Companies continue to rally is formed to from apple to facebook, we have the biggest highlights. To our lead. Facebook, google, and twitter go to washington. Executives of all three firms discuss how their platforms were manipulated. Facebook, google, and twitter told congress they were not sure forgetting the full extent of this. They dont yet have the technology to prevent this from happening again. With the cofounder of course to get his reaction. Think it would separate into two things. It would have responsibility once they understood the problem and issue to discover the scope of it, then a trust it. Sayink it would be great to they bear responsibility for missing it. This stuff has come to light after the election. It wasnt anything i think anyone new happened in previous elections. Everyone has been seemingly surprised by it. The not a matter of doing work of how deep and brought it was, then attacking it as quickly as possible. What changes in twitter are necessary . Theyve made abroad and aggressive statement statement of where they need more transparency political asset purchases. Steps. At those great i said when i was ceo, we will be a lot more aggressive. Some people say the ads arent in real problem. A number of people pretending to be somebody else. Twitter thought said yesterday, the hearing is 5 of the council do you agree with that . Think its more. Two things i would say that this. Us a numbere giving and housey dutch hearings, and that they believe its the correct look. The thingy you have to remember is that sometimes their researchers who, and say im about the data. During going off these feeds. For this, i mean theyre looking at tweets. This is before twitter delivers them. Is there an idea that they are ungovernable . No. All sorts of machine tohniques and of algorithms do the things that you should be , likea better job of making sure that this information is being delivered on this platform. Not to make sure that its foreign propaganda and fake news, to use the term of the day. Proceedings these fraudulent. He used the word fraudulent. He said its completely ridiculous to blame these companies, social networks, spreading misinformation and there is a broad picture of yield, what actually is. What do you think . I will try to take a more nuanced approach to the answer. On the one hand, you could say that people lie on tv all the time. You can point to News Networks and say that was not even remotely true. Its not facebook, twitter, googles problem. Its everybodys problem. More, we all have to take responsibility to prevent this from happening again. As the leaders in the Technology Field that are delivering a lot of this information, algorithms that we think are best suited to deliver them the right information, we need to have responsibility for addressing this. I do think i watched some of the hearings yesterday morning and was proud of twitters counsel, who was there, one of the more ethical people you could ever meet. Beenthink it would have better if those were more about problem solving, and less about political theater. You get the statements that come with questions in the form of accusations, asking to design the person asking the question with good or stupid. Choose one. Ould like to see him choose one. I would like to see them be more about, lets Work Together to find solutions, and problem solve, instead of blaming people to get on the evening news. Emily is twitter a media company, and what is its responsibility . It certainly is in the media business. There is a sense in Silicon Valley that these companies are platforms, and only responsible for distributing information, and not making editorial decisions. I think jack is acknowledge this. These companies, all of them, youtube, twitter, a spoke make editorial decisions all the time. This does not meet our standard for nudity or pornography or whatever, so he can stay. This one does not need it, so it has to go. These Companies Need to admit, we make editorial decisions all the time, and we need to live without and understand that being in the media business, even if we are tech company, means we are going to have to take more responsibility. Emily what are some solutions as you see them . You know how hard this is. Lets be clear. The ads are not coming from uncle vladimir wanting to pay for cornhusker moms for trump. It is not that simple. I think you should only take lyrical ads from organization you should only take political ads from organizations where the election is taking place. And things like that, that do not let the election fall outside the bounds of that region in which the election is taking place. That seems like a simple and obvious one. The problem with legislation around things like transparency are that the organizations are not going to name themselves, but the former soviet republic of so and so. They will name the cells that sounds like the iowa or california grassroots Republican Organization or democratic organization. It has to be more about the organizations themselves a registered on filing their forms in the countries or regions where the elections are taking place. Emily you have been vocal about harassment on these platforms. Twitter has said they will change the way they approach harassment. It will be more transparent. In the wake of rose mcgowan getting suspended as she was talking about being sexually assaulted. Do you think it is too little too late for twitter, or can twitter get this problem under control . It is a problem they should address. They should be more of be more aggressive in addressing it. I do not think it is too little too late. It is one of the most vital and important platforms in the world. It is literally the way to get information or your opinion about something out in a moment. It will be that way for years to come. Get more aggressive now. Emily is it a matter of being more the word that is being used is transparent, what would also be helpful is for these organizations to provide contacts for why a certain decision was made. It is one thing to say, we made this decision because of this specific tweet. But then people might draw the wrong conclusions. It would be helpful, i get how hard this is, but it would be hopeful to say we made this decision about this content for these kinds of reasons. That might not solve all your problems or answer everybodys questions, but it will give people a better understanding of what is going on behind the scenes, and why some issues are as challenging as they are. Dick c former twitter ceo. Up, apple reports burning revoked, dutch earnings revoked. Earnings revoked. Details ahead. Facebook and twitter will speak in front of congress this week. Hear from congress and Chris Stewart of utah. This is bloomberg. Shares of apple have soared more than 40 this year. Due to in part anticipation of the most imported from the product in years the company in years the iphone x. Its crucial for investors, apple. Demand for the iphone x is going up. Updates on the iphone it in china. We have reactions to those results. I think it is certainly a old move to sell a device for 1000. Approved that demand remains strong. We have been looking at this, longer than any phone. Suggest some supply issues. I did ask tim cook about this when i spoke to him on the phone moments ago. He did not seem worried about it. He said this is the most advanced iphone ever. He is happy with how the ramp is going. They will make reductions in wait time today or tomorrow. We can expect the wait time to go down. Julie that is the case. No organization builds capacity to hit the demand. They have a producing these devices for a while. Apple always meets or beats expectations. They may be setting expectations of four to six weeks, but i would not be surprised if consumers get them in the mail before that. Emily knowing that this is the quarter coming up, with people waiting in lines for the phones julie it is exciting for apple. The iphone x represents 70 of the revenue. At what point are they going to break out devices, and that there is a keen eye on their services businesses. Charlie emily it grew 34 year over year. My question is, how long can they keep up that kind of growth . Julie it is also hard to get a bigger growth number. There is only going to be more momentum in this market. There is only more incentive for me to find out Services Like apple music that can work across all of the devices. Emily this talk about china. Apple return to growth in china. There were Big Questions of people would want to pay up for a phone this expensive when you have alternatives that are half the price or less. I asked tim cook about china, he said the mac was strong. Their services hit an alltime high in china. In addition to the iphone, the other businesses are doing well. He suspects china will love the iphone x. Julie he has more data than we do. He will talk more about that. This is like going back to the early generations when people camped out outside the stores. You may see a lot of demand for the product. We may see a slowdown and how frequently they refresh that. Do we replenish our laptops every two years . Are we going to see people get closer to a 30 month cycle rather than a 24 month cycle to justify the cost on a month by month basis. Emily tim cook is pleased with the sales so far, but are you concerned about the iphone x cannibalizing their other sales . Julie they are very good at adjusting prices on the other products. They tend to still do well with those products. Emily as we watch the rollout around the world over the next 24 hours, what we you be watching for . Julie i dont know of there something specific we are watching for. I will be interested in the release numbers, what the preorders are, how much demand there is for the device. The demand seems to be strong in san francisco. Tesla still hasnt figured out how to overcome production problems that threaten its liability. The company wont make 5000 units per week of its cheapest car until march, three months later than planned. They also reported a record quarter loss and cash burn. Coming up, the senate and house grilled over possible russian interference in the u. S. Election. We will hear from one of the representatives next. Plus, how exactly does a Russian Group bu political ads ony facebook . We will explain stepbystep. This is bloomberg. Willie it was another successful launch for spacex. Emily the satellite launched from floridas Kennedy Space center, and will exist replace existing orbit orbiter. It landed successfully back on her for reuse of the future commission. Facebook, twitter, and google appeared for the House Intelligence Committee to enter lawmakers questions about a possible russian interference in the 2016 u. S. Election. I spoke with a republican run is representative from utah, and from if he was satisfied the response of representatives from the big tech firm. Generally, we are satisfied. How the look at russians were so brilliantly able to do this in such a divisive way, and having an enormous challenge in trying to do that. Executives we the have before us were very honest with their answers. It is not going to be easy. Emily do you buy the response that it is technically difficult to tell users that they were served russian ads and russian posts . I dont know if i can answer that with authority. I dont want to disagree with them. I dont want to say they were not being honest. I think the answer is insufficient. If what they are telling us is true, we have to be able to dig deeper. We have to be 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. Emily these companies spent sent their top lawyers but not top executives. Will you be trying to speak to Mark Zuckerberg or jack dorsey . Yes, it may be more publicly interesting to see and talk with them. I dont think we would get a different answer. I understand why they sent their lawyers. Sometimes we were asking very technical questions or very difficult questions. I understand they wanted somebody else to take the heat and be the public face for this, but i dont know that they would have told us anything different. If that is the case there is not much advantage to having Mark Zuckerberg or any of the others. Emily do you think we will see regulation out of this . That is the real question. My question is, they talked about fake news again and again. We are going to identify it, and we will help the consumers understand this is fake news. 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, his idea of fake news is very different than someone elses may be. If you are looking for a regulatory answer to this, that is an enormous challenge. I think at the end of the date you have to trust the American People that they will use some judgment and they will use some of their intellect to determine this. That does not sound right to me. In that spectrum there are facts but most of what we may read or view has some degree of opinion. I dont know how you would try to regulate 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. Emily what about government cooperation . What about legislation . That is another thing to do altogether. There is more we could do to further the cooperation between the government and private entities. In many cases these entities themselves in 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. We have identified as belonging to a russian troll. I would certainly hope they would share that information with each other. The same thing is true between the 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. Emily we have now seen indictments 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 almost one year. We started looking at russian interference and we have tried to stay focused on that. These indictments we saw a few days ago have nothing to do with that. They were financial, apparently that happened years ago. In some cases it was several years before some of these individuals were associated with the Trump Campaign. If they did something wrong or if they were truly laundering money they should be held accountable for that. In the house we are really focusing on was there collusion, how do we stop that from happening in the future. How do we protect our elections a year away from now . Europe is experiencing much of the same thing. How do we assure the American People that foreign entities are not breaking down 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 . I am not sure how to answer that. If we find evidence there was illegal activity then we will pursue that. We will write a report and if necessary we would refer that to the department of justice or in some cases the special counsel. Our primary concern is 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 collusion between the Trump Campaign and russians. We have seen some other activity that is concerning for us. We will continue to pursue that. As quick as possible report that to the American People. They deserve to know. It 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. Just a reminder, bloomberg lp is developing a local news Network Global news network with twitter. Coming up, more reaction on this series of tech hearings in washington this week, exploring the world social media played in the u. S. Election. Couldre the next steps, regulation really work . And a reminder. All episodes of bloomberg or Live Streaming on Bloomberg Technology are Live Streaming on twitter. This is bloomberg. Emily welcome back to best of Bloomberg Technology. I am emily chang. The public finally got a look at some of the infamous elected russianlinked at that. On facebook and twitter as part of the influence of the 2016 president ial election. According to senator mark warner, there should be more to worry about. These ads are just the tip of a large iceberg. The real story is the amount of misinformation, divisive content pushed for free on russianbacked pages. Which was then spread widely on newsfeeds to tens of millions of americans. Me,y selina wang joins along with mark bergen and kiefer boy. Talk about the events in washington. We began discussing why the ceos for these companies did not attend. I used to work in the senate. If they wanted the ceos, they wouldve scheduled it when he was in china. This was a done deal. Angus king was just speaking for himself. He probably violated an agreement. This happens all the time of Public Company ceos. They find a convenient date the schedule the hearings. This was totally fraudulent. Emily they could still be asking for these folks to becoming the capitol hill. I guess googles defense, ken walker, could speak to him issues more clearly more than larry. Much more involved in the daytoday in these legal and Security Issues they talk about. Jack dorsey was just that he square event. He is definitely not going to be in d. C. He is running two companies and only has so much time. Emily another point senator warner made an effort to point out is these investigations are not over. Listen to Something Else from senator warner today. Senator warner do you believe any of your companies have identified the full scope of russian active measures under platform . Yes