Skip to main content

tv   Bloomberg West  Bloomberg  December 15, 2014 6:00pm-7:01pm EST

6:00 pm
>> from here three in san francisco, welcome to "bloomberg west."e co--- "bloomberg selling offmarkets with the nasdaq hit hardest. this comes as oil prices dropped again. accelerating after the hostage situation at a chocolate shop in sydney. riverbed technology is going to be aquatic -- going to be acquired. the company is being sold for
6:01 pm
$3.6 billion. advisers aftered managementnd elliott acquired a 10% stake in riverbed last year. a major deal brewing in the european wireless market. bt group will have several weeks for an exclusive negotiation window. banninganning buber -- starting january 1. that from the interior ministry. it comes three days after a parents judge blocked a bid to block uber. the government says the drivers do not eat the most basic requirements, including background checks and training. uber will take this to court. lead, three people are dead, including the gun them, in the hostage standoff
6:02 pm
in australia. were hurt,people including a police officer. the standoff ended after the police stormed the cafe in sydney's central business district. he is a self -- the gun man is a self acclaimed radical cleric. >> this is a very disturbing incident. that profoundly shocking innocent people should be held hostage by an armed person claiming political motivation. the officers were able to escape before the police stormed the building. a spoke to the man who knows thing or two about hostage negotiations. he is the retired chief of the negotiation unit. you cannot say that the negotiations failed because the
6:03 pm
negotiators in contact with this disturbed person bought 15 hours of time in which there was no violence. that provided sufficient time for the tactical forces to prepare. obviously they would have preferred for this fellow to surrender. as we always say in these incidents, the outcome is --ided by the cave years and by the behavior and actions of the perpetrator. ofis there a global standard process for negotiations? what happens behind the scenes in a situation like this? and how is that response aided by global knowledge other organizations have outside of australia? >> certainly law enforcement in north america, australia, new zealand, and europe are advanced in managing these incidents. the negotiators are well-trained.
6:04 pm
the method accepted by all is to contain a situation to make sure that the threat does not spread and open up a dialogue to seek a peaceful surrender. bestis generally in the interest of the perpetrator as well. fortunately for us more of them want to live then died. it is the of the day perpetrator's behavior. they threaten or actually harm folks, and then the police is left with little recourse other than to intervene and save the lives of as many hostages as they can. that was the case here. that theinteresting social media response -- his demand's being broadcast through the facebook accounts of some of the hostages. how did that changed the chess game the negotiators play? >> typically it is the ability
6:05 pm
to a seed to the perpetrators demands are not. he captured the media's attention and issued a statement of his own, that can be more problematic. social media and other ways of communicating, this will present increasing challenges for law enforcement in the future. >> interesting to dot marketization of information -- interesting, the democratization of information. why do police want to control it as part of the negotiation? it is a give and take, through quid pro quo bargaining. we want to put the perpetrator in a position to have to come to us to get it. if he wanted food, we would have traded food for the release of a hostage. make hisable to
6:06 pm
demands met independently or accomplish his goals independently, it places on forstmann to respond to any more difficult and challenging situation than to try to influence the outcome positively. >> i wonder if there was response not to let those tweets or information get out from the hostages, and if that is the kind of thing the fbi might pursue in situations like this. >> i don't know if there was any effort made by the australians. every case is situational. inre may be instances where cases they might find that more problematic. it is hard to come up with a hard and fast rule that applies to all situations. interesting stuff, and glad it did not turn out to be worse. , the former chief of the fbi's crisis
6:07 pm
negotiations unit. coming up, the sony have a case here? might the first amendment prevail? we will talk about that next. ♪
6:08 pm
6:09 pm
6:10 pm
>> this is "bloomberg west." hackers have turned the inner workings of sony entertainment into a public soap rep,
6:11 pm
releasing everything from employee medical records to salary details and salacious e-mails. sony is trying to make it go all away. they quickly fired a letter to media organizations, demanding we stopped publishing the private information these hackers have found out about sony. he says it is stolen information and one sony company will hold them responsible unless it is destroyed. former head of the u.s. department of justice computer this raises all kinds of interesting issues. not the least of which is that -- isays businesses --'s that sony's business is being damaged. sony sent letters out to journalists, telling them not to release information that was stolen. the hackers are sending e-mails to sony selling -- to sony telling them not to release a movie. the best way to keep it
6:12 pm
confidential is to protect us from being hacked in the first place. what journalists do is release information that other people may not want to have released. that is what they did. it is a really touchy issue here. >> it certainly is. sony wants the first amendment on one side and they don't want it on the other side, which is ironic and maybe hypocritical. do they have to case? this is stolen property and this is something that was private and is broadcasting that breaks the law? jobhe law does a really bad treating information as property. if i go in and break into your office and steal a ream of paper's i clearly stole something. what if i read those papers and get the information from them, it is not clear that i have stolen anything. when you look at different kind of information differently, like classified information or trademark information or trade secrets or private information.
6:13 pm
journalistshat the need to do is act responsibly in what they decide. >> we have all kinds of people online changing the rules of who is a journalist and what is journalism. is one thing if someone gets a hold of these documents and reads them. it is another thing if a journalist gets this information and retransmits them. >> the law makes no distinction between a blogger, a person with a computer, somebody who sends out a tweet, the new york times, or bloomberg. they are all protected by the first amendment. >> that is a recent understanding from the supreme court in the last year or so. >> that is correct. one of the problems as a if itional journalist is don't publish it someone else will.
6:14 pm
is a very difficult, moral, ethical, and legal choice for journalists to decide what they need to do in this case. sorkin has some interesting comments on this. he said if you close your eyes, you can imagine a hacker sitting in a room, combing through the documents to find the ones that will draw the most flood. next-door american journalists are doing the same thing. what do you say? yourself thesk question what is newsworthy, when you get the scoop from somebody you go through it and say what is it that is newsworthy? there is a lot of that going on. stuff like the name
6:15 pm
of the associate producer's medical records from sony, there is new -- no news value in that and that serves no purpose other than to embarrass somebody. that is the problem about being responsible. the other problem is when you are responsible, somebody else may not be. >> you don't want to go dirty or in this. i wonder about the connection to what is news and what isn't a news. celebritieses of that were hacked was much more salacious than the sum -- salacious than the salaries of the same celebrities. there has been a cyber attack, possibly nation and state oriented. -- nationstate oriented. >> this is a very dangerous .recedent ultimately they will be hacked because hackers are getting that good.
6:16 pm
information,lary all of the confidential information, all of the trade secret information, you can have all the legal protection. all that has to happen is one person leaks it and all protection goes out the window. they need to start allocating much more resources to start preventing these attacks meant to be able to respond to them effectively afterwards. it is almost impossible to put the genie back in in the bottle. >> thank you very much. coming up twitter cofounder evan williams launches his latest project. can it be as successful as his previous effort? we will talk next.
6:17 pm
6:18 pm
6:19 pm
6:20 pm
>> this is "bloomberg west." ever williams seems to think so. he cofounded a new venture capital firm. they are focusing on more positive investing and it is called "obvious." focusing on early-stage companies and sustainability, here to talk about that is the
6:21 pm
cofounder. to ev aboutalking this. if you are going to go through all the blood sweat and tears of companies you might as well make it do something good in the process. >> the simple idea of combining profit and purpose is a really great one. and it is found on our that companies will be built by solving grand challenges in the world, like climate change and chronic disease. we think there is an enormous amount of work to do and profits to be made. >> does twitter solve a massive global product -- global problem? >> twitter has given hundreds of millions of people a voice. for us that is real positive. >> it is interesting in the case
6:22 pm
of medium and twitter, these are all medium focused. but you talk about things that go far beyond, giving people voices. we have three themes, one is sustainable systems. it is about new kinds of sustainable resources. we invested in a company called beyond meat. proteins --ing plan plant protein and creating delicious products that are an alternative to meeting -- alternative to eating animals. is the most expensive part of every meal. it is hard for most people to get enough of. what is the second? >> the next one we call people power. opportunityre is an to use cloud and mobile technologies to really empower individuals and small businesses. we have 30 million small businesses, it is where job creation happens.
6:23 pm
those businesses have been underserved by technology. give smallly businesses a full stack of services they can run on their smart phone. resources a great san francisco-based startup. they make software for carpenters, plumbers, people who run businesses out of their truck. they can do everything from scheduling to invoicing to payment on their smart phone. on thesegyback fundamental changes in technology for the last five cloud isbile and the social? >> we call that it digital democratization. everybody has a supercomputer in their pocket. it is fundamentally game changing. >> does that mean somebody is going to do a -- going to give
6:24 pm
you a pitch and add one more deck? >> one thing we talked about is the fact that obvious ventures is about corporate philanthropy. it is not about running a traditional business and doing some good on the side, not that we are against that. but we are looking for businesses that are integrated. , every company should do what salesforce is doing and have a certain percentage of revenue toward charity. but salesforce is not an organization built for the social good. , that's right. that is really important. we love that companies do that. we are looking for companies where each dollar of revenue has some positive environmental or social benefit. change the way companies -- let me ask this question, when you look back in your career you were helping pictures.ead
6:25 pm
>> it was the beginning of my positive journey. i would get e-mails from customers saying, thank you so much. i have never met mike ran. if you and i just opened up an envelope and saw pictures -- "thank you so much, i have never met my granddaughter. i just saw a picture of her for the first time." >> so you have had that happen to you. did that change the way you are doing work. i'm wondering if your company has a different sense of your work and proceeds to do it in a very different way. >> i think so. for me i thought about what is the meaning of the business i am building? that is another one of our dualities. seeing a whole
6:26 pm
new wave of millenial entrepreneurs that want to work on something that matters. they want their business to be very profitable but they want to change the world for the better. >> sounds so san francisco. thank you very much. siege in gunmen took sydney, holding customers hostage. buber's response was controversial for those trying to flee the scene. how bad was this latest screwup by uber? we will talk about that next on "bloomberg west." time now for bloomberg television "on the market or co let's take a look at what happened with stocks today. -- "on the market." oil prices down once again. wti falling below $56 per barrel. we saw utilities and health-care
6:27 pm
stocks fall as well. ♪
6:28 pm
6:29 pm
6:30 pm
>> who are watching bloomberg west, where we focus on innovation, technology, and the future of business. the hostage crisis ended at a sunni -- sydney chocolate shop. --druple -- quadrupled its uber quadrupled its hair is anything about this tweet -- quadrupled its fares. they sent out this tweet.
6:31 pm
i its later they updated twitter to say passion -- timothy updated her twitter say -- -- this later they updated their twitter to say -- just how damaging was this move and is it time for them for that -- for them to figure out a plan for crisis pr? peter, first of all i want to talk about the business decisions. the pr thing, they have done a her and his job it seems. >> i don't know if it is a cultural thing. you're right, they could have acted more quickly in changing the search pricing policy.
6:32 pm
got picked up in social media, it went wild, and it hurt them. >> there was a notion this was mathematic. the first week recognized what was happening. "to respond to this crisis" -- happened in new york during hurricane sandy. their excuse was it brings more drivers into the area. it also brings more profit into their pockets. in a crisis that is the last message you want to communicate. >> is it fair for consumers? is there a message you can give to consumers saying, this is how .ur business works or is there no winning if that is the message? >> i think uber needs to be more in tunee and be more with how their operations and decisions impact their area of public.
6:33 pm
of differentot publics, regulatory authorities, consumers, drivers, and their investors. public has been taking care of. they need to look at this individually. when they meet -- when they make a mistake and it gets picked up it cansocial spheres affect all of those different publics. that is where they need to be a little more closely -- they need to watch it much more closely. -- ado have a sympathy little sympathy for them because they are growing so dramatically over the world. every crisis we find about, they have to be handling it time close doors. not to search pricing, there is a surge in screw ups. surge reising, there is a surge in screw ups.
6:34 pm
>> they provide a useful service around the world. they are global. is in doing that they have amassed a bunch of reputation capital. they put it in the bank. ultimately that capital is going to disappear. we thought groupon and andrew mason were immune and look what happened there. they need to be careful about their reputation. >> i don't know if we all thought that. that aside, let's talk about what you were had to say. they gave us a statement that says -- as soon as they became aware of the situation they cap did. it.hey capped it sounds like it wasn't only algorithmic. , it hadw the situation
6:35 pm
been in place for a little while. >> i am not there so it is hard for me as an outsider to comment on what decisions they made and when. it would be nice if they didn't decide after something broke in the news media and they actually recognized that something is happening in sydney that maybe this is not a good time for us to introduce surge pricing. is a technological response appropriate? deciding when to put in search pricing on a human level -- surge pricing on a human level? >> for a while buber had -- for a while uber had a can response it gave to every media outlet. it is not responsible to do that. some human to be interaction, especially in a situation like this. i want to back up.
6:36 pm
i don't know if i should begin credit. that tweet looks -- it was specific to what was happening in the central business in sydney and that was their decision, a human decision, to stay with the policy once the algorithm kicked in. >> it is a question of judgment. they truly believe that by raising the prices they will bring in more drivers. they have to rethink that now. >> i hope they do. they didn't win the huge snowstorms hit last year. they had this huge storm last week and yet they had quadruple affair -- quadrupled fares on uber as well. company is driven a lot by its investors, which is a whole other issue. is as wonderful as
6:37 pm
it is, it has some of the most influential investors from engine mark and google ventures. they are immune to some degree. i think if they continued on this track at some point those investors are going to make a change. it is a cultural issue that needs to be addressed. >> they should know where their cars are and how much they cost. , thank you very much. >> thanks for having me. >> san francisco went skyhigh right here in the heart of technology. doing justodesk steps from bloomberg west? we will look at the geppetto of 3-d creation next. ♪
6:38 pm
6:39 pm
6:40 pm
6:41 pm
>> this is bloomberg west.
6:42 pm
how do you get a group of software developers to understand the real implications of their coding? you build a workshop on san francisco's waterfront, right next to our office on peers three -- on p are three -- on pier three. i spoke with the autodesk ceo carl bass. , just steps from the bloomberg are studio on pier three, p nine is the geppetto's workshop of laser cutters and 3-d printers. autodesk has built this cutting it, cuttingp -- get edge? helps autodesk and
6:43 pm
their customers. >> they can turn it into physical goods. people can make whatever they want. that is what they do. this is like a testing lab. design on autodesk software but build on all kinds of equipment. >> it is a way to test what we do. it is not good enough to make the computer model, we have to make the real thing. builde customers who buildings and make cars and airplanes. you can put these on your daughter's walls. >> the big idea, materializing ideas so they can see things they have never seen before. >> this is what you would look like in an mri or x-ray or cat scan. there was a surgeon in here the
6:44 pm
other day, a narrow surgeon, who said he never wanted to do another brain operation without making these. is that notion that new possibilities can only be seen in three dimensions, realizing the potential of autodesk software. >> autodesk is looking for a new group of artists starting early next year. a gaming veteran is known as the founder of electronic arts and other companies. now he is going to sidestep for a competitive mobile gaming product. we will find out why in our exclusive interview next.
6:45 pm
6:46 pm
6:47 pm
6:48 pm
>> the idea of betting on games is nothing new, in places like las vegas. but betting on fantasy sports has exploded in popularity. what about competitive gaming on your smartphone? the service allows users to compete and cash tournaments, plus a number of mobile games live on their smart phone. trip hawkins has joined the company.
6:49 pm
seat -- in ana interview is trip hawkins as well as skills ceo. >> we start into games. there ranging anything from games in golf or bowling on ios. we are spreading from there to industry, kind of mainstream games. what we operate as a platform inside of each game. it is the games you know and love and now you can compete for currency or cash. >> it is legal? you are doing it on live television -- if it is not saying this on television is not a good decision. >> it is like the way the pga tour operates. we operate in the jurisdictions where there's -- where those games are legal. the new york marathon is a good example.
6:50 pm
i mentioned, the pga tour, there are a growing number of competitions in video games. they're physically and virtually organized. >> why might this be attractive outside of the fact that people like it? after ea sports, the a's -- the fans see two big trends. first is what i most of my time doing, running a company called "if you can." there's is a chance to do something with kids for the -- for game technology. we launched this game a few days ago on the iphone. the emotional iq game. you can search for it in the app store. i am now helping young on
6:51 pm
spinners like andrew build new companies. example of on spinners that are going to carry the game industry forward. this idea of hard-core gamers that really want to battle for prize money, it is a very big idea. it makes sense sports are going to segue into the virtual world. i'm not involved with skills because they have a great platform. lz i got involved with skil because they have a great platform. >> we have reached this point in the game business we have been talking about forever. i remember asking if this would be competitive. peoplea reno's of playing games. his mobile the right platform for that? >> we care about what our culture values. and sports inrts relation and built ea.
6:52 pm
today's kids, it is much more likely they grew up playing video games. they would rather watch a tournament of the new played by professional players. the rock 'n roll revolution, everybody wanted to be in a band and we all had that fantasy. video games are a big industry. >> i was more of a rapper. markets important in this because there is money and stake. what he said was we are at a point in time where videogames have been around for 40 years. you need a set of games to be around that set of time before they can transfer into professional sports. when you look at video games in the 1970's, the first cash competition was held by atari for $20,000 on space invaders.
6:53 pm
videogames like that have lasted for the timeframe. now videogames are being offered the same opportunity that professional sports like football and basketball. -- >> i remember battle zone. when you are counseling these people coming into the gaming business, is there a common mistake they tend to make when building a came here? >> there are tons of mistakes and i have made every single one of them. you have to make sure not to fall in the same traps or holes. organization, the hiring decisions, how you motivate and work people, how you foster an environment that is innovative and thinking outside of the box. one of the things i like about and true is he has gotten off to such a great start in many of these areas. he is going in a fundamentally
6:54 pm
sound direction. you need to have a really big idea. this is a very big idea. giving you any -- oh yeah, that would be a bad idea? >> it is interesting to me because growing up and playing games from electronic arts is so exciting. he really pioneered a lot of my favorite games. the idea of him helping us by a near electronic sports and bringing that to mobile was really compelling. as we started to work together, he has been so insightful on things like human resources. that has been an amazing experience for us. >> interesting stuff. thank you for coming by.
6:55 pm
est it is time for the b-w byte. brad stone joins us from the newsroom. you know i like it to be a surprise. what do we have? , that was the price listed for thousands of items on amazon's u.k. marketplace for one hour. that was not a blockbuster holiday sale but a technical glitch that affected sellers represented by an irish company. they advertise a ridiculously simple way to increase holiday sales on their website, but that is not what the company had in mind. >> that is a good way to increase sales. sell things for less than what they cost. >> sellers lost thousands of dollars, amazon was able to cancel some of the sales. but sellers were out of luck. some were worried they were
6:56 pm
going out of business. they are banding together for legal representation. >> and marketplace business is so crucial. it really lets them broaden product offerings. >> the big challenge is keeping their prices competitive. prices on the internet fluctuate so wildly. sometimes the seller's turn to these third-party pricing companies that control the pricing mechanism. we have seen it before where the algorithms go haywire. they tend to pay for it. >> thank you very much. member you can always get the latest headlines online on your phone or tablet and on we will have more "bloomberg west tomorrow -- "bloomberg west" tomorrow. ♪
6:57 pm
6:58 pm
6:59 pm
7:00 pm


info Stream Only

Uploaded by TV Archive on