♪ mark: i am mark crumpton. you are wahing "bloomberg technology." ban ki-moon criticized an airstrike in yemen that killed at least 140 people in a funeral hauled over the weekend, calling for an investigation of rights abuses in yemen. newly leaked e-mails by wikileaks provide a where glimpse into the inner circle of hillary clinton over her husband's business dealings. there was concern about damage to former bill clinton's

reputation and potential harm to his wife's presidential bid. the e-mails also revealed clintonat the foundation while clinton was secretary of state. mitch mcconnell is remaining silent surrounding the latest controversy involving donald trump. not have any observations to make about the presidential election. house speaker paul ryan says he will not promote donald trump or revoke his endorsement. he said on a conference call his focus is on keeping the majority in the house. he talked about balancing the budget, jobs, and illegal immigration, and not wasting time on the republican nominee. news 24 hours a day powered by more than 2600 journalists and analysts in more than 120 countries. i am mark crumpton. "bloomberg technology" is next. ♪

emily: i am emily chang, and this is "bloomberg technology." buyers appearing to lose interest in a deal, but these deal isphone disaster with how people can capitalize on the chaos, and bluebird takes on india, planning on becoming the market leader. -- and uber takes on india. twitter shares plummeted today during monday trading, as interest in a buyout of the company cooled. they have gotten interest in last weeks from google, salesforce, and disney. suitors, according to people familiar with the matter. jack dorsey penned an internal memo to employees, rallying supporters around twitter posse gift live streaming, saying "we

, can do this." we are the fastest. we want people to be the place where people check what is happening. and the first place to break what is happening. joining me is business stone -- biz stone. biz: thanks for having me, emily. what it has been like for you, watching the ups and downs, selling from afar? biz: someone has always made offers, and we have always declined. you know the first famous one , was the facebook offer. which was based on a joke, essentially. story tell you the whole some other time. it was real funny. emily: i know the story. mark zuckerberg made an offer. and you guys -- biz: i made up a number that was way too big for anyone to accept and he said, "ok."

and then we try to get out of it. emily: which you did. downs, i do not follow the small ups and downs. i don't look at the stock on a quarterly basis. i think great leadership things in terms of decades, not quarters, and so i -- i am just waiting. jack is -- in the grand scheme of things, jack has just gotten the job, basically. he has only had it for a year, a year. that is nothing. that is a quarter of how long we go to high school. emily: how do you think he is doing so far? biz: i think he is doing great. the first thing he did was he reset expectations and said what the truth was. he did not care what happens. he said, "this is the truth." now, we are resetting, and he set about doing what he always does, which is thinking

long-term, getting -- making as he said, i have got to make a lot lot of moves, and to me of putting certain projects on trajectory and putting the right people in the right places. that might take a while, and then once it is all set up, it -- you execute, and things go really well, or they do not, and you redo it. emily: you said the last time we talked, which was about six months ago, that wall street inks in quarters and jack thinks in decades. do you think wall street give him the time? biz: no. emily: so then what? i am not actually a financial guy, so i do not know twitter ist, but

like basically something we cannot uninvent anymore. and it is part of the news. it breaks the news. the news itself loves twitter. it has changed democracy, politics, news, everything, and it is not going away. the world needs twitter. so youis here to stay, cannot give up on that. it is stuck here forev. emily: i know you are still close to jack. what do you know about a potential sale? what do you know about what the board once and what jack -- what the board wants and what jack wants? biz: i know nothing. everynd i have lunch wednesday, and the kids play, but we stopped talking shop a long time ago. occasionally, he will run by an opinion.

i am on the board, and i never think to ask them about -- i always forget that he is on the board of twitter. i just feel like that chapter is over for him. emily: so what do you think will happen? how do you see this playing out? biz: see what? emily: how do you see the sale or "no sale." biz: i don't know if this thing was even a thing and twitter never said they were for sale. i assumed that, since they didn't, they weren't. somebody recently asked me if twitter can be independent. of course. i said, "are you crazy?" there are hundreds of millions of people who use iy dat ever and it has multiple tens of billions of views every day.

compare that to a tv network, and that is crazy. i know you know him, and he said that twitter is a story of under achievement and potential never realized. and he said he is hoping for a sale. how do you react to those comments? i am not hoping for the same thing, and i think -- you cannot say "never." there is still many, many years ahead of twitter as an independent company, and there is so much time to adapt and improve and move with the times. the core of twitter is live, breaking, go-there-first. and historically, the people who get the information first win. you are in finance, if you are diagnosing a medical problem, whatever it is, across any field if you get the , information first, you win. and that is sort of the basic

elemental thing. of twitterthinking as these days, so twitter can easily survive as an independent company. emily: what do you think about the new life strategy? and, by the way, i am personally excited that bloomberg will be streaming on twitter tomorrow. you have got bloomberg television shows. you have got the debates, the nfl games. biz: stephen johnson wrote a book called, "where good ideas come from." and he wrote, he wrote about something he calls "the slow hunch." at its has always been --t during lives, -- lies shared moments.

like when the plane was in the hudson. it brought everyone together and they were going crazy. anytime people are showing things live twitter blows up. , so, focusing on this, looking at the brightest spot of twitter and then unpacking that going , forward, that is a fantastic strategy. emily: now, chris used to be the biggest shareholder of twitter. he told me he has sold shares. because he is an idiot. you still have shares. the i am not sure he was biggest shareholder. emily: the biggest outside shareholder. biz: i think it was somebody else's money. what was the question? emily: what are you doing with your shares?

biz: >> i am holding on. my advisers said, "can we do it now?" i said, "no." do not sell them. emily: that is conviction. out what isfind going on more later in the show, and we're going to talk about presidential politics. biz: oh, goodie. up, samsung is asking all partners to stop sales. there are new exploding samsung phones and it is not clear if there is problems with the replacement note 7 that samsung distributed after recalling the others in september. we will check in with our tech team from tokyo later this hour. coming up the second , presidential debate had a record-setting debate on twitter. we will explore the impact of social media on politics. this is bloomberg. ♪

♪ emily: twitter is reporting that the second presidential debate as the most tweeted ever, and big driving force is millennial's. what do they care about, and how will social media influence their votes? joining us is caroline, and still with us is jelly. caroline, i wanted you to join us because you have done so much on what millennial's care about, particularly this election and , one of the things is gender equality. i am interested how the community reacts to this tape that surfaced and the post-debate conversation around it. caroline: i think the debate was a surprise.

we ran a focused group this morning. we are running another one. the assessment we are receiving is "where are the millennials, and where is the issues that we care about?" how is this the debate we had after the 48 hours of information we had that came out over the weekend? it was a surprise to everyone and not a good one. millennialshat do care about? caroline: millennial's care about social issues and international issues that have come up during the election. in particular student loan debt, , gender equality in the closing the pay gap is coming up as the most important thing. emily: your reaction? it up on mye had wife's computer, and i did not catch everything. what i said was that it seemed like a middle school argument.

i heard like -- i just got bits of it, but it was like, "you groped women." "you deleted e-mails." "you groped women." "you deleted e-mails." i was like, one of these people is going to be president? but my wife said that hillary said lot of smart stuff. paying more attention. emily: a race to the bottom, and i am wondering how younger voters are reacting to this, given that they are 31% of the electorate, but not all of them vote. caroline: we are in a really interesting position, because if you look at the numbers, the millennials are equal to baby bloomberg in terms of voting in this election. they are 31% of the electorate. the question is, will millennials turn out? they vote.

caroline: they vote. traditionally they vote 20 , percentage points more than millennials. of youngmmunity professionals, 93% were planning on voting, and the 7% who are not voting said they are not voting because there was not a candidate worth voting for. so we are optimistic about millennial's in the context of this election, but we are becoming a majority of the electorate and are becoming a majority of the workforce. during the term of the next president, this is a president who needs to be able to engage millennials and affect change on issues that millennials care about. emily: now, a big night for twitter, as we mentioned. i am curious. told hillary clinton and donald trump have used twitter to great effect. i am curious. some people claim that twitter

and silicon valley created donald trump or gave him a platform that he would not have had. biz: from what i understand he , has always been manipulative with gossip columnists and getting his name out there, getting people to write things about him that he wants and push the right buttons. i think he is one of those guys who i recommend, you know, do not tweet while you are drunk. you know? or some people just shouldn't tweet. [laughter] but, yes, like you said, it has sort of become woven into the fabric and his tweets are a big deal. tweet can make a whole new cycle. -- news cycle. emily: how is twitter affecting things?

biz: not just twitter. caroline: it is positive and allows us to better understand the underrepresented voters. so i am all for the social media conversation continuing to amplify. if you took a step back to look at yesterday's debate where were , the millennials in the audience? where were the millennials asking questions? the questions related to what millennials care about. just surprising to me. biz: they are on twitter. i agree with caroline. what is great about twitter during the debate is that people get to argue with each other who would not normally argument each other, and minds can get changed and points can be brought up that are not being brought up in the debates. and that is what is great about it.

and other social media. whatever you can use whatever , tools you can use to get in with others is great. emily: silicon valley. a lot of people in silicon valley have come out and if you simply -- effusively supported clinton and been against trump. which candidate is better for innovation? caroline: it is fastening, and i will take the position of representing technology. there was no tie into silicon valley, was no tie into silicon valley, note tie-in to innovation. i would like to see more of that. emily: do you have a candidate you prefer? caroline: i am here and representing the millennial voter. emily: what do you think? i kind of stay out of

politics, kind of like in my early days of twitter, i had a switzerland-like stance. but this time around, i believe there is a wrong choice. believe me. believe me. and i would like -- i think a present -- president would become a first of all, historic, but also, i think it would help change the way americans think ,bout women in the work ways and that goes all of the way , early education childhood education. i've worked with donors a lot, and you know, little girls are traditionally pushed towards the arts and humanities. these sorts of things, but that is starting to change. into science and math and so forth, and i just think that having a woman president would

be a step in the right direction. emily: that sounds like a vote for hillary clinton. biz: it does. emily: ceo of twitter. thank you for joining us. we will be back with more. ♪

♪ emily: jelly is integrated with twitter and users can ask questions without leaving the social media platform by using a hashtag. "ask jelly." back with me in the studio, the ceo of jelly. you want this to be the search engine of the future. for every question, there is a person who has an answer. are only human

beings. biz: a.i. assumption of classic web search is that for every question, there is a document will list on the internet that is good enough, and you know a lot of stuff, and you have not published everything you know on the internet, so we can find you, and we can deliver you a question that you know the answer to, and you will be happy to answer it, and it turns out people love answering questions when they know the answer, and it is a weird fluke of humanity built into our dna. emily: tell me about twitter. going on with twitter is what you said. you can ask a question. it was anonymous. the first time around, we did not do that, but we realized, when you ask a question publicly, you severely limit

what you would normally ask, but people ask questions on twitter and they have for a while because they want answers from other people, so what we do, is elly onadd the #askj twitter, we added into our search engine, which is what we have created. it does have machine learning. it does have some a.i. and some asked thef, but you question, and it sends you back to me. emily: very quickly, i know you are optimistic about a google and amazon home. biz: sometimes the best interface is no interface, and we are just really excited to be chosen as a launch partner for the google home. hopeswe have very high for, because our search engine works really great over voice,

and the answers are very concise, so just read them out loud to you. emily: all right, check it out. #askjelly. biz stone, the ceo. we'll be talking about exploding phones next. this is bloomberg. ♪

emily: welcome back. says there are no system aggressive in his country's financial system. speaking at a conference in macau, he said the overall leverage ratio is not high despite the debt structure. they can achieve their economic developing goals this year and maintain reasonable growth. says --fed president argues again for keeping interest rates low, saying the u.s. economy is not yet at full employment, and inflation remains below target. he also told an audience in sydney that premature tightening would carry high social cost to

-- social cost. during --ts come counter a frequently hawkish tone from his other colleagues. samsung stocks following after more leading carriers drop the device. korean authorities say there may be a new defect in the phone, and are advising owners not to use it. samsung has lost more than $13 billion in market caps this week. this is bloomberg. emily: -- seen seen things pay off a little from earlier gains. we have signed -- we have seen taiwan go negative. also singapore. weighing, down 2.2%.

we see some upside coming through in shanghai. after a positive session monday, saying a lot of good things coming through in energy and steel. japan coming back after the lunch rate, still -- lunch break , still looking pretty strong. weakeneds ecb yen against the dollar. japan playing a little bit of catch-up during monday session. still sing some positive moves from energy players. a look at some of the players we have been watching. samsung today telling users of the note 7 to powerdown. shares down by 7%. , up 4%ooking pretty good as it says it will cancel 100 million shares. this is the biggest decline on the topics -- topix.

that is as it cancer drug disappointed. that is the state of play across asian markets. emily: this is bloomberg technology. this time to greet the week in tech news. there are two big events on our radar. first off, the end of the smartphone wars could be around the corner. apple and samsung square off in the highest u.s. court on tuesday with a $399 million reward at stake. after six years and hundreds of millions of dollars in legal fees, one of the most important cases these companies have ever spot -- ever fought gets underway. thursday, sony officially enters the vr headset game. it has a 40 million plus user console base. we will break down there

competitive strategy in just a moment. washington,et to where supreme court reporter joins us to discuss the apple simpson case. there are plenty of apple samsung cases. which one in particular is on the docket this week? this has to do with apple's claim that samsung copied the design of the iphone. the allegation is that that was central to the iphone. samsung would not have been nearly as well without it. billion, which even for apple and samsung is an amount they are fighting over. are some lower court proceedings that could mean an additional $180 million for apple. emily: i remember being live on the set as the headlines from the original verdict were rolling in, and things have obviously changed since then. talk to us about the back and forth over the last few years,

and why we think the supreme court might do anything differently. this started with four dozen or so lawsuits at various points between the two sides. now there are only a couple cases left, so we sort of narrow down what we are talking about. a federal appeals court said that for infringing apple's design patents, samsung had to give its total profits from 11 disputed phones. samsung appealed to the supreme court, and the supreme court will consider whether that is too much, whether the lower court needs to look at which parts of the phone were actually affected by the patent, and whether the amount should be something much less than that. emily: how are we expecting this to play out? these are two companies that have a lot on their plate. we will be talking about the samsung recall issue a little

bit later in the show. how big is his as a priority? priority thatot a was five years ago when the suits were at their peak. apple has this $15 billion tax bite with the eu that is obviously a much larger sum of money. who knows where the battery issue with samsung is going to go. this is the last of the smartphone cases, and for each side, validation still matters. becauset to end this, they feel like they have been wronged by the other side apple things is to were stolen. samsung says they are innovators and came up with their own design. r bloomberg news supreme court reporter. i know you'll keep us updated on what happens there. thank you so much for that update. i want to turn now to gaming and sony's they stationed your headset hitting shelves this thursday.

how do you think this headset compares to the oculus rift? >> when it comes to the marketplace, i think sony has every reason to believe they're going to crush facebook on the oculus rift, to the point where those businesses might not even exist two years from now because of the dominance and a potential that sony has there. they have such a big marketplace already. if you look at their device, they have a good relationship with game makers, they have some reviews for some really solid games coming out. the pipeline is fantastic. their relationships with the good game makers go back so long , and they're already so many units out there right now. look at the pcs that can already at twice that amount. it is so much bigger than oculus could even hope for.

if their installed base is that big and you are a game maker, you're going to have put 10, 20, $30 million in developing an ai game. what he going to do? develop for the tiny platform of oculus, or where you have a big marketplace? .mily: it is also a bit cheaper what is sony's broader long-term interest in br? -- the are? -- vr* >> when it comes to price, it is not even close. rift isn't $600 to run it. it is in fact $1200 to run it. the htc five is $1300. the playstation br is $400, and

that is nothing in comparison. emily: you need to have the console. >> the console and $400 is nothing. you're looking to units that are 30 or 50% more expensive. if a console is 20 percent more expensive, it gathers dominant market share really quickly. that is way too big for these other companies to be able to compete. want to play, they will get the one they can afford to play. the personspoke to who runs all of this would -- all of this. what if you have to say? experimentsin our at our experiences, it is so extents -- intense, that it lends to more of an arcade gaming experience, tight, intensive play for 10 or 15 minutes seems to be the sweet spot.

who knows? it is new. >> all that matters in game making -- what is important is not the capabilities of the game on the console itself. all that matters is how much fun the game is to play, whether it is angry birds or pong. tetris and require a lot of computing to play, but it was a dominant game because it was so fun to play. these guys have experienced that oculus just doesn't have very -- does not have. emily: texas was my all-time favorite. -- tetris was my all-time favorite. julio -- there is a secondary share of sale -- this is just months after raising $170 million in its public debut. despite the recent plunge, twilio's shares are up again.

the first report is scheduled for november 3. beginning tuesday, bloomberg technology will be streaming live on twitter. you can catch this show live. we want to hear from you. speakingwe will be with john lilly. send us your questions for him to at bloomberg tech tv. we'll answer them on the show. if you always want to know what goes on behind closed doors, check out our new podcast, presented by brad stone and his quite rivalries and uncountable truths. available on itunes. this is bloomberg. ♪

emily: china's third-largest private equity firm is making a big bet on artificial intelligence in the u.k.. planning on backing early artificial intelligence startups and launch a new company from scratch every year. we began by asking how this partnership came about. >> this chinese conglomerate wants to be at the heart of this and they saw us in this model, which is a multi-sector accelerator that would put them at the heart of the london and european tech scene. emily: how will the information be swapped between the two

countries? how much will factory companies be getting access to china? >> it is an exciting thing about this deal. they are going to be doing more and more with artificial intelligence and big data in china. it is important to note that this is an area where the chinese academics are pretty excellent and there are interesting papers coming out of china and they will be investing more in china and there will be a bridge with the chinese artificial intelligence and what is happening in europe. >> is the u.k. a hub for this? >> i think there is a huge amount owed to the academic institutions. he is now a key person behind artificial intelligence.

google has set up a global artificial intelligence center in london and other companies are following suit. it is a thing where you get key moments in the creation of a net -- of an ecosystem. you have a wealth of academics and thought leaders like nick bostrom from oxford, who has taken investment from elon musk. the deals do seem to be coming fast. a sense of what talent will be drawn to the u.k.. how many companies do you want to be starting, and what companies are within the incubator and accelerator focusing on artificial intelligence? >> this goes across many of the sectors. we have media, and ai can go

across all of those. we have taken in an accelerated company that is doing smart contracts. it is clear that as an example of a company that could benefit from artificial intelligence. another one has $1 million and is trying to use artificial intelligence to improve your fitness and make sure it is really personalized. the same will happen in and technology -- education technology. the artificial intelligence businesses we build the next celebrate, the model is we will launch from scratch to businesses per annum. we will accelerate five per annum in that sector. what happens now is the go and collect companies that are brilliant and we are saying that we can really help and we will give you the best of the best to

help, and we have these large corporate's at that will leverage you to success, and we will enable you to do partnerships. that is what is important to recognize about london is that it is world-class for all these fantastic corporates that we have. there has been height syrup -- hype surrounding hyperloop. so help -- if the hyperloop can be made to work, it could usher in a transport revolution. it is a magnetically transported .ar going through low friction

a good read speeds faster than a commercial jet. succeeded in has its first part of the test. dubai is home of the world's tallest building and a ski field, and it always seems game for experiment in with building projects. >> we're going to have to overcome those regulatory requirements and restrictions. in a place like this, i could see it happening as early as 2020. held a contest for the design of its hyperloop, one by a french company. it is good -- >> two markham on we will all be able to move in a very fast way. that is excited. that changes everything. >> the key question is who pays for it, and how?

especially as gulf nations are feeling the pinch from low oil prices. samsung isng up, telling retail partners to stop sale and exchanges of its aleksei note 7 smart on. more details are next. this is bloomberg.

emily: to a story we are watching. apple shares closed at a 2016 high. tech giantorean samsung is halting production of its note 7 after new reports of batteries catching higher. retail also telling partners to stop sales and exchanges of the phone. peter ahlstrom joins us now from tokyo. stoppede carriers have selling these phones, and samsung has stopped making them. how devastating is this? >> it is a big setback for the company, especially because the

company prides itself on its manufacturing prowess. they thought they had figured out what the battery problem was. the had introduced this bone in august, shipped about 2.5 million of them, and then discover that there are these battery issues. they recall the phones and were in the midst of replacing them when they found this second batch of problems. they stopped while they figure out exactly what went wrong with the battery. they need to get to the bottom of exactly what went wrong. they originally said it was a problem of a battery supplier and they replaced that supplier. it turns out it is something beyond that, whether it is a supplier or a designer the phone, they have not been able to say publicly. that afters uprising weeks, they have not been able to figure out why this is happening, or at least they are not telling us. the holiday season is coming up. yeariggest season of the for phone buying. do we expect customers to switch as a result of this? it is certainly a big opening

for other makers of android phones. google just came out with some high-end phones that are supposed to be very competitive with the samsung phones. samsung has been the historical leader in this market, so it is leaving a huge gaping opening for other competitors -- google, apple, and others. emily: i want to talk quickly about uber. they're going to be making a bigger push into india. is big incumbent in india hola. uber hoping to recruit one million drivers by 2018. what are the advantages that uber has, and what are the challenges, are the advantages -- and how does it compare to the china market? >> in many ways, it is similar. uber is a u.s. company coming run by at an incumbent scrappy 30 something in india,

just as it was in china. in china, they have to to sell their business after a year and a half of pretty heavy losses there. they are moving again, they're going up against a domestic competitor that has a pretty system to lead -- a pretty substantial lead. the market hasn't stranded -- has expanded much more rapidly than they have. hola does not have the cash that didi had to push back against uber. in china, they could subsidize their riders and drivers, and that created substantial losses. on the uber side, they need to show that they can have success in these egg international markets. as they head towards this ipo and justify this high valuation they have, they need to show that they can go into markets and succeed without creating huge losses for themselves. emily: india is now uber's second-biggest market.

million five and a half rides a week in august, which is more than triple at the start of the year. they are in 28 cities in india. peter ahlstrom, our asia tech editor. thank you so much. now toy story that is trending. zuckerberg is on facebook live. the facebook founder kicked off a live session from his backyard while barbecuing just before the u.s. presidential debate. he took questions from users covering current events, the election, and sweet baby ray's barbecue sauce. for a full half hour he not only talked about his love for brisket and rids, how he prefers ribs -- his own meet ribs, how he prefers to hunt his own meat.

for this edition of bloomberg technology. tomorrow, we begin training live on twitter. we will be talking with john lilly. send me your questions. we will answer them on the show. that is all, for now, from san francisco. ♪

>> samsung has all but given up on the note 7. it has lost more than $13 billion in market caps in just two days. yousef: oil is near a 15 month high. the major producers will work to limit supply and stabilize the market. has reached its highest level from 2009 last month