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tv   Bloomberg West  Bloomberg  January 25, 2014 4:00am-5:01am EST

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>> live from pier 3 in san francisco, welcome to the "bloomberg west" where we cover the global technologies and media companies reshaping our world. i'm emily chang. every weekend we will bring you the best of the west. entrepreneur, a visionary, and a philanthropist. busterwants to add myth
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to that list. he wants to destroy the list -- myth that poverty and disease cannot be eradicated. he put out an annual letter were he put for this annual letter, -- by 2035t bite there will be almost no -- left in the world. here is the exclusive interview on how they choose their charitable causes to whether or not gates will return to microsoft. board isk that the doing some important work right now. the foundation is the biggest i putf my time, but then work into help as a board member. are you involved with the search for the new chief executive? >> we're working on that. there is nothing new to say.
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it is a good board. >> do you feel a sense of urgency at all? does the board fill a sense of urgency? >> i cannot wait. then again, you want to pick the best person. they will move at the right pace. >> we had the fortune of having the mayor comeback. we are very happy to have him back. your has that ever hit vision in the future of going back to microsoft full-time. >> my full-time work is going to be the foundation for the rest of my life. my wife and i are enjoying that. i get to do it in depth. i am not going to change that. i will help out part-time. >> in the 12 years that you've been in public office, technology, the industry itself has changed dramatically. -- are pioneers.
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>> the basics really have not changed. education, business, philanthropy, is still about people looking at each other and i am listening to each other and working collaboratively. you have to be very careful not that think that technology is going to do everything for you. ,hat does matter is competency the education of our kids. that is the most important thing. there are enormous changes in the job prospects for people. some of them are going to lead us down a path of some very severe problems. nevertheless, the most important thing is every kid getting a good education. and some parts of the world, they understand that. and some parts of the world, they do not. sadly, in america we do not. we keep falling in rankings. now we're lucky to be in the top
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30. we happy get away from this partisan stuff and start devoting the resources we need up we're going to have a future. >> bill, you are passionate about training our young people, particularly with computers. that mike andopic i think is incredibly important. we have been willing to create some controversy, saying that, let's help people be better. let's try out new approaches. some of this is unsatisfactory. technology can help a motivated learner. but how do you create the motivation? that is mostly a human problem. you help the teacher do it as best as possible? bill, tellal note, me what you think about the state of the technology industry right now? >> the rate of innovation is
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faster than ever. things like understanding speech and vision, taking large amounts of data and understanding that, big, high resolution screens that will be on your walls and in the opposite at home. we are in a fantastic time where finding information, scanning information, is going to get a lot better. and that will lead to productivity. we can simulate things so that new product design and innovation will go faster. we see that in biology, even understanding complex systems, and what drugs should be tried believer,m a great whether it is helping the poor or the global economy, technology can help a lot of problems. >> if you go back and look at what people predicted a few years ago, and they were so wrong. everything is been done. in the next few years, we will improve technology more than was
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done from the very beginning of electricity till today. >> exponential. an industry will that will have to adjust and change. some will do that successfully. some will not. some people have better jobs. some people have to find ways to make sure that they are included. it is going to be a serious problem. it is not just an american problem. it is a problem around the world. particularly, around the middle it is taking place. you get cheaper products, but we are employing fewer people. we have to find ways to get everybody involved. stakeholder, my bloomberg, and microsoft cofounder bill gates. some of technologies biggest names are headed to the world economic forum. we will hear from them, coming up, next. ♪
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welcome back to the best of "bloomberg west" with emily chang. stage at the world economic forum in switzerland. the salesforce ceo is there. among them, all of them sat on a single panel. they covered topics, including nsa surveillance. i spoke with them at length. themteresting, all of affected, maybe so forth the least. yahoo! as well getting those collection request from the nsa. here they are at this forum talking about the impact of their global businesses on this spying policy. >> all of them were asked, what you could ask if
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president obama for one thing, what would you ask? let's take a look. >> what one request would you make to president obama? >> transparency. understanding, so that we can help our users understand these request that we are getting, and the range of request that we are getting, and how that data is going to be used. and we want to regain the trust of our users. >> do you feel that trust has fallen because of this? >> i think so. not only in the u.s., but also, internationally. there are concerns about what the nsa is looking at. i think that transparency is something that would help. >> you do wonder what the fallout is going to be, internationally, in terms of how it is going to affect the growth of the companies. the international clients, for example, don't trust yahoo! and other companies to hold their data. >> every one of those ceos,
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at&t, yahoo!, they have all been to the white house to talk to president obama, specifically, about that issue. cisco has been more candid than any of the other company out there. fellsaid that their sales because of the nsa program. john chambers has been very outspoken about this. outspoken about this policy because it is hurting his business. about, on this panel, the need for more regulation. i don't mean to be too optimistic on his part. the uniteda that states and allies could agree on the rules of the road. how we are going to serve ale, certain -- do surveillance, if you will? results.t the failing
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ibm had weak results, which we will talk about later in the show. this nsaeally see that problem is not just a civil liberties issue. it is a business issue. >> i heard the ceo of cells for saying, look, it is not just their responsibility. look, itorce saying, is not just their responsibility. >> vendors have to provide transparency themselves. they cannot pin it all on the government. >> is he calling them out? >> i think that is the other issue, where the companies stumbled around this when it and edward snowden's leak first became known. they said it is not that big of deal. they said, we wish we could tell
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you it is not that big of a dealt. they continued to call for transparency. i'll be sure to see what those numbers look like when we can see it, and at the numbers matter that much. if it has, in fact, been a big meta gathering. yasiel is complaining about this. but they recognize the challenge to their business. -- yahoo is complaining about this. but they recognize the challenge to the business. she talkedast year, about how mobile is changing their business. let's take a look at what she had to say about that. >> it is about crossover. by the end of this year, we will have more mobile users and mobile traffic then we have easy traffic. you have to be prepared for that. actually be a big company and be fast, and transparent, and have autonomy,
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and really enable people to keep up with how we are changing? >> here's my question. she talks about mobile now for more than one year. but the same thing is happening at facebook and more of their users are going mobile. the same thing is happening at twitter. there are more mobile users and -- than pc users. but it doesn't mean that more are using them. what does it actually say about the traffic in a growth? >> their intimates of a turnaround where everything matters big-time. this business of the huge transformation we are seeing across businesses, where it is not just about adapting to mobile, where you have something you like yahoo! that is trying to find relevance that it is lost over the last 10 years, mobile provides a great opportunity to them to be relevant in a place that they have lost relevance. they lost relevance on desktop,
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and they could be relevant on mobile. their are 390 million mobile users. that is up for the quarter. that is a big change in human behavior. now that we're seeing those numbers, they can trumpet it out. but now they will be required, not actually required, but we will demand, tell us the metrics for mobile. we want to know how many users you have. >> how does it translate into sales? we know that advertising and doingare not t particularly well. iron someone, so she is not happy with that leadership. someone, so she is not happy with that leadership. >> mobile first development. it is hard to think mobile first grade a you can argue that
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twitter is mobile first. but they said that, uncertainties, mobile revenues exceed desktop revenues. we have not heard that from google and yahoo!. things tend to be less valuable on mobile. we will see how that transition goes. at some point, the companies are going to require -- we know that yahoo! was dealing with the fcc about what they did not want to disclose. disclosenot wanted their reliance on that agreement, which could expire in a short time. if their mobile numbers looked really good, they would disclose them. if they have not disclosed, a.b. they are not a strong -- maybe they are not a strong. >> this discussion is going in an interesting. , what kindor asked technology has transformed
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her like the most? that fitbit.m said they could tell when the other person was not working out. take a look at this. >> are you feeling ok? i was like, what do you mean, michael? he was like, i'm very worried about you. i'm your friend on the fitbit network, and i notice you have a workout. >> it is almost creepy. michael dell across the country could know that marc was not working out. >> both of them build their empires on the desktop. really thinking about and actively engaging in this role of -- of not getting fit. that is a thing for guys in their late 40's, i think. and i like both
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of these guys personally. but i think that they're actively engaging in learning about this world where lots of data is being collected. a new kind of social network is being created. outside of it, there is a facebook connected thing like fitbit. the sharing of data is a big part of this, but there are massive amounts of data being collected. be not collected for a few days. i am sure these guys are thinking about what this means, in terms of big business. >> what about what it means, in terms of privacy? where does the data gets stored? how do they get to see it? thinkingure they are about selling that the stores, and selling that data, and gathering the data, and spinning , not ways that can be used
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just trained to get his friends off the couch. >> that was cory johnson, our editor at large. we will bring you some information from dell founder, michael dell, about dell's plants. that is coming up. ♪
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this is the best of "bloomberg west". i am emily chang. be computerill maker actually looked like as a private company? the dell founder set down with us in switzerland. take a look. >> the hardware part is still an
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important part. the value is certainly shifting to the software. these are areas where we have invested tremendously. we had 30 acquisitions in the last five years. we built a $21 billion enterprise business in this new area. certainly, as a private company, we are intending to focus more on those areas. >> before you jump in here with some questions for mr. dell, the michael dell ad on television is a home run to left field. you went back to all these companies. >> it is kind of an inspiring ad. >> i got goosebumps. >> i didn't cry, but -- >> i appreciate that. >> what you have in your hand? and how significant is that to what you are doing?
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>> we have a new eight inch tablet. >> is this a shameless plug, or what? >> shameless plug. tablet.is an eight inch it is also an entire pc. you take it with you. if you attach it to a toefl monitor. you take it with you. >> it is just a small pc. >> is therefore the whole industry is going? >> it is interesting. i think the death of of the pc has been talked about quite a lot. still oneut there are million of these devices sold every single day. >> are you kidding? >> but on a price competition india, -- basis, in india as an example, what is the distinction of this product
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versus what apple or microsoft is doing? >> tablet business was taking off in 2013. it it doubled from the first to the second quarter. it doubled again from the second to the third. from the third to the fourth, it troubled. there is a differentiation and services. of course, the real issue is, how do you integrate this into a company's operations, making it, not just about the product, not aboutbout software -- software and services, understanding how it works with the company to make people more productive. >> you are going to try to ship the lion share to this? or are you going to still primarily be a hardware company in, say, five years? >> we still have a substantial business in hardware.
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but i will tell you, it is a good business for us. and it is a great foundation for us to build a relationship. you get into cyber security, systems management, information management. we are entering this whole age. that was tom keene with david kirkpatrick and dell ceo and founder, michael dell. coming up, the twitter cofounder will be joining us. why he says that the new start up is not a social network. ♪ >> this is the best of bloomberg
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west, i am emily chang. cofounder has a new app called jelly. pictures and involves your social network. satddition to twitter, i down and asked with him as a social media pioneer, why choose search. need -- meand not to do it. i asked myself the question, what would we build if we had to build something they could answer questions. that led us to mobile and social
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and all of a sudden we had this idea we had to do. the other part of that answer is once i realized what it was, i realized that jelly is the product is asian of my own personality. i enjoy helping people. helps -- let people help each other. >> did to start a company? >> we were going to hack on it and put it out there and see if people like it. as we talked about it, we thought this could be a good business. >> it has been out there for two weeks, how is it going? >> it is still early. it is hard to see what people will wind up asking over the long haul. there are three types of questions we see. one, should i buy this? two, how do i fix this or set
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this up? three, what am i looking at? >> that is where the picture comes in. you have to post a photo to ask a question. why is that? some questions need photos and some don't necessarily. >> this is a mobile only application right now. one of the things that makes mobile what it is our photos. it is something that tells you where you are out in the world. in my experience, most questions can be dramatically contextualized better with a photo. someyou can argue that don't need them, i think things can be enhanced with a photo so i made it mandatory so you would not have that extra decision. you have to do a photo, you do not decide if you need one. >> talk about what else is out
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there. what is missing from google? why are you trying to take them on? >> i am not trying to take them on, i am offering an alternative. i think there are some queries that are better answered via human mind than retrieving a document that his arty been published. in his information is not knowledge. information is just an ingredient. it is one of many things that is transmitted in the human mind to actual human experience. we'll ask the person the question, you get more nuance and more knowledge. >> i have been doing it. i traveled last week and broke my carry on luggage. i asked what i should buy. i got 15 different answers and
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they were all helpful. it worked out well for me. one of the things that surprised me was as soon as i asked my question, my husband asked if i was shopping. people got told that i wanted to ask this question? >> not everybody. my cofounders name is ben. is taking yourng social networks and blended them into one network. we are sending your query out to a percentage of those people. everybody am about some of the people you know got that question. >> what about questions you don't want people to know you are asking? that is what makes google great is you are anonymous. >> that is another decision we made early on. we felt it was better if you
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were not anonymous. cash and too many looking at too many anonymous services, there were too many mean things that were possible. when you attach your name to something, you behave differently. >> does that inhibit the potential gross? >> it might. we were willing to take that chance. if you're not couple asking the question to your friends, it is probably not the right service. >> you can say thank you. i wanted to ask more questions. tell me more. how long have you used it? is there a reason you can't send another message? broke a lotionally of accepted norms. we had an early prototype that was very discussion based and back-and-forth and comments. people were not getting their
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questions answered quickly enough in a valuable enough way. we switch to a model that said this is the question, answer it or forward it. we are sort of actively discouraging conversation. we feel there are plenty of other place to have that conversation. that may change, right now that is how we are doing it. >> this is not a social let work. >> we do not want people to think this is yet another social network. the simplicity of jelly is it takes advantage of what we have been building for the last seven to 10 years. people have been collecting followers and friends and contacts. to what end? we are the response to that. maybe the answer to why we have been doing that is so we can start helping each other. >> why can't you search other people's questions? i could have asked what other
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people thought about luggage. >> that may come in the future. right now, it is so early we do not have that much information to look through. down the line, we will build up questions andf answers. >> you're focusing on product now. coo was it0 -- your twitter. how do you turn this into a business? >> we are thinking of ourselves as a search business. there is a lot of opportunity that proves that is a good business to be in. we not want to get, it sounds strange to anybody in the business world, it is cart before the horse.
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itty to build up that base and prove that there is value before you can how you want to offer more value in terms of revenue and generating product. we are holding off. inthink there is opportunity the search space because there is intent. when 70 comes to jelly, they want something. usually somebody who wants to get their attention. >> we will talk but his time at twitter and how that influences the way he leads jelly. ♪ >> comeback to the best of
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bloomberg west. i am emily chang. intter got off the ground 2006. to 230hen it has grown million users. how has his experience at
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hetter influence the way runs his new startup question mark >? >> it is a different world. in three days, jelly had more accounts than twitter took two years. it is so amazingly quick. you do not keep the growth like that. we get featured in the apple app store, it was crazy. i had to remind everybody that it would go like this, be prepared. do not think it is failure. the way you have to do it is build the system that has growth mechanisms in it. you have to trust that they will work. you not want anything artificial. it --thing you won't do at jelly that you learned from twitter? go downe not going to
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all the time. again, it is a different world. we can use amazon web services to host everything. we can spin up a new server in a second. with winter, that was a lot of work. >> twitter is now a public company. how is life different for you? >> not really. it is different in that i have , i have the ability to get my phone calls answered or make a big deal when i launch a new app. that helps. is going public and it dredged up a lot of stories about the founding and drama. all whole book was written about it.
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jack overhyped his role. you are the moral compass. you are the glue that kept it together. how fair was his portrayal? i think he did hundreds of hours of interviews. i think it was fairly thorough. , he had to make someone a bad guy. he had to make somebody the fall guy. he had to make somebody the good guy. there was tooty, much sharpness. otherwise, there was stuff in there that i learned. i did not read the whole thing. scatterbrained to read cover to cover. i looked at my section and a couple of other things. there were meetings that were taken that i was not part of.
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>> looking at twitter today, there has been this history of a revolving door. are you confident that the people who are leading twitter now? >> we picked them. what i have always said is and i think this is true, twitter it needed to it needed at the time it needed them. people switched roles. no matter how dramatic it was, people switched roles and they were in the right roles. but aware the company has come today. i think that is a testament to it. >> had a product just left. that set off some alarm bells because of twitters past. people say they may be gun shy about new product. how you see their ability to innovate in the future?
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there are a lot of things about twitter that have stayed the same for a long time. there are some things that are different. >> this is something that every company faces once they go public. make dramatic innovative moves on the product side but we have to be careful because we have shareholders. the shareholders and everyone understand what twitter is as a company. bold productmake maneuvers and changes. i think they will. whenlot of questions about it is going to turn a profit. do those things concern you? >> i don't have to. that is one of the reasons we in that position.n
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i have somebody watching my back. that made all the difference. are -- or talking before about how i did not intend to make this a company. friendslling one of my and trusted advisors about the idea. he said, i'm in. and i thought he liked the idea. what is that mean? is that something the kids are saying? board, i thought i could make this. is your ceo style? is are somebody that you admire? >> it sounds cheesy, but i look jack -- evanand and jack. leader is to as a be is communicant --
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communicative as possible. i need to make sure everybody knows everything they need to know. even catch the full interview on bloomberg.com and on our apple tv app. why is top talent a top priority for tech companies? we'll talk about the value of a good engineer coming up. ♪
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>> welcome back to the best of bloomberg west, i am emily chang. tech companies are battling for the best talent, especially the best engineers. they offer perks like free food and vacations. what makes a good engineer so valuable? abbott whowith mike
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invests in enterprise infrastructure. >> i think great engineers want greatat with -- work with engineers. they want to make an impact on what they're working on. they'll work on insisting problem, they went to work at your company. >> do they drive innovation in the sense that are they given a problem to solve? or do they come up with a problem? >> great engineers come up with solutions to address a problem. in many great product companies, the problems are outlined by the design team. in today's world, it is the design team. they may have a vision for a
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product and it is up to engineering to think through how i come up with realizing that vision. there has to be a path for engineers to be able to provide in but -- input. how do we call her -- carve out time for engineers to have ideas? they had an opportunity for that innovation. great engineers love computer science. they want to be able to have .hat silence to work >> speaking of engineers and yourct design, at twitter head of product we do not know why. he said it was time to leave. there has been speculation that twitter has been a difficult create product.
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it has been the same and it is difficult to make changes. on whatyour take happened there? >> i don't have the details. i think in most companies there is a center of gravity that exists. where that center of gravity resides, there are implications for the company. with twitter, it has been the product. product person. the goals are set there. it is difficult when you have a product that is so focused on simplicity. you push to add new things. we have to balance the tension of how we keep the service simple yet think thoughtfully of how to extend it in ways that are meaningful for the users. >> you are working closely with your pope folio.
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where's the center of gravity be ? twitter has to make money. >> i don't know if there is one answer. it needsmer companies, to sit closer to the design of the product. that is what consumers want. >> the revenue team says we need to make money. >> if you have a great product, there is -- are ways to extract money from it. verywas done in a deliberate and slow way. int technology was done way advance of rolling it out. we went to be careful to not disrupt the user experience at the expense of generating revenue. having that discipline is important. thate enterprise side, center of gravity is an engineering.
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they are coming up with different types of solutions. innovation varies between consumer enterprises. manager in the enterprise company is representing the customer. on the consumer side, we did not know we had that problem. i did not know if i had that problem five years ago. that was mike abbott. is this the motorcycle of the future? there are two electric vehicle prototypes being worked on in san francisco. we will take a look. ♪
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>> will come back to the best of
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bloomberg west. tesla has cemented itself as a lifestyle brand in electric cars. motors is trying to the same thing for electric motorcycles. motors toide let reboot the commute. >> from the front, it looks like a normal electric scooter. from the side, is it -- it is anything but. it has as much trunk space as a small car. >> it is a pickup truck on two wheels. it is a vehicle for carrying everyday things. three-year-old vehicle start up. they have two prototypes in the works. this looks like something out of a sci-fi movie. it is part car and part motor
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cycle. safety of a car and convenience of a car and marry that with the efficiency of the motorcycle. adjusts --ectric but at just $6,000 it is affordable. you can take a big money and many years to in a new vehicle on the road. vehicles to get both in production this year. developing a car for me. teamed uphat, he has with a design guru. do ist i am excited to look at the complete package. how does this new type of
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vehicle become really attractive to people who know and ride motorcycles and people who never have. >> back in the office, they are working on the c-1 prototype. think they are ready for the fast lane. >> we are just creating a new type of vehicle. this is for any type of short commute. >> wherever you can get all the latest headlines of the top of the hour on bloomberg radio. we will see you again soon. ♪
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>> the following is a paid program. >> hello and welcome to the smart medicine show. we have a great show today. if you have pain or know someone who has pain, joint pain or back pain or if you suffer from arthritis or fibromyalgia, stay with us for the next

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