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tv   Taking Stock With Pimm Fox  Bloomberg  June 3, 2014 5:00pm-6:01pm EDT

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♪ >> this is "taking stock" for 2014.he third, today's theme is location, location, location. i will be speaking with the cheeky second of of kingfisher. this is europe's largest home improvement retailer. he will give us his take on the world of global housing.
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u.s. executive tells us how the u.s. is prime location for expansion of his drinks business. roaming hunger, they help you to locate your favorite food truck. all of that and more over the past hour. drones offer a new location for hollywood. the faa will consider allowing tv and movies. this will allow hollywood to use drones. ,e're joined by ben gielow great to have you with us. ring us up to date. what are the current restrictions and regulations related to the use of unmanned aerial systems? >> well, the faa currently prohibits all commercial
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aircraft activity. that is why this is noteworthy. , this is industry heaven companies. >> will this change demands from other parts of the business world? for example, agriculture companies could be asking to have drones sanctions to fly over and see how their crops are doing. is a very limited exemption that the faa is currently considering. this is begging for the faa to regulate. this is one of the few industries that once government agriculture will be 80% of the market that would put out in our forecast. will be the biggest market. >> can you give us a timeframe when you think this will happen? i take that you are in
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washington so this has a different meaning. when can you expect to see this use? >> unfortunately not soon enough. that has been the frustration of this industry for many years. it is likely you will not see widespread use until at least 2016 if not longer. our association is arguing that for the very small stuff, there's really no safety or reason to prohibit their use today. we come up with some common sense guidelines to let us take off and take advantage of these new industries. the faa is very hesitant. >> by the time that the faa comes around to issuing will rules that the technology that can be applied to unmanned so muchill already be more sophisticated that the rules will be out of date? thisere is no doubt that
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is moving faster than the regulations and laws set to govern it. that is a concern that we have, that folks are flying today knowingly breaking the rules or unknowingly. the more and more folks that fly without any regulation, it will be harder and harder for the faa to get that horse back in the barn and we are almost to that tipping point. the entry point for some of the small systems is just a few hundred dollars. >> they can currently be operated by hobbyists, correct? >> that is correct. the faa differentiates between an unmannedft and aircraft. it has to do with the intent of the operator. if you are flying for fun, that is ok. if you try to sell that picture ok.ake money, that is not from a safety standpoint, what sense does that make?
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>> what abuses of drones, we were talking about having to do with television and movie production. it is being used in places like commercials, for example, coca-cola has recently come out with a video showing the use of canss delivering coca-cola to a variety of construction workers building the skyline of singapore. is that the kind of thing that can happen in singapore but cannot happen in the u.s.? that certainlyly happened. there was a guy who was delivering beer to ice fishermen up in minnesota. the faa said they had a cease and desist. they were in some other countries. is there an industry conference that you would recommend that people want to learn the most about the unmanned aerial services? where would they go?
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how much would they plan? >> i work for the nonprofit trade association. the manufacturers and the users of these systems. the 42 years has traditionally been the military and we are transitioning it to the commercial sector. if you need any more information, you can check us out. >> i want to thank you for , theng me, ben gielow association of unmanned vehicles international. us move on to the national security agency. in washingtonoke and took a special look at the national security agency and cyber security. she joins us now. today, you had the first ever interview with admiral mike rogers since he became the new director of the nsa. -- he offer any more case insight into the case of edward
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snowden? >> yes, he did. this is the first time he said that with a television interview. this is on the heels of the interview that snowden gave that aired last week. he had a number of things to say including the fact that he thought that snowden was intelligent, articulate, but he did question of course fundamentally what snowden was trying to achieve. intelligent individual, articulate. he seems fairly arrogant to me. he believes in what he is doing. i don't question it, i don't agree with it. i fundamentally disagree with what he did. i believe it was wrong and illegal. >> it wasn't just edward snowden admiral talk about with rodgers. what did he talk about in terms of the nsa posco as he? we know more about facial
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recognition. >> we got reports over the weekend that the nsa had the -- toy to use think of use facial recognition technology. i pressed him on this and he said, i cannot talk about it. they use it to target foreigners. listen to this. once we use facial recognition is a tool to help us understand these foreign intelligence , counterterrorism was another big area. this probably has had more big impact for us in the counterterrorism arena than anywhere else. we see in cities room our signals capabilities and we will know them digitally, if you will , but we want to see if we can try to understand them more broadly to help enable our efforts to bring them to justice and to forestall their ability to conduct attacks against ourselves and our allies and friends.
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extensivea pretty conversation, we covered a lot of ground, we talked a lot about concerns about china and the potential trade war that may be .he result of spine we talked a lot about edward snowden, we talked about the potential of edward snowden possibly working for someone else. he said he did not think so but he wasn't going to rule it out. when i spoke to keith alexander, he told me that yes, he did believe edward snowden is working for someone else, it is a question of when did he actually start. uninteresting difference of opinion there between the current head of the nsa and the guy who was head to 16 days ago. you can see this entire .nterview online click thanks very much. let's talk about health. have you ever broken any of your
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bones? i will talk to a chairman of one company that is looking to help you regrow your bones naturally. the chiefook at executive of the largest health improvement chain in europe. we will get information on housing, scottish independence, and how that could change the profile of his company.
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>> according to one research report, the regenerative medical market is expected to hit $20 billion. that is within the next decade. one company looking to bacterine on this is international. they provide devices for cardiovascular surgery. by dan goldberger.
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the graduations on taking over at bacterin international holdings. tell us about the company and the ups and downs it has had. >> his company has been around for a few years, got around to great start. i joined the company six or seven months ago in the summer of 2013. since new management has been in some, we have had substantial growth, getting back to just the basics. we make products that make bones heal faster and he'll more completely. we call on orthopedic surgeons, we call on neurosurgeon's. it is a very exciting space right now. >> how do you do it? what is the magic behind regenerative bones? >> the magic is within the human body itself. we work with donor agencies around the country. when you check off that boxing
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or drivers license says you will be an organ donor, you will .ontribute your organs the musculoskeletal system is also an organ. we collect and recover the musculoskeletal system, the long bones. we have a proprietary process for treating those long bones and turning them into what we call -- which are used in surgery. our special procedures are uniquely designed to preserve the signaling mechanisms of bone proteins that are naturally occurring. them -- the mechanical structure of the bones. this is identical to the native on that we are replacing. if there are and friday of onyx that you have been putting together because i noticed that there are sponges that are made of this cadaver bone. there are other types of devices.
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this is a medical device program. >> orthopedic surgeons are carpenters. bacterin makes a variety of products. we take the calcium off and we clean up the bone and we have a unique de-mineralization process. the material, when you rehydrated with saline solution he hates just like this bunch. when a surge is working on your knee or your spine, they have a defect in the bone they want to replace, they hydrate our product, squeeze it, put it into that defect and it expands naturally to fill all of the nooks and crevices. because our scaffolding material it in intimate contact with the bone, the signaling proteins are there and the body naturally is
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induced to rebuild the bone. >> that sounds great and clearly you have already developed this. what is the biggest challenge of getting it into widespread use? >> it is not very complicated. we need more representation. i joined the company six or seven months ago. we took a hard look at the salesforce force. we have replaced a lot of people . we started hiring people. there are certain parts of the country where we are strong but there are larger parts where we have not had representation in a while. we have to get the word out. >> what about compensation? i know that unless it is covered by medicare, a lot of development stops short. but certainly. in orthopedic applications, in spine surgeries, reconstructive
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surgeries, we are fully reimbursed. in sports medicine, some of that is private pay and there are occasions where the interest is are not picking up the cap -- the tab. ismost cases, insurance covering it. the vast majority of our underss is reimbursed commonly accepted parameters. >> what is the most common area? >> spine fusions. >> i want to thank you for joining us. goldberger, the chief executive and president of bacterin international. coming up on "taking stock", the appetite for food truck's is growing. you will meet the gentle man who else to track the meals to the masses. yes, it is all about finding the right .
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>> the food truck industry is expected to top nearly $3 billion by 2017. about a quarter of all americans had eaten from a food truck in 12 months. roaming hunger will help to connect with more than 4500 food truck's across the country. the founder and chief executive, ross resnick joins us. great to have you. how did you manage to combine your passion for food and technology and come up with a website that helps people find their favorite food truck? >> well, it was easy. i was hungry. i took a personal interest in
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gourmet food truck. i wanted to know where they were. i called a buddy of mine. i said, can we put together a directory of these? we did. is five years ago. we have grown from about 300 vendors on the site to over 4500. our business has evolved from just helping people find the truck's actually helping people book the truck. >> this must help the veriest food truck's and those proprietors. how do you end up making money? >> we have an agreement with the vendors. it is really a utilization issue. they want to fill the calendar with as much business as possible and catering is a great canto know how much you take in in gross. for a lot of the food truck's,
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they are happy to pay us a small commission. by doing so, we can do that without charging a client. >> can you help the food truck entrepreneur connect to a wider audience? you can give them programs and you can do brand and marketing. them to the big corporate clients. i know you have done a vents for google, for you to and so on. is that your role? >> absolutely. part of the struggle of operating a food truck, you have to imagine all of the things that go into opening up a restaurant. hiring a labor force, sourcing. you have to take that. you have to figure out where you will serve every day. to show them who is demanding food truck similar to serve and
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guarantee that business, that is a homerun for everybody. it might be a very fragmented and difficult industry to navigate. that was really the goal from day one, to be a uniter of the industry. helps them to be a mystery. >> -- this else to clear up what might have been a mystery before. >> this is the type of food, the type of demographic, the location. those whoe idea of don't follow it as closely as you. >> a lot of folks were used to seeing food truck's that were semi-unbranded. they were more known as route tracks, zone for their location. that was going to be at this corner. becausesaw, really truck's were then freed up to move around different metro
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areas. -- that allowed food truck entrepreneur is to create this around brands. this is evolving into a restaurant or products on the shelf of a grocery store. billboards of moving for these food truck entrepreneurs allowed them to get new business. >> can you book a food truck experience as an individual or only recommend that for a large corporation? >> they get graduation parties. casual fridays. reason that we believe it is , it is a packed
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out operation. it is an expensive. >> we have to let you go to your food truck. us rossu for joining resnick.
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♪ ♪ onthis is "taking stock" bloomberg. i am pimm fox. smalllebration of business brought together lloyd blankfein and mike bloomberg, the founder of bloomberg, lp. they are the recipients of the small business program and in the list that they will join lloyd blankfein on the council. for anie ruhle sat down conversation with both settlement. >> work hard, you will need some luck.
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the harder you work, the luckier you get. remember, it is not the end of the world. i don't have anything in common with people who say it was terrible. it is water over the dam. business the next day, another career. why didn't it work out? it wasn't the skill set or i didn't have the temperament for it. maybe i can afford to do it again. people are not honest with themselves. theke a line, i write out pros on one side, the cons on the other in a sense that if you let me see it, you might laugh at me. i work out in my mind what is real and what isn't and what i can present to people. >> when you look at mistakes, is there a piece of advice you wish you got as you are climbing up the ranks? >> yes, i wish i had gotten the
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advice not to be intimidated, to understand to break all of the myths that are out there. >> you were once intimidated? >> yes. way, it is not a vice, it is not a bad thing to be intimidated. if, instead of paralyzing you, prepare, tou to over prepare, to rehearse, to get it right. i don't think that is a bad thing. but, if it paralyzes you, it intimidated to you, then i think it is a bad thing. one of the things i've learned and that i think that the mayor sees clearly is how terrific these people all our. they are fantastic. you would think the people we talked to today, the couple of dozen people that we spoke to from central casting, the 3500 people we have brought to this people could all be like that. very often, the best thing we can do is to rake the myths
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bubble that they cannot do something. what this program has done for .eople bit have done a little about accounting, how to make a business plan, to make experiences for others. slowly but surely it takes away the mythology. all of a sudden, i cannot do what this person has done. >> that was stephanie ruhle's interview with lloyd blankfein and mike bloomberg, the founder of bloomberg lp, the parent company of this network. now, from two people who know about running big business to a chief executive who runs europe's largest home improvement retailer. sir ian cheshire is the chief executive of kingfisher. thank you for being here. describe for people the scale of kingfisher for those that don't know the the various brands that
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you operate under. about $17 billion, that is number three behind. we are about to be 11 countries. they have been at the lows. very similar type of business. >> what particular challenges do you face? i know you have a background in retail. what is the biggest challenge right now for kingfisher? these grown-up quite separately. they grew up as national leaders. we're turning that into an international network. we are trying to work out how to bring that together intelligently. not ending up with a one-size-fits-all.
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intelligently bring it together. probably the other major challenge is what is going on in the euro zone, the economy where we saw some weaknesses. managing across 11 countries is a bit of a challenge. >> not a unified market. recently, you have ordered results. it showed that there was a bit of a slowdown. this forced a promotional environment into the industry. will that change will have we moved into a different seasonal pattern? >> this is a big quarterly were port and people tend to look at things in depth for the rest of the year. we are comfortable with what the rest of years going to be. have theontinue to recovery in the u.k.. probably an flat market in france. >> one of the products that i
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note that you are featuring is the going gnome. i had to show this. >> it is a world cup theme. >> we have a bit of a history. this is a particular english obsession. we had the olympic gnomes. obviously because it was world cup. stop people to scoring a goal because england needs help when it comes to defending against penalties. you're hoping it will bring the team some luck. >> does england need help defending against the ascension of scotland from the union? very narrowa really band of difference between the yes and no vote. we have been trying to put the economic case, what we think the
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position should be. >> there is a referendum, right? have 5 billion stocks. what we try to say is here is the business. we think that scotland is better, stronger, more prosperous as part of the united kingdom. option is tobetter stay together. >> let's say they vote for independence or separation. would that cause you and many other industries as far as you would know to put plans on hold to then see what happens with the legal system, even just the currency being used? >> i think it is the uncertainty, the fact we don't know how the currency would work. you cannot just pick up and leave. we have three and a half thousand people. i think this causes
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unnecessarily uncertainty. >> you mentioned a word uncertainty and you look into the housing industry in europe. it is fragmented. we know about the travails of the business in spain. what are you seeing base in the numbers that you have seen? >> the numbers show to speed development. particularly in the housing market. on the other hand, the french housing market is flat with new starts declining? market likee a spain, which is still at low levels, but probably beginning to show some signs of early recovery. we might be seeing a few glimmers in some places like spain and portugal. >> no plans to do regional garden gnomes? >> we try to explain them to my french colleagues and they looked very confused and perplexed.
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we will have to find another product. >> are there some feta cheese you would like to explore, borrow ideas from different industries? you have a combination of retailing and commerce which would pick up, for example? >> what we are seeing in the home-improvement business is a greater demonstration. the people want to use their mobile devices to do a lot of their pre-shopping outside of the store. we have a fantastic business in the u.k. which is probably our best on the channel player and that is being used to guide the development. this to informt the rest of the world. >> do you have any plans on him is stores you would like to open next year? things, weoing two
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have 50 new stores that will come through. the other big move we are making is we are in negotiations to emerge with a number three player in france which would add 400 french to the network and give us a great opportunity to grow our business. that will be a big effort for next year. class could you stay for a little bit longer? you mentioned scottish independence and one of the highlights of scottish production is of course koch whiskey. up, we will talk about scotch whiskey. we have the chief of edrington americas. that is next.
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>> this is "taking stock" on bloomberg. many call it the scotch of wall
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street. now, the parent company is expanding its roots into the u.s.. by the chief executive, and of course we have the cheek executive of kingfisher. you have got to describe a little bit about the company of edrington because this is something owned by a charity, a nonprofit. >> that's right, it goes back to the 1850 cost. even beyond that. is scotland's largest private company and owned by the robertson trust which is scotland's largest charity. we operatel terms, the business and this allows us to look at the long-term. investment over a decade.
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of course, if you're making something that takes 15, 20, 25 years to produce, scotch is quite helpful in terms of your stock and investment. >> i notice there is a twinkle in syrian's i've. what is your reaction to these kind of products? obviously, you have grown up with them. do they bring to mind for you? >> it was a long time ago. i've hadn area that some feeling for. they are high-quality natural products. the tickly on this point, it take so long to produce this product. they are actually global products. now underappreciated.
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>> this is a global brand. >> one of the ways you in which the may that you make scotch whiskey is you keep it in sherry casks. about 80%, they are from's reign. there about 10% over the regular. this is an enormous amount of cash. comest does is that 70% from the wood. the better quality of the wood, the better quality of the whiskey. it is absolutely essential that you invest in this in day one. a lot of our investment is actually the best would and ensuring that we have the best quality. >> what about the investment you want to make in the u.s.? what are your plans?
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>> we have dribbled the headcount. chicago, dallas, newport beach. miami, going to south america. is a majors expansion for us. 40% is consumed in the u.s.. the potential is exceptional for us. >> what is the hottest product with the greatest growth profile? it is at the eighth whiskey? is it something less successful, more accessible? >> cutty sark is interesting. it was designed for the u.s.
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market. it became a scotch prohibition. in 19 65, it was the highest selling spirit in the u.s.. today, you will struggle to find it in a few places. we have just launched cutty sark prohibition. all of this new. people are looking for authentic brands with a history. this is the brand your grandfather drank. in some ways, that is an advantage to us. we are seeing it, perhaps at our making. this is an exceptional product. they did that very well. also brought a clear spirit. this is a partnership between what you call a scotch whiskey producer and also the family in the dominican republic. we have been working together to produce this.
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here you have a product matured in a cast for 2-5 years. we have a carbon filter that takes the color out. you have a white rum. this is smoother, drier on the palate. you can make great cocktails with it. this is what some scottish ingenuity. >> how do you like your scotch whiskey? u.s. post have ice, a little bit of water. but i prefer to use ray it up. a little bit of water help to take the edge off. you, what is your favorite? >> i spent some time in venezuela, caracas. a friday, that would probably be my first drink of the evening. perhaps, moving on.
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>> i like that, looking off to friday. >> my thanks. he is the president and the chief executive of edrington americas. my thanks as well to ian cheshire. you will meet someone who cannot drink, a 16-year-old. he can make the most of your air miles. he helped to make luxury travel affordable. you will meet him next.
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>> 95% of americans report being satisfied with the rewards program offered by their edit card. where to put those points to work? this is the passion of my next guest. he is 16 years old, his name is
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jonathan karp. he has made a business from using points and rewards. tell me how you started your business. >> about a year and a half ago, my father said that we will plan a trip to israel. same pricego for the as business class. all for free on our points. >> was he surprised that you could pull this off? >> yes, he has been a frequent traveler for along time and never did anything like this before. >> is the whole concept of using the points for various trips and upgrades, is that because it is too daunting, complicated, or people don't like the hassle of dealing with it? >> there are a lot of variables. you have to think in a certain way and be able to combine. you have different variables and you have to put together
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creatively to find a solution. >> in putting this together, were you able to use technology to make this happen, or is this like a telephone call? >> a lot of it was reading travel blogs online. i got to use my dad is like a client guinea pig. he learned from that. i spent some time in the phone but mainly reading online and doing my own case studies. >> you expended it to be a family business. you had your and working for you. you are booking trips right now, right? you have morphed into a travel agency. >> i started off specializing in miles and points and i recognize they had and need to branch out to essentially book trips. she is my travel agency partner and we can offer exclusive services because her agency belongs to over nine different consortiums.
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>> people can share these details with you directly and for a set fee they can actually .ave a consultation $50 for a one-on-one? >> the $50 for a 30 minute consultation is when the client is wanting little bit of advice. my portfolio management service, i look at a client's portfolio and develop a personal strategy based on the credit card spending and their travel needs and what they want to achieve. to elevate their experience while saving money. >> you are still in school. do you have plans to expand this business? >> i would love to keep this going. it has had to menace growth. we had about 10 clients in the first year and now we are up to 80. >> and you'll get to travel to all of these places. >> yes. >> very exciting. robert karp is the founder and chief executive of karp enterprises. thank you for "taking stock."
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i am pimm fox. good night.
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>> live from pier three in san francisco, welcome to "bloomberg west" where we cover innovation, technology, and the future of business. i am cory johnson in for emily chang. developersng off to in day two of its worldwide developer conference. new cellnews on its phone platform, home kit and health kit. they're also featuring components going up against competitors like dropbox.


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