tv Bloomberg West Bloomberg May 10, 2016 6:00pm-7:01pm EDT
on monday, the leader of the country in delegate -- invalidated the decision. opposition activists say at least 10 people are dead and several others wounded following two airstrikes in northwestern syria. the air raids came hours after a cease-fire was extended for another 48 hours. vice president biden has not endorsed either of the democratic candidates but he tells abc news who he thinks will win in november. --we are all anxious to see >> who she is. i feel confident hillary will be the nominee and will be the next president. mark: mr. biden's comments go further down -- further them president obama. donald trump says he has narrowed his list of potential withng mates to about five deep resumes. he says he has not ruled out new jersey governor chris christie, who has been chosen to head .rump's transition team
global news 24 hours a day powered by our 2400 journalists in more than 150 news euros around the world. from the bloomberg news bureau in new york, i'm mark crumpton. "bloomberg west" is next. ♪ emily: i'm emily chang and this is a special edition of "bloomberg west" in boston where we are surrounded by 1500 government and civic leaders for the annual meeting of the chamber of commerce. --come to those turning in tuning in on television and those here in boston. a huge discussion topic is the growing tech infrastructure.
we will hear from the person who helped spearhead the move to boston, mayor marty walsh. first, we want to begin with biotech because while boston may have fallen behind look on valley in internet startups, it is holding its own in this sector. massachusetts gets more than triple li na of funding from the national institute of health in california. venture capital funding also spiked to a record $2 billion last year. the area we want to focus on his cambridge, home to 180 tech companies and all five of the top london hospitals in the united states as well as harvard and m.i.t.. our next guest comes from the isrt of that area and focused on genome scale technology and is using a vast database to help match similar cancer profiles and get doctors
the best resources. foundation's cofounder is here with me as well as the chief commercial officer. thank you for joining us. with biotechrt because i'm curious how boston became the hub for biotech. starts with the universities. you have the concentration of the clinicians and the entrepreneurs. welcome to the hub of biotech. emily: ge says it is coming here corn closer to the biotech or. what do they get? access to a rich population of talent exclusive here in the boston and cambridge area. it is an i.t., harvard, the major medical centers that they
have access to. it is very attractive for the cambridge area. about genent to talk editing. how does what you are working on get us closer to a cure for cancer? guest: we can read the programming code of patients with cancer now and in being able to read that code, we know what the software bugs are and we can sit just what types of their bees might be best matched or that specific patient. to know what that might mean is tremendous. things likeyou hear a cure for cancer, how far out is that? guest: it is a tough disease and enemy and there are probably a thousand different kinds of cancers. we are going through them one by one. for some, a tremendous effect has been had immediately and for others, we are still working on it. a lot of big improvements are happening now. emily: you are working on
getting this covered, but the test are over $5,000. how close are you to getting insurance to cover this? guest: it tends to out pace reimbursement. number of regional contracts now being signed and other pairs are recognizing the data that now we are having a major impact on overall patient survival at a reduced cost to traditional there be. that data is emerging and those pairs are coming online. emily: shares of foundation are down from its peak a year ago. why is that? guest: the whole sector has been down. it is a long game that is fundamentally happening. we are incredibly enthusiastic about the future, but there is a lot of work that needs to be done. changing your story or changing your strategy?
what can you do to rekindle investment? guest: we continue to focus on three primary areas -- education, the ability to take action on the information we provide and fundamentally, it is about servicing oncologists. they simply need evil to be there to answer their questions and help them with patient care as quickly as possible. emily: we talked about this a few months ago -- here we are again. the sector is still struggling. why is that? guest: the fundamentals are extraordinarily strong. there was a time when it got ahead of themselves. maybe there was some consolidation, but ultimately, this is a sector that thrives on proving we are making a big difference for patients. it's that steady progress. i think we will continue to see that as we move forward. emily: when do you see that turnaround? guest: it's happening now.
we had a strong quarter and we continue to do same things we are doing. creating awareness, driving adoption and assisting in positive patient care. pharma sometimes gets a bad rap. when do you see things like that getting resolved? want: what do people question mark people want to live long and healthy lives. best: and afford the technology and medicine. the general contract we have had is if we have the fundamental inner -- innovation that lets people have those long and healthy lives, bringing those important arab east to people who make those differences, i think that ecosystem has worked. there are obviously strains on it but whatever changes we make to it, we need to keep the part that works in tact. emily: i want to talk about
regulation is there's question about whether the technology really stands up. regulators are looking at it even more closely than they were. who is right? are oni think the feds that one, so i will leave that to the feds. the bedrock of making these breakthrough therapies is about data. can you show that these things make a fundamental difference? we are fundamentally different and we do spend and a norton amount of time ensuring that our data is out there to demonstrate our polity and we are working closely with the agency to laboratory.s of our we feel very comfortable with their entrance into our space. emily: we have been talking about how a lot of internet software talent has moved to silicon valley stop what do you
think about why attack? are they here tuesday? ofst: this is the epicenter biotech. down thee walking street in kendall square, you have the academics and clinicians and yet the small companies and big companies and the investors, literally, i walk one block and bump into multiple people and have a commerce asian. sometimes it's about an investment opportunity, -- that critical mass doesn't exist anywhere else. that liquidity is something very special. emily: thank you both so much. now to a story we are watching -- lawmakers are getting involved in allegations of liberal bias at a book.
in a letter to ceo mark zuckerberg, john and asked whether stories with conservative views have been excluded from the facebook section.topic this comes on the heels of a story published by gizmodo that cited unnamed a spoke contractor encouragedtors were to label certain stories as trending even if a were not popular and leave conservative stories out. writteny rebuttal was saying we take these reports extremely seriously and have found no evidence that the allegations are true. gawker media says it stands by the report. speaking of facebook, peter thiel is now a elegant for donald trump. according to forbes, he's listed as a elegant for trump in the states 12 congressional district. the trump campaign submitted the list of names on monday.
i sat down with peter thiel a few weeks ago and asked who he is supporting in this election cycle. peter: i find political philosophy interesting and there's a lot of these questions that are interesting and important. if i was involved, i think i would just blow my brains out. you would just go crazy after a while. as an outspoken libertarian, he supported the candidacy of carly fiorina. fiorinaiven money to and ted cruz in the past. disney and electronic arts moving dramatically in extended trading. we will look at the results, next. stay with us. ♪
emily: this is a special edition of "bloomberg west" live in boston where we are surrounded by his and government leaders for the annual meeting of the chamber of commerce. i want to welcome our bloomberg 1200 radio audience here and turned to earnings. disney and electronic arts reporting after the bell. disney shares down after posting second-quarter results that missed estimates as profits dip at the abc network and its consumer products division. ea shares going the opposite extended, up 7% in trading after beating on profits
and revenue in the fourth order. for more on this tale of two different rings, i'm joined by our editor at large, cory johnson. fun you daysuch a here, but let's start with disn. even post star wars, not a great quarter. cory: analysts know there was some week is in the abc networks. that caused profits to dip, but big picture, 4% year over year growth, that is a strong quarter . not the same kind of growth they saw last quarter but still growth nonetheless. emily: cable profits were up. cory: there were long-term concerns about the unbundling. if it serves to show pressure, this company is so strong but
espn has been doing better than expected. wars" toys actually hurt. the dollar-denominated assets, selling dollar-denominated currency hurts them because of the strong dollar. while a lot of the toys sold, the profits were not as strong. scares things.em theme parks very strong this quarter. the current quarter, they are going to open disney shanghai and that is expected to be very positive, but beginning in the second calendar quarter -- emily: and they have the follow-on to the "star wars" franchise planned. cory: particularly the theme park in florida will have a whole new place there -- it is a
resource for disney properties. so they are expecting to use that over the course of many years. in this corner, star wars merchandise hurting them. emily: let talk about ea. cory: star wars is the story there. 14 million copies of that game sold to retailers, but he'll positive for ea in that quarter. one year ago, they had a battleship game and it was one of their biggest ever. cory johnson, our editor at large today in boston, thank you. now to a story we are watching -- amazon positioning itself as a competitor to you to, letting fors post their own content advertising and royalties link
to their uploaded video. it is similar to their strategy with e-books but allowed authors [inaudible] bernsteint at sanford is setting a $1000 price target, 40% up from where shares closed on monday. carlos kercher said the only major roadblock amazon faces is finding new areas of investment to keep up with the growth in gross profits. shares closed on tuesday any consensus price target is 809. coming up, what is the next tech breakthrough for drones? we will hear from one of austan's leading robotics experts, next. robotics's leading experts, next. ♪
emily: this is a special edition of "bloomberg west" where we are taking a deep dive into the boston tech scene and the innovators driving it. i'm joined by one of the leading a gears in robotics and the ceo of a company on the cutting edge of drone technology. thank you so much for joining us. we were just talking about how boston is a hub for biotech, but it is also a hub for robotic. how did it become this way? bustin -- boston is a hub for robotics because of m.i.t. and umass, and companies like irobot came out of those
institutions and now companies are coming out of companies like irobot. emily: what sets your technology apart? guest: we have been developing drones that are persistent. a lot of times you have to bring them down in 20 or 30 minutes. ours, you send them up and leave them there. from monitoring to security to managing the entire facility, the tip is a micro filament tether. powering them up on the ground and allowing them to lie. emily: so it is not necessarily making battery life longer, it is powering them a different way. when does that actually happen? i think it happens around 2020. people will be able to
deliver. this is the first year where you will be able to go fly commercially legally. last year you had to get an exemption in this year, you will be able to fly legally. you will be a lot of to fly over people and into populated a breadth. technology is developing so fast . it's a really exciting time to be in the drone. just raisess thinking about this and what is he interested in? amazon has been concentrating on delivery but there are a host of other applications like fulfillment center robots. now, they are automating performance centers and there are so many applications when you are a logistics company. there are so many great
applications. when big on robots and bought boston dynamics. then they got rid of it. do you think robotics companies -- guest: i don't think they are stepping away from robotics. i think they might be stepping away from human weight robots because it might be a bit too far from commercialize a double right now. but i think you have to get into promotional applications and then move to more complex machines. irobot, the robotics company you founded come are facing a proxy battle and i wonder what you make of the changes red mountain is calling for? affiliatione no with irobot, so i can speak about it.
because the management i think outsiders don't know the industry. they don't really know what it takes to get robotics on the market and have them function for people and be able to stay on the cutting edge like irobot has. that is involved in all different aspects of design and innovation and customer support. you so much for joining us. thank you for talking to all the researchers here in the sit of emily: coming up, we down with the cofounder of a
he made his first appearance before a review board today. the review board says he trained with extremist and developed a close relationship with al qaeda. secretary of state kerry says his this is should not use u.s. and guest iran as an excuse not to do business there. entities still sanctioned including the revolutionary guard. secretary kerry says banks can open accounts for iran and facilitate legitimate transactions. the senate in france has put into extended state of emergency which has then him waste is the terror attacks in paris. authorities can restrict movement of people or vehicles. president obama will become the first sitting american resident to visit hiroshima, japan, where the u.s. dropped an atomic bomb during world war ii. the president will not apologize for the bombing during his visit
this -- during his business. the japanese prime minister may consider a visit to pearl harbor. global news 24 hours day powered by our 2400 journalists in more than 150 is euros around the world. 6:30 here inter new york. i'm joined by paul allen for a look at the markets. paul: a rally in stocks and commodities means we are expecting a positive day across the asia-pacific today. new zealand am a currently the only market open looks very good, up .5%, but we are expecting gains thanks to a bounce on iron ore. bankpan, shares in south are in focus with quarterly profits falling 30%. downs really being weighed
by the u.s. acquisition of sprint, struggling to turn that business around despite adding domestic customers in japan. they weren't for sprint, could be possibly doing better than they are. the disappointment for richest man in hong kong. it is expect did that european regulators will reject the bid for the second against mobilephone operator. have -- they say that would make him the largest operator in the country. another bid in italy is also expected to be knocked back. i'm tall allen in sydney, australia. -- i'm paul allen in sydney, australia. emily: this is a special edition
of bloomberg west live from the boston exhibition center. tuning to all of those in on bloomberg television and bloomberg.com. i want to welcome our bloomberg 1200 radio audience. when the move was firmly announced in january, the ceo of ge said massachusetts sends more on research and development than any other region in the world and boston attracts a diverse technologically fluent workforce focused on solving challenges for the world. we are happy to bring our show to this dynamic three. joining us is the man who helped to make it all happen, boston mayor marty walsh. i work in silicon valley covering technology and laquon valley is considered the main tech hub with new york a distant second full what makes boston special?
--er walsh: people don't walsh: the states here, people think of the water from where we are, but downtown boston, 35% of our office space is tech companies. we have a lot of great innovation and start up companies here. we have 25 universities in the city, so we have a lot of rain power here. to.y: getting ge was a huge how will you know if it is worth it? mayor walsh: i think it is already worth it. they are moving their global headquarters to the city of boston and we are already seeing the benefits and the results of that. companies wanting to stay here after they get grounded, we have
a lot of startups and i think a lot of company say why do we want to leave the city where we have companies like general electric coming into our city every day. general electric is one of those that such a win for our city. it will be a think big acquirer here? we have the when conversations about the collaborative approach with the governor and myself, a republican governor and democratic mayor working closely, i don't think we put a big incentive package on the table. jeff and melt said that is healthy in this environment and this is a healthy environment for business. let's talk about the tax breaks, we worth up to $25 million and hour help secure this field. that would generate more in property tax revenue even with the incentives. what are some concrete ways you think this deal will combat things like income inequality
eschew mark mayor walsh: general electric made a $50 million investment in schools and job training for top emily: how much of that goes to stem education? mayor walsh: $25 million goes in a may the official announcement. when he five ilion dollars into the city, working in fools like madison park and dearborn high school. 12, a lot of that money is going to go right in because they understand the origins of educating the workforce. the workforce here in our city. emily: what about affordable housing? mayor walsh: not as big a piece but we launched a plan to create 53,000 units by 2030. these are under construction or in the pipeline.
already begun that conversation long before general electric decided to come to our city. inequality is a big problem and we have the number one inequality city which is not a good label to have. the way we combat that is with affordable jobs and good housing. emily: uber has infiltrated the city. how do you view them rum a regulatory respective? mayor walsh: we will look at regulations on car sharing services. i think both can exist. i'm not getting in on this conversation where you either pick uber or you pick taxis. they can both exist. moreed to get some regulations to make sure people feel safe and with cabs, we have a medallion system in boston and we try to make adjustments there. emily: draft kings is also a
boston company. how do you feel about them doing business? mayor walsh: i think one of the things that is a problem here is that we like to regulate and congress and washington and massachusetts and other states, we have not caught up with how industries?te these that's something that needs to be looked at so good business models can move forward. you have been referred to as the moneyball mayor. how will they influence the rest of your term? mayor walsh: we measure everything from diversity to everything in between. data is so important. have looked at it on a year-to-year basis and we are literally looking at a day to day basis. everything andf
monitor it on a daily racist. we are able to see how we are doing on services whether it is remitting or trash pickup or whatever it might be. saw the funds down, so we made a phone call and said why are the the payments down? we have not caught up with our putting on so we are another class and looking at this data every single day. boston mayor marty walsh, thank you for joining us. it's great to be here. speaking of uber, the company has agreed to start a guild for 35,000 jobbers -- 35,000 drivers in new york. will have a higher standard of protection and support than others and will be
able to participate with meetings with management on a regular basis. they do not plan to create hills and other cities because more drivers use it for near full-time. coming up, 2016 may be the year of the hybrid job. we will talk to the president of family university about how she is preparing graduates for the changing workplace. ♪
the search for life on mars may not be as simple as looking on the surface of the red planet. scientists say we need to look deeper to find that answer. sam grobart follows honeybee robotics which has built components for every mars rover since 2003 and is working on a drill that could dramatically improve our chances to find extraterrestrial life. sam: a company called honeybee robotics is developing a drill that could take our search for extraterrestrial life low the surface of mars. >> you want to go below the surface and find the history of the planetary body and at the same time, find life. the problem with mars is the first couple of meters have been oxidized and radiated, which means all the potential microorganisms have died. if you want to find them, you
have to go hundreds of meters below the surface and that is where the drilling comes in. sam: honeybee has been drilling instruments for mars rovers in 2003. but designing a drill for an alien world is a different challenge. the engineers are trying it out at a gypsum quarry in southern california. the drill it sells is a probe tethered to a long cable and is designed to row: letters to ice and rock and be hoisted back to the surface. the drill has to rely on solar power and use far less than the black & decker you bought at home depot. >> powerful, but using very little power. it runs off the power of about two lightbulbs.
sam: to find alien microbes, this drill has to do more than put a hole in the ground. it needs to analyze what it finds low. >> usual down and analyze what you find below the surface. you dump the sample into the instruments and they can analyze it. >> we have the uv leds which -- findp us protect microorganisms is -- microorganisms that emit bio fluorescents. that could be a microorganism, who knows? to date, we have only scratched the surface of mars. we have gone to war three inches with curiosity, but it definitely going to happen. the question is when. i hope in our lifetime. if i were to guess, i would say 20 years. emily: that was bloomberg's sam
grobart reporting. itsboston suburb is hoping approach to defining education will separate it from its peers. they are looking to prepare students for the emergence of what they call the hybrid job. thank you for joining us. what is the hybrid job to mark gloria: we went out with a labor analytics firm and surveyed 25,000 job openings and found if employers are hiring for research and technology, they want someone who knows more than the discipline at health. they want someone who knows social media and they want someone who can handle analytics. permeating every single job question we can think of. you bewhat should
studying now are majoring in now if you want to erin t yourself a good job? gloria: follow your passion but marriott to something that relates to the business world. marriott with technology capabilities. you have to be up to date with the latest technology and make sure above everything else, do an internship. everyone in college today should be studying, whether it is history, marketing, whatever it is, pair that with some that will take you into the real world. emily: the most popular degrees are combinations of mbas and masters of is this analytics. gloria: if you look at what's happening, there is no company out there that's not going to be hiring people proficient in getting data and leveraging it. masters of business analytics is red-hot and the number of oaks
of lying work has tripled since into theintroduced it marketplace and that is only going to continue. emily: we have talked about mark zuckerberg dropping out of harvard and peter thiel has encouraged students to drop out of college and start companies instead. what is the value of higher education today mark gloria: it's not what you study and it's not where you go to school, it is how you study what you are studying and getting actual skill sets while you are in college and marrying them with lifelong learning capabilities. you should have that combination of liberal arts and some set of professional skills. there is nothing that will replace a four-year college experience when you learn leadership skills that. emily: what are some new trends
you are in -- uncovering about how to keep women in careers? theia: it is one of thorniest conundrums. they said it would take a hundred years to reach parity in the boardroom. we don't have enough time for that. the clearest answer is a ceo who gets it. male or female. it requires all managers at every level to all of that. andwill have sponsorships women will be given a profit and loss responsibilities and they will be given the development they need every step along the way and you will stop having this leaky pipeline. emily: thank you so much for joining us. very excited about work you are doing. coming up, we will sit down with the cofounder of a term launched on the harvard campus about how
emily: welcome back to a special edition of "bloomberg west." the x fund was founded to employ early capital and was started by harvard area and boston entrepreneurs. they have deployed $11 million in investment and joining me now is one of those founders to hopes to take over management responsibility from the cofounder. the x fund has been embroiled in a bit of drama lately. you moved to terminate your cofounder and filed a restraining order. your cofounder said you tried to
get rid of him without him knowing it. what really and? are growing fast and scale something, things get broken. it's unfortunate the way things turned out, but we are moving forward. emily: so you are going to take over management responsibility? guest: yes. that field that -- that means i'm back in boston more often. emily: your investors voted to cut investment in half which means you lost effectively $50 million. to releaseecided them from part of their commitment. the good news is we still have $60 million to support the portfolio.
emily: and you are going to find a new partner? guest: i hope so. we have to do exactly what we have done to start. with what weunded called liberal art founders. they are technically talented but have a spark of something else. like i have a guest room in my house and when it is free, i'm going to rent it as a hotel room . that's a real social insight. it produces liberal arts founders that have thoughts like that. emily: you grew up as a venture capitalists and worked in silicon valley and now you .ommute to boston so you are sort of unbiased and i can you what's the advantage of starting a company in boston and staying in austin? guest: from an investment standpoint, we think it's an
incredible opportunity. $53 billion to 23 billion. i feel like this is a place full of talent, capital, and this is a place where lots of incredible people come to get their education and where their ideas are first formed. emily: harvard has been criticized for not doing enough. what do the schools need to do to kickstart innovation? guest: that's a fantastic question. most of the elite colleges have a system and their career services office hire people to pretend to be investment anchors and umag interviews. donehave these colleges and the answer is to partner
with firms like x fund to say if you want to create something unusual and new, here are the resources that we are or are not affiliated with. here. i'm so glad you are thank you. that does it for this special edition of "bloomberg west." we have been hearing from some of the most innovative thinkers along with the mayor helping to keep the city's great talents and ideas here. tomorrow, are focus continues and we will pick up -- ♪
♪ >> from our studios in new york city, mrs. charlie rose. isrlie: president obama considered one of the greatest communicators to be in the white house. he has drawn comparison to martin luther king jr.. here's a look at his each last year, commemorating the 50th anniversary of bloody sunday. obama: we are well served to renumber that at the time of the marches, many in power condemned, rather than praised them. back then they were called communist, or half breeds or