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tv   Bloomberg West  Bloomberg  December 10, 2014 1:00pm-2:01pm EST

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>> live from pier three in san francisco, welcome to "bloomberg west." on emily chang. here is a check of your top headlines. oil prices slumped day after opec cut its forecast for oil demand next year. opec projects it will need to provide a 29 million barrels of oil a day next year. the lowest number in 12 years. brent crude fell below $65 a barrel since 2009 -- for the first time since 2009. congress will vote on a one point wenzhou in dollars spending plan that would avoid a
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government shutdown. the deal comes after democrats the republican governor by wes is washington could learn from the states. are serious about getting the government back on track. we can't continue with the deadlock we have had. we have republican governors across the country who have revitalized our states. congress will have to announce a stopgap plan if the adopted bynot tomorrow. the longtime rivals just unveiled 10 mobile apps for government and businesses. tools to help airlines manage fuel usage. in is hoping to get a boost mobile while apple is hoping it will boost falling ipad sales.
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ipoould be the largest tech since alibaba. lending club is set to price its ipo tonight before trading on the new york stock exchange tomorrow. million and $800 says it may use some of the proceeds for acquisitions. briefingad, the fbi is sony employees today on cyber security and safety awareness. as more information legs out from that massive hack attack. sceneseaked e-mails show were personally approved by the ceo of sony. other e-mails are giving us a glimpse in the politics that went on in sony over the debacle that is currently the steve jobs movie. "you have destroyed your relationship with half the town
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over how you have behaved on this movie and you don't think it's true, wait and see." not interested in presiding over a $180 million ego bat that we both say will be the career to finding debacle careerh of us -- defining debacle for both of us." how bad is this for sony? could it get worse? this appears to show just how ugly, personal and political things can get in hollywood. are these e-mails representative of how business is done there? >> the main thing i would say is the fact that scott rudin, a
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well-known and successful producer has strong opinions and uses colorful language and speaks in hyperbole is about as itulatory or newsworthy that is rainy and cold in new york today. i don't know if you are familiar with a registry column called a deadline, this is the fodder -- is it going to have any major impact on the world at large? probably not. is it going to provide some in terms of deals? maybe. in terms of the public, i don't know what the big public revelation is here other than hollywood is a complicated place populated by opinionated
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characters. >> i just be with the writer of the steve jobs movie and he talked about how excited he is about this film and how with one of the best things he has ever written. take a listen. >> this is the first time i have felt at the end of the script like i wrote exactly what i wanted to write. i got to the end and managed to get from my head to the piece of paper contact. >> there have been a lot of issues surrounding the lead character. leonardo dicaprio and christian bale dropped out. david fincher was replaced by another director. is this movie ever going to get made? >> like all big movies,
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sometimes they have a long way to get it to screen. this is the kind of movie hollywood wants to make and it's finding be a matter of the right actor. movie with tom hanks took 12 years to get made. it is about finding that right combination. it's going to be an important movie. they will find the actual writer and director and star team that will make sense. it's not unusual that a movie like this which is not a big popcorn movie based on a comic book or themepark ride is having a tough time getting made in today's hollywood. it's about worldwide pre-existing movie ideas that can play all over the world and make billions of dollars like batman and pirates of the
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caribbean and transformers. aaron sorkin is a talented writer. somebody will figure out how to get this movie made. whenever you are putting a movie together -- i worked with studio executives. i'm in the middle of stuff right now. there is always the competing issues of is it creatively interesting or strong? i'm sure it is. who is the audience for this movie? that is the next question. is it a big enough audience to justify the expense to make the movie? how do you market this movie and sell it all over the world. those are factors. is havinghat sony second thoughts about this doesn't reflect negatively or badly on them. they are trying to make the best decision that works for them financially and creatively. they made a movie called a social network and moneyball. they had partners on those movies.
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those were challenging movies in today's marketplace. about the interview? was veryf sony involved in the desk secene. another e-mail from amy pascal you have ton saying appreciate the fact that we have not dictated to you what it had to be. seth rogen says we will make it less gory. the head explosion cannot be more obscure than it is because any moref it's obscure, you will not be able to tell if it's exploding and the joke won't work. movie, the very reason that all of this information is out there. somebody out there is very upset
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about this film. how unusual is it for the parent company to get involved in a specifics of a scene -- the specifics of a scene? >> most times, the corporate company finds people they are confident in and let the senior executives make the decisions that are best for the greed of -- great options of the film. this is a highly politicized movie even though it's a comedy. we are dealing with a country that is known to be having it is a unique situation. it's a situation that has bigger impact than just a creative movie choice. it can happen. it's not something that corporate does all the time because they have confidence in these executives. >> the government has denied
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responsibility for the hack attack. they have praised it calling -- the people behind this attack want the movie to not be released. is there any chance that sony will pull the film? >> i want to make an important distinction here. there is a distinction that has to be made about who was behind the sleek. it is not surprising they would do something like this. what is more troubling is that the leak is by an american citizen who is trying to get out this movie or sony. this goes against the very fundamental basis of our country which is everybody is right to privacy. whether somebody is making $20 million at sony or $20 is not that big a deal for the public to know. reporter for the
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washington post and i spent years trying to crack secrets. i was trying to expose wrongdoing in the government. public money that had major implications for the public at large or die would go anywhere for the information i needed. that is not the case here. using that sony is polluting the environment or has huge racial discrimination. the fact that sony has a lot of white males at the top is no secret. a problem that hollywood and america in general has. we have to be careful here that while this is nice and juicy , would you like these e-mails to come out about you? i saw how that industry worked and i loved journalism and movies. i don't think there is much difference between hollywood and any other highly competitive, highly charged industry.
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if you went to merrill lynch today and saw their internal e-mails, you would see some of the same kind of hysterics going on. i don't want to sound too much like i'm defending hollywood, but -- >> it does make you think twice about what you put in print. we will be watching to see what comes out tomorrow. one member of the paypal mafia is going back to his start up roots. gig, next on "bloomberg west." ♪
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>> i'm emily chang and this is "bloomberg west."
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one of the fastest-growing startups in silicon valley today -- it has just hired a new coo for the long track. he is the former ceo of paypal and founder of yammer, which he sold to microsoft for $1.2 billion. why hire him now? efits?d he go to zen i you and i have talked for a long time. retired. have coo?he ceo -- >> this is one of the most exciting companies i have seen. introduced -- he was raving about this company and
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telling me i have to check it out. parker got me more and more excited about what he was doing. his vision for the company and is unlikeon around it any company i have seen in the last 15 years. >> i know you have been thing about this. you are going back to your operator start up roots. why? >> i guess i am an addict. growth is a drug. , thek back at my career times that were the most fun were the times when i was dealing with extremely fast growth and companies like paypal and yammer. off -- i decided i liked the companies better. zenefits has done in one year what it took yammer three years to do.
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it is an extraordinary and unique company. >> the highlight of my day was a ks beingof david sac compared to lebron james. really? why the comparison? >> there are so few people out there who have seen what it's like to scale a company that is growing as quickly as we have been growing. businesses andd built them in $2 billion companies. david was the first guy out saw enterprise software could be approached with this consumer software level. this is a unique hire of
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someone uniquely talented. we need great people like that in the company for us to take on the challenges we are taking on. >> one of your investors compared you to jay-z and jt. no pressure. i will not be playing on a basketball team. >> what are you going to do here? what is number one on your list? me totever parker wants do. the company's growing so fast, there is more than enough to keep us busy. i will let parker -- >> i see david as a real partner in the business and someone who is going to go where the fire is hottest in the company. to belly, he is going taking on our operations organization, product and finance. over time, that will change. >> is he here to take this company public for you? >> we have not even thought about it. >> come on. >> not anything more than like
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in the shower or something like that. no plans or anything. >> we had one conversation about that. is aople say zenefits rocket ship and i was looking at the competition and there is not a direct comparison. there are smaller competitors, but where'd you see you are each in this market -- your needs in niche in this market? >> we take payroll, insurance, contracting, vacation tracking. we connect them and give the missing a place to do everything, which saves them a ton of administrative work. that is what is really unique about us. this all in one approach to this problem for smaller businesses below 1000 employees. they have sounded the alarm
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about startups singh valuations are too high, companies are operating at burn rates that are too high and ultimately could vaporize or disappear. just raised money at a half $1 billion valuation. given your long history, how concerned are you about the environment? it really depends on the company. in this particular case, the company has real revenue. growing 20 x over the past year. i have never seen anything like it. we are selling a product that is unique. a hub and spoke model. the brilliance of that model is that we are selling a product that every small business needs because the spokes are paying us. it is a really brilliant
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business model. >> a lot of people like you would end up at paypal. why didn't that happen? >> i have been there, done that. i'm super excited to be part of zenefits. >> i'm excited to see lebron -- who is jay-z? >> probably neither of us. >> i'm excited to see parker and david in action. the new coo of zenefits. thank you for joining us. , change is inack the air in the tv business as one late-night host calls it a career. amazon is allowing users to stream shows in four k ultra hd. that is next. ♪
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."is is "bloomberg west mark your calendars for may 20 up next year. that is when david letterman will host his final broadcast on the late show. he's being replaced by stephen colbert, current host of the colbert report. you now have another outlet ultra hd.v in 4k amazon is allowing subscribers to watch selected it shows in 4k at no additional charge. amazon joins netflix in providing the 4k on compatible televisions. coming up, a glance at the early days of apple with the forgotten cofounder, ron wayne joins us
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now to talk about starting the company and what it was like walking away from the future tech giant. ♪
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>> you are watching "bloomberg west." i'm emily chang. you know steve jobs and steve wozniak, but there is a third play responsible for getting apple off the ground. he is ron wayne appeared the reason he is not a billionaire is that he sold his 10% stake for just $800 12 days after the company started up. today, he is offering the public a glance at the early days of apple, selling memorabilia like this apple one user manual which could fetch up to $50,000 today. he joins me now from new york with more.
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you and i have talked before. the story is long and legend. let's start with the option. you held on to some of these things since the 1970's. why sell now? a sett is up for sale is of documents which is in two parts. one is that proves of the original apple one manual. up drawings and pages i made , the graphics i made up for the apple one manual. the second part, which you are picturing here, is actually documentation for the first apple 2, the first production unit that was produced by apple. was somethingion that steve jobs asked me to put together. he wanted me to design an enclosure for the apple ii. concept sketches and some of the
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detail drawings, sibley drawings and prints of the us and we drawings that were used for the apple ii, the first production unit of the apple. , what was it like working with steve johnson steve wozniak? why did you sell your stake? >> to begin with, it was an absolutely fun time, --ticularly for someone working for someone like wozniak. she did everything he did because he enjoyed it so thoroughly. at the beginning, i was there in 40's. i worked with steve jobs for two years at atari and we had become rather chummy and he wanted me to help him set up the original apple environment. which i did.
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there were several reasons why i separated myself from the company. not the least of which was the fact that i was a product of element engineer in my own right. i knew i was standing in the shadow of giants. i would never have a project of my own to work with. steve jobs had seen me set of documentation at atari. i'm sure he would have wanted me to read the documentation for the new apple enterprise. i could not see myself spending the next 20 years and a large back room shuffling papers. i had my own passions. >> you have admitted, you are not a wealthy man. you are at peace with the decision you made. i wonder how many times over the past 30 years have you thought, what would my life be like if i did not sell that stake
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? reasons why imany separated myself from the company, all of which seems good. i have never regretted it. simply, i was in my 40's and they were in their 20's. they were whirlwinds. if i had stayed with apple, i would have wound up the richest man in the cemetery. high-speed that i was not prepared to be a part of. it is true that i have never been a monumental success in my lifetime. i have never been rich. i have never been hungry, either and i will not waste my tomorrows worrying about my yesterdays. i'm selling off my documentation now to ease my retirement years. that is what it comes down to. >> how much do you follow apple
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today? have you played around with the iphone 6? what do you think of the product of today? >> i have had almost no apple products in my lifetime. i'm not heavily involved in social media or modern communications technology. >> what kind of phone beauties today -- do you use today? >> a tracfone. it's almost a throw away. a telephone that uses telephone technology and that is it. >> it is not a smartphone? >> no, it is not. >> have you ever been tempted to use more advanced products, smarter products? apple is coming up with a smart watch. does that attract you in any way? >> on virtually retired.
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i almost never get out of the house. there is no reason for me to have that kind of technology. and that internet satisfies all of my needs. do auction these off, what is the first thing you will buy? >> gold. as security for the future. my savings has been in gold for the last 40 years. wayne, always great to have you here. we will be watching to see how these apple products do an auction. thanks for joining us today. >> thank you for having me. and mostyne, the third unknown apple cofounder. startups priced out of san francisco are looking across the bay to oakland for cheaper rent. how long until oakland prices start soaring? we ask the incoming mayor of
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oakland, next. ♪
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>> i'm emily chang and this is "bloomberg west." the bay area city with the fastest-growing rent in the united states is not san francisco. it is oakland. that is according to a new research study which says in the rent jumped 9% last year, outpacing san francisco's 7.4%. it's attracting residents and businesses priced out of san francisco's crowded real estate market. is open headed towards the same fate as san francisco? i'm joined by the oakland mayor elect who takes office in january.
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let's point out that it is a lot cheaper to live in oakland that san francisco. rent is going up quickly. how do you plan to attract business balance some of these rising housing prices? sell its solenot for growth and it does not need to because it has space to welcome new residents. it is great that people are discovering oakland's awesomeness, our secret sauce, what makes us such a great place to work and live. would you consider offering tax breaks to attract business? >> there are better incentives and tax breaks. our focus has to be on building housing so that there are places for new residents to move into while doing appropriate protections for our current residence. we have just gone through some
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real detailed areas -- we have spent a lot of time figuring out where we want growth and where we want preservation. we cannot have both. >> new housing is suspected to be limited? >> we have 11,000 housing units in the entitlements process, in the pipeline, actively being permitted. we have some great projects, including a huge waterfront development. 31 units of new housing. >> there are reports that say the opposite of that. , the units of housing ground has been broken. they are under construction. that is what open needs. we need to grow and we need to preserve what makes oakland so great >> pandora is the example of the company that left san francisco and went to oakland. the reports of another company
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moving into the old sears building. who is it? >> it is not public information yet. the sears building is going to be an exciting centerpiece to our downtown. you should see the red brings of their rooftop deck with gorgeous views. forand is an exciting place tech companies to come. rent is half of what it is in san francisco. -- it's a fun place to bring your business and there is a sense of vitality, creativity that you can't find anywhere else in this country. >> what about west oakland? residents there are not happy about business is coming in. >> you cannot always make everyone happy. we just completed the plan. we spent a lot of time talking to all the residents, old and new. we hammered out a plan for
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growth and preservation, balancing both, designating the appropriate location for that growth. >> i know things have improved dramatically. how are you combating crime? i just enjoyed a decisive victory in this november election because i campaigned on a safer oakland. reducing crime is something i am most serious about. that is the thing oakland has really longed for. we are on track this year for a significant reduction in crime. than 25%. i am committed to growing our police department and doing the full host of things that will create a safer city. >> there have been a lot of protests there in the aftermath of the michael brown grand jury result and eric garner result.
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what is the latest? what is going on in oakland today regarding these issues? >> two things i am happy about. one thing i'm disappointed about. i'm happy that our topics led to an absolute de-escalation of the protests over the days they were in oakland. the protests have moved to berkeley now. i am pleased with the level of accountability. we arrested more people for vandalism and arson than any other city. >> is that something to brag about? >> yes, it is. people have to know they cannot get away with destructive behavior in our city. we are not arresting people for protesting. we welcome and facilitate people demonstrating, people exercising their rights to free speech. but not smashing windows. that is completely unacceptable. >> what are you doing going forward?
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protests,ome facilitated, not provoke protesters. >> extra patrols on the streets? >> absolutely. have worked t wo weeks straight, putting in tremendous dedication. mutual have relied on aid, calling in the highway patrol and other surrounding jurisdictions that have come to help us like we have been in berkeley the last few night helping them out as well. we will be watching. good luck as you take office. thank you for joining us today. the results are in from glassdoor's employee survey. which tech giants lead the list? the ceo has the answers for us, and. ♪
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>> i'm emily chang and this is "bloomberg west." class stores out with his annual list of top companies to work for. this year's winner, google. is out with its annual list of top companies to work for. other companies near the top of the list, facebook, apple, linkedin and noticeably absent is twitter. could the executive shuffle be to blame? twitter was on the list last year and is now not on the list at all. >> twitter is the top-ranked tech company last year. they are still a great place to work. they are well above average in terms of their ratings but they do not make the top 50.
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the company ranked highly in the year they go public. a pretty big halo in the employer-based. moster has had more than -- they have a new coo, new cfo. employees point to a lot of reworking in the engineering teams and satisfaction has fallen some. --hink twitter is going to he's making the changes that need to happen. we will see them back next year. >> a lot of people who have been -- how do you put this list together? how many people do you survey? >> every month, tens of millions of people visit glassdoor and we collect hundreds of thousands of reviews and ratings on employees who work at these companies.
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they tell us how much confidence they have been in senior whatrship and they write it is like at these companies. and then the rankings for this list are based mostly on the quantitative analysis of it. we exercise no discretion on it. it is the people's choice awards for companies. >> google at the top. why? >> they are building agile hr. the hr team is surveying the employee base quickly and trying to respond rapidly to things they need. what is standing out this year the workforce at google has aged and employees need more support. google has stepped up maternity leave, paternity leave, day care. >> i wish. >> in general, they have managed to make google a place where you can have a life and give your
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best to google. employees have responded well. >> facebook has dropped a few slots. >> there has been a bit of movement with facebook. they have fallen about 10 slots or so. point to the ability to impact people around the world. it's becoming a big company. >> one of the interesting things as you are seeing more non-tech companies. tech companies have been known for the ping-pong tables and massages and free food. other companies are wising up. >> it's true. what of the most interesting things is this year we have more diversity than ever. the number of tech companies is down. we have more pharmaceutical companies, more retail companies, more consulting companies. we even have to auto companies on the list this year. ford and toyota made the list this year.
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seeing many of them borrow concepts from tech as their has moved into verticals. let's say they have introduced free food, flexible work hours. we are seeing flexible work hours at places like ford, which previously was the domain of tech companies. >> what are the issues that will define the list next year? >> as the war for talent heats up, we will continue to see this trend where companies will go to the max for the best talent. it will be about retention. there is only so much great talent to go around. we have seen this in tech and we will see it in other industries. how can you go beyond the service level perks to the meaningful deep works like providing real work likfe
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balance? stuff.resting thanks for sharing the list with us today. we will be watching next year. time for the bwest byte where we focus on one number that tells us a lot. bryan womack is with us with a special light today. -- special bwest byte today. >> the number is 300 million. a big number four instagram. we now know they are going very fast -- they are bigger than twitter, which has 284 million. a big day for instagram. >> 300 million monthly active users. 70% coming from outside the united states. there were concerns about instagram's growth slowing once they got under the facebook umbrella. does that put those concerns to rest? >> we remember back in 2012 when
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mark zuckerberg announced this huge deal. the growth was in question. 300 million is a very nice number. a lot of those critics, all those concerns are fading away today because that is serious he's a numbers. -- those are serious user numbers. >> is instagram still cool? is it as cool as snapchat? >> that is still in flux a bit. we see these messaging apps popping up. the heartstill has and minds of a lot of teenagers. facebook has to be happy with that. kids to coryrom johnson. thank you so much and thank you all for watching this edition of "bloomberg west." later. see you
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>> from bloomberg will headquarters in new york, i'm mark crumpton. this is "bottom line." -- bloomberg world headquarters in new york, i'm mark crumpton. this is "bottom line." to our viewers here in the united states and those of you joining us from around the world, welcome. we have full coverage of the stocks and stories making headlines today. -- crude oil dropping to a five-year low. shelby holliday tells us why printing -- plunging gas prices are a win-win for costco.


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