The video does not give me absolute, definitive, visual evidence that would confirm that a person is pointing a gun. I did not see that in the videos that i reviewed. The National Guard arrived in charlotte to try to head off a third night of violence. The top u. S. General says a rocket that hit a base and a rocket contained chemical agent. It was said, unequivocally it contained a sulfur mustard agent. No one was injured. Global news 24 hours a day powered by more than 2600 journalists and analysts in more than 20 countries. Bloomberg west is next. Emily i am emily chang. This is bloomberg west. Yahoo admits that account information for 500 million users has been stolen. Statesponsored hackers may be behind it. What does it mean for verizon as it works to close the deal. Jeff weiner tells me he is rolling up his sleeves and mapping integration plans for microsoft. He discusses whether more tech m a is coming. The food delivery in business business in europe is defending its home turf as uber eats encroaches on its territory. A major stubble for yahoos stubble for yahoo . Yahoo confirmed today that the personal information of 500 million users was stolen in a 2014 attack. Yahoo believes the attacker is statesponsored, though an internal investigation found no evidence that such an attacker is in the network. The stolen information includes email addresses, phone numbers, passwords. If it sounds familiar, last month yahoo said they were aware of information that said 200 million accounts had been stolen in 2012 and on sale on the dark web. What does it mean on the megadeal . Verizon was just told of the data breach in the last two days. It has limited information and understanding of the impact. Joining me now is the head of immunity in washington and a founder of tinfoil security. Michael, what stands out to you here . The sheer size, as well as the fact that it took two years to figure out what happened. What do you think is most significant . The size is immense. This is the largest number of records stolen in any breach of the internet. The other big thing that stands out is, we say that it took two years to figure out or find it. Thats true, but when you have a statesponsored attack, one thing they are good at is hiding their tracks. When you have an individual who is trying to attack the company, they have one main goal. They want to steal as much as , make a dossier. They want to fence it. When you have a statesponsored there motives are not to make a quick buck. They are good at hiding their tracks and persisting within the network. There motives are not o make a quick buck. It is hard to find this out until you accidentally stumble upon it. They have hidden their tracks so well. I think the fact that they found it now is good. Whether the attacker is still in the network is still potential he up for debate. Just because there is not evidence does not mean they are not there, but that they have not found additional evidence. It is difficult to ensure. Emily what do you believe of the contradiction that they believe it is statesponsored but there is not evidence . I agree with the other guest at this point. To say that it is statesponsored or not, everyone says they were compromised by a statesponsored attacker or advanced persistent threat. Yahoo knows more than we do, but it is a common thing to claim to absolve yourself of responsibility. I agree that i would go a step further and say that network is probably still actively compromised. Because of the breadth of business that yahoo does, the attack approach is possibly infinite. It will be impossible to ensure anyone who compromised is completely out. Emily there was a russian hacker who was discussing the fact there was information. This person said they were from yahoo somewhere. Did that lead you to believe that it could be russia behind it, if indeed it is statesponsored . I would hesitate to say it is russia, necessarily. I would say that russia, in the past, and china, in the past, have been known to be actors in such statesponsored attacks. That is a possibility. Russia and china have cyber warfare capabilities. They could be involved. One thing that i want to add is when you are operating on the scale of yahoo , you have such an immense service area, that even yahoo is not necessarily aware of every server or application that they support or have up. Which is a problem. You need to track down where they came in, where they went, and where they left. Also, where they might still be. If you do not know where all your applications and servers are, that makes it doubly hard. Emily you mentioned this could be some sort of excuse. Do you believe there may have been some negligence involved . Could this happen to any company, especially a company as big as yahoo . I think it could happen to any company. There is a certain amount of truth that you cannot defend yourself from someone like russia or china. In 2010, google succumbed to operation aurora. That was the chinese sponsored attack. I wouldnt go so far as to say there is negligence involved, this is almost an intractable problem. China and russia can outspend your Defense Budget by orders of magnitude. Eventually, theyre just going to win. I think it is unfortunate that yahoo has been hit this way, twice in the last two years. The timing of this is rather suspicious. Weve seen hacks that correspond to big Financial Transactions as an attempt to gain the market. It is good food for thought to see why it is coming out now, especially considering the verizon deal. Emily that is interesting. What does verizon need to be thinking about as it tries to close the deal . They are about to acquire a company that has now publicly announced they had a massive breach. They have to factor in the cost of investigating the beach breach, the cost that shows they have remediated the factors that caused the breach, the cost of showing the users are protected, and ensuring Identity Theft protection, or whatever they choose to do to contact yahoos users. All of that factors into the question of price and all the due diligence. Alex, what would your take be . Are verizon, what are you doing . I tend to agree with michael. What verizon should be doing is considering theyre both probably actively compromised, the reality is there are probably foreign actors on the verizon network, on the yahoo network. When youre thinking of integrating verizon is mobile ad in yahoo s business. You have to look at it as a containment standpoint. Not to belabor the metaphor, but they have to consider how to protect themselves, and what they are potentially going to buy from whatever they are harboring. This is the reality. Emily thank you both so much for joining us. We will continue to follow this story as it develops. We will be taking a look at Cyber Security stocks that jumped today. Leading the gains up nearly 5 . Tesla is cranking up the pressure to sell electric cars directly to consumers. The company sued the state of michigan to overturn its ban on direct sales by manufacturers. It is teslas first lawsuit on the issue and it is on the home turf of General Motors and ford. Tesla had been challenging these limitations on its sales model on a state by state basis. A federal court ruling in its favor would have National Implications as it races to bring its more affordable model three to market next year. The Company Plans to unveil its solar roof idea next month. This after the board of solar city agreed to teslas offer to buy it last month. Elon musk announced the plans on twitter, saying aiming for october 28. Coming up, linkedin unveiled its first big announcement since the microsoft merger. Our exclusive interview with the ceo is with us next. This is bloomberg. Emily on their latest funding board, airbnb has raised has raised at least 550 million valuing the company at 30 billion. The wall street journal saying Google Capital is participating. The size of the round could go up to 850 million. Airbnb is letting some employees sell a total of 200 million in stock at the same time. Linkedin is ready for its first big Product Launch since microsoft bought the company. They are offering a. I. Messaging. The updates are a part of linkedins push to expand beyond a networking platform. I sat down with jeff weiner for an exclusive view. Helping our member say stay connected and informed is one of our central value propositions. That is at the foundation of our flagship application. We are going to be redesigning the desktop as well. Were going to continue to invest aggressively and create the most relevant newsfeed possible. Messaging makes it easier for people to keep in touch. For people to reach out to the people they want to do business with. That overhaul, relative to the prior inbox, we have seen very material lift. These things compound to lift engagement. Emily i know that we are waiting for the acquisition to close, but you said you have been rolling up your sleeves and digging in. Tell us what it is like to plan. There is a lot of clarity in terms of the value that can be generated by virtue of leveraging linkedins unique assets. To integrate that as seamlessly as possible on top of microsofts footprint, north of a billion users. It is one of a handful of Technology Companies that reach over a billion users. We have been working with teams, the outlook team, the windows team, the office team. Thinking about what is possible so when we close we can hit the ground running. Emily what should we expect to see first . I wouldnt be predicting first in terms of chronological order, but some of the areas that make absolute sense integrating linkedin identity assets within outlook. So when someone sends you an email, you know who they are. If you are less familiar, you can add them to your network. If youre already familiar, you can see if they have changed job or change the company. It brings the inbox to life. There is an interesting stuff some interesting stuff we can do with windows integration in terms of the Activity Center and notifications. And with dynamics, continuing to differentiate some of the Business Applications that are generating real momentum on microsoft through leveraging sales navigator, things we can do with recruiter in terms of Human Capital management. Emily i understand the idea is for linkedin to remain largely independent, like facebook and instagram. How do you expect it to work in practice . How will it affect the culture of linkedin . From day one, we have said it is very important to continue to focus on growing linkedin, realizing our mission, and accelerating our mission. Both teams are aligned behind that objective. It is made easier by the fact, your point about culture, that is where m a goes off the rails. You have two disparate cultures misaligned. In this case, the underlying cultures of both companies and companies are already naturally aligned in terms of being Mission Driven. Santya has been very Mission Driven since he took on the role of ceo. In terms of being innovative come in terms of creating a sense of openness and the speed and agility required to make that happen. Along those lines, we are seeing a lot of alignment. Your howd you maintain independence, but focus on the synergistic goals . That is a great question. We took some time to naturally align the strategy. When it comes to daytoday prioritization, it becomes intuitive. It doesnt require a lot of disruption. One thing i would like to see us gets to is take product acquisition, we get a point where it is to longer no longer Acquisition Integration but a Natural Evolution of the roadmap. For example, our identity team, thinking through that outlook integration, that should be something they are looking forward to doing. And accelerates the realization of that teams objectives. We are trying to take a similar approach across all the product teams. Emily this deal surprised the market. You managed to keep it under wraps. It has kicked off a wave of m a and speculation about more m a. Do you have executives coming to you who may be thinking their desire to stay private . The same companies thinking about staying private previously had very specific reasons. I do not know that consolidation played a role. It was, should we remain private versus going public . What are the pros and cons . This debate goes on and off cyclically over many years. In terms of the increasing consolidation, i think we will continue to see that trend. It is less about publicprivate, and more about the competitive landscape. The importance of scale over time. I think we will see more rather less. Emily you guys are the first Big Social Network to go for m a. There is a lot of speculation about twitter. Where do you see more m a . I would be looking more from thancquirer front rather being acquired. You have a lot of that taking place within enterprise. I think Business Applications will increasingly be used to differentiate these huge crowd offerings. Some of the consolidation that we see will be good for all these cloud infrastructures. Worked at big and small emily as an executive who has worked at big and small companies, what other benefits of remaining small and lean and vice versa . The smaller you are, the easier it is. There are fewer things that add complexity. The larger business becomes the more people you have to manage. The more businesses you are in, it naturally increases the degree of difficulty through complexity. The companies with the most initial success are those that remain focused on their core. Everything is about reinforcing that core. Overtime, businesses want to continue to grow. So they expand beyond their core, and that introduces complexity. The advantage of being among the Larger Companies is they have far greater scale, and far more resources to innovate. One of those examples is a. I. The Critical Mass of expertise required for a. I. Is increasingly in a smaller number of companies at that scale. Emily i know that you and reed have traveled there many times, to china, how do you see using how do you see linkedin helping microsoft in china. Microsofts global footprint is impressive. We were in india and rolled up out three new products. We got to meet with the Prime Minister. Satya has met with the Prime Minister on several occasions. China, as you mentioned. Japan. Microsoft has a huge presence in japan. That is a market we have not invested in as aggressively but we can jumpstart that. Microsofts global footprint could have a meaningful impact. Emily you unveiled a new learning product, building off one of your biggest acquisitions, lynda. Com. How big do you expect that to be relative to the whole . It can be a meaningful contributor to the top and bottom. That happens in two ways. One is the enterprise part of the business where we are leveraging our sales force. North of 40,000 enterprise customers, where we can sell into those businesses beyond the recruiting tools. On the consumer side, we are able to seamlessly integrate into our premium subscription packages without charging an additional fee. We will add more value and we think that can help retention. Emily you are adding messaging bots, scheduling bots. There is a lot of excitement around bots, but they have taken a while to hit the mainstream. When do you see them going mainstream, and how do you maintain the quality of interaction . You maintain quality by being focused. Not doing bots for the sake of doing bots. Often in the valley, there seems to be this new introduction of new technologies. People become excited and they become buzz word oriented. You have to get past that and think about how the new technology is creating value. The example today was how to two members connecting on linkedin through messaging can schedule a meeting. It is a multistep process, you have to go in and out of applications. This really accelerates the process and makes it more seamless and intuitive. That is something that will work and create quality. You focus on getting that right and move on to the next one. Overtime, you will see some platforms evolving. Microsoft is investing in a platform capability to enable thirdparty bot capabilities. That is when you can really start to see innovation unleashed. A noise has to start with what value youre trying to create for members and customers. Emily our interview with linkedin ceo jeff weiner. Bloomberg is teaming up with twitter as the exclusive streaming partner for the 2016 president ial debate, starting with the first debate on monday. Tune in or follow bpolitics. This is bloomberg. Emily an update on hampton creek, the vegan mayonnaise startup accused of buying their own product to spur sales. Investors knew of fraud allegations for as long as two years before the investigation. They did not warn new investors about the situation. The full story is in this weeks edition of bloomberg businessweek. Coming up, amazon and ubereats may be growing in europe, but heroes sayry startup these rivals will not sweep the market. We will hear from the ceo next. The more the bank of japan does, the more traders are convinced the yen is out of control. This was the fifth straight meeting that saw currency gains by the end of the trading gain trading day. Annualet for its biggest advance in eight years. Two days of talks between saudi arabia and iran have failed to create an agreement on an oil freeze. They met for formal discussions with nonmember russia next week. Theyre concerned there is no serious commitment to curb supplies and face of a global glut and weak demand. No deal in algiers. China has issued new regulations which will ride in widen its access to data. Law enforcement will secretly be able to demand access to programs such as wechat and weibo. Support sorovide that data can then be cemented as evidence in criminal cases. Global news 24 hours a day powered by more th 2600 journalists and more than 120 countries. This is bloomberg. Lets get the latest from the markets. Japan went on a lunch break 1 10 ofe rritory by 1 . It is coming back om his lunch break. We will see what it does the rest of e day. So far, we are seeing that it is down. The yen has been volatile. We saw slightly positive territorthere for a while. We are now seeing it come back again in negative territory. The shanghai composite is also falling down 1 10 of 1 . Raising materials as well as real estate are dragging the index. Real estatcompanies just surged yesterday, as people are expecting the