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 and technology, and the focus of business.
Let's get straight to the rundown.
Apple plus new iphone five asked holds some clues about what could be coming down the company's pipeline.
Twitter's confidential ipo -- new numbers today show it is outpacing facebook and google in a crucial area.
Nissan is getting closer to bringing autonomous vehicles to a dealership near you.
Now to the lead.
Apple's iphone five asked giving us clues about its new products.
The motion sensor chip could be the doorway to motion -- wearable technology.
Shares are trading down again today.
Joining me now our reporter for bloomberg news and apple.
Let's start with wearable technology.
What is in there in that arena?
They are rds chips that analysts have been looking at for clues.
There's one motion sensor chip that apple showed off last week that could be a tool for crunching the data that you have on some sort of wearable device.
Whether it is your health stats, glucose levels, or anything that analysts are looking at.
This could be bad news for companies that already have wearable devices, right?
It opens this area and allows other platforms to use it.
What about this fingerprint sensor and payments?
It is a secure way, if you were to go by a tv, and you can use your phone as a payment method, and then instead of signing a signature, you would put your finger down.
It is a way of confirming the purchase and showing it is actually you.
A lot of people are vying for a piece of the mobile payment market from paypal to foursquare -- top square.
At the moment they have more than 400 million credit card on file, they have this huge network of people who are buying apps to buying music, to buying music -- to buying new movies.
If you can extend that into the real world, you could make it an apt in the store -- app in the store.
Would this allow you to swipe your phone at the counter?
A uses a different type of technology, but it does work in a similar way.
The last clinging or story -- thing in your story, how mac could lead apple away from intel.
Tell me about that, . intel and apple had a partnership for a long time, but now apple is partnering with a different chip company.
The chips in the iphone are custom-made, and as they become work powerful, they may be able to put those in the mac.
There was a story a while back about how there was a research underway at apple , but there's no indication that is happening any time imminently.
How far away good stuff like this be?
Do we have any clues about the timing?
Not right now.
There have been a lot of reports coming out about reports on wearable devices, like the one we saw from samsung.
The area is definitely maturing.
With payments, with things like square and what ebay is doing with paypal, these are things for people to be watching.
Could be iwatch be trademarked?
Greg japan and other areas have been trying to do that.
There are little clues there.
We are looking forward to what is coming after that it quite thank you for doing some investigating for us.
As twitter gears up to go public, early analysts see a skyhigh valuation.
Twitter would be valued at 17 times its current sales.
My partner jon erlichman is standing by in the newsroom with more on that part of the twitter story.
John, bring it down for us because we see valuations although after $16 billion.
Right now we are working backwards.
Once twitter reveals its financials and people can crunch the numbers on what they think the company's work, then ultimately we will be telling the real story of what the market thinks this company is working -- worth.
Up until now, we have seen the valuation of twitter steadily rise.
Because of the private market training -- trading in shares.
Twitter clamps down on that, and made it restricted, and that may be why there are so many wide- ranging views on the valuation.
Over the past couple of years you can see this has gone from a $4 billion valuation to a $10 billion valuation.
As you look at the growth of the evaluation, you then can work backwards what we have seen in terms of sales.
Paul covers twitter for bloomberg, and we join him now.
The valuation has grown to reflect what we know now as one of the hotspots of the bitter -- of the internet, which is social media.
You think about these books, but you also did thing about twitter.
It continues to enjoy extraordinaire growth in subscribers, and advertising dollars will follow that growth.
Based on that $10 billion valuation, 17 times in sales, it would be quite similar to what we saw with facebook when it went public.
Higher than google.
Why is that?
The expectation is that this company, you are catching it very early in its growth stage.
They have proven the model, that they have a service that consumers really want.
Well advertising -- the question is will advertising follows -- dollars follow?
We're getting early in its growth stage, so if it can deliver on some of the growth expectations out there, then this is something that can grow into the multiple good this is something we are seeing now post the ipo announcement.
It is growing into the multiple here as the company delivers on its revenue forecast.
Footers revenue is tied to mobile ads, and is as it made it into the $300 million this year.
The percentage is more significant than what we had seen at facebook, despite all of the talk of facebook's rising mobile avenue -- ad revenue.
Twitter is primarily a service that is enacted by subscribers on mobile devices.
They have worked very hard to generate advertising on the mobile devices, and clearly that is probably the number one issue for investors today.
The ability for investors to move from the desktop to mobile platforms.
For facebook, that was the primary metric that the market was looking at to gauge the growth of that story.
As soon as facebook was able to show that they were making good strides and the gr owth in the mobile platform, they made big strides.
They are in fact a very viable mobile advertising platform.
Paul sweeney of bloomberg industries joining us from new york on the twitter valuation.
Thank you, jon.
Will twitter choose the new york stock exchange over nasdaq?
Be sure to tune into bloomberg west tomorrow, i will be making with jack dorsey about his other company, square.
Keep watching bloomberg.com.
? this is "bloomberg west," on bloomberg television, and streaming on your tablet and iphone.
The next big thing summit is in new york city, and some of the most influence field -- inf luential leaders are talking about how it -- technology changes our lives.
How is it going out there, what is the most exciting thing you heard?
A lot of interesting stuff.
Companies big and small are present exemplary ideas.
It is like a walk in bloomberg west correspondent.
Big ideas about what the general trends are in the industry.
Rather specific things, i saw the ceo then -- i asked him for some tips, and he said selling retail items on phones have similar market shares.
Listen to what he has to say about selling on mobile, the differences between apple and android.
We have --w way more excess on apple.
We have 90% more coming through iphone and android devices.
This is interesting that entire businesses can be built around it.
That is the next big thing.
Is anyone out there talking about twitter and the ipo filing that we have been talking about?
There is lots of twitter talk around here.
What it means him as you can -- what it means, as you can imagine new york is very excited about the ipo and the traveling and what it might means -- the training and what it might mean for the company.
Part of the deal is the battle between the new york stock exchange and the nasdaq , who will get this iconic twitter listing because it might mean business down the road here it winning any transaction is more about relationships and partnerships and anything else.
So, we tried to create harder ships that leverages -- partnerships that leverage that.
We have 2000 companies that are listed on the new york stock exchange that are waiting for us to open up new opportunities for them to work with.
Customer introductions, introducing one company to another.
It is the largest b to b company in number -- network in the world.
For a technology company, is an opportunity to do business.
Even for smaller companies, it is an opportunity to create partnerships with vendors that we do business with.
So, we try to make those connections happen.
Oracle switched to the new york stock exchange recently from the nasdaq.
Oracle had a lot of lun that stock.
When did you say to oracle to convince him to move?
We have had several technology partner there -- partners there for several years.
It is really about harder ships -- partnerships.
You must have been doing an end zone dance when you got that done.
With their task customers and our top customers, the brand work very well together.
The ability to partner between the brands was something that we wanted.
The nasdaq went down a couple of weeks ago, does that help your market?
Doesn't help because people have less faith in the nasdaq?
It does not help because it undermines confidence as a general rule.
People have been focused on the quality of the systems and the quality of the infrastructure, and that comes to bear when people are making this decision for the first time.
Do you want the twitter listing?
They are a fantastic company.
It will be about the partnership.
It is one of the most visible transactions when it comes out, so the opportunity for brand associations is great.
But it is a one ipo out of a hundred that we are working with.
We will probably do over 200 transactions, so it is an important deal, but it is also representative of what happens when a company goes public.
Opportunity for investment, liquidity for investors.
Do you have the listing?
No, we will compete for it.
How does the business change when you look at it?
I've been doing the story for 15 years or so, but in addition to you guys having more merging technology companies, i wonder about the associations and how they have changed.
From my background, it was a certain type of company and a certain type of industry were that decision was made.
You did not sell ipos?
And none of them qualified to list.
We had zero percent or five percent of the technology industry, and now most of them are with us.
We compete very vigorously in that area.
We're looking at the difference tween the technology that has gone before and as well as the people they are competing for the capital.
The overlay and accountability is aborted.
Technology is important, and when it fails, as it does, to have people there to give us confidence is important.
Finally, how will the process work?
If you get the twitter listing, would you get a phone call, what will you get?
We are in initiatives with other companies that are thinking about listing several years in advance.
We know them from prior companies, so we're working with them as well, the whole pipeline of transactions that we work with.
The thing that we are focused on is how can we be helpful about education about the process, education about timing, how can we leverage the community and the network.
Those are all important discussions that would have been going on for a long time.
A locked of eyes focused on the new twitter ipo.
I was on the airplane yesterday, and guess who was just two rows behind me?
I can't even begin to guess.
Jack orsi was sitting two rows behind me.
I went to talk to him a little bit, and he is very cited about your interview tomorrow.
Yes, i will be seeing jack dorsey tomorrow.
Even cross-country, we have a mind meld.
He is looking forward to that interview, and people around here are thinking more about the financial transaction more than the business itself.
I'm looking forward to that interview as well.
We will be back with more of a new you -- the next big thing summit later in the show.
Remember, you can watch it streaming on your tablet, phone, and bloomberg.com.
? this is "bloomberg west," on bloomberg television, sprinting on your phone and tablet.
The surface tablet maker is offering a $200 credit to those willing to turn in gently used ipads.
The company uses -- suggest using the credit to buy a new service -- surface tablet.
It is now time for on the markets, julie hyman is a new york with more.
Let's take a look at where stocks stand right now.
We are trading near record highs once again.
The nasdaq is the laggards, it is only up a quarter of one percent.
Progress being made on russia and the united states as the agreement of moving chemical weapons out of syria goes forward.
Larry summers has withdrawn his name for consideration as the next fed chairman.
Janet yellin says that she would remove the stimulus at a slower rate than larry summers would have.
Let's take a look at what is going on in the commodity market.
We are seeing a decline in the oil prices today, and that is on the reduced tensions around the serious situation.
-- syria situation.
Time for more "bloomberg west.
" ? this is the early edition of "bloomberg west," i'm emily chang.
You can also catch us at our later time.
We are listening to facebook coo sheryl sandberg talking about her new book and people say they can't do it, but i tell young woman give yourself the option.
Make yourself more valuable, and your company will make you -- give you more like the billy -- flexibility.
Is there someplace geographically where this is picking up better than others?
Some cities, some states, some countries comes -- countries some companies?
We do not give most women one day up paid maternity or sick leave.
The sad thing is that this leadership problem is true of every industry and company in the world.
The united states is the best, but we still have a tiny fraction of fortune 500 ceos.
One of the reasons i wrote this book is that my daughter was very young, and she listened, she looked up and she said mommy couple why are they all boys?
It is a profound question.
Unfortunately, people think we have a problem in tech, finance, or manufacturing.
We have a leadership problem in every industry in the world and especially in other industries that we think are led by women, they're still led by men.
They can learn from some of the things that we do, but these gender stereotypes can be found all over the world.
The good news is, i think we can change it.
Once we recognize something, we can change it, and we can change it all the way.
What does the role of social networking companies played to raise awareness?
I think they are hugely important.
A used to be, if you wanted to say something to the world, you had to be in the senate, the ceo of a company, or own a local tv station.
Now everyone has a voice.
Every single one of the people on facebook and post, and some of the messages go viral, and can go to the far-reaching corners of the world.
So many issues have grown , i met a couple people here who are using facebook for their visit and come up with other nonprofits, and i think giving every single human being a voice is a huge part of the quality.
You're listening to a spoke's coo sheryl sandberg talk about women in leadership, and she speaking with u.s. senator -- the u.s. senator from montana.
Willie covering this more throughout the day in the later addition of "bloomberg west." officials in washington dc say multiple people are dead and another is hurt after a shooting in the washington maybe -- navy yard today.
The a's states has released a new report on the chemical weapons in syria.
They have convincing evidence that poison gas was used in the attack last month.
They have reached a revolution on syria.
Words -- work started today to rescue the wreckage of the cruise ship costa concordia.
It was laying on its side after it sank 22 months ago.
It will be towed to port to be broken up.
Technology is changing the way a world learns.
One of the company's embracing this innovation and education brought in its technological platform, and overhauled its learning systems.
My partner jon erlichman -- cory joins me again from the next big thing summit.
Rosetta stone has embraced technology, and the ceo joins the.
talk to me about how your technology is embracing this.
We started as a learning company.
We use technology to enable the learning of a so technology is a critical part of our company and our dna and an enabler to our mission, which is to have our customers learn.
How is it from individuals to corporation?
About 30% individuals, 70% corporation.
We have gone through a transformation, we've gone to the cloud, we have pushed onto mobile.
All of our viewers are going through this, and trying to figure this out.
Talk to me about what you have done on the cloud to help change your business.
We bought a company called live mocha and that allows just full -- allowed us to push into the cloud.
You want to be with you wherever you go.
You also learn in small chunks, so these notions of 90 minute lessons are kind of yesterday.
We learn a 15 minute intervals, and as long as you're engaged, you're learning.
What to write for?
It is android, it is iphone, do you taylor for mobile only or do you adapt at all?
The emphasis is on mobile, tablet, and phone but learners learn at their desks,a on their tablets, and to their phones.
You need to have connectivity to be able to sync data between the devices.
Are you putting your bets on a certain device and how do you make that decision?
We are native to the ios and to the android.
Android is the most popular, so we built for a lord -- or it and for the ios.
How do you figure out who your customer is spurs is what the platform can offer, what do you see when you look at those android customers?
They look like customers who are learning.
We have people standing between stations in tokyo with our product and a pair of 10 -- headsets who is learning english.
We have an eight-year-old in korea who is learning english, and that is a customer.
We have 8000 workers in colombia learning english to you will drive a taxi.
We enable teachers to be more effective in classrooms in the u.s., they are our customers.
Is this all technologically driven change?
We are working to dis tribute our product so that you can get a taste, and then if you like it you can come to our website and get it.
We want to open our product up, make it free to taste, and for those interested come to see us and we can get you what you need.
Greg thank you very much.
Thank you, cory johnson at the next big thing summit in new york.
We will have more after the break.
? this is the early edition of "bloomberg west," i am emily chang.
You can also catch us at our later time.
Six -- facebook did $6 billion in advertising last quarter.
How is it working to create its mobile ads, we look at the design team media cap and eight -- making it happen.
We look at tools for online ads.
Josh williams is one of the designers making it easier to advertise on facebook.
The easier it is, the more advertising facebook can sell.
Put in that image, put in that video, or that piece of copy that is really going to get across that message to your customer and help you connect with them in a meaningful way made facebook not this -- built this team by building design teams.
When you look at the designers responsibility to the world, design becomes a worthy industry.
Quick they work with millions of companies around the world including you google, ebay buying yahoo.
This company really loves old ideas, and -- bold ideas, and acquiring how to studio was -- hot studio was a big move.
Allows advertisers to look at what we currently have and make it better.
They are helping brands use facebook to reach the customers with better designed ads.
That it was our look at facebook house mobile ad design team/ . we'll have much more in just a moment.
? i'll come back to "bloomberg west," i am emily chang.
Design is becoming ever more important in technology these days, and someone at the forefront is the president of the rhode island school of design.
Cory johnson caught up with him at the next big thing summit, and asked him about the latest trends.
Apple is a design-based brand , it is kind of a challenge.
Technology used to be the differentiate factor.
Design almost matters now because -- more than the technology.
It can do much more than we consider, we wanted to look nicer and work more elegantly.
We want something that matches our pages and our desires -- our pace and our desires.
Could that be part of the decline of microsoft?
They need a new chip that is faster enough to run the new windows.
100 megahertz, while -- wow, we don't care anymore, because we do not want faster commuters, we want one that we like.
People look at the iphone as technology design.
What is your pinnacle of technology design?
In the 60s, all of this and everyone could make a different car.
That was designed.
. d.c. technology getting into that place -- do you see technology getting to that place of elegant design?
It is getting to the consumer level, and going deeper.
How we design the infrastructure of the web and the internet is now a split role.
The great storage apis him a the apps go through very simple guidelines letter -- and pipelines that are elegant.
The technology has to be designed better.
Part of it is just code.
Quote the question is how do i make this desirable?
Good technology boy -- i have good technology, but how do i make it desirable is a good question.
I do not see it very much in areas where they keep doing the same thing over and over.
I made a, earlier today about small businesses getting better.
Moving from an economy of santa's elves to fairies.
We need better apps to function better.
What do you think of 3-d printing?
It is in a great boom right now, but it -- we are not used to it.
A 2-d printer, we are so used to that.
A 3-d printer makes things in 3- d, and we do not spend our time making things in 3-d as adults.
We work in 2-d, so it will take time to develop.
That was cory's interview with the president of the rhode island school of design.
More coming up.
? welcome back, i am emily chang.
Coming up on the later addition of "bloomberg west ," we look at the world cup special.
Larry summers has removed himself from consideration to be the next fed chairman.
So who will replace ben bernanke now?
President obama addressed all of these questions on the fifth anniversary of the financial crisis.
I am joined here by the national economic council director.
The collapse of the lehman brothers, the five year anniversary, by all accounts the banks are better, the wall street ceos are still doing really well.
Is this really a top heavy recovery?
I do not agree with that.
If you look at the reports that came out today that looks back at the most difficult and controversial measures that the president instituted as -- under enormous the circumstances, and look how they turned out, what you saw was that in a number of key areas the results have been better than anyone in 2000 and nine would have projected.
It was widely assumed that tarp would cost over 150,000 -- $150 billion to the taxpayers.
It is actually turned a profit.
I do not know if anyone in 2009 thought the investment in aig would have turned a profit.
We lost or hundred thousand of -- 400,000 jobs, and now we are up 340,000 jobs in june 2009. that is an example of how the financial stability steps that we have taken has manufactured jobs.
We will be the first to say that we still have a lot to go, and we do not want to go backward with a self-inflicted world -- wound.
It all goes back to those threatening to default the united states's loans.
What are the chances we will see a government shutdown?
There is no reason for that.
There are lots of ways for us to avoid the government shutdown.
There are ways to have -- to either work something out, or have a short-term bridge that would allow people more time to come up with a better way to replace the sequester.
We can do something that is pro- growth now and that is good for long-term deficit reduction.
The challenge is the house of representatives.
They have not been able to put together majorities on things that have any chance of passing in the united states senate.
The uncertainty about the next fed chair, is janet yellen now the leading candidate?
The president makes all those decisions, and any effort that -- any good staffer lets him make those.