They have been under house arrest since late october when they were indicted for money laundering. French Counterterrorism Police have arrested three people in connection with the january attacks in paris that left 12 people dead. An official said two men and woman were taken into custody as part of an investigation. Celebration erupted in following theital resignation of president robert mugabe. He given to overwhelming pressure from the military and lawmakers who were preparing to vote on the motion of impeachment. 27 hours 24 hours a day powered by 2700 journalists and analysts. This is bloomberg. Annalee this is emily i am emily chang and this is bloomberg technology. The tough job that awaits her placement. Slams the plan to roll back Net Neutrality. Wheeler joins us to discuss what he calls a shameful sellout. Means a bloomberg scoop. Hackers to stall the personal data a 50 million customers and 7 million drivers, uber including the former Ceo Travis Kalanick kept the breach a secret for a year. The chief Security Officer and another executive were criticized for keeping it under wraps other than report the breach. Uber paid by hackers 100,000 to delete the information. Joining me now is bloomberg techs eric. Know in termso we of what happened here . It is so crazy. More than a year ago, uber heard from these actors the day they found a way to get information, names come a telephone numbers, that sort of information and then information at 7 million drivers. And drivers license numbers for 600,000 drivers. The concern here is that is information uber was required to disclose and it didnt. Now with more than a year later, the company is deciding to come forward and say that they should have disclosed this information and here is what happened. He is selling you the should not have happened, i will not make excuses for it we are changing the way we do business. Think that they can get away from Something Like this . Eric while they were talking to the federal trade commission and just after negotiations with the new York Attorney general, they face the question of what to do about this hacking. It is hard to imagine that this engenders any sort of trust with regulators. You already saw the instance with london where regulators there revoked ubers license. They just did not trust issue and the company had not represented very clearly what was going on. This is yet another sign that uber was willing to go to Great Lengths to hide information that it now believes it was required to report from regulators, and that certainly will give cities, states, and National Governments all over the world serious pause. Emily how can we be sure that this information did not get into anybody elses hands and that the hackers did indeed delete this information . Eric right. Normally, hackers will wait and sit on information, so that is certainly a concern. Ubers belief is they paid the 100,000. They have evidence perhaps that the files were actually deleted. We do not know who the attackers were, but they refer to them as these two individuals. I think right now there is a belief that that information is not out there in the public, and of course, uber is offering Data Protection for the drivers affected by the most serious information bridge here breach here. Emily what did the former ceo now and will know and when did he know it . Eric has not been ousted as part of this along with another senior attorney. He certainly knew in november 2016 that this hack had taken place. He knew the company had been negotiating with the Attorney Generals Office in new york and the fdc. There are questions about how much he knew the legal reasoning and legal obligations behind this decision, but he certainly knew about the hack and the scrutiny that they would face from regulators and Attorney Generals Office is. Emily so what kind of penalty can uber face here . Can they face some sort of consequences from regulators . Could they be hit with a lawsuit, in fact . Eric yes. Anything is possible. As we reported before, uber faces ongoing criminal probes that have touched and at least five different areas to this is a company that over time regulators and Law Enforcement officials are looking at. There are dozens of civil suits against uber soviet certainly would not be surprising that Something Like that could happen but we have to wait and see what the actual consequence is. But you have to imagine that some sort of monitor or attempt to make sure that uber is doing what it says it is doing is something that regulators or Law Enforcement is going to be thinking about after these revelations. Emily now i know it may be hard to keep track of all of the open investigations, but what do we know about the status of those, and what are we likely to see, any kind of penalty . Eric we have not heard a lot new since my big story last month saying that there were these five investigations. One interesting fact here is joe sullivan, who has been ousted as part of this incident, was at the center or at least his organization was at the center of some of those things. You hear about the software meant to help in some cases uber drivers evade Law Enforcement. There are some any questions. The ceo has to keep playing cleanup, and he knew that was what he was coming into. Maybe he did not know quite the extent of it. The data breach is a total surprise. So many problems and the idea that there is a new one is shocking. Emily so joe sullivan was formerly chief Security Officer of facebook. He also worked at paypal and ebay. A long tenure for him in the tech industry. Eric newcomer, thank you for joining us. Great scoop by you. Tesla is spending an average of 8,000 permanent as it ramps up production on its allimportant model 3 sedan. That would put the company on track to exhaust its current cash pile by early august so the pace is not expected to continue. Tesla said it has implemented to meet its target of producing 5000 model threes by the end of march. Coming up, hpe releases fourth one owner earnings and announces a major leadership departure. Meg whitman wraps up six years. Bloomberg technology is Live Streaming online. This is bloomberg. Emily major leadership changes that hewlettpackard enterprise. Meg whitman will step down from her role effective february of next year but she will stay on the board. Antonio neri will succeed meg whitman as the ceo. The something was announced with the Company Fourth quarter reports. Shares are dropping as much as 7 . Seven point 5 billion in revenue for the quarter, missing estimates. Joining us now is the executive Vice President of Research Product for ibc. You just got off the phone with meg whitman. What did she have to say . Right. I mean, that is why governance has been a top emily looks like he is having trouble hearing me. Can you hear me . You just got off the phone with meg whitman. What did she have to say . Ok. Cory johnson luckily is standing by with me right here in studio. You did not space to meg whitman, but you know the news. Cory she took on an impossible job, which is to turn hewlettpackard into a bigger and Better Business than it had been in the past and restore the glory as it had once been the leader in silicon valley. The highgrowth Software Services business, the router business, as well as the low growth printer and pc business, spun that off on the other side. She was supposed to be the ceo of the high growing business but it did not turn that way. It continued to shrink and spend billions of dollars in acquisitions and they are still taking writedowns. The restructuring charges in this quarter alone, they spent 10 million a week in restructuring charges. The onetime restructuring charges go back to 2001 with this company. Not all her fault, but she could not find the right direction for this company to resume its years of growth. The number they put up show some growth, but if you pull back the numbers, the important divisions were not growing or not going with any kind of size. A lot of leasing. They could not get the right product mix for todays world of technology. Emily president antonio neri will be taking over for her. We spoke to him a wild back. I asked him about his name being touted as a successor to meg whitman. Take a listen to what he had to say. As you know, i have been with the company for 22 years. Always in many different areas of the business. And i am very excited about the future of this company. Emily crawford is now with us. Crawford, we were listening to antonio, who will be succeeding meg whitman. You spoke with meg whitman, just got off the phone with her. What does she have to say . Crawford obviously we talked about the quarter and also her legacy. What she feels like is hewlettpackard is innovating in a way that they were not intervening when she arrived. If you look at the situation the company was in when she arrived, they were in a real haphazard situation with the exit of if you look at the playbook they are running out, they can innovate and they do innovate, but they still participate in a lot of relatively low margin tightness, but this company was irrelevant, heading to irrelevance 3, 4 years ago. The playbook of value areas of the infrastructure that they can add to their portfolio and sell through their channel is showing Revenue Growth. That Revenue Growth is something we have not seen for a number of quarters. Now we see it in the second sequential quarter. Relatively, meg and i talked about the business is performing better than it has been ever performing or at least in recent history. I think separate from that, you have to look at how is the job done, and i think that is the open question. Emily so tell us who is antonio neri, and what kind of leadership is he expected to bring to the company . Crawford i have had the pleasure of knowing antonio for a long time, over 10 years. He is an hper, pretty compact merger. Pre compact merger. He knows everyone. He has had so many jobs. He climbed the corporate ladder and is extremely wellregarded in the company. When she joined, 60 of the top managers were from hewlettpackard. Now that number is completely reversed. Here we have the ceo having climbed the corporate ladder. He is really well regarded within hewlettpackard, and he will go back to the roots of climbing the corporate ladder and taking his bumps internally and knows the organization in a unique way. Emily crawford, executive Vice President of Research Product at ibc and our editor at large cory johnson, thank you so much. We will continue to follow the headlines as they come out of the hpe earnings call. The Trump Administration is taking steps to end the Net Neutrality protections. We speak to the former fcc chairman, tom wheeler, the man who saw the implementation, next. This is bloomberg. Emily the federal trade commission is investigating cap advisors Business Practices. This comes from the milwaukee journal in which travelers and their warnings of harassment and injuries were being blocked by the company. One example, of advisor blocked a womans wanting on a hidden bathroom camera. At t is telling the Trump Administration, we will see you in court. The Justice Department filed suit to stop at ts 85 billion takeover of time warner. Ceo Randall Stephenson says this in such as the idea of antitrump law beyond the breaking point. He is vowing not whether the deal was influenced by President Trump or not. Speaking to reporters this afternoon, President Trump had this to say about the deal. President trump i am not going to get involved in litigation, personally, i always felt that is a deal that is not good for the country. Pricing will go up. I dont think it is a good deal for the country, but i will not get involved in litigation. Emily the Trump Administration has taken a big step to putting the obama era Net Neutrality regulations. A december 14 vote will be held on overturning the protections those regulations are intended to prevent broadband providers from favoring their Business Partner offerings or other content. He spoke with Bloomberg Radio today to defend his decision. Take a listen. The fcc would require that all Internet Service providers be transparent about their Business Practices if they are blocking or throttling content, they have to disclose that. The ftc would have the ability to police providers if they are behaving in an anticompetitive way. We would be able to protect consumers Going Forward and promote investment in the networks that are necessary to promote digital opportunity. Emily joining me now to discuss this, the man who let the fcc during the Obama Administration when the protections were instituted. I would like to welcome former fcc chairman tom wheeler. Thank you so much for joining us. Tom hello. Emily you have said it is shameful, a sellout. Why . Tom you just have to listen to that explanation that chairman pai just had. Transparency is the solution . So all that is necessary to do something evil is to tell you that i am about to do something evil. That does not make any sense. And then, ok, what do you do once you have that information . To theres only household in america have no other choice two thirds of the household in america have no other choice. To claim this is some kind of Consumer Protection is a fraudulent representation. Emily they say their proposal is more fair, more proconsumer. What makes you think it is the opposite . Tom well, in the name of Consumer Protection, they say they are not going to protect consumers. In the name of better regulation, they say they will turn it over to the ftc, but yet an ftc commissioner this afternoon tweeted that even if they do that, the ftc does not have the authority. They are running away from their responsibilities. Emily the big concern here is how this impacts the haves and havenots, the folks who could increase future innovation, be responsible for future innovation. How would this impact the halves of the moment, google, facebook, netflix . Tom i think the important thing is, how does it affect everybody and their ability to get on the internet . And for consumers to reach providers and for providers to reach consumers. What we are seeing here is the cableization of the internet. If you like your Cable Company and in the way they can choose what you see and they continue raising prices, you will love what happens under this repeal because suddenly the people making the rules are the networks. And the consumers cannot survive without the networks. And the Service Providers cannot survive without the networks. Emily so how can we hold isps accountable . Tom well, that is what we did in our open internet rules. We said there are some bright line rules. You have to provide information to the consumer and we will put a referee on the field to look at what your continued actions are as Technology Evolves and so the flag if necessary throw the flag if necessary. The trump fcc is turning its back and walking away and giving the Network Companies everything that they have asked for. Emily this is unfolding against very interesting political backdrop. We just mentioned earlier what is going on with at ts proposed merger with time warner. The doj now suing at t. How much of this is politically motivated . Tom i cannot answer that question. I do find it shocking that the trump fcc from day one has gone right down the line what the Big Companies want when they are supposed to be representing consumers, not the companies. The fcc continually turns their back on their congressional mandate to protect consumers. Emily look, by all accounts, it appears this will happen in december. For you, what is it like to watch your work be undone . Tom i have had better thanksgivings. The answer is this is a long process. It appears they have the votes to overturn it in december. Then it will be up to the court. The decision we made twice went through the court and was twice confirmed by the court. And i hope that the court will look at this and say, hey, wait a minute. This has been in effect for 2. 5 years and there have not been bad things that resulted. Why are they turning around and going the other direction . Emily tom wheeler, former fcc chairman who live the efforts in the adoption of Net Neutrality. Think you for joining us. Later, we will be speaking with another fcc chairman who will bring us the other side of the argument. This is bloomberg. Reporter you are watching bloomberg. Im deborah with the first white headlines around the world. The end of an era in zimbabwe. The country has lost the only leader they have never known. Ever known. Robert mugabe resigned as president. The worldsold was oldest head of state and had ruled since independence from britain. He quit after being placed under house arrest by the army and being fired by his own party. Uber is being sued for negligence after bloomberg revealed it paid hackers to keep a breach second. They say the attack compromised the names, email addre