tv Bloomberg West Bloomberg December 17, 2015 6:00pm-7:01pm EST
that includes a $1.1 trillion bill finance and government agencies in 2016. congressional leaders hope to ship both bills to president obama tomorrow for his signature and adjourn for the year. president obama traveled to virginia to meet with officials from the national counterterrorism center. he updated the nation on the terror threat level. president obama: at this moment, our counterterrorism officials do not have any specific and credible information about an attack on the homeland. judge in the freddie gray trial met with prosecutors today for officer william porter to discuss a possible retrial. the judge declared a mistrial after jersey couldn't decide whether porter was to blame for gray's death. porter is one of six officers charged in gray's death. u.s., u.k., and france are going after islamic state money. they are asking the united
nations security council to cut off sources of funds to the terror group. finance ministers want that you won to freeze the assets of traders and middlemen who finance islamic state's illegal oil trade. n. to freeze the assets of traders and middlemen who finance the islamic state's illegal oil trade. ♪ ♪ emily: i am emily chang, and ."is is "bloomberg west coming up, apple polishes up its core management team, tim cook adding a new coo. the cross-border talent right, silicon valley looks to canada for the best and brightest in artificial intelligence. show time's secret weapon. how the cia helped make "homeland" one of the most timely and popular shows on television. apple making big management
moves today, naming jeff williams as its new chief operating officer. it's a job that hasn't been filled since tim cook left the position to become ceo four years ago. williams has worked at apple for 17 years and supervise the launch of the apple watch. as far as today's executive shuffle, johnny sergio was promoted to senior vice president for hardware technology. phil shiller will take on andership of the app store, tour myra and will join apple as vice president of marketing communications. me now to discuss, bloomberg's head of global technology, brad stone, and with us in new york, daniel ive. brad, you interviewed jeff williams last year. who is he? calls him timy cook's tim cook. that is a huge compliment. he is the guy at apple getting things done. he has historically been in control of the supply chain.
a great illustration of what he does occurred last year. the apple watch project existed inside johnny ive's studio for years. in 2013, tim put jeff williams in charge of the watch project, and it became a reality. emily: i pulled a quote from use -- your story where you say "he's an uncanny cook clone." from dukeave mba's university and spent early years of their careers at ibm. daniel, what do you make of this promotion of jeff williams? i know tim cook said today he had already been doing this job for years, but do you find anything interesting about the timing? daniel: i think the timing is interesting. apple definitely has some headwinds. we've seen it with some of the success softness. they really need to fill this role, and cook needs to have his
right-hand man. they are going into a pivotal 2016. i call it make or break from a growth perspective. ultimately, it does free up some of the other management teams to look outside to m&a and other projects. i think apple and cook for the first time in a while have their back against the wall. that is why the timing is not coincidental as we go into 2016. emily: do you think it is make or break? is apple's back up against the wall? brad: certainly, like all companies, they have their challenges. in the key smartphone category, they are running up against the law of large numbers. the phones tend to be incremental. so the an iphone 7 year, market will be expecting but more significant, than that, we are seeing two years into it, tim cook putting his mark on this management team.
he's made other changes, scout for cell leaving apple. some other small moves. this is a continuation of tim cook fully putting his imprint across the organization. emily: whenever you name a number two, talks of succession happen. do you think this is tim cook's succession plan? daniel: i think there are some potential heirs. right now, they definitely have a lot of wood to chop just in terms of getting growth on iphone 6s. it's the iphone 7 year. they need to expand, whether it is streaming, wearables, acquisition into enterprise. have now, they definitely a bit of an uphill battle come and you can see it's a little bit of a prove-me stock. that is why they are bulking up the management team. this is strategic from a timing perspective, but also in terms .f product strategy
i think ultimately they fit like a glove in terms of who is filling the roles, but now it is, we need to see results, see products, and potentially mna. investors are a bit frustrated at apple, and you see that reflected in the stock. emily: the promotion of johnny is interesting. this was the guy brought into design the a chip. apple has been trying to take the design of these chips in house. what do you make of that move? brad: it's the importance of silicon to apple. the a4 which first appeared in it wasd and iphone 4, nothing particularly special or fast. now the silicon is apple's biggest competitive advantage, the fact that it owns the whole stack, and it is faster. it is allowing for new industrial designs. it is elevating synergy. he might be the most important guy at the company in terms of apple's intellectual property
and core competitive advantage the city a lot of other smartphone companies out there. vis-a-vis a lot of other smartphone companies out there. daniel: the app store is going to be at the center of the strategy now. phil shiller is going to be a eir success.nt in th i think it is something the investors like. you will see some changes over the coming year, positive changes, as the ecosystem expands and the app store becomes the underpinnings of the whole success. brad: to that point, there have been criticisms of the app store recently. the search and discovery is broken. it's hard for developers to make money. bringing phil shiller into the veteran,, giving a
senior executive direct control over it, increasing the visibility, and sending a message to the developer community that apple knows there are problems to clean up. emily: brad stone, daniel ives, thank you both for joining us. one stock we are watching, pandora. a favorable ruling on mood royalties was music to the ears of investors who sent the stock up 13%. copyrightment's royalty board said pandora and other record labels must pay -- [indiscernible] quite out of the rules. content costs continue to soar, and competition from apple music is putting pressure on its margins. coming up, a match made in heaven. two silicon valley heavyweights uber and facebook have teamed up to make booking a ride even easier. more on that deal when we return. you may not know her name, but you know her work.
emily: a story we are watching, the head of google's self driving car unit says he's disappointed by a california proposal that would put the brakes on google's research.the draft rule would require a self driving car to have a licensed driver in the car at all times. program director chris thompson
says this maintains the old status quo and fall short of allowing the technology to reach its full potential. california has more cars on the road than any other state and often ends up setting the standards for the rest of the auto industry. uber isbillion dollars, one of the biggest unicorns out there, but the company says it's not ready to go public just yet. uber's chief business officer spoke to bloomberg earlier today. >> uber is 5.5 years old. it is a very young company. we've got a long way to go. i think travis the other day said, it's like asking a ninth grader what they are going to wear to the problems -- the prom. when we are ready to go, we will go. to go just to go is somewhat of a negative side -- sign. we are motivated to drive the value of this company, and we will do it for as long as it takes. emily: we are joined by eric newcomer who covers luber for us
and alex brinker who covers ipo's. from michael, new repeating what travis has already said. eric: the idea that uber says it's not close to an ipo isn't a surprise. when you look at the valuation and the fact that the company has raised $10 billion, it's hard to not be like, what, this company is not going companies -- publix and? -- public soon? emily: alex, what are you hearing from investors? alex: public investors who haven't had a chance to get in on some of these rounds have been chomping at the bit. returns have not been great this year. any kind of upside for them, they want to get their hands on. it does seem the company is just not there. they have expansion issues. they are looking to other industry verticals like delivery. they still need to figure out their presence in china, and
they still have this overhang with whether or not drivers are going to be classified as contractors or as employees. there are still things to figure out and iron out that if they were to go public would make for a very thick risk section in the prospectus before they sell shares to investors. also spoke about china. i would like to roll the clip where he talks about just how big china is becoming in terms of becoming part of their business. : i'm really excited about china. five of uber's top biggest cities are in china now. five our top 10 in terms of the number of trips we do. beijing just got to be our number one city in the world, bigger than new york and london. emily: anything new there? eric: the thing to pay attention to is trips. uber is doing a 10 of trips in china. i think the amount of revenue is what doing in china
to look at through the question we should be looking at is, they are doing a lot of trips in china -- how much money are they doing? emily: this is a company that has raised $10 billion. alex, are they setting themselves up for a potential -- this is the most highly valued unicorn ever -- are they setting themselves up for a potential down around? alex: you have to think that the scarcity effect has played into valuations, and you also have to look at, not only are they one of the biggest unicorns, but they are bigger than 4/5 of the s&p 500 in terms of market cap. when you look forward at some of the things eric is talking about in terms of revenue, you have to think about the realistic multiples they might be able to fetch, which is how these public investors are going to look at company. we don't necessarily have the
granularity yet. they are closely held. given the ipo market now, tech ipos have not done extremely co. hot. this would be an outlier. it would be big, as the likes of alibaba was big. there might be more excitement that uber could drum up when it decides to go public, but this is one of the fears. private rounds have really raised the valuations to a level that can't be attained when public investors start to get involved. emily: i also want to talk about this deal between uber and facebook. wherebyuck this deal you can click on an address in facebook messenger, and it will call a new uber for you. it's similar to a service that wechat has. it's very widely used there in china, because that is how wechat.se it's not necessarily how messenger is being used yet. how big of a deal is it? eric: i think it's interesting,
but i agree with you that it's not on the wechat scale. wechat's super popular in china, whereas facebook messenger competes with regular text messaging in the united states. the scale for uber is a little but i think it has great potential for, i message my fans, we say, let's meet ridesand we arrange our emily:. what other partnerships does over have like this -- uber has like this? they work with google and google maps. those are some of the important ones. microsoft is a strategic investor. there are areas where uber is saying, we're such a big brand, big-name, all the companies want to partner with us. this is an early partnership with facebook. emily: i want to ask you one more question about this lawsuit. the ceo of uber was sued by a customer for price-fixing. what is going on here? eric: it's a little weird.
travis has driven a number before. he is competing with all the other drivers who drive for luber, but uber is in the process of setting the price at which all uber drivers have to accept. the lawsuit is arguing, travis is price-fixing and making the other drivers compete with him and what they are charging people. emily: does travis drive regularly? eric: i guess it doesn't surprise me that the ceo of uber is occasionally driving, but i'm not sure. 1 emily: interesting. alex, eric, thank you both. the financial force is strong with disney. the latest installment of "star wars" is shattering box office records around the world. the movie opens thursday in the united states, and fandango says pre-sales for the film have
emily: airbnb is trying to make new friends. the startup is reaching out to some of the largest u.s. apartment owners, with the aim to work out a deal that would allow tenants to rent out a unit on airbnb with the landlords plus in. bay, camden property trust, some of the companies said to be in early talks with
airbnb. an agreement could include some kind of revenue sharing, but airbnb would have to reassure owners they have a say over what happens at the properties. canada is a fast -- is fast becoming known as a leader in artificial intelligence to it it's the origin of pioneering technology found in facebook's facial recognition powers. canada may be losing its edge and then -- as an ai leader as homegrown experts the fact to silicon valley. they are getting hired by the likes of facebook and google. i want to get more insight from the vice president for product development from the canadian aluba.tartup m how did canada become such a hotbed for ai talent? >> thanks for having me. it's a great question. we have always been pioneers in computer science in canada. had three amazing
cofounders. all of them were based out of universities in canada, and they were able to do really cool pioneering research in the space that led us to where we are today. emily: basically, your technology teaches computers how to talk, is that right. -- is that right? we are technology company that uses deep learning techniques. an example of what we've done, we've built out voice search experiences on tvs, phones, cars with a lot of top brands. emily: are you seeing a brain drain from canada to silicon valley when it comes to ai talent in particular? yeah, absolutely. the crazy thing hasn't been fostering talent.
canada has been doing an amazing cultivating talent. most of the problem is retaining this talent. there is a statistic that says 350,000 canadians are based in silicon valley. those are some of the smartest canadians who have left to do their own work, leaving to google or facebook or some of their own startups. emily: we are not just seeing facebook and google hiring ai talent, but also buying ai companies. if facebook comes to you and says, here is a few hundred million dollars, would you sell? mohamed: if facebook came to us with a few hundred million dollars? it depends. a lot of the reason why we stayed in canada was to build out our experiences over here. the innovation is based over here. a lot of the canadian startups are being bought out and going to the united states. that is not something we want to do. we want to build out over here.
for example, we created and started a new office based out of montreal. emily: what do you think are the most innovative ai technologies being developed in canada right now, and what are the big themes? how will we see these things play out in ai next year? mohamed: a lot of the cool stuff that is happening right now is around advancements of using techniques like deep learning and image processing. we have seen a lot of advancements around that. in the past, we've seen a lot of advancements around images and speech recognition. next year, i think you will see a lot of things around language understanding. ai systems would be able to understand what we are saying, speak and communicate back to us, something we've never seen before. a lot of the stuff that is
happening in deep learning is the concept of self driving cars. those are areas that i think would be interesting. emily: vice president of product firmlyment for maluuba, based in canada for now. thank you for joining us. still to come, google, facebook, and apple have set up shop in israel in recent years to stay close to top-tier tech talent, but is the country's comparison to silicon valley justified? we will get into the matter with investors next. ♪
today, we will be following the bank of japan, watching it closely, given the moves we've seen. the bank of japan will be out with its interest rate decision later. we will be watching the markets to see how they respond to the bank of japan's interest rate decision. other stories we are following in the asia-pacific include the latest earnings news, and we will be following toshiba. the biggest prices in toshiba's 140-year history while giving the company an opportunity to itself, put into place reforms here. it's expected to announce layoffs, accelerating the company's overall transformation, this after revelations that management was complicit in padding profits for almost seven years. this has had an impact on the company, 40% of its value sliced away in the market as investors voice their concern.
we will be watching toshiba. this company has a storied legacy. it made the world's first left up computer and world's first dvd player -- laptop computer and world's first dvd player. this is a company we are going to continue to watch in today's session and going into next week. relevant because of the boj, and also relevant because of its business transformation process. emily: what are we expecting toshiba to do as a result of all this? zeb: job cuts are in the offing. thateported this morning the company may undertake an additional 1000 job cuts, and we have the nikkei news reporting that 7000 cuts may be in the cards, as well. toshiba is a major employer. it employs about 2000 people. it may also close one of its
research facilities in western tokyo. we will watch this closely. we have seen its competitors, panasonic, fujitsu, reform their businesses, but toshiba has been late to the game. the revelations of this profit misstatement have dragged on the stock. we will see how toshiba's management significantly -- unveils a plan to significantly move this building forward -- business forward. emily: a very important company. we will see if they overcome this. zeb eckert, that's what going on in asia. from silicon valley to the so-called silicon wadi, it is
our weeklong spotlight on israel's booming taxing. there are more than 1500 startups in the nation and 64 accelerators, and we've seen google by some of the most promising companies. is israel's description as a mini silicon valley justified? joining us, elliott gotkine who was in town, along with david julie got lily. both of you work closely with technology companies. david, i know you guys invest heavily in companies in israel. do you think it is fair calling it silicon wadi? david: sure, although most of it is on the beach. silica and beach would be better. emily: that is already taken by l.a. david: the reason we invest as an early-stage venture fund, the reason we invest in israel so quickly, it's the closest
to silicone can find valley. the entrepreneurial talent is similar. the technological prowess is the highest quality. emily: you guys run an accelerator or incubator for israel he startups in silicon valley? julie: right now, we invest in israeli entrepreneurs. 100% of our companies are israeli entrepreneurs. we believe that the country and the landscape and the ecosystem of talent is phenomenal, and we have seen a lot of similarities between what is going on in the market and in israel. we are very bullish. elliott: we've seen a tremendous number of israel he startups coming to silicon valley, and also a lot of med techs going to boston.
is there any sign of slowdown whatsoever? is it all systems go still? shuly: it's increasing. i think there are more and more israeli entrepreneurs facing the market, and they want to be where things are happening in terms of their customers, in terms of the deals that they can close here. this is where they are going to have to scale their companies, and i think there is a lot of great potential opportunities for israeli entrepreneurs to learn more of the business know-how of how to scale companies in silicon valley. i think that's an incredible opportunities. -- opportunity. emily: how many unicorns are there? david: the definition of a unicorn is a company that is private and valued over $1 billion. in our portfolio, i would say we have at least three.
what do you call them before they are $1 billion? emily: ponies. david: i hate to name names, but the three that seem they are dancing towards that value range, credit on rack, which is headquartered in the boston israel, which provides merchant acquiring on a global basis, and another one based in san francisco called fundbox, which allows small businesses to clear receivables and get financing easily and guickly through e-invoicin systems, like zero or intuit. that is a lending company. another one in payments, a company called zooz, and another one called yatpo. emily: are there any technologies that israeli
companies are better at than silicon valley companies? where do they have an edge? shuly: anything related to data. as we know -- emily: that is quite broad. shuly: i think when it comes to cyber security, data security, analytics, things that today are very much needed, but i think that everybody knows that israeli entrepreneurs come with a lot of training and background from the military, so i think we've seen a lot of talented companies coming out with computer imaging and things like that. i think that cyber security is the top. i would say that. i was an early executive in the early days of check point software, which is one of the leading firewall companies. they were the first ones with a
great ui. before, it was only for unix geeks. the israeli need further own -- for their own defense is a furnace that creates incredible entrepreneurs with specialized talent that the world seems to need more and more of every day. we are fighting nationstate wars, cyber gangs, and covert espionage. the proliferation of new platforms, mobile, cloud, ios, android, has made the need for security greater. emily: i want to turn to one in story,lar israeli tech mobilize shares bouncing back after a decline yesterday after encouraging words from elon musk. the story began with a report suggesting that mosque was wrong -- was considering replacing the israeli maker of driverless car software with a rival technology.
a hacker developed his own software in a garage. muska offered him a multimillion dollar bonus if he could produce something that would let tesla discontinue using mobileye. mosque issued this statement yesterday, the short seller citroen research called mobileye its short of the year. you've been speaking with the founders. what are they saying? elliott: unsurprisingly, they disagree with some of the claims. a quiet response from one of the cofounders of mobileye -- he said to me in an e-mail, to think that one person working in a garage is going to make an autonomous car is beyond common is the killerhis one -- what was reported is an achievement that any student of mine can do in less than six months. special about it.
it's worth noting he does have a phd. his specialty is in computer vision technology. he said one of his students could have done what george hollis did in less than six months. emily: what is your guys' take? david: in this case, it sounds like mobileye could be safe. the real key we are learning in israel and silicon valley's product cycles are shortening. you cannot rest on your laurels. that is one large corporations, samsung, google are coming to us venture capitalists and looking for more innovation. shuly: i totally agree. i think that the lack of innovation nor the need for more innovation is there among a lot of corporates. i think that is what drives them to israel. we see now all the multinational companies are there, from google to facebook to dropbox.
we are continuing to see multinational companies looking to invest and pour more money into israel and look for innovation from israel he entrepreneurs. elliott: there aren't many silicon valley companies left that haven't bought israeli companies. now chinese companies are coming. big guys like alibaba coming in and making acquisitions. is this some kind of change we might see, not only more chinese and other asian companies coming to israel, but also israel continuing to look east rather than west? david: it's an extremely interesting point. chinese,eeing not only korean investors and large companies come to partner, but also russian. it's interesting because it is part of the nonaligned, and india, as well. all of these large nations who do not want to become dependent
on the u.s. are looking to israel. emily: fascinating stuff. emily:thank you for joining us. elliott gotkine, our middle east editor. coming up later, we will continue to highlight israel's texting with a look at one start them giving the most low tech toy out there a high-tech twist. plus, it is one of the most popular shows on cable, one of my favorites. i will sit down with the executive producer of "homeland" to find out how she stays ahead of headlines. ♪
art imitates life, but sometimes, it seems like it is the other way around, life imitating art, and that is the case when it comes to the ."owtime series "homeland on monday, new york city police commissioner bill bratton referred to the show while talking about a bogus terror threat on the city's school system. think theing it, i instigator of the threat might be a "homeland" fan watching "homeland" episodes. " season fiveand finale airs this sunday. i cannot wait. joining me, the show's executive producer and producer, leslie linke. i am a huge fan. when you hear a new york official saying that a terror threat is mimicking "homeland," what do you think? islie: i can tell you it
overwhelming. it is indeed a story we are telling, and it is overwhelming because there is nothing that compares to real-life. has beene show amazingly prescient this season, especially in light of the terror attacks in paris. how do you come up with these storylines? what kind of conversations do you have. lesli: what we do every season is, we go to washington, and the creator of the show, alex stands, and the whole writing danes,myself, claire mandy patinkin, we meet with an array of intelligence experts. out of those conversations and what they think is almost their worst nightmare, that is where the season comes from. keptyear, the issues that coming up over and over again were put in and isis -- putin and isis.
just give me an example of what the cia told you was their worst nightmare, what they told you keeps you up at night, which made you say, this has to be the plot. lesli: honestly, because i'm a director, i'm not involved in the creation of the plot. that really goes to the writers, alex stanza and the entire writing staff, but it was almost a fact-finding mission to find out what all of these experts are really thinking about and concerned about. of course, one of the reasons we set the series this year in germany is that germany has the strictest privacy laws. it is a place where there are lots of hackers and journalists and artists. berlin was an ideal place to set season this year, and it was also exciting to be shooting in the city where the series is being set. emily: we do have a clip from the show this season.
i want to share it with our viewers. >> you are cia. >> i was cia. i am a private citizen now. >> a data breach in berlin. >> shut it down! is there anything so explosive or dangerous that you won't touch, that the show won't tackle? i don't think we would tackle anything that puts anyone in any danger, but we are trying to deal with some real issues and make people think. one of the things about "homeland" is it really does live in this world of ambiguity and shades of gray. nobody has a white hat on. nobody has a black hat on. everyone has their own point of view, and you have to respect
that. one of the scenes i remember shooting in the second episode is about this issue of privacy, and each of the characters in the scene were talking about completely opposing views, and yet they were absolutely correct. i think "homeland" lives in that kind of world, the shades of gray and opposing opinions, and no one being 100% right. emily: do you ever worry about giving potential terrorists ideas for potential terror attacks or life imitating art to a dangerous extent? lesli: that is a terrifying thought. hopefully no. we are telling a story, and hopefully, we are not giving anyone ideas. we are telling stories about characters. let's hope we are not doing that. emily: how do you respond to some of the accusations out onre about racial profiling the show yet though you guys are tackling some meaty issues. lesli: yes indeed.
if you put out the kind of material, you are going to get a response to it. i do think we have gotten more feedback that we do show both sides of an issue, both sides of the character. there is no way at all that we want to put out that any or person,character type of people, religious belief is bad. there are always two sides to an issue, and we try to show that. we try to show positive characters and characters that aren't. again, when you are putting out controversial and complicated material, people will have a strong opinion about it, and i think we have to be prepared for that. emily: i know that you are an incredibly powerful woman in hollywood. you've been mentoring young women for years. we heard jennifer lawrence come out and talk about not getting
equal pay. do you think that there is a level playing field in hollywood, and if not, what is to be done about it? is noti think directing an easy position for anyone, an easy job to do whether you are male or female, but i absolutely believe it should be an equal playing field. it should not be harder for women to direct than men, and unfortunately, it is not an equal playing field. if you ask me when i started directing 20 years ago, if i would've thought we would still be talking about this, i would've said, absolutely not, this will be resolved, and sadly, the statistics are the same as when i started directing. the people who are in positions to hire, we have to make a difference, because there are more complicated stories to tell, and i think it will only help storytelling to have a broader point of view. glatter, i'mlinka very excited about the season
emily: what do you get the new cross a google cardboard headset with a papere, plane? one israeli toymaker is hoping you will pay to find out. >> my name is shy goithaim. i'm the inventor of power up toys. we invented powered paper planes you can control. we use very high-tech and low-tech materials. on one hand, for theone israelie are using a standard sheet of paper. on the other hand, we have this
droneigh-tech, high-end technology. it has an onboard computer, 10 different sensors, a speaker, a microphone. it is a drone, but it's a do-it-yourself drone. airplane is a flying machine and uses the same aerodynamic principles as any aircraft. it's not just recording video. when you are taking off, you are on the airplane, and you feel as if you are a bird. you are soaring over the trees, and when you crash, you feel as if you are crushing with the real aircraft. kickstarter is a perfect platform to test the product. if it fails, you know it has failed, and you shouldn't produce it. on kickstarter, and we met our $100,000 goal within four hours.
the campaign continued to rocket and go up, and we see this as areidence that the backers feeling. more andt will grow help us introduce a new category, new product, successful flying paper drones for everybody. emily: that was the power up spv paper drone. that does it for this edition of "bloomberg west." tomorrow, do not miss my interview with blackberry ceo john chen. we will see whether or not he sees his android phone as a success. we will talk to him tomorrow morning on "bloomberg markets." ♪ you used to sleep like a champ.
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try adjusting up or down. you'll know cuz sleepiq® tells you. give the gift of amazing sleep. find our best buy rated c2 queen mattress with sleepiq. only at a sleep number store. know better sleep with sleep number. charlie: jennifer lawrence is here. she is an academy award-winning actress. she is a marvelous comment and dramatic actress. and she can illuminate struggle and chaos to cultivate inner stillness. concluded her role as aberdeen in the hunger games series and here is a look at some of her work. >> my mom is sick and she's always been a beast e.