>> live from peer three in san francisco, welcome to bloomberg where recover innovation, technology and the future of business. i am emily chang. google glass makes it available to everyone, at least anyone who has $1500 to spare. the self rhyming car hitting the roads in urban areas and all of those robots acquisitions, is google becoming a hardware company? the stretch of specific post where that has -- coast where whether he was illegally keeping

the public off the beach. his bizarre testimony. carl -- include a including carl levin and john mccain pushing for online user data. a senate committee will hold a meeting tomorrow over concerns that companies are collecting data about people unknowingly and using it for advertising purpose. the iphone market share in japan soared in the year ending this march, up there to 6.6% from the year2er 25% before. japan's largest wireless carrier began carrying the iphone last fall. samsung has issued a rare public apology, saying it will compensate workers who got cancer after working in the semi conductor plant. dozens of former workers say they have contacted --

contracted leukemia and other blood related cancers after being exposed to chemicals. samsung fell short of the connection between cancers and chemicals used at its plant. google opening its glass doors after opening of sales of google glass to the public for one day last month. the company now letting anyone by google glass as well -- long as they're willing to sell out $1500 a pair. comes as google is making other ventures into hardware. the self driving car being tested in urban areas. then a question of what google plans to do with the robot companies it has purchased. joining me to discuss it heat patch all in new york. i have a pair of glass of my own.

-- pete patchell. it is not the full on consumer launch, but now anyone can buy them. >> i think this part of what they continued -- started last month with having it available for one day. up until now the main people with glass have been marketers, people who have the big interest in self or motion. i think google really wants more regular people, people who want pictures of their kids and share them and help word of mouth for the product in that way. are wearing glass, i am wearing glasses and has cool features but i did not find myself reaching for it all the time. it is like a new habit that has to be developed. it is funny, i was wearing glass once and asked someone for

the time and they looked at me like you are wearing google glass and do not know the time. there is a habit you need to get into. once you do, it does have a lot to offer, particularly when you want to take autographs and share them quickly. instagram apps come, will probably happen at some point although nothing has been announced, i think it will be much more natural. there have been quick charitable moments that you can capture and share that after you do them once or twice it becomes very why wouldn't i want this on my face? i have had people tell me they do not think it will ever go mainstream. do you think this will be for a select group of tech hobbyists or more use in the enterprise system or do you think regular consumers will want to buy this? >> enterprise certainly. they have a very strong interest in this type of product because

having this access is a proven thing. very helpful for many professions. for the mainstream, i think they wanted to go mainstream. i really think google needs to do a rethink on the design. , it kind about glass of looks like a segway on your face. it attracts a certain amount of attention. two or three asked me about it on the way here. it is a telegraph you are wearing it allergy. i think in subsequent generations i think google will want to dial back the often tasteless design. then i think you will have something mainstream. >> i have to say i am hesitant to wear them in public. brian womack joining us on the phone. he just took the test drive in the google driverless car.

testingy they have been the cars now for years. i have driven and one of them myself three years ago. what is it like today? >> very smooth. them off toto show reporters yesterday because they have really been tackling the issue of getting them to work on surface streets. not just freeways but surface streets. navigating the yellow, red lights all those things. in there it did a pretty good job. i was impressed. more gentle than i might have expected. in the car three years ago it was a little bumpy. a littleing was abrupt. would you say this is closer to being ready for prime time? >> yes.

good and bad. one stop where it was such a nice soft stop. very well done. the drivers ed teacher would have been proud of you. there was another time where it gave a lot of following distance to the car in front of us because of other issues going on around a railroad track which i do not think most of us would get that much space. there is a lot of progress here, but it is not perfectly analogous to a human driver yet. line up?es this all driverless cars, google glass, robot companies for my day becoming more of a hardware company? --hould mention motive motorola mobility did not work out so well. >> that is true. i think hardware is secondary to the bigger page -- picture that larry page sees.

is a big ambitious project type of guy. of reflect that. by that nature you will get more into hardware. with motorola a very complicated thing. andas to do with patents licensing ip. they did not want to become just focused on cell phones. that kind of thing will be part of what they do, not the whole picture. isi know that google speaking with automakers about self driving cars. can you give us an up date on these discussions? >> they were not forthcoming with the lot of details but they did say we are having talks of driverless cars with auto manufacturers. this is still a ways off.

still talking about four-year time horizons yesterday. a lot to be talked about and worked through before these things hit the mainstream. >> brian womack and pete patchell, thank you both for joining us. face ofe has become the justice in silicon valley. lucy coe has presided over cases involving some of the biggest tech titans involving samsung and apple but who wish he really? that is next on bloomberg "wes t." ♪

>> i am emily chang and this is bloomberg 'w"west." a senate report out today looks at online advertising and cyber attacks and what companies like google and yahoo! should be doing about it. it says the complexity of online advertisement networks exit hard

to stop online malware attacks. self-regulation has not been enough to ensure security. make and use is with us now. what can you tell us about today's report? >> the name of the game, malve rtising. it points to growth in mainstream sites and what we are seeing, sites like the new york times, san francisco chronicle all hosting advertised malware. that is the big problem, sometimes not even requiring additional clicks. right now the consumer largely pays the price. reports shifting that price to the industry. very committed and cyber attack.

>> they need to know who is on the website. they need to know who the hope -- who they are going through and who can take advantage of the opening to provide malware. that newport concludes efforts that self-regulation within the industry should be the first step. self-regulation would be the ideal. also the industry's best interest according to senator mccain. if it does not work it looks at actions by the ftc and congress. coming on the heels of the presidential review on big data that are commended congressional action. we're hearing the drumbeat for regulation coming out from the white house and now congress. laming theeport industry for allowing the attacks? >> it is not blaming them but

certainly saying the industry may be more capable of dealing with this than your average consumer. mccain specifically pointed to google and yahoo!. pointed specifically to an attack on the yahoo! network right after christmas when a lot of employees were off from work. he said it involved using people's computers to generate a coin. said the industry needs to take more responsibility, not necessarily laming them. >> what are we expecting? >> tomorrow we will hear the industry perspective on all of this. we will hear from the chief information officer ayako. we will hear from the senior product manager at google, george salem. we will also hear from regulators. the federal trade commission and different advertising group.

and also the self-regulating body. the big question we are beressing tomorrow, can industry really police itself and deal with the problem or does the government need to step in? excuse me. sorry. may confuse in washington. hughes in washington. now to the woman who could be called the face of justice. judge lucy coe has overseen some of text most controversy oh trials. she is overseen the three-year patent infringement battle between apple and samsung. but who is she? joins me here in the studio. you have been inside her courtroom for many days over the past several years.

what is it like to be in harcourt firm -- and her courtroom? >> it is interesting because these trials are sometimes very dull. covering very technical deal of -- details. there comes a time when she issues a ruling or indicates andh way she is going to go those moments are very interesting if you're covering the trial. has a very candid way of expressing herself. tell me about the time she told an attorney it sounded like he was smoking crack. >> she was tired. toward the end of the first trial. she had the impression that lawyers were adding work to her and her staff, adding paperwork for her to get through. to beld him you have smoking crack if you think i am

going to do this. that is an interesting thing to it is not what you would expect. she just speaks her mind. veryny ways v plainspoken. she is a brilliant judge dealing with high-level issues in technology but speaks about it and address it it in a very plainspoken way. >> are the attorneys differential? >> they are. there are many women on both sides of the case. various senior positions. the trial lawyers are men. the ones doing the closing .rguments and opening arguments there are more men than women. it is interesting to see a woman handle the personalities.

they treat her with the utmost respect. they know who they are dealing with. >> judge lucy coe appointed by president obama, correct? >> correct. both beennd samsung found to of branched -- a fringe. we are waiting on that ruling. but thank you so much. >> thank you. voice of the body will take place may 28 in san francisco. the event says it will be a new conversation around the future of health but no other details about what samsung plans to announce. coming up, more of bloomberg

"west." do you hate grocery shopping? you are in luck with the new service planning to deliver groceries in as little as an hour. ♪

>> welcome back to bloomberg "west." emily chang. a batch of companies big and small are angling to disrupt the business of food shopping. we spent the day with an ambitious young startup looking to outsource your trip to the local supermarket. be an engineer at amazon. now going head to head with amazon's grocery business, amazon fresh, with his own fresh approach.

>> we do not have her own warehouse, trucks or use dovices to fedex and ups to the delivery. we do that all in-house. customers order groceries through the apple or website and get the incoming order and then hustle them to you in as little as an hour. today florida is filling an order at the rainbow grocery co-op. the shopping list, organic apples, carbonated water and pretzels. online grocery deliver is nothing new. >> to keep costs low, instant relies on low-cost providers. today's order is heading to a local startup. work readyt at

regularly. getting snacks for the team. yogurt. >> delivery ranges from four dollars to $15 if you need your groceries in an hour. drivers can earn up to $25 per hour depending on the workload. .ax it is a flexible job you choose your own hours. >> raising upwards of $11 million from big-name venture firms. currently delivering in big cities like san francisco, new york and l.a.. be in every major city in the united states by the end of the year. for necessity? created the he service because he did not have a car himself and therefore, needed a way to get his own groceries delivered. alibaba could become one of the

largest tech ipos in history. speaking to one of the companies first investors. ♪

>> you are watching bloomberg "west." first cloud data center opened this week in hong kong marking the move towards international expansion for the chinese company and comes just after they filed for the u.s. public offering. one of the companies first investors was a d.c. firm focused on the u.s. and china that took an early bet back in 2002. jeff richards joins me now. what was it back in 2002 you saw

with ali baba? -- alibaba? >> jack had a relationship with one of our founders and you have to go back to the moment in time. a very big vision for what he wanted to create over a 30 year time frame and if you read the perspective, they have a 100 year vision for the country. >> it has not all been smooth sailing. he took some public, and now going out again. theyou think those bumps in road are behind them? >> every company goes through challenges. they did go public. now what you have is the group going public. it did have a $10 billion market cap.

public.group is going like every entrepreneur, bumps in the road make you stronger. not breaking does down how each of the businesses are doing. overall sales and net income are strong but we do not know how each individual is doing, which could lead us to believe growth could be slowing down at one or the other. what do you know? >> they do not break it down. a lot of companies do not break it down. there are five or 6 million merchants. very large, very successful platform. the world's largest e-commerce market is in china. market thatommerce is growing. global payments are growing. investors get excited about the ipo, looking

at some of the parts and not as a concerned about underlying division betting on the demand. opportunity in china and the rest of the world. >> how much are they concerned with going global? i think every company wants to be a global company. they certainly have the resources to do it. china is the world's largest e-commerce market so their primary focus is in china. recently there have been investments in the u.s. in different parts of the world. certainly part of the long-term plan just like it is for other chinese companies like i do. >> they have been making a number of strategic acquisitions around the world in the united states. how likely are they to succeed in the u.s. market in particular? the u.s. companies have not succeeded in breaking into china. lex we have: vested with them for a number of opportunities.

we think they are taking the right approach. a high percentage of success given the brand and strength of the team. amazon, google, these are some of the iconic leaders of the tech community. how to execute on a global basis. >> you just raised your sixth fund, six hundred $20 million. how would you describe the fundraising environment right now? we have been talking about whether there is bubble and a lot of capital seems to be flooding into the private tech market. >> i think what you see is a number of funds raise capital. the interest is high. i know the fundraising process we have a lot of demand in a relatively short process.

i think that is a reflection of returns. the returns have been exceptional. a lot of firms returning more capital to investors. i think the other thing is looking out over the next 3-5 years and see massive disruption in cloud, wearable, enterprise technology. we are investing over the next three-five years. somewhat pegged to the current market conditions. capital have a long-term investment. i think you see a lot of opportunity for the long-term view. >> do you think we are in a bubble? itit is hard for me to call a bubble when we have had the five-year sustained run of exceptional performance by companies. i think if you look at first-quarter performance for the companies that have pulled back momentum name and consumer internet, 90% of them beat the revenue and earnings target. the companies are performing. not like there is underlying cracks in the foundation.

think a lot of that happened with hedge funds in particular pulling back the division area >> what about a company like square? reports theyen might be running out of time. lex if you look at the opportunity of square going after mobile payments, ebay gets wordy billion on annual mobile payment volume. a square is going after gigantic market opportunity. one of the best entrepreneurs on the planet. so i would say we remain very bullish on square's opportunity and would not believe everything you read. go public. about to another company in your portfolio. what are the prospects? >> they are defining the category around customer care with an exceptional team that has grown of business at a very

high growth rate. i cannot comment specifically on the ipo process. i would say we believe companies can go public in good and bad market. the market is a little volatile right now. other companies notably struggling with that process. we are excited for whatever path they go down. >> we are expecting a big chao misment from ca aspect of the global player. >> i think they're much more than just a smartphone player. u.s. company, we would be reading about it every day in the media. one of the greatest success stories in the past five years of tech. fastest company to grow billion in 181 months. valued in the tens of billions today. incredibly innovative company building terrific hardware and

software. it is a brand that people in china loved. an iconic brand. it is a software company a lot google. a lot more to this company that i think people in the u.s. will become more aware of in the next few years. thank youhards, for joining me. we will have complete coverage of the news event in beijing tomorrow. we will show you the latest products tomorrow. right here on bloomberg "west." b&b for retailers. we talked with san francisco company helping digital's sellers bring their business to brick-and-mortar stores next. ♪

>> turning back now to wiring the world series. this week looking at how we are changing the future of retail. allowing sellers to gain popularity and customers.

a san francisco company is helping them make the jump into brick-and-mortar. storefront connects brick-and-mortar with retail space for rent. ceo joins me now in the studio. thank you for joining us. bnb foralled the air b retailers. how does that work? >> we work with those on the street fair to a neighborhood boutique. and we will rent that's pasted to the lead through the platform and setup the store and a matter of days. >> tell me who is using it. i know one of your customers includes kanye west. >> yes. he has worked with our store.

maybe do not have the brand name. gettingre you there are a lot of space is vacant or looking to increase foot traffic. they are excited about listing the store for storefront. >> you are not canvassing the city for empty space. these people come to you? >> exactly. half have been referred through current users. thent to talk about importance of physical store space. >>, and is it really? >> how much does that drive up sales? >> is it significant. >> 94% of all commerce is still

through brick-and-mortar. it is a huge channel. and we want to make it more accessible to those that are making something in the house or garage and not sure unarmed -- the next step. in can do wholesale which it did this division channel. brick-and-mortar really allows me to control the message. >> any numbers on how much it actually adds? >> brand multiple of 1-7 multiple. >> what about the prospects of l be one ofil wil your customers like target or

nordstrom? >> we are working with a few larger retailers that want the local makers on site. exactly. you have seen this with a few companies likeetsy wholesale-- like etsy wholesale. i am a kick starter, i will raise a bunch of money. let's connect them with customers and create a compelling experience. a lot of matchmaking going on today. >> are you looking at partnerships with etsy? sellersrk with a lot of with them and ebay. we are agnostic to where they are selling online. we want people with really compelling products. peoplenb has had trashing apartments, tax issues and legal problems. how do you handle that kind of thing? >> we have not had a problem yet thankfully. hisy we are working with

missive on both sides of the platform. not necessarily a consumer getting into business they are not aware of. as mrs. looking to grow their business. we protect them on the back end with an insurance product. -- businesses looking to grow their businesses. we have a five million dollar insurance policy for every rental that protects both of the platforms. >> thank you for joining us. is a billionaire venture capitalists trying to keep you off this beach? one environmental group a lead so. it claims next. watch a streaming on your tablet, phone, bloomberg.com apple tv and amazon tv. ♪

>> welcome back to bloomberg "west." i'm emily chang. take two interactive reported earnings because of the block ester hit grand theft auto that gave a big boost to company sales with more than 33 million copies sold. grand theft auto five the most successful release in videogame history. the take two chairman explains why that kind of success is a good thing. is continuing to feed more success. not just grand theft auto five that continues to sell but ran theft auto online. that is a first for us. it is true not just for grand theft auto but a number of the other franchises. >> he also said the company is working to add more franchise hits like grand theft auto. him an fair" calls and

eco-warrior for donating to causes. he is now being sued by environmentalists who claimed he illegally shut off the only road to a popular beach just outside san francisco. california law prohibits accessing -- blocking public access to beaches. university of california hastings law professor john but she joins me in the studio. this is a beach called martin's beach, a very popular beach with surfers. what is your take for what is going on here? >> it is pretty complicated and there are two different lawsuits going on. the outcome is a little hard to predict. these are questions that might involve robbery law and a relatively new regulation of the coast and the coastal commission act. almost certainly will go up on appeal. a tough issue. >> like the most common thing he

said in his testimony this week, i do not specifically recall. that? >> of answer is a little unusual that he does not recall details like that. what we have is a classic battle between property rights and access to a treasured rate soars on the california coast in the culture of the california coast. or does not remember is not that central. the lawunderstand it, says you cannot develop the withoutia coast permission. he claims he is just put a gate up. does that count as development? >> that is the question being litigated right now. predecessor allow public access to the beach and has decided to close it. the question is, is that closure

development? the california supreme court has never addressed a question specifically like this but has said the idea of development should be broadly construed and the idea of the coastal act was promote protection and access to the coastline. i would say he has an uphill battle. itdid the prior owner allow out of the goodness of their heart or because they had to? >> i think he would probably get different answers depending on who you ask. the prior owner did allow purely open access to the beach. even if he loses here and has to get a permit, the question will be, can the commission deny him the right to close or can it make open access? anything withdone it with the exception of the state. we do not know what his current plans are. does it matter? >> if he wants to do anything in terms of development like

building a new house or anything, he would need a coastal permit round the commission. the commission might be able to demand him to provide access as a condition for getting the permit. lex how you see this playing out? do you see this playing out? >> a very desirable property from a public access point and from a privacy rights aspect. those rights are in collision. the california coast commission is set up in part to provide and improve public access and for all citizens of california. we have wonderful resources in california and happily, a lot of the really scenic and desirable property in california is publicly owned him a which is a great thing for the quality of life in this state and that means a lot to a lot of people. >> a similar thing happened in malibu. i believe he lost.

what is the precedent out there? to some extent, each of these situations is controlled by its own local the cure where facts. if he does nothing else but simply deny access, then he has better argument than it he comes to the commission and says i want to do this and that and give me a permit to do that. this depends to some extent on the facts. >> what if he does that later but not now? >> than the access issue will probably come back. people feel very strongly about the private property and people who use the beach feel fairly strongly about being able to have access to the beach. this particular case i'm if there is no other access to the speech other than across this property. thene said it may go all way to the supreme court. is that possible? >> sure. it is a fairly common thing. these are very strongly felt

issues on both sides. the chances of ultimately going to the high court is a very good one. >> a case we will continue to follow. john leshy, thank you for joining us. time now for the bwest byte where we focus on one number that tell the whole lot. john ehrlichman with us from l.a. >> i am a simple guy and bring you a simple vite. -- bite. is mark zuckerberg's 30th birthday. he has moved out of the 20's. we will see if he can be an innovative 30 plus-year-old. obviously we have been so fascinated with the story of it is an important highlight. >> i am feeling really old right now. he has accomplished a lot more than any of us in his short three decades. thank you.

thank you all for watching this edition of bloomberg "west." you can get all the headlines at the top of the hour. ♪

>> from bloomberg headquarters in new york, i am alix steel. this is "bottom line." today, the russian foreign minister says ukraine is as close to civil war as you can get. search continues for the missing growth in nigeria as the escalates. president obama's fundraising estimates -- fundraising efforts. to our viewers in the united states and those joining around e