? live from pier 3 from san francisco, welcome to "bloomberg west." we cover the global media and technology companies that are reshaping our world.
I'm emily chang.
Our focus is on innovation, technology, and the future of business.
Let's get straight to the rundown.is this man the next steve jobs?
A rockstar welcome.
If company is already beating apple in china -- his company is already beating apple in china.
Thinner letters and no straight lines, will this help users see the new fresh yahoo?
It is being called the first surgery ever seen through google glass.
The future of medicine.
We talked to a surgeon who was there.
First to the lead.
Samsung beat apple to the punch.
A samsung unveiled a smart watch that can make phone calls, and take photos.
Chinese smart phone maker has unveiled a smart tv that will run on the android operating system.
The ceo was mobbed like a celebrity.
He is known for deeply admiring and sometimes copying steve jobs.
His phones look a lot like iphones.
Apple is set to hold an event next week where everything from a new iphone to a next- generation apple tv set may be unveiled.
We go to l.a., where cory johnson is on assignment.
He has more from our exclusive access to the event.
It was like when you walk out of the studio, the crowd gathering.
[laughter] it's interesting to see this happen.
This company got a lot more interesting when they hired a google executive to run this business in china, from china.
Listen to what he had to say.
[indiscernible] every indication seems to say that these guys are going to try to become a bigger player in the world of smartphones, but specifically in china.
To bring the guy who was largely responsible for bringing the most popular operating system in all of smartphones to android out there to run this company shows that these guys are charging fast ahead.
As you mentioned, this is the first time we have seen him on stage for a xiaomi event.
Good -- could xiaomi start approaching other people from silicon valley?
That is hugo barris' strength, knowing who is good and technology.
The notion that this company could be a leader, not a follower, in some of the same way's lenovo has done, is interesting and shows where they're asked her rations are.
It is also where their talent level is.
You can see the exciting product -- look at the smiles.
He looks pretty stoked.
It is a different way to launch a phone for these guys.
It is clearly something in the shadow of what steve jobs did.
We can emphasize that xiaomi does not cell phones outside of china.
But obviously the company has taken a lot of inspiration from steve jobs from apple.
Do you see a lot of apple in this particular event?
The entire phenomenon of a ceo standing on stage and introducing a product is weird.
That is something that steve jobs did, and other companies have tried to emulate.
This is in chinese, but with a translation.
Judge for yourself if this is trying to be steve jobs or not.
The biggest cost for tv makers is the screen.
Buying a tv is buying a screen.
From the start, we have chosen the best suppliers of the best screens worldwide.
That is the entire cost.
Why do you need four to five models, priced from $3000 to over 10,000 you want -- yuan?
It doesn't make sense to me.
This will sell for just over 2000 plus yuan.
The telling thing is the fan boys in the audience going crazy with every word.
The t-shirt and blue jeans is clearly an all much, perhaps -- homage, perhaps.
I want to turn to samsung, which announced its galaxy dear smart watch.
-- gear smart watch . jon erlichman was at the launch in new york.
Now that you have had 24 hours to digest, what is your big take away?
A lot of the same things we talked about leading up into this launch are still relevant today.
But then there is a secondary question.
As we play with this device, it has a lot of bells and whistles we expected it would have.
A lot of different apps you can use, if you're taking advantage of the bluetooth technology.
You have got a camera, a lot of the things you're used to on your smart phone.
Short term there is a huge benefit for samsung in saying, we have a device like this on the market.
The fact that it is enhanced when used with their new note device, which they announced yesterday, and really not having the same functionality with any other smart phone, is a way to say that we brought this device on the market and it is meant to make the whole experience with the note better.
We are not necessarily in a position to say, we will make a device like this available to be paired with any smart phone -- that does not necessarily change the story of, doesn't apple immediately feel pressured to come to market with a similar product?
If you had seen a device like this come to market that could not immediately be paired with an iphone, maybe we would tell a different story.
I think people are impressed with what samsung has been doing as a company.
Whether or not this will change the game or evolution nice that next big thing in -- evolution ize that next big thing in technology, it is tough to say.
You cannot watch movies or tv on this thing, yet, right?
Would this be a future battleground between samsung and apple?
It was one of the things i was curious to know.
I have spoken to high-level people in the media industry to get their take on, would you be ready, willing, and able to develop content for a device like this?
I did not get a strong yes on this.
And not to say that if apple is going to go down this route, that they are thinking about doing that.
Every high-level media executive is thinking about where their video is going to show up on what devices.
I think people are still kind of waiting to see what the adoption is like.
Do people really think they need a smart watch?
We are still trying to figure out if people are going to wear google glass on a mass level.
Jon erlichman, our senior west coast correspondent, thank you.
What does all of this mean for apple?
Apple has also invited the press to an event in beijing.
That has prompted speculation apple could be announcing a deal to bring the iphone to china mobile, the world's largest cell carrier.
My partner, cory johnson, is back with us.
What can you tell us about this beijing event?
Apple has held these parallel events over time.
To a certain extent, it would be 2:00 in the morning in beijing at the same time they are having it in cupertino.
They will be doing a rebroadcast in beijing.
It has sparked a lot of speculation about where things stand with china mobile.
That is the one carrier that can put a major dent in the chinese market.
Where do things stand with china mobile?
It has been years of negotiations.
At this point, there are customers on the carrier who use it, but it is through this back and way.
-- back-end way.
We have been talking about how apple has been falling behind in china.
Xiaomi now sells more phones in china than apple, according to certain market share statistics.
How critical is this china mobile deal at this point in time?
It is the last domino standing in apple's global dominance, or at least growth.
The iphone has gained market share in the places it has been sold.
They have added big countries and big carriers, and more and more geography.
Three years ago, apple sold 40 million iphones.
Last year they sold 125 million.
They had fantastic growth because they were able to add geography.
If you're not on at&t, china mobile -- those are the big players out there.
Those carriers know that.
They are driving a hard deal with apple.
Is the fact that the chinese customers have to wait longer for the newer models of the iphones, does that hurt apple?
Could that change?
A bigger thing here is the price.
To buy an iphone in china is -- you don't have a subsidy, necessarily.
You are talking about a very high expense.
Disposable income is not as much as what you are seeing in the u.s. if apple introduces a lower- priced device, as is expected, that can go a long way to getting onto a network like china mobile.
Does it all come down to price?
Fundamentally, it will come down to price.
What we just saw in that video of xiaomi and the excitement of the product, that carries over in apple products.
Customers have shown a willingness to pay a premium for those devices.
Apple has been able to get better gross margins than anybody else in the business.
We talked about how tim cook has visited china multiple times.
He has been there a couple times so far this year.
This relationship is extremely important to apple.
Talk about the china strategy undercooked versus steve jobs -- under cook versus steve jobs.
Every earnings call, he talks about how important china is.
The sales there, there is a lot of these new characters coming on, new manufacturers coming on the market.
Some devices look a lot like apple's devices.
They have been able to get a lot of shares.
Apple doesn't have a lot of retail stores there.
They have been trying to accelerate and move more quickly.
If you look at the numbers, they are still generating a lot of money there.
We will be watching, very much looking forward to this event next week.
Adam satariano covers apple.
Privacy groups are asking the ftc to stop facebook from changing its data use policies.
What could this mean?
That is next.
You can also watch is streaming on your tablet, phone, and bloomberg.com.
? you're watching "bloomberg west" live on bloomberg television and streaming on your tablet, your phone, and bloomberg.com.i'm emily chang.
Russia posterity as man is dropping his stake in facebook.
-- russia's richest man is dropping his stake in facebook.
He also owns a stake in twitter and ali baba.
Facebook shares have skyrocketed nearly 60% this year, giving the company a large market cap.
Facebook has encountered scrutiny for how it handles the personal information of its users.
Phil mattingly is with us to explain what is going on.
There are so many tweaks in the language of these policies over the years.
What is happening now?
This is related to the most recent one, last week.
Yesterday six groups, including the electronic privacy information center, saying the proposed update that the menlo park company made violates the company's own policies as well as an earlier settlement with the federal trade commission.
This letter was sent to the ftc and comes in the wake of facebook's proposal last week.
It would clarify how it manages data for advertisements.
The letter asked the ftc to step in and stop the changes that would allow for facebook users to have their images used for advertisers.
The groups say that facebook users would, quote, find their pictures showing up on pages of their friends endorsing products . facebook users who reasonably believe their images and content would not be used for commercial purposes without their consent will now find those pictures showing up on the pages of their friends.
This is the letter from those privacy groups.
Facebook disputes this, saying the updates are being up limited to provide clarity.
Debbie frost said these changes will not impact advertising practices or the policies, and the revisions will explain how things such as your name, profile content and more will be used in connection with ad content.
What facebook is saying is, we revised our explanation of things such as how your name and profile content may be used.
For a company that has been dealing with privacy, it doesn't look like this debate is going anywhere anytime soon.
What happens on the ftc side?
Do we expect immediate action from a letter like this?
The agency is not commenting on this specific letter.
They traditionally review these letters.
Is it going to spark some action?
That is unlikely.
The company has a settlement with the ftc right now.
The regulator is always reviewing these settlements.
Will this spark massive change?
is a welcome on facebook's and -- end -- this welcome on facebook's end?
Not at all.
Thank you, phil mattingly.
Marissa mayer puts another step on the internet company.
this is the early edition of "bloomberg west." i'm emily chang.
Ceo marissa mayer is putting her stamp on yahoo.
The company unveiled a new logo.
It is meant to reflect yahoo's new image under her leadership.
In a post she wrote, we wanted there to be a mathematical consistency to the logo.
My partner jon erlichman back now from new york.
What do you think?
It is one of the longest explanations for a logo change in corporate america.
With the yahoo story, there is a lot of culture.
Part of what marissa has been trying to do their is to go back to those early exciting days of yahoo.
The company highlighting that over the last 18 years, we had not seen a lot of changes to the look and feel of the logo.
They have been accepting thoughts over the last few weeks over what that new logo should look like.
She rolled up her sleeves with a design team and said, let's figure out what would be the best logo.
I think it's a reminder that this is a product person, who would think just as much about what this new logo looks like as she went about the weather app that was rolled out earlier this year.
-- would about the weather app that was rolled out earlier this year.
Here we are now, seeing the new logo.
As we watch this, there is a report about the yahoo coo, who could be feeling some pressure to step up his performance.
Why is that?
When we talk about the yahoo story, a stock up 40% this year, people say, why is that?
Some people say, marissa mayer is bringing some magic back to yahoo.
Others point to their asian assets and stake in ali baba as driving the performance.
The orderly result you see from yahoo -- orderly result you see from yahoo have not changed much over the years.
-- quarterly results you see from yahoo have not changed much over the years.
It is tough to compete right now.
Jon erlichman, our senior west coast correspondent.
Thank you for weighing in on yahoo.
It is time for, on the markets.
Matt miller is in new york.
Another rally today.
Nasdaq turning red here.
S&p gaining about .10%. pandora says it attracted 28% more active listeners in august, compared to the previous year.
The increase due to pandora's total share of the u.s. radio market.
Morgan stanley saying it has increasing confidence about groupon's turnaround in europe.
? this is the early edition of "bloomberg west." i'm emily chang.
President obama arrives in st.
Petersburg today to begin meeting with other leaders.
The president is hoping to persuade america's allies to back up a possible military strike on syria.
A u.s. senate panel authorized limited u.s. military action in syria.
Brazilian authorities canceled a trip to washington to protest allegations that america spied on some of the country's top officials.
Those allegations were made last week when grennan -- glenn greenwald obtained classified documents.
Officials say they don't know if a visit will be canceled.
A fast food chain says it is trying out a price your dollar menu -- pricier dollar menu.
The move is in reaction to higher beef prices.
After earnings trailed analysts' estimates for the past two corridors, mcdonald's says the up is being tested in five markets in the u.s. -- idea is being tested in five markets in the u.s. our next guest has been a key player in smart watches since the beginning of this year.
Joining us is the founder and ceo of the company behind the pebble smart watch.
Pebble has sold over 100,000 watches.
You are wearing the watch on your wrist.
Thanks for coming back here.
I'm sure you are watching very closely yesterday.
What do you think of the galaxy dear -- gear?
We saw the watch.
It speaks to that push towards this type of a device coming into the market.
We see more and more people over this year starting to make wearables.
We are happy to see people to begin to accept these devices.
How is your vision different than samsung?
We are not a smart phone maker.
We don't have this entrenched legacy of smart phones that we have to support.
Pebble comes at it with the perspective that, this is a watch, primarily a watch that connects to your phone.
It works with android and iphone smartphones equally.
It is not something you have to check to see if your phone supports it or not.
The galaxy gear does not support samsung phones yet.
What is missing from the galaxy gear?
One thing we have done is try to emphasize that a watch should not be something you have to change your life to -- it should not be something you have to change your life to put on.
It is fully waterproof and outdoor readable . it's especially good for being able to see your speed and pace on your wrist.
We have gotten a lot of commentary over the last 24 hours.
Some love it, some hate it.
We spoke to brian baer of wedge partners.
He has been wearing the pebble watch for several months.
He had this to say about trying out the galaxy gear.
I wear the pebble watch.
It feels like it is 10 years old compared to what samsung has done with this galaxy gear.
He says it feels like it is 10 years old now.
How do you respond to that?
The perspective that samsung has taken has been to try to cram everything and the kitchen sink into your wrist.
We have taken the perspective of simplicity.
What are the 125 tasks that you want -- one to five tasks that you want to do on your wrist?
The wrist as an opportunity to bring small bits of content that are locked up in your phone in your pocket and bring them out unto your wrist.
What kinds of content?
Pebble is great for seeing incoming messages such as e- mails, calls, being able to see if someone is texting you.
It's useful for accessing small bits of data in your phone.
Run keeper supports pebble.
Three k, a golf app, supports pebble.
You always tell me you're not worried.
Apple is working in this market, too.
Any ceo or founder is watching the competition.
Are you doing anything differently now that you have more information about what samsung is working on, and what apple could be working on?
I don't think it changes the announcement of this watch.
We have been focusing on the developer experience, figuring out why developers want to build apps for the watch.
From our perspective, the focus is on helping developers -- ince ntivizing developers to build apps for pebble.
We want to figure out what people want from smart watches.
What is next for the pebble watch?
What do you think of the price.
You can get two pebbles for the price of one.
The samsung watch selling at $299. what is next for pebble?
It will expand to have functionality in notifications and alerts, sports, health, fitness, and remote controls.
These are the use cases we are focusing on.
You are competing with fit bit, nike?
Pebble is more of a platform that app developers can create different experiences on top of.
The fundamentals we have built compete with that.
It was able to raise $10 million in a short amount of time on kick starter.
Think you for joining us tom a eric migicovsky -- thank you for joining us, eric migicovsky.
? this is the early edition of "bloomberg west." i'm emily chang.you can watch us at three clock p.m. pacific, 6:00 p.m. eastern.
A jury in seattle awarded microsoft 14.5 million dollars in damages after ruling that mobility did not act fairly in its licensing agreement with microsoft.
Microsoft mobility licenses patents.
Tesla shares hit an all-time high this week, pushing the electric carmaker's market value to nearly $20 billion.
Shares are up nearly 900% since tesla's 2010 ipo.
The model s sedan has scooped up safety awards.
Few of the vehicles have made it on the road.
Cory johnson is back from l.a. it's confusing.
I'm sitting in jon erlichman's chair.
Interesting story about tesla.
Despite the hype around the company, just around 12,000 cars have been delivered to date.
How popular is the tesla, and where is it popular?
He wrote an interesting piece in bloomberg businessweek about tesla.
You talk about where the car is selling.
There were headlines about california.
It was one of the top five sports luxury cars, but still selling less than the hyundai.
What do you make of where the car is selling?
California is big.
Basically half of tesla goes there.
We ran the numbers on registration vis-a-vis other cars.
Washington state is the top number one.
There is one tesla for every 10 passenger cars in washington.
Washington is big.
Ec is also big.
California is number two -- d.c. is also big.
California is number two.
Tesla says they like to focus where there is a green minded consumer.
One out of 100 cars sold in washington state in the first half of the year were tesla?
One tesla for every 10 passenger cars.
Silicon valley -- we see them all over the place.
It's interesting to see them there.
There is something about california early adoption in all things.
What is it about washington state?
What are the rules or laws that really bring out the sales of a car like this that are unique to washington?
Incentives are a big one.
Washington state -- someone who buys a tesla does not have to pay sales tax on that car.
It is a huge incentive.
For $100,000 car, the sales tax is not cheap.
You don't have to go through emissions testing.
The other thing that tesla folks talk about, the word-of-mouth effect.
If there is one in your neighborhood, there is a show room in seattle, a show room in portland, in vancouver.
There are no showrooms in south dakota.
There's no tesla's in south dakota.
I was at the show room in seattle a few months ago.
It was interesting to be there, to wonder if we will all be driving electric cars.
A lot of people who are bearish about tesla make the case that you cannot get the car in texas.
There are a number of places where the car cannot be legally sold.
I asked tesla for a list of place they could not be sold.
They did not provide one.
It is a bullish thing.
If someday they allow it in texas, that opens up a new market.
The fact that it cannot be sold some places means that he will be, or is there something special about california and washington?
We crunched numbers on the states where they are really fighting the dealers to go direct to consumers.
Texas, massachusetts is huge.
Customers in those states, if they want a tesla, they are buying them.
Massachusetts, where they have had huge opposition from dealers -- it is the number 10 state by tesla popularity.
Texas is up there as well, and north carolina.
People want these cars.
They're going to get them.
Would they sell more in taxes if they could have their own showrooms?
It's hard to say.
They are definitely moving cars there.
The numbers continue to be interesting.
Great stories by kyle stock.
Next -- thank you, cory.
Next, how wearable tech is changing the future of medicine.
? this is "bloomberg west." i'm emily chang.
It's being called the first surgery done through google glass.
A doctor was chosen to test google glass.
He partnered with another doctor, who were the glass during a knee surgery, allowing medical students and faculty to be part of the operation real- time through a google hang out.
I spoke to the doctor about the project, and whether he had plans to use it in more surgery.
This is just the start.
Since the project has been done, i have gotten other surgeons who are interested and want to use the technology and a very different way than what we used.
We beamed to the rest of the medical center, get medical students involved and provide a first-person view.
This time around , we were going to innovate further, and find that we can directly push the images directly onto the glass to facilitate the work that has been going on during the surgery.
The surgeon does not have to come out of the space to look at the images, or to look at the on our -- mr or ct scans.
The team that we have assembled here are really committed to understand the complexity and feasibility of the project.
Do you see this tool becoming something indispensable, something you have to use or want to use all the time in the operating room?
There is a lot of things that need to happen as well.
The project gives us a very good insight of what exactly we are looking at.
The camera on the right side of the glass does not completely take into account every single aspect.
I cannot change the focal length of the glass, change the zoom in capabilities.
If we are looking at a surgery close by, i cannot change the zoom.
The streaming that we did, it was not high death.
The other important thing, if you look at the experiment we did -- as each surgeon gets older, he or she has a difficult time hearing.
The bone conduction was not a perfect solution for an o our environment -- or environment.
There are other things that can be changed -- o.r. environment.
There are other things that can be changed.
Is google glass something you would want to wear just everyday, walking down the street, versus something like a smart watch?
I think there is a place for both devices.
I look at inpatient care, as i work for the medical center.
I'm looking at solutions.
We are not only engineers, physicians come through and can figure out how these computer technologies can be used in our field.
Patients can take medication at home.
With the glass option, i can project the direction of how to take the medication right on the glass and actually give them feedback if they are taking the medicine appropriately or not.
Are they adhering to the medical recommendation.
There are so many things that can come out with the google glass.
As far as the watch is concerned , it can transmit data for blood pressure, heart rate.
We can harness the information in making better decisions in medical fields.
[inaudible] ? welcome back.
I'm emily chang.
Coming up on the late addition of "bloomberg west tikka -- we st," a venture fund to support student startups.
What could we see next?
That is at 3:00 p.m. pacific, 6:00 p.m. eastern.
Bloomberg television is on the markets.
Matt miller is in new york.
We are seeing gains across the board, including the nasdaq, up about a quarter of 1%. s&p and dow jones putting up gains.
About .20%. transocean has been upgraded on the confidence of billionaire carl icahn.
They wanted to activate in that stock.
Walgreens reported pharmacy sales rose 6.4% last month, beating analysts's demands.
While august may have been a good month for walgreens, it's a different story for an asset class which saw a record outflow in cash during august.
More on the outflow -- cash.
More on the outflow.
Let's talk about this headline.
The biggest month of outflows for etf's ever.
One thing i find interesting about this month is when you take a step back and look at the entire summer, investors have been so spooked by tapering.
June saw 10 billion in outflows.
Now 17 in outflows.
Those wings are unprecedented, and shows you how concerned investors are of the fed tapering.
When you take a step back and look at the etf on a year to
This text has been automatically generated. It may not be 100% accurate.