Return of the mac. Apple introduces its 16 inch macbook pro. Starting at 2400. We will rate its function and design. First, to our top story, its all about disney. They signed up 10 million customers in one day of launching their new streaming video platform. Disney plus just became available yesterday in the u. S. And canada. The strong initial interest could lead disney to hit its target at 60 million to 90 Million Worldwide subscribers for its new Service Two Years ahead of the original 2024 goal. To discuss, we are joined by chris palmeri. With the stock trading at a record high, how much more was 10 million than what we expected . Chris a lot more. Hbs now, cbs all access, espn plus, the World Wrestling network, a lot of these guys have been in business for a few years and none of them have hit 10 million. Disney did it in a day. Its an incredible feat. Thats why you are seeing a record high. Going back to 1974, this is peak disney. Taylor we could say that all the technical glitches yesterday, we could shrug those off. Chris thats what disney was saying. If you only knew how many people were trying to sign up, we couldnt plan for this. The question remains they had this incredible deal with verizon communications, Something Like 19 million customers could access the service for a year for free. Disney is not saying how many of those people that say signed up were free customers, but even then disney is getting a wholesale rate from verizon. Taylor we talk about we dont know where the demand is coming from, but what is driving it . Is it content or pricing . Chris all of the above. Disney, just as they often do, does a fantastic job of marketing. They claim this was the biggest synergy campaign ever. They promoted it on monday night football. They promoted it on abc. They had advertisements in hotel rooms at the theme park, disney radio. They had their espn correspondents tweeting about it, all in an effort to get the word out. The price, seven dollars a month or in some cases free. Pretty hard to top. Content, everything from marble to pixar to star wars. They threw it all at this service. Taylor were just now sit fit where does disney now fit in the streaming wars . Chris people have said they are netflixs biggest rival. Netflix took a fall and disney surged. Disney has become a tech stock now. Its trading not on earnings, but on potential subscriber count, which is estimated to be 60 million to 90 million in five years. People are suggesting they could get to that number quite sooner. Taylor bloombergs chris palmeri, thanks for joining me. Now to another top story we are watching, its all about tesla. They are going to build an electric fark car factory not far from the birthplace of the internal combustion engine, in berlin. It probably wont be up and running until 2021. Beijing has given the nod to a tesla plant in china. To discuss it all, we are joined by dana hull. The final hurdle was getting through china. How big was that . Dana it was the last box to check in terms of getting the permit to begin assembling and producing cars locally, which is what tesla has been trying to do all year. This is the last step. Taylor china is the Worlds Largest electric vehicle market. Is this what investors and analysts want to see in terms of getting that next man, that next market . Next demand, that next market . Dana for years, they have been shipping cars from california to abroad. Its a big logistics hurdle and hugely expensive. It makes more sense to have local factories. One in china, the next one in berlin. This is unprecedented that the Chinese Government is allowing a Foreign Company like tesla to set up shop there. Taylor particularly amidst this trait fight. Trade fight. I was tesla able to work with china and the chinese how was tesla able to work with china and the Chinese Government . Dana they have been shrewd in navigating the environment. Musk has a very strong team. He has gone to china several times. He a player he appeared with jack ma from alibaba. There hasnt been much of a backlash yet. We will see how this plays out. Taylor we know that china is the biggest market for electric vehicles. Europe potentially could be next. How big of a deal is the factory in berlin . Dana when you think of europe, germany is where all of the other automakers are. Its where the mercedes, daimler, bmw its the heart of the automobile automotive industry. This is really important from an engineering standpoint. Its kind of letting all the other automakers know that tesla is here to stay. As everyone else gets dragged kicking and screaming into electrification, testily tesla is ready to dominate. Taylor could we see them become profitable in these overseas markets . Dana the question is can they be sustainably profitable. Is this a oneoff, or are they going to post a profit again . Clearly there is demand for the cars. Tesla has said europe could be stronger than north america. Taylor analysts have said it might be too bold to say that the u. S. Market has matured, but it certainly is a much more mature market than europe or china. Would you agree . Dana of electric vehicles in terms of electric vehicles . Americans have a lot of cars and they tend to drive them for a long time. In china, you still have a lot of people entering the middle class and buying cars for the first time. You have a stronger Incentive Program than some of the european countries. Taylor there was a story about this, seeing what a burden to solarcity burden solarcity has been on tesla. Whats your take . Dana tesla shareholders sued tesla and its board of directors over the fact that tesla bought solarcity three years ago, and this litigation has been ongoing. These depositions were unsealed. Austin car and i dove into those. It shows how tenuous the whole deal was. Musk pushed for it with investors and bankers. The solar roof was drummed up to get the deal closed. Whether investors care or not remains to be seen. The stock is still doing well. Three years later, that was a bad deal. Now more details about how bad it was are coming out. Taylor all things tesla. That was bloombergs dana hull. Time for two other top stories, starting with wework, reporting a loss in the third quarter, it could sing sales, and more than doubling reporting a loss in the third quarter, eclipsing sales, and more than doubling losses. This was all according to a financial document that was presented to bondholders on wednesday and reviewed by bloomberg. Ciscos reporting a big miss on wednesday after the Company Released fiscal Second Quarter guidance that missed analyst estimates. They are citing a slowing global economy. Shares fell in after trading. Second quarter adjusted earnings per share will be about . 75 to . 77. The streets estimate was . 79. The ultimate backup drive. How an arctic bunker is preparing software for the end of the world. If you like bloomberg news, check us out on the radio. Listen on the app, online, or in the u. S. On sirius xm. This is bloomberg. Taylor by now you know about the famous arctic sea vault. Did you know there is also one meant to save the worlds open Source Software . Ashlee vance got a peek inside the apocalyptic code bunker. Ashlee we are here at 78 Degrees North latitude, at the site of the future Github Arctic cold vault code vault. He is depositing 6000 of the most popular opensource projects in an archive inside this mountain. Open the vault. This is how it works. The data is stored on a reel of film coated with iron oxide powder. The information can still be read by a computer, or if need be, by a human with a magnifying glass. How long with this last . Dear competent for 1000 we are confident for 1000 years. Ashley you think this ashlee you think this could last for up to 2000 years . Github is the main place people go to write open source code. Tens of millions of people hop on github and create the applications that make the world tick, which is why he wants to protect it from terrorist hackers electromagnetic pulses, and other unforeseen disasters. Ok. Its basically a toolshed, but its still cool. Into the data vault. This is reel one of the get hub arctic code vault the Github Arctic code vault, and we are going to put it here for the next 2000 years. Thank you. I think, 20 years ago, if you told someone that, 20 years in the future, in 2020, all of human civilization will run on open source code, written for free, and put into almost every product in the world, i think people would say, thats crazy, thats never going to happen. Software is written by big, professional companies, yet here we are. How much of this is just making sure we can restore our way of life . We are all pretty optimistic about civilization. I think we can bet that humans will be thriving for a long time on planet earth. Its just like a time capsule. Theres this amazing moment in history where the whole world is starting to run on software. That software is made out of opensource. Open source is sort of in everything. Taylor joining me now to ascuss, much warmer ashlee vance. You didnt bring your coat. You described it as a toolshed. Why there . Why are they source the open source code there . Ashlee its remote. Theres a treaty in place that in times of war, it remains neutral. Even on top of it being remote, youre down in this cave, so its protected from whatever existential threat you can think of. It is this idea of putting it in the middle of nowhere. Taylor are they really preparing for an apocalyptic scenario . Ashlee thats part of it. Its not connected to the internet. Opensource code runs just about everything in the world these days, so its good to have this backup. It was marking this moment in time of how far openSource Software has come and just this idea that humanity have gotten together to do this great, collective effort. Part of it is just an archive, like you would do for a library. Taylor what are they hoping to use the library for . Are they hoping that they will look back and be able to use what weve done today . Ashlee you could. Its on this film. If there was something horrible that happened, you dont need a computer to read it. You could just sit there with a magnifying glass or Analog Technology and read the code and restore it. A a lot of it is just the symbolism of there was this moment in time when humans did this thing. Taylor i want to talk about this fundamental idea of opensource. Github has championed this idea of opensource. They are owned by microsoft, would you think of as a patentliving, capitalist company. Where is the tension in your story . Ashlee as someone who has covered opensource for 20 years, microsoft bought github last year. To a lot of the people who were hard court opensource fans this, the most surprising thing they have changed a lot. They have embraced opensource. Purely cynical manner. This gives them access to all of the worlds best and brightest opensource developers, which was an audience they didnt really tap before. Taylor in your article, nat said he would consider himself successful, as they created a new middle class when it comes to openSource Software. What does he mean . Ashlee if you work on a big opensource project, android or or linux , you probably get paid by one of these companies, but theres this group of coders who are hobbyists, and they make software we all depend on. We just dont know about it. Theres no real system in place to get them paid by companies or personal patrons. Github is trying to move to this sponsor model, where you could support the developer and let them do it fulltime. Taylor whats the feeling about opensource . You talk about how it is not publicly funded, but everyone can participate, yet you have Big Tech Companies like google, facebook, amazon that have now used all of that to track us. It isnt free. What is that tension . Ashlee theres this great irony that openSource Software started out as this rebellion against microsoft. It was about freedom of intellectual property and the freedom to do with technology what you want. Whether its google, amazon, facebook, their entire infrastructure runs on opensource and this has been flipped on its head monitor people, so its the underside of the story. Taylor was it freezing . Ashlee it was incredibly cold. Taylor bloombergs ashlee vance, thank you so much for joining us. Coming up, we discussed the state of Enterprise Software networking and security with the ceo of Juniper Networks. Bloomberg technology is livestreaming on twitter. This is bloomberg. Taylor earlier this year, Juniper Networks bought mist systems. This was done with the goal of bringing ai into the internet of things space. The company is wrapping up its fifth annual summit in las vegas, which is where ceo rami rahim joins us from. Congratulations on the summit. I want to talk about some of the announcements you are making, particularly within security intel. What are you hoping to achieve with that . Rami security is absolutely top of mind for pretty much all of our customers, ceos, cios, boards of directors. Its all about leveraging the Network Infrastructure to obtain data and information and insights that can allow us to improve the Security Posture overall, in any enterprise setting. The one thing that every malware security attack has in common is that it needs to traverse a network to do it work and we can leverage that as a tool to prevent the bad guy from doing the harm that they typically do. Taylor last month when you came out with your earnings, you cut your fourthquarter revenue guidance. What was driving that . Rami we actually had a great q3, in that we saw Significant Growth in our Enterprise Business at 8 yearoveryear, good growth in cloud at 6 yearoveryear. Security was over 22 yearoveryear. We are really proud of that. In the telco space, the telco is a Challenging Market for ourselves and for our peers. We are being a little bit cautious going into the q fork q4 timeframe. We did guide to yearoveryear growth that is modest, but we are a bit cautious primarily because of the dynamics in the telco space. Taylor one of your peers, cisco, cited a slowing global economy. How do you view that enterprise i. T. Spend . Rami we saw a little bit of weakness in terms of some of the orders near the end of the q3 quarter for us. Primarily because there is a little bit of mark option in bit of more caution in how they are making decisions. We are a relatively Smaller Player in the enterprise segment. We have plenty of room to grow. Ive never felt better about the Technology Offerings we have in the market today. I believe that, even in the face of some softening in the macro environment, we can do very well going forward. Taylor with the mist acquisition, when can we see that pulling demand to the rest of your enterprise Product Portfolio . Rami like you said, im actually in our customer and partner event here in las vegas. The excitement level from customers and partners about the Mist Technology is off the charts. If you think about an analogy of self driving cars, just like there is this need for a selfdriving car in the market today, theres also a need and drive towards a network that drives itself, runs itself, provides a really superior enduser experience. This brings all of that to bear into the enterprise market, through its ai technology. We are taking that and applying it across our entire portfolio. Tremendous excitement. We are seeing great momentum. It will start to meaningfully add to our revenue in the next year, in 2020. Taylor it would not be a Technology Show if we didnt mention both ai and 5g. You talked about pulling ai into your revenue stream year. What about 5g . Rami 5g is going to be very big. Its obviously very important for our telco customers and, therefore, important for us. Telcos represent over 40 of our business. 5g is probably the most important catalyst for increased investment by our telco customers over the next two years to three years. It will happen over a twoyear to threeyear period. More of our routing and switching infrastructure to carry determined this amount of traffic to carry this amount of traffic. It will mean doing this safely. I do think its going to be a really important trend for us. Its going to take a period of time before we can fully benefit from it. Taylor you do have a goal of returning about 50 of your Free Cash Flow back to shareholders. Why are there no other opportunities to invest internally . Rami fortunately, even with that goal of 50 of Free Cash Flow returned through dividends and buybacks, we have a very healthy Balance Sheet that we can leverage for making acquisitions, creating value, like we did with mist. Im quite comfortable that we have balanced capital returns as well as the cash we need to run the business and to make other inorganic moves. Taylor rami rahim, ceo of Juniper Networks, thanks for joining. Coming up, tencent is out with earnings that missed the lowest analyst estimate after a weakening economy hurt advertising revenue. We break it down for you next. This is bloomberg. At the top a look global stories of the day. Facebook has taken a lot of criticism from the outside recently, and there are internal critics too. There is an anonymous memo circulating that says facebook still has a problem with bias. Executive apologized and said the company is working hard to do better. Google reportedly will be the next Big Tech Company to get into finance. According to dow jones, the search giant will offer checking accounts to consumers. The project will be rolled out next year. Apple came out with a credit card last summer, and facebook is developing its own digital currency. And alibaba hopes t