Mark meanwhile, mrs. Clinton and her running mate kick off a threeday bus tour in pennsylvania and ohio. Mrs. Clintons september speech drew 28. Million fewer than the fewer t was 30 million than who tuned in to see Donald Trumps speech. Turkey is escalate its crackdown. The government has canceled 50,000 passports of the they have fired or suspended soldiers, bureaucrats and academics. Powered by more than 2,600 analysts. Emily this is bloomberg west. Emily this is bloomberg west. Coming up, amazon and facebook neck and neck with berkshire hathaway. To dominate the worlds most valuable companies. Well bring you all the latest numbers. One more tech i. P. O. For the books. We sit down with a Data Tech Company after shares topped at 45 out of the gate. And will Russian Hackers help donald trump get hold of Hillary Clintons missing emails and in on what the republican nominees comments mean for cyber espionage. And amazon and facebook moving into the Top Five Companies with the largest market cap. Exxon mobil was at the top. Five at the close of trading and bumped apple, amazon and facebook reported strong quarterly earnings. We have chief analyst with us and our stock market reporter. Oliver, i know you have been following these companies. Consider closely this week. When it comes to the stocks, which moves were the most interesting when it comes to the top four Tech Companies . Its tech. Right, why im here, because were talking tech, and that was an Interesting Development this week. Now been a group that has led the market throughout this entire year. To see tech getting a boost on the back of earnings was very important and interesting as we look to get some indications as to where equity markets in the u. S. Are going to go. For this year ry has been people moving into more defensive types of names, the dividend payers, the value stocks that are going to do pretty well in the midst of petering along economy. When earnings come in and Beat Estimates by the biggest margin compared to the rest of the s p 500, people got bullish and you saw the rally. Look at the tech p overall. S the fact that the Information Technology group was beating s p this week, it was leading the most in the earning season since 2008. You are seeing a pullaway there. And the bottom line, they like to see when tech leads. You are looking at a chart why that basically shows you maybe why this isnt happening and the bottom chart shows it leading. And there is a gap between valuations and one of the most popular groups up until this week, which is the consumer staples, they are getting expensive trading 20 times earnings. Perhaps thats possibly why investors were ready to buy into some of those stocks. Emily bob, one of the things the companies have in common they are trying tomon advertise, trying to monatize their core business. Amazon and the cloud and instagram and messenger. With apple, its services. The best job so far . So far you have to say apple is doing the best job. They have been doing it longer. Tim cook has been talking services for the last Emily Services for the last Emily Services is 20 . Exactly. I would say from that perspective, they probably are. The question is longer term who can do more and that will be interesting to watch. Its still waiting to be seen. Amazon is doing incredibly with web services and Retail Services are doing. Google and facebook. Obviously trying lots of interesting experience. Google, the question will be how much can they do on Cloud Services and how about the other moon shots. They have a lot more discipline with the new c. F. O. See new numbers in the way of approaching things. But the bottom line is i think it remains to be seen, while apple is doing better now. Emily when it comes to the cloud in particular, not just amazon, but they are fighting but amazon and microsoft and fighting for for a piece of the cloud market. How much does a stronghold do they have on the market . Microsoft is the biggest threat clearly to amazon. Google much further behind. The trick is a lot of these guys are moving towards analytics and deep learning and the futuristic means of discovering information and if google can offer that capability as part of their Cloud Services, thats where they start to become unique. Mind you microsoft is pushing hard on that. You will see effort from both google and microsoft against amazon but amazon has the benefit. Emily amazon trading at 758 a share. One analyst put a 1,000 a one analyst put a 1,000 a price target. He thinks amazon could have a 3 trillion market cap and a better chance to pull ahead of the pack. What is the street saying . Its interesting you brought up the projection of 3 trillion market cap, because not too long ago, there were similar types of expectations for apple and it shows you that is a company that has been volatile the past year. If you are a portfolio manager, you cannot afford to own apple in the past. Shift as were talking about. When you look at amazon, what is interesting about the earnings, this is a Company People arent buying for the profits because it is a powerhouse in terms of turning out earnings. If you look at what is happening with the valuations, it has come down a little bit but you are paying hundred times valuation. When you look at the p. E. Level, its kind of hard because there is no real e on that equation. And you have a quation there are a lot of questions. You see the feds staying doveish. Hike irates at the rate they expected to. So that might be redrawing of the economy. Investors want to find growth. They are willing to pay a lot more for it. A company like amazon that is growing and saying we dont need to turn out a profit but put it back in our business. Investors like that and how far it has come and disruptive and how fundamental to the company, higher valuations arent out of line at all. Emily bob, which company is the most vulnerable right now . Whats the biggest weakness . Thats an interesting question. In some ways, perhaps apple is as well because so much of the business is still dependent upon the iphone. Talking about the alternative businesses. If we look at the core businesses, thats where the question becomes because we have the iphone 7 in the fall. A lot of expectations that its not going to be dramatically different. If thats the case, we could have relatively modest sales and could have continuing declines in 60 of their business. Thats obviously a concern, i think. So thats why i would say there is some potential concern there. Facebook and google, they have concerns with sat you areation, saturation. Price drops on the ads, but there is a lot of growth there and they are experimenting with new forms of advertising and snap chat filters and all this kind of stuff, that will be interesting. In the longer term. Emily a big test for apple in september which we presume will be the iphone 7. Well be watching. Bob and oliver. Always glad to have you both. Emily facebook may have to pay up to 5 billion to the i. R. S. The social network reported a potential Tax Liability in a filing on thursday. Bloomberg News Reporter explained how facebook got into this situation. In 2010, facebook decide todd decided to move move its Global Operations to ireland. So thats everything that doesnt include the u. S. And canada and when they valued the erns and young to set the price. The i. R. S. Said the valuation was too low and off by a few billion dollars and this is what we think the valuation is and its 3 billion to 5 billion. What are the next steps. I understand facebook has been called to this tax court, hasnt shown yet. Whats the companys next move . Options ande a few they said they will challenge the notice. They will go to federal tax court and say, we have our experts and told us this is our valuation and the i. R. S. Will come up with their own experts and say, this is the price tag that we believe you should be paying on and probably theyll end upset willing between 3 billion and 5 billion but depends what the i. R. S. Comes back with and play on an issue that is on much broader theme. Emily that was bloombergs reporter. Th. P. E. That private equity firms are contemplating a buyout. Apollo global manage nt and Carlisle Group are sticking around. They had talks with representatives of the firm and the deal could be worth over 40 billion. Still to come one of the rare tech i. P. O. s the french big data company. And we take you to the heart of the mojave deserts where they play with fire. The c. E. O. Of Virgin Galactic gives us a tour. Its been a slow year for ipos with three going public in the u. S. Talon making gy nasdaq. Ut on the tukin andown with mike asked him what makes this company stand apart. Its really a unique market structure. What we find is a small number legacy income players and those players havent done a great job of tracking the changes because the market is moving very strongly now to gated socalled Big Technologies into the cloud and they have a technology and Business Model approach that doesnt work well there. That business for us is going 100 a year. Powering our top line. Those legacy players who dont have the capabilities of doing what do you, whats youping them from snatching up now that you have a value whats on your company, keeping you all from being taken out . Whats happening is the couple of thing is a them have been taken private veryselves and they are in tight financial constraints, much more so than in public companies. As a result, i think well have a nice long run as a public company. Emily speaking of acquisitions in your perspective, you said that acquisitions are on your well. As are there certain parts of the business that might be more right to acquire instead of organically grow . Theres two main categories. Adjacent markets that are close to what we do. The Companies Might want to buy it at the same time. And the second one is deepening our solution in areas weve acceleratinged but our ability to solve a bigger part of that. And deepeningning the two bigger categories. Which were at rapid 7 you went public recently last year. Youve been at the helm of two private i. P. O. Companies. What are you seeing these days and whatunding markets would your advice be to other execs who are considering Public Market . What we found is that the latestage private funding market has changed dramatically in the last 12 months. It was a full risk on very aggressive latestage market and as a thatlt, a lot of companies did latestage rounds within the last year are finding the got in the that they private markets arent really sustainable and arent ones investors c market are willing to do. So i would suggest the Companies Really need to think they want to become a public company. In which case, they may want to think about doing that sooner versus taking one of these latestage rounds, which may actually make it harder for them to go public in the coming years. Pressure on public valuations that we are seeing because theres been a slowdown in private funding. Again, its been a chop year in year for and a chop i. P. O. S in the u. S. We felt we had a solution or go ompany that we could public in almost any market environment because that was it balanced. High and balance of accelerating growth with cash positives. So we looked at that and said the time is now. That was talon ceo. Coming up, berlin rising as tech hub. Next could the next exit be on the horizon . This is bloomberg. Emily lets take a trip to berlin. How more are drawing in funding how its a historic lack of exit maybe about to change. A listen. Theres a real light being shown on the tech startup scene and whether it can grow and perhaps claim the crown as the top tech club in europe as they decide to leave the e. U. , from london with cheaper living arrangements and cheaper Work Environment and uninhibited access to the mention, to uninhibited parties theyve got going on here as well. They have 2. 4 billion euros was lured in last year into the hubs. One of the complaints and perhaps what stopped berlin place is a such a lack of access compared to one on but there could be on the horizon to help put money back into the ecosystem. A bloomberg scoop earlier this week, it seems the sound streaming Music Company could be up for sale. Of about 1 billion. Theyve been monetizing this business and the revenue isnt that consistent, according to people familiar with the situation. 175 million. So well see whether some of the key investors, including square, will be cashing in on that investment soon. Of res also been plenty optimism coming from some of the other key startups in berlin. Of them is an online bank, n26, launching new products, scale, and crucially getting itself a banking license from in here in europe and i spoke with him about the growth of his company and the in berlin of the tech scene. Were not working against banks. I think were seeing the opportunity in the market. I think a lot of young customers dont feel connected the banks are s offering so theyre really far away from great mobile experiences and i think its exactly the niche were in, so with the Digital Access and the want to do bank ing on their smart phones with a simple click and its more about taking the opportunity. Today we have around 230 or customers, and were growing kind of at a fast pace obviously, were much smaller than Traditional Banks that have an opportunity for us to grow. United kingdom, makes us post of what happens brexit ashgsz we call it. Decision to be made now . I think its kind of uncertainty. Decides to leave formally, i think whats going to happen at the end of the year, we still have kind of two years of negotiation periods now, in two years from well know if the u. K. Market is going to be interesting for we can also take if we would need to get we ew banking license then, can get it then, so i think were pretty relaxed on the and i think its an interesting market. Was there a decision when decided, lets take on the banks rather than partnering with them. To get your sk you in hnology and bring it house. Were still partnering with banks. Were also talking to Traditional Banks. Maybe they have the superior in the credit rates, and have the experienced staff house or s at the whatever, so mostly today, we startups ering with on our platform and are talking but ore traditional plans sometimes, its just very difficult if youre talking to has is es that maybe 100,000 employees, has very old stacks, so its just the difference between the pace of startup and the very big coffers. But i have to say some banks, partnering ng at with. Emily your investors are having. Ones,ave some interesting peter till, one of those who put money in at the beginning. Found most u interested in backing your company . Investors, all the we have some here from germany, we have some from peter till and now recently litta sheen investors and a couple of others. I think its important to have investors with a longterm vision. Retail banking is one of the last area that hasnt been by online and ed by mobile. And all of them have a longterm vision and they expect us to take at least 10 years, but they have the financial power to bring us through that and really work on bringing mobile banking to consumers. How important do you think you are based in berlin. Many would have thought munich or london. Whats happening in berlin . We have tried not to be i think it is positive that we arent the center of finance. As we are contracting our products and if you look at our products, we always try to build it from a perspective not coming from the inside of a Traditional Bank or traditional player. And actually berlin has created a sense and best people in europe and happy to be in berlin where we can actually accelerate the city and get the best minds to work with us. Emily do you think its going get more popular post brexit . I think berlin is now more attractive for any Company Moving to europe. Are y another story we watching. Moving to europe. Tim cook is hosting a fundraiser for Hillary Clinton. If you want to go, its going to cost you. Tickets will run between 2,700 and 50,000 while apple lobbieses, this isnt the first. For the ceo. Last month, cook hosted a fundraiser for paul ryan. He will be accompanied by lisa jackson who heads up the environmental policy. Staying with politics, coming up how is the russian Hacking Community of Donald Trumps calls to hack Hillary Clintons emails . This is bloomberg. Lets begin with a check of your first word news. After Hillary Clinton accepted the democratic president ial nomination she and tim kaine are on the campaign trail. They spoke at a convention rally at Temple University in philadelphia before beginning a bus trip through the battleground state. Of pennsylvania and ohio. Early early today, mrs. Clinton picked up where she left off thursday night, going after donald trump. I find it highly amusing he donald trump talks about make America Great again. He doesnt make a thing in america except bankruptcies. Mark the campaigning in colorado springs, donald trump said after watching mrs. Speech thursday imht, quote, taking the gloves off. A federal Appeals Court has ruled a voter id law in North Carolina was enacted with discriminatory intent and must be blocked. The 2013 rewrites of voting laws in the state required photo identification to cast in person ballots. It reverses the lower courts ruling. Six more state in ploys in michigan face charges in the plant water crisis including misconduct and office, willful neglect of du