Trade war. We also have a bloomberg exclusive. We will hear from a top huawei executive as the Telecom Giant remains on the blacklist. Dropping all tria after the dow jones reported the u. S. Federal trade commission is investigating the marketing practices of juul. Invested 13 billion into the popular ecigarette maker. Regulators are investigating whether juul engaged in deceptive marketing. In addition, juul was named in documents by the u. S. Food and Drug Administration as it investigates whether ecigarettes can trigger seizures. Joining us is our Bloomberg News andth care policy reporter a reporter who covers juul. What is the fda investigating . They have gotten reports from people that this has happened to who say they have had seizures of thet juul was one ecigarettes that some of these. Eople putting reports in used they said recently, the fda, that there have been 120 seven reports of seizures possibly linked to ecigarettes. What they have not said is what devices were used in this, and what we found out is that to start this investigation, the reports they were looking at were linked to the juul devices. Emily obviously this is coming at an interesting time. Investigating,a but the ftc. What does this mean for juul . This is the latest in a series of scrutiny of this company. With theust came out damaging report showing 190 three cases of serious lung disease and one death that they vaping cause. Ftcave the cdc, fda, and looking closely at this product which until now has gone largely unregulated, with deadlines being pushed year to year. This comes one week before a bunch of new devices will hit the market. Emily Phillip Morris, big tobacco, has its on products. They are coming out with the range of new devices. Exactly. They did get approval in april. Splitp morris and altria from each other a decade ago. Now just after all these reports this week, it became clear, and they acknowledged they wanted to recombine forces to help launch this new type of ecigarette device. Since 2014 inied other markets around the world. Emily just yesterday, we interviewed a researcher who was part of a study that concluded safercigarettes are no than traditional cigarettes. Take a listen to what we had to say. To know whether it causes lung disease, you have to wait 30 years, especially with those young kids taking the risk. There is a Strong Association between lung disease and those levels, and it increases those levels, so they are at risk of lung disease. Emily lung disease is one thing. Seizures are another. Tell us about the reports the fda has been getting about seizures. Them thewere three of fda focused on early on when they were just starting to look at this in october that we learn from these internal fda documents. There were two from parents of 16nagers, both boys, 15 and they were separate reports, but the gist of them was the boys had been using a juul. They inhaled. Said her sonther felt a shadow coming after him, then started convulsing. She ran upstairs to help him. The ambulance came and they found a juul under the unconscious child, so those of the kinds of reports they are seeing. She said they went to the er and have talked to a lot of people in the Health Care Community and a lot of them agreed that juul was the reason this happened. Emily two moms here shaking their heads. It is curious listening to what she was saying there. Approved aas the fda new type of device, which had held back from giving full approval, saying it was safer than cigarettes. The fda went out of its way making two statements in approving it, which is, number one, it will not say it is safer ,han cigarettes, and number two because it is similar to cigarettes, they will not allow Phillip Morris to advertise it on tv and radio. Spoke with a North Carolina attorney general who has sued juul, multiple ecigarette companies, specifically with regards to their marketing and attempts to get young people to use these products. Take a listen. Fda should ban these products when they are not targeted to adults. If an adult wants to buy it, i have no problem. That is their right. Fine. What is happening is children are buying a large number of these products. What are they investigating when it comes to the marketing of these products . Ftc, it ist just the also the fda, the Health Committee in congress is looking into marketing practices. They want to know whether they targeted kids. Kids got interested in these devices. They are extremely popular among under age vapers. They are trying to find out how much juul targeted them, if they did it all, and they knew that this is something kids might pick up. Emily lots to follow. I know both of you will be doing that. Thank you both. Regulation, the head of frances antitrust unit has largely played second fiddle to her eu counterparts and she was appointed in 2016, but with a shuffle of top technocrats on the horizon, that is about to change. We have the story from paris. Over the years, she has become known as the nemesis of big tech in europe. She find google more than 9 billion. Her term is about to end in the next few weeks, but the new woman could become the most feared antitrust regulator on the old continent. Old, and she has been the head of frances antitrust regulator since 2016, entere is about to another phase of her mandate. Speaking to bloomberg at her paris office, she said she has set her sights on facebook and apple and online payments. Aboutso has big concerns asital assistants such google home and amazon echo. She said her team is planning active investigations by the end of this year or early next year into online advertising, which could impact u. S. Internet giants. France has started targeting those socalled companies with the 3 tax on National Digital revenues, a tax that will remain in place until a global agreement has been reached at the oecd level. That is why Emmanuel Macron told donald trump that the weekend at 7 that. Targetedtech could be faster in france than at the eu level. In paris, Bloomberg News. Emily coming up, two years since the new ceo took the helm at uber. He tells us as the company has changed, his vision for the future as the stock trades at an alltime low. You can check us out on the radio, the bloomberg app, and in the u. S. On sirius xm. This is bloomberg. Bloomberg. Ago, travisears kalanick was supposed to resign due to scandals. A former executive, Dara Khosrowshahi, was brought in to clean up the companys reservation. Since then he has pushed the Company Beyond ridesharing. It hasnt been an entirely smooth ride. An ipo sparked excitement, but investors were not. I sat down with the uber ceo with an exclusive and andranging conversation, begin by asking the question if he made the right choice and taking the job. We have resolved the governance conflicts. There were many legal issues the company was involved with as well. We had softbank as a partner. You want them as a partner in investor. We have a great investor base. Companytaken the public. Revenue has grown 75 since i joined. We have a path to profitability. While we have had bumps on the road, id like the position we are in now for the next years. Emily there have been bumps on the road. , Ridesharing Companies have been transformational. The asnuber can uber transformational as it has been over the next decade . I think it can. Uber has brought transportation an opportunity to a small segment of the population. We have 4 million driver partners all over the world, which is a huge number, unparalleled, but we want uber available to everybody. ,e are going into the next step introducing other transportation choices to uber. For example, we are testing buses in cairo to bring the cost of uber down. We are introducing bicycles and scooters for personal electric mobility. Anyway you want to get around your city, we will be there for you. Goods, be mostly uber but we will have third parties, transit, lime. If you want food, local commerce, uber eats and other services will be there for you as well. Emily can uber the transformational and stop losing money . The prices sound attractive, but can you create a Good Business dollar,share for one 1. 50 . Yes. If you look at our rideshare business, it covered our million, sos 100 the rideshare business itself is turning quite profitable and we believe the prophets of the rideshare business will grow not only topline, but bottomline as well, and there are other inesses, eats, autonomous these are extraordinary opportunities we are funding. I believe we will prove to investors that we can take on a serial basis big parts of our business, turn them profitable, use those parts of our business to find investments in other areas. Emily there are execution issues. Loss,st had your biggest 5. 2 billion. The stock is trading below the ipo price. You have hiring freezes on various teams. You have fired some of your top hires. Can bed you believe uber possible, but how confident and quickly can uber be profitable, and how quickly . I am very confident. The losses we reported was a 5 billion dollar loss from an accounting perspective. I live in the real world. In the real world, our ebida losses were lower than q1 and were on a good path in terms of our ebida losses as well. You are right. None of this will be easy. All of this will take excellent execution from all of her teams, marketing, et cetera, and we would demand our employees do more with less, and to execute incredibly effectively to grow topline and bottomline. Emily is pricing the main lever you pulled to profitability or other drivers . Scale. Scale. It is getting big when you have over one billion rides a quarter. We think we can use technology to be more efficient. Emailingle, instead of Call Center Agent or calling a Call Center Agent if you have issues, you can do it in the mobile app. These are Technology Innovations that allow a better experience and bring down costs, so the culmination of growing topline over 30 , Technology Innovation to delight the customer, and good oldfashioned efficiency making sure costs dont grow as fast as revenue. All of those together are the formula for profitability. Emily coming up more of my exclusive conversation with uber Ceo Dara Khosrowshahi on trade, and charges against the next employee a former employee, next. Week, aarlier this former uber engineer pled not guilty to charges of stealing selfdriving technology from Googles Waymo unit. It adds a new criminal chapter to the saga. This is one of many legacies Dara Khosrowshahi inherited when he took the top job. I ask him if he still feels the weight of previous leadership. Ofyou need different kinds management for different times in the element of a company. Every management has their faults. I have my faults, but they built a Great Company, and now they have handed it to me. I have to take that Great Company and make it greater. I think i am that for the job. While they made their mistakes they built a great brand that had weaknesses, but incredible strengths. It is my job to take it to the next level. Emily the guy who ran the trucking business that uber bought was just charged with stealing selfdriving technology, stealing trade secrets. What do you make of those charges . When we wasnt here brought anthony on board, but what i do know is we went to incredible depths to make sure any information anthony might have acquired from google, and it sure looked like he did come and did not make it over to our company. , andwas our responsibility we were incredibly diligent making sure that we were not guilty of anything that could be nefarious one way or the other. We think you build the right way. Anthony is an incredibly talented person. It did not work out, but we did the right thing. The person who spearheaded that acquisition is still on the board, travis kalanick. I ask you this and have to ask it again, do you question his position on the board . I am going tot live in the here and now. Amounthas an incredible of historical knowledge about the accompany. The company. He is incredibly bright, as are other board members. I use him at the board. He is a strong advisor. His background is incredibly useful, and he is supportive. Ultimately, we are a Public Company and the shareholders will get to pick their own board and that governance process will take care of itself Going Forward. Emily you talk to him often . During board meetings and offline. Emily he is on the board for now . He is, and he will be on the board tomorrow. Emily lets talk about the future. Those who say uber is a ridesharing and food delivery company, what is the next big idea . The ideas we have right now in this building are plenty big ideas, ridesharing, food delivery, micro mobility, autonomous, freight revolution zing how truckers move around. We have elevate as well. We have enormous ideas, and now is execution time. Emily where is the technological innovation happening at uber . It is happening all over. We are a combination of the digital physical, and the two come together in unique ways. We have interesting Machine Learning algorithms looking at live supply and demand in the are lookingiders for and where they are located, and giving our drivers guidelines of where to go to meet that demand. This matching of supply and demand in a dynamic way in the pricing we have is unique. We continue to innovate their, and we innovate in different spots, such as elevate, how we can bring together different modes of transportation and type them together. Emily you are in charge of not just visualizing the future of transportation, but to get there and create that future. When you look into the future, what does the future of transportation look like . You have google, tesla, traditional automakers, flying cars, and helicopters how will this come together and be different . We believe we can bring it together. I believe we can have that singler app, when you wake up in singular app, where when you wake up you can get what is relevant to you with live pricing, et cetera. We will tell you mass transit you can take the subway, a bus, and uber, and you can take and elevate as well. We are uniquely positioned as a company to have all that information together, the same thing for transportation, local commerce, and we can do the same thing for logistics. Emily we will have more of our exclusive interview with uber Ceo Dara Khosrowshahi after the break, including how uber will fare in a possible recession, a trade war, and the future of uber eats. That is next. This is bloomberg. From the couldnt be prouders to the wait did we just winners. Everyone uses their phone differently. Thats why Xfinity Mobile lets you design your own data. Now you can share it between lines. Mix with unlimited, and switch it up at anytime so you only pay for what you need. Its a different kind of Wireless Network designed to save you money. Save up to 400 a year on your wireless bill. Plus get 250 back when you buy a new samsung note. Click, call or visit a store today. Emily this is bloomberg technology. Earlier the show, we brought you the first two parts of my ceo. Rsation with ubers in this final part, we talk about the newer areas of business like uber eats, autonomy, e scooters, but how re if the fair fa economy slows down . The consumer in the u. S. Is very strong. Were a very global company. The majority of our transactions actually are outside the u. S. , so we look at Global Growth. To the extent Global Growth slows down, that could be negative for us, but if mobile growth slows down, we will have more partners wanting to come up with a platform because we expose very flexible labor opportunities. I think the growth of the company is such we will be relatively resistant to any macro slowdown and were certainly not seeing any slowdown with the u. S. Consumer as of yet. If we aret his plan b in a fullblown trade war . We have heard about investing in vietnam or brazil. What is the backup plan . We are an assetlike company. We dont have to go out and buy cars, etc. We are an assetlight company. We will make sure partners can source vehicles in an economical way. Many of them source vehicles secondhand. They will source used vehicles, so to speak. Parts of the business where we are importing bikes, for example, theres some additional specs, but its not having any material effect on the company and we are confident of our growth over the next few quarters, trade war or no. Emily you have a food business, trucking business, he bikes, scooters, buses, self driving cars, flying cars. Transportation of every kind. Emily you asked the public to think about uber as the amazon of transportation, but amazon was a bookstore for a long time before it evolved into other stuff. Is now the time to focus on the core . We have been in the ridesharing business a long time as well, and that is ms. Is absolutely developing and its profitability developing and that business is absolutely developing. Generally, we are either holding or taking share in businesses. We have a core business that provides the framework or us to build multibillion, and i think it would be criminal if we dont take advantage of that. You are seeing more and more apps and companies building ecosystems. The super apps are winning and we can be the super app of transportation, so to speak, that allows us to acquire customers at much cheaper rate than competitors. It allows us to keep customers because we have a deeper relationship with them, and we think longterm if you can acquire comfort customers and keep them longer, that is a winning formula. Emily uber eats is what he percent, 30 of the business now . Yes, and growing quickly. Bookings grew over 90 in a year and year basis. We are the Largest Global player out there and we continue as a category. Food, we believe can be as large or even larger than the ridesharing category. We love that business and continue to invest in it. E