mark: i'm mark crumpton. you're watching "bloomberg west." for the first time since copies of donald trump's 1995 tax returns were leaked, he is publicly addressing the issue. mr. trump: fixing our broken tax code is one of the main reasons i'm running for president. i have been saying from the beginning of this campaign how ridiculous, complex, and yes, unfair the tax system is. it is an unfair system and so complex that very few people understand it. fortunately, i understand it. mark: hillary clinton says donald trump represents the same rig system he is running to change. ms. clinton: well millions of american families, including

mine and yours, were working hard and paying our fair share, he was contributing nothing to our nation. mark: clinton addressed claims from the trump campaign that he was a business genius, saying "what kind of genius loses a billion dollars in a single year?" the vice presidential nominees will meet in their only debate tomorrow in farmville, virginia. you can watch the debate starting at 8:30 new york time. results from sunday the municipal elections in brazil are indications the workers party will not be competitive in the 2018 elections. i'm mark crumpton.

scarlet: i'm scarlet fu in for emily chang. this is "bloomberg west." stick costello says advertising is not twitter's only means of revenue. is gopro -- china has dj has been selling drugs to professional for years. the gopro's ceo ways in. and what can companies gain from digitizing the supply chain? we will discuss it with the former ibm ceo. first to our league -- facebook wants a rematch with craigslist. marketplace allows users to post items for sale. the social networking site started a similar service in 2007 also called market lace. facebook sold the business to another company. they are entering the space with the likes of craigslist -- craigslist. joining me from san francisco is bloomberg news reporter, sarah frier. it's the same name as its first iteration, so what has changed? guest: what has changed is most

users are on mobile phone. past iterations were on desktop computers. now people are on their cell phones and craigslist doesn't even have a mobile at. this is an opportunity for them. scarlet: a new iteration of marketplace has been in testing for more than a year, so what do investors know so far? guest: facebook has been testing the marketplace features within their facebook groups and what they have found is about 450 million people use marketplace features each month to buy and sell stuff. actual transactions don't happen on facebook.

it's more of a craigslist thing were says i'm selling this or that and ordinate either through a messaging app or e-mail how they want to exchange. scarlet: does it make money for facebook? guest: absolutely not. but it might help will get more familiar with transacting on facebook which could help raise book solve its problems. when people go to facebook, it's the place to hang out with friends. they don't really go there to shop. so people associate this marketplace mentality was being on facebook, that could open up opportunities for the future. scarlet: sound critical to facebook's effort to crack e-commerce. is this something people in silicon valley are excited about? guest: we saw a hit to you days shares, so maybe that is leaving investors concerned about what that could do to other layers.

in silicon valley, facebook hasn't quite cracked the code in e-commerce. they have tried a few things. they had the buy button and gifts that you can give people on their birthdays, including the prior marketplace features. i'm eager to see how it works. i'm not sure it will change things on facebook but if they have seen any behavior, maybe this is their way to capitalize on it. scarlet: bloomberg news reporter, sarah frier. stay with me because i want to give it to another story in socially you. twitter shares popping after dick costolo said m&a is not twitter's only option for growth. brad stone, our senior executive editor asked about this latest project and about potential sales rumors at his former company, twitter.

dick: they are trying to deliver programming that's very specific and personalize what you need to do today. delivering not just to you but to a small team of friends, family or coworkers connected to you. so you have some positive reinforcement from your team to keep you motivated. it helps connect you together to make sure i'm supposed to do something today and we are supposed to connect and do that together. that's the kind of social accountability we are trying to bring online networks off line in the real world. >> how do you anticipate making money from it? dick: it will be a subscription model. personal trainers cost up to $100 an hour. the boutique fitness classes are sometimes $30 or $35 an hour. for less than $10 month, you'll

have personalized programming. >> what got you interested in this? dick: i have been wondering why these platforms haven't really reached scale and its generally because they are focused on a niche like cycling or not any other kind of jim work out or they have this social component, but the twitter, instagram, pinterest model and there's no one there when you don't do something you are supposed to do, those things were great for what they are built for but we want to bog -- to broaden the appeal and deliver value to the people who cannot keep themselves motivated. it will be in beta.

>> i have to ask about twitter -- reports came out last month that it was possibly up for sale. google and disney have been mentioned. it is an acquisition the only way to restore twitter to growth and health? dick: i think twitter can be a successful, independent company and i think the world of the team over there. the senior leadership over there are -- i think there are lots of different ways twitter can be successful. scarlet: that was brad stone speaking with dick costolo. sarah frier is still with us. i want to pick up where they left off. in terms of the potential acquirers, we are google, walt disney, salesforce -- are there any that are a more logical fit? sarah: we're hearing a lot of different things from investors and analysts.

something disney makes the most sense because they are a media company and their close ties between dorsey and bob iger. she respects him for having turned round disney in the past. some people think silicon valley. they have tried to bid for linkedin and it may be their way to do it. i'm hearing more skepticism about google but they have retained lazard to think about whether to make a bid and they have a his three of being interested in twitter and then deciding not to go for it. scarlet: what kind of price tag or valuation have you been hearing? sarah: it's two soon to say. the bids have not come in yet and we need to see whether they

will. that could happen next few weeks. scarlet: is twitter content to wait it out for the best offer or is it in any kind of pressure to sell itself? sarah: jack dorsey would prefer to have the fourth quarter to prove out his vision for twitter as a live form. i don't think there's lot of urgency except for the fact people have been placing their interest on twitter right now. the bankers will try to make it work but jack probably once a chance to prove -- this is my speculation, that the live video stuff can drive growth at twitter. scarlet: perhaps just some urgency from investors. sarah frier joining us from san francisco, thank you so much. netflix shares popping 6.5% in monday trading. investors could be reacting to

takeover speculation which has led the company also to disney. however the likelihood of a deal has been discounted. they're looking at a slowdown in subscriber growth after a week second quarter. netflix has declined to comment on any deal. gopro wants to clear the air about it sales strength. and an early announcement from tesla sends investors into overdrive. this is bloomberg. ♪

scarlet: gopro's new cloud connected camera hits shelves on

monday. it's the first camera refinish two years. its highly anticipated by investors who sent stocks surging. in addition to its flagship action cameras, they unveiled their long-awaited consumer drone. just days later, the biggest drone maker in the world came out with its answer to the karma, leaving gopro investors uncertain of the company's prospects once again. redstone sat down with ceo of oh pro and asked him about prospect for the hero five line. guest: a lot of consumers are excited -- it's the two most convenient gopro's we have ever made and the two most connected gopro's we have ever made. when you plug it in to charge, it can load photos and videos to your go pro plus account so you can access that footage with your phone and make an edit on the go. so gopro is not just about to capture great experiences, but we are and and two and storytelling solution.

brad: gps, with technology, is a cheaper now? nick: $100 yes for the black edition. care of five session is $299. that takes our best selling session formfactor, the original session is the second best-selling camera in north america but we have made it four k and added voice control and the ability to offload to the cloud, image stabilization and make it easily the most powerful session camera we have ever made and a great rather to the hero five black. brad: there has been skepticism about your financial results

since it has been a while since you refreshed the line. what does it mean for your relationship with partners like walmart and what do you expect this holiday season? nick: there's a misconception that demand has been waning. the rate at which our consumer the rate at which our consumer customers are buying gopro's off-the-shelf, that rate of purchase has never been better and that was with 04 for where people are getting confused is they are looking at our revenue and we have slowed down to clear the channel and selloff all that in tory to make way for hero five. 2016 was admittedly a bit of a correction year because we entered to a product that confusing price points. brad: you have two products now are you expecting a record season? nick: we have hero black at 300-9980 have karma.

brad: how big of a part of the business to expect that to be?: it's going to be a phenomenal contributor to the ecosystem. our customers can fly gopro's and capture incredible aerial and handheld footage. brad: it is nicely full double. but since you announced it, you have a big competitor that announced their own foldable drone. they are pushing the envelope on some features. how do you expect their foldable drone to impact the market? nick: you had one and you crashed it on your first flight. brad: for the record, my brother crashed it. it is currently shelved.

nick: what we have done is make flying a drone extremely easy. we have customer service with replaceable parts and we are a very customer first company. if you have a problem, we will take care of you straightaway. if it is a technical failure, we will replace your karma, no questions asked. flying a karma will be a much easier experience and consumer friendly, but it is more than a drone and all of our competitors are making drones. if you want to capture aerial footage, that's all their product can do. the gopro karma is more of a

hollywood in a back pack solution. you can take it to the beach and if you don't use it, it's no problem because it's so convenient it did not given your way of having a good time. brad: other chinese makers are closer to the supply chain and arguably have a price advantage. does that outweigh the customer service advantage you are talking about? nick: i don't inc. so. karma is $799 without a group of -- without a gopro. so for $799, you can have it is argued leave the most advanced yet easy-to-use personal ill making solution that has ever been, rivaling technology that you always hear about. brad: that is the already existing customer based owners.

that: but you can get it bundled for $1099. even compared to anything our competitors are doing, it's not only price competitive, it's lower price than what we see being offered by competitors. we think gopro is delivering the most convenient drone solution at the most attractive rises. brad: i wanted to ask about snap chat spectacles is that a business you want to be in what do you think of the product? : i think it is clever and inventive and the more companies like snap and gopro can help motivate and encourage the bulls creativity, the bigger the overall market growth. scarlet: that was nick woodman speaking with the executive editor of global coverage, brad stone. coming up, how technology is taking up the supply chain and what it means for the bottom line. this is bloomberg. ♪

scarlet: microsoft has spent more than $3 billion building up its cloud infrastructure in europe, including a billion dollars in the past year alone. it's part of the ceo push to win over amazon and google. in an interview, sasha dela says it will open data centers in france next year and has doubled its computing capacity in the region. microsoft is focused on special cloud offerings. in europe, for the past three years, a startup has tried to change the relationship that kids have with their computers. they make a colorful, do-it-yourself kit that requires youngsters to build a kit from scratch and sees them off i series of coding lessons. ashlee vance traveled to london to visit their offices and learn what kind of long-term impact the toys might have.

>> founded in 2013, a startup based in london has built a do-it-yourself computer kit for kids. it costs $150 and teaches youngsters about electronics and how to code. these three lovely children agreed to be our guinea pigs. and to take a crack at making a camera. should we let you guys get to it? take it away. is it fun to build your computer and suggest grabbing an ipad? >> yes. ask what's fun about it? >> it teaches you about tech. i want to be an inventor when i grow up. the dude floating around the office is alex klein, a former

journalist who decided to give up on the most noble profession imaginable to help kids get their hands dirty with computing. in november of 2012, we were playing around and you can do so many things -- they were sending it into space and under the ocean but we were having trouble getting started. >> so you wanted to make a kit simple enough for a kid to build themselves. >> exactly. this generation is only experienced computers in the post-jobs era. the notion was to break apart and let a person build a computer from the inside out. >> it's all about creating tools that inspire and encourage

creativity. >> they are building apps worth millions, solving local problems in ways their elders never comprehend. if you give them something as powerful as a developer that can make a robot or server, you will see what this generation can do. >> you want to make something that does your cooking, cleans up your room and fixes your stuff. >> that would be amazing, wouldn't it? scarlet: that was bloomberg's ashlee vance reporting. coming up, we will get you ready for the week ahead in tact. what to look forward to with google taking on amazon's at go with google home. don't forget to check us out on the radio. you can listen on the bloomberg radio app and on sirius/xm. this is bloomberg. ♪

>> commonwealth bank ceo has told us trillion parliamentary committee that banks are at a level that maintain shareholder precedents, the first executive of the big banks to face an inquiry. thanks are already facing separate investigations into alleged rigging of the benchmarks. biologics is hoping to raise $2 billion as it seeks to become the world's biggest maker of biological -- it plans to sell 11 million new shares and another 5 million by its biggest shareholders. the company will gauge investor demand on october 26, with an

ipo price to be announced. the boj fueled real estate boom in tokyo may be starting to unwind. it fell to the lowest since the bubble burst in the 1990's, despite record low mortgages, sales plunging 32% in the first eight months as stagnant wages kept buyers away. the property sector slump may deepen. global news, 24 hours a day, powered by over 2600 journalists and analysts in more than 120 countries. this is bloomberg. let's get the latest on the markets with shery ahn. australia; we are just hearing the reserve bank of australia has left the cash rate unchanged at 11.5%. bloomberg is expecting it to stay, the central bank last easing in august, and have now left the cash rate unchanged as

expected at 1.5%. the australian dollar isn't reacting much. 680.s at .70 third quarter inflation data is out october 28. this was the first meeting under the rba by the new governor. we also saw australian bonds falling, and it is currently standing at 1.6%. japan is also back from its lunch break. they were gaining ground in the morning session; it's now up .7%, helped by that weakening in yen, which has fallen for six consecutive session, the longest losing streak since august. won is losing ground d for three consecutive

sessions. afx isn't moving much. it was in the red throughout the morning and after the rba rate decision was left unchanged, not moving. ♪ scarlet: this is bloomberg west. i'm scarlet fu in for emily chang. time to dive into the text stories that are front and center in the days ahead. first up, tesla. shares soared after the electric car battery maker announced on sunday that it beat analysts estimates for third quarter deliveries. it followed consecutive misses in the prior to quarters, so what does it mean for their ambitious sales forecasts? my guest joins us from detroit.

tesla just closed out its quarter on friday and if you come inside the bloomberg, you can see the number of deliveries for the third quarter some passes anything it has done up to this point. is tesla usually this quick to come out with a date? guest: they had good news to share, so they wanted to share us -- to share it. the analysts were looking for about 20,000 deliveries or maybe 22,000. they came in at 24, so this has raised a lot of optimism about raising the target elon musk has said to sell 50,000 cars. scarlet: what does it tell us about tesla possibility to prioritize or what it was prioritizing before? guest: was a great scoop about the memo sent to the employees, telling them to sell because they're going to raise the more

capital. they want to show they can be a profitable enterprise. what all of this shows is when they put a push on, they can move the metal. scarlet: we have another chart that illustrates how tesla is building up its inventory. the white bar shows the number of cars used minus the number cars sold, so the inventory. the blue side is the value of their finished goods and the criticism has been tesla does not have enough cars to meet demand. as the company put that to rest now? guest: they certainly seem to be meeting demand now and they did eat to build up in the tory. they had the model us and the model x and they're going to add to the complexity with the model three coming at the end of next year. they are trying to show they can juggle a lot of things in his

was a good sign of that. scarlet: a bloomberg gadfly reporter pointed out that the last time they had a surge in delivery was 2013. do we presume profitability will take a hit with deliveries jumping? guest: not necessarily. normally in the auto industry, if you sell more cars, you make more money. that should be what we see here and that is what is trying to show. scarlet: we know tesla needs to get a pop in the share price because it needs to raise more capital. do we know anything about a timeline in terms of raising capital? guest: i think they just want to show some positive numbers. it has been a long time since they had lacked incan and want to show they have been a profit making venture. that is hopefully what it will

do for them. scarlet: we want to switch years now to the salesforce annual dream force event. it will host an unusual land of business, technology and philanthropy. bryan womack joins us from san francisco. this event link its downtown san francisco. what usually happens at a dream force event? brian: salesforce is a marketing machine and you see that on full display in san francisco. it not just people going to the event itself. it's a big deal, even for san francisco. dream force is sort of special. scarlet: how much insight do expect the company to share with us? brian: the big one will be artificial intelligence. artificial intelligences becoming a much bigger issue in

silicon valley and salesforce is not going to miss that trend. talking about new things around what is called einstein and helping people do cool things by letting machines figure out what they could do better. it will be interesting to see how it plays out that will be a major theme at dream force. scarlet: something else investors will wonder about is the company's m&a strategy. the company made nine purchases in 2016. this is a function on the bloomberg that shows the most recent acquisitions by salesforce. what can you tell us about the strategy when it comes to acquisition? guest: this is a big issue and will overshadow dream.

investors are concerned about what's going on with the him and a strategy for salesforce has been very aggressive, spending over 4 billion dollars and when after linkedin and got outbid and didn't get it. now, we hear they are going after twitter. there some angst about what is going on here. there is some angst about what is going on and how wide is this not going to be? definitely a lot of questions. scarlet: and the question we have is how might twitter fit in with salesforce? based on the conversations you have had, what the logic behind such deal? guest: there's a little bit of linkedin here. linkedin is an amazing trove of data.

with twitter, you have some of that awesome data. there are a lot of executives and white collar workers that could fold into that salesforce business software. make no mistake, it's a social media platform and it's not like a business-focused linkedin. it's not as obvious as linkedin. a lot of people saw the logic in linkedin but twitter is a harder cell phone scarlet: let's move to google because they event is set to kick off on tuesday with the company set to announce new products to its portfolio. what are we expecting to hear from this event tomorrow? guest: it's another event with a tech company talking about ai. we are expecting to see google put out their home device, which is there answer to the go. it's like a search and virtual assistant wrapped up in one.

that will come out with a new line of phones every fall. google has put out there line which is what they imagine the ideal android will look like. there is anticipation they will exert more control over those phones. scarlet: these are called pixel and pixel xl, so they are rebranding it. why is that? guest: i think they look at the ecosystem and it's very fragmented. they have dozens of oems and are not a to the latest software. whereas apple has the advantage and out the iphone almost immediately. google needs to compete at that level and they need to get at that and push android ahead. sales have not done very well and perhaps they're just

starting from scratch. scarlet: how big of a threat do these models those for the iphone which has been losing global market share? guest: google has historically not been hardware very well. not with the nexus, not with google glass. the one device have done well with his the chrome cast. that came in much better than the alternatives out there. i see no evidence that they could compete in that. scarlet: what is -- how does it stand up against the amazon at go? guest: they have not given me a product to test out but there's a lot in the ai and machine learning world and the understanding that google has this massive fortress of data, much more than amazon or apple and it might be even better. there some questions that alexa

might not be able to field which google could. there's a case to prove. the ago has done well but it's only a small, niche market. scarlet: when it comes to google's efforts in ai, is it a leader or follower? guest: it's a leader. the critique is they've done very well in ai but it doesn't necessarily translate to products yet. amazon is not as advanced on some of the research but they put out a go first and are leading the path. scarlet: it has the advantage of being the first mover. thank you. still to come, how technology is shaking up the supply chain for global companies and what it means for the bottom line. we will speak to the former ceo of ibm. on tuesday, we had to st. louis

where senator tim kaine and indiana governor mike pence will face off in the first and only vice presidential debate. join us at eight: 30 p.m. in new york for special coverage. this is bloomberg. ♪

scarlet: blue apron said to be on the path to surpass a billion dollars in revenue over the next 12 months. the groceries startup would hit the target if it cap surpassing monthly sales totaled. bloomberg news reported blue apron would be valued at about $3 billion in an ipo. taking a look at how technology is being used to deliver value across the rest of the economy, the center for global enterprise released a report focused on how

digitizing the supply chain can drive revenue growth. what does a digital supply chain look like? joining me is the chairman of the center for global enterprise and the former ceo of ibm and an independent advisor for bloomberg. i imagine most supply chains incorporate a lot of technology there, taking advantage of what is available. so forgive me for asking a basic question -- what's a digital supply chain and what do people get wrong the most? guest: historically, the supply chain was about the movement of goods and lower price point and higher service levels. with big data and analytics, there's a lot more available. drones and self driving vehicles, robotics, 3-d manufacturing and 3-d renting, those kinds of technologies are impacting the supply chain from

the conceptualization to the socioeconomics and pricing costs associated with it. if you think about it, it's digitalization of the supply chain and to end whereas historically, it was analog. scarlet: what industries or companies are ahead of the curve implementing this? guest: we had 24 companies work with us ranging from dow to american express to a few companies from outside the u.s. had a broad cross-section of companies across all sectors and all of them are working on this very same topic because it creates a huge advantage when they get it right. scarlet: in a world of slow growth, there's a lot of interest in up my thing any digitization of the supply

chain. how much to they have to put into something like this? guest: there are two things -- to get it right, you have to work on four things -- people, demand, shaping of revenue curve, you have to work on the technology that supports all and finally, you have to work on risk. those are not necessarily in investment items. if you do this well, you will improve the revenue 10% and reach your cost 20%. that's a winning formula for any company. scarlet: it's hard to resist those double-digit percentages. and people talk about digitization, there is fear because it leads to people asking whether their jobs are in jeopardy. what with the wide spread adoption of things like that mean for the workforce? will it lead to mass guest:

layoffs? is a skill shift and we've always gone through skill ships -- an agrarian economy to an industrial economy. you have to skill up. the question becomes, there's going to be tons of jobs created. take fiber. there are 6 million open jobs for cyber. i'm doing a study for president obama. there are a million jobs open in the united states. the key is to grow the skills and if you are an individual, how do you create the skills? anything that can create revenue can generate profit and more reinvestment. scarlet: i would imagine this is something presidential candidates would want to press on rather than going to this

idea that you can bring manufacturing jobs back from abroad. it seems like this is a case where that ship has sales. -- that ship has sailed. guest: historically, within the supply chain, lot of the death moves from i will call it was to east. now with this supply chain, you can optimize regionally. as a political candidate, you would see the benefits of these kinds of technologies in the could drive investment into your region which would generate more jobs and it's all about jobs. this entire area, the fact that 24 ceos volunteered their head of supplies is a statement of huge interest in the subject. scarlet: is expertise in supply chains a way to get to the ceo job? for tim cook, guest: it worked

out that way. tim and i worked together at ibm before he went to apple. if you think about what skills you get in this area come you get horizontal skills. but you can see the business from and to end. you can see it across the country -- across the company. what has happened in the past, companies like airbnb are uber, they've trained vertically. the reason we created this center was to create curriculum learning surroundings horizontal approaches. therefore, anyone who has that kind of skill that can see a company and to and will be better positioned in the future than the world i grew up in 30 or 40 years ago. scarlet: what do you think of what is going on with ibm in

terms of how they are spending their cash they are much more aggressive on the m&a front. guest: i don't know, because i've been out since 2011. i have no factual input and i think it is a smart thing to do. if you can't do it organically, that's still $6 billion, more than almost the entire industry spends. you will have to buy these kinds of technologies. scarlet: thank you. we appreciate it. tomorrow, do not miss our conversation with roger altman coming at 7:30 new york time. this is bloomberg. ♪

scarlet: google will reject eu charges that it is operating a monopoly. the newspaper says the parent company, i'll bet, will respond in weeks to three separate charges of has broken european competition rules. it has to do with its online shopping business and android operating system. now to a story trending -- toyota plans to sell a tiny robot to buy companionship in your car. it will hold basic conversations, identify human emotions and react to automotive applications. it will be on sale for $392 this winter in tokyo. that doesn't for this edition of "bloomberg west." tomorrow don't miss our atversation with chris sacca 2:30 p.m. new york time. this is bloomberg. ♪

youssef: news signs of division at the fed. bloomberg is told exclusively that in november a hike remains possible. another member warned caution. all still yet has a strong rebound in commodities. -- australia has a strong rebound in commodities. rejuvenatean aims to