Congressional republicans rejected confidence. About delivering on a tax overhaul. President trump is planning an inperson appeal to lawmakers. House Speaker Paul Ryan has become the latest republican lawmaker to call on roy moore to drop out of the Alabama Senate race in light of recent accusations of Sexual Misconduct made against him. Speaker ryan number one, the allegations are credible. Number two, if he cares about the values of people he claims to care about, he should step aside. Ryan later tweeted the house will adopt the policy of mandatory antigraft and discrimination training. Global news 24 hours a day. Powered by more than 2,700 journalists and analysts in more than 120 countries. This isa parenti, bloomberg. Emily im emily chang, and this is bloomberg technology. Coming up, new details on apples nextgeneration of the iphone. The iphone x has just hit stores, but the company is already at work, adding new technology to its upcoming device. Plus, airbnb hit a new milestone. The Company Continues the strength of posting a profit with 1 billion in revenue. Can the rental startup keep growing . As the debate over saxophone tax reform continues in congress, we will discuss the impact for the Tech Industry from the Big Companies to startups. First to our lead. Apple continues its neverending cycle to ramp up the Technology Used in the iphone. The Company Plans to take another step toward turning the smartphone into an ar augmented reality device. According to people familiar with the matter apple is working rearfacing, 3d sensor in the iphone in 2019. It is a Different Technology from the Iphone X Face id system. Joining us now is alex. Also with us is our bloomberg editor atlarge cory johnson. What does this new sensor involved . Alex at the moment on the back of your phone, you have two cameras on the iphone x. This allows for depth perception, but it is not terribly accurate. What apple is doing is the 2019 iphone, adding the depth perception on the back which allows them to do much more complicated augmented reality things with the rear facing camera. Emily was this impact any of the current technology, the face id, or is this something separate . Alex it is something separate. If you are a laser maker, it is probably good news because there on the side of the screen which allows face id , to work. There would be another one on the back. If you take a monopoly board, a virtual monopoly board, you can play virtual monopoly on this table with the ar kit. If you put your hand in the field of view, it does not know your hand is there and ruins the illusion. Adding a 3d sensor can allow you to pick up a hat and move it to the next space. Cory i want to hear him talking about english monopoly. Emily it is not surprising apple would already be pushing forward on technology one, two, three generations out, but would hat do you make of this knowing about apples broader ar strategy . Cory i think apple looks at what has happened to the pc industry. We have gotten to a point in pcs where there is no compelling reason to get a new model every year or every other year. The replacements have slow down down for pcs and tablets. We see people replacing the tablet but at a much slower pace. People want to get a new phone after the 18 month or 12 month period, but they dont want to slow down and they want something compelling enough to get people to want to upgrade their phones. This is that kind of thing that is a big leap in one direction. Alex i think the thing is interesting in that for to a that there are two production from out at the moment that have this kind of technology already. Kind of shows apple is taking the advantage because it wants to milk this cycle and the next cycle rather than putting all of the technology as soon as they can, it leaves room to advance it leaves them little to room advance the next generation. Emily apple working on ar headsets. How does this tie into that . Alex it can be seen as a Foundation Stone in some ways. There are increased numbers of augmented reality apps. The problem with augmented reality glasses at the moment is there is not a huge amount of content out there, which makes it worth people buying. If apple is building a whole for offoundation ar content, they can parlay that into smart glasses in three or four years time. Cory they have the ability to do a lot of things with ar using air pods as well. Augmented reality with the air pods with some kind of glasses as well could be somewhere they go. I think the fundamental of this is one of the development tools. If you think about pokemon go, it was Ground Breaking stuff, but they had to build that from the first 1 and 0 to the top. Now, developers can get a head start and we might see real advances quickly. Emily new technology can be hard to imagine how you would use this. As with pokemon go, if somebody explained that to me, i do not think i understand it until i played it myself. Alex, give us some ideas about how i as a regular user might benefit from this kind of technology. Alex ikea, which has an augmented reality app, it allows you to place a virtual sofa in the image of your living room and walk around and see how it might look. Hang a cannot do is mirror on the wall or a picture on the wall. Dealing with vertical planes. It adds that some of perception to it. You have seen the walking dead app where you seize on Walking Around your living room. The moment a person approaches a zombie, a does not know the person is there anything place an interactive thing with your friends saying hit them in the face or god knows what. Cory you have not seen the walking dead. Emily i do not watch scary movies. Cory it is hard to imagine with what the uses might be. When desktop publishing came around, people that you would take magazines and deliver them as a pdf. We did not understand media would be facebook or instagram or twitter. The notions of what you can do with as i sort of unknown. We will look back at this conversation five years from now and laugh at what people are doing with it because it will seem so obvious then if not now. Alex an animated emoji emily love it. Alex we did not know it was going to be this karaoke thing. Emily it is a new language. Alex rights. Karaoke was the thing to push. We could not have predicted that three months ago. Emily try out some of the new features on the iphone. Great scoop from you, alex. Thanks so much for joining us. Cory johnson. Coming up, lyft continues to capitalize on ubers rocky year. We will talk about the Global Expansion plan, next. Bloomberg technology is Live Streaming on twitter. You can check us out at 5 00 in new york, to clock in San Francisco. This is bloomberg. Emily a rollout of a major update to the firefox web browser tuesday with a bevy of new features, and one old frenemy, google. Firefoxs default Search Engine will be google. The agreement will cause a similar older deal that was scuttled when the web browser became bitter rivals. Three years ago, they switched from google to yahoo as the default firefox search provider in the u. S. After yahoo agreed to pay more than 300 million a year over five years. Lyft has its foot on the gas as it drives its Global Expansion north to canada. This will be the first time it operates outside of the United States. The Ride Hailing Company will start in toronto and expand into hamilton, ontario. Lyft has been gaining territory. 1500 residents in toronto have downloaded the app even though the service is not available. Joining me now is our guest. Mayfield invested in the series and round. You guys invested in 6 million in 2011. It is now worth 11 billion. The valuation of the company is worth 11 billion and our stake is a lot from where we invested. Emily what do you make of their expansion finally outside the United States . I would say lyft is a great example of a company which is on to its mission of serving people, creating communities to transportation. Our aim is to build one of the Biggest Companies in the Information Technology industry. When we look at toronto we , believe it is the fourthlargest city in north america. Culturally, we are very aligned with the people there. We did surveys. People really wanted a choice. They are looking for inclusivity, diversity, and above all, they want people to treat them well, whether it is the drivers or the consumers. Based on market research, we felt the time is right for us to expand outside the u. S. Into the first country which is nearby in north america because there is a lot of demand for what we do. Emily uber expanded globally much more quickly. Not always working out. They surrendered in china and russia for example, but they do have the lead when it comes to international expansion. Was in the right call for lyft to wait . Navin absolutely. I have a believe having been a serial entrepreneur, building a business is like a marathon so our strong belief is you need to crawl, walk, and run. First, you need to become good at something in the world and people love you. Once you conquer that market, then you have the right to expand into other markets. Lets take an example of google. Google was not the first mogul in search, but it is the Biggest Company today. There were people before google whether it was yahoo , excite, and many more. So it is not necessary the first mover always takes the lion share of the market because as i mentioned earlier, it is a marathon, not a sprint. Emily obviously uber has had major challenges this year and lyft has gained market share in part as a result of that. What do you think is the likelihood that lyft can become not necessarily even an equal player to uber in the u. S. But to surpass them. . Navin we have not disclosed the numbers. Emily everybody wants to know what the numbers are. Navin what i can say is in many of the cities with the data that has been published, they are running a parity compared to where we were. Emily you mean you think uber and lyft have the same market share . Navin in many cities in the u. S. You can look at thirdparty data from Companies Like slides, you can look at markets in San Francisco the general bay area, the big metropolitan cities, we are doing extremely well based on thirdparty data, and i think if you continue on our focus of delighting customers keeping new products, i think , the sky is the limit is at the. At the end of the day the brand , we have built, this business, we are a Community Driven site who is looking at something more than just economic profit to itself. A good example is just in the last 12 to 18 months, lyft drivers had made 350 million on commissions. We are trying to get back to this whole trend of the 1099 economy, microentrepreneurship is going because of platforms like lyft. Emily uber drivers have made a lot as well. Thingas first to the tip for sure. Another company they raised , 88. 75 million. The companies are fresh meat in a market where it was on his life are the giant in the room. What makes you think it has what it takes to have a longterm sustainable path . Navin absolutely. First of all, the market is playing in. Globally there is a it is a 2. 6 trillion fashion market. No leader in that space online. They are not a retailer. We are a marketplace like alibaba and ebay where the business has effects. With the business has Network Effects we have 3 million , stylists sharing 8 million items a day. Plus, we have a community where our engagement metrics are at the same order of facebook and snap. If you look at it today, we are not an eCommerce Company. We are the largest social Commerce Company for fashion. When you have that fact with the community, it is a very different model. We dont even take hold of inventory. It is a people to people thing. People started selling used merchandise. Now, they have expanded to selling essentially like new merchandise. 3 million women in the business of creating online boutiques. Emily when you look at the future of ecommerce market, is it amazon and everyone else . Or do you see other larger players emerging whether they are a straight Economist Company eCommerce Company porsche social eCommerce Company as you call it . Navin yes, i think amazon has 50 market share as we know, so they will be the giant gorilla in the market. That is always the case. If you look at google, if you look at microsoft and its markets, could there be 10, 20, 30 billion market Cap Companies created along these massive markets . I think it is going to happen. You look at Offline Retail in fashion, that is Louis Vuitton, there is Louis Vuitton which , is very well known. Nordstrom is a Great Company that has been created, so this is not going to be a fashion a winner take all market. Amazon does very well when you know what to buy. They provide you the cheapest thing the fastest. The biggest problem in fashion is most people do not even know what to buy. That sort of community of 3 million stylists is essentially helping you curate and style for you what is best for you, and that is the model nordstrom pioneered with the offline concierge. Those are the things using technology we are seeing coming online today. Emily all right. Thank you so much. Navin it is a pleasure being here. Thank you very much. Emily coming up, we will outline airbnbs path to profitability despite a warning by Morgan Stanley about slowing growth. This is bloomberg. Emily the u. K. Luxury ecommerce platform farfetched reported a bump in sales last year with Global Demand for highend fashion continuing to grow. The value of orders and services minus fees increased to 780 million, an 81 jump from 2015. If you recall, a company got a Minority Stake in the company in june. Both Companies Looking to boost sales in china. Now to an airbnb milestone. The home and apartment rental startup pulled in about 1 billion in net revenue for the quarter ending in september. This according to people familiar with the financials. Airbnb became profitable during the second half of 2016, but is still under pressure to justify the private valuation of 31 billion. The news comes after Morgan Stanley put out a report last week saying that airbnbs growth was slowing down. Joining us now is olivia, who covers startups and venture capital. 1 billion in net revenue. What do we take away from that . Olivia it shows this company is really growing. 1 billion in net revenue for this past winter. Last year for the same quarter, 500 million so a huge acceleration in growth, and that is not slowing down. Actually, they are predicted to grow about 60 yearoveryear compared to the end of the year last year. The company is really on the fasttrack, which is interesting because the Morgan Stanley report came out that said that growth was slowing down a bit. Exactly. The Morgan Stanley report only looked at the u. S. And parts of europe. It only pulled about 4000 airbnb users. It only polled about 4000 airbnb users. It did not take into account these two huge new markets for the company, which is latin america and china. China saw about an 80 growth yearoveryear. Latin america saw a 150 growth. It will look like the company is slowing down because it does appear it is slowing a bit in the u. S. And in parts of europe. Such a small sampling. Emily at the same time, we learned that airbnb is and has been profitable. We do not know to what extent, but they are on a profitability streak. Olivia right. They have been profitable for 17 months now, which is a really good sign. Most Silicon Valley upstarts are not yet profitable. We look at uber and we work, they are not there yet. Brian says he expects to bring this company to the Public Market within a year so it is a really good sign, but they will have to continue to work pretty hard to justify the 31 billion valuation. Emily you mentioned china. You said they are seeing growth. At the same time, we are seeing tumult. The airbnb ceo had to leave. Olivia step down. Emily we now know a little bit more about why. Remind us what happened there. You have the cofounder of airbnb taking over as chairman of china. What are the dynamics now in at play . Olivia he stepped down basically for personal reasons. There was a relationship between him and another Airbnb Colligan colleague and the company felt it was appropriate that he leave, which is an interesting signal in the age of uber where i think they are trying to take a stand and say they will not stand for that kind of behavior of our company. Definitely turmoil there. China is a huge, huge part of their growth and forecast so they will have to make sure that that market is really well taken care of. By putting the person in charge, by putting nathan in charge there it is a signal they are , taking it seriously, but i understand they are looking for leadership there and it is difficult to find somebody who wants to work for an American Tech Company in china because it is difficult to build a successful tech company. In china. Emily airbnb, you have a call tomorrow with the global head of policy. What are we expecting . Olivia very colorful character. We can expect a lot of jokes and we