Measure of the spread of populism. Global news, 24 hours a day powered by more than 2600 journalists and analysts in more than 120 countries. Im alisa parenti. This is bloomberg. Im caroline hyde. This is bloomberg technology. Coming up oracle looking at Third Quarter results and the h to the cloud pushing off paying off ,. And another twist in the yahoo hack, u. S. Officials blaming u. S. Intelligence russian intelligence. Ban,ally behind the travel we will speak to a standout leading the fight to block it in the courts, the Massachusetts Attorney general. First, we go to our lead, stocks near record highs after the fed has raised rates. Facebook, google and and another stock we are watching, that is tesla. The company and often they are sing 1. 15 billion dollars 1. 15 billion in convertible notes. Cory johnson joins us now to break it all down. Signaling thes fourth quarter. Cory they are burning money like crazy, burning to hundreds of millions, nearly a billion in the last quarter. And he is buying a little bit of stock. He sold stock last year, so he is trading his own stock and that is an interesting thing. 1. 2 billion is not a lot for a company that burned about 160 million last quarter. They have announced Capital Expenditure plans before july to spend another 2 billion and that is to get them to there. It is not a lot of money for a company that does not need a lot of money. And they might have to come back again. Caroline but the share price on the back of it, trading up 2 , what is the relief . That it is being announced and probably smaller . Cory it is a lifeline for a company that has enormous challenges ahead of it and needs money to get going. Have at that they quarter, that is good, that is a start. They have a lot of what to do. And a lot of money they will need to spend. It looks like the results that we saw in the previous quarter, the quarter before that, that really a onetime phenomenon of not paying suppliers and a stretching out payments and they cannot pull that trick too many times. Caroline they do want to get paid. Particularly when they are coming on this with the model three, that is where the money will be used in particular. The big push. Elon musk said it would bring them close to the edge, that is the phrase he used. The model three is where the investment is going at the moment. Cory i am sure there are interesting tidbits when you read the filing, but it is a curious time for the company because they are going from this niche maker of very expensive cars for very select people, to a much bigger thing. They say they will sell them for 35,000. And the equipment that they are getting, they are leasing and not buying, so expenditures may not need to be as great. Even 2 billion spending for the first half of the year would not be enough to really build the Automotive Manufacturing facility with the capacity for a audi or so on. Caroline we are getting an update to the big picture and really bloomberg saying this is going to cushion the balance automakerhe youngest and helping it round out. It is not just an automaker, this is a company that is making batteries, elon musk making sale after sale. Cory the batteries have been a big disappointment. What we see is over 100 million with only 300 million revenue, so it has been much worse than with the predictions where when they announced the battery business. And furthermore, they have solarcity, it is a tire fire. It is a disaster when it comes to cash flow. And they have a burning hunk of tires, to this tesla business, they are burning the cash so aggressively. Caroline it is a stock that since theto ever election. It is up from what was a low of 182 in december, so clearly somebody out there is liking it. And seeing the optimistic side of the story. Cory it is good to know that is going on. Caroline thank you. Our bloomberg editor at large, cory johnson. The u. S. Government pointing the finger at russia for another high profile cyber attack, the Justice Department charging to russian agents and a pair of hackers in a scheme that included the 2014 breach at yahoo that affected half a billion users. They explained the charges in a News Conference earlier. They targeted yahoo accounts of russian and u. S. Officials, including cybersecurity diplomatic and military personnel. They also targeted russian journalists, numerous employees of other providers whose networks the conspirators for sought to exploit, and other commercial entities. Caroline for more we are bringing in mike riley. An amazing story you have turned out. It is part of a broader investigation, not just about yahoo . What wasnt covered about the backgrounds was uncovered about the background of these people . Mike it is sort of the russian equivalent of what was released in 2014 against the chinese hackers. It is their effort to paint a picture of how russian intelligence is corporate with criminal hackers that help them hide intelligence gathering operations and help them be much more effective than they could be on their own. It is a picture of what happens inside yahoo , they got access to internal systems that allowed them to basically create encrypted cookies on the machines and therefore access the user account anytime they wanted over a period of years. They have indicted two fsb agents, these are basically russian spies. And to criminal hackers they say were handled by the spies, given tasks, told to go and get information on critical are people inside russia and outside of russia and when they came back with information they were paid. Caroline what is fascinating mike, is, of course this is something that was spearheaded a while ago, but now this has been followed through and completed by donald trump as president , somebody who has been offering olive branches to branch is to russia. Is that a hindrance . Mike it will be played out over the month. Some have said this was left by the obama white house. Up, but it all teed they did not pull the trigger on it before they departed the white house and they lifted for donald trump to make the decision. It would have been hard, if you think about it from a political point of view, if you are donald trump not to pull the trigger on it. It was well documented. But if you do, then eric there is a possibility that it is hitting reset with russia. Putin will not hand spies to the u. S. Government. And i doubt people in the kremlin are happy this is going on. The question is, what is donald trump going to do now with the effort to build a new kind of bridge to russia . Caroline it does pull back the curtain of what russia has been doing in terms of using the legal criminal illegal criminal hackers. Does adult anymore does it delve anymore into the russian hacking leading up to the election . Mike Officials Say the cases are unrelated, but they are related in the way you suggest, that this indictment is detailed and it does pull back the curtain on russias entire cyber operations, especially one of the unique aspects, the way they use cyber criminals in order to do things for the intelligence agencies. In one of the cases, one of the hackers, there was evidence emerging that they were doing illegal acts in cyberspace and rather than prosecuting them, they used it over there had to say either you are going to go to jail or work for us. And they became a recruit that helped operations on a global scale. Caroline mike, just painted forward for us, we have one person actually put in handcuffs and arrested. Two of them still in russia. What will happen now in terms of the investigation . Mike they at least have one in hand. But we do not have the extradition treaty with russia and given the fact we charged to russian spies two russian spies, it is unlikely we will ever have them in the hands of u. S. Officials. There is an interesting twist, which is the two russian spies were also implicated by russia themselves in treasonous acts a couple of months ago. So one of them is in a prison right now in moscow. Everybody assumed, maybe one of them was related to the effort by the cia and other u. S. Intelligence agencies to basically get information on what Russian Hackers did it during the election. Now with the latest twist, the fact that they were arrested a couple months ago, are implicated in this case, maybe russia got a sense this was coming and they picked them up as a way to figure out what they knew, and what they were vulnerable to, and what they may have done in terms of communications with western officials. Caroline fascinating story. You can look at it online or on the bloomberg. Mike riley, thank you. And we are watching gopro spiking after the Company Announced a second round of job cuts. Gopro already slashed the workforce in november. Now they are cutting another 200 positions. It is meant to reduce cost, criticism that the camera maker can return to growth. They said the forecast for the First Quarter revenue will land on the up and of its guidance end of its guidance and it will make a profit this year excluding certain items. We have more updates later in this hour. Coming up, stocks moving the benchmark rate is hiked by the fed. And some standouts in the tech sector. This is bloomberg. Caroline oracle reporting of their thirdquarter results, beating their topline it with revenue over and moving higher. Here to break it down we are back with cory johnson and the chief Research Officer at idc. Resounding like revenue. Growth in the cloud is where it is at. Dividends willhe help the stock price. A few pennies. They will take it. What is interesting is one of the most interesting growth stories was there doubledigit rates. What is a researcher service, it is like amazon web services, microsoft, the google cloud business. Oracle is competing in the same space and is saying strong growth seeing stronger and i think it is powerful for this company. It is interesting that amazon is competing with these guys on the database side, so you have really unlikely competitors for oracle right now with amazon and the web Services Business and i think it will be part of the Conference Call playing right now. Caroline we will get headlines out of that. Saying that the past platform service, there is a trend of 80 over time, the jerome general margin. Now we will take it over to crawford. In a key standouts for you any key standouts for you . Where else do you think it started when out, because starting to win out because others have said this is a fad, this cloud thing. We are on the receiving end of those questions from larry. But the problem up at the bottom line is, what i thought was fascinating was the opening comments, the way they model the cloud revenue, it will be larger than their new Software License revenue for the entirety of next year. So basically they are hitting the Tipping Point this quarter when you model it forward. Isbasically says that this now a part of the business that is moving the needle for the entire company. You see it in the 3 topline growth that they are delivering. And i think that the seminal moment here is i spend so much time talking about the four horsemen, as well as all the Large Companies that are struggling for relevance as we move to this new era, and at this moment is oracle making the bed that they are relevant bid they are relevant and given the high doubledigit bookings, we are still looking at this in the cloud, compared to competitors, this is going to accelerate overtime. Interestingly, oracle is going to matter more in the future and not less and that is not a position a lot of the Large Tech Companies have right now. Frankly, none of them can say it. Caroline amazing that a lot of these Companies Left for the dust when it came to cloud have made huge leaps and bounds. Up, they have also built probably more acquisitions focused, others try to figure it out with the cloud. But there acquisitions, trying to get big. They recognize the cost of the companies right now make it silly to do these acquisitions, because they are getting huge valuations and now is on the time. Caroline ivf . Ipo . Cory right. And oracle wants to build as much as they can. This had a depressed valuation because of Larry Ellisons stake in the coming, making it less likely people can buy it. Caroline any headwinds yet to come . We just heard from the ceo, mentioning the strong dollar and they expect more of the dollar to take a hit Going Forward and the strength remains, but any clouds in the Silver Linings . Crawford great choice of words. I think the headwind will be the salespeople continuing to grow, particularly in the market. And i think one of the most interesting stories will be the headwind they will have less of in the future, why this is an interesting come in, they have been continue with amazon what company could actually build out the datacenter capacity to start to compete with the Infrastructure Service and the Cloud Service that is oracle. You have seen that they are high historically, and it is not coming down as a percent of the total. You will see that, they are really going to focus on the gross margin expansion, disciplined cost control Going Forward and revenue expansion as the bookings translate into revenue. It says one of the headwinds may have had over the last year they will have less of, the cap x associated with the building the centers to powell power their cloud. It is an exciting moment for the company that they are seen that payback of. Seeing that payback of. Caroline thank you. Great analysis of the earnings. And meanwhile, the u. S. Stocks across the board driving after fedfederal registe raised interest rates. Abigail doolittle is taken a look. The fed raised rates and signaled that two more are likely to company give us likely to come. Give us the inside route. Abigail we saw a broad rally on this, the right message for stocks and interestingly bonds. They like the fact there are lonely two hikes on the horizon. The dow and s p 500 and nasdaq all had their best day in two weeks. The s p 500 was of the most for the major averages. Not surprisingly, the best sectors beating technology where those rate sensitive sectors, real estate and utilities, they tend to rally when those rates go down. In the broad scheme of things, tech was up, but not as much as some of the other sectors. Isther way to look at it volatility, we have been talking about the lack of volatility. It plunged more today for the s p 500 vix relative to the nasdaq 100 vix, which was also down, but not down as much. So tech was up. Not as much as broader industries. Caroline so we will dig into some of the records. There were some notable records being made by the tech giants. Abigail apple had another record high. Yesterday we mentioned it, but apple having their best day in about two weeks. Goldman sachs with the iphone shipments looking stronger than expected. And it could boost estimates and in turn this could boost Revenue Growth even more. It has been the big story, the return to revenue. And we take a look at the chart on the bloomberg, a fiveyear chart of apple. Two points, the technicals looking similar to 2012 and the 2013 when there was a drop on the iphone 5, and then a huge rally on the upgrade cycle. We are looking at something similar right here. Is it just there could be upside suggests there could be an upside for apple in the longterm. And this suggests shares are over, so perhaps we will have pullback in the near term. Nearterm, pullback. Medium to longterm, they are looking bullish. Along with the suppliers. Caroline brilliant. Abigail doolittle, we love having you on the show. Coming up, dutch voters going to the polls and high profile twitter account hacked. Details on what twitter is doing in response, that is next. This is bloomberg. Caroline a number of International Twitter accounts have been hacked and it is linked to turkey. They contained content supporting the turkish president tayyip erdogan. They said nazigermany and naziholland for hashtags. Twitter says they are investigating and his shares of the company fell 3 on wednesday, the most since february. And intel under pressure for the session as well. On the stock,ng the first downgrade in 10 years. And analyst wrote that intel is a Better Company than stop a stock. We talked to the ceo and cofounder of rubric. What the immigration order from President Trump means for the tech sector. This is bloomberg. Alisa im alisa parenti. You are watching bloomberg technology. Lets start with a check of your first word news. A judge in hawaii expected to rule on the revised travel ban before it goes into effect at midnight. Of the lawsuit claims it hurts hawaii by highlighting the dependent on International Travelers its Ethnic Diversity and reputation as the hello hostage. A requests denied from native americans to stop oil from flowing through the dakota five ipad while they repeal dakota pipeline. It likely clears the way for oil to flow next week. And south korean prosecutors tend to question the ousted president next week about the Corruption Scandal that removed her from office. Her impeachment cost the former president immunity. A new election will be held for her successor on may 9. And the u. S. Drawing up plans that would deploy up to 1000 more troops into northern syria, according to the washington post. Citing defense officials familiar with the matter. It comes ahead of the offense of to retake the capital. And the family of a ship captain taken hostage by somali pirates has released photos of the missing sailor. He is one of a crew men captured after their ship was hijacked on monday. The first seizure of a large commercial vessel in those waters since 2012. Global news, 24 hours a day powered by more than 2600 journalists and analysts in more than 120 countries. Alisa im alisa parenti. This is bloomberg. P. M. Inst after 5 30 new york, already 8 30 a. M. Thursday morning in sydney. We are joined by paul allen with a look at the markets. Paul good morning. We are off to a roaring start in new zealand firm for the fed decision, futures are pointing higher i