tv Bloomberg Technology Bloomberg December 15, 2016 5:00pm-6:01pm EST
of a rationally motivated slaughter of nine black church members. the jury took less than two hours to reach the verdict. and roof again told the judge he wants to represent himself as prosecutors seek a death sentence. u.s. secretary of state john kerry says the fall of alpeppo would not enthe ongoing war in syria. kerry says he wants to see safe corridors for civilians and firefighters to leave the ravaged city but also calls for an immediate end to the hostilities. french lawmakers have voted overwhelmingly to extend the national state of emergency for another six months. it is the fifth extension since the paris attacks that left 130 dead in november, 2015. the move will allow security forces to apply the lie hiest level of protection in the run-up to the presidential and general leakses. japan is trying to resolve a territorial dispute with russia. the prime minister met today with president putin at a japanese resort. japan wants to return a four-islands russia invated at the end of the world war ii.
abe says heal review the results f that meeting tomorrow. i'm alisy, this is bloomberg. "bloomberg technology" is next. [captioning made possible by bloomberg television] [captioning performed by the national captioning institute, which is responsible for its caption content and accuracy. visit ncicap.org] emily: i'm emily: emily:, this is "bloomberg technology." coming up, anothera hoo hack rattles investors. verizon rethinks it's $5 billion deal with the struggling web portal. we'll have the latest. plus, a surging dollar slams oracle. shares slide in late trading after the company reports sales missed. a uber's rule out self-driving car hit a
roadblock? first to the lead. verizon has second thallingtsba his $4.8 billion deal to buya hoo after the company discloses it suffered the biggest data breach of all time. bloomberg was first to report that verizon is exploring its options, whether that's cutting the price of the acquisition or backing out all together. it sent yahoo! shares down more than $6% at one point in thurts' trade. we also learn that of the one billion accounts compromised in 2013, more than 150,000 of them were u.s. government employees and military personnel. to put this into context, the other yahoo! breach from 2014 reported back in september affected over 500 billion accounts. at the time we thought that was the largest hack of all time. the second breach is double the size. joining us now for more on the future of the deal, bloomberg news reporter ed hammond. also in new york former yahoo! board member and venture
capitalist, eric hippeau. what's the latest we know about the deal and verizon's plan for it? ed: i think verizon, they are exploring their options. what can they do here? i think it's inevitable they'll look for a price k it's not the company they set out to buy. it's had these serious issues come up. there are also questions if yahoo! knew this was going on and this hack, why was this not disclosed to verizon? i think the issue of whether or not they walk is a slightly more complex one. even if they wanted to pull the plug it's not straightforward to do that. they need to prove there had a been a material adverse change. they need to say because of these breaches yahoo! has suffered some serious loss of subscribers. they are not going to be able to prove that for a while. so the question of them walking i think is not the immediate one. much more what we should be focused on how they try to recut this deal to make it more favorable.
emily: eric, as someone who had known yahoo! for a long time, how do you think it should affect the deal if yahoo! still worth buying? eric: i think for verizon, the reason to buy yahoo!, is for the users and large billion dollar plus user base is still valid. obviously it warrants a price cut or concession. because there is a lot of liabilities here. and they also want -- verizon will also want to protect itself from a bunch of lawsuits that are bound to happen. today there was a number that were announced. to me this is -- yahoo! is adding to its reputation as the silicon valley -- in silicon valley. the shareholders want to get access to the yahoo! japan equity, and this is just in the way. emily: i did speak with the current c.e.o. of yahoo!, the data deal was announced.
there was so much optimism back then. take a listen to what she had to say about the synergies between the two companies. >> for us verizon has tremendous mobile distribution. we are very excited about. but overall i think it represents just a huge amount of scale and opportunity for verizon. emily: eric, what is your sense of whether there was any negligence on yahoo!'s part here? or were they simply too vulnerable? eric: as ed mentioned, it's kind of bizarre. this happened in 2013. this is 2016-2017. what happened in between we don't know. hard to tell whether there was negligence. but it's -- it's time for yahoo! to get its act together. they need to put a team together that is going to execute this transaction. execute it in the cleanest
possible way. it doesn't really matter at the end of the day if there is a discount because the shareholders want access to the yahoo! japan equity. emily: how long could this drag out whether it's getting a price cut or dropping the deal all together? how long will the process take? ed: i think if it's a price cut they could potentially do this quickly. yahoo! obviously is in a position where they probably have to recognize themselves this is a bit of a botched business. and verizon are going to come out quite hoord and say we want to do this, but we want to do it for less money, which is fair. that could happen first. i think it's in no one's interest to see that dragged out. the shareholders want to see it closed. verizon, too. this isn't a huge amount of money either way. they would probably want to move quickly. if verizon decides let's break it up completely it could take longer because it has to go through the court. we have to do this thing, verizon proving this is not the
business they set out to buy. it has been this material adverse change that. could go on and on and get ug. emily: how much of a price cut could we be talking about here? ed: one thing mentioned in one of our stories was the market is assuming this is going to knock off almost $1 billion of value, which is quite substantial if you think originally this was struck as a $4.8 billion deal. for that, that would be a huge hit for yahoo! and i suppose substantial embarrassing for marissa who struck this deal. that would be the most expensive breach in histry. emily: eric, called the most capless company in silicon valley. you still see value. if a deal falls through, what does that mean for yahoo!? eric: it's a big, big problem because i don't see how they can make it as a stand alone business. they have to -- in my mind they
have to replace the c.e.o., put a team in place that is going to streamline the business and make it attractive to another buyer. possibly at&t who was interested at the time. the landscape is shifting constantly. there is no question that there is value in the billion dollar monthly active users that yahoo! still has. somebody has to come, put that together. package it in a way that's rational and sell it as quickly as possible. emily: if you're marissa, what are you thinking, what are you doing? eric: you're thinking that your reputation is even more on the line. you have a duty to your shareholders to see this transaction through. it might be hard to swallow a billion dollar discount, but if it has to be done, it has to be done. egos have to be setaside. and the rational decisions have to be made. emily: eric hippeau, managing
rty, ed hanmond, thank you both. we'll follow this closely. another story we are watching. the murdocks have expanded their empire at 20th century fox. folding in the full stake of sky tv for about $14.6 billion. rupert murdock made a similar bid in 2011 but it fell through. 21st century fox explained how the deal helps push the company's content around the globe. >> combining our fast growing direct to consumer platforms, including our streaming apps like f.x. now. our interest in hulu, with europe's leading over-the-top service and digital video experience, create the consumer power outs reaching approximately 100 million consumers household directly on these platforms. emily: coming up -- oracle beats on its latest earnings. shares are lower. after hours we'll dig into the
emily: oracle's latest earnings beat estimates but revenue fell short of forecast. this marks the company's first quarterly report since its $9.3 billion acquisition of cloud software did netsweep. the chief research officer jins me to break down the results on crawford del prete. crawford saying they had a phenomenal performance in the cloud. how would you evaluate it? crawford: yeah. thanks, emily. they did have a really strong performance in the cloud.
the bottom line is they had some significant portion of oracle's revenue is offshore. they had some significant currency head winds, and that affected their overall revenue growth when you look at the numbers as reported. but having said that, i mean their cloud business is really starting to accelerate. the revenue growth up 81%. this business is really now hitting major milestones. their overall cloud business is now $1.1 billion. so now they are the largest company, if you will, on a quarterly run rate basis. as well what is really interesting about the numbers is how it's starting to scale from a gross margin standpoint. listening to the call, the gross margins have accelerated from 43% last quarter to 61% this quarter. and guiding to 80% in the long term. once you're through the cap
buildout of the cloud, as that sales force keeps humming, the sale happens on the back end where you get this gross margin expansion. emily: quick clip there of the cap in new york yesterday. ahead of a meeting with president-elect donald trump, she was very positive about the meeting. what do you make of the outreach that's been done so far? and whether or not a kch like oracle could benefit from a strong relationship with the white house? crawford: in my mind we just came through one of, if not the most contentious election cycles in the history of our country, and i think what you saw yesterday was the president-elect trying to reach out to the tech community and start a dialogue. there's a lot of cynicism around that. there's a lot of cynicism was it a publicity stunt? the reality is he's engaging the top management of some of the harmest -- largest tech companies in the world.
those companies happen to be based in the united states. so based on that, i think that there it's a lot of discussion around jobs, bringing jobs back to the united states, manufacturing jobs, you and i have talked about this in the past. i personally don't think that they are going to be able to crack the manufacturing job nut. i don't think there is a lot there. but when you think about the repatriation of curncy, you think about the percent of revenues, someone like oracle has offshore, a company like oracle, being able to put that money to work in this country as a way to employ people to do innovation on the next phase of tech, that is very enticing to a company like oracle. and also to someone like president-elect trump, that's something that will employ people and start to change the momentum of how we hire and how we think about hiring in this country. emily: particularly relevant given the currency head winds that played out in today's results. i do want to get your thoughts on another story. facebook rolling out its
attempts to crack down on fake news. a combination of crowd sourcing anyone can flag something as fake news. as well as influence from third parties. what's your take on the strategy so far? awford: my take on this is facebook is doing something which they have rarely if ever done. they are putting something out to their vast network of users and they are basically crowd sourcing a problem. and they are saying, if you don't think this is legit, you can report this as fake news and we will then start to examine it. they have they have a massive ability to do analytics. this ability to crowd source problems on facebook is tantalizing and gives people a reason to start participating. and it kind of starts to take a gameification aspect to it as well. as you start participating in facebook, you feel like you're
having more of a role in what facebook is. having said that, there is a huge risk that the herd mentality could start to dam stories they don't like and push those down. having said that that's why you need the anta litics, turns out this is something you don't like, but it is real news. but this ability of giving people a way to participate and crowd source could be applied in a lot of interesting areas. i applaud facebook for thinking about this problem in a unique way. emily: it's certainly not a game. do you think that ultimately this is going to be enough for that facebook itself needs to take a greater role? crawford: it's not a game. i don't mean to say that. what i mean is that it starts to get people to participate. do i think -- i think facebook has to play a significant role here. and just like 30 years ago, it was really important for newspapers to allow people to have a voice, to be able to
write into the editor, to be able to get those op-eds published. i think it's very important that the users of facebook start to participate and also that facebook thinks of itself as a distribution site for media and a place where media is consumed. i have said testimony times, facebook and twitter is the future of media. emily: crawford del prete, thanks so much for stopping by as always. -is setrs movie rogue one to the light the gocks office on fire. it may take in $155 million when it opens nationwide december 16. before it is expected $460 million domestic debut. although there is a lot of interest in the film, it's not likely to match the performance of last year's star wars, the force a-- awakens, which grossed $2 billion globally.
emily: this week, announced it signed a new strategic partner, google. improbable makes a platform calledation o.s. a game developers can use to build virtual worlds. it takes a lot of computing power to create the amount of graphic detail needed to make a good video game. that is the reason why v.r. gaming hasn't taken off. that's where google comes in. with the cloud support to one the back end of the service. improbable's c.e.o. herman marula joins me in studio for more on the business. you guys have been in stealth mode until now. it's great to have you here. what does this mean in terms of super charging your business?
herman: it's all about promoting innovation. it's not just about v.r. but any complex online world has been challenging to build and risky to create. people spend hundreds of millions of dollars trying to build massive detailed virtual worlds. with our technology and google's backing, developers can do that for free. at least during development. emily: why do you think v.r. hasn't taken off yet? cost? headsets? they are too expensive? or not an appetite? herman: finding a killer app. something people can't do without. it was "halo" that filled the x box. emily: that's similar to something nintendo president told us. take a listen to what he had to say when i asked him about it last week. >> when our game developers have a brilliant idea that can only be done through virtual reality, that's the day you' ll see us engage in that technology. but the games and the experience
always comes first at nintendo. emily: talking there about why they haven't invested heavily yet. are they making a mistake? are they going to be behind? herman: i think you have to experiment to find out what's fun. one of the first things we realized not just the v.r. but all kinds of online worlds. developers can't iterate easily. finding the fund usually happens with a small team. three or four people even in the largest companies that find something that works. you have to investigate these things and experiment to find something that could be a killer app. emily: do you see potential for v.a.? what sort of potential do you see to move out of a nish set of hard core gamers to a broader world? herman: i think the key thing to distinguish between v.r. devices, a way of interacting with the worlds and the worlds them sefments if you're simulating a city or modeling infrastructure or doing other things that require the same kind of computational power, it's not just visuals that matter.
it's being able to actually recreate behavior to answer questions you couldn't before. the real v.r. revolution is how we use it to solveng, where do you seat most common use case? herman: one example, we are looking at problems right now in tellycomes where figuring out where a company has coverage and how they think about their investment in infrastructure in challenging. if you build a massive scale simulation, all your infrastructure, and subscribers, can you see inside you can't even get from machine learning or data. you can literally try things in v.r. and see how they impact the real world. this side of the industry isn't talked about enough. it isn't something people have fresh in their heads. we are very much dominating the conversation. for me that's the beginning. emily: do you think it will be a consumer thing or enterprise thing? herman: both. i think we are likely to see one great new killer app, a virtual world that woudn't have been possible without a technology like ours or v.r. head seds or
combination. 245 will -- that will spike consumer interests. particularly in heavy industry and where you are dealing with loads of complicated infrastructure to using v.r. to understand that infrastructure. emily: google has its own v.r. ambitions. niantice part -- behind which proud pokemon go. is there any future google involvement in your company? there's been hints of a google interested in acquisition. what are your plans? herman: we are building an operating system. the only way that can be successful if we work with an ecosystem of companies. team developser and developers in general want to know they can trust who they are working with and many options available to thefment we are intending to say neutral. google is a partner we think we can do a lot with. there are a lot of people we think we can partner with. emily: herman, c.e.o. of
that crashed back in may. officials say a criminal investigation will begin into the crash, which killed all 66 people onboard. no one has claimed responsibility. senate democrats are proposing legislation to make president-elect donald trump sell his businesses. massachusetts senator elizabeth warren, a lead sponsor of the bill, says the public needs assurances that trump will do what's best for the country. economic commentator larry cudlow is top candidate for chairman of the white house council of economic advisors. that's according to the "wall street journal." citing people familiar with the transition. he served in the reagan administration. federal communications commission share tom wheeler says he'll leave office on january 20 as donald trump is sworn in as president. the departure of wheeler a democrat will set it up for a 2-1 majority of republicans. powered by more than 2,600 journalists and analysts in more
than 120 countries. this is bloomberg. it's just after 5:30, thursday here in new york and it's 9:30 friday morning in sydney. i'm joined by bloomberg's paul allen with a look at the markets. good morning. paul: good morning, have a look at new zealand. it's already up about .4%. a strong showing after 90 minutes' trade. another good decision on wall street. we are expecting positive start on the nikkei in japan and modest gains here on the a.s.x. when trading gets under way in 30 minutes. a couple of big a.g.m.'s today both the banks, national australiaa having their annual get togethers. might be worth keeping an eye on the ine or saying it's going to pay down the $1 billion of 2019 debt. that will should save $38 million in interest payments. crown resorts trading is set to resume after thursday's announcement that it will partly
sell its stake in melco entertainment. bloomberg's also seen a term sheet which suggests a crown subsidiary will sell 80 valued at 686 million in block trade. could be policy developments out of china. central economic work conference is being held behind closed doors in beijing. likely the leadership will announce economic policies for 2017 later on friday night. i'm paul allen in sydney. more from "bloomberg technology" next. ♪ emily: back to our main focus. high profile hacks in both the corporate world and the highest levels of government. u.s. intelligence officials and
president elect trump are clashing on what exactly is known about the d.n.c. hacks leading up to the u.s. election. intelligence officials say russia was directly involved and influenced the results in favor of trump. nbc news is reporting russian president putin was also involved personally. trump responded with a tweet. if russia or some other entity was hacking, why did the white house wait so long to act? did they only complain after hillary lost? i'm joined by nick on the phone. nick covers national security and foreign policy for bloomberg news. what is the actual evidence we have at this point that, a, rush -- russia was involved and president putin himself? nick: the intelligence community has not disclosed a lot of the specific evidence of putin's specific involvement. what they are saying, though, according to the nbc report is they are highly confident that he was involved.
this report cites unnamed sources about putin and suggests is motives began as a personal vendetta against hillary clinton who russia accuses of having meddled in russian elections several years ago. it began as a sort of vendetta against her and moved to a of instill a lack of confidence in the political system. emily: putin's involvement is him directing how the hack information was used, correct? nick: this gets back to the idea what he wanted to do is sort of show corruption in american politics that the united states goes out and encourages other countries to sort of bend toward democracy and then what he wanted to do is sort of sow doubts about the american system to undermine that message. emily: talk to us about the timing. when did intelligence officials
know that the d.n.c. had been hacked? there is some indication this goes back at least a year to the f.b.i. actually calling the d.n.c. and getting ignored. nick: this is the report from "the new york times" that came out a couple days ago that the f.b.i. repeatedly sought to warn staffers at the d.n.c. that they had been hacked last year. and then actually the surprise with that was that the d.n.c. staffer who took that call wasn't really able to verify that this was an f.b.i. agent speaking to him on the phone. so there was some mistrust about this. the white house did come out in october and say that they believe the russian government had directed cyberintrusions against the d.n.c. and hillary clinton's campaign. this has been known since at least october despite what donald trump said in his twitter message on thursday morning. emily: does trump's skepticism
of all this worry the intelligence community at all? nick: yeah. i think there is a great deal of concern in a situation where the president-elect is basically saying henot ---he does not trust the intelligence being given. you put on top of that the fact that trump says he's not going to taket intelligence briefing that president's get every day. it's a lot of reputation much he's a smart guy. he doesn't need to sit through it. there have been rumblings among the intelligence community among people we talked to a sense of confusion and puzzlement why is president-elect donald trump attacking us? we are trying to just give the evidence as we see it. emily: all right. nick with bloomberg news. thank you for sharing that update. the impacts of u.s. election on january 20 president obama will depart his office. many observers in the asia pacific region fear that america's regional commitments
will depart with him. with this in mind the asia society policy institute set out to understand what leaders in the region would like to see. from the incoming u.s. administration offering an in-depth brief with representation -- recommendations for president-elect. joining us now from washington, d.c., asia society's richard holbrooke ford editor of that brief. lindsay, start with the recommendations that stand out most to you. what are they? lindsey: i think there are two things we heard consistently from authors in this report. one is that asians are looking for continuity. and two, that they are looking for stability. the united states has played a really important role in asia for the last 60 years. our presence, leadership has essentially allowed a lot of nations to move hundreds of millions of people out of poverty. and the next couple decades they are going to be the same people increasingly moving into the middle class. that's and imperative for leaders in these countries. so they are looking for the united states to play a very
consistent role in the region as it has for decades. emily: what are the biggest concerns in this region in particular? lindsey: i think at the moment in this moment of transition there are two concerns. one is that the united states is essentially going to be distracted. that we may basically retrench from the region. we'll be focused on events in the middle east. problems at home. and we are not going to be paying attention to asia in the way that they would like. the second is the flip side, it's a bit of too hot, too cold problem. the other is they see the call that president-elect made to the leader of taiwan, they see some of the rhetoric between china and the united states right now, and there is a concern that perhaps if u.s.-china relations goes south, if they sour, that would have an impact economically, politically on the security front for the entire region. emily: is there a particular relationship that you see most
at-risk? could it be china? lindsey: i think a lot of times with political transitions in the united states, especially presidential transitions, at the beginning of that transition there is often a little bit of a bumpy period while the united states and china as perhaps the two 800-pound gorillas in the loom add -- room adjust to each other. particularly right now in china they are going through transitions of their own. it is a moment of uncertainty. and i think it's important that everyone proceeds cautiously and they proceed thoughtfully. emily: there's been rapid technological and military modernization in that region of the world which could ratchet up the possibility of an asian security crisis given trump's more aggressive stance towards china. how likely do you think it is something like that happens? lindsey: i still think it's in anyone's interest in asia, united states, china, no one has been interest in a security crisis. there is a lot on the line. the impact to the global economy
would be staggering. and i think all countries in the region are leaders in the region realize that. where the real risk is is of inadvertent crisis. miscalculation. that's where i think trnts and regular dialogue is going to be -- transparency and regular dialogue will be important especially in the coming months and years. emily: what counts as a missed calculation? taking a call from the president of taiwan? or dismissing the one-china policy is that a miscalculation? lindsey: i think unclear what the intent was behind the call to the leader of taiwan. and so i won' t speak for the incoming administration on that. what i would say on the one-china policy i think it has been the basis of u.s. policy for decades. republican and democratic administrations, have both used our one-china policy as the foundation of how we engage china. it's the most consequence bilateral relationship in the world right now. i think you have to keep that as
the foundation going forward. emily: trump maintains that the president of taiwan called him. we should say. one of the most promising areas of cooperation between china and india ha actually been over climate change and energy security. are those relationships under threat given trump's belief that climate change is a hoax? lindsey: well, you know, he has -- he's said of late, but perhaps he has an open mind on these issues. we saw several of our authors consistently say that they felt like this was an area that the united states should not dismiss lightly. the progress that had a been -- that had been made. in particular the paris agreement this past year is not only important because of the potential environmental impacts, but also because sometimes climate change is an area where countries like the united states and china, who may be seeking places to cooperate, it gives them an entree where other
things may be too sensitive. so these are important issues to continue to make progress on. they are domestic imperatives for countries like china and india. and so i think we should keep an open mind about looking for continued progress in that area. emily: all right. asia society's richard holbrooke fellow, lindsey ford thank you for joining us. end game, cybersecurity start-up secures a $19 million contract with the u.s. air force. we'll dig into the skills and text they bring to defense after working in the realm. this is bloomberg. ♪
its technology allows security professionals to seek and evict adversaries from i.t. systems. the company has had close ties to the nation's defense and intelligence community since it deployed its platform to the air force one year ago. joining me from washington, endgame's c.e.o. nate fick. tell us about the scope of your contract with the air force. nate: sure, emily. thank you. we are really excited to partner with the air force to help them succeed in this mission that's so important to the nation. the air force is the elite of the elite among cybersecurity units in the u.s. government. and obviously they are concerned with ensuring that their networks are safe. and existing technologies have been pretty good at stopping the b team and c team, but the a team still gets in. so our mission with them is to hunt actively to locate and then evict those a-team adversaries. emily: you guys used to be in the offensive hacking market and realized there wasn't a huge
business there and moved into the defensive hacking market. how has the transition been? nate: i think it's essential if we are going to level the playing field in cybersecurity to bring an attacker's mindset to bear. the best way to do that is harness the expertise of offense and redeploy, if you will, to equip defenders to counter these advanced threats. emily: so, what kind of special skills do you bring given you know about the offensive market but you're working in defense today? nate: there are really four skill sets involved in advanced cybersecurity. you have people coming out of the n.s.a., c.i.a., air force who have a very granular understanding of the adversaries and combine them with enterprise software developers who can build stable skillable shippable products. include designers who are capable of building products that are easy to use. you shouldn't need carnegie mellon ph.d. to use a cybersecurity product. then data scientists.
we have practically a university math department of ph.d.s who are writing the algorithms that undergird all this detection technology. emily: a lot going on here when it comes to global cybersecurity. president-elect trimp planning to issue an executive order on on day one to prioritize the creation of a cyberresponse infrastructure, yet at the same time he's been skeptical of these claims that russia hacked the u.s. elections. how do you expect the threat landscape to change under president trump? nate: i think the threat landscape will continue becoming more and more hostile to the united states. for the simple fact that offense is structurally dominant. a doll after offense beats a dollar of defense every time. if the u.s. is going to ensure a basic level of trust and stability in the cyberdomain, we have to bring to bear all the elements of american power in order to deter our adversaries. it shouldn't be about the united states hacking hackers. we should be martialing every element of military, diplomatic,
economic, and informational power to deter our adversaries from attacking us. emily: do you see a security danger in trump being so skeptical? nate: i think that the forensics of cybersecurity are always difficult. attribution is hard. that's one of the reasons why deterrence isn't perfect in this space. during the cold war, for instance, we had an array of satellites in space that could tell us with certainty where a missile launch came from. there is no analog in cyber. so it does require certain amount of trust or faith in the forensic capability of the u.s. intelligence community to tell us where these attacks are coming from. emily: all right. nate fick, c.e.o. of endgame. thank you so much for stopping by. coming up, uber self-driving cars hit the brakes in california. we'll tell you why the sudden stop, next. this is bloomberg. ♪
emily: general motors is taking a big leap into the future and producing self-driving cars at its assembly plant in michigan. according to the c.e.o. this is a step towards building the vehicles on a large scale. just last week michigan enacted a law to allow the testing and eventual sales of autonomous cars. sticking with that theme, uber has reverted to one of its bad boy habits, ignore regulators. after driving 23ul8 speed driving driverless cars in san francisco. they are saying this is illegal. what could be a rocker road for uber's transition, eric you road in one of these cars? as part of a story. we'll talk about that. they put these cars on the road without getting the proper permission. eric: they knew they were sort
of potentially going to have a little fight on their hands. don't think they anticipated how strongly the d.m.v. would react. google, b.m.w., g.m. have permission from the california d.m.v. to operate in california d uber's like we don't think we qualify as autonomous. they are referring to it as self-driving but not an autonomous vehicle in the legal sense. emily: the cars are still on the road. they haven't hit the brakes, right? is there a stalemate here? they are waiting to hear what kind of action might be taken? eric: uber has yet to put out an official statement reacting to the d.m.v. it seems like they are still deliberating internally. the d.m.v. on the other hand hasn't said what actual authority or pressure they can bring to bear on uber. so we are sort of in a standoff at the moment where the d.m.v. has said this is allowed. it's illegal. and uber is just been silent.
emily: the cars have been opt on the road in pittsburgh and san francisco would be their second city. talk to us about the ride. what was it like? eric: so you have to imagine you have two people in the front. the driver, with his hands just hovering over the wheel. another guy ready to -- he has to change lanes. there is a computer that shows everything that the car can see. and you're riding alon and it's -- along and it's autonomous for a bit and the car stops when it hits traffic. there are other times where a bike whidses by and the guy intervenes. it's hard to tell whether it's the driver's paranoia or the car sort of failing. there are still moments where the car interrupts. it says -- it beeps and the driver has to take over. my experience riding in it, less than 30 minutes. there were more than a dozen interventions. emily: it's interesting because i was in a google self-driving car four years ago. it sounds like it was similar. it felt jerky. i hear from people who have
riddened in google car they say it's smooth. the man who invented car says he drives to tahoe with his family. eric: i haven't done the google car. it's always a very of education. if they are doing it on their campus, that can be easier. when they have to go out into weirder places, they might run into more problems. i think what we are seeing they can cover a lot of ground, but it's like can they handle the random pedestrian who are run -- who is running the red light. all those weird cases and sort of human interactions like when did you let somebody merge? those will be the real challenge. emily: eric newcomer, who covers uber for us. keep us posted on the stalemate. now to another story we are watching. nintendo's first solo mobile game. super mario run is akale veil abon the apple app store. after collaborating with the smash hit pokemon go. three versions are free to play.
the full game costs a one-time fee of $10. we spoke to nintendo america president recently and asked him about the unusually steep price point. >> once people start to play super mario run, they are hooked. from our perspective we think the percent that will upgrade to the $9.99 will be high. emily: reggie there of nintendo, america. that does it for this edition of "bloomberg technology." also my last day before heading out on maternity leave for a few months. caroline hide is with us from perfect lynn. she'll fill in for me. you' ll be in great hands with her. i'll be back before you know it. happy holidays, ever. this is bloomberg. ♪
>> from our studios in new york city, this is charlie rose. we begin looking at the rise in the federal reserve interest rates that took place on wednesday, the first time in a year. the second rate hike in the last decade. the fed signaled that rates could continue to rise next year more quickly than officials had expected. the move seen as a jester that the fed is confident in the strengthening of the u.s. economy and potential signs of rising inflation. janet yellen addressed