He thousand to bring the national discourse. The former u. S. Best start former u. S. Ambassador reportedly discussed Administration Officials attempts to unmask the names of Trump Campaign managers, inadvertently picking up on secret foreign communications. Air quality in San Francisco six to levels of smoke, smog choked beijing as a dozen wildfires blanketed the bay area. The concentration of dangerous particular matter was just a low beijing. Global news, 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. This is bloomberg. Emily i am emily chang and this is bloomberg technology. Coming up next, the feud between qualcomm and apple goes to the next level. We will break down who has the upper hand in this legal fight. Plus, uber draws a line, watching an appeal against last months london band. We will discuss the start of an one of its business biggest markets. The Golden State Warriors square get ready to defend their title. Oo. Conversation with the ce but first, to our lead. Qualcomm has fired another legal shot acrossapples bow, this time in china. Bloomberg has learned that san diegobased company has sought the manufacture of iphones in china. This is the latest in a monthlong battle between the firms that began when apple claim. And antitrust this comes from patents inside smartphones. Fends off as apple global competitors in the chinese smartphone markets. Last year, 23 of apples sales came from china, a hugely critical market for them. Studio, a in the litigation analyst with bloomberg intelligence. En, i will start with you. What does this mean . Wrampple is trying to this up. Produceotiations will anything fruitful right now, so clearly qualcomm feels it has to take the threat and put the pressure up to the next level. This is as big as it gets. Is seen as a forum that is friendly to patent holders. Specialized ip courts in china have been a good place to sue. They are favorable to patent owners, they awarded u. S. Companies a victory in nearly all of the lawsuits filed. In addition, qualcomm had some disputes with china over appropriate licensing rates for some of their essential patents on 3g and 4g lte. They have the good grace of the Chinese Government having been approved. They are working with other phone manufacturers in china. They have goodwill going into this litigation. Emily dissenting qualcomm has the upper hand . Ian apple is an american company, earning a lot of money in china, but it is an indirect employer of chinese people. Do you want to see qualcomm workers laid off . Both sides have a lot of cards to play here as they make the case to beijing. Emily is there any precedent here . Have we seen a company besides qualcomm take this approach . Im looking at matt, and i said ian. T we have seen nokia take these companies will file in multiple jurisdictions and gain leverage in settlement talks. We saw qualcomm test out the intellectual property courts in handsetainst a chinese any factor, and were able to resultingeir patents, in a licensing deal. There is some precedents in the smartphone area, and in qualcomm litigating in china. Apple is completely dismissive, saying this is legalr tactic, another maneuver that will not mean anything. They have not even heard of these patents. They completely dismissed it, as you would imagine. Emily what does this mean for apple . The potential consequences are huge. Ian that is why i think the interesting analysis came from it. And analyst said they will not allow themselves to be cut off from production. They will pay qualcomm up front. Emily what do we see next . Matt the chinese courts are pretty fast, but it still takes the fastest may be six months until trial, about a year or so until the case is concluded. We are getting into the Third Quarter of next year, where qualcomms suit in the u. S. Will come to a close. Some of the litigation will have gone to trial and we will see those. Lts, it isre are resu quiet on the litigation front until the Third Quarter of next year. Emily tell us about that. Ian they are setting records everywhere. The European Union is still looking at them. We have the u. S. Regulators having a look at them. This really doesnt look good for them. The momentum is very poor. They need some kind of victory. It has been argued by some that nobody really has an interest in taking this all the way to trial. Nobody wants concrete presidence, because you dont cedence,n you pre because you dont know when you have to go to trial. Emily i know you will keep us posted. and and matt, thank you for joining us. Infoer may have deleted they may have erased tweets and other data valuable toe investigators. Cybersecurity analysts say information could be lost for good. Facebook, and alphabet have been invited to testify in nt of congress on octobe in october. How cooper is pushing back on a ban. Onare streaming live twitter. This is bloomberg. Emily there is a vacancy at the top of samsung. The ceo is stepping down. He has been with samsung for decades, but says it needs new leadership after the bribery its thethat led to factor chief going to prison. Uber is making a stand in the u. K. They have made the decision to operating license. Transport for london said last month it had concerns about its safety and attempts to skirt regulations. The appeal allows drivers to continue operating in london while talks continue with cfl. The first hearing is not likely to take place until december, and further appears appeals could extend the process. Here is eric newcomer, who covers all things uber. Uber is still operating in london, but they have officially filed this appeal. What does it mean . Fact thatink the uber was alleged to continue to operate even as they lost their license was a sign that they will probably get to stay on the road. Emily also the Prime Minister has spoken out. Eric defended them. Tone. As changed the the new ceo apologized, said they had made mistakes. I think that appeased london and watched that process play out over time. I am sure london will try to extract or data transparency or other ways to supervisor uber. I think this process continues for a little while. Emily you have maintained that you dont think it is likely that uber will be banned in london. A are likely to recover ultimately. They are likely to recover ultimately. Eric their point is if uber is safe on the road, why shouldnt they be allowed to appeal . Emily what sort of reports are you getting from within the company about how the ceo is working out . People happy . Are people happy . That is front and center for him. He said to employees, it will be a hard six months. There are a lot of legal trouble ahead of them. There are five different criminal probes into uber right now. He knows it will be hard, but he is trying to bring people together and get the Company Moving forward. Emily we reported last week on the softbank deal that it was near closing, which means that if it closed, all former employees would be able to sell shares. Eric the board approved it. They approved the governance changes in the softbank deal. 1 billion for uber and 9 billion shares changing hands to new investors. What is happening now is the venture Firm Benchmark has this right of first refusal, which would allow them to buy into the deal at the price was low enough. Instead of just softbank buying shares, maybe benchmark could if it is cheap enough. What is happening seems to be a price negotiation that stalled at the deal a little bit, so it is being worked out. Highstakes. For theseertainty former employees who want to sell their shares come up or anyone who wants to cash out for any reason. Exactly, and the reforms are contingent on the deal going through. In every way, this needs to go forward. Emily explained the status of that governance reform . Roleoard proposition, the in the company. Eric they went to 17 board members. They changed to one share, one declining voting power in terms of shareholder votes. Officer of former the company if the former officer of the Company Became ceo, they would need to be approved i two thirds. A would make it harder to make travis push his way back into the company have too much of a role moving forward, while moving to a democratic voting structure. Emily this is contingent upon a deal . Eric that all needs to come together. Benchmark dropping its lawsuit against travis also hangs on all of this. I think people want to see it through, but there are billions of dollars at stake. Softbank in dragon air are looking to buy upwards of 9 billion worth of shares. That is a lot of money. Billion,he prices 45 it makes a difference. Emily i know you will keep us updated. Bitcoinmon may consider of broad, but the cryptocurrency just had a massive week, surging to 5,600 by the end of the week. Meanwhile, the debate over bitcoin rages on. Spokeerg surveillance with two men to get their opinions. It is a phenomenon. If you want to, we can discuss the specifics of that coin. The fact that it is not scalable, the fact that it is very anonymous, and there are mechanisms and ways to improve the functioning, but i think that many people who are talking about the coin talk from ignorance and from away of protecting myself from what i perceived to be competition. The thing about bitcoin is it is a generic name. There are new currencies that can be doing something. I got an email from jamie in new york saying dont let him answer that. [laughter] reporter what is your take on bitcoin . I am a bit cautious, because from has warned anyone joking about it. I dont claim to be an expert. I can see that a cryptocurrency like bitcoin, and jacob is right to say there are others, being right in the context and speeding up interbank transactions, i can see a utility in the Financial System for that. Or things like it can become a reliable store of value and replace other currencies, i am much more doubtful about. They are extremely volatile and uncertain. There is no mechanism that affects the supply of it. Response to aelf degree of volatility. In other words, there is a flaw. Those were our guests speaking on bloomberg surveillance. Coming up, hollywoods Sexual Harassment saga continues. This is bloomberg. Emily amazon is said to be making a push into sportswear. The company is enlisting some of the biggest athletics apparel suppliers. They previously ventured into fashion, Offering Office clothing, jackets, and dresses. However, pushing into active wear would bring fresh competition to some of the worlds biggest brands like nike, lululemon, and under armour. Meanwhile, out of amazon studios, the head of the film and tv unit has been suspended due to allegations of Sexual Harassment. He is accused of making inappropriate advancements to a female producer. The producer on one of amazons most popular shows, man in high castle, says that she harassed her at an event. This is after similar allegations led to the firing of Harvey Weinstein. Televisiontwo projects in the works with weinsteins company. Our reporter is joining us in l. A. To wrap up these headlines. Another actress, rose mcgowan, playing into this story. What do we know about what amazon new about him and when knew about him and when . We knew allegations had been swirling for a long time. We knew there were stories in the works, but amazon managed it at bay. In august or so, the tech news site published a story about tim masters, who traditionally rights for the hollywood theyter, and it turns out and other outlets decided they were not able to publish it. Part of the problem there were no women on the record accusing him of inappropriate behavior. After the Harvey Weinstein scandal and the allegations against him, they felt emboldened and went on the record with the hollywood reporter. Hollywood had to of known something because roy price is a high executive there. How much people knew and when, we are still figuring out. Amazon acted pretty swiftly. Given all thee, controversy surrounding weinstein, they did not want that to rub off on them. Emily at the same time, rose mcgowan the actress says that she told reuters that she was roy price that she was sexually assaulted by Harvey Weinstein and asked the company not to work with him. Bezos,een, she told jeff the the change you want to see in the world. Stand with truth. Tell us how was mcgowan fits in here. Lucas what you have seen in the case of Harvey Weinstein and a lot of these men who were of predation,rs harassment, you had a lot of isolated incidents. If someone stitched them together, it would have been clear that if all these allegations are true, the person should lose their job, they should potentially be prosecuted. But all of the incidents were one off. You had rose mcgowan telling roy price. You had all of these stories come out after the original whoies, adding more women said that harvey had done things wrong. You had Gwyneth Paltrow come out in a separate story detailing what happened to her. There is a long track record of a legend abuse. Long to cometoo out. Fortunately, you had women who were brave enough to come out and share and reporters who stuck with it and found the story. But in the case of Harvey Weinstein, this goes back at least two decades. Emily and yet, this was an open secret, at least about Harvey Weinstein in particular, and it took decades to come out. Where do you see the chips falling . What are people saying in hollywood . Lucas you have a lot of male executives who are looking over their shoulder, wondering. We know that Harvey Weinstein and rowe price roy price are the only two executives throughout Corporate America who have done something wrong or have been accused of doing something wrong. I have to imagine that more will come out in the coming days and weeks. This is not going away. This has been a constant troop and story in trope and story in the Silicon Valley as well. You have Companies Run by men who for one reason or another believe they are able or empowered to act improperly. Most people in the entertainment business believe that roy price will probably lose his job. We have not heard anything to that effect from amazon, but he is suspended indefinitely. In the case of harvey and roy price to what you said, harveys savior was somewhat of a life savior. Life behavior, a secret. Nown i spoke with someone who has worked with the Weinstein Company for years. Everyone knew he was an abusive loss, at least verbally. They heard rumors, but nobody had the concrete evidence. You need more good reporting to prove what people have done. Emily and women who are willing to come forward. Lucas shaw, thank you very much. We will continue to follow this. Coming up, an exclusive conversation with rick welts. Latest cover the teams trip to china and their new partnership with rakitin. That is next. Mark lets get a check of the first word news. President trump on friday announced his administrations new strategy for iran, which adopts a more aggressive stance toward the Ongoing Nuclear agreement with tehran. The president introduced punitive measures on the iranian want of the national guard. Pres. Trump i am authorizing the Treasury Department to further sanction the entire Islamic Revolutionary guard corps for support for terrorism and to apply sanctions to its officials, agents, and affiliates. Mark irans president released a statement responding to President Trumps comments today about the 2015 nuclear deal. In an address to the orang people, rouhani said President Trump does not know the deal is unilateral and one country cannot dictate terms of the accord. Meanwhile, israeli president Ben Netanyahu called the action courageous. Confronted the terrorist regime. Is leftranda deal unchanged, one thing is absolutely certain. If the iran deal is left unchanged, one thing is absolutely certain. In a few years time, the world terrorist regime will have an arsenal of Nuclear Weapons and that is a tremendous danger for our collective future. President trump has just created an opportunity to fix this bad deal. Mark civilians continue to flee as the u. S. Tries to reclaim the city. 70 of the city is said to be back under control. But Government Troops are still trying to evacuate 4000 civilians from the area. The kenyan Opposition Leader is questioning the wests commitment to the electoral process in africa. He warns democracy is in jeopardy on the continent because activists are unsure of international support. Odinga announced he was dropping out of the october 2016 rerun of the residential election but is willing to return if the Electoral Commission accepts commands for reforms. The u. N. Agency has a new chief. The board rejected a candidate from qatar, who was considered a frontrunner. But organization struggles through financial problems and criticism over the inclusion of the palestinians in 2011, the u. S. And israel plan to withdraw perceivedo over its antiisrael bias. Global news 24 hours a day. Powered by more than 2,700 journalists and analysts in more than 120 countries. In new york, im mark crumpton, this is bloomberg. Emily this is bloomberg technology. I am emily chang. The countdown to the start of the nba season is on. On october 17, defending champs the Golden State Warriors square off against the houston rockets. This season, the warriors will be debuting an updated look. Any will sport the name of internet based company with the companys local and a small patch on their jerseys. Rakuten is becoming the official ecommerce and video on demand partner of the warr