And President Trump wants federal agencies to work with social Media Companies to stamp out hate. But first, uber shares continue to fall after sales miss and a 5. 2 billion dollar loss in the second quarter. Much is due to the ipo in may. Cooper is trying to reassure investors, saying losses will come down over the next two years. Why such a dramatic reaction . Eric i think the stock reaction had to do with the revenue mix. If you are going to lose that much money, you have to keep growing. A 5 billion plus net loss is huge. That has to do with the stock tied to the ipo, but uber loses money regularly, although it did beat expectations. Emily are investors generally buying that this is a once in a lifetime of a company fix . Eric that narrative is challenged. I think if they were holy buying that, we would see uber above its ipo price. Analyst remain optimistic about uber. Many have buy ratings for the company, but there is a lot of Short Interest in the stock and there is a lot of skepticism because the Gross Margins are huge and continue to grow somewhat, but will they outgrow the losses . Emily meanwhile, the uber ceo talked about how he believed the competitive environment of ridesharing in the u. S. Is going to start to stabilize. Take a listen to what he had to say. The competitive ridesharing space continues to be stable and to improve. We will see plenty of competition and significant Capital Investment but incredible potential. The competition for uber is not dying down anytime soon. We saw lyft shares rise after their results. A much more focused business. Is the uncertainty around huber going to be a longterm deterrent question uber going to be a longterm deterrent . Eric lyft still loses a substantial amount of money, but compared to uber, which needs to use money from ridehailing to do food delivery thats basically what he is saying. You see Companies Like doordash, which spent 400 Million Dollars buying caviar, its a Huge Investment area. Emily talk to us about uber eats and the ensuing war. The Delivery Business is super competitive as well. On the one hand, they talk a lot about japan. I think there are definitely markets where uber has a strong position. Generally, they have lost to doordash. They cannot say they are the Market Leader in most of the places they operate. They are working to fight for position. Its an exciting category that investors would say they should not abandon, but it makes explaining their financial story more challenging. Emily what will it be like over the next couple of quarters . They gave more of a forecasted than they have before. Eric we are going to be watching to see if these losses are one time or if they are humongous. Second, revenue needs to keep growing. Its about the pace of growth and whether they can hold market share against competitors and keep growing. Global losses keep coming down. Are the losses on a path downward and does revenue keep growing . Its pretty simple, they just have to deliver on it. Emily i know you will continue to cover it all for us. Thank you so much. Now, to another story we continue to watch. While way huawei has offered its first glimpse at software that might someday replace the Google Android system. The opendoor software will skip smartphones and instead to find its way into everything from cars, watches, to personal computers by 2020. We are joined by tom giles. Google cannot supply the most updated operating system to huawei because huawei is blacklisted. Is this new operating system any good . Tom we dont know is the short answer. There is so little we know about it. Does it work . How reliable is it . Huawei has made interesting claims that it is faster, more secure than android, pretty outlandish claims for something that has not been proven and is not widely available. There is so little we know. Rolling out a Software Operating System to millions of phones is not the kind of thing you do overnight. Emily and may be why they are skipping phones initially. We know that and that its called harmony os. Tom cole and and they are putting a lot of money into it, getting tom and they are putting a lot of money into it, getting a lot of resources. But they are going to make it available to other devices, the whole internet of things, make that available to people, but its not going to be available on devices in the meantime. They have already derailed to the companys efforts to become the Worlds Largest smartphone maker. They were on track to do that. There was a lot of fanfare around that, a lot of expectation, and bam, along comes the Trump Administration. Emily meanwhile, trade tensions continue to ratchet up. Trump saying we are having the talks, we are not having the talks and then saying thats. Mr. Trump we are not going to do business with huawei, and i really made the decision. Its much simpler not to do business with huawei. That doesnt mean we wont agree to something if and when we make a trade deal. Emily so if you are huawei or google, how do you interpret that . Tom the Trump Administration has been flipflopping so much, saying no way, not at all, and then backtracking, saying we know there are u. S. Suppliers, chipmakers, for example, who are really intent on making their Product Available to huawei, and we think some of these manufacturers have found ways around to the embargo. You remember last night bloomberg broke the news that the process of filling out applications to cellular components to huawei is on hold. Those applications are sitting on someones desk and no action has been taken on them while the Trump Administration continues ratcheting up pressure and china, in turn, retaliates. Emily we will talk more about the trade dispute and its evolution later in the show. Thank you was always. Coming up, we will discuss the fight to end online extremism with the chair of the House Homeland Security committee. This is bloomberg. Emily the white house close the week holding a summit with various tech associations and companies. The goal . Trying to find ways to fight online extremism. The White House Press secretary tweeted that the conversation focused on how technology could be leveraged to identify potential threats. He added, we urge social Media Companies to continue their efforts to address violent extremism without compromising free speech. I would like to welcome congressman Bennie Thompson. He is the chair of the House Homeland Security committee. He joins us on the phone from mississippi. Congressman thompson, how productive do you think a meeting like this could be between the white house and these companies in this climate . Well, i think its very difficult. First of all, you need all the stakeholders there. You have to have members of congress. You have to have the companies. You have to have advocates who monitor systems. We have to have all the players in the room. I just hope the white house is not trying to give the impression that they are concerned with in reality they have not provided the real leadership to address this issue. Emily what would the real leadership to address the issue involve . As i said, you need to bring all the stakeholders together to talk about what the challenges are. There is no question we dont have a point person in the white house, a main point person to address election security. We have a constant churn in our Intelligence Community with respect to leadership. Right now, as you know, director coats is leaving. The person we thought was going to accept the position has had to resign because the president wants to put another person in that position, so we have, in a number of very senior positions, a lot of acting people, so you dont have the ability necessary to create the program for this matter to really be addressed. From a legislative standpoint, we have had a difficult time getting this administration to acknowledge we have a problem. As you know, russia, we now know, did quite a bit in the last president ial election. For two years, everybody in the administration was in denial that russia did not do anything. Now, we know there are other bad actors. China, iran, north korea, who also would like to compromise some of our systems, so the notion that a coordinated leadership inclusive process that involves all stakeholders is yet to be done. I am suspect of it because in reality, if we dont have all the parties around the table, nothing will ever happen. Emily meanwhile, we have a problem with domestic online hate. In the aftermath of the shooting in el paso, we learned that the shooter allegedly posted a manifesto on 8chan. You sent a letter to the owner of 8chan calling on him to testify. What do you want to hear from him and what do you think the problems with the platforms are . The platform is being used to push so much of this terrorist philosophy. I am a civil rights advocate, but i understand there are some things, given the times we are in, that we have to monitor, and some things, in the interest of keeping america safe, we have to not allow over our Cyber Security systems and platforms. So, we contacted 8chan, and they come as you know, have already pulled the platform. We have been in communication with the owner, and i am happy to report that we are creating an opportunity to get information from him, whether it be an committee or in a session with his attorney present. But it appears we are getting general agreement that there will be a discussion between the Homeland Security committee and the owner of 8chan. Emily all right. The president has called on federal agencies to work with social Media Companies to try to identify shooters before they pull the trigger, really putting the onus on social Media Companies. He has talked about mental illness, but he has not talked about the role of guns. What kind of work and blame do you think the government shoulders and what about the social Media Companies themselves trying to combat Online Violence . There is no question we have to have those Companies Actively engaged in monitoring their systems. Its no secret that they have been lax in their general oversight. We have been attempting to get the amount of investment those companies have been putting into their systems and in monitoring, and we have yet to get that information back. We do not feel at that from that perspective that enough is being done because we have yet to receive accurate information. We have been told the companies are now aggressively monitoring what is being put on their platform, but thats still not enough. The transparency has not improved. They have not shared it with members of congress. There is a need for companies to step up, but there is also a need for members of congress to put together what we think would be required. To be honest with you, in terms of Gun Legislation and domestic terrorism, we have to do something about this military style assault weapons that permeate most of these killings and make them illegal. We have to put in waiting periods for the purchase of guns. We have to make sure that individuals dont have disqualifying illnesses, and we have to follow up on that. But as you know, one of the first things this administration did was to do away with an obama era policy that prohibited people with medical disabilities in terms of Mental Health from acquiring weapons. So now they can. So, the president is speaking one way, but his administration is doing away with policies that prohibited certain Mental Health illnesses individuals from owning guns. The president has to listen to the American People rather than the nra. I am convinced based on the polling that a number of people, a substantial majority of people in this country, around 70 , are wanting to do away with assault that are sold in this country and they would absolutely restore the ban. Emily cnn is reporting that the white house has drafted an executive order that would put the fcc in charge of how social Media Companies like facebook and twitter moderate their online content. Do you have any knowledge of this or do you think this is a good idea . Up until this point, the administration has been relatively silent on this. It would have to include, at a minimum, the authority to do certain things. We have acknowledged that cybersecurity is a vulnerability. Platforms are not robust we have never looked at the federal trade commission as the solution. We have acknowledged from an intelligence gathering standpoint that cybersecurity has to be robust in order to be effective. Without leadership from the white house, without somebody taking this responsibility, it will just get passed on from acting person to acting person, and that has been a challenge. Emily congressman Bennie Thompson of mississippi, thank you so much for taking the time to chat with us today. We appreciate hearing your views here on the show. Coming up, amazons alexa caught in a controversy. Why kindle is now facing an investigation. And be sure to follow our global breaking news network tictoc on twitter. This is bloomberg. Emily amazon under fire again after a major contractor refused to obey labor laws for wages. The company is accused of overusing High School Interns and forcing employees to work beyond legal limits. The Company Makes the echo, and kindle ereaders in china. Amazon says they have replaced the head of Human Resources and punished the manager responsible. Espn has delayed the scheduled broadcast of the videogame competition. It features gun violence. President trump said earlier this week that videogames glorifying violence and riveted to the shooting epidemic. The competition will be aired in october. More Bloomberg Technology coming up, diving into the u. S. China trade war. This is bloomberg. Our continuing coverage of combating online extremism. The white house hosted a summit with tech companies. Particular,s in facebook and twitter. According to the university of theland, those are two of top three social media platforms used by extremist groups and individuals. I want to bring in professor of social media at Syracuse Newhouse school of Public Communications and in atlanta, once a special agent in charge of Homeland Security investigations new york field office. Insomeone who has worked federal Law Enforcement, do meetings like this accomplish much . I think they can. The administration is trying to do and many administrations, several, as weve seen an increase in social is trying to implore the technology companies, how is, the platform they provide and the information that could be shared that could be detrimental and could provide makingency if someone is threats or statements they will be violent. Talking to these try toes is helpful and foster that collaboration is necessary. Leads tor not it substantive actions today, next week, building the relationship is critical. The origin ofg at some of these mass shootings, how much do you think social to blame for letting online extremism and violence rampant . How much is perhaps the president to blame . Critics have said he has fanned the blames of some of these behaviors. And how much of this is unfortunate human nature . The think much of discussion has been about the platform, facebook, twitter, reddit and i think a little that is a distraction. We need to focus more on the ideologys, how and rhetoric that the president has been pushing out over these platforms gets transmuted to people. Think we need to talk about the ideas, as well. I think the white house meetings fory are important collaboration but we cant be distracted about the messages also transmitted over the social media platforms. Graphic,t getting too what ideas and messages are you talking about . Jennifer internet memes related immigration but also fake news. Textual language is a meme. The idea that the free press doesnt play an Important Role states is retic that doesnt support democracy states. Nited jim, how much of that would you echo given how much the wayrnet has changed, the that Law Enforcement needs to fight some of these issues and to fight someneed of these issues to perhaps happen. Them before they think jennifers right that there is certainly within social media the proportion of information and certainly can have an environment where like minded encouraging each other to take certain actions thing we cant get away from is the concept of personal accountability and when it comes to people who are committing these mass shootings, committing acts, the stabbing act in los angeles just a couple of days ago, we have to first look attacker. We have to look at the fact that this is something that that that theyre responsible for and i think as a society were really losing the of personal accountability. Everything seems to be someone elses fault. At faultok at whos primarily for these insdents, its the people who committed them. Jennifer, how do you respond to that, as someone who looks at howbroader ecosystem and that Impacts Society . Jennifer i want to echo some of what jim is saying. At the end of the day, we saw in electionof the russian interference, a lot of tension on internet memes and what we media literacy, the idea of fake news and we had to know what we were reading. On increasingll importance of understanding the concept of influence and persuasion and allowing internet ours mimetics to come into mind, into our life, the stuff that we think about and share. The personal responsibility is about being a it involves stuff that we consume but also what we to andnd who we look up who our mentors are and who we country. Lead our jim, do you think the federal government should police social Media Companies . Jim i dont know that i would say that that is what the role shouldrnments be. I know that the companies themselves have policies about of content, especially theyre newer policies out of necessity. I think media plays a role. Remember classes in college that talked about yellow andnalism in the 1920s career inely in my Law Enforcement, i learned early on that what youre reading in a seeing on periodical, the internet, theres a point of view that certain media depending on drive their ideology and i think its important for people to andrstand that at faceately not take value what youre reading. People have to do their own research and make up their own and not just believe whats put in front of them. And i think that sometimes is lost, as well. S all of this, jennifer, the want the seems to federal government to help social Media Companies identify before theyooters pull the trigger. Is that realistic . Jennifer jim was referencing studies in university. Ateach social listening syracuse university, being able to monitor and listen for news stories and journalism based on key words and study content moderation. At the end of the day, we have about regulation and Corporate Citizenship and how theyre interconnected. The Regulatory Environment for other companies is so light, they dont have to engage in Good Business practices. We talk about raising the bar, how the United States is behind how theres a risk to society until social media platforms come into media oversight and structures that weve seen in legacy media like broadcast and radio. Right now platforms in social media are getting a big deeplyon and its problematic. Jennifer grygiel of syracuse university, jim hayes, possible a debate we will continue. You both. Is ahead, broad calm broadcom is taking a second semantec, buying the Enterprise Division. Emily broadcom agreed to buy symantecs Enterprise Division the 10 million in cash, deal expected to close in the in january. Ng to discuss, we are joined by ian the phone,th us on the analyst who holds a buy rating on broadcom. Came together. S looks like they were talking, couldnt get to a price and said how about this division, we can take it off your hands. Symantec had been struggling with that division to maintain its growth under a lot of competition and broadcom said we better job and came up with a price. Emily what does the deal mean for broadcom and the chip industry at large . Theres a couple of things going on. For broadcom, it makes sense. It makes their Infrastructure Software business bigger. Theres more scale, significant bringses and symantec surprise security Enterprise Security to the fold. Semiconductor industry, their business will be less to the cyclicality of semis and meets their cash targets so iin think its a good deal for them industry. Emily looking at other Companies Intel shares falling this week. Whats happening with a. M. D. How does this change the landscape . Ian hans has been promoting long time, a fan of their potential. I think what we would tell you competedhe event, they peoples expectations both in terms of the customers they rolled out on stage particularly google and they made some promises around performance and price which are going to be very, very difficult for intel most profitable service. Hich is emily a. M. D. Shares on a tear, hans. Whats necessary to keep that up . Hans now they have to deliver. Wasink number one i surprised of the Performance Improvement relative to intels best today. Its about twice the performance. That is huge. Never happened in the c. P. U. sf silicon and and i dont think intel has a road map for the next several can match that so there are significant repercussions in terms of market think a. M. D. Will easily surpass the market share in 2006 and this is a zero sum game. The intel Business Model will be as never before so very good things for a. M. D. Coming up ahead depending on execution. I think they will. And a tough environment for intel. Does this depend on the chinau. S. Trade war not escalating . It certainly doesnt look like there will be a deal any time soon, hans. Mean for these companies . Hans thats a challenge for the industry and its independent of the market share and intel. En a. M. D. It is a challenge for the industry. Weve, as analysts, have been trying to eliminate the huawei component to a lot of models but it is a significant of managementms ability to forecast the next quarter because of the stressfuly so its and a dynamic that hopefully will not continue but its watch and its a negative. Emily ian, what are you watching the rest of the year . Ian exactly what hans is talking about. Were watching for the next tweet, frankly. In the middle of july we had a meeting where the chip industry went to the white house and seemed like they were coming away with what they wanted ability to deal with huawei and move forward and fast week when weis expected the licenses to be handed over but the last report like politics got in the way and that wont happen. This is dominating everything. For the largest market semiconductors. If youre an american chip company, you have to be in china have access to that market. Anything that threatens that, youre in trouble. Ian king andergs mosseman, thank you very much. Trade waratch as the evolves. I. P. O. To unveil their filing as soon as this week. We knew they were planning to go soon, possibly as early as september. We will bring you more news on that as we have it. Stick with bloomberg. Thats it for this edition of Bloomberg Technology this is bloomberg. From the couldnt be prouders to the wait did we just winners. Everyone uses their phone differently. 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