Uber ceo says they have plans. And digital fallout after democratic president ial candidate Elizabeth Warren posted a deliberately false ad on facebook. Separating fact from fiction. But first, to our top story. Is considering handing over control to softbank. They are convinced they can turn around the once highflying started. Wework is also weighing financing led by jp morgan. To discuss, i am joined by my , and, ellen, let me start with you. I want to separate the different deals. First, softbank taking control. What can softbank do that the other coceos cannot do . Ellen this discussion going on softbank, itk and is, look, the outlook is not good. More. Interested in doing and if they did take a larger stay, maybe that could change the company, so i think the discussions on the table are about mid to longterm plans, trying to get expenses under control, all of the things that wework has been criticized of. If something were to come in and take control, do we know how much money they would invest, loan, put up, whatever the sort of term is here, to get wework to 2020 . All of that is pretty much still in flux, and it comes down to the jp morgan debt package and the situation with softbank, who can get everything together quick enough for wework, because at the end of the day, what it needs is cash. We know there are talks for a package that could be about 5 billion, and a lot of it is going to come down to how much softbank can pull together and if it can do that faster than what the banks are doing. Taylor so, ellen, you heard michelle mentioned that 5 billion deal from jp morgan. Is that a separate issue here, or are those two tied together . Though they are different plans, there could be some overlap, so it sounds like the board of directors and other people are meeting this week. We do not know exactly when, but it sounds like discussions are ongoing, and we expect to hear more about it, maybe in the next few days. With things on the table, there are going to be decisions coming up. Taylor michelle, i what to show you a chart that we made for our toomberg audience i want show you a chart that we made for our bloomberg audience, having a pretty good day, ents on the90, 91 c dollar. What is the appetite right now for a junk deal . Michelle it is interesting. If you look at that graph or chart, the bonds are trading at pretty distressed levels amid the turmoil related to the ipo wework possibly having assumed than expected cash crunch. Did rally,e bonds and that actually helped their borrowing costs, but it is still to be seen how much appetite there is from Bond Investors for a deal like this. You know, going into the end of the year, sometimes it is hard to get risky deals like this in a highyield bond market done, unless there are some pretty lucrative or sweetened terms offered to them. Taylor and, ellen, i want to take a look at another chart, which shows this about 10 la, some to uber and tes other Risky Companies we talk about, and on friday, we talked about terms of the conditions, 25 plus libor. Any sense we do not have the appetite for the yield quest or any sense they are now commanding a 10 yield any sense that we do not have appetite for the yield . Any sense about where they are commanding a 10 yield . Ellen the problem could be next month if they do not get money. This is a company that spends a lot and doesnt have control over expenses. We have seen them trying to cut certain parts of their business, layoffs, just trying to get expenses under control. Colleaguechelle, our at bloomberg, tim, pretty much said that the damage to softbank again wouldp wework be much more than any billion dollar investment. What is the damage to softbank if they stepped up to the plate here . Michelle it is an interesting opinion, but at the end of the day, softbank has already put a lot of money into this company, so they will not just walk away. Probably, you would have to weigh the hit if they did that with the amount of money theyre going to have to put into help turn wework around. It is kind of the same story with jp morgan. They have already put a lot of money in and have taken a reputational hit, and at this point, they may have to bite the bullet and help turn the company around, putting good money after other money. The companye does stand . I made all of the background noise, do they continue to push forward, selloff investments, save cash . What do they do in the coming weeks as the rest of this gets had out . Ellen it seems like last week, they were going to close in private elementary school, theow, and they are selling gulfstream jet. There were some reports that they were maybe freezing the opening of new locations. Reallye is that they are hunkering down and trying to get expenses under control while they figure out how to move forward, and i think any major cut they are likely to make, as the coceos told staff, they are likely to cut a lot of jobs starting this month, so very soon, just trying to get the core business under control. Ellor that was bloombergs en huet and michelle davis. Thatberg has learned investors including softbank and has a company that is valued at 16 billion, a top Online Financial Services firm. And coming up, this week starts earnings season. What you need to look at. This is bloomberg. Earnings season is underway with banks reporting throughout the week, including citigroup and wells fargo reporting tuesday, Morgan Stanley thursday. Here with a look at what to watch when it comes to technology is our bloomberg reporter, so talk to me first. What are the banks tec hnological priorities here . Reporter you have banks spending the most money on technology, jp morgan and bank of america each spending more than 10 million, even when we see them keeping a big lid on costs. Why are they spending the most money . Because they are the ones going after the millennial consumer, so you can see this really doubling down, while the other investment banks will focus more on electronic trading, for example. Technology, so with what are we looking to hear from them specifically in terms of hiring, Digital Payments, all of their technological advances . Sonali sure. We have been hearing that banks are hiring more coders, and you can see in this chart that Digital Banking is the number one thing that people are looking at. With that said, i would not get too scared, because they still have a lot of branch networks, and something not high on the list, watching a relatively small percentage on what people are looking at in terms of hiring and expenditures here, and the same with biometrics and you hearn, even though a lot about Artificial Intelligence taking over other parts of the industry. Taylor and when you see Digital Banking there, 53 percent, a lot of these come from here to 53 , a lot of these come from peer to peer. What about zell . Figuresyou can see the in their Earnings Report that those figures are a Straight Arrow upward, and it is pretty significant in exponential growth, so it is pretty big, including not necessarily for ande but Digital Payments, bank of america does highlight its relationship with zelle, and both banks highlight this with younger customers in particular. Taylor as revenue remains uncertain, in such a volatile environment, do the analysts you speak to think it is a good idea that these banks are continuing to invest in technology, increasing investments in that space, even though Topline Revenue growth can be elusive at times . Is true. T investors and others know that facebook is a threat, so they like to see these banks investing more in technology to prepare themselves for the future, because the traditional business lines are really pressured. If you look at trading, there has been pressure all year. Loan growth is growing, but rates are low, and people are going to want to see these banks transition into a new era while also attracting new customers in a competitive environment. A lot of investors compare that to the chinese counterparts who have seemed to crack the code in terms of Digital Payments and attracting people to more online methods. Taylor and is it just the big banks, or what banks are poised to outperform, given the transition to being more of an Online Company as opposed to a traditional Banking Company . Visas, mastercards, the same ones we were talking about, so you can see them betting on technology and winning. A lot of them are investing and not seeing a lot of growth, but payments, if you look at the stock chart, it cannot be denied that they are winning in the investment race. Investors are going to things that can be transacted online. Taylor the banks and the increase over into the technology space. That is bloombergs sonali basak. And i want to transition to uber , this eeo firing about 350 employees, hitting a handful of about 350 firing employees, hitting a handful of areas. Joining me to discuss is our Bloomberg Technology reporter who covers the company for me. So, first, start with the 350 that we heard about today. What do we know . Reporter the way it was described in a company email, dara said this would be the last in a wave of cuts that he promised last spring, so as you mention, they had some cuts affecting marketing, product engineering, and now with this, ts andends to uber ea autonomous driving, so it increases the number of people laid off to around 12 hundred or so. Investors seem to like that, and the stock was trading down from its ipo in may and bumped up a little bit, about 4 , today. Taylor you mentioned this was the last wave. We also had july and september. Heart of those cuts different from what we got today . Of ate this is part larger strategy that the ceo laid out over this spring. If you were to design uber, what would it look like, and they Went Department by department, and they said, hey, we have to seek profit, and as we have talked about on the show, it did deliver a 5 billion loss during its first quarterly report, not a good look. Your question was how is this different, it is a continuation of what was set in motion back in the spring, and he said this would be the last wave of cuts. Whether there is another want to, who knows . We just know we are able to report and confirm. The 5 billion loss function, on the terminal, we see they are projected to lose 6 billion by the end of this year. Are these cuts enough to offset that, or is it just a step in the right direction . yes, they will not touch the 5 billion or 6 billion, but to be clear, the 5 billion loss reported last quarter, a big chunk of it, three dollars billion, was reported to ipo costs, 3 billion, was related to ipo costs, so looking at how their expenses are going to make sure that they are able to deliver all of the prophet, which, so far, it has not been able to do deliver all of the profit, which, so far, it has not been able to do. No matter what way you look at it, it is not good to have your stock trading below where it ipoed, and there is the larger transformation that dara is trying to do since inheriting this company from its previous ceo and founder, which is not growth at all costs as a mentality. It is a continued growth, but lets take a look at profit. Taylor you mentioned growth. So finally, what does this mean for expansion plans . We have talked about autonomous driving and uber eats. How do they fit into the core ecosystem . All of theross different lines that we outlined before and geographically, about 70 of these cuts were coming from north america, the other 30 spread out more globally because this Company Still needs to and wants to grow. Lizette, thanks for joining me. Coming up, apple is surging on unexpectedly high iphone demand, and then tencent holdings. More on apple and its complicated relationship with china next. This is bloomberg. China may be winding down its fight , withten with games played outside china, they have told reporters about the nba issue. Tensions flared after the general manager of the Houston Rockets tweeted support for hong kong protests. The state run tv network which showing nba games. Meanwhile, apple coming under fire on monday for sending data, including ip addresses, to chinas tencent. This is the latest criticism of how the Company Operates in the worlds most popular nation. Our reporter who covers all things apple for us. Through how this is different from what they were doing before. Reporter to answer your question pretty simply, it is not really any different. This is more of a revelation that has come in light of the last week or two of discussion about the way china and apple had been working together and how apple has been operating, like you said, in the region. This comes down to a feature that is Pretty Simple in practice. Basically, they use google outside of china and tencent in china to figure out if something is malicious to steal your data. As part of that time apple can send ip addresses, which is a way to get your location, to both tencent and google. The question is how big of a concern that is, and that is what people have been talking about this morning and what the issue comes down to. Taylor and how valuable is this data to tgence tencent. Able to gety are location data, it is very valuable because they are known to have strong affiliation with the chinese government, which, here in the u. S. , that is not something people would be fond of, apple providing location data to a governmentaffiliated search engine. It does not appear anyones location data is in danger. This is just a lot of people responding and criticizing apple, following the nba revelations that you so eloquently outlined. Goodr mark, i really story out highlighting the demand for the iphone a really good story out for highlighting the demand for the iphone 11. Is this similar to the comparable model one year ago . 750 is what the iphone ii starts at, but this year, a lot of people are due to upgrade, right . Tends toge consumer upgrade their iphone four years ago, and a few are years ago is years ago wasur s werehe iphone 6 and 6 popular, where they change the screen size. Those are having batteries that are starting to give out. The processors are quite sluggish. They are losing compatibility with ios 13, and it is time to upgrade, and that is this fall, and you are seeing people jumping on these new models. And the street has been really, really bullish on this. Given that we got a potential phase one trade revolution resolution on friday, we know that some tariffs will not go into effect on december 15 any idea if that is also boosting demand if apple does not have to pass on higher costs to the consumer . Mark i dont think so. I do not think consumers are thinking about that. These tariffs, whether or not they were going to go into place or not, but to investors, these tariffs not going into effect, like you said, could give some optimism that the december 15 tariffs also will not go into effect. Obviously, we do not know that, but i do not think that consumers are seeing any impact, with the iphones. Taylor some are really bullish on this also because when you take a look at the average selling price, it also gives some momentum to that average selling price that is so key to earnings. What is the number one thing you want to hear about on earnings on october 30 . I sort of disagree with credit suisse. I think that the esp may go down quite a bit. One thing that is lost with this is still very is it likely to be down yearoveryear, and the asp going down, so we will see, but to answer your question, the most important thing will be the Holiday Quarter q1 for 2020. Bloomberg technologys mark gurman. Is senator Elizabeth Warren going after facebook again, warning of dangers ahead of the 2020 elections. We break it down. This is bloomberg. This is Bloomberg Technology. Im taylor riggs. Democratic president ial hopeful Elizabeth Warren is taking on facebooks political ad rules, and doing it by buying ads on the social network. The democratic senator bought an ad that falsely read breaking news Mark Zuckerberg and facebook just endorsed donald trump. Shes going after facebook for refusing to fact check politician ads. This comes after the Fact Checking policy allowed trumps team sharing ads that showed Vice President biden promised ukraine money for firing a prosecutor. Joining me to discuss it all is sarah frier who covers facebook for us. Eric newcomer, who covers the intersection of tech and politics. On the phone, Iona College Political Science Professor and a senior advisor. Sarah, let me start with you. Talk to us how we got here with this fight between facebook and Elizabeth Warren. Sarah we are looking at this fight about what impact facebook has on the election. Facebook has an algorithm that suddenly can manipulate what we see in their feed. They have these rules that they apply about what can come down. Warren is calling them out by saying by taking no action, they are actually taking action. The funniest thing was facebook responded to this by tweeting sayinginst warren and the fcc does not want broadcasters to discriminate on candidates ads, so we dont want to either. Warren clapped back and said you are making my point. You are not regulated. Taylor we have the tweet showing the fcc, basically what Elizabeth Warren is saying, you are making my point. Is up to you whether you take the money to promote lies. Again, sort of making her point, if you will. Sarah absolutely. What i think what this shows us is the election is going to be about facebook the discussion about the election as much easier to run against facebook than the opposing candidate because facebook does hold a lot of control, subtle or direct controls over what voters will see. Taylor eric, if you take a look at the intersection of tech and now politics, what does this fight showed you from the political angle about how much tension there is between big tech and some of these Democratic Candidates . Eric i agre