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tv   Bloomberg West  Bloomberg  December 9, 2013 11:00pm-12:01am EST

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>> live from new york. this is "bloomberg west." we are covering the global technology and media companies that are reshaping our world. i am cory johnson. our focus is on innovation, technology, and the future of business. let's get straight to the rundown. a coding lesson from mark zuckerberg. his video is one of many for students interested in the coding.
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an initiative that wants an hour of your time at this week. advertisers can follow you around the web, now apple is using technology to follow you around the store. jony ive is trying to make apple one of the most innovative brands. meet the man doing the same for sneakers. nike's catch up with guru. to the lead. the biggest names are speaking with the united states urging american children to learn to code. it comes as a critical time as u.s. students according to a new rank has american students ranked 21st in science and 26th in math. an hour of code initiative asked people to spend an hour coding. it kicks off computer science education week. it is sponsored by code.org. here is president obama. >> learning these skills are not only important for your future
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but for our country's future. if you want america to stay on the cutting edge, we need young americans to master the tools and technology that will change how you do just about everything. >> they are giving coding tips from entrepreneurs including this guy, mark zuckerberg. >> if i wanted to wish everybody on facebook a happy birthday by sending an e-mail, it might take more than a century to write out all the e-mails. with a few lines of code, i can have a system to send an e-mail to everybody on facebook. that is why they are valuable. >> joining us from san francisco is the cofounder of code.org. ali partovi. besides that from mark zuckerberg, what is the point of this? >> it is great to be here. you mentioned earlier that we are lagging in math and science.
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at least every school in america does teach math and teach science. only one in 10 schools teach computer science. ask yourself, if the point of education is to prepare kids for life and the 21st century tom a shouldn't we teach kids some computer science?century, shouldn't we teach kids some computer science? it is not being taught at our schools. we want to make it available to everybody. to prepare kids everywhere for the lives they will be living in the 21st century. >> is coding a foundational skill or vocational? will the lessons learned today by kids coding be applicable when it is different five or 20 years from now? >> i am glad you asked this. first of all, the word code is a final word we've chosen to name
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our organization. we are not talking about coding but computer science. computer science is a foundational skill. it is just as relevant to know how to dissect a frog as to dissect an app. maybe one out of the 20 kids goal is to work as a software engineer. everybody should know the basics of how the internet works and how logical works and planning. computer science teaches you how to break a large problem down to smaller parts. it teaches him not to think through action and consequence. that's something that every child should learn to do. if you want to grow up and become a lawyer or accountant or dentist or even the president, you should have a basic foundational understanding of computer science. it would be more valuable to your life today and then some the other things we are teaching. >> i am worried about children who want to be accountants or dentists.
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i was on the playground with my little kid and a heard a boy say, as i was walked around with javascript for dummies, he was berating another kid. this was another high-performing school. it really may be wonder, what is the age at which computer science is more relevant or at least relevant as basic math? >> recent studies show that kids can embrace the basic components before they can learn to read or write. >> really? >> it is like learning a language. english is a really complicated language when it comes to different spelling. computer science have a small vocabulary and very straightforward logical syntax without any weirder rules. it is fairly easy for kids to learn compared to reading and writing which is comparatively
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more difficult. like anything else, you do not start by being shakespeare but with the abcs and uniform words words and sentences. you can stop there or go on to become the next shakespeare. the very basics, that is something that everybody can benefit from. kids can learn as early as kindergarten. >> who is leading in this? all the stats where the united states is in the 20's. which countries are leading and why? >> china, computer science is mandatory for graduation from high school. every single chinese students who graduate from high school has taken computer science. in vietnam, they are teaching it in kindergarten. in estonia, first grade. in the united states today, this
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morning, the city of chicago announced a partnership with us, computer science is going to become a core subject in every school in the city of chicago. the city of chicago is leading the country. the city of new york announced a partnership with code.org. the real question is, i live in san francisco, why is it san francisco, the bay area not leading the country, when it is a place where all the technology is created? how come our schools do not have computer science? why is it that only one or two cities? >> fascinating things. interesting to see chicago. you learn to vote early and code early. ali, thank you. heading to the apple store? technology could be tracking you.
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your public concierge on your iphone. that story next. ♪
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>> welcome back. apple is using a new location technology to track a shopper's location inside of its retail stores known as ibeacon. they get information about apple products as they walk through the store. jon erlichman. is this creepy or cool or both? >> it could be both. they are all about the user experience. they hope to boost it. more on the ibeacon story. let's start simple.
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explain how ibeacon would work. if you're wandering through the store, what might happen? >> ibeacon was something they introduced on ios seven but did not talk about. the iphone has always had the capability of knowing where you are. they added something to the core location function which allows it to tell you when you are near a beacon. it is a little device that uses something like bluetooth low technology like for headphones to tell you are near the thing. a store could tell you are in the store or put it all in aisle or rack. >> some people said smart idea, good way to boost sales. cory highlighted the creepy factor. could it be both?
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>> very much so. tension.lways the providing a better in-store experience versus getting people concerned. if you went into a store and the salesperson greeted you by name and knew something about your buying habits, you would think that is good customer service. if you walk into a store and somebody you do not know knows your name, that may make you feel uncomfortable. they may be telling you the same thing. that is what the stores are trying to do. they're competing with online. online can tell as you go through a website on what you looked at, what you were interested in, and your browsing history. you think the brick and mortar stores and they are trying to replicate by bringing more knowledge.
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yeah, it depends on how it is done. it could be creepy. >> the thing with competition. assuming apple and other retailers roll out something similar that would be matched with android devices, who do you think it a position to generate more sales given the size of the android world? >> one thing is what apple did is rollout a technology which is a locating technology. it is called ibeacon. they make it available to app developers to build into applications. the announcement is and they were doing and the apple store. any application developer could do or whether for macy's or a train station or what ever. apple has a big footprint and a great market to do that. there is rumor that android will be able to use ibeacon as well. they may not be competitive. google has their own thoughts and programs. the indoor location is really hotly contested market. there's a lot of technology out there. the winner is not always the biggest technology.
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>> if it is successful, does it mean apple will spend less money on traditional forms of advertising, print advertising? >> apple has plenty of money to spend on whatever form of advertisements. i don't know if they will drop anything. their initial introduction into the apple stores is to show other retailers that apple is eating their own a dog food. maybe provide a best of example. the real money and real utility is it becomes a real hook for application developers to build into their products and make it more interesting. >> we have to leave it there. appreciate your insight. marc prioleau. back over to you. >> thank you for bringing into the creepy aspect. tomorrow, bloomberg television is going into ups.
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the biggest day of the year for the package delivery company. only carol massar could make a brown outfit look hot. there she is. doing the deliveries. she will be at world corp. that is the $1 billion hub in louisville, kentucky. she is going to have that story with the ceo and have the algorithm that will save the company $50 million. the remake of "top gun" up next. ♪
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>> this is "bloomberg west." you maybe ask yourself why twitter shares rallied? maybe you did not notice. maybe new hope over tools that will allow advertisers launch individual ads. who knows, it could bring in more revenue. a handful of companies working on it. adam joins us today from san francisco. this seems like it is the holy grail. twitter knows who you are and gives an ad relevant to you. is that the gist? >> providing more targeted ads for better performing ads and more revenue for twitter. they are willing to pay more. >> i've been hearing about this idea since tim was the executive at yahoo!. what makes this any different?
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>> a couple of things. the unique aspect of twitter. first of all, twitter is inherently a cross device product. one of the challenges that advertisers are facing and how to reach this increasingly distributed consumer. how to resume on mobile devices. 76% of users access twitter via mobile devices. that the targeted ad one step further and we can identify a user's browsing. not only does it provide a really compelling adding unit but solves the cross device problem which is such a challenge. >> why is this such a challenge? >> as the user moves across devices, there is no way to identify who that person is in a
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universal way. through the twitter account id, we can say we know who the person is when they go to the twitter website or mobile phone. it creates that twitter user id that acts as an identifier. >> it seems on a certain level, you could not have asked stash advertisements -- advertisements so tight. the revenue from selling the product would not be worth the price of the ad. you can find similar users, not individuals. >> yeah, a bit of both. it depends on the economics of serving the impression our and
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that is something we find and we hope our customers do on a daily basis to make sure they spend and the amount they bid to a great roi, serving to specific users. a very proven method to generate great roi when you know somebody has demonstrated intent and even if you are a b2b brand that has a large ticket item for it can work in either case. how much you are bidding and how much you are spending per user. anybody who was selling anything online is going to want to follow-up with people who demonstrate intent and show intent of navigating. >> in my experience, let's say i have bought a $300 pair of shoes. i am not going to buy another pair of shoes every week. it is something that changes that experience? >> that is happening. that is poor execution on the campaign side.
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with this tool, you should be able to be aware that a person expressed interest in that pair of shoes and that person has purchased and adjust the campaign accordingly. you may not want to stop communicating with that person forever, but your message might want to change. you may want to move on to shoelaces or something else that might be complementary or reach out when a new line comes out. >> our partnership with planet forward. more deliveries, more fuel wasting delivery vans. trying to make the holiday season a little greener with an innovation. frank sesno has more. >> this may be the future of
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delivery technology, but now it is trucks and vans. far from efficient, they only get 12 miles to the gallon. assuming 20% less fuel and increasing mileage by retrofitting old cargo vans and turning them into electric hybrids. they uploaded idea to plan forward. -- planet forward. >> we added an electric motor to the rear which acts as a generator and slows the vehicle down. and in the process, it is not in the rear. >> and the electricity powers the motor. it did not have to work at hard to accelerate. lessuel and less emissions. it cost about $8,000 for retrofitting. they could save 2500 per vehicle a year. the cofounder helped started while finishing his grad degree in m.i.t.
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his third start up in the green sector. third time is the charm. he partnered with original outfitters to expand to a few hundred installations or year. small, but growing. >> we're able to convert chevy and ford vans. this is a platform which can go on many types and makes and models. we see it as a race to get on this many commercial vehicles as possible as soon as possible. >> driving down fuel consumption. moving the plant forward. -- planet forward. >> frank sesno joins me. i thought you would have a story about santa's sleigh. >> it is hybrid. what makes it different if they can put these packs on older vehicles and they want to do it on a lot more. they will announce another major deal with a corporation in a couple of weeks. it looks like they are on the
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move. >> you have not walked behind a lot of reindeer. we are talking about surveillance and the cost of business. ♪
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>> you are watching "bloomberg west" where we focus on technology and the future of business. i'm cory johnson in for emily chang. we are in new york. mobile payments company square has built a new card reader. they assured us it has improved accuracy. more compatible with more smart phones and tablets. they said it would be available in a 30,000 stores. online dating site zoosk hopes to get plenty of love from investors. they have picked bank of america to lead the ipo.
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they gained users by tying itself to facebook. it has 40 million active and presumably less lonely numbers. texas instruments, one the most pervasive companies, said that the general slowdown in technology spending is not hurting ti and they have forecasted sales of $40 million for the fourth quarter. the first quarter of the last 11 that ti sales were not shrinking thanks to improving sales and industrial devices. some the nations top tech companies are urging the white house and congress to reform surveillance laws. google and yahoo! and apple have joined forces. it shows the government has gained access to some of the secret servers. in an open letter, they called for the white house and congress to reform surveillance laws writing "we urge the u.s. to take the lead and make reform to ensure that surveillance efforts are restricted by law in
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proportion to the risk and transparent to subject of oversight." earlier we spoke to michelle richardson. a legislative counsel where she focuses on cybersecurity and government transparency. emily started by asking the letter was more of a political statement said the companies have cooperated in the past. >> what may have prompted the new movement is the recent revelations in the last month is they are not serving the companies with court orders, but they are hacking into their systems overseas where our laws do not apply. it may have pushed him over the edge to get involved. >> the people who run the companies are powerful people -- mark zuckerberg, larry page. google accounts for a large part of the united states economy. how is the government likely to respond?
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>> this has adds a whole new voice to the privacy debate. privacy advocates and members have taken a principled stand. we have the companies weighing in. congress does listen. the president is expecting a report. early next year, we will see action on it. >> president obama said he is to get the nsa to impose self- restraint. let's take a listen. >> i will be proposing some self-restraint on the nsa and to initiate some reform to give people more confidence. i wanted everybody to be clear the people at the nsa generally are looking out for the safety
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of the american people and not interested in reading your e- mails and not interested in reading your text messages. >> president obama speaking on "hardball." what kind of reforms do you imagine the president is talking about? >> the way he phrases it as self-restraint will not be enough. the nsa internally has privacy rules that it violates on a regular basis. it cannot be trusted to police itself. that is not how our democracy works. the most important thing and that we hope the white house and congress will endorse is changing the statutes and rules that they cannot collect information on everyday americans not suspected of doing anything wrong. >> this what -- if you would say. how would the government and nsa protect us if everything is transparent? >> nobody is calling them to name terrorist targets or explain who they are spying on, we are asking that they explain
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the basic parameters. the legal underpinnings. in the united states, we have a secret court making secret law. there's a lot of information with the main public that is not going to tip off the bad guys but allow us to have an informed debate since 9/11. >> yahoo!, twitter, google said they will beef up security. what else can the companies do? >> we would like to see the fight back against court orders. we would like to see them get involved in the legislative debate. that is what's so important about today's release. and they are endorsing an idea that the government should not be scooping up all of the information. working with them to take them to the next step and try to pass legislation that will rein in other agencies.
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>> that was emily chang. this is "bloomberg west" and i am cory johnson. we are going to be looking at exciting new stuff including designs from nike that is changing the way that sneakers work in the future. we will be back when "bloomberg west" continues. ♪
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>> a payment startup, crinkle, that a stanford student created, said they will lay off half of their workforce. it will better position their executive team, they say. basketball star kobe bryant unveiled a latest line of sneakers. the man behind the design takes a similar approach to jony ive.
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technological innovation from the ground up. >> and there you go. we talk about the design of tech devices. technological innovation these days are help -- happening from the ground up including basketball shoes. kobe incorporates marketing. i caught up with the creative director and i started by asking him about the design similarities between shoes and tech gadgets. >> i think design in general, there's a natural design process that you go through and principles that transcend any discipline or type of product you may be working on. i think with and footwear, a really interesting time that technology is changing and involving as so many ways.
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in term of a science perspective of how we can gather more information and data and science from the athlete. that is the upfront side. on the backside, and terms of the way we can manage -- manufacture products. it opens up a whole new world of possibilities as you mentioned designing to the pixel level. it is really an interesting time in a design. that is true for all of design. certainly true for footwear or athletic design. >> people are starting this and what 3-d printing is all about. since you're working with athletes who probably have a vision but it would be a whole
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host of shoes, elaborate on that. how quickly can you take a concept and come up with a prototype today versus 5, 6 years ago? >> dramatically faster. through manufacturing processes and prototyping processes, we can turn samples of prototypes in some cases 1-3 days where it would take easily 1-3 weeks prior. the process would enable the prototype. when you design - one of the unique things about designing footwear or apparel, it goes on the body. the body is a complex and constantly in motion. a complex thing to design for. the more than we can prototype and learn from prototypes, the better. as you mentioned, technology is allowing us to iterate that much better. >> jony ive at apple likes to
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talk about simplicity. do you live by that? >> i believe in simplicity. i believe there is a purpose to nature and the natural systems. it is complex. it is very simple. that is something we talk about at nike quite often. taking the complex and making it simple. complex simplicity if you will. >> what about the fact you have a lot of big-name athletes you are working with? they all want to come forward with their own ideas. how'd do take each of those unique flavors and come up with all of these different shoes? >> it is working with those different athletes. we always listen. it is our mantra. listen to the voice of the athlete. we take that to heart.
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whether it is kobe bryant or any other athlete. fundamentally listen to the athlete, the voice of the athlete and that helps us to take it to new places. also from a style standpoint. >> are the kobe bryant's you could share with us? you're always thinking about them. >> oh, man, so many. one of the many great things about kobe if he wants to push the design innovation from a functional and aesthetic standpoint. every time we sit down to meet, it is like ok, what do we do next? i am thinking this or feeling this. how can we make this better? how can we change the game? that is constant with him. >> that was eric avar. kobe wanted to go back to the hightop. he wanted to have the same flexibility like the low top.
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to keep them happy. >> keeping kobe happy. all for it. quick clarification. ibeacon does not track customers. it enables that setting. highflying "top gun" is coming back to movie screens which jerry bruckheimer was part of the original and will be back. that is after the break. ♪
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>> oh, my god. "top gun" that was a scene. that starred tom cruise.
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paramount announced it will make another with superproducer jerry bruckheimer. no word if it is a sequel. no word if it will start tom cruise. it could be jon erlichman for all we know. what did it win an oscar for? i had to fact check. >> you are putting me on the spot. "take my breath away." the song by berlin. that was the best winning oscar song in 1986. bad music. cory and i will perform on a future edition of "bloomberg west." today we give you the details. there's a corporate story. the ceo was at an event laying the groundwork for what the strategy will be going forward. paramount is owned by viacom.
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they would like to focus on franchises. whether that is "mission impossible" or "transformers." now that bruckheimer is back, you can bet on franchises like "beverly hills cop." he made a name for himself with some of these films. he has gotten a three-year deal with the studio, a way he goes. >> at some level, some guys are saying jerry bruckheimer means they are focusing on a few producers who gave them and hits a long time ago and not recently. >> you are right into the sense of the studios want to make a big-budget films but they do not want to take significant risks.
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how do you minimize? go to great performers who have shown they can do it over the years whether a bruckheimer or joe ross. bruckheimer was producing films for disney. there's a younger generation. behind films like "mission impossible," larry ellison providing a lot of capital to make them possible. the generational gap between producers right now and that seems to be some of the flavoring at paramount. >> interesting stuff. embarrassing fact. i have never seen "top gun" and i may not. >> we will watch it together. >> nfl fans may have seen the commercials of clay matthews and wondered what it has to do with text messages. the company behind it is
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partnering with nfl to bring coupons and customize content delivery to fans. as they do this with stars and the neighbors on their phones, how does it work and how brands on their phones, how does it work and how effective can they be? the ceo, joe gillespie. explain how it works. >> we are providers. you call any brand, * nfl. a simple phone call, we can deliver any mobile experience for 290 million consumers. >> you already lost me. what is mobile experience? >> anything from a coupon to a video to a landing page to an out. -- app.
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the nfl, when you call, drew brees answer the phone. it navigates you to the landing page. one click you are downloading the nfl app. >> that is cool. you actually have drew brees manning a call center or is it recorded? >> is recorded. >> he looked great yesterday. it is interesting the notion of fans getting closer to things they love. the whole notion of wearing a drew brees jersey says something about the connection of people make. is it working in mobile? >> it is. it is a phone call and there's a voice. brands love taking celebrities as a part of the user experience. the bigger issue is that we are solving for it on my activation. in a simple way.
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everybody knows how to make a phone call. nothing to download or scan. we are managing the most disturbing out in the world was the dial pad. app in the world was the dial pad. you can call * followed by any brand. it is a very powerful and large go to market distribution. >> it sounds like a platform like whether you are creating a whole new way for the brand to go straight to the consumer. they are using and between like a billboard or old-fashioned technology like twitter. >> correct. i don't know if twitter is so old-fashioned. we work there as well. we are about activation. a lot of events especially on tv and radio. we have the cbs local radio. sportscenter. last week, the downloaded the mobile app. what do brands love about us is it is an opportunity for them to engage via the other remote control that consumers always have in their possession which
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is a mobile phone. >> really interesting using the different infrastructure. what is infrastructure behind it? >> great question. we are a platform. >> thank you. >> you are welcome. our ip is the fs7. it routes to our platform. we recognize four keys. the characters, the phone number, the make and model, and the location data. we have harvested all of the ids. put another way, if somebody calls from boston, i can send them a boston cream pie. >> really interesting stuff.
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bottom line, apple technology we talked about does not track location. you have a cool new app. joe, thank you very much. bwest byte -- one number that tells a whole lot. jon, what do you got? >> 1.7 billion. services for netflix and hulu grows, researchers said 1.7 billion devices capable of accessing content are said to ship by the end of the year. a 20% increase over last year. for smartphones to gaming consoles and apple tv devices. no sport in there. do not forget sports. quite the trend. >> that is really interesting. a huge number. we will be watching that a lot more on "bloomberg west." more tomorrow.
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you can find the latest headlines at bloomberg.com. ♪
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>> live from new york, welcome to the late edition of bloomberg west." yes, i'm cory johnson in for emily chang. rundownts trade to the a coding lesson from mark how about a coding lesson from mark zuckerberg? his video is one of many for students interested in the encoding. an initiative that wants an hour of your time at this week.

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