Reopen later on tuesday after lawmakers begrudgingly accepted a spending deal that will Fund Agencies through february 8. Weighing that against growth and corporate earnings. Global news, 24 hours a day, powered by 2700 journalists and analysts in more than 120 countries. This is bloomberg. Lets take a look at the markets. Australia has just close, up about. 8 on a positive day. The nikkei and the hang seng both over 1 . Bloomberg technology is next. This is bloomberg. Emily i am emily chang. Netflix turns in its best performance ever in the Fourth Quarter adding more than 8 billion streaming customers. We will break down the results. Plus amazon go is open. We open the doors for an inside look at the tech giants brick and mortar Convenience Store. Facebook makes a critical admission regarding its own societal impact. Why the social media now says he can have a negative impact on democracy and what it is doing. Netflix turns in a big beat. The companys biggest quarter ever. Subscribers additions be citations pushing the companys value above 100 million for the first time ever. It closed 2016 at a market cap of just 53 billion. Reporter lewiss shot joins us fromlucas shaw joins us from new york. Netflixs thesis on spending more money on original ramming original programming continues to work. Look at the slate of shows that they released. They had a new season of Stranger Things, the crown, new shows in the punisher, godless and mine hunter. They had this new movie, bright. Flex does not release ratings but based on some of the data that nielsen released about Stranger Things and the crown, those would rank as the biggest hits in the u. S. That explains how the add more than 8 million customers and a quarter. Take a look at this chart. It gives you a look at subscriber additions and the performance of this stock relative to that. It seems that the Stock Performance is becoming divorced from how many subscribers they had just they add. Subscribers are betting on this business is a whole without regard to subscribers. If you look at the actual fundamentals, netflix cash flow was 2 billion. They rejected it was going to increase or decrease. They projected it was going to increase or decrease. They are burning to money and they are just not that profitable. It is going to keep doing that across the globe and they dont want to miss up on an opportunity to get in on a stock that has been going up for five years. Emily Reed Hastings says the company took a big 39 Million Dollars charge just took up a 39 million charge. How does this have to do with the kevin spacey issue and house of cards. How much of this is other onjects that netflix led will never see the light of day . I believe that it has to do with kevin spacey because they had to adjust house of cards. The scrapped this movie about cordova about cordova all about gore depaul. The timing suggests it is kevin spaceyrelated. Emily we are going to continue netflix continue to monitor netflix. Joining us, howard owens. He is a veteran producer of streaming shows including, apple planet of the apps and biggest loser. You have been producing original content longer for netflix was in this game. As a producer, how much has this shaken up your job in the entertainment landscape . Howard it has really made our job more fun. Desperate areal global content players for these to be domestic distributors. These big desk netflix is a great example is building a global content premium content brand. We were excited to see the numbers of their foreign growth and they are excited to see where that is coming from. Obligate our company is taking a big bet on the growth of foreign content, particularly in emerging markets. Netflix is tapping into that. Building a Consumer Brand that is here for the future. New entryle is now a in the original content game. You guys were behind planet of the apps. What did you learn from that experience about apples strengths and weaknesses . Howard apple is a lean in company. The entire company got in and got involved in supported by that of the apps. One of the benefits is their ability to create Incredible Technology that they can use to deliver and drive premium content. Apples ability to not just create content but to create platform that can back in support interactive tv as well it gives apple a real advantage. Ite netflix and like amazon, just and potentially like hulu with the disney acquisition, there are now these amazing, Global Technology companies that deliver specialized content. It is not just domestic anymore. It is a global business. Me as a premium content creator want to take a guess take advantage, not only for global streaming, but also for the global streamers to start investing in local content. Emily apple has been snapping up good content, snapping up executives from amazon. What you think the prospects are for apple to take on netflix and amazon . Hao i think it is a big bet. Netflix and amazon have big it starts but also think amazon just apple is a Company Apple is a company that is very specific dna that fuses technology and content used for disturbing film and television. Apple is a very strong team. Team. Le has a very strong i would not bet against apple. Emily you have announced new backing along with any. This will go amd. This will go toward new adventures. What are the new ventures are most exciting . Same with acquisitions . Things aree of the content enabled. If you look at the apps like hq live that i was playing with my children last night. I noticed at 9 00 on the west coast,6 00 the west coast, 1. 6 million live petitions playing. There are new ways to deliver content. Heavily in a podcast business, meaning we have taken the most successful podcast and a beginning to create video content for the likes of amazon and oxygen and others to be announced soon. There are new ways that content is being shaped and being created and thus new dissolution mechanisms. We really like the ability for certain segments of the market to be mobile first. That content is really being created yet on a premium level. There are billions of people who have cell phones that uses that as a primary means of receiving video and other information. There is a vast need for content on these different kinds of platforms and emerging markets. We view that as a huge opportunity. Emily you have traditional players making moves. Fox, merging there. How does a deal like that impact produces like you . Producers like you . Howard i think it is good. One, should be hulu or should it be a different global streaming device or platform that disney gets behind, it is a nice check and balance for amazon and for netflix and travel. As a producer, it provides another buyer on a global level. It is going to be hungry for content. That is great for us. As suppliers and counting creators and content creators, these Global Players present a unique opportunity, not only for growth, but for new markets, and the ability to create new formats that are transportable. Emily howard owens from propagate content. Lots of things changing weekly. Changing quickly. You can fall long you can follow along. The biggest blow to read no to the renewable industry yet, President Trump decided to slap tariffs on imported solar panels. As much asll impose 30 . It with a handicap at a 28 billion industry. Solar Energy Industries projected tens of thousands of job losses. Again up, amazon is at it , further instructing the brickandmortar industry by reducing cashierless stores. Bloomberg tech is Live Streaming on twitter. This is bloomberg. Emily just last week, amazon announced a two dollar a month increase for prime monthly members. The spike in price will generate an extra 300 million annually for amazon. That 30 of amazons 60 million prime subscribers pay monthly. Whomated 300 million pay a lower rate. Amazon is making a play for the struggling 550 billion u. S. Convenience store industry unveiling amazon go to the public in downtown seattle. The store lets shoppers grab what they want and leave without paying a cashier. Joining us now from the brandnew store, spencer. Give us the lowdown. Spencer we have been here since lunchtime. At lunchtime, the line was around the corner. There is a lot of excitement. It has died down since the afternoon has worn on. You have an app on your smart phone, you get a qr code and you scan it. Once youre inside, you pick from sandwiches, salads and even meal kits, jenks drinks. Everything is billed to you automatically. You just walk out. They are tried to make that check out line jam a thing of history. Emily are there text to help . Are the folks there to prevent theft . Spencer that is not an issue. There are a lot of amazon people on board. Theyve gotten a part they got a part of the sidewalk cordoned off. They are limited by the fire code. Can handle the crowds but you can only get about 100 people in their and a time. In there at a time. They have employees was in preparing sandwiches and salads and fresh food for take out. They also have people who are consummate stocking and replenishing the shelves, as well as a small beer and wine section. Thereave to have someone to make sure whoever is purchasing is of age. Emily how quickly do we expect amazon to roll these out . Spencer go you broke up a little bit on me. How quickly do you expect amazon to roll out more stores . Spencer they have not broadcast anything. They are going to focus on the store for now. They have been beta testing for over a year. Jobshave hired enlisted for amazon go. Things like Site Selection managers, so we can expect them to bring this to other markets, as long as they are happy with what they are seeing in seattle. Similar to what they did with their bookstores. Emily how much do you think these stores could disrupt the big the brickandmortar convenience industry . Spencer the Convenience Store industry is very fragmented. Wasnt half of that is gasoline sales. They are not selling gasoline but more than 200 billion in food, moving toward fresh food. They are looking for a market for an on the go person looking for a quick bite to eat. It is like a mini whole fields inside. They havety is warehouses around the country but they are farflung. You dont know how something gets to your door. Amazon is try to get closer to customers and there is nothing closer to customers than Convenience Stores. They are everywhere. Emily spencer soper, thank you. Emerging, new reports that one of the most highprofile executives at twitter may exit. We will talk about his future next. This is bloomberg. Emily in the latest revolving door, coinbase is working to address user demand with this latest higher. A vp of operations. Over the last five years she held a post at twitter. The group handle millions of user interactions every month. One of the biggest executives at twitter could be leaving. Anthony noto is in talks with sophia to become the new ceo of this online lender. The previous lender left the company back in september amidst allegations of sexual harassment. Sears at twitter debt shares get. Itter debt what is happening . Big blow and big loss for twitter. As we reported, they are really gaining steam in the turnaround plan. Their shares are rallying. See noto asally key. He has really been this present force throughout all of the changes at twitter. He is the one that has been spearheading this quite video content strategy that has been a key role in present company. Emily the last time i interviewed anthony noto, you he got out of interview, he was not on the phone. We talked about how he has been the heart and soul of the company. Void . Uld fill that selina they will have a hard time filling the void for noto. He holds a very unique background. He was a banker for many years. He took twitter public. He was at Goldman Sachs for a long time. He has that traditional investment background. He has also proven that he is able to execute seattle, s as coo. Theres plenty of reasons why so five months why so far what was somebody with this background. Ceo thatighprofile they need to turn their business around after months of allegations of sexual harassment. Emily lets listen to a quote that we did with quote from having noto. Jack and working with the leadership team. We are put running the company as a team that is focused on specific priorities and we divide and conquer against those priorities. At the end of the day, we divide up the parties amongst our team. I wouldnt want to work with anyone else. Expiration is an inspiration. Emily his respect for jack. Mike jack just move on over to square and promote the ceo. Selina they are really negotiating price on twitter side how they are going to counter offer. It seems unlikely at this point that twitter would offer him the ceo job. Both of these Companies Square and twitter, these are his babies. He loves these companies. I havent spoke to us in person at either company that is complained about him being an absent tcl despite the fact that he is the ceo of two companies. Interesting it is that none of said divide and conquer. They have an important balance. As more been described of a deep, introverted thinker. Maybe more indecisive whereas noto has been described as the cheerleader, the army person that is going to get people to work. The take charge have a person. Bill be very hard to replace. Emily this will be interesting to watch. Thank yous much for that update. Coming up, netflix shares soaring after the Company Reported its biggest quarter and year ever. If you like bloomberg news, check us out on the radio and on the Bloomberg Radio app, bloomberg. Com. This is bloomberg. Juliette the yen strengthened as the bank of japan left policy unchanged, as expected. They voted to maintain strategy. Some traders are seeing this as a sign of finetuning of policy could be in the cards. Beijing also accuse washington of trade measures. There was a mixed reaction in asia. The International Monetary fund is warning about a universal recession. Fors forecasted at 3. 9 2018. The low productivity. The aging population. On and on. Future potential growth. To of that will continue weigh on prospects. Juliette global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. This is bloomberg. Lets check in on the markets late on tuesday. You can see a strong rally coming through. Another record high. , snappingclosing high the longest losing streak. Hong kong up by 1. 4 . Shares. Financial japan up by 1. 3 . The boj left its policy unchanged. Indias market at another record high. Lets look at the stocks we have been watching in the region. We are talking about those trade tariffs coming through. Electronics Lg Electronics is doing well. That is a Power Company in india, jumping the most in four at 136 million. It has broadbased buying across the region. A strong upside coming through from energy players, of. 9 . We are live from london at the top of the hour with daybreak europe. This is europe. This is bloomberg. This is bloomberg technology. Netflix shares surging, following a massive earning. The stock has been on a tear for the last 12 months, with a betterthanexpected subscriber growth. Paul, what would you highlight here in terms of where the growth is coming from . Aul we are focusing on subscriber growth. The majorityseeing of the growth is coming from the international market. Over 6 million new subscribers coming in from the international market. That is where the future growth of this Country Company is going to be. Market is much more highly penetrated. If you are thinking about longerterm growth for the next four years, it will come from the international market. Numbers, them the momentum is still very much in place. Emily what would you say about the money netflix is spending on original content . They say it is paying off, but do you think they will have to eventually pay the piper . Paul i think so. Netflix has to pay for them at some point. The good news for them, they are adding subscribers and they are paying more and more, generating higher revenue. Ing improved in profitability. Company where they will have negative Free Cash Flow up to the 3 billion. How are they funding the expenditures . They are going to the debt market. At some point they need to stop going to the debt mark market. They should be able to grow into it. Emily apple is arming up. They are hiring executives from amazon, sony, hulu has had a major hit with the handmaids tale. Disney is a more traditional player, but also showing that it can be nimble. Seeing think we are not netflix pullback at all. If anything, we are seeing them accelerate some of their investment. Close to half of that will be for original programming. They, by far, have the best budget in hollywood. They are writing checks. Some of the Technology Companies are starting to do their toes, announcing dip their toes. They are dipping their toes into the marketplace. I am thinking about whether one of those big Technology Companies, with deeper pockets than i do, what happens if they decide they really need to get into programming in a big way and recognize that online video is the growth . If they jump into the deep end, that would be a competitor for netflix. We have not seen that yet. Disney announcing to buy a lot of assets from 21st century fox. We will be watching how that shakes out. Thank you so much for joining us. Moving on, i would like to take you back to september 2016. Take a listen. Idearsonally, i think the that fake news on facebook, of which it is a small amount of , influenced the election in any way is a pretty crazy idea. Emily Mark Zuckerberg speaking there with our editor of economy. It really does feel like a lifetime ago that zuckerberg was defending his limited role in elections. Today the company has acknowledged the exact opposite. Social media seemed like a positive. Last years president ial campaign changed that. Discuss this admission, talk to us about the latest admission. Haunt those words will zuckerberg. Intoompany has dug deep how big of a problem this is. There has been a lot of reporting on the impact that facebook has had with the russian interference and other countries around the world, where dictators are using it for their own means, where facebook has been cozying up to governments. It is crucial for the company to figure out people realize the extent to how we have affected the outcome. In the tone of the reflection that zuckerberg has been doing, where does this rolling government fit into the picture . Emily we have spoken to facebook investors who have been on a tear about facebook responsibility. Even greateresting concessions from facebook, that and moved to a subscription move away from advertising altogether. Sarah the company will try a lot of things. Every few days, there is another thing they are attempting. They are going to take a poll from users about how trustworthy facebook is when it comes to news. Zuckerbergs framing of the new speed priority is different. News is moving from 5 of the content to 4 . They are trying to focus more on posts from friends and family. They are doing a full, conference of look at what facebook should be and how it should get there. Emily what can we do to make sure that it has a positive impact on democracy . How does it remain neutral, which is the ultimate goal . Sarah as they build out things , all thesengful terms we are hearing them say, i am not sure what that looks like on an earnings report. The company has been saying that they have a lot they can do to make democracy function better around the world. They are trying to register voters. They are trying to make information from ballots easy to see on facebook. You can see what your friends are voting for and why. They are trying to make it to know who the representatives are. They are trying to make it a little bit of a place where you can interact with the things that affect your community, whether local or international. It will be difficult for people to realize that those things exist. Emily you have been covering facebook for a long time. You do not often hear a company admitting this kind of power. What do you think russia mark does it seem like facebook is really this is do you think . Like facebook is really listening . The spotlight is on the right now. They have tried a lot of things that get backlash from the public. Of company is run by a lot people who are optimistic about how the platform can affect society. There is aht now, little bit of a shift happening, where they realize it is ok to talk about the ways in which we negatively affect society. Last month, there was another that spending time on social media, if you do it possibly can negatively impact your mental health. These are things that facebook of two years ago would never say. Emily calling on facebook to pay publishers. What do you make of that . Sarah outsiders will look to take advantage of facebooks willingness to compromise and change. The company is looking for outside perspective. If Rupert Murdoch wants to raise his hand and they may that solution is paying me a little more money, there is a chance that facebook will do it. I give him credit for trying. Thank you for your analysis. We talk about u. S. Expansion plans and what it could mean for tmobile. This is bloomberg. Emily french president has long been calling for paris to be an innovation hub. Facebook and google are working to fulfill that desire. Google says they will create an ai lab. Facebook says it will double its ai lab staff there to 100 by 2022. That includes 12 million in hardware. Tmobile is the Third Largest wireless carrier. It is going to refund refinance its debt. Howaught up with the ceo on the u. S. Dollar is affecting their expansion land. Making our independent of the dollar. It is helping us big time in the conservation of the profits in the u. S. Everything has to do with translation of dollar. Related tothat is transaction is getting hedge. Whatever,dividend or this is being hedged. Going forward, i think being in the u. S. Is great. Market andy liberal a growing market. It is a market where the payback of your investment is something that is predictable. That ist something regulated as it is here. Reform, we are getting here. We have big local content. I am veryle optimistic with regards to our u. S. Investment and people working on the ground for tmobile. Do you expect to invest more in u. S. Given the new tax bill . I think i think we have a sufficient case. We have a clear path to deploy the spectrum, which we gained unbelievable success. 31 of all the spectrum, so we can now improve the coverage of our network in rural areas. Area, somers in this it is very exciting. Company is at full speed. Emily that was the ceo speaking with bloomberg. To Goldman Sachs, raising price target. Growthl pick up earnings. Coming up, what comes first . The flying car or a fully autonomous a surprising prediction. A feature i would like to bring to your attention, our interactive tv function. You can find it at tv on bloomberg. You can send our producers a message. This is for bloomberg subscribers only. Check it out at tv. This is bloomberg. Emily now to breaking news out of washington. The house is voting on the spending bill after legislation was passed in the senate. As theysse broke expected a deal from Mitch Mcconnell that would fund the government through february 8, in exchange he agreed to address democratic demands that they were stored protections against deportation of Illegal Immigrants ought to the u. S. As children. Says flying cars may come within the next 10 years. He made these comments in his first public appearance at the Design Conference in munich. Joining me is Senior Executive brad stone. Is what he is saying realistic . Brad flying cars . I do feel a certain responsibility. It is feasible. Maybe not in the u. S. With safety concerns, but we broke some of the first stories on socalled flying cars. They tech off vertically and land vertically. They are very quiet. I think companies that are working on it are pretty far along. There are other private companies around the world. You could start to see this technology rolled out in some developing nations, where you cannot really traverse the streets. Massnot think any technology starts off as inexpensive. I think it is five to 10 years away. What do these remarks signify about his longterm view on business . Busy,i think he has been bringing the companys skeletons out of the closet. He talked about expanding in germany with conjunction with government and regulators. Ishink the fact that he still talking about autonomous , while he flying cars wants to run a profitable company, he still has a vision. He is trying to push uber into the next revolution. Is still going on. Cooper is investing heavily there. These are transportation options. Autonomous cars seem a little closer. It is like the future of transportation have options. These are two of the big ones. He is also making overtures towards regulators, given all the regulatory the faculties. How important is this trip for him . Brad i think it is big. They are still recovering. ,he more he can get out there the more he can apologize for past behavior and talk about conjunction with regulators. These are all good things. What was fundamentally ailing them was some kind of dealing public perception. Public perception. Did they want to punish uber a little longer . Brad i think we saw it in london, where the appeals process is still ongoing. When they went over there and met with the mayor, they all had great things to say. I think the feeling there is that they will get past the regulatory problems in london. I think it is one of the reasons , so he coulda coo be diplomatic chief. Emily you have all this in the new edition of your book. Brad stone, thank you. This tuesday, our bloomberg editor in chief will be speaking with the uber ceo. Be sure to catch that conversation. That is it for this edition of bloomberg allergy. Technology. That is all for now. This is bloomberg. Anna good morning from bloombergs new European Headquarters in the scene in the city of london. Puts newpresident tariffs on trade partners including china. Manus washington real estates. Donald trump signs a spending bill thats ends the shutdown. Anna the boj holds steady. It maintains its massive stimulus program