efficiently. Alex who are you targeting as you go for scale . You say you are pushing out geographically. Are specific developers, i. T. Partners . Who are you looking to build a relationship with . Dev we have 4300 customers today across every vertical industry. We have some of the largest customers in the world using mongodb for example, over 50 of the top 100 companies in the world our customers with us today. Some of the most sophisticated customers are using mongodb to run their business. We are really a generalpurpose database and are designed truly to address a wide variety of use cases, across almost every industry. There is no revenue concentration. We feel like what it really shows is that we are wellpositioned for a larger opportunity. Alex when you talk about larger opportunities, what does that mean . If your customers . Bet bigger customers . Break that down for me. Dev applications grow as the data volume grows. We are a landexpand business. We see customers wrote by a factor of 10 and 20 times the initial spend. As you penetrate the account and are able to support new applications and use cases. And migrations of existing use cases where they find the existing architecture does not scale and it is hard to add new hard, part hard to give to new regulations and policies. With that, these accounts are growing very quickly, and we are adding lots of new accounts as well. That is why we feel very bullish about our future. Alex when i do think about the industry, though, the competition, names like oracle come to mind. Amazon and google or crossselling their database products on the cloud, a semirecent development. How do you jockey against these names in check when it comes to selling into customers . Dev yes, good question. We have been competing with the biggest names in tech since the company was founded. Oracle has built its Database Technology on architecture that was introduced over 40 years ago. Using, 40 years ago i was a rotary phone to make phone calls. Now i have a computer in my pocket. The Technology Landscape has changed radically, but there architectures based on a database from the 1970s. With amazon and google come we are actually partners with them. One advantage we have is that you can run mongodb anywhere. You can run it on your laptop, the data center, the private or public clouds. Alex i have to ask, talking to my sources on the street, i kind of wonder, what is the value of mongodb in staying a Standalone Company . What if one of the bigger players does come in and scoop you up . Are you a better product within a larger suite . What is the argument for mongodb to be a standalone and not an ideal acquisition target . Dev we have built this company for the last 10 years and we have acquired over 4000 customers, we have proven weekend serve the needs of the we can serve the needs of the most of many customers, not just in north america, but in europe and asia. We feel very comfortable about being a standalone entity. Now with the proceeds from the ipo, we have a strong Balance Sheet to continue to invest in business. I think that investors have recognized that, and obviously, rewarded us for it. I also should point out it is not about how the stock is doing today, it is about the longterm. We believe the best is yet to come. Emily that was mongodb president and ceo dev ittycheria. Coming up and we take a look at lyft. Thega funding round through lens of an investor. Mark i am Mark Crumpton in new york. You are watching Bloomberg Technology lets begin with a check of. First word News White House chief of staff defended President Trump against criticism that he was insensitive and disrespectful to the family of an Army Sergeant killed in niger. I was stunned when i came to work wednesday morning, brokenhearted, at what i saw a member of congress doing, a member of congress listened in on a phone call from the president of the United States to a young wife. Democraticdas congresswoman said that President Trump told the widow, he knew what he was in for when he signed up, but it still hurts. Although george w. Bush did not mention President Trump by name, he criticized some of the principles that define his brand. We have forgotten the dynamism that immigration is always brought to america. We see fading confidence in the value of free markets and international trade, forgetting that conflict can instability, and poverty follow in the wake of protectionism. Mark u. N. Ambassador rice nikki haley described russian interference in the 2016 election as an act of war, criticizing russias efforts to sow chaos in recent elections. Federal investigators are looking into russias actions and the possibility of collusion with the trunk and 10. U. N. Says secretarygeneral Antonio Guterres will meet with president come tomorrow. One issue on the agenda, u. N. Reform, which President Trump has raised. Im joined by my colleague paul and linda with a look at the markets. Good morning. Paul allen with a look at the markets. Paul fairly flat from u. S. Equities. Hour,s open for half an up about 1 from and the new Zealand Dollar slipping by one cent on the formation of a new government in new zealand, and 89 years of conservative rule. Ending nine years of conservative rule. Nikkei futures a little bit lower could the victory likely to be more clearcut for an, Prime Minister shinzo abe. A couple of the big banks in focus National Australia and commonwealth bank. Commonwealth likely to face questions over alleg