>> live from pier three in san francisco, welcome to the early edition of "bloomberg west." i'm emily chang. is on innovation, technology, and the future of business. how to fight cord cutting as more people ditch cable and watch tv through the web or on mobile, we ask the dish network ceo what his company is doing to keep subscribers. busesit was luxury

whisking workers from san francisco to silicon valley. now google is trying a ferry across the bay. does this mean more competition? and an investment that has paid off big time for the once team company. buying the movie "filomena." now it is a box office hit with three golden globe nods. has been changing tv viewing habits and companies are trying to change with it. they have been showing off what they think is the future of television at the consumer electronics show this week. you have cable and satellite companies trying to innovate to keep subscribers. time warner cable announced it lost 215 thousand video subscribers in the last quarter. dish, on the other hand, just

unveiled the latest expanded set dvr.oxes for its you can record eight shows at the same time and watch four of them simultaneously. all of this without having cable. you could even record shows using google glass. i want to get to jon erlichman who is live from las vegas at ces. tell me about these new dish features. is a lot of watching. i do not know if i would ever do that, but it is nice to have the option. dish is making its presence felt here. joseph clayton, the ceo, is here. you have mastered the art of ces, the storyline, heading attention. tell us about the hopper initiatives you have been focusing on, using google glass as one of the options.

technology to better improve the experience for the consumer. i will give you a couple of examples. allowser joey product you to record eight programs at one time. if you have a multiple tv households, like i do, there is never enough capacity to record all the shows that the family wants. we have something called the wireless joey. in a lot of homes, you are limited where you can put the cable box without a coaxial hookup. this is wireless and will work anywhere. last but not least, we have something that will eliminate clutter in the home. instead of a separate box, you can hook it up to your sony playstation or two an lg smart tv. >> it has always been clear you

embrace technology, yet, the broadcasters sometimes get frustrated at where their newent is going the abyss technology. it has resulted in some legal battles. is this something you can settle as friends? we arewould think against advertising but we do have a billion dollars in advertising every year. the more important question is what does the consumer want and how do we better use technology to target the consumer and give the messages that they are going to watch. >> are there any hard numbers that you can share with us on implementing this new technology, making it available, that it has resulted in new customers or keeping customers? probably too new to have statistics, but we do know addressable advertising is more efficient.

ultimately, that is what the advertiser wants, to spend his money as effectively as possible. that is the message we are getting across. >> you spend your days working on all sorts of partnerships, allowing your technology to be used, deals with content providers so that you can make their content available through dish. disney is one of your longtime partners. a lot of people wondering when you may reach a new content deal. can you give us an update on that? discussions are ongoing. we are talking about the future of television. it is over multiple years, but it will take some time. we will end up with something that is as mutually beneficial for the disney corporation, dish, and the consumer. there is the constant questioning about the wireless strategy for dish. i will ask about t-mobile. a lot of people wondering if you want to buy t-mobile. technology company we

look at all technologies, all our options. there are multiple possibilities for us to get into the wireless space. that could be one, but there are many others. right now we are focused on acquiring spectrum, which really gives you the purview, the way to get into the wireless space. the trend is like oil, gas, and you cannot get enough of it. we are accumulating spectrum and we believe this will give us the four-way -- foray into the wireless space. whatat do you think about the ceo at t-mobile has been able to do? >> i think he has done a good job of changing the consumer offering in the wireless space. i give him a lot of kudos.

>> last year i asked you whether we would see some type of deal between dish and directv. a lovely a question you have been asked 3000 times. ,t is important to ask wondering about how long people will stay with video service. is there a benefit of your companies coming together? what is the latest on that? >> it is another option, as would t-mobile. honestly, you are still in a saturated, mature market, even with directv and dish. wireless is the growth market, and that is our priority, going forward. >> earlier we spoke to the ceo who has been doing some boxing with the broadcasters. what about the idea of having your own type of aereo service?

>> we are used to boxing with the broadcasters. again, it all comes back to technology. cost can give us a lower that we can pass onto to the consumer, that would be an option. but there is a lot of water to catch. the courts still have to rule. it is more speculation than anything else at this time. -typeat about a hulu service? a similar question, is that something that dish would be interested in? >> you mean that service that does not have as many commercials in it? [laughter] of course, we would be interested. thehing that could improve experience of our customers or potential customers. we talked about boxing, and you have that kangaroo mascot.

>> super joey. he is a fighter like me. >> i remember getting my kangaroo a couple of years ago. joe clayton. forget buses. how about a boat? google will now be ferrying employees from san francisco to headquarters in silicon valley. more on that, coming up. ♪

>> welcome back to "bloomberg west." i'm emily chang. google.mmute for reportedly, a ferry is taking employees from san francisco down to redwood city. the service started on monday. presumably, another shuttle would pick them up in redwood

city. this after buses carrying employees have gotten a lot of heat in the city. this is a photo of protesters blocking a google bus. companies like apple and facebook also shuttle their employees down to silicon valley. they have become a controversial symbol of income inequality in the city. now they are going to have to pay to travel on city streets. a longtime san francisco news man about this, a former executive vice president of "the san francisco chronicle." it is quite a provocative debate. on,his issue has been going income disparity, socioeconomic cultural wars, probably since the 49er days, when the magnets of gold and silver were building these huge mansions amidst a lot

of poverty. more contemporary times, as a reporter, i remember in the 1970s when gentrification became a word, people worried about what your people moving into their neighborhoods and throwing them out. >> and it is not just san francisco. in any city with a burgeoning industry around the world. in central and south america, asia, everywhere. tech companies have really boomed in san francisco, taking out huge corporate office spaces, and they are revitalizing -- we both lived here -- revitalizing certain neighborhoods, but at the same time they are driving up real estate prices. some people are happy about that, others are pretty. piss factor is not high

enough, with all due respect, to all those people yelling at the buses. war where it is chest to chest, but nothing is really happening. what we are talking about, charging of these shuttle companies, who will then pass it on to the tech companies who can afford it -- i think it is a dollar a day per stop. >> we have not been able to figure out how much they will pay. of city bureaucracy, you cannot make a profit. that is estimated at $1.5 million. if you do the math of the cost these companies will incur, maybe around $8 million. tobe there is $6 million play with to make income inequality smaller intemperance is go.

the separate cisco board of supervisors recently said that we have had the wild west. have you been to the streets in manhattan? >> you are calling out new york city. then there will be a bust, as inevitably there will be. it will go up and down. i do think there is an inexorable push of low income disadvantaged communities out of san francisco. -- i remember when willie brown first ran as mayor. he basically had never been to hunters point. there are still places in san francisco that are still struggling where people can find places to live, but they are being pushed out. >> the people in the lowest are complaining,

middle-class people trying to find an apartment. there is not enough housing for people. it is so expensive. especially around the bus stops. everything is inflated. housing costs went up 26% between 2011, 2012. where i used to work, there would be cockroaches on the table where we would eat, but now there are those blue bottle is $30shops where a copy or something. i do not know how much it is. it is a change of culture. >> what about the sudden wealth aspect of this. more recently you have seen tech companies and founders making exits at gigantic multiples, valuations, a phenomenon that i do not believe you have seen in

the past few years. endhere was a story about of year bonuses in 2013 were pretty good for people in the financial services industry, and there was a trickle-down effect to those people that sell services to these people. i think we have to question whether there was a trickle-down effect. in the 1980s, japan airlines would fly japanese tourist over and connect with japanese owned businesses, and would give them a credit card. i do not think we are seeing anything like that. an effect ofably people taking advantage of the fact that there are wealthy people here who are spreading their money around a little bit. how about ferrys instead? ces is all about the newest gadgets, but how about this for an experiment?

jon erlichman broke out some old stuff to see how people would react. you can also watch us streaming on your tablet, phone, and on bloomberg.com.

>> welcome back to "bloomberg west." i'm emily chang. that's john chambers said cbs could be a $19 trillion opportunity. he says this could lead consumers to buy more goods as well as services being delivered more efficiently. last year, cisco formed a group to focus on the internet of things.

people from around the world flock to ces to get their hands on the newest and coolest gadgets, but how much of a difference is there, and can they tell? jon erlichman conducted an experiment with old gadgets to see how people would react. the consumer electronics show, where you are bombarded by tech that is exciting and new, or is it? to show people some old stuff and see if they could tell the difference. k44 stereo headphones. they have a dual stabilization band or comfort. >> very light. >> a little bulky. from asus.the eeepc in between a pc and a phone. >> very light.

>> kind of heavy. >> does not clot look like windows -- does not quite look like windows. >> in theory, this is supposed to have an energy-efficient band , a light sensor. >> i want to go fishing with them. the light sensors and how it fits to your face. >> they seem like regular sunglasses to me. >> kind of random. this is a metronome. turn up to speed if you want to pick up the pace. >> i am used to seeing the one that goes -- cool. >> do you guys use gps? >> on our phone. >> how about the fitness attributes?

first impressions of this apple watch? >> i would rather have something like this man the samsung version. >> would you pay top dollar to that -- for that? >> i have been wanting one of these for a while. watch, is that what it is? iwatch?is is not an >> you could name it that, but this is an ipod touch. >> i love that, jon. that was pretty awesome. what did you learn from that little science project? >> in defense of some of the people here, you are bombarded with people saying, check this out. you could probably say anything about anything.

until you get out in the real world and try it out, that is one of the things about all of this stuff you see here. it was a fun experiment. >> i bet you could have folded me. see you later in the show. it is time for on the markets. alix steel is in new york. you caught up on what is happening. a pretty mixed picture looking at the markets. you can see the dow jones down 5.4%. the s&p just moving into negative territory. 0.4%.n adp employmentat report coming in earlier this morning, but not enough to really move the needle. that will be the fed's data coming out and then the jobs report on friday.

jcpenney shares selling off big after the company reaffirmed its look or the fourth quarter, saying they were pleased with the holiday performance, but did not provide monthly sales data. more "bloomberg west" is ♪

>> this is the early edition of "bloomberg west." i'm emily chang. for your top headlines. one day after four u.s. air's members were killed in a helicopter crash in england, there has been another incident. a navy chopper had to make an insurgency -- emergency landing off the shores in virginia. one person is missing. u.s. congress is getting more involved in republican primaries tea year, hoping to defeat party republicans. thomas donohue says the chamber will be backing candidates that

favor trade, energy, and immigration reform. new developments regarding chris christie. mails, theyhe e- write it was time for traffic goblins. lane closuresthat were to get back at a mayor who refused to endorse him. as we mentioned, john chambers and the so-called internet of things could be a $19 trillion opportunity. one company that could benefit from this is arm holdings. i want to get back to jon erlichman who is at ces in las vegas. what more can you tell us? >> the chip industry is well represented here. arm intel to qualcomm, to holdings.

with me is the ceo of that company. talk to us about where you will find arm technology on the floor. pretty much everywhere. >> that is right. cannot tell with these devices that there is a microprocessor inside. that is because there is a chip in their built by one of our licensees, a powerful microprocessor that enables what these gadget do. wheren you think about your business is going, apple has been an important business partner. apple does not come to ces. .ooking for clues on innovation does that matter that they are not here? >> there are so many companies here showing off innovations, be it big screens, handheld , newes, tablets, phones

internet of things are emerging devices. apple, signingof a big deal with china mobile, how does that affect your partnership with them, does that change anything? not particularly. with china mobile or with any iter big company like that, is all about enabling volume, enabling choice to consumers. there are lots of devices out there, handsets, tablets. the more we can proliferate the world with them, the better. >> you are coming off of five consecutive years of growth. we have seen trends like this in ,hina, to lower end smartphones not that they are not good quality, but they are priced

competitively. for many years, intel was behind the curve in terms of being in the smartphones. what does that mean for your growth story, going forward? >> the advent of entry-level smartphones is a great inc.. so many more people on the planet can get access to smartphone technology. at $700, are priced they will only be accessible to a few people. now we have the ability to get all the benefits from smartphones. smartphones or as little as $60. we think that will help to drive volume. that is what we are all about. things are some of the you are thinking about when you want to keep a customer away from an intel, google, any other big player? about working in close

partnership and creating an ecosystem where it is easy to use our technology. we focus on core building blocks and partnerships with companies that will make it easy to use our technology and lower the cost, so that people can focus on their own innovation. we are focusing on this partnership these to make sure that everything is open and easy access for what we do. >> it was interesting hearing the qualcomm ceo talk about arm server ships. >> workloads have changed over the years, and that is an opportunity to learn about the power of the cloud-based servers. arm's business model will allow lots of people to participate in this market. like intel are pushing more energy-efficient chips. what does that mean for you? >> more competition.

improved energy efficiency is a good thing. loads more computers being deployed in the cloud service. competition keeps everyone on their toes. >> appreciate the time, the ceo of arm holdings. thank you. new gold and loans are happening omena" hasy and "fil been nominated for three of them including best motion picture. we will be speaking to the director next. you can also watch us streaming on your tablet, phone, and on bloomberg.com. ♪

>> welcome back to "bloomberg west." i'm emily chang. in $13 millioned in funding despite -- $34 million in funding despite court trials. the general market area is very unknown today. that is something we need to get to. the strategy we have been tribe of early adopters.

we do a sitting and we allow them to preregister. we have been relying on word-of- mouth growth thus far. aereo is now in 10 cities and plans to add five more by the end of march. the movie "philomena" is up for three golden globes this week including best drama and best screenplay. the movie brought in $20 million at the domestic docs offices, a breakout success. director stephen frears is with us. he is also the director of "the queen." congratulations. how much do you think these nominations drive attendance at the box office? >> i know the oscar nominations drive attendance at the box office, which is great. >> so the oscar nominations is

what matter? >> i know they went up with "the queen." the nominations matter almost as much as the prices. the oscar nods are coming out in a week or so. what are you hoping for? >> every single one in the world. >> [laughter] story, oneabout the that really pulls at the heartstrings. an irish woman forced to give up her son at adoption. how did you come across the story and make it into a film? before i turned up. a journalist was told about this -- the irish woman had kept quiet for 50 years, and then told her daughter. her daughter ran into the journalist, and it went from there. a book was written. steve coogan bought the book and then started to write a script.

it grew and grew with judi, and then i turned up. >> the film has become controversial, starting conversations about the catholic church selling babies back in the day. what do you think about that controversy? >> about the catholic church selling babies? i think it is not a very good thing. how about the discussion that the film has started, the criticism of the catholic church. >> the catholic church, it is quite easy to criticize. the is interesting is comparison of this institution which is full of holes and corruption, and a very devout catholic woman who does not lose her faith. the catholic church ought to be on its needs with gratitude that

devout this was so celebrated. the weinstein company is known for heavily marketing their films. do those kinds of things pay off? >> i do not know. i live in england. much too sensitive, we do not know about such things. >> what has been the reception in england? >> it has been fantastic, made a lot of money. >> you have said in the past you are cheap when it comes to making films. this is a technology show. can you give us some examples of how you have used technology to make movies on a small budget? >> i now use digital cameras, digital editing. you use what is around you, make use of the modern technology as much as you can. i am not in the position to spend a lot of money, i do not have a lot of budgets, so i have

to survive on my wits and the talent. with awards season coming around, what are you expecting, are you going to the globes on sunday? no, i have to go back and work. i'm in the middle of making another film. already done incredibly well. i am on my knees with gratitude. to ask for more would be -- >> for your next project, you are working on a lance armstrong bio pic. >> it is not a bio pic. he did in those 10 years when he was doping and lying and bullying people. that sounds like you are not cooperating with him. is he working with you? >> i have not asked for cooperation. >> what are we going to see?

i think you have to wait for that. i just finished shooting it, so i have not looked at it yet. it is an extraordinarily modern story. thatam looking forward to one. good luck at the awards, even though they do not matter as much as the oscars. tank you for joining us, stephen frears, director of "philomena." from parking to highway driving,audi's autonomous -- we will take the latest self driving car for a test drive, coming up. ♪

>> welcome back to "bloomberg west." self driving cars may sound like it thing of the future. we have often asked the question when google self driving cars will be on the road, but if you here.di, they are already they are showing off a car at ces that can drive on the highway without any one behind the wheel, and it can park itself. >> the car of the future is not something that is coming, it is already here. ons are starting to take more responsibilities than drivers used to do. tom here at ces with audi see how they are combining these sensors and functions to create new semi-driverless vehicles. differentowing

technologies here, including cars that can effectively drive themselves through highway traffic. we are in traffic right now and the card is monitoring vehicles around it, lane markings, road boundaries, basically following traffic like a human driver would. >> you have not touch the steering wheel this entire time. >> now the driver can relax and do something else. he does not need to watch the car. is showing cars that monitor your alertness and stop the car when you fall asleep, and can park without you behind the wheel. did you see that? car, pushed athe button on his smartphone, it park itself into the spot. no dings or dents, no nothing. controlledomputer- steering, acceleration, and breaking. sensors all over the car

detecting what is around it so it knows when to turn, straighten out, speed up or slow down. car that cana drive itself through traffic be something that we can see available? >> we will make this technology available in the next five years. the technology is ready. what is keeping us is legislation in most parts of the world. >> automakers love to talk about the joy of driving, but the fact is, more than half the time there is not much joy. parking, sitting in traffic. these technologies remove them from your responsibility. perhaps the car of the future at ces this week. you can watch all of our ces coverage on your phone, tablet, bloomberg.com, and on apple tv as well. check it out if you have not done that yet. much more after the break.

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>> welcome back to "bloomberg west." i'm emily chang. addition,on the later as we have been discussing for many tech attendees, ces is the event of the year, but one company has been conspicuously absent and always is. that is apple. we will look at why and what that means, at comnies sng have come up with new technologies. past the hour, which means bloomberg tv is on the markets. alix steel has more. >> a big mover we want to

highlight, forest labs rallying the most since the 1980s. anotherbe buying pharmaceutical company. carl icahn says that things seem to be going well. the board andgs others more accountable. looking at an s&p that went into negative territory. biglly the fed minutes is a mover, so we will look for that at 2:00 p.m. in 2013, there is a lot of debate about where the market is headed. some made a shocking call that the index would be up 18% this year. this morning, betty liu asked why he was so bullish. it is a higher probability

that the s&p will be up 20% as opposed to flat. have a fighting chance to grow at 3.5%. on a terry policy is still extremely loose. and politicians appear to have a lot less damage they can do. put together, it seemed the likelihood is the trend continues more explosively than people expect. -- most people expect single digits if we are lucky. to 15%hink five percent is more likely, but the point is, you could still have extreme upside this year. >> so maybe a surprise might be what? >> that the fed does not taper as fast as people think, or we get much better growth in the first or second quarter. the fiscal drag from the government is abating dramatically next year. all of that could push stocks higher. the cult of equity in the u.s. was destroyed in the crisis.

you are finally starting to see people come back to equities, so technicals look supportive. on the markets again in 30 minutes. "money moves" is next. ♪ ♪ to "money moves" where we focus on alternative asset. we show you what investors and entrepreneurs are doing him as well is what is going on in hedge funds, private equity, real estate, and more. my special cohost for the hour is jason kelly. we will talk about the expectations of increased investment in real estate. plus the cio of george washington university will join me. he says u.s. stocks remained the best investment opportunity in

the new year. we will get his reasons for that, his take on other asset classes as well. the creator of a texas-based app will join us. the company allows users to create untraceable, disappearing messages. compliance departments may not want users -- we will take a look at that in just a few moments. we are going to get you down to d.c.. the fed is just releasing its minutes from december. i see some headlines here. what stands out to you? fedack in december 18 the announced it would begin tapering its bond buying a $10 million. we know about the debate that went on -- went on around that that table. the minutes suggest there were some at the table pushing for anything bigger taper and members are growing more worri