tv Bloomberg West Bloomberg June 3, 2016 6:00pm-7:01pm EDT
museum was forced to close its doors today. the world health organization is putting together an expert committee to consider whether should proceedcs as planned. a group of 150 public health experts next week called for the games to be postponed or move because of the virus. formerwyers say three officials, including the president, awarded themselves pay raises and world cup bonuses totaling $80 million over five years. fifa says the payments appear to break swiss law and evidence will be given to american and swiss federal prosecutors are investigating corruption allegations. released hundreds of videos from dozens of open investigations into police shootings. the city is launching an online portal where the video and other evidence is available to the public. says them emanuel
portal is quote, one piece of a larger effort to restore trust and repair relationships. global news 24 hours a day, powered by our 2400 journalists in more than 150 news bureaus around the world. "bloomberg west" is next. ♪ emily: i'm emily chang and this is "bloomberg west." the former apple exec you invented the smart thermostat is stepping down two years after our event bought it than $3 billion. bad jobs report. employers pulled back to the lowest levels in six years and more workers go part-time or give up altogether. how hiring in the tech industry can change the numbers.
a stagnating smartphone market -- we sit down with one of the rising stars, the micromax cofounder. first, to our lead. tony fidel is stepping down as the head of the company he founded and sold to google two years ago. in a short and unceremonious statement, fidel said he would leave the company immediately and be replaced by former executive at motor run a mobility, where he served as ceo of motorola homes. said thispost, fadell transition has been in progress since late last year and while i won't be present day today, i will be involved in my new capacity as advisor to alphabet and larry page. nest employees have publicly vented frustrations with management, some found to be very un-google.
bloomberg spoke with fadell exclusively. we will hear about what he said. thank you both for joining us. what happens? >> tony, his abrasive style rubbed people the wrong way, especially at google and also with the small startup. that's when all this public rancor emerged. post was written, saying, there's a lot of -- there's a lot that can be written about the extreme whoerences with leadership seem to be fetishizing the traits of their mentors.
are you a tyrant? tony said, you can't make an omelette without breaking eggs. that style isn't for everyone. because we have respect for the people, because they respect what we are trying to do, we will get through anything together. >> i was particularly taken by his comments about steve jobs. he said, i'm me and only a few other people are holding the torch for the kind of management style job steve's -- steve jobs represented trade , he certainlysked wasn't backing down from his management style. emily: i've interviewed tony on the show. he has a magnetic personality. you do get pulled into that, whether it's a reality distortion field or something else, he's a very inspiring
speaker. we spoke last year about why he sold to google. listen to what he had to say. >> it was about building the right thing. this wasn't about money. the number was nice. this was about a 10, 15 year vision. i knew we would need regards around us to help us get there. i remember how long it took to get from ipod to iphone. you need a lot of resources to do it. people go, you need to go public. i did not want to go public. when you saw that number, when you had the gut feeling, you just had to go with it. when you get married, you never know what it's going to be like on the other side. at the end of the day, it's an emotional decision, not a rational one. emily: i thought it was so interesting when he said it was an emotional decision, not a rational decision. as a long-time investor in google, in alphabet, what do you
think? are you worried? >> i am worried. what we've seen -- let's put it on the table. cashe paid $3.2 billion in for google, for nest. when we look at first-quarter results out of google and the under $200 just million in revenue and $800 million in losses, i think google should stop buying hardware companies. acquisitionsrst they made was for motorola handsets. here we have internet of things, thermostat. tony is a super talented guy. it's hardware, you've seen in handsets that did not work. i would like to see google preserve cash and focus on
software and search, one of the best legal businesses there are. emily: you can't help but compare it to steve jobs getting kicked out of apple. >> that's true. --y did say there are a new a lot of new products and services coming down the pipe. emily: what else is coming? >> there are home devices, like the amazon echo. they've done a lot of work on this standard, which is called weave. slog anda really hard a lot of the time was spent doing that. that might form a basis with which to bring a lot more devices under the nest umbrella into the home as well. emily: tell us about the new guy. >> he was at motorola home for about a year when it was still part of google. they sell a lot of the same securityat nest sells,
cameras, baby monitors. he has experience with home devices and the nasty, messy stuff of how to connect them all together. emily: i know you will be watching. you are sticking with me. barr, thank you for joining us. of the insights wi-fi company fell the most in more than three months after american airlines said it was splitting its next order between gogo and its competitor. up mark dans caught berg. init's an important step terms of how wi-fi will be presented in the air for the industry. americans made a statement that they want to improve, they want to have the best wi-fi in the sky. we think it's a good start
towards that. emily: american also reserve the right to drop gogo services from as many as 550 planes. globalstar plunged as much as 70% on friday after a bloomberg report on a private fcc vote. bloomberg learned that democratic commissioner jessica rosen were so voted against the measure. we already knew a republican member of the five person agency voted against the plan. the latest development makes it unlikely that globalstar will get a vote of approval. microsoft and alphabets are among critics that think it could interfere with other mobile devices. coming up, a rate hike in june? not so fast, after a dismal jobs report. ♪
emily: one story we are watching, the shared workspace plans to cut 7% of its staff and put a hold on any new hiring, according to e-mails obtained by bloomberg trade managers were instructed to begin layoffs this week. a funding round in march of value the company at $16 billion. surprisingly bad jobs report. u.s. employers added 38,000 jobs 160,000 number from april was more like 123,000. the unemployment rate dropped to a nine year low of 4.7% because more people gave up on finding a job. the number of people settling for part-time work rather than full-time employment ticked up. it's turn now to the impact on
the tech sector. how are changes in tech hiring contributing to this data? us, and joining us, david blumberg. is your reaction to this report, as somebody who invests in technology and technology startups? 2015, since the end of there has been a retrenchment or decline in the multiples the venture capitalists are offering for startups. that tends to foreshadow the downturn in the economy. heart of it was in sympathy with the stock market decline at the beginning of the year. venture capitalists are in missouri mode, which means show me traction, show me real sales and volume increases month to month instead of telling me the stories about what you are going to do. we have seen prices come down, which explains some of the worry
about wework. seed funding dropped in terms of volumes of deals the last few quarters. a lot of people who graduate from seed then go into wework or temporary housing when they are in their early growth mode. emily: is this going to change your investment strategy? what changes is the likelihood of a fed rate increase in june and july. those probabilities have come down. that's not a good thing because they are coming down because of potential weakening in the economy. a weakening economy as it relates to tech likely means as some have suggested that corporate profits have peaked. that means there is less for cap spend.ing, less for tech the cycle has a real risk of
becoming staflation at the worst case or potential recession. emily: data at the end of last year, people were already talking about a pause in hiring. what's happening now? in our personal portfolio, which we do early-stage venture capital, we have still growing demand great we have not seen any recession in terms of sales of product or lending. and people are still hiring. on our website there are 550,000 jobs available. is this impacting their plans? >> i don't know about the jobs number impacting their plans. who knows about janet yellen's moves at the fed, and so on. youbig heckscher is the one -- the bigger picture is the one you mentioned, the job force participation rate.
now we are down to 62.5%. i don't think it's because people are fat and happy and don't need to work. i think they are disaffected and disillusioned and they can't find what they want. a lot of people are going to the grey economy, not reporting taxes, everything in cash. maybe it's the black economy. it's off radar. are stuck inle part-time jobs that they would prefer to be full-time. in the tech sector, it's a different situation. stem skills, computer science, math, algorithms are in short supply. those people are still in high demand. emily: you wonder how much the on demand economy is changing things here. when of the interesting stats from this report is if you look at taxi driver numbers, they are not going down even as uber and lyft drivers increase. >> embedded in the jobs report was the verizon strike.
inside the numbers you had somewhere between 35,000 and 37,000 that came out of telecom in may that will likely come back to the jobs report in june. that's why the month to month can be volatile here. thelonger-term pattern, lower jobs participation number is important. we creation, reinvention of potential new jobs and sharing economy, and the other side of the equation is at what wage rate. the p x q on this is we have seen jobs down, but if you have inflation moving back up, you may have the fed coming in to tap down inflation. emily: something we will continue to watch. thank you both so much for joining me. fundingwith the current
environment, while linkedin struggles in the public market, one of its private competitors -- says the store ceo company's funding round slightly increases the employment. with this round, glassdoor raised $200 million since it was founded in 2007. has some, peter thiel company. we will introduce you to another tech entrepreneur. ♪
emily: our guest joins us from los angeles and new york -- and who hasork, a reporter been covering this story. thank you for joining us. my first question, is peter thiel back in your lawsuit too? >> peter thiel is not backing my lawsuit trade my relationship with my attorney is direct, and it is a confidential relationship. the only thing i know about peter thiel, he wrote a great book. and he got some money from me. you accept support from peter thiel if he offered it? >> definitely. in principle the issue is that the amount of deplorable behavior that got to me and others, the only way for anyone in my position or for somebody else a lesser position to fight
act is through some type of legal funding. i've been fortunate in terms of the relationship i was able to set up with my law firm. gawker wrotete -- a number of different stories about you. we pulled up an old story. here is a quote from it. fran, you f up. you had two years to discover this guy is a big fake. when you hear that again, what's your reaction? is, this isoints not about the invention of e-mail. at the first thing, he called me a fraud, a liar. you can read the other four letters. next denton is now on the road
in a big er blitz to frame this as though he is some victim. this is not about the invention of e-mail. this is about deplorable journalism using pornographic terms. i'm the one who was victimized by this. if you look at my history, i grew up in india. i worked hard and won nearly every recognition you can get in academia. gawker wrote those articles and the follow-up article essentially -- and essentially destroyed my reputation in the tech industry. the first page of google has this deplorable article from 2012 and later on in 2014. this is not about the invention of e-mail, which i did do. this is really about gawker's deplorable behavior which defamed me. emily: you still claim to you invented e-mail? >> yes. immigrantold indian
kid in newark, new jersey did create e-mail. i was the first one to come up with the term e-mail and call it e-mail. i got the first u.s. copyright for it in 1982 at a time that copyright was the only way to protect software inventions. if this had not been done by anybody else, there would have been no doubt -- it's really not about who invented e-mail. this is about defamation. emily: rebecca, i just heard nick denton speak at the code conference and he mentioned the stories. he believes peter teal is funding other lawsuits against gawker. what is the latest on that? >> gawker is facing multiple lawsuits by the same lawyer who is representing -- you represented hulk hogan and the doctor. gawker believes that peter thiel
is funding the claims of the doctor. even peter thiel i said it takes a lot of money to spend these types of lawsuits. funding third-party lawsuits, it's not illegal. ameone who is very rich sues media organization simply because there are reports they don't like. where do you draw the line between freedom of the press? where do you draw the line? >> it's a good question you are asking. the framing of your question is something that is essentially a pr spin by gawker. this has to do with deplorable journalism. if you look at the posting of sex videos, the terms i was called and others, how would nick denton feel if someone posted a sex video of him? if bloomberg tv called him all sorts of four letter words?
there has been enough presidents in american history to talk about first amendment. we need to step back. what's ironic is the two other billionaires who are starting to support nick against peter thiel, both of them own media properties. this is a hypocrisy in many ways. fundamentally we are talking about clicks that lead to re venue. their business model was turned upside down by the hulk hogan win. now they have a risk issue which affects those clicks. emily: doctor currently suing gawker and rebecca greenfield, our bloomberg reporter. thank you for joining us. the founder of micromax is next. ♪ get ready for the rio olympic games
by switching to xfinity x1. show me gymnastics. x1 lets you search by sport, watch nbc's highlights and catch every live event on your tv with nbc sports live extra. i'm getting ready. are you? x1 will change the way you experience nbcuniversal's coverage of the rio olympic games. call or go online today to switch to x1. mark: i am mark crumpton. this is "bloomberg west." donald club --donald trump claims a judge has what he calls
an absolute conflict because he heritage., of mexican house speaker paul ryan had this reaction. >> the comment about the judge was out of left field in my mind. i disagree with the thinking behind that. he clearly says and does things i don't agree with, and i've had to speak up from time to time when that has occurred and i will continue to do that if it's necessary. i hope it's not. mark: speaker ryan endorsed trump thursday, saying he will vote for him in november. 62% of voters say hillary clinton has the experience needed to be president, while 31% say that of mr. trump, according to a gallup poll released friday. 31% saying clinton can work with the opposing party but just 39% say that about mr. trump. belgian officials say a judge may decide next week whether to extradite a man to france who has been linked to last
november's terror attacks in paris that left 130 people dead. prosecutors say the criminal investigation into the 2014 malaysian plane crash in ukraine is almost complete. prosecutors will present their conclusions after the summer. they are still waiting for information from russia. all 298 people aboard flight mh-17 were killed when the plane was brought down over eastern ukraine. nearly all of eastern texas is under a flash flood warning. storms of the gulf of mexico are threatening to worsen flooding near houston. four soldiers remain missing after their truck overturned in floodwaters thursday along a ft. hood, texas creek. five soldiers were killed. the two and a half ton truck overturned during a training exercise.
the international of the committee selected 10 refugee athletes from africa and the middle east to compete under the living flag in the summer games and rio, saying the selection represents a symbol of hope. >> it can send a signal through the international community that refugees or our fellow human beings, and are enrichment to society. team of six men and four women will march together behind the olympic flag in the opening ceremony on august 5. global news 24 hours a day, powered by our 2400 journalists in more than 150 news bureaus around the world. from bloomberg world headquarters, i am mark crumpton. ♪ emily: this is "bloomberg west." i'm emily chang. now to the smartphone market and the state of play in india, the
country attracting attention as the second largest market for smartphones after china. apple ceo tim cook was there last month, looking to break into a market now dominated by more affordable local brands. one such brand is micromax. micromax has big expansion plans for the coming years. satmberg's asia reporter down with him. the phenomenal opportunity of upgrading smartphone users and on the smart one, on the technology side from 3g to 4g. if you look at the upgrade cycles, they are shortening in india. knowledge, of our the lifecycle of a mobile phone in india is less than 15 months now. on a 700 million connected user base with activated sim cards,
we are talking about 500 million mobile phones. potentially the entire industry has 100% upside. prices are going south year on year. we have the data in the public domain. everybody is wanting the next users to get the internet on the mobile phone. >> that's an opportunity for you. you should be using india as your car market, concentrating -- core market, concentrating on india and not looking across to china. >> i think the markets in india are as comparable as anywhere in the world. if we have a vision of becoming amongst the top five in the world, china can't be ignored.
i think as a brand, if you have a vision of seeing in the top five, we can't be ignoring china market. >> china must be part of the component chain, the supply-chain. >> absolutely. one of our design teams is out of beijing. they work along the teams in bangalore. that's how mobile phones are made. >> last time we were talking you were going to the assembly phase. aat about i.g. becoming smartphone maker, proper, as apple may be forced to do? >> it's not only about manufacturing, it's about owning the entire project. getting the teams up in bangalore and beijing has allowed us -- assembly is already on. the phase manufacturing plant
we've agreed with the government, we are looking at moving to the last level by 2020. every year there is a phase that is implemented. >> how many phones are you selling a year? >> it is about 3 million a month now. what about this unicorn handset? is this in your hand? >> that's micromax right now. the way we look at the ecosystem of the market in india as we're talking about setting up -- micromax will always be on a more horizontal, trying to move people from a segment to the other segment. might have 40 mobile phones in a year getting there in the market, and you will have probably six or seven models. you will be more focused. but youave project x talk about. this is your secret project. give us an outline of what you are working on. >> there's a few projects the team is working on which we feel
should be the differentiator, should be able to achieve the vision of the organization. it would completely change the game, is that what you're saying? i know the way you work. it's multiple choice out of them you will get the answer. --let's have a look at everybody else is trying to simplify that product range. >> it goes back to the same fact we were talking about howington movie consumer to the same -- how we move the consumer. we bring up the multiple options for the consumers. series.ferent to aentry level 3g phone
4g phone. >> we talked about china. i think it was -- the third biggest smartphones are in russia. africa must be a massive opportunity as well. >> we keep alluding to 2 to 3 international markets. seeing the right moment for the brand to launch. emily: that was bloomberg's reporter speaking to the micromax cofounder in hong kong. the u.s. government slapped an administrative subpoena on one of china's biggest smartphone makers, is using it of violating u.s. sanctions by providing rogue nations like syria, iran and north korea with products containing american technology. it complies with
laws in markets where it operates. this comes days before secretary of state john kerry travels to beijing for bilateral talks. another story we've been following this week, softbank says it's planning to raise $10 billion from selling down its stake in alibaba. that's $1 billion more than the company projected it would raise earlier this week. this is a handful of moves the is considering print the company is carrying a debt load of $109 billion partly due to its underperforming investment in the u.s. wireless carrier, sprint. coming up, think of it as legos for coding. we will bring you the ceo taking coding off the screen, next. ♪
emily: walmart says it will begin testing grocery delivery with uber and lift drivers straight the retailer is aiming to match the convenience of services offered by the likes of amazon. our reporter has more from fayetteville, arkansas. >> one of the big things we been hearing about his technology and how that will be the key to driving future growth at this company. they announced a couple interesting things this week, one being a partnership with uber and lyft. customers will be able to order their groceries online and then driver willlyft deliver them to their doorstep for seven dollars to $10. if it is successful, it is something that will be expanding. , grocery pick up.
another interesting tech thing we noticed this week was a demonstration of how they are using drones. inside one of walmart's biggest distribution centers they are using drones to go up and down the aisles, scanning inventory to make sure it's in the proper place. it takes one person -- actually two people an entire month to go around the distribution center doing that manually. a drone can do it in one day. those are the types of innovations they are looking at. drones to play a role in delivery as well. they did not really want to get into that. technology will be the key to that company's growth. it's something we can expect to see going forward great thanks, and back to you. you can think of it as the legos of coding. isipad gaming accessory
teaching kids how to code, but in the physical world, a brainchild of two former google engineers. it allows the ipad to see physical objects in front of the screen so kids can manipulate them in real life. in this particular game, blocks snap together. joining me to discuss the expansion of gameplay behind the screen is the founder and ceo and designer. thank you for joining us. i am familiar with osmo. give us an update. let's ipads osmo see what is in front so we can do physical attraction. now, what we are introducing is a physical way of learning fundamentals o cf coding. emily: you have a demo here.
>> on the screen you see a character. we will tell what we want to do. we have this physical piece of code. on the screen ucb's two strawberries. -- you see two strawberries. walk up, make him walk twice, make him walk on the right-hand side. they snap together, walk once. this is actually a piece of code. you will see what happens. emily: so you build a line of charactercontrol this and told him to go eat the strawberry. >> that's right. you can take it to a whole new level and code a lot more interesting stuff than make him walk. mark: -- emily: you are like 23 years
old. why do you think this is a good way for kids to learn how to code? is abstract. it's rooted in the digital world. when you take something that is super abstract, it's difficult to teach kids how to do that. making code tangible is a great first way to learn coding. emily: he worked at google for 8 years. this is for kids -- >> 5 to 10. emily: every parent is out there grappling with how much screen time to give their kids. how do you qualify this time? what did you tell parents about how much time they should be allowing their kids to spend with it? >> when you think of screen time, you need to think what are they doing with the screen. is it a passive or active experience? everything we are launching is an active experience. is a much more powerful way to learn.
emily: how old were you when you started coding? >> 21. emily: so you are a late bloomer. do you think this can be more than a toy? is this something that can be used in classrooms to teach people how to code, or is it for fun? >> it's a great first step rate it teaches you computational coding. your learning what conditionals are, what looping are. emily: what is the future of osmo? >> i think at the fundamental do we osmo is about how build hands on attraction with digital tech. we draw, we build things, we create. emily: all right. what is he doing there? we will put some code together to let him get in the water.
thank you both for joining us. coming up, scientists set out to create an entire human genome in a lab. we will take you to the frontiers of genetic science next. an end weekend and we will bring you the best interviews -- tune in this weekend and we will bring you the best interviews from the week. ♪
spend roughly 35 minutes a day on the app. scientists are set -- sending out what may be one of the most ambitious projects yet, aiming to build a complete set of human dna out of chemicals in a lab. the proposal is outlined this week in the esteemed "journal science." researchers said their aim was to push current conceptual and technical limits by orders of magnitude and deliver important scientific advances. lotsurprisingly, there is a ethical debate around the boundaries of the science. the nih responded by saying, projectsome synthesis extend far beyond current scientific capabilities and immediately raise numerous philosophical red
to create the dna and learn from it. it comes from well what if you took it a step further and produced humans from this dna? it is similar to what came out in the late 1990's where .cientists cloned a sheep there was concern people may start cloning humans. that never actually happened. >> we first heard about this at harvard medical school. is it possible to create dna and a lab? >> it is. not the amount you would need to create the whole human genome. they are the coding element. they have created the entire genome for bacteria, even
produced a new bacteria that wasn't known to nature. emily: which scientists are funding this? francis collins was quoted in the new york times saying he was lukewarm about funding it. there may be mostly private funding in this case. emily: are there any regulatory issues that could hold this up or is this something that can go forward? it wouldsn't feel like for synthesizing the dna. there will be some ethical discussions that should take place. it will make some things possible that make people
calling comfortable. never actually happened but i think the idea is we should talk about these things before they happen. fascinating stuff. it's time to find out who's having the best they ever --day ever. the golden state warriors -- while he was a quiet night for the/brothers, their teammates made plenty of noise. the warriors took game one of the nba championship. steph curry and clay thompson combined for 20 points. the warriors outscored the cavs bench 45-10. game two is sunday and steph curry continues to crush it in the app store with his $1.99 emoji app.
>> from our studios in new york, this is "charlie rose." we begin with politics. hillary clinton delivered a highly anticipated speech on foreign policy. she went on the offensive against donald trump portray him as unfit for the presidency. trump's ideas are just different, they are dangerously incoherent. they are not even really ideas. rants,series of bizarre personal feuds and outright lies. [chng