mark: and the united nations to human rights official is calling for an investigation into what he says are war crimes being committed in eastern aleppo. security issues prompted the u.n. to cancel plans to begin medical evacuations. the philippine president said his remarks about separating from the u.s. don't mean severing ties, clarifying comments made in beijing, the president said quote, separation from the u.s. refers to foreign policy that doesn't dovetail with america. hillary clinton has a slim lead over donald trump in the battleground state of florida. 49% of weekly voters support clinton compared to 45% for trump, according to an opinion savvy poll. libertarian gary johnson gets jill 3%, the green party's stein nearly 2%. three of eight election swing states, ohio, north carolina, and michigan saw their

unemployment rates rise in september. nevada and new hampshire saw declines. jobless numbers were unchanged in florida, iowa, pennsylvania. hiring is slow from last year's healthy pace. global news 24 hours a day, powered by more than 2600 journalists and analysts in over 120 countries. -- around the world. i am mark crumpton. "bloomberg technology" is next. ♪ cory: i'm cory johnson, in for emily chang. at&t pushes to clinch a deal for time warner by monday, trying to front run other bidders. why the telecom giant is in such a rich -- rush. $40 billion takeover. nxp could also come next week. and markets for consumer drones

aiming for the skies. we will hear from china's consumer drone giant. first, possible deals on the radar this friday, qualcomm and nxp. the chipmakers wrapping up what could be the largest transaction in the history of the semi conductor industry grade we are also watching to go were with at&t and time warner. the carriers pushing to seal monday.l by in enterprise software company said to be belt -- valued over $10 billion. first, let's kick this off with qualcomm-nxp. this is an amazing deal monday. in enterprise here, a big change for at&t. when you think they see in this book? >> the industry in general has been moving towards this combination of distribution and content rate we saw comcast is a first mover with the steal or later forsal and

dreamworks. at&t following in its footsteps there and that is where the industry in general is moving right now. cory: the verizon results this week and verizon with aol and there may be acquisition of yahoo!. this about a slowdown in growth in wireless looking for other venues, or looking for something that will integrate? brooke: i think it's a little bit of both. what we have seen his people are willing to pay for content even if there not willing to pay cable. hbo go has gotten good traction. content is key. these mergers happening in the media telecom space, but then the semiconductor business is really amazing. we have seen so much activity in this sector. qualcomm very different

businesses to me. brooke: qualcomm wants to move away from the smartphone market. they are facing a lot more competition is handset makers are very different businesses to me. brooke: bringing a lot of this production in-house. nxp is a really big player in the automotive market, which is seen as a growth area going forward for semiconductor makers. the idea is to diversify. the question is whether it's too much diversification and if qualcomm will get in over his head here. you will be a mess of a company already in the process of a deal. we have not even past the 'se-year anniversary of nxp $17 billion deal. this will be a very big undertaking for qualcomm. cory: that is what got them substantially into the automotive business. four?y, what is in brooke: a software company.

the most interesting thing about this deal is the size of it, over $10 billion. we haven't seen many private equity deals of this size since the financial crisis. companies have moved away from the club deals that were the hallmark of 2008 and something that big is difficult to do just for one private equity firm. i thought it was interesting to see that companies are actually talking about maybe doing a club deal again which will be a very interesting phenomenon. of deepere's a lot of deep pockets looking to do deals. i would imagine it's possible. brooke sutherland, thank you very much. cory: hackers shut down access to a lot of websites around the world on friday, primarily in the u.s. the issue appears to be with domain name service hosts. the first attack was reported at 7:00 a.m. new york time, denying

millions of people access to twitter. two other waves of attacks followed later in the day. here?ppened >> there was a massive distributed denial of service attack. it targeted against the dns. layman's terms, if somebody went after the post office and the post office didn't know where to send packages and that is what essentially happened here, and why this is concerning, it went at the fundamental infrastructure that connects people to sites like twitter and spotify. cory: why would somebody want to do this? all thatttacks and stuff, i get it. shutting down websites, is this a crazy kid in a smithsonian basement that happened? >> they took many computers

together and what they are taking advantage of increasingly are all the internet connected devices. they have unprecedented scale to start to launch these types of attacks. terms of why they may do it, that's unknown. one first is that there is some research that was done and released yesterday and they thought maybe this may be retaliation. it's hard to launch this sophisticated of an effort that quickly. it was about the proliferation of these types of attacks, what else needs to be done, and being aware of the issue. i well known cyber journalist was impacted by these. the second idea, which is probably more concerning, are people now probing the fundamental layer of the infrastructure, and they're

thinking about what is really interconnected, and what else can i do. are they probing our systems to really understand just how interconnected we are. cory: that could be a state backed attack. >> we did not know until today that spotify and twitter gave all their business to --. this only a few of them that do that type of service. but now they know that. that's reallyf real, but if you want a conspiracy theory, that's as far as i will go with you. of a there is some history couple of countries, russia, north korea, china, the u.s., israel, all countries that have used cyber attacks to achieve certain goals. >> exactly. , whowe are seeing now

would have imagined we would have this much coverage about , and their is doing potential relationship with wikileaks and the disclosure of the e-mails. there's quite a bit of capability out there and we don't know exactly what everybody is doing. the reality also is that we need more redundancy in the capability. you're going to ask what else needs to be done to avoid these problems going forward. it's a combination of many things. it's more redundancy, more , andng, better technology more communication to ensure we know when something like this happens, we can get back up and running. cory: it's also interesting to see the businesses affected. i talked to one entrepreneur who told me that her business was completely knocked out. because they are such a young business, they don't have the redundancy of the larger businesses. apparently spotify and twitter

did not have it either. >> i think they may go to more and more providers to help them with redundancy. we are so reliant on this. a lot of people were impacted by this the would not normally think about. it's not going to change the way we develop software, the way we interact, the way people shop. of red own white, ceo l analytics. talk to one of the developers working with nintendo on what we can look forward to. the world's largest maker of consumer drones, new competition for go pro and others.

this is bloomberg. ♪

cory: the software giant reasonably strong in the first quarter of sales, particularly in the cloud business. shares surging 5.6%, breezing past the price hit, the.com bubble. -- dot-com bubble. nintendo trying to regain a foothold in the gaming console market. the company unveils the nintendo switch, the lets gamers play at home and on the go. the giant reaching out to 30 party -- third-party developers.

one of those developers, a san francisco-based game development platform. some of the top games, including the blockbuster hit pokemon go. let's talk about unity with unity's ceo. describe what unity does. >> unity does a couple of things straight at its core we built up technologies that make it super easy to build games, whether those games before playstation's or xbox or ios, android, apple, and google. if you're going to try to build a game for all those different platforms, it might take you 50 people to build one. cory: they've got all these different teams. >> that's what they have been doing historically. first off, there's so much there in their code base. you can do it cheaper, better, faster.

the second thing is essentially hit a button, hit return and you platforms. the we are a content enabler. you think of ourselves as super advanced paintbrushes for content. you make better stuff faster and cheaper with unity. there was once hoped for an object oriented programming, where you have a bunch of complete locks of programs and stacked them together. is that part of the notion here? >> platforms. that's a metaphor, but i'm not sure it's the perfect metaphor for what we are doing. if you're looking for a metaphor, if you're trying to write a game, you will pick a programming language appropriate for the platform. you will start with a lot of letters and text and syntax. you draw theyou will start withf letters and car, the race track, and then use scripting to connect the card on the racetrack. because you've will the game -- built the game, we can compile

the code on any of these platforms. energy for money, developers, which is why in the month of september, nine of the top 20 games on mobile were built in unity. why over half the games in the world today are built on third-party engines, and why about 1/3 of the games built in the world are built in unity, or why 70% are built in the community. cory: i want to run through what's going on in the world. you mentioned nintendo briefly. they have this new gaming device brought back to their original roots. your take? weif you look at nintendo -- live to enable content creators like nintendo. has created some of the most incredible intellectual property in history. waspokemon go franchise

built on unity, super successful. i think the world has been waiting for this. it's going to be a gigantic hit. of course i've seen it, i've seen the releases. situationf in a nda to say more than i actually know about it. this is one of the things i tell you. nintendo surprises you every time. they are innovative and different edit times when they nail something they hit the ball out of the park. oculus -- vr is out, it looks to me like sony vr is in better condition. what do you see happening on the content side in terms of development? is anyone starting to do really big games, immersive games that take hours to play? it is such a early innings in the industry. i think of where we are in vr, the prelaunch ear.

-- era. what sony has done is so incredibly innovative. if you've seen those things out there, it's a transformative experience. the notion that we will be living in vr, in ar, i believe in that. i've seen some of the best experiences. your readers are your watchers of new york, go into the void, and try the ghostbusters experience here, not tethered to a chair, its mobile and you are running around. it's incredibly fun. it is location-based entertainment. right now try to handicap sony manys oculus versus the others that have come. it seems like wasted energy. it was nokia versus erickson versus motorola for the smartphone stakes in 2002. cory: they were the ultimate

winner. >> those things were all there. i believe that sony is going to be one of the winners. and the guys are incredibly innovative. to handicap this now is sort of like -- we're talking about carburetors and cubic inches of cars. remember 5, 7 years ago we were talking about the power of the cpu in your phone. now it's talking about what you get out of it, the experience you get with the new iphone 7. my point of it is this, it's going to be gigantic. we are measuring the winner of a marathon on the basis of the first 50 feet of the race. we know it's going to be glorious. you see development happening all the time in terms of new games. >> i've never seen anything like this. i remember when sony launched the playstation.

out, it was a spectacular transformation of the industry. the number of people that are still in the industry, it changed everything. i believe it's believable. vr and ar are going to be bigger than the gaming industry in total by a wide margin. it will encompass gaming and lots of other things. i've seen some technologies that allow me to talk to u.s. if you're in the room with me when you're not. cory: we will be right back on "bloomberg technology."

cory: "bloomberg studio 1.0" returns. it kicks off this sunday with

the instagram ceo. four years ago facebook offered $1 billion for the service. ceo mark zuckerberg pledged to let the instagram teamwork independently. we started by asking whether zuckerberg has lived up to that promise. >> mark has been true to his word and then some. still to this day mark's interaction with the company is through meetings with me. i learned a tremendous amount through him, about our transition to a more global community, about strategy. he's one of the most interesting long-term strategic thinkers i've ever met. think of it like having the best board member in the world. do you know how many companies would love to have mark zuckerberg on their board? you get amazing guidance and amazing counselor for someone who's been able to build a tremendous company. >> how open has he been to your ideas? do you think he's learned anything from you? >> i would love to ask him that.

instagram is focused on community and craft, which is fairly different from a lot of tech companies at the time. facebook has this ship love mant ra on the inside and that came from instagram's focus on the consumer and focus on making our community great. i'd like to think we influenced facebook but it's hard to say that for sure. what have you learned from him? >> some of the things i talked about before, strategy and understanding your place in the ecosystem. what have you learned from him? >>our transition to advertising was an interesting one. i was of the believe that if we had fewer advertisers, they would be of higher quality. if you have more advertisers and you are able to bring in an ecosystem where they're able to compete against each other, you get higher-quality advertisements. i remember him saying i felt the exact same way when we introduce advertising and it turns out there's this other thing.

emily: you mentioned you meet with not just market, but jan and brandon. how do you see instagram taking advantage of the more futuristic things like virtual reality? >> if our vision is to make you feel like you can travel anywhere in the world and it action of a second and ask friends whatever's happening in the world, imagine a day where you can put on a headset and be at a coldplay concert, seeing something happen like a big protest or big riot anywhere in the world, or something as simple as a friend's wedding. that's the kind of experience we and we thinke, virtual reality in the coming years will play a critical role in seeing that vision come true. emily: what about artificial intelligence? >> we use it today. it is what powers advertising. personalization you have, if we can have an experience that caters to you, if we know when you engage with,

we can use machine learning and artificial intelligence to make it a much better experience for you on instagram. cory: that was emily chang with the instagram ceo. the sunday night clock a.m. pacific, 12:00 back east. giant up, a chinese tech aggressive enough to push apple and amazon out of the way? if you like bloomberg news, check us out on the radio. xm on u.s. on sirius 119. this is bloomberg. ♪

mark: you are watching bloomberg technology. let's begin with a check of your first word news. iraqi forces have raised the national flag on a church near

mosul. carterfense secretary as told reporters that as a member counter-isil operations, turkey will play a role. >> turkey as it neighbors the region has an interest in the ultimate outcome. many other parties as well. we all understand that. the iraqi government understands that and the turkish government understands it and we understand it. >> operations have led to increases tensions between the two countries. donald trump says he will be packing his schedule with events until election day. addie campaign stop in north carolina he said he does not want to have any regrets. >> our campaign is powered by a love for this country and our love for our fellow citizens. we are in a divided country now. there is going to be love.

it is a campaign about rejecting this cynicism and elitism of our failed political establishment. mark: trump said that when, lose, or draw, he will be "happy with himself." hillary clinton has a new ad featuring the arm -- the father of a u.s. army captain killed in iraq. mr. khan spoke about the proposal to bar muslims. my son have a place in your america? the divisions between the u.k. and the rest of the eu have begun to take shape in germany, warning that britain faces a difficult path following june exit boat. the u.k. prime minister theresa may address the subject following her first eu summits and she assumed power. >> we still want to trade freely

in goods and services with europe and the u.k. will continue to face them are challenges to our unit -- european neighbors. we will share the same values. i want a mature, cooperative relationship with our european partners. mark: may said that while the u.k. is leaving the eu, it is not leaving out and there should "give-and-take with europe." the defense department said the u.s. navy worship -- warship has conducted a operation in the south china sea where china and five other countries have competing territorial claims area the spokesman said transit operation was near the [indiscernible] islands. in new york, i am mark from to them. -- mark crumpton. corey: the chinese textile hopes

to push into the you -- u.s. market with a number of devices. down with him and asked him why they had not been heard of. was leird of it when it tv. a lot of my work over the previous years has been building technology i hoped would get out to the edge of can fit -- consumer devices. marketnfluence a global around consumer products and that was exciting. they unveiled the slower devices, vr goggles, smart phones, tvs, smart bikes, a electric maybe economist irving cars. we have never seen another

chinese tech company a so aggressive or achieve such a broad scale in the u.s. what makes you think it can pull off this? >> one of the things that is different is we are not starting from the hardware. there are not little silos building each of these pieces of hardware. we're trying to build the content and these devices are part of that ecosystem. when we make a great tv it is because we want to drive quality in the video and entertainment experience that our users are getting. we do it with a car, we want to make sure how we use cars changes. consumee how we can media in that setting. the content first approach will drive a different way of thinking about the market which i think will benefit consumers. >> i understand that, they are a ablent business and to be to better access all that. we are seeing tech giants also -- thiso build these

ecosystem between content and devices. how is the strategy somewhat different than that? say it not sure you can is completely different. we are content first, we're focused on this iterative user experience. the up to you policy of feedback tohis live the point where on a monthly basis we might be adding features to the devices like phones and the team is in order to make sure that our customers understand they can influence how the products work. it is why we stack our devices so high and so he can keep updating software. as long as you have that tv it starts to daylight you more. x is there room for another ecosystem player in the u.s. market? it is a very mature, saturated one. >> absolutely. if we were just coming in and of these verticals, if we were just trying to do

phones, i have been a long -- around that for a long time and that would be tough but the fact is we are not going to only build a ecosystem with their own devices but we are open about plugging in other people's devices. a recognize that the world is place of many brands and we think we can be a platform that other brands can come and be part of the ecosystem. >> the strategy is interesting, it cracked -- contrasts to apple which has told the consumer we know what you want, it is going to be so great that you will want it. thewould you compare why approach will work better? >> there is a lot of tech that we have a foundational understanding of what we have to do. theave -- we know what entry littles are, we know how app store should work and we know how the ecosystems work but beyond that there are ways that people use their devices in different segments differently. the up to you allows you to listen to that and drive that customization overtime. up to meet approaches can be good when things are starting

and there is no substitute for a great designer. we also think some of our users can give us good insight into what the markets might be delighted with. unveiled your devices and you do not profit from those devices, it is the content and services where that is where the money is going to come from. do you think that is a sustainable business model for a new company coming to the u.s. it is just getting started on the content side? >> there are a lot of businesses that are investing in that growth in that way. we see that half of the consumer is oure devices, that way of acquiring subscribers. we do think it will work as a business model. we have proven that in the chinese market and we will bring that to the rest of the world. corey: i want to bring in serena. what do these guys do?

serena: they have this netflix style content streaming business and a bunch of hardware from virtual reality headsets, smart phones, tvs, and electric self driving cars. >> their netflix and their twin and samsung. >> this is not a great time to be comparing yourself to send song -- a samsung. it is a content streaming business, they were the first to have this -- one of the first to have this sufficient model. the ceo said we want to be able to get this content to easily stream across devices. that is why they pushed into this hardware. it is important to remember that the business is enormous. they have more than 730 million users. corey: that is nearly 10 times the size of netflix. >> more than the u.s. population.

they have a huge in a team and production unit so they produce some of their own original content for their web streaming side like how in the -- netflix thrones." f a guy that is about gets transplanted back to ancient asia and is trapped in the body of a princess. corey: how does it translate into making quality electronics? >> they're going to have a lot of struggles in the u.s. they have very high spec products. they make no profit on that. they are losing money on every smartphone that they sell. they feel that -- they are hoping to make it up with their content since service. that works ok in china because they are a content -- and their business has reached gale but in the u.s. they do not have a lot of edge over a lot of that.

hardware, not the unlike the cable industry that has cost the cable company but they know that is going to keep you using the cable system. >> exactly. they're working with a lot of different streaming sites and say you join our hardware we will give this sufficient service for free. they will assess how they are going to monetize that an charge consumers. they have set up a huge entertainment unit in l.a. and hired an old paramount president and he is working on making original content. hbo, netflix,e cho.on, hulu and lee they want to produce these blockbuster english-speaking movies, they want to make tv shows. corey: everyone is selling

content in hollywood. >> you are seeing more chinese money in hollywood. look at alibaba pictures, they are behind a lot of blockbuster pictures and leeco will be there. let me break it down. they have three big entities all tied together by the ceo who has a big stake in all of them. there is a publicly traded streaming part and global group which is the massive slew of the leetv, all those different companies. they want to take that company public in the u.s., that is another entity. they own one of the larger ride ceo is companies and the a cofounder of an electric driving initiative in l.a. and they have a big plan. corey: thank you.

story we have been following. one of the toughest restrictions on airbnb in the country. it was already illegal to read out of artman's were less than 30 days but this new measure fine. 700 -- a $700,500 residential areas off the market. a b&b -- airbnb said they still make money. they followed -- they filed a lawsuit. the chinese company dominating the drawn market sets its sights on silicon valley. we look at dji's expansion plans next. and we bring you the best interviews of the week. with several

others. this saturday. this is bloomberg. ♪

$50y: walmart is investing million. just a have more than 25 million registered customers delivering to more than 300 cities. world's largest drugmaker is sitting up shop in silicon valley. time,es at a critical gopro is trying to crack their dominance.

this is an interesting device. it is -- is it pedantic to compare it to the nascent gopro device? >> possibly. we think the karmapro or the that ispro is something small enough and portable enough to take anywhere. what do people want when they want a drone? >> they want something that is accessible, easy to use, something that can take with you on a day hike and still have room for everything else you would normally take with you and not fill up an entire backpack. corey: break it out. this is my day hike hack. my jacket in here. look. water while and

corey: i tweeted a picture of this when it first came out. this is a drone? >> that is the whole thing. corey: it has a camera built into it. >> it has five cameras. corey: what about the controller? >> you can control it from your phone. we also have a really cool controller so there is the whole thing. it from yourol phone. you have a limited range just because of wi-fi. , itou want to go further -- there is a game had style controller, nice and controlling -- where it gives you the control. corey: compare this to the competition. we have staff compare you two gopro. is the gopro the one thing we should be comparing it to?

>> not really. this is everything but in a smaller package and marketability. corey: it is lighter and small -- smaller and flies faster and for longer. collision avoidance going forward and looking down. it helps you prevent you from hitting stuff and makes it super easy to use a much you focus on the creative aspect of collecting the photos and video you want to take. corey: who buys these things? consumer, smaller and lighter is better for the consumer. one of the things we're hearing is exploring industrial and commercial applications. we are getting a ton of interest on this plant are but on our larger vehicles. we build a set of payload lifting vehicles. corey: what kind of payload? >> weekend to six kilograms, it can take a broadcast quality camera and put any of the

hardware you want, specialized want toardware, if you do inspection mapping, attentive interesting applications where normally they have been addressed with very expensive manned aviation applications. different packages under 1000 bucks, you can get m get an extra battery for 1100, 1200 bucks. demand, the range of even lower-priced. if you do not want the controller and you're happy flying with your phone, you can get the drone itself or 799. corey: the professional market is the x factor but how big is the market for the novices,

equal to want to full around with these things and take pictures? >> that is the market that exploded this year. exploded, we do not talk about specific numbers but massive. a massive market that exploded. corey: across all companies? >> i am sure at least across all products. corey: we think about the samsung note 7, we don't want you to go that way. we are talking about 5 million people but the professional in terms of size or maybe not in size but how much they're willing to spend. >> that is right. there is a ton of interesting value on top of the vehicle. the drone is a platform so there's a lot more money to be had for vehicle in terms of addressing applications. -- are their

ambitions in terms of data collection and analytics? >> absolutely. we build a software development kit that allows you to treat this as a platform. we want to enable all these third-party applications and these professional applications by allowing people to take her vehicle and tell their stack on top of it. corey: if you get thing -- one thing regulatory wise, one thing would be changed for drones, what would it be? >> we are working hard on that. we have 107 rules which allow you to do commercial operations we are looking for beyond line of sight operation. once you get there, you allow complete mission of tommy and that as we get the labor -- laborsaving. corey: this thing is cool. girls might have

something in their christmas stockings. appreciate it. monday, we will catch up with the always colorful t-mobile ceo. ring in theill details and we will be between those. the air national space station is getting three new tenants, we will bring you up to speed on the latest crew and a possible explosion on mars. that is next. this is bloomberg. ♪

corey: the european space agency meant for mars had the right spot but at the wrong speed. and likely exploded after a crash landing. photos show a black spot in the area where the lander was meant to touchdown on wednesday. it is supposed to test technology for more ambitious mart -- mars landing. it will analyze the martian in the search for evidence of life. in the search for evidence of life. the latest team of restaurants from russia and the u.s. have arrived at the international space station after a two-day voyage. the docking process went smoothly on friday morning after a lengthy process of opening up patches and exiting the three -- existing three-person crew. this brings the total crew to six.

about a week, three of the astronauts head home and shane kimbro takes over as the commander. don't miss our conversation with studio 1.0am ceo on at noon new york time this sunday. for all episodes live streaming on twitter. 6 p.m. new york, 3:00 p.m. san francisco. that is all for now. this is bloomberg. ♪

announcer: from our studios in new york city, this is "charlie rose." tiger woods is here. he is considered one of golf's greatest layers if not at his best, the best. at age 21 he won his first major tournament at the masters by a record 12 strokes. he was previously the only mail to win three straight u.s. amateur titles with a total of 14 major championships under his belt, he trails only jack nicholas who has 18. he has been sidelined by injury including