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tv   Bloomberg West  Bloomberg  May 5, 2016 6:00pm-7:01pm EDT

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that at this point. i'm not there right now. he continued, what is required, we unify this party. former republican presidential nominee will skip the convention this summer in cleveland, and march romney delivered an attack on trump calling him a phony and a fraud. n and karr, alberta is under a state of emergency. and wildfires have torched 1 husme 600 homes in forth mcmurray. and more than 80,000 residents have fled. and at least 28 people are dead following an air strike on a syrian refugee camp.
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the camp is home to people including a province. powered by our journalists and 150 news bureaus around the world. emily: this us "bloomberg west." first quarter report card is out and how the payment company tends to fend off competition. nap chat ries about and where he thinks new media is heading. a evolution, the founder of the
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academy. first to our lead. shares down as much as 16% despite the first quarter revenue. and ues was $739 million investors are disappointed in that loss. what does the c.e.o. need to show wall street. c.e.o.a former what would you pull out herement here? >> and there was some commentary preceding the nd financial statement. and challenging market conditions. square in the way they extend edit to small businesses and
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$154 million. take that credit and sell it to investors. and don't have that the credit risk. and very attractive to investors. challenging market conditions and couldn't sell the paper during the quarter as quickly as they wanted to, and that is a big worry and going to get any profits. but can't sell the paper. emily: talking about square capital, giving up cash advances and turned it into loans and investors have been optimistic about, right? >> that is a part of it. but that isn't unique. that situation is challenging in temperatures of finding investors. >> they haven't had a problem until now. emily: is it macro economic? >> it does aren't matter.
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if they can't sell the paper, they can't grow the business. >> there is a bigger story here, they grew by 64%. there are companies that are growing at that sort of clip and continue to spapped a product sect. i think they see themselves as an operating system for small business. emily: let's talk about this, we saw results from paypal and they performed well over the first quarter. competitor torect square and they are doing well. you know, online clubs have complained that wall street hasn't understanding them. does wall street understand square. take a listen?
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>> it is a relatively new industry particularly on the lending side and there is an evolution of understanding an appreciation for models that work and don't work. and i think there will be a bifurcation as we come through this credit environment. business models are evolving. emily: do we need time? >> she was saying a bifurcation between winners and losers. >> these guys are killing it. the products they have for customer management and employee nagement, their new i.i. squares can be powerful and a point, they are loved by their customers. they have a score of 70 go, which is off the charts.
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on the merchant side, they provide a much broader side of services. emily: what services are you most optimistic about? >> hell pping the businesses. scheduling services to managing employees, managing their point of sale and doing it in a design -- more like a consumer design pralkt and that is one of the real innovation. it is a combination of product, design and a great management team. >> if you sell something for less than it costs, you will be popular and that's what we have. and the growth is fantastic. but if they can't turn the capital business, they can't he sell the paper and still small numbers, but a long term
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customers. emily: paypal is trying to get into the business. how are they these more established players? >> they are in a good spot. they have transaction data and see the business and making loans to. they expanded the suite of loans and provide a wider range of options. don't see them competing with paypal and starting to go online with the new products, but i think paypal is lending on the consumer side, perhaps they will get into the merchant side of the business. $50 million is a settlement. they settled the suit. al payment which meant that the
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case wasn't looking good and that problem goes away but goes' way to a substantial cost. emily: cory johnson and chris, thank you both. staying with earnings. a % boost. asia's largest internet company, $3.7 billion. new users and thrugging off concerns. security and looking at these results, you see they are performing better than china at large, what do you make at that? >> even if you are concerned about the chinese economy, which i am, the consumer in china is the least of your concerns, because the effort is to
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transition the economy. and nobody sells more to consumers or helps consumers more than them. that's the result they had so far. if you are going to be in china and beyond the concerns, it seems to be a good place. emily: what about the ack which situation strategy and they have made big investments at home and abroad and trying to put together the grander plan. is that starting to emerge? >> the investments are doing very well. and just gave an update and companies they don't consolidate is 37 million. the owner of the company. hey made a lot of money in investing and so in terms of
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making investments, they are doing well, the one they consolidate is expanding gee oggra files. and they are going to consolidate. they want to expand in an emerging market. they are consolidating and that's where their strategy is at. emily: we talk about the google cloud and they are making big strides in the cloud. >> one of the things in a the entiate them is that leadership there are playing close attention to what works for amazon. expanding the cloud business and they are following that playbook and grew more than 150% this quarter and some incredibly
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platform. >> at a certain point, should we be more worried about the macro environment in china? will that catch up? >> it's still a big concern. it is very uneven and the consumer gets it, too. so that's one concern. the other concern that you have o keep in mind is their losing share. 40% of the quarter. and that is something to look out for. 10 years ago if it was much bigger than amazon and it is like the amazon of china and growing a lot faster. emily: what about international growth. a question when the revenues for international will be on par what they see domestically. >> it is growing very fast, both
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their consumer and their cross-border business is growing fast. the demresk side is small but expect it to change and make the russia business bigger. and their india business is going to grow as well. emily: thank you, great to have you here. staying with earnings, a deep loss in the first quarter .ar loss of share of 6 cents. sales sliding to r50%. nd consumer demand for the products addressed concerns that the market is close to sat you areation and the company is challengeed. we will go into
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with michael chertoff, next. ♪ ♪
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emily: just the latest example of how the biggest tech companies are making their content accessible to local law enforcement. former homeland security michael chertoff from washington. secretary chertoff, thanks for joining us. at do you make about what is happening in brazil and what happened and why. >> the judge ordered to turn over certain data which was present in the u.s. and u.s. law would have created a problem. so in order to put leverage on
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the company and hurt a lot of innocent people during the three days that the application was shut down. this is one example of a larger problem in a world which is divided among sovereign states but data moves around the globe. emily: officials have complained about u.s. laws have been outdated and preventing the work of law enforcement. what do you think the problem is? mile mile our laws are nation state based and can control the law within its domain. the challenge with dealing with data, housed anywhere in the globe and moves around the globe. when a law enforcement in one state wants to get data on a matter they are investigating, the issue is, is the data in that state, in another state, do you have competing or existing
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rules of law, that puts companies they are damned if they do or damned if they don't. and the consumer could see their politics shut down and be third-party victims about what law governance. emily: are their mixed not iffs on all sides? ook at the outrage by snowden. >> from one standpoint you have countries, we don't want that information turned off. weanother case, they say and are protecting us from terrorism. in countries where there isn't freedom of speech, the desire to punish a political opponent might not be acceptable and we refuse as a nation to cooperate in turning that information over. so the question is how do you
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come up with global standards to allow law enforcement with proper authorization to get access to information that prevents terrorist attacks but not allow nations to expose their views on political issues on other countries in the globe. emily: what is the evidence thatful law enforcement had had access to u.s. tech company data that those attacks could have been prevented? >> what appears to be the case, the problem is not access, but the authorities had information and didn't follow up on it. recently reporting with respect to a couple of the main actors for at least a year or two, authorities in belgium knew they were planning something and didn't execute warrants or didn't take steps. sometimes it's easy to blame these international differences
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for failure of intelligence. i think what happened in belgium it is a union issue than it impacts american law. emily: what needs to change? >> we need to reach common decisions about the law. if for example, a country wants to obtain information about a citizen, should the law of the citizenship prevail or the data prevails. you are basically going to fragment the internet and every country is going to insist that they keep data within that country and that destroys it. if you want to set a principles, a citizen has the right, but if they want to get data, they have to comply with the rules that govern that country.
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emily: encryption seems to be the way that the tech industry is going, is there anything that the tech industries should be changing as well? >> the purpose of encryption is to protect security. when we encrypt, we are making it harder to get the data and exploit it. ose people who should we weaken it, they are arguing we should where are law enforcement wants to promote security in a particular case and it's a mistake to trade-off security in germ. there are things that intelligence and law enforcement officials can do with respect to data that is not encrypted that are powerful tools and we have been doing that for years and
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quite successfully. emily: what i'm hearing, for a company like apple, that they say they do whatever it takes to make information more and more difficult to decript, so to speak. >> i should say we work with apple. he companies that are creating strong encryption ought to do it because they tr protecting people against criminals and terrorists. the other ways that they can get access to data and cooperate to get the proper legal authorization. emily: former homeland security director michael chertoff. coming up, is the driverless car revolutionary? self-driving taxis coming to a
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cityner you? ♪
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mily: showers in after-hours training. and 9% after the company raised its projections for the year. d yellp's revenues rose to topping estimates. and rose 40% and in the quarter.
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and amazon could take a 30% stake in at last air. second such deal to take control . part of the agreement. 20 boeing planes. and shares of at last surged to 51% in trading. coming up, we will hear from a an, founder. . snow noo
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>> joined by paul. paul, good morning. >> good morning. another day of declines on wall street means we are expecting an goly finish. half of a percent and declines of up to 1%. pan is going to reopen and tching shares and and in the past three weeks have been lamed on faulty airbags. ♪ emily: let's turn now to education and one man's vision y supercharging learning and
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now serves over 37 million students in 190 countries around the world. found are and c.e.o., it's been over a year since we last spoke and c.e.o. who registered students, give us a take on where you are now. >> looks like we are having a little bit of trouble to hear us. it's been just over a year since we last spoke. give us. record number of students -- i think we are having some trouble. and talk about a few other things. looks like comcast purchased it brs 3.8 billion.
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they are coming with earnings in every category. this is the paid tv sales. ising over 2 100%. d disney c.e.o. had a rare meeting on thursday comes a month before the theme park in china's financial hub. and vice chairman of the business council. at the meeting, the relations have maintained a momentum of some development. d back now to founder of the academy. it has been a year now sips we last spoke and record numbers. video, teachers and students. give us an update.
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relevant to mobile. there has been a lot going on and we continue to add more content. ily: and this goes to this school and sort of like they are opening a brick and mortar school. what have you learned? >> our mission is a free-world class education and we take that seriously and starting a physical lab school and let's use that as a lab to understand where the best learning can be. you have an environment and building a portfolio of their learning. we hope to share it with many more people and incorporate it. i have learned a lot of how many people think the virtual and the physical are in competition with each other. if students can learn, master
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concepts, it frees a lot of time for more projects, for more peer tutoring. you can have mixed environments. i have seen my own son in it, and mentor students and really mature students in a positive way and maybe more valuable than the math or the science. emily: $22,000 is a lot less than a lot of private schools. u have a local teacher and mark zuckerberg if we are aren't back in the same situation, where we have public schools that everyone with afford and
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elite schools where few people can afford. >> the lab schools, i can't speak for all of them, there is a feeling that the model of education, this is the model we have seen in private schools, the factory model, you have to lecture and you have this these algebra d get a c in and move on to precalculus and the students are hitting walls and can't build things. in the lab school. that's where we share as broadly and widely as possible, if you have nothing, you can access the smartphone and educate yourself and part of a physical classroom
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and be more personalized. the point of these for the con lab schools and what musk is doing, pioneer new models and be a catist. we are working with the public schools. we are learning how to get to more proper screct based and allow more students have agency over their learning. emily: next week we will be in boston talking about talking to people at harvard and you have m.i.t.'s and from one of the most decorated people. if you had to do it again, would you get all those degrees? the ople ask me about what
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college dr the number one thing is the people you meet, push you to become better. and boston, m.i.t. and the whole town is a big college campus and pushes you to become a better person especially intech lunge ally. >> emily: how long do you think a harvard, m.i.t. or stanford, will they be around for hundreds of years and if so, how will they change? >> i think they will be around for a very long time. i don't know about -- hard to predict 500 years in the future. today, no one would doubt the types of research. they are pushing forward, whether medicine, science,
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humidities, the he undergraduate experience will exist. we will see differences. i imcombine the college of the future, it won't be insighting in lecture halls, but much more about becoming part of that community and portfolio things -- it might not be four years, but that's your transcipts of the future and the facilities and the labs in order to build that portfolio. emily: as always, great to have you here on the show. and as i mentioned, "bloomberg west" is heading east. we will be speaking to a lot of guests right here on blook berg.
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ming up, big changes are afoot. we will hear from the c.e.o. why for eated an entire studio snapshot.
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>> email is a mobile application and that's why you see us doing more email newsletters and investing in facebook and snapshot and the visually dynamic on mobile. we have a great brand and we ant to unleash the great bands and really take advantage of our skills where they are big. so we are excited. emily: i'm curious. was this your idea or snapshot? >> we met over a year ago, i think they were aware of the great brands and we are creating brands that are designed for digital consumers who tend to be young and young adults and
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engaged in new media. snapshot is going out to the content programmers. we love their brands. emily: everyone is trying to evolve. what works better? > visual, more germly. video, certainly, but it means great graphics and things that can appeal. words are part of the mix. and it's a new form of story itling and photo imagery and is exciting to see if you can get awed yebses to engage. but audiences want to engage in a different way and we pride ourselves on being great
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storytellers, whether snap shep shot. emily: the verge, how do you lance going and investing in the traditional way? >> that is an important question because we pride ourselves on being able to change quickly. we would like to think we strive not to embrace change but thrive some strongt having core values and holding on to those values and try new things and experiment with new things and we experiment where there are new audiences that are receptive to the marketters that we work with and we allocate
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resources and allocate capital. we scale up and scale down where necessary. it involves looking at a lot of data and understanding your audience and skillset ap being ready for change. we have to allocate differencely. emily: the first tv show and what's the overall vision here? >> we talked about how to program for the snapshot audience and a different kind of story telling medium. television is interested as well. snapshot, television, whether it's a website, facebook or other thing that we see big audience potential to have our brand speak to awed yentiones, we are going to be there. and it's with our brand curb,
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ich is our real estate brand and the working show is talking about big housing trends and covers all the time. stories that we know well. and excited to partner with fyy and perhaps through a new set of audiences. emily: it has been an incredible cries and cut their revenue and their forecast didn't change at ll and put video and a million people come and watch. but it speaks to this fear that buzzy sites, there is this anger being a flash in the pan and how do you balance that? >> we are building our properties for the long haul. if you are not focused on
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quality story telling, but there are companies out there that are not focused on long-term and they are going to have more trouble. we are a multi brand company, because we want to have authority, whether it's curb or the verge talking about technology, each is a leader for digital programming and look back to the magazine companies or the cable companies, each focused whether it is in sports or recode and business tech, we want to make sure we focus on g categories and deliver category and the advertising we produce. that helps us sustain as well. emily: thanks, jim. for joining us.
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♪ ♪ snoo
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emily: david walsh in detroit. how will this work this >> the details are a little bit year. and going to be a you have a car that is awe ton must and still have a driver in the car. will be aier you will need rules
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how driverless cars will be used. it will be difficult to see how in 12 months they will get it done. you will get picked up by a no driver and someone else will book the car and off it goes. drivingand fiat and self- mini advance. how many years will i push a phone and feel comfortable with that? >> i don't know how you will be comfortable. we are looking at -- i think it's still a few years out. the technology is close to ready. general motors has a supercruise. you can cruise on the highway. you can cruise on the highway but doesn't recognize stop signs and that thing. while it is being tested is not
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quite there for the roads and the government hasn't figured out how to regulate it and what the testing requirements are. you will see some test pilots like this one like general to do. - motors hoped detroit.vid welch in thanks for joining us. find out who is having the best day ever or the worst. it coin craig wright is back tracking on his statement, he oes not have the courage to vr additional proof showing he is the creator of the company. we'll bring you the best
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including my conversation with the founding of the game bloomberg he best of west this weekend. ♪
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♪ announcer: from our studios in new york city, this is "charlie rose." the primaries in indiana, donald trump has won the nomination. ted cruz has dropped out as well as john kasich. cruz, i don'tted know if he likes me or if he doesn't like me, but he is one

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