War, and a former employee who forbeen federally charged stealing trade tickets from out for that. We also have another bloomberg exclusive. We will hear from a top huawei executive about what the u. S. Is losing out on as the Telecom Giant remains on the blacklist. First, shares of Tobacco Company altria dropping after the dow jones reported the u. S. Federal trade commission is investigating the marketing. Marketing practices of juul labs. It has 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 to discuss, the coauthor of that scoop, our Bloomberg NewsHealth Care Policy reporter and a reporter who covers juul. What exactly is the fda investigating . Anna they have gotten reports from people that this has happened to who say they have had seizures and that juul was one of the ecigarettes that some of these people putting reports in used. They said recently, the fda, that there have been 127 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. Weve got not just the fda investigating, but also the ftc reportedly investigating. What does this mean for juul . Anna this is the latest in a series of scrutiny of this company. The cdc just came out with the damaging report showing 193 cases of serious lung disease and one death that vaping cause. Had caused. That they were investigating that. Weve got the cdc, fda, and the federal trade commission all 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 by the Parent CompanyPhilip Morris international. Emily Phillip Morris, big tobacco has its own ecigarette products. They are coming out with the range of new devices. Anna exactly. Emily which have been approved by the fda. Anna they did get approval in april. Phillip morris and altria split from each other about a decade ago and now, just after all these reports came out this week, it became clear, and they acknowledged they wanted to recombine forces to help launch this new type of ecigarette device. It has been tried since 2014 in other markets around the world. U. S. , it will come next week. Emily just yesterday, we interviewed a researcher who was part of a study that concluded that ecigarettes are no safer than traditional cigarettes. Take a listen to what he had to say. Trulyknow whether vaping causes the same lung disease as smoking, 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 vaping increases those levels, so they are at risk of lung disease. Emily lung disease is one thing. Seizures are another. Tell us more about the reports the fda has been getting about seizures. Anna there were three of them the fda focused on early on when they were just starting to look at this in october that we learn learned from these internal fda documents. There were two from parents of teenagers, both boys, 15 and 16 they were separate reports, but the gist of them was the boys had been using a juul. They inhaled. One of the mothers said her son had an aura and felt that a shadow coming after him, then started convulsing. She ran upstairs to help him. The ambulance came and they paramedics found a juul under the unconscious child, so those are 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. Lizette it is curious listening to what anna was just saying there. This comes even as the fda approved this new type of device, which it had held back from giving full approval, saying it is safer than cigarettes. In fact, the fda went out of its way making two statements in approving it, which is, number one, it will not say it is safer than cigarettes, and number two, because it is so similar to cigarettes, they will not allow Phillip Morris to advertise it on tv or on radio. Emily we spoke with a North Carolina attorney general who has sued juul, sued multiple ecigarette companies, specifically with regards to their marketing and attempts to get young people to use these products. Take a listen to North Carolinas attorney general josh stein. The 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. If it helps them get off cigarettes, fine. What is happening is children are the buying a large number of ones these products. Emily quickly, what is the ftc investigating when it comes to the marketing of these products . Anna it is not just the ftc, it is also the fda, the Health Committee in congress is looking into juuls marketing practices. They want to know whether they targeted kids. Obviously, kids got interested in these devices. They are extremely popular among under age vapers who shouldnt have these things yway and hands and they are trying to find out how much juul targeted them, if they did at all, and they knew that this is something kids might pick up. Emily lots to continue to follow and i know you will be both doing that. Bloombergs Lizette Chapman and anna edney. Thank you. Sticking with regulation, the head of frances antitrust unit has largely played second fiddle to her eu counterparts since she was appointed in 2016, but with a shuffle of top technocrats on the horizon, that might be about to change. Has the storyn from paris. Caroline over the years, she has become known as the nemesis of big tech in europe. She fined google more than 9 billion. Her term is about to end in the next few weeks, but a new woman could become the most feared antitrust regulator on the old continent. Her name is isabel th desilva. She is 49 years old, and she has been the head of frances antitrust regulator since 2016, and she is about to enter a more severe phase of her mandate. Speaking to bloomberg at her paris office, she said she has set her sights on facebook and apples forays into online payments. She also has big concerns about Digital Assistants such as google home and amazon echo. De silva also 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 already started targeting those socalled companies with the 3 tax on National Digital revenues, a tax that will remain in place until a more global agreement has been reached at the oecd level. That is why the french president Emmanuel Macron told donald trump over the weekend at g7 that. As long as de silva is in charge of the regulator, u. S. Big tech could be targeted faster in france than at the eu level. Connan, caroline Bloomberg News. Emily coming up, two years since the new ceo took the helm at uber. In a bloomberg exclusive, he tells us as the company has changed under his reign and his vision for the future as the stock trades at an alltime low. If you like Bloomberg News, you can check us out on the radio, the bloomberg app, and in the u. S. On sirius xm. This is bloomberg. Ceoy two years ago, ubers was supposed to resign due to scandals. A former executive, Dara Khosrowshahi, was brought in to clean up the companys reputation. 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 wideranging conversation, and began by asking if he made the right choice in taking the job. Dara we have resolved the governance conflicts the company had. There were many legal issues the company was involved with as well. We have softbank as a partner. You want them as a partner and investor. We have a great investor base. We have taken the company public. The company revenue, bookings have grown 75 since i joined. We have a path to profitability. While we have had bumps on the road, and every adventure has bumps on the road, i like where we are and especially like the position we are in now for the next years. Emily there have been bumps on the road. Despite all the negative stories, uber, lyft, Ridesharing Companies have been transformational. The big question for you is can uber be as transformational as it has been over the next decade as it has been over the last decade . Dara i think it can. Really what uber has done is brought transportation and opportunity at this point to is a smallieve 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. What we are doing now is going into the next step of introducing other transportation choices to uber. Weve always gone with pool, but now for example, we are testing buses in cairo to bring the cost of uber down. Hey dollar, 1. 50, etc. We are introducing bicycles and scooters for personal electric mobility. Any way you want to get around your city, we will be there for you. It will be mostly uber goods, but we will have third parties, transit, lime. Anyway you want to get around, we want uber to be there. If you want food, local commerce, uber eats and other services will be there for you as well. Emily i guess the question is, can uber be transformational and stop losing money . The prices sound attractive, but can you create a Good Business for ride fare for one dollar, 1. 50 . Dara yes. If you look at our rideshare business, it covered our overhead less about 100 million, so the rideshare business itself is turning quite profitable and we believe the profits of the rideshare business will not only grow topline, but bottomline as well, and there are other businesses, eats, autonomous freight, etc. 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 Fund Investments in other areas. Emily still, there are execution issues. You just had your biggest loss, 5. 2 billion. The stock has been trading below its ipo price more often than not, you have hiring freezes on various teams. You have fired some of your top hires. You said you believe uber can be profitable, but how confident and how quickly can uber be profitable . How confident are you uber can be profitable and how quickly . Dara i am very confident. The losses we reported was a 5 billion dollar loss from an accounting perspective. If you live in the accounting world, that is a big loss. 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. But you are absolutely right. None of this is going to be easy. All of this will take excellent execution from all of our teams, technology, et cetera, and we will demand our employees do more with less, and to execute incredibly effectively in order for us to grow that topline and bottomline. Emily is pricing the main lever you pull to profitability or are there other drivers . Dara scale. Scale. It is getting big when you have over one billion rides a quarter and youve got trip a yearly basis. We think we can use technology to be more efficient. For example, instead of emailing a Call Center Agent or calling a Call Center Agent if you have issues, you can do it in the app. These are Technology Innovations that allow customers to have a better experience and at the same time, they bring down costs, so the combination of growing topline over 30 , Technology Innovation to delight the customer and take costs down at the same time, and good oldfashioned efficiency, making sure costs dont grow as fast as revenue. All of those together give you a formula for profitability. Emily coming up, more of my exclusive conversation with uber ceo Dara Khosrowshahi. He weighs in on trade secret theft charges against an exemployee, next. Emily earlier this week, a former uber engineer Anthony Levandowski pled not guilty to charges of stealing selfdriving technology from Googles Waymo unit. The 33 count indictment adds a new criminal chapter to the saga. This is one of many legacies that Dara Khosrowshahi inherited when he took the top job. I asked him if he still feels the weight of previous leadership. Dara you need different kinds of management for different times in the development of a company. Listen, every management has their faults. Every my faults and Management Team has their faults, but the fact is, 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 up for the job. While they made their mistakes, the fact is, they built a great brand that had weaknesses, but has incredible strengths. It is my job to take it to the next level. Emily Anthony Levandowski, the guy who ran the trucking business that uber bought was just charged with stealing selfdriving technology, from google. Stealing trade secrets. What do you make of those charges . Dara um, i wasnt here when we 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, did not make it over to our company. That was our responsibility, and we were incredibly diligent in making sure that we were not guilty of anything that could be nefarious one way or the other. We think when you build come youve got to build the right way. Anthony is an incredibly talented person. It did not work out, but we did the right thing within these walls. Emily the person who was here and spearheaded that acquisition which might cost uber 100 million and might cost credibility, travis kalanick. I asked you this and have to ask it again, do you question his position on the board . Dara i think that i am going to live in the here and now. Travis has an incredible amount of historical knowledge about 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 . Dara i talked to him usually during board meetings and offline. Emily he is on the board for now . Dara he is. Hes on the board now and he will be on the board tomorrow. Emily lets talk about the future. To those who say uber is a ridesharing and food delivery company, what is the next big idea . Dara i think the ideas we have right now in this building are plenty of big ideas. Weve got ridesharing, food delivery, micro mobility, weve got autonomous, freight revolutionizing how truckers move around and how shippers ship product all over the world. We have elevate, as well. We have enormous ideas, and now is execution time. Emily where is the technological innovation happening at uber . Dara it is happening all over. What is unique about our business is we are a combination of the digital, physical, and the two coming together in unique ways. We have interesting Machine Learning algorithms looking at supply and demand live supply and demand in a city, what riders are looking 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 and the pricing we have is unique. We continue to innovate there, and we innovate in different spots, such as elevate, as to how we can bring together different modes of transportation and tie them together. Walking, driving, helicopter now to jfk. Emily you are in charge of not just visualizing the future of transportation, but trying to get there and create that future. When you look into the future, what does the future of transportation look like . Obviously you have google, tesla, traditional automakers, flying cars, and helicopters how will this come together and be different . Dara we think we can bring it together. I believe we can have that singular app, where when you wake up, anyway you want to get from point a to point b, we can give you information that is relevant to you with live pricing, et cetera. We have mass transit in the app. We will tell you mass transit, you can take the subway, a bus, and uber, and you can take an elevate, as well. We are uniquely positioned as a company to have all that information together, and we can do the same thing for transportation, local commerce, restaurants, which are only the beginning, 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 of course, the future of uber eats. That is next. This is bloomberg. Emily this is bloomberg technology. I am emily chang. Earlier in the show, we brought you the two parts of my First E