Discusses life after an ipo and the strategy for fending off growing competition. In another era for the iphone tuesday at the new st. Johns theater in california. Tim cook unveiled a suite of new products with the iphone x grabbing the headlines. The most advanced iphone we have ever made, the new design, and id, depth camera system more powerful technology then we have ever put in an iphone before. It really is the future of the smartphone. Emily we spoke with bloomberg technologys mark groopman to get a First Impression of the new product. It is a nice phone. It is really cool. I am sad it does not go on sale until november. From an investor perspective, that mrs. A quarter of sales. That will be interesting to see that mrs. A quarter that misses a quarter. The other thing that struck me was the height of the screen. You do not have to scroll so much. And the facial technician the facial recognition technology. Quickly. Able to set up it was easier than fingerprints. I feel like i was the first person to enroll my face and face id. If you have a touch id on your phone it will transition. The screen is taller, you can see more video. Emily i know you will be getting your hands on one sin but from your perspective, picture, howe big big of an upgrade cycle do you think this will be given, that 80 of people already buy this phone already have an iphone . Was notiggest change having a phone to having a phone that happened 10 years ago. Cycle that upgrade they are facing. One of the things apple has found over the years is that when people, when people upgrade , they upgrade to another iphone. It is a system, and ecosystem they tend to stay in. When people leave and Android Device they will switch to an iphone. Over time they grow that larger. The time between buying phones has been growing longer. Which suggests the upgrade cycle could be very big for apple. Will theion is, consumers really feel the need to get this new device . ,he bells and whistles something you experience from looking at your neighbor using a phone, is what will help them sell this phone. As mark was mentioning, the facial recognition, that might be more pleasurable for the user theit is something that person that has yet to upgrade is going to see. Emily it is a significantly different new factor, new design. Several analysts have suggested to me that it might discourage people from buying the iphone 8. Why would you buy it if you could spend a little more and get the most expensive . I was speaking to another person who said that it would be a home run. 8 . The i dont know why anyone would buy that. They raised the price. Now it is 700. Now you are 300 between the eight and the 10. You look at that in terms of dollars per month, that is six dollars more a month. I dont see why you wouldnt get the 10 if you are on the installment plan. I think the phone could have come out next week. How many would there be available in the apple store . Four or five of them. Now that they have announced, they can bring in more people and factories, i think they are saving up for a big november 3 launch to have as many as possible. Emily it will be available to many more countries. Multiple countries per wave, it is a big expansion for the iphone. Emily i want to talk about the apple watch. They emphasized the health features, the sports features, they introduced the watch with a while wearing the watch riding a wave and getting a call on the watch. Corrie, you are obsessed with fitness trackers. Apple says this is the most popular watch in the world. On just how take much bigger a product category the watch can be for apple . The watch was launched, with i dont know what people will do with it, business plan. They threw it out there to see what would stick. Dr. Oz was there when they announced it. We got to cover that. They have always thought that health would be a part of it. It was really fitness that drove fitbit. They have had success with that product. It seems that apple has figured out that as much as they thought fashion was going to be a part of the watch, fitness is the thing. Showing off the Water Proofing capabilities that other competing devices dont have, and a very big way be at paddling. Surfing and swimming and everything else. You are in hawaii or tahoe or in the water, it works. That is what they say. Lets talk about apple tv, they demoed the box and four k capacity. It is impressive but not if you dont have a four k . This was a big shock to me. Videos in if you have your itunes library, they will convert that for free. That is not something i would imagine them to do. Toy would typically try offer both and charge more for the higher end. They are upgrading and if you buy a new they will charge the same price. It is a great thing. Cory and mark there. Mark did rush into the demo room after the presentation and got his hands on the iphone x. Take a look. We do have one more thing. [applause] we are here at the steve jobs theater at the new apple park campus. This is the new iphone x. There is a little not for the face recognition sensor. The glass back. This thing looks nice. Makes other colors pop out. You can see the time. Bottom charger and this has Wireless Charging on the back as well. Inches, so it5. 8 is bigger than the iphone 7 and the iphone 8. The features, i know people have been asking about the side button. It is longer and you can hold it down to activate siri. Doubleclick for apple pay. To go to home you swipe it from the bottom and you can go multitasking from there and swipe between different apps. You can see so many more texts at once and it is great for video. This goes on sale november 3 after preorders at the end of october starting at 999. There is also a version with more storage. Mark their giving as a first look at the new iphone x. , President Trump has blocked a Chinese Investor from buying a chipmaker on security concerns. Blueeak exclusively with apron ceo matt salisbury. His life postipo and thoughts on fending off the competition. This is bloomberg. Emily social media as now a redhot focus of Robert Muellers investigation into the 2016 election and possible links to President Trumps associates. Team of prosecutors and fbi agents is zeroing in on how russia spread fake and damaging information through social media. Seeking information from facebook and twitter about what happened. Last week it was discovered that facebook had discovered money fake ads. Face centuryourth time in a where a president has halted a takeover from a foreign firm. Because of a security risk. Our editor at large, cory johnson, spoke to ian king about this story. A very small company. Programmable types. Programmable logic. Tips and theyhese dont have to design the whole thing they can make the chip to certain things for them. The seven used when you design another chip because you pda. You out using an f know it works. You use it because it has optionality. You specify the chip once you have done that. Right. This doesnt seem like, it is complex. It doesnt seem like no. This is obviously not a large company. The product itself could be used in various ways, useful to the military and so forth but that is not what we are talking about here. What we are talking about is a aoadening of the purview of change in policy from washington and a hardening of the stance from washington toward china. If french backed Venture Capital firms, might not face the same sort of pressure . Yeah. In and ofhnology itself, is there a suggestion that there could be an embedded ability to monitor the use of chips, if they Chinese Government controlled company can see what is happening with these . There is an element of that. They are often used in networking equipment. The stations are on phone networks and they control various functions. Clearly, stress, quite security is the stated reason. Whether we look at these things the u. S. Ally, semiconductor industry, the u. S. Government does not want china coming in and taking those key capabilities away from it. Else competes in this area . Intel. Zylinx. Also this is bigger. They divide the market up between them. When the altera deal went through, i thought of it as a da was an accelerator to another chip. , they have had a specific use even more neroli confined to the design of other chips. They wouldion was spreading get into data centers. Microsoft is using them in data centers now. That is happening but not quickly. It is how the chips can be used. A broader point is, were seeing the chip industry consolidate massively over the last several years. To 6 market share for the top 10 companies. China needs to get into the industry, it doesnt have anyone in the top 10. It is the largest market for semiconductors. It will throw a lot of money to buying its way into the domesticating industry. It seems that it would also limit the ability of all the other Semiconductor Companies to get higher prices in the market with the notion there might be a chinese bidder . Do . Hat do you everyone else is getting together. You havent been bought and you cant by anyone else. It doesnt make sense. Where do you go . One haven was supposedly all this money china had said it was going to spend, that will be the rainy day fund. Not looking like it will happen. Emily our editor at large with ian king. Coming up, why we may see self driving trucks on the road before taxis. This is bloomberg. Emily this week a u. S. Appeals court cleared the way for waymos lawsuit against uber. The judge declined to send the suit to arbitration. A former employee of both companies was accused of taking files from waymo to uber. They will get access to a keep these of evidence. Prevent that tried to examination of files. Influential engineer at google, waymo, leaves, starts this Company Called auto. All of a sudden, self driving trucks . What is that about . Uber buys them a year after he left. They buy the Auto Trucking company . A small team. They are not pursuing that at all. Focus is self driving cars and they put him in charge of that effort. Waymo digs around to see if any trade secrets have gone with him. That is the basis. Uber wants arbitration because why . There are embarrassing details that could come out. It is easy to say it looked like a stretch and they lost. They were basically saying, waymo should be bound by its agreement to arbitrate things with lewandowski, even though they are only suing uber. Clause, that,tion oh that applies to us too. Yeah. So the trial happens . Discovery, but the trial in october seems soon. The key other ruling here, uber suspected there would be issues. They did this diligence and had a cyber Forensic Firm look into everything lewandowski had. That report has been tightly capped and they have refused to give it up and didnt mention it. Has said youge need to hand that over to waymo. It will be interesting to see what that firm said because we have been not been able to turn up the 14,000 files. That was the explosive claimant the beginning. There were these files that uber had and so far waymo has not been able to say, there they are on ubers computer. Waymo, theking with ceo was on stage at the bloomberg sooner than you think conference. Get selfabout when we driving cars on the road. The answer is literally the name of this conference. It is sooner than you think. We have an working on this at google and now at waymo for over eight years. Aboute started to talk the simulation models we are driving right now which are more important. Last year alone, 2. 5 billion miles in simulation. We are to the point now with the technology is feeling mature and ready which is why we are spending a lot of time in phoenix and mountain view. There is something in phoenix called the Early Rider Program where we have families driving around in our cars and we are beginning to understand how real people would like to use this technology. That is the last part for us. Understanding that as we continue to refine the technology before we are ready to deploy. Yesterday was interesting in terms of regulatory framework. Put out a vision strategy statement, which some consumer groups criticized for taking a hands off approach. Day, highway regulators were thought to need to be more the crashinting to last year by a man in a tesla. What are your concerns about taking this tech forward safely . If you look at what the administration has done in the last couple weeks, it is encouraging for this technology. We are in the early stages. We really havent served our first users yet. It makes sense that we are careful and flexible so we dont unnecessarily or inadvertently squelch in of it innovation. How many things of the house of representatives have the house of representatives united behind recently other then self driving cars . I think that is great. It bears reminding, there is a difference between the problem we are trying to solve which is self driving and removing the human from the car and letting our technology do the whole driving task. The different problem that is trying to be solved today is Driver Assist technology. Mtsb wass what the rolling on. Our drivers getting too comfortable with these technologies . The fundamental conundrum we face in this space. We learned it at google prying 2012, weng waymo in had a pilot experiment where we put employees in cars for highway use. Googlers,ese smart they had to be very attentive, we would be watching them and if they did not behave we were going to take this free car away from them. We ended up having to stop that pilot experiment after a couple months because of those google employees couldnt stop taking their eyes off the road. They very quickly came to trust the technology too much. That is the fundamental conundrum. If at some point the car needs to ask the human to pay attention, the human has phone asleep, got distractive, is in a deep conversation, that can be a big problem. Emily waymo ceo speaking with brad stone. Aqua fax is still reeling from a x is still equifa reeling from a massive data breach. What are they doing to stop the bleeding . All episodes of bloomberg tech are Live Streaming on twitter. 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. Emily welcome back to best of bloomberg technology. Im emily chang. The massive equifax data breach could be the largest in history. The hack may have hit 143 million customers. And a Class Action Lawsuit is demanding up to 70 billion in damages. Company carries an insurance policy for this, reportedly it covers 100 million to 159 million. We spoke to the chief Information Security officer at fortune net about the hack. It means is the company is trying to figure out what happened, the extent of the breach and what they need to do to the to address the victims to include probably cooperating with local Law Enforcement to get to the bottom of it. Emily in europe there are laws against not reporting things like this faster. I believe you are required to report data breaches within 72 hours. Wouldnt that make more sense . So that the hackers dont get a head start . Phil what you are talking about is the European Regulation called gdpr, designed to bake in privacy protections for companies that handle personally identifiable information. In europe versus the United States, they are a little different. In the United States our model is more one of Market Forces, with perhaps the end of that continuum being legislation. More specifically here in the u. S. We go from Market Forces to public outcries to executive orders to regulation to legislation. That is a continuum from minimum to harsh. In the European Union they start closer to the regulation part of the continuum. There are indeed hefty fines if you have massive breaches of private information. Up to 4 of global revenue. Emily bloomberg spoke with senator dick durbin who said we are dutybound to step in on behalf of innocents who are going to pay a price, adding this is an indictment of our current level of regulation when it comes to this industry and others. How do you respond to that . I think there is a role for government, the legislative or executive branch. At a minimum trying to incentivize companies to avoid the false choices. False choices between convenience, privacy and security. I want all three as a consumer. The best architectures can provide all three. Emily what do you imagine investigators are doing right now . Explain what is happening behind the scenes. Phil they are looking for forensics. Hopefully they are looking to the future. They are looking to see what types of strategies and techniques and technologies they ought to be implementing. Things like really good segmentation, both at the macro level and micro level so future breaches scopes are limited. They are looking for solutions that implement defensive depth rather than relying on point solutions, they might have Automated Solutions working together. Over a security fabric. Quite honestly, im guessing they are looking closely at what is the best way to communicate with the private sector since so many people were affected by the breach. Emily there are reports it is possibly accomplished by exploiting Certain Networks that other Major Companies are based on. What is the likelihood that many other companies could be at risk of the same kind of attack . Phil we dont have specific information about where the original breach was. There was one company that stepped lowered, that said, i think it might be us. This is software used in the top 500 companies. We dont know if it is a zero exploit of that Software Package or that a patch has been released. Yes, there is a point of entry the perpetrators came in through, but there are likely other points in the network