Live from peer three in san francisco.
We're talking about global technology and companies that are reshaping the world.
Our focus is innovation, technology, and the future of this mess.
Ken mark zuckerberg -- he is hosting a 24 hour hackathon in silicon valley.
It is a clash of the consoles of microsoft launches its xbox one one week after the playstation for hit market.
Can this drive sales?
We will talk to their migrant -- marketing.
And eric says that the end of government censorship could come within a decade.
He writes that encryption is the way to fight the spooks.
The tech community has been pushing for immigration reform to allow skilled workers to stay in the u.s. the biggest names in technology are hosting a hack-a-thon.
The linked in chairman and mark zuckerberg gathered to future coders who are undocumented.
This is one of the biggest civil rights issues of our time.
It makes me proud of this community.
It was so easy to rally the leaders to come and try to sort this effort.
The so-called dreamer hack-a- thon was put on by the lobby that zuckerberg founded.
Our senior west coast correspondent and man of the hour, jon erlichman, is in l.a. this is really interesting, tell me about it.
It helps if you can stand out.
These are advanced that have deep roots in the worlds of technology.
It is hard not to think of mark zuckerberg when you talk about the story of facebook.
He spent a lot of time talking about that at this event.
Here is a little the more about what he had to say.
The essences that great ideas can come from anywhere.
It does not have to be someone who is running a company.
It does not have to be someone who is the citizen of a country.
Great ideas can come from anywhere.
That is the essence of our economy and how we built the country.
It is the american dream.
Now with some perspective, here is additional perspective from drew.
I think it is a really important problem.
It hits close to home for us.
My cofounder -- his parents were not able to move here, there weren't -- there would be no dropbox.
It goes beyond the broader issue.
The stories here are amazing.
We know there are a lot of industries that are afraid of change.
Technology companies generally are expecting change.
Some embrace that change.
I think that is a group that has this concern.
Maybe they cannot embrace the change effectively as they would like to.
These 24-hour hack-a-thons are all the range.
Is 24 hours enough to affect a change?
It is an important question.
You have heard the stories about products that come out.
They also talk about some of the guidance.
What they potentially could accomplish and how they go about it.
Here's more and what they had to say.
I think some of the advisor gave was that you just have 24 hours.
Keep it simple.
The stories are unbelievable.
It is just -- these kinds of things are commonplace.
I have not seen my mom and 80 years.
Because of the bureaucratic process -- now i am in the situation.
Bring those stories to life.
That is an opportunity that we have to start planting seeds.
That was true houston of dropbox.
Really interesting stuff.
We're just hours away from the debut of the xbox one.
It goes on sale at midnight tonight.
This is the first gaming console and eight years.
This is days after sony launched the playstation 4. microsoft has planned a large marketing campaign.
There they are in our studios.
Wandering the streets of new york.
I do not know -- i imagine this was the board meeting.
Talk to me about this.
What are you guys doing in new york today?
We are getting ready to launch the xbox one.
It is the kickoff of over 13 ventures.
It becomes the best gaming console and the best all-in-one entertainment device.
So, specifically around the gaming.
It seems like since you announced the xbox, you talked about the other things that they could do.
We were talking all about the games.
It is today the marketing about the games?
Is that the personal message?
It is certainly first and foremost, we are building the best game box we have ever done.
People will go out and buy the console.
We have a lot of people lined up waiting to get the first one.
We're focused on the great games.
When you get a home, people will see that you can broader now.
You can do television, sports, and fitness.
You have access to both.
And roman gladiators was sorts.
You would be afraid to not buy it.
What are you doing in manhattan?
You have these characters circling the street to end up in times square?
It is the gaming business.
We have some great wings to celebrate.
We had over 100 zombies walking across the manhattan bridge earlier today.
We have roman soldiers that will march in.
It all comes together in times square at the best buy theater.
We will have a couple thousand people get hands-on and get to play.
We're doing a countdown at midnight with macklemore and ryan lewis.
All of that is coming together today in new york.
I have seen a lot of zombies in new york.
It is hard for me to tell.
Why new york?
What makes this the place to do that?
We have had a great, broad multicity effort.
We have been in new york, london, l.a., and paris -- new york has been a great epicenter for us.
In terms of the meeting of the mines in gaming and entertainment.
It is a big city that knows how to do great things.
We have a great event nla -- in l.a. as well.
It is a global effort for us.
I think you should not have done this in san francisco.
It characters like that were in the street, people would think it was just another day.
Specifically, it seems like the price may be end up being a differentiator.
I wonder, what is your goal in terms of the price?
Is the message that your machine can do so much more really crucial?
I think that is right.
This is an amazing time.
This is the first time the living room will be personalized.
We will deliver a next- generation experience for all of entertainment.
There is no one who does that say.
We think it is a ache effort.
If you hearken back to a few years ago.
It changed cell phones forever.
I think the cell phone -- the xbox will do that.
We will have a breakthrough experience.
At the price we are delivering, relative to a tablet, i think it is an attractive opportunity.
Thank you very much.
Still ahead, is the u.s. ready to develop -- defend itself and cyberspace.
We will hear from michael chernoff.
You are watching bloomberg tv.
We are streaming live on your phone, tablet, and bloomberg.com.
? this is "bloomberg west." at the year ahead conference in chicago, erik schatzker thought down.
Chernoff is the head of homeland security.
He is the cofounder of the sure enough group.
-- chernoff group.
How effective are they in dealing with cyber threats?
We are more ready than we were 10 years ago.
We are not as ready as we should be.
Unlike most secure the risks, where we look to the government to be the major player, we are talking about cyber risks -- it is private enterprise.
Most of the networks are privately owned.
That means that the government needs to see -- the private sector will have to have a major part of the responsibility in protecting itself.
Hopefully cooperating with the government.
There are things that the government could and should do.
To create incentives, to raise the level of security, and perhaps even to mandate in cases security features.
Are companies doing a better job of securing themselves?
If you could, when you said we are not as prepared as we should be, how much more prepared to we need to be?
There is a good news story and the bad news story.
In good news stories, there are a number of sectors of the economy that have devoted efforts and energy to this issue.
That is increasing.
We worked with the energy sector.
They are putting effort into cooperation with u.s. government regulators.
The financial sector has to be very forward leaning on this issue.
Increasingly, we see a variety of businesses, including retail and other companies, increase investment and focus on this.
The challenges that the vulnerabilities are increasing at an equally rapid rate.
This is when i want to come back to this issue of the internet.
They are, you're not dealing with an enterprise.
You are dealing with billions of devices.
It will become smart.
You have to design the devices from the outset to be resistant.
That means determining who can access the device, what kind of commands it will respond to, and other things in terms of supply chain protection and hard ware and software.
I am not sure of the design process -- it has not advanced where it needs to be.
That was michael chertoff.
A look at the year ahead in 2014. the intersection of big data and politics.
We will hear from eric schmidt about the at -- the disruptive effect that data is having on the way people vote.
That is next.
You are watching bloomberg tv.
We are streaming live on your phone, tablet, and bloomberg.com.
? welcome back.
Facebook will rollout a new campaign structure for the first half of next year.
They say the change will make it easier for advertisers to organize, optimize, and track the performance of ads.
It will add a third level to the current structure.
This is coming in today's " bloomberg west" eight edition.
The power of data was front and center in the presidential election.
It was helpful in getting obama reelected.
Dan wagner and google executive eric schmidt are investors.
Trish regan said down with these executives today at the conference in chicago.
She started by asking how big a data point is that google.
Google does this in the computer domain, not in the people domain.
This invention -- this team took data and analytics and applied it to people.
Everybody here was in business at one time or another.
Who would like to have more customers?
That is not a complicated question.
What is the best way to get customers?
Have a global brand.
What if you do not have that?
You have to find them.
How do you find them?
With the new tools, we can find them.
We can do customer acquisition.
Everyone has a customer acquisition problem.
Walk me through an actual example.
How does this work?
Let's talk about this health care outreach through media.
In health care, we know ostensibly that there is a program that people are supposed to enroll in health care.
There is currently no available database for the uninsured.
We do not know where they are.
Traditionally, this is conducted through tv.
Tv is a broad demographic.
You think about youth, nascar dads, soccer moms -- but those categories are not useful when you are looking for an ostensibly identifiable group of people.
We have worked to build that list of people with a high probability and connect that to viewing through set top boxes or cookie information.
We can target those individuals and the highest density of lowest prices to get those people to enroll.
How do you know that those are the people?
How do you find them in the first place?
The promise is -- build your database from as many sources as possible.
Provide an algorithm based on surveys or in field testing of who the american people are.
Do a look-alike model to predict.
Based on the underlying attributes, these are the people who are likely to be uninsured.
You are building a customer profile on these people and matching it up with survey data.
You're building a profile that says that these people look like people who are uninsured.
You model that on the entire population and target that was different means of outreach.
A simple example -- imagine you are looking for 26 euros to her unemployed.
We can find them.
We can get them to you.
20 years ago, you would have done that with television.
I do not watch television anymore their 26. they are online.
You can find them there.
You think about what google has done.
If you are shopping for a particular product or you have put a certain thing into your search engine, google is anticipating what you want and what you need.
It is very direct advertising.
Are you using some of this?
These are completely different projects.
Google has a line that it does not cross.
The way their business works, it is a commercial advertising business.
It is covered under different rules.
In the google sense, the personalization that we do improve the search answers.
You can turn it off.
If you are unhappy with any personal information that is collected by google, you can delete it.
You can turn off the browse.
There is also a way to not take advantage of that.
It brings us to another issue, which is pretty important.
That is privacy.
You brought up that people can turn this off.
They can maintain their privacy.
How do you balance that?
When you are out trying to collect this data, and the company has all of this data, there are a few things at stake.
People may or may not want this out there.
The company has this.
The company needs to protect it.
In terms of security and privacy, in terms of security, what we try to do is maintain the highest standards to make sure that we are protecting personal information to the highest degree.
Second, in terms of privacy, we largely deferred to the standards of our clients and users to make sure that we're properly maintaining that information according to the written agreement that we have with both people.
In general, this is regulated in the commercial space.
Analytics has to follow those laws.
That was the google executive chairman eric schmidt.
26 after means it is time for on the markets.
A look at what is moving on the markets.
Olivia sterns is in new york.
What is going on?
Stocks are rising.
16,000 on the dow.
We are eight points away from that right now.
They are up 92 points.
The nasdaq is gaining about 37 points.
One catalyst is a weekly report on initial jobless claims.
That shows the jobless claims fell more than forecast.
That boosted op to miss him -- optimism.
I want to highlight jack-in-the- box.
They are popping after a net income doubled.
We're also watching shares on phillip morris.
They are the most in five months after shipments to russia will crimp its growth.
More after the break.
? welcome back.
I'm cory johnson.
You can also catch a set or later time, 3:00 pacific.
Now to the top headlines.
The senate has proved a nuclear option, challenging the rules for filibuster.
This paves the way for most bills to pass with a majority vote.
Democrats say republicans were just walking too many nominees.
Republicans warned that this will further strain relations.
Worldwide plans to increase the ipo are underway.
The group will allow shareholders to have more money in stocks.
Hilton is owned by blackstone.
The price terms will be set in the first week of december.
Take off for the atlas in 747 jumbo jet that landed in the wrong airport in kansas has been pushed back.
They need to make sure i can land safely on the shorter runway.
It landed at a small airport in wichita, instead of the airport it was supposed to land at five miles away.
The faa is investigating.
We turn now to the robin hood investors conference in new york city.
Some of the biggest investors are talking about their best ideas for 2014. stephanie ruhle is there all day today and tomorrow with the biggest names in finance.
I am jealous.
What do you have?
It was two months ago that you said we should head to robin hood together.
Sorry for you, lucky for me.
I am sitting with the executive chairman of guggenheim.
He is a board member of robin hood.
Before we get into the market, help us get our head around.
How did robin hood pull together ? how did this happen?
How did the nonprofit status?
I think it is the only organization that should do it.
It is an incredible conference.
Robin hood is the most effective charity in new york in helping to fight poverty.
It is a big issue.
There are a lot of people who know they have done well and a society that allows them to do well.
I care about whether people at the lower levels have the opportunity to do as well as they did.
They should not suffer the awful things that happen.
There is a deep commitment to robin hood in the investment community.
You see that today.
It is ironic.
One of the most significant issues facing any investor today is the growing inequality of outcomes on a global basis in society.
Dealing with these issues, robin hood is on the front burner.
The leading edge.
Not only trying to ameliorate poverty, but giving people the tools to climb out of it.
Those kinds of things -- it is a think tank that needs to grow.
Robin hood tries to give people more choices.
People come to this conference to make choice.
Going into 2014 14, when you look at the market, what do you think?
I think, i really believe that the market was undervalued.
It has a lot of risk premium built in.
Basically on three things.
There was the risk of the double-dip, a blowup in the banking system in europe, and a hard landing in china.
Over the last year or year and a half, we have seen what scott minor has talked about.
Those risks have been reduced.
Up until recently, the market was simply moving to a more fair value and less risk premium.
More recently, it has moved to fair value or above.
At least here in the u.s.. there is a lot of emotion coming into the market.
It is based on getting in because everyone else is getting in.
There is no way to know when that wave stops.
It does say that, while stocks are overvalued, they probably have some room to run on the upside.
The potential for corrections has risen.
You speak to corporations everyday.
Do you feel that if we get out of this gridlock and uncertainty in 2014, we will start to see these corporations start spending all of that cash?
I ain't that the political gridlock is in impact.
It is a much acre impact on small business the march business.
Large businesses have decided a while ago that they will not see much out of washington.
It does not affect their spending decisions.
Spending is more of an issue of the global cycle we are in.
We are in an overcapacity deflationary type of environment.
In an overcapacity environment, it is not easy to find places to spend.
People are talking.
Europe, emerging markets -- where's the best ways to invest customer the best investor i know is scott minor.
He has suggested that europe and probably -- what came out of the plenary session in china is interesting and promising.
There is probably better value in some of the sectors in europe and potentially some of the emerging markets.
I will leave the actuals of that to scott.
The market seems to like janet yellen.
Is the fact that we are not going to have a crisis in the next few years?
Or are we so addicted?
Is more the addiction than the avoidance of crisis.
I do not know that the fed can dictate issues that would create a crisis.
My own belief is that tapering has gotten everyone's attention.
Almost assuredly, there will be some reaction as they start to taper.
You have to look at the point that they are dated dependent.
If you're tapering, you are seeing a better economy.
They will balance each other out.
The near-term reaction may be overdone.
There is too much focus on tapering.
What they will shift to his forward guidance.
I think they will get aggressive on forward guidance.
That will keep interest rate from rising very much.
And the environment that we just talked about, where it is hard to find a high rate of return, monetary policy is there to make sure that there is a lot of liquidity available.
In some ways, the only place to condone is -- from a deal flow perspective, banks have had to get more conservative.
That is positive for firms.
The big deals go to these big banks.
They are getting bigger and bigger.
What is your outlook for 2014? ours is quite positive.
Certainly the big banks will have a large market share.
They will consolidate their.
At the same time, boutique investment banks and others -- a lot of deals you're seeing are really two or three large banks and the boutique.
So much less overhead.
Less overhead, but less ways to make money.
We do not get paid in ways to raise the debt.
That is one of the differences.
We are not just an advisory firm.
Where a full-service is firm.
The underwriting business -- we think it is a really good place to be.
Our equity underwriting business is picking up momentum.
We think there is an opportunity there for a more customer oriented hands-on, full-service firm.
That is our point of differentiation.
We will have to sit down and check in again.
Thank you so much for joining me.
We will be live with the executive chairman of guggenheim.
We are here at robin hood.
Back to you at on the west coast.
I want to know what he is doing?
I am not asking him.
You know what?
If you had come, you could have asked him about the dodgers.
Next year they will have a big season.
Back to bay area sports, the golden state warriors chose to play -- he can take a shot at venture capital.
A new series is next.
? we have some breaking news now.
The president is going to speak in an hour or so about these big changes in senate rules that will lower a majority vote to approve presidential nominees.
It is an interesting story.
The president will talk about one hour from now.
An nba all-star interned during the lockout.
He shadowed a venture capitalist.
Now he is playing a venture capitalist.
What is he learning off the court to help him make the turn to venture capital?
We caught up with him for our weeklong series, tech in the game.
Andre has had it all.
First round draft pick, a cool name.
But what does the golden state warriors swingman rave?
He wants to be a venture capitalist.
I have gotten to look up to those guys.
They have created ice.
-- great advice.
He is often to his best season.
Taking some shots off the field as well.
He is setting his sights on the silicon valley.
Here he comes.
He's got it!
The warriors have one!
I understand what hard work is.
On the basketball court, i am willing to translate that.
As a free agent, he chose to come to the golden state because of its access to silicon valley.
As the owner -- he turns to him for tutelage.
I try to be a friend and a business mentor of some sort.
At every warriors game, he is surrounded by some of the biggest names in the tech environment.
Facebook executives, venture capitalists, john burbank -- they have taken me under their wing.
He is setting the stage for life off the court.
I want to condition or learn -- continue to learn on the fly.
During the lockout, he interned at merrill lynch.
He visited the new york stock exchange and he is now serving as vice president of the players association.
I would like to get into this world.
It is the old that goal.
I want to be -- i will get into this world first.
It will enable me to have the means to do well.
He can make so much money, they may end up being owners of teams like michael jordan.
Coming up tomorrow, the software ceo -- other tech titans.
Microsoft ceo steve ballmer is taking the teams to seattle.
That is next on our series tech in the game.
We will be right back.
? welcome back.
Digital advertisers are targeting smart phones and tablets.
The consumer tech companies will ship one third of their marketing budgets to digital by 2015. those attending this conference were marketers.
How is global changing the way that they do business?
Here to talk about that it the sales force samo.
I feel like the phrase cmo has not been heard -- it is all over the place now.
Jeffrey hayzlett is doing a show on bloomberg tv now.
The cmo was the person that the ceo turns to.
You have people like the one at ge.
She is heading up ventures and the growth of the company.
You have heather allen at kaiser.
She is marketing and product development.
We are in a customer revolution.
Because of mobile phones.
There with a 16 hours a day.
We go to sleep with them and we wake up with two of them.
We never leave them.
You look at how you communicate with them.
It is through your phone.
I am flying back to new york and i have my delta app.
I checked in and i use it as my boarding pass.
Every touch point with the customer is an opportunity for digital marketing.
Do companies really know?
I wonder if they really do know who the people are that their marketing to now.
In ways they did not before.
It has always been a problem.
Advertising on billboards and magazine ads -- it was talking frogs.
They did not know who is watching.
The mobile revolution, the social revolution, how we live -- we live with music on our phone, all of a sudden when you are checking into flights -- inc.
About the new ford car.
We had this awesome new orange mustang.
You would freak out.
You would not know what it means.
Now, if you look at what they're doing, what pops up in the car is that you have driven a thousand miles.
It is time to change your filter.
You could press this button to make an appointment in the car.
Is that marketing?
It is getting closer to the customer because of data.
It lets you as a company be relevant.
Are we getting to a point where that will change the products?
It is changing with the products are.
You are right.
Think of how customers interact.
It is helping.
The jobless to help customers when they need help.
How they wanted.
I need to get from a to b. when?
I press a button.
That is an awesome way to help.
That is the best marketing.
That is why cmo's and cios are leaving companies -- leading companies forward.
These are great examples.
The cloud cmo of sales.
Thank you very much.
We will have more right after the break.
Coming up in the late addition, you have got to watch.
Roger mcnamee will be on the show.
He is always entertaining.
We have to bleep out the noise that -- the words that he says.
He will talk about the hottest companies in silicon valley.
That is at 3:00. 6:00 pasty.
-- 6:00 back east.
Jeter cook is at the white house.
What do we expect and when do we expect it?
We expect the president to speak shortly about what has happened in the u.s. senate.
Here in washington, it is a very significant development.
Senate democrats are acting on harry reid's move.
They have agreed to change the rules of the u.s. senate.
The nominees from the president going forward for top jobs like janet yellen -- it will only need 51 votes for clear consideration.
Instead of the normally required 60. this has been friends for years by here he read.
He has pulled the trigger.
Republicans are hot about it and are threatening to retaliate.
They will bottle up legislation.
This is a big move by the democrats.
A gamble that they are taking at this point because they do not see republicans cooperating anyway.
We expect the president to talk about it.
He wants to get some of his justices put on a job.
He has his nominees in the business community.
Not just janet yellen, but also mel watt.
Two of the positions that are important to business.
Every lobbyist in washington is watching this.
Progress in d.c.. this 56 past the hour.
That means it is time for on the markets.
We have the very latest from wall street.
A couple of stocks we are watching.
Natural resources, not to be confused with energy bars.
They are suspending a project in ontario on concerns that they will not have the infrastructure for mining.
Nickel and copper are thought to be in the region.
We're also watching shares in union pacific.
They have buy back of shares.
Let's also get you caught up on the broader markets.
The dow is back above 16,000. all of the major indexes are in the green.
This is after three straight days of decline.
The s&p 500 has climbed to 18% this year.
Julie hyman sat down with elmo or.
His trust has more than doubled
This text has been automatically generated. It may not be 100% accurate.