government. spain was granted the authority as part of an emergency today. it is calling for a new election. sanderscretary sarah says the white house prevents a pushsures to prevent for independence. cooperate toies share economic cowardice. the state department published a list of individuals at risk for because ofons russian connections. -- esponse republicanh-profile retirement could be on the horizon.

orion hatch plans to retire and the linux reports that mitt to run it hatch -- hatchch sex down -- if steps down. this is bloomberg. ♪ this is bloomberg technology. coming up, the iphone x era officially begins. we will discuss the demand and supply chain woes threatening worldwide. plus, expedia shares died over it third inning -- third quarter earnings report three we will hear from the new ceo mark over

strong. but first, if you haven't already ordered your iphone x get ready to wait longer than expected. the first sold out and minutes in places like california, the u.k. and hong kong. times --n cash wait common.t times are roger, i want to start with you. there are a lot of things that make this iphone update unlike any other. you got to divert phones being

released in a major design upgrade. how do you expect the demand to playoff? -- play out? >> the category is so mature that you would not expect explosive growth, but i think apple has a couple things playing its way that we should not overlook. as you said, the thing with the x is the technology they move forward, but what the hardware folks overlook is the other stuff of the apple ecosystem. security should be on the minds of every smartphone customer and apple is really beginning to differentiate dramatically from google and the android universe on issues of security and data protection and i think that is likely over time to play in their favor. highthe x it is a very price point sato be interesting to see how that affects the demand curve.

i think that ecosystem is becoming more differentiated in a way that is more viable. emily: what are you hearing when it comes to how supply will impact demand and how many phones they will be able to sell? >> there is a shortage situation. andre -- were out in china it has been the maker -- major bottleneck here. thinking ship we are 27 million iphone 10 units in the december quarter. that has really been the issue, but things are getting better. emily: 20 think about this strategy, two different phones? >> there is not anyone out there smartphone, first

certainly over the age of 18. i don't think it is one-size-fits-all. are some people who want to have the latest technology and there is everything you want in between. our -- i like apples strategy where they will have 45 different -- four or five different products. i would like to see how that plays out because the sixth and seven are a lot cheaper to make than when they first came out and i like that apple have low price point phones and make those available to people even at higher price points. will the fact that this phone is more difficult to make and they are having some supply issues, will that impact unit

sales and the revenue for the holiday quarter? >> there's a couple interesting dynamics. one thing we learned china, there is anticipation. -- an appetite. mayor is a trade down to iphone -- now theye really played in the ultraluxury smartphone segment and they can with the iphone eight. i think some will take away from the december quarter, but it junemake a less seasonal quarter. i think what we saw today is this fictitious narrative was put to rest and i think that is great paying.

roger come up with this wait time, does it open up an opportunity for samsung to get in there? >> we will find out. >> i think from apple's point of view, there is a soothing effect of having more products and it may be that the eight becomes more successful than when the 11 comes out. from apple's point of view, there will be people who need a new phone now. eight.ll wind up with an in my mind, when you are in a mature market, having more products that more price points is a plus, not a minus. [laughter] ; analysts are expecting --

say i think the earnings and the outlooks are going to be less important than the five around this iphone x cycle. in -- any revenue we don't get december quarter you'll get in a march or june quarter. it is the iphone x cycle that matters. it is not quarter or output. emily: thank you so much for joining us. we will cover apple earnings next week. facebook, twitter and google have agreed to another hearing on capitol hill. the top three lawyers for all companies will appear. meantime, facebook said it will disclose political ads.

political advertisers will have to bear -- identify their identities and locations. facebook is also building archive of federal election and. coming up, shares of expedia tumbling. we will hear from the ceo and if online travel can bounce back. this is bloomberg.

,mily: shares of expedia sank the lowest since 2013. sean whoup mark over just took over the company in

august. >> the short-term results are really all about the weather. andimpact from the storms we expect another $10 million next quarter and when we look at the core business to we are investing into strength. the last three years we have tripled our ability to bring new properties on the platform. that is strength we really want to invest into. we are investing into that strength as well so i think the reaction is accommodation of those two and we look forward to demonstrating solid results. emily: if we continue to see the adverse weather patterns in the u.s. and worldwide, should the market reevaluate expedia and the travel industry as a whole? >> i think it is a little too

early to do that. anytime wee seen, see natural disasters such as volcanoes over iceland or hurricanes or storms in the u.s. , generally there is an impact in the near term for that destination. generally, travel patterns change. humans like to get out and explore the world. these storms depress the activity for a short-term, but you can't stop people from wanting to travel. toronto --said that true volvo -- the cores about problem and why it is not living up to its x-ray station -- expectation so far. >> it is one of the most well-known brands in travel. they have a management team that built this from nothing into a

very significant business. it is an advertising platform that advertisers like to be part brands, hotelsr and competitors. what is happening is that trivago is changing the way to marketplace works. advertisers are trying to test what makes the channel most attractive for them. that is causing some volatility. we are confident given this is a great business love by consumers and advertisers that after this volatility, things will normalize. emily: u.k. just launched a probe into hotel booking sites including x 80 a. how much of a concern is this? what has been your response about marketing tactics. firstly, we are a leader in

this industry and we have been helping the u.k. look into this matter, so i think without getting into the details, we are at the forefront of the industry and are open to looking at all making sures and consumers are treated right. given that, i think everything will be absolutely be fine. emily: in terms of international expansion, which markets are you most focused on? our or serpass what i would say. u.s. toumber one in the be sure, but if you look around the world, we are not number one in many countries around the world. our focus going forward will be to establish that position.

we are looking at countries in ,urope, asia, latin america saying what are the most attractive countries that we can go after and establish the number one position for consumers? seems like a natural fit between expedia and uber. have you had any discussions? nothing tangible yet. i think there is the possibility for something great. growth,hen it comes to he said the focus is organic growth. ago aid about month company like hotel tonight is on

the let's have a beer and talk about it lists. go back on that and certainly i was very involved in that. we will continue to look for acquisitions when they make sense, but the essence of the message is we have assembled an incredible portfolio of assets and we are leader in this industry and the foundation is set. now it is about us becoming more locally relevant and executing faster and when we do that, i think we will execute to our full potential. we think we have all we need to be successful going forward. earlier,versation still with me here in san francisco. lot of political

issues that are impacting the travel industry? the trumps to me toinistration's position interview people coming into the united states and the restrictions they have placed on immigrants, students, all of those things are going to have some impact on travel. whether they affect expedia, who knows? of things to worry about is getting longer, not shorter. to the extent that the united states is not friendly to people who want to come, that will have a cost. emily: would that make you have a negative outlook on online travel businesses? >> they would not be on my focus areas.

and see whatat it makes it a compelling story right now. the stock is down a ton's a really it is way more interesting than it was today than yesterday. up, insights on the deal. this is bloomberg.

♪ week, werlier this have learned delphi has learned to purchase a startup for or hundred $50 million. -- $450 million. the -- splitting joining us now from boston, the

ceo of the economy -- new economy -- nutonomy. what distinguishes you from the pack? >> we have unique telik -- unique technology that draws on my background and cofounders background at m.i.t.. we have more cars on the road, more miles under our belt and that is really what set us apart. emily: why go with a supplier rather than an auto manufacturer? >> they can go off and sell to the fleet markets. oem can also sell to their customers. emily: you have been testing thomas cars in singapore.

what you do the same in boston? and in fact, we are today. we will be expanding text -- months and next few getting everyday people off the street and letting them experience what it is like getting into a self driving car. emily: there is a bill enabling testing in the u.s. working its way through congress. what will this bill change for you? criticism.e some will say it will allow you to test self-driving cars without safety restrictions or oversight. >> what is really important is it will create a uniform playing

field across 50 states. today, if you're are testing this technology in massachusetts, california, michigan you are playing by different sets of rules and so when you think about investing broadly, it is difficult to do so when you don't have uniformity and clarity around the regulations. that is why it is important. emily: earlier this year, you announced a partnership on boston's seaport district. can you tell us more? >> that partnership is ongoing. we like and respect the guys at lyft. we will be moving forward their percent in the coming weeks. call i got them a --

-- the bump in price allowed bezos as thefrog bill gates richest person. coming up, google shares hit a record high, but next week the company has to washington for hearing on russian interference in the u.s. election. listen on the radio, bloomberg .pp and sirius xm this is bloomberg. ♪

mark: i am mark crumpton. you are watching bloomberg technology. let us get a check on first word news. the prime minister says spain is catalanhat had e

government. the governor has been authorized to dismiss the regional government and curtail the n parliament powers. any look forward into awarding of a $300 million contract. this would help restore puerto rico's power grid. zinke's >>yan hometown. >> this is something solely determined by the puerto rican government. will look forward to the audit to see if there are any other issues beyond that. mark: secretary zinke he said he lutely nothing to do with the awarding of the contract." about 75% of puerto rico remained without power. jim mattis visited a u.s.-south

korean military observation post. border intoross the north korea. secretary mattis was briefed on conditions along the border --- a true salt of the korean war in 1953. the push for a diplomatic but he said there, america is prepared to military action of the north does not hold development of missiles that can strike the united states. a spokesperson for the u.s. led correlations as he incorrectly announced a cease-fire has been reached between the iraqi government and the kurdish majority. while talks arewhile talks are d clashes have stalled, and official cease-fire has not been declared great long simmering tensions between the capital city of the kurdistan region and baghdad escalated after they held an independence referendum last month. australia's high court disqualified the country's deputy prime minister over a

116-year-old -- barnaby jones says he always prepared for the outcome. i>> respect the burden -->> respect the decision of the court. we live in a democracy. i think the court further deliberation and respect the decision of the court. -- the ruling could make them lose their majority. he says he renounced the new zealand citizenship here unknowingly received from his father. global news 24 hours a day. powered by more than 2,700 journalists and analysts in more than 120 countries. in new york, i mark crumpton. ♪ emily: this is bloomberg technology. i am emily chang. shares in amazon, microsoft, and out of hit records friday.

the tech giants reported earnings that showed a strong revenue and profit growth of the shoppers and advertisers for businesses. the three will send representatives to capitol hill as to whether new laws are needed to regulate social media. facebook announced transparency rules for political ads. it will bring the social network's rules closer to what is required of traditional like television. what is your take on the new rules that facebook laid out? a importantnk it is step. until today, facebook has been cooperated -- do not -- denied, do not operate mode. this is an important step to accepting responsibility for what third parties do on the platform. at this point, facebook was

saying they were not responsible and will not attempt to release it. yes, they will have to release it. it will never prevent a recurrence of 28, but it is so much better than where they were yesterday that i am really they are beginning to recognize and act upon the notion that we live in a democracy in the country should be really concerned about foreign countries interfering in our elections. emily: how much responsibility to believe facebookdemocracy ben swaying the selection? due to russian interference. is huge and itit curtains from place in the system than people realize i think they were essential to nomination.rump's overall facebook played in polarizing the country cannot be overstated. the basic strategy is not to bring people together. push to take them and

them into little groups of like-minded people. when you're on facebook, you can get the impression that everyone agrees with you because the thing facebook shows you are all things that you like or at least they think you like. i sit, the problem here is for an individual at any moment, there could be millions of different things to show us. if the 10 or 20 to put in your newsfeed that are not there because they make you smarter or healthier happier. they are there because they maximize facebook's profit. it is maximized by appealing to anger, fear, and deep emotions and if you think about were ther and anger basis of trump getting elected. they were the basis of brexit happening in the u.k. they were the basis of the alt-right movement in germany and france having had some edges of the boat -- high

percentages of the vote. same: let me ask the question about twitter. what responsibility does twitter tbear? roger: i would argue there were a group of platforms the russians used together. 4chan readstart on which is a place where angry people hang out. after they blew up they went on facebook. they did other things on google to affect way people get search results and the use of youtube. everybody played a role and it was almost like a symphony with the russians conducting it. incredibly clever. the things here is that made it possible in the first place are all still in place. 2018,uld participate in you will not just have the o manipulateing t

the outcome, we will have people from all over the place, states.g in the united if you're a corporation and do not like some law, you can use the same techniques and scare much of the book voting your way. the problem is facebook in particular has a business model based on appealing to your deep emotions. they make you vulnerable by getting you addicted to their product. there are 1.3 billion people on facebook every single day. that's assuming facebook a bad company but they do have a responsibility to make sure the people do not hurt themselves. emily: we rely on these companies? do we rely on government regulation? count on thenot companies. so far, it has been public pressure that has brought these very small baby step changes we are seeing. appetitenow have no for heavy government re

gulation. we have been in a mode for 30 years were we are deregulating. this will have to be public pressure. i think consumers and employees will have to work together to say you know something? enough is enough. facebook, google, you have won. massive achieved these monopolies. no one is coming to take it away from you. it is time to recognize you have cooperate with everyone and find ways to literally open source the investigations of what is going so we can have literally millions of eyes trying to prevent our government system from the attached -- from being sabotaged. there was a guy in egypt during ise arab spring and h

hypothesis was we can get the world to protect a mom -- protect democracy. is get need to do everyone reengaged in democracy. we have all become too complacent. back and running other people do it and not taking responsibility. case, some parts of the problem are easy to fall. i think they are making goods stored the use of youtube by -- good steps through the use of you to buy making good -- yout results.king good if you are looking up construed conspiracy theories and it comes up, all other facts will come up as conspiracies and artifacts. the algorithm themselves create

this problem. the very business model of these companies creates the problem. i would really like to see them say we may not be quite as profitable as we would have been but we live in a country where democracy still works. emily: i wonder how likely that is. earlier.rly fiorina take a listen. these: megan what tech companies need to fit -- i think what these mega-attack companies need to think of is enormous.they have is the power's in all kinds of ways. i find it disingenuous for facebook to say we didn't know our platform was being misused. these companies have enormous power. emily: you're been vocal the power of the companies have been

dangerous. roger: fairly vocal is an understatement. emily: what do we do about that? from a publicind pressure is the most important starting point. we need to have an education campaign. people do not know the problem. rob rosenstein made a statement yesterday -- doesn't actually understand what happened. the first thing we have to do is have this conversation and get theybody up to speed on fact that advertising is this much of a problem, the box and groups and events in coordination across multiple platforms, those things are much more important and aggregate them the advertising was. place as you put in really important that they are only a piece of it. we will be playing whack-a-mole four years. the reason is because the

algorithms that determine what people see inside facebook and google in particular. they are easy to manipulate because they favor things that are angry or fearful. campaigns that have a negative message are much better support by facebook and google because their messages get shared a lot. the mainme in as campaign around brexit, we will be sensible. nobody showed that. , the otheride campaign comes out and says that immigrants will take away your job and culture and they to that away like crazy. this was leveraged anonymously and a big problem. emily: we will be covering the hearings all week long. i knew you have a lot to say. roger: do not hold too much hope. the hearings are just lawyers

talking to members of congress. frankly, it looks like they are setting up twitter to be the fall guy. do not fall for that. emily: you're sticking with me. roger of elevation partners. quick disclaimer. bloomberg's parent company is creating a global breaking news network for twitter. nonexecutive chair is a former bank advisor to the bank of england. they will join the company to join the struggling business. is dealing with its -- company also announced a new chief counsel, who comes from pepsi co. coming up, or scouts make this public training debut --

trading debut. this is bloomberg. ♪

emily: cybersecurity company or rscout climbed in its debut. ceo set down with our bloomberg ipo reporter in new york. he discussed the next big thing and cybersecurity. take a listen. >> the space in the cyber world we participated in his disability. sounds basic by giving a company visibility is the next big thing and cyber. that is the place we play. emily: if that were a lot of the incursions are coming ? i know you have worked at

mcafee. what is the number one place for your clients are concerned that bad actors potentially get their data?on a client's michael: what we are seeing an incredible growth over iot. the number of devices coming onto a company's network. just like your house, the thermostat, tv, security cameras are paired in a network. cios are dealing with an explosion of devices. many of the devices do not have security on them. because you the best job possible on 99% of you what is on your network, and the bad actor will find the one way in. we didn't even think twice about having security cameras on our network we will go up one day and something took over all of those. that is what we are recognizing. all of these iot devices becoming -- heads are on the table

ifsomeone gets into one of their devices.'s equifax comes to mind. what do you think would be the timeframe before we see something else began resounding as the equifax hack? michael: sadly, we see them on a frequent basis. ironically, these are some of the companies that spend the most money on i.t. ceos are accountable. 'if you'res -- if you are going to take your customer's data online, you have to do it safely. as consumer confidence that comes along with that. i think we'll be seeing breaches on that skill is a -- on a more frequent basis. $16,000.is 16 what would you do that? we have 83% of the global 2000 that doesn't use our skill

and many organizations do not have a strategy in place for visibility. if you ask a typical cio if they know with clarity what is on their network they would say no. a financially responsible company, but we want to invest the dollars back in engineering and sales to we can help keep the world a safer place and keep customers they -- customers safe. emily: that was forescout ceo. coming up, worst day since july 2013. china's biggest search engine is struggling to keep customers happy. next. this is bloomberg. ♪

emily: alibaba is find a big fest of brooklyn's wanting. he agreed to buy 49% of brooklyn nets. nbadeal is valued at an

record $2.3 billion according to people familiar with the transaction. he would have the right to divide the remaining stake of the team in 2021. the sale will not include the arena where the next play -- net splay. -- nets play. by do is asking investors for patients. shares of china's biggest search engine seems to be suffering from self-imposed ads. discuss,e now to selina wang in our guest post for the hour -- and our guest host for the hour. ina: forecasts missed targets. they have the self-imposed restrictions. the earning came days after the communist party congress. wasn't great timing. the positive side is that this

might just be a one-time problem. it might recover next quarter. overall, there are still political headwinds. of the content section, which is up for stronger censorship restrictions over time. we have seen xi 10 policy over the several years. emily: but as her take with what we're seeing in -- what is your take with what we're seeing in china? roger: i'm curious about your thoughts on this. we are always going to have things like this. black box tot of a the government policy around china that for investors will be an issue every quarter for the indefinite future. for all the opportunity, you're always going to have these moments of uncertainty where the numbers are affected by some government policy or trying to get out of the way of a government policy. it is something investors

have to realize. there will be a damper on profit against you have to have large government relations sections and a large staff to watch over content to comply with censorship regulations. there is not a clear directive to the public or the companies about what is coming next. roger: the thing that makes me concerned as they have all these issues in investment categories that may pay off. which create a present job of the investors are bearing the full cost of with still uncertainty on the regular side. -- regulatory side. emily: talk about the regulatory risks earlier in the show. what do you think of that applies to the chinese? roger: to me, that is the problem. i at least have some from a reference for how u.s. regulation works in china is a different culture. they have different values,

enable different set of opportunities. candidly, i spent a lot of time figuring out the chinese market as it was beginning and realized if i wasn't going to live there, there was no way for me to be an expert at it. i basically stopped investing in china knowing i was giving up a indirectly,t because the domain expertise necessary to compete with the locals was more than i can do from california. emily: what are the trends coming out of this hearty congress meeting -- party congress meeting you believe we should be watching? selena: when you talk to people who are close to baidu they say they are not concerned about party. they are doubling down on artificial intelligence. there are headwinds on the regulatory side but china has come out and said they want to be the leader in ai over the next several years. the global leader will be back in companies like baidu and alibaba.

this is a positive in a negative. penn state backing for things like ai but also government headwinds in emerging tech and core business. emily: thank you so much. always good to have you on the show. thank you for being so generous with your time. thank you all for watching. that doesn't it for this edition of bloomberg technology. we are live streaming on twitter. happy friday, everybody. have a wonderful weekend. we will see you on monday. this is bloomberg. ♪ retail.

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>> from our studios in new york city>>, this is charlie rose. charlie: we begin this evening with a focus on the opioid addiction problem. it claims over 100 lives daily. president trump clarinet a public health emergency. in a speech alongside families affected, the president called it the worst drug crisis in american history. pres. trump: my administration is officially declaring the opa crisis a national public health emergency under federal law. why i am directing all executive agencies to use every