tv Bloomberg West Bloomberg April 5, 2016 6:00pm-7:01pm EDT
mexico's and it needs to ratify the change. this comes as donald trump has made a border wall with mexico a cornerstone of his policy. the prime minister of iceland resigned. country rejected attempts to dissolve the government and hold a new election. thousands of icelanders protested, demanding the prime minister step down after allegations of his offshore tax affairs. a republican senator says she's more convinced than ever that there should be hearing on president obama's supreme court nominee. susan collins met with merrick garland on capitol hill for more than an hour. she is one of two gop senators to call for hearings, but senate majority leader, mitch mcconnell thomas of the rondae no hearings or votes. ted cruz leading donald trump in today's wisconsin primary. he got a big boost when he was endorsed by the state governor scott walker.
bernie sanders has a lead over hillary clinton. ,lobal news 24 hours a day powered by our 2400 journalists and more than 150 news bureaus around the world. "bloomberg west" is next. ♪ emily: i'm emily chang and this is "bloomberg west." the details behind twitter's latest play for online programming. could home advisor be the next tech unicorn question mark we talked to the ceo about plans to scale up. and bono's private equity firm is winding down. first, to our lead.
strategic -- twitter making a strategic push into online programming. they will stream 10 thursday night football games to the public for free, simultaneous to their broadcast on tv networks and the nfl cable channel. the winning that is said to be in the neighborhood of $10 million competing offers from yahoo! come amazon and facebook. joining me to discuss it is the seat the oh of revolt media. studio is our reporter who broke the story. you broke this story because of another story you broke about facebook backing out of its bid. what happened here? sarah: scott on our 4 -- on our sports team has been a good reporter on this. when facebook backed out of the bidding, and made it clear to twitter that something was up
for grabs. everything started to accelerate from there. is something that is good for the nfl and good for twitter. the nfl has gotten paid $17 million for a single game in the somethingthey wanted that could reach consumers on ae mobile and was more of second screen alternative as opposed to something that was just like tv. nbc and cbs are paying $450 million year to air thursday night football games. given the small price tag, who wins and who loses? guest: the fans win, the nfl wins. business oft the the nfl, it is purely green.
through theooking the rearviewot mirror. they are taking chances and being entrepreneurial. if you look at the 50th the nfl, ourf attention span is perfect for this little device. i think it is a great addition to the nfl playbook. make of thedo you economics here? is this a win for twitter? fort: it is a great win twitter. andy is right, allows them to get into the game with one of the most powerful broadcasting entities that exists today. the power of tremendous networks and for them to have that opportunity, it really makes it work. more importantly, the nfl is being smart because they are helping to price the value of what these are. this is a new area they are going into and instead of trying
to go for the highest price now, they are going to see how it works for twitter and twitter needs to have some wins. they are going to put a lot of attention into this to make sure it works as well. yahoo! stream to game last year that did not air on the major networks and paid twice as much. yahoo! said 15 million people watched that game online. -- others say the experience was a bit buggy. was that a success? guest: the nfl has a challenge in terms of the world market. even baseball in asia and central and south america, they have that expansion. what the nfl is doing is trying to get to the millennial fan, trying to make sure they don't lose the next fan base in the united states. the money doesn't matter now.
the fact that this was a short term deal and they have all her partner signing up on this is a new wave. they look at teamwork and this is an option that shows teamwork, agility and nimbleness and that is important in our society today. it take to would make this a long-term deal? are they experimenting to move on to bigger partners to come or could you see twitter being a partner for the long haul? guest: twitter is a long time -- is a long-term partner right now. there's a lot of discussion about what's happening in the nfl. being able to package the games lets them go deeper. what they are doing is helping inestablish another voice taking the conversation that goes on during the game and making it part of the
experience. it is an excellent move. they look at halftime, they go in and make their changes and come out. this is all about how we can deal in today's world, which is changing by the nanosecond and the nfl is ahead of it. users willmany new this ad eschew mark our colleague says will not add any. sarah: one thing to remember about how this is structured according to a source at twitter is that this is going to be a player with tweets running alongside it. so driving traffic act to twitter or back to other websites emily:. so this is like the nfl twitter account? sarah: people will be able to tweet it out and share it. you will be able to find the being sent the tweet
out alongside. twitter has been doing a lot of duration with moments and this is going to be driving people into twitter. whether they will make accounts, i don't know. emily: we will watch how it plays out. thank you very muc thank you all. staying with twitter, the company announcing a major change to its parental policy. starting next month, the will offerng company a gender-neutral lead -- leave. they are following other players like betsy and facebook who offers similar benefits to employees. investors forh
emily: local stocks tumbling, falling the most since february. i'd like to bring in ramy inocencio. how did they do? : the s&p 500 down by as much as 1%. this was over a nude pessimism from u.s. growth as well as mobile growth today. for the past two days, we've seen the biggest all inequities and february 9. the biggest one is apple, down by 1.2%.
in thethe biggest fall past six weeks and getting a knock on effect on the news coming from the department of treasury about those in versions we have been talking about all day. one analyst said the rule could hurt earnings by 13%. keeping his apple as his top pick. board in red.the microsoft down by 1.5%. facebook down by about one third. facebooke whatsapp, owns that. it started its end-to-end encryption and you probably saw a pop-up. that was down by aboua quarter of a percent.
the deal is in the spotlight there but they could not hold on to that today. scienceskly, gilead was the big leader today, up by 1.5%, hitting its highest price since january. that was after a new market perform. credit squeeze upgrading the stock there. overall, a down day. you so much. i want to talk about elevation partners, the private equity bono.ofounded by three members are starting a new group, raising more than $100 million to back a tech startup equity. is alexus to discuss it webb and there's an interesting apple tie in here.
called next equity. when steve jobs left apple, he set up a computer software company with the name next. guys, the founder suggested this name as a joke and they loved it. so these guys, two people who actually worked for steve jobs our founding this new fun. what does it mean for elevation? one of the founder said they would only do one fund with outside investors. guest: it is nowhere near the scale of elevation. just over 100 million and i think it is people plus names and it's not a massive
scale thing. emily: what is the record of success that elevation? how well did on oh do? guest: mixed. they had a 12 percent return, which is good. they did well on facebook shares. it is by no means a stellar performance. disappointed -- disappointing either. they still had some strong positions in airbnb. he had an advisor in this new fun. what does that mean to you? guest: these people have a lot more money than me, and i imagine you. thanre of a dabbling thing a full on massive on -- massive fund. think he's more interested in
to come back after he flipped that first switch, he would find most energy is still being generated in much the same way he had designed, but he would also find at this moment that the energy revolution he dreamt about is actually underway. emily: the secretary of state called for more rigorous rules on how companies account for cost of fossil fuels. he said when business leaders conduct pot -- conduct cost analyses, they should factor in rebuilding from floods and death linked to air pollution. it is time for our second installment on her weeklong series for noble energy. we tackled wind power. next up, the battery market. as costs have come down, storage located to being
figure out cost while helping utility companies stabilize the grid. i sat down with the leading player, john carrington. why is there a business case for energy storage? a customer standpoint, you save on your demand charges. you can do energy efficiency yous with the lighting and lower the amount of energy used, but you will still reach a new peak each month. that is what we go after, the highest interval the utility charges the customer. we shave that completely off. when you look at the utility, we have 85% state of charge in our fleet, enabling us to participate with the utilities and stabilizing the grid. know which building to pull
from to enable the grid to be more stable. emily: your business model works where prices are high, but what about places where prices are low? john: that 15 minute peak is what you want to think about. some are very -- are fairly low but if -- if there is value to , clients could save 20% to 30%. it is a big component that they can control. we are doing it all automatically behind the scenes. the only way you could do that without energy storage is to change your operations.
and all of your customers are commercial? yes -- john: yes. the chief sustainability officers are trying to figure to a way to figure out how be a power take her, providing an energy revenue stream for their usage. the location companies are our focus. are there more states opening up? john: like a lot of are noble, there's different legislation, whether it is itc or tariffs on other products for solar. opportunities in california and new york, but many are looking at ways to pencil out effectively. the big issue for batteries as
they have an expensive. when will they be affordable? john: we've seen price come down about 85%. we are seeing it and there's a tremendous amount of every capacity installed for electric vehicles. when they installed a capacity they did, hundred dollars oil had a great capacity and put a lot of it in the market. situation withc electric vehicles and where oil is today has dramatically changed that equation. we seen a massive amount of oversupply. multipleerate in states and we will only see more inflation is more markets open. emily: how is that impacting the business? impacts the electric
vehicle side. gas is probably the better discussion. gas peaking plants are what we go after. virtualuct with these power plants, you can eliminate gas plants. is, the oldest grids are the most congested -- san francisco, los angeles, manhattan. there are a lot of buildings where we could put our systems into and you could see a gas speaker plant. emily: do they see this as a viable -- viable option? john: it is effectively to plants in washington. we are seeing more programs like that and it's the biggest of its kind.
very forward thinking by the california public utilities commission. emily: is there a scope be on the utilities? john: it is a cost avoidance for them. they can provide direction on where the constrained areas are. put our systems around the constrained area and enable more solar to be connected and more storage to be installed. that was john carrington speaking to me in san francisco. tune in to our next installment tomorrow. we will speak about the rooftop future of and why the centralized power. are watching shares in marble technology, surging the most in seven years on the the ceo and president are stepping down. both were targeted activists agitating for new leadership.
wife duo who founded the company will remain on the board. marvel let an internal investigation into the company's accounting practices which found no evidence of fraud. the changes are effective immediately. coming up, we will check in with the ceo of home advisor and how has come he will reach a billion dollars in revenue. and if you like bloomberg news, you can listen on the radio. ♪ you shouldn't have to go far
we're doing everything we can to give you the best experience possible. because we should fit into your life. not the other way around. shoshow me more like this.e. show me "previously watched." what's recommended for me. x1 makes it easy to find what you love. call or go online and switch to x1. only with xfinity. mark: san francisco is the first city in the nation to require businesses to provide fully paid parental leave. the board of supervisors voted
unanimously for six weeks of hade leave for new parents. advocates say the issue is gaining momentum across the country, much like the debate over a higher minimum wage. while a -- while meeting with g7 foreign ministers, john kerry will visit a memorial for victims of the u.s. bombing of air oshima during world war ii. he will be the most senior official from the u.s. ever to do so. the sanctions granted to iran under the nuclear deal won't mean access to the u.s. financial system according to a senior obama administration reports tehranid would be allowed to deal with u.s. banks are an accurate. thomas shannon, the undersecretary of state for political affairs testified before the senate foreign relations committee. officials in china, pakistan, and syria have been named in the so-called panama papers. president's
government is said to have created shell companies to avoid international sanctions and mentioned family members of pakistan's by mr. and the chinese prime minister has brother-in-law. from bloomberg world headquarters, i'm mark crumpton. it is just after 6:30 in new york. i'm joined by my colleague paul allen from sydney. paul: good morning. we are expecting a rather dark day today as on the nikkei in japan. only marketis the open. we will be watching data out of china today and we are expecting an encouraging read their after recent declines. even if it is a good read, there will be questions over it
sustainability. we will be looking at shares named by a regulator that will start civil proceedings accusing the bank of conspiring to fix the benchmark interest rates between 2010 and 2012. they have visited -- they have denied the allegations. it is crucially four days after the upper house election. that some of what we are watching here in asia. i'm paul allen for bloomberg television. ♪ emily: could home advisor be the next tech unicorn? the online business matches
consumers with professional seems to be pushing toward a ilion dollar valuation. shutdown -- sat down with erik schatzker. guest: we would think it is possible in the next three or five years. could be faster or slower. ofall depends on what kind investments we make and what sorts of angst we do. erik: what percentage of the market do you figure you have and how big is the market? in terms of the value of jobs? about $30are doing billion in value. around 15probably get million. for service requests, probably in the 5% to 7% range. erik: you have a $360 million , but because of
all the money you have to spend on marketing and advertising and your salesforce to support it, your margins are only 5%. shouldn't it have better margins than that? sales when you invest in and television, we know what the payback is and you will see the expansion continue. 20%.d 15% or this is really smart and will help expand the market place and i think you will see the margin expansion follow. people look at a $60 million and on tv and wonder what it's going to be this year .r the year after is on the slope or is it indefinitely? guest: there's a point where we will invest in this stable time.
spend thentinue to same sort of incremental pace, but that will flatten out and as you build up your awareness come you get that repeat usage. why television? tv advertising costs a lot of money. guest: two things -- the post housing crash, you had a be boomers who are the ones left standing. they had discretionary income and spent a lot of time watching television. i've done television for a long time and we are highly positive. it's a very powerful medium to drive. qualified homeowners understand our proposition and do it in a profitable way. erik: one of the nice things about working for every diller's
he's willing to buy things to make your business better. ifc made an offer for angie's list. was the rationale of combining the two businesses? was an interesting point in time. we have an incredible monetization engine and a lot of qualified traffic. pointwas an interesting in time and we looked at that opportunity and decided it was not a fit of them. is the rationale for such a combination valid today? flux, and wein will have to wait and see. erik: what you want are good leads to new businesses. what other kinds of platforms might generate those kinds of needs? with big are working and small alike. the have such a unique engine.
our on-demand platform is powerful. lots of folks are interested in letting us come into their ecosystem and get in front of the homeowners. you'll see some interesting announcements coming up. we have our apple tv at and our apple watch. we are doing interesting continueips where we to try to get our engine in front of homeowners that could use it. how long until home advisor is ready to be spun off the way match group was in the fourth quarter? payt: that's above my grade. mr. diller has shown an incredible ability to put things together like the match group or expedia group. what we're building is a powerful nuclear industry and we have no timetables on anything
beyond growing the business in an organic way. if barry feels like he wants to, so be it. erik: will you need more capital? guest: we will continue to invest aggressively. i think they are open and interested. i think they are interested in putting more capital in this business. emily: the home advisor ceo speaking with erik schatzker. turning to a major story happening out of iceland -- the prime minister resigning after a massive eight a leak known as the penama papers linked him to secret offshore bank accounts. the assets uncovered by this leak could be a tip of the iceberg. we have been digging into the leak and what it took to uncover
it. how big was it? cory: in terms of the leaks we have seen, this is sizable. through a lot of bloomberg stories and when you compare it to things like the sony hack attack or the ashley madison attack, the penama papers is right up there with wikileaks. exact, these numbers are but the penama papers are pretty serious. up third like dig me and i can't see it yet, but i'm dying to. particularly the european focus to have access to this data. emily: where were these files cap? cory: they have a source somehow connected to this law firm and we never actually talked to the journalist working on this thing nonprofit thata
shared it with journalists across the world. the journalists were working this from all over the world. stuffould all access the and kept it in two different piles. some stuff was secret and some 70 much deeper encryption level. double extra top secret. where was the encryption the best? cory: it was at that deepest level where the journalists could see it. here you have a law firm with some of the most sensitive financial data in the world whose encryption data was not up to snuff. the journalists had much better encryption because they did not want the law firm in pamela to aboutr there was concern
russia and vladimir putin's connection. it was an incredible story of how technology was used to hide this information better than it was hidden at the law firm, inter than these attacks illegal accounts. a fascinating story we are hearing. coming up, we look at a new type eyetechnology -- bionic technology and the researchers who hope it might bring site act to the blind. ♪
meet a macarthur genius award recipient who figured out how our retinas take images from the outside world and process them so the brain can understand. it started as a pure research project but she is building a device that could bring site to the blind. >> my macular degeneration started about eight years ago. it results in loss of central foc vision, like i'm looking directly at the camera and i cannot see the lens of all. i cannot recognize faces. hard copy any longer. of about 8 is one million americans who are partially or completely blind. the damage to her retina is irreversible. there's no biological cure for her fading vision. in recent years, bionic
technology has allowed us to make headway against some disabilities, but creating bionic vision has remained a sticky problem. able to untangle the complex relationship between the eye and the brain, at least not yet. >> people have been working on prosthetics to help blind people and the focus has been on implanting something into the retina so the patient will see a spot of light where the retina is. when people first put these into patients, it was exciting to find out the patient saw anything. but it was not that affect of and no one worried about it that much of the time because they assumed if we just have more electrodes, we will make it better and better. there was another factor that was missing and that is the
signal processing. when information comes into your eyes, it goes into your photo receptors and then goes to the output valve and send signals to the brain. the big question is what do they use to send the signal? retina out of animals i and put it on a bed electrodes. present it with all sorts of images and record the output. you can figure out the relationship the brain wants to receive. he we were doing this and rattled it. >> this decision -- the code that the eye uses to comedic
gate with the brain. code used to communicate with the brain. we have known for decades that this code exists, but dr. nuremberg is the first to have cracked it. >> i realized not only was it useful for figuring out how the rain works, but it had a huge potential for application. it has two parts. one part is a device that would take the images and. it sends the code in the form of light pulses. you shine the light on it, it causes the cell to fire. the picture you get in the
pattern of the neural code sends the images up to the brain. >> the next step is to hold human trials to prove it can actually restore vision. withnts would the injected a light sensitive gene and then be shown images in the narrow bill -- neural code. with create that contact people -- even if it doesn't work, knowing i have the code and pass it on to the next generation, someone else will be able to do it. dare go down the path of hoping there would be a cure for this disease, but it would be a miracle if i could see again. emily: she is currently seeking fda approval to start clinical
trials of the technology. hot off the heels of apple plus legal tangle with the f ei, whatsapp is ramping up privacy for its billion users. they say they have added option to every form of communication on its services. that means no one but the sender or receiver would be able to access the content come and not even employees. coming up emily talked to one ceo to make his company the amazon of genetic testing. and tomorrow, the cohead of theal m&a at the group and u.s. department of labor secretary will be on bloomberg no. ♪
passed legislation barring transgendered people from bathrooms and locker rooms that do not match the gender on their birth certificate. they planned to spend more than $3.6 million in the state by the end of 2017. biotech fever is rising stop one san francisco company saw its stock catch fire, spiking 70% as they announced they are expanding to -- into 2016. you say you want to be the amazon of genetic testing. there are other companies doing this. what distinguishes you from 23 and me? guest: there are about 4000 inherited genetic diseases eating used by the medical community. they've been very expensive and fragmented. most are never done by 23 and me. they are done by medical centers and there are thousands of
laboratories. what is different is they are focused on driving down the cost. we realized we, could dramatically drive down the cost and make it more affordable. more companies try to use the information. i.t. protection do you have? guest: the supreme court has .uled dna patents are no longer we are one of the first companies that has put down a stake in said we are committed to driving down costs. decreasing the cost and margins and providing it to a wider range of people. emily: i read an anecdote that a routebs tried to find to the cancer that he ultimately passed away from it today, that
would cost $5,000. guest: it cost a billion dollars to sequence the first genome. then to the hundreds of thousands. is to make every test available for less than a thousand dollars for everyone who needs it for medical purposes. emily: one thing that makes the company stand out is pediatric testing. explain how a baby born today and their testing might be different. practiced today to do a biochemical announcement -- analysis that might show a disease the child may have. then you have to do a comprehensive test because the current testing is very -- has a high false positive rate. costis now bringing the inn and providing support
terms of their needs. emily: a lot of the information is maybe you have a recessive gene for this and it's unlikely you would manifested or pass it down. information that valuable or is it possible to get too much? guest: there are over 4000 genetic disorders today. we're not dealing with people not get sick someday. they have symptoms with a neuromuscular disorder and now they are in a diagnostic odyssey trying to figure out what is wrong with my child and now we can give them the option to screen and or screen out any known disorder that might account for those symptoms. place inique time in the genetics field.
thank you so much for stopping by. time now to find out who is having the best day ever. today's winners -- the six astronauts on the international space station are getting a little extra space to move around. the bigelow expandable activity adule will be carried by spacex cargo capsule. it's designed to inflate in orbit. it's the first real test of the technology but, if it works, it could be used to create a space hotel. at does it for this edition of "bloomberg west." will see you tomorrow. have a great day. ♪