That awaits. Executives andv. Executives and v. C. s will meet to discuss whether the system for ipos is working. Could there be an easier solution . But first, to our top story. Facebook Ceo Mark Zuckerberg is willing to take on the government if Elizabeth Warren wins the presidency. About a july verge meeting with employees. Toif Elizabeth Warren wants break up the company, i expect we will win the legal challenge, does that suck for us . Yes, i do not want the have a major lawsuit against our own government. That is not the position you want to be in. We care about our country and went to work with our government and do good things, but at the end of the day, if someone is going to try to threaten Something Like that, you go to the mat and fight. Taylor zuckerberg also spoke on other topics, including their cryptocurrency, libra, and the competition with the chinese social app tiktok. And there is a lobbying group that represents Big Tech Companies like facebook and google, a guest, and with me is sarah frier, who covers facebook for us. So first, sarah, give us your take on what zuckerberg is saying, that they are ready to fight. If you look at the way they are going, they had a fine from the ftc this year, which was a slap on the wrist in many respects. He has had a pretty good track record of coming up against the u. S. Government and winning, so it is not surprising to me that he thinks it would totally also, in his words, but a little surprising to be declaring victory so soon before it happens. Taylor yes. Let me bring you in here. From your perspective, how concerned are you about Companies Like facebook and big tech when they think about someone like Elizabeth Warren getting the presidency. Thank you for having me. What you are seeing is Mark Zuckerberg being very transparent at excited about what is going on. There are a lot of businesses, not just in the tech sector but across the spectrum that are worried about the notion of just being broken up because they are big, and what you are seeing here today is Mark Zuckerberg talking about the rule of law and the fact that under the existing rule of law, the government just does not have a case to bring against facebook. Carl, how prepared or not prepared are these companies to take on what could be a serious legal challenge . Carl i think all of these businesses have looked back over the past decade and have seen what has gone on, what has transpired, and they are fired up, ready for enforcement action against them, and they have got great legal standing and great attorneys, and more importantly, they have the rule of law on their side. Taylor sarah, it is really broughting that carl this up. What about being transparent on facebook, saying this is the whole thing and posting it on facebook . He has no choice. Zuckerberg has had a lot of gas over the past years and has been asked to testify by many governments and has said no. He testified in the u. S. And europe, but there have been a lot of questions about whether he will come to the u. K. , whether he will go again to togress, and this is a way say, look, this is the way i am when i am raw, when i am not being turned into memes, in front of the camera, in front of congressional testimony. This is how he is, and you can tell he is much more natural this way. He does it every week. They sent it to all of the employees. They could watch it over the weekend. It is a tradition there. It is very interesting to see him in his element. Sort of ad is this rally of the troops, if you will, or does this hurt morale . A weeklygs that are on basis are exposed . Sarah this is the first time i can remember that a full audio transcript has been released, so it does speak to the tension within the employee ranks, that a lot of employees are not sure if they are working for a company that is on the right side of history, and they are questioning him. You see in the transcript that they ask him about his voting power several times, and some challenges authority at the top of facebook, and he responds by saying, by referring to something that happened in 2006, as the reason why he has authority, the fact that he turned down a 1 billion acquisition offer from yahoo , so it is very interesting to see how he goes up against those questions over and over. To be fair, iarl, want to bring in a tweet from senator Elizabeth Warren, and it is that it is a corrupt system that allows facebook to engage in corrupt practices and to protect what do you think of Elizabeth Warrens response . Carl there is a lot to unpack in that question. Whether it is anticompetitive, it is hard to say there is no competition when you see Mark Zuckerberg expressing internally that they are worried about new market entrants, like tiktok. Then they had the settlement with the ftc, and as i said before, they were lucky to even get that out of them, and in respect to protecting our democracy, we are here on bloomberg tv. I do not think Michael Bloomberg is going to use this network to change the outcome of the election any more than i think Mark Zuckerberg would use facebook, so i just think that senator warren is throwing stuff at facebook, and maybe that helps her in the polls. Taylor carl, i want to bring up another update that the verge obtained. Take a listen. Amazon a google or it does not make election interference less likely. It makes it more likely. Your reaction to zuckerberg saying that breaking up big tech, whether it be amazon, facebook, or google, does not solve the problem, which makes it harder to regulate, because instead of one big company, it is 20 companies. Is not about regulating 20 companies. There are many agencies that have oversight over the tech industry, but it is also the notion of having a centralized place where platforms can figure out what content is spam, what content are bots, what content is coming from overseas, and then in a more comprehensive fashion address those problems, so that is what i think mark is talking about here. Since facebook is large, they do have the financial backing and ability to see many different routes of attack so they can protect american interests and american democracy. Sarah, talk about facebooks argument forget i have heard this from experts. A buzzfeedsebook argument. I have heard this from experts. Sarah i have heard this over and over. I just do not buy it. Certainly, you can say if youre finding this problem on instagram, you might find it on messenger, too, and you might find it on whatsapp, but there are collaborations they have done with companies outside of facebook. They take down terrorist content, and they share this among themselves. They do the same thing with Child Exploitation content. All of the companies can take it down it once, so if the companies are broken up, you could easily have that same kind of arrangement, where they all share information broadly. Quickly, toh, competition, because carl very smartly brought it competition, and facebook talking about tiktok, and facebook is responding to the competition by developing, i believe, lasso. Did we learn anything more about that product . Sarah it is really interesting that zuckerberg wants to push tokt in countries where tik is not that big and also that he as instagram explore means instagram stories, and that he will try to shift instagram in that direction. He has tried that many times over the years, copying products, trying to push them out to a similar user base, but we really have not seen that really take hold except for with instagram stories, so it is always a shot in the dark. We will see if it works, but it is very interesting that tiktok is the new existential threat for facebook. Taylor carl and sarah, thank you both for joining me. Now, sony has cut the price of its playstation now price in half, and this now a flex the increasing competition online. Sony also said and this now demonstrate the increasing competition online. Sony is the Industry Leader in video games. And coming up, a favorite of 21 facings, forever bankruptcy. We discussed, next. This is bloomberg. Millennial mainstay forever 21 has filed for bankruptcy, saying it obtained millions in financing to help it stay afloat, but the bankruptcy shows another sign of the punishing pressures of the broader retail a pop looks retail apocalypse facing brick and mortar chains. A colonist joins me from washington. When you take a look at a columnist joins me from washington. When you look at this and their Online Retail presence that is certainly a part of what happened here. They said ecommerce comprised 16 of their sales in the court filing, and that would be a lower penetration than we see for the apparel business overall, and you just do not have to look that far to see the companies that are sort of eating forever 21s lunch in this space. I think fashion nova is a good one. They were an early pioneer that was building a brand that was tailored from instagram from the start, and i think that forever 21 has suffered at the hands of brands like that. Taylor you mentioned instagram. Talk to me. How has this changed the way these fashion retailers can or cannot survive . Sarah a lot of these retailers have had to partner with influencers, and they have gotten with the huge names like sell theirer to products, and instagram is also rolling out features like shop a bowl posts, where all of the brands have to figure out ts, were all of the brands have to figure out how to do it. Where all of the brands have to figure out how to do it. It is really important. Taylor we know the story of forever 21, a 15 percent penetration rate online in this day and age does not cut it, and you have the ecommerce subscription models. The list goes on, really disrupting this market. Aat is the difference with subscriptionbased model . What are they doing to disrupt the market . Sarah one of them is really a date at play, trying to amass all of the data on their really a data play, trying to amass all of the data. They are not thinking of merchandising as an art but as a real science, so thinking of everything from the measurement of a sleeve to the aesthetic of a particular garment. All of that is based on feedback they are getting from customers, so the theory is they are going to be able to manage their inventory in a smarter way and just create a more pleasing experience for customers over the long haul. Fastshion has fashion has been going with letting 1000 flowers bloom type of a model. Some of these are going to be hits, and some are going to be mrs. , so are going to be misses, so they are bringing new things to the game. Theme, is this a general that you have to be, like you said, more sciencebased, more data based, in order to succeed in this market . Forever 21 over expanded their stores too quickly. They had stores that were huge, 35,000 square feet, and maybe they only needed to be 10,000 square feet, so there are some things specific to the decisions they made, but there is no doubt that data is going to play a huge role on merchandising decisions and more in your stores and website, and we are still at this place right now where retailers have a lot of data, and they do not know how to harness it, and the ones who figure out how to use it and make it actionable, those are going to be the ones that win. Science,ata and finally entering the retail world. Sarah, thank you for joining me. Coming up, uber has been missing from brazils favelas for years. Ridersy keep drivers and safe . Next. This is bloomberg. In brazil, sao paulo is market, but for years, they have avoided the biggest region, the favelas, for the safety of riders and passengers, but now it is making another attempt to bring rideshare back there, and they have a new program to keep people safe. To tell me about it down in sao paulo, our reporter is standing by. She wrote about this in the latest issue of bloomberg businessweek. Thank you for joining me, and for the classic bloomberg size and scope, tell me of the importance of brazil and sao paulo to uber . Reporter actually, sao paulo is brazils largest market, and they also told me that two other large cities, mexico city and rio de janeiro, are among their top five, so it is a very significant market for uber. Taylor fabiola, this is not ubers first attempt to go into the favelas. Tell me about the difference with years ago. In 2014, they were very aggressive, expanding all over the city, and a couple of years later, a wave of violence against their drivers led to at uber does uber does not confirm those numbers. They are pretty scary, right . And this time around, they decided to partner with local entities that Foster Development inside the poor neighborhoods, and assess the whole region, and design pickup points to make sure drivers and riders are safer around the favelas and not necessarily getting into sidestreets, areas that are poorly lighted. Taylor is that strategy working . Do drivers and riders feel safe . To the ones iding spoke to, yes, they feel safer, including those inside these communities, and there are large communities in brazil. At least 10 Million People live in the favelas, and they circle around these communities, 20 billion a year, taylor, to have an idea, so it is an important market, and it is growing pretty fast. Last week, just last week, there was a renewed wave of violence against uber drivers, not just well, soother apps as they have to decide if this is the right approach or not, but it seems to be working well. Taylor one of the other approaches you were discussing was working with Development Authorities that are local and other people on the ground. Is that how they were accepted back in the favelas . Is that the right strategy this time . They were much more careful this time, talking to the residents, and there is a theyfic favela, and sponsored soccer matches and events. They were in depth in the community to understand their needs, and they also had a fair to help get more drivers from inside this community, so the community is pretty happy. I spoke to a person who has a stand at the pickup point that uber installed, and it is a physical pickup spot with wifi and benches, something i have not seen in other areas in sao paulo, and he said his business is doing pretty well. His pickup point. Riders told me it is much easier to get an uber in a favela. The groundzing on reporting. Moura, joining me from sao paulo. Shares of apple closed on tuesday within striking distance of record levels, with the new Iphone Models seeing strong demand. Ceo tim cook said sales of the very strongw a start, and he could not be happier with the launch. Recordclosed below the from one year ago. Ad there was an upgrade of trio of Semi Conductor stocks, with demand. And Microchip Technology and a Semiconductor Company were raised to sector overweight. It is said that for the first time in several quarters, we are not seeing demand trends getting worse. Analysts have raised the price target of snap from 11 a share to 14 a share, talking about strong trends in the quarter. That while said there has been concerned about a recent spike in users, there is the viral success of their filters would not be sustained, but it does appear that snap has maintained a firm grasp on the users and has grown its base even further. And coming up, a tough year. Toicon investors are meeting look at redesigning the whole process. This is bloomberg. Everyone uses their phone differently. Thats why Xfinity Mobile lets you design your own data. You can share 1, 3, or 10 gigs of data between lines, mix in lines of unlimited, and switch it up at any time. All with millions of secure wifi hotspots and the best lte everywhere else. Its a different kind of wireless network, designed to save you money. Switch and save up to 400 a year on your wireless bill. Plus, get 250 back when you buy an eligible phone. Thats simple. Easy. Awesome. Call, click, or visit a store today. This is bloomberg technology. Im taylor riggs. Silicon valley is looking to disrupt the ipo business. Areenture capitalists an meeting tuesday to discuss whether the system for Public Offering is still working, after a year of many of the biggest deals slumped. To discuss, i am joined by olivia carville. Let me start with you, what are we looking at during the tech ipo summit going on today . Theres a lot going on with the direct listing model in particular. We have had two very big ones, spotify last year and then slack this year. Slack went smoothly and airbnb is reporting one as well. This is a model becoming much more commonplace so who do we have at the event today . Not only Venture Capitalists but hundreds of privately Held Companies and executives invited to consider this model. Lawyers as well as Market Makers , president of the new york Stock Exchange, a lot of people able to make this happen. Taylor what is the issue at stake because i cannot wrap my head around it . Overvaluation, the fact a lot of the ipos have gotten well . What are they still concerned about . Sonali the Venture Capital community for a very long time have not liked the fact there is an ipo pot, which means there is money left in the table. This is not the same for everybody. If you are a major investor and invited to the ipo, you like that you were brought in early. The Venture Capitalists like the direct listing model because presumably it is smoother into the ipo. The market sets the price rather than investors. Right now if we think about what ritterening, we have jay that did a lot of research about what they call a systematic mispricing of the ipo model. Morgan0 on average, stanley and jp morgan. Taylor olivia, talk to me about the differences between the ipo market and direct listing. If you are a company that needs to raise new money, you probably need an ipo because a direct listing does not give you new cash, right . Olivia correct. The difference with a company like airbnb, a private valuation of 41 billion. Last quarter, more than 1 billion. They dont actually need to raise any addition