tv Bloomberg West Bloomberg September 19, 2016 6:00pm-7:01pm EDT
and wounded during a shootout with police. authorities say two opposite of what wounded, but were not believed to have been seriously hurt. islamic relations welcomed his arrest. more than two dozen people were wounded in the blast on saturday night in new york city's chelsea neighborhood. a pipe bomb exploded saturday in seaside park, new jersey prior to a race for marines and sailors. a device exploded at a train station in elizabeth, new jersey sunday night as a bomb squad robot tried to disarm it. new york city mayor bill de blasio told reporters, "we have every reason to believe this was an act of terror." >> there is no other individual we are looking for at this point in time, and that is very important. second, vigilance is called for. say they have,s
"no indication that the suspect was part of a broader cell." news 24 hours a day, powered by more than 2600 journalists and analysts in over 100 countries. "bloomberg west" is next. ♪ emily: i'm emily chang and this is bloomberg west. coming up, it is lift off for gopro. shares soar as the company unveils its drum. on amazon as the company transitions to the cloud. a co-ceo tells us why he thinks amazon is within reach. highly anticipated new guidelines for autonomous vehicles coming from u.s. highway regulators this week.
first, to our lead. gopro stock takes off. they just unveiled a handful of new products, including the consumer drone, karma. the device will go for $800, the into a backpack, and come with a controller that shows a live feed of the view. they also introduced the latest models of their flagship hero camera line, including a waterproof version. why is this a big deal? the release had been postponed once already, and the hero for had been criticized. gopro shares are down a staggering 80%. analysts had been viewing today's product event as a pivotal moment. i sat down with it gopro ceo after the event, and asked how the jumbled up the business move beyond capturing amateur footage. gopro ishe thing that
known for is its versatility. the same phenomenon that has benefited the sales of our cameras will also benefit karma. that is our customers buying and using our products to accomplish things that we haven't even jumped up -- dream of. emily: talk to me about some of the cases you foresee? >> consumers are going to have a blast using karma to capture their lives in a whole new way, whether it is aerial footage or handheld footage, or put his mouth into their body while they are skiing or biking. people will be able to capture their lives with such professional quality that they are only used to seeing in film and television. newhink we are entering a era of high-quality consumer generated content. one of these for their contributions to the television industry, so we expect karma to dramatically
improve the quality of footage that film and television producers are able to capture but governors. -- with gopros. karma is so versatile and capable. i think we're going to see people using karma to study shock absorbers in the so they canndustry improve the performance of those products. across the board, karma will be used for a town of interesting applications. emily: what are your expectations for sales? >> time will tell. with think karma hits a existing gopro customers. -- over 20lions million gopro's sold since the introduction of our first hd hero back in 2009.
gopro is compatible with euro for cameras. we think we have a terrific installed user base that will have a lot of of generality and use out of karma, but we think it can expand our markets in professional capture, both in film and television production, and industry as well. emily: there have been concerns that the action camera market is saturated. how is impacting your expectations with the euro five -- hero five? >> the consumers rate of purchasing gopro from best buy and target, the ring that people are buying gopro has never been better. when people say the market is saturating, we just don't see that in our business. this is consumers buying hero f
ours that are two years old. and you consider how much better incredibles, it has image stabilization built in, there are so many additional benefits to the user that we think they are only going to buy hero 5000 more frequently, so five moreero frequently, so we're feeling good about it. emily: are you worried about more cannibalization? >> know because video resolutions are important. it is a tech spec. what a consumer's after when they buy a camera, they are really thinking about the story that they can share, and that is what is so exciting about the new products and services we announced today. gopro is now in and to and
storytelling solution. now enables people to automatically upload those moments to the crowd so that they can access them on their own. using our quick mobile app, they can quickly create a story that they can share. gopro is not just a camera company anymore. emily: there was a lot of buzz around gopro as a media company during the ipo. is that still your strategy, or are you pulling back a little bit? >> our vision remains the same, which is that as we enable people to more regularly capture and share great stories, so gross our opportunity as an entertainment company. gopro is a brand by the people, for the people, and we think our prospects in entertainment are directly linked to that. -- reach ourr job primary vision of helping people capture and share great stories, which i think we unveiled at solution today, the result of
that is our customers capture and share so much more compelling content at much larger volumes, and we can aggregate the best of those stories and redistribute those as gopro entertainment. the division remains the same. emily: i have to ask you this question, about a potential acquisition target that google might be interested, apple, sony. is this something you have given thought to? >> not a lot. we have a terrific vision for the company. if there was an opportunity that dramatically help us accelerate , that might be something that is interesting, but we are doing such a great job of executing against our vision ourselves. we are very sensitive about the future as a standalone company. emily: how many of your products are patented, and have you think ip in general? >> ip is extremely important, and we have a really robust
grant. we're filing more patents every year. it is something that a few years ago we relied on, and as we look toward the future and realize how important patent protection was going to be, we invested heavily. people inventing incredible solution that gopro. emily: software has been a big kink for gopro. what else are you doing to address that? >> can you ask the question again? emily: i want to talk about software because this has been a kink in the chain for gopro, and i wonder what you are doing to address that. we've done it. we dramatically improved leadership of our software teams and build out teams that are capable of realizing the vision that we have for software, and that is helping people make and edit in minutes or seconds, versus hours.
we are really trying to eliminate the desktop computer from the editing equation. we realized our customers want to capture an experience and edit that experience on their phone and move on with their lives are you as you saw today, the fact that gopro's canal auto upload to the cloud, and we have a quick key sd card reader for phones that lets you move your content to your phone late. in secondsnt app, produce compelling video. we have done it, and it is something we're proud of. i don't think software will be a problem. emily: do you see future applications for gopro and capturing live footage of basketball or football games? be aseems like it could huge opportunity for gopro. how big do you think that could be? we actually are today already enabling some of the most
exciting life perspectives and television thanks to hero cast, which is a live broadcast solution that we developed that attaches to a hero camera and fromdes life perspectives an athlete helmet or from their chest while they are in skiing competition, a band on stage. back todays enabling and it is terrific for our brand. emily: gopro ceo nick woodman speaking to us after new product unveiling in tahoe. we're watching shares of the network control company info box urging more than 50% on monday after announcing it will be bought at a private equity firm vista partners. the deal ends a tumultuous journey for the company this year. in april and activist firm to close the 7% stake in the company.
they hired morgan stanley for activist percent soon after. now to our tech revolving door. he will take over the world from staci smith who had already moved into running operations and sales. he comes from general atlantic where he was an operating partner. he was cfo of ebay for nine years. oracle is doubling down on the cloud, proclaiming, "amazon's lead is over." interview with their co-ceo, next. setobama administration get to shared vision for self driving car regulation, but will google, over, and tesla find it helpful or stifling. this is bloomberg. ♪
emily: oracle's open world is underway in san francisco, where the company is making a big bet on the cloud. they made a slew of announcements that helped position it compete with amazon's cloud business. i bloomberg editor at large spoke to oracle ceo, mark earlier about why the company is making its push. >> because of cloud now, we get a chance to go into what you might traditionally think of the midmarket that we would never have had the opportunity to go into back in the traditional on premise world. you have companies now that have the opportunity to get the best
and most advanced technology in the world with no i.t. staff. they donate hardware or software on premise. now some of the companies you see around us here, pandora, etc., that have started with the technologies straight out of the cloud. >> you talk a lot about having your own cloud. one competition with people like microsoft, google, amazon. what do you offer that will put you head to head with those guys? >> our strategy has been to build a whole suite of capabilities. platform to us is everything from database, everything. highlightingally our infrastructure capabilities, and for us, that means better
performance, better security than anybody. >> what does it mean for margin? that is a business where margins are opaque. this joy ofad software margins for so long. major supplier to work out as ourselves. we have a whole set of capabilities that range from processing capabilities, databases, operating systems, so we believe our infrastructure is just as good. thee is a little bit of issue in clouds that you have to invest before you get revenue. if you went back even two years, 39% two yearsre ago. we predicted they would start to move toward 80%. in the last quarter, we were at 62%.
we invested a lot of data centers upfront, sort of like the hotel business. similar in the cloud business, you put a lot of n -- a lot of capital in. >> some other companies have big adjustments where it has been really bumpy. >> for us, in to one which we grewclosed, icloud revenue 16%. that is the way to look at the combination of the two together. >> what does that mean for maintenance long-term? you have had that's great maintenance revenue stream. to have lessds maintenance with it. i wonder what that means is you look into the future. >> many of our customers have a say it contract today and am now going to use that application in the cloud. we're not doing more for the
customer. where providing hardware, we are providing all the infrastructure, the data center, the staff. as a revenue would go up. ofwould go higher because the additional services we're doing for the customer. the margins would be reflected. a man who works at a company , he has done ace bunch of acquisitions. at buyingyou look overbuilding? >> we do well. right now we are in access of $5 billion. rmb's spending is not always the best indicator of yield. the best thing about oracle is d is sod for r and
exciting about the number of products. we have written all our software. we don't build everything, and we have a pretty good mapping of what we build, and we can go to the market and supplement. in it for you have other companies.uying how high are you willing to go? how you make that kind of decision? > >> we are in the middle of that process right now. we cleared all the regulatory hurdles except the u.s.. once we do that, we will begin. >> as you look forward, do you think there are a lot more deals to do out there for oracle? >> we go through a filter for
every acquisition we do. is it a business we can actually run? we go through all of those filters. i never get into any prognostication on m&a opportunities. our history is probably the best predictor of our future behavior. emily: it was our bloomberg editor at large cory johnson with the oracle co-ceo in san francisco. tomorrow, we will be bought talking to oracle's other co-ceo. watching,tory we are google is pushing further into the online travel market with a new app called google trips. the app automatically pulls details about a user's trip from their gmail accounts and recommends restaurants and local attractions. if this is google and more direct competition with review apps like yelp and trip advisor.
those lucrative transactions remain in the realm of expedia and priceline. tomorrow on bloomberg, do not miss our conversation with the .eo of new economy this company is testing a rival service on the streets of singapore. up next, drones flying with the flick of your rest. this gesture control arm band has just picked up some big tech backers. details, next. this is bloomberg. ♪
a company has just four to $120 million in new funding from amazon. the canadian startup makes an armband that introverts electrical signals in arm muscles to allow users to play games, fly drones, or spectre articles hands-free. it came from a fund that focuses on for the could work alongside its was controlled home assistant. computer projections and headsets where the line between human and computer interaction. in other store the we are watching, tech industry veterans and the ottawa to ban human a 150 mile stretch of interstate five. they would like to see that highway as a testing ground for driverless cars. and amazon board member and former microsoft executive are unveiling the plan at a conference on monday. they suggest phasing it in over
a decade, starting with allowing self driving cars in carpool lanes and moving up to allowing only self driving cars during peak travel periods. eu competition commissioner comes to washington and u.s. highway regulators care to release highly anticipated guidelines on autonomous cars. we will greet the week, next. if you like bloomberg, check us out on the radio. you can listen on the bloomberg and onut, bloomberg.com sirius xm. this is bloomberg. ♪
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many others were made possible because of our extremely open immigration system, which fails to properly vet and screen the individuals or families coming into our country. ton: we know that a lot of the rhetoric we have heard from donald trump has been seized on by terrorists, in particular isis because they are looking to make this into a war against islam. mark: more than 800 emigrants from so-called special interest countries have been ordered deported or removed after being granted u.s. citizenship by mistake. that is according to a report from the department of homeland security. and complete fingerprint records resulted in the lr. the united states says it is prepared to extend the truce in syria, despite a declaration by syria's military that it is over.
secretary of state john kerry says humanitarian aid deliveries to parts of the country are picking up, and that the agreement needs more time. i'm mark crumpton, this is bloomberg. p.m. here after 6:30 in new york. i am joined by my colleague paul allen with a look at the markets. good morning. zealand has been trading for 30 minutes so far on tuesday. it is looking very flat on the currently off by a single point. nikkei futures looking mixed at the moment. we're expecting a flat moment here. thise expected to open morning, monday was a real mess. the open was delayed by 90 minutes, and the exchange ended up closing early as well. issue and very little trading took place. the asx was one of the biggest
movers. the exchange has apologized to traders for disruption. traders are positioning themselves at of those crucial policy meetings from the bank of japan and the u.s. fed. we are expecting tbg telik onto be out with full-year results. $364 million profit expected there. later today, the reserve bank of australia will release the minutes of its september meeting. the new governor is juggling an unusual picture of strong growth and weak inflation and underemployment. i'm paul allen for bloomberg tv in sydney, australia. ♪ emily: this is bloomberg west. i'm emily chang. it is time to dive into the tech stories from an center.
apple still top of mind this week. with the u.s. senate finance committee reaffirming its opposition to an eu order that apple pay nearly $15 billion in unpaid taxes because of an alleged sweetheart go with ireland. the eu failed to build a case that ireland gave apple illegal state aid. since the ruling, "ran roughshod over the iphone maker." been publicly critical of this hearing. he with me to discuss, bloomberg and ourxecutive editor reporter who covers apple. what do we know about this meeting? >> pretty much all they said in the press release. they did not make the case effectively, this was illegal state aid provided to apple by the irish government. i don't think it's any surprise they come to that can vision because any tax apple has the pain europe, england is not have to pay.
it's not that it doesn't want apple to pay tax, it just wanted to pay tax year. an interesting exchange on twitter between the commissioner herself and an asset manager who tweeted after -- at her. she responds, " i will." international politics being litigated on twitter. what she is saying there is that this is an apple issue, it is not even really a u.s. technology issue. all american companies have gotten very clever in the last couple of decades at minimizing their tax in europe. this is what they do. they either forge unique relationships with countries .ike ireland they are very great at creating
stateless entities were they funnel all their revenues into a shell company, and sometimes pay. they are not breaking the laws, they are exploiting loopholes. the question is, is incumbent on these companies to act against their own self-interest and pay the tax, or do the countries themselves need to rationalize their statute. emily: what other companies could we be talking about here? google has several different issues going on in europe, and there is talk about picking on facebook's whatsapp and skype. alex: there is also starbucks and mcdonald's. they came up with a calculation that mcdonald's of 500 million and taxes in one country. one can't possibly gauge how accurate that is. in the tech world, anyone is interesting. one difference you have to make between apple and the others is that apple's deal with ireland was not that it was paying low
tax, which is ireland's tax rate , it had a one-off agreement with the country. , there are notow any others which have that agreement. emily: what about google? brad: certainly. and almostpmorgan, every american company operating in europe has some form of tax minimization strategy, as you would expect. emily: we will be watching for any headlines out of that meeting. i want to move on to cars. an interesting post coming from about this ring the in a self driving cars, saying that the majority of rides will be in self driving cars by 2021. this on the heels of uber putting the first of driving car on the road. brad: not coincidental that he lays out his vision after uber debuts of pittsburgh.
brad: five years seems a little aggressive to me. how they will get there is the big question. spentas gone out and money for a company like auto, they have hired folks from carnegie mellon. lyft has an arrangement with general motors. we will see how effective the traditional detroit automakers are pioneering self-serving cars. they have to report to wall street every quarter, so they have less flexibility. he lays out a tremendous vision. he talks about reengineering cities, but how do companies like lyft and gm get there when they are competing of google which has limitless resources. he is using the elon playbook to hype up his company's potential. we have seen ford talking about their autonomous vehicle on the
road, potentially in ridesharing half it he by 2021. might expect it is a call for potential partners to team up withlyft. we have had a lot of word coming on their attempt to find new partners. i wouldn't be surprised if you place it in the context of this announcement that they are looking to people. emily: what's the latest on that? know.we don't we think their fundraising, and they have talked to a lot of partners, and no deal has happened. we're expecting new guidelines from the national highway transportation safety administration around self driving cars. we expect some sort of support but theyomous driving, have that district a balance with that and safety. what do we know? alex: a lot of it is working out how to approach new ethical
questions, for example. do you crash into a person or another car, or do you drive off a cliff? also trying to eliminate some of the legacy issues. i heard that one problem with the screens you might have inside an autonomous vehicle, that is forbidden in some parts of the country because of legislation from the 70's, which meant you could not watch abc are in the car. -- a vcr in the car. brad: we're in the third stage of this transportation revolution. first we had a on-demand taxis, then we have ridesharing, and there was no direction from the government. let the department of transportation are going to say this week, with caveats is that they see a lot of societal benefits to autonomous car research rolling out these on-demand networks, and i think they will really advocate for research in this area, and they will basically direct states to
come. up witha coherent strategy to deal with it that is a lot different than the past.been seen . hopefully they are preempting that chaos. thank you, both for stopping by. shares of htc surging 10% in monday trading. the company's biggest gain since may. this is after the company confirmed they are unveiling a new phone on tuesday. they will unveil their desire 10 oh. coming up, how will the london tech scene cope if the u.k. leaves the single market? we will do down with the deputy mayor of london, next. this is bloomberg.
emily: facebook, citigroup analysts say the company's hot streak will continue. they are raising their price are to $158, implying a more than 20% in. this as analysts and investors rates questions about as growth and competition. london has been working to convince international investors that it is open for business, despite brexit. friday, the u.k. chancellor admitted it was hard to see how the u.k. could keep its membership of the european single market and regain control over its quarters. we caught up with the deputy mayor of london in his visit to new york, and i began by asking what the mayor's office could do to make london more attractive to startups. is an say that, but there increasing view. a lot of research has been done
that london has actually ranked .umber one to do business even for startups, it is a very productive place. talking about the office space, incidentally just this afternoon, the mayor and i were at a headquarters here in new york. the founder has announced two new locations that will be opening in london. in office big change space to a shared location office. those will really make a big difference. there are a lot of other areas in london. it is not just central london, but there are a lot of great areas in london, which have got a lot of talent. we will be focusing on some of those areas. we have to make sure -- the mayor has made it very clear that he is going to be the mayor for all londoners.
we need to make sure any growth of london is very inclusive. emily: what about larger u.s. tech companies? the founder about who that has talked about how difficult it is to work in europe because of the regulatory environment. have you see brexit impacting largest companies? >> the regulations have been generally by and large quite different, and it affects different firms in different ways. generally speaking, the regulations have so far benefited. it is a regulator's to protect the consumers, and make sure that trade is happening in a fair way. of course it will affect different companies in different ways, but by and large, london remains the best place in the world to do business. emily: what his rearview on the eu competition commissioner's investigation into apple? apple to payered
for unpaid taxes, and there is indication that she could start targeting other u.s. tech companies. >> it is a matter between ireland and the eu. it is not something i would comment on, but i would say this, any company in the world must fully comply with the law and the regulations of the country that they are operating in, and it is important to realize and recognize that the taxes are paid in a very fair way because they go a long way in contributing to the growth of the country. london deputy mayor in town from london. thank you so much for joining us. now to a story that is trending. twitter once its users to say more. unveiling a
long-awaited change to its character limit. photos, videos," teats will no longer count for the standard limit. theirange comes as to encourages users to be more interactive with multimedia content. 2 millionre than people watched its first livestream nfl game. twitter being sued by a shareholder who claims it misled investors on key growth metrics, -- executivesn promising to boost monthly active users to 550 million in the, "intermediate-term," and more than 1 billion and the longer term. they conceal they had no basis for those projections. as of june 30, the company had 313 million active monthly users. tomorrow on bloomberg, do not miss our interview with the newly named president of brazil. following the impeachment of his predecessor, that is at 5:00
--ly: multimedia exact executives susan lyne spent more than 40 years in the business. her next big endeavor to help ,ridge the gender gap in tech as president of an early stage investment fund for women led startups. launched to see if we could take advantage of what is a missed opportunity by a lot of , and invest inld technology startups with at least one female finder. emily: have you found it is a missed opportunity?
>> yes. i think it is. i will start by saying that we have seen over 1000 companies since we launched two years ago. the idea that there are not enough women starting companies is a misnomer. additionally, i think the range and the approach female founders have, they are by nature problem solvers. they start with some aspect of work life, home life, that they think needs to be fixed, and they go at it. i think they bring a consumer point of view to the party from the start. they are not sitting in a dorm some office in silicon valley thinking this would be: we felt that. -- would be cool if we felt that. emily: what do you think is
unique about the women in tech problem? women are underrepresented in leadership across the board, but what makes tech different, more challenging? >> i have asked myself this a hundred times. when i started in the media business, you saw very few women in key roles. that has changed dramatically over a couple of decades. i think it is partly because of the way silicon valley grew up, and because of the kind of startups -- it is about the way the computer industry developed. that early technology companies were really enterprise plays, and they sold mostly to large technology corporations, the i think cap -- kept world of sport -- of startups pretty limited.
it was all engineering majors, computer science majors, and it was a pretty small world. i think it is understandable up to a point. what i still have a hard time with his wider hasn't been more of a change in the past five years or so. emily: what you make a walmart buying jet.com for $3 million? can anyone take on amazon? can a small startup succeed? >> i don't have the answer to that, but i think walmart is doing the right thing. you can sit back and say they are unbeatable, or you can look for new models that obviously have traction, and tried to take advantage of that, and clearly , but failed her nose and was on very well. the last company was bought by amazon. he understands better than most
people what the competition is like out there, but he has developed a concept that i think is, and the idea of being able to buy with other people and get great deals are the result -- deals at a result, they might be able to build a stunningly business around that. emily: you worked at aol for a long time. what do you think of verizon buying them? i think it is a great opportunity. i think scale matters in this world, and with yahoo! and aol combined, it is a mobile media behemoth, and i think a lot of the customers that aol deals with on a regular basis are excited about having a third option in the world, so i think it is great. emily: as someone who ran brands
there for a long time, do you think the yahoo! brand can be revitalized? can it have the cachet it once had? yahoo!ink less about the brand overall, but yahoo! has brands that have massive , and huge consumer love, whether it is yahoo! sports, oryahoo! tumbler, and i think that is really the way that aol has been moving under 10, to really andtify brands people of embrace them. i think you will see a lot more of that with the yahoo! purchase. emily: that was susan lyne. , in a postingoday on a carnegie mellon bulletin asrd, it has or severely known use of an emoticon.
the message read i propose that the following character sequence . thee this 1982 message was first, emoticons did not catch on until the 80's and 90's. now they are more popular and very forever, all thanks to that professor. that does it for this edition of bloomberg west. tomorrow, we will pick up the conversation from oracle world with the co-ceo. also tomorrow, our interview with a self driving car company ceo that is testing on the streets of singapore. this is bloomberg. ♪
♪ announcer: from our studios in new york city, this is "charlie rose." this eveningegin with the presidential race. donald trump continues to gain ground on hillary clinton in the polls even as he comes under five are for the controversy of president obama's birth certificate. he writes about this conversation into k's washington post headline. post today's washington headline. i am pleased to have bob cost of back on this program.