you can watch the debate starting at 8:30 new york time. results from sunday the municipal elections in brazil are indications the workers party will not be competitive in the 2018 elections. i'm mark crumpton. forlet: i'm scarlet fu in emily chang. this is "bloomberg west." stick costello says advertising is not twitter's only means of revenue. china has dj has been selling drugs to professional for years. the gopro's ceo ways in. can companies gain from digitizing the supply chain? we will discuss it with the former ibm ceo. first to our league -- facebook wants a rematch with craigslist. marketplace allows users to post items for sale. the social networking site started a similar service in 2007 also called market lace. facebook sold the business to another company. they are entering the space with the likes of craigslist -- craigslist. joining me from san francisco is bloomberg news reporter, sarah frier. name as its first iteration, so what has changed? what has changed is most users are on mobile phone. on desktopions were computers. now people are on their cell phones and craigslist doesn't even have a mobile at. this is an opportunity for them. a new iteration of marketplace has been in testing for more than a year, so what do investors know so far? testingacebook has been the marketplace features within their facebook groups and what they have found is about 450 million people use marketplace features each month to buy and sell stuff. actual transactions don't happen on facebook. it's more of a craigslist thing were says i'm selling this or that and ordinate either through a messaging app or e-mail how they want to exchange. scarlet: does it make money for facebook? guest: absolutely not. but it might help will get more familiar with transacting on facebook which could help raise book solve its problems. when people go to facebook, it's the place to hang out with friends. they don't really go there to shop. people associate this marketplace mentality was being on facebook, that could open up opportunities for the future. scarlet: sound critical to crackok's effort to e-commerce. is this something people in silicon valley are excited about? to you daysw a hit shares, so maybe that is leaving investors concerned about what that could do to other layers. in silicon valley, facebook hasn't quite cracked the code in e-commerce. they have tried a few things. button ande buy gifts that you can give people on their birthdays, including the prior marketplace features. i'm eager to see how it works. i'm not sure it will change things on facebook but if they have seen any behavior, maybe this is their way to capitalize on it. bloomberg news reporter, sarah frier. stay with me because i want to give it to another story in socially you. twitter shares popping after dick costolo said m&a is not twitter's only option for growth. brad stone, our senior executive editor asked about this latest project and about potential sales rumors at his former company, twitter. delivery are trying to programming that's very specific and personalize what you need to do today. delivering not just to you but to a small team of friends, family or coworkers connected to you. some positive reinforcement from your team to keep you motivated. it helps connect you together to make sure i'm supposed to do something today and we are supposed to connect and do that together. kind of social accountability we are trying to bring online networks off line in the real world. >> how do you anticipate making money from it? bob: it will be a subscription model. personal trainers cost up to $100 an hour. the boutique fitness classes are sometimes $30 or $35 an hour. for less than $10 month, you'll have personalized programming. >> what got you interested in this? have --t is something i dick: i have been wondering why these platforms haven't really reached scale and its generally because they are focused on a or not anycycling other kind of jim work out or they have this social component, instagram,tter, pinterest model and there's no one there when you don't do something you are supposed to do, those things were great for what they are built for but we want to bog -- to broaden the appeal and deliver value to the people who cannot keep motivated. it will be in beta. >> i have to ask about twitter -- reports came out last month that it was possibly up for sale. google and disney have been mentioned. it is an acquisition the only way to restore twitter to growth and health? dick: i think twitter can be a companyul, independent and i think the world of the team over there. the senior leadership over there -- i think there are lots of different ways twitter can be successful. scarlet: that was brad stone speaking with dick costolo. sarah frier is still with us. i want to pick up where they left off. potentialf the acquirers, we are google, walt disney, salesforce -- are there any that are a more logical fit? we're hearing a lot of different things from investors and analysts. something disney makes the most sense because they are a media company and their close ties between dorsey and bob iger. she respects him for having turned round disney in the past. some people think silicon valley. have tried to bid for linkedin and it may be their way to do it. i'm hearing more skepticism about google but they have retained lazard to think about whether to make a bid and they have a his three of being interested in twitter and then deciding not to go for it. what kind of price tag or valuation have you been hearing? sarah: it's two soon to say. the bids have not come in yet and we need to see whether they will. that could happen next few weeks. scarlet: is twitter content to wait it out for the best offer or is it in any kind of pressure to sell itself? sarah: jack dorsey would prefer to have the fourth quarter to prove out his vision for twitter as a live form. i don't think there's lot of urgency except for the fact people have been placing their interest on twitter right now. the bankers will try to make it jack probably once a chance to prove -- this is my speculation, that the live video stuff can drive growth at twitter. just someerhaps urgency from investors. sarah frier joining us from san francisco, thank you so much. netflix shares popping 6.5% in monday trading. investors could be reacting to takeover speculation which has led the company also to disney. however the likelihood of a deal has been discounted. a slowdown ing at subscriber growth after a week second quarter. netflix has declined to comment on any deal. gopro wants to clear the air about it sales strength. and an early announcement from tesla sends investors into overdrive. this is bloomberg. ♪ scarlet: gopro's new cloud connected camera hits shelves on monday. it's the first camera refinish two years. its highly anticipated by investors who sent stocks surging. in addition to its flagship action cameras, they unveiled their long-awaited consumer drone. a just days later, the biggest drone maker in the world came out with its answer to the karma, leaving gopro investors uncertain of the company's prospects once again. of ohne sat down with ceo pro and asked him about prospect for the hero five line. guest: a lot of consumers are excited -- it's the two most convenient gopro's we have ever made and the two most connected gopro's we have ever made. when you plug it in to charge, it can load photos and videos to your go pro plus account so you can access that footage with your phone and make an edit on the go. just about tot capture great experiences, but we are and and two and storytelling solution. brad: gps, with technology, is a cheaper now? nick: $100 yes for the black edition. care of five session is $299. that takes our best selling originalormfactor, the session is the second best-selling camera in north america but we have made it four control andvoice the ability to offload to the cloud, image stabilization and make it easily the most powerful session camera we have ever made and a great rather to the hero five black. skepticism has been about your financial results since it has been a while since you refreshed the line. what does it mean for your relationship with partners like walmart and what do you expect this holiday season? nick: there's a misconception that demand has been waning. the rate at which our consumer customers are buying gopro's of-the-shelf, that rate purchase has never been better whereat was with 04 for people are getting confused is they are looking at our revenue slowed down to clear the channel and selloff all that in tory to make way for hero five. 2016 was admittedly a bit of a correction year because we entered to a product that confusing price points. now: you have two products are you expecting a record season? nick: we have hero black at 300-9980 have karma. brad: how big of a part of the business to expect that to be?: it's going to be a phenomenal contributor to the ecosystem. our customers can fly gopro's and capture incredible aerial and handheld footage. brad: it is nicely full double. but since you announced it, you have a big competitor that announced their own foldable drone. pushing the envelope on some features. their foldablect drone to impact the market? you: you had one and crashed it on your first flight. brad: for the record, my brother crashed it. it is currently shelved. make what we have done is flying a drone extremely easy. we have customer service with replaceable parts and we are a very customer first company. if you have a problem, we will take care of you straightaway. it is a technical failure, we will replace your karma, no questions asked. muchg a karma will be a easier experience and consumer friendly, but it is more than a drone and all of our competitors are making drones. capture aerial footage, that's all their product can do. the gopro karma is more of a hollywood in a back pack solution. you can take it to the beach and if you don't use it, it's no problem because it's so convenient it did not given your way of having a good time. chinese makers are closer to the supply chain and arguably have a price advantage. does that outweigh the customer service advantage you are talking about? nick: i don't inc. so. ofma is $799 without a group -- without a gopro. have it is, you can argued leave the most advanced yet easy-to-use personal ill making solution that has ever been, rivaling technology that you always hear about. brad: that is the already existing customer based owners. that: but you can get it bundled for $1099. even compared to anything our competitors are doing, it's not only price competitive, it's lower price than what we see being offered by competitors. we think gopro is delivering the most convenient drone solution at the most attractive rises. brad: i wanted to ask about snap chat spectacles is that a business you want to be in what do you think of the product? : i think it is clever and inventive and the more companies like snap and gopro can help motivate and encourage the bulls creativity, the bigger the overall market growth. scarlet: that was nick woodman speaking with the executive editor of global coverage, brad stone. coming up, how technology is taking up the supply chain and what it means for the bottom line. this is bloomberg. ♪ scarlet: microsoft has spent more than $3 billion building up its cloud infrastructure in europe, including a billion dollars in the past year alone. it's part of the ceo push to win over amazon and google. in an interview, sasha dela says it will open data centers in france next year and has doubled its computing capacity in the region. microsoft is focused on special cloud offerings. europe, for the past three years, a startup has tried to change the relationship that kids have with their computers. they make a colorful, do-it-yourself kit that requires youngsters to build a kit from scratch and sees them off i series of coding lessons. londonvance traveled to to visit their offices and learn what kind of long-term impact the toys might have. >> founded in 2013, a startup based in london has built a do-it-yourself computer kit for kids. and teaches0 youngsters about electronics and how to code. these three lovely children agreed to be our guinea pigs. making ake a crack at camera. should we let you guys get to it? take it away. is it fun to build your computer and suggest grabbing an ipad? >> yes. ask what's fun about it? >> it teaches you about tech. i want to be an inventor when i grow up. thedude floating around office is alex klein, a former journalist who decided to give up on the most noble profession imaginable to help kids get their hands dirty with computing. november of 2012, we were playing around and you can do so many things -- they were sending it into space and under the ocean but we were having trouble getting started. >> so you wanted to make a kit simple enough for a kid to build themselves. >> exactly. this generation is only experienced computers in the post-jobs era. the notion was to break apart and let a person build a computer from the inside out. >> it's all about creating tools that inspire and encourage creativity. >> they are building apps worth millions, solving local problems in ways their elders never comprehend. if you give them something as canrful as a developer that make a robot or server, you will see what this generation can do. >> you want to make something that does your cooking, cleans up your room and fixes your stuff. >> that would be amazing, wouldn't it? that was bloomberg's ashlee vance reporting. coming up, we will get you ready for the week ahead in tact. withto look forward to google taking on amazon's at go with google home. don't forget to check us out on the radio. you can listen on the bloomberg ius/xm.pp and on sir this is bloomberg. ♪ mark: i'm mark crumpton. let's begin with a check of your first word news. the state department says the u.s. is suspending participation in the russian talks to stop bombing in syria. >> it is disingenuous of russia to fight the united states threat to strip -- to cite the united states thread as a strategic stability. we seek a strategic dialogue but it is russia who continues to mark: persist in stabilizing activities. russia says the u.s. failed to carry out its promises and syria. columbia positive leaders say peacere willing out the plan is no legal effect because the deal is already sign. -- votersected rejected the amendment. the plan calls for farc rebels their weapons. turkish officials say state of emergency declared after a failed military cu in july will be extended for another three months. the state of emergency is allowing the government to carry out a massive crackdown, arresting some 32,000 people. the nobel prize in theology or medicine has gone to a japanese workgist honored for his on how cells recycle their content. dayal news 24 hours a powered by more than 26 hundred journalists and analysts in over 120 countries. i'm mark crumpton. this is bloomberg. york.ust past 6:30 in new paul allen has a look at the market in sydney. paul: we start off in new zealand which has been up and running for 90 minutes and is already off .5% following a tepid lead. andave futures looking flat we are expecting declines with futures pointing to a drop of .4% on a local index. australiae bank of decision today, no change expect it or just a 3% chance of a cut. a record low amid an environment of weak inflation. australiath bank of and other banks will face a parliamentary committee hearing scandals that have been plaguing the sector, including four financial advice not passing on cash rate cuts from the reserve bank of australia. all this amid an executive renumeration and record profits as well. it's going to be interesting to watch. i'm paul allen for bloomberg tv in sydney, australia. scarlet: this is bloomberg west. i'm scarlet fu in for emily chang. time to dive into the text stories that are front and center in the days ahead. first up, tesla. shares soared after the electric car battery maker announced on sunday that it beat analysts estimates for third quarter deliveries. it followed consecutive misses in the prior to quarters, so what does it mean for their ambitious sales forecasts? us from detroit. closed out its quarter on friday and if you come inside the bloomberg, you can see the number of deliveries for the third quarter some passes anything it has done up to this point. this quick toly come out with a date? guest: they had good news to share, so they wanted to share us -- to share it. the analysts were looking for about 20,000 deliveries or maybe 22,000. they came in at 24, so this has raised a lot of optimism about raising the target elon musk has said to sell 50,000 cars. what does it tell us about tesla possibility to prioritize or what it was prioritizing before? was a great scoop about the memo sent to the employees, telling them to sell because they're going to raise the more capital. they want to show they can be a profitable enterprise. all of this shows is when they put a push on, they can move the metal. scarlet: we have another chart that illustrates how tesla is building up its inventory. the white bar shows the number of cars used minus the number cars sold, so the inventory. the blue side is the value of their finished goods and the criticism has been tesla does not have enough cars to meet demand. as the company put that to rest now? guest: they certainly seem to be meeting demand now and they did eat to build up in the tory. they had the model us and the model x and they're going to add to the complexity with the model three coming at the end of next year. they are trying to show they can juggle a lot of things in his was a good sign of that. gadfly: a bloomberg reporter pointed out that the last time they had a surge in delivery was 2013. do we presume profitability will take a hit with deliveries jumping? guest: not necessarily. in the auto industry, if you sell more cars, you make more money. hereshould be what we see and that is what is trying to show. torlet: we know tesla needs get a pop in the share price because it needs to raise more capital. do we know anything about a timeline in terms of raising capital? guest: i think they just want to show some positive numbers. it has been a long time since they had lacked incan and want to show they have been a profit making venture. that is hopefully what it will do for them. scarlet: we want to switch years now to the salesforce annual dream force event. unusual land of business, technology and philanthropy. us from san joins francisco. this event link its downtown san francisco. what usually happens at a dream force event? brian: salesforce is a marketing machine and you see that on full display in san francisco. it not just people going to the event itself. for sanig deal, even francisco. dream force is sort of special. scarlet: how much insight do expect the company to share with us? brian: the big one will be artificial intelligence. artificial intelligences becoming a much bigger issue in silicon valley and salesforce is not going to miss that trend. talking about new things around einstein andd helping people do cool things by letting machines figure out what they could do better. it will be interesting to see how it plays out that will be a major theme at dream force. scarlet: something else investors will wonder about is the company's m&a strategy. the company made nine purchases in 2016. is a function on the bloomberg that shows the most recent acquisitions by salesforce. what can you tell us about the strategy when it comes to acquisition? this is a big issue and will overshadow dream. investors are concerned about what's going on with the him and a strategy for salesforce has been very aggressive, spending over 4 billion dollars and when after linkedin and got outbid and didn't get it. now, we hear they are going after twitter. there some angst about what is going on here. angst about what is going on and how wide is this not going to be? definitely a lot of questions. and the question we have is how might twitter fit in with salesforce? based on the conversations you have had, what the logic behind such deal? there's a little bit of linkedin here. linkedin is an amazing trove of data. twitter, you have some of that awesome data. there are a lot of executives and white collar workers that could fold into that salesforce business software. no mistake, it's a social media platform and it's not like a business-focused linkedin. it's not as obvious as linkedin. a lot of people saw the logic in linkedin but twitter is a harder let's movescarlet: to google because they event is set to kick off on tuesday with the company set to announce new products to its portfolio. what are we expecting to hear from this event tomorrow? it's another event with a tech company talking about ai. we are expecting to see google put out their home device, which is there answer to the go. and virtualsearch assistant wrapped up in one. that will come out with a new line of phones every fall. linee has put out there which is what they imagine the ideal android will look like. there is anticipation they will exert more control over those phones. are called pixel and pixel xl, so they are rebranding it. why is that? they look at the ecosystem and it's very fragmented. they have dozens of oems and are not a to the latest software. whereas apple has the advantage and out the iphone almost immediately. google needs to compete at that level and they need to get at that and push android ahead. sales have not done very well and perhaps they're just starting from scratch. threat doow big of a for thedels those iphone which has been losing global market share? guest: google has historically not been hardware very well. nexus, not with google glass. the one device have done well with his the chrome cast. that came in much better than the alternatives out there. they no evidence that could compete in that. does it what is -- how stand up against the amazon at go? given me a have not product to test out but there's a lot in the ai and machine learning world and the understanding that google has ,his massive fortress of data much more than amazon or apple and it might be even better. alexasome questions that might not be able to field which google could. prove. a case to the ago has done well but it's only a small, niche market. when it comes to google's efforts in ai, is it a leader or follower? guest: it's a leader. the critique is they've done very well in ai but it doesn't necessarily translate to products yet. is not as advanced on some of the research but they put out a go first and are leading the path. the advantage of being the first mover. thank you. still to come, how technology is shaking up the supply chain for global companies and what it means for the bottom line. we will speak to the former ceo of ibm. on tuesday, we had to st. louis where senator tim kaine and indiana governor mike pence will face off in the first and only vice presidential debate. join us at eight: 30 p.m. in new york for special coverage. this is bloomberg. scarlet: blue apron said to be on the path to surpass a billion dollars in revenue over the next 12 months. the groceries startup would hit the target if it cap surpassing monthly sales totaled. bloomberg news reported blue apron would be valued at about $3 billion in an ipo. at how technology is being used to deliver value across the rest of the economy, the center for global enterprise released a report focused on how digitizing the supply chain can drive revenue growth. what does a digital supply chain look like? joining me is the chairman of the center for global enterprise and the former ceo of ibm and an independent advisor for bloomberg. chainsne most supply incorporate a lot of technology there, taking advantage of what is available. so forgive me for asking a basic question -- what's a digital supply chain and what do people get wrong the most? guest: historically, the supply chain was about the movement of goods and lower price point and higher service levels. with big data and analytics, there's a lot more available. and self driving vehicles, robotics, 3-d manufacturing and 3-d renting, technologies are impacting the supply chain from the conceptualization to the socioeconomics and pricing costs associated with it. if you think about it, it's digitalization of the supply chain and to end whereas historically, it was analog. industries or companies are ahead of the curve implementing this? guest: we had 24 companies work with us ranging from dow to american express to a few companies from outside the u.s. cross-section of companies across all sectors and all of them are working on this very same topic because it creates a huge advantage when they get it right. scarlet: in a world of slow growth, there's a lot of interest in up my thing any of the supply chain. how much to they have to put into something like this? things --re are two to get it right, you have to work on four things -- people, demand, shaping of revenue curve , you have to work on the technology that supports all and to work onu have risk. those are not necessarily in investment items. if you do this well, you will improve the revenue 10% and reach your cost 20%. that's a winning formula for any company. scarlet: it's hard to resist those double-digit percentages. and people talk about digitization, there is fear because it leads to people asking whether their jobs are in jeopardy. what with the wide spread adoption of things like that mean for the workforce? guest: lead to mass layoffs? is a skill shift and we've always gone through skill ships -- an agrarian economy to an industrial economy. you have to skill up. the question becomes, there's going to be tons of jobs created. take fiber. there are 6 million open jobs for cyber. for presidentudy obama. there are a million jobs open in the united states. the key is to grow the skills and if you are an individual, how do you create the skills? anything that can create revenue can generate profit and more reinvestment. this is i would imagine something presidential candidates would want to press on rather than going to this idea that you can bring manufacturing jobs back from abroad. it seems like this is a case where that ship has sales. -- that ship has sailed. guest: historically, within the supply chain, lot of the death moves from i will call it was to east. now with this supply chain, you can optimize regionally. as a political candidate, you would see the benefits of these kinds of technologies in the could drive investment into your region which would generate more jobs and it's all about jobs. area, the fact that 24 ceos volunteered their head of supplies is a statement of huge interest in the subject. expertise in supply chains a way to get to the ceo job? cook, guest: it worked out that way. tim and i worked together at ibm before he went to apple. if you think about what skills you get in this area come you get horizontal skills. but you can see the business from and to end. you can see it across the country -- across the company. past,as happened in the ,ompanies like airbnb are uber they've trained vertically. thiseason we created center was to create curriculum learning surroundings horizontal approaches. therefore, anyone who has that kind of skill that can see a company and to and will be better positioned in the future than the world i grew up in 30 or 40 years ago. think ofwhat do you what is going on with ibm in terms of how they are spending their cash they are much more aggressive on the m&a front. guest: i don't know, because i've been out since 2011. i have no factual input and i think it is a smart thing to do. organically,do it that's still $6 billion, more than almost the entire industry spends. you will have to buy these kinds of technologies. thank you. we appreciate it. tomorrow, do not miss our conversation with roger altman new york time. this is bloomberg. ♪ scarlet: google will reject eu charges that it is operating a monopoly. the newspaper says the parent company, i'll bet, will respond in weeks to three separate charges of has broken european competition rules. it has to do with its online shopping business and android operating system. now to a story trending -- toyota plans to sell a tiny robot to buy companionship in your car. it will hold basic conversations, identify human emotions and react to automotive applications. it will be on sale for $392 this winter in tokyo. doesn't for this edition of "bloomberg west." this is bloomberg. ♪ >> from our studios in new york city, this is charlie rose. firste: it was the spacecraft to successfully early -- orbit a comment. here in new york, daniela hernandez from the wall street journal.

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