Intel gave a fourthquarter outlook that was seen as strong, pushing shares of the company higher. We bring you our conversation with the ceo, bob swan. The first to our top story. Piling ons of critics facebook blaming it for altering the news industry, the social network is trying to make nice. On friday, facebook launched its by and, articles chosen its news tagged tab. There are more than 200 publishers on board. York, mark new zuckerberg outlined another way for news organizations to make money. You can run your own ads and get one is percent of the revenue or use our ad network which we have a lot of and people working to try to build advanced technology for this and there, we give the vast majority ,f the revenue to the publisher but what we have really unlocked is a Business Model where it makes sense for both parties. To discuss in washington, it is daniel coffey, Senior Vice President of News Media Alliance and kurt wagner. Give me your first thoughts. This is like the 10th time that theys book has attempted to make nice with publishers. Efforts over the years to try and make publishers feel like they are getting something in return and not just putting stuff on facebook for free. I think we heard a little bit about the business. I think there are two potential lines of revenue. Think that is better than some of the efforts they have made in the past, but you have to understand a lot of publishers have been burned multiple times before, so everyone looks at this through a skeptical lens. Danielle, from your take being involved in the news media, what are your thoughts . We view this as a step in the right direction and valuing the fueled news that have their ecosystem and allow them to flourish and make a tremendous amount of money, but is this adequate enough to sustain the news industry into the future . No, we dont believe it is. Facebookven think believes it is. It is a step in the right direction. It does not cover all the local communities. A step in the right direction, but if all short. A step in the right direction, but kurt, talk to me. How does this help facebook besides helping its image . Does it help the bottom line . I dont think so, other than keeping publishers having a relationship with the network. You see bloomberg, washington journals, New York Times lead facebook, i could i think that hurts the bottom line. It is certainly a goodwill gesture. And theve in Journalism Mission and as a result, we want to help you out. I dont see a financial benefit and in some ways that is a good thing will stop we should note that bloomberg is a publisher good thing. We should note that bloomberg is a publisher on facebooks news tampa tab. How does this help the image of the company because frankly, they need it. There was no secret and you were just talking about the bottom line as to whether it helps facebook. It helps thedoes, readers consume content. To theirssential current and future Business Model. When they proposed to the terms they did, it was in a way that you would never conduct a normal negotiation. In secret ande publishers cant talk to one another, that is not a unchaining Business Model, so it does serve the bottom line and it serves their ecosystem, but what we are looking for is how us, the back to originators of the content. Theres a lot of National Organizations participating in this. Zuckerberg did talk about how it may impact some of the local coverage hit hardest. Take a listen. Local papers have probably been hit hardest. We are also building a separate. Ag, including local news earlier this year, we announced a 300 million commitment to journalism and helping a number of publishers with a special focus on local news. I dont pretend that any of or we asl be enough one company will be able to solve the issue. Your thoughts on if it goes far enough to help some of the local coverage that has been hit the hardest. It is difficult to determine whether the traffic that comes in is specific, but the monetization that you get from the advertising Business Model is pennies. As far as what we are experiencing, we are not getting adequate return because the traffic that generates the advertising dollars is not enough to sustain the news content that we generate. It does not help the local need to be able to get a sufficient return on cap,and with the new news it did not cover everybody, it covered the markets and while we are happy about that and it is a step in the right direction, is it covering local communities where they need it most . It is not. Both. T wagner, thank you customers that they may lose power and this comes after kevin newsom declared a state of emergency for the counties of sonoma and los angeles because of the kincaid and tick fires. You cannot deal what is there. That is the approach they are taking to protect your data. We hear how they can achieve that. Up next, this is bloomberg. Securing Customer Data online is a hot topic across the globe and one company says it has a unique approach to handling sensitive information. It has a unique approach to handling sensitive information. Very good security lets Companies Access that information without ever needing to hold on to the data themselves. They have a 35 million funding round led by goldman sachs. Ceo. Ore, seo the talk to me about the funding. Congratulations. What are you using the money for . Thank you. We are very excited to partner with goldman. Both marshall and i are very thankful, but really the big idea is to completely , socratize Data Security the funding is going to follow where we will invest in r d and hiring sales, marketing and expanding growth. Goldman sachs bigname backers, why are they interested in you . In the see a shift market. One of the biggest issues we see releaseously you had to data going and an out of data centers and that approach 15 is moreo, it increasingly becoming a liability, so when they see a shift happening, how do you catch up with data in advance and build a solution that can with data allet over the place . Is this purely a data privacy issue. They have talked a lot about Digital Currencies and making a play in that area as well. Excited toery partner with goldman. They are a very respectable excited to partner with goldman. They are a very respectable partner. I cant comment on a specific initiatives, but there are a variety of good reasons why they are interested. You started out this conversation as a classic Silicon Valley company. Talk to me about valuation and if you are cash flow positive in way you can see profitability . We can be profitable if we choose to. But, we do not. We took the funding and wanted to move faster than if we had just been by ourselves and so the idea is that next year or the are after we could be profitable, but what happens if youre able to get to that position today . The reason we took the money is to accelerate two years, three years of our timeline, so we are not too worried about cash flow volatility. We can become a but we want to capture the market today. Ceo of pgs, thank you vgs, thank you. Shares of amazon in the red in order to increase spending for getting packages out in one day. Side, throughout density and other things, will ,mprove over things overtime but for now some startup pain in adding capacity. Talk to me about this. It was the profit decline everyone is worried about, but are you struggling shrugging it off because every time they invest, revenue follows . 1. 8 , wellk is down above the market lows after yesterday where it was down like 7 . This is a move that a lot of investors have seen before and it is a reseller asian of growth. People were worried that amazon retell was slowing yesterday dow it seems like next day delivery has accelerated it. That is nothing to the longterm investors and analysts. As to whether pays off, it looks as to whether pays off, it looks like next a shipping so Many Companies like walmart and target have caught up, so amazon is trying to go further and read aroundcompetitive mode its main business. If one day shipping was so good, why did they come lower on the top line . History frankly on history frankly on this got in because they are always very conservative. I think the top line surprised this quarter and we will see what it does for the holidays. [no audio] some holidays abroad including india, some of that when into the Third Quarter. We will see. I think the pattern for next day shipping does make a difference. My colleague was wonderings for longng wondering for so what is growth for amazon iswdown, so the evidence that next a shipping moves the needle, but we will see. You are also going to be sooner than you think conference. You are out there next week. What are you looking for . We have this conference three times a year. We try to take a different approach. We are talking about solutions to the moment that tech finds itself in. We talk about the antitrust investigation and we have panels on privacy focused design and security. We have [no audio] from google, christian harris, how we can have a more productive relationship with the colleague and your caroline will be cohosting with me where we designed a deepfake video involving her and she is going to get into deepfakes and the impacts they will have on our culture going forward. This is also noticeable because it is in brooklyn and not san jose, San Francisco, not in Silicon Valley. In all your years covering tech, have you started to see this shift over to the east coast . This is more about connor programming. There are plenty of conferences in california. We thought we would experiment with an event on the east coast and we have the ceo of the next nets coming to talk to us and the nba is interested in a relationship. San francisco and Silicon Valley, still the center of the tech universe. If there is a threat, it is an ana and asia and beijing. Tech is growing and i think it is more dispersed across many cities including new york and washington, dispersed across may cities including new york and washington, d. C. Than it has been historically. As long as it is in San Francisco we can keep our jobs and other day will stop that was brad stone, thanks for joining. Up, gains for intel after the company give an update. We hear from the companys ceo. Ext this is bloomberg. Intel give an update for the Fourth Quarter, improve demand that powernductors cloud computing. Allen and shery ahn spoke with bob swan earlier. Take a listen. We outperformed in the quarter and we expect about 200 million of that was pulled from the Fourth Quarter in light of the anxiety about the products, so not a whole lot of it, but some of it, but despite that, we did take up our fourthquarter outlook as well. You said you are reviewing your supply chain in the context of trade disputes. Im wondering if you could share any insights. Are you making any changes . I think for our customer base, china is an enlarged market for us in terms of customers for china consumption, but also for global oems that have more of their assembly and test operations. In light ofsaying the debates around tariffs, we are trying to work with our customers to ensure they can get by product most effectively leveraging our Global Supply chain to diminish the impact that tariffs could have on their supply for global markets, so we have a wonderful supply chain want our customers to be able to deal with the dynamics we are wrestling with. Encouragedwe are that china and the u. S. Are talking because we are a strong and wer in global trade dont find tariffs to be a constructive mechanism for global trade, so we are very encouraged. In the meantime, we will Global Supply chain to mitigate the impact on customers around the world. What are your shipments of huawei looking like . We dont really get into talking about specific customers. They have been an important customer of ours and we continue to see them to be an important customer going forward, but at the same time, we have to adjust and a doubt to the laws in the markets we serve. We will continue to serve them to the extent that we are allowed to. Are you getting the temporary layson licenses . I think the Semi Conductor industry, we have put applications and to get licenses to ship, but we have not heard back yet. Hear sometime soon, but we have not heard back yet. Swan. T was intel ceo bob he spoke to us from the new york stock exchange. At a time when the Management Team is mature and the company has a leading advantage on the market, then we can make the decision whether or not it should go public. , despite the trade tension they still chose to go public in the u. S. Following in the footsteps of [indiscernible] bloomberg caught up with the ceo following the companys debut on the new york stock exchange. Our Parent Company has always been a u. S. Listed company and we really like the markets because they have treated us. Ell us, we think at least we are not doing trade related business and i would expect it to be a very good way to connecting the u. S. And chinese people. One of my last questions, what was your reaction to the opening price about 20 lower . Do you think investors are pricing the right value . I think we operate for the longterm. Getting an ipo is exciting for us and it is a very good way for us to attract that her talent company. More respected we think it is the right move and we are very confident in our plan, so we think this is a new starting point. That was the you dow ceo at the new york stock exchange. Coming up, we recap the biggest stories in tech. Forecast. Isappointing all of that is next. This is bloomberg. Taylor this is bloomberg technology. Im taylor riggs. Now to our weekly roundup of the top stories in tech. This week started with the Quarterly Earnings bonanza. Amazon shares rebounded on friday after the Company Reported its first quarterly drop in profits since early 2017. The Company Reported a miss for next quarters guidance as well. To discuss, im joined in new york by shira ovide. Is in San Francisco with me executive editor tom giles. I cannot remember what city i and in. Shira, let me start with you in new york. You had a good piece talking about the one bright spot of amazon which was the Cloud Business is starting to show signs of cracks. Why . Shira i dont want to get hyperventilated about one ok quarter, a couple of ok quarters but remember Amazon Web Service is extremely important to amazon both financially and strategically. Even though it has about 1 5 or so of the revenue of amazons ecommerce operations, it generates more operating profit than all of them, than the ecommerce business. That shows you amazon needs aws to work in order to generate total profits for the company. In this Third Quarter, what you saw was both the slowest quarterly growth rate for aws since amazon started breaking up those results five years ago, and a margin, a profit margin that was at least by amazons standards not great. That combination was a little bit worrying. Taylor tom, we look at the prophets so much because the company heavily invests, but analysts are defending the stock. Every time you see big investment eventually leads to growth . Tom that is what happens with bezos. He is willing to spend heavily. We were doing the math on this. Is analysts expectations 24 higher than where it closed today. Analysts are telling their clients buy these shares even at these near record levels for amazon. Despite the concerns about profitability, i think shira raises really good points, people are falling over themselves to recommend this stock. The belief is, yes, it costs a lot to do that one day delivery but it will pay off because people want their stuff and they wanted quickly. Taylor we also go over the earnings of twitter and we saw a revenue fell, in part, because they stopped a glitch that abused customers data and their privacy. Where are they going to make up that revenue . Shira it was lower than people, including twitter, expected, both in the Third Quarter and the forecast for the Fourth Quarter. I agree. I thought it was very concerning, but the reasons for the revenue decline which is basically twitter fixed what it itsed errors in a few of products including settings, where basically it was ignoring peoples privacy preferences. As a result, it turned off some ad targeting it previously turned on in violation of peoples trust. As a result, Revenue Growth fell short of the companys forecast, both in the quarter and ongoing basis. To me, this raises questions about just the help of twitters advertising business. It could have a Revenue Growth shortfall because of a couple of setting changes that should not have been there in the first place, then maybe this ad business is not on such solid footing after all. Taylor i want to switch to another story outside of earnings where we talk about facebook and libra. Mark zuckerberg was on capitol hill on wednesday. One of the first things he said before talking about libra was his take on political ads. He has come out and said we are not going to moderate. We believe in free speech. Tom, and all of your years of covering this, is that the right approach . Tom not if you are alexandra because jo cortez. She took him to task on this. That was one of the most interesting and memorable interchanges of this several hours he spent to questioned by lawmakers, was her going into very specific instances of what if i buy an ad that say the republicans were backing the green deal . What if i buy an ad that says this . He basically said this is something we would not bar you from doing. Hes really going to be called to task for that, especially what happened and 2016 when there was so much disinformation that was spread on the facebo