Support that. The white house has ruled out talks with north korea over its Nuclear Arsenal after secretary of state Rex Tillerson said washington and pyongyang had opened channels of communication. White house spokeswoman Sarah Sanders said now is not the time to talk. The Supreme Court kicked off its new year with Justice Neil Gorsuch onboard for his first full term. The nine justices are taking up cases, forhprofile which they were shorthanded following the death of antonin scalia. Global news 24 hours a day powered by more than 2700 journalists and analysts in more than 120 countries. I am alisa parenti. This is bloomberg. Bloomberg technology is next. Emily i am emily chang and this is Bloomberg Technology. Coming up, oracle opens up , adding new features to take on amazon in the cloud. We will discuss the potential competitive advantage with the c. E. O. Plus, damage control continues with a new status update pledging more clean up on facebook. The social network is adding over 1000 ad reviewers in the wake of the congressional investigation into russias involvement in the 2016 u. S. Election. And the big vote at uber on what could be the largest private stock sale in history. We will discuss the potential 10 billion deal and the race to keep Travis Kalanick in check. First to our lead, oracle is taking the fight to amazon. Founder Larry Ellison is calling the new Database Service a revolutionary technology that will take the Cloud Computing business to the next level. The company says new features will improve speed, efficiency, and pricing. Oracle, sales tied to the new Cloud Technology rose more than 20 in the last quarter and made up more than 16 of overall revenue. Cory johnson caught up with mark hurd at the oracle openworld event in San Francisco and asked about the announcement. It is called the autonomous database. It is not a highly automated database. It is truly an autonomous database. People spend hours tuning databases, trying to get them to perform and patch them, which has become a more wellknown word over the past few months than ever before. All of this stuff that had to be done technically now is going to be done automatically, autonomously, done by us. There are a whole set of implications out of this. Suffice it to say, it is extremely significant, a lot lower cost, much more secure, much more automated. It is a fantastic set of announcements from our product team. Larry made that last night. Cory what is the technology that allows it to work, not just repairing itself, that itself, but more quickly . It is really all done in machine to machine learning. Without getting into machine learning, when you get into the technology, we tried to stay away from that last night and talk more about what it does. It is basically our computers basically getting smarter and smarter. The more data the computer has, the smarter all of the decisions the computer makes. All of this something as simple as being able to scan your data, to understand potential intrusions, anomalies, i can go all of this in a lot of detail. I know we dont have a lot of time right now. This is basically technology doing the work. Today, computers can recognize faces better than humans can. Cory i want to ask you about m a. Larry ellison said on the Conference Call recently there were not a lot of obvious targets for oracle, which seemed to me to be a different view on what is in the marketplace. You have a robust m a team within oracle. Is that a change with the notion you have acquired what you need to acquire and acquisitions might slow down . I would not expect much of a change in our behavior. We have always been disciplined. Whether you hear from larry or me, you will hear the same story. We look at things that make strategic sense for us. We do not buy things to buy things. They have to make sense strategically. They have to make sense financially for us or we do not do them. And third, it has to be something we can run, that we can optimize when it gets inside the oracle family. We use those filters. I think the only point larry was making, compared to a decade ago where there were lots of potential targets, the market is consolidating. The market is changing. The market is dynamic. I dont think it takes a lot of analysis to say there are less targets than before. We will continue to be discerning. Cory there are proposals coming out of the white house, the notion of repatriation of assets from overseas. I wonder how that might change the plans. Would oracle hire more or acquire more if there was a tax holiday to bring cash back . Lets be clear. We have been running the company in a way to invest into the company regardless of repatriation. For us, we are hiring as we speak. As you look and listen to lots of different changes in our industry, that is not us. We have been investing. Seven or eight years ago, our headcount was about 90,000. It is now about 140,000. Some of that is m a but a lot of that is organic hiring in r d and sales. We would love to repatriate our cash to the u. S. And there is no question we would invest it in the u. S. Cory when i covered your earnings announcement, your competitors were quick to complain to me for some reason of your growth rate. I wonder what you make of your cloud growth rate and how it compares to competitors. Lets talk about our growth rate. I would love it. Thank you for asking the question. Our growth rates are the highest they have been in years. Last quarter, we grew the company in total revenue 7 . That is total revenue of everything. Our cloud revenue was higher. Revenue growth rate higher than any of our competitors. Our bookings last year, we booked over 2 billion in new cloud bookings. This time last year had many people saying i do not think you will get that done. We did and beat it. Our growth rate in q1 in bookings was higher than it was the year before in q1. There are lots of people that say lots of things. I say read the numbers. We are in as good a position. Our applications business is growing. We made the biggest database announcement weve ever made. We are excited around here. Emily that was oracle c. E. O. Mark hurd speaking earlier with cory johnson. Cory johnson joins us from new york along with our guest host for the hour, david kirkpatrick. Cory, do you believe what they say, that this can take on amazon in the cloud . Cory i think it is notable they think of amazon is competition. If you think about what oracle has done in the cloud, they have tried to offer apps. Oracle was databases forever. You think about databases as the ground on which all applications will grow. The company 10 or 15 years ago took that database business and went out one by one and acquired software. Over time, it grew these other vertical businesses on top of the horizontal base of the database. Now everything is going to the cloud. They recognize all databases premiseill be on database but they will build applications on the cloud. They have a lot of success selling applications. What they are announcing this week is a real change in their cloud offerings of database. They recognize there is a much cruder product that has evolved at amazon, and that is a competitive set to have to take on at a price point different from anything they have done before. Emily david, oracle has been playing catchup for some time. Do you believe this is a moment when they can move to the forefront and compete with competitors at the top of the game . David theyre not going to gain the market reputation of aws in the next five years. That does not mean they are not the 50,000 pound gorilla in Enterprise Software that can have enormous impact. I think they are smart to be putting a lot of emphasis on security, which is the obsession of Business Leaders right now. If they can differentiate and say we are more secure than aws and we can respond to threats faster, that is powerful. I think they will end up being a comparably important player, possibly over the very longterm. The reality is aws defines Cloud Computing now and will continue to for the foreseeable future. Emily cory, how would you compare oracle to salesforce . Cory salesforce is doing one thing in Cloud Computing which is crm. Oracle is also doing crm, but oracle is trying to do everything else. They are trying to do Human Resources management software. They are trying to do crm to compete with oracle. The database is the core of all of that. For them to have the most competitive database product in the marketplace is essential for oracle because there are lots of competitors. Microsoft has a product. You have amazons offerings on the database which are surprisingly robust. Think a lot of people were surprised to see them offering rep. Also, hosting oracle databases on amazon web services. For them to get database right creates a position for them to be strong on the enterprise. It serves to make sense of their sun acquisition on the hardware side. The notion these guys can make sense of this whole puzzle amazon put together, oracle is in a sweet spot to do that. Emily cory johnson, editor at large, thank you for the interview. David kirkpatrick, you are with me for the hour. Coming up, tesla sales break records in the third quarter. We break down the numbers plus what it means for future demand of the model 3. Bloomberg technology is Live Streaming on twitter weekdays at 5 00 in new york, 2 00 in San Francisco. This is bloomberg. Emily now an update on teslas vehicle deliveries in the third quarter. They shipped more than 26,000 cars and s. U. V. s, including a Record Number of model s and x sedans. David, what do you make of the latest numbers . David shares in the aftermarket atdes didnt did well first. I think people read the first paragraph of the press release and said great sales for model s and x. The shares shot up. As you read through, you see there are production bottlenecks for the model 3. That is the allimportant car, the cheaper and highvolume car, it makes or breaks tesla Going Forward in terms of cash flow and profitability. I think investors looked at that and said, are we going to have another set of delays from tesla . They tend to miss production targets and scheduling. I think some investors said here we go again, and the shares are now down significantly from where they were close today. Emily elon musk has set ambitious goals. I believe it was to be producing 20,000 cars per month by the end of the year. Does that seem plausible . David this is early production. Elon has said they would really get into the bigger production numbers in the Fourth Quarter. The fact that they are having some bottlenecks now is not surprising for the third quarter. The Fourth Quarter will probably give a better idea of where they are getting the plant up and going. Investors see this as a company that has never done mass production before. The model s and model x have had good numbers but are still relatively small volumes. I think they are taking a cautious approach and thinking maybe we will not see a big boost to earnings and cash flow in the Fourth Quarter. It might take longer. Until they see things smooth out, maybe they are being cautious. The shares are not tanking. They are just taking a hit after hours. It does tell investors this is a learning experience for tesla to get the model 3 going. Emily what are we seeing in terms of demand for the model 3 and how that is impacting demand for the model s and model x . That was a big question going to this. Would people who could afford a lot more tesla just get a car allre when the s and x were that was on the market, and get the model 3 now . That does not seem to be the case. You can reserve a model 3. Production has started. There is a lot of hype over it. If you have been waiting for your model 3, there is some inkling you could get it in the next year. The model s and model x did well. People are still buying them even though they have a chance to get in line for the model 3. I think that helped the shares early on. Model 3 is make or break. That is the big car everyone is waiting on. There could be a wait. Emily david welch from detroit, thank you for the update. Coming up, facebook is making a push to revamp ad buying. What the social media giant turned over to lawmakers, next. This is bloomberg. Emily facebook is planning to overhaul its political ad rules in the wake of the congressional investigation into russias involvement in the 2016 u. S. Election. The Company Plans to hire an additional 1000 employees to review ads that run on the site as facebook also says it now has handed over information to congressional investigators regarding the 3000 ads relevant to the probe. Joining me to discuss, Alistair Barr and david kirkpatrick. Alastair, we got news about what facebook handed over to congress. We also got a statement trump adam schiff, who said a statement from adam schiff, he said the American People deserve to see the way the Russian Intelligence Service manipulated and took advantage of Online Platforms to stoke and amplify political tensions. This is from representative adam schiff on the house intelligence committee. What did we learn today . Alastair we got details on what the ads looked like. There were three examples that came out. One was a gun rights group. Another was an lgbt group. Another was for dog lovers that people are scratching their heads about. They think it is maybe to plant the seed to place political commentary later. Emily what is next when it comes to testifying before congress . What else . Alastair the interesting thing adam schiff said today is they are looking at how these ads were targeted. You can target very specifically on facebook. They are going to look at how these russian ads were targeted. This is a democrat speaking so you have to be careful. He said if there are any similarities between the way the Trump Campaign targeted their political ads, that will raise some eyebrows. Emily interesting statement from zuckerberg over the weekend. He posted on saturday on yom kippur, the jewish day of atonement. He said for those i hurt this year, i ask forgiveness and will tried to be better. I will work to do better. David, you know zuckerberg well. What do you make of that statement . David it is kind of extraordinary. I think in the notes i sent you earlier, i was saying he is capable of admitting when he is wrong. That is the cool thing about it. He is not the kind of guy that can never admit error. What is interesting when i see it now is the idea he is more or less equating himself with facebook. That is sort of strange, isnt it, for a company that has 2 billion customers and one of the most Profitable Companies that has ever existed, etc. It is a weird moment we are in. Certainly, no company would want to have been pulled as far into this election controversy as facebook now has been. I absolutely believe him that he wants to do the right thing. I think it is an enormous number right things he has before him to do and he does not even know how to do all of them. Emily alistair, is 1000 people enough . Is it possible . Alastair the key to the advertising programs is they are easy to use and automated. One of the jobs these 1000 people are going to do is check advertisers. You will have to authenticate yourself more than you had to in the past. I think there are 2 million advertisers on facebook. I imagine those 1000 people will only look at ads triggered by some sort of Software Algorithm as to this one looks mysterious, we better have a human look at that. They would need hundreds of thousands of people if they were going to have humans look at all of these. It will be a mixture of the two. Emily we saw this morning again the problem of fake news. We saw stories incorrectly identify the shooter in las vegas across the internet. David, is it possible to get a handle on all of this . David i dont think anybody really knows. I think the problem is not just facebook, but in google and amazon, we have these new colossi that have disproportionate weight in society really from any other commercial enterprise in terms of communications and the way we live. I dont know whether we have factored in how to manage them or if the leaders of these companies have done that. I think it is a strange moment, like i said before. And we dont really know what to do next. Emily it is interesting. There is a great story in the New York Times how fake news helped to start a rally in a small town in the united states, a political rally. Obviously there are elections going on around the world of all kinds. Can facebook stay on top of federal, state, and local elections around the world . Alastair i think this is a broader theme with all these big u. S. Internet companies. They were built on software and automation. They are realizing now they are going to have to use a lot more people. I think the real challenge is going to come with whether the software they develop will be able to handle this type of thing with fewer humans or will they have to hire thousands of people . If they do, they will not make near as much money as they used to. Emily david, how do you think this plays out . David i agree with alastair that doing the right thing will cut into profitability of facebook and google as these issues move forward. I will say i am confident zuckerberg and facebook will continue taking extremely aggressive moves on the social behalf of all of us trying to do the right thing. They really want to be good contributors to social concord. They are in a very difficult position. I think you will see Congress Come down on them hard. You will probably see some laws come into play that will apply to them specifically, which they do not want but will have to accept. That will happen in the e. U. And elsewhere as well. It is a whole new era for the relationship between regulators and these companies. Em