>> live from pier three in san francisco, welcome to "bloomberg west." signs of a turnaround at black terri -- we will see. the company is reporting earnings. we go inside one of yahoos nerve centers to find out how they are making apps more personal. first to check on your top headlines. twitter is getting ready to release app install ads for mobile developers to boost

revenue. the ads will appear in the mobile twitter feed and direct them to a mobile app store where they have to be downloaded. ads have boosted revenue at other social media companies. demand for electronic devices over the holidays posted a record profit at foxconn. sales growth was strongest in two years. it is driven by demand for the apple ipad and iphone sprint apple is foxconn's top customer accounted for 40% of its revenue. charter communications is not throwing in the towel on its hopes of buying time warner cable. it is urging time warner cable investors to reject the takeover offer by comcast. charter says the comcast bid is vulnerable to regulatory issues. the 37 billion dollar offer by charter was rejected earlier this year in favor of comcast's

35 billion dollar offer. newton blackberry fourth quarter earnings showed small signs of product sales were down 64% in the first quarter. it is the first time it slipped below $1 billion since 2007 but profit jumped 532%. it is much better than a $4 billion net loss last quarter. >> yes, but it was worse than a year ago. when i look at these results, i inc. of -- i think it is stemming the bleeding but the bleeding stock at worst. the company still lost a lot of money, they lost half $1 billion in cash in the corner. the runway is getting shorter and john chen will make big changes. >> he says they will stop losing

money in 2015 and start making money in 2016. i got a big tax refund from the canadian government and are expecting another one and they are selling up most of their canadian real estate so we don't know how much money they get the that should improve cash flow. >> he gets a lot of credit because he has done this before and i carries a lot of weight. nobody believed him that things worked going to get better but when he says things get better, he gets credibility with that statement because he has done it before. >> he is a convincing guy and charismatic. i talked to him about whether he was crazy to take this job and the first lace. investors like what they hear from him because shares are up 16% since he took over. i asked him how confident he is today versus how confident he was when he took the job. take a listen -- >> i feel better every day. the results show that.

all the indicators are doing well. the cash burns are doing much better. inventories are doing much ofter in terms of managing that in reduction of that, we are losing less money, cash positions are quite good, products are being developed, strategies are laid out. i feel very good about our chances going forward. >> how about morale? it is probably one of the better stories. in the last four months, we had to go through a lot of ups and downs. we had to do some very difficult things that affected employees. we are at the tail end of that journey and are looking forward for growth. we are looking forward for our engagement to not only the outside but inside the company. gel butre starting to we still have work to do. people are feeling better. >> you laid out some key areas

hardware?, what about we know market share has dropped below one percent, how can you change that number? >> i don't know where you got that number, the numbers keep bouncing around. we still have quite a healthy business. over -- release, we saw we sold over 3 million handsets in the last quarter. multiply that on an annualized rate is about $12 million. it's not a humongous number but it is not small. we have a number of relationships out there like with foxconn that will push some of the phones, the lower end phones into the emerging market and we are designing some really high-end phones here in waterloo and ottawa in many different places around the world. wellect them to do

especially in the enterprise space. we will come back. numbers looking at q4 for idc - what about the white house? we understand they are testing android but the president has been a longtime black every user. how much are you lobbying them to stick with a very? >> i don't lobby the white house. ourust make sure they know roadmap and understand where we are going in terms of boosting our security, productivity, profiles and the technology behind it. cannot comment on the white house testing any other devices because this is obviously their choice. i'm sure the white house will want to know everything there is to know out there come a different types of variations and i respect that but i still believe that black area is the choice -- blackberry is the

choice. a couple of days ago it was announced that we one sort of vacation to run on the dod network. we are the first one to have that. i am comfortable in our positioning in the government. >> what about becoming a google android for mobile business users but only software and services and hitting rid of the hardware completely? wouldn't that be more profitable? and to endnd solution. we have to see how the market develops. toht now, it's important look at all the resolutions. we are not only on the handset side and the server side, we are also in the messaging side and we also have our own nocs which mixes the most reliable out there and we have the embedded technology that we

literally have the market -- the lion share of the market area there is a lot of good technology. when you look at it together, it is an end to end solution. that does not mean we can apply the same technology to other people's devices but that remains to be seen. as of today, we have uniqueness in our handset that our customer likes. >> you have introduced a more secure version of bbm and lots of stuff is going on in the messaging space. what do you see as the future of bbm? will compete in banking and chat rooms? why wasn't bmm whatsapp? bbm, are very focused -- there is a lot of security built around it. i believe the government and the regulating industry love using it so we are creating more

features, more communication and collaboration features. we see a good future of bbm in enterprise. that will go hand-in-hand with our server strategy. big will make us a very differentiation among all the social messaging systems out there. >> how about cars? in have a strong foothold cars and apple and google and microsoft are there as well. how do you see that playing out? the long-term strategy is to be the internet of all things and everything connected. yes, we are doing phones today and it's about the device talking to different devices. you asked about cars and that is the other end of the spectrum which is the connected car. we own the lion share of the tainment, terms of info

car management systems on the dashboard and all that. we have a technology called qnx which is a secure technology where over half of the industry uses it. it is compatible with the other devices like the apple play, car play, what google is working on as well as microsoft. there is a consortium out there. which we are one of the leading providers. i am very comfortable about our position on the connected car position. that should give you a hand that -- a hint that we would like to branch out to jason's --adjacents like homes and that will become all things internet. >> john chen, ceo of blackberry.

coming up, facebook is pushing boundaries, now trying to connect the world with drones and lasers that can they find a scientist that needs to make these dreams a reality? that is next. ♪

>> welcome back. facebook is at it again, on a huge buying spree. first it was whatsapp and then ascnta and aerospace company that makes drones. >> why wouldn't a social media company...? >> they think drones and lasers and satellites will help them connect the world. >> perhaps come i wonder how much of this is mark zuckerberg looking at his stock were -- a stock price and thinking it is too high and thinking about the bubble word and he wants to

acquire things now with shares. this is a relatively low-cost acquisition. would be the cynical perspective. the optimist perspective would be it's a big part of his internet.org plan to get the internet to every single person on earth and this is a huge focus for him. google is trying to do with raw bamboo loans and facebook is taking a different approach. they are trying to beam broadband to remote corners of the planet. >> is a google-like approach that anything that grows the internet will be good. intel-like approach that anything that expands computing will be good. it sounds like facebook feel secure about its market share goals and will continue to dominate social media. the interesting thing is the talent they are looking for print they are looking for rocket scientists. they want to get them to work at

facebook, not your typical facebook developer. >> it is rocket science. is a hiring competition with a different class of people. against no longer going google and apple but looking at lockheed in nasa and trying to get people or will need to get people to compete on those levels. announced their facebook conductivity lab where this will be happening. we will keep our eye on this and see if it is just a billionaire's dream or something more. from potential facebook employees to the people behind yahoo! news roddick -- it is all about personalization. marissa mayer said that is her big thing. yahoo! labs inside to find out how it works. i amron brockman, the chief scientist for yahoo!. is what key the lab

scientist used to support a wide variety of products in yahoo! we've technology to understand what new stories users like to read and apply that in the product on the yahoo! homepage and that gets one billion clicks per month. one of our greatest emphasis is in mobile technology. you are probably familiar with the yahoo! mobile weather app. in order to find photographs from our database, we need underlying strong computational thinking to figure out how out of a vast array of millions of photographs, to find the ones that match the right time and place. this is part of the general theme that yahoo! labs has around personalization. it could be news stories that are important to our advertisers come matching a high-quality delightful ad and a user who just needs to see that at the right time and place. people our product

create exciting products but we don't flash yahoo! labs in the front. personalization at internet scale to one billion users. >> the yahoo! chief scientist they're taking us inside yahoo! labs. we don't always get a behind-the-scenes look like that. >> we have a cool story coming power and energy composition and usage and tell you how ebay completely transform the data operations there being more energy efficient. it is an interesting story on the effect technology is having on the power industry next on "numbered wes." ♪

>> welcome back. we are talking about ebay. it may seem like a seamless experience when you are browsing

have a million items but behind the scenes, there is a very complex web of data centers and makes all of that possible. >> it takes 20 megawatts of power -- that's what it takes to power a city, to power ebay. it's a man's use of power and is not always been efficient. efficiency is the key to this. >> joining us now is jonathan coomey. been working on data centers since the late 1990's? >> yes, that's right. >> you know this inside and out but why focus on ebay? >> there have been many companies who have tried to use information technology to become more efficient but not before now wanted to talk about it. when i approached ebay last the, i was teaching at stanford business school and was open to having my students come in and interview their managers about how they transform their

it i.t. operations to become vastly more efficient. >> the energy consumptions of data centers is like two percent nationwide. andhat will not get smaller we are pushing toward more use of these data centers or enterprise computing as well as for your consumer application. when you access data on your smart phone, you are using a data center. >> how did ebay compare to other companies? >> we looked at the way that they design their management. i will talk about that because the differences are important. when you do this from a strategic perspective, you need to think about the whole system. you need to think about the total cost of delivering computation and most companies that's not how it is. it usually works at the facilities pay the electric bill and they build the cooling equipment and the i.t. department buys the computers but they have a separate budget and don't care about the others. >> so they buy all the stuff but

they don't give a second thought to how much juice they will use and might run up the cost of the company? >> exactly right. the silos get in the way of thinking about the whole system. ebay has started to think about the whole system which was their first step. they saw the power bill going through the roof and they saw also that changing the way they wouldion enterprise i.t. help them become more agile as a business. it's not just the cost story. it is a profit story. did the ebay power bill compared to amazon or google or other big tech companies? >> the big ones you named, almost all of them have made the management changes that need to be made to become more efficient. the data centers you don't hear about, the enterprise data centers, companies who may -- whose main companies are not computing are where the deficiencies are. >> give us some examples. >> give its manufacturing or

retail, everyone uses data centers. this is the age of i.t. there is a rate and scope of change by i.t. being more rapid than any time since the industrial revolution. >> do their unexpected costs drive more business toward the amazon web services and rackspace is an, is that managed to dissenters? -- that managed data centers? >> i think what you will see is that the companies that do cloud computing, the hyper scale data centers, they will start pulling enterprise i.t. business from these companies that are now managing your data centers and not an efficient way. that will be a big transition because that is not the way cio's think of their job. they think of themselves as keeper of systems but in fact, they should the are biters of information services. they should help broker within

the organization -- how do we get this information service in the cheapest way. , thanks forkoomey breaking it all down. coming at down, and recent horowitz closing a huge deal, 1.5 alien dollars and we will speak with scott cooper coming up. ♪ >> bloomberg tv is "on the markets." stocks are rising on friday after two days of losses. there was a report out earlier showing that consumer spending rose by 3/10 of one percent last month, the biggest gain in nearly three months. we're watching some individual stocks like knowing. the dreamliner is getting a vote of confidence from a&a holdings on aadded more planes shopping spree print the second stock is mankind.

the inhaled diabetes and is facing fda scrutiny. there are to work but safety concerns. the stock is down by about nine percent. we will be "on the markets" again 30 minutes. ♪

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shares of cbsk, outdoor arising as the billboard company goes public and getting digital advertisement is a focus for cbs outdoor. the ceo tells us that the company plans on adding 100 new digital ill boards every year. digitalreat thing about is you can be so much more creative. you can change adds across the u.s. based upon who has just scored in a football game. this is different from outdoor media and the past were somebody went out with a letter and a bucket. activist ipo parent company cbs corporation owns about 82% of cbs outdoor. two-hour special weeklong series on the role of design and technology -- in conjunction with "bloomberg businessweek" - we are talking about wearables today. >> i have downsized to only one.

>> you are wearing all of them. one have downsized to just but i am a big fan of fitbit but it's an interesting experience to its variance -- to experience the differences. >> we have the guy who designed the fit bit and you designed the whistle which is a fit bit for dogs. also the one for babies. >> it is more than a baby monitor. you can be more aware of the babies situation, fever or not, movement or not and so on. >> i understand there is some you strap around your cat. >> yes. >> what goes into the process of designing something you're going to wear every day? issue withest

designing things that are on the body is that you need to fit onto a lot of different bodies and there is a huge variety and big size and small size people. many of these pieces of technology are quite cumbersome and you want to soften its and make sure you are comfortable wearing it a long time. that makes it even more connotative. a lot aboutng is yourself imagine how you feel your sense of comfort but sense of psychological comfort as well -- devices,ou wear these where more than anything including close and jewelry. >> you wanted to be an expression of you. >> what do you try to do as a designer? >> there is an issue of variety and an issue of making other people feel you've got the

coolest thing around. you don't want it to be invisible. >> it depends. some people want to flaunt it and some people want to hide it. people thought it would be more introverted but i think it's a matter of person to person. they thought people would hide it but this is different. >> right, that is one of the solutions. will be very populated, maybe overpopulated and we need to look for other places. there is a whole bunch of new sensory technology that will not fit on the wrist. we will probably be fitting technology in all sorts of laces around the body and people will sometimes expose it or less. >> what about google glasses? >> i think it is a laudable

experience to create a new type of device. typical from a social and psychological perceptive. to lockumans and like eyes and we want to make sure the guy we are talking to is actually locking eyes with us. >> i know some people have the glass but are embarrassed to wear it outside. >> it is a difficult topic. it not sure in the long run will succeed but it's an important experiment. that is showing the difficulty of the psychological demand where denies -- where designers excel in sorting these things out. people are getting rashes other has been a recall. talk to me about how designer recovers from that issue? do you need to redesign it? >> i don't know much about that specific issue and i would rather not talk about it directly. we are dealing with a lot of new

them have some of been used for years and years. cognizant need to be of human sensibilities and sensitivity and deal with these very cautiously. >> thank you for being with us. stravaivity tracking app lets users collect and share their exercise data. we will show you how it works. >> it is pretty cool stuff. more "bloomberg west" in a moment. ♪

>> welcome back. so many apps out there to help you track how fit you are. i have downsized my strava

which is an interesting app. companieslots of acquired by the clothing maker in portland. million and has $25 lots of users of this thing3 . the cofounder joins us now. this is an interesting arena because the sensors are out there and so many more ways. you have to focus principally on the phone? >> actually, if you look at the model it is cross-platform. some is on the tablet but if it is not and i today but we also have mobile apps when you are riding your bike or running. part of our focus is to create the network or platform so that

you would have access to your information regardless of where and what you are doing. >> you have partnerships with google glass and jawbone? >> we are on dozens of devices. we have our app or you can track your runs arise but there is everything from google glass to devices and wen just launched on samsung. we want to take the data to guard listen where it is coming from and provide context. we want to provide motivation. >> do you find any device works better than another? is a wristband better than glass? we understand our specific athletes. strava is refocused on a particular area of the market. we support runners and cyclists and triathletes. based on that, we can create a tracking device that meets their needs specifically. i have personally found that i am the most fit when i am

about checking my workouts whether it was the swim team in high school or triathlon training. differentdo it in ways with these devices and your app. is that typical of athletes? i feel there are people just work out and the geeks like cyclists to want to measure everything. , our cofounder and i met on the crew team at harvard and at a built in motivation from competing every day against other teams and your own teammate. you graduate and the motivation was gone. when you look at our mission, it was to simply motivate and entertain that athlete want to have a busy life. by having that data available on that connection with other athletes, there is a social component that is important. >> how can you get someone like me to overcome this gigantic barrier of being too busy to exercise? how do you get someone like me

on your platform? >> we recognize there is a way in which we can find your friends print you often have social groups yourself and would pull those together. we did not make a new committee but recognize that communities already exist very he might be part of a gym or a club and there are opportunities to access that through styrava. and then we integrate with instagram. those photos will show up on strava and then there is a community and you are actually out running and training you had not realized it happened. >> thank you for being with us. bytet is time for the big number. jon erlichman is in l.a.. >> speaking of running around, $125 million is thebyte for this friday. there have been studio executives running around because of the big movie this weekend, "noah," the epic film

which takes certain liberties with the original story. the director of this film is known for films like " black swan" had back and forth with paramount the distributor. we will see but it is still supposed to be the big for par at the box office this weekend. >> what kind of reviews is this getting? >> we don't have time for that. the biggest issue has been whether or not you are a purist or you are ok to go to the movie theater to see a movie. on that front, many people will there will be great visual effects to watch for. >> i read the book but it did not expect the movie. >> you mean the bible? >> i met the book. >> i'm curious. this is the year of the bible of the box office.

from mark burnett to darren there is a belief that everybody knows the stories but once you start producing these movies, you think what story are we telling and who are we going to offend as we do this? that is some of the contentions rounding this one. " the bible" has done pretty good at the box office. >> my sensibility is more mel gibson rather than charlton heston. thank you all for watching this edition of "bloomberg west." we will see you next time. ♪

>> from bloomberg world headquarters in new york i am mark crumpton. today, russian troops massed in grade as president obama concludes his european trip and then chinese ambassadors overwhelm the u.s. green card program. today's version of rosie the robot or -- riveter. to our viewers here in the united states and those of you joining us from around the world, welcome. we have full coverage of the stocks in stories making headlines today.