business -- holiday market. says it is extending economic sanctions on russia to include eight more entities and seven individuals linked to the annexation of crimea. the move keeps pressure on russia by raising the cost of the occupation of the ukraine print -- peninsula. primary concerns are islamic state, a cyber security, and including inefficiencies. russia has been identified as a district to the united states. fbi agents were convinced former congressman anthony weiner's laptop contained classified --ormation connecting connected to the investigation of hillary clinton's in males.

anthony weiner was under investigation in an unrelated manner -- matter. global news 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. i am courtney collins. this is bloomberg. limbic -- bloomberg technology is next. caroline: this is bloomberg technology. the dow and nasdaq close at all-time highs. is silicon valley finally joining the trump trade? a move pays off. we dig into the company. they -- facebook takes on fake news.

now to the lead. the market rally in the u.s. and the dow clears a record highs -- to get my bloomberg. the last few months have been -- compared stocks to average is create cory johnson joins me to break it down. if you take out the s&p 500 cisco is the worst performing and we have significant tech stocks within some of those overall benchmarks. corey: there are legitimate reasons to suspect tech will underperform. for example, if there is a shakeup in international trade, tech companies are big exporters. companies like oracle. you have companies like tesla.

if there is a disruption in international relations at which white start with a tweet or policy. that might affect this. caroline: looking at another key chart situation. you can get into these charts of [indiscernible] financials outperforming, look at that yellow. showing the likes of facebook, alphabet, netflix, google, all key underperformers. how much are we still looking at and also an ethics issue. money isof a -- much here? : a lot of this rally has been so strong that some investors are saying i'm going to sell my winners and look for things that are in favor. one has done well for me this

year, facebook, amazon, netflix, and google. investors are nervous about the rally and looking for places where some things are the most overvalued area caroline: we see the likes of just bezos and mark zuckerberg being hit by sometimes and lagging in their own stocks. it does into picking up, we have seen warm words coming from donald trump in the meeting last week. has the rally got further to go, are we going to see a significant catch up being paid, will the rally continue? mark: the approach of zuckerberg and jeff bezos toward their stock is a good approach. on the stock and make a long-term investment in a company that will do well. the long-term development in these countries -- companies,

the stocks will respond to the economic development of the company or lack thereof. for the case of facebook, they growthrranted it, there is slowing down. f in the fangg right there. blackberry is in the midst of this transition but it has been coming really slow. their moved to software has been coming very slow. this business has been one -- been through one big-name change. i would not be surprised. it is a completely different business. went are continuing with the strong numbers. always great to have you on.

the company boosted its earnings outlook. merely 70%. ceo int up with their ontario and asked are these margins sustainable? >> a normal growing software company could definitely do better than 70%. it could do it. caroline: how about the seven -- software revenue growth, you said that would be 30% on track. are you aiming for that in the next fiscal year as well? guest: no. the market is growing next year. we committed we will be growing faster than the market. we recently -- we are optimal with that. caroline: the belief in the security that blackberry offers.

are you seeing a pickup in demand at the moment? a -- in a certain way the answer is yes. the answer would have to be is. i see a lot of this -- discussion, people trying to get their arms around especially -- tried to get their arms around security and cyber security. mobility is one of the biggest vulnerability points. this is where we excel. we are the number one player in that space. where mobile meets security. feel of conversation, we comfortable in where we are and where we sit with the customers. caroline: it is interesting you were announcing yesterday, and new research center in canada, the focus on automation, driverless vehicles. this is a crowded space. apple and thenst

tech giants and the automakers as well. how do you fight with in this competitive space? guest: i do not fight with them at all. first of all a month ago we with fordan agreement motor company. we are providing software to help them build the next generation car. i will let them tell you but we are helping to do that. they are using our software and this is an example of what the economist driving innovation centers will focus on. all the automakers are going to be a customers, they will be our one like all the tier lg and panasonic will be our partners. they have artie been our partners and we are proud of the relationship with them. we are not setting ourselves up to compete with automakers. onesot competing with tier

. we want to build the foundation so cars can be safely put together and put on the road. caroline: not long ago we saw another announcement from blackberry. it was a licensing deal. you're getting out of the hardware and letting a chinese partner bill that. how much are relationships with china under threat with the new president-elect donald trump? are you cautiously optimistic or concerned with the direction of u.s. and china relations? guest: that is a complex question. let's start with technology. i provide all the software technology. where the majority of all the security, secret sauce is an. in that sense, there is no truth in that if i build my phone in

china by a chinese partner than my phone will not be more secure or be less secure, whatever the right english is. our security is paramount. software andl the the security software associated with it. -- we do not have any interested in outsourcing those things. the net of all that is that i will not be concerned about us work with a chinese company. u.s. government policy and where the trade issue nobody knows the answer to that. i heard a guest talk about putting a tariff on developing countries. i assume the guest is referring the currency

manipulation situation. at least they are accused of that. with all that discussion going on with the president-elect. i assume that cooler heads will prevail. was like berries ceo. twitch is taking on the heavyweights. beyond gaming.ks we will catch up with the ceo next. this is bloomberg. ♪

caroline: a story we are watching. continues to bleed money from its balance sheet. they lost more than $2.2 billion. in the third quarter it lost more than $800 million and that

is excluding the chinese operations it has exited. this according to a person familiar. in sales are bringing billion exceeding 5.5 dollars in revenue. twitch is stepping into the video live streaming old dress. it is looking down gaming and streamingout its offerings. it is taking on some heavy competition from the likes of facebook and youtube. we caught up with the ceo. always owing to be your game centered and we will always love videogame but -- video games but we are super excited to expand the platform and welcome at -- an array of partners. caroline: how will this expand, are you using the creators out there and expanding their

knowledge base or is it attracting new people to the platform? guess: we have been experimenting with the creative category for more than a year now. we have discovered that while there is a ton of crossover, you do see lots of gaming creators arts, wanting to do comedy, 20 to be artistically creative. you also see new people coming in who have never created before and had now feel like there is a place for me. it really is a mix of both. there is slightly more people crossing over that coming in. in a long run we will see a ton of new people creating. that is our goal. we would like to get a lot of new people creating on the platform. caroline: is it investing in with the amazon platform? guest: we mostly focus on the product, we like to think that

the product should speak for aself and we want to have great credit for creators that makes sharing the video should -- video and share your passions fund by the other thing we do is we invest heavily in a team. creators to the point where they can become a partner. they have the opportunity to monetize their channel and they get access to special events at twitch. we tried to have a great product and we are out in the community. does amazon react to this? guest: we -- the most common thing we have done is twitch crime. twitch oriented part of amazon prime. it comes with all the benefits. also on twitch benefits.

it is helping money into the pockets and for customers. try not to force it. we're still in the learning phase. i am positive as we grow we will find amazing things to do with amazon. we are still focusing on that community. you have the immunity so far, are they worried about the expansion, are you worried about [indiscernible] worried about whether our community would embrace their not. the awesome thing is they have. we ran a survey to ask people what do you think about twitch adding non-gaming content, do think it will be good for the platform and more than 70% of our creators a greater strongly agreed with the statement, i think twitch adding more content than just giving will not only be good for me but for the whole

platform. only so manyhave hours in the day. we are looking at your platform, what about live streaming on competition is fierce, who are your main competitors? guest: we try to focus on the creator. competitor isest still cable news and cable tv in general. if you look at the hours spent, tv, as much as people talk about the death of tv, tv takes a huge numbers of hours in the day. if you look at how people watch twitch if they are coming in at ang down for many hours time, that looks a lot like cable tv does. other internet platforms, anything you spend time on for entertainment is a competitor to twitch. the biggest single source of

entertainment is still television so i would call that our biggest competitor. twitch's ceo. was combat fake to news. we will speak with the director of international fact checking next. and twitters revolving door keeps swinging as at a messenger tweets he's out. what this means for the company. this is bloomberg. ♪

caroline: facebook's outlook on fake news has evolved dramatically. they pulled a 180 turning to third party fact checkers to flag false stories. is this enough question mark we spoke with the international fat -- fact checking wor network.

developed principles for fact checkers. on facebook -- facebook decided in order to be a third-party as a minimum condition you will have to sign on to our code of principles. caroline: facebook is the arbiter of who is the third-party fact checkers. >> it requires transparency of all kinds. it is a necessary but not sufficient condition to be a fax checker -- fact checker. caroline: they had been pushing for mark zuckerberg and facebook to take new steps. are those enough? >> we are in the very early days. i hope you do not think i am dodging the question. we are going to have to wait and

see if you weeks how this works out. i think it has been a lot of pressure on facebook to do something. now it has acted. we need to see how this works out in practice. a theory, we think it is welcome choice. it may or may not be effective. caroline: in terms of where it could be tackling those stories that are obviously false, the more misleading articles potentially that come around and catch wildfire, do you think that will be able to be blunted to some extent, will we see some misleading stories pushed out? >> it is important especially in the first stages. facebook and the fact checkers are aware of this. that the concentration beyond the 100% totally fake fabricated stories. the pope endorsing donald trump. those stories are the ones that

did really well by the social network this year. those are the start of where the fact checking can have an effect. when we start going into the grayscale and the half-truths it will be more complicated and there are other platforms to do that. i am convinced that this experiment could have already a very unofficial impact if it weaves out the totally fake stories. caroline: we have had the u.s. we have in 2016, germany, france, the netherlands, a wide range of political events happening next year. how is the institute preparing itself? guest: nice campaigns we've seen a lot of totally fake stories do really well on social media. in the italian case it was ballot boxes allegedly stuffed

and birds found in an imaginary town. i think this is a problem of international scope and i believe that facebook is looking to roll this out internationally. the network has members from across the world and they are eager in keen to see this rolled cautiously and carefully but in other markets beyond the united states. caroline: should other media or large social networking this, whate adopting about the likes of google and its unit youtube. how will other social media giants potentially tackle this? guest: google announced a fact check tag. it is looking at ways to help more accurate information surface to the top in search.

it famously had the problem after the elections with the false story of donald trump winning the popular vote reaching the very top. caroline: coming up. it was another green day for u.s. markets as the dow approaches 20,000. are lagging behind the broader market since the election. we will discuss next. this is bloomberg. ♪

planting a size-six, non-slip shoe into that door. on this side, i want my customers to relax and enjoy themselves. but these days it's phones before forks. they want wifi out here. but behind that door, i need a private connection for my business. wifi pro from comcast business. public wifi for your customers.

private wifi for your business. strong and secure. good for a door. and a network. comcast business. built for security. built for business. ways wins. especially in my business. with slow internet from the phone company, you can't keep up. you're stuck, watching spinning wheels and progress bars until someone else scoops your story. switch to comcast business. with high-speed internet up to 10 gigabits per second. you wouldn't pick a slow race car. then why settle for slow internet? comcast business. built for speed. built for business. courtney: you are watching bloomberg technology. let's begin with a check of your first word news. russia, turkey, and it ran at a trilateral meeting set their cooperation could pave the way for a future settlement in

syria. the talks, day after the killing of a russian ambassador in turkey but moscow and anchor about the attack would not hurt their relationship. spoke by phone yesterday with german chancellor angela merkel. he offered condolences for the christmasthe berlin market and expressed appreciation for her leadership and their shared efforts to defeat terrorism. president obama has designated u.s. owned waters in the arctic and atlantic off-limits for future oil and gas leasing. it put the finishing touches on the president's environmental legacy but tests donald trump's promise to release the untapped energy reserve. michigan's attorney general filed more charges. charging two former emergency managers for multiple felonies for failure to protect residents from hazards caused by tainted drinking water.

global news 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. i'm courtney collins. this is bloomberg. it is after 5:30 p.m. in new york. 9:30 a.m. wednesday morning in sydney. i am joined by james thornhill with a look at the markets. james: new zealand market has firmer buzz. new zealand trade data was at this morning showing a slightly narrower deficit although the export number was little bit disappointing. coming up in asia today we have malaysian consumer price --lation numbers and have a alice starts riffing no change. turning to australia, the s&p futures are pointing to a firmer start. december is traditionally a rising month for this trillion market. one exception to that is bellamy's, they have been

sorting out their accounts. they have said they will need even longer. it will be mid-january while the complete talks with their suppliers. it is a war situation around there. bloomberg technology next. ♪ caroline: welcome back to bloomberg technology. let's get back to our top story.

it was a record-breaking day for the u.s. market, dow as nasdaq closed at new highs. our big tech names feeling the lift after a bumpy few weeks after the u.s. election? our guest joins me from portland, oregon. the dow on the 30 stocks, one of andbiggest losers was cisco another was microsoft. tech seems to not be taking part. guest: there is a lot of moving parts in the names i cover, facebook and google among them. the individual issues going on, you have currency issues that will always be at play in the context of the postelection environment. maybe an inflationary economy might be helpful but on the other hand, you have more uncertainty which may restrain spending by advertisers. you have issues around whether or not you have to place people outside the u.s. to build your business.

more or less regulation difficult to anticipate. it is a complicated mess. can show this complicated mess rather prettily on bloomberg. it is showing how the -- we're moving across to the likes of facebook. underperforming, nasdaq has been underperforming, the rest of the rivals. you cover facebook and alphabet. we going to start to see any upward trend going forward as stock coalition continues and they look for what has not caught the wind as of late. guest: it is interesting and maybe because i do not look at fang sector. maybe i do not see quite the same of flip -- uplift trends.

factorsany specific seem to be more dominant. certainly through my lands. we had a number of potential the measurement issues that have been coming to light recently are problematic. maybe constraints growth but the bigger issue is they are expecting on the buy side, they are expecting more robust growth. even though you have a company that is eating the industry and taking share, it may not be meeting expectations so that holds off some of the growth. google has similar issues where investor expectations have as other robust that investors come back to her thin terms of their expectations, it holds down the stock. these companies are so massive is the law oft large numbers in terms of how big they can get. caroline: we have plenty of

headwinds hitting the likes of facebook and we have had negative headlines regarding the news, potentially not acting quickly enough on terrorist contact -- content. and digging into one key headline saying that they are accused of the -- of misleading the eu. how much could this be a hit, they are facing a fine of up to 1% of their annual revenue. guest: it is not an unimportant story i would save. it is probably not one that investors will pay too much attention to. it matters more to be clear at a business level in the long-term. said she saida he story at this point. it is difficult to state where it plays out. there is a bit of an issue where european regulators want to make sure they have the ability to assert their authority on the u.s. dominated industry.

the eue is an element of being as aggressive as they can toward facebook and google. the reality is facebook and google are eating for lunch of everybody who sells advertising in europe as well. if you are a domestic player there, you're worried about their dominance. probably have not reported on, i have not seen it referenced in the english language press but france has introduced a you tube tax. things like that will happen more commonly in europe. also digging into one of the laggards of recent months. dumped 23%. it is not a pretty sight. and yet more for headlines coming out. the exit circle continues. we are reporting that the vice president of product is leaving as well. how concerning is this?

>> the defense against the dark arts chair. it has been quite a place. the rotation out of that division is something that i think worries investors. when they are not so fortunate as to have a full-time ceo. maybe one day they will. that contributes to the problem. it is difficult to be positive about twitter and i call myself one of the [indiscernible] there is so much value in the business, it has not been realized. expectations were always overblown i think at the earliest days and they came back down to earth are you the probably crashed a little too hard and things like this do not help. you can always point to anyone person's choice to leave a company is coming down to ,ndividual career development better opportunities elsewhere,

their view of the upside of the stock. it is very systemic there at this point in time. the place ofe on jack dossey. it is great to get your perspective. thank you for your time. since president-elect donald trump met with tech leaders last week we have not heard from the attendees trump has not had a strong relationship. tim cook is speaking out about the meeting. techcrunch obtained an internal demo. saying we engage when we agree and when we disagree. you do not change things just by yelling. notedent-elect trump's stranger to a bit of yelling on twitter. lead to awar of words national security crisis? we will discuss next. this is bloomberg. ♪

caroline: twitter has been lauded as the tool that helped donald trump when the white house. ofhas seen its fair share twitter wars launched by trump. as he prepares to take the highest office in the country, tweetsse off the cuff spurgeon went national security crisis? rob taerson joins me and vron.

the can be discerning something about his character, is this a worry from a security point of view? >> from a security point of view anytime data leaves a secure environment in today's world, people are looking at it. there is no doubt that countries and organizations are looking at our new president-elect but as he starts steering toward the oval office there will be a lot of global intelligence firms and also the government helping him steer to a much more secure manner into medicating. atoline: when we are looking , look atonal diplomacy some of the tweets we have seen over the weekend claiming china stole a u.s. drone this weekend, announcing he spoke directly with the taiwanese resident and we have the tweet showing what he can let go of. you you agree this can be reined back once he comes into office? >> i would be looking at the

numbers. you look at his numbers he has reined it back. he averaged 30 or 35 tweets a day in october. in december he is back to about five today. they are a little more benign as he has shifted from campaigner and marketer from preparing to govern. you gave a couple of exceptions this weekend where he threw the chinese off guard with a couple of different tweets. hackers that have potentially been widely concerned about the dnc, could we see hacking getting into the likes of donald trump's very own twitter account, is that sort of a threat possible? >> you have to look at it as a threat but i will tell you when it comes to national security and national security assets especially around the president, there is a lot of organizations making sure that that information and the way the

president to indicate stays safe . i think it is one thing that we all need to be on guard about nowadays whether it is the president or people in the suites of private enterprise. security is something we talk to clients about. caroline: give us a sense of what happens to the media within all of this. the middle man seems to have not been needed. straight ton going the consumer. will he have to start chatting with the media rather than boycotting them? tweeted back in december, he wants the american people to hear him and not hear it through the lens of the media. fdr went to the radio directly. reagan went to tv directly. savvys a very president-elect will take advantage of social media. he needs to be security -- i do not think

will abandon his ability to talk with the american people. airline: what does this mean potentially for evidence that maybe we get misinformation at times, we saw a tweet saying that the popular vote went to hillary clinton because of millions of those who voted illegally. perhaps not completely truthful. what do you feel is at risk here, is transparency of positive and the risks being perhaps some misinformation at times? information on purpose, was there a strategic reason, or was he taking the story and running in a different reaction? he is adept at changing the subject area he will take whatever story is running, when the steve bannon issue was happening he pivoted and tweeted about flagburning and had the entire media pivot with him.

he has a unique ability to give it the story. finding a way to do that when he is governing will be difficult. minutese not very many in the day he will tweet. what will he have time to do? anyline: have there been positive reactions and things that have swirled around the fact that may be donald trump as president-elect can go direct to the voter but direct to those he is in diplomacy with, is there any upside to the president having such a direct point-to-point with those in the community? >> i think it is a first. we are all witnessing something that has not been done before. until he settles into the presidency and i agreed to see how long he keeps this up or settles into more of a traditional role, there is no doubt that he has used social

media to his side and what he wants to communicate, kind of cutting out the middleman telling a story. caroline: wonderful to have your points of view. coming up, we take a look at which tech ajit's are said to be the holiday winners this season. this is bloomberg. ♪

caroline: shares jumped 5% and they were one of the best performers in the s&p 500. the signed an agreement to let customers book on trip advisor. this deal follows a similar one made with priceline. they had been struggling to shift its revenue model for one where gets paid a fee for

referring its customers to other websites where users can reserve direct the on its platform. it is cars time for holiday shoppers. thesmartphone becomes dominant electronic. we take a look at which other gadgets are expected to be the biggest winners and perhaps the laggards of the season. smartphone being our one stop shop, other devices are having trouble. fitbit rolled out two new wearable devices, the charge 2 in the flex 2. the company issued week holiday sales guidance and lost one third of its market value. in the u.s.,people u.k., and austria who had wanted a fitness tracker no longer use

the device. gopro told investors it expects a lower quality season. demand.defended the >> there is a misconception that demand for gopro has been waning. it is a misconception because they sell through at retail has never been better. caroline: they have fallen short of their promise. virtually assistance like amazon and echo and google home are jumping in to compete against smartphones' personal assistance. oppenheimer estimates 10 to 12 million virtual assistance could sell during the holiday. painting a potentially rosier picture for the devices than gopro or fitbit are offering. let's talk tech gadgets.

first of all which home gadget should i get to solve all my you when i am at home? options, google home which came out a few weeks ago and then the amazon echo and -- it comes down to which ecosystem you are in. if you are on an iphone, you can tap into both. you can use the echo or the android -- or the other at home. that can take advantage of some of the android functionality and the ecosystem. a bit of a gamer, i was at the christmas party playing my should i be getting into virtual reality, what is out there that i can purchase this holiday? is super early. you have to hook it up to a pc. it is a big endeavor if you are

not a big fan. i wouldn't want -- would not willa big tc but those strike. ,n terms of being a consumer google has their own, it is the fabric headset, less than $100. you can connect it to the new pixel font. that is where consumers are going to get a view our -- a vr/ar experience. we already reported that apple is working on their own. there is a lot to come. caroline: they are looking more at the vr and the inside of cars . one key product you are writing about. guest: we had a big story about

the mac. and there is a lot of detail in there that the mac is taking a backseat to ipads, iphones, apple watches, other products. given that the mac is 10% of revenue while the iphone and ipad combine for over 75%. it makes some sense. but don't forget that mac users are a key group of people that rebounded apple out of the brink of bankruptcy n.l. late 1990's. it is an important market and people should expect that a company as rich as apple and resource-filled as apple should be able to walk into gum at the same time. they should be able to get a new iphone out the door every year and they should the able to get new macs out of the door but they have been lagging and people are taking notice. they just came out with a new macbook pro in early november.

they are doing some upgrades. there are faster versions that came out as well as the 12 inch macbook. irish people to check out the story. edition oft for this "bloomberg technology." we will continue this conversation. that is all for now. this is bloomberg. thank you for watching. ♪

from our studios in new york city, this is "charlie rose." charlie: "live by night" is the new film. it is based on the best-selling book by dennis lahaye. follows the outlaw as he travels from the boston underground to the rum running world of teva, florida. joining me is ben affleck. christmaslso stars sena, chris cooper, and sienna miller. i'm pleased to have all of them at the table. you