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tv   Bloomberg West  Bloomberg  June 14, 2016 6:00pm-7:01pm EDT

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describe terrorism's that happened to be muslim to be radical islam is. he said the term of validate islamic state and apply that america is at war with an entire faith. ms. tree ourma: reat our fellow citizens. his remarks came following a meeting with his national security council. french authority and say a man described as a john hardy intruder made a video after he's fatally stabbed an off-duty police commander and his partner. authorities say in the video the man says, i just killed a police officer and his wife. their three-year-old son was held hostage yesterday but was rescued when police stormed a home and kill the attacker. russian government hackers penetrated the computer network of the democratic committee. the intruders gained access to the entire database of opposition research on donald
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trump. he and hillary clinton were also reportedly targeted by russian spies. mobile news, 24 hours a day hour-by-hour 2400 journalists in more than 150 news boroughs around the world. " is next. west ♪ emily: this is "bloomberg west" live from the 2016 bloomberg technology conference in san francisco, bringing together entrepreneurs, investors and corporate leaders around the globe with minds behind the game changing products, processes that will drive the next wave of innovation across the tech industry. ,e heard from a global founder drew houston, the twitter share
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in just a few of the voices of the day, but we will also be bringing you the must watch nextts throughout the hour. stay tuned for much more coming up on this edition of "bloomberg west." first, from its founding google has been at the heart of dysfunction in the tech industry. one of the way they help to continue to drive change is through gb. they have made a range of consumer tech advances like uber. they are developing a portfolio in the life sciences debate. joining me now on which industries look rife for destruction -- disruption. thank you for being with me today. you said something interesting, that the intersex of bio industry and artificial intelligence is a space that is very rife. i am curious what you think of that. you've invested heavily in
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biotechnology and you think about it so much. what do you think the impact on ai on bio will actually be? >> completely underestimated. we have in thinking and talking about this for a number of years. around key learning or ai, if applook at a product, and , if you takeoad the same technology and apply to something like neo antigens which are a way to detect cancer to you find that technology the search of new diagnostic for cancer, it could revolutionize the entire health care industry. aily: you are investing in company that has early diagnostics for cancer and may even identify it before it becomes cancer. i am curious about that. how do you handle things like over testing? it seems like that should not be a problem, but the idea seems almost too extreme. >> it is likely biopsy
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companies. it has yet to work. physically being able to detect cancer the moment you have it or even predicting up before. this could happen by sampling blood. we do not have the capability yet but the technical challenges , we know what we need to do to get there, and so i am very confident that this technology will exist and we hope we will be the developers on it. editing?at about gene at what point do we have to start talking about the ethical issues of this technology? >> it is never too early to talk about it. we have invested in a number of companies. there is a flip side to that coin. there are scary things about new technology, fire could be scary because it could burn on your house but gene editing could be scary for all of the things you are imagining but at the same
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time it could be used to care children with cystic fibrosis. i think the positives will far outweigh the negatives. emily: since we last spoke it has only gotten worse for sarin notes. should they be running the company? >> that is up to the company. i do not know how it gets better for here -- from here? emily: do you think they could turn it around? >> i do not think there is any way to turn around. i do not think that the technology exists. emily: the public markets about been kind to the bio sector. >> i think the public markets are always wrong in the short-term and right in the long term. if you look at the prospects of sector inike any full's and out of favor over time it may be quite out of favor now but the reality is it will transform not only the
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length but the quality and duration of our lives. recently leftdel unceremoniously. what went wrong and should we be worried about the future of ness? >> i would not be worried. i think it was reported unceremoniously, but how many successful founders still working today companies that acquired them? stephen shad founded youtube and they are not there anymore. it is really shocking that tony decided to do something new and ness continues on. emily: is it the ideal to have a founder in the company? >> i do not know if it is the ideal. i think the reality is they are here for different times. ceo of google left and now there is another outstanding ceo. i think it depends. emily: speaking of the environment you are investors of
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uber. >> i read about them. emily: raising billions of dollars. firm just and his raised half $1 million. are we passed the idea of a downturn? where are we? >> it is that all adage, the difference between a recession and the depression, a recession is when you are out of work and a depression is when i am out of work. it depends on your point of view. timehave had an easy raising money. it does not shock me. uber raised a lot of money and has been an extremely successful company. are there other companies that are getting left behind? >> companies rather than raising money on what they might do, they are raising money on what they have done.
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you will probably see more ideas over the next few months --ipos over the next few months. emily: there is a presidential election happening now, and i am curious what you think hillary clinton and donald trump mean for silicon valley? >> that is a good question. i am not so political. the leader that we choose collectively becomes a lot more thoughtful about the issues and less headline grabbing in more leadership -- and more leadership. i am not convinced we are at that place yet. emily: what do you mean? to getink we all need involved, informed on the issues. there are some really important and tragic things going on in the world and we need to be informed about those things in we need to vote and not just bicker online and yell at each other over facebook or twitter but instead, actually look at the plans and proposals and
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decide what makes sense for you and your family and your life and your friends and at least vote. gv ceo, always great to have you on the show. thank you for stopping by. microsoft acquired linkedin. on this.those to speak i listen in. i see this as an opportunity for microsoft to expand. youhe trick is, can encourage them to keep its own culture and yet still get some benefits. obviously, if they never talk to microsoft, what was the point?
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that balance is tricky. >> this might make them take even bigger risks as opposed to being a public company that needs to report quarterly. can reallyt the team think now is the time to really take bigger risks. up, the legendary bc aiming for infinity and beyond. the futuristic funding of the space energy, next. twitter is going to be just fine. our in-depth conversation with the venture capitalist later this evening. we are live at the bloomberg conference in san francisco.
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♪ >> i was shocked when he said, i
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was there. emily: this is a special edition of "bloomberg west" live at the bloomberg technology conference where we have been speaking with the biggest names in silicon valley. one thing we are watching, the private equity centers making it to the final round of buying yahoo!. verizon, at&t and quicken loans founder dan gilbert are also in the running. could be chosen next month. the final frontier, it is becoming routine for elon musk to land the rocket on a barge in the middle of the ocean. the next test is wednesday. slash because when
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millions of dollars and unlike our access for others to follow in his direction. another company is trying to do for the satellite business was spacex is doing for rockets. they are trying to track things like illegal deforestation or the growth of refugee camps. they are backed by legendary investors steve jarvis in the very good friend of elon musk. thank you so much for coming to the conference. it sounds really cool, but tell me to business piece. how does this company make money over the long term? >> when you can scan the entire planet every day and see every part, every day, there is a lot of customers that would pay for the imagery, largely the agricultural sector, national services. it they want to know how crops are doing, in the future that will grow dramatically when you have all of the data, not just where you are pointing satellites, being able to count
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every car in every parking lot, every day or count every tree on planet earth every day for environmental monitoring. emily: there is a company that kind by the public markets. >> they are attached to the international space station which is kind of a dead-end in the long run. you have a single camera and that is not much you can do with it. in contrast, we have launched 130 satellites and they will be launching several hundred more this year. they are kind of like the internet to a mainframe. there are swarms of satellites around the planet. emily: spacex has had a string of successful launches lately and they are planning their first reusable launch. tell me about that plan. >> it is the most important plan. imagine after everyone way flight of the airplane, flying from here to europe, the airplane flying back, it would cost you many hundreds of
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billions of dollars to fly anywhere. that is what is happening to the rocket industry. if we could use a reusable rocket, it would be like air flight, inexpensive as air flight. that is exactly what spacex is doing by taking an enormous piece of equipment and find it -- flying it many times. emily: who do you think is the biggest competition? >> china and russia. they have an interesting tourism business which is going up and falling back down. it takes 25 more times energy to get into orbit. that is a different business. things have gotten worse outside for the company. what kind of conversations are you having? am interested in seeing jennifer lawrence player in the
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upcoming movie. it is a kind of hunger games we can all look forward to. emily: i am excited to see the movie as well. bill mirus does not think there is hope. is there? >> i cannot talk about that. she had big dreams and we are wishing her an oscar as well but we are not in the position to comment. emily: are we living in somebody else's simulation? one insk said there is a a billion chance that we are living in someone else's reality. we have heard from others. what do you think? >> i think it is a fascinating subject, one of the deep philosophical subjects for anyone studying science fiction. i have had a lot of conversations with elon over the years and there is something that we have a limit to our ability to explore the world
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come of the other solar systems of our universe the way a game designer when designer, that we will never get there in our lifetime. if you look at these smaller and smaller scales, there is a fundamental limit to studying our world. why is that? maybe because we live in a simulation. that is about as far as the proof goes. emily: you have spoke to elon about this over the years. where do you agree with and where you disagree? >> everything in our world is a copy tatian. computation.- whether you think of anything as a mathematical construct, everything is exchangeable as a simulation. beng immersed in one may different than living in a single reality. that is where the philosophical questions come into play when you think about virtual reality or a simulated world where how
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does your brain know anything other than what is being put into it? emily: does it matter whether we are? >> it might not. it certainly motivates people with late-night conversations. emily: miller said if we are living in a simulation, we can turn it off and we realize we're living in a simulation. always for stopping by. i appreciate you joining us. up next, was the microsoft-linkedin deal just because of the iceberg? we are live from the bloomberg technology conference here in san francisco. stay with us. ♪
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emily: this is a special edition live from the bloomberg technology conference in san francisco. we caught up with marc andreessen earlier today. i asked about the current state
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of silicon valley and companies like twitter. what is its future? take a listen. >> twitter is a great case study of what silicon valley does well. i remember when he was starting it. somebody is going to need to use linkedin to find a new job. [laughter] >> it was not that long ago, 2004, 2005. they built an amazing company over the last 12 years. i will say eliminate a lot of the guesswork on what these companies are worth. some of the page $25 billion in cash for them and it is the result of an enormous amount of effort. it is a great business, great service. it has a lot of overlap with microsoft strategically because the window user base are effectively the same user base. i think they will be able to bring those together really interestingly. emily: how does it change the landscape? >> i think it is indicative of
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what is happening. as we see more mma in the pipeline, we see more negotiation and we have in four years. i think other agencies but agree with that. i think what is happens is one of the things or the markets have flow. a lot of public companies have kind of sat back and watched and watched all of the drama play out in the valley, constantly on the bubble, bubble, bubble. there is a lot that should have happened that just did not happen. companies have piled up a lot of cash and have had very good business and then have to start shopping. you have to fill in gaps in their portfolio and then they can go shopping, they can buy these companies. of manyit is indicative companies this day. i think there will be a whole lot of these next year and this year. emily: who is going to buy and it was going to get bought?
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>> i think that is a good question everyone has to deal with. we try to get them in a position where they can be a buyer. sometimes, you know, you get some of the comes along and makes you an offer and it is strategic and make sense. american tech companies are in a good position to buy. we are seeing a lot more nontraditional buyers, so a lot more of the fortune 500 outsider tax that are going --techs that are going shopping, the car inquisitive quite and other kind of consumer products companies got inquisitive, clothing companies. there will be a run of acquisitions with nontraditional buyers. emily: twitter, is that wishful thinking? part of how we think about a business is the new york arbitrage. i think the new york view is
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that if we think it is bought, it makes what are more likely to get bought. there is probably one fewer buyer. the acquisition of twitter is slightly less likely, but i am positive they are big companies thinking about it and positive twitter is thinking about it. only: twitter is now the other public social network aside from facebook. can twitter survive? >> twitter can survive. accomplishmentng over the last 12 years, building up assets. they have built a great business. there is no question. they can generate profit anytime they want. it is just a question on how they want to turn the dials to make it all work. they have a strategy to do a lot of new things. i think they can survive just fine. they can be around indefinitely.
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i think the question more is, tech companies are a little bit like sharks. they tend to move forward or backwards, tend to not stay still. i think the question of twitter that people are asking is, ok, under his leadership what are the new things they are going to do? marc andreessen. change the future of combat? that is next. if you like bloomberg, you can listen on the bloomberg app. ♪
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mark: let's begin with a check on your first world news. one of the survivors of the orlando nightclub shooting describes hiding in the bathroom with gunfire ringing out. hidiago told reporters he
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under the sink and there were 15 or 20 others already hiding in the handicap so. >> i remember thinking, when is it going to stop? i just kept hearing gunfire over and over and over again and he kept getting louder, closer and i could actually start to smell the gunpowder. mark: santiago says the gunpowder -- gunfire started getting closer and closer until gunshots wounded him and his friends. some advisors are urging benjamin on yahoo! to cut a deal toh -- benjamin that yahoo! cut a deal with obama. some reporters are concerned donald trump is unpredictable and hillary clinton is unreliable. israel is reportedly increasing
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$5 billion annually. a small fort of april issue the first u.s. credit card intended for use in cuba. stonegate bank says it's mastercard will be available on wednesday. s permitting citizens to use them for cash advances. this is just after 6:30 tuesday in new york, 8:30 wednesday in sydney and paul allen has a look at the markets. good morning. the only market in the region open, new zealand and currently off about 1/5 of 1% and that is likely to set the theme for the day. we are expecting declines on the afx,i and on the particularly on a local index oil index. the big story will be the
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rejection of the inclusion of china shares with its indexes, saying there is a need for additional accessibility improvements. ci hass the third time ms rejected china shares. that is despite improvements that china has made that occurred from arbitrary trading holds an looser restrictions on the capital flow but it was not enough. they would like to see further improvements with accessibility. we watch and wait for the reaction on the shanghai complex. -- composite. ♪ emily: this is a special edition of "bloomberg west" live at the
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bloomberg tech conference in san francisco. the u.s. military has an incubator, much of the cutting-edge research with the agencies. they have been leading in the robotics space, leading research from everything from robotics, cars and biotics. here to discuss the role of ofhnology is the director the technology office. thank you so much for joining us. what are the future technologies and what you testing now? no one is asking for random .vents to happen technology has allowed us to get
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better at understanding and that is what we have worked on. it gives us a better understanding. emily: how are you using in analyzing the data on the battlefield? gun culture and experiments. we were looking at this 10 years ago. to see it start to make a big difference, that is encouraging. we are starting to look at what our military application was and how do we have understanding of larger intelligence? how do you ask a computer, why are you making the decisions you are making? we need a deeper understanding will allow usstem
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to utilize technology. internet, the use of gps for position of vehicles and communication in a war or nuclear war. how important is some of the ?echnology do you think about that when you make choices as to watch products to graft -- which products to go after? >> we are 10 or 15 years out ahead. i get to actually be out ahead of what you are seeing. an emergent like self driving cars, we were there in 2004. we can move beyond that. we do not have to do that.
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wirelesspowering systems. how do we attack the human driven cycle, how to rerea re-attack that for machines? we are able to prove what machine learning can do on a big, national scale. emily: what is the future of drones not just on the battlefield but in our world? he thinks and five years we will look up in the sky will be covered in them. >> i agree with him. emily: five years? >> i think it regulations are very difficult. security threats are numerous and their. re. we are working on regulation.
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,e can also work on technology not having to rely only on regulation. you can rightfully control a system so when things go bad you do not have problems that you otherwise would. gps is cut off, what are the eyes and ears? >> you have every robotic sector available, self driving car, robotics. the more they hire, the more people want to go.
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all it is is creating demand. you can fill the pipeline very quickly. that is our goal. universitiespower in the military and also with commercial so the rest of the world wants to come here. emily: the governments are getting much better with technology. are we thinking about what is happening in china and what is happening in russia? >> it is growing every year.
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these are things we were involved in early, the internet, self driving cars. people quit their careers and and findthe government big opportunities. countries have yet to be able to replicate this moderately successful. the sleeping turkey is unaware of their environment. the actually wake them up when they are needed. we are studying things that are aware of the environment that they have.
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emily: really cool. thank you so much for joining us. thank you for stopping by. at the big scene bloomberg conference has been the future of invention. we have some of the biggest names to weigh in on artificial intelligence. take a listen. of what people are calling artificial intelligence and machine learning, that is pretty hard to beat in terms of stuff on an everyday basis probably not like, it does everything for me but just incrementally. five years from now, we will be relying on automatic services for a larger set of things. obvious answer would be artificial intelligence would be would bee in the rest
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second-tier. >> i think ai is one of the fundamental capabilities that will separate companies into it several different tiers. when artificial intelligence instead enough along, i engineer you can actually make them. emily: coming up, how do we invest against copycats? we speak to the director of the patent office. stay with us. we are live at the bloomberg tech conference in san francisco. ♪
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emily: welcome back to "bloomberg west."
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chairmanthe twitter about the special takeover target. >> the board, you have to be accountable to the shareholders and you go after every opportunity, but as a management team and leader of the comfy, you are focused on doing a great job every day and doing a better job every day. most of the company will be innovating and refining the product and a live streaming and doing this fantastic job that the service does which is really connected to the world and understanding of what is happening every moment come live. -- moment, all of that is something you have to have an understanding of every day. that is our focus. whatever may play out, a partnership or other opportunities. we will evaluate it. emily: speaking of twitter, the company is expected to invest
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$70 billion. twitter wanted to buy the music service -- $70 million. twitter wanted to buy the music service. evaluation. we have a director of the u.s. patent and trademark office. he was nominated for the position by president obama. he served as deputy counsel at google. michelle, i want to start off with this idea that silicon matters. you see elon musk with his patents, google. should companies be filing? >> absolutely. patton is still a form --patents are still forms that matter.
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do not have confidence in their investments, the research and development, the ability to bring it to the marketplace, their ideas. emily: you think these should accelerate innovation and not stifle? >> increased funding by venture capital, increased economic capability of startups, yes. >> what is the bigger threat to innovation, is a copycats or the idea of entities that have massed patents and use them against companies that is doing something that is truly innovative? >> certainly copycats, taking someone else's property works against innovation. we spent some much effort across the globe. the united states is pretty strong. for the most part, companies and individuals respect intelligent property. that is not true across the
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globe. in this day and age, the landscape varies a lot and some companies take advantage of the market and need to have the confidence to ship the product overseas and that would is not stolen. emily: we have been talking throughout the show about how other companies, especially china are becoming more technologically advanced. >> they are. countries across the globe view intellectual property as an economic development tool so they view intellectual system as a necessary step in innovation. china is different. they do not want to be a low-cost manufacturer of other people's inventions. they want to be higher up the value chain and they want their own inventions to increase and to raise high-value products and services. ton china is saying, we need respect intellectual property rights and have the appropriate remedy built into the products. >> do you see them actively
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going after that infringement? does an american company feel the freedom to go and operate in china in a way that not everything is going to get ripped off? >> they have additional work to do but i had meetings with public officials in china and there is a strong interest in changing the laws, improving the laws, the court system and really looking to us for guidance and help to help them get to where they want to get in an economic manner. emily: i want to talk about the gender gap. it is even more pronounced when you look at whose names are on the inventions. how bad is it? >> i had the privilege of serving as the first woman director. i was curious about that question. i asked my team, how many patents are going to women? fewer than 15% of those us-based
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inventors were women. emily: that is even less than the number of women in tech school. >> clearly we have further to go. at the current rate it will take 140 years before we reach purity between men and women listed as inventors on patents. >> two questions of what you are seeing in the pipeline. you get to review the applications. what are you doing to ensure we are not granting patents for insignificant advances and, what are you doing, what kind of technologies are you seeing that are going to be the big, new technologies of tomorrow? >> so many areas. many of the world's innovations come to our office because the u.s. market is so critically important. so many areas of innovation and cancer research, driverless
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cars, drones. those of the high-level but even basic issues. i do not see a shortage of innovation in our society or country and i view that as a good thing. i think this is a good problem to have. >> what is your rejection rate? what is your mechanism to make sure we are not granting frivolous patents? >> we cannot just grant patents. we have to apply the law. there is a statue. they're all legal requirements for inventions that are obvious, not novel, if they do not fall within a certain statutory level they are not eligible. there are strict requirements and our job is to faithfully apply the law and the statute and if you do not think a patent should have been issued and we issued it incorrectly, we allow you to bring it back into the law office in for a lower cost
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and a quicker resolution that district litigation, we will remove the patent. , what cane your goals you say are your top priorities as the ministration changes? >> that is like asking who your favorite child is. [laughter] >> i want a comprehensive quality initiative. i realize having come from the private sector and spent my entire career inside the private sector giving with intellectual property, there is a cost to society. there is a cost to society if we do not issue a patent when it should have been issued. i want to make sure we are accurately issuing patents. even more importantly, making sure that the boundaries are clear so that businesses can make decisions and correct decisions. emily: director of the u.s. patent and trademark office.
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think you so much for joining us and coming ton tow the conference. thank you. tomorrow, our special coverage of the federal reserve's it is policy decisions starting 1:00 p.m. new york time. ♪
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they: we are live from bloomberg technology conference in san francisco and we have been asking some of the top names in technology their thoughts and the changing landscape of silicon valley. take a listen. >> we have really become almost a tourist destination for innovation in the world. country and this about 20% of the present is in china and the rest is in europe and india. of course, there is israel,
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bangalore, berlin and london and new york and a few other places, but the majority of success and value is still in silicon valley. >> what silicon valley has go dod is if you try to some ambitious thing, you might fail. a bunch of you might fail, but ultimately you can exceed -- succeed anonymously well. -- enormously well. emily: it is time to find out who is having the best day ever in today's winner is open internet supporters in the united states. the u.s. court of appeals upheld a net neutrality, a significant win for president obama and a blow to appointments -- opponents like at&t. prevent service providers for charging different rates for faster internet speed.
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google has championed the idea of an open internet while verizon says it discourages the innovation. the decision will likely stand because of the high court or split between liberal and conservative justices sensed antonin scalia's death. that does it for a special edition of "bloomberg west" live from the technology conference in san francisco. that is all today from san francisco. ♪
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♪ >> from our studios in new york city, this is "charlie rose." do i make them in the attack at the place in orlando, florida. 50 people died including the gunman. 53 more were wounded. it was the deadliest mass shooting and american history. allowed 2:00 a.m. on sunday, the assailant opened fire inside of a crowded gate nightclub. the gunman was a 29-year-old afghan citizen. he called 911 and claimed allegiance to isis


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