Live from pier three in san francisco, welcome to the early edition of "bloomberg west." i am emily chang and our focus is on innovation, technology, and the future of business.
New revelations in the twitter ipo filing seems to reveal the date the company plans to begin trading.
We will tell you why the 15th of november could be the big day.
T-mobile shook up the industry with no context now it is rolling out a new global plan offering unlimited data and text.
Brad stone spoke to employees, family, and friends of amazon founder jeff bezos as well as himself and we bring you the first excerpt from his upcoming walk.
Just -- upcoming book.
The latest in washington -- house republican leaders have proposed a short-term increase in the debt ceiling in hopes of getting president obama to meet them at the negotiating table.
Julianna goldman is in washington with more.
Does speaker john banner think?
This will work this is the message he is taking today when he goes to the white house at 445 p.m. eastern time.
What this plan would do is extend the debt ceiling through november 22. it would perhaps set up a fight around thanksgiving.
Announcing the plan today, house speaker johnboehner said this proposal is meeting the president halfway and it's up to the president to show some leadership.
What we want to do is offer the president today the ability to move.
A temporary increase in the debt ceiling, an agreement to go to conference on the budget and for his willingness to sit down and the skies with us away forward to reopen the government and start to deal with america's pressing problems3 . this is why i say it is sort of a clean debt ceiling bill because they want to raise the debt ceiling for six weeks in exchange for negotiations on a budget, something to reopen the government.
This is what they will bring to the president today at 4:35 p.m.. will the white house go along with this?
Jay carney is speaking right now at the daily press briefing and he said this is an encouraging sign and says he is happy that cooler heads seem to be prevailing in the house.
The president strongly prefers a long-term solution but he indicates this is something that the president would sign.
All along, the white house has been saying is that raising the debt ceiling is congress's responsibility.
They would prefer to have the threat of the default taken off the table for an extended period of time but this is the way congress wants to operate, the president will keep signing short-term debt ceiling increases.
Where this gets tricky is because you can see a scenario where you have a six week extension of the debt ceiling but the white house says there is no negotiating over funding the government and the shutdown.
The president wants to see the shutdown and before he gets to the negotiating table.
He does not want the government shut down because the white house thinks that's what the republicans will end upcaing on.
Thanks so much.
We will cover this at 4:45 p.m. it has been one of the big mysteries since twitter filed for an ipo but now we may know when the company will start trading and the news may have been inadvertently disclosed by twitter it separate circle your calendars for friday, november 15. that could be the big day after twitter is updated s-1 shows that some employees can start selling stock on february 15. this could happen on november 15. we now have just 15 days until twitter can begin its roadshow under secrules.
Let's bring inari levy.
Date but this in the s-1 that employees can start selling shares on february 15. does this mean the ipo will happen on november 15? the report was put out and their case is that that's what twitter was indicating is the idea would be happening november 15. a small set of shareholders could sell their shares.
The date can change.
There is no reason between the lawyers and the bankers and the company and the investors they cannot say the market does not look great so we will push the date back or pull it forward.
This is not set in stone.
This was a mistake, wasn't it?
They don't normally put the information in this filing this early?
It is hard for us to know without having talked to the people who drafted the s-1. you don't have other dates in there which is curious and that would lead you to believe they did it on purpose.
They talk about 180 day lockup and that would be for the biggest investors and the executives and the board members.
It does not say when that 180 day period is so that would lead you to believe that perhaps this was left in there by mistake.
We know they can start their roadshow 21 days after the filing goes public and we are now several days into that.
That would put us at the last week of october.
Yes, you figure a two-week roadshow and after that you begin trading.
If all things go as we think they are planned and who knows what happens with the government shut down and the debt ceiling, if everything goes as we see with spaced on the numbers, we would be looking at mid november.
Could the shutdown change the timing?
That is the wildcard.
Nobody seems to have an answer because it is not just the the shutdown, it's the debt ceiling.
If the markets crater from here, it's hard to imagine that the people behind the scenes at twitter would say that's a great time to go out.
You don't want to go out in a situation where no one is buying stock.
Is there a danger that this gets pushed to next year because you get too close to the holidays?
It would be a less severe scenario for them to push the ipo out today cheered them to go out in a situation -- to push the ipo out next year than to go out in a situation like this.
They can operate partly fine as a company but it is harder to do that when you're stock is getting punished.
Is there any sense that the twitter ceo's exchange and not having a woman on the board and that criticism cause a snag and things?
I would say that is unlikely.
There are plenty of issues that companies face when they go public about the structure of the board and the structures of their executive staff.
Those things tend not to get away in the offering so they have 20 of time to smooth that out.
Thanks so much.
We will be watching the calendar very closely.
Although talk about the twitter ipo has brought a renewed focus on twitter's cofounders.
The story of how they came to be got an interesting twist as a "new york times " reporter paints and on flattering picture of cofounder and current chairman jack dorsey suggesting he embellished his role in creating twitter.
How closely does this twitter resemble the twitter of its turbulent early days.
? jon erlichman is in la and many people have left some people are still there.
It looks like a very different company.
I think people is the key.
The story you will hear from twitter executives to potential investors on the ipo roadshow is very different than those early years of twitter.
We have spoken to a lot of former and current twitter employees over the last few months.
This is a company that has been changed because of the people that are there.
Dick costolo is -- was an early investor but has received high marks for leading the charge.
There are a variety of executives we could highlight but for the purposes of time, you've got adam bain who is focused on generating the revenue, ali roghwani and we had reported that this is a company that mason double its office space in san francisco which means you are hiring more people and the push into all sorts of new areas will continue , broadening what twitter really is.
Twitter has also made quite a few acquisitions over the years.
I'm sure that has also changed the makeup of this company.
Yes, one of the most popular ways to get your hands on talent is through acquisitions.
They like to call them aqui-hi res.
Twitter has done in the neighborhood of 40 deals spending half $1 billion.
The recent purchases were the more pricey deals which helped that are connected them with madison avenue and get advertisers the right kind of face time they want with twitter users.
Think about deals like vine which made it an interesting deal and the purchase of summize which allowed them to bring search capability to twitter.
This is all the data that is there.
We saw in that filing that most twitter revenue comes from advertising but at chunk of it, 13%, comes from licensing all that data to advertisers or marketers, companies trying to make sense of all the twitter talk out there.
Jon erlichman, thank you.
Still ahead, the t-mobile plan to shake up the wireless industry with a new partnership with international pop star wsshakira.
? to you mobile just announces latest plan to shake up the wireless industry.
The phone carrier will eliminate fees for data and text messages and hireling in over 100 countries.
It plans to simplify international calling rates by charging a fixed rate of $.20 per minute trade the news was announced at a big press event last night in new york city where the international pop star check era performed.
She is the new face of t-mobile.
Or more on what they are calling cap --uncarrier 3.0 - this sounds great for customers.
How does the math work out?
The math is beautiful.
Let's make sure we get a couple of things straight -- uncarrier 3.0 - since i got here when you're ago last week, i have been trying to solve customer pain points and there has been many we had to sell starting with complicated rate plans, high upfront prices, no contracts, anytime upgrade and we have moved onto one of the biggest pain point for many people which is the fear of overages and restrictions from the second you move from one side of the border to the other.
What we have offered to our customers is free international data roaming and texting to 115 countries in the world and $.20 per minute for voice between those countries were back to the u.s. this is a multibillion dollar revenue stream in the united states for the carriers.
They are gadget and you.
The gross margins on this revenue are between 90-100%. the misnomer everybody has is that the reason these prices are so high is we are just passing on things we cannot control.
It's not true.
The benefit i have is this revenue is not really that great for me.
I am able to give it free to my customers because it is still a profitable business for me.
It is an outrageous push of either official -- of artificial high prices.
We are fighting that.
T-mobile had a younger and less wealthy demographic in terms of your customers.
How many of your customers really want international roaming?
You mean young like me is what you are referring to.
I hate to keep going off track, but since we launched uncarrier earlier this year, we have added more phone customers in the united states than verizon, at&t, and sprint combined.
In q2 these were prime credit quality customers.
We love both ends of the market and we believe we should serve both of them equally.
It's not the case that we are moving to a low end of customers.
We announced the second thing that is critical.
We announced something called stateside international talk and text so for $10 per month, you can call from own -- for no more than $.20 per month to 115 countries in the world and to land lines in 70 countries in the world, it's free.
Let's suppose somebody's mother lives in india.
If you have at&t without a long- distance plan, for $10, you can talk for three minutes.
We have the best plan and you can talk for 30 minutes.
You can talk all day every day free with our plan.
Clearly, the first offer i talked about should resonate very well with business customers but also with the basic person that moves across to mexico or canada where if you use your phone even a small amount, it's about $1200 per day.
Now it will be six dollars per day.
I think it will go both ways.
You guys recently gained 1.1 million customers, the biggest customer growth in four years.
Who are these people?
Is the demographic changing?
When at&t recently gave a press conference, their ceo talked about to you mobile gaining traction in the low end price sensitive part of the market i completely agree with him.
One small fact -- the low-end segment is about 90% of the market.
I think we are resonating with everybody that hates these pain points the carriers are pushing on them.
We will announce earnings next three weeks so stay tuned to see how this will continue forward.
Importantly, i did announce something yesterday that they should really worry about which is that our network is now 202 million pops which makes it nationwide lte.
We are testing faster than verizon and sprint in 10 of the top 20 cities in the u.s. i came this close to announcing that we had the nation's fastest 4g so i prefer to think of it that what i am announcing is at some point, i will announce we are the fastest but now we are the most reliable.
81% of the time you get six megabits.
That's an 11 song album and 32 seconds download.
That is something to think about as well.
You are sneaky.
I was going to give you an opportunity to say that it is good to hear that about the network is that's what has been preventing some people from switching over to t-mobile.
Let's talk about shakira.
How did you choose her?
I heard she will be doing unique content?
I have to admit to being starstruck after having spent last night interacting with her.
Shakira is the perfect person to launch the spreadsheet speaks seven languages.
She is the most followed person in social media with 73 million followers on facebook, 22 million twitter followers.
She lives in spain and is from: via and spends a lot of time in the u.s. and she really believes in this message of global communication.
We thought she was perfect for this.
We are going to do work with her and help promote her albums.
You will not see her being the spokesperson but we will collaborate on things that are of interest to both of us.
I will tell you, she can really stir up a crowd.
Last night, we did it different.
We did not have a press conference.
We had a celebration with their customers and she left us all completely in awe.
We will collaborate on things that are of interest to both of can you give me an update on iphone sales?
What about the most popular color?
Last time it was pink.
I don't know, i kind of like this iphone5 with the little gold.
I've got my little galaxy gear as well.
I am taking photos of you as we speak.
We were thrilled to be carrying the iphone at the new launch, it's very popular.
We had supply issues because it was in such great demand.
We are catching up with those right now.
Very popular device can you give me an update on iphone and, like everybody else, we sold out in a lot of things very quickly.
5s is very popular.
Get them all.
Get one of each.
It does not surprise me that you went with the goal.
Always great to have you here.
You are in leather jacket, i like it.
We will be right back.
? this is "bloomberg west." the cover of "bloomberg businessweek" is a secret amazon containing excerpts of the new book about jeff a's is set to be released on tuesday.
Here is a passage on the company's medication there is.
Read more and the book which its amazon and other stores on tuesday.
It is time for "on the markets." julie hyman is in new york.
Let's look at the rally we are seeing today in stocks as we are seeing increasing optimism that there will at least be a temporary agreement on the debt ceiling that may stave off further negotiations.
That is driving the gains broadly.
Remember how we have been seeing the internet stocks decline over the past few days, they are bouncing back today.
Facebook is one example where shares are rebounding after that three-day decline.
We will be back in 30 minutes with "on the markets." ? this is the early edition of "lumbered west." you can catch us at our later time as well.
The libyan prime minister is a free man hours after being kidnapped by armed gunmen from the hotel where he lives and it comes four days after u.s. forces seized a wanted terrorist in libya.
The father of nsa leaker edward snowden has arrived in moscow to meet with his son who has temporary asylum there.
He also met with former u.s. government officials who say he is adjusting to life in russia and expects no requests about leaking the details.
A federal judge has denied the justice department's request to postpone a lawsuit over the nsa intelligence program.
The justice department had argued it should be delayed because many employees cannot work during the government shutdown.
The electronic frontier foundation filed suit back in july claiming the program is unconstitutional.
Back to washington with the white house were they a responding to a new offer from republicans to end the debt ceiling standoff, temporarily.
Peter cook has more.
Any sense this one could work?
I would not call it a breakthrough just yet but the white house is at least encouraged by this offer from house republicans but not totally committed to it as the solution to the debt ceiling crisis.
They are choosing their words carefully.
The offer from house speaker john boehner root was revealed this morning.
It is a six-week increase in the debt ceiling and takes the crisis off the table for the moment but also prevents the treasury from making any more extraordinary moves to extend the borrowing authority beyond that time and there would be some sort of agreement, perhaps a gentleman's agreement, to sit down for rutter budget negotiations on the side.
-- to sit down for broader budget negotiations and on the side.
Jay carney chose his words or a carefully today.
The president is happy that cooler heads at least seem to be prevailing.
In the house.
There at least seems to be a recognition that default is not an option.
The president believes it would be far better for the congress and, in this case the house to raise the debt ceiling for an extended period of time.
A never closed the door shut on the president signing a short-term increase into law.
This is something the president will talk about with senate democrats when they meet at the white house at 1:45 p.m. eastern time.
They put a knock -- i also said the president would not necessarily agree to the budget negotiations while the government is still shut down.
That could be the stumbling block here.
Can this offer even passed the house?
That is a real?
. question mark.
The conservatives expressed some support for what john boehner is doing in this sense it bubbly would pass the house of john hammer -- john boehner brought it.
It's time for leadership.
It's time for these negotiations and this conversation to begin.
I would hope that the president will look at this as an opportunity and a good faith effort on our part to move halfway, halfway to what he has demanded in order to have these conversations begin.
Depending on how the conversation goes with the white house, house republicans and the president will meet and we could see this proposal on the floor of the house as soon as tomorrow.
You can catch peter cook again at 2 p.m. eastern, he will be him live with wyoming senator john barasso, the policy committee chair and he will get his take on this house offer.
Is twitter more popular among teens than facebook or instagram?
26% of teens ranked twitter as their most important social network while facebook and instagram tied for second.
Last time the survey was done, facebook was the leader and twitter came in second but the $1.1 billion that facebook paper instagram is paying off.
The percentage of teens is calling it the most important social network over last year.
Piper jaffray senior analyst conducted the survey and i spoke with him and asked how teens are using twitter.
It's the celebrity following, the news aside, the short messages.
It's the ability to broadcast yourself and teens tend to like the short for messages.
It's a combination of all of those.
How do they actually communicate with friends?
Sometimes it's as easy as sending text messages or going through other apps.
It's not making a phone call.
That is long gone.
How do you do this research?
Do you hang out in school parking lots?
No, we've got a great team that has been doing this for the last 10 years.
We talked to 8700 students and we go to different high schools and present how we do our work and in return, the schools let us survey their students.
It is a lot of ground and a lot of flights but it's really rate data.
We have 8700 students.
How big a threat is twitter to facebook or instagram?
They are trend setters but the most coveted is the people who spent money which would be 25-45 range.
That's another important trend to watch.
The importance of this speaks to -- you have to look at how much of the time facebook has with you, there is more competition.
Of the time that they have come out much of that are they monetizing?
That's one thing facebook has done an exceptional job and why the stock is gone up so much recently.
They've done a good job.
There's still more room for them to monetize the existing amount of time.
From an investor's perspective, it is negative that twitter jumped in front of facebook but there is still a lot of room where they can monetize more and more of your time that you do spend on facebook.
You also did a survey of teens that lead you back to apple being the most popular brand.
What did you find in terms of ownership as well as in to own smart phones and tablets.
It was more on the intent to own side of it but it is probably more good news than bad news for apple.
The good news is that the intent, which is a real key him a that's what stocks are all about is the future -- we track to that end over the last two surveys we have done, it has been 62% of teens say they will buy an iphone in the next two months and this time it rose to 65%. the downside is with the ipad where we have seen a progression downward from 74% a couple of surveys ago to 64%. that is a negative and the iphone is a positive.
The reason why it is a net positive is iphone is a much vigor part of the apple business, about 50% of revenue.
Why is the intent to buy an ipad dropping?
The downsidewhat are they buying instead?
There is just more competition out there with the tablet from google and samsung has other tablets, kindle and some of the aggressive things amazon has done on pricing appears to be having some impact on how teens think about which tablet they want.
That is not an encouraging trend.
Apple will have some sort of counterpunch to this in a few weeks with their new ipads.
We will see if that has any impact when we do our survey in the next few months.
From funny photos to viral videos, what exactly is an internet meme?
We are to find that phenomenon next on "bloomberg west." ? this is the early edition of "bloomberg west." what is meme?
Is it funny pictures with white text imposed on them or are there viral video memes?
It has taken over the internet and brands are trying to catch him.
Annie colbert has more.
There is all this visual content floating around the internet.
People create their own parodies or modify it.
The image alone is interesting.
Then you add text and other people want to share their own.
Once you break out of reddit or other apps and you start to hit the more mainstream social media sites, that's when you start to hit meme status.
Dancing baby is one of the first memes which is creepy and weird.
It penetrated all the different types of media.
A viral video is more of a static thing.
It is one video.
The meme is generated from it.
The video by itself is not a meme.
What comes from it is a meme hide your kids, hide your wife, that's meme.
This video was created and the video was not a meme but people put text over it.
People develop the voice for this girl.
Someone decided that willy wonka looked like he was being a condescending jerk and you add text and people understand.
Grumpy cat is a very rare example of someone who turned an internet meme into and entire empire.
She has deals and cappuccino that is coming out.
She has clothing.
If you can monetize and create goods that appeal to people, and you can sell them come you will start making a living.
All companies are now trying it.
Any type of cultural moment come easy brands diving in.
"the breakin gbad" finale that if you manufacture something that looks awkward, it looks bad.
It points out how stupid brands are.
Still ahead, meet zola a website that transforms the way you register for wedding gifts.
? welcome back to "bloomberg west." ebay is stepping up its rivalry with amazon now testing free two-day shipping when shoppers use paypal.
The offer will run through the holiday season and is being run run by the ebay enterprise division.
If the test goes well, ebay may expand the service to compete directly against amazon prime.
Zola is a new startup that wants to transform the way couples register for wedding gifts.
It features a mix of traditional wedding gifts like lenders and linens to more unique experiences like a cooking class or a farmer's markets inscription.
Joining me now from new york is one of the cofounders of zola, kevin ryan, who builds out companies as the cofounder of guilt group and others.
He is the former ceo of double- click.
I looked at the site and it looks interesting.
Anyone who has put a wedding registry together knows it is exhausting but how is this different from the current offerings out there like the knot?
We interviewed 200 couples and found a lot of pain points.
The things we changed -- the set is -- the site is aesthetically more beautiful and more personalized and you see a picture of the couple and you know where they're getting married and merchandise selection selection is so much better and faster that you can have experiences and travel and charity and ski boots, or wine3 you can put anything you want there so you can select items from virtually hundreds of different stores.
We also have new features.
You can have buying tummy tuck.
We can coordinate the shipping so you don't have fox's arriving at your house willy-nilly.
We just reinvented the entire wedding registry process.
That was needed.
I went on their and there were lots of interesting things but i could not put pottery barn or crate and barrel on there.
Are those retailers you want to partner with?
In some ways, we really curated.
We will have hundreds of items from all over the place for it right now, don't have items from pottery barn but we will go directly to the brand and eventually have thousands of items.
Just about anything you want over time, we will have on zola.
It is a special day for brides and grooms.
They are frustrated right now but i think it will be a new experience on zola and i think they will like it.
What is the business opportunity here?
Will you take a cut of each sale?
We are a retailer so we will get a percentage of anything we sell from the product being sold.
It should be a good business.
What you focus on when you start a new company is you wake up and think only about that consumer experience on that bride and that groom and the most special day in their life.
We want to be a part of making that a great experience.
We think we have.
Would you say this is another iteration of another e- commerce company some of them have struggled.
They are having layoffs and changing models.
How do you get the e-commerce model right?
If you have the right model in the beginning, it works fine.
Guilt today is doing the same thing.
They are selling their items at a discount like they did six years ago.
It is growing and making money.
There are a lot of models that are working but not all of them will work.
That is inherent in the entire business.
When you have an opportunity like this which is a $10 billion opportunity, wedding registries, and no one is excited about the current offerings, that's when i smell an opportunity.
I think this will be a very successful company.
The wedding area in general needs to be reinvented.
Pinterest has become huge in the wedding business.
It is just starting to roll out ads.
Do you considerpinterest a competitor?
It's a great site where people put ideas down.
We are really an e-commerce site with a backend that links to all of our different brands.
There are many things we offer that pinterest is not in the business of doing.
People get ideas on pinterest and then come to zola and figure out how to buy those items.
You can log onto zola.com.
Thank you for joining us today.
We will be in -- we will have more after this break.
? welcome back.
Coming up on the late addition of "bloomberg west," pinterest is unveiling its first ads.
That is at 3 p.m. pacific time.
It is 56 pass the error which means we are "on the markets." julie hyman is in new york with more.
Our investors more optimistic about this potential short-term solution?
Definitely more optimistic.
That is being seen in a big way.
The rally today is definitely impressive as to the magnitude especially the nasdaq.
That has been the laggard over the past few days and internet stocks have been hit hard and they tend to be more volatile.
They can move more on this sort of perception of what has been going on.
That's what's been going on.
In terms of individual movers today, let's start with gilead sciences, shares are getting the most in five months after a reported positive news on a cancer drug it says it is stopping a study of his leukemia drug early because of the improvement seen in patients.
We are also watching sfx entertainment.
They produce music festivals and are falling and their second day of trading.
The closed lower by almost nine percent in their debut yesterday.
Christina alesci went to the tomorrow world festival and talked to the ceo of the company.
What happened here?
Was it a case of not a lot of demand?
Certainly not the best way to kick off your as a publicly traded company.
I hear that they got too aggressive on the size of the offering and that right at the higher end of the range and issued more shares, maybe more than the market could bear and the stock price fell.
Let's not forget who was behind this.
The ceo has done this before in the early 1990s when he rolled out was the majority of the rock 'n roll concert producers and he made a decent amount of money doing that.
He is looking to do it again here, same idea except with iconic dance music with his popular with the millennial generation.
Are you saying i am not in that generation?
He is hoping to attract corporate interest and sponsorship into the space which has not been particularly institutionalized yet.
Majority of the rock 'n roll concert producers and he made a decent amount of money doing that.
He wants to make it more as to tuition lies.
Some of these have been successful in europe.
Are the millennial's in the u.s. just as sticky when it comes to this kind of music?
That's the question.
You talked to a lot of millennial's there.
They spend a lot of money on going to these things.
Even though we see the shares
This text has been automatically generated. It may not be 100% accurate.