tv Bloomberg West Bloomberg March 19, 2015 1:00pm-2:01pm EDT
cory: live from pier three in 10 crisco, welcome to best in san francisco -- live from pier three in 10 crisco, welcome to "bloomberg west." . the greek prime minister. >> the european union needs bold initiatives that respect democracy and the treaties and leaves behind crisis and moves towards growth. cory: angela merkel about to
keep the euro intact before heading to brussels telling lawmakers of the euro fails, europe fails. this was national bank president pledging to keep interest rates low. -- the swiss national bank president. >> in the very short-term term we have to accept that inflation is below zero. we spent -- expect that inflation will be back in positive territory early 2017. cory: the swiss franc remains significantly overvalued. watch out, apple. google and intel teaming up with tackg to develop a smart watch. >> we announced a huge
partnership. silicon valley has met switzerland. google and intel will partner together in order to make the next tag watch. cory: others was swiss watchmakers are adding digital features to their watches. the website hosting company selling 22 million shares. go daddy's ipo comes three years after the company was taken private. they're hoping to get an uptick from that investment. they posted a loss last year of $142 million. the ncaa tournament kicks off in
a few minutes. eric schmidt, john chambers and tim armstrong -- kentucky was the top pick of the 23 entries. elon musk has a message for models drivers. it will be impossible for the car to run out of a charge. or impossible to do by accident. the unveiled the software update earlier today. he says tesla will have charging stations in most of the 50 states by next year. >> the charging network has grown dramatically.
cory: the new model x will hit the roads this summer. joining us from washington battery expert and the author of a terrific book about the battle and search for a better battery. also from new york, peter o'neill. i know you are bullish on the company. what was the best news for tesla? >> managing expectations when the jen three product comes out. i don't think customers have anxiety. with the potentially smaller battery, ranging site he will be a bigger issue. -- range exide he will be a bigger issue. -- range anxiety will be a
bigger issue. it will be tied to the giga factory. we will have the jen three -- generation three-car. cory: what are the technological limitations? getting this car to the masses. the average price is closer to $100,000. to sell a $30,000 car, what do they have to do that they haven't already? >> i wanted to say something first. a follow-up to what mr. o'neill said. i got a different message from what elon said in his press conference. he said that 200 mile range is a passing grade for an electric car. he criticized scorned the
question regarding gm's plans for a 200 mile car. he said if you have 200 miles that is only a passing grade and the sweet spot that tesla shoots for is 250-350 miles. i saw that as a signal that the model three is actually going to shoot for longer-range. it will try to get into the 250-350 mile range. cory: the cheaper version of the model s as a 200 mile range. the more expensive version has a range that is closer to 280, they said. >> he went on to say, even if you do have 200 miles and you get that passing grade, it has to be a real 200 miles. it cannot be that you have air-conditioning off crawling along at 40 miles an hour, that
the weather is perfect. it has to be real driving conditions. i got the impression that he was setting the bar differently from how we have been looking at that race among the carmakers for that 200 mile car in 2017. at least there is going to be the option to go further than that. cory: interesting. elon musk sets a heart bar this high bar -- sets a high bar. is that his own aspirations or the promise from a public company ceo? >> he knows exactly what he is doing. they can get the generation three to get 350 miles, i don't know where they will shoehorn those batteries in, but that would be great. this issue today they talked about was about software not really the batteries.
how to let the customer be comfortable with letting the car control the charge and planning aspects and you don't have to worry about running out of battery power. cory: to be fair, one might mark this as a warning light. it does say if you drive beyond the range of the nearest charging station -- if you don't turn around and get to a charging station immediately it's your own fault if you run out of juice. >> he is saying what -- what he said today is that range anxiety is a psychosomatic malady. it is totally mental. i'm going to give you bedside manner. i will tell you when you are sick, when you are about to be sick if you don't do something about it.
he said my cars go far enough. i can put in a 500 mile battery, but it would be dead weight in the car. you need that kind doctor. cory: do you think the competitive efforts to come up with a better battery might actually alleviate the worries of distance in a much bigger way or is that still too far off? >> this still is the essential tension in the industry. the folks like gm and the rest of the industry trying to create the super battery and thinks that's where the tire hits the road and then elon musk who thinks i will engineer my way there i will create the mental framework for people to feel calm about the owning an
cory: coming up the world's best-known security -- cyber security expert. urban engines making your commute smarter. rover the air b&b for dogs. first, here are the bloomberg top headlights. the bank of new york mellon close to settling allegations that it -- the bank will pay $700 million to settle the suits .
private lawsuits will be dealt. flying the lockheed martin fighter jet. the pentagon now expects $391 billion for a planned fleet. leaders gathering in brussels. the cease-fire in eastern ukraine is tenuous. ukraine's prime minister says they must not let down their guard. >> what we can talk about, we can talk about the role over knowing how to scale up sanctions in case russia is not eager to implement -- cory: leaders not expected to
announce any new sanctions at the brussels meeting. the most popular makers of cyber security software in the world the moscow-based firm generated $67 million in revenue in 2013. the software is loved by the best buy geek squad. the firm closed ties to the russian government. american cyber security firms have similar issues. this story is featured in bloomberg businessweek. i'm joined by one of the writers of the peace. -- writers of the piece. what did you learn? >> thanks cory. it has been an object of fascination for a lot of us-based security folks for a long time. primarily because it is a moscow-based company and the founder was once affiliated with the kgb.
what we discovered through our reporting is the ties are much deeper than that. one of the most interesting findings is there is a man the company named chief legal officer. he did not have a public file on the website. he holds a large degree of power at that company and is the point man for all requests for data from russians by agencies and other government agencies. that is not unlike what many u.s. companies have. until now, we have not had a clear picture of what that looks like at cap risky -- kapersky. there were some really revealing findings. cory: i know the company best for their reports about illicit activity going on across the web . weird reports that suggest the nsa but always stopped just
short of those three important letters. what are the company's -- what is the company's main business line? >> the antivirus software you see on the shelves of best buy. they sell antivirus software. it is important that people buy it. the reports are pr for the company. it serves two purposes. one of the reasons we decided to the story was the lab came out with this report about a hacking group called the equation group. believed to be the nsa. high level sophisticated spying on pakistan, russia, iran and other places. one of the reasons they are able to put out such reports as they are places where u.s. companies are not but there is a tendency
at the company to focus on those threats at the expense of russian based hacking attacks u.s. companies to focus on. there is a cyber isolationism occurring within the industry. if you are a russian based company, you will focus on us-based tax. -- based hacks. cory: a fascinating story and fascinating business and we will have more soon. thank you for coming on the show. the ceo will be on in the next block. stay with us on "bloomberg west ." ♪
cory: this is "bloomberg west." eugene kaspersky -- his computer was infected by a virus. some former kgb officer decided to launch what would become the most profitable security company is. it is based in moscow. they now operate in 200 countries, protecting 400 million users around the world. how has he seen criminal activity and the internet change over time? >> not the same as 15 years ago because of cyber threats, they are different. there is a fast evolution of the cyber threats. couple years ago, there were cyber vandals. kids, students. then the cyber criminals came.
they were just individuals. then the cyber criminal groups became organized, professional. then we were facing the espionage campaigns, probably state-sponsored. now, it is even deeper. traditional crime is coming to the cyberspace. they employ software engineers to support their traditional crime. we are expecting a tax -- attacks on infrastructure. it's a very interesting business, but not easy. it is a cool place to be in. cory: when you say traditional crime, what do you mean? eugene: petrol stations, coal mines transportation -- for
example, they hacked the seaport. thise containers are coming by ship. they know which containers. they track so they can unload containers. or they hacked the petrol stations to steal petrol or they hacked the coal mine to steal coal. the coal is loaded onto trains. the company was trading in stolen coal. cory: you've been operating in the u.s. for 10 years. do you see this happening in the u.s. as well?
where is it happening the most? >> i have not heard any reports of the traditional crime in the united states but it sure it is here as well. it does not have borders. the bad guys in the cyberspace speak many languages. what's going on in the rest of the world is in the united states as well. cory: why are there so many hackers in russia? >> russia is very rich with software engineers. russian trained engineers are the best. condoleezza rice once told me that. the other side of the coin,
russian cyber criminals are the best as well. i'm sorry. cory: i won't blame you. i wonder what it's like running you are very important -- your very important anti-hacking organization in a country full of hackers. >> we are a global company. we have a strong presence in many nations. being in the nation'ss, we benefit from that because we see the attacks before our competitors see that. we are first to find, analyze and report the new types of attacks. cory: eugene kaspersky, the ceo of kaspersky labs. how about a nap thinking -- and have that can transform your daily commute -- an app that can
cory: you are watching "bloomberg west." i'm cory johnson. let's check on the top headlines. oil resumes its plunge, racing games from yesterday as commodity traders focus on the supply glut. the u.s. dollar strengthening again today. here is morgan stanley chief u.s. economist ellen zentner on when rates may rise. >> they needed to see a turn upward in core prices first before they will raise rates. it is the base versus groups.
those who have faith on their outlook and will go on that and those who want to see proof in the data. it's all about core prices. cory: janet yellen says before raising rates, the fed wants to make sure the labor market is strong and inflation is approaching a 2% target. changing of the guard in new york city -- the yellow cabs are now outnumbered by uber. there are 13,000 taxis. now 14,000 uber cars. phillips is planning an ipo for its lighting unit, allowing the dutch company to focus on consumer health care. there are the world's biggest maker of bolts. -- they are the world's biggest maker of allbulbs.
yahoo! china cutting jobs. there have been some offices used as research and development centers. or a semi or pressure to cut costs at the company. -- marissa mayer under pressure to cut costs at the company. the service for amazon prime members debuted in december in certain parts of manhattan. to our delivery is free -- to our delivery is free. -- two our delivery is free. what about traffic? a new apps as it can transform your daily commute. urban engines analyzes data from trains buses, tollways to improve traffic and work with city governments across the world. then build an app for consumers to help them navigate rush hour. the ceo and cofounder, paula,
great to see you. this is a fascinating use of big data. >> we look at buses, cars, trains and see where people are. we figure out how many people -- cory: this is impossible data together. you are gathering data from people and their phones. >> and the smart cars they used to travel. cory: smart cars. you are in singapore, brazil. >> and washington, d.c. cory: with the smartcards, you can see if a bus slows down. if i'm driving a carpooling, does that mean i'm affecting the traffic flow of all the measurements being taken? >> to a certain extent, you are
but it's local. you need about -- it is an aggregate. >> the tipping point is 10%. you are gathering a ton of information -- you have to have 10% of everyone on the roads. cory: either shipped from -- >> either shift from cars to buses. people jump into a bus coming at them. if you are waiting at a bus stop and no thing is coming along you will jump on that bus no matter how crowded it is. the first guy picks up and the guy behind them is less crowded. cory: is the notion that it is
less crowded -- when i'm sitting on the golden gate bridge and i suddenly see all the cars around me have a four or five seats empty you think, boy, if we were all writing together -- cities have tried different things to get big corporations to shipped their days later or earlier. >> there are three things we can all do. to change our model travel -- motor travel change the time you travel -- the other way is to do ride sharing. many people work at the same place that live relatively close to each other. changing the roads on which we travel. shifting people in space, time and mode. cory: what is happening behind
the scenes here and why is this possible now and it wasn't before? >> mostly because in terms of why it is possible now the cloud is available and data can be shared and obtained and the costs are extremely cheap. the gps location of a bus it is cheap to do so. we understand where the supply is available right now. what do we actually do? we work with the transit operators worked with them on the buses, trains, taxis to understand where are the bottlenecks. cory: don't the operators know where the bottlenecks are? >> to have half-hour aggregate. free trains can come and go within 15 minutes intervals. usually at the level is the peak of the peak. it shifts during the course of
the week. cory: does it really? i know that the montgomery station will be crowded after the trading day ends. at 5:00 that is when it is crowded. that doesn't change. >> generically, that is true. the train is going the outbound direction during morning rush hour. the trains are empty because no one is going the other way. people want to flip those trains around. send every train all the way back to the starting point. our platform allows them to understand which stations you flip the trains that how can you get the capacity where the demand is most. cory: when i read that you would start offering the service to
consumers it struck me as a brilliant way to get more data on your platform. is that the goal? >> that will happen. the goal is to give information to the commuters. we give real-time information to commuters. cory: w is a life-changing app to meaze. -- waze is a life-changing app to me. >> we have three features that make it distinguished. it can work completely off-line. the app is entirely available to you on your phone. you can look at the map, look for routing directions disconnected from the network. this is useful for someone stuck on the subway systems where the connectivity is poor or if you are traveling and you don't want to pay roaming charges.
we use augmented reality to help them understand where all the buses and trains stops are relative to where you are. it is really fast in terms of routing itself. this is what the app allows you to do, to find out how to get to where you want to go. cory: thank you very much. pure cool stuff. -- very cool stuff. ♪
china mobile has been spending more to promote its 4g network. the cost of drag down yearly profits 10%. sap announced a $1.4 billion dividend two-months after cutting its -- paying almost to present. -- 2%. the head of the secret service says reports of the crashed car are overblown. the car entered the white house complex at a speed of 1-2 miles per hour before hitting a plastic barrel. it is all on surveillance video. bringing together two of the biggest rivals and enterprise tech together come inside
sales.com. another $6 million of funding -- $600 million of funding. salesforce and microsoft together on this deal. joining us to discuss this is the chairman and ceo. talk to me about this. it's like cats and dogs coming together. the sharks and the jets. >> i am a peacemaker. it is an unusual route. it was instigated by the two partners. it wasn't us trying to orchestrate this. we've been longtime partners with salesforce.com. we suggest we were considering a strategic investment and we have been a partner with microsoft and they suggested in my be interesting to consider some other strategic investors but we
would be particular if they are the right or wrong people. we have a good relationship with microsoft and they said that would be fabulous. cory: you think the deal -- ink the deal. what is the pre-money valuation there? >> well north of $1 billion. cory: not a number. you're in sales, man, come on. >> sales has a pretty good evasive tactic. our investors are really pleased. this was not a bad valuation for us. that's about valuation for us. this was about creating an ecosystem. this was about a key strategic investment aligning with the
two largest ecosystems in the south -- in this space. cory: use solve what problem that has not been solved before? >> sales have gone through a significant disruption. we are solving the challenges associated with more traditional -- companies are turn to lower costs and are applying an inside sales technique to deliver a more efficient and effective acquisition of revenue. we provided technology that delivers that. it is typically have the cost to generate revenue using inside sales. ours is a toolset that delivers that. we are doing this with big data. it is a massive crowdsourcing engine. we have 2000 clients helping each other be better. there's roughly -- as they use
the technology, we are aggregating their data and using it to learn and provide recommendations that help everybody get smarter. cory: every company using some sort of software to run their sales organization is also acting as a sensor at every point. so that you can recognize trends using big data of what real progress in a deal looks like and what a slow -- when a slowdown is imminent. >> that's right. we're looking at these historical trends, contextual data. if it was sunny in l.a. and rainy in phoenix, you should be selling in phoenix because contact rates are higher where it's raining. regional gas prices are low purchase rates are higher. if the stock market is high people have a more -- if the
suns winning game, people are buying at a higher rate in phoenix. cory: now i know why the area -- bay is booming because the warriors are winning. bottom line coming up at the top of the hour. here's a preview with mark. >> new hampshire is the site of the nation's first presidential primary and where bloomberg politics sat down with focus groups to gauge the level of support for likely presidential candidates jeff bush and hillary clinton. some of the findings may surprise you. margaret will join me to our nice -- to analyze the results and see up there are any political potholes on the road to 1600 pennsylvania avenue. cory: thank you very much. it is the airbnb for dogs.
cory: this is "bloomberg west." time for the bwest byte. the number is 25 million, how much money raised by rover. they are the airbnb for dogs. here is the ceo with some friends. >> this is ginger and henry. cory: can you read the teleprompter? are these dogs typical of your customers? >> absolutely. we have dogs of all sizes but labs and golden retrievers are always popular. cory: how does rover work? >> you type in your address and come up with a list of dog lovers in your neighborhood that
will care for your dog while you are traveling. cory: it's like finding a babysitter. what is the uptake? >> this is a market that has grown really fast. 65% of our customers are people who have otherwise never used a commercial service for dogs sitting before. there is a natural newness for people that they get over quickly. we become their primary go to service for their travel. we have quintupled year-over-year. this interface has about double. cory: you are seeing more uptake of the actual sintters. they are getting more and more work. >> absolutely. dog owners come back -- customers are becoming
increasingly more loyal. cory: in terms of cities, is it a region that you pick and fill in? what is the right number of dogs per capita? >> we have 10000 -- members in 10,000 different cities. san francisco and new york and seattle you need a lot more animal sitters. cory: where are the biggest cities? >> san francisco and new york have more dogs per square mile than anywhere else. cory: do you find -- what is the most effective marketing tool? >> mostly word-of-mouth. 92% of our customers referred someone else to rover. 30% haverford five or more. -- have referred to five or more. cory: it seems like the methods
of marketing are changing a lot because knowing someone is a dog owner is a very big thing for markets of all types. what methodology are using? >> 90% of dog owners did not use a commercial solution until they travel. think about those that offer commercial solutions. you have to figure out some combination of social media brand awareness, marketing and word-of-mouth. >> you raised $25 million. cory: well into the nine figures. >> the you want to keep the number low -- cory: do you want to keep the number low? >> we have always wanted to be measured in how we grow the business.
this will never grow the way uber would. we think it will ratchet up gradually over time. cory: what will you spend it on? >> continuing to educate the broad populace that this option exists. it is the most difficult thing to do cost-effectively. we are excited about being able to expand the customer base using money. cory: ginger and henry -- over here. thank you for coming. congratulations. we appreciate your quality time as well. get the latest headlines at bloomberg.com. more "bloomberg west" tomorrow. ♪
mark: from bloomberg headquarters in new york, this is "bottom line." to our viewers in the united states and those of you joining us from around the world welcome. we have full coverage of the stocks in stories making headlines on this thursday. first, let's get you to the top stories we are following at this hour. the islamic state group issues a statement today claiming response ability for wednesday's deadly assault on tunisia's national museum.