tv Bloomberg West Bloomberg September 29, 2016 6:00pm-7:01pm EDT
100 injured when the train crashed through a bumper at the end of a track coming to a stop on the train platform. >> the most important thing is the structural safety of the building. the one fatality was not somebody on the train but somebody killed by debris that was created while they were standing on the platform from the crash. >> the national transportation safety board says the engineer has been released from the hospital and will be interviewed . a cambridge university study says the use of body cameras could lead to a change in modern policing. the study shows a decrease in the number of complaints made against police when using the devices. in southeastern china, dozens missing and hundreds were evacuated following landslides triggered by a typhoon. elise five people were killed from the storm in taiwan. rejectingcity council
a bid from the 2020 one, leaving los angeles, paris, and budapest in the running. ♪ ♪ emily: this is "bloomberg west." does qualcomm want a piece of the self driving revolution? what could turn the chipmaker into a car industry contender. plus, will salesforce stop a deal from happening? and questions lingering about an upgrade to american voting technology, whether ballot box
technology is already out of date. first, qualcomm said to be in nxp. to acquire reports following the busy year industry. the chip we crunched the numbers and you can see that record high activity. here to break it down is ian king. first of all, how likely does it sound that this type could happen? reporter: as you mentioned, this is something that is being speculated about for some time. although targets have been speculated upon as well, what is driving that is the fact that qualcomm did not participate in the record year last year it
still has more than $30 billion in cash now. does the deal makes sense? reporter: the market likes it. qualcomme saying, needs to diversify away from his dependence on the cell phone market where it gets 90% of its sales. automobiles would be a good adjacent for them. people are saying, do they need to spend that money on a company which is in itself in the process of digesting and acquiring? they just bought a free scale. we saw whatusly looked to be the climax last year. mna last a lot of the year was in the first half of the year. andaw deals being announced rumored in the stock market
reacting positively and it seemed to have a positive effect on willingness to go forward with a deal. then we had a falloff as the market started to look at things in a cynical view. you have to take into account that these things create their own momentum. emily: thank you so much. now to another player in the semi conductor space, skyworks solutions is a major provider from companies like apple. the global smartphone market is maturing posing both opportunities and shifts for semi conductors. liam griffin joins me in the studio. you were at the company for two years before being ceo. how do you intend to make your mark? guest: i have been with the company's is 2002.
one of the things that we love about this market is the tremendous ecosystem that we support. , amazon,acebook alibaba, uber car. -- uber. what we are seeing is an enrichment of performance, managing this massive amount of global data and facilitating that within bite-size pieces. emily: does that mean more business? guest: yes. ,f you go back a few years ago today we have these explosive architectures with more frequency and amplification, gps, all of that content are things that we do well. emily: talk to me about this transit. what do you think about that qualcomm and nxp tie up? guest: we look at mna with a
discerning view. we are aware of that money that we have earned and the cash that we have. we are generating a lot of cash. mna is a great opportunity but our core business is so good that we're finding that with research and development. we have the power and the appetite. --ly: you lost out on forward, you guys have a $13 billion market cap. do you see yourself being a predator or pray? -- prey. guest: predator, no question. we did a deal with panasonic, carving out -- we now have a 3 billion unit factory in osaka. we did a deal in 2007 to bring
wi-fi technology into our portfolio. we did a silicon valley deal to bring in power management. what we do is rather than selling parts independently, we integrate them into these elegant solutions. predator, what is the strategy? goal is to find acquisitions that augment our business, opportunities that play along the court of connectivity. can we round out this franchise and move that into iot? can we move into autonomous driving? we're seeing tremendous need for data and speed. emily: given the size of your sky works asou see a company that can afford to sit on the sidelines? guest: we are a significant player.
every corner that we have not done a deal, we generate more cash. i do not think we are going to be on the sidelines forever emily:. half of your sales are going to apple and there is concern about saturation and apple particularly -- their place in the market, they are losing steam. how do you address that? guest: the high end of the market has been phenomenal for us. if i go back to this ecosystem, the amount of mobile data and commerce through mobile devices continues to increase. the premium players put performance first. in that case, the leaders here looking at sansom, that is high-performance technology and architecture driving this data. for sky works, that has been great. we manufacture most of our product in-house. really, thinking about augmenting that with our technology. emily: do you plan to diversify
away from apple? guest: we do not want to diversify away from any customer specifically but we want to grow our market. int is one example where you have a market of things that has been around forever and the eye part is pretty that the internet. it is a portfolio of opportunities that we have been addressing successfully anything from thermostats, appliances, health and fitness watch -- emily: what about things like the amazon and go? echo?zon what about cars in particular? this is such an exciting industry right now, we are seeing this qualcomm potential deal happening there. how do you see things changing in the chip industry around automotive technology? guest: i think automotive technology is going to be phenomenal. we have not been a big player in automotive but in the last four years, we have been closer to the market and typically with
our solutions -- the next step is if we go to autonomous driving, that mobile pipe has to expand tremendously. latency be almost instantaneous compared there are safety issues. it is going to be a step up for the whole industry and i think an activity is going to be a key driver. emily: we talked on some of your customers and some of the players in this industry designing their own tips, making the run; -- what does guest: that mean for you? guest: we have in her front of that for a while. we have two significant -- check design, filter factory in japan, significant assembly and test facilities in mexico. when it comes to trying to chase is done the markets, i like our chances emily: guest:. what about long-term margins? do you plan to focus on margins or increase investment in r&d? we can do both, we can do both, or margins of considerably even in this year -- fy 16 we are up 280 basis point really kind of slow revenue.
if you look at our investments in r&d, it is the leading that we get by collaborating with the players in this industry the mix is more effective. emily: last question on internet of things, a space of for grabs, a lot of devices have yet to prove themselves been the chip industry who do you see as being the leader in internet of things? guest: we are a leader in the connectivity portion and again if you think about what is unique about this, it is bringing these markets that have been wired to wireless world so our technology will play in all of these applications from wi-fi to bluetooth around that there are some sensor companies, power management companies at play. it is a great space for just about any significant from. thank you so much for stopping by. great to have you with us. in today's revolving door, microsoft says a key architect for ai is leading the company to health issues.
he ran search groups in his eight years at the company. microsoft will create a new research group under another veteran. months after losing out on a bed for lifting, salesforce is urging regulators to scrutinize microsoft takeover of the social network claiming the deal threatens competition and privacy. the deal has already been cleared in the united states but has not been officially submitted. moves up, apple is making into health care. we will give you a preview of what they are working on, next. ♪
samsung is apologizing to chinese customers after complaints of combusting smartphone set off more safety concerns. earlier this month, the recalled 2.5 million phones on reports of batteries bursting into flames at sansom says the chinese models were safe. apple searching for new ways to drive revenue growth, expanding presence in health care. new functions planned for a new app would make it more like a diagnostic tool. their recent health tech acquisitions, they have assembled experts working on two problems, transferring data safely from one hospital to another and helping doctors analyze mountains of data about their patients. joining me to discuss these developments is alex webb. look at it mean? we do not know if they
will monetize this directly but if you have an iphone and you have all of your music on the iphone, it doesn't give you much incentive to switch to an android. if you have all of your data stored in your iphone, it makes it increasingly difficult to abandon your iphone emily: talk about how apple is expanding -- guest: kit is the place where you store your data and if you have a watch, your heart rate data, as well. but it wants to make is a repository for all of your information. you might have other wearables if you are a diabetic. if you have high pressure, you might have a blood pressure monitor. not only that, they made an acquisition a while ago to help them pull data from hospitals. putting all of that into your phone is all well and good but if you present it to a health-care professional, the
response is going to be, what do you want me to do with this? it is a huge amount of information. emily: in the turn this into a lucrative business just like itunes and the ipod? guest: there was an interesting analogy -- this acquisition that apple did with a company called engineer said that their vision for health care was -- what happened with the ipod, i music playing device in your answer from that they don't a music business. which was of course, itunes itself. the analogy to infer is that the watch and the phone might be taking steps to an end makes you used to having your information stored on the devices and then they layer on levels of complexity on top of that it emily: they now also have a partnership with an who is subsidizing the watch -- reporter: the thing that is
really interesting about this none deal ande aetna -- says they will subsidize the watch to give it to their employees and subsidize it to some customers to begin with --tna we do not of the scale of that -- quicklylders, it is not 23 million. the question has always been the watch. how are they going to break the delta? is there ever going to be a 50 million unit device? now, they watch -- usually will be something that is for life and that will last a few generations. if health insurers are incentivizing policy corners -- makes it likely lower increases the possibility that they will be selling a lot of devices that are two incentivize people to reduce their exposure -- according to -- how much of the sales bump could we see? guest: in the short term i do
not think it is quite a big colossal but if it proves to be successful, then we might see other insurers to a similar thing. who covers webb apple, thank you. termg up, 16 years ago the hanging chad entered the political lexicon but has voting systems -- have they gotten any better since the electronic voting revolution or lack thereof? ♪
networks have slumped. in the 2000 presidential election underperforming voting equipment introduced the world to the hanging chad and led to congress passing the help america vote act which provided him was $4 billion toward modernizing putting technology that would have to be easier said than done in the latest edition of the business week my grubby discovers that the computer voting revolution is obsolete and eight with mishaps . he joins us now with -- first of all, there are outdated machines from florida to california. talk to us about the extent of the problem. are thehis is what stories have good intentions and some pretty bad unintended consequences. the helpin 2002 with of the american vote act through almost $4 billion to move the entire country onto a computerized voting -- what has happened since then is you have developed a strange industry
that found dead that there wasn't actually a lot of money in computerized voting so instead they put a lot of money in different elections with the technology than it is being used to run his affections on is in fact very outdated data wasn't very good to begin with it a lot of it is built on firmware from the 1990's or earlier and it is found to have a lot of critical bugs in it. the problem is that these counties that use these $4 billion to purchase all the voting machines do not have any money to replace it and there is not really great technology to replace it with so you got a lot of really bad bug-prone sort of equipment out there and that is about to comply with one of the most contentious elections in u.s. political history. emily: obviously having a veteran a voting machine sounds great except that you know in comparison to a traditional machine you could lose the vote if something goes wrong -- are we better or worse off than 2000? guest: in some ways we are worse off because at least with those had actually au
piece of paper that said this is what somebody voted on and with electronic voting machines there are five states and parts of others that do not use any paper read all push means that it is just ones in zero so if something goes wrong it can be hard to reconstruct voters to think about what happened in florida with people looking at the hanging chad and trying to figure that out with -- software that is 20 years old and the servers have gone down or crashed over i mean the possibilities are really bad -- as the story that we wrote points out, you really got a problem of already a lot of distrust in this election and technology that is capable of inflaming that distressed emily: in a serious way. emily:what is the worst case scenario here? could these machines be hacked? is the worst case feeling? they -- they would that you can't -- they have a lot of
security flaws in it. the good news though is that it is really hard to hack enough of these things to change the election. u.s.is largely because the votes are counted at the level of jurisdictions which are counties and townships and there are 7000 of them. what might be worse is you just get an kind of the system by technological failure in a few places and people believe that it is hacking or manipulation -- donald trump has already said that he thought the election was going to be rate. the democrats have said that the russians are trying to influence the election up until election day. if something goes wrong technologically in a few places it is going to be really hard to sort out and in the meantime it is going to be filled up by a lot of fear and anxiety thoughts of -- somebody -- emily: it is an incredibly scary situation and a fascinating read in this week's edition of bloomberg businessweek. mike riley, thank you so much for joining us.
check out that story online and from theands and hear magazine reporters every saturday and sunday on bloomberg television. coming up, mobile advertising growing and outpacing legacy platforms, so what is next? we look at the takeaways. the radio.t on you can listen on the bloomberg radio cap, bloomberg.com. this is bloomberg. ♪
that the american people quote, have had it with years and decades of clinton corruption and scandals. >> they're tired of the lives, they are tired of the trivial politics, they are tighter -- tired of being talked to, look down upon, and treated like second-class citizens. mark: chumps of the clintons are cloak, distorted past. hillary clinton is urging supporters in iowa to cast their ballots as soon as possible. she told voters in des moines, quote, you can vote and we can be on the path to victory in iowa. early in person voting in iowa started today. russia has signaled it won't hold its offensive against the syrian city of aleppo. the criminal reportedly is willing to suspend bombing for 48 hours at a time to allow humanitarian aid to be delivered at secretary of state john kerry threatened to break off contact with moscow over syria unless the era tax case. global news 24 hours a day, powered by more than 2600 journalists and analysts in over 120 countries.
i am mark crumpton. bloomberg. it's just after 6:30 p.m. thursday in new york, 8:30 friday morning in sydney. my colleague paul allen has a look at the markets. : good morning. we are seeing declines in new zealand, up and running bloombe. for 30st minutes on friday. already off .5%, following u.s. equities lower, mostly over concerns around deutsche bank. we are seeing a weakness around asx futures. futures pointing down as well. all the data out of japan today, the consumer price index expected to show further weakness. so much for inflation, that is meant to be pulling back to minus point 5%. further contraction on weak energy prices, the jobless rate for august expected to hold steady in japan. new -- good news on the
industrial front, that is expected to rise .5% on reversing declines from july. release af japan will summary of its meeting later today with the governor kuroda peak at an event in japan. a lot of data out of china today as well. pmi's expected to show an increase in september 2 50.1. any number above 50 denotes expansion, manufacturing pmi expected to remain steady at 50. it's a big day in china tomorrow with the yuan said to join the sdi. i'm paul allen for bloomberg sydney, australia. ♪ emily: this is "bloomberg west ." the new york conference is wrapping up this week. advertisers around the globe meeting to discuss the future of
the industry and a mobile domino world. this taking place one week after facebook admitted it has been miscalculating its video metrics for advertisers. joining us from new york, the ceo of cargo, which creates mobile specific ad campaigns, and sarah frier, who was at adweek all week long. what is your biggest take away about what is going to define the ad industry over the next 2 to 3 years? >> mobile has been the big leader in the market. if you look at growth in the market it's the only area where there is major growth right now. it is super exciting to be an area that is growing faster than any other area of the industry. when we look at both ways across the industry, health care going at 26%. retail is going at 9%. mobile is going at 38%, it's like the fastest-growing area of the industry right now. this facebook snafu over how they calculate their metrics, how much did that bother you? >> it's a real problem.
facebook is supposed to be the gold standard in the industry. to are supposed to be able trust them. other than google they run more money than any other major media company in the industry. if you look at major media companies, they get such a small share of the dollars, i think $.85 of every dollar in mobile and digital overall is going to facebook and google today. for facebook to fall short in terms of their self metrics, what you are saying is can i trust this company or not. the good news is they've done integrations with third parties, and they're going to be -- hopefully the industry will push them to be third-party audits and moving forward. if you get that, there will be an apples-apples comparison between facebook and all the other major media publishers as well as snapchat and others. emily: you cover facebook, snapchat, twitter. you sat down with the coo of twitter at adweek. you have reported that disney is iserested, salesforce
interested, alphabet even potentially interested in buying twitter. there is a lot of skepticism around the future of twitter as a platform that can continue to grow. what were the most significant things that adam had to say to you? >> adam is convinced that live video will drive the future. potential, potential, potential. this is the latest product that has potential for twitter. we still haven't seen in the numbers, but we know adam bain is confident that people are tuning in for nfl. people are tuning in for debates. 2.4 million for the last nfl game. we will see what they have the futured that is of twitter's growth strategy. they are trying to get not just the social media budget, but the video budget that would otherwise go to places like youtube and hulu. emily: facebook and google dominate mobile advertising. how much potential do you think twitter has to take a more significant cuts have that? been one of the
key companies and social. if you look at snapchat, facebook, instagram, it has been one of the key leaders. one of the things twitter needs it much more self service and easier to buy twitter for lots of third parties, but we call the long tail advertisers. you see with facebook's announcement this week that instagram will be available self-service. that's a signal to the market that self-service is the key. driver to growth in the market itself when you look at facebook's revenues, when you see 25% comes from brands, 75% comes from small businesses and app downloads. look at those percentages of a part of the snapchat ander and all the major publishers and media companies out there, they need to be able to sell servant allow all the longtail third-party advertisers access to their platforms. snapchat and did you find that people are taking snapchat seriously as an
ad platform, or snap, spectacles and all? >> people are definitely interested to see what they do with the future of their ad platform, they are expected to open up their ads api soon which would allow people to build ad products of snapchat, which will be a big revenue driver for them. the thing people have to worry they measure their video views different than facebook, which measures some different than you to. is a common denominator for people to evaluate whether their videos are doing better on one platform versus another. snapchat seems to determined -- seems to be determined to play in its own sandbox and some advertisers are frustrated, why can't you just go with the standard of the market? we don't want to do something completely different for snapchat. they are very excited about a millennial audience, the younger audience that they can target. emily: how do you feel about snapchat so far, harry?
>> the team over snapchat is great. philippe browning, without cbs, he's a close friend of mine. he's one of the best in the industry. elon came over from an investment bank. he's thinking thoughtfully about the business. he basically said he's feeling very bullish about the growth of snapchat's advertising business going forward. they have a lot of work to do, obviously they are starting out and building their overall ad sales team. it's a brand-new business for them to get into ads. even the massive amount of teenagers, between's and even millennials using the platform, i think there's a lot of growth and a lot of interest in investing in that platform. emily: the ceo of the mobile ad news whoany, bloomberg covers facebook, snapchat and twitter, thank you for joining us. wants ap, elon musk city on mars. which companies will help them get their? we will dig into the private
emily: where sadie's bins is taking a page from tesla's playbook. the daimler unit said thursday its planning to release several battery-powered cars under its new eq brand. eq, electric intelligence, will also offer energy stores for homes and charging services. the daimler ceo says the move is part of an initiative to embrace
new technology across vehicle by 2025 thee automaker will have more than 10 fully electric vehicles on the market. carolyn high sat down earlier at the paris auto show it has all the details. >> every way you turn here in new electric vehicles. the race to take on tesla. the new concept id by volkswagen. we have spoken to the chief with the new zoe it unleashed, even general motors european unit as well unfolding its new electric vehicle. and not just electric vehicles, but technology in general. folks like in announcing an entirely new unit focused on the future of driving. it seems as though mobility is the watchword, autonomous vehicles. we spoke about -- we spoke about that with the chief executive of dialer. daimler. he really feels that the big
competition daimler. is the tech giants as well as the auto's. >> the digital world, they are taking possession of the automotive world and vice versa. if youives four main, want to disruptive, paths into the future and this is connectivity in the first place, the internet of things. it is autonomous driving technically, it is sharing, and electrification. >> electric vehicles and technology, this is at the forefront of everyone's minds in paris at the auto show. caroline hines, bloomberg news. emily: that was bloomberg's caroline hyde from paris. space travel, to spacex ceo elon musk calling for a new era of interplanetary travel, and even a colony on the red planet. it is true that back here on earth the private space industry has taken off in recent years,
with launch costs comingit down and everything from satellite tech to imaging capabilities taking stride. joining me is one of the earliest investors in the field, david cowan. first of all, what do you think of elon's plan to colonize mars? is it realistic or crazy? >> it is super exciting, and that's the point trade the most important objective of his announcement is to galvanize support for this idea of becoming a multi-planetary species. i think that he knows the idea of actually getting people there within the next 10 years is not really going to happen. that's why he's calling the first ship heart of gold, a tip to douglas adams improbability drive. on some important steps to solve the difficult problems around launch. emily: rehearsal much about elon musk, jeff bezos, richard branson. where do you see the most opportunity? foreally the opportunity
innovation is coming from the new technology that emerged in the last 10 years. that's now this in version has gone on in the aerospace industry. last century, innovation of space meant making satellites bigger and bigger. that meant they were more expensive, harder to launch. in had to radiation hard them, give them redundant systems. the whole industry collapsed under the cost and weight of those. it was a dark and try time for the space industry. in that vacuum these philanthropic billionaires came in with a sense of mission, but more importantly, students from cal poly and stanford figured out that they could get their sensors into space by using cell phone parts, and create these very small cube sets, and suddenly space became cheaper. 50 years of moore's law was there to be harvested. andsee companies like spire
others taking advantage of this cube set platform to disrupt the entire space industry. emily: do you think it's possible that dark time could defend again once people realize this is a really hard problem and that maybe it's just too expensive and too hard to get there? just like it did once before. we are talking about two different things. one is getting to mars and the other is the development of the space ecosystem. getting to mars is very difficult, and elon did not even talk about many of the challenges around the human factors. is radiation danger, which he dismissed way to quickly. there is impacts of space on how we live, our vision, our psyche, our organs. these are human factors nasa has been working on for a while and they are not figured out. he's also trying to take a shortcut. if elon were to wait for the
ecosystem to develop, there would be fueling depots in space. he won't have to send his boosters back-and-forth bringing fuel into space. it will be cheaper and safer if he leverages the ecosystem that the rest of the startup community is building a space now. weigh the risku versus reward here? is one thing and investing in space in general is another thing. it is still a hard and risky thing. how do you decide it is worth putting your money hre, when you don't know if it will be profitable? on very iffysks startups that are doing much less important things like helping teenagers share videos with each other. this is worth taking a risk on. ventures the space like elon's that are focused on the long-term social mission of
preserving our planet from asteroids, preserving the species by becoming multi-planetary, advancing science. companies can be profitable only if they are able to sell their technologies to the government, to nasa, to advance those missions. there are a lot of other areas where we can see economic value much more quickly. that primarily today is in communications, sensors keeping track of what is going on on earth. marine traffic, all kinds of sensing and imaging. then there are new applications being developed, like pharmaceutical research and zero gravity, asteroid mining. lots of other interesting areas i see every day. emily: how big a business do you think this could be? or is i tlargely -- it largely unknown? >> week and a emerging market, the answer is we don't know.
the aerospace industry today is in the hundreds of billions of dollars. it's a very large industry just waiting to be disrupted, just like automotive is waiting to be disrupted and if silicon valley comes in. to check inll have with you in 10 years to see how it's going. staying in space, blue origins quite anies are in for experience next week. jeff bezos space series will launch the flight. new shepherd will respond in emergency. if all goes according to plan, 45 seconds after liftoff the crew cap seal will abort, shooting away from the rocket. it will parachute to safety. the launch will take place next tuesday and be broadcast live on its website. coming up, the real-life shazam for everyday noises in our monthly tech series. we had to the heart of cambridge and introduce you to an ai startup like no other.
emily: tesla keeping up the legal fight to sell cars without dealers in any state banning the practice. the electric car maker sued michigan last week for the right to open its retail store their. vice president said direct sales were stymied because of traditional automakers' holds over michigan legislature. now to our monthly tech series, hello world. bloomberg's ashlee vance takes a fresh look at the explosion of technology around the globe. this time he heads to england to find out how the country is fighting to inject new life into its tech industry. for stop, cambridge to visit a i
started up audio analytics. check it out. in the heart of cambridge there is an ai startup like no other. it's called audio analytic, and you can think of it as a type of shazam for real-world sounds. allowuse intelligence to smart home devices to recognize the whole range of different sounds. make your house a bit secure by detecting glass windows being broken and turning on lights to scare away the burglar, taking active protection of things you care about. >> so what do we have here? devices. couple of detected smoke alarm. nobody at home. break. found glass says windowit
broken. what is the science behind all of this? >> we happen to a bunch of innovation in terms of understanding sounds, how to detect them, how to understand them. even if we take a simple sound like a smoke alarm. a beep. now we have 2 of them going, beep at different times. a whole bunch of background noise going on. that's a big ai problem solved. >> computers have to be trained to distinguish one sound from another and to learn the unique signature, glass breaking. analytic trains its software by presenting it with examples of a particular noise. of course, no two brekaing windows sound exactly alike, so these guys get to relieve stress by breaking a lot of glass. >> how many windows have you had
to break? >> windows, we have literally filled warehouses. different sizes, different thicknesses, different types of glass. literally bought all the smoke alarms you can find on the marketplace and indexed towards those. that was a huge undertaking. the software can also recognize the sound of a baby crying. >> hi. >> and as luck would have it, we found a cute, hungry baby on which to experiment. >> you can see on the screen it is affecting the baby crying. audio analytic software ships inside a number of smart home products. the company plans on adding many more sounds. >> here we go. >> but for now, it's the perfect
technology to discover. when an angry baby has thrown a smoke alarm through window. >> i'm sorry we have to do that. she was very sweet. emily: bloomberg's ashlee vance there per you can catch "hello friday, 9:30 eastern time, or that full episode at bloomberg.com. that does it for this edition of "bloomberg west." make sure you join us tomorrow, we will be joined by the nea manager. this is bloomberg. ♪
announcer: from our studios in new york city, this is "charlie rose." treause: david pe is here. he commanded u.s. troops in iraq ge, and alsour led coalition forces in afghanistan with the collapse of the cease-fire in syria, he has coalition forces ready to take most old from isis, i am pleased to have a table. gen. petraeus thank you, charlie. charlie: