>> i'm selina wang in for emily chang. this is bloomberg technology. in the next hour, facebook user growth is its lowest since 2011. we dive into the third quarter results. plus, apple's big hardware overhaul. a revamped their macbook and ipad for the first time in years but i is it too little too late? and t-mobile.

earnings are out. t-mobile's earnings are out. first to the top story. facebook shares fluctuating after reporting third-quarter earnings. the social network reported expert -- mark zuckerberg still seems confident in the press release stating "our community and business continued to grow quickly and more than 2 billion people use at least one of our everyday. we are building the best services for private messaging and stories and there are huge opportunities ahead in video. the earnings call is just starting and we will bring you the biggest headlines as they come in." we have david kirkpatrick and deborah in seattle. last quarter facebook already warned us there would be ,lowing growth, rising costs

were things quite as bad as investors expected? david: i think it was pretty much what they predicted which is reassuring in a sense. is, is thatquestion enough? but that is different question entirely. they are still capable of being an extraordinarily profitable company, but we have to ask will enthusiasm for using facebook and other properties continue to grow in developed countries like the u.s. and europe? david: we have a mixed bag -- selina: we have a mixed bag of numbers but as david mentioned, profits are better than expected. can you break down the numbers? what were key highlights? >> for me, although the revenue was a miss, it was not a large miss. that i guess was partial good signs. return to a slight amount of growth in monthly active users in the important u.s. and canada market.

we saw flatness in daily active users which is a bit more concerning, but on the monthly basis, we saw growth. on the other hand, there was declines in the european monthly active users, again probably do to gdpr fallouts. it's a mixed bag. it is as good as you have -- you could have expected for a company under turmoil this year. selina: you were talking about the user growth and you flat -- being plentiful at -- growth being pretty flat. what is the significance to this? is this reassuring to investors that things are not trading? debra: at least on a monthly basis they are not trunking and that is important. facebook hasasis, been able to maintain the solid 66% ratio of daily active users to monthly active users, something they have had over the past several quarters. again, they managed to eke that

out quarter after quarter. if that number starts to decline, that is a bigger red flag. overall, this is about as good a quarter as you could expect for the position facebook is in. we go live, mark zuckerberg has just started speaking on the call saying we have had a solid quarter but he wants to point out costs are rising up 91% from last year. what does this mean? are they still spending on the content management issues? david: i'm sure that is the reason it is going up so much faster than ever before. i think the company wants to say, simply by spending and hiring, that they understand how serious the problems are and are doing something about it, but the proof is in the pudding. havinge see facebook not the pernicious of fact it is having on elections and social dialogue, which is still

a voiceing in all caps ways in our country and the united states and brazil and around the world, i do not think we will be confident those measures are enough. it is good they are willing to spend money. i fault them for not being willing to talk about it bluntly and maybe on this call zuckerberg will be pressed to explain how he feels and thinks about the extremely negative role facebook has played in certain aspects of modern society which they have never confronted. i'm glad to see them spending money. selina: i'm sure we will hear more about this on the call, but there are societal concerns hanging over their heads despite some positive numbers. are you seeing brand advertisers holding back because of the safety and security issues we have been talking about? debra: you know what, we have not seen any holding back on major advertisers. they are continuing to spend strongly on facebook. they are spending strongly on instagram as well.

we are forecasting instagram will have $9 billion in ad revenue this year amounting to facebook's overall ad revenue in the united states. an important and growing part and advertisers are enamored with facebook and instagram. selina: it seems like advertisers may be enamored but users are being enamored less and less. let's talk about instagram proving to be more popular. are they starting to pull that as a lever of growth here? david: certainly if december numbers are right, and they make 9 billion and add revenue, that's a big number considering how recently it was zero. i would like to see the company be more blunt and disclose what is really happening with their other properties in detail which they have not done. clearly, they have a hedge against whatever happens with facebook. ways, other hand, in some

even though it is photo oriented, the architecture of instagram is similar to that of facebook. many of the abuses happening on facebook are also happening on instagram. exempt froms been criticism about it, but that is starting to change. we hear more and more stories of how instagram too is being abused for propaganda, hate speech, etc.. clearly, they are doing well with instagram and that is good news for the company that otherwise might not have a lot of good news. selina: in terms of things other than the core platform, right on the call, zuckerberg is talking about whatsapp and improvements they have made their and we will continue this discussion later in the show. will berkpatrick sticking with us throughout the hour, and debra aho williamson thank you. selina: baidu has given a

conservative revenue forecast for the rest of the year amid fears of a slowdown in china's economy in looming trade wars hurting consumer spending and advertising. the company posted third-quarter revenue beating estimates, but baidu's growth has been eroded on increase competition and now there is concern on how llcalating tensions wit impact trade tensions. -- biggestts most upgrade since 2014. we will have more. if you like bloomberg news, check us out on the radio. listen on the bloomberg app, bloomberg.com, and, in the u.s., sirius xm. this is bloomberg. ♪ sirius xm. this is bloomberg. ♪

selina: we are soliciting to the facebook call live with analysts. mark zuckerberg is speaking now saying facebook stories is the future and the disappearing photos that facebook stole from snapchat is popular on instagram but zuckerberg admits watching on the core facebook by form has -- gone as good as it help as well as he helped. elon musk could not wait to get his hands on more of his own company's stocks. musk bought about $10 million of tesla shares on the open market and did so while waiting for the carmaker to issue $20 million worth of new stock that he is slated to purchase by next week. apple has given its ipad its most expensive revamp in three years as the company looks to revive its product that has seen falling sales in recent years.

in an event on tuesday, they new veiled -- they unveiled hardware. .nvestors were not impressed it shares fluctuated throughout the event. we were counting down to apple's fourth-quarter earnings on tuesday. -- thursday. anding us now is ryan reese still with us is david kilpatrick. changes truly game changing that you think will draw in new customers? >> i think the design improvements they made overall were expected, but those are designing ultimately -- designed to pull customers and. they are looking toward face id

which plays willy well -- really well into what they have been doing with the iphone. those design features alone will draw consumers in and i think it was a good evolutionary step for the ipad lineup overall. that hade other things to do of that were probably more important. selina: david, ipad sales peaked in 2014 and the tablet industry has been contracting. are these changes enough to regain that momentum apple was had with the ipad? david: probably not, but that does not mean it might not slow whatever decline they are experiencing or flatten it out. maybe it will stabilize things. earthshaking changes. face id is an important technology. i have it on my new iphone and find it enormously convenient to not have to do anything besides pick the phone up and look at

it. that would matter to me on an ipad. so i like that. i do not think it is the right way to think about these announcements as significant game changers in any way. if it was any other company that apple, we would not be talking about it. these are not the kinds of products that generate the excitement the phones do. that is a simple fact. talk aboutn, let's price increases. the 11 inch model is up $150 from the title last year. -- of theign ipad pro line ipad pro is higher than most. away more the ultimate strategy of what apple is trying to do with their mac lineup and it seems to me with them releasing the well anticipated refresh of the mac aoke -- macbook air with

higher price point, that puts the emphasis on this as being the most attractive large-screen product apple has to offer these days. the price point puts this as a premium product, but then again, apple is not selling prematurely thing in the market that is not premium. they are driving up costs but adding features. ultimately, i do not think that will scare away buyers. as mentioned earlier, i do not think this changes the tablet industry as a whole. it's worth noting when you break down the tablet industry, there are two bank sections. and thate tablets segment of the tablet market has been growing despite the overall tablet market declining. it's not a surprise the focus was around ipad pro, adding the iphone features makes sense. i think they're looking to this to be probably a more productive device in terms of sales overall in the long run than the macbook air. selina: david, this was the first major revamp of the macbook air in many years.

what took the refresh so long? david: i think they have been focusing on the iphone because that is where the money is. mention, ryan mentioned the surface and i think we have to give microsoft credit. they have done a more revolutionary set of changes in morphed the have pc into sadler -- into the tablet and the phone does both. millions of users would like to have that. selina: we will have to see if that comes through for the next product refresh. --n, and david for patrick brian, thank you for joining us and david kirkpatrick is sticking with us. corn-based has soared in the other direction despite bitcoin crushing. by to the facebook and look --

.nalyst call mark zuckerberg mentioned youtube as a primary competitor of video advertising. take a listen to what zuckerberg had to say about the quarter as a whole. >> we had a solid quarter. 2.3 billion people now use facebook every month and 1.5 billion every day. grew.r new -- revenue

selina: ebay's third-quarter earnings are out in the company grew active users by 4% to cost all platforms. cryptocurrency has tumbled more than 70% in the last year, but that does not mean there is no money in crypto. even in a bear market, coinbase is skyrocketing in the opposite

direction. on tuesday, the company announced a $300 million fund-raising round putting their valuation at $8 billion. that is a fivefold increase from the 2017 dilation putting it well above companies like insta cart. coinbase is now expected to bring in nearly $1.3 billion in revenue this year. joining us in san francisco is the coinbase president and julie -- julie in new york. you did not need to go out and seek to raise funding, so why did you decide to take such a large amount of capital? >> we were approached by high-quality investors earlier this year who have a constructive thesis on crypto and they wanted to invest in what they thought was the best name in the space. when the opportunity prevents itself, you take it seriously. even know we did not need to raise the money, we felt it was important to have tigers and

others in this round as they can help build the next phase of the company with us. >> i know you said you cannot comment on specific figures but your launched products. what are your thoughts on what coinbase institutional impacts revenue moving forward? will that be a big chunk of that? asiff: over time, each of those businesses we would expect to do more than its fair share. we would expect those businesses to diversify our revenue streams. our revenues are 100% transactional. what you will see is that will grow as part of the overall revenue which gives us more stability and predictability to the revenue stream. selina: the company has been growing dramatically, expanding the business, so speaking of 2019, should be expect to see an ipo? there will meet -- asiff: there will not be an ipo anytime soon. sometime we will go public but

that is not at the top of the list of things worried about. selina: what are the top priorities for? asiff: just for my financial point of view, we want to diversify revenue streams to have a more predictable revenue. of an asset manager is much higher than the pe of a broker which is much higher than the pe of an exchange. broker and custodian but the fee structure is 100% transactional and that will morph as time goes. julie: one thing you mentioned earlier this year, you launched the index fund. what did you learn from that because that was something that's not work as planned as you try to diversify the revenue stream as you mentioned. asiff: i would not say it did not work out. we launched the index fund and which was let's bring on institutions and family offices and so on.

we found it was a much bigger hill to climb in terms of the regulatory requirements to do that. we think it is more efficient to offer it through consumer. we rebranded it called the coinbase bundles. it is a robo advisor type product available to consumers and institutions if they wanted that way. this is a faster way of deploying the same thing. too hard given the environment, and this path is easier to create more value for the customer. that is why we did that. selina: by some estimates, the users on the. platform has fallen since the peak of bitcoin prices. what you seeing amongst your client bases? asiff: volume is given a move in line with where crypto prices are. that is true of every exchange and broker. the number of engaged active users, people coming inside, checking prices, that continues

to increase and regain customers every month and day. the focus is on broadening at the base of products we offer and accelerating the next phase of crypto, the utility face. we are in the investment phase right now. our mission is to create a more financial -- open financial system for the world and we are driving things like the stable coin, and we think these things can benefit people underrepresented throughout the world. selina: you're talking about coinbase adding more assets to the platform recently. five in particular were reported. what is the timing? asiff: you should expect us to add -- there are somewhere between 2000 and 3000 cryptocurrencies out there. 90% of them are garbage and that worththere are about 200 investing in. we offer seven. expect us to go from seven to

the total number we expect is worth it. those geography by geography because the u.s. has not kept pace with regulation drop the world. some things will be offered in the u.s., but more things will be offered outside of the u.s.. over the next those year, we wil offer the ones worthy of being offered. julie: what does institutional demand look like? when you launched, coinbase was around but crypto was falling in value. is there a lot of demand out there because the retail demand has pulled back but i wonder what wall street another hedge funds are thinking about this phase. asiff: we get more and more demand from traditional wall street and institutions every day so the biggest impediment for most of them is they need a custodian. they need a qualified custodian that can safely store crypto. we have been doing it for longer than anyone else. we have the best track record in the industry which is why they can to us last year and ask if we can become a qualified

custodian to purchase in this marketplace. that is the prerequisite. we have a suite of institutional products that we offer for this institution and that is where they are on boarding. there is a lot of shops already trading crypto and crypto is no different than any other asset they trade. long, short funds are starting to trade into. the long only guys will be later, but there are big parts of wall street trading crypto today. selina: all right asiff, and julie, thank you for joining. coming up, we bring you the latest out of facebook's earnings call and several sandberg is on the call just now illustrating how they bring asset to messaging. facebook shares continuing to fall down your 4%. we will stay on the headlines. this is bloomberg. ♪

comcast business built the nation's largest gig-speed network. then went beyond. beyond chasing down network problems. to knowing when and where there's an issue. beyond network complexity. to a zero-touch, one-box world. optimizing performance and budget. beyond having questions. to getting answers. "activecore, how's my network?" "all sites are green." all of which helps you do more than your customers thought possible. comcast business. beyond fast.

>> this is "bloomberg technology." back to our top story. facebook's underwhelming third quarter earnings, sarah sent earlier, works of covert spoke about the competition. >> our biggest competitor by far is i message. importing countries like the u.s. for the iphone is drunk on apple bundles i message as the default texting app and it is still ahead. in countries where there's more competition between ios and android, like much of your,

people tend to prefer our services. selina: back with us is david kirkpatrick. we heard zuckerberg talking youtube, ititors, seems unprecedented to talk about competitors during earnings call. what is your take on that? david: what are the things the investors aren't liking right now is the idea that zuckerberg is going from the newsfeed that made vast amounts of money in the last figures, everyone knows how that works, and now he's talking about how the going to try to make money from messages and from stories on instagram. investors are not quite sure how profitable that type of content will be. question, a big zuckerberg is staying next year will be another big investment year to focus on those things. tanking right are

now. our investors confident they can like withhis platform instagram when they no longer have to founder at the helm? david: clearly not. there's an unusual number of question marks surrounding facebook right now. i don't think investors are confident about much of anything, except if the problems were solved, this could still be the best money machine anybody ever saw because that has basically been what it has been for the last several years. but it is a moment of enormous gray uncertainty around facebook right now. it is shocking to me that zuckerberg called out i message as the biggest competitor of messaging. i think it's partly because he has been burned by tim cook's criticisms of facebook and he's trying to say the only reason tim cook is criticizing us is because he is impeding with us, which in my opinion is kind of a cop out. it's absolutely unprecedented for him to have said that. selina: one how we learned about

what instagram is doing in terms of embedding ads into the services and the security of the product? alistair: i think the comments from sheryl sandberg show she is getting into the nitty-gritty of how ads are going to show up in what'sapp. we're not sure exactly how to monetize in general, but we knew focusing on it, she's the operations person and the advertising expert. that shows they are really thinking about it and moving along, but again, there's still a question mark about how much money they're going to make. i want to listen to what zuckerberg said about security on the call. >> is worth noting that one of the main reasons people prefer our services because of its stronger record on privacy.

, does nots encrypted store your messages, doesn't store the keys to your messages in china or anywhere else. this is important because if our systems cannot see your messages, that means that governments and bad actors won't be able to access them through us, either. selina: we just heard zuckerberg touting the privacy concerns on whatsapp. all that mps investors at -- of these investors at all? david: probably not. it seems to be a sort of backhanded criticism of apple for allowing the chinese government access to apple products in china, and he is sort of presenting himself as holier than now. the real problems with whatsapp, in my opinion car -- my opinion, or its used as a broadcast tool for propaganda in places like brazil, india, etc.. though far, we haven't heard

much about what is really the number one issue surrounding facebook, which is how it is being used to undermine democratic society around the world. we are in the middle of a on-part documentary on pbs -- that was in i remitted an attack on this company and they are acting like none of this is even happening. selina: i'm just looking at our blog, the ceo saying they will get more user growth from parts of the world from where facebook makes less money. that doesn't seem to bode well. alistair: the earnings that came out in the third quarter kind of blew them away because they still managed to get a lot of rose in the u.s. and canada. that's another be concerned on the product side, how it's going to monetize, and on the growth site, you have countries where the people are not quite as wealthy and the advertising market or less lucrative.

so those are big question marks going forward. selina: we will stick with facebook learning -- earnings later in the hour. david, we will see a bit later. jeff bezos has set off a new wealth record, but not the kind he is used to. he saw his personal fortune fall by $19 billion of the past two trading days alone. that's the most ever in such a period, according to the bloomberg index. is sarah. amazon did issue disappointing revenue and profit forecast but some analysts are saying investors are missing the point about the growth story here. are they overreacting? >> i think a lot of investors would say as were seeing growth roll over, many investors probably are overreacting.

it is not just amazon. yes, the numbers are astounding, down about 25% and it's lost a quarter of its market value, so that is very notable, but it's not just amazon, we've seen all the others lower as well. growth has started to take a step back. a lot of investors are saying that people need to come to their senses and realize that the likes of amazon did miss on revenue and maybe gave a disappointing forecast for the holiday season, but things are not much worse than that were and the fundamentals mostly are still in place. if you really believe in these companies going forward, what so much has changed on that level? selina: facebook shares have been all over the place in the last hour, now flat. what is going on here? >> investors are trying to figure out what is going on your. immediately after the earnings release, it seemed like facebook

with take a leg higher, then all of a sudden it distract lower. it seems like investors are fickle and jittery and they don't a what they want. even if you look at the market as a whole, look at the s&p 500, it finished up more than 1.5%, five intraday swings of at least 1%. that just shows you that investors don't have a consensus of where the market should be should bere the stoxx going right now. they are trying to figure it out but you are facing a headwind of telling pressure that we've seen over the last month and you don't know if you want to catch the falling knife and get in at the brought index level or at a single stock level as well. even company that reported seller earnings are not changing sentiment. what is it going to take to be a true catalyst here? sara: i've been asking this

question to every investor every day. what is next catalyst and what is the leg higher? the economic that is great, but a lot of people say, is this the best that it gets? the same with earnings. if we get something on the trade front, maybe it will help us higher, but many are not expecting it to happen at least until after the midterm elections. at the same time, with president trump coming out yesterday and saying they are ready to tax the rest of the imports from china, it looks like it will probably get worse before it gets better. in the meantime, were sitting here with markets languishing. investors are trying to figure out what the next catalyst is higher and if they want to be positioned in this market that has been so downtrodden in october, if there really is that serial catalyst that is so clear and at the forefront. selina: sara, thank you for joining us. of anerg has learned

cloud unit, the chips are increasingly being used in data centers and in more than half of its servers. it had been an exclusive for intel. coming up, t-mobile is taken on its rivals with promises of 5g through a potential merger with sprint. what would that mean for the prepaid market? and ceo mark zuckerberg was on the facebook tall -- call talking about the year ahead. int heavily investing hardware for bringing people together like portals and oculus. with no wiresty attached. with all this ahead, i expect 2019 to be another year of significant investment. ♪

selina: sony has upgraded its earnings outlook for second straight quarter as its business continues to thrive. the tokyo-based company said trillion,ll be ¥8.7 compared to the previous outlook. being fueled by videogame success during the year of uncertainty for smartphones. >> the smart phone market is very competitive and a product field is not as strong as it should be. our new management team is working on rebuilding our brand through cost-cutting, mirroring of scope, structural reform, and improving a product competitiveness. t-mobile reported third-quarter earnings tuesday, delivering what the ceo called its best financials ever. the phone carrier rally after adding that millions of monfils the -- subscribers and they

posted revenue beating analyst expectations of $10.75 billion. still distant from its rival at&t. it awaits federal approval for its $26.5 billion acquisition of sprint. here to discuss is the t-mobile president from bellevue, washington. congratulation on the positive earnings. what is driving the subscriber growth? >> it's great to be here. i can only assume you're wearing magenta to celebrate t-mobile's record quarter. the brand is really performing. our network is second to none. our customer service is delivering fame and no variety to our company. our team is firing on all cylinders and you see it in 47%y's record revenues and year-over-year growth in cash flows. it's all on the strength of subscriber gains that are post

gains,one subscriber more than at&t, verizon, sprint, comcast and charter combined. so that was a big quarter and we are excited about it. last year t-mobile jumped into the online tv space. tell us what the timing will be like. we are busily building tv for the 5g era, and that's important. with the new t-mobile, we will have an ability to bring broadband service to 52% of u.s. zip codes through 5g. that's amazing because broadband is the most uncompetitive market out there. have a broadband customers out there have no choice at all. they have one or less options. that is crazy in 2018. so we are going after in the new t-mobile. in order to do that, we need a tv service that freeze customers any wires for ever and from

cable box and allows them to experience high definition in a met met their phone, social media life, and has it all integrated in a contemporary package. we are busy building that, the journey starts later this year and will continue over the next couple of years as we build more and more. selina: could we see an offering to customers by early next year? mike: it's already out there under its former brand, layer three tv. you'll see it re-crafted later this year and then on into next year you'll see it transformed into a mobile capability with a different take on the market than we have seen before. we are not interested in just replicating what everybody else has done in this space. selina: t-mobile announced that 5g would be rolling out to dozens of cities. when will we see the first phone supported by 5g at t-mobile? mike: around the middle of next year is when that will be supported for all the carriers.

everyone will get them around the same time, and later in the year you will see it supporting a particular strategy that is completely different than anything at&t or verizon are doing. our 600 megahertz low band spectrum will be supported in phones 5g. the other guys are doing 5g in certain parts of certain cities. our view is that 5g is so transformational, it ought to be for literally everyone nationwide. only t-mobile is pursuing a strategy of true nationwide live g and we will be national by 2020. so it is coming faster than most people think. selina: what's the latest on this proposed regulatory review for the merger with sprint? there were reports that the new york attorney general's office and itping up its probe could lead to price hikes on the cheaper, prepaid phones. mike: our view is it is going really well. we expected both the federal and

state governments to take a close look at this, and they need to. the closer they look at it, the better it is for us. we have submitted tweet 5 million pages of documents and 1000 pages of econometrics. the synergies are so profound that they will allow us to create an unprecedented network with capacity on a level americans have never seen before, and prices and competition are a function of capacity. or capacity means lower prices. the more the state or federal government dig into the details, the better it is for our case, so were gratified that they're taking a close, fact-based look and we are respectfully participating in the process. a little want to dig deeper into what you just said. how will mobile prices not go up if the number of carriers shrinks to three? walk us through how that works. mike: in a typical situation

when you see mergers in an industry, what drives up prices is the elimination of capacity in the industry. meansating a competitor eliminating all their factors of production. this merger is the exact opposite. the two combined companies will have a capacity that is eight times higher than the combination of standalone sprint and t-mobile. it's an explosion of network capacity. that gives us every economic incentive to use that capacity to bring more competition and lower prices, to take customers from at&t and verizon. every american will benefit here. customers at at&t and verizon will benefit because with what we are bringing, they will have to respond. mike, thanks for joining us. questions from analysts have begun on the facebook call with mark zuckerberg saying our journey into the oh -- into

video, happy is the you watching and half display social interaction. they are letting video role again, with shares getting whiplash after-hours. we will stay on the headlines. this is bloomberg. ♪

selina: back to our top story, ace book third-quarter earnings results reporting revenue roughly in line with expectations. ceo sheryl sandberg is answering questions right now on the earnings call, saying instagram shopping is seeing nice growth. mark zuckerberg discussed investment opportunities and how the company will need to look at cost. still with us, our guest host of the hour, david kirkpatrick. i want to start with some things that were mentioned on the call. it sounds like investments will continue to increase. what did we learn about how successful their massive investments have been in terms of fake news and news

manipulation? you have to remember that going into the quarter, the expectations were very low. we seen stock reaction over the last two months, the volatility you saw, the worries about how much growth is going to slow and expenses will grow, and if you look at the guidance they gave, it was a little better than expected. that's why you saw that the glass happening, but facebook is going through a transition. stories,ning to live and video in terms of pricing and things like that. the transition is what will cause the expense and growth uncertainty in 2019. so that will be an uncertain year. selina: let's listen to what zuckerberg said about the expense issue. >> i want you to know that

looking out beyond 2019, i know that we need to make sure our cost and revenue are better matched over time. that's something i'm focused on as well. david, it seems like facebook will be forever caught between wall street and society. has it shown that it can probably grow -- properly grow revenues while dealing with real news and the discussion of democracy in society? has nott absolutely shown that. there is no evidence they are directly addressing that. i don't even know what it means that are revenue profits -- revenue and expenses ought to be more matched going forward. that is a weirdly opaque sort of formulation. i think we're just beginning to see outsiders, all the different ways that facebook can undermine social dialogue. facebook itself doesn't seem to be discovering any of these things on its own and telling us about it. they are extremely reactive.

there making progress, spending a lot of money, but i think were just at the beginning of an incredibly painful, long journey of trying to remediate the problems this service is bringing on society, even as they are raking in the dough. more power to them on the money side, but they had better solve these social problems or they are in big social trouble. selina: what is the biggest test for facebook next? is it the next earnings call, or the upcoming midterm election? david: there are elections all over the world. factor inas a major brazil. his son was kicked out because of abuse of whatsapp. it's a new force globally. americans tend to focus too much on the u.s. election, although it is hugely important. increasingly it looks like

facebook manipulation by the russians may have been the thing that put trump over the top. there are innumerable issues. we have to see what happens next week. we have to keep our out globally. i wish facebook could do it for us because it is their service. they did this to us, and they are not remediating. i know i sound harsh, but i feel harsh. selina: david kirkpatrick, inc. you for your candid thoughts, as always. -- thank you for your candid thoughts. that does it for this edition of "bloomberg technology." this is bloomberg. ♪

haidi: welcome to "daybreak: asia." i'm haidi stroud-watts in melbourne. shery: shery ahn in new york. sophie: and i'm sophie kamaruddin in hong kong. recounting down to asia's major market opens. ♪ shery: here are the top stories recovering in the next hour. tumultuous day, all major averages rose more than 1% and the dollar strengthened. the s&p 500 twice erase