us.guest to stays with coming up, newsfeed outcome of videoin. -- newsfeed out, in. zuckerberg said opportunity will be better. they are buying those stories for now. tune into bloomberg radio, live on your mobile device. this is bloomberg -- tune into your mobile device. this is bloomberg. ♪ >> barclays u.k. have a great quarter. >> this is a historic moment .verybody wants to be a part of manus: let's show you what is coming through. tragic data from china, ugly. don't get carried away. on thethe worst routs s&p 500. the shanghai composite up. are the authorities going to do more to assist? stopping the rot. three-month to one-year bills. how is your dollar looking? nejra: i am looking at the rupee. getting hit today. investors see that widening out. worst performing currency against the dollar in this russian. treasuries, 10 year yield up a bit. butight see brent higher heading for a monthly loss, the biggest since 2016. let's get the number business flash with their from owl in hong kong. charter says they are benefiting from growth in asia and bringing costs und

what about some of the lackluster engagement with their core product which is now the newsfeed? richard: i would echo sarah's comment. instagram is a huge business, huge. i look at instagram and go "this is the modern day cure for boredom." mark gurman used to talk about tv was the cure for boredom. the cure for boredom in 2018 is instagram. people use it anywhere they go to kill a moment in time. this is the dominant cure for boredom for people all around the world. it is going to grow from one billion to 2 billion users. time spent is growing and it is the mall where everybody finds goods and services that they are interested in. products, you the can make a reasonable argument that over the next five years, maybe seven years, that instagram will be a bigger business in court facebook. maybe-- core facebook. maybe they get facebook stories to work, but i believe the growth potential of instagram over the next five to seven years, as they get things like stories, monetization, to kick in -- they already have the users, they just have to get the monetary should -- monetization t

adam mosseri going to be reporting to chris coxe who he reported to when he was running facebook's newsfeed, mosseri was the head of facebook's newsfeed, so that is going to be a comfortable relationship for him. shery: instagram is pretty popular with teens and young people. how important a business is this for facebook? this is incredibly important to because it is very fast-growing. facebook expects sales growth to slow and expects to have to spend more money to grow new products in the future. r, andis messaging, ai, v instagram is very similar business to facebook and that it is advertisement driven. facebook will depend on instagram for substantial revenue growth. shery: given new leadership at instagram, do we have a sense of what sort of vision they have for the next couple of years? sara:h thin it is going to be a while before they make drastic changes. -- i think it is going to be a while before they make drastic changes. i think it is a sign that they make sure that they do not kill the golden goose. they do not do anything to instagram that would ruin instagram. subtlewill see m

he has led the social networks newsfeed team for many years.e was helming the product side and now he takes the helm itself. long-term executive at facebook. he has been there for about a decade and spent most of the time working on the newsfeed team which is important to facebook. earlier this year, he took the head of product job at instagram and is now running the whole thing. what a thought was interesting is this photo they put out, which had him in the middle of the two instagram founders. this is them trying to establish a smooth transition. despite what we know about the tension between instagram and zuckerberg that led to the founders'departure. >> tesla turns it around. the automaker is surging up 16% after reaching an agreement with the sec. ceo elon musk must resign as chairman while he and his company pay $40 million in fees. >> this could be the perfect scenario. you keep your, so you have the power of his brand name but you sitting onomebody his shoulders to make sure he doesn't do crazy things like tweet out deals and stuff. on

he has led the social networks newsfeed team for many years.e was helming the product side and now he takes the helm itself. >> adam mosseri is a long-term executive at facebook. he has been there for about a decade and spent most of the time working on the newsfeed team which is important to facebook. earlier this year, he took the head of product job at instagram and is now running the whole thing. what i thought was interesting is this photo they put out, which had him in the middle of the two instagram founders. this is them trying to establish a smooth transition. despite what we know about the tension between instagram and zuckerberg that led to the founders' departure. >> tesla turns it around. the automaker is surging up 16% after reaching an agreement with the sec. ceo elon musk must resign as chairman for three years while he and his company pay $40 million in fees. >> this could be the perfect scenario. you still keep elon, so you have the power of the brand name, his creativity, but you might get somebody sitting on his shoulders to

. >> can run a newsfeed or a of people are lot curious. we will have big lineups.t will happen is they will buy the product and talk to friends about it and the next thing that will happen, that will go on for about nine months and then we will get to make more advanced products and then come back as maybe there will be beverages. , it will bean make the next big wave and calm quickly. >> do you see any risks with investors piling onto smaller and what -- when most really slack earnings? >> i think there is massive risk. there will not be consolidation. --ill not be the way it is structured now, distribution will be a problem. if you do not have a standard to meet the expert, i think investors should probably think about buying some of our stock and buying some of these and making a bet on a name i probably do not know either. there are a lot of names and that will be a challenge. we're looking at canada. you guys are the country that brought the world blackberries. you lost a global player. the question is, if the lead -- if the u.s. legalizes marijuana, what happ

you're not going to find it inin your newsfeed and you are not going to find it on cable unfortunatelyy jobs hass been on 15 years, never wants to hear the words republican, democrat, isis, riot. you might hear her again if we are down doing a cleanup or something but nobody talks about any of that stuff in real life and i'm returning the favor.bo it's the same thing. that's my baby picture, that's so weird. we essentially highlight decency the same way we use to highlight work. it was really just an experiment. we wanted to prove beyond a shadow of a doubt that the country still was full of people who woke up and went out to make their community a better place and now my newsfeed, i'm not kidding, it is literally overrun with people saying you've got to meet my brother, my uncle, my cousin, my sister, you've got to meet my neighbor, wait till you see what they do. for what it's worth, we are going to be okay. and if we had social media back in the day, pick your favorite century. if we were reporting on the state of things today the way they existed once upon a time h would see enough

is the king physic your cheese going to make you make you possibly use one make up as it was from newsfeeds then. you. get. over the good. buildings in my. time here. in. what. i mean you but as with a fiasco. what she wasn't. based on about a lot goes over then too i mean ask will soon magazine things are going to ask a soulless that's why all of my own justice was all about asbestos in the sun up into little pondered i'm going to have to tell them orders out of the national guard down to a pilot. music. jimi just. so you. so you. don't do the. things that. we sort of i did even czerny's of his mentor who is in the. mood. to get a lot of. people worked it up your posture now. and . his mom would be. in the future too much quality but people. where some. legal you then think and do would you mean. if. you could just say one single bus stop with me will sink the desk while the affairs we've been we've just. look we'll miss to move so much at least to the minimum is eligible to pick causing this. much my god. it's sick well it's a good thing we've done wouldn't go amiss with the bill but they

advertisements on their page because the user behavior has also changed the heart used to be the newsfeeds off facebook that you see right away when you sign onto their page but this has changed people lately have been using more the story true will similar to instagram or snapchat where stories are shared just with your friends the new street was so attractive for facebook which because they have lots of space for effort mark zuckerberg also made a statement this week saving that they have very little experience how to better monetize the facebook stories facebook had a similar challenge a couple of years ago when users access the network more often with their smartphone device and not anymore with their browser also by that time facebook had to change their response model and you cope there for us in frankfurt thank you daniel now from one tech giant to another apple unveiled a host of new products and gadgets in new york last night after years of going without an update the macbook air got a new design with the retina display also raised its prices for the new products significantly the

look at the 2019 expectations, what it is showing, facebook is going through a transition from a newsfeed where most of its revenue comes from to life stories. it is that shift happening on instagram and other platforms. life stories is not being monetized yet, they are in the process of figuring it out. 2019 story, but if you look at the guidance for expanding it suggests will continue. we are going through uncertainty over here, especially for 2019. shery: what does that tell you, the fact we got an uptake in north american users? how positive is that? --f yo >> even if there is a boost, it will not be sustainable. whatest case scenario is they are trying to do is shift a familyention to audience number, around 2.6 billion monthly active users across platforms. the hope is that instagram, messenger will pick up the slack encore facebook. the expectation was that there will be a decline in north america, so holding that number was a positive, but a good penetration rate, growth needs to come from other avenues in the long-term, and that is where the focus in 2019 will be. shery: in order

videos, and other content on social media that looks a lot like news and gets mixed in with people's newsfeeds. i've heard democrats complain what you're doing is sort of contributing to the polarization of the media landscape and can increase the suspicion of media writ large and play into donald trump and republicans' efforts to cast mainstream media as fake news. what do you think about that? mr. cecil: i wouold say those democrats are wrong, and they probably have my email address or phone number and am happy to explain to them why we should not cede important ground. we are not creating fake news organizations. we are not creating breitbart. we are not engaging in religious intolerance. we are not playing on people's fears around race or religion. we are not trying to divide the country along lines that the republican party and conservatives have. what we are trying to do is communicate with people in the best way possible. frankly, for young people, they do not want to see the same 15-second b roll advertisement. we have all seen them, of the candidate looking very studious with a hardha

rishaad: mark zuckerberg saying he is betting the future on video, not the famous newsfeed. 2019 willed be another year where they will spend more money, third-quarter revenues, profits ahead of projections. next year will be, you could argue, a fellow. time for the company. been talkingve about how they are switching to hire spending. one reason we saw this, zuckerberg mentioned things might actually change. new projects, new investments they are looking at every let's take a listen to what he had to say. investing invily ar and vr, as well as hardware for bringing people closer together. the all-in-one experience that delivers riffle like quality with no wires. i expect 2019 to be another year of significant investment. arene: he mentioned they going to be shifting some of the activity from videos and stories -- is a concern, about the active users. yvonne: they did show a bit of a pickup which was a positive sign. if you max it out and look at users, itactive started to stall. lots of questions that maybe people aren't spending that much time on the site. there are questions about

we got a 24-hour newsfeed cycle. that is happening all over the world. tremendous angst. the notion of rates rising, potential deceleration. it's got everyone on the edge of their seat. a phenomenon since 2008. we've been worried about the next financial crisis and the world is a lot more resilient. over the going to fall wall of worry and land with a big bump on the other side. the earnings season is here. i've only heard this morning on bloomberg people talking about this being a make or break season. you talk about yields going higher. equities need to compensate for that. are the going to be there to deliver upon that? george: i can't tell you how may times i've heard make or break running seasons wrap my career. there's always drama at that instance. i think what you got now is an instance where we haven't bifurcated market. from a overextended valuation standpoint. there are other elements with a geographically or stylistically that look attractive and you can .uy at tremendous valuations any investor has to be looking at the price paid for entry and you can find yo

are the things the investors aren't liking right now is the idea that zuckerberg is going from the newsfeedmade 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

about on the show, the future of facebook will be more diversified than facebook itself and the newsfeed. it will be dependent on these other properties to bring money in that is more diversified and certainly v.r. is one of the longest-term bets. emily: iribe's departure is certainly not surprising. you have reported on tension between the oculus founders and facebook that goes way back, but him leaving in the context of all of these other founders leaving, david, sarah and i heard kevin speak at the wired conference last week, and he was very diplomatic. he didn't sell mark zuckerberg down the river. but the way these departures have happened does not looking good -- look good. how bad is this for facebook? david: there's no question it does not look good. all these people got a gigantic payday quite some time ago. company thatn a they have to justify to all their friends why they are staying with. that's the reality of working at facebook today. facebook is increasingly perceived as a negative in society among the sort of sophisticated circles that these kind of people circulate in. a

if they clean up the newsfeeds, are they able to charge a premium for what ads they do have their stillis the environment and desire to be on their and -- on there, and grow the platform, how is that panning out? the ability to show topline growth in an environment where we talk about slower global growth. that is at the heart of the selloff. tech is economically sensitive. emily: facebook had another press briefing call this morning. this time, they announced they are removing 82 pages of accounts demonstrating this "inauthentic behavior." they described all of these pages going back to iran and some of them go back as far as june 2016. it feels a little bit incremental but all part is a bigger issue heading into the midterm. how much is this going to impact the market reaction to facebook? tom: they are going out of their way to send a signal to the public, market, and anyone who will listen. we are cleaning up our act. we are reaching out fake accounts and doing the best we can to limit fake news, hate speech, and we are cleaning up our act. that is a message crucial for facebook to

communication fast messaging fast sharing of photos is important, it does not generate revenue like newsfeedsth facebook. that is a problem they are trying to solve. you cannot be a good messaging app and make a lot of money on advertising. we like to see more product innovation. i think originals could help. there was a staff that only 25% of users go to be discovering side of the app on a daily basis. that is a low percentage. emily: a memo was recently released to employees were he talked about how the company has lost focus and wants to get back to its roots. some were making fun of his use of the word cheetah, the codename for this redesign. she did not back away entirely, but said it was not working so consolation prize would be getting a cheetah themed sweatshirt. what do investors think of this memo? >> i spent a lot of time with evan spiegel earlier this year. the memo echoes a lot of the same things he was trying to get across to me then which is that the company sees itself differently than the other social media platforms. they don't see themselves as a social media company rather

mark zuckerberg said he is betting on the future of video and not the newsfeed.tally on the scene with the new formats and 20 will be a year of investment. profit came in well ahead of projections. nomura has posted a rare loss. the net loss to the biggest brokerage was a 11 two point billion yen ending in september, marking the second quarter of red ink. the firm lost money overseas, underscoring the struggle to sustain profitability outside japan. financierpists and michael milken is this week's guest on the david rubenstein show. conversation covers his background, the bond industry, cancer diagnoses and treatment and philanthropy. you can see the full interview on the david rubenstein show at 9:00 p.m. new york time on wednesday. that is short bloomberg business flash. tom: thanks so much. seven yuanked about and the dynamics of china. we have headlines from the politburo of china. say timely steps are needed to counter a slowdown. they say changes are happening in economic conditions. they said they should "pay high attention to economic pressures." the g20

fast messaging, fast sharing of photos is important for them, it does not generate revenue like newsfeeds facebook. that is a problem they are trying to solve. you cannot have it both ways. you cannot be a good messaging app and make a lot of money on the advertising side with a great user side. we like to see more product innovation. i think originals could help. there was a stat that only 25% of users go to like the discover side of the app on a daily basis. that is a pretty low percentage not using these content services. spiegel recently released a very long memo to employees where he talked about how the company has lost focus and has to get back to its roots. some were making fun of his use of the word cheetah, the codename for this redesign. he didn't back away from cheetah entirely, but said it was not working so far, but everyone, as a consolation prize, would be getting a cheetah themed sweatshirt. you know, what do you make of this memo? what do investors think of this memo? >> i spent a lot of time with evan spiegel earlier this year. and the memo echoed a lot of the same thin

recognizing that facebook has got your number through and out rhythm where they know what kind of newsfeed like, so you might think you are cultured and you are intelligent and you are knowledgeable when in fact you are too dependent on one side or the other. host: correct me if i am -- you did one of the last interviews with bill cosby before the trial, is that correct? guest: i did the only pretrial interview with bill cosby. it was in the summer of 2017, which was before the trial where they ended in a hung jury. he never did any other media interviews. he told me he would not be taking the stand in his own defense, which ended up being the case. he also bought into some of the notions that have been articulated by one of his daughters that race and racism were at play in his prosecution. i am not surprised, if you give me 30 seconds to say this, i am not surprised by the outcome of trial number two, which was in my county's courthouse. that is where i go for my jury duty. i have tried cases as a lawyer in that courthouse. i think i know the dynamics fairly well. i was not surprised by

i was looking through my newsfeed, and it seems like the news stories aren't even covering mass shootings anymore because there are things that seem to be more newsworthy because a mass shooting is so normal these days. i find that sad. we can talk about gun control. certainly that plays into what is going on, but we are forgetting how much we should be focusing on mental health, especially as a republican coming from a blue state. .t is important i think people are neglecting to concentrate on mental health and things we can do for people who are sick may not even know they are sick and programs we can offer them. i think it is an important conversation we need to have. >> host: this is from the anti-defamation league. we believe this is the deadliest attack on the jewish community in the history of the united states. we are actively engaged with law enforcement to support their investigation and investigate this as a hate crime. it is simply unconscionable for jews to be targeted for murder on the sabbath morning. looking at 72y hours of hate in america, including the arrest of the susp

whether it is on instagram or facebook, to the same degree in newsfeed? that general answer is no.here are saying the revenue will be slower than it was in past years, and you combine that with the fact that expenses are higher due in large part to investors in privacy and data integrity. that comes together with what the company is calling a transition year in 2019, which you do not typically here in tech stocks. it is pretty rare, so i think people are a little bit concerned about that, but they are getting the benefit of the doubt because expenses came in less than feared. kind of guiding the investment community towards a longer-term strategy story here. that again is what tech companies traditionally do. is that why the company has been given the benefit of the doubt? the market can understand where business is going. paul: i think we got clarity last night on the conference the secondosed to quarter, where it really was a surprise and double whammy of revenue growth and higher expense growth. here, i think people got clarity growth may notse be as bad as initially feared, and

technological fixes that facebook, which has started a commission on this, could prioritize on the newsfeed what people actually read. it's creepy that they don't know what we read, but they allow people to see first what is actually read. that's a modest solution. what we centrally need is really get a my the cooling mechanisms and allowing them to do their jobs. ae senate was conceived as fully equal body to the president, that would make its own independent constitutional judgments, and use its subpoena toer and investigatory power form conclusions. senator ben sass has been talking about this, as has senator cowan spirit there's no reason to delegate the fbi to an investigation, the senate can do it on its own, and the senate and president, before voting on bills, are supposed to make judgments on the constitutionality. it's amazing to read 19th century debates and see clay and webster talking in constitutional terms about whether the missouri compromise or the compromise of 1850 should be passed. coons and senator ing a commission on madisonian values, and host a have a constitutional