You can watch the debate starting at 8 30 new york time. Results from sunday the municipal elections in brazil are indications the Workers Party will not be competitive in the 2018 elections. Im mark crumpton. Forlet im scarlet fu in emily chang. This is bloomberg west. Stick costello says advertising is not twitters only means of revenue. China has dj has been selling drugs to professional for years. The gopros ceo ways in. Can Companies Gain from digitizing the supply chain . We will discuss it with the former ibm ceo. First to our League Facebook wants a rematch with craigslist. Marketplace allows users to post items for sale. The social networking site started a Similar Service in 2007 also called market lace. Facebook sold the business to another company. They are entering the space with the likes of craigslist craigslist. Joining me from San Francisco is Bloomberg News reporter, sarah frier. Name as its first iteration, so what has changed . What has changed is most users are on mobile phone. On desktopions were computers. Now people are on their cell phones and craigslist doesnt even have a mobile at. This is an opportunity for them. A new iteration of marketplace has been in testing for more than a year, so what do investors know so far . Testingacebook has been the marketplace features within their facebook groups and what they have found is about 450 Million People use marketplace features each month to buy and sell stuff. Actual transactions dont happen on facebook. Its more of a craigslist thing were says im selling this or that and ordinate either through a messaging app or email how they want to exchange. Scarlet does it make money for facebook . Guest absolutely not. But it might help will get more familiar with transacting on facebook which could help raise book solve its problems. When people go to facebook, its the place to hang out with friends. They dont really go there to shop. People associate this marketplace mentality was being on facebook, that could open up opportunities for the future. Scarlet sound critical to crackoks effort to ecommerce. Is this something people in Silicon Valley are excited about . To you daysw a hit shares, so maybe that is leaving investors concerned about what that could do to other layers. In Silicon Valley, facebook hasnt quite cracked the code in ecommerce. They have tried a few things. Button ande buy gifts that you can give people on their birthdays, including the prior marketplace features. Im eager to see how it works. Im not sure it will change things on facebook but if they have seen any behavior, maybe this is their way to capitalize on it. Bloomberg news reporter, sarah frier. Stay with me because i want to give it to another story in socially you. Twitter shares popping after dick costolo said m a is not twitters only option for growth. Brad stone, our Senior Executive editor asked about this latest project and about potential sales rumors at his former company, twitter. Delivery are trying to programming thats very specific and personalize what you need to do today. Delivering not just to you but to a small team of friends, family or coworkers connected to you. Some positive reinforcement from your team to keep you motivated. It helps connect you together to make sure im supposed to do something today and we are supposed to connect and do that together. Kind of social accountability we are trying to bring Online Networks off line in the real world. How do you anticipate making money from it . Bob it will be a subscription model. Personal trainers cost up to 100 an hour. The boutique fitness classes are sometimes 30 or 35 an hour. For less than 10 month, youll have personalized programming. What got you interested in this . Have t is something i dick i have been wondering why these platforms havent really reached scale and its generally because they are focused on a or not anycycling other kind of jim work out or they have this social component, instagram,tter, pinterest model and theres no one there when you dont do something you are supposed to do, those things were great for what they are built for but we want to bog to broaden the appeal and deliver value to the people who cannot keep motivated. It will be in beta. I have to ask about twitter reports came out last month that it was possibly up for sale. Google and disney have been mentioned. It is an acquisition the only way to restore twitter to growth and health . Dick i think twitter can be a companyul, independent and i think the world of the team over there. The Senior Leadership over there i think there are lots of different ways twitter can be successful. Scarlet that was brad stone speaking with dick costolo. Sarah frier is still with us. I want to pick up where they left off. Potentialf the acquirers, we are google, walt disney, salesforce are there any that are a more logical fit . Were hearing a lot of Different Things from investors and analysts. Something disney makes the most sense because they are a Media Company and their close ties between dorsey and bob iger. She respects him for having turned round disney in the past. Some people think Silicon Valley. Have tried to bid for linkedin and it may be their way to do it. Im hearing more skepticism about google but they have retained lazard to think about whether to make a bid and they have a his three of being interested in twitter and then deciding not to go for it. What kind of price tag or valuation have you been hearing . Sarah its two soon to say. The bids have not come in yet and we need to see whether they will. That could happen next few weeks. Scarlet is twitter content to wait it out for the best offer or is it in any kind of pressure to sell itself . Sarah jack dorsey would prefer to have the Fourth Quarter to prove out his vision for twitter as a live form. I dont think theres lot of urgency except for the fact people have been placing their interest on twitter right now. The bankers will try to make it jack probably once a chance to prove this is my speculation, that the live video stuff can drive growth at twitter. Just someerhaps urgency from investors. Sarah frier joining us from San Francisco, thank you so much. Netflix shares popping 6. 5 in monday trading. Investors could be reacting to takeover speculation which has led the company also to disney. However the likelihood of a deal has been discounted. A slowdown ing at subscriber growth after a week second quarter. Netflix has declined to comment on any deal. Gopro wants to clear the air about it sales strength. And an early announcement from tesla sends investors into overdrive. This is bloomberg. Scarlet gopros new Cloud Connected camera hits shelves on monday. Its the first camera refinish two years. Its highly anticipated by investors who sent stocks surging. In addition to its flagship action cameras, they unveiled their longawaited consumer drone. A just days later, the biggest drone maker in the world came out with its answer to the karma, leaving gopro investors uncertain of the companys prospects once again. Of ohne sat down with ceo pro and asked him about prospect for the hero five line. Guest a lot of consumers are excited its the two most convenient gopros we have ever made and the two most connected gopros we have ever made. When you plug it in to charge, it can load photos and videos to your go pro plus account so you can access that footage with your phone and make an edit on the go. Just about tot capture great experiences, but we are and and two and storytelling solution. Brad gps, with technology, is a cheaper now . Nick 100 yes for the black edition. Care of five session is 299. That takes our best selling originalormfactor, the session is the second bestselling camera in north america but we have made it four control andvoice the ability to offload to the cloud, image stabilization and make it easily the most powerful session camera we have ever made and a great rather to the hero five black. Skepticism has been about your Financial Results since it has been a while since you refreshed the line. What does it mean for your relationship with partners like walmart and what do you expect this Holiday Season . Nick theres a misconception that demand has been waning. The rate at which our consumer customers are buying gopros oftheshelf, that rate purchase has never been better whereat was with 04 for people are getting confused is they are looking at our revenue slowed down to clear the channel and selloff all that in tory to make way for hero five. 2016 was admittedly a bit of a correction year because we entered to a product that confusing price points. Now you have two products are you expecting a record season . Nick we have hero black at 3009980 have karma. Brad how big of a part of the business to expect that to be . its going to be a phenomenal contributor to the ecosystem. Our customers can fly gopros and capture incredible aerial and handheld footage. Brad it is nicely full double. But since you announced it, you have a big competitor that announced their own foldable drone. Pushing the envelope on some features. Their foldablect drone to impact the market . You you had one and crashed it on your first flight. Brad for the record, my brother crashed it. It is currently shelved. Make what we have done is flying a drone extremely easy. We have Customer Service with replaceable parts and we are a very Customer First company. If you have a problem, we will take care of you straightaway. It is a technical failure, we will replace your karma, no questions asked. Muchg a karma will be a easier experience and consumer friendly, but it is more than a drone and all of our competitors are making drones. Capture aerial footage, thats all their product can do. The gopro karma is more of a hollywood in a back pack solution. You can take it to the beach and if you dont use it, its no problem because its so convenient it did not given your way of having a good time. Chinese makers are closer to the supply chain and arguably have a price advantage. Does that outweigh the Customer Service advantage you are talking about . Nick i dont inc. So. Ofma is 799 without a Group Without a gopro. Have it is, you can argued leave the most advanced yet easytouse personal ill making solution that has ever been, rivaling technology that you always hear about. Brad that is the already existing customer based owners. That but you can get it bundled for 1099. Even compared to anything our competitors are doing, its not only price competitive, its lower price than what we see being offered by competitors. We think gopro is delivering the most convenient drone solution at the most attractive rises. Brad i wanted to ask about snap chat spectacles is that a business you want to be in what do you think of the product . i think it is clever and inventive and the more Companies Like snap and gopro can help motivate and encourage the bulls creativity, the bigger the overall market growth. Scarlet that was nick woodman speaking with the executive editor of global coverage, brad stone. Coming up, how technology is taking up the supply chain and what it means for the bottom line. This is bloomberg. Scarlet microsoft has spent more than 3 billion building up its Cloud Infrastructure in europe, including a billion dollars in the past year alone. Its part of the ceo push to win over amazon and google. In an interview, sasha dela says it will open data centers in france next year and has doubled its computing capacity in the region. Microsoft is focused on special cloud offerings. Europe, for the past three years, a startup has tried to change the relationship that kids have with their computers. They make a colorful, doityourself kit that requires youngsters to build a kit from scratch and sees them off i series of coding lessons. Londonvance traveled to to visit their offices and learn what kind of longterm impact the toys might have. Founded in 2013, a startup based in london has built a doityourself computer kit for kids. And teaches0 youngsters about electronics and how to code. These three lovely children agreed to be our guinea pigs. Making ake a crack at camera. Should we let you guys get to it . Take it away. Is it fun to build your computer and suggest grabbing an ipad . Yes. Ask whats fun about it . It teaches you about tech. I want to be an inventor when i grow up. Thedude floating around office is alex klein, a former journalist who decided to give up on the most noble profession imaginable to help kids get their hands dirty with computing. November of 2012, we were playing around and you can do so many things they were sending it into space and under the ocean but we were having trouble getting started. So you wanted to make a kit simple enough for a kid to build themselves. Exactly. This generation is only experienced computers in the postjobs era. The notion was to break apart and let a person build a computer from the inside out. Its all about creating tools that inspire and encourage creativity. They are building apps worth millions, solving local problems in ways their elders never comprehend. If you give them something as canrful as a developer that make a robot or server, you will see what this generation can do. You want to make something that does your cooking, cleans up your room and fixes your stuff. That would be amazing, wouldnt it . That was bloombergs ashlee vance reporting. Coming up, we will get you ready for the week ahead in tact. Withto look forward to google taking on amazons at go with google home. Dont forget to check us out on the radio. You can listen on the bloomberg ius xm. Pp and on sir this is bloomberg. Mark im mark crumpton. Lets begin with a check of your first word news. The state Department Says the u. S. Is suspending participation in the russian talks to stop bombing in syria. It is disingenuous of russia to fight the United States threat to strip to cite the United States thread as a strategic stability. We seek a Strategic Dialogue but it is russia who continues to mark persist in stabilizing activities. Russia says the u. S. Failed to carry out its promises and syria. Columbia positive leaders say peacere willing out the plan is no legal effect because the deal is already sign. Votersected rejected the amendment. The plan calls for farc rebels their weapons. Turkish Officials Say state of emergency declared after a failed military cu in july will be extended for another three months. The state of emergency is allowing the government to carry out a massive crackdown, arresting some 32,000 people. The nobel prize in theology or medicine has gone to a japanese workgist honored for his on how cells recycle their content. Dayal news 24 hours a powered by more than 26 hundred journalists and analysts in over 120 countries. Im mark crumpton. This is bloomberg. York. Ust past 6 30 in new paul allen has a look at the market in sydney. Paul we start off in new zealand which has been up and running for 90 minutes and is already off. 5 following a tepid lead. Andave futures looking flat we are expecting declines with futures pointing to a drop of. 4 on a local index. Australiae bank of decision today, no change expect it or just a 3 chance of a cut. A record low amid an environment of weak inflation. Australiath bank of and other banks will face a Parliamentary Committee hearing scandals that have been plaguing the sector, including four Financial Advice not passing on cash rate cuts from the reserve bank of australia. All this amid an executive renumeration and record profits as well. Its going to be interesting to watch. Im paul allen for bloomberg tv in sydney, australia. Scarlet this is bloomberg west. Im scarlet fu in for emily chang. Time to dive into the text stories that are front and center in the days ahead. First up, tesla. Shares soared after the electric car battery maker announced on sunday that it beat analysts estimates for Third Quarter deliveries. It followed consecutive misses in the prior to quarters, so what does it mean for their ambitious sales forecasts . Us from detroit. Closed out its quarter on friday and if you come inside the bloomberg, you can see the number of deliveries for the Third Quarter some passes anything it has done up to this point. This quick toly come out with a date . Guest they had good news to share, so they wanted to share us to share it. The analysts were looking for about 20,000 deliveries or maybe 22,000. They came in at 24, so this has raised a lot of optimism about raising the target elon musk has said to sell 50,000 cars. What does it tell us about tesla possibility to prioritize or what it was prioritizing before . Was a great scoop about the memo sent to the employees, telling them to sell because theyre going to raise the more capital. They want to show they can be a profitable enterprise. All of this shows is when they put a push on, they can move the metal. Scarlet we have another chart that illustrates how tesla is building up its inventory. The white bar shows the number of cars used minus the number cars sold, so the inventory. The blue side is the value of their finished goods and the criticism has been tesla does not have enough cars to meet demand. As the company put that to rest now . Guest they certainly seem to be meeting demand now and they did eat to build up in the tory. They had the model us and the model x and theyre going to add to the complexity with the model three coming at the end of next year. They are trying to show they can juggle a lot of things in his was a good sign of that. Gadfly a bloomberg reporter pointed out that the last time they had a surge in delivery was 2013. Do we presume profitability will take a hit with deliveries jumping . Guest not necessarily. In the auto industry, if you sell more cars, you make more money. Hereshould be what we see and that is what is trying to show. Torlet we know tesla needs get