List of businesses and individuals at risk for u. S. Sanctions because of links to russia. Nearly a month after that list was due. The penalties were required by sanctions bill Congress Passed in july. Another highprofile republican retirement could be on the horizon. The atlantic reports orrin hatch is telling friends he plans to retire at the end of his term. The atlantic also reports mitt romney plans to run if hatch steps down. Global news 24 hours a day powered by more than 2700 journalists and analysts in more than 120 countries. This is bloomberg. Emily im emily chang and this is bloomberg technology. The iphone x era begins, but the waiting. The waiting period goes into overtime. Expedias lousy summer. Shares dive on the heels of an Earnings Report that disappointed. We will hear from the new ceo. A 450 million tie up that puts the self driving sector on notice. The ceo joins us to discuss the partnership. If you havent already preordered your iphone x, get ready to wait. The first batch sold out in minutes in places like california, the u. K. , and hong kong. Apple said demand is off the charts. Demand for the iphone x coupled with recent apple supply issues means it could take up to six weeks to get your hands on one in the states. Joining us to discuss, brian white. And, roger, managing director at elevation partners. Roger, i want to start with you. A lot of things make this iphone update unlike any other. First of all, there was the iphone 8 just a few weeks ago. A major design upgrade. How do you expect the demand curve to play out . Roger the category itself is so mature that you wouldnt expect explosive growth. Apple has a couple things playing its way. The thing with the x is they do move a bunch of technology pieces forward in a really important way. Overlookhardware folks is the other stuff in the apple ecosystem. With what just happened at equifax, security should be on the minds of every smartphone user. Apple is beginning to differentiate from google and the android universe. Likely to play in their favor. With the x, they are bringing a product at a very high price point. It is going to be interesting to see how that affects the demand curve. The ecosystem is becoming more differentiated in a way that is going to be valuable to people. Emily brian, what are you hearing when it comes to how supply will impact demand and how many phones are going to sell . Theres a shortage situation. We were in china a couple weeks ago. The issue is not totally complete. They are going to be able to ship, we are thinking, 27 Million Units in the december quarter. Things are progressing. That has really been the issue. Emily roger, what do you make about this new strategy . Roger the way we need to look at it is, there isnt anyone out there buying their first smartphone, certainly no one above the age of 18. What you have is a market that is segmenting in ways that apple can get to buy having a broader product line. There are a lot of people for whom the original formfactor is still the way to go. There are people who want to have all the latest technology pieces. I like apples strategy. Effectively, they have four or five different products in the market at the same time. Strategy wortha trying. The 6 and 7 are a lot cheaper to make than they were when they first came out. I like that apple is going to have low price point phones that do the full apple experience even now that they have these higherpriced phones. Emily when it comes to the iphone x, brian, will the fact that this phone is more difficult to make, and they are having supply issues, will that impact unit sales . Theres a couple interesting dynamics. One thing we learned in china, there is a voracious appetite for this iphone x. They are raising the price here. The other thing we noticed was the iphone 8 was fairly muted, but there was a trade down to iphone 7. They are really able to bifurcate the Smartphone Market with this strategy. Now they play in the ultra luxury segment and they can offer lower price points with the iphone 7. I think some of this will take a little revenue away from the december quarter, but it is going to make a less seasonal march quarter, a less seasonal june quarter. What we saw today is this narrative around weakness of this iphone cycle was really put to rest. Emily roger is nodding vigorously. Time, does this wait this open an opportunity for samsung or google to get in and steal iphone customers . Roger were going to find out. From apples point of view, there is a smoothing effect of having more products in the marketplace. It may be that the 8 winds up becoming more successful when the 11 comes out. From apples point of view, some people need a new phone now. They are going to wind up with an 8. A lot of people will say, the 7 is a really capable phone. Im going to take one of those. When you are in a mature market, having more products at more price points is a plus. Emily analysts are projecting an average revenue at 86 million for the holiday quarter. With Apple Earnings coming next week, what are you expecting . Brian i think the earnings and the outlook are going to be less vibe aroundhan the this iphone x cycle. Any revenue we dont get, you are going to report that in the march or the june quarter. It is the iphone x cycle that matters, not the quarter or the outlook. Emily brian white, thank you so much for joining us. We will be covering Apple Earnings next week. Roger mcnamee is sticking with me for the hour. Facebook, twitter, and google have agreed to another hearing on capitol hill. To lawyers are confirmed appear before the Senate Judiciary committee on october 31. The next day, they are scheduled to attend more hearings on russian exploitation of their networks. Facebook said it will start disclosing more about political ads. Political advertisers will have to verify their identities and locations. Their ads will be appended with a paid for by disclosure. Were going to talk about that more later. Expedia tumbling on the earnings results. We will hear from ceo mark about what happened and if Online Travel can bounce back. This is bloomberg. Emily shares of expedia sank in fridays trading session, marking the worst performance since 2013. The site posted earnings that missed expectations, blaming hurricanes for the drop in bookings. Ceo,ght up with expedias who took the helm in august, and discussed the results. The shortterm results are all about the weather. 15 million to 20 million of impact from the storms. We expect another 10 million next quarter. We are investing into strength. We have over the course of the last three years tripled our ability to add new properties. Strength, we want to invest in. Weve also taken homeaway from an online listings business into a real ecommerce business. We look forward to demonstrating solid results on the back of the investments we announced yesterday. Emily if we continue to see the adverse weather patterns due to Climate Change in the u. S. And worldwide, should the market reevaluate expedia and the travel industry as a whole . I think it is too early to do that. Ive been at expedia for 11 years. Anytime we see natural disasters, volcanoes over iceland, hurricanes or storms in the u. S. , theres an impact in the near term for that destination, but generally travel patterns change. Humans like to get out and explore the world. Storms the rest activity for a depress activity for a shortterm. Emily you said that trayvon go, your Hotel Comparison site, will also have challenges. Tell us about the core problem and why it is not living up to its expectations. Mostivago is one of the wellknown brands in travel. Theyve got a Management Team that has built this business from nothing into a very significant business. It is an advertising platform that advertisers love to be part of. What is happening is that triv ago is changing the way the marketplace works. It can cause some volatility. Advertisers are trying to test what is it that makes the channel most attractive. Trivago is testing how they make the marketplace more attractive for advertisers. That is causing some volatility. Given that this is a great business loved by consumers and advertisers, after this volatility, things will normalize. Emily the u. K. Just launched a probe into Hotel Booking sites including expedia and trivago. How much of a concern is this . This is about marketing tactics, what they are calling pressure selling and how discounts are applied. We are a leader in this interest we and we have been helping the u. K. Look into this matter. Without getting into the looking we are open to at all the practices and making sure consumers are being treated right. That is what we strive to do. I think everything will be fine. We are working with the u. K. On this. Emily in terms of international expansion, which markets are you most focused on . The world is our oyster, is what i would say. It is a 1. 3 trillion industry. We are number one in the u. S. Notnd the world, we are number one in many countries. Our focus will be to establish that position. Relevanta is, locally on a global basis. Were looking at europe, asia, latin america, and saying, what are the most attractive countries that we can establish a number one position for the local consumer . Emily you became ceo when Dara Khosrowshahi went on to become ceo of uber. Seems like a natural fit. Have you had any discussions to that effect . Yet, but weangible know how to get hold of each other. I think theres a possibility for something great. I look forward to talking about this in the future. Emily you said the focus now is organic growth, not m a, which was very much a focus for Dara Khosrowshahi. You said a company like Hotels Tonight is on the lets have a beer and talk about it list. How long is that list . The list is long. M a is in our dna. I was involved in all the acquisitions weve done. We will continue to look for acquisitions when they make sense. The essence of the message is, we have assembled an incredible portfolio of assets, and we are a leader in this industry. Now it is about us becoming more locally relevant on a global basis and executing faster. When we do that, i think we will execute to our full potential. M a will be part of it. Emily my conversation earlier with mark, ceo of expedia. Roger still with me here in san francisco. One thing we didnt get to, political issues impacting the travel industry as well. Roger it seems the trump administrations decision to now have interviews of people coming to the United States from believe 100 destinations, and restrictions placed on immigrants, on students, all those things are going to have some impact on travel. It does seem to me that if i were trying to be a ceo of a travel company, my list of things to worry about is getting longer. The hurricanes may be gone, but bad weather is going to be a continuing thing. To the extent the United States is unfriendly to people who want to visit, or to our own people, that is going to cost them as well. Emily would that make you have a negative outlook on all . Roger it wouldnt be on my list of focus areas. I dont seeat it, what makes it a compelling story right now. The political headwinds, the weather headwinds, the stock is down a ton. It is more interesting today than it was yesterday. Emily Roger Mcnamee with me for the hour. Delphi sent to acquire new economy. We will get insights on the deal. This is bloomberg. Emily earlier this week, we learned delphi has agreed to purchase nutonomy for 450 million. Nutonomy previously partnered with major automakers including jaguar, peugeot, and lyft. Delphi is in the process of splitting into two companies, with one producing trains and the other developing self driving systems. Joining us from boston, nutonomy ceo karl iagnemma. Great to have you on the show. What distinguishes you from the pack . Karl weve got unique technology that weve been developing that draws on my background at m. I. T. Weve been in this space longer than just about any other startup. Weve got more cars on the road, more miles under our belts. That is really what set us apart. Emily why go with a supplier rather than an auto manufacturer . Karl the suppliers fit in a really interesting position. They can sell to the fleet markets, and they can also sell to their traditional oem customers. A supplier like delphi sits at a very strategically valuable point in this industry. Emily youve been testing Autonomous Cars in singapore. Will we see you doing the same in boston . Karl we are today. We are going to be expanding in the coming weeks and months. We are introducing our technology to members of the public in boston and getting everyday people into our cars and letting them experience what it is like to ride in a self driving car. Even though a lot of people have heard about this technology, you have experienced it. Few have experienced it. Emily theres a bill enabling self driving car testing in the u. S. Working its way through congress. What will this bill change for you . Theres some criticism that this would allow you to test self driving cars without adequate safety restrictions and oversight. Karl what is really important about this bill is it is going to create a uniform playing field. Today, if you are testing in massachusetts, california, michigan, you are playing by different sets of rules. When you think about investing, it is difficult when you dont have uniformity and clarity around the regulation. The federal guidance will provide that uniformity and clarity. Emily earlier this year, you announced a partnership on a passenger service. Youve said that partnership will continue. Can you tell us more . Karl that partnership is ongoing. We like and respect the guys at lyft. There were engineers in our offices this past week. We will be moving forward very soon, in the coming weeks. Emily karl iagnemma, ceo of nutonomy, ask for joining us on bloomberg technology. Overn Ceo Jeff Bezos added 10 billion to his fortune. On friday. Ed the bump in price o allowed bezos to leapfrog bill gates. Google shares hit a record high. Next week, the Company Heads to washington for hearings on russian interference in the u. S. Election. If you like bloomberg news, check us out on the radio. This is bloomberg. Is this a phone . Or a little internet machine . It makes you wonder shouldnt we get our phones and internet from the same company . Thats why Xfinity Mobile comes with your internet. You get up to 5 lines of talk and text at no extra cost. So all you pay for is data. 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. Mark i am mark crumpton. You are watching bloomberg technology. Let us get a check on first word news. Prime minister Mariano Rajoy says spain is firing the catalan government. The governor has been authorized to dismiss the Regional Government and curtail the Catalan Parliament powers. Rajoy is calling for a new Regional Election on december 21. The white house says it looks forward into an awarding of a contract which would help restore puerto ricos power grid. The company is located in interior secretary ryan zinkes hometown. The federal government has nothing to do with this contract. This is something solely determined by the puerto rican government. As i said, we will look forward to the audit to see if there are any other issues beyond that. Mark secretary zinke he said he had absolutely nothing to do with the awarding of the contract. About 75 of puerto rico remains without power more than a month after the hurricane. Defense secretary jim mattis visited a u. S. South Korean Military observation post. He looked across the border into north korea. Secretary mattis was briefed on conditions along the border created by a true salt of the korean war in 1953. Mattis emphasized the push for Diplomatic Solutions to tensions with pyongyang, but added america is prepared to military action of the north does not hold development of missiles that can strike the United States. A spokesperson for the u. S. Led Coalition Said he incorrectly announced a ceasefire has been reached between the Iraqi Government and the kurdish minority. The colonel says while talks are ongoing and clashes have stalled, an official ceasefire has not been declared. Long simmering tensions between the capital city of the kurdistan region and baghdad escalated after the kurds held an independence referendum last month. Australias high court disqualified the countrys deputy Prime Minister over a 116yearold constitutional ban on dual citizens serving in parliament. Barnaby jones says he always prepared for the outcome. I respect the verdict of the court. We live in a democracy. I thank the court for their deliberations. Mark the ruling could cost the government its slim majority in parliament. He says he renounced the new zealand citizenship here unknowingly received from his father. Global news 24 hours a day powered by more than 2700 journalists and analysts in more than 120 countries. Im mark crumpton. Emily bloomberg technology. Im emily chang. Shares in amazon, microsoft, and alphabet hit records friday. The tech giants reported earnings that showed a Strong Revenue and Profit Growth of the internet has shoppers and advertisers for businesses. Next week will be a big week for facebook, twitter, and google as the three send representatives to capitol hill on whether new laws are needed to regulate social media. Facebook announced transparency rules for political ads. The move will bring the rules closer to what is required of traditional mediums like television. Still with us, Roger Mcnamee. What is your take on these new rules . Roger i think it is an important step. Until today, facebook has been in a