>> live from pier 3 in san francisco, welcome to the late edition of "bloomberg west," where we cover the global technology and media companies that are reshaping our world. i am emily chang. our focus is on innovation, technology and the future of business. following a few big stories --ay, alibaba is watching launching an e-commerce site. we do not know if it will look etsy.like amazon or a

, a redesign, really interesting. my whole twitter page is very different. it looks a lot like facebook. >> twitter is experimenting with this -- with things like this all the time. upset whenrs get things start to look different. >> that is the ultimate issue. twitter's appeal to people who do not use twitter thomas but not alienating -- twitter, but not alienating people. .ser growth is falling down they have to address that. >> we are following it news story. the obama administration is releasing new cyber security

guidelines today. to improve their defenses against hackers. they will outline some guidelines, that these are voluntary guidelines. >> it is a rising issue. in the context of what was going on with the nsa, more and more security things around digital lifestyle and where people record their behavior in different ways. >> one of the big criticisms is that it does not offer any incentives for companies to make changes. we will talk a little bit more about that. phil, this is the result of a year-long effort. is this really going to change? >> it depends on who you ask. this is a nice start, but it is

not anything that will change the game. what they are laying out is a group of b best practices. point. the key missing from this document, incentives to get big companies to really want to participate. they have to pay for infrastructure in be careful about information sharing. none of that is addressed. until it is, it will be difficult for the companies to jump in. >> what kind of incentives are you looking for? >> we think this is a very good step on the part of the administration. there is more that needs to be done, including steps congress needs to take. the financial services industry has already spent a tremendous amount of money in developing

systems and protections. we know there is more to be done because we are only as strong as our weakest link. , acrossl begin to spur -- we view this as a positive development. seese financial industry the least amount of successful hacking. what does it understand that ,laces like -- you name it target, yahoo!, twitter? >> we do not represent the consumer finance area. we look at it from a market's it. so many ways to come into the system. you are only as strong as your weakest link. what has happened in the case of target and neiman marcus that there -- indicates that there are risks. this needs to be a top i-44 the administration and congress --

this needs to be a top by wordy for the administration and for congress. >> is it the responsibility of the federal government to give the company like target incentives? companies looker at what happened to target and neiman marcus, they have plenty of incentives right now. >> how are companies like target different from utilities? different from financial services companies? >> in the grand scheme of things, they are very similar. yous point is the key point hear from administration officials. as long as there are -- is a weak link, there are major problems within the system itself. maybe a leading indicator of not only these attacks, but maybe

they are getting worse. as members of congress, if they cannot find some legislative justthese problems are going to continue to snowball. what you see with target and neiman marcus and the retailers, people are saying, we have a weak link. we have major problems systemwide. >> can, you have run experiments where you are testing out a nightmare scenario. i think you call it quantum dawn. in a will do another one couple of years. they are working with our regulators, the treasury department, across the financial services industry. we have looked at what a cyber attack on the equity markets would look like. what we learn about this, it is

not so much about incentives, it is about the need for better coordination between the industry and our regulators, the need for better information sharing between industry participants, market participants. some of that is where congress can help in providing liability protection so when the industry is sharing information about attack or sharing with the government, they do not trip other regulatory rules out there. i think we look at it more in the case of let's make sure we are all talking. it is not just in the financial services industry, but in the other sectors downstream. seeing moree engagement and activity. >> phil, with the lack of policy movement in congress, is this a simple of the toothless miss of the white house right now?

suggestionsng because it is not offering legislation. >> this is as much as they can do. i'm not perspective -- from that perspective, it is fairly robust. they are all working together on these guidelines and they have first with hundreds of companies to pull the standards together. when you get a positive response, a are doing something right. there is not a lot of legislatively you can do. until that changes, it will be like that for a while. thank you so much. we will talk about the twitter redesign. it is looking a lot more like facebook. how will that impact user

growth? ♪

>> i am emily chang. mobile payments companies like square and paypal are growing in higher. that facing levels of regulatory scrutiny and security concerns, especially overseas. could social needy a hold the key to making them more secure? -- could social media hold the key to making them more secure? you were at paypal for nine years, at google for three years. you were kind of like a guru in this space. >> i am passionate about innovation. innovation comes from the small guy. web,the early days of the people forget about the company who invented the payment gateway. guysation comes from small

. they push the limit. they is looking around corner and focusing on the next chapter of e-commerce. they have an amazing risk management asset. >> they use facebook to authorize payment, which sounds interesting. i wonder if you have a hard time -- convincingers customers. >> it is not just focusing on facebook. payments has always been about risk and technology, right? this is the secret sauce. to whenn you go back visa was started. they would say they are still a technology company. great risk systems for today's problems has always been a recipe that worked.

you can look at your facebook profile and tell a lot more about you then where did the transaction happen? >> wepay made a huge pivot. how do we know they are on the right track? >> the numbers are pretty good. look at this new chapter. for 15 years, e-commerce has been about products. used iguodala corner of your house on search online and have cornerou used to go to a of your house and search online and have it shipped to you. you have uber -- the future is these marketplaces that bring buyers and sellers together. >> it is a crowded space and a challenging space. you said just over a year ago

when you were at google wallet, nobody is delivering any solution that will get scale, including me. what are the biggest challenges? >> i was speaking about off-line. thing. long-term update today's swipe to something better? in terms of marketplaces that are reinventing services, think about the way you find a babysitter or you get your laundry done. all of these are services coming wherein a new environment consumers are also creators. fund-raising is another big one. the marketplace has a new set of payment problems and risk problems. >> we are seeing companies like square run into big problem's internationally.

the rest of the world uses chip and pen and we are behind. we are still using swipe cards. is wepay going to get the same international problems? we focus on online marketplaces. grow.is a lot of room to it is focused around the experience and the payment is an afterthought. that is what these marketplaces are looking for. >> and ebay, paypal spinoff? good idea, bad idea? but i can see both sides of it. -- i can see both sides of it. >> who is going to rise to the top? is a oneot think it

winner take all. the mobile platforms are in a good position. we are in the age of developers. really smart engineers that want to reinvent anything. anyone who caters to those, everything is a service, well also when. >> -- will also win. >> thank you for joining us. we will be talking little bit about google driverless cars and what a driverless city might look like. the results of a new intel study. ♪

>> twitter is tasting -- testing a new page redesign and it looks a lot like facebook.

it looks a lot like facebook. i thought, don't change my twitter. that is one of the big challenges when a company like facebook or twitter tries to make a big redesign. tell us more about this test. >> the company said on the call last week that they would be twitter moremake approachable for users. they will make it easier to understand. this is a move in that direction. familiar withy facebook and facebook has one .2 billion users and twitter has 241 million. >> the numbers we saw in really showedter them struggling. >> they added only 9 billion users in the quarter. twitter because it is

different from facebook and i can see a lot more in one quick look than i can scanning my facebook page. yesterday, i walked around downtown and i talk to people about why they were or were not using twitter and out of the dozen people i asked, nobody was a twitter user except for one guy. that guy had not tweeted in a year. >> this is in san francisco? >> the quarter in which they announced their ipo, they get all kinds of universal press coverage. pernumber of timeline views user declined. >> isn't that the best way to consider user engagement? >> when you want to look at -- what you want to look at is how many read tweets and favorites.

>> why don't they release that ?ind of data > >> search engagement has gone .p, for example, 100 or -- 120% it is possible to change the design in such a way that users engage more. is just a test, don't worry just yet. sarah, thank you so much for bringing us the update. robocop is returning to theaters. a remake of the 1987 film opens today. erlichman is with us to tell us more. we will get some popcorn and go see it. this is a weird story.

people have seen the trailer for this film. robocop is cruising around town on a bike, which is a ninja from kawasaki. is that your bike? the producers reached out to us and they were interested in using the bike. they could not work out a deal where they would provide the bikes because there was some beef over the branding. the producers still used the bikes. a director who might be interested in using a particular brand. example in minority report, steven spielberg wanted to go inside a futuristic lexus factory. a lot of times the brands and of being involved because the creative types are interested in the brands. >> what about the suit?

potential 3-d printing angle. we have come a long way since 1987. most -- morehe sleek look overall. what you end up with is a firm called legacy of facts, which also works on the iron man movies. designing this would some 3-d ideas. let's use 3-d printing. -- i spoke to legacy of facts and they said it was not the case. wellnot know if that bodes . they are using this in hollywood, the technology, like they are using it in the fashion industry. >> not for emily chang. thank you.

more of bloomberg west after this quick break. ♪

>> you are watching bloomberg west where we focus on technology and the future of business. hackers have hit at least one website owned by las vegas sands. they posted statements criticizing the chairman and staunch israel supporter over comments he made about iran. the company is working with law enforcement. disney is launching a program from support of techstars. they will select up to 10 startups for the three-month program. participants will get 120

thousand dollars in venture capital as well as mentoring entertainment and executives. alibaba is going to launch a new e-commerce site in the united states. the website is being developed by ali baba subsidiaries. it is focused on loading a compelling platform. francisco,in san francois hollande will be visiting, first time in 30 years of french president has visited san francisco. >> do you take a french president to a french restaurant ? apparently, the answer is yes. he is going to be having lunch with sheryl sandberg, eric .chmidt, jack dorsey , look, his agenda

france's open for business. start your company in france. >> it is the third largest company in europe. france has had issues with technology. a long list of big tech mergers that have gone poorly. the difficulty has been making the kinds of rapid changes in employment that technology employers like to make. years.ruggled for >> there are some tax evasion probes against linkedin and google right now in france. we are friendly, we are friendlier than we were before. these do not divert your money to ireland. >> good luck with that. >> we will continue to follow francois hollande and his visit

to san francisco. >> we should hit every french restaurant. >> i am hungry. to the future of american cities. is it the jetsons? decade may be upon us. 44% of people aspire to live in a driverless city. >> the changes in new york. times square is now pedestrian. byucing the number of cars taking the roads away. >> is a driverless city full of driverless cars or no cars at all? steve, what exactly do you mean by a driverless city customer >> only did the study, what is the world you would like to see? are interested in seeing a completely driverless city. a city environment where they can hop into a car, there is no

human behind the wheel. it is an optimistic view. i doubt this will happen in the next 10 years. life is more convenient, less congestion. cars tend to be safer. >> the number of people in america not getting drivers licenses. is that a notion about a sharing economy or are there fundamental changes with the way people looked at it? older, wemy age and have been sold the american dream of car is a symbol of freedom. if you are a millenial, you are see it thatkely to way. you have to pay insurance, taxes and park it somewhere. 22 hours doing

nothing. the millenial's are much more disposed to sharing cars. the ideas that you would not really ever own one. >> is this happening only in cities? what are the trends outside cities? in the suburbs. we might forget the rest of the country really still needs their cars. >> you will see more and more people coming into cities as a global trend, but you are right. people will decide what kind of car they want to drive. to take away the pressure of driving, more pressure in an urban environment. if you have been in a big city, you know how miserable it can be. the vision the car company sell you of driving on an open road. -- there is a bifurcated

notion of what a city is. the preindustrial cities of san francisco, new york, boston, you could argue tc -- d.c. there are postindustrial cities, the cities that are growing like crazy. a very different physical infrastructure that require automobiles in a different way. because most of the cities are developed after the era of motor cars, they developed around the notion of motor cars. this may be a way to have public transportation in the form of a self driving car. people are really interested in that model and very open to the idea. cars that talk to each other and share information. to be able to share information

about what might be some hazards up ahead. tomaybe to part the ways move cars out-of-the-way so ambulances and fire trucks can get through. idea, theyeally good would love to have instrumentation and trackers in our car. talked about the technology as a means to prevent car accidents and crashes. you also talked to people about drones. what is public opinion about drones? are they scared of them? thing thatthe surprised me. we have all heard a lot in the news about drones. people are understandably anxious. about 60% ofy, people are enthusiastic about drones for public service, drones that could go into a

building and inspected building, check the air for chemicals, understand where people are that might need help. for an ambulance -- if an ambulance cannot get her crosstown because of bad traffic, for a drone to stabilize the patient. >> the jetsons are the future. once a week, we do a story. there it is. >> steve brown, thank you so much for painting a picture of a possible jetsam like future for us today. ♪or

>> i want to cover a story out of bloomberg news. apple working on a set top box to be announced as early as april. peter covers apple for us and joins me now. potentialking about content players. there is a new apple tv, this is an upgraded apple tv box. it could be announced around april and it could be ready in time for christmas. we are hearing talk of a new interface that would make it easy to use. >> would this be different from the apple tv? >> we do not know. often come out with something radically different.

it is probably -- content is what they have been missing. it is still a hobby relative to the size of apple. they are preferred to it as a hobby product. it soow, if they can get they have all time warner cable content on it, now it is a place where it is a primary viewing vehicle. >> we are hearing it is going to have a processor and easier to use. the pressure has been on apple to come out with something new. it does not sound like this is really it. >> even in the tv world. we have been hearing for years any would come out with actual tv. they have a lot of big projects in the works.

they are clearly working on i- watch. it is a major effort for them. we will see whether this is an evolutionary improvement of a fairly minor product or whether this is when they start to craft the living room in a big way. >> what are we hearing about a real television set? >> who knows? clearly, apple has the wherewithal to look at a lot of things. i am sure people are working on a television somewhere inside out. there are lots of questions. sometimes the street wants margins. sometimes the street once growth. a tv would cause a margin problem for them. >> what about consumers?

consumers want new products. >> this is true. >> we will continue to follow the story. we will be back with more bloomberg west after a quick break. ♪

>> welcome back to bloomberg west. i am emily chang. vm wear is partnering up with google. cloud was microsoft office was the chrome book equal the ultimate modern desktop. >> big announcement just made within the last hour by vmware and google.

how do you describe this? >> this is awesome and it will revolutionize the way the two brands bring chrome to desktops. we are able to bring a powerful technology and load that into google chrome. >> how much software is made for chrome book? >> if you think about it, the any application ,hat you are used to using everything runs designed for chrome book. ,> what makes this interesting --seems to me it would allow

>> we care about all of our users. there is a trend towards people moving towards cloud. they have certain legacy applications they want to bring to this. they can have the clout and be able to transition seamlessly. you have a lot of customers with windows xp. as you think about the way in which you want to be able to handle many of those old --lications >> they still want to keep them on their desktop. >> it will be the new generation of apps. it will provide a lifeline to many of the old apps. it will be a bridge to the future. >> because the desktop support

will no longer be in microsoft, rather than upgrade, they will run in on the cloud and that users use a version of those apps. >> it is all customer choice. industries, this is becoming the norm. look at retail, for example. .ifferent stores all over now you have to figure out how to manage the computers and take care of those computers. you do not have an i.t. department. booksination of chrome and your old existing -- very secure. you can use them from the cloud and have them delivered to these very secure devices.

thisn you quantify announcement today? hope chrome books will be used by businesses after that. it is not just the cost of hardware. up to $5,000 over the lifetime of the single pc user. >> they are cheaper, right? >> the cheap part is education. the number of different education places, putting out these devices in the hands of kids. is going to be a big benefit. year, one in four laptops sold were chrome books.

>> it is going to improve people's lives. aside. puts tablets the tablet has also crept in there. >> it depends. think about a grade school kid doing simple math, that works well. if you want to write an essay or history assignment, you want to keep a laptop. >> google has a great story with android. stretch tobe able to desktop and mobile. >> thank you very much. >> thank you. i want to get back -- get back to that news about apple, said to be working on its new set top walks to be announced as soon as

april and to be on sale by the holidays. jon erlichman is with us from los angeles. apple is in talks with time warner cable other partners about content. what exactly would a partnership look like? thehen you think about people who use cable today and the box they get with it, you pay for that box. if you are in a position to use apple tv and still have a cable deal, are you able to do away with some of those costs? hardware, the actual apple has to stay competitive. they have to stay competitive with rope to -- roku. we just heard some on the google story. the chrome cast out at they put out at a very low price got a lot of people's attention quickly.

that is part of the story. apple has to continue to come out with new devices. >> the pressure has been on apple to come out with something new. it does not sound like the big new tv that people have been talking about. >> you have to keep microsoft in mind i'm a too. the xbox one has some of these capabilities. what do you hear about apple? they were trying to get involved in these negotiations with the carriers and with a cable operators, but the cable operators were very reluctant to make a deal with apple. they saw what happened with the itunes and the music industry. companies the cable have been especially difficult to work with. hasn't that bit of -- hazmat been a -- hasn't that been a big stumbling block? >> the biggest fear is that if

your cable bill is looking too big and too high, you are going to choose one of these alternatives. maybe this is a sign that they are aware of the alternatives are getting better. look at the numbers for netflix and that is so easily accessible on these platforms. they want to live within that world and make sure they are relevant to those people what they are still being relevant to anybody paying for cable. it could be smart if it is executed in the right way. they are scared about it because the technology is enabling people to shift away from the traditional way. >> it would be nice if you did not have to pay for cable and netflix and apple tv. >> some fantasy land where emily chang lives. >> we will continue to follow this story. thank you for watching this edition of the show. we will see you tomorrow. ♪

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>> welcome to "lunch money," where we tie the best in business news. take a look at the menu today. don't bet against emerging markets. blackrock's chief explains why. another exchange from the virtual currency. in the fed, we have the new boss, the taper, this is a bloomberg exclusive. to the batcave, and in sports, shaun white is grounded. the u.s. loses its best hope for gold.