Hardware to services. And a new study finds ecigarettes are no safer than traditional cigarettes. One attorney general has filed multiple lawsuits to keep them out of the hands of teenagers. But first, to our top story. Two years ago, ubers infamous ceo was forced to resign. A new ceo came in and was forced to rebuild the reputation. He has brought in new management but has not been a smooth ride. A big ipo sparked excitement but investors have not been impressed and has traded at a low price since. I sat down with ubers ceo and began by asking if you made the right decision to join the company. Dara we have resolved the conflicts the company has and there are many issues the company was involved with. You have softbank is a partner and you want them behind you. We have a great investor base. We have taken the company public. Revenue has grown 75 since i joined. We now have a path to profitability. So while we have had bumps on the road, i like the position we are in now for the next years. Emily there have been bumps on the road. And 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 . Dara i think so. Really, what uber has done is brought transportation and opportunity to a small segment of the population. We have 4 million driver partners all over the world, which is a huge number, unparalleled, but we want uber to be available to everybody. What we are doing now is going into the next step of introducing other transportation choices to uber. We have always gone with pool, but for example, we are testing buses in cairo to bring the cost of uber down. We are introducing bicycles and scooters for personal electric mobility. So that, essentially, 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, such as transit, lime. Anyway you want to get around, we want 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 when the rides are one dollar, 1. 50 . Dara yes. If you look at our rideshare business, it covered our overhead less 100 million, so the rideshare business itself is turning quite profitable and we believe the profits of the rideshare business will grow not only topline, but bottomline as well, and there are other businesses, eats, autonomous these are extraordinary opportunities we are funding. I do 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 there are execution issues. You just had your biggest loss, 5. 2 billion. The stock is trading below the ipo price. Much more often than not. Investors seem to love shorting it. You have hiring freezes on various teams. Some of your top hires have left. You said you believe uber can be profitable, but how confident and quickly can uber be profitable, and how quickly . Dara i am very confident. The losses we reported was a 5 billion loss from an accounting perspective. If you live in an accounting world, thats a real loss. I live in the real world. In the real world, our ebida losses were lower than q1 and we are on a good path in terms of our ebida losses as well. But you are absolutely right. None of this will be easy. All of this will take excellent execution from all of our teams, marketing, technology, etc. , and we are going to be demanding our employees do more with less, and to execute incredibly effectively in order for us to grow topline and bottomline. Emily is pricing the main lever you pull to profitability or our there other drivers . Dara scale. Scale. It is getting big when you have over one billion rides per quarter and you have got trips growing up 35 year on year. 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 mobile app. These are Technology Innovations that allow a better experience and bring down costs, so the combination of growing topline over 30 , Technology Innovation to delight the customer, and good oldfashioned efficiency, making sure costs dont grow as fast as revenue. All of those together are the formula for profitability. Emily just days before i spoke with him, a former uber engineer plead not guilty to stealing technology from alphabets waymo unit. It as a new criminal chapter to the saga surrounding the civil claims of trade secret theft against uber. This was one of many legacies inherited when he took the top job. I asked him if he still feels the weight of previous management. Dara you need different kind of management for different times in the development of the company. Listen, every management has their faults. I have my faults, but 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 that they built a great brand that had weaknesses, but 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 Self Driving 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 that when you build, youve got to build the right way. Anthony is an incredibly talented person. It did not work out, but we did the right thing. Emily the person who was here and spearheaded that acquisition which might cost uber hundreds of millions of dollars is still on the board, travis kalanick. I asked you this on ipo day and i feel i 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 are going to 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 talk to him usually during board meetings and once in a while offline. Emily he is on the board for now . Dara he is, and he will be on the board tomorrow. Emily lets talk about the future, then. Those who say uber is a ridesharing and food delivery company, what is the next big idea . Dara the ideas we have right now in this building are plenty big ideas, ridesharing, food delivery, micro mobility, autonomous, freight revolutionizing how truckers move around. And how shippers ship product all over the world. We have elevate as well. We have an enormous number of big ideas and now it 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 that we are a combination of the digital, physical, and the two coming together in unique ways. We have interesting Machine Learning algorithms looking at live supply and demand in the 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, how we can bring together different modes of transportation and tie them together. Walking, driving, to helicopters, to jfk. Emily you are in charge of not just visualizing the future of transportation, but 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 the 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, a subway you can take. You can take an uber, and you can take an elevate as well. We are uniquely positioned as a company to have all that information together, the same thing for transportation, local commerce and our restaurants are only the beginning and we can do the same thing for logistics. Emily that was just part of our interview with ubers ceo. Coming up, another exclusive. We hear from Steve Wozniak and get his thoughts on the transformation of the company he cofounded. And if you like Bloomberg News, check us out on the radio. This is bloomberg. Emily the imac, the iphone, just some products that became household names thanks to apple. But things are changing as they shift to services. We believe this is key to the Services Business and the opportunity is 100 Million Consumers in the next 34 years. That is the golden goose. Iphone is the meat and potatoes, but services are key to growth. Emily we spoke about the shift with none other than Steve Wozniak. We have been able to transition. We started with the name Apple Computer and as we moved into personal products we dropped the computer from our name. Being flexible and being able to shift with the demands of the market is very important for a modern ongoing company. So moving into services, apple is a huge company. Apple can only move in directions that will be very large in dollar volume. We have looked into other products like watches. Heck, that is about my favorite piece of technology in the world. When apple pay came along, apple took a lot of steps leading the industry. Things like touch id, all the others had to copy it. Now we have face id. We took the touch id and moved it into apple pay. A system that really protects your identity and credit card purchases everywhere and is so unbelievably easy, especially if you have a watch. That is important. Making life easy is what we were known for in computers. These were computers you did not have to be an expert to use. Now, apple pay, the apple credit card is even more secure. The looks of it fits apples branding apples branding is to have a lot of secrecy about what they are doing but also styling and beauty. Things like that. This card is just the most beautiful card. I dont even judge beauty that way. I dont, but it is. It doesnt even have a number written on the card. There isnt a camera that can see what your credit card number is. There is no way people in a retail store ever get your credit card number. It continues protecting your privacy, everywhere you go. What you buy shouldnt be tracked that closely, in my mind. We see that you bought a milkshake two hours ago. I dont want somebody coming up to me and saying that. Taylor you are giving us free advertising because you keep flashing your iwatch around. If i heard you correctly, said it was one of your favorite piece of technology. The iwatch when it came out, lets call it mediocre. Since then, it has really grown and become a key piece. Have they done a great thing, adding in the Health Services . Steve i am not a biggie in Health Services. But, yes. Everywhere i go, people are using it for Health Services and information. That is one piece of it. Not having to carry a phone, not having to use a phone even. We have the iwatch on cellular, i can text my wife, walking the dog. Apple pay is the best. I put my movie tickets on the watch, my boarding passes for flights on the watch. Do email, i get notifications all the time. I dont know, i use my computer in the hotel or at home to do efficient email and news, and then i move to the watch and pretty much skip the phone. Emily that was our exclusive interview with apples cofounders Steve Wozniak. We will have more on apple after the break, including how the iphone maker could be a big winner as india has a change of heart on Foreign Investment rules. We will also be speaking with huaweis Vice President and whether he believes President Trump will keep his promise to relax restrictions on the telecom giant. This is bloomberg. Emily u. S. Chipmaker global foundries is suing Taiwan Semiconductor for patent infringement, accusing them of using their technology. The case has the potential to disrupt the supply of everything from smartphones to pcs. Remember when President Trump hereby ordered companies out of china . If india gets its way, it may soon welcome apple with open arms. The Indian Government has eased investment rules in a number of sectors, a move they hope will further attract Companies Like apple. The iphone company is already poised to start sales within months and apple and its main production partner foxconn have been busy laying the groundwork for some manufacturing. We discussed this with mark gurman and David Kirkpatrick. There are plenty of reasons why apple has not been very successful in india. One of those reasons is because they have had a hard time bypassing laws from the Indian Government which require them to produce a certain amount of products locally and for a company with its vast supply chain, doing that is both a difficult and expensive process. So what this will do is allow apple to work around that, allowing them to open up an online store, allowing them to have a much deeper push into the region. Emily obviously, we are in the middle of an intense trade war, escalating on both sides which india could potentially use to its advantage. How do you think india could potentially benefit here . India has had very restrictive trade barriers for many years. There was a big drop and then a couple decades ago, but they still have had more restrictions than other major trade partners. So this is clearly an example of them recognizing they can take advantage of the moment and also serve their consumers. Look, apple products are popular globally and have not done well in india. I think this is a win for all concerned. It will be great for apple and other companies shipping into india, but the Indian Consumer pretty much has not bought iphones at all so this is a big deal for them. Emily David Kirkpatrick along with bloombergs mark gurman. Earlier this year, President Trump blacklisted huawei amidst escalating trade tensions, resulting in many u. S. Companies stopping business with the telecom giant. Now, President Trump said he would relax the restrictions but a reprieve has been doubtful. We caught up with the Vice President of Risk Management partner relations. The products we offer are superior products with high quality and all the features and functionality of all of the other flagship phones at a competitive price. And that is something consumers are missing in the u. S. , both in the smartphone area as well as other products and technologies we sell and support. Scarlet if you could be more specific on that. One big issue we have is the lack of Broadband Access for people in rural parts of the country, partly because companies do not want to pay for it. Why is it advantageous for Rural Communities in particular to use huawei gear . What is the sales pitch . Well, theres a few reasons. Frankly, theres over 24 Million Consumers in the areas that huawei covers. We provide technology and capabilities for operators in these regions. Because of our experience, many, many years of experience in rural china, building up the rural Chinese Technology or the communications networks. As we go forward, we are able to provide that expertise, both in the Product Solutions that we offer that are scalable, both to high levels to large customers, but also to the small customers. Along with our services and support that we customize based on the needs of the customers. The rural customers are a small Customer Base themselves and are limited in their funding and capabilities and resources, so we help fill that gap. Scarlet a headline that crossed a couple minutes ago is that u. S. Prosecutors are investigating huawei, potentially expanding their probe on criminal cases. Caroline this wraps into the issue of stealing intellectual property, which is the main accusation. I want to ask you, therefore, the new additional instances of alleged Technology Theft is this something that is new to you . How are you responding to prosecutors . Are you in day to day touch with prosecutors in the u. S. Government . I cannot really comment on ongoing litigation. I believe that information is related to those investigations. What i can say is huawei is a leader in ip. We have over 90,000 patents globally. We have 20 of the global 5g essential patents, and we are a proponent of fair and equal licensing and so on. We license over 6 billion worth of ip from other companies, and we also sublicense our ipo to other countries and companies at about 1. 4 billion annually. We are concerned about ip theft as much as anyone because we do hold a significant number of patents, and we would like to see those issues addressed, but we are a proponent of, you know, of due process and handling of ip in appropriate manners. Emily still to come, reading the smoke signals. We speak to a top legal officer and a scientist about why they are concerned about ecigarettes. We are Live Streaming on twitter, check us out and follow our global breaking news network tictoc on twitter. This is bloomberg. At comcast, we didnt build the nations largest gigspeed network just to make businesses run faster. We built it to help them go beyond. Because beyond risk. Welcome to the neighborhood, guys. There is reward. Beyond work and life. Who else could he be . There is the moment. Beyond technology. There is human ingenuity. Every day, comcast business is helping businesses go beyond the expected, to do the extraordinary. Take your business beyond. Emily welcome back to the best of bloomberg technology. Vaping was thrust back into the spotlight this week as Phillip Morris and altria started talks to reunite, combining two of the most alternative smoking products, but alternative may not mean safer. North carolina sued juul for misrepresenting the dangers of its products. Josh stein is taking other ecigarette companies on. Josh i am concerned they are targeting children. They designed their product, they use flavors, they market on social media that children frequent, they use advertising to target children. They have no age verification or wholely inadequate age verification on their website. I care deeply about the health of North Carolina teenagers. Emily many of these companies are saying they are giving adult cigarette smokers a safer alternative. If they take products off of store shelves, is that taking away a potentially safer alternative . Josh i want them to stop marketing to kids. When you ask kids, why do they do this . They love the flavors and they think it is not dangerous, so if these guys will market their products with these flavors that are clearly targeted to children, and their packaging, they do them in juice boxes with an actual straw to replicate juice box. They are on snapchat and instagram. There was one ad by eon smoke, and the Massachusetts Attorney general sued them today, but they had an advertisement of their device that says, no, mom, it is a usb port. They did it to appeal to children. It is immoral, it is wrong, and it is illegal which is why im going to court. Emily juul has taken most of its flavored products off of physical shells. You can only get most of them online. Is that enough . Josh they still sell mint in the stores and it is very popular. School started in North Carolina this week. The rage, what is cool, is juul mango. That is the flavor. These kids can get their hands on these flavors as long as they are being manufactured and sold. You cannot buy a mango flavored cigarette. You can only buy tobacco or menthol and that is what these ecigarette manufacturers need to do, otherwise they will create a new generation of people addicted to nicotine and that is unacceptable. Emily is the fda doing enough . Josh no. They have the right intention and the commissioner has declared this an epidemic, so they have the right orientation, but they need to do more. They need to ban these flavors and get preapproval before they hit the shelves. They need to set a standard on how much nicotine. One company i sued, the amount of nicotine in their pod is twice what a juul pod is which is more than a person gets from smoking a pack of cigarettes. The teenage brain is highly susceptible to addiction. The fda should ban these products when they are not targeted to adults. If an adult wants to buy a tobacco flavor, menthol flavor, i got no problem. If it helps them get off cigarettes, fine. Children are the ones buying a large number of these products. Emily do you expect other attorney generals to join in on your suit . Josh i would not be surprised. I have heard from a number who are seeing it in their Communities Just as i am seeing it. Emily you have Phillip Morris in talks to reunite with altria, which has a huge stake in juul, big tobacco having ownership over the largest Vaping Company in the world. What is your take . Josh i care less about what corporate form these conglomerates take than about the Business Practices that are engaged. I Want Companies to stop designing their products, packaging their products, marketing their products, and selling their products to children. Emily just to clarify, the eight Additional Companies you have sued in addition to juul, how did you choose them . Josh we did research, had people do some purchases, and we thought they were bad actors. That is what we allege in our complaint. My objective is to protect people in North Carolina from these products. These were bad actors in my view. Emily that was North Carolina attorney general josh stein speaking with me earlier. Juul issued a statement, we have been cooperating with his office and have taken the most aggressive actions of anybody in the industry to combat usage. For more on concerns about vaping products, i want to bring in Professor Robert turan. He finds vaping may not be safer than smoking cigarettes. Also in washington, d. C. , we have anna edney. You have lawsuits from the attorney general of North Carolina, corporate potential deals being made. You have new science coming out on this topic weekly. What do you expect to happen with this lawsuit . How impactful could it be . Anna i think it is interesting that the attorney general filed this lawsuit while at the same time the food and Drug Administration is looking at these issues he has raised, particularly the flavors that are out there that kids are able to get ahold of in stores, even though it is illegal. What is going to happen is one way or another, it seems these flavors will be restricted, whether that comes from attorneys general filing lawsuits or fda actions, which should be coming final pretty soon. They proposed limiting flavored ecigarette products to certain stores where there was a separate barrier for adults to buy them. This would not be a Convenience Store or gas station where they are available now. The outcome will be that flavors will be restricted in some way. Emily lets talk about the science and conclusions of your study, which is fascinating. Are ecigarettes safer than regular cigarettes or not . Robert from a lung perspective, they are not. Emily why . When you get emphysema, there is large amounts well after smoking which causes lung disease. It is a biomarker of harm and we found them at the same level in smokers and vapors, so vapors will be at the risk of copd. Emily that was Professor Robert tarran and anna edney. Facebook is adding another layer of protection to keep next years election safe from harm. Au revior, that is what President Trump and macron said to digital taxes. Why they said this is a good agreement. This is bloomberg. Emily amazon is said to be in talks to invest in go jack to boost its presence and southeast asia. One scenario would see amazon making meaningful payment for a stake in the startup. Indonesia is the regions biggest economy but amazon has no presence there. Facebook is making changes to political advertising. The social network is tightening how it verifies who is behind political ads as it tries to clamp down on voter misinformation, saying people should know who is trying to influence their vote and advertisers should not be able to cover up who pays for ads. It will provide Greater Transparency for people. We spoke about this with bloombergs kurt weidner and David Kirkpatrick. Kurt this is more of the same. Last year they said, we need to verify who you are. We need to make sure you are a legitimate political advertiser who is registered and not a russian troll, as happened in 2016. They made a database, you should be able to search for to pay for the ads and who paid for what. This is an extension of that. They want to make sure they are getting ads from people who are registered advertisers and not foreign agents. They are asking for even more info to verify who they are. Emily you famously interviewed Mark Zuckerberg after the 2016 election and asked if fake news impacted the election. He told you that was a crazy idea. Almost three years later, there has been a 180. Will facebook we ready for 2020 . David i worry, i really worry. That statement zuckerberg made after the election, and every action they have taken since then underscores how fundamentally naive the company has been and continues to be. This change is a good one to require more disclosure and checking of whether the political advertiser is who they said they are, but why couldnt they have thought of that before . Why did they have to fail and now tighten the screws . They should have stepped back a long time ago, before the election, and thought about how their system would be abused because we are paying the price for the fact that they did not do that. They are trying to backfill. It is extremely difficult. Emily i have been inside facebooks election war room. They have had this in place for several different elections around the world. What else have they done, and what will make a difference . Especially given that the real threat, they may not even know. Kurt they keep using the arms race kind of thing. We are taking two steps forward, but so are the bad guys. The things we have seen on the ad front, you mentioned the war room. This is something they plan to pop up for different elections globally where they bring everybody into one room to better monitor things like fake news and fake stories that be might spreading. That is a hard thing to do to manually keep up on a platform with more than 2 billion people. I think they will continue to do those kinds of things. They have not announced a lot beyond their main initiatives. I think they plan to basically try to fight this with their employees in realtime. Emily this has got a little bit less attention, but facebook has been adding more humans to its Editorial Staff to decide what goes up, what stays up, what comes down. As somebody who has covered facebook and been a journalist for many years, is this simply what facebook has to do and is it a failure of ai and technology . David the only way they can make serious progress is a combination of algorithms and people looking at this stuff in every possible way, and continuing to upgrade the way they do it because people who do things to deceive are Getting Better and better also. What people need to remember is facebook is the primary place in which politicking happens in almost every country, so they can have war rooms in the u. S. Or brazil or the e. U. , but until they have a way to do this in scores of different languages, elections happen every day and are being abused every single day on facebook, and that is a deeply challenging problem. Emily that was David Kirkpatrick and kurt wagoner. Tech giants like facebook and google can breathe a sigh of relief. U. S. President donald trump and french president Emmanuel Macron announced a deal to end a feud over frances digital tax. The date of International Tax exists. Everything that has been paid will be reinvested. Emily we broke down the developments with laura davidson. Laura earlier this summer, france passed a digital tax, a 3 levy on revenues in france, and the u. S. Said, this is not fair. You are going after american companies. There were other Tech Companies affected, but it was mostly american. The u. S. Trade representative opened up an investigation and trump has threatened to put tariffs on french wine. Today at the g7, we saw them come to an agreement. They are going to negotiate these Global Negotiations going on. They are looking at reallocating taxing rights, which country has the right to tax which profits. France says, when there is a global deal reached, they will take away their tax and reimburse all the companies who have paid it. They have not agreed right now to repeal the tax entirely, but they have an agreement at a future date to repeal the taxes. Emily which Companies Benefit the most . In the u. S. We talk about the big ones, google and facebook, but there are a lot of chinese and other companies as well. Who are the big ones that benefit from this . Laura google, facebook, amazon. Also Smaller Companies that are operating over there. The thing that we will be looking for Going Forward is this global agreement they are working on. Digital companies will be taxed, but it affects pharma and manufacturing and it has been a global trend of that multinational corporations, there is a consensus that for too long they have been able to operate in tax havens and countries are banding together in saying that we will make sure they are taxed somewhere in the world. Emily we take a look at chinas booming music industry. One name has been a big hit. This is bloomberg. Emily interactive Cycling Company peleton filed for an ipo this week. We spoke with nabila ahmed shortly after the filing. Nebula we are seeing about 6 billion raised by Tech Companies. A lot of those companies are up but then uber and lyft, the numbers have not been not good. Peletons numbers show it is not profitable, but their total Revenue Growth was up 99 and 100 . Their net losses last year were 195. 6 million. Taylor and as you say thats up from just 48 million in losses the year before. So losses are growing and interestingly, in the statement they say we expect to incur operating losses in the future and may not achieve or maintain profitability in the future. As you look at peloton and some of the other deals you cover, what is concerning, the fact that they are saying that may not be profitable . Nabila they are all saying that and investors are trying to figure out if they should be buying into it anyway. Because these are highgrowth companies. They are choosing not to be profitable for now. They are pulling in revenues and once they get to a certain level they can probably start to make some profits, but as you say, its concerning when a company says please buy our shares but we may never be profitable. They are saying they are not going to be giving a divident either. Emily that was nabila ahmed. Tencent music is under investigation by chinas antitrust authority, according to sources who say the pro could end exclusive licensing deals. How did Tencent Music become so dominant . We discussed it with Bloomberg News reporter lucas shaw. Lucas i would say the concern is moderate. On one hand, its never good to have regulators looking at you. Tencent is in a dominant position across the online media universe in china and in particular in music. Tencent three Music Services account from anywhere from 50 to 75 of the streaming market in china. This investigation, the outcome would likely result in them not striking an exclusive deal. The market in china works differently than in most of the world. Here, the big record labels licensed to spotify, pandora, apple. A lot of those services dont operate in china. Instead what they do is sell tencent the exclusive rights and then tencent sublicenses it to other companies and makes them all suffer for some bad deals that it made. Taylor what has tencent said in response . Lucas so far, they have said very little. I think theyre waiting to see how it plays out. The investigation started earlier this year in january or february. A lot of the people we spoke with said there is an outreach to Competitive Services and their partners in march and april. There may be some outcome later this year. My guess is that tencent will try to keep a low profile until they figure out what this will mean for them in the long term. Taylor any idea what the record labels the music labels that are involved, what is their impact . Lucas they have a lot on the line because china is a market that many years ago, it was a nonfactor for them. There was too much piracy, no one paid for music. It has grown a lot in recent years. For that to keep growing, they need deals with all these services and that will have to renew their deals with tencent or make deals with rivals sometime in the next six to 12 months. Taylor how good is this for competitors . We have alibaba, baidu. How thrilled are they . Lucas they would be happy if instead of having to sublicense from tencent, which means they might not get all the songs they want at a given time, they could just make direct deals with record labels. I was based in hong kong for a few months last year and executives at net ease were clear they hated the structure because it gave tencent an advantage. They said they tended to benefit when they made deals with everybody because they had more transparency in their data. The downside of the exclusive deal with tencent is that tencent has a lot of control over what happens with that music in a country where western music still only accounts for only 10 to 15 of all listening. Taylor how much does Tencent Music mean to Tencent Holdings . Lucas its a big deal, but at the moment its a 25 billion company, where tencent is 300 billion dollars to 500 billion. Social apps are still booming for tencent. We chat is a super app where they want you to come in there and chat and watch video and music. Tencent has staked out a leading position in the areas of streaming video and music to make sure people never leave we chat. If it loses its dominance in those media areas, the strength of we chat on its users is weaker. Emily that was bloombergs lucas shaw. We will bring you the latest in tech throughout the week, 5 00 p. M. New york, 2 00 p. M. San francisco, and we are livestreaming on twitter. Be sure to follow our global breaking news network tictoc on twitter. This is bloomberg. David she grew up in a booming iran, where women held highprofile positions, only to see her country overthrown while she was away studying at oxford, watching from a distance what happens when political reform does not keep pace with economic growth. Afsaneh beschloss studied to be an economist, believing she would spend her life working to help emerging markets develop. But instead, she has gone back and forth between the private and public sectors, as a banker at j. P. Morgan, as treasurer of the world bank, and as carlisles 12th partner, founding its Asset Management business