Helping to build houses for habitat for humanity. The 92yearold carter was dehydrated after working at a construction site. Global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. I am alisa parenti, and this is bloomberg. Emily i am emily chang and this is bloomberg technology. Uber hits reverse on russia and gives the driver seat to a rival. Second retreat from a major market. Doubling down on vr with a new headset and price tag. How the hardware stacks up against industry leaders. Under the gop unveils the new health care replacement. First, to our lead. Uber is handing over the keys to its business in russia. The u. S. Based ridesharing giant is teaming up with what is known as the google of russia. Ofwill take more than 1 3 the stake in the venture, valued at 7 million. It is a second retreat from a major market for uber. Last year they left china in exchange for a 17. 5 stake from a rival. This, after losing money from its competitor. Have Caroline Hyde from london, David Kirkpatrick, ceo of techonomy. Had many tech heavyweights at their annual conference. And eric newcomer. How did this deal go down . In the worksbeen for a while back when Travis Kalanick and Emile Michael were still working in operational roles of the company. Luber has been negotiating this for a while. I think it was clear they were not going to have the lead position. Two to it is basically a one ratio. About 500 million for uber. Huber was just behind here. They got a big stake of this negotiated new company. It was a good deal in a market they were not going to win. Ofy were losing in excess 115 million. The google ofis russia, they have mail, music, video. Why did uber decide to wave the white flag . The taxi was too successful with a two to one ratio for bookings. The taxi was toothey were wille cash to diversify. They may be dependent on search. Look at the bloomberg, you can see 3 of revenue is coming from taxis. Diversifyrying to themselves away from the 88 they get from search. All of this shows that once again, competitive terriers to entry are not that high for these businesses. 2011, only got in in separate from the overall parent business in 2015, called yandex taxi. They can throw money at the situation. Pay due toing to more tax rolls. They are entering russia, just like they did china. David if you think about the math, they are getting 27 of a 3 million 3 billion business, which is more than they invested. That is not such a terrible outcome. Caroline has is entirely right to do what were really seeing more and more is that ride hailing, despite hubers strength is not a winner take all business. Therefore, they will have to strategically choose their market. This is a country where a nonrussian country would have a hard time ever dominating. I do not think it would have been allowed. Emily eric come up uber is at a great eric, uber is that a great period of instability, with their loss of Travis Kalanick. There is a piece out today that suggests a kinder, gentler uber may be in the future. What do you think the future holds . Will we see more retreats like this . Learning to be kinder and gentler will be a learned skill, take a little time. In terms of moving away from markets, there are investors that would like to see luber uber be the aggressor in the deal, so there is only a Single Player market. It is exactly right that we are learning the two players, at least as long as there is an abundance of capital, have been able to operate in many of these markets. It seems the only way to get a Single Player market is these negotiated truce is truces where uber takes one. I would not be surprised to see more deals in india and southeast asia, going forward. Emily what about europe, caroline . It is not all rosy there. New world a new administrations. Caroline precisely. There has been an aggressive push in germany and france by uber. There was a lot of backlash. When i was living in berlin, you cannot access uber via the app. You could only use licensed taxis. This is rearing its head in russia. They are looking at whether they should only be using licensed taxis rather than normal drivers. Paris, we had donald trump and macron there. Are they focused on u. S. Tech advances and allowing uber to survive in their countries . That is something the lights of yandex taxi will come across. Together worth 3. 7 billion. We saw them yandex share price spike today. Havenalysts themselves seen a valuation of their taxi units. Emily meanwhile, david, the u. S. Times out with names in the ceofor the potential uber job, including the ceo of youtube and a few seasons executives that are available. Former yahoo ceo marissa mayer, america,o of virgin what do you make of these names . David i saw marissa in london the day after Travis Kalanick stepped down. I said, you should take that job. You would be perfect. She did not show any enthusiasm for it. Investor inbeen an over. She knows the Company Super well. I believe she is friends with kalanick and has followed its progress closely. It would not surprise me if they went after her. I think she is a terrific manager. Her leadership of the yahoo was a tough, tough job. That is one i would vote for. Marissa mayer not one to shy away from a challenge. She has spoken positively about Travis Kalanick in the past. Eric ericw newcomer is chasing down. What do you know . Eric i am skeptical that marissa will be the next ceo of uber. Think she ist seriously in the mix. She came out and defended travis very publicly and a lot of people at uber were wondering what was going on, it seemed tone deaf to the situation. A lot of the names we are hearing are people without real gigs. I think it will take some time for uber to land on that. Theyre keeping a pretty secret and they are looking at top executives in airlines, that type of global operation. I think that is where we are going to look. It is possible there is a tech exec. There are a lot of jobs available, ceo, cfo, chairperson we will get a mix of characters. We will have to wait. It is very much a live process. Emily a name you floated was former disney ceo tom stagg. We will continue to watch your reporting, eric newcomer. Caroline hyde in london, and ceo David Kirkpatrick, you are sticking with me. Snape reversed recent losses, rising 3 and thursdays lesson. There was a 22 price target. And five cellolds ratings for snap shares. Coming up, facebook has big plans to make its oculus headset a massmarket phenomenon. But can it happen . This is bloomberg. Emily going now to facebook, reinvesting into its oculus headset to make it a standout device in the vr industry. Later in the year, they will unveil a cheaper and wireless version of the heads that. But will it catch on . Gurman. O bring in mark mark, you broke this story. What is facebook working on . Mark they are mckee they are making a big push in vr with the oculus rift. But they want to go after the sweet spot. A 1000 pc. Ity is but this would be a device like an iphone, ipod, apple watch. You can take it out of the box, hook it up to wifi, and use it. It is completely wireless. At 200, they are expecting to sell a lot of these. Emily facebook has been troubled. The cofounder has left, another has moved into a different position. They brought in someone from xiaomi to run it. Different company than it was one or two years ago. He really led the android efforts at google. He understands the wants of consumers and how important it is to not only have a Resource Division and do projects longerterm, but understand how critical it is to turn out Consumer Products that people will run to the stores to buy every holiday season, just like people want to buy the latest Samsung Phone or ipad. They hired people from apple, highlevel executives, Michael Hillman they hired earlier this year to run Hardware Components of the company. Clearly there is a seachange going on it oculus. Zuckerbergs mark farbet on vr was bold but from a sure thing. Is this a market oculus can dominate . David dominate is to be proven. Mark zuckerberg is known for longterm bets and longterm thinking. I am sure in his mind, there is no fundamental disappointment so far. He believes social will be virtual. In other words, we will be facebookesque. Demonstrating that in their conferences. He knows it is inevitable. Somebody will do it, therefore he thinks facebook have to do it. There are unlimited resources within facebook for making this work. Was a huge step forward. To have someone of that quality shows facebook is becoming and other diversified tech conglomerate. Emily mark, how does this oculus headset compared to others on the market, which have been out there longer . Options,re are a few there is the samsung. You have to plug the galaxy smartphone into it, and it is cheap. The rift is 400 but does not show the price of a gaming pc it needs to connect to in order to stream the games. There are cheaper players for under 100 dollars. There is one from google, you can put a google axle pixel in there. Being is going after allinclusive at a low cost. Emily hugo barra came from xiaomi. How does xiaomi fit in . Couplehey joined a months ago, and oculus in discussions for some time with xiaomi in order to produce this. Not a Contract Manufacturing company, they have a network of manufacturers for outsourcing and development of their own smartphones. Xiaomik is in talks with on producing this device. Facebook does not have strong branding in china and other parts of asia. What they are going to do is kill two birds with one stone. Not only is a partnership with show going to result in the manufacturing, but the version of the device in china will have that xiaomi brand and software. Whereas outside china, it will be singularly and oculus part product. David it is all very impressive. Facebook has determined they will get there eventually. This is going to be as powerful as the highend oculus device. What are people going to use it for . There was not a killer app outside of gaming, is there . Mark i agree, but we have a stepping stone, something tangible. Towardhas been working an allinclusive device with the power of the vr for extraordinary gaming. It does not need to connect to a highpowered, expensive pc. Six months down the road is as close as we will get. Have is people being able to use it vr. The fact we will see v are in the environment will spur development from other players and great a new gold rush for app developers, just like there is a gold rush of apps on the iphone and google pixel. I sort of agree that there is no killer app, but i can imagine, people may want to pull this out on an airplane rather than their phone or tablets. Emily interesting. Mark gurman, our Consumer Tech reporter. And thank you, David Kirkpatrick of techonomy, you are staying with me. The latest read on apples iphone earnings. This is bloomberg. Emily apples next edition of iphone is one of the most anticipated releases of the year for both consumers and suppliers, counting on the upcoming device to fuel the growth of smartphone shipments. Customersir biggest accounting for 17 of their revenue. Peter ahlstrom, david peter, what is what we are seeing from taiwan a semiconductor about how things are going at apple . Peter it is interesting, there were a couple companies in asia closely watched as proxies for apple. Manage apple products. They listed earnings today a little light for the second quarter, which is not that bad of a deal. A slowistorically quarter. But what people are looking for is the forecast for the rest of the year that gives insight into what kind of demand they are expecting for the next iphone, the highly anticipated next iphone. That forecast came in light in terms of estimates. It was a little surprise, a little negative for tsmc. Taiwan has a competitive business, margins are slim to slimmer. What is your take . The thing about taiwan semiconductor, they have chased down technology so their always at the cutting edge. The seven nanometer chips and a 10 billion Capital Investment this year amazes me. It is more than a quarters revenue. I do not know of other companies that invest more than one quarter revenue and capital, it is extremely rare. It shows their own confidence in their business, despite what might happen with the iphone has got to be strong. They have shown that confidence over decades. Fewer companies can spend that kind of money and still be in this business. They are a keeper. Emily peter, there is another interesting development. The founder of taiwan semiconductor, his fortune is everexpanding. Tsmcs stock price has been on a roll. He started the company in 1987 with help from the taiwanese government, as david mentioned. Massive investments in chip plants has been a good is this, especially as smartphone demand has taken off. 17 ,year, with shares of he became a billionaire based on his estate. He has done well, and they are hoping it will continue from here. Emily when talking to other wepliers in china, what have been able to glean about the outlook for the next iphone . Peter when you look at the key players, tsmc is one of them. Another has shares on a tear. Theyre sounding optimistic about what is going to happen in the future. The overall challenge is, the smart phone market has gone from fast growth to slowing growth and shrinking in some quarters. There are concerns about whether there will be ongoing strong demand. The forecast of this year is for growth of 3 . We will see if they can deliver. Honghai is another good proxy of demand for apple. Emily iphone 8 come are you excited . David i think so. They have to deliver something exciting or they will feel it bad. They will impress us, i am confident they will. Emily David Kirkpatrick, ceo of techonomy, you are sticking with me. Peter elstrom, thank you for sticking by. Leadership in washington attempt to repeal and replace obamacare. With someone trying to disrupt the health care industry. If you like bloomberg news, check us out on the radio. You can check us out on sirius xm. This is bloomberg. So we need tablets installed. With the menu app ready to roll. In 12 weeks. Yeah. The world of fast food is being changed by faster networks. Data, applications, customer experience. Which is why comcast business delivers Consistent Network Performance and speed across all your locations. Fast connections everywhere. Thats how you outmaneuver. So new touch screens. And biometrics. In 574 branches. All done by. Yesterday. Banks arent just undergoing a face lift. Theyre undergoing a transformation. A data fueled, security driven shift in applications and customer experience. Which is why comcast business delivers Consistent Network Performance and speed across all your locations. Hello, mr. Deets. Every Branch Running like headquarters. Thats how you outmaneuver. Washington and you are watching bloomberg technology. Rex tillerson has wrapped up his tour of the persian gulf, where he has been trying to mitigate the crisis between qatar and focusing onighbors, written documents to alleviate issues. Theresa mays brexit draft law she unveiled today suffered furious backlash from scotland and wales. It will transfer british laws onto the statute book. But leaders of the scottish and Welsh Government says it failed to give them sufficient power theirocks the vote in national legislators. Turkey has agreed to pay 2. 5 billion to acquire russias most advanced missile an aboutface from a Nato Alliance that has angered turkey from the west. A will allow turkey to deploy Missile System anywhere in the country. Peaces jailed Nobel Liu Xiaobo died from cancer. Global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. Parenti. A this is bloomberg. It is just after 5 30 p. M. Here in washington. Already 7 30 a. M. Friday here in sydney. We are joined by paul allen. Another record for the dow, though not Much Movement for stocks here in the state. Right, it is translating to a mixed outlook for the asiapacific. Nikkei futures and chicago futures higher as we wait on Industrial Production out of japan. Retailing inn fast japan, recording thirdquarter earnings after the close. Third quarter profit missing estimates at 22. 9 billion. It would have been worse, if not qlos expansion, mitigating sluggish growth in japan. He in australia, asx futures pointing down by nine points. Keep an eye on the miners today. Chinese iron ore imports hit a acord, expected to surpass one billion tons. Watch for the national were conference in china. It happens once every five years. We might get a few clues on who the next pboc governor may be. More on bloomberg technology, next. Is bloomberg technology, i am emily chang. Leader mitchty mcconnell has released a revised Republican Health care bill. He is seeking conservative support by letting insurers sell low premium policies with minimal coverage. The bill is aimed at repealing much of president obamas health care law. Joining us from new york on how it may impact Insurance Companies as a whole, mario schlosser. We will talk about that any moment. First, there is a huge debate and a lot about the future of health care in this country. What does that mean for you . Mario i come back to First Principles when i think about this. Happen, nobodyo would be suicidal enough and crazy enough to throw millions of people individually insured back into the market without insurance. I should not call the playbyplay what will happen in the senate and house the next few months, but i do think we will get to a market that is stable. Worked for the future and the future as i think it needs to be in u. S. Health care. Consumers have become more powerful to control what ill scare they want and demand that are systems Better Outcomes from the system. Uniquely engage people on onir health care with an eye low