>> live from pier three in san francisco, this is "bloomberg west." i am emily chang. china goes after apple with china central tv claiming the iphone poses a security risk. the chinese say apple software may leak state secrets. apple has hit back denying working with any government to track users location. game on record-setting twitter, more than 618,000 tweets per minute were posted in

the world cup final yesterday setting a new record. the total volume of tweets during germany's win over argentina was 32 million. that was a little less during germany's blowout semifinal win over brazil. lyft become legal in new york? they are negotiating with the taxi and limousine commission after it was sued hours before launch on friday and they say it will not launch and become -- until is approved. callnn is hearing apple's to reduce carbon emissions and factories. the chinese manufacturing giant which makes smart phones, tablets, and more just unveiled plans for an environmentally friendly campus in southern china. the factory there will be energy efficient and use less chemicals and more recyclable material. it is part of foxconn's effort to expand into areas like auto electronics and cloud computing. we got a firsthand look at the

site in china. the foxconn chairman has a vision -- a bustling business nestled in the mountains with engineering and academics. we sent a lot of engineers, highly skilled people here, they love this place, its temperature, humidity, air, it's a good place to the late high-tech hub. is the only place aside from beijing that can be the chinese silicon valley with peking university. arehe two universities partnering with foxconn its fourth-generation industrial campusnd eco-friendly built largely with recycled steel which will produce smartphones, large-screen tvs, and house 100 or a thousand square meter r&d center and a big data center housed in an energy efficient windtunnel.

nearby, other companies are also billing -- building facilities. all three will chip in to build infrastructure around the area including a fiber-optic network. by march, 2015, the company projects an annual output of 5.6 ilion dollars in this facility with 12,000 workers on site. foxconn is touting this as the greenest and eventually most high-tech industrial park. it's not only the manufacturing process that is green. insulating and self-cleaning and they treat their wastewater on-site and even the food here is tested for safety. the chairman has said this is a big step moving forward. because it embodies what foxconn wants to do eventually -- moving up the chain and moving away from labor-intensive low profit margin manufacturing and working with the countries top brain trust to operate at the forefront of high technology industries. eventually, he says he was to service the clients at every step of the chain from components to consumer and

perhaps one day, they may even supply clients all the way from raw materials to final livery of consumer products. it might take 3-5 years. [inaudible] >> big ambitions but for a company that has 30 production locations across china and employs over one million people here, it's perhaps not too high a mountain to climb. meantime, while companies like foxconn have played a key role in helping manufacture the iphone, some in china are accusing apple software causing security problems. they say apple software tracking functions would be used to

identify activities of individuals in china which could result in a league of state secrets print apple has responded to the claim with the statement on its chinese website -- cory johnson is with me here in have udio and we crawforddelprette. what exactly does this statement mean? >> it means that apple is being very definitive saying that at the device level, this is how the information is tracked but it is not any information that apple is capturing. it's not information that apple is using. i think they are being very smart and trying upfront to say that there is positioning data that you need to figure out where you are but that is not data that apple has.

they can sort of get on the offensive and the just china's concerns up front. chapterthis is another in the tech sword fighting that has been going on between the u.s. and china and i think apple is smart to get out in front of it instead of backing away. >> there has been a lot of back-and-forth over cyber spying and the nsa in chinese hacking in the united states and china. how much could this hurt apple? there is a lot of context that's important. domestic competition within china, companies are trying to gain mind share and have backing from the chinese government and i think that ways in. we have seen a lot of companies on the enterprise side talk about slowing sales particularly in china because of the revelations from edward snowden and the nsa spying.

companies like cisco and oracle and hewlett-packard are dramatically slowing sales in china. this is different because this is a computer -- a consumer facing product. it's the context of all the companies that are using personal information to target advertising and other service companies like facebook and others. the general concern around the world about privacy and how companies respect or don't respect their privacy and what privacy means to individuals is important. i agree with you and especially the first point you made. there is a in agenda here. china has a big bet on a number of different thanks. mi, there is an opportunity to drive this agenda which is a western platform and it's not necessarily a platform that is getting most favored nation status.

that context is really important when you look at these comments which is why apple is smart. they have a product that people crave so get on the balls of your feet and go forward and take this on. >> at the same time, you've got a report out of china from an saying thataiwan the iphone six could be delayed until 2015. that is something everyone into a tizzy because we were expecting this this fall. apple headlines sell and apple and internet headlines go crazy. people like to run with anything apple and put it out there whether it's true or not. i'd doubt whether this is accurate. it would be shocking news. the notion that this analyst is reputable or this information is to be believed is nutty to me. we will see more like this, this guessing about things. >> when analysts come up with

reports, they say they are getting information from the supply chain. what do you make of this report? does it sound like it holds water? >> there will be a lot of stuff coming out. what's interesting about the report is there is a lot of discussion around some of the advanced screen technology and making sure you have consistent rendering of colors and also something i think the world stage get used to. in the it comes out fourth quarter or the first quarter, it will be a hot product. the drug testing issue which came out in that report and a 5.5 inchropping phone and whether the screen shatters and to what degree you can come i think that's an education. that was one of the most important things i read. there is a good point there which is people will have to change their expectations on what you can do with the phone and how fragile it can be when you get a piece of glass this big.

i agree with cory. we will see a lot of different stories but i think that drug testing and that reliability around color rendering is the stuff i am trying to tap into and see if there's something there. >> crawford, let us know what you find. thank you both. if you watched and tweeted during the world cup final yesterday, you're not alone. a huge television ratings and record tweets per minute, we break down the numbers next. ♪

west," on "bloomberg bloomberg television, streaming on your phone, your tablet, and bloomberg.com and now available on apple tv and amazon fire. i am emily chang. this, germany

beating argentina yesterday in the world cup final? victory whichero was the third highest television rating ever on espn or abc. the game was seen in nearly 10% of homes in the united states and it was the most-watched game of the tournament. television was not the only winner. twitter is setting some record of its own. joel blumenthal is the vice president of twitter. erlichman joins us from l.a. as well. 32.1 million tweets during the final match, not as much as germany versus brazil but does that mean that penalty kicks are good for twitter? >> if you look at the world cup as a whole, it's the one place where professionals and friends all came together to celebrate. goals and penalties and everything as it happened was celebrated on twitter and it was a huge deal.

what was the biggest social tv moment this year? maybe a selfie? >> lebron james? >> always big. if you think about the owen selfie, that was 254,000 tweets per minute. that happened almost every single match on the world cup. good thing about the game yesterday, that was 1.5 times more tweets than the super bowl. if you think about the overall conversation around sporting events on twitter, germany and brazil broke all records, 35 million tweets. >> there was a lot of engagement but what about new users? how many new users do you think you brought on? have our financial earnings call for the second quarter until a few weeks from now so i cannot talk about that. it was a big deal for broadcasters.

rfifa andwith official broadcasters. there was no other place you could see comments and analysts and instant replays so we worked in the u.k. and univision and we had instant replays of what was happening on the world cup on twitter. they got on twitter just for official content. >> what about on the advertising side? if we think about brands that may have come to twitter because of the world cup and maybe will now stay, any sense of that? about, when you think brands that celebrated on twitter, they came there because people want to connect with their passions. brands want to connect with those people. they were doing it in the moment on twitter.

official sponsors like mcdonald's were able to execute and dream up a global campaign. twitter is one of the only places in the world were you can do this. 57 countries and 15 different languages and celebrated the world cup with their brands on twitter. you also had people like budweiser who for the first time ever, the match would determine the voting on twitter so official fifa and budweiser voting on twitter. you had people like id this and as andse -- likeadid others and moments knowing could have predicted like when suarez bit another player, stickers one the moment with a tweet. we are seeing all kind of brands come to term with twitter. just to clarify -- when these big brands are focused on the

world cup, are they basically shifting all of their focus to the world cup or should we forider this two campaigns the big brands already on twitter and had plans to be there? is this an additive? >> that's a great question -- i would say this is an additive. when we work with advertisers on twitter, they have not -- they have in every day strategy. if you or someone like stickers, you care about being hungry. every day you talk about that on twitter and you have fun with people and are selling product. a moment like this, this is their chance to comment on culture whether it is the world cup or the super bowl. that's what they are doing is getting into the pace of culture and being relevant. >> you mentioned the suarez moment which was quite a moment and snickers seized it. you sought more engagement with snickers on twitter vs facebook. the world cup happens once every four years and these moments are rare. you don't know when they're

going to happen. how can you convince brands to focus on twitter first? >> i don't think it's either/or. every platform has their own strengths. twitter is about what is happening now. for every brand whether it's the world cup or the super bowl or tuesday, things are happening that are relevant to them. first and foremost, it's about what is important to you and what's important to people and how can you connect that everyday. when you think about twitter versus facebook versus television -- it's an additive part of the medium. >> what's the next big moment you are planning for? you guys actually do plan these things? with brands on learning how to be spontaneous is a big part of what we do. , we areike coca-cola with them inside their marketing rooms working with them and showing the data and showing

what's happening and teaching them and they are teaching us in many cases how to be relevant and the moment. what is next? you have to look on twitter to find that out. >> i will be watching. i'm on all the time. thank you so much for being with us. lyft efforts to roll out pink mustaches in brooklyn and queens -- a regulatory role block roadblock. we have an exclusive status update next. ♪

>> welcome back to "bloomberg west."

there is the most relevant news in your network. terms of the deal were not disclosed and it will be joining linked in, newsle. the venture arm of our parent company is a backer. lyft will head to court an hour to get those pink mustaches on the road in brooklyn and queens york attorneyw general eric schneiderman is pulling out all the stops to try to keep those cars off the road. matt miller spoke with the company this morning to figure out exactly what the fuss is about and joins us now from new york. there has been a war of words over the weekend. you have stuff coming from the attorney general's office and lyft. what is the deal? >> it's kind of a soap opera. as attorney general's office the representative of the

department of financial services in new york had been in discussions with lyft about its concerns regarding lyft insurance policy. radius lee, lyft had offered --radius lee, lyft -- previously ont had offered insurance top of regular insurance and the wantedent of financial that to be primary insurance. that wanted to make sure that lyft was not selling insurance to these drivers and making themselves the only vendor. lyft had a meeting with the attorney general's office on tuesday. they figured out what the attorney general wanted and tried to write all of those runs to the best of its ability according to the company and then sent a letter on thursday. the attorney general's office said it would meet with lyft on friday but instead of meeting with them, it went straight to the court and asked her a restraining order to stop lyft

from launching its service in brooklyn and queens. put up aney general press release on its website saying it had gotten an injunction, temporary restraining order, against lyft services but that was not the case. the attorney general been removed that statement and said it was applying for that. it did not have the planned mating or show up or call on friday. that sort of makes it a little more of an aggressive relationship between the two. lyft seems to be working pretty cool operative late with the taxi and limousine commission. in about one hour, you will see the hearing kickoff and we expect to get a ruling from the judge a few hours after that. it could be a complicated case. >> any indication which way it will go? tlc worked out stuff with uber.

>> the sticking point seems to be eric schneiderman and the attorney general. he said they were waltzing into new york to do whatever they wanted so it does not seem like he will make it easy. miller, thank you. we will be right back. ♪

you are watching "bloomberg west." lebron james returned to his hometown cleveland cavaliers instantly pushing the valuation of the team to over $1 billion. his endorsements with samsung andbeats by dre have netted moreland -- have netted more than $30 million this year. by cory johnson with more. deluca is here and as well

asari goldberg. thank you both for joining us. when the newsited got announced that lebron james is going back to cleveland. you worked with him personally, what do you imagine was going through his head when he made this decision? >> what people don't realize is ease not just a special applet by the special person and dealing with the adversity he dealt with as a teenager, he's just wise beyond his years and is just a nice redemption story. dan gilbert is the lead investor so i felt connected to both of them. a kid from cleveland, this is the most phenomenal thing we can ask for but knowing both of these guys and seeing them rebuilding the city, two of the great entrepreneurs of our time, with a homecoming story. you mentioned dan gilbert the

owner of the cleveland cavaliers. len, we talked about what lebron james is doing off the court and has the luxury of signing a two-year deal and making a decision as a free agent. is he worth more on or off the court? >> he is worth so much more on the court. he has now made the break on the like -- lake for all of cleveland and ohio. they give the fact that right now -- i was just talking with some of the nba broadcasting folks -- there are 25 national appearances coming toward the cleveland cavs that they did not have this year. that is the maximum you can have. the about the fact that he held andhe signing of 10 players that cascaded from his announcement saturday. -- you'ret the fact talking about dan gilbert -- think about the size richard nixon, who has made such a comeback in terms of perception

from four years ago in cleveland from nixon in 1962-1968 -- he is now the king of ohio. >> i thought you wanted a subsequent comeback from nixon. i have covered basketball for a long time. i did not expect to be covering it again of this job but in what ways do you see the value created, the business opportunities change for lebron james or the cleveland cavaliers by social media and by the new media landscape? from the media standpoint, you saw what the clippers went 4, 1 billion estimate for the cavaliers if in fact they have the kind of success t thathe , thehad with the finals four finals in a row when lebron

james went there. that is just the big -- the tip of the iceberg. now cleveland and ohio innocence can become boston which is used to push itseams commerce, its tourism and its entire image. storys an ohio rising which i think as business implications far beyond the basketball court. about lebron's inner circle and it had a lot of close friends. does that stay? some of them were very upset when he left cleveland and he has probably learned a lot from that experience. isin general, the media usually blowing this out of proportion. the generous or are geniuses and they're good guys and want to protect lebron.

they have known each other for years and the loyalty is unbelievable. this is a homecoming story. this is about something much greater than basketball. it's amazing to see that story told. kid fromd -- as a cleveland, ohio, this town has been done on this lock. -- down on its luck. we have seen this story before. what lebron is doing and dan is doing and these guys all came together to partner to do is something much greater than sports. it will affect every child. lebron is talking about kids coming home to start businesses and families in this town had a serious brain drain and you're getting kids to come back. it is very similar to what dan gilbert is doing in detroit. these guys need to be commended for what they are doing. it would be great to see the haters come out and apologize and show some respect for the great things these guys are doing. when you look at the way lebron -- his skills are unbelievable.

can share with us his view on technology and how he uses technology. is that different because of the generation he comes from? >> he is a leader of his generation. it's a technology driven generation. there is no debate about that. it's a credit to the work that inner circle have done alongside lebron to get him involved in deals like these. you can only make so much as an nba player. it's about the other things that you do, the other investments you make. lebron might be the savviest entertainment sports athlete does this man may be ever. -- businessman ever. they showed him rolling around with warren buffett but he knows what he is doing and you look at his nba contract. he is signing a two-year deal

for a specific reason because he knows that collected are getting agreement coming up will have more tv dollars at stake and he will cash in again. these are very savvy guys who understand technology are at the forefront of their generation. >> i saw one article refer to him as a master puppeteer in terms of how he has managed his own career. would you agree with that? how is he different from other athletes in terms of what he does off the court? justwould go with what ari said -- lebron is probably this generations magic johnson. and to thee impact business world and into the kids world and education world. that is brilliant. not only is even really an author of his own story but the 12 other players i talked about heat being the

last to sign, look at the way it was handled four years ago. non-footballated game ever seen on espn was pillaged by media critics. time, it was done so understated and there was just a page on saturday and the sports illustrated.com - he controls his fate and is a unique product. i think the other word that ari used is correct -- he is a mature product with now two rings which is pretty impressive. hopefully, rising tide will carry all boats. thank you both for being with us. still ahead, a new wearable device that works while you

sleep. we are hearing from the ceo of misfit where and you can watch us on bloomberg television, streaming on your phone, your tablet, and bloomberg.com and now available on apple tv and amazon fire. ♪

>> welcome back to "bloomberg west." it could be a huge boost for 3-d printers -- home depot will start selling them in stores. will be first available in 12 home depot stores as part of the pilot program.

erbot ceo calls it a step into the mainstream in the printers can be used to make home-improvement supplies. to misfit, maker of the shine fitness tracker. it just partnered to offer a tracker that slips in the arm mattress to give you data on your sleeping habits. or more on the sleep system, we are joined by the ceo of misfit werables and you are wearing one on your rest. -- on your wrist. in this misfit standout sea of wearable devices? >> we do similar things to what other trackers do. we just do it more beautifully. people really liked that you don't have to charge it. >> its very design focused. to me, it is one of the best looking devices out there. how do you make decisions about

look versus use? almost did not have a sensor in the product. we were going to make something that would be a reminder to help people be more active. we figured -- >> just a reminder? >> right, we started with trying to make something that people would wear. what would you wear? with all about materials and wearability and how you could fit it into fashion. world of the connected devices, we should probably put some sensors into it. >> i was thinking of the partner at kleiner perkins of the rhode island school of design who is very design focused and he was wearing one of those. take a listen to what he had to say about the product. >> i wear a misfit shine. >> i've got one of those. >> it's also a watch and i'm an older person so i like to wear a watch. it does not work all the time. >> he likes the way it looks but

it doesn't work all the time. how do you do with those kind of challenges? these are product and design challenges. >> we look at feedback. our favorite places amazon. we are one of the highest-rated amazon products in the category. people love it for the function and the form. it does not look like it does more but it does more than other products. we are the only ones that does automatic sleep tracking. go to sleep and attract you and it just works. >> you got partnerships with beddit tracking sleep and a partnership with pebble, another smart watch company. how do these partnerships fit into your future vision? are trying to get lots of information and data and whether it's off of our hardware other people's hardware or hardware we work on with other folks, it does not matter to us.

data andt getting the improving our science. apple is a company focused on design. how worried are you about an apple smart watch if that ever happens? >> if it comes out, i think it will be called the ipod watch? >> why? >> because everyone calls it the iwatch. watches are an awesome platform for getting data and information. we're are looking forward to products like that to come out. >> everybody that has a competing product, when i asked him about the competition, that's what they say but you have to be thinking about it. you must be a little bit concerned. >> we would love to be one of the first apps running on devices like that. you don't see the other companies doing that. i really think it will be about

getting the information whether it is from our hardware other people's hardware. there will be quite a few people who don't wear smart watches. there are plenty of people who don't wear anything on the rest because they don't want 10 lines. -- 10 lines. -- tan lines. $65 billion and watches sold each year. perhaps some portion of that will be displaced by smart watches and a portion of that will become smart. i think that is more exciting. beautiful watches that become smart. i think we will see some of that. >> like a smart rolex? >> maybe. >> what would the features be? >> i feel like our imaginations are limited to activity tracking and alert notifications. i think that will probably be the first wave of watches becoming smart. time, we will see more

mission-critical functionality and more compelling use cases. those cases are start -- are great to start with but we need more. will come whether it's identification or security controls, devices that can point to a light or a camera and turn off and it turns off. we will see. now, we've got some great places to start with. >> thanks so much for being with us. up, an 11-year-old boy ended up in the hospital because of his ipad. we will tell you why and google is buying more office space to extend -- expand its presence in san francisco when we returned. ♪

>> welcome back to "bloomberg west." kandi ipad make your child sick? an 11-year-old san diego boy had a rash and he was allergic to nickel. they traced his exposure to his coating.the outside the journal of pediatrics reports the boy was told to use the smart case to provide coverage of the ipad and the rash improved significantly. manyl is commonly found in electronic devices as well as jewelry, zippers, and eyeglass frames. we reached out to apple for comment but we have not heard back. yte,urn now to the bwest b one number that tells a whole lot. i am here in the studio in a moment i will not be. million, this is a

transaction completed late last week. it's an interesting building three blocks from here. check this out -- >that is the oakland bay bridge. this is san francisco. this is increasingly the center of technology in america. google acquired this building behind me on the embarcadero for city $5 million. they have also just signed a lease on the big tower back there. on 250,000 a lease square feet. google is taking a significant presence here and the city of san francisco, bigger than ever before. was onceing behind me a representative of the old

world of san francisco, the maritime building where was shipping companies. now it will be the heart of technology and you've got companies in this neighborhood like salesforce and autodesk and tons of startups. you've got a lot of companies here in the technology world moving their operations increasingly away from silicon valley and closer to the urban area and closer to san francisco which represents a big change in the broader economy. is putting a stamp on that with the acquisition of this building. that is the building their. it really does represent a change in the city in particular. these offices were plays were lots of merchandise was brought in off of the sure. -- off of the shore. they are moving away from silicon valley and the production and manufacturing an increasingly urban. >> they want the best people so isn't it all about talent who

want to live in san francisco? >> certainly, and it centrally located near rapid transit trains and the soon to be terminal and bus station. it also reflects the way technology is so much more incorporated with businesses into people's lives. the products that regular people use. >> speaking of talent and google, judge lucy coe who has been working on the dispute between the technology companies and if they unfairly did not poach -- agreed not to poach other people's employees that google at one time considered having the senior executive at google, larry page, sergey brin, eric schmidt reach out personally to employees at facebook. >> larry and sergei have insisted on meeting every higher at the company before they start their jobs. people around google have complained a bit that that delays hiring and makes it slower to hire people in a very

competitive world. i think that's an important context to understand that google is weird in that way. they have always had senior executives involved. between googlele and facebook is as intense as anything in silicon valley. >> it's interesting talking to people from the older guard tech scene, the people who were here when silicon valley was booming. imagine the future in silicon valley totally perplexed that everybody wants to be in san francisco. >> it is usually about manufacturing. i remember going to a trial about toxins released when they were making debt drives -- disk drives. that is the old silicon valley and you don't need that space anymore. >> cory johnson, thank you so much. thank you all for watching this edition of "bloomberg west."

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>> from bloomberg world had orders to new york, the fifth -- headquarters in new york, this line."tom billions pays to pay in fines. new york city prepares for the influx of migrant children laughing the border. spiderman swings into u.s. supreme court. to our viewers in the united states and those of you joining around the world, welcome. we have full coverage of the stocks and stories making heli