yusef: at the latest first word news. toshiba plunged in tokyo and plunging near the lowest of the month because the loss of the ne u.s. nuclear business. that follows the acquisition of service of last year, however there are conflicting estimates as to how much. nhk expects million while $4.3 billion. ernie data from china indicates the economy is finishing the

year on a firm note. after signs of altering, a big 6.7% growth. industrial profits accelerated coal and metal prices soared. china's economic growth picked up last month. has a warning about italy. government funds should be a last resort. the measures that should be only offered to lenders that are fundamentally healthy. ecb says they may need as much as $9.2 billion based on a recent test. toy will meet later today discuss the assessment. the second hearing today on the president. theythe second hearing today art

decision-making earlier this month and will roll on the legality. dozens of lawmakers are there. they plan to launch a new conservative group with possibly with the outgoing u.s. secretary-general as leader. bank exchange will start shortselling. they announced a plan on their website, saying they want to introduce it in the new year. this is a new step which says it is a wider plan to modernize and upgrade the market. they help the move will attract more foreign investors. israel has raised their forecast for this year and next. one. central bank says they have expanded in 2016 after two quarters of better-than-expected growth. that is up from the previous projections of 2.8%. policymakers kept the benchmark rate at 211%. .1%.

the middle east market closed, it was in the picture across the board. we are he a close eye on what is happening on asian markets where we are seeing some of the volumes of return. dollar-yen in focus. stay tuned for much more. visit bloomberg. -- this is bloomberg. ♪ caroline: this is "best of bloomberg technology." we bring you our top interviews from this week in tech. coming up, apple and ireland wage war on the european union. it is over a tax bill. plus, blackberry doubles down on software, and the move is paying off. we dig into the struggling company's latest report of the ceo. and online lender sofi taking it

slow after a rough year and pushing back plans for an ipo. the ceo joins us. first to our lead, apple is challenging its $13 billion tax bill from the european commission. apple says the case has no basis, and they are confident the ruling will be overturned. the fight between apple, ireland, and the commission has been building. margrethe vestager, the european competition commissioner, explains why this fight will be a long one. margrethe: i think that we will continue to disagree on the decision. also, because we have very different legal traditions. i have learned that in the u.s., it is absolutely the order of the day for a business to negotiate tax rates with the state where it is situated, and we have had the prohibition to

do that since 1958, so you have a clash of understanding. caroline: we discussed the latest development's with david rosenblum of nyu law. he spent years at the treasury department covering international tax law. also, david kirkpatrick and bloomberg editor at large cory johnson. >> it was interesting, because it explained the history of this tax regime and the different pieces of apple and which pieces of apple should be considered irish, were considered irish, and which are not. there are two ways to look at the news of the day. one is whether this backwards looking thing, looking at the way apple has paid taxes, might bode differently for the future of apple in other countries as it relates to getting taxed in the eu and taxed in ireland. it is a long piece, but it gets into how this business, apple claiming certain parts of their business, were not really in ireland even though some money

might have passed through ireland, therefore, should not have been taxed there because they were going to be taxed somewhere else. so it is about what business was irish and deserves to be taxed in ireland. caroline: thank you for joining us. give us a sense of apple claiming they were selectively targeted by the eu here. do you think they have a case? >> yes, they have something of a case. i think that it is true that the investigations have focused to some extent on u.s. companies. on the other hand, it is probably also true that u.s. companies have led the world in aggressive tax planning, so i don't find it particularly surprising. caroline: david kirkpatrick, weigh in and give us a sense of your reading of the tea leaves. is there potentially tax warfare going on between the u.s. and europe? >> i do not think it is quite to that point. but i think it is a confusing situation of where i think apple

has been extremely aggressive in how they structure themselves when they face these tax jurisdictions is an interesting question, and whether it is appropriate that they should be so fine tuning their own structure when they are simply trying to do business around the world, you know, it is legal, and the united states, at least. it is turning out that maybe it is not legal in europe. where these companies have to have a positive carrying of the flag around the world, we might question whether it is to our benefit that they are so aggressive in other jurisdictions. caroline: give us the shareholder opinion. surely, for many, the shareholder would say it is the company's obligation to prioritize profits.

>> in the context of a donald trump presidency, when we might have a big tax repatriation >> in the context of a donald holiday, you have companies like intel, apple, and others who have set this up to make the best of that situation. you wonder whether the repatriation holiday might not be such a big deal for them and they might not be so willing to bring cash back because they found another way to get around these laws. caroline: that is a key question for the next administration. there is much under discussion from a global perspective. the oecd was lining up to see how they can tackle this worldwide and get all countries singing from the same hymn sheet. is that the way we can move forward, that there is some sort of agreement worldwide? >> what is missing in the apple

debate, and it is partly an answer to your question, is the fact the oecd necessarily reaches consensus at a high level of generality, and the issues come up at a factual level, so that applying these general concepts to the particular facts at hand is a real challenge. i don't think it is possible to reach international agreement on the kinds of issues we are talking about, and i might add that not withstanding the commission's decision, 130 pages released today, it is pretty slim on the actual facts of what happened. it has a great deal of history released today, it is pretty about the dispute, about the oecd, state aid, a lot of legalese and background that about the dispute, about the oecd, state aid, a lot of legalese and background that makes for tedious reading, but i was looking at it to find out

what actually happened here. boy, you look in vain to find out how it was that one of these companies, asi, booked about half of apple's profits in 2015. commission says apple had $54 billion in profits in 2015, and asi booked somewhere south of $25 billion. >> i thought it was fascinating reading for that same reason. i agree. they did not lay it out chapter and verse, but there was so much great detail on that, and it was interesting to see they could about the dispute, about the assign so much profit to that particular region when obviously they had a global business here at it was not all happening in ireland. caroline: what is the broader expectation? who wins out in this particular argument, and what does it mean for amazon, starbucks, ikea,

other companies being analyzed by the european commission? >> in a rational world, and unfortunately we don't live in a rational world, but in a rational world, apple wins in the dispute with the commission, because the commission is advocating assigning all of this excess profit to the branches that apple had in ireland. and frankly, the branches that apple had in ireland had nothing to do with most of this money, so the commission and the united states are looking at the world from two very different perspectives. the commission sees these individual companies, asi booking $25 billion, and we see a branch in ireland and there is no real head office here, therefore all the profits should go to ireland. that is sort of what the commission is saying. the united states sees it differently. we see asi as a branch, not a separate corporation. it is a part of the top-tier company, which has branches all

over the world, so from a u.s. tax analysis of this, it is a much more complicated situation than the commission sees, and that is because of profound differences in the way we look at tax laws. i think you will find similar, but not identical, structures of other high-tech companies in other countries and maybe some in ireland, and they will all be a little bit different from each other, but they all pose similar questions. caroline: coming up, we will hear from the blackberry ceo john chen as they boost forecasts with a new focus. that is next. and facebook takes on fake news, but will it work? we had to italy later this hour. this is bloomberg. ♪

caroline: a couple of headlines in the auto sector that caught

our attention this week, all highlighting how this industry is seeing massive changes thanks to new technology. first, fiat-chrysler announced the production of 100 minivans that will join the waymo vehicle fleet. they will have self driving technology, including computers and sensors. our attention this week, all highlighting how this industry meantime, a new study reveals a large amount of motorists shut down self driving technology in their car. according to hyundai, half turn off emergency brakes and lane departure warnings. drivers don't fully trust the technology. nevertheless, blackberry is opening a research center for self driving cars. the move raises the probability of government backing the software unit. and speaking of blackberry, the company boosted 2017 earnings outlook and posted an adjusted profit margin for the third quarter of nearly 70%, its

highest ever. we caught up with john chen in ontario and asked him whether these margins are sustainable. >> a normal growing software company could definitely do better than 70%, yes. it will take us a while to get there, but it could do it. caroline: how about the software revenue growth? you said that will be 30% this fiscal year. 30% growth for next fiscal year, as well? >> no, now the number's are getting pretty big. i think the market is growing somewhere around 10% or 15% this year. caroline: it is renowned that angela merkel has used the blackberry, the belief in the security the blackberry offers. how in this sad time of increasing cyber security threats and concerns -- is there a concern? >> i guess in a certain way the answer is yes. it has to be yes. i see a lot of discussion,

people try to get their arms around security and cyber security. mobility is one of the biggest vulnerability points. this is where we are the number one player, where mobile meets security. there is a lot of conversation, and we feel comfortable on where we sit with customers. caroline: you announcing just yesterday, a new research center in canada, the focus on automation and driverless vehicles. this is a really crowded space. you are up against apple, not to mention the automakers. how do you fight within this competitive space? >> i don't fight with them at all. first of all, about a month ago we announced a transaction or an agreement with ford motor company, providing software to

help them build the next-generation car. i will let them tell you what the next-generation car is, but we are helping them to do that. we have engineering people helping them. they are using our software. this is just an example of what the autonomous driving innovation center will focus on. all the automakers will be our customers, our partners. all the tier ones, like lg, panasonic, samsung, they will be our partners. they have already been our partners, and we are very proud of the relationship with them. we are not setting this up to compete with the automakers, to compete with tier ones. in fact, we are embracing an open standard. we want to build the foundation so cars can be put safely on the road. caroline: automation is something that we have been discussing, and announced yesterday, but not long ago, we

saw another announcement from blackberry, a licensing deal. you are letting the chinese partner build the hardware. how much of the relationships with china at the moment are under threat with president-elect trump? are you cautiously optimistic or concerned about the direction of u.s.-china relations? >> that is a very complex question. let's start with technology. i provide all the software technology where the majority of all the security secret source is in. so there is no truth that if i build my phone in china by a chinese partner that my phone will not be more secure or less secure, whatever the right english is. our security is paramount. we do not have any issue with that. we control all the software and

the security software associated with it. we also have an office that manages all of these devices in canada. we don't have any interest in outsourcing those things. the net of all that is i would not be concerned about security. as related to what the united states government policy is and where the trade issue is going to go, nobody really knows the answer to it. i heard an earlier guest talk about putting a tariff on developing countries. i assume the guest is referring to china and the currency manipulation situation. or at least being accused of that, all that discussion going on with the president-elect. i assume that cooler heads is going to prevail and we won't get into a trade war.

caroline: would you work with the trump administration like you did with bush? >> absolutely. like everybody said, he is the president now, he will be. anything to help the country, we definitely will. caroline: that was blackberry ceo john chen. coming up, facebook rolling out its third-party fact checking system to combat fake news. now it is getting help. we will speak with the director of international fact checking. and coming to a pub near you, the world's first beer brewed with the help of artificial intelligence. can machines really brew a better beer? this is bloomberg. ♪

caroline: since president-elect to donald trump that with tech leaders, we have not heard from many of the attendees, and the silent perhaps speaks volumes, since trump has not had a strong relationship with silicon valley. tim cook finally spoke out this week about the meeting. he explained why he attended the

meeting, saying "we engage when we agree, and we engage when we disagree. i think it is important to do that because you don't change things just by yelling." since the u.s. election, facebook's outlook on fake news has evolved. the company recently pulled a 180, turning to third-party fact checkers to flag false stories, but is it enough? we discussed facebook's new strategy. >> the pointer institute has developed a code of principles for nonpartisan independent fact checkers. facebook decided in order to be a third-party fact checker on the social network, at a minimum condition, you will have had to sign on to our principles. caroline: so facebook is the arbiter of who is a third-party fact checker? >> correct. signing on to this code of principles, which requires transparency, is a necessary condition to be a third-party fact checker on facebook.

caroline: many people signed up to the international fact checking network have been pushing for mark zuckerberg and facebook to take these steps. are the steps announced enough? >> we are in the early days. i hope you don't think i am dodging the question, but the reality is we have will have to wait a few weeks to see how this works out. there has been a lot of pressure for facebook to do something. we need to see how this works out in practice. in theory, we think it is a welcome choice, but it may not be effective. >> in terms of where it could

initially be tackling stories that are obviously false, but the more misleading articles potentially that come across social media and catch wildfire, do you think that will he able to be blunted to some extent? will we see those sort of misleading stories pushed down? >> it is important in the first stages, and facebook and a third-party fact checkers are aware of this, that the concentration be on the 100%, totally fabricated stories. you know, the pope endorsing donald trump, those stories are the ones that did really well by the social network this year, and 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 this experiment could have a beneficial impact if it weeds out the totally fake stories. caroline: how important is this as we enter 2017, the u.s. election in 2016, and we have germany, france, the netherlands, a wide range of political events happening next year -- how is the institute preparing itself? >> i would add in the election this year and the brexit campaign and the italian election. in these campaigns, we have seen totally fake stories do well on social media. in the italian case, it was the ballot boxes allegedly stuffed and votes found in an imaginary town. i think this is a problem of international scope, and it is believed that facebook is looking to roll this out internationally. the pointer international fact checking network has members from across the world, and they are all eager and keen to see

this rolled out cautiously and carefully, but in other markets beyond the united states. caroline: that was the director of the institute fact checking network. the world's first beer brewed with the help of artificial intelligence is on sale in the u.k. four beers have been made. each recipe based on customer feedback through a mobile app. we went to find out if machines can really brew a great beer. ♪ >> how do you like your beer, hoppy, bitter, dark? brewers have been trying to find the perfect recipe. could it be that computers can

do it better? >> we were talking about how you can do this more constructively, and it was right in front of us. >> his epiphany led him and his friend to develop an algorithm that turns customer feedback into a better beer. the process goes something like this -- a website printed on the back of the bottles directs drinkers to a survey that asks them questions about their taste preferences. the ai bit comes next. >> that data goes into our reinforcement learning algorithm, which is called abi, automated brewing intelligence, then the algorithm takes all this information and then comes up with a recipe and gives the brewer a recipe. >> enter the very human brewer, who acts as a last line of defense if the ai goes rogue. >> most of the time it is bang on. sometimes it will throw a completely random thing at us. some of it is just not possible, and that is where you still have that human aspect to it.

>> humans brew the beer and drink it, too. >> kind of like seawater with cranberry. >> if you use an algorithm, won't it end up tasting middle of the road? >> i like it the more i drink it. >> customer feedback -- it can be fickle, but the technology points to a future of tailoring products to the people who use them. >> there you go. >> in the future, the same technique could be used for other products like coffee, chocolate. the one i really love, perfume. >> so get ready -- in the not-too-distant future, you will be able to give your feedback on just about anything, for what that is worth. caroline: still ahead, unicorn valuations -- will we keep seeing valuation skyrocket in 2017?

we will hear from one investor who is not so sure, next. and if you like bloomberg news, check as up on the radio. you can listen on the bloomberg radio app, bloomberg.com, and sirius xm. ♪

chinese -- the pearl harbor attack in 1941. visiting the site of the atomic bombing. tokyo has already sent out the respects to the dead but will not apologize. says it is negotiated a big discount. the carriers replacing its

antiquated after a lifting of sanctions and ordered 100 jets. the official price is $16.6 air will payran only half of that. donald trump is a vocal critic. rogue one kept its grip on north american movie theaters, collecting $90.1 million at the box office. billion of the levels ticket sales. terms ofcross in global market which is seeing the dollar-yen shrink return. up 1/5 of 1%. also what is happening in the

asia-pacific index, seeing gains in mumbai. really pulling onto gains earlier. global news 24 hours a day powered by more than 2600 journalists. this is bloomberg. ♪ >> welcome back to the "best of bloomberg technology." i'm caroline hyde. as 2016 winds down, the massive evaluation emerging. some believe uber and snap's value are fair and others warn of a bubble. my colleague emily chang spoke with accolade partner about just that. take a listen. >> i do believe and i agree that we are seeing what the highest level of fund formation and company formation but at the same level, we believe we are at

the highest level of interknow vacation and disruption. i think that is going to continue going forward. a lot of these companies will not be able to be funded going forward, but the few that do, there will be a subsection of them that are going to create interesting things that really change the way we work and operate. >> now, a lot of companies have delayed going public, valuations have soared, there has been a rise of unicorns, so-called unicorns out there. how do you feel about that? >> yeah, our belief is there should be fewer instances of unicorns out there, primarily because the majority of the m and a happens under a billion, few are going public. if they plan or expect to be a unicorn, there better be a high probability they can go public. otherwise, if they're growth moderates which happens to every company eventually and they're not profitable, they won't be able to go public. their valuations will get crushed. there has been a focus on optimizing valuation versus exits.

we hope that changes going forward. >> that said, you guys are investors in a number of funds. they have a lot of unicorns in their portfolios. does that concern you? >> so if you look at the top 10v.c. firms, they have the unique ability to invest in the iconic elite countries, facebook, pinterest, uber, lyft. for those manages and companies, there is a market for those companies to go public. for the broader venture community, unless you are in the iconic elite companies, we believe that m and a is the mostly likely outcome for those portfolio companies. >> jason horowitz, one fund in particular that made a big splash, there is controversy about how good their returns have been so far. do you have any concerns there about the performances? >> we don't have any significant concerns. we see the numbers. they delivered very good returns over the course of the firm's life partly because they have

been able to invest in some of the elite companies i just mentioned. we're very bullish on them. when they entered the develop tour capital game, they changed the dynamic but offering services such as recruiting, p.r. and sales pipeline by introducing strategics to companies. almost on a daily basis, they'll bring strategics, fortune 50 and 500 companies and for a number of them, the introductions are a significant portion of their sales pipeline. as you talk to entrepreneurs, that's a game changer. we hear that over and over again. overall we are very pleased, great returns and investing in some of the iconic companies and changing the way venture capitalists operate. other firms are mimicking the types of services their offering. >> until you decide which venture funds to invest in and

how venture compares to the other sectors that you're focused on? >> we invest in a mix of venture capital and growth equity and some buy-out, technology and healthcare. we are modeling 5x plus funds. that's because on the growth equity and buy-out side, a number of managers have delivered 3k net funds to us with shorter time for liquidity, lower risk. we are looking for those funds due to the longer timeline and the increased risk. >> charging into the biggest asset management in battleground exchange traded funds. the san francisco-based bank is considering launching its first e.t.f., but is it too little too late as the competitors have a major leg up in the market? we caught up with danny and david kirkpatrick from new york. >> this is a struggling time for active managers. they're seeing an immense amount of outflows. inflows are going into e.t.f.s, specifically, it's the new breed

of e.t.f.s that wells fargo is looking at that is taking off. this is the hot new product. if wells fargo wants to be part of the next generation of investing, this is something they have to be in. frankly, a lot of people are surprised that it's taken until this year, actually, the next three to six months that wells fargo is going to launch one of these products. >> they try to differentiate themselves to strategy. talk to us about the way in which they're doing that. >> we got to break it down on these types of e.t.f.s. these are quantitative-based e.t.f.s based around computer ago go rhythm. i'm going to pick the stock with the most momentum and the cheapest stocks. from there you go to multifactor which takes those things and lumps them together. i'm not going to just use one of these factors.

i'm going to use a couple of them. so this is really an idea whose time has come. this is well wells fargo is entering in. if you look at this chart here, assets are growing, but not as much as smart beta market as a whole. goldman sachs really has the lead here. that's going to be the biggest competition. they're hoping by getting into this front, they can differentiate themselves from others out there. >> so maybe a bit of me too coming from wells fargo. david, you like the fact that they're catching on, right? >> to apply algorithm approaches to tools that ordinary investors can get access to. these are the kinds of technique that have been confined historically to the highest net worth individuals, the biggest institutions and this is a great way for ordinary people to invest in a much more sophisticated fashion, basically allowing the software to assemble packages of stocks that really wouldn't historically be assemblemable.

the software is selecting for different variables and do things in real time that is much more so fist indicated. e.t.f. that is a grocery store company, it has gone up in certain conditions and down in other conditions in relation to something else. i think that's a great thing. >> to david's point, i think that's really compelling for these companies. a really great report taking some of the best investors over the years, taking warren buffet and they found you can break it down using algorithms, people before who wouldn't have dreamed having an investor working for them like warren buffet, they can buy the products and get essentially the same returns. >> active versus passive. the last one in terms of the tech foray into e.t.f., what made wells fargo mace a trick and where do you stand on that process? >> talking about wells fargo is sensitive because they seem to have made a bunch of mistakes in recent years in their larger business.

it is interesting that they would not have been in the sort of advance of this kind of whole movement given that they're in the thick of the tech community out there. there is a lot of start-ups that certainly are pressuring companies like wells fargo and i'm glad they're finally responding. i think we're going to see a ton of innovation coming from tech when it comes to investing. >> coming up, twitch is taking on the heavyweights of video streaming, facebook and youtube as the company looks beyond gaming. we'll catch up with the c.e.o. next. plus mike plays out his i.p.o. timeline and discusses what is in store for global expanse. this is bloomberg. ♪

>> the c.e.o. is making good on his $50 billion promise to the u.s. he will invest $1 billion in one

web, as a pledge to president-elect donald trump. the investment is expected to create almost 3,000 new engineering and manufacturing and support jobs in the u.s. over the next four years. the satellite start-up said it raised $1.2 billion. social finance better known as sofi. the san francisco-based company is now on the hunt for additional funds to raise $500 million in additional equity. the company is one of the fastest growing online lenders. we caught up with the c.e.o. take a listen. >> it was wonderful to get support and existing investors and what we are doing is using it for the budget sheet. we learned the need to have a balance sheet and originate during periods of market dislocation. we continue to expand that as we're profitable in creating the balance sheet today.

>> is that why you're raising more money? >> we're raising more money and one of the biggest challenges is the balance sheet challenge where we place production. in 2017, $16 and $20 billion originated in loans. having deep pocketed relationships with investors that are in the business of buying loans is helpful. that's a catalyst for the round. >> you started off in student loans and moved into new products, mortgages, life insurance. what other products will you bring online when you get to this new finance? >> today we're very heavy on the credit side, mortgages, personal loans, refinancing. we are doing wealth management, insurance is an important component to that. in 2017, one of the biggest solutions we'll bring to market is the credit card.

we deliver a full service of solutions to our member base that they don't need to go anywhere else for what they need from a financial standpoint. >> i come from europe where i was banking with, in germany, we have seen in the united kingdom, plenty of other start-ups. is this where the competition is or actually is the competition coming from the banks as they start to work out that this is where they need to get ahead? >> we see much more competition from the banks. we're going after a very rich target in terms of that 25 to 45-year-old customer demographic. it's important to the banks in terms of building those relationships. whether it's student refinancing or person loans or mortgages, we're seeing much more bank competition today than a year ago. it's harder to differentiate through our profit proposition. >> you got all of these different products. how long until you take the competition to the germany and u.k. talk about international expansion. >> we're doing australia first and then to the broader asia as well.

it's the same value propositions, delivering speed and convenience and alignment and transparency, something that is missing in a lot of these markets for this millennial-type customer. >> what have you done in terms of setting yourself apart is helping foster the careers of some of these students. you have the entrepreneur meet and greets, people come to your house and get to understand you and been given advice. how do you scale that, and indeed, how much is hurt by when you got things like lending club not doing quite so well in the press? does that hurt you from an investor and a consumer point of view? >> we have 200,000 members, if they all came to my house, i would have a lot of trouble. we don't do that. we have a lot of offline events, 10% have gone to offline events, career services to get reemployed or the entrepreneur

program where we help people start companies or the dating events which are oversubscribed for our members, more household units to sell mortgages out of that. it's part of a differentiation. the community is beginning to support itself. people said up the events with our support, but not a situation where everyone is coming to my house. >> those were back in the day. >> back in the day. >> talk to me about the regulatory perspective here, though. i'm looking at the united kingdom finally listening to what is happening, and looking at what is happening in cloud funding, we're talking about the u.k. which is a very forward thinking open regulatory environment. where do you see regulation changing here and for your business? >> we're optimistic about the regulatory environment over the next couple of years. the initiative to do a lending charter is a step in the right direction. we can move away from the regulation we have today and do a unified national regulator. we hope more comes as they get more comfortable with the industry and the people involved. >> i.p.a.2017? >> i always get in trouble when

i say it's coming. we want to go public, it's important for the business. today we have the luxury of being profitable and growing at the clip we're growing at. hard to determine when we'll do that, but we'll do it when it makes the most sense. >> now to twitch, stepping into the video live streaming gold rush, the amazon owned video platform is looking beyond gaming and branching out its streaming offerings. it's taking on the competition of facebook. we asked about the expansion beyond video gaming. >> we're always, i think, going to be video game seven trick culture at twitch and always love video games. we're super excited to expand the platform and bring creators using the technology we have built in the community. >> how will this expand? you using the creators already out there and expanding their knowledge base and their variety

of scope or is it actually attracting new people to the platform? >> we have been experimenting with the creative category on twitch for more than a year now and what we've discovered there, while there is a ton of crossover, you do see lots of gaming creators also wanting to do arts, also wanting to do comedy, wanting to be, you know, artistically creative. you also see new people coming in who have never created before and who now feel like, oh, here is a place for me. it really is a mix of both. there is slightly more people crossing over from the existing communities coming in, but we have a lot of people in the existing communities, so i think in the long run, we will see a ton of new people creating. that's our goal. we would like to get a lot of new people creating on the platform. >> how do you go about doing that? is it investing in marketing or the platform? >> we mostly focus on the

product. we like to think that the product should speak for itself and that we want to have a great product for creators that make sharing the video, sharing your passions really fun. the other thing we do is we invest really heavily in a team we call partnership teams at twitch. help grow them to the point where they could become a twitch partner. they have the opportunity to monetize their channel and get access to special events at twitch and so i think that we try to have a great product and try to make sure we're out in the community evangelical icing it. the most prominent thing we have done with amazon is twitch prime. it's a twitch-oriented part of amazon prime.

it calls with all of the amazon prime benefits, free shipping, amazon video, but also on twitch benefits. that's been awesome for our creators. it's helped drive a lot of money into their pockets. it's awesome for customers. amazon prime is a great product. the twitch add-ons are really great. we try not to force it. outside of gaming so far, we're in the learning phase. i'm absolutely positive has we grow up, we'll find amazing things to do with amazon. we're so focused on growing that community. >> the community that you have already that loved you for the gaming side of things, are they worried about the expansion, worried about perhaps losing the u.s.p.? >> we started worried when we started expanding beyond gaming whether the community would embrace that. the awesome thing is they have. we ran a survey asking people what do you think about twitch adding nongame content, is it

good for the platform. 70% of our creators agreed or strongly agreed with the statement i think twitch adding more content than just gaming will not only be good for me, but for the whole platform. >> that was the twitch c.e.o. still ahead, which tech gadgets will be the best? this is bloomberg. ♪

>> this holiday season as the all encompassing smartphone is the dominant electronics for consumers, we look at other gadgets that could be the biggest winners and laggards of the season. with the smartphone being a one stop shop, other gadgets are having a hard time gaining traction this holiday season.

go pro and fitbit have cautioned investors by lowering their holiday sales forecast. back in september, fitbit rolled out two more devices. they had weak holiday sales guidance and lost a third of its market value as a result. 30% of people in the u.s., u.k. and australia who would want a fitness tracker don't use the device. go pro says it expects a lousy holiday season and recalling 2500 of its new drones. the c.e.o. -- >> demand has been waning for consumers. retail has never been better. >> once darlings of wall street, companies have fallen short of their promise. virtual assistants are jumping into compete against smart phones, personal assistants this holiday season. oppenheimer straits 10 to 12 million virtual assistants could sell during the holidays painting a potentially rosier picture for the devices than go

pro and fitbit are offering. let's talk tech gadgets a little bit more. first of all, which home gadget should i get to solve all of my ills when i'm at home? >> two options at this point. it's the google home, which just came out a few weeks ago and then there is the amazon echo. it comes down to which system you're in. if you're on an iphone ecosystem, you can tap into both. you can use the echo or the other with the iphone. you have an android, you want to get the home device from google, that can take advantage of the android functionality and the google ecosystem. which home gadget should i get to solve all of my should i get to solve all of my ills when i'm at home? >> two options at this point. it's the google home, which just came out a few weeks ago and then there is the amazon echo. it comes down to which system you're in. if you're on an iphone ecosystem, you can tap into both. you can use the echo or the other with the iphone. you have an android, you want to

get the home device from google, that can take advantage of the android functionality and the google ecosystem. >> if i was a bit of a gamer or artist, should i be getting into artist, should i be getting into virtual reality? what is out there that i can purchase in holiday season? >> v.r. is super early. currently you need to hook it up to a p.c. it's a big endeavor if you're purchase in holiday season? >> v.r. is super early. currently you need to hook it up not a big fan into the v.r. stuff, if you're a consumer like you or i, i'll speak for myself, i wouldn't want a big p.c. over time, they'll shrink, you'll be able to wear them, buy them off the shelf. in terms of being a consumer, a smaller kit, but google has their own, it's sort of the fabric headset, it's less than $100. you can connect to the new pixel phone. consumers are getting a

time being. over the next two, three years we'll see more advanced equipment from other companies. we reported that apple is working on their own a.r. glasses, a lot to come. >> looking more at v.r., looking more at the inside of cars, focusing on their iphone, one key product that you're writing about? >> the mac, is that what you're referring to? we had a big story today about the mac. i'm sure you read it. there is a lot of detail in there that the mac is taking back seat to iphones, apple watches, other products. given that the mac is 10% of apple revenues and the others combined for 75% in this 2016 fiscal year that just ended, it makes some sense. don't forget that macs, mac users are a key group of people who rebounded apple out of the brink of bankruptcy in the late 1990's. it's an important market. people should expect that a company as rich as apple and resource-filled as apple should

be able to walk and chew gum at the same time. they should be able to get a new iphone every year. they should be able to get new macs out the door. they are lagging and people are taking notice. >> not holding our breath r an update anytime soon? >> definitely not now at the end of this year. the new mac book pros in early november, but they're planning a few new mac upgrades in 2017, a new i-mac and faster versions of the mac book pro and the 12-inch mac book. >> now that does it for this edition of the "best of bloomberg technology." we'll bring you all of the latest in tech throughout the week. tuesday, theco founder will weigin on companies moving fr london to germany post-brexit.

remember all episodes of broom technology are live streaming on twitter. check it out. that's all for now. this is bloomberg. ♪

yousef: good morning. these are our top stories. starting off with barack obama who says he could have beaten donald trump had he run. clinton played it to save during the election campaign. donald trump fired back on twitter saying -- no way. 14.5% run a year earlier compared with a 9.8% increase in october. raw material producers led those gains with prices of products