mark: meanwhile, mrs. clinton and her running mate kick off a three-day bus tour in pennsylvania and ohio. mrs. clinton's september speech drew 28.million fewer than the fewer t was 30 million than who tuned in to see donald trump's speech. turkey is escalate its crackdown. the government has canceled 50,000 passports of the they have fired or suspended soldiers, bureaucrats and academics. powered by more than 2,600 analysts. emily: this is "bloomberg west. emily: this is "bloomberg west. coming up, amazon and facebook neck and neck with berkshire hathaway. to dominate the world's most valuable companies. we'll bring you all the latest numbers. one more tech i.p.o. for the books. we sit down with a data tech company after shares topped at 45% out of the gate. and will russian hackers help donald trump get hold of hillary clinton's missing emails and in on what the republican nominee's comments mean for cyber espionage. and amazon and facebook moving into the top five companies with the largest market cap. exxon mobil was at the top. five at the close of trading and bumped apple, amazon and facebook reported strong quarterly earnings. we have chief analyst with us and our stock market reporter. oliver, i know you have been following these companies. consider closely this week. when it comes to the stocks, which moves were the most interesting when it comes to the top four tech companies? >> it's tech. right, why i'm here, because we're talking tech, and that was an interesting development this week. now been a group that has led the market throughout this entire year. to see tech getting a boost on the back of earnings was very important and interesting as we look to get some indications as to where equity markets in the u.s. are going to go. for this year ry has been people moving into more defensive types of names, the dividend payers, the value stocks that are going to do pretty well in the midst of petering along economy. when earnings come in and beat estimates by the biggest margin compared to the rest of the s&p 500, people got bullish and you saw the rally. look at the tech p overall. s & the fact that the information technology group was beating s&p this week, it was leading the most in the earning season since 2008. you are seeing a pull-away there. and the bottom line, they like to see when tech leads. you are looking at a chart why that basically shows you maybe why this isn't happening and the bottom chart shows it leading. and there is a gap between valuations and one of the most popular groups up until this week, which is the consumer staples, they are getting expensive trading 20 times earnings. perhaps that's possibly why investors were ready to buy into some of those stocks. emily: bob, one of the things the companies have in common they are trying tomon advertise, -- trying to monatize their core business. amazon and the cloud and instagram and messenger. with apple, it's services. the best job so far? >> so far you have to say apple is doing the best job. they have been doing it longer. tim cook has been talking services for the last -- emily: services for the last -- emily: services is 20%. >> exactly. i would say from that perspective, they probably are. the question is longer term who can do more and that will be interesting to watch. it's still waiting to be seen. amazon is doing incredibly with web services and retail services are doing. google and facebook. obviously trying lots of interesting experience. google, the question will be: how much can they do on cloud services and how about the other moon shots. they have a lot more discipline with the new c.f.o. see new numbers in the way of approaching things. but the bottom line is i think it remains to be seen, while apple is doing better now. emily: when it comes to the cloud in particular, not just amazon, but they are fighting -- but amazon and microsoft and fighting for for a piece of the cloud market. how much does a stronghold do they have on the market? >> microsoft is the biggest threat clearly to amazon. google much further behind. the trick is a lot of these guys are moving towards analytics and deep learning and the futuristic means of discovering information and if google can offer that capability as part of their cloud services, that's where they start to become unique. mind you microsoft is pushing hard on that. you will see effort from both google and microsoft against amazon but amazon has the benefit. emily: amazon trading at $758 a share. one analyst put a $1,000 a one analyst put a $1,000 a price target.. he thinks amazon could have a $3 trillion market cap and a better chance to pull ahead of the pack. what is the street saying? >> it's interesting you brought up the projection of 3 trillion market cap, because not too long ago, there were similar types of expectations for apple and it shows you that is a company that has been volatile the past year. if you are a portfolio manager, you cannot afford to own apple in the past. shift as we're talking about. when you look at amazon, what is interesting about the earnings, this is a company -- people aren't buying for the profits because it is a powerhouse in terms of turning out earnings. if you look at what is happening with the valuations, it has come down a little bit but you are paying hundred times valuation. when you look at the p.e. level, it's kind of hard because there is no real e on that equation. and you have a quation there are a lot of questions. you see the feds staying doveish. hike irates at the rate they expected to. so that might be redrawing of the economy. investors want to find growth. they are willing to pay a lot more for it. a company like amazon that is growing and saying we don't need to turn out a profit but put it back in our business. investors like that and how far it has come and disruptive and how fundamental to the company, higher valuations aren't out of line at all. emily: bob, which company is the most vulnerable right now? what's the biggest weakness? >> that's an interesting question. in some ways, perhaps apple is as well because so much of the business is still dependent upon the iphone. talking about the alternative businesses. if we look at the core businesses, that's where the question becomes because we have the iphone 7 in the fall. a lot of expectations that it's not going to be dramatically different. if that's the case, we could have relatively modest sales and could have continuing declines in 60% of their business. that's obviously a concern, i think. so that's why i would say there is some potential concern there. facebook and google, they have concerns with sat you areation, saturation. price drops on the ads, but there is a lot of growth there and they are experimenting with new forms of advertising and snap chat filters and all this kind of stuff, that will be interesting. in the longer term. emily: a big test for apple in september which we presume will be the iphone 7. we'll be watching. bob and oliver. always glad to have you both. emily: facebook may have to pay up to $5 billion to the i.r.s. the social network reported a potential tax liability in a filing on thursday. bloomberg news reporter explained how facebook got into this situation. >> in 2010, facebook decide todd -- decided to move move its global operations to ireland. so that's everything that doesn't include the u.s. and canada and when they valued the erns and young to set the price. the i.r.s. said the valuation was too low and off by a few billion dollars and this is what we think the valuation is and it's $3 billion to $5 billion. >> what are the next steps. i understand facebook has been called to this tax court, hasn't shown yet. what's the company's next move? options ande a few they said they will challenge the notice. they will go to federal tax court and say, we have our experts and told us this is our valuation and the i.r.s. will come up with their own experts and say, this is the price tag that we believe you should be paying on and probably they'll end upset willing between $3 billion and $5 billion but depends what the i.r.s. comes back with and play on an issue that is on much broader theme. emily: that was bloomberg's reporter. th.p.e. that private equity firms are contemplating a buyout. apollo global manage nt and carlisle group are sticking around. they had talks with representatives of the firm and the deal could be worth over $40 billion. still to come one of the rare tech i.p.o.'s the french big data company. and we take you to the heart of the mojave deserts where they play with fire. the c.e.o. of virgin galactic gives us a tour. >> it's been a slow year for ipos with three going public in the u.s. talon making gy nasdaq.ut on the tukin andown with mike asked him what makes this company stand apart. >> it's really a unique market structure. what we find is a small number legacy income players and those players haven't done a great job of tracking the changes because the market is moving very strongly now to gated so-called big technologies into the cloud and they have a technology and business model approach that doesn't work well there. that business for us is going 100% a year. powering our top line. those legacy players who don't have the capabilities of doing what do you, what's youping them from snatching up now that you have a value what's on your company, keeping you all from being taken out? >> what's happening is the couple of thing is a them have been taken private veryselves and they are in tight financial constraints, much more so than in public companies. as a result, i think we'll have a nice long run as a public company. emily: speaking of acquisitions in your perspective, you said that acquisitions are on your well. as are there certain parts of the business that might be more right to acquire instead of organically grow? >> there's two main categories. adjacent markets that are close to what we do. the companies might want to buy it at the same time. and the second one is deepening our solution in areas we've acceleratinged but our ability to solve a bigger part of that. and deepeningning the two bigger categories. which were at rapid 7 you went public recently last year. you've been at the helm of two private i.p.o. companies. what are you seeing these days and whatunding markets would your advice be to other execs who are considering public market? >> what we found is that the late-stage private funding market has changed dramatically in the last 12 months. it was a full risk on very aggressive late-stage market and as a thatlt, a lot of companies did late-stage rounds within the last year are finding the got in the that they private markets aren't really sustainable and aren't ones investors c market are willing to do. so i would suggest the companies really need to think they want to become a public company. in which case, they may want to think about doing that sooner versus taking one of these late-stage rounds, which may actually make it harder for them to go public in the coming years. pressure on public valuations that we are seeing because there's been a slow-down in private funding. again, it's been a chop year in year for and a chop i.p.o.s in the u.s. >> we felt we had a solution or go ompany that we could public in almost any market environment because that was it balanced. high and balance of accelerating growth with cash positives. so we looked at that and said the time is now. that was talon ceo. coming up, berlin rising as tech hub.next could the next exit be on the horizon? this is bloomberg. emily: let's take a trip to berlin. how more are drawing in funding how it's a historic lack of exit maybe about to change. a listen. >> there's a real light being shown on the tech start-up scene and whether it can grow and perhaps claim the crown as the top tech club in europe as they decide to leave the e.u., from london with cheaper living arrangements and cheaper work environment and uninhibited access to the mention, to uninhibited parties they've got going on here as well. they have 2.4 billion euros was lured in last year into the hubs. one of the complaints and perhaps what stopped berlin place is a such a lack of access compared to one on but there could be on the horizon to help put money back into the ecosystem. a bloomberg scoop earlier this week, it seems the sound streaming music company could be up for sale. of about $1 billion. they've been monetizing this business and the revenue isn't that consistent, according to people familiar with the situation. 175 million. so we'll see whether some of the key investors, including square, will be cashing in on that investment soon. of re's also been plenty optimism coming from some of the other key start-ups in berlin. of them is an online bank, n-26, launching new products, scale, and crucially getting itself a banking license from in here in europe and i spoke with him about the growth of his company and the in berlin of the tech scene. >> we're not working against banks. i think we're seeing the opportunity in the market. i think a lot of young customers don't feel connected the banks are s offering so they're really far away from great mobile experiences and i think it's exactly the niche we're in, so with the digital access and the want to do bank ing on their smart phones with a simple click and it's more about taking the opportunity. today we have around 230 or customers, and we're growing kind of at a fast pace obviously, we're much smaller than traditional banks that have an opportunity for us to grow. >> united kingdom, makes us post of what happens brexit ashgsz we call it. decision to be made now? >> i think it's kind of uncertainty. decides to leave formally, i think what's going to happen at the end of the year, we still have kind of two years of negotiation periods now, in two years from we'll know if the u.k. market is going to be interesting for we can also take -- if we would need to get we ew banking license then, can get it then, so i think we're pretty relaxed on the and i think it's an interesting market. >> was there a decision when decided, let's take on the banks rather than partnering with them. to get your sk you in hnology and bring it house. >> we're still partnering with banks. we're also talking to traditional banks. maybe they have the superior in the credit rates, and have the experienced staff house or s at the whatever, so mostly today, we start-ups ering with on our platform and are talking but ore traditional plans sometimes, it's just very difficult if you're talking to has is es that maybe 100,000 employees, has very old stacks, so it's just the difference between the pace of start-up and the very big coffers. but i have to say some banks, partnering ng at with. emily: your investors are having. ones,ave some interesting peter till, one of those who put money in at the beginning. found most u interested in backing your company? investors, all the we have some here from germany, we have some from peter till and now recently litta sheen investors and a couple of others. i think it's important to have investors with a long-term vision. retail banking is one of the last area that hasn't been by online and ed by mobile. and all of them have a long-term vision and they expect us to take at least 10 years, but they have the financial power to bring us through that and really work on bringing mobile banking to consumers. >> how important do you think you are based in berlin. many would have thought munich or london. what's happening in berlin? >> we have tried not to be -- i think it is positive that we aren't the center of finance. as we are contracting our products and if you look at our products, we always try to build it from a perspective not coming from the inside of a traditional bank or traditional player. and actually berlin has created a sense and best people in europe and happy to be in berlin where we can actually accelerate the city and get the best minds to work with us. emily: do you think it's going get more popular post brexit? >> i think berlin is now more attractive for any company moving to europe. are y: another story we watching. moving to europe. tim cook is hosting a fundraiser for hillary clinton. if you want to go, it's going to cost you. tickets will run between $2,700 and $50,000 while apple lobbieses, this isn't the first. for the ceo. last month, cook hosted a fundraiser for paul ryan. he will be accompanied by lisa jackson who heads up the environmental policy. staying with politics, coming up: how is the russian hacking community of donald trump's calls to hack hillary clinton's emails? this is bloomberg. >> let's begin with a check of your first word news. after hillary clinton accepted the democratic presidential nomination she and tim kaine are on the campaign trail. they spoke at a convention rally at temple university in philadelphia before beginning a bus trip through the battleground state. of pennsylvania and ohio. early early today, mrs. clinton picked up where she left off thursday night, going after donald trump. >> i find it highly amusing he donald trump talks about make america great again. he doesn't make a thing in america except bankruptcies. mark: the campaigning in colorado springs, donald trump said after watching mrs. speech thursday i'mht, quote, taking the gloves off. a federal appeals court has ruled a voter id law in north carolina was enacted with discriminatory intent and must be blocked. the 2013 rewrites of voting laws in the state required photo identification to cast in person ballots. it reverses the lower court's ruling. six more state in ploys in michigan face charges in the plant water crisis including misconduct and office, willful neglect of duty and various conspiracy counts. april, two state regulators were charged with official misconduct and other offenses. like evidence tampering. 4 have been suspended without pay. save the children says a maternity hospital it supports in syria has been bombed. a hospital -- the hospital opened in 2014. health officials say mosquitoes have begun spreading the zika virus on the u.s. mainland. for the 1st time. four people in the miami area are believed to have contracted the violence -- the virus locally. through mosquito bites. >> we don't have a crystal but i do know, over the coming weeks and months we will see isolated cases of mosquito borne zika. >> of 19,000 mosquitoes tested none were found to be carrying the virus. other methods of transmission such as travel to a stricken country or sex with an infected person had been ruled out. a minnesota judge overseeing prince's estate has ordered genetic testing people claiming to be his heirs and tossed out claims made by 30 others. prince died in april of a drug known childrenno or will. global news 24 hours a day powered by 2600 journalists and analysts in more than 120 countries. i'm mark, this is bloomberg. emily: another hack attack on the democrats is being investigated by the fbi. a person says a preliminary probe has begun into whether hillary clinton campaign was hacked. the security war world is digesting comments from donald trump that russia should find russia, if you're listening, i hope you're able to find the 30,000 e-mails missing. some have dismissed the comments as a joke. donald trump says he was being sarcastic. many security experts say it's an unprecedented move to see a politician asking for help from a foreign government of hackers. russian hacker community received these comments and what are the implications for cyber espionage. >> joining me now, a longtime counter intelligence and terrorism operative for the fbi, what do you imagine is happening in the russian hacker community over the last few days since these comments? guest: hello, emily. we need to change the way we are describing it. what i would like to say is the russian spy community. instead of hacker. this is espionage. going after a political campaign, the dnc, hillary's server or her campaign, it is espionage. there are secrets a service -- a foreign intelligence service -- would like to know. emily: we are getting new headlines about this new investigation into this additional hack on the dnc. the clinton campaign saying hackers did access at least one program. what are the implications of this? guest: the implications are high. one thing, we need to realize is this was foreseeable. campaigns have always been hacked, especially during a presidential cycle. it happened in 2008 and 2012. i think both campaigns were warned this could happen. they should know about it. it was certainly foreseeable. and preventable. i would like to look at this espionage. russia and china and iran, everyone is trying this by on us, to learn what policy the next president could want. what i like to say is what we need to be thinking about is how to prevent this from happening. what we can do to keep these things from happening in the future, to stop these in the first place. emily: the clinton campaign confirming hackers did get into one program that was maintained dnc, but that internal system, no evidence that the internal system was compromised. are you saying that, these comments by trump would not be seen as a call to action by the russian hacker community? guest: what i think is that russian hacking community, or state-sponsored or foreign servicegence active spies are already hacking. they are already trying to go after the dnc. i don't agree with what trump said. i think it was a bad idea. i do like someone in a position -- i never like for someone in like that of power to call for espionage against an american person. it makes no sense to me. but we need to start thinking about is changing how we look at this. this was preventable. there are steps we can take. to give you an example, we are advocating what we call a zero trust approach, a way the dnc and others could protect themselves from this sort of attack. it is believed russian hackers used a phishing attack. phishing. an e-mail that someone trusted and believed it was a good e-mail. they clicked on a link that loaded malware. if they have zero trust that malware can't run. i think that is important. it boggles my mind that if you were warned this could happen you would not implement the best cyber security you could have. we have seen this quite a bit. the state department was attacked. the white house was attacked. the irs was attacked. we can certainly see the dnc and other campaigns could be attacked. emily: can you give us details on the tactics used when it comes to russia versus the united states? guest: certainly. russia is one of the top spy agencies. that uses espionage in the world. we certainly do it, everybody spies to some degree. it is part of their culture. i could see they are behind it. we don't have proof. let's say for the sake of argument russia attacked. this is a good espionage attack. because we can't definitively prove they did it. they have deniability. they have stolen information that is causing pressure on the future president of the united states. we don't know what they have, we don't know what they have given wikileaks. and that is power i don't like anyone in the u.s. emily: what action should the u.s. government take? guest: the u.s. government is taking action in certain circumstances. over at my company, carbon black, we are protecting some of the major federal agencies. been attacked r like this. once again, using zero trust approach. we need to encourage better cyber security. the federal government has the lead from the front to protect by setting an example, not only for the rest of the government but for companies around the united states. if you give me a moment, that is a zero trust approach i'm talking about, it's like having a doorman in front of your house who let's only those people in that you have on the list, no matter how good they look, how persuasive they are. if they are not on the list they do not get in. that means that only the you say are good, are allowed to run. nothing else is allowed to run. it's one of the best ways to protect against these targeted attacks. these e-mails that are targeted toward an individual. emily: all right we will follow this developing story. black 'neal of carbon joining us from d.c. thank you. while we're on this topic, a milestone moment in tech. it has been 10 years since julian assange founded wikileaks. decade, the web site has gone on to become the for d's most powerful home leaked government information. as we have been discussing it is controversial mission to open governments has never been more divisive. dnc hack.point, this edward snowden criticized wikileaks for releasing information it receives in raw form. he tweeted democratizing information has never been more vital and wikileaks has helped but their hostility to cure ration is a mistake. we will bring you all our best interviews from the week, her $4.8 eyer, after billion deal with verizon and sandberg on the blockbuster quarter. this weekend on bloomberg television. ahead, a walk in the the testing ground mojave. this is bloomberg. â emily: many of america's top rocketeer's work in the middle of the mojave desert. in this week's edition of hello world, ashley travels to the landscape to speak with richard branson and discover how close virgin galactic has come to commercializing space travel for tourists. >> out here in the mojave, there's testing rockets and then there is testing rockets. you need to test a lot. >> many of america's top rocketeers work here in mohave. this is where the big kids play with fire. pyro maniacs at virginia aur offer ope to tourists a chance at space. george was a nasa veteran and serves as the ceo of virgin galactic. he gave me a tour of their whichtion, it includes a test area. >> nature does not like what we're trying to do. the art of just taking something that nature doesn't want and building it -- bending into an outcome. >> the spaceship will fire up its own thrusters and head for the heavens. it is a complex system and there are few places on earth where you can work out the kinks. >> if the only place you can design, manufacture and test a rocket motor and then fly into space. >> this is the frontier of american aerospace. >> virgin wants to offer more thank just a joy ride. 700 people go on our space ship. it's more than the number of been into have ever space in 50 years. >> they're going to bring that with them and i think that will have an important effect. >> the story of virgin has been and of great promise devastating setbacks. first 4, the company's spaceship crashed to the ground killing the copilot and pilot.ing the today, at the press event virgin hopes to restore confidence. to resurrect the galactic empire from the ashes. taken more than taken years, still not at the point where we're flying it. has this business been compared to others? >> it is rocket science. it is really difficult. we're just reinventing the wheel completely and reinventing the technology. so it's been tough, but we now have rockets that we know will space.us to >> we feel confident that we are very close to being there. and devoted son, he decorated the spaceship with his mother's likeness and ever go show man, used the spaceship's unveiling as an excuse to throw a birthday grand daughter. accident, 4 after the how close were you? >> i don't think i've ever given up on anything in life would have been irresponsible not to have asked the question. the important thing is not to this.y a program like it's important to get information, make sure it's safe for people to go up, and that we offer return tickets, not single tickets. emily: you can get the full episode at bloomberg.com. to tie up this space talk, in 1958 on this day nasa was created on this day. nasa has sponsored human and mechanical expeditions and launched numerous earth orbiting satellites that health is everything from navigation to determining weather patterns. staying in space, three stocks on a bad run. europe's three publicly traded satellites are all in the red since may. a lot easier it's to make and send satellites into space. has led to overpricing in competition. they believe bringing broad -- and four tv services will rekindle demand but there's reason to be skeptical. in 4k ows are broadcast and on lens land, telecoms are to fiber and broad band to carry tv signals. start up, one ticketing up is bucking the trend to open ticket next. this is bloomberg. emily: a story we've been following. a delaware judge ruled the case will go forward with the trial scheduled in october. he has been trying to reassert control over his $40 billion empire by rearranging the family trust that will control the viacom company. viacom company.1 the fight over his holding has over overshadowed many things. as thousands prepare to descend on rio, google is helping to share the experience without having to leave home. it has launched its street view in the famous flavellas. a global providing perspective through 360-degree photographs. narrow roads mean rather than photographing the streets by car, local residents were hired to shoulder a backpack and a camera. pounds.ng 55 bloomberg's david has more from rio. >> it is meant to be showing what they are really like to brazilians who aren't familiar with them and outsiders. there is a lot of hype and rumor about what it looks like. there is a lot of curiosity. this is a way for people to see. emily: major league soccer just tapped seat geek as its first ticketing partner, bucking the trend in the sports industry. closing ticket networks as tightly as possible to control ticket prices and resales. joining from new york, thank you for joining us, what made you think this is the best strategy? industry rest of the is going the opposite way? >> we are thrilled to be partnering with major league soccer at an amazing time. major league soccer is blowing up. the fastest-growing sports league in north america. i think that it's interesting, we have seen mobile and other secular trends in technology disrupt major industries. with uber and car travel, and hotels. that hasn't happened yet in ticketing because it is a slow moving industry dominated by legacy monopolists. it's inevitable that it will. we share a vision about how that is going to happen. opening the platform allowing millions of developers by great apps by allowing fans to buy -- buy tickets wherever they want, we can fundamentally that will allow fans to have much broader access to the tickets to y want and allows teams sell the ticket and optimize their businesses. emily: can this work for the nfl? are you expanding? >> this can work anywhere. we believe it is the best option anywhere. we are focused on major league soccer. right now as we watch this partnership. going forward, think about it, ticketing in 10 years, openness is the future. i think you will see open ticketing for all sports, music across the board. emily: what about musicals? there's been talk about the musical "hamilton" for example where scalpers have made millions. and you had the musical companies themselves trying to counteract that. it is incredibly difficult. >> hamilton has been interesting. it's another case where because the existing systems are closed, there is no good way for the seller to know who is buying the tickets. if the seller is look at a social media profile, they can make sure tickets are getting into the hands of real fans and not brokers. or other folks they don't want to be selling to. emily: tell me about your relationships with uber and airbnb, and the partnership that you have which enable customers to buy tickets. >> we just launched yesterday. we're still at stage zero in terms of forming partnerships. the beauty of it, any e-commerce channel can integrate with the platform and work with teams to sell more tickets. if you are looking at snapchat and see fans snapping about a game, if you bought a hotel and -- you can buy tickets in the paup. hotel and you a want to see a game nearby, you easily within the experience so we're bringing ticketing and entertainment to people where they're already shopping. emily: and you have some big-name investors. eli and peyton manning. we'll be watching seat geek cofounder. >> thanks for having me. trending in tech, political gifts. the presidential candidates are surging in popularity. since the conclusion of the democratic and national convention, giffy has generated half a billion views with numbers like these that can only be assumed gifs will play a huge role in the election. that does it for this edition of bloomberg west. do, not miss our and ersation with roger partners. that is all today from san francisco. happy friday. have a wonderful weekend. this is bloomberg. ♪ e >> the following is a paid advertisement for time life music collection. do you remember your first dance? your first kiss? your senior prom? and falling in love for the first time? what wonderful memories they are. >> sherry, can you come out tonight