Plus, the congressional hotseat next week. What the text ceos will face in the line of fire. A halfmising to deliver billion cars this year from tesla. As they rev up the next chapter. Tech earnings continue with intel reporting after the bell, a lackluster report for the comely. Shares are down. Abigail doolittle joining us now with more on todays market action. Give us the highlights. Abigail you were mentioning lackluster are not very exciting , they missed in a big way. The stock down about 10 in after hours, plus the forecast not so great. Interestingly, usually when this the stock is already down 10 on the year so really not a great quarter. The stock is getting hit more so after hours. ,here we have some strength at t beat top and bottom line estimates. The wireless business is strong. 8. 6 million active users, a fraction of netflix and disney. You see netflix still down after their disappointing quarter. , theiris riding high competition having a little bit of a tough time. So at t having a very good day on a very strong quarter. Down netflix share still slightly after their earnings report. Tesla shares up but not as high a some thought that would be after the blowout quarter they reported yesterday. What did you see their . Abigail its interesting, tesla throng but not a huge move. Letter at a couple of other newer tech stocks, snowflake really surging, theres a lot of bullish quantifying qualifying there. Theyre going to start tracking u. S. Virus cases and investors like that. As for tesla, overshadowed by the stock we talked about yesterday. The invisible line maker, and you will love this, the stock itself up about 35 . Zoom talking about the effect, people are seeing their teeth on their zoom calls and they want better teeth. Tesla at the end of the day up upt. 75 , at one point today 1 . But the stock up more than 400 on the year. Not being punished because they did deliver some degree of perfection. Speaking of perfection or some shade of it, lets take a look at alphabet. We been talking about the u. S. Antitrust lawsuit, alphabet of other megaorming the stocks. It will be interesting to after there is a move testifying in Congress Next week. The top intelligence official in the United States, john ratcliffe, says iran is behind a series of intimidating messages sent to democratic voters in that both iran and russia have gotten access to Voter Registration information. We have confirmed that some Voter Registration information has been obtained by iran and separately by russia. This data can be used by foreign actors to attempt to communicate false information to register voters. Both iran and russia denied the charges, but could this be a repeat of 2016 . Could it be a repeat of 2016 . There is certainly a good because not only do we have the russians involved, they are getting more bold. I think theres a significant chance the chinese might be involved, too. Even more. About emily why are you more worried . These actors like to create chaos and discord. I argue that this will be viewed as one of the most effective covert operations in history. Weve been at each others throat for a lot of reasons. In a lot of ways they poured gasoline on the fire of disagreements we had in america already. Is getting that iran involved, spoofing proud boys emails. I think what is going on is really just causing chaos in our electoral system. Suggest, trying to find a Straight Line here gets a little bit confusing. In your view, from what we know now, does this mean the integrity of our elections is already being undermined . Like can we trust the results . I think we can trust the results. To actually affect the Election Results would be really hard. I think they recognize that might be a bridge too far. But we do effectively is undermining our confidence a casting doubt on it. Weve seen our own elected officials do the same thing. Our Officials Say things like is the most corrupt election in history. We need to try to build credibility with the elections, not try to undermine it. To so you think efforts this information and discord will last until way after the election. How so . Weve seen that take place here post 2016. To sowntinue to try discord. Clear, the chinese do not care about black americans. They are overtly trying to undermine American Interest in trying to get us at each others throats. It may not be an effort effort to amplify existing discord in america and to make it worse and sort of throw gas on this fire burning here in our country. Emily so what can be done now, or is it too late . I think we are in ok shape. There will be challenges with the voting and potentially the websites, we may see some challenges, particularly with ransomware. I think we have to look at how we make ourselves more resilient to this type of activity. Finally, we need to bring the federal and state governments recognize that no one company or no one state can do it on their own. Were going to be bombarded with messages over the next couple of weeks as we head toward the election. What can we as voters do, is there anything we can or should be more aware of . The best thing voters can do is be skeptical. Recognize that all the emails you get in your inbox may not be fact. If youre in california or other states, read about those ballot propositions. Nderstand who is behind them dont be influenced by what you see on social media. Algorithms tend to drive you in certain directions. Its not good for finding a middle ground. I encourage you to be skeptical, dive into the issues and go out and vote, thats a most important. Cast your vote with confidence. Emily absolutely, vote, vote, vote. If you more concerned about 2020 than 2016, does that mean we have made no progress . Did we not learn anything from 2016 . I think we learned a lot. Im not sure we were effective enough in our response. Engaging the enemy overseas and trying to get ahead of them. The fact of the matter is, we have not done enough to effectively deter countries like russia and china and iran. Nation. O do more as a we also should go on the offense. The best defense is a good offense. If they come after us, they will pay a price. We have not done enough of that. Backed to really push against our enemies in cyberspace. Emily we are on guard, thanks to your warnings. Thank you so much for your perspective here on the show. Ofing up, the chiefs facebook and alphabet will testify, its been three months since her last appearance in washington. Facebook Ceo Jack Dorsey getting a grilling as well. Well have a preview of what to expect in next weeks hearing, coming up. Emily the ceos of alphabet, facebook, and twitter are due to testify on october 28, next week, to discuss their protections from legal liability. The socalled shield is under section 230 of the decency act. Kurt, there is no time like the present. The week they are due to report there arent, what are we expecting from the hot seat . What is crazy to me about this hearing is just that the topic is something we have obviously heard these companies talk about a lot, including in congress. If you recall Mark Zuckerberg and jack dorsey had been summoned and previously theyve taken tons of questions about conservative bias, about their content rules. Answerother executives similar questions. It feels like a well trodden area for these companies to talk about. Given the fact that were so close to the election, it will certainly have more relevant topics or relevant news to link to them. They may be subpoenaed for a Senate Judiciary committee. What do we know about that . Kurt adding to a little bit of the confusion is that now were talking about two separate committees. Committee,commerce that is ago, the companies will show up. Separately, they are now being asked to appear before second committee, and if they dont do so voluntarily, the committee has said they may have to subpoena them to get them there to testify. So its unclear when that second hearing might take place. It could happen as soon as next week, it could also happen later than that. Clearly there is a lot of interest right now about these rules companies have and they want to get answers to the ceos as soon as possible. Emily is there a sense that there is a reason this is all being rushed to happen right before the election . Kurt i think from that new york spoke New York Post story last week, if you are are a member of the republican party, you want to bring these companies there and have them Say Something along the lines at they wish they had done things differently, or that they shouldnt have limited the spread of the story. That would add some validity to the story that otherwise wouldnt be there. So im sure part of the rush is vote, toople go to call for factchecks. Weve seen twitter remove some of i could see it being used as perhaps a final effort around the vote. That, theaking of u. S. Government is accusing iran and russia being behind more efforts to meddle in the election, that theyve gotten information. That are ran is behind emails threatening voters. Kurt facebook often will take down what they call coordinated inoffensive behavior. Basically that means creating a network of accounts, facebook personas and trying to push some kind of message to people on the platform. They have a report every single month now where they are announcing these takedowns. To your point, they have taken down stuff from iran and russia. In september they took down a network of accounts that were tied to the ira, that Russian Group that was creating all the issues back in 2016. So facebook in particular has seen this type of activity before. I dont think that gone so far as to be explicit on how big the issue is ahead of 2020, but we accountsemember the from all those countries in the past year. Emily kurt wagner, thanks so much for that update. Intel slumping after the bell, and a Global Semiconductor war brewing with china. We will take a look at what new regulations are being imposed on china and to what end. That is next. This is bloomberg. Emily intel slumping after the bell, dropping near 10 amid a tepid forecast. Adding more concerned that manufacturing delays are whittling away its lead in the semiconductor business. Are the lifeline of everything, the u. S. Is doing everything it can to stifle chinas chip capabilities. Monthshas been spending looking to dodge pressure from the Trump Administration so it can supply chinas carriers and rollout 5g next year. Robert, this chip war between the u. S. And china is certainly nothing new to you, but what is your sense of how much and how many chips huawei has stockpiled , and how devastating that could be for the United States . Robert well, theyve had quite a lead up to the u. S. Imposing sanctions. This has been in the works for well over a year. Its been clear from sales that theyve been selling a lot of advanced chips to huawei and associated companies in the last year. A guess would be they have couple of years of inventory in the background. In addition theyve had an opportunity to buy Semiconductor Equipment in advance of the embargo that was announced a few weeks ago on china. Emily apple unveiled new 5g iphones the same day you had all the u. S. Carriers touting the coming of 5g. Infrastructure is far more built out than the United States. Do you think this could significantly give china an advantage when it comes to 5g and general tech competitiveness . Robert i think china has been more aggressive in building out 5g infrastructure. Has been within china proper and not in the u. S. Or European Countries or other areas. Theyve been very aggressive in building out internally, theyve been less successful externally. I dont think that has created much of the lead, as the u. S. Builds out its 5g infrastructure. Emily so what do you think the actual impact of huawei supporting its digital capabilities will be on the United States and the u. S. Tech industry . Robert i think china is going to push very hard to become selfsufficient in semiconductors. They produce only about 15 , give or take. There is a program for made in china 2025, which is essential to the Chinese Government spending well over 100 billion to develop its semiconductor infrastructure and selfsufficiency. I think that is sort of the key going forward, as the u. S. Cuts off china from the supply of chips, china wants to become selfsufficient. Off recently the cut doubles down chinas effort to become selfsufficient and find other sources of equipment. Its likely that u. S. Companies will be put on whats called an unreliable entity list, such that Chinese Companies would be buying wouldnt be buying equipment from them. Theres also talked that the chinese could put a band or put pressure on exporting because ofy are the primary producer some elements used in electronics. Purely the trade war is clearly the trade war is escalating. Emily what is your thought on intel after another not so great quarter . Its obviously a company with a long and storied history. Do you see intel losing its lead in this business . Robert i think intel has already lost its lead, it fell behind on 10 Nanometer Technology and now its fallen behind on seven Nanometer Technology. Where we are today is that tsmc infar and away the leading semiconductor electronics. Away for everything including their laptops. Callntels last conference three months ago talked about increasing the outsourcing of its manufacturing to tsmc along with its competitor, amd. So basically what has happened here is, intel has sort of let the lead slip away from them. Leadership position and if anything, intel is going to outsource more and more business to tsmc. Recently in looking at im sorry. Emily we will have to leave it there. Certainly interesting to hear you talk about the evolution and we will continue to watch how intel weathers this latest chapter in chip technology. Robert, thank you so much for joining us. To theup, will speak Senior Vice President of Public Policy at yelp and get his response to the doj suit against google. Why he believes it is a long time coming. That is next. This is bloomberg. This is bloomberg technology. Decades of not more. Case against google is likely to trigger an onslaught of five it antitrust lawsuits writing on the allegation in the yelp put out a complaint in response to the actions. , luther low. Thank you for joining us. Yourt to start off with main argument. In your view, how is google harming consumers . Thanks for having me on. Today, when the mom searches for a pediatrician, google and gives asiphons wall garden is done millions of times a week in the United States. When google starts mismatching users with objectively lower quality information instead of great stuff from across the web, consumers are being harmed because they are getting lower quality information. In antitrust, loss of quality can be substituted. Emily you had quite a provocative tweet. You said it was about two guys initiate a monopoly and never answered for it. How do you back that up . Well, the entire organization of alphabet is technically still run. They have voting control over the company. In retrospect, all of that restructuring was a bit of a structural who dean act in order to buffer them from any kind of scrutiny. As that scrutiny has arrived, u. S. Versus google, i doubt i would love to see larry page deposed and have to testify. But i think it will probably be if it was anybody, it will be someone from the Current Executive Team and therefore, the people who actually control the company are not being held accountable and probably wont. Arguablycrosoft has gotten derailed for a decade dealing with their antitrust issues. Do you think google could face that same fate . So, microsoft is an important lesson in these antitrust cases. Microsoft oxygenated the market. Six months after that case was 1998, googleng of was born in a garage. What happened was microsoft spent the entire 90s bulldozing into adjacent markets. Wheren imagine a scenario after controlling operating systems and browsers, microsoft could have said in an alternate universe where no doj scrutiny came about, what is this coming up . Why dont we use our dominant browser position to clone and steer people to our own Search Engine . Instead, it paralyzed the tendency for microsoft to go into the is adjacent markets. In the Company Initially unlocked innovation and content creation on the web, it is hard to decouple the rise of 2. 0 from the rise of google. I hope that in addition to its misbehavior, it also provides immediate help to innovators and entrepreneurs who are developing new tools and markets that google could potentially threaten. Emily google says that the case is flawed and user choice is users choose these services because they want to, not because they have to. In the case of yelp, the counter would be Google Reviews. What is your response to that . How has the rise of Google Reviews impacted or hurt yelp . Does not align with the facts. I was watching an interview you did a couple days ago with adam aboutfrom google talking effectively this is only a look away a click away and so forth. This is not the 90s where in order to switch out software, you have to drive to the Software Store to buy cdroms. It turns out that people were changekely in 1997 to their operating system and people today are to tinker with their smartphones and change their google defaults. T is just the reality google understands that and appreciate the high carbonate of costs cognitive costs. That is why they spent so much money with browser Companies Like mozilla and others to protect their default positions. Emily Senior Vice President of Public Policy at yelp. Obviously this will take some time to play out