>> welcome to bloomberg west. i am emily chang. the homeownership rate here in the united states fell to the lowest in more than 19 years in the third quarter. the census bureau says that the share of americans who own their home fell to 60 4.4%, the lowest level since it first quarter of 1995. -- while drum a single shift,p may signal a some remain confident in the housing market. >> nobody understands what is

causing the hesitation at the moment. a much betters housing market than it was a couple of years ago. into highsn't kicked gear yet, even though you expected it to based on demographics, jobs, and rates. ismadison square garden considering splitting into two of locally traded companies -- two publicly traded companies. it has been considering the plan since a july which would separate its support steams and cable networks in one company and move its real estate and concert entertainment to another. time warner hbo is illuminating more than 150 jobs. the parent company time warner is under pressure to return to investors after turning down a $75 billion buyout offer from rupert murdoch's 20th century

fox. network security firm fire ice says the russian government may be finding a hacking group. the report says the group known in times8 operates consistent with russia. apple ceo tim cook says apple's new mobile payment system had over one million activations in the first three days after it became available and is now more widely used than any competing payment system. while apple has partnered with major chains like macy's, walgreens, mcdonald's, tim cook is now eyeing one more partner over in china. in an in your view during opening night of a three-day

conference come a tim cook says he plans to talk with alibaba's jack ma. >> we are going to talk about getting married later this week. we will see. leave?k now, he is still here. i have the most respect for jack. we love to partner with people who are wicked smart that have flexible teams, that our product-based, and that pushed us. and we like to push them. best partners we work the with dan jack as a company that is exactly like that. what he has done. he has brilliant guys in the company. if we can find some areas of common space, i love it. i love partnering with people like that. >> just a little context.

went on stage after jack ma who referenced mary j couple of times in his keynotes her. what could a marriage between alibaba and apple actually look like? >> let's assume we are talking about a hands-off marriage and not a full marriage. it would be a tremendous opportunity for both companies who both have strong positions with the chinese consumer yet both have increasingly competitive headwinds in their face. high end oft is the the phone market and for alibaba it is the increasing competition in the e-commerce market. a vertical integration of the

two where you have more of tiedba's payment options into actual payment options tied into the iphone would be powerful for both sides. apple, which is trying to sell more phones into china and is trailing in market share substantially,, i get what they would get. pay get outlibaba of an apple pay partnership? while apple is strong in china and their are johnny phones and android phones that have increased market share, everybody carries an iphone. apple, the tie into paymentecosystem and systems base would be powerful. what is going on with alibaba, their greatest internal

cognition is tencent internal to china. is much stronger on mobile than alibaba is. anyway they can get more deeply integrated into leading handheld devices, mobile platforms, the better for them. just done deals with retailers in the united states, basically being the payment arm for companies like macy's. if they can attack to that people in mainland china are on the website, the macy's website, they can give them an option to pay with alipay. how pivotal is something like this? >> it's helpful but i think the western retailers have lots of challenges in front of them before they are going to be successfully getting that consumer to the bottom of the funnel and i on the macy's website using alipay. melee, they have to have chinese line was websites. they have to be thinking about chinese merchandising and other things. but it's a helpful first step

and increases the friction for those consumers to ultimately lie -- ultimately buy. it is a good opportunity for macy's but they have a long way to go. >> in a partnership with the state companies, we are not talking about payable to use alipay at the short hills mall. this is an online opportunity for apple? >> they are looking at it as off-line integration as well. alibaba has broad plans in terms of what they're tried to do in china. alipay is like paypal in that you can use it off-line as well as online. there are both components. the is not about going to short hills mall. it is not going to the short hills mall to visit sex without visit saks fifth avenue. thanks for the call out.

>> jack ma didst the at the same conference where tim cook spoke here in he talked about alibaba's plans for expansion. >> we invest a lot in the states. we are going to invest more. it is very important that people say, hey, alibaba is so big, why not come to the usa? well i've come to invade the usa. i got my inspirations from silicon valley 15 years ago. to the to the usa silicon valley, they lies, all the car parks packed with cars and people working hard and i know the internet. and chinack to china dreams to build alibaba. silicon valley right now. he is going to hollywood. are these jack ma investments into lions gate or is this

alibaba investments? they are investing in marketplaces, in western media, in platforms to help them start to gain market share without actually having to make the alibaba move. but really, they are gaining western know-how. they are getting in bed with western executives to get the u.s. market, to get the european market, get the western consumer and i think this is what i call a rolling thunder strategy. we will see me more of these investments over time until they actually get their feet wet through acquisitions and then potentially through a buildout of alibaba outside of china as well. >> all right, thanks so much for joining us today. we will continue to follow this meeting between tim cook and jack ma. tim cook also blasted his home state of alabama yesterday for slow progress on granting gay

rights. what did his comments reveal about how the tech world treats the lgbt community. stay tuned for my interview with dip costs low -- with dick costolo coming up. ♪

>> this is "bloomberg west." criticizedim cook his home state of alabama for its track record on racial inequality and its inaction on granting gay rights. >> there is little, if anything, that matters more in our country than arm basic tenets of equality and human rights. i have long promised myself to never be silent in my beliefs in regards to these tenets.

as a state, we took too long to take steps toward equality. and once we began our progress was too slow. too slow on equality for african-americans, to slow on interracial marriage which was , andlegalized 14 years ago still too slow on equality for the lgbt community. pointed out that employees can still be fired for their sexual orientation in alabama and expressed hope that the future would be different. comments make an impression in the lgbt community, what do his statements mean for the tech world? i want to bring christopher fromjoining us .c.hington, d also willie brown.

what do you make of tim cook's comparing it to segregation in alabama? >> that's not new. time, we have been equating discrimination between gays and lesbians in the same way that this country has a long history of discriminating against african-americans. so it's not unusual. but i'm pleased that it is coming from somebody with so much power and authority in silicon valley. abouttalk so much discrimination against women, blacks, latinos in the technology community. companies like facebook and google have released their diversity numbers and are not satisfied with these numbers but they never focus on the lgbt community. is the stateu say of that community and technology, in the tech industry? >> it is really important that they do take a look at the rgb to community. they are focusing -- look at the

lgbtq minute he. they are focusing on inequality and they really need to look at that. . it is not out of the realm of possibility for these companies to take a look at that. microsoft and apple have for a long time supported their lgbt employees when the state did not require them to, providing them benefits and services. so why would they not include them now and make sure they are equally proportionate in their hiring. >> from a political standpoint, to have business leaders taking a flag and leading this kind of charge about equality in the workplace, to me it seems like a very different thing than what we saw in the civil rights movement even back before my time when a lot of changes happened. >> absolutely. was virtually no corporate participation in the civil rights movement. you recall that martin luther king jr., who became the symbol, really did confront america on

that question in the corporate world when he was arguing that the business of fair salaries and regular pay and promotions and all those kinds of things -- there was not anybody doing what cook just did on behalf of that issue. they did not believe that it necessarily meant any great benefit. mr. cook is fully aware that we ex staysin the same-s world where it is commercially good sense to be an advocate. although i think it is sincerity on his part. i don't think it is a business of dollars and cents. but it is clear that it constitutes good dollar value judgment just as it did african-americans to be right on this issue. >> absolutely. ofyou have vocal supporters

governor gavin newsom's support to get same-sex marriage licenses here in san francisco. how was the business community at that time and how does it differ to the reaction to diversity focus on african-americans? >> i cannot recall anybody in the business community stepping up and standing next to mayor newsom at that time and saying what a great idea. as a matter of fact, the political world condemned mayor newsom for doing it on the basis that we were putting at risk the potential success for democrats on the political side of the aisle. so he severed for a long time as a solo act. suddenly, that solo act has evolved with the whole world saying, yes, the courts saying, yes, multiple states saying, yes good but he lived for a long time by himself on the little island. >> in terms of what gay people want in the workplace from corporate leaders -- so many

corporate leaders watch this show who surely want to help. what should they be doing? >> i think it is important to recognize that, in many states in this country, i can get married on a saturday and on monday be fired from my job because i identify as lgbt. i think it is important for tech leaders, leaders in any organization, to take a stand, stand up and showed to their employees that they care about this issue, that they care about their well-being and care about their equal rights. i think it is extremely important for those leaders to make changes in their organizations but also stand up to stay at the delete is to make sure they are making changes that their employees want as well. we have seen for far too long lgbt communities have not been a and it is really important that, if those policymakers aren't going to be was to make the decision, that our business leaders are. >> is there a difference here or are there more challenges for the lgbt community?

it is not something that you can see. it is not a way that you can outwardly identify someone. up as anabout growing lgbt individual. you use the internet to self identify, to being coming out, to begin figuring out what is going on with your life. technology plays a crucial role in that. it is important to realize that lgbt came in -- of dbt individuals in this country do not have similar family structures. they do not have kids that will be able to take care of them when they're older. having employee benefits, having ome benefitsnd s that heterosexual couples enjoy a really important to us. it is important that the a bit -- that the business committee steps up and forces posse makers to make these changes because we are at a huge is advantage across his country and quite prickly around the world. >> -- and quite frankly around the world. >> i think mr. cook's

performance should be repeated by other persons throughout the business world. and in particular the world of technology. after all, the world of entertainment for a long time has been very upfront on this particular issue. the world of business has not been up front on this issue. when you ask the question, this business of how you actually identify, how you -- you know when some is black, but you're not sure when somebody is gay. that ought not to be an issue. you ought to treat everybody equal. >> former mayor willie brown, thank you very much. very important conversation. think you for having it with us today on the show. dick costolo says at new users is the company's number one priority.

>> welcome back to "bloomberg west." twitter reported third-quarter of 114% year-over-year but it's third-quarter net loss widened to 175 million dollars. the number of active users on the site grew to 284 million. cory johnson back now with more. the stock reaction has come up a little bit from the open. what is your take on what this company needs to be focusing on? 's at this stage in their growth, it is all about users. how many users you can add in the pace of monetization. 284 million,he

while it is up from what it had been the previous quarter, the pace of growth has slowed down a little bit. when you see those numbers, you see a sizable user base. growthre was a slowing going into the ipo in terms of the user growth rate. but those user growth rates turned around and started to pick up the last recorders. that changed -- the last few quarters. that changed as we saw yesterday. this is a matter if 280 million user company and that is all it is? >> yes, they want to be the place that people go for news and information all the time. when you see the user growth slowing and you see the timeline growth slowing, which is how often people will pay, that is not an incredible story that will continue to grow. that we will see

them us that we are going to see. >> my interview with this -- with the dick costolo coming up and his answer to all of these questions.

>> you are watching "bloomberg west." .'m emily chang twitter's user growth is slowing. dick costolo struggles to add new members. third-quarter revenue is up. to onee net loss widens two $175.5illion -- million. woman to go, i sat down with dick costolo and started by

asking what wall street is getting wrong. >> we take a long view about the business and trying to build a lasting enterprise. when we think about our aspirational goal to build the largest in the audience in the world, it's all about that audience composed of our monthly active users. beyond that, there is the hundreds of millions of people who come to twitter and don't login. there is the world of syndicated audience. it will reach across the entirety of the web. we reach into the mobile application ecosystem. it's the combination of the core or mostly active users who create the content we use throughout the system and the logged out audience and our syndicated audience. >> how do you measure the logged out audience? we know and measure how

medical come to our properties and don't login and what they do on the site. we have an understanding of the reasons they come to the site and how to use the site and service. same for the syndicated audience. >> can you give numbers on it? >> we have percents of the size. you monetize these eyeballs? >> so many of them come to the service through some expression of interest or intent. they have done a search for some #or a particular user. , a large number come to twitter and a login. they have a specific intent or interest they have expressed and we believe we can monetize those. >> is the revision for promoted tweets everywhere?

beyond just my feed. >> sure. the acquisition of our mobile ad exchange in the way we take it out and monetize those users is all about the scalability of the native ads. >> your push to developers -- you are giving them tools to build out the twitter ecosystem. how will you know that it worked? >>'s fabric becomes part of the foundation of the entire mobile application landscape -- it is the best way to help developers build across platforms. towe are the one they go to -- if we become part of the fabric of the mobile application infrastructure, we will be successful.

>> how does it drive growth and change the business? how involved are the developers in bringing more users into the ecosystem? >> there are two ways to think about that. one is the immediate term. it helps us grow our syndicated audience. developers can invest twitter content in their apps. it's one line of code and they can embed tweets in their apps. long-term come if we become part of the foundation of the entire mobile application world -- around the >> why not just say we are not going to be like google? >> we have a vision to give guidance. it's about credibility and helping investors high you think about the business. i don't want to be hopping around on a we don't like the

way you are reacting, we are going to take our ball and go home. i don't think that's appropriate. we are try to build credibility .ver the long-term >> let's talk about the medium term. 6-12 months. where do you want twitter to be? you wanted to move faster. what changes make that happen? >> three priorities. strengthen the core. that group of 284 million active users. we want to continue to focus on growing that. priority number two is reduce the barriers to consumption. for all those users who come to twitter and a login, make it easier to create quick, fast consumption experiences for them that don't force them to have to search for them to get them the moment they get there. , beyond that, adding new applications and services like

fabric and our investment platform and beyond. >> when it comes to the user experience, i know you guys have been working on products. the username can be confusing and difficult to search for people. what about doing away with usernames? of distanta set priorities we want to focus on addressmmediate term to what i've laid out as our priorities. that includes things like organizing content for new users so the moment they come to the platform and sign up, they get a great timeline. easy todes making it move fluidly between the public conversation on twitter and the private direct messaging channel. conversations into

the private channel. >> more of my interview with dick costolo coming up, including his plan to get more moms tweeting. you can watch a streaming on your tablet, phone and bloomberg.com, apple tv and amazon fire tv. ♪

welcome back to "bloomberg west." errorso conference roger company likeurs -- salesforce and tivo have used the event to launch new products. -- thisemo conference

is a conference for years that has been a big technology community. this conference has been so important. it's a lot more than a gadget conference. it's a place where you see the manifestation of a lot of big trends. >> half the companies are enterprise companies. demo has been around for 25 years. havenies from salesforce launched -- i've scoured of the world looking for the next great companies that are using technology to solve big hard problems. the big thing we are going to see this year? >> a lot of companies around the internet of things. it means a lot to different people. everything from wearables to smart home to even smart factory

devices. it's a post mobile world we are entering. on what to call this a post mobile device. at a motorcycle helmet that does a lot. >> they launched last year at demo. they went on to raise more than $1 million. they ended up raising $2.4 million. >> because of the heads up display. >> there is a heads-up display, navigation, a panoramic camera on the back. it doesn't look distorted. the most dangerous part is when you look over like that. you get your navigation and music. >> i get the gadget appeal of

this. but is it about this helmet? >> all of these devices from helmets too smart stethoscopes to smartphone monitors, they are taking advantage of the smartphone dividend. all the sensors and chips that have come down in price because they are being manufactured for smartphones. the scale of that has driven the price down and those components are available to other device manufacturers, even startups. you have a startup they can create something like this that would have cost millions of dollars to produce. >> take a company like apple that decided we are going to make an accelerometer chip and .rop that into a phone >> exactly.

we have nest coming in. all these smart devices in your home, the nest thermometer and carbon monoxide and all these different devices controlling different parts of your home. do they all talk to each other? is there a hub that controls it all? apple would like to be that have. there is a battle over who will control that home. all these devices are throwing off old data. world.enting the real on the back end, because of these enterprises and companies that are try to make sense of data dish how do you make sense of all of this data exhaust we are seeing from these devices? demo. all of that at you should come and see it. >> connecting the dots.

should i? >> go for it. >> i just need the motorcycle. there we go. >> looking good. cory johnson. bottom line begins at the top of the hour. mark is in new york with a preview. >> detroit's bankruptcy reorganization plan is now in the hands of a federal judge. will learn november 7 whether they can finally begin the process of moving forward after decades of poor fiscal management, financial planning and corruption. we examine the proposal and look at what lies ahead for detroit with jane woodley, a senior director at standard & poor's. >> thanks so much. my interview with dick costolo

coming sure to tune in later today for my chat with john ledger. ♪

>> i'm emily chang and this is "bloomberg west." twitter has had its share of criticism. not just by investors, but also new users who find the platform confusing and cup located. -- confusing and complicated. what is dick costolo doing to enhance the user experience? if we execute against our plans and strategy, the twitter should be valuable to every person on the planet. we absolutely care about all sorts of demographics.

it's incumbent on us to make it for and obvious and simple those users who come to the platform and get value from it right away. whether they log and start tweeting or whether they just come to the home page. >> can you give us specifics wherewhat demographics you would like to see more? are atcountries where we scale, the demographics of the platform mirrored the demographics of the country. the countries where we are getting started, the population might end up one way or another vis-a-vis the overall population. in the country's at which we are scale, the demographics mirror the population. >> china is a place you are blocked. how optimistic are you that twitter will ever be on china

one-day? >> we would love to be unblocked in china. is used by developers around the world. it's used i application developers in the u.s. and u.k. and china. there's lots of ways to think about the business we are building and how we think about the way we work in china. ,> when it comes to revenue your average revenue fell about half of facebook. you could show more promoted tweets if you wanted to. why not? >> we have always been careful about the way we have grown the business. , in the day we started april of 2010 when we first launched our advertising prop been methodical about the way we grow the business. any sense of

needing to change the way we approach that. twitter to you want be opportunistic. flexibilityancial this twitter have to make an acquisition? think the debt funding enables us to be very opportunistic about m&a. when we raised the money but we did not have a specific opportunity we were thinking about. be even more us to opportunistic. >> could you make a billion dollar deal if you wanted to? >> i don't want to speculate. it enables us to be opportunistic and to compete for deals we want to be involved in. >> you have brought in some new people. how confident are you that this regime is a lasting regime? >> management teams grow and

evolve and change over time. that is always the case. i love the team we have in place p we have developed all sorts of tremendous leaders across the company. i could go on and on about the folks who aren't on the front page of the media every day but who have helped grow the company. i like the team we have. we have a variety of leaders across the product now. we have daniel and kevin who are responsible for the very foundations of our revenue product. guy that led to the product side of the fabric launch. at host of emerging leaders. >> you guys are doing experimentation with the product. how much experience a are you --ng on a daily basis

experimentation are you doing on a good basis? >> on very involved in the way we take the product market. i'm very involved in that. we always have a number of experiments. the way we think about on boarding new users and driving engagement within new users. there are a host of those at any given time. what is one thing that surprised you most? >> i think the things that surprising most when you look at are thaten experiments it's sometimes completely rethinking a way of laying out an interface that you might think won't have some sort of lasting impact but drives

tremendous impact. profiles team came to me and said we want to -lay outly relay output , i thought that would be beneficial. when you look to the actual data behind the results and the tremendous increase in the volume of views those pages get, the volume of engagement people remarkable.'s the numbers on the call the other day. those changes are important. >> what is the best way for us to ss the future and long-term potential of twitter? >> we think about the total

audience across monthly active logout circle beyond that in the syndicated audience beyond that. if we are successful, we will build the largest daily audience in the world. >> my interview earlier today with dick costolo. it's time for the bwest byte. 20.9%. that was the pace at which t-mobile added new subscribers in the quarter they just announced last night. the non-burner subscribers. improving the growth rate from 18% the previous quarter. that's the growth rate that is really impressive. t-mobile is growing real fast. >> cory johnson, thanks so much

and thank you all for watching this edition of "bloomberg west ." we will see you later. ♪

>> from bloomberg will headquarters in new york, a mark crumpton. this is "bottom line." -- from bloomberg world headquarters in new york, i'm mark crumpton. this is "bottom line." to our viewers here in the united states and those of you joining us from around the world, welcome. we have full coverage of the stocks and stories making headlines today. matt miller is following stocks as federal reserve officials begin their two-day meeting. julie hyman tells us why amazon is searching for a few good moms. pe