Are expected to rise as storms, floods, wildfires and droughts become more frequent in coming years. Global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. I am alisa parenti. This is bloomberg, Bloomberg Technology is next. Emily i am emily chang and this is Bloomberg Technology. The iphone x hits preorder markets this friday, but there may not be enough models to go around by christmas. Why shipments are reportedly cut and the potential implications for apples bottom line. Airbnbs unexpected vacancy. The china ceo walks away after just four months of the helm. What it means for the home sharers future in beijing. And the first steps to increase advertising accountability begins on capitol hill. First, with the release of the iphone x around the corner, nikkei reporting initial shipments expected to total 20 Million Units of iphones this year. Originally they forecasted 40 million. Apple has struggled to fix a lead screen, 3d sensors. What exactly is going on behind the scenes and what is it mean for the release and apples upcoming earning report . I want to bring in cory johnson and alex webb, who covers apple for us. What we believe to be true based on this nikkei report . Alex there are big innovations. Screen and the 3d sensor array at the top of the phone. They had supply issues. They reported problems with the 3d sensor. There was also the thing that identifies and matches your face. They had problems in the supply chain. That points to the fact they have struggled to get through those issues. One caveat, apple prefers the has less supply than more. There was a very good story about information this week, the snap spectacles. There are hundreds of thousands sitting in spectacles in warehouses. They expect demand to continue into the new year and beyond. Emily and the lines always make for good video on the day of the iphone release. We talk about this every year. Cory for seven years. Emily how little is too little . Cory what apple has done around managing inventory has never been done in history. No company has had a run of apple, 10 years plus, without inventory problems. Whether it be too much or too little. They have an enormously successful product and have managed inventory better than any company in history. It is a miraculous thing. Because it was tim cook doing it. Himself probably made available for the ceo job, qualified himself, because it manage these things well that steve jobs had screwed up in the past as ceo. They are due for a scrub. If they do have a scrub, it should not be a surprise. There is another question about demand for this phone. A more substantially different phone and any phone since the very first iphone. Emily also more expensive. Cory it is also a lot of bread. The fan boys will be out there, people like me come out there at midnight. The question is, what will the demand be like down the line . And the reviews from the community . The facialt like recognition, the lack of a button, or the tweaks are not well received at an extraordinary price. Emily how are consensus estimates changing . Alex we have seen massive changes. The thing which is going to be interesting, when apple has their earnings. They will give a forecast for the current quarter, which ands december 31. Ends aroundexpect comments whether the supply issues are hitting them. Emily apple shares slightly up today. Maybe expectations were not great for shipment in this quarter. It is not a big leaver in terms of stock expectations for this year. But what the sales are into the Fourth Quarter is what is going to matter the most. And what demand will be like. Alex the wrap up toward the iphone x we have been talking about the super cycle, not, how are sales going to be in the christmas quarter . People, i expect, are not investing in apple stock. But what happens between november 3 when the iphone hits the shelf, and december 31 . That is what the investment cory they have to make numbers. It also speaks to how they guide wall street. Alex questions about the havearity of the iphone 8 had greater impact than the expectations of the iphone x. People are buying the iphone because it is an iphone, not necessarily because it is better than any other product. Emily lets talk about that. What are we seeing in terms of demand for the iphone x relative to the iphone 8 . There were expectations it would cannibalize iphone 8. Consumers might still buy an iphone 8, but with the two in their hands, will they pay more for the facial recognition and animoji . Is there any question whether they will be able to meet demand . Itough the initial few weeks is one thing, but are these supply issues still going to be happening over the longer term . It seems they have broken the back of them and are getting yields which will satisfy demand. But on the opening weekend, apple sells close to 20 million phones on opening weekend. There are big question marks around that. This the orchestration of event where they make sure though longs article lines are longer than the phones available does not tell us what 10, 12 weeks or months later. They announced preorders coming on friday and they did say, we will have some iphones in store. Arrive early to ensure you get one. That is very orchestrated. Alex webb, who covers apple, and cory johnson, our editor at large. Preorders start this friday. At t reported earnings after the bell, they fell short of forecasts for Wireless Subscriber growth. A disappointment after verizon reported betterthanexpected gains. At t is looking to a purchase of time warner to provide new growth opportunities. Has stalled or is in decline. Twitter is taking steps to ensure russian meddling in u. S. Elections is a thing of the past. Will its latest move be enough to stop future interference . Bloomberg technology is Live Streaming on twitter, check us out weekdays, 5 00 p. M. In new york, 2 00 p. M. In san francisco. This is bloomberg. Emily facebook is testing its separatingn two, news post from personal newsfeeds. It was tested in six countries. They said the goal is to understand of people prefer to have separate places for personal and public content. There is no current planned the charge for the new distribution. Twitter, facebook and alphabet will not be sending their top executives to testify in front of congress on november 1. Instead, they will send their top lawyers to answer questions on how russia interfered in last years president ial election using their platforms. Twitter is rolling out a service to show who is advertising on the social network and how much they are spending. This is part of the response to prevent foreign actors from using twitter to manipulate elections. Joining me now to discuss, selina wang. What you make of these policy changes . Far one of they most sweeping changes the social network has ever made. For twitter it is a big turnaround from their initial response. The first time they presented to congress, senator mark warner said it was deeply disappointing, so inadequate, they were clearly unprepared. Now we just saw mark warner tweet it is a great step. How that is going to work, they will have a Transparency Center available to any user of twitter. They will see every ad on twitter, how they are being targeted, how long they have been running for. Have apaigns, they will specific section to show the ad supported by these organizations, this is how much it costs, who is backing it. This is leaps and bounds from the beginning, where they were under so much criticism for being very untransparent. Emily will i immediately be able to see who pay for that and how much the company paid, or do i have to click to a separate site . Selina to show an example what a political tweet might look like, it will have maybe a different background or coloring. We do not know yet what the exact details will look like in terms of the cost. But i am sure it will lead to another area to click on the link. Emily how does it compare to what facebook said they will do . Lotna facebook has done a since the beginning. Sheryl sandberg, mark zuckerberg, hopping on the phone with people in congress. Facebook said they will hire thousands of people to get these vet these ads. Twitter has not said it makes sense to hire new people and reboot and get them up to speed on this issue. It does seem like facebook is putting even more manpower to this. But with this policy, twitter is making a clear change in demarcation where they stand. Emily how quickly will we see changes in effect . Selina hopefully soon. They have the testimony to congress on november 1. They want to show they are making progress on this before that. It is important to mention, this only addresses a slice of twitters issues. Another Problem Congress is looking at is a bot problem. It does not cost any money for the bots to be made. Emily and online harassment, twitter has said they will be more transparent about their workflow, how their approaching the problem. How is that being received . Selina the entire rose mcgowan situation was a pr nightmare for boycotted theen account, because of the Sexual Harassment case. The feedback i have heard, it is good, a step in the right direction. It is great people can flag when something is an appropriate, they will be harsher to people clearly harassing other people. But this is too little, too late, and there is a big controversy over the way they prioritized the abuse and flagging system. People still think they prioritized celebrity accounts, verified accounts, over the average user on the site. Emily something we will continue to follow and i know you will keep us apprised. Happening later this week. Selina wang, thank you. Bloomberg lp is developing a global breaking news network for twitter. After just four months on the job, airbnbs china head is leaving. What it means for the company in such a vital region. This is bloomberg. Emily amazon is trying to boost its product to videos to take Holiday Shoppers from wandering from Googles Youtube to facebook. This is for those that review products before purchasing items. Products include electronics, housewares, baby and tech products, as well. Airbnb has long regarded building a brand in china as vital. Now the company is facing a huge obstacle. The head of the airbnb China Business has left just four months after taking it. Hong ge told colleagues he is leaving the company for another opportunity. His departure shows the struggle airbnb faces in china, where protectionist laws and fears competitors have impacted other rivals, like uber. Olivia zaleski, what happened . Do not know exactly why he left. But he left after only four months, which is pretty remarkable. Especially at such a big company where people are really excited about it. This speaks to the larger issues airbnb is having in china. They announced in 2015 they were planning to break off a separate corporation, called airbnb china, and they would have a separate ceo for the corporation. They spend almost two years searching for a ceo and could not find anyone, so they hired someone internally, hong ge. And he left after four months. Emily they announced the cofounder of airbnb would come become china chairman. In asia. To nate hear what he said about the potential of the china market for airbnb. We have been adjusting to china recently. Chinese travelers are going all the way around the world, the fastestgrowing segment for international travel. We have a big campaign there now. Growth in singapore and elsewhere is a result of chinese travelers using airbnb to explore the world. Emily you wonder if they are running into the same challenges of opening a business in china every other u. S. Technology company has faced come out like google and twitter, who were blocked in china. Have those challenges been, as yet, insurmountable. Olivia they are astronomical challenges. You are dealing with government regulations that often feel extreme to u. S. Company. All sorts of competitive moves from these Copycat Companies that really have a strong ground game in china. Also, hiring is very, very difficult. Challenges airbnb faces is hiring someone with that entrepreneurial, scrappy sense, who is also comfortable playing by the rules and following government regulation. Any idea who have might replace them or if they intended to replace him . Olivia i think they intended to replace them, but it could be another two years at the rate they are going. Nate is a great option for now. It is a situation we have to watch closely. Emily what products have they made in china . Had aboutst your they 80,000 listings in china and now they have about 120,000. They still face problems with fraud. If you compare them to a local competitor, the other has 600,000 listings. You are looking at a situation amilar to uber and didi, homegrown competitor that is so embedded in the society and is built a name for itself, it is difficult to get people to change their brand loyalty. Emily do we have a statement from airbnb on this yet . Olivia they gave no comment on hong ges departure. Emily olivia zaleski, thank you for joining us. A few other startups making headlines. Uber starting new ways for drivers to be compensated. Starting in october, kluber drivers can make more money on trips, as well as a fee on top of standard trips. They are also adjusting rates for late cancellations and drivers will learn more per minute if they have to wait longer than two minutes for a passenger. Iconicd taylors Flagship Store has been sold. Meantime, parent hudson bay has joint venture. K it will help them offload debt. Has been outgrowing its current new york headquarters, a currently operate in 56 cities around the world. Allegations of gender discrimination in Silicon Valley are anything but new. But one lawsuit could be a game changer if the plaintiff gets permission to represent over 125 female engineers. If you like bloomberg news, check us out on the radio, Bloomberg Radio app, bloomberg. Com, and sirius xm. This is bloomberg. Who knew that phones would start doing everything . Entertaining us, getting us back on track, and finding us dates. Phones really have changed. So why hasnt the way we pay for them . Introducing xfinity mobile. You only pay for data and can easily switch between pay per gig and unlimited. No one else lets you do that. See how much you can save. Choose by the gig or unlimited. Xfinity mobile. A new kind of network designed to save you money. Call, visit or go to xfinitymobile. Com. I am Mark Crumpton in new york. You are watching Bloomberg Technology. Arizona republican senator jeff flake on seek reelection. He was highly critical of President Trump and said we must stop defending the conduct of some and our executive branch. Creates realder hard and insecurity and our country and looks for someone to nothinghere is perhaps more devastating to a pluralistic society. Senator flake accuse the president of undermining american democracy. Flake said again there are times when we must risk our careers. Me. Is such a time to you bob corker is calling on the president to stay out of the tax overhaul. Untruthsponded, a macronpresident emmanuel and the irish Prime Minister say they are ready to discuss the contentious issue of taxing internet giants. Leading the tax charge in europe, saying it is not fair Internet Companies dont hate taxes where they make most of their money. Global news 24 hours a day powered by more than 2700 journalists and analysts in more than 120 countries. This is bloomberg. I am Mark Crumpton. It is just after 5 30 p. M. In new york. My colleague paul allen has a look at the markets. Good morning. Good morning. New zealand trading this wednesday morning. Off. 1 despite a positive lead from u. S. Equities. In japan, nikkei futures strongly higher, up. 1 percent. In australia, futures indicate currently up. 25 , so we could have a bright start in store when trading gets underway. The aussie dollar might move when we get Third Quarter cpi. 8 instimated to expand the quarter, giving us an annualized figure of 2 year on year. The big event today is the unveiling of the Politburo Standing Committee in china. More from Bloomberg Technology next. Welcome back to Bloomberg Technology. Chang. Ily the groundswell of women alleging discrimination is shedding light on the rocky terrain women faced in Silicon Valley. A former engineer at twitter filed a suit two years ago, alleging the company systematically for the advancement of female engineers. She has been gathering data and believes she can prove that twitter stacked the deck. She plans to ask a state judge for permission to represent 100 33 female engineers at twitter. This would be the first a group case of its kind in Silicon Valley if certified. Twitter has rejected these claims in court filings. Joining me now is reported who covers these cases and in employment attorney. A lot of these cases get dropped and settled and attorneys dont take them. What makes this case different . Wong herself. She feel strongly that she was denied a promotion due to her gender. She feels her contemporaries at twitter, other female engineers, have also been denied advancement and she is willing to take this case to trial. Emily how do we know she was denied the things based on her gender and not performance . This is a classaction case. Cases, this clinician they are individual cases. She is seeking to represent all the women engineers at twitter. What that means is basically the promotion process, while maybe it was not devised to discriminate against women, the impact of the process adversely affects women. To put it simply, what we are saying is it took women longer to get promotions and fewer women had promotions and we might expect. Emily ellen pao felt passionately about her case. What makes this case different . Ellen paos case was about ellen pao. There were discrimination claims in her suit, but there was a lot of harassment, more focused on. He harassment and ellen pao has jason was explaining, this is about a systematic highest at twitter bias at twitter against women. Emily twitter did give you a statement saying twitter is deeply committed to a diverse and supportive workplace and we believe the facts will show that miss wong was treated fairly. What is the likelihood this get certified as a classaction lawsuit . There is no precedent. What this will turn on is the is able totina extract from twitter and marshall in her favor. Extracts able to numbers and data that support her case, it seems like there is a good chance. It all depends on that. I have seen some of those numbers. They have changed. There is a dispute between tina and twitter about those numbers that will be taken up in court this week on thursday. Emily what can you tell us about these numbers and what they show . Into theesitant to get nittygritty of the evidence of this case, but the data will be really important for us. What we will have to show is that fewer women were promoted then statistically we would think should happen. That is to say that more men are being promoted then women. We are still working with twitter to get that data. There are still bumps in the road, but i am confident that is what the data will show. Emily i interviewed megan smith and she had this to say about the broader discrimination that faces women in technology. Take a listen. When you get it, it is hard to understand it as a pattern. Emily she says it is almost classaction, speaking to this idea women in tech might have a broader case here. Certified, what kind of president could that set . Is an important case for that reason. What makes it special is this along with a case against microsoft is very far along. Class certification is a big hurdle. If they get that and a decision, it would be in normal sleep influential for other judges looking at similar cases Going Forward. Emily we have seen many sexualharassment allegations, especially in the last year. We have seen men get fired. Some people has said if ellen pao filed her suit today, maybe she would have one. Do you think the environment matters or will have an impact . The environment matters in terms of decisions. It matters for judges what cases came before. I dont think the climate matters for judges. , but i think the way the is ine shapes these suits terms of encouraging and motivating other women to come forward. You begin to see more of these cases, but the outcomes depend on the legal issues. Emily have you been talking to other female engineers at twitter, and what do they say . We havenk the folks spoken with say clearly there is a problem. If you look at the statistics from when we filed the case in 2015, look across twitter, 35 were women. If you look at the technical positions, engineers, less than 10 of those folks were women. Have spoken to seems to agree that that is impacting the work environment, just the fact that the population is skewed so heavily towards males. Emily next steps . When will we know for sure . The next step is class certification, which we are hoping we will have a decision as early as march next year. Once that is done and assuming we are able to proceed as a classaction, then we need to get more data to see if we can really prove what what we are saying is happening over there. Emily thank you both. We will keep following the story. Is developing a global breaking news network for twitter. Coming up, we hear from the billionaire investor who through the Weinstein Company a lifeline. Why tom barrett may invest in the studio and how does he envision the studio Going Forward. This is bloomberg. Billionaire tom barrett through embattled film studio one Steen Company a financial lifeline last week, likening the studio to a critically injured patient, adding that it can be revived. He said down with bloomberg tv at the future Investment Initiative in saudi arabia. I dont know if we have come to the rescue, but the company itself, if you recall, we purchase miramax. From disney, 2010. The companyh was the weinsteins had sponsored. 750 films, 750 projects in the can. It was a great acquisition from disney. We were familiar with the portfolio, the library, and the process. Why do you say you havent bailed them out or rescued them yet . Theren we say rest dude, is a big difference between the ones teens and the company. And theeinsteins company. Harvey, what ever the accusations are coming his conduct was totally unacceptable, reprehensible, and unacceptable on any terms, so no one is interested in salvaging a company which would benefit harvey. Of 100 15 individuals, a tv production company, an independent Film Production company, a distribution company, which has counterparts that rely on stability. If the one steen element could weinstein element could be removed and the around it could be addressed and the content of the company could continue on, whether that can happen or not is a question. When you say the weinstein element, you mean bob and harvey . Bob is in a satellite position, fortunately or unfortunately, and the benefit of his name is also the deficit of his name, but he has been very capable at his own business. Weinsteins inhe what ever manner needs to be done without being punitive to bob, who has no culpability apparently in the process, and nevertheless, the counterparts want the weinsteins gone, and how that gets done is the issue in question. Can you tell at this point whether you will buy it or not . No. When will you know . Soon. Any idea what it will cost . We are under a nondisclosure agreement. You have hundreds of creative people whose lives are in the offing here. I would not venture to well, lets try to scale it. Deal,x was a 660 million a very big film library with some famous titles. Is this as bible and asset as that was . Asset as thatnd was . Liabilities that arise from the acts of harvey right now. Which of those liabilities are company one to the an ongoing basis is a rubiks cube. It is very difficult. This is the first objective. You have a patient dying on the table. You need to revive them and get them to breathe first. If you can do that, they can walk through it if they can walk, you can get them in the race. It is a real issue. With erik barrett schatzker in riyadh, saudi arabia. The House Intelligence Committee gives us the latest news on the investigation into russian meddling in u. S. Elections. That is next. This is bloomberg. Back to the continued investigation into russian interference and the 2016 u. S. Election. Lawmakers held their first hearing today. The Bipartisan Legislation will require online advertisements to disclose the same information about their funders as radio and tv ads. Joining me now is eric swalwell, who represents californias 15th district and is a member of the House Intelligence Committee. What is your take on the honest ad act . More information is better, particularly knowing foreign adversaries will see two weaponize are social media platforms and undermine our democracy. My mom ornt to stop constituents from posting their political believes, but once they post political beliefs in a is annated way that effort to undermine a democracy, then transparency at the very least should be expected. That is what these pieces of legislation seek to do. Companysuld the responsibilities, whether facebook, twitter, or google, should they have to keep track of every single ad, or should that be someone elses job . To post what free we believe. I dont want to limit that at all. If it is a more coordinated way with a high volume of users, then i do think there is a responsibility to understand who is posting and whether your platforms are being used by americas adversaries. Amount in ad spending that is, or what number of users targeted would be, but we now know other countries will seek to undermine our democracy with social media. We should try and prevent that. Emily trumps a digital director, former digital beforer, testified today the committee. What can you tell us about that and his ongoing role in this investigation Going Forward . Go into whousually the witnesses are other than to say this was a digital crime that occurred. There was a hacking of Democratic Committee emails, john podesta, the perpetuation of fake news through social media and twitter. That is what russia did. We want to understand whether they work with anybody on the Trump Campaign. We are seeking to interview anyone who worked on the trump data operations to see if there was a partnership with russia. That hopefully we can report to the American People soon. We also have an open hearing where the public will hear from social Media Companies when they found in the campaign. Emily we will be covering that on november 1. The progress on the russia investigation, take a listen to what w he had to say. So you willgress, have some partisan bickering at times, but i do believe this investigation is proceeding in a it is being and done in a bipartisan way. We should get to the bottom as quickly as we can. I have always said the russians are not going to stop. Emily im wondering how you would characterize progress in the investigation. That alright needs to intervene to keep kevin nunezs fingerprints off it. How badly has he hampered this investigation . The best shield against the future attack is unity among lawmakers, and the best way to sharpen russian swords is this unity. The russians scored a major victory today with when they announced they were going to go back in time and look at wild allegations about hillary clinton. Russianshat allows the to continue to do the work that they do trying to undermine our democracy and use that chaos as a weapon. Just agree that we were attacked and we have a responsibility to identify how we were vulnerable and whether any u. S. Persons worked with them. This unity will only make the next election worse. Emily to the extent that you can share, what new evidence have you uncovered . We hope to have a report soon. I expect the november 1 open hearing, we expect to report some of the digital evidence we found as far as social media, but my goal is that it will be a deal classified report to the extent possible. It will tell the American People what russia was doing and who they were working with, but also make recommendations about what we can do Going Forward. Seen a deep willingness and eagerness on the Trump Campaign to work with the russians, whether roger stone or orter page going over there, the email saying we can work with putin and engineer this for our boys. We will have to see if that materializes to a partnership. Emily you have talked about the lack of interest of some gop colleagues in this investigation. Deal have any concerns about the public in general losing interest in this investigation or the investigation itself losing steam. The public knows and values our freedom to choose. This is what this is about, who gets to choose of the ballot box, us or one of our enemies. Every american republican or democrat takes that seriously. Emily representative eric swalwell, thank you for joining us. Great to have you on the show. Finally in todays revolving door, mike hawkins is leaving to take the chair of Sony Pictures television. Freer has been announced as his replacement as more consumers ditch cable for webbased alternatives. That does it for this edition of Bloomberg Technology. We are Live Streaming on twitter. Check us out at bloombergtechtv. That is all for now. This is bloomberg. Announcer from our studios in new york city, this is charlie rose. Charlie the legendary chairman of the Media Company condon at 89. Ied on october 1 newhouse promised some of the most recognizable and celebrity magazines anywhere. , the new yorker, folk, gq, and vanity fair. The people who worked with me join me now for a conversation about his legacy. Joinin