Google Ramps Up Battle for Auto, Television & Wrist
June 25 (Bloomberg) –- Bloomberg’s Jon Erlichman and Cory Johnson report on today’s takeaways from Google’s Developer Conference, including their new products and technologies in development and where the company is focusing. They speak with Trish Regan on Bloomberg Television’s “Street Smart.” (Source: Bloomberg)
The market is ending the day higher.
The s&p 2000. the dow jones at 16,800. there was bad news on the reprint of gdp for the first quarter coming in far worse than had been anticipated.
Cbs is the best performer here today.
It is up about -- let's take a quick check.
Let's get the stock.
6%. let's bring in heather loomis, the director at jpmorgan.
The head of connotative research at global asset management.
The chief strategy officer at another group.
We have been talking about how the market is responding rather positively despite this really bad gdp news.
Is that in the rearview mirror?
Do we need to move beyond it?
I would say so.
The gdp number is annualized.
It is multiplied by 4. it is a bigger number than it really is.
You have to divided by four to see what happens in the quarter.
We see among the components, the ones that suffer restaurants and the services in general.
That is an effect on people to knock out of the house.
You have bad weather like what we had in chicago.
It is understandable that it is a one-off situation.
The market responds positively.
It expects the economy to keep chugging along.
We have some good stuff out there.
You've been watching all of the car sales.
I was talking to hundreds.
He runs the north american business report.
Our numbers suffered because people could not get out of the house.
And simmer spending has bounced back nicely.
Jude is panning out quite well.
Obviously we are going to hit more than 16 million total industries.
The car market looks healthy.
I am not saying it is superstrong like 2000 six, but good.
Just to confirm everything you are talking about, we a record number of retail shopping centers since the recession began.
Especially since it ended.
We're going back to 2010. it is the first quarter.
It is obvious that the jobs we added, despite the negative gdp, it has translated into demand.
One interesting thing that i noticed is that there was a disconnect between the bond and stock market.
The stock market investors shrugged it off.
They looked on the bright side of things.
At the same time, treasuries were up.
That would seem to indicate some pessimism.
That is a disconnect we have been seeing.
We haven't seen a big disconnect for the majority of the year.
Usually they are in counterbalance to each other.
If you think about it, the bond market has, if you separated into fundamentals, from a fundamental standpoint, whether growth that 2% or below that, the bond market should be a reflection of the level of growth and inflation in an economic is the stop we should be closer to that 4% range.
The market is incredibly strong right now.
You are looking at a lot of demand as people reallocate their folios after a very strong year in 2013. that would curtail supply.
It is up 50%. combine that with europe and you have a cocktail for yields falling lower.
It is a manipulated market.
It is not like a free and open market.
Centurylink -- central banks are in flight.
From a hard asset perspective, everything you are talking about has an optimistic forecast.
Job growth is pre-solid.
You have hard assets are our seeing more demand for the product.
Interest rates are low.
Acids like marshall real estate are offering an alternative.
We will leave it there.
Good to have all of you here.
Coming up next, the newest android software feed.
Ottowa apple stop i will take you to the developers conference.
And on spinning off the business . investors like it.
I will be joined by the creator of disney and discovery network reality tv programs.
We will talk about what this means for distribution and how technology is changing hollywood's relationship with his audience.
It is all ahead on "street smart." ? barnes & noble's announced today that it would be spinning off into the reader business sales continue to decline in both departments.
Alex field, we ease ceo and asked why now?
If you look at where the company with a year ago, we have three primary businesses.
Retail, bricks and mortar, the college was this -- business.
These are bookstores we manage for different facilities.
And we have our online business.
There is much more certainty in the future of each of those businesses.
He decided to keep the college business and enough tied together.
Retail is doing better, but college is where the growth is.
When we cut a deal with microsoft in 2012 and created the nook media partnership, the college business was added to that structure.
We had to outside partners.
Microsoft owns 17% and pearson owns 5%. that is the structure we have right now.
The proposed separation deals of retail and media being separated.
How are you going to grow?
You will stabilize it.
In the next 5-10 years, it is difficult.
We are trying to take business 1-2 years at a time.
We have been under such fire and competition from other companies.
The fact that we have stabilize the business and basically leveled off our core revenues is quite a compliment.
Their ways you can grow retail.
Those are not things we are ready to talk about yet.
Are you looking for a buyout?
The end result terms of what we are looking to do is brady businesses.
They can operate separately.
You have a lot of interest.
You have the founder coming in.
Liberty media wanting to buy something.
They are proposing to buy part.
I love my -- at what point would you want a buyout?
What we can do is management.
We will position the business to be as successful as they can be.
Someone will give you a premium for your business.
If we thought that the premium that you are describing for the business created a value for shareholders in excess of what we could create ourselves, we would have to look at it stop the barnes & noble ceo.
Have consumers demand for mobile computing -- google is listening.
The next version of the android software for smartphones was unveiled at the google developers conference.
Jon erlichman is there.
He joins the right now.
From san francisco, cory johnson.
What are the big takeaways?
They showed off hardware that was not theirs.
A lot of people are talking about wearables and smart watches.
Today we saw some smart watches, but they were not made by google.
They were powered by android software.
There was a theme here today.
Android has done pretty well in the world of smartphones and tablet.
Little devices like smart watches and televisions.
There is entry tv of software.
A few other areas.
I think people were expecting this.
Google is known for talking about interesting stuff.
You are left of the impression that android is looking for new territories.
Looking for new territory.
Will he get it?
Once you get the car, you have what you have.
One of the things that google is facing is that android phones are liked by consumers who use them.
The ed reed users are more willing to change operating systems then ios users.
One of the things google is trying to do with these new versions of android are places where in turn will be offered.
On the car, on the television.
They want to get the user stuck with the device.
They are using an injury device all the time.
They might be willing to change phones, but now it is in their car, they are not as willing to do that.
They want to lock them into that's his and make the phone something that is with them.
They remained loyal to the brand.
What are you hearing from developers?
Are they feeling that they will be loyal?
They are interested by it.
Two corey's point, a lot of the new software can speak to the existing software.
The car initiative, it is more about being able to connect your car to your entry phone.
-- android phone.
You are taking advantage of the apps and using them in the car safely.
With the tv, it is software.
You have the ability to control that areas through your phone.
All of those companies, amazon, google they want to control a big part of your life.
As the approach.
To some degree, the people most excited about this on a detailed level, there is a change in the operating system.
We have both apple and google with this substantial change in the way software is written.
It is supposedly to make that better.
The new system was very well received.
We will leave it there.
We will be watching all of that carefully.
Go pro is moving to content.
It cap into the cell the generation.
Does that justify the $3 billion valuation?
They will the public and we will talk about it next.
? a little break for some news we want to get to.
From bed, bath, and beyond.
These numbers do not look great.
It is interesting because the home improvement sector has been an area of relative strength.
Whether you are looking at home depot, lowe's, or the like.
Bed, bath, and beyond is not participating in that.
They are coming in below
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