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

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during a best deal day celebration. no word on if the crash was an accident or deliberate. the incident comes the same day president francois hollande announced france's state of emergency would be lifted on july 26. likely presidential nominee donald trump close to naming his running mate. multiple media reports say it is indiana governor mike pence, although the campaign will not confirm this. "the indianapolis star" says governor pence has dropped his reelection bid. trump will make his announcement tomorrow will live in new york. bloomberg will have live coverage. hillary clinton was joined by former senate colleagues and potential vice presidential candidates including tim kaine, who later joined mrs. clinton at a rally in virginia. u.s. secretary of state john kerry held talks in moscow with russian president vladimir putin. he reportedly offered to share
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information for targeting islamic state and an al qaeda affiliate. a potential deal seeks to prevent an escalation in .ighting i'm mark crumpton. "bloomberg west" is next. emily: coming up, japan's leading messaging app debuted at the new york stock exchange. details ahead on the first day at the market. plus, victory for microsoft in ireland. an appeals court said no to an attempt to access a drug suspect 's e-mail. we will get more information on what the court decision means
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for data security here in the united states. a new set of digital eyes for the outdoors courtesy of nest. company had of hardware tells us why the new camera will change the game. first, to our lead. japan's leading messaging at its a warm welcome at the new york stock exchange with shares surging in the company's first-day day of trading after the company priced 18% above initial estimates. spoke to the cofounder and ceo and began by asking how they deal about the investor response. first of all, obviously, we are very happy with the initial response from investors. we are going to focus on investing and strengthening our
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service. service is everything to us. that he: you are the numbers man. tell us where that investment is going to go. >> we will be focusing on japan, taiwan, thailand, and indonesia. we will be using money for investment opportunities to strengthen the business. betty: what might that look like? bc country's growing two or three times in some places. what kind of investments are we talking about? acquisitions, organic growth? what are we talking about? >> where making partnerships or leaders inres with each of these areas.
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? tty: how about the u.s. how important will he u.s. market be? it is such a small part of your business. >> the u.s. market is our dream. to expecting other chances expand into the u.s. market. betty: the u.s. market is, as -- a dream forn you 20 the market. there are quite a few established already. how do you plan on rivaling and competing with them when they times your user base? >> from the perspective of competing, we consider the kinds
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of messenger competition is servicet we focus on where you can enjoy music and gaming. i think we are the most advanced company in this area, so that will give us an opportunity. that was line's cofounder .nd ceo speaking with betty liu alex, what do you make of the debut? alex: i was down at the exchange today, and it was probably the floor of then the
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new york stock exchange for an ipo since i started this job in august. and a lot of excitement around this deal because there has not been a lot of tech deals this year, not a lot of ipo's this year, so a 27% pop on day one is a decent trade, but at the end of the day, it will be about what the company does next. after these first few days of trading, to the point you heard the cofounder and cfo talking to betty, they need to start to really build out the different services they are offering to users. as they said and were very clear is slowing.growth they need to figure out where they can kind of pick their spots to make money going forward. betty: let's talk about the future and their ambition to .ecome a one-stop shop they are expanding into more asian countries, focusing on the middle east as well. create the picture for us. what does a one-stop shop look like?
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alex: you have to remember it is difficult -- different from the platforms we see in the u.s. there was a talk to investors about content, be it comics or different video content and things like that. outside of what you think of the person to person communication, that seems to be what they are building. they also have started to turn their focus to advertising. useritch is they have a base that might be slowing in terms of growth, but they use this application so many times a day because it is a one-stop shop. we can really promise and engaged user base to advertisers, so that also seems to be -- that is still a small portion of their revenue. most sales comes from games and figures and stuff like that, but that seems to be something they are projecting as a big focus going forward. about we will talk more
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how they pioneered the sticker economy in a moment, but how concerned are investors about the slowdown in growth they have already been seeing? alex: it's going to be top of mind, especially for the u.s. investor base. they got a lot of comparisons to twitter and facebook. even though they are not the same kind of his ms., it's on the mind of u.s. investors as they evaluate these social platform companies. you saw what happened with twitter this week. that is a fear around line as well. that will be a big fear for u.s. investors and potentially japanese investors. thanks so much. what sets line apart is the way intoompany has expanded new lines of business, but chief among them is regional's tickers -- digital stickers, which are only just starting to gain traction in the u.s. but are
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already big business in asia. meet tony and brown, critters coming for america as japan's messaging service makes its trading debut. stickers are a bona fide craze in asia and just hitting us in the u.s. what is getting investors excited is that people pay for them, often as much as two dollars a pack. close to $3 million of revenue on digital stickers. apple, facebook, and snapchat are playing catch-up. while u.s. companies do not charge yet, many watchers think it is inevitable they will. take, for example, kim kardashian's sticker app -- it's on track to begin more than $2 million in revenue this year. there are worries the u.s. may just be a little too late to the game. sticker usage peaked in
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the first quarter of 2014, and the trend has slowed somewhat, but the committee expects to crack open new markets around the world to keep the sticker economy on fire. emily: an analyst who tracks the market joins me now. can you quantify how big the economy is in the u.s. and globally? sticker economy really is in its infancy here in the u.s. we have seen apps start to implement them, but it's nothing like it is in asia right now. emily: how big is it in asia? randy: we're hearing tens of millions are being sent, in lieu of even messages themselves. how much does the average
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sticker cost? randy: apps themselves come with , to get youers stuck and to start using them, and you might notice your apron rands or favorite celebrities apps, andented in the you find that they are one dollar or two dollars a pack, and he goes from there. there is a collectible aspect as well. paying for not get them. why would you pay for something like that? most of the people using this our young people, right? randy: when you really look at it, you see that if your friends are using these, there really is some viral aspect to it. if you are a really big fan -- in the lead up, you talked about kimoji. bieber has his own. steph curry was another
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celebrity we saw a recently that that weren emojis extremely popular. especially with celebrities, if you are a big fan of theirs and , youy want to show that have already spent money on them emily: in other ways. one dollar or two dollars is really a drop in the bucket. emily:who has the best stickers? they: that will be up to consumers. gettinghere are they the most traction? randy: they are getting the most traction in japan right now. they have probably be widest variety. haverms of selection, they the most characters, and they are rolling these out on a really consistent basis, so there is always something new for consumers to look at. line growth is slowing down. does that mean interest in stickers is slowing down? randy: not necessarily. they are facing market pressure
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from other messaging apps in general. we are also seeing apple, for instance, this all introducing a new message of imessage that will be very line-like and will .mplement a sticker store it is slowing. i would not say that is necessarily a sign that stickers are. emily: when it comes to apple, facebook, where should we be in some of these u.s. -based apps? has some catching up age is one areas where apple will be pushing this sort of thing very heavily.
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they spoke as well as part of their ecosystem they have to get users. stickers are playing a major role in that. is google missing the sticker boat here? randy: google has its own messaging app that will be launching this fall as well. we will be seeing these sorts of features becoming more line-like , and a big part of that is stickers. so fascinating. thank you so much for joining and explaining the craze to me. i appreciate it. committee chairman john thune wants answers on tesla's autopilot issue. the senator sent a letter to elon musk asking what led to the may 7 crash of a vehicle using the autopilot feature.
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he asks for a response no later than july 29. coming up, microsoft wins a major court battle against the doj over e-mail privacy. i sit down with chief legal counsel brad smith up next.
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emily: google has been hit with a fresh round of antitrust charges leveled i.e. eu authorities, accusing google of restricting third-party websites, from displaying advertisers from competitors. the eu have been trying to contain google's aggressive push into the region. this is the third set of againstt charges levied the silicon valley company since early last year. this is "bloomberg west." i'm emily chang.
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a big win for privacy advocates -- microsoft will not be forced to turn over e-mails from ireland for a drug investigation. that could affect they do security throughout the u.s. tech industry. it overturns a decision ordering microsoft to hand over messages of a suspected drug trafficker. i spoke with the president and chief legal counsel of microsoft, brad smith. take a listen. brad: today's decision sends a message that when the u.s. government wants to obtain e-mails that belong to people of live in other countries other nationalities, it needs to work with other governments and respect international law. it is very important for the we haveh sector because long recognized people will only use technology that they trust. they can trust u.s. technology today in a way they did not quite trust it yesterday, and now we can focus on crafting the
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right laws for the future. arey: the doj says they considering options. do you think this is something that will be decided in the supreme court? brad: we will have to see. the fundamental question is -- do we want to spend the next hit of years arguing about a law congress passed 30 years ago, or do we want to come together and write the right law for the 21st century? we hope the white house and president and justice department will decide that we all need to sit down. we need to go to congress. we need to write the right kind of law for the future. microsoft is backing something called the international communications privacy act. how would that resolve this issue? brad: i think it is a good bill that is supported by republicans and democrats alike that would basically focus on the nationality of people. if there is an american in
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europe, the u.s. government could use a search warrant to obtain that person's e-mail, but if there is an irish citizen in ireland, if that person is not living in the united states, the u.s. government would have to work with the irish government and use either an existing treaty or we put in place a new treaty. it would assure people that their privacy rights will be protected by their own laws. that is, in fact, what we believe people want. hasy: the tech industry been under fire for not helping the government in criminal and anti-terrorism investigations. how do you reconcile that with broader concerns about security and national defense? brad: we want to see a set of laws that work for both privacy enforcement, and we want to see it work on a global basis in a way that protects people's rights around the world. we respond every day to lawful
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orders in the wake of the terrorist attacks in paris last november, for example. we at microsoft responded to 14 orders from police in paris and brussels and did that each time in an average of less than 30 minutes, but we need new laws, and we need laws that respect people's borders and rights, not in the kind of thing where we are seeing governments trying to use old laws in ways that we think ignores people's local rights. emily: have you spoken with the presumptive presidential nominees about these particular issues? brad: i think both campaign staffs are aware of the issue. people across the country have been following it. i think it is too early to know what the presidential nominees will conclude, but we would say this is an opportunity. it is an opportunity to come together and ask ourselves what kind of law we want for the future, how we can move from a
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law that was passed 30 years ago to one that is designed for the today,ogy that exists and we would hope both parties and both nominees would embrace that opportunity. have you feel about candidates' views on encryption and data privacy as the issues have arisen throughout the campaign? brad: i think we are living in a time when there's a lot of questions about technology. that is understandable given how quickly technology has been changing. fundamentally, i think everyone is asking where we go in terms of protecting what i will call timeless values. the protection of privacy, the need to keep the public safe. what we need are not heated .ebates, but calm thinking that does not necessarily come in july in a presidential
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election season, but we are optimistic we as a country can come together and fashion something that is grounded in common sense and the needs of the future. emily: coming up, 100 tech leaders are calling donald trump a "disaster" for u.s. innovation . we will tell you who is blasting the presidential candidate next. ♪
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emily: more than 100 technology leaders have signed a letter naming donald trump a "disaster" for innovation. the leaders endorsed a letter written by katie jacobs stanton, a former special adviser on innovation at the u.s. state department who worked for many years at twitter. it states that a potential trump presidency threatens the values of diversity on open exchange of ideas and regard for legal and
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political institutions. loyaldoes have one silicon valley backer. paypal cofounder peter thiel is lined up to speak at the convention in cleveland. here's what he said about this year's campaign in april. peter: i find political philosophy interesting and a lot of these questions that are interesting and important, and if i was involved in it, i think i would just blow my brains out or something. you would just go crazy after a wild. emily: still ahead, alpha that's nest unveils its first products since it's ceo's departure -- alphabet's nest. ♪
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mark: i'm mark crumpton. you're watching "bloomberg west ." the associated press quotes a french official who says a truck
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that smashed into a crowd in nice killing at least 30 people was an attack. that incident occurred during bastille day celebrations. an eyewitness said he saw the truck drive into the crowd and that a man with a gun emerged from the truck and started shooting. the driver was shot and killed by police. thursday, the french president announced a state of emergency in place following the november terror attacks in paris would be lifted later this month. again, at least 30 people have in killed and dozens more injured after a truck rammed into a crowd celebrating bastille day. comey is not confirming if hillary put american lives in danger, at least not in public. fatally shot man by a police officer last week is
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being remembered today. philando castile was shot multiple times during a traffic stop after he told the officer he was licensed to carry a gun. his girlfriend live streamed the aftermath on facebook. the fbi director saying today 's internette expertise is a major threat to national security. says the groups widespread reach online is dangerous. this is bloomberg. it's just after 6:30 p.m. thursday in new york. i'm joined by paul allen with a look at the markets. good morning. morning.d new zealand has been up and running for 30 minutes of trading and looking reasonably good. picture on the nikkei is a bit more mixed as week away the line of messaging service to begin later today.
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we are expecting modest gains for the s&p. blue scope steel shares will be in focus today. the largest listed steelmaker in a string of you got a good hop yesterday when they announced earnings for the second half would be to the 5% higher. also an interesting story on the bloomberg about the reserve bank of australia conducting a study on potential unconventional policy measures should the economic situation to tear your a sharply. gdp.ig one today -- china ♪ emily: welcome back to "bloomberg west."
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i'm emily chang. follow thetinue to tragic events in france and bring you updates as we have them. i want to talk a little bit about nest. a month after the cofounder and ceo stepped down, it has released a new product is similar to the classic camera but coming in a weatherproof case meant for the outdoors. it features a new algorithm that can detect if a person is approaching the house, alerting you on your phone. we spoke exclusively to the head of hardware products at their headquarters in palo alto. take a listen. .> it's really cutting edge ai we have turned something that is very high-end and an outer rhythm that is very complex into something customers can really experience every day. the benefit they get out of it is we will be able to tell them exactly when someone actually is seen by the camera, not just that something happened in front of the camera, but actually that a person was detected, and it
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happens automatically. it just happens as soon as you are a subscriber. your video feed starts to be analyzed, and automatically, we will send you push notifications on your own and say we think there is a person if we're not quite sure or we know there is a person. if you think about it, if you have a camera to protect your home, that means you will be able to cut through the noise of other notifications and really respond to the ones that are most useful for you. this: could you have built without being able to tap into google's deep resources in artificial intelligence? maxime: this is an example of nest and google working very closely together because google is the best that these kind of algorithms and we have the best camera on the market, so both of us working together and both of us being alphabet companies
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means we were able to deliver this to our customers in no time. it would have been very hard to do it without google. emily: is there a possibility you might give users the ability to tap into google software through this camera? moment nest the acquire the software, we made who hadt the customer theirroducts do not have data going over to google. for this integration, we have made sure we had taken the google algorithm and made it run on our servers. so we still want to maintain a difference -- if you want, a wall -- between nest and google data. need tohe camera does be physically plugged in.
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some of your competitors have battery-operated outdoor cameras, and some potential be amers say this could drawback. why not make this battery operated? maxime: we believe it is an advantage because that means the camera can be always on, always watching. the issue with battery-powered cameras is they are asleep most of the time, and they have a sensor, usually infrared, trying to detect motion, and when it connect to turns on, wi-fi, the goes back to sleep. with a plugged in camera like ours, it is always on, always streaming, and if you are a subscriber, it is always recording continuously, which means you can always go back in time but also means the camera can constantly analyze what is happening and you do not enough in situations like some of our competitors where you only get half a clip of someone walking out of the game, and you have no
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idea what happened or who that person was. emily: there were some complaints that a photo on your website depicted an intruder who may or may not have been black. when twitter user said she thought it was racist. how do you respond to that? e: i have not seen a specific mention or article. what we put on our website was actual footage coming from different customers. i do not specifically remember being someone white or not. i really did not pay attention to that. nest: what has life at been like since tony lefty? left a little over a month ago, so it's too early to say what life will be without him. ever since our new ceo started,
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he has been learning how and why we do things and challenging and pushing us to think more out-of-the-box to help get to the next stage. involved was tony with this particular product before he left? do you think it is a loss or do you think nest is better off? was actually very involved with the product and was actually the driving force behind it, but the original idea came from the engineering and product team who came to the table about a year ago to say they thought they could bring to the market a product that ittomers really love because has evidence they won an outdoor camera, and they believed they could do it in less than a year, which is very aggressive if you think like that about a new hardware product. there has been criticism about how slowly nest products have rolled out. tony was very adamant that you
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have a very extensive product roadmap in the future. what can you tell us about the product that are to come? will we see more products more quickly? last year, we revamped .ur entire product line we introduced our fourth product less than a year after that, so the other thing we have been doing is putting in a lot of emphasis on software and services. think wetimes, people are a hardware company, but that's not true. hardware, software, services company. we have been strengthening that part of our organization over the last year. going forward, we will need to continue to do both hardware and software at the same time in order to continue to be leading the connected home market. that was nest's head of
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products. i want to get back to the breaking news happening in nice. we have are boards of dozens of casualties after a truck driver drove into a crowd. from aetting headlines spokesperson speaking from france's interior ministry. they are looking into if this person had any accomplices. the interior saying no hostages taken at this time. i want to bring in our producer in paris. what can you tell us? caroline: apparently, the attack happened about 10:30 p.m. local french time, so that's two hours , on the beachfront in nice .n the south of france this is where a lot of people on holiday just walk around in the evening. today, you had the big celebrations of the steel day on the beach. a truck, a large
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truck, apparently the kind of truck used to deliver fresh ,oods, rammed into the crowd killing, as you are mentioning, several dozen people. we heard earlier on french wasvision here the deputy talking about 30 dead and 100 injured. emily: we're hearing different reports about the number of people killed in this particular incident. is it clear why this happened and if indeed it was some kind of attack? caroline: so far, authorities are not speaking officially about a terrorist attack. some are suggesting it is a act ofted criminal
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significant importance, but at in paris,, the crisis and there ministry president who was in the south of france himself, is flying back to paris, so there is no official talk at the highest level of government about a terrorist attack, and authorities are investigating if the truck driver was a lone wolf, if you want, or if he had any accomplices with him. the french president is on his way back to paris now for an emergency meeting. this is best steel day in france, a national holiday with celebrations happening across the country. paint a picture about what is happening across the rest of the country and this event happening across that backdrop -- against that backdrop. caroline: i was actually myself at the bastille day celebrations in paris when this happened, so i learned the news on my cell phone just like most people.
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people gather for the big firewalls in paris. you had hundreds of thousands of people in nice, probably about 10,000 people on the promenade to watch this fire walk. know, since the november ,3 terrorist attacks last year this state of emergency was actually supposed to be over in about 10 days. earlier today, the french president did his traditional bastille day national interview and said he would end the state july 26.ncy on obviously with this attack, he might have to reconsider that. much forank you so that update. we will continue to follow this
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story. the white house saying president obama has been briefed, but dozens, perhaps as many as 30 people killed in nice after a truck plowed into a crowd. continuing coverage after this break. ♪
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mark: more on that breaking news that emily was just telling you about. crowdk drove into a killing at least 30 people in nice as the nation celebrated its best steel day. several hundred people were injured and police have ordered people off the streets. they say the driver of the truck -- the driver of the truck was shot and killed in the deputy prefect for the region said the attack was "a criminal act," but
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he made no mention of terrorism. president francois hollande has office says he is returning to paris for an emergency meeting at the interior ministry on the same day that resident hollande announced he would let the state of emergency expire that he had imposed after terrorist attacks in paris in november. again, a truck driving into a late-night crowd killing at france, people in nice, as the country celebrated bastille day. an estimated 100 or so more people injured. police have ordered people off the streets. we will continue to follow this breaking development and give you more information as we get it. that to you in san francisco. -- back to you in san francisco. emily: thank you for that update. forare president of cnn many years. this is when cable networks go
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into overdrive, and unfortunately, we have just seen one horrific event after another. we are still trying to determine why this happened, if this was some sort of attack. what is your reaction to this happening once again in europe? >> it is obviously a horrendous thing. i'm watching the coverage on facebook right now, the same images you guys were just carrying are on social media now. new way to stay on top of what is going on and to connect with other people. will happen now, as so often happens, is when news breaks out, the audience seems to know where to go to find as much information as possible, so they will be going to cable outlets to try to understand this and all of this
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on social media to talk with their friends about because that's what social media allows you to do. when you see an image like this on television, that's the end of the experience, but when you see it on social media, that is just the beginning of the experience. this point, many watching thisen at the same time they have been watching television, but given the events that have been broadcast, especially over the people often go to facebook first and only facebook. video,acebook has that that's a good first wave or first draft of the story. they spoke has the ability to do something that cable news cannot, which is to be basically everywhere. in cannot have a camera every person's car around the world, right you
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but that is essentially what facebook has got. i'm sure we will start to see a facebookdeo appear on from people who were at this horrid big event, and that is just something that any traditional media outlet is not equipped to do. what the social platforms cannot do as well is make some coherent sense out of it. zakaria --l paris fareed zakaria onset, one of the most brilliant analysts around, and they have people all over the world who are steeped in the story, and they can get the latest information out, but increasingly, it may be that social media is the first place you go and cable media becomes the backup to it. i would put it at this moment .here's a flood of traffic
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emily: you wonder if facebook at some point does take responsibility for monitoring and moderating. dozens of people killed after a thek plowed into a crowd in south of france. as many as 30 people as far as we are reporting now. we are continuing to monitor these developments and we will be right back after this quick break. ♪
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mark: breaking news coverage -- a spokesman for france toss interior ministry says there are likely to be according to the associated press several dozen aad after a truck drove into crowd of revelers celebrating bastille day in the french city of nice. an eyewitness said he saw a
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truck driver into the crowd and that a man with a done emerged from the truck and started shooting. the deputy prefect told local tv be driver was shot and killed by police. on tv, the french president announced the state of emergency this be lifted later month. at least 30 people killed. dozens, possibly hundreds injured after a truck rammed into a crowd of revelers celebrating bastille day in nice, france. we will continue to follow this story and have more developments as we get them. emily: thanks so much. again, continuing to monitor the story. i want to bring in john kline, former president of cnn. as said right away, you started looking at your facebook feed, that social media is now playing an increasing role in helping a traditional news organization tell the story, but i wonder, as more important and vital video goes to places like facebook and
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facebook live, what is the responsibility of facebook to moderate that content, to help people understand what is going on? trusti would not want to superior minds in engineering and coding to explain the world. they do what they do extremely if traditional media outlets are on their toes, they macy's this as an opportunity to do what they do best or could do best if they chose to, which is to make sense of all of it. facebook and other social platforms have a responsibility to monitor what is being broadcast live. you had a high school girl coping --paris rape of herthe friend or a legend rape -- a
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rape the othered day. somebody on twitter has to step in. i think that is there responsibility. you have news organizations and able to who might be seize this opportunity to make more and better sense of the world, maybe get out of the business of offering the first draft of what is happening, get out of the breaking news business, and rochus more on providing a sense of the world. right. thank you so much for staying with us on this story. we're continuing to follow what is going on in france. stay tuned for all the latest details. ♪
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>> dozens of people killed in the french city of nice as a truck drives into a crowd celebrating bastille day. u.s. stocks extend their all-time high led by banks as earnings per into resilience in the global economy. we are counting down to the tokyo debut after a 20% -- 27% jump in new york.


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