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tv   Bloomberg West  Bloomberg  February 19, 2014 1:00pm-2:01pm EST

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>> live from pier three in san francisco, welcome to "bloomberg west." we are covering a few big stories today. tesla reports earnings after the bell. are they working on a battery factory? we will speak with ceo bloomberg mosque and asking questions.
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plus, speculation about apple buying tesla. is that completely ridiculous or is there something to it? also, google launched a growth separate from google ventures, which is focused on earlier companies with surveythis off monkey and the education company, renaissance learning. we will talk more about what their focus will be later in the hour. first to our lead story, the standoff happening in the ukraine. we have been looking at live pictures of police and protesters continuing to face off in what some say maybe the opening hours of the civil war. 25 are dead, nine police officers. paris aboutrence in the violence and how the ukraine president is handling the situation, take a listen. >> the choice is between
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he serves,the people all the people, and the choice for compromise and dialogue versus lot -- versus dialogue and mayhem. we believe the choice is clear. we are talking about the possibility of sanctions or other steps with our friends and -- in europe and elsewhere in order to try to create the environment for compromise. president obama is expected to make some comments later today, talking about the use of technology, some protesters -- others are more violent armed with clubs. the government sending text messages warning you they have been registered as part of a massive disturbance based on their location. others are using social media to communicate and organize, twitter, facebook, youtube, and
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mainstream television channels have been blocked. the ukraine is home to a burgeoning technology sector. many u.s. companies outsource a great eel of work to employees there. , ourng us by phone bloomberg news managing editor in ukraine, right now. tell us where you are and what the situation is right now. locatedloomberg offices about a mile away from independence square, where you showingthe tv picture of the burning barricades and protesters confronting the police. right where we are, it is a quiet side street but we only have to walk two or three blocks down to see the barricade. >> we are getting latebreaking headlines about the army chief being fired and taking place by
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the navy chief. tell us what is going on there? in the process of trying to figure that out ourselves. what we know about the navy is that he is from the eastern ukraine. suspect he is found more .oyal in the situation he has not really explained himself yet. >> these protests have been going on since november. do you get the feeling right now, they are reaching a climax? that this could be the opening hour of civil war? is that taking it a step too far? >> i think you're quite right. stagee reached a new within the past 24 hours. the bloodiest day in
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the ukraine history ever since the breakaway from the union more than 20 years ago, you know, some regions in the last, including the city close to poland, they declare their independence from the government and there are twitter posts from , where they have changed another regional and -- and the stage with all the deaths happening, there are signs of the law powering, giving the law ,o effectively shoot at people the situation has dramatically changed. temporarilyanada closed its embassy.
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what can you tell us about businesses? are they close right now? is everybody at home? what is the situation? in theconflict escalated late hours of the afternoon yesterday. the mayor called on people to stay home today. a lot of shops and offices seem to be closed today, for instance in the office building where we are. we seem to be the only ones working today. the metro system has been shut down here there are not a lot of people on the streets when you walk a couple of blocks away from independence square. life has not completely come to a halt, but it has definitely changed the atmosphere in the city. >> are you getting the sense these protests are spreading to the rest of the country?
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>> definitely in the western part of the country, which seems to feel a lot closer to western europe, yes, there are a lot of free parts in local cities, where people have stormed government buildings. somehave also stormed buildings at least so the -- definitely,ms in some parts of the country, the unrest has been spreading. we do not have any such reports from eastern ukraine, which seems a lot more recoil -- loyal. >> on the ground in ukraine for bloomberg news, thank you so much for the update. to sure we will come back you throughout the day. a technology center in ukraine, the fastest-growing technology
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center across europe. protesters have been organizing via social media. the government has been using technology. i want to get to dmitri, general manager at microsoft in the ukraine. a business incubator for early-stage startups. thank you for joining us today. dmitri, can you tell us what safety precautions microsoft is now?g in the country right >> good evening. first of all, i want to thank .ou when we look at the violence police,iggered by the it is important to say a lot of people have been injured and hurt.
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for our campaigning in a lot of companies in the ukraine, we closed office and moved our people to work from home. many are doing the same. continue working in a standby mode. >> just how big is the technology center in the ukraine and how is it being affected so far by the unrest? estimation of the business is still being assessed. when we talk about the business if we talk about ordinary business, it is 500 million businesses, including
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services and software and hardware. prospectusk at the in the long run, business development in the country, a lot of international concern for what will happen in the country. at the same time, a lot of people who own the business here , they try to support people who are running the business here to maintain operations in the company. the technology center, we see a lot of development still. corporate's continue to develop. angst looking into the system, we see companies looking into the systems. i.t. infrastructure to employ solutions. several other clients have offices right in the middle of the conflict and they leverage
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in clout technology for microsoft. >> dmitri, the next question is for you. seeing your part of this? how are you seeing protesters used technology and vice versa, the government using technology to further their agenda as well? >> thank you for having me on. to add to what he just said, the ukraine is an emerging economy. great technical talent. a lot of accelerators and incubators established. a lot of clever young people react to this. prominence, come to which helped to see the real picture on the ground. they've changed the whole model
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from using one camera and using many different cameras, many different points. latest -- today, a smartphone in almost every individual sand. true viewse at the and happenings taking place. this has been leveraged and used isboth sides to show what really going on here. >> dmitri, what kind of disruption, if any, have you the internet and mobile service? >> the international disruption has not been observed so far. with some of the laws they try considering, regulating freedom of internet, happily, laws have been aborted beinge internet is not
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regulated in any way right now. for several operators, it has been burned down. of internetn technologies and mobile networks is still up and running and that allows several tv stations to continue to broadcast even after they had been shut down from the tv broadcast spectrum. >> all right. the general director and i hop cofounder joining us from the ukraine. thank you both so much. we will continue to follow the protests as they unfold throughout the night. we will be back with more after this quick break.
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>> welcome back. i am emily chang. some of their investments included survey monkey, the education company, renaissance learning, 40 million dollars going to the education software company. i want to speak with a bloomberg news tech editor. why this and why now from google? >> google did a couple of these inventions last year. they had not spoken about the entity doing the investment. we knew he was leading the group came out of corporate development with google and has been running the group. this is formalizing it and talking about the money, $300 million this year from google and introducing the entity to the world. >> three different companies invested so far.
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at this stage, what kind of clues do you glean from that about the focus? >> the companies have an established business model and they know what they're doing. with theirn come in capital and a big check with strategic possibilities to help scale the business and help with marketing, basically using google's resources to make it work better. inst does this put google competition with private equity firms? >> it can. they will call it co-op addition, where they will be competing with deals but also investing together. google also has the relationship with the bp firm and google capital has that relationship. why would youy, want money from a google versus
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google can offer you all the services as a company has, and the internet company with the biggest in a world, it really touches everything you do now. if you are looking for help going international and in your business development, if there is a person in google who you know can assist you, this is great. >> thank you for bringing us the update. more after this quick break. ♪
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>> welcome back. automakers and tech companies are battling over a slice of coveted radio waves. the car company wants them to be used for new crash avoidance technology, saying it is more important and why i or web data.
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google and microsoft call is a long shot of who will win in the showdown. the senior vice president is washington.from who has the better argument? class the better argument comes down to the safety of the people. question is in designed to enable vehicles to make roads safer. moms,dual vehicles for dads, kids, and commercial vehicles. that allows for that special to be shared, if it has technical merit, it should go forward, should be considered in the context of safety. >> i understand the car makers have had these radio waves for many years already. how real is it the technology they're proposing and how are off? off? far
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>> that is a great question. it is hitting its stride. a safety -- going in southeast michigan for some years now, it has been very successful. over 3000 vehicles participating. the people do not want to give up their devices and they like the services they are getting. technology is really hitting a maturity cycle that allows it to come into vehicles of all stripes. >> how could this work? the automaker says it saves many lives as seatbelts. qwest perhaps more. the department of transportation estimated 80% of the 5 million crashes, 4 million every year, could be avoided with technology. your car becomes very chatty and sends out a message -- i am here and am going in this direction. it learns from all other vehicles on the road what the situation is. if you will start gearing on the
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right, your car will tell other vehicles it is veering to the right. if you are following that car, you will be aware of it long before that comes to your frame of vision. it is about celebrating the human wrist on time for avoiding crashes and making roadways function much better. qwest would every lawmaker have to implement this separately? would take as long as the a car for this type of technology to get into the system in any kind of mainstream way? exit we waited around for automakers to build it in and buy new cars, that you are right it would take an awfully long time for it to reach a level of effectiveness. a network effect, where the value of the service becomes a death much greater, there is a lot discussion and technical for incorporating the
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technology into everything from navigation to devices inside the vehicle. there would be a way to celebrate the adoption of the market in such a way we do not have to wait for all the new purchaseso become new for consumers out there. we can accelerate the adoption very quickly. how thell watch to see fcc comes down on this issue. the senior vice president, thank you for joining us here in your watching "bloomberg west" on bloomberg television. ♪ minutes past the hour. bloomberg television is on the markets. let's take a look at where stocks are trading. declines today after the warning about the pace of growth here in the dow is up seven points. individual stocks, the nation''s -- createeel producer
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is not dumping steel tubes. u.s. steel said it was disappointed with that decision. we will have more in 30 minutes. moore is next next. ♪
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launched its personal cloud storage service. nuven features, automatic camera backup for android, and video transcoding. spoke to the corporate vice president of microsoft os services about the launch. in the same tipping point where, in the past, you had to know about cloud services and had to get one and then bring your data to cloud service.
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we are trying to bring service right to your data. you do not have to do any work. the first 100,000 people to sign up get 100 invites for free for one year. samsung seems to be taking the first step into its own software services. it's a new version of the galaxy smart watch will not run on google's is operating system. the project is developing a software platform for devices. samsung is expected to unveil later this month. bringing its itunes festival to the united states for the first time. a free concert event will take place this march in austin, texas. londontival was held in in the yield -- years past. apple will stream all five nights of the festival live to
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apple tv. month, carl icahn proposed ebay spin off its paypal unit. take a listen to what he told us right here. reason theyno should be together at this point. it should be held by a separate management team and i think the and the would go up health of the company would be better. ebay ceos the eba -- think about this? class we look at it every year, how they will be most successful. we continue to believe the best ebay makesther, that paypal stronger by helping it grow faster, it provides more data, and if -- strong financial
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foundation that will really make paypal more successful as part of the they rather than separate. qwest there is no question they go together. i am a huge heap a user and paypal makes it more pleasant. company,ased on off they could still cooperate as closely as now. >> not integrated as tightly. mobile payments. is the most important platform shift that happened in the last decade. when mobile first started, no one would've downloaded the mobile paypal app . hundreds of people downloaded the ebay paypal app. the only way to pay was paypal. that is what allowed paypal to start $600 million of total mobile payment in 2010 and it .as grown to 27 billion
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>> ec 70% of paypal's revenue, is on the non-ebay platform and that is growing at 30%. in comparison, when you look at 15%. whyhat is roughly should investors not assume the real growth engine is paypal? >> paypal is growing more whatly but if you look at is happening in the market, payments are converging and not diverging. the payments companies get are -- are getting into commerce. it allows the payments company to get that going. mobile, the most recent phenomenon has helped having a captive -- captive market like ebay get viral.
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tesla is riding high as it's stock continues to store. earnings later today and ashley joins me here. with a look ahead. the question has always been, are they shipping enough cars. are they? >> a surprise update already saying they would shift -- model. 5900 of their that was about 6000. things are headed to the right direction. the question is if this will last the whole year. supply to meet the demand? i know that has been talk meeting the at -- have done ay hundred cars a week if lucky and then they got up to about 500 and hundred. i think the goal for this year auld be to get up to like
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thousand a week. if they could hit those numbers, they would be able to kick -- keep up. qwest what about fires. we recently heard about another in toronto, a car that was not run a. plug-in in a garage. that sounds scary. qwest they have gone through a little blip. less we are looking at one of those last year. qwest canada was different because we are not sure what happened. nota said -- it was charging. it is not clear what it was. >> hasn't set any impact on sales? >> it does not need to have an impact on those words. price. record high that day. all things considered, the number of gasoline cars catch on fire as well. it is part of being in the car business. you obviously do not want it to happen. >> right.
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,hat about the battery factory a factory that makes more lithium-ion batteries than any in the world. >> right. they have thousands of the same batteries you have the laptop. now with the demand, customers are consuming so many battery -- is a huge chunk of the world's supply. talk, what about apple buying tesla? recently, there have been reports they actually met? >> i have trouble believing it. we know the ceo of tesla met with apple. i'm sure these are pretty regular meetings. you on does not mean -- need the money. he is on a mission. his great fear is if he sells to anyone, they would not keep pushing the limits with technology. google is an interesting one. larry page and elon musk are
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close. i do not really thinking on -- he is not the kind of guy looking to cash out. he has plenty of money but google would be a more attractive partner. >> could receive partnership? >> deftly. yes, you could see them working on cheaper version of that. definitely, they are so those we see android getting and cards now. .t does not seem that far off >> thank you. we will speak with elon musk on the late edition today. speaking of google, google is -- more about their guidelines on how to avoid being a freak while wearing google mask.
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>> welcome back. google has some device -- advice for those wearing google glass in public. do not be a "glasshole." do not be creepy or rude while sporting the idler. breaking the rules will not get businesses excited about it. he is -- google is also telling them to be patient and ask permission before taking pictures or videos. ipoady a busy year for announcements. to go public.g some of thest says offerings eventually lead high returns, it can also be
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difficult for investors to separate fact from fiction. here to explain some of the most misconceptions, chairman of a company that specializes in analysis, a privately held company. first of all, what tech ipos are you watching that are actually goodbyes? >> king digital might be one. alibaba. possibly square. it is interesting with king digital. their multiple is really low and they are profitable. the value looks good on the surface. .> it has a game candy crushed. it contributes 78% of its revenue. how is that safe? >> it is interesting. a good point. well taken and no doubt about it. remember, the relative price multiple is very low. when twitter went out, they were
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about 50 times sales in a mobile -- in a multiple. this is 2.7 times. the market is adjusting that. they canood company if broader their product line. >> square primarily focuses on site technology. now there is talk about more secure technology. square will have a lot of difficulty getting beyond the united states. >> i think so. that is a dog with the same fleas. it is not profitable. they have good sales growth. the evaluation -- we have seen it over and over again over the past year. way ines going out advance of what they have actually performed in the market. are you saying investors should or should not invest this square goes public? >> here's my thing, as you know. there is a basic checklist and
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it makes sense to everyone. well, ismpany growing it profitable, is there cash flow, what is the brand like? you look at all of that together and then you say you can now deep dive. if ites me very concerned does not meet those. not necessarily in a bull market where we are -- we all look smart, including me, the average 62%.n was we all look great but the real issue was when the market goes down, what happens to those companies then? the average home market in the u.s. is -- 3.8 years. we are in the fifth year of growth. do notompanies which have strong fundamentals, they explode when markets come down and it does not stay up forever. >> what about alibaba? do you have concerns about the fact it is based in china and we
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the samecessarily have kind of transparency? >> yes. a great question. again, they meet all the basic points on, is this company pretty strong? they are growing well, they are profitable and they have cash flow. to reviewbe subject as to the strength of their financials and the quality of thefinancials, but on surface, it looks like a good company. be verye will probably high. >> how are you looking at twitter and facebook and linked all> we cannot take those together. you know how i feel about twitter. to me, it is still way overvalued. i like the fact it looks like they are turning a corner in cash flow, but the valuation is unbelievably unprecedented.
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when they went out and went public, there were about 45, 50 times sales. out, 15 timesnt sales. when microsoft went out, five times sales. the value with twitter is a slamdunk. very high. maybe they will prove me wrong in two or three years and catch up to the value, but you're still buying it at a high multiple. >> we will have to have you back to check that. thank you as always for joining us today. the online service partly owned by the world's two biggest racket -- record companies have third more last year. ♪
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>> welcome back. would tune day, you in your television sets mtv to see the latest music videos. of the vote changed that. vevo change that. a 33% jump from 2012. the driver of that road, a big jump in the use of mobile, tablet, an internet connected tv apps. jon erlichman caught up with the how videos areut being accessed on the surface. >> it is about engagement and how emotionally invested in the program your audience is and how much time you are spending enjoying the programming. what we are seeing is with tablets and internet connected television devices, our audiences are spending more time
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than they were on the desktop watching our videos, watching music programming. ofrow two, over 400 minutes video per viewer per month, compared to iphone, 45 minutes per viewer per month, because we're seeing audiences spend , we are able to generate more inventory and more money. class i want to talk about miley cyrus. she helped you guys generate money. people like to watch miley cyrus videos. the numbers are huge. met itself does not surprise and i'm curious, when you think the viral music video or the smaller artists and how they in a world where the biggest names in music will get the most views, how does it all play out and what do you see in the numbers? >> about 50% of all video views across our platform come through search. people know what they're looking for and they want to see it.
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about 35% are coming through recommendations and related videos and figuring out what plays next after you watch the rihanna video, what will you show next to lead into that one. about 20% are coming through social media, finding out through twitter and facebook and instagram, snap chat. that is driving a lot of awareness and is coverage. our platform, we are focused on connecting people with the latest miley cyrus, one direction, rihanna videos. we have programs for developing artists to let people find out about the next superstars before they've made it big. class in a lot of ways, you are like a modern-day mtv because you are taken advantage of all the other platforms people are using to watch music videos. i'm curious to know with your next steps what else you might be thinking about.
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there has been a lot of talk about a cable network fuse being sold. is that something that would interest you in growing your footprint? >> we're always looking at how to put our programming and brand in front of our audience on whatever scream -- screen they wanted on. i do not think it is likely you network soon.ble we are working to bring our programming to other networks. where we going in the future? it is about continuing to invest in great programming. some of them will be new shows we create. is about more distribution. we are in a fragmented world. putting our programming on more screens in more countries, more television platforms, that is where we see the fastest-growing part of our business. playstation,e other connected televisions that have boxes, you will see the
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volk him to those places earlier and later this year. then more territories. only in 13 countries today outside of youtube. it is a big priority for us to continue to grow. >> to do all of that, does there need to be a change in new ownership? there is a was discussion about what the music labels want to do down the road. there has been suggestion maybe guggenheim might be interested as a player in your business. what happens with your business given all the growth you have planned? have beenreholders great, very supportive. we could not have done what we had done without them. everybody is looking for how we can continue to accelerate -- accelerate the growth of our business. we are in the process of trying to figure out how we can bring
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more investment into the business to grow further and farther and faster than we have done so far today. withat was the tivo ceo jon erlichman. it is time now for the bwest byte, one number that tells a whole lot. our bloomberg news tech editor has the bite for us today. were, the number of cities google is in talks to bring its high-speed fiber service, currently in three cities, bring it to others with speeds up to 100 times faster. already in austin and utah. i have been looking at reviews of google fiber and people are using it. also see some people cannot really maximize the potential of it. class you think about, i have -- comcast and at&t here. people complain about speeds a little bit but getting 100 times
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is probably more than you need. a couple hundred times woods -- would be a start. ♪
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>> i am mark crumpton and this is "bottom line." the fed released its minutes from its late january meeting, the last under ben bernanke. then, deadly violence in ukraine raises fears of a civil war. insident obama arrives mexico to attend a north american summit. to our viewers in the united states and those of you joining us from around the world, welcome. full coverage of the stocks and stories


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