tv Bloomberg West Bloomberg September 22, 2016 6:00pm-7:01pm EDT
than one week after she killed in unarmed black man. court documents say officer betty shelby, "reacted unreasonably when she shot 40-year-old terence crutcher who was walking away from shelby with his hands in the air. lawyers say he did not follow police commands. sure the police are refusing to release video of the fatal shooting of a black man until his family sees it first. the police chief said he has reviewed the footage. methe video does not give absolute, definitive visual would confirm that a person is pointing a gun. i did not see that in the videos that i reviewed. >> the national guard arrived in charlotte to try to head off a third night of violence. the top u.s. general said the rockets that hit a basin in iraq
contain agents. it contained a, "sulfur mustard agent." global news, powered by more than 2600 journalists and analysts, i'm mark crumpton, bloomberg west is next. ♪ >> i'm emily chang, and this is bloomberg west. yahoo! admits account information for 500 million users has been:. hackers may be behind it. what it means for verizon. linkedin's jeff weiner tells me he is rolling up his sleeves, and mapping integration plans for microsoft. he discusses whether more tech m&a is coming in our is an interview. the food delivery business in
your pizza. delivery here and tell us how it's defending home turf as overuse and amazon in court on its territory. major's double for yahoo!'s core business, i had of its $420 billion acquisition by verizon. today, the company confirmed that the personal information of at least 500 million users was stolen in a 2014 attack. yahoo! believes the attacker state-sponsored. the stolen information included names, e-mail addresses, phone numbers, passwords, possibly even security questions and answers. if it was aware of the date of 200 million of its accounts were stolen in 2012 what does it mean for the upcoming megadeal? rise and that it was just told of the data breach within the last two days.
joining me now is michael and george, cofounders of security. what stands out to you here? size, as well as the fact that it took two years to figure out what happened. >> the size is immense. this is the largest number of records stolen in any breach of the internet. the other big thing that stands out is, we say that it took two years to figure out or find it. aat's true, but when you have state-sponsored tech, you have an individual -- they have one main goal. billed as much as they can, they want to build as
much of a dossier as they can. they are good at hiding their tracks and persisting within the network. they have had in their tracks so well. i think the fact that they found it now is good. attacker is still in the network is not good. it doesn't mean they are not there but that they have not found additional evidence. it is difficult to ensure. emily: what do you believe of the contradiction that they believe it is state-sponsored but there is not evidence? >> i agree with the other guest at this point. to say that it is state-sponsored or not, everyone says they were come from us by a state-sponsored attacker or advanced persistent threat.
yahoo! knows more than we do, but it is a common thing to claim to absolve yourself of responsibility. go a stepat i would further and say that network is bubbly still actively comfort -- probably still actively compromised. because of the breadth, the attack approach is possibly infinite. it will be impossible to ensure anyone who compromised is completely out. there was a russian had --who said they >> i would hesitate to say it is russia, necessarily. and said that russia, in the past, and china, in the past, have been known to be actors such state-sponsored attacks.
that is a possibility. russia and china have cyber warfare capabilities. they could be involved. one thing that i want to add is when you are operating on the skill of you who, you have such an immense service area, that even yahoo! is not necessarily aware of every server or application that they support or have up. which is a problem. you need to track down where they came in, where they went, and where they left. if you do not know where all your applications and servers are, that makes it doubly hard. emily: do you think there may have been some negligence involved? could this happen to any company, especially a company as big as yahoo!? >> i think it could happen to any company. there is a certain amount of truth that you cannot defend yourself from someone like russia or china.
in 2010, google succumbed to operation aurora. i wouldn't go so far as to say there is negligence involved, this is almost an intractable problem. china and russia can outspend your defense budget by orders of magnitude. i think it is unfortunate that hit this way, twice in the last two years. we've seen hacks that correspond transactions as an attempt to gain the market. it is good food for thought to see why it is coming out now, especially considering the verizon deal. emily: that is interesting. what does verizon need to be thinking about as it tries to close the deal? >> they are about to acquire a company that has now publicly
announced they had a massive breach. they have to factor in the cost of investigating the reach, the cost that shows they have remediated the factors that caused the breach, the cost of showing the users are protected, and ensuring identity theft protection, or whatever they have to do. all of that factors into the question of price and all the dude diligence. -- due diligence. >> alex, what would your take the? >> i tend to agree with michael. what verizon should be doing is considering they're both probably actively compromised. there are probably foreign actors on the verizon network, on the yahoo network. verizon is interested in yahoo's
mobile and ad business. you have to look at it as a containment standpoint. not to belabor the metaphor, but they have to consider how to protect themselves, and what they are potentially going to buy from whatever they are harboring. this is the reality. both so muchyou for joining us. we will continue to follow this story as it develops. we will be taking a look at cyber security stocks that jumped today. nearly 5%. gains up tesla is cranking up the pressure to sell electric cars directly to consumers. the company sued the state of michigan to overturn its ban on direct sales by manufacturers. it is tesla's first lawsuit on the issue and it is on the home
turf of general motors and ford. tesla had been challenging these limitations on its sales model on a state by state basis. you have national implications as it races to bring its more affordable model three to market next year. the company plans unveil its solar roof idea next month. this after the board of solar city agreed to tesla's offer to buy it last month. elon musk said it on twitter. 28.ng for october comin coming up, linkedin unveiled its first big announcement since the microsoft merger. the ceo is with us next. this is bloomberg. ♪
emily: on their latest funding --rd, airbnb has raised valuing the company at $30 billion. the wall street journal saying google capital is participating. the size of the round could go up to $850 million. airbnb is letting some employees sell a total of $200 million in stock at the same time. linkedins ready for -- is ready for its first big product launch since microsoft bought the company. they are offering a.i. messaging. i sat down with jeff winner for -- jeff weiner for an exclusive view. >> helping our member say connected and informed is one of our central value propositions.
we are investing aggressively and creating the most relevant news feed possible. messaging makes it easier for people to keep in touch. for people to reach out to the people they want to do business with. that overhaul, relative to the prior inbox, we have seen very material. these things compound to lift engagement. emily: i know that we are waiting for the acquisition to close, but you said you have been rolling up your sleeves and digging in. tell us what it is like to plan. >> there is a lot of clarity in terms of the value that can be generated by virtue of leveraging linkedin's unique assets. to integrate that as seamlessly as possible on top of north of's footprint,
one million users. we have been working with teams, the outlook team, the windows team, the office team. possibleabout what is so when we close we can hit the ground running. emily: what should we expect to see first? >> i would not be pretty thing first in terms of chronological order, but some of the areas that make absolute sense -- integrating linkedin identity assets within outlook. so when someone sends you an e-mail, you know who they are. if you are less familiar, you can add them to your network. if you're already familiar, you can see if they have changed job or change the company. it brings the inbox to life. there is interesting things we can do with windows integration in terms of the activity center and notifications. beloved integrate the learning center. and with dynamics, continuing to
differentiate some of the business dynamics. leveraging sales navigator. things we can do with recruiter in terms of human capital management. emily: i understand the idea is for linkedin to remain largely independent, like facebook and instagram. how do you expect it to work in practice? how will it affect the culture of linkedin? >> from day one, we have said it is very important to continue to grow linkedin, realizing our mission, and accelerating our mission. both teams are aligned behind that objective. it is made easier by the fact, about culture, that is where m&a goes off the rails. you have two disparate cultures misaligned. in this case, the underlying cultures of both companies and already naturally aligned.
tya has been very mission driven since he took on ceo.ole of we are seeing a lot of alignment. emily: had you maintain your independence but focus on the synergistic goals? question. a great we took some time to naturally align the strategy. it doesn't require a lot of disruption. one thing i would like to see us get to, -- take product acquisition, we get a point where it is to longer acquisition integration but a natural evolution of the roadmap. team,ample, our identity thinking through that outlook integration, that should be som ething they are looking forward to doing.
we are trying to take a similar approach across all the product teams. emily: this deal surprised the market. you managed to keep it under wraps. it has kicked off a wave of m&a and speculation about more m&a. do you have executives coming to you who may be thinking their desire to stay private? >> the stain -- the same companies thinking about staying private previously had very specific reasons. i do not know that consolidation played a role. it was, should we remain private versus going public? what are the pros and cons? this debate goes on and off cyclically over many years. in terms of the increasing consolidation, i think we will continue to see that trend. it is less about public-private, and more about the competitive landscape. i think we will see more rather less. emily: you guys are the first big social network to go for
m&a. there is a lot of speculation about twitter. where do you see more m&a? >> i would be looking more from the acquirer front then being acquired. you have a lot of that taking place within enterprise. i think business applications will increasingly be used to differentiate these huge crowd offerings. some of the consolidation that we see will be good for all customers of these crowd infrastructures. emily: as an executive who has worked at big and small companies, what other benefits of remaining small and lean and vice versa? >> the smaller you are, the easier it is. there are fewer things that add complexity. the larger business becomes the more people you have to manage. the more businesses you are in, it naturally increases the
degree of business through complexity. the companies with the most initial success are those that remain focused on their core. everything is about reinforcing that core. overtime, businesses want to continue to grow. the expand beyond their core. the advantage of being among those companies, is they have far greater scale, and far more recesses -- resources to innovate. one of those examples is a.i. the critical mass of expertise required for a.i. is increasingly in a smaller number of companies second work at that scale. reed: i know that you and have traveled there many times, usingna, how do you see -- >> microsoft's global footprint
is impressive. we were in india and rolled up three new products. we got to meet with the prime minister. satya has met with the prime minister on several locations. china, as you mentioned. japan. microsoft has a huge presence in japan. that is a market we have not invested in as aggressively but we can jumpstart that. microsoft's global footprint could have a meaningful impact. emily: you unveiled a new learning product, building off one of your biggest acquisitions, lynda.com. how big do you expect that to become a relative to the whole? >> it can be a meaningful contributor to the top and bottom. that can be in two ways. one is the enterprise park where we are leveraging our sales force. north of 40,000 enterprise customers, where we can sell
into those businesses beyond the recruiting tools. on the consumer side, we are able to sing his -- seamlessly integrate into our premium subscription packages without charging an additional fee. we will add more value and we think that can help retention. emily: you are adding messaging bots, scheduling bots. there is a lot of excitement around bots, but they have taken a while to hit the mainstream. how do you maintain the quality of interaction? >> you maintain quality by being focused. not doing bots for the sake of doing bots. often in the valley, there seems to be this new introduction of new technologies. people become excited and they become buzz word oriented. you have to get past that and think how it is creating value. the example today was how to members connecting on linkedin
through messaging can schedule a meeting. that is something people want to do and often do through linkedin, but it is a multistep process. this really accelerates that process and makes it more seamless and intuitive. that is something that will work and create quality. you focus on getting that right and move on to the next one. overtime, you will see some platforms evolving. microsoft is investing in a platform tip ability to enable third-party -- platform capability to enable third-party bot capabilities. emily: our interview with linkedin ceo jeff weiner. bloomberg is teaming up with twitter as the exclusive streaming partner for the 2016 presidential debate, starting with the first debate on monday. w bpolitics.ollo
emily: an update on hampton creek, the vegan mayonnaise product they bought up to spur sales. investors knew of fraud allegations for as long as two years before the investigation. week'sl story is in this edition of "bloomberg businessweek." may beand ubereats big menin europe, but delivery hero say these rivals will not sweep the market. we will hear from the ceo next.
-- he said that in return he would like to address the palestinian legislative council. history -- a state of emergency as authorities work to restore electricity today after a power plant fire caused blackouts. schools and classes for universities were canceled. knocked out service for hundreds of thousands of residents. rahm emanuel is expected to announce a multimillion dollar effort to expand mentoring for youth from high crime areas in the city. he is expected to outline the area tonight as the third largest city deals with a spike in street violence at an ongoing department of justice investigation of the police department. mitch mcconnell has unveiled legislation to prevent a government shutdown next weekend. the bill includes more than $1 billion to fight the zika virus. democrats want funding to help
flint michigan repair its lead-tainted water system. it is just after 6:30 p.m. paul allen has a look at the markets. looks like we are set for a positive end to the week. new zealand, 30 minutes and already up just a shade under 0.2%. it looks like a good end to the week. futures indicating gains of 0.4% here in australia. it might be worth keeping and i on the big mining stocks bhp billiton and rio tinto. both were up in london trade. commoditiese saw worldwide gaining strength from the u.s. as well.
and equities there. as easing monetary policy continues. iron or marketing manager is expected to ramp up on the back end of, 2016 putting downward pressure on the crisis. after a one-daybreak, the nikkei is looking positive there at the moment. all industry activity for july is expected to weaken from 1% to 0.2%. emily: i am emily chang. this is "bloomberg west." startup investor rocket internet
saw shares jump to it's highest intraday level in four months. they say they expect three investments to turn profitable by the end of 2017. the berlin based company has dozens of stakes in food delivery and fashion startups, but have seen their price cut in half after some investments faltered. one of rocket's key investments, delivery hero, has been gaining ground. the service now works with 300,000 restaurants in 33 countries with sales growing by more than 50%. caroline hyde caught up with the cofounder and ceo and asked if he expects u.s. tech titans, like uber eats and amazon to encroach on his home turf. >> i would be surprised. it is a huge segment. i think we are very well-positioned. we make the most orders in the
world. we are the largest paper user for restaurant orders. we have been doing this for many years. learning that of we have done that they will have to do. we have the capital and all that is needed to do it well. uber focuses on car sharing and this is the second leg. for amazon it is the second or third leg. we have a benefit that we can be targeted and what we are doing and specialize in delivering food. caroline: what about the amount of competitors that can survive in each city? say like berlin? inning?wo that are w are there space for three? >> it is hard for someone to come in the late stage and make it sustainable and profitable. they might still cry -- try.
be hard to be sustainable for someone coming in so late. we are profitable and we grow above 50%. someone else can make a see.t there, let's and the uk we grow very healthy and very fast. see. be done by another competitor, maybe, it hasn't been proven yet. caroline: one of the confusions that surrounds delivery hero is if it is or isn't a rocket internet company. explain to us how you fit within the rocket internet space. >> we have built a healthy, good business. point, rocket came on board. very good shareholder to us. it was important to make a show
that we do not lose what we have. we keep what we have with the culture and how we run the business. and we leverage the value that they can provide. we can find a healthy dynamic with a good investor. they can give a lot of advice. we still operate as an independent company. caroline: when you look at rocket internet, it is about to have its earnings. is it a force for the future? becomeink delivery has an important part of their business. for good and for bad. partially, because we do not disclose financials. we make it hard to tell them how we do and how we are doing it. it is probably the most important asset in their portfolio. it is one not so closely linked to rocket itself. they are in a strong position. worried: you are not
that they will have to mark down valuations when it comes to your business? >> i would be very surprised if they did that. faster,rowing percentagewise. thanset terms, even faster 2013. expect to move to profitability in six months. -- it wouldtrange be strange to market down. . i think it will be marked up. caroline: you have opportunities to raise funds. >> we have capital and are close to the profitability asset group. i do not that is so important for us. i think we have the position to continue to run a healthy business and defend more if we have to, and less if not. for us, the whole market is less
relevant. that is why we choose the timing that is right for the company. caroline: that will the next year? >> we have not communicated when. when wemake sure that feel the time is right, we can quickly go. year, next year, or the year after, i cannot share. emily: caroline hyde speaking with the ceo of delivery hero from berlin. amazon mason become the second stock in the s&p 500 to cross the $1000 threshold thanks to a record-setting rally. the top $800 for the first time in thursday trading, narrowing the price gap between it and alphabet. group is, priceline the only stock in the s&p with
that distinction currently trading at more than $1400. botstor wants to use chat to change the way you move. we will tell you about the chinese ambition. our conversation with go pro ceo nick woodman on the unveiling of his long-awaited camera. will it be enough to boost company sales? this is bloomberg. ♪
market, apdio is -- they had originally expected a share price of $13 to $15 per share. the business caught the eye of venture capitalists into doesn't nine, and it was the first -- in 2009, and it was the firm's first investment. torator uses chat bots connect shoppers with experts to help them find what they're looking for. the company raise 69 -- $50 million in a new round -- $15 million in a new round of funding. i sat down with the cofounder and ceo and asked about their chinese ambitions. >> our original vision has always been to invent a new form of commerce. through the paradigm of messaging. my background was based in
beijing, which was acquired by zynga. we always thought this would be a global system. china, with the consumer shift toward great demand, represents a new way to buy things for our brands, merchants, and network of experts. emily: a lot of copies way to expand until later in their life cycle. now?e now -- why >> we are seeing a generational shift of chinese consumers designing quality rather than the cheaper knockoffs that they used to buy. because of this generational shift, the market is now well over $100 billion. it is growing at 50%, you're on your. -- year on year. if you have an american company that would allow them to buy from the actual merchants themselves, that is really
powerful. something that an american couple he can uniquely offer. emily: what makes you think that you will succeed >? >> we have a unique team. my back rent is based in the u.s.. we have -- my background is based in the u.s.. we have investors from china and the u.s. emily: what makes you think that you are not putting the cart before the horse or trying to run before you can walk? >> maybe we are. but we are going to take a shot at it. this represents such an interesting and complementry effect on how we are building this global system. emily: what is your vision for this ad scale? >> there are three modes of commerce. one, you go to the store. another, you go to e-commerce. the third is a digital channel that allows you to talk to human
beings, but have the range of the internet. this channel does not exist today, and we went to see it all over the world. emily: ucs talking to humans and not bots -- you see us talking to humans and not bots? bots, in of humans and a way that is complementry. emily: with her considered -- criticism that it is not moving fast enough. >> facebook has a multi-year horizon. as a partner, we are patient with them. we believe they are going to be a significant channel in the long run. it is six months since they announced it. we have to give them more time to play this out. emily: what about bots? facebook messenger is betting on bots. when do bots go mainstream? >> when the hype dies down and -first ideashe bots start percolating. we are starting to see that now.
the tools and infrastructure has to come into place. emily: you are an investor in show me -- xiao mi. skepticism around the market saturating. we have the new iphone, the samsung 7 hitting shelves. >> you are seeing a broad specular shift around smartphones trying to create differentiation. omit we are seeing on xia is supply issues more than demand issues. i am confident, in the long run, that they will be more than fine. emily: when you envision the hierarchy of smartphone vendors, samsung, htc, apple, how do you envision that? >> i think the enduring vision of high-quality products at low cost, scaled through social
media, and the new generation of marketing is very compelling. emily: you were an advisor to uber china. they sold the business. what do you make of that? >> it was a smart idea for both sides. both companies can ipo. you have two dominant players in two large markets. emily: did uber go about it run from the start? should they have had a china-based operator from the start? >> the biggest challenge for uber was not the ceo issue as much as coming in late. there is a natural network effect that a first mover can take advantage off. once you have the tightening of a marketplace, like uber is so dominant over lyft, it is hard. emily: do you see a dual monopoly, one, two or three big players, or is it four, five, six regional players? >> every i get is a google idea.
as you see an uber ucf baidu -- you see a baidu. most likely they lose. emily: that was robin chan. indianas acquired an machine learning startup software for an undisclosed amount. it specializes in analyzing big sets of data. it is apple's third a ideal this year -- third a.i. deal this year. and amazonebook, compete to develop their own virtual assistants. welsh joinsck "bloomberg " as a guest host. and filters, stickers, emojis. we will speak to a silicon valley content investor who thinks soon we will be chatting with pictures. this is bloomberg.
emily: southeast asia's flagship right healing service grab teaming up with economy to create self piloting taxis. until now, self driving technology has not been a per year ready for grab as it has been for uber. it meets a local government eager to cut car ownership and congestion. for now, they are missing a manufacturer but nutonomy says they are actively looking for investors. jab, ajim jeb, -- jib company will now be embedded within apple i message. these are tools that allow you to customize filters, adding filters and effects.
this as stickers are becoming more and more popular, widely used. third-party developers are excited. but why i message in particular -- imessage in particular? we sat down with the ceo and asked why they are betting on apple above all others? >> the key difference between the platforms. facebook is focused on bots right now. apple can enable integration within the messaging experience that no other third-party us and jurors could -- third-party messengers could enable. they can allow companies like jib jab to build services within your messaging exchange. other platforms would kick the user to another app and then back in. product tonable the be built within messenger and they can't enable seamless installs of your ap -- they can
enable seamless installs of your app. if i send you a link, you can enable it as well without leaving the conversation. that is the way that we grow audience. you can build a viral loop in i message that is difficult and other platforms. whoever receives jib jab content is one cap away from getting our app installed. it rakes the flow of the conversation. >> what is the lesson for the other messaging platforms? >> the lesson is, it will be very difficult -- the other platforms will have a difficult time engaging a network of developers to build these products into their messaging that form. other method -- --sagers will have to own allow others to own this
platform they are not used to owning. they will have to develop first party tools as opposed to relying on developers. snapchat has done that. they have blazed the trail around owning the content experience within messaging. you will see other messaging platforms do the same. >> that is a phenomena too, on snapchat, of the user putting their own image inoto some lens like you do with jib jab. jab, you have brands that participate that jab, you have t participate that way. >> clearly that is an opportunity. think that is the key. snapchat realizes that communication is fun. it is not just utility. it is about creating fun experiences and giving users tools that make your platform the place people want to go when they talk to their friends. wherest the message but,
is the most fun way to communicate with friends. >> what is the future? you made a big bet on imessage. what if it doesn't work out? >> we make big bets, but we are usually pretty cautious. we have been testing this thesis of content through messaging for a few years. maybe it is the entrepreneur in me, it is possible that it doesn't work out. huge growth area. line which just went public, $270 million of direct to consumer sticker sales. we are talking much bigger audiences opening up. for us, it is about building businesses, selling that content to users, as well as in the future, syndicating content and tools to other platforms. emily: sarah frier with jib jab ceo. blackberry is selling a new
device, but it isn't a phone. they say they have their first major customer for a fleet tracking device called blackberry radar. they will install 500 units. sticks on the back of a tractor-trailer container and updates the owner on things like temperature, location, and other data. john part of the ceo chen's campaign to use the patents and expertise for new industries. we will talk with john chen next wednesday before the company reports earnings. that does it for this edition of "bloomberg west." this is bloomberg. ♪
>> from our studios in new york city, this is "charlie rose." i'm jake cap are filling in for charlie rose on assignment. a conversation about diplomacy and national security. in his you and address, president obama called the refugee crisis one of the urgent tasks of our time and a test of our common humanity. secretary of state john kerry says the cease-fire in syria is not dead. efforts to resume peace talks have been subverted i the mb