Chinas hna group is offering the countrys most expensive shortterm dollar bond as it struggles with soaring finance costs and maturing debt, withholding a 363 day bond at 9 . Global news 24 hours a day, followed by more than 2700 journalists and analysts. This is bloomberg. Lets take a look at the markets, trading getting underway in hong kong and china. Chinese stocks ever treated. The shanghai, up ice extents of 1 . Up by 6 10ghai comp of 1 . This is bloomberg. Emily i am emily chang, and this is bloomberg technology. Coming up, facebooks third come thirdquarter numbers shred expectations with the fallout from the tech industry. Bloomberg has the numbers and Mark Zuckerbergs warning about profitability. Tesla also reported thirdquarter results with disappointing numbers. We will review the production setbacks for the highly anticipated model three. A Bigger Picture emerges with the sophistication of expertise behind russias influence campaign. We will show you use some of the ads is by kremlin sponsored hackers and the fiery exchanges as we wrap up day two of tech hearings in washington. To our lead. Facebook recording another quarter of record sales despite a tough week on capitol hill. Shares climbed to a record just before the Earnings Report and are trading slightly higher in extended trading. Revenue rose to more than 10 billion in the period far above the top range from expectations. Not bad for a quarter that was dominated by reports that russia allegedly used the social network to meddle in the election. In a statement, Mark Zuckerberg said facebook is serious about blocking abuse, stating, we are investing so much insecurity that it will impact our profitability. Protecting our community is more important than maximizing our profits. The company also said they plan to double the amount of people working on safety and security to 20,000. Joining us now to discuss, david kirkpatrick, ceo of techonomy effect, as well as debbie williams, i want to start with you. How significant do you think this is that Mark Zuckerberg is saying these security concerns will impact profit . At emarketer, we are more about looking at revenue. You mentioned at the top of the newscast, this shredded the expectations. They shredded ours as well. For us, it is all about revenue up and to the right. Everything they have reported this quarter is higher than we anticipated. Emily that said, david, you have taken a slightly different tack today, expressing concern about facebook shares, whether they will continue to go up as a result of all of this controversy. What is your take, seeing the results . David facebook shares have a lot of reason to be strong. The very success of the russian effort put probably reassure advertisers that facebook is the right place to advertise. They are not going to stop magnetically attracting more and more ad dollars. The question is, how much are they willing to spend and how much social capital are they willing to spend and reputational capital to do the right thing . I think they really have to step up and take a fundamentally different attitude for their role for society. It goes way beyond election meddling. I have not seen that yet. Emily would you agree . No, i think this whole story is hypocritical. The cia has been doing the same thing all across the globe. The idea that the United States can do things but russia is evil for doing the same things is ridiculous. The big mistake was by president obama when he declared russia and Vladimir Putin was our friend and ridiculed mitt romney for predicting all of this. If the president of the United States thinks they are our friend, why should Facebook Think they are evil . Emily but now that we have evidence, do you think they should do anything about it . I think they should do the same thing that tv does. They should be subject to the same laws, rich which require transparency. They do not allow foreign agents to buy ads to intentionally affect the elections, the federal elections, but that is a very small category. It is not really what people are talking about. The news came out that russia spent about 48,000 on facebook , which is a rounding error. For facebook and even for the clinton and trump expenditures. Together they spent 81 million. Russia spent 46,000. It was the most efficient or the most efficient 46,000 in the history of advertising. Emily what is your response, david . David i think what he said about the cia is right, but it is besides the point. These companies have a social weight that a commercial enterprise has never had in america or the world, and dont really have a governmental regulatory or citizen response to that. Political meddling is just one piece. Senator warner today named a number of things that are are equally problematic, financial scams, other fraud, meddling of various social behavior. This is not going to stop even if the whole russia thing went away tomorrow. Facebook would be facing massive questions about its future as a platform for the public debate, and why a company should be the one making decisions about what happens. Emily keith, Mark Zuckerberg speaking now on the facebook Earnings Call. Says they are working with congress on legislation. Even the company is taking some responsibility. Keith i dont think they will support any radical legislation. They may allow some incremental transparency. I think facebook should require realworld identity. I think facebooks success is predicated on realworld identity. I think stamping out fake accounts is a very good thing, and it is something users would expect. But i dont think facebook should be subject to any incremental regulation that does not apply to tv, newspapers or billboards. Emily we got the first hint today from facebooks testimony, the testimony of the lawyers that instagram was also affected. What sort of significance to you think this will affect with the other businesses under the facebook umbrella, whether it is instagram or whatsapp . It was new news that instagram came into this. I think it is possible we will see other platforms involved as well. I have to say though there is a lot going on. Everything is new, and it is always exciting to watch what facebook is doing and what role they are playing. I think the debate over facebook is not going to end with this russia investigation. But i do agree that there is a lot that facebook has to in terms of its role for society and its role for helping people understand what is news and what is not news. There are many, many things going on that we will see over the coming months related to facebook and all its companies. Emily Mark Zuckerberg just said that he is dead serious about the russia problem. He should be serious, but ultimately users are voting with their feet. They want to share this. Facebook should be enabling users to share what they want to share. The National Inquirer has also existed for 50 years. Facebook has become the online version of the national enquirer. Most of what they say is totally fabricated or false. People like to buy it and read it, similar to how they share stories of facebook. People like to be entertained. If you are a serious news platform, you may have to make some editorial judgment. That is not what facebook users are getting. Emily keith, you are sticking with me. David, i will give you my last words. David i think they have to behave as a media company, which they continue to resist. The one thing i really agree about is they should double down on making sure people are who they say they are. That has been a fundamental design feature of the service. But interestingly when they were were at the committee hearing, that is problematic because they do not like to knowledge how many Fake Identities actually do exist on facebook which is many tens of millions. Emily all right, david kirkpatrick, debbie williams, thank you both. Keith, you are with me for the hour. Coming up, test learnings. We will break down the numbers next. This is bloomberg. Emily shares of tesla falling in late trading after reporting thirdquarter results. The company delaying a target for their critical model three production. Production setbacks led to record cash burn. Tesla now expects to make about 5000 of those cars by the First Quarter of 2018 rather than by the end of the year, a big disappointment for investors. Joining me now is a reporter who covers all things tesla. What happened . Elon said they were going to be hell bringing the model three to market, but now it sounds like they are not going to make it. Elon was camping at the giga factory. It seems like they are still having a lot of problems at the giga factory. There is a delay of at least a quarter before they are going to start hitting their target. Emily do we have any details on what the problem could be . They are having challenges with the battery pack assembly. As they ramp up reduction, things may shift. Production, things may shift. It is not the most confidence inspiring shareholder letter in terms of production. Emily what about it when it comes to record cash burn . Record cash burn. They are going to continue to have cash needs as a company. Emily they have been talking about layoffs. There is a distinction between layoffs and firing. They clearly got rid of several hundred people, but they have never given a number, and typically you would not do that when you are on a big rant. That will probably come up on todays call. Emily which positions . It was across the board. A lot of it was solarcity, because they acquired that last year and they are no longer doing doortodoor sales. It was across the board. Emily when it comes to the model three, what kind of information are you getting as to when . That the getting initial ramp is delayed by at least a quarter. They initially wanted to make 5000 cars per week by the end of this year, and they say now that will be late 2018. If you initially ordered a model three, youre going to wait even longer. That is dicey for tesla, because a lot of people are not going to want to wait. There are still tons of reservations, but eventually youre going to need to drive a car. Emily we know elon musk is audacious, but why push the schedule if it is indeed going to be so difficult to meet . I think he has big ambitions that he wants to solve, this challenge of Climate Change in a hurry. This whole sort of ramp up was pushed forward because demand was so strong. Now there is the us there is the opposite problem where there is lots of demand, but they have not been able to make the car. Emily how does the solar roof fit in . The solar roof is still slowly happening. There is apparently more demand for the energy products. They talked about sending this to the puerto rico and how they will be growing part of the story going forward. Right now investors just want to see model three on the road. Emily what about the model s and model x . They are seeing record demand and seeing record sales in the fourth quarter. They have not cannibalized their current product yet, which is good. Emily i know you will keep us posted. Thank you. Coming up, the senate and house over possible russian interference in the 2016 election. We will speak to one of the representatives of the House Intelligence Committee. This is bloomberg. Emily we continue to cover earnings with gopro. Shares are falling. Earnings shadowed their first record profit recorded profit in two years. The cost cuts are helping turn around the business after a difficult 2016 riddled with production delays and the closing of the media and entertainment unit. As we mentioned earlier, facebook, twitter, and google on appeared before the House Intelligence Committee today to answer lawmakers about possible russian interference in the 2016 election. I spoke to the republican representative from utah who serves on the committee and asked him if he was satisfied with the response the committee got from the lawyers. Generally we are satisfied, and they have an enormous challenge. When you look at how the russians so brilliantly were able to manipulate public media and public opinion, they did it in such a divisive way, and they have a enormous challenge in trying to identify that. I think the executives we have before us were very honest with their answers, but it is not going to be easy. Emily do you buy the response that it is too technically difficult to tell users that they were served russian ads and russian posts . I dont know if i can answer that with authority. I dont want to disagree with them. I dont want to say they were not being honest. I think the answer is insufficient. If what they told us is true, we have to be able to dig deeper. And we havetand, been able to develop policies and tools that will stop that from happening in the future. Maybe that is the case now, but it is not sufficient for what we need in the future elections. Emily these companies sent their top lawyers but not top executives. Will you be trying to speak to Mark Zuckerberg or jack dorsey . Yes, it may be more publicly interesting to see and talk with them. I dont think we would get any different answers. I understand why they sent their lawyers. In some cases, we were asking very technical questions or very difficult questions. I understand they wanted someone else to take the heat and be the public face for this, but i dont know that they would have told us anything differently. If that is the case, i dont think there is any advantage to bring in Mark Zuckerberg or any of the others. Emily do you think we will see regulation out of this . That is the real question. My question is, they talked about fake news again and again. We are going to identify it, we are going to help the consumers understand this is fake news. I would ask him, what does that mean, and who is going to decide what is fake news and what is not . If you talk to mr. Trump, his idea of fake news is very different than someone elses might be. If you are looking for a regulatory answer to this, that is an enormous challenge. I think at the end of the day, you have to trust the American People that they will use some judgment, that they would use a bit of the road a bit of their own intellect to determine this. That does not sound right to me. In that spectrum there are facts, but most of what we may read or view has some degree of opinion. I dont know how you would try to regulate that. I think it would be enormously complicated, and the potential for that to turn into a Political Tool is very troubling to me. Emily what about government cooperation . That is another issue altogether. There are things we can do and should do to further the cooperation between not just the government and private entities, but in many cases these private companies themselves. Any times, their own terms will not allow them to share information with each other. I wish they would break down that barrier and be more open hey, this person, this customer, this account we have identified as belonging to a russian troll. I would certainly hope they would share that information with each other. The same thing is true between the barriers between the government, especially the federal government and these private entities. That is the type of information that could be shared and should be shared, and many times right now it is not. Emily we have now seen indictments from the special counsels russia probe. You are doing your an investigation. Where does that stand and what is next . The House Intelligence Committee has been looking at this for almost one year. We started looking at russian interference with the election, and we have tried to stay focused on that. These indictments we saw a few days ago have nothing to do with russian interference. They were financial anomalies that happened years ago. In some cases, the most recent was several years before some of these individuals were associated with the Trump Campaign. If they did something wrong or if they were truly laundering money, they should be held accountable for that. In the house, we are really focusing on, was there collusion, how do we stop that from happening in the future . How do we protect our elections . We are a year away from midterm elections. Europe is experiencing much of the same thing. How do we assure the American People that foreign entities are not breaking down that trust in democracy and trust in our own elections . Emily what do you need to see from the investigation in terms of evidence to act legally . I am not sure how to answer that. If we find evidence there was illegal activity, then we will pursue that. We will write a report, and if necessary we would refer that to the department of justice or in some cases to the special counsel. Our primary objective is to report to the American People. We are not a lawenforcement agency. We dont have the tools, and we are not tasked with enforcing the law. Our goal is to discover what happened and tell the American People. Some people are frustrated. They have been saying collusion for a long time. That truth is we have not seen evidence of collusion between the Trump Campaign and russians. But we have seen some other activity that is concerning for us. We will continue to pursue that. And again, as quickly as possible, report that to the American People. They deserve to know. It should not be in 10 years. It should be as quickly as we can well still relevant, and to stop that from happening in the future. Emily my interview there with House Intelligence Committee member chris stewart. And a reminder, bloomberg lp is developing a Global News Network with twitter. Former inverse ceo former uber Ceo Travis Kalanick told Board Members tuesday that he wants to remove a provision that would prevent him from appointing for members in the future. The japanese companys plan to invest a potential 10 billion has not been finalized. A final decision