Companies continue to rally is from apple to facebook, we have the biggest highlights. First to our lead. Facebook, twitter, and google go to washington. Executives of all three firms discuss how their platforms were manipulated. Facebook, google, and twitter told congress they were not sure they have measured the full extent of russias manipulation of them. They dont yet have the technology to prevent this from happening again. I caught up with former twitter ceo and the cofounder of chorus to get his reaction. I think it would separate into two things. It would have responsibility once they understood the problem and issue to discover the scope of it and then go address it. I think they are doing that. I think it would be great to say they bear responsibility for missing it. This is stuff that has come to light after the election. It wasnt anything i think anyone new had happened in previous elections so we did not know about it this time. Everyone has been seemingly surprised by it. It is now a matter of doing the detective work to determine how deep and brought it was, then attacking it as quickly as possible. Emily what changes in twitter are necessary . What changes should twitter do . Jack has made a pretty broad and abrupt statement of where they need more transparency political asset purchases. We will at those great steps. I said when i was ceo, we will be a lot more aggressive. Emily the ads are one thing but some people say they are not the real problem, it is the number of fake accounts, the number of people pretending to be somebody else. Twitter said yesterday in the hearings that they think 5 on the platform are involved emily do you agree with that . Some people think it is a lot more. Two things i would say that this. I trust the folks within the company if they are giving a number publicly and particularly in front of center and senate and house hearings. I suspect they believe that is the correct number. The thing you have to remember is that sometimes there are researchers that come out and say, it was higher than that and here is our data. They are going off some of these raw api feeds, looking at the tweets coming through these programming interfaces before twitter delivers them to users. Emily is it true to some degree that these networks are to some extent ungovernable . No. I do not think that is true. I think you can apply all sorts of Machine Learning techniques and other kinds of algorithms to do the things that you should be doing and be doing a better job , like better protecting the community and making sure the information that is delivered to the platform to the greatest extent possible is not foreign propaganda and fake news, to use sort of the term of the day. Yesterday these proceedings were called fraudulent. He used the word fraudulent. He said its completely ridiculous to blame these companies, social networks, for basically swaying the election and spreading information when there is a Broad Spectrum of what ms. Information actually is. What do you think . Dick i will try to take a more nuanced approach to the answer. On the one hand, you could say well, people lie on tv all the time. You can point to one or news two networks and say that was not even remotely true. Its not facebook, twitter, googles problem. Its everybodys problem. My position is a little bit more, look 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 to users, using algorithms that we think are best suited to deliver them the right information, we need to bear responsibility for addressing this. I do think i watched some of the hearings yesterday morning of twittersproud counsel, who was there, one of the more ethical people you could ever meet. I do think it would have been better if those hearings were more about problem solving and finding solutions, and less about political theater. You get these longwinded statements that come with questions in the form of an accusation that seem to be designed to make the person answering the question look either complicit or stupid, choose one. I would like to see them be more about, lets Work Together to find solutions, and problem solve, instead of blaming people and trying to get on the evening news. Emily do you think twitter is a Media Company and what is its responsibility to vet what it is published . Dick it certainly is in the media business. You know there is a sense in , Silicon Valley that these companies are platforms, and only responsible for distributing information, and not making editorial decisions. The fact is and i think jack has acknowledged this these companies, all of them, youtube, twitter, facebook make editorial decisions all the time. We are going to suspend this account. This does not meet our standard for nudity or pornography or whatever so it can stay. This one does not meet it so it has to go. These Companies Need to admit, if you will we make editorial , decisions all the time, and we need to live with that and understand that being in the media business, even if we are a Technology Company means we are going to have to take more responsibility for those editorial decisions. Emily what are some solutions as you see them . You know how hard this is. Dick listen, also, 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 do think you should probably only take political ads from organizations that are registered in the country within which the election is taking place. That seems like an easy one. And things like that, that do not let the election fall outside the bounds of that region in which the election is taking place. Or where its influence starts to extend out of bounds of where the election is taking place. That seems like a simple and obvious one. The problem with legislation around just things like transparency are that the organizations are not going to name themselves the former , soviet republic of so and so. They will name themselves something that sounds like, hey, sounds like the iowa or california grassroots Republican Organization or democrat organization. It has to be more about the organizations themselves are registered and filing their forms in the countries or regions where the elections are taking place. Emily you have been vocal about harassment on these platforms. I am curious for your reaction. Twitter has said they will change the way they approach harassment. They will be more transparent. This, in the wake of the me too campaign 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 . Dick i think it is a problem they should address. Jack knows they need to address it, and they should be more aggressive in addressing it. The same is true when i was ceo. 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 dick also, let me just add one thing to that. The word that is 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 just say we , made this decision because of this specific tweet. But then people might draw the wrong conclusions from that. It would be helpful i get how hard this is, you could spend all day doing it but it would be helpful 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. Ostolo. That was dick c bloomberg lp is developing a Global News Network with twitter. Coming up, apple reports are Earnings Results along with new details on demand for its of iphones. Details just ahead. Congress grills lawyers from google, twitter, and facebook. We will hear from congress and Chris Stewart of utah. This is bloomberg. Emily shares of apple have soared more than 40 this year. In part due to anticipation for the most important new product from the company in years the iphone x. For investors. We have reaction to the results. I think it is certainly a old bold move to sell a device for 1000 but it proves that demand remains strong. Emily we have been looking at wait times of a few months, longer than any phone. Cook and heto tim did not seem to bring worried. 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 peak demand. Certainly, they have a producing these devices for a while. The other thing that apple does well is they always meet or beat expectations. They may be setting expectations of four to six weeks, but i would not be surprised if consumers get them in the mail sooner than that. Emily knowing that this is the quarter coming up, with people waiting in line for their phones in sydney. Julie it is exciting for apple. The iphone x represents almost 70 of their revenue. At what point are they going to break out devices, and that there is a keen eye on their services businesses. To what extent that is growing. Emily which by the way, 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 big growth number the bigger base there is but there is only going to be more momentum in this market. If i own a watch and a tablet and a cell phone and a computer there is only more incentive for , me to find out Services Like apple music that can work across all of the devices. This ecosystem of devices begins to play in their favor. China,lets talk about apples 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, we have returned to growth, the mac was strong. Ever. St quarter 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 i think there is no doubt they are doing well. He has more data than we do. He will talk more about that. This is a bit of a halo device. This is like going back to the early generations of iphone one and two when people camped out outside the stores. You may see a lot of demand for the product. You may see a slowdown in 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 sales of the iphone 8 . Julie apple is good at this. This is what they do. There is two new products, but they are very good at adjusting prices on the other markets that are out on the market longer. 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 . There isdo not know if something specific we will be watching for. I will be interested in the release numbers, what the preorders are, how much demand there is for the device. Anecdotally the demand seems to , be strong in san francisco. Emily that was julie oscar with forrester research. Tesla still hasnt figured out how to overcome production problems that threaten its viability. 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 big tech over possible russian interference in the u. S. Election. We will hear from one of the representatives on the House Intelligence Committee, next. Plus, how exactly does a Russian Group buy political ads on a platform like facebook . We will explain stepbystep. This is bloomberg. Emily it was another successful launch for spacex. 16thweek saw the companys rocket launch of the year. It carried a south korean satellite into space. The satellite launched from floridas Kennedy Space center, will replace an existing orbiter. It landed successfully back on her for reuse of the future mission. Facebook, twitter, and google appeared before the House Intelligence Committee to enter answer lawmakers questions about a possible russian interference in the 2016 u. S. Election. I spoke with a representative from utah, and asked if he was satisfied from the response of representatives from the big tech firm. Generally, we are satisfied. They have an enormous challenge ahead of them. When you look at how the russians russians were so brilliantly able to manipulate public opinion, they were able to do it in such a divisive way, and it is an enormous challenge in trying to do that. Again, i think the executives we have before us were very honest in their answers but it is not going to be easy. Emily do you buy the response that it is too technically difficult to tell users that they were served russian ads and russian posts . I do not know that i can answer that with real authority. I dont want to disagree with them. Do not want to say they were not being honest and forthright with the committee. 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, but it is not sufficient for what we need in our future elections and futures policies. Sent these companies their top lawyers but not their 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 do not think we would get any different answers. I understand why they sent their lawyers. Sometimes we were asking very technical questions. In some cases we were asking them 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 actually see regulation out of this . I dont know. That is the real question, isnt it . 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 them, what in the world does that 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 might be. If you are looking for a regulatory answer to this, that is an enormous challenge. I think at the end of the day you have to trust the american , people that they will use some judgment, that they will use a little bit of their own intellect to determine that does , not sound right to me. By the way, 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 enormously complicated and the potential for that to turn into a political bomb or a Political Tool is very troubling to me. Emily what about legislation or government cooperation . That is another thing to do altogether. There are things that we can do and should do to further cooperation not just between the government and private entities, but in many cases these private entities themselves. Their own terms will not allow them to share information with each other. I wish they would break down that barrier and be more open. This customer or this account, 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 barriers 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 counsels russia probe. 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 a year. We started looking at russian interference with the election and we have tried to stay , focused on that. These indictments we saw a few days ago really have nothing to do with russian interference. They were financial, apparently and anomalies that happened years ago. In some cases it was several years ago. 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 . We are a year away from midterm elections. Europe is experiencing much of the same thing. How do we assure the American People that foreign entities are not continually breaking down that foundation interest and democracy and trust in our own elections. Emily what do you need to see from the investigation in terms of evidence to act legally . I am not sure how to answer that. If we find evidence that indicates 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 objective is to report to the American People. We are not a Law Enforcement agency. We do not really have the tools and we are not tasked with enforcing the law. Our job is to discover what happened and tell the American People. Some people are frustrat