We have the biggest highlights from earnings season. First to our lead. Facebook, google, and twitter go to washington. Executives for all three firms appear before an executive committee this week to discuss how russia manipulated their platforms to manipulate the 2016 u. S. Election. Facebook, google, and twitter told congress they were not sure they had measured the full extent of russias meddling in social networks. They do not yet have the technology to prevent it from happening again. I caught up with the former twitter ceo in the core founder of chorus to get his reaction. I think it would separate into two things. It would have responsibility once they understood the problem and the issue to discover the scope of it, then go address it. I think they are doing that. I think would be a mistake to say that they bear responsibility for missing it. This stuff has come to light after the election. It wasnt anything i think anyone knew had happened in previous elections. Everyone has been seemingly surprised by it. It is now a matter of doing the detective work to find out how deep and broad it was, then attacking it as quickly as possible. Emily what changes in twitter should do . They have made a broad and aggressive statement about the more aggressive on all political ads purchased and more aggressive on abuse. I think those are great steps. As i said when i was ceo, i would like to be a lot more aggressive. Emily the ads are one thing, but some people say those are not the problem. It is the fake accounts, a number of people pretending to be somebody else. I saw twitter yesterday, they think that 5 of the council emily do you agree with that . Some people think it is a lot more. Two things i would say that this. One, i trust the folks inside the company. If they are giving us a number publicly, particularly in front of the senate and house hearings, i expect that they believe that is the correct number. The thing you have to remember, some times there are researchers who come out and say this is the data. They are going off some of these raw api feeds. They are looking at the tweets that are coming through the programming interfaces before twitter delivers them to users. Emily is it true that, to some degree, these networks are essentially ungovernable . You have hundreds of people trying to monitor more than 300 million accounts . No, i do not think that is true. I think you can apply all sorts of Machine Learning techniques and other kinds of algorithms to do the things that you should be doing and doing a better job of, like protecting the community and making sure the information being delivered on the platform, to the greatest extent possible, is not foreign propaganda and fake news, to use sort of the term of the day. Emily we had a guest on the show yesterday who called these proceedings fraudulent. He used the word fraudulent. He said its completely ridiculous to blame these companies, social networks, for potentially swaying the election and spreading misinformation and that there is a Broad Spectrum on what misinformation actually is. What do you think . I will try to take a more nuanced approach to the answer. Look on the one hand, you can say that people lie on tv all the time. You can point to one or two News Networks and say, that was not even remotely true. Its not facebook, twitter, and googles problem. Its everybodys problem. My position is a little more look, we all have to take responsibility to prevent this from happening again. As the leaders in the Technology Field that are delivering a lot of this information to users, using algorithms that we think are best suited to deliver them the right information, we need to bear responsibility for addressing this. I do think i watched some of the hearings yesterday morning and was proud of sean ajit on twitters counsel, he was one of the more ethical people you could ever meet. I do think it would have been better if those hearings were more about problem solving and finding solutions and less about political theater. You know, you get these longwinded statements that come with questions in the form of an accusation, they seem to be designed to make the person answering the question looked either complicit or stupid. Choose one. I would like to see it be more about lets Work Together to find solutions, and problem solve, instead of blaming people and trying to get on the evening news. Emily is twitter a media company, and what is its responsibility as far as what is published . It certainly is in the media business. There is a sense in Silicon Valley that these companies are platforms, and only responsible for distributing information, and not making editorial decisions. The fact is i think jack has acknowledged this these companies, all of them, youtube, twitter, facebook, make editorial decisions all the time, we will suspend this account. This meets our standard for nudity or pornography or whatever, so he can stay. This one does not meet it, so it has to go. These Companies Need to admit, if you well, we make editorial decisions all the time, and we need to live without that and understand that being in the media business, even if we are a technology company, means we are going to have to take more responsibly for those editorial decisions. Emily what are some solutions as you see them . You know how hard this is. Yeah, listen, lets be clear. The ads are not coming from uncle vladimir wanting to pay for cornhusker moms for trump. It is not that simple. I do think you should probably only take political ads from organizations that are registered in the country that the election is taking place. That seems like an easy one. Things like that, that dont let the election outside the bounds of that region in which the election is taking place. Or where its influence starts to extend out of bounds in the region in which the election is taking place. That seems like a simple and obvious one to me. The problem with legislation around just things like transparency are that the organizations are not going to name themselves like the former soviet republic of so and so, they will name themselves something that sounds like the iowa or california grassroots Republican Organization or democratic organization. So it has to be more about making sure the organizations themselves are registered, paying taxes, filing their forms, etc. In the countries or regions where the elections are taking place. Emily you have been vocal about harassment on these platforms. Im curious for your reaction twitter has said they will change the way they approach harassment. They will be more transparent in the way they approach harassment, this in the wake of the metoo campaign, the Harvey Weinstein obligations, Rose Mcgowans account getting suspended as she was talking about being sexually assaulted. Do you think it is too little too late for twitter, or can twitter get this problem under control . It is a problem they should address. Jack knows they need to address it, and they should be more aggressive in addressing it. The same was true when i was ceo. I do not think it is too little, too late. It is one of the most vital and important platforms in the world. It is literally the way to get information or your opinion about something out in a moment. And it will be that way for years to come. Great, start now. Get more aggressive now. Emily is it a matter of being more also, let me add one thing to that. The word that is used is transparent. I think what would also be helpful is for these organizations to provide context for why a certain decision was made. It is one thing to just say, we made this decision because of this specific tweet. But then people might draw the wrong conclusions from that. It would be helpful i get how hard this is, believe me. You could spend all day doing it. But it would be helpful to say, we made this decision about this content for these kinds of reasons. That might not solve all your problems or answer everybodys questions, but it will give people a better understanding of what is going on behind the scenes, and why some issues are as challenging as they are. Emily that was the former twitter ceo and the ceo of chorus. Coming up, the Parent Company of Bloomberg News is building a Global News Network with twitter. Coming up, apple reports earnings results, along with new details on demand for its line of iphones. Details ahead. Later, Congress Grills facebook, google, and twitter this week. Were lawmakers satisfied . We will hear from congress and Chris Stewart of utah. This is bloomberg. Emily shares of apple have soared more than 40 this year, in part due to anticipation of the most imported from the desk important product for other company in years, the iphone x. It is crucial for investors and apple, demand for the iphone x is going up, and we have updates on the iphone eight in china. We have reactions to the results. I think it is certainly a bold move to sell a device for 1000. But it is proof that demand for the device remains strong. Emily we have been looking at a delivery time of 56 weeks, longer than any phone. We did suggest some supply issues when i spoke to tim cook moments ago, but he did not seem to worry. He said this is the most advanced iphone ever. We are just getting started, but he is happy with how the ramp is going. They will make reductions in wait time today or tomorrow. We can expect the wait time to go down. Julie that is the case. No organization builds capacity to hit peak demand. Certainly, they have been producing these devices for a while. I think the other thing apple does well is always meets or beats expectations. So they may be setting expectations of four to six weeks, but i would not be surprised if consumers get them in the mail sooner than that. Emily what is your big takeaway when you look at the numbers, knowing that this is the quarter coming up, looking at people in line for their phones in sydney . Julie it is exciting for apple. When you look at the iphone x, it represents almost 70 of the revenue. I think it will be interesting to see the details of the Earnings Release in terms of what is the other category doing, the number one watchmaker in the world, at what point will the breakout devices like that . Certainly, there is a keen eye on their Services Businesses and to see what extent that is growing. Emily it grew 34 year over year. My question is how long can they keep up that kind of growth . Julie it is also hard to get a big growth number the bigger base there is, but there is only going to be more momentum in this market. If i own a watch, smartphones, tablets, computer, and the home part when it launches in december, there is only more incentive for me to sign up for Services Like apple music that can work across all of the devices. So this begins to play in their favor. Emily lets talk about china, apple returns to growth in china. There were Big Questions if people would want to pay up for a phone this expensive when you have alternatives that are half the price or less. I asked tim cook about china, he said we have returned to growth there, the mac was strong, the best in Mainland China ever. Their services hit an alltime high in china. The ipad group double digits in china, so in addition to the iphone, the other businesses are doing well. And in response to this question over whether people a the iphone x, he said i suspect i know will really love the iphone x. Julie there is no doubt they are doing well here, and he does have more data than we do. He will talk more about that. But this is like a halo device. This is like going back to the early generations of the iphone one or two when people camped out outside the stores. You may see a lot of demand for the product. But we may see a slowdown in how frequently they refresh that. If 1000, it costs what our laptop does. Do we replenish our laptops every two years . Are we going to see people get closer to a 30 month cycle rather than a 24 month cycle to justify the cost on a month by month basis . Emily tim cook is pleased with the sales so far, but are you concerned about the iphone x cannibalizing sales of the iphone 8 . Julie apple is good at this. This is what they do. They bring out a product that is unique, and if there are two new products, they are very good at adjusting prices on the other products on the market longer, and they tend to still do well with those products. Emily as we watch the rollout happening around the world over the next 24 hours, what are you going to be watching for . Julie i do not know if there is something specific we are watching for, but i think it will be interesting to see the release numbers in what the preorders are, how much demand there is for the device. Anecdotally, the demand seems to be very strong here in san francisco. Emily that was julie ask for forrester research. Tesla still hasnt figured out how to overcome production problems that threaten its viability. The company will not make 5000 units per week of its cheapest car until march, three months later than planned. Tesla also reported a record quarterly loss and cash burn. Coming up, the senate and house grilled big tech over possible russian interference in the u. S. Election. We will hear from one of the representatives on the House Intelligence Committee next. Plus, how exactly does a Russian Group buy political ads on a platform like facebook . We will explain stepbystep. This is bloomberg. Emily it was another successful launch for spacex. This was the companys 16th launch of the year. They carried a south korean satellite into space, which launched from floridas Kennedy Space center. As with previous launches, the rocket landed successfully back on her for reuse in a future mission. As we mentioned earlier, facebook, twitter, and google appeared for the House Intelligence Committee this week to answer questions about a possible russian interference in the 2016 u. S. Election. I spoke with Chris Stewart, a representative from utah, and asked if he was satisfied from the response of representatives from the big tech firm. Rep. Stewart generally, we are satisfied. When you look at how the russians were so brilliantly able to manipulate public opinion, they have an enormous challenge in trying to identify that. Finding the best way to respond to that. I think the executives we had before were very honest in their answers, but it is not going to be easy. Emily do you buy their response that it is too technically difficult to tell users that they were served russian ads and russian posts . Rep. Stewart well, i dont know if i can answer that with real authority. I dont want to disagree with them, i certainly dont want to say they were not being honest. But i think the answer is not sufficient. If what they told us is true, we have to dive deeper and be able to answer that question in the future. We do understand, and we have been able to develop policies and tools that will stop that from happening in the future. Maybe that is the case now, it is not sufficient for what we need in our future elections another future policies. Emily these companies sent their top lawyers but not top executives. Will you be trying to speak to Mark Zuckerberg, sheryl sandberg, larry page, or jack dorsey . Rep. Stewart yes, it may be more publicly interesting to see and talk with them. I dont think we would get a different answer. I understand why they sent their lawyers. Sometimes we were asking very technical questions or very difficult questions. I understand they wanted Something Else to maybe take the heat and be the public face for this, but i dont know that they would have told us anything different. In fact, if that is the case, i do not think there is any advantage to bringing mr. Zuckerberg in or any of the others. Emily do you think we will see regulation out of this . Rep. Stewart i dont know, that is the real question, isnt it . My question is, they talked about fake news again and again. Fake news we will identify it, we will help consumers understand this is fake news. I asked them what in the world does that mean . 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 and a little bit of their own intellect in order to determine that does not sound right to me, this might. By the way, in that spectrum there are fact, but most of what we read or might 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 bomb or Political Tool is very troubling to me. Emily what about government legislation or government cooperation . Rep. Stewart that is another thing altogether. There is more we could do to further the cooperation between the government and private entities, but in many cases these entities themselves in their own terms will not allow them to share information with each other. I wish they would break down that barrier. I wish they would be more open. Hey, this person, this customer, this account, we have identified as belonging to a russian troll or organization. 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 as well. 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 own investigation, where does that stand and what is next . Rep. Stewart 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 really h