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tv   Bloomberg West  Bloomberg  October 26, 2015 5:30pm-6:01pm EDT

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emily: tech investors gear up for another crucial week of earnings. ♪ emily: i am emily chang. this is "bloomberg west". larry ellison takes a swing at ibm and sap. a hail mary or solid game plan? live streaming the first nfl game ever. microsoft throws down the gauntlet, opening its first
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retail store. first, to our lead. another wild week of earnings. kicking things off, iac.-quarter results from , $.78 perof estimates share. an and deal with google that would generate $4 billion in revenue. tomorrow is one of the biggest days of the quarter. first up is alibaba. investors watching for signs of growth as performance is so closely tied with the chinese economy. the stock has been pummeled since november ipo, but has seen some recovery. some wonder if the worst is over. later, twitter and apple. 6 is, how well the iphone
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doing. apple shares taking a hit today after a supplier posted week sales. anding me from new york here in the studio. you have followed all these companies for so many years. what are you going to be watching tomorrow. we know this is an iphone company. what are we expecting? >> the biggest thing you have to look for is what they say about the following quarter. not as big of a deal, not as sexy, but how big do they expect demand for the iphone into the holiday quarter. there was a bit of a bearish signal, 80% of its sales from apple, putting out a forecast below expectations.
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it dragged down apple because people wondered how bad it will get for apple. emily: do you think that apple is over dependent on the iphone? how bush are you about the watch, tv, maybe a car? >> you have to put all this in perspective. yes, super dependent on the iphone, but they are an innovative. technology is penetrating more and more into our lives. i think there is a opportunity for the smartphone to reach more people. i wouldn't be betting too hard against them. emily: you said silicon valley is underestimating the power of the internet of things. do you think apple is positioned well there? >> i think everyone is playing catch-up. we don't know what the killer business model is. if we do, we don't recognize it.
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i have been making the case that the most successful internet of things application is uber. they don't think it is because it doesn't have a dedicated device. what uber teaches us is that when you completely rethink how to deliver a service because you have connectivity, that is when you win. if you look at the long game on the apple watch, a lot of it is moving into health monitoring and things like that. how arestart getting -- we going to rethink the health care market. that is a huge market. positionple has a huge in china. alibaba reporting results tomorrow. tom, what are we watching with alibaba tomorrow? we know the stock has plummeted since the ipo, but regained a lot of that back. is the worst over for alibaba? arees, analysts
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increasingly optimistic, analysts have been upping their numbers. the stock earlier in the year did get pummeled, but in the last month that stock has been up 33%, so there is more optimism for what they're going to do. has been changing the way they are doing things, mixing things up, adding to entertainment offerings. they are giving people more thing to do at the alibaba site. he is also reaching out to merchants more. you're seeing some changes there he is making. a lot of people looking at that and saying that we are a lot more optimistic about where alibaba goes from here. emily: how much will they tell us what is going on in china really? and ultimately what's going on with apple? >> in some ways, alibaba is a good proxy for the chinese
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market, so well represented across different parts of the economy. we may get some insight from their numbers. i think the apple store is much more specific. we don't really have inside -- how much of the iphone 6 rollout numbers were coming from china, and we will now see that. that will tell us more about the u.s. than china. emily: what about alibaba's investment strategy? a potentialg about investment in pharmaceuticals, movie studios, and the youtube of china. are they going to give any clarity on the strategy here? >> they have made it clear that you will see more investment overseen to the tune of billions of dollars. i think that is something you will get more insight into. they have to hold the attention of the users of alibaba. it is the world's biggest
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internet market. you want to get them to the site , keep them at the site, and that's why you're seeing bigger investments in the youtube of china. editor of executive bloomberg news, thank you for joining us. i know you will be all over those earnings tomorrow. i do want to talk about oracle. oraclellison speaking at open world saying the company will continue to push into cloud computing. is upship in the industry for grabs, but there are certain companies he's not worried about. >> our two biggest competitors, the two companies we watch most closely over the last two sap,es have been ibm and and we no longer pay any attention to either one of them. always hasy ellison to throw a few punches at oracle. biggest competitors are
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microsoft and amazon. do you think oracle is too late to the cloud here? >> in some ways i do, and it's not just a matter of being late. it is a matter of how they got the right is this model. they fundamentally have the same this is model. samedo not have the business model as amazon or microsoft is crafting. emily: maybe it's better? cloudhink ultimately the teaches us that we can move more quickly at lower cost with a flexible pay-as-you-go business model. it could be a bloodbath for them. emily: it could be a bloodbath. i like that. strong words. coming up, yahoo! says its first ever live stream of an nfl game was a great success. how many people actually tuned in. we dig into the numbers next. ♪
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emily: new problems for blood testing firm theranos. walgreens has decided to hold off on opening more testing centers. it made the decision after reports worsening the technology. businessre biggest partner. walgreen officials met with executives, including the founder, late last week. walgreen's now plans to wait until questions are resolved before continuing with its expansion plans.
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yahoo! and first live streaming game of nfl game ever. 15.2 million tuned in to watch the game on sunday. yahoo! says over 15 million unique viewers watched the game online. bloomberg crunched the numbers and found that only an average of 2.4 million viewers tuned in any given minute of the three-hour game. by comparison, sunday night football averages 24.1 million viewers according to nielsen data. ceo of a videohe streaming company. tim o'reilly of o'reilly media. tim, why is it taking so long for the nfl to find a partner to stream a game live?
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>> businesses are conservative. they often don't act until too late, particularly when technology is changing the rules of the game. i think -- i don't have insight into the minds of the owners, but i would suspect that they just have not done the math correctly yet. the future happens slowly, and then all at once. 15ly: yahoo! is saying million unique viewers. we are cut giving two point? a success. the cnn debate had one million on average. some others have been in that one million to 2 million range. what has been currently happening is an upper trend of people watching online.
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television viewership tells a different story. emily: there were some questions about the quality of the stream. tweets regarding that. leavebuffers and phrases, football to the tv networks. freezes,buffers and leave football to the tv networks, was one comment. comcast different when laser fiber to your house. the internet is not structured like that. you are dealing with different partners. let's talk about the future of yahoo!. this is a big when broadly for them. i think we can say that. yahoo! has been so dominated by the alibaba spinoff. as a person who has covered yahoo! since the early 1990's, before yahoo! existed, what does
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yahoo! become. ? what is left after alibaba is gone? >> a lot depends on their boldness. are they willing to reinvent themselves? emily: you see that happening? >> i think there are opportunities. take the streaming, i talked earlier about uber inventing the taxicab business. -- there are take things you can do with the internet you could never do with broadcast media. >> you have to deal with rights, the league, and -- >> that may be a challenge. imagine people following along on twitter. what if you could follow along real-time live with video commentary? >> look at what major league baseball is doing on the internet, not free, as obstruction product. emily: they are doing pretty
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well. >> they are doing fantastic. it is a different business model. you get insight to the stats and data and what is happening around the gameplay. imagine you could watch the dallas cowboys with emmett smith. the technology is here. they could be an additional revenue stream. anyone could be the one to pull it off that they have the guts to do it. , thank you.ight tim o'reilly, you are sticking with me. a movie people are not watching, steve jobs generated just a third of what analysts addicted. -- predicted. the film came in at number seven, rather than dominating. hurdle in atest troubled production, executives
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trail.ing them for the michael fassbender's performance has been praised. coming up, halo five is out tomorrow. i will talk to the women behind microsoft's biggest gaming franchise. ♪
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ofly: square is losing one its board members ahead of its ipo. he tendered his resignation from the board according to a filing on monday with the sec.
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he will remain an advisor to the board. the filing says it comes as no surprise that "he has expressed from thee to step down board of directors immediately prior to our ipo." on to microsoft, over the last 14 years, consumers have spent $4.6 billion on halo-themed products. leading the charge is xbox. this week's bloomberg businessweek cover story, i asked her about sales compared compared to the previous model. misnomer that sales are down. more,he 360, we have sold so it is a very healthy ecosystem. halo five is a groundbreaking halo game that is taking an
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iconic and new direction for the game. worry how much do you about keeping halo fresh with all the competition out there? what is your number one priority about keeping this the game that everyone wants to play? >> i think that halo has a huge fan base. base,e multiplayer fan single-story fan base, so it is our job to push the story forward and continue to innovate on multiplayer. we have a lot of feedback. there is an iconic feeling for halo multiplayer. we took that feedback with halo five. there is something for everyone, competitive arena mode, harkening back to true competitive halo, and then with halo wars zone, we have something for everyone. player huge 24 person versus player, play versus everything, it is an epic sci-fi battle. with halo five we are trying to
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hit something for everyone. i think it is halo, but is pushing it in a new direction. emily: how much do you play yourself? >> right now, a ton. it is all i am playing. opinion, it is the best halo we have ever put out. halo is one of my favorite games. i do play it a lot. i play other games, but i love halo. i am: i have two boys who sure will want to play a lot of video games. what are your policies and approaches as a parent in terms of the amount game-playtime and making sure they are doing other things as well? >> i think every parent has their own value system. the most important thing is kids are going to play games. i think it is something that as a parent you should do with your kids so that you are there to answer questions and help them navigate what you think is appropriate and not appropriate
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for them. my kids and i play a lot of games together. emily: the ceo of microsoft with the first to go to e3 and see your presentation of his new halo game. how active and interested has he been in the game itself? >> i think we are in a new space with him and the company. he is pushing a culture to focus on the consumer. we are making sure we buildings to delight the consumer. he has a huge interest in gaming because we think differently about when someone doesn't need you, they have to want you. you really think about the consumer and what they want. emily: spending on home console hardware in march of this year had dropped by 29%. the console in the gaming landscape of the future? how does that affect the way you develop this game? >> i think that one of the
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things that we just published in our earnings is that for us users and games, xbox live, 20% xboxase largely due to one. we feel like there is a healthy consul ecosystem, but when you look at everything, there is a huge windows gaming space, mobile gaming space, so for us it is about serving the gamer. with halo five, we are really focused on making sure that living room experience is amazing with xbox one. some: you have had technical challenges with halo master chief last year. how do you intend to win back some fans who may have been disappointed with that? >> we did a beta for halo five early. our intent was to get feedback some oflay, but due to the issues with the master chief collection, we use that time to focus and make sure that we have the full infrastructure to ensure that we would stand out.
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it was a hard lesson, but i think that halo five benefited. i look forward to everyone getting online tonight and tomorrow, and i think we have an incredibly strong infrastructure. bonnie ross, corporate vice president at microsoft. we will be watching halo five as it goes out tomorrow. still with me is tim o'reilly of o'reilly media. i want to talk you about your big conference coming up the second week of november. you have great guests, but some other people -- how do all of these people relate to each other? what do they have to do with one another? >> everyone is wrestling with the impact of technology on the structure of the economy and the nature of work, and this is a time to figure out how you take advantage of disruptive technology, how do traditional companies do this, and how do we
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as a society come to grips with all the changes of the on demand economy, artificial intelligence, robotics, affecting jobs and company structure? you have to understand what these disruptors are doing, how policy response, how we think about the future -- how policy responds, and how we think about the future. emily: what is the one take away that you want attendees to leave with? >> i want people to understand that what is coming at us is a good than the original internet, and they need to understand and get on board and need to figure out how to transform their business. ofly: tim o'reilly, founder o'reilly media. it sounds exciting. thank you for joining us on the show today. good luck with your conference. that does it for scarlet fu "blg
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west" today. ♪ ♪
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♪ announcer: from our studios in new york, this is "charlie rose." we begin this evening with the air campaign against isis in iraq and syria. david martin visited a crucial military base where the strikes around. here is a look at the report that is airing sunday on 60 minutes. caringing bombs and feel. instrains to get airborne the 100 degree heat.

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