Live from pier 3 in san francisco, welcome to the early edition of "bloomberg west." i am emily chang and their focus is on innovation, technology, and the future business.
Google and motorola reveal the new moto smart phone today but with apple and samsung owning what could be a shrinking market for high end funds, is it already too late?
Marissa meyer is a system of lumber to talk about her first year as ceo.
-- sits down with bloomberg to talk about her first year as ce edward snowden finally leaves the airport in moscow so find out what really happened when the government comes knocking.
We will ask a tech ceo experience it firsthand.
We are just two hours away from the unveiling of the newt google androids mark on, the moto-x. is the first motorola mobility products developed under googled guidance after google bought the company for $12.5 billion last year.
It is also made in the united states with assembly in texas.
Google is diving deeper into hardware and we will learn more about the specs the device.
A number of google stars will be in attendance including eric schmidt and dennis woodside and john ehrlichman is also there and joins us from outside the event in new york.
Let's talk about how this phone could shake up the google mobile strategy.
I think it is really important.
You mentioned the fact that having somebody like eric schmidt to attend an event like this potentially tells you how important it is.
This is the first big product to come out of motorola sense of the google acquisition.
That means there is a lot riding on this.
We know there has been a redesign to focus on more singular and stronger products.
They will try to win a way into that phone market.
Keeping android on top is so critical to google.
They want market share gain vs apple.
They have done this already to a certain extent with the nexus device.
If they can keep pressure on their partners in directly to keep coming out with better android devices, that will ultimately help google in its service is being used by millions, maybe billions around the world and helps the story of advertising which is what fuels the google revenue.
Let's talk about the features.
We have heard a little bit about the fund being highly customizable.
What will set this bonaparte?
-- this phone apart.
? there are sensor technologies that motorola already has that knows where you might be at any given time and how that might benefit the end user.
It is also about how the battery power performance will help this device.
As importantly will be the pricing of the phone.
Google might have more control over the nexus devices and the pricing and against to the end gain question -- what is going to determine success for this device?
Will it be successful if they sell so many phones in the first month?
Samsung sold something like 10 million devices in its first month.
Or is about changing the way that motorola is viewed at the end experience is?
We will come right back to you but first, i want to talk more about the moto x being formally unveil today.
What could it mean for the google bottom line?
Sam grobart call look at how important this is for the company behind it.
12 years and $12.5 billion ago, google acquired motorola mobility.
Motorola has made smart phone since then that it has not mattered.
The next one that is because the new phone is the first one to be developed entirely under the google watch.
Google wants to get into the hardware business because that's for the money is.
98% of the products are split between two companies, apple and samsung.
The google mobile strategy until now has been based on the kind of complicated bank shot.
They will make the mobile os called and tried and given away to smart phone manufacturers for free because the more smart bombs there are, the more mobile online traffic there is, we can make money on that because we sell more on-line ads than anyone.
Apple and samsung make their money in an old-fashioned way.
They make a device for one price and sell it for a higher price.
Seems to work.
The samsung profits just for mobile are greater than all of the google profits put together.
The moto x is the first effort to get in on that action.
Sam is with us now from new york as well as jon erlichman.
You have done a lot of work -- research into samsung and have been to korea.
How does google strategy with the motox compare and is the strategy could reject entirely clear?
It is not entirely clear if but is -- it is developing.
When you compare google to samsung and you're talking about manufacturing, there isn't much of a comparison.
Samsung is a much bigger and more vertically integrated and so vast that google will have to take a different approach.
Samsung bills every kind of smart phone in every size, shape, color for every market and carrier and every person.
Google will have to be more focused with this particular model and see where it takes them.
From that, a clearer mobile strategy may emerge.
Google paid $12 billion to buy motorola.
In terms of the money, how do they make that investment worth it?
I think some people are still trying to figure that out.
A huge chunk of that google has said was patent protection.
We continue to see that legal fight between the likes with apple and others.
A lot of that number is baked into that.
I think there is this ability and we have heard this from eric schmidt in the past, the fact that they always wanted to be in the hardware business.
Here is an immediate way to jump in there and learn a lot and now potentially be in a position where you are taking the manufacturing expertise of motorola and bringing a little googled magic to the table.
Samsung obviously has spent a lot of time and energy on its operating system.
Announced as like this are important to watch samsung and how it fits into the store at a time when some are wondering when they tried to distance itself from android, not to be completely reliant on the power of and dry.
If and troy gets more powerful, google gets more powerful in this market, too.
Some say it has not been much innovation in the smart bombs over the last couple of years.
They say that changes have been incremental.
Why is someone going to buy a motox over and iphone?
Is it too late for motorola?
I would never say it is too late.
An amazing product can come out and surprise us all.
That being said, we have seen many other companies tried to crack into this market lately.
We sought nokia not working so well.
Htc working out so well.
It is a tough pill to climb between apple and samsung particularly in the developed markets looking for a high-end product with presumably they moto x is going to be.
And especially where the market has become more saturated.
Thank you both.
John ehrlichman will come back from the motox event in new york.
We will speak with the motorola executives including dennis woodside.
When marissa meyer joined yahoo!, many ask why she would leave her perch at google for the struggling web site and we will get her answer coming up and you can watch us streaming on your phone, your tablet, and bloomberg.com.
? this is "bloomberg west." shares "yelp surging to a record high after the review website posted strong second quarter earnings after climbing to $55 million and the company posted a smaller than forecast a loss.
Advertising from local businesses jumped 77% and partnerships with open table and apple helped boost users.
Linkedin and is due to give as its latest quarterly earnings report today.
Things have been going well lately with user numbers and ad revenues on the rise.
What can we expect today?
Michael patrick joins us now and has a neutral rating on linkedin shares.
He joins us from los angeles.
Linkedin has been every single earnings estimates over the last eight quarters.
Are you and expecting them to do the same today?
I think there will absolutely crushed on earnings for the revenue numbers probably will come in close to consensus.
That implies $50 million in sequential revenue growth on the $300 million base.
Their guidance is kind of a joke.
The ibita would be down.
That is simply not possible.
The street is sequentially flat and i am sequentially up and i think there will crush.
Linkedin has three core revenue streams.
Which one do you think as the most opportunity?
Which one are they not maximizing?
They have not even scratched the surface of what they call talent solutions.
It matches up job-seekers with hiring corporations.
There is recruiters in between frequently.
If you think about their base of 230 million members, the average professional employee changes jobs every seven years.
30 million of those members are jobs seeking every year.
Assume there is $1,000 of value in the system that some recruiter or corporation or job seeking employee combined are willing to spend $1,000 to make that trade happen, that is a $30 billion opportunity.
Linkedin is barely doing $1 billion this year from that segment and they are the only guys doing this.
There is huge potential in sallet solutions and the other two pale in comparison.
In earlier days, we talked about how linkedin was competing with facebook.
It certainly seems like they have become more differentiated recently.
Yet both of them look for advertising and are trying to attract more ad dollars.
What you think about the facebook push into advertising and whether linkedin can live up to that?
I don't think is a fair comparison.
We go to facebook to learn what our friends are up to.
None of us go to linkedin to learn anything.
We go there because we are getting annoying reminders that somebody wants to be your friend.
There really is no reason for the average person to go to linkedin unless they are looking for a job or they are a sales person looking for a contact.
The number of minutes spent on linkedin is probably 5% of the number of minutes spent on facebook.
It is not close.
We talked about the problem before and some people call it linkedin spam.
Do they have a problem sending people to many messages?
I think they do.
They don't really need me as an intentional -- as a potential employee.
They need me to know they are there and show up when i look for a job.
They need me in the database.
So they can offer my resume to a prospective employer.
They are pressing their luck in trying to drive traffic and that will alienate some users if people quit.
The reason we don't quit is you never know when you'll need a job.
You want your resume and they're just in case.
What about the original content strategy?
It appears to be an attempt to drive traffic.
Ultimately, i think that will work but they've got to get the quality of content to improve dramatically to get us to want to use it.
That just started.
I think that actually has a potential to drive traffic.
Michael pastor, thank you for joining us.
We will have more of "bloomberg west,"in just a moment.
? we have breaking news -- one day before dell shareholders are set to meet and possibly take a vote on the dell buy out, we are getting news that carl icahn is planning to sue the company and the adult board.
Icahn is trying to stop all from changing the record date.
We go to new york with the latest.
What does this latest twist mean?
Carl icahn said he was prepared to litigate and here he is fulfilling that promise.
As you know, we have been waiting to hear back from michael dell and silver light.
The special committee came back with a counterproposal yesterday saying that willing to change the record date so long as silver lake and michael dell kept the $13.75 offer.
Carl icahn is saying that the board is breaching its duty because it keeps delaying a the votem, trying to steer the deal to michael dell and silver lake and he thinks the process has been conflicted from the beginning.
He is going to sue as a result.
The theory is that if you move the record date, you allow more shareholders to vote that got into the stock thinking the deal would get done at $13.65. carl icahn wants the vote to happen tomorrow because he knows that the deal will likely fail at the record date does not change.
Why is that?
This is what has played to this deal from the beginning.
It is the way that michael dell and silver lake negotiated the merger agreement.
In the merger agreement, it required a majority of all shareholders of the pool all shareholders to vote in favor of the deal.
Under that contract, people who abstain from butting count against michael dell and silver lake.
What they wanted to do was to basically have abstentions not counted all, not have that work against them, and they could not get the special committee to agree to that because the special committee realized they would be taking on a severe litigation risk by doing that.
Again, this was a shareholder protection.
This was supposed to be something the special committee negotiated to protect shareholders and make sure this process was as fair as possible.
I feel like i have been asking you this every week -- this date continue to get pushed back.
In your estimation, what is the likelihood this will happen tomorrow?
Was the likelihood that this deal goes through?
The sources that i have been speaking to told me that there is the potential that michael dell and silver lake and the special committee will come to some kind of agreement.
That would have resulted in the vote getting postponed again.
As part of the agreement, you have to change the record date and if you do, you have to change the shareholder vote and give them some time to consider this new deal.
What we were planning on happening tomorrow or what we thought would be a likely outcome, is another postponement.
Delaware judges don't like it when companies postponed a shareholder votes because they see it as a manipulation of the outcome of research in the event.
That is the scrutiny that will be around this deal and that is what carl icahn is capitalizing on.
He is saying that there will be more shareholder lawsuits and this is the first one.
This process was not run correctly are fairly for shareholders and i am suing.
I'm sure this story will be developing by the minute and we will be watching it.
Cristina alesci in new york.
Carl icahn planning to sue dell and to the board.
It is 26 past the hour which means bloomberg is "on the markets." let's take a look at how the markets are trading.
It is a sea of green out there.
The dow is up over 110 points, the s&p is up 1% after if we had the best month for the s&p 500 since january, two key data.
For driving markets higher.
First, better than expected numbers on u.s. jobless claims at all lowest level in five years.
We also got some better than expected numbers are u.s. manufacturing.
The ism index came in at the highest level in two years.
We are watching big names this morning like farmers' market.
Shares are surging 100% on the first day of trading.
The company had priced at $18 per share but opened today at $35. there are some have the execs over there.
Automakers like ford and gm are both up after reporting u.s. vehicle sales rose and deliveries are up 60% and ford saw the sale of cars and light trucks climbed 11 cents 08 sea of green.
The s&p as surging past 1700. thank you.
We are just a few hours away from the repeal of the moto x , the google and motorola answer to the iphone and we go live to the event next on "bloomberg west,"and you can streaming on your phone, your tablet, and bloomberg.com.
Watch ? ? this is the early edition of "bloomberg west and you can catch us at our leisure time.
-- an hour later time.
Secretary of state john carey is trying to mend fences with the pakistan government.
If he is meeting with the prime minister today.
He said the obama administration hopes to end u.s. drone strive in pakistan, a program that has caused tension between the two countries and the two have pledged to restart top-level talks on security and economic issues.
The white house has ordered the drafting of new rules following that deadly explosion at a texas fertilizer plant in april.
The president has given federal agencies 90 days to come up with ways to safely handle and secure ammonium nitrate which is the chemical responsible for the explosion.
14 people were killed in the blast and dozens of buildings were damaged.
The u.s. has posted some strong manufacturing numbers for july.
Manufacturing expanded last month at its fastest pace in more than two years.
High demand for automobiles and materials tied to the housing market are helping fuel the gains.
Yahoo shares have lead to more than 75% since marissa meyer took over as ceo last july.
The company has acquired 19 start-ups, released a series of new apps, updating yahoo!
Of mill and reduced employee attrition by 59%. does she have what it takes to save the company?
Does anyone have what it takes to save the company?
Brad stone looked into that and sat down with marissa meyer herself.
It has been a year since marissa meyer left her comfortable perch at google where she was one of the first engineers and joint yahoo!, a company that everyone in silicon valley has counted out.
For years, it had a talent problem where the smartest employees were leaving and finding opportunity elsewhere.
The jury is still out on how marissa meyer has done at yahoo!
Over the last year.
The stock is up but that is partially on people's enthusiasm for the yahoo!
Stake in ali baba.
One thing marissa meyer is doing is nre-focus in the company on mobile and she thinks the emergence of smart phones is important.
She has created a mobile group to create well-designed applications around the things that yahoo!
Does best and where it still has a big audience, things like yahoo!
And mail and messaging or photo sharing and the primary new site.
It faces a tough uphill battle with mobile because they don't have a lot of assets like apple and google and amazon have.
They don't have hardware and people wonder why marissa meyer would have taken this job.
One story she tells is how she almost thought she did not get the job.
She says on the night she was supposed to hear from the board, she had not heard from them and it was 1.5 hours after they were supposed to call and see said it was disappointing.
It is a sign of how much opportunity she saw in a company that many people in silicon valley have counted out.
Brad stone joins me now in the studio.
It is striking how much she wanted this job.
We did not know how much yahoo!
Was trying to recruit -- recruit are and how much she really wanted to leave and go to yobbo i heard she had told this story around silicon valley and asked her about it.
She had interviewed in total secrecy for the yahoo!
She had to whisper product -- project cardinal to the limo driver.
She was supposed to hear at 8:00 that night and was at a dinner party with her husband.
At 9:30, she had not heard anything and concluded she did not get it.
She was despondent and said she had seen these opportunities at yahoo!
And was disappointed she was not going to get to do that stuff.
Then she got back to her car and she has a message from the headhunter.
It is interesting how readily she had that message available.
It was a motivational memento for her and a reminder of how excited she was to take the jobs.
, was it wanting to leave google and wanting to save yobbo?
I don't think she will give us the honest truth about what kind of change she wanted to make in her own career.
She was one of the best google evangelists.
She has that credibility to talk about surge.
She was often in front of the cameras.
And she is bringing that same stuff to yobbo.
They have 700 million users, these daily habits she talks about.
There are tons of challenges ahead but clearly, she sees opportunity.
Where does she see potential that others did not even before she took the job?
What does she think she can do that will save the company?
The key to our story and a big bet she is making is clearly on mobile.
Everyone is trying to harness the mobile platform shift.
It is a big enough to shift that the hierarchy gets scrambled and losers turn into winners.
Does not have a lot of assets like apple or google or amazon.
No operating system, no hardware.
But they're building teams and going after the mobile opportunities with tenacity and we will see if they can bring their customers over.
It really is a great piece in "bloomberg business week" marissa meyer on the cover.
We will be right back.
? this is the early edition of "bloomberg west." motorola is hoping to make a big splash in the smart bomb market with its new-found, the company now owned by google is set to unveil the moto x in a few hours.
Google is bring out the big guns for this phone?
Google chairman eric schmidt has been giving tidbits about this for the last several months.
What makes this launch difference?
I think it is the firepower behind it.
There are a lot of great smart bombs on the market now.
There may be smart phone 30. if you want to sell a hero phone that people want to buy regardless of the carrier, the iphones are in that camp and in some cases, the samsung galaxy devices.
Htc had one phone that got good reviews but it was tough for them to sell.
The difference with this device for motorola is when you have google behind you, you have marketing power.
There have been reports of hundreds of millions of dollars being spent on the marketing of this device additionally with the new motorola within google, the idea of having a single device that can get out there and have bigger status means there is a potential that could have a rollout with more carriers than building the droid line of funds for verizon.
How does this -- how does the plot thickened in the apple versus google story line?
There are a lot of ways we measure who is doing what and who is winning.
We do look at the number lookphones that are sold but it is about everything that happens in your phone and google is pushing ahead aggressively google play vs similar media that apple offers like itunes.
This becomes important when we start thinking about the global story of smart phones.
Well apple, with a cheaper phone so it can grab more market share in emerging markets?
Google is already looking at that in a big way.
That helps for more of this media to be sold.
That is another big business theme behind the announcement today.
Thank you and you will be reporting live from the moto accidental day and you'll speak with the motorola ceo eric schmidt -- woodside.
-- don of the woodside.
It seems lately like we are living in the age of the hack attack.
Cyber espionage against american companies and hackers stilling financial data like credit card numbers.
It is enough to spark what symantec said as is the new threat economy.
I asked him what role these attacks may have played in the growth of symantec.
It is hard to correlate directly but our enterprise security business for 9% in the last quarter and as a pretty strong performance.
Because the threat environment is more challenging and the consequences of getting hacked are more serious and significant, i think that helps explain why the market is growing strongly.
You mentioned that hackers are becoming more sophisticated.
Let's talk about the attack on "the new york times." they had symantec off where in place but it did not work.
How do you stay relevant?
It is important for all customers -- i cannot, as the cynical about and a customer -- but they need to use the latest technology.
One example is that our older products had only anti-viral software but last year, 51% of attacks were captured by oursnoar behavior or reputation capabilities.
We can fight offapt but you have to have the latest and greatest software and as a challenge that many companies have in this spending environment for you have to have the latest because the attackers are more the latest attacks have been supported by fire walls.
They say these are not symantec strengths.
What customers need and i have been traveling around the world -- customers need protection at the end.
And protection in the network from firewalls and any protection in the data center.
What customers tell me and the people most knowledgeable is that we need a multi layer, multi tier system because the attackers are so sophisticated.
Our strategy is to partner with people in the firewall our next generation and focus on solving the the customer problem as opposed to trying to do covering ourselves.
I feel like that is the right strategy for us to deliver real value for customers.
Do you think hackett tax will get worse?
-- pack that tax will get worse?
I think the threat environment continues to get more challenging because of the explosion of control.
. you still have to protect your pc even though they are growing -- they're not run like they used to, you still have to protect it . you have to protect your car and your home.
I saw a study that said 30% of home networks have malware installed.
As we move more toward the internet, it is great for many aspects but from a security point of view, it takes a whole new set of challenges for consumers and businesses and countries.
That was the ceo of symantec and you can't catch the full interview streaming on your phone, your tablet, and bloomberg.com.
. still ahead, what happens when the government comes calling asking tech companies for user data sets?
We talked to acl this has happened to his company, next.
? welcome back to "bloomberg west." edward snowden has finally left the moscow airport after russia officially granted him temporary asylum.
He stayed inside the airport for 39 days and is now headed to an undisclosed location.
The temper asylum will last for one year and allow him to travel freely throughout russia.
The obama administration says the u.s. is extremely disappointed in the russian decision to grant him asylum and says it is considering whether to cancel its upcoming summit between president obama and vladimir putin.
The least put a spotlight and government requests for data.
What does happen exactly when the government asks tech companies for user date dead?
One company that experienced it first hand is the utah-based x- mission.
Citing the first amendment, it has rejected law-enforcement requests over the years agreeing to just one from the foreign intelligence surveillance group.
I talked to the ceo and asked him why he decided to go public with his story?
We were being asked by our customers what our policy was.
In may, we published a transparency report that detailed the requests we receive not only from the federal government but from local governments.
There was even one request that came to that part of justice from italy.
If we feel like they're out of jurisdiction -- this is on the advice of our attorneys -- or if it is not a proper warrant, we will refuse them.
What do you think about how brutal, facebook, apple and other tech companies have responded?
How do you think they responded to their cooperation with the government and the coverage of that relationship?
The ft edward snowden says is correct, it is disturbing.
If i was to receive a broad request from -- for monitoring all of my customers or a large set of customers, i would refuse it because i don't see how they can support probable cause against all of my customers.
Probable cause is necessary for the creation of a warrant.
I don't believe every single one of my customers is involved in a crime so i would look upon all sell monitoring suspicious late as something that is not being used to solve a particular crime.
If google and facebook and apple and others have done that, i wonder why because they get bigger legal departments than i have and they have more resources than i have.
They should not have an excuse for doing it.
They are just trying to be in the good graces of the government.
Have you heard anything from the federal government since he started speaking out about this?
It has been a deafening silence.
We have usually -- we usually receive a work request quarterly if not more than that.
We about received any requests from law enforcement at all since i published our transparency report.
Would you recommend that users do?
Ask their internet service provider and ask the people that was there even ask the people who boast their web pages with a policy is.
I know there are other independent service providers in california.
Sonic.net one we have communicated with that holds a similar policy.
If there was a poster or e-mail poster does that answer the question in the way they agree with, it is time to switch.
That was xmission ceo and you can catch the full interview streaming on your phone, your tablet, and bloomberg.com.
More coming up just after the break.
? welcome back.
Coming up on the late addition of "bloomberg west, "we are hours away from getting our hands on the new google moto x phone and we will talk to dennis woodside at 3:00 p.m. pacific.
It is time for "bond markets." -- " on the markets." you can see equities are surging and the s&p is crossing 1700 for the first time ever.
The dow jones is up almost 120 points.
This is a pop we are seeing in oil up almost 3%, hitting its highest level in over one week.
There is also positive manufacturing did they hear and china and the lowest level of jobless claims in five years and big names you want to highlight.
Let's start with directv, the company down 4% after reporting profit and sales if that mr.
Micron is seeing a pop today after completing a $2 billion acquisition which increases their flash memory production.
Finally yelp sir jiang to record levels after earnings beat -- surging to record levels after earnings beat estimates.
It is climbing nearly 70% in the second quarter.
Another name as t &g and julie hyman joins me.
Maybe walk us through the number of why this is on the upside.
Company came out with earnings that beast -- the estimates.
There were down about 40% but that is because procter and gamble sold "pringles." if you take out that defect, -- if you include the effect of that can you get a drop.
Sales rose about 2: 2%. this quarter was its first upon returning to p &g. bob macdonald was the ceo and then bill ackman pushed for the ouster of bob macdonald.
This text has been automatically generated. It may not be 100% accurate.