wascials say the attackers from quebec a stand and came to the united states legally and 2010. >> we want a merit based programmer people come to our country based on merit. we went to get rid of chain migration. officials had not said whether the suspect was admitted through the diversity immigrant visa program which covers immigrants from countries with low rates of immigration. france has lifted their state of emergency officially for the first time in nearly two years. speaking and paris today the prime minister trying to assure the country will enjoy a good level of security thanks to their new cover security laws. in iran vladimir was therefore a one-day trip. president clinton said moscow will oppose any unilateral

change to the iran nuclear deal. a update on the appointment for the next fed chair. president trump has been sent to pick tyrone powell as the next leader of the u.s. federal bank. that is according to the wall street journal. bloomberg technology is next. ♪ emily: i am emily chang and this is bloomberg technology. coming up facebook third-quarter numbers tried expectations with the fallout from the tech industry. bloomberg has the numbers and mark zuckerberg's warning about profitability. tesla also reported third-quarter results with disappointing numbers. we will review the production

setbacks for the highly anticipated model three. a bigger picture merges with the sophistication of expertise behind russia's influence campaign. we would you use some of the ads is by kremlin sponsored hackers and the fiery exchanges as we wrap update to and that hearings on washington. to our lead. facebook recording another quarter of record sales despite a tough weekend capitol hill. shares climbed to a record just before the earnings report and have an extended trading. $10 million in a time above the top range from expectations. not bad for a quarter that was dominated by reports that russia alleged to have used the social network to meddle in the election. in a statement mark zuckerberg said facebook is serious about blocking of you saying we are investing so much insecurity that it will impact our profitability. protecting our community is more important than maximizing profits. they also said they plan to

double the amount of people working on safety and security to 20,000. joining us now to discuss this is the ceo techonomy and the facebook effect. williams, iebbie want to start with you. how significant to you see this is that mark zuckerberg is in these new security concerns will impact profit? at emarketer we are more about looking at revenue. you mentioned at the top of the newscast that this shredded the quarterly expectations. they should hours as well. for us it is all about revenue and to the right. everything they have reported this quarter is higher than we anticipated. emily: that said, david, you have taken a slightly different tack i today.

what is your thoughts on the results? david: chairs have a lot of reason to be strong. of the russians effort would be to reassure advertisers that they are the right place to advertise. they are not going to stop magnetically attracting more and more added dollars. the question is how much are they willing to spend and how much social capital are they willing to spend and corporate capital. with the orientation capital to do the right thing. i think they really have to step up and take a fundamentally different attitude in the role for society. it goes way beyond election meddling. i have not seen that yet. emily: would you agree? no, i've the whole story is hypocritical reader the cia has been doing the same thing all across the globe. the idea that russia is evil is ridiculous.

presidentstake was by obama when he declared rusher was our friend and ridiculed mitt romney for predicting all of this made if the president of the united states thinks they are our friends why should facebook think they are evil? emily: but now that we have evidence should you think they do anything about it? >> i think they should do the same thing that tv does. that requires transparency. they do not allow foreign agents but that the election is a very small category. it is not really what people are talking about. the news came out they spent about $48,000 on facebook which is a rounding error. trump and clinton expenditures. they spend $81 million. precious spent $41,000, it was the most efficient $40,000 in history. emily: what is your response, david? david: i think what he said

about cia is to the point. these companies in particular have a social way that a commercial enterprise has never had an america or the world we don't really have a governmental regulatory or citizen response to that. political meddling is just one piece. senator warren today had a number of other things that are equally problematic read financial scams, other fraud, socialg of various behavior. this is not going to stop even at the entire russian and went away tomorrow. facebook would be facing massive questions about their future. it is a platform for public debate and why a company should be the one making decisions about what happens. , mark zuckerberg talking about this same they are working with congress on legislation.

even the company is taking some responsibility. i don't think they will support any radical legislation. i think facebook should require real-world identity. i think the problem is dedicated by real-world identity. i think stamping out fake accounts is a very good in and it is something users would expect. i don't think facebook should be subject to any and the rhetoric regulation that does not apply to tv, newspapers or billboards. emily: we got the first hint today that testimony from the lawyers instagram was also affected. significance to think this will affect with the other businesses under the facebook umbrella whether it is instagram or whatsapp? it was new news that instagram came into this. i think it is possible we will see other platforms involved as well. i have to say though there is a lot going on.

everything as new and it is always exciting to see what facebook is doing it with what role they are playing, the debate is not going to and with this project investigation. i do agree that there is a lot that facebook has to in terms of their role for society and role for understanding and helping people understand what is news and what is not news. is many, many things going on that we will see over the coming months related to facebook and all their companies. just thatk zuckerberg he is dead serious about the problem. >> he should be serious, these are people who are trying to share this. facebook should be enabling users to share what they want to share. the national inquirer has also this been around for 50 years. most of what they say is totally fabricated or false. people like to buy it and read too similar to how they

share stories of facebook. people would like to be entertaining, if you are a serious news platform you may have to make some editorial judgment. that is what facebook users that they are getting rid. emily: thank you for sticking with me. david, i will give you my last word. i think they have to behave as i think they have to behave as a media company which they should resist. the one thing i really agree about is they should double down on making sure people are they say they are created that has been a fundamental design feature of the service but interestingly when they were at the committee hearing they lifted -- list of the effort they are making that is not on the list. because theyematic do not like to acknowledge have anything at that it is actually do exist on facebook which is many tens of millions. emily: all right, david kirkpatrick, debbie williams, thank you both. keep chemical you are with me for the hour.

coming up, tesla earnings are on the production of the model three. we will break down those numbers next to. this is bloomberg. ♪

♪ emily: scherzer tesla falling ater the company delaying target for their critical model three production. that led to them making about 5000 of those cars by the first quarter of 2018 relevant the end of the year a big disappointment now isestors, joining me a reporter who covers all things tesla. what happened? they said they were going to bring the market -- muddle through to market. as any suggest that they are not going to make it. camping withw elon was

those numbers, they are having a lot of problems at the factory. they are still playing a lot of whack-a-mole with this delay. two women are going to start hitting their target. have any indication what the problem is? >> it is a problem with the battery pack assembly. it is not the most confidence inspiring shareholder letter in terms of production. -- >> what about it when it comes to record cash burn? whence it are going to continue to have cash needs as a company. they have always been talking about layoffs. >> there is a distinction there because they got rid of several hundred people. typically you would not do that when you are on a big rant. that will probably come up on today's call. it was across the board.

a lot of it was solarcity because they acquired that last year and there was door-to-door sales. it was across that. what kind of information are you getting? seeing this delayed by a quarter. they originally wanted to make and cars per week this year that will happen in 2018. if you are waiting for a model three at will take even longer. a lot of people are not going to wait forever. there is still tons of reservations but eventually you'll have to try a -- private car. the schedule if it is indeed going to be so difficult to meet? to solve this problem in a hurry. this whole sort of ramp up was push forward because demand was

so strong. there is the opposite problem but there is debate over this. emily: how does the solar roof fit in? grexit is still slowly happening. there is apparently more demand for the energy products, they talked about sending this to the rico and how they will be growing part of the story going forward. investors just want to see it on the road. about the other models? it are seeing record demand and seeing record sales in the fourth quarter to they have not cannibalize their current product yet. emily: i know you will be listening in on that. thank you. house up, the senate and talk about russian interference with the 2016 election. real estate the one of the representatives of the house intelligence committee. this is bloomberg. ♪

♪ emily: we continue with the appropriate shales are falling. theythey first reported a profin two years. the cost cuts are helping turn around the business after a difficult 2016 little blood production delays and the closing of the media and entertainment unit. as we mentioned earlier facebook, twitter and google on google for the house intelligence committee to answer lawmakers lessons about possible russian interference in the 2016 election. i spoke to the republican representative from utah who serves on the committee and asked him if he was at his auckland response to committee. from the lawyers. >> and generally we are satisfied they have a in norman's challenge in front of them. when you look at how the russians for able to manipulate .ublic media and public opinion

they did it in such a divisive way and they had a enormous challenge in trying to identify that. the best way to respond to that. the executives we have before us were very honest with their answers. it is not going to be easy. response you buy the that it is technically difficult to tell you at they were served russian and sore posts? can answerknow if i that with authority. i don't want to disagree with them. i don't want to say they were not being honest. i think the answer is sufficient. they're fat is what they told us is true then we have two dug deeper and we have the future until we understand and have been able to develop policies and tools that will stop that from happening in the future. maybe that is the case now, it is not sufficient for what we need in the future elections. these companies spent

their top lawyers but not top executives. >> yes, it may be more publicly interesting to see and talk with them. i don't think we would get a different answer. i understand why they sent their that their lawyers. sometimes they were asking a very difficult questions. they wanted somebody else to take the heat in the face of this. i don't know that they would have told us anything different. if that is the case there is not much advantage to having mark zuckerberg there. emily: do you think we will see regulation out of this? is, they talked about fake news again and again. identify it and we will help the consumers fake news.this is i asked what does this mean? who is going to decide what is fake news and what is not.

if you talk to mr. trump's idea is very different than someone else's may be. if you are looking for a regulatory answer to this that is a enormous challenge. i think at the end of the date you have to trust the american people that they will use some use someand they will of their intellect to determine the spirit that does not sound right to me. in that spectrum there are facts may findof the readers some degree of opinion. i don't know how you would try to repeal that. i think it would be a enormously complicated and the potential for that to turn into a political tool is very troubling to me. about government cooperation? christ that is another thing to do altogether. there is more we could do to further the cooperation between the government and private

entities but in many cases these entities themselves traded their own terms will not allow them to share information with each other. i wish they would break down that barrier and be our own and and paid this person or customer. belongingentified a to a russian troll. i would say which of the end of information with each other. the same thing is true between government especially the federal government and these private entities. that is the type of information that could be shared and should be shared and many times right now it is not. not seen ande vitamins from the special counsel, you are doing your own investigation, where does that stand and what is next? >> the house intelligence committee has been looking at this for one year. we started looking at russian interference and that we have tried to stay focused on that.

fewe indictments and saw a days ago may not have anything to do with this. they were financial apparently yearsily's that happened ago. in some cases it was several years before some of these individuals were associated with them. if they did something wrong or if they were truly laundering money they should be held accountable for that. the house really on if there was collusion, how do we stop that from happening in the future. we are when you're away from midterm elections, europe is focusing on much of the same thing. how do we focus on the american people that they are not continued breaking down with that trust and democracy and trust in our own election. emily: what do you need to see from the investigation and terms of evidence to act legally? to answert sure how

that. if we find evidence there was illegal activity than we will pursue that. we will write a report and if necessary we would prefer that to the department of justice or in some cases the special counsel. concern is the president bid we are not a law enforcement agency. we are not tasked with enforcing the law. our goal is to discover what happened and tell the american people. some people are frustrated. they have been saying collusion for a long time. that truth is we have not seen evidence of that. have seen some other activity that is concerning for us. you will continue to pursue that. as quick as possible report that to the american people. they deserve to know. should not be in 10 years and it should be as quick as we can while still relevant. again to stop that from happening in the future. emily: my interview there with

the house intelligence chair isber, remember bloomberg lp developing a local news network with twitter. ceo told board members tuesday that he wants to remove a provision from the bank deal. with any director that he appoints in the future. the japanese company planned to invest a potential $10 billion has not been finalized. a decision is expected soon. coming up, after this experience. how will the future of the ads be? we speak to a former executive that helps them craft their honor and credit next. irist it can find that bloomberg go. if you missed the interview you can go back to. you can send our producers a message. it is for subscribers only.

check it out. this is bloomberg. ♪ who knew that phones would start doing everything?

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russiary and to his fueled campaign. a phone call to the times today he said about the indictment of his former campaign chief. russia fueled campaign. paul manafort, if you look at that there is not a mention of trump in there. the wall street journal signed a person's saloon the matter said pick to nominate his succeed jerod. that is expected tomorrow. argentina 25 other citizens who were killed in yesterday's terror attack it divisions were in the human was also killed. brexit thought it is complete solidarity. terrorism one once again. this is a face that knows no borders.

certainly with europe and other countries they have to deal with this evil and confront this from time to time. >> the suspect reportedly left a note in the van that was used referring to the islamic state. the british government has said that a man has resigned after touching a journalist inappropriately 15 years ago. his departure comes in the wake of a growing sex scandal that has reached prime minister theresa may center circle. global news 24 hours a day powered by more than 2600 journalists and analysts, in more than 120 countries. i am mark crumpton, this is bloomberg predicted his just after 5:30 p.m. in new york, 8:30 a.m. in sydney. mike kelly paul allen has a look at the markets. morning, as we had to the markets they are closing higher with the exception of the nasdaq new zealand has been the about 10 of 1%.

we see a kind of flat just four points right now. the national us really a bank will close out with just four points. upbillion australian dollars to that meeting estimates for the diffidence there. moves trillion dollar may today with the trade balance 2 billionto expand to dollars. japanese stocks are touching a 21 year high. i am paul allen, more from bloomberg technology next. ♪ ♪ after weeks of waiting the public got a look at the alleged russian link ads that appeared on facebook, twitter

and google as a widget to influence the election. according to mark warner or is more to be worried about than just these ads. just the tip of a very large iceberg. the real story is the amount of misinformation and divisive content that was pushed for free on russian backed pages. it was then spread widely on newsfeeds of tens of millions of americans. >> joining me now to discuss this is a republican digital strategist who worked as a geopolitical strategist with politicians who could use google and their campaign. my guest house also for the hour. a bite a step back it was of a history on how political advertising has worked online platforms and how it has evolved.

grexit really started in 2000 eight where campaigns and political organizations are working with a company like google building their online presence. it really expanded during my time there in the 2011 and 2014 election. that were multiple teams were working with the campaign and agencies on the best way to have online advertising platforms to reach be all through advertising. emily: do you believe the revelations of the things need to change and how this political advertising needs to work. >> the biggest take away i had -- that i had is that this is a complex issue. in the beginning it was focused on the advertising and i think senator warren brought in the national security institution talked about what was happening. found a organic side of what these companies are facing.

emily: what is your response to that? >> the ads were on both sides. they were pro-clinton and pro trump trade it looked like they were really trying to ensue chaos not as much as i have believed before. they were trying to create a mess of a chaotic environment than what really happened. it is more interesting and more provocative than the mainstream media has talked about so far. click some say that the ads are not the problem at all. the broader part of the problem as mark warner said his misinformation, what do you think? that can be a problem. i think the senator is probably right where advertising was probably what people should be talking about with the run-up to the election.

there should probably be a bigger focus on what people are talking about. there should also be some discussion on if google should rethink political contributions. that contributed to the campaign and especially to hillary clinton, is that something you believe they should reconsider. >> i think you are running down a pretty slippery slope. i think what is important to focus on is that one of the things that i was shocked by. knowledge of across legislators and their staff and how these companies work, i think it is to be a effort to better educate advertisers and these views is organic. it is all wrote template new for members of congress. i think they can't even turn to some of the younger members and talk to them about how to better use these platforms. >> you may agree with that, with

the level of funding and these expenditures. with the staff as much as possible, i did not lobby for them back in the day. representatives , apply it was important to society. much that it as would have expected given their investment. i think one thing that is critical is the conservative side of the aisle is mostly getting with the left side. the conservatives are nervous viewsthe ideological giving money to hillary. ony are pushing back ideological neutrality. left andthe hard court the hard-core right that are motivated by different reasons. that is difficult because you have them relax you could have a fundamental problem.

emily: i am curious to how you think youtube is. the lawmakers have been repeatedly asking why russia today has a challenge on -- a channel on youtube. as i understand there are people broadcasting today that carry that channel. i don't see why they carry that channel, it is completely irrational. do you kind of changes think google should consider as a result of these issues whether it is on google or youtube? >> when i think about the changes that need to happen especially with 2018 or are a few different aspects. some of it is on the company ite, i think stewart said very well in a segment earlier around vigilance and voters looking into what is real and what is not.

i think there is definitely a civil engagement play. i don't think they are against disclosure. ftce is a lot about disclosure and dollar disclosure. it is a interesting way to go. i think you are looking to work with legislators to how to do disclosure in a practical way. when you are talking about the ads that are being run by legit organizations. t-rex thank you so much for joining us, you are sticking with me. lp is developing a global news network with twitter. >> they continue to monitor a slew of tech earnings coming out. estimates for the bottom line, the chipmaker still in a legal dispute with apple. forecasting revenue between 5.50 in dollars for the current quarter. up, we would hear what

the facebook ceo -- coo has to say about as i'm facebook just a few minutes ago. , thatare reviewing as will enable us to look more at advertiser and the who has submitted them as well as tighten our policies. perfect way for those directed at social and political issues. ♪

back to the top tech story of the day. with the u.s. presidential election. it had a lot to say about that.

i am disappointed you are here great because we are talking about a policy on the policy of the company. it is fine to send general counsel. i think if you could take a message back to this committee when we go through this exercise again we went appreciates seeing the top people who are making the decision. theow big a deal is it that ceo did this? we have our guest host and to others. a big dealk it is that mark zuckerberg did not show up? >> i don't think the senate really wanted him to show up. if they wanted them that they would have scheduled them. this was a done deal between the senate staff and the seat euros. i think he is just speaking for himself. he probably violated a agreement. companies withth a find a day to schedule the hearing. this is totally fraudulent.

>> the bottom line they could still be asking for them to come to capitol hill. walker theyith ken will probably see this for little bit more. to see these issues a little bit more clearly. probably much more involved with the day to day. >> jack dorsey was just in a of that, he was definitely not going to be in one change it is telling the is running to companies. he does not have that much time. senatorpoint that the investigations are not over. take a second to what she said today. >> the you believe any of your companies have identified with the full scope of russian active measures on your platform? yes or no? >> our investigation continues.

i would have to say no. certainly not with certainty. we are still working on this. are ongoing issues. >> we do not know the full extent of this. you maintain it is not important? >> i think it is totally hypocritical and they are showboating. not tore all advice attend because it would have drawn more attention. imagine my parents watching this. they would have turned up football. if the ceos show up for this event it is very newsworthy and people will tune in to see them. that is that what the companies want, they don't want this. it was a very calibrated decision. if they continue to miss played these cards, it was incredibly hypocritical. many people were listening to terrestrial radio then logging

into facebook. why are we going on the radio. >> you must admit that facebook is a big influence >> there is no evidence, show me one study in 2016 that it was more or less informed than in american history. are highok earnings for the third quarter, they talked about having 100 million hours. >> tabletalk consistently about their advertisers better than tv. we have more targeted range and now they are saying the targeting was not that of effective. have political advertisers this budget. postinge are still about political candidates. >> do you read them? you see them but you are looking

for the baby photos like everyone is trained to do. a biggerdy will have impact than what you are seeing on radio. >> it is my friends ensuring that which is the fundamental issue. they have the right to share any in congress and nobody in the senate or house or in america should be trying to stop that. >> i was looking at the page and they put out a 168 page document on this. really what they demonstrated is these companies are flat-footed. twitter has been aware of this problem for a long time. now it seems like congress is waking up to what is happening. think the user expectation is that there is this real-world identity. there is something facebook should do about that. the platform is designed with the real vision of a company. twitter has encouraged fake accounts with dissonance.

knows it is not a real person. >> what about what they are doing is fake news? cause i don't think there is a definition to agree with. i have the right to say hillary clinton is a crook, that is not fake news. if someone tried to suppress that the country would be as bad as russia. i think there are things that are clearly false. what people are objecting to is a mac the -- a mix of fact and opinion. you one lasto ask question. they were asked if there was any overlap in the material posted .y the advertising facebook said no. twitter said they have an answer they have not provided. >> it is very questionable, it

seems twitter did find something that they were not ready to prepare in front of the public hearing. this was the main purpose to find out if there was collusion over of these several hours we did not find out that much if there was any sophisticated collusion. it would be interesting and it is a ankle the government should investigate. it is totally different from somebody 98 add. i think it is interesting that they think it did happen. i was laughing because it is not surprising they didn't have a answer. qwest great to have you all. it is not over, i am sure we will be debating this eight months into the future. our reaction today from tesla which just started their call saying the model three is a tenure program even though most cars stay on the market for a 6-7 years before getting a

overhaul. one programming note, tune in for a interview with a goldman sachs ceo. this is bloomberg. ♪

emily:emily: weird city could very well be home to amazon second headquarters. according to a new study the big apple topped the most probable list. thanks to their mass transit network. the amazon outlined in their proposal san francisco ranked second. washington, d.c. was third on the list read earnings season is starting to wind down for facebook. today the reported another quarter of record sales. another profit shows apple speaking about them reported the numbers on thursday. there is high expectation for the iphone x. fromxecutive editor

bloomberg is talking about facebook throughout the show and we have been listening about mark zuckerberg double down on this russia problem. so the numbers are blowing out of the water. >> i know we have been talking about this a lot on the show. we will not go into the details, facebook continues to dominate. they and google are duking it out. they continue to look to facebook to be the way for various audiences. the way we see this played out in the hearings, we have a number of russian actors -- you can use facebook in a very sophisticated way. target them of accent why. millions of them around the

world are still flocking to facebook. including the russians who are a little too effective it turns out. interacting with each other, making decisions and learning about things. people are spending a lot of time. that is the other thing. facebook gained more users, they are getting a wide swath of the nation. emily: that is the conversation about how say facebook is and the russian meddling issues. -- let's to elon musk go to elon musk who is missing the huddle three deadline. in cumulative,000 sales. did we predict that? >> here is the thing with tesla.

all about the production and can they get these cars into people's erogenous. these very sophisticated cars. if you have read it and one you know what it is like. he isg them are right -- a stickler for details. i am always fascinated by the details just in the seat of the car. they are very sophisticated getting them right and having the sophistication's. it is always a challenge for tesla. ask this question, as sophisticated as the technology is. people want to think about them got a autoompany company. if you cannot get the parts and the cars and the right combination -- all of the advances that make a difference. christ even if he is sleeping on the production line.

it seems like this is a battery assembly issue great it is something we are going to continue to monitor. thank you so much for stopping by. edition oft for this bloomberg technology grade we will continue to have more reactions to the tech hearings. we would hear from the former twitter's ceo. that is all for now. this is bloomberg. ♪ is this a phone?

or a little internet machine? it makes you wonder: shouldn't we get our phones and internet from the same company? that's why xfinity mobile comes with your internet. you get up to 5 lines of talk and text at no extra cost. so all you pay for is data. see how much you can save. choose by the gig or unlimited. xfinity mobile. a new kind of network designed to save you money. call, visit, or go to xfinitymobile.com.

♪ >> and then there was one. reports a president trump has made up his mind. powell will be the next head of the fed. a reaction was strangely mooted. peering gains briefly while stocks and bonds were largely unmoved. >> elsewhere, a case of highs and lows. facebook smashes estimates in the third quarter with revenue topping $10 billion. slumpingsla simply --