Michael palmer, we've appreciate the insight.
"bloomberg west" is up next.
. . live from pier three in san francisco, welcome to the early edition of "bloomberg west," where we cover the global technology and media companies that are reshaping our world.
I am emily chang.
Our focus is on innovation, technology, and the future of business.
Let's get straight to the rundown.
Is facebook losing its cool with younger users ? the social network says some teens are not logging in as frequently as are used to.
We talked to a teenage entrepreneur about what is usually -- what is really going on.
Changes in the air.
The next time you fly, you may not have to turn off your gadgets for takeoff and landing.
Federal regulators say they will start relaxing the rules in coming weeks.
Just how close is the relationship between government censors and tech companies in china?
I asked the ceo of the google of china, by due' -- baidu's robin li.
Facebook showed huge profits and revenue in big gains in mobile, but it is one comment about teenagers that is sending shivers down the spines of some investors this halloween.
Ceo david government said there has been a decrease in young teens who log onto the site daily.
This comes after a recent piper jaffray survey found that more teens ranked twitter as the most important social network.
Is facebook really losing its cool?
How big a deal is this?
The shares have been on a wild ride today, opening lower in recovering.
Joining us nor -- joining us now with more is our senior west coast correspondent john -- jon erlichman.
How much of the stock is based on this, and about teenagers?
I think it plays a big part, emily.
A lot of people were wowed by the headline.
And there has been some research indicating that trend.
You highlighted while start -- the wall street research report by piper jaffray.
They did a similar report this time last year.
When they ask teens what is the most important social network to you, at this time i see her, it was more than 40%. -- at the same time last year, it was more than 40%. now it is more than than half what it was very what social networks are becoming more important to teens?
What that same survey tells us is that instagram's influences growing very quickly, which is not a bad thing for facebook because it owns instagram.
And in another category that they list, away from twitter and facebook, even dare i say google plus, which would likely include names like snap chat, 350 million snacks a now.
Even youtube, which is a more 10 -- a more teen-friendly place to go.
Given this trend, how much more important that the instagram come to the facebook story?
I think it does.
Facebook because that has more than one billion users and it is hard to get a lot bigger, can really lead on the instagram growth story.
This is a service that had one hundred million active users in february, now up to 150 million users.
I think that is also why they will be very cautious with the rollout of advertisements.
Right now, it is just a handful of advertisers that are going to be testing out ads on instagram, like ben & jerry's. there are a million advertisers on facebook, and some people have this concerned that too many ads on facebook plays into this losing its cool factor story.
All right, jon, stay with us.
I want to bring into this conversation ryan orbuch, 17- year-old designer and founder of finish, an app that helps team manage their to do list.
Ryan joins us from skype from boulder, colorado.
None of us are teenagers ourselves.
And you are.
That's what facebook -- teens are logging on less often.
Does that jibe with what you and your friends are doing?
I definitely think there is a lot of truth to that.
I am seeing over the past year or so at my high school, i have seen facebook be a prominent network, something that everyone still uses, kind of a utilitarian aspect.
But it is not exciting.
You have to use it because everyone else does.
But there is no excitement with it.
You would say everyone has a facebook account, but maybe they don't go on as often as they go on other social networks?
It is definitely that.
When they do go on, it is not like i have got to check out facebook, it is like oh, i should probably check my facebook.
It is more of a grumbly thing.
What do you use it out facebook?
Snap chat, obviously, is huge.
I was in chemistry class an hour ago talking to a couple of friends about this.
As to why snapchat is growing so well and also instagram, which is in facebook's book which is great.
Snapchat specifically is a much quicker.
On facebook, you can easily spend half an hour, an hour.
Snapchat is 30 seconds.
It is harder to get sucked into, which for my monetization perspective is not good, but from a youth perspective so far seems to be working out really well.
As far as snapchat goes, what are teens using?
Is it just to replace text messaging?
Is it to be funny, or is it to communicate about meeting up with people and stuff like that?
I have not seen it to mitigated in terms of the planning side of things.
I mean, that his son austin via text.
-- that is often done via text.
What snapchat is used for that light, friendly medication.
Saying hi or what i am up to right now as opposed to a status update, which no one would post that kind of thing because it goes to everyone.
Most people would not care.
Also i think the quickness is huge.
What about twitter?
I know you were on twitter and you are one of the tech savvy ier teens out there when it comes to technology, but how often do you what your friends use twitter?
For the most part, i have not seen twitter as much around school, nearly compared to the other networks.
I mean, a lot of kids at school do have twitter.
It is not for communication as much.
It is kind of like inside jokes and that kind of stuff, which i think twitter provides a good place for that.
A lot of get up private accounts or just a couple of followers that or their close friends and that kind of thing.
But i think by twitter and instagram, both are -- twitter is definitely a place for communication, that i do not think you could do anywhere else.
There is twitter usage, and i think it is growing, but it is not as huge as facebook is.
You wonder, jon, how twitter executives are watching all of this on what is it, day four of their roadshow?
All this news about teenagers using facebook less.
Certainly the timing works for twitter.
Yeah, they just rolled out, make this easier to look at pictures, for example, in your twitter feed because everybody really loves the power of pictures and being able to get that instant gratification from them.
Everything that ryan is saying is very valuable stuff.
It is a reminder that facebook in the eyes of many young people is a utility, a place to sort of check where, you know, almost where your friends might be, but not necessarily the way to get that identity that you want out there.
And that cool factor.
Everybody loves their family, but facebook is the place where your mom, dad, and your grandmother are.
Your grandmother is not using snapchat, although there might be a really cool grandma out there.
This is important on the business side because teens have that influence over saying to their parents, depending on what they are seeing on any social network, this is what i would like to buy.
So there is a lot of spending power here.
That is afforded to facebook, too.
-- that is important to facebook, too.
Ryan, is there anything that facebook can do to make it more attractive to people your age, or is it all about instagram now, which facebook owns?
That is tough to answer.
If we look at the history when facebook us try to do things, i mean they tried this poke thing, and no one heard of it since.
There are some things they can try to do but they do not have that fresh, amateur feel that something like snapchat does appear to with instagram being so well-established, that is where a lot of teens are going to go.
As of what, a couple of weeks ago, facebook started talking about running instagram at.
How big of a deal it into being in terms of how well the monetization works out and in terms of how the annoying we find instagram.
I think that will be a huge, important thing that we will know over the next few months and i'm not exactly sure the timeline for the instagram ad rollout, but i will definitely make an impact.
That is coming from ryan.
I think we should let you get back to class.
Thank you so much for taking time out of your day to join us.
Finish founder and teenage entrepreneur ryan orbuch and jon erlichman, our senior west coast correspondent.
The white eared the skies wilson -- thank you.
The skies will be more friendly.
We will tell you what you can and cannot use onboard next.
You can also watch us streaming on your phone, tablet, and at bloomberg.com.
Welcome back to "bloomberg west." i am emily chang.
Alec baldwin should be cheering.
The faa says it will now allow air users to use a portable device throughout the flight with some research and spirited chief washington correspondent peter cook has more on the this is.
How soon can i use my ipad during takeoff?
E happen by the end of the year according to the faa.
It could be up to the airlines individually.
They will need to implement this change and get it approved by the faa on a case-by-case basis.
Big mo for the agency here in washington.
A response to strong lobbying by not only the airlines, technology companies, consumer groups, and individual members of congress who said they thought this was a reasonable approach.
It eases the current restriction barring the use of mobile devices only after a plane has reached 10,000 feet in the air.
After careful review, the faa administrator tells us easing that was not concerned safety gear these relations have been around for a long time, and in that period of time, technology has evolved both an aircraft as well as the devices the passengers use.
We felt as an agency, we can together as a leadership team and felt that this really is important for us to take a fresh look at what these roles are and other things that we could do.
Again, there could be some restrictions going forward based on individual airlines, even individual aircraft.
For example, laptops, you still know -- you still may not be a will to use those during takeoff and landing because they throw -- pose a threat.
They may have to be sowed.
You may be allowed to use your ipad, use your phone in airplane mode or even in wi-fi mode as soon as you get on board the aircraft.
You will have to put it down when they give that safeties disruption -- that safety instruction.
This is a boost for airlines and for wi-fi providers of course.
The airlines lobbied for this.
They stand to make money from a connectivity charge.
The wi-fi providers -- this is a win for them.
They lobby for this.
Perhaps there are some questions about the technology.
Companies that allow for travelers to use their services from the gate through the flight and to the gate upon landing, they are possibly going to win more here.
Not all those technologies allow the wi-fi to work until you get up to about 10,000 feet, so that is something to watch going forward.
Ok, peter cook, our chief washington correspondent, thank you theater twitter isn't scheduled to start trading one week from today, and the new york stock exchange is determined not to repeat the same mistakes the nasdaq made with the botched facebook offering last year.
Joining us now from the floor of the new york stock exchange is scott keller, the nyse head of global listings.
You are the right -- you are the guy on the ground who won this ipo for the nyse.
What are you doing to repair for twitter to start trading and of what would happen with facebook?
You are right.
We are responsible for making sure that the tone is set at the beginning of the lifecycle as a public company.
We work with a lot of business to test the system to make sure everything will run efficiently and transparently for a great process.
Can you guarantee that the tech glitches that happened with facebook will not happen with twitter?
We operate a very different market.
I am sitting here on the floor of the exchange, and it really is the interaction of the people here represented by the designated market makers on the floor as well as the interaction with the underwriters on the transaction.
Together we will be working to interface the technology with the people to make sure the process runs very smoothly.
It is different.
We certainly benefit by having be people here on the floor to be able to do this effectively.
How are you preparing twitter executives for the day?
Right now, twitter executives are out there on the road shows and selling the opportunity.
We will be working with the company on the plans for the ipo, and we really start from the day the ipo going forward in terms of are working with the company.
How does it work on the day of?
Walk me through it.
In the morning, we have a listing ceremony and a breakfast where we will be celebrating a essentially the starting run for this company.
We will go to the bell podium, which really represents the pinnacle of achievement for so many companies, and then after 9:30, after the market is opening, we will be working here on the floor to open the stock.
And a lot of people think that the stock should open right when the bell rings.
The reality is it will take some time for the floor in the underwriters to do the price discovery process for an option here on the floor.
They are really focused on opening the stock at the right price.
So there will be a rush to open it.
It should take some time, but that's what take place in the control of the people on the floor.
What exactly did you do to convince twitter to come to you guys instead of the nasdaq, and what are you doing with other tech companies to win them as well you?
If you are focused on the execution really ipo in and being the biggest brand and associating with the best brands in the industries, there is no choice in the nyse.
We're very focused on that as a value popular -- proposition.
What the focus on execution and transparency, particularly this is an opportunity for retail investors to get involved in an exciting growth opportunity, the division ii lives on the n.y.c. i think a lot is about restoring confidence in the market that hey, investors -- i think the decision to list on the nyse is a lot about the restoring of confidence in the market.
Trading is november 7. that is record all right, scott keller -- that is record all right, scott cutler, thank you so much.
This is "bloomberg west." i'm emily chang.
He is one of the leading experts on apple.
He is known in some circles that the apple oracle.
One of his of possibilities is to predict what kind of impact the new apple product would have on the company's stock as well as the industry as a whole.
We follow gene munster for the launch of the iphone 5s and 5c to see how he gathers his own data.
? my name is gene munster.
My job is a referred -- a research analyst network at piper jaffray.
90% of people who have iphones say they will buy another iphone, so that franchise is really rocksolid.
Now we are heading over to the apple store on fifth avenue to start doing surveys.
Can i ask you a few questions about the phone you are buying today?
Can i ask you a question?
If you think about it, it is kind of like opening weekend of a movie.
We try to get an idea what the opening weekend sale looks like.
You really never see this from other product launches.
Sometimes when someone says no and declines to do the survey, there is a feeling around other people that feel like maybe i should not take the survey.
The best thing to do it that point is to leave the group and restart.
Right now, is about 7:45. they will do the final line count here.
In total, 1417, which is right in line with what it was for the iphone 4 launch, which is a peak number.
That is much bigger than what we had expected here at this store.
Now, we've got to gather from other places, too.
Now that we got our line count, now we head back to the office and start to work on the actual research.
You know, what we have, i guess being be flagship store in fifth avenue is probably our most important comparable.
That gentleman said he was in line for a couple of hours, which is a sign that this line is refilling itself.
That is another good sign about the overall demand.
That is buried helpful.
-- that is very helpful.
That gentleman there is three helpful.
He is a security guy and the apple security team and he will probably be cut by about 3:00 today, which is probably a sign that they will sell out by 3:00 today.
The enthusiasm around these launch dates for apple has been pretty consistent since the iphone came out.
Our best guess is that as long as apple keeps creating products that people want to have, then this enthusiasm is going to continue.
Overall, the way i think about launch dates if they are a lot of fun here to the energy that is out there, the stance, the covering, talk to as many people as we can talk to.
Even though it is tiring, it is a worthy effort.
As we mentioned, apple has a lot riding on tomorrow's ipad airlines.
The latest numbers show that apple has been losing market share on tablets to samsung.
We will have the latest from the ipad airlines right here on "bloomberg west" tomorrow.
It is time now for on the markets.
Look at what is moving every hour at 26 and 56 our -- after the hour.
Julie hyman is on the markets.
If you look at the stock market, really very little activity in either direction after the federal reserve many -- meeting yesterday led some investors to speculate tapering may be coming sooner than we think it also, the president of parini associates actually raised its forecast for the s&p 500 to $18.20, and more than 3% advance in the next three months.
Getting more bullets.
Individual stocks, exxon mobil, the largest oil company has listed production for the first time in over two years has net income slumped on dwindling refinery returns, and shares positive.
We are also watching men's warehouse.
Joseph a bank said it would be open to raising its offer for its rival but also warned it would walk away of talks to not begin by november 14. a lot of volatility in men's wearhouse today.
We will be on the markets again in 30 minutes.
More "bloomberg west" next.
This is the early edition of "bloomberg west." i am emily chang.
You can also watch at our later time, 3:00 pacific, 6:00 p.m. eastern.
Now for your bloomberg top headlines.
A six point three magnitude earthquake has rocked taiwan.
The quake shook buildings in the capital city of taipei.
It also forced the semiconductor to evacuate three factories pretty comes a day after a 5.5 magnitude quake struck cities in northeast china.
A london courtroom, one of the best kept secrets in the phone hacking and a was revealed today.
A prosecutor told jurors that former news of the world editor rebecca brooks and andy colston were having a relationship for at least six years.
Brooks and colston were among eight people on trial on a variety of charges stemming from wrongdoing at rupert murdoch's newspapers.
The ratings for this years world series showed some improvement for fox.
18 million people tuned in last night to watch the boston red sox clinch the title.
18% increase over last year.
The game was the highest-rated television program on a wednesday since last year's nfl opener.
And if they had general keith alexander is trying to set the record straight.
In an interview with bloomberg tv, he said the nsa has not been tapping into the servers of google and yahoo!
He made those comments after a "washington post" report citing documents linked by former contractor edward snowden.
And part four of my wide-ranging exclusive interview with baidu chairman and ceo robin li, i asked him about edward snowden and whether baidu shares information with the chinese government.
I asked him if facebook and twitter will ever get unblocked in china.
Would not have much say.
We just -- we do not have much say.
We just follow the instruction from the government.
If they think certain things are really low, then we take that out.
Isn't like you have cultivated a friendship with mark zuckerberg.
I know he has visited you in china.
You have visited him.
He met in sun valley occurred what is your relationship with him like?
We are good friends.
I have a lot of respect about him.
I think facebook is a great innovation.
It makes people's life easier.
But that may not be the only way to do social.
What should facebook's long- term strategy in china be?
We know the mark zuckerberg wants to get back in.
Yeah, i hope they can get back, but again, it is really a government thing.
Do you think google will take another shot at china?
I don't know.
It is really up to them.
They are a very successful company.
They have unlimited resources to do things that they like.
They voluntarily gave up on the chinese market.
Speaking of that, voluntarily , eric schmidt has added the deck and china has been raised in your favor.
He says every once in a while a gift is handed to you.
He said we handed one to robin.
What do you say to that.
Even before they announced that they were giving up on china, we had, like, 70% of the market.
Google came into china and 2005. at that time, i think their market share was around 30%. by the end of 2009, when they were about to give up, their market share was in the teens.
So they went there, they invested aggressively, china had 5000 years of history.
We have the patience of 5000 years.
Partial information is better than no average, right?
-- been no information, right?
But they left after five years.
They ran out of patience, i guess.
Some of the question search results because they are censored by the government.
How much influence does the government have on your search results today?
Like i said, we operate in china, and we need to ohbey the chinese law.
If the loss of certain things are illegal, then we take that out.
The law in china is just different from the laws in the u.s. there have been a lot of concerns, i think, run the world about tech companies sharing information with the government.
You don't think that distrust of the chinese government around the world that hold you back, good old baidu and other -- could hold baidu and other chinese companies back?
Would've nothing that is a problem in the sense that most of the users in the markets -- they do not care much.
They search for entertainment or information, they search for science, music, all kinds of things.
Based on our experience, the chinese rk, most people -- the chinese market, most people do not care that much about those kinds of things.
For those people who do care, they have choices.
They have alternatives.
Does baidu share information with the government about users?
The government has not demanded this kind of information.
If they do, we will see what the law says.
What do you think about the u.s. nsa, the national security office a, and the recent revelations that technology companies here, including the low, yahoo!, and facebook, happens sharing information with the united states government?
Welcome i am not familiar with the u.s. market.
The law requires that google and facebook do things, they need to do it.
If the law does not require them, they have their own thing.
You have heard of edward snowden, though, right?
I'm curious -- how is edward snowden, who made all these revelations, how is he perceived in china?
Do people think of him as a hero?
I have not heard much about comments on him personally.
It is more about the discussion about oh, it looks like the u.s. government is also spying on their people.
There is nothing special about the u.s. government, it is like any other government around the world.
So very few, if any, chinese companies, chinese technology companies have really gone global.
Why do you think that is?
Do you think it is because people outside of china don't trust the chinese government?
it is a matter of time.
Look at one specific company.
Poor a company to be successful internationally, they do not need to be societal in the u.s.. the u.s. is just one part of the world.
Maybe it is hard, but for us, that is the case.
Even for baidu, we chose not to come to the u.s. market for us because this is a market that is very different from developing countries, smaller countries.
That was baidu's ceo robin li . if you miss any of this expose of interview, you can watch every part in its entire booklet -- in its entirety on the bloomberg tv plus app and of course on her website here to select the money to host a dinner party but did not have time to cook?
We will show you a service that brings a private chef into your kitchen.
You can also watch us streaming on your phone, tablet, and at bloomberg.com.
This is "bloomberg west." streaming on your phone, your tablet, and at bloomberg.com.
I'm emily chang.
Technology is making it possible to share items or services instead of owning them.
Today, we introduce you to kitchen surfing, a new startup that makes it as easy to hire a private chef for your inner party as it is to book a room i are bmb or catch a ride from uber.
Bloomberg's -- airbnb or catch a ride from over.
Alix steel has more.
You can rent anything to a stranger.
Your bed, a blunder, or a beetle.
Now you can write your cooking skills.
The way people eat has alr eady been changing.
She is a private chef listed on kitchen serving.com, a startup.
Kitchen surfing is probably 20% of my business.
That has the potential to be a 110 billion dollar market.
For kitchen surfing, that turns it into 20% revenue growth a month.
Here is how it works -- you go onto the website, choose a menu, and a chef.
The chef shows up at your home on the appointed date along with all the ingredients for your dinner party.
? after a few drinks, dinner is served.
Your average is $70 an hour on kitchen surfing.
If you are rate -- working on a two rating michelin star rating, -- starting is $12 an hour.
The top chef can make about $12,000 a month, but there are downsides.
Only 20% of kitchen surfing clients come back for more.
I've not had one type of clients that are repeating.
It is really everybody has been very different.
A record $600 dinner for four costs more than a restaurant in new york but less than a top- tier.
If you make your dinner yourself, it would cost about $200, but you would not get to sit back and relax.
Alix steel is with us now from new york.
That looked like it was a lot of fun.
He mentioned some of the difficulties, though, with the type of business model.
What about regulatory issues.
Yes, it was a lot of fun, but regulatory issues, you basically look at old laws for an new business model.
What is it legal for people to do?
Air bmb is the perfect example, the new york attorney general's office issuing a subpoena for the company to get information on its host.
They want to make sure they're complying with current law.
In new york, portable, renters cannot sublet apartments for more than 30 days.
If you do, you are an illegal herald -- hotel.
Airbnb says that is confidential and part of their business model.
In terms of taxes, that is an issue as well.
How do you protect your host and your money.
Airbnb said it would hold some hotel taxes, but it says it is a pretty informal business and needs different roles.
The problem is the bigger you get, the bigger the spotlight becomes.
Now, you definitely wonder how many of these businesses are actually going to survive these sorts of criticisms and regulatory issues.
That is what i wondered, too.
How much is this going to bring them down?
Interestingly enough, rachel bachman said it might be a good thing, it could be a sign that the industry is reaching maturity.
Of course, this is a very big -- new business for the comments and lawmakers in the individuals for dissipating in it, and the larger question is -- is commercializing shared assets at the goal?
That is what it seems like -- ethical?
That is what is it like they're tackling in the next round of the shared economy.
All right, alix steel in new york, thank you.
President obama is speaking at the first ever select summit right now, which is attended by hundreds of ceo's and economic leaders from around the world.
The president announcing an expansion of the select usa program, a program to attract more foreign investment in the united states.
I want to take a listen in.
Bringing jobs back from japan.
Ford is bringing back jobs for mexico.
After locating plants and other countries like china, intel is opening its most advanced plant right here in the united states.
And there are a whole range of factors involved.
People are looking at lower energy costs here, they're looking at stability, they are looking at the end of east -- the increase productivity of workers.
All of these things are adding up.
And people are saying -- why would we want to be outside the worlds largest market when we can get our products made effectively here, and there is a great platform from which we can ask for all around the world?
It is not just companies based in the united states.
Honda is betting on america by expanding production operations in ohio, alabama, and indiana, and today more honda's are made in america than any of -- than any place else in the world.
Samsung is betting on america by revamping their plant in austin, texas.
For billion dollar investment.
-- a $4 billion investment.
Statements spending on america by hiring hundreds of new workers in north carolina and putting $50 million a year in the training of its u.s. workforce.
That is the kind of investment that we have always welcomed as a nation, but the reason for selectusa is we know we can do more, we know we can do better.
So two years ago, i acted on a recommendation from the ceo's on my jobs's counsel, and we created selectusa to encourage more foreign companies to invest and create jobs right here in the united states.
And we have shown that this works.
As penny mentioned earlier this morning, with help from selectusa, the austrian company is creating 220 jobs in an auto parts plant in cartersville, georgia.
The canadian company is investing more than 600 million dollars to expand its learjet facility in wichita, kansas.
A building company that makes high-tech aircraft parts reopened a shuttered factory in stillwater, oklahoma, and they are expected to create 380 good jobs by the end of 2015. the list goes on.
I want to see even more of these success stories told across this country.
Which means i want to make sure we are doing everything we can so that companies like yours want to set up shop here in the u.s. and all the u.s. states and cities that are represented here today, we want to provide you with the tools you need to close those deals i create those jobs.
-- and create those jobs.
I'm proud to announce i am expanding and enhancing selectusa to create the first- ever fully coordinated u.s. government effort to recruit businesses to invest and create new jobs in the united states.
[applause] to do that, i am taking four new steps to bring good jobs to our shores.
First, building on the great work that our diplomats and indices do everyday.
I am a making a tract in foreign investment a formal part of the portfolio for our ambassadors and their teams around the world.
I meet with our dedicated embassy staffs wherever i go.
All of them are great ambassadors for america, and they are building bridges and connections everyday.
Well, i want them doing even more to help foreign companies cross those bridges and come here.
And as they take on this expanded economic mission overseas, we will make sure that they have got the support that they need here at home.
Which brings me to the second point.
Officials at the highest levels, up to and including me, are going to do even more to make the case for investing in america.
I already do this everywhere i go around the world in public and private.
I joke with a few american company that i will deserve at least a gold watch at the end of my tenure from them.
[laughter] i have racked up some pretty good sales.
[laughter] but as a country, we don't always make our case in a coordinated way that links our teams overseas to the right senior officials in washington.
We are going to change that.
Make our advocacy more efficient, more effective, more connected so that businesses who are making decisions about where to invest are getting timely answers and know that they are going to have all the help that they need.
Number three, we will make sure that for the first time, companies who want to do business in america have a single point of contact at the federal government -- federal level to cut through red tape.
We are one to help you navigate national, state, local rules and regulations so that you can invest faster, open facilities faster, created jobs faster.
And finally, we will help states, cities, regions across america up their game by giving them more tools they need to compete.
From the latest research and analysis to of and selling them directly with potential investors.
This is a big country.
For a lot of foreign investors, you know, it may be sometimes hard to navigate and figure out what exactly is going to feed the need -- fit the need of your company.
Well, we can help you do that, and we can help measure the state and local governments and regional offices -- they are best equipped to make their case, and we can get a good fit.
It is good for the company, and good for those communities.
So, the new focus at our embassies on attracting investment, more outreach from washington, coordinated advocacy to bring more jobs here, new ways to cut through red tape, and new tools for state and local leaders.
That is what an expanded selectusa will mean for businesses and cities.
Alternately, i believe that will translate into more good middle- class jobs for americans.
My number one priority.
I will be asking congress to do its part.
A lot of this is coordination.
It is not necessary to spend a lot of money.
It is important for us to do what we do more wisely.
By making america even more -- president obama speaking at the selectusa summit in washington, and announcing the expansion of the selectusa program to increase expansion in the u.s. and recruit more businesses from abroad to the u.s. it was a started as a program that started in 2011, and now it is being expanded.
We have more "bloomberg west" after this quick break.
I am emily chang.
-- welcome back.
Coming up on the late edition of "bloomberg west," the faa is loosening rules on electronic use and flight.
What went into this decision and how safe our gadgets on planes?
We will ask a former department of transportation inspector at our 3:00 p.m. pacific, cisco pm eastern show.
It is 56 past the hour, which means bloomberg tv is on the market.
Julie market is in dachshund julie hyman is in new york.
We have a very mild movement in which the three made it -- pre-major averages.
. let's move onto the individual movers and highlight a couple of stocks for you.
First of all, weight watchers, those shares trading at the lowest level in three years time . the company posted third-quarter earnings beats analysts' estimates.
Discovery communications, the cable channel operator, beat analysts' estimates.
Viewership gains are translated to strong advertising growth.
We're are also watching shares of warren buffett's berkshire hathaway feared that reports earnings tomorrow after the close.
Analysts estimate becomes a will learn over $9,000 a share.
What is more surprising is how much cash the company like this have on hand.
For more on warren buffett's cash pile, i want to bring you know that's a want to bring in noah.
It is territory that it has been in before.
I think the significance and here is just how quickly that catch pile gets replenished.
We were talking a few months ago, berkshire spent more than $12 billion during the takeover of heinz.
How does it get built up like that?
Which business is slowing up most of the cash?
There are a number of injured berkshire has more than 80 operating subsidiaries.
The big ones that stick out are the railroad, burlington northern santa fe.
That has spun off a lot of cash for buffett over the last several years.
You also have subsidiaries and a big utility holding company called madmen american.
When you talk about companies building up this kind of cash, even berkshire hathaway is to come under criticism when he gets to certain levels.
What are the dissident edges to having such a big -- the disadvantages to having such a big cash flow?
Either buffett himself pointing out some of the shortcomings of this.
He has been very public about the fact that this money earns very low interest rate and he tends to keep it a lot in treasuries.
He likes to keep a lot of cash because berkshire has big liabilities.
You want to keep a cushion of about $20 billion, but it has run a bit higher than that for several years now.
The main drawback is that it