>> from our studios in new york city, this is "charlie rose." >> we begin with the negotiations in vienna about iran's nuclear program. the deadline is sunday, july 20.

the iranian foreign minister spoke earlier today. he said there has been enough progress to justify an extension. john kerry spoke earlier today. >> i am returning to washington today to consult with president obama and leaders in congress over the coming days about the prospects for a confines of agreement -- for a comprehensive agreement as well as well is a path forward if we do not achieve one by july 20. including the question of whether more time is warranted based on the progress we have made. as i have said, there has been tangible progress on key issues. we had extensive conversations in which we moved on certain things. there are also very real gaps on other key issues.

what we are trying to do is find a way for iran to have a peaceful nuclear program while giving the world all the assurances required to know they are not seeking a nuclear weapon. i want to underscore, these goals are not incompatible. in fact, they are realistic. we have not yet found the right combination or arrived at a workable formula. there are more issues to work through and more provisions to nail down to ensure iran's program will remain exclusively peaceful. we will continue to work. we will continue to work with the belief that there is a way forward. but, and this is a critical point, while there is a path forward, iran needs to choose to take it.

our goal now is to determine the precise contours of that path. i believe we can. >> joining me now from washington, karim sadjadpour. he is a senior fellow at the council of foreign relations. what happened over there? we have a proposal announced by the foreign minister of iran. we have the secretary of state's response. what exactly is the progress and what was the stumbling point? >> if you look at what the foreign minister has suggested, he wants to keep the enrichment program intact at its current levels. that is unacceptable to the u.s. however, there has been progress made the enrichment facility. the iraq heavy water facility, which is supposed to be modified to produce less plutonium and make it more proliferation

resistant. the critical issue is the shape of the final agreement. any agreement will have a sunset clause. the iranians want to limit the sunset clause to 3-5 years. the international community wants 20 years. >> what ray said is correct. looking at it from the perspective the u.s., barack obama has two major priorities. he wants to avert an iranian bomb. he wants to avert bombing iran. the challenge is not finding an agreement between president rouhani and the barack obama. the challenge is finding a

document in which the u.s. congress and the iranian revolutionary guards can agree upon. both netanyahu and the iranian supreme leader can agree on. the challenge is finding a diagram in which iranian ideology, u.s. domestic politics, and israeli national security intersect. >> it is not simply that if you can find an agreement in which the u.s., whether the president, would be assured that they had signed an agreement that they would limit their capacity to break out. and if in fact the supreme leader signed on to that, you would have a deal. is it that simple? or do other people have to be involved in what is acceptable to them before they sign off?

>> there is a major gap in the numbers. iran doesn't want to drive the current a reverse. they want to maintain what they have. in 7-10 years, they should have an industrial scale nuclear program. the u.s. wants iran to significantly curtail what it has now. it is said, a decade from now, iran will be granted what it has right now. there are huge gaps that remain. when you contemplate the alternatives to diplomacy, a return to the status quo, potential escalation, sanctions on our end, iran moving forward with its nuclear program a disastrous war which barack obama does not want war, president rouhani -- -- >> what part of the negotiations we haven't spoke about, a step-by-step reduction in

sanctions -- will americans stand for any reductions in sanctions in a significant way? ray? >> the existing proposal that the foreign minister has on the table will be unacceptable to the u.s. congress. it is unacceptable to the obama administration. if you look at congressional legislation that has passed, there has to be a significant reduction of the nuclear capability. at this point, the iranian proposal is unacceptable. the legislative and executive branch. >> what do you make of the fact that the supreme leader said iran will insist on having

190,000 centrifuges, way above what americans would accept? >> he was reflecting the iranian position to rid his position is not that different than his negotiators. upon the expiration of the sunset clause, we will expand our program to meet our mistake energy needs. in that sense, he is not out of step with his negotiators. they agree after expiration of the sunset clause, they have a right to be treated as any other member of the npg. >> would both of you look at both of -- look at this proposal and say, these are reasonable proposals? >> charlie, the foreign minister's proposal is not

sufficient to reach a deal. but is sufficient enough to see a continuation of the negotiations. back to the supreme leader, his recent advocacy of 190,000 centrifuges -- or around 100,000 centrifuges depending on what kind of centrifuge -- that was a classic position. he simultaneously advocated, supported the diplomatic negotiations. that set the bar so high he undermined his negotiating team. it brings up the question whether the hardliners really want to see a nuclear deal. dating back to the hostage crisis, the hardliners in tehran have manufactured and prolonged

external crises for internal legitimacy. this is the big challenge of reaching a deal with these forces in iran. >> i think karim sadjadpour puts hand on the issue. he is not going to own a nuclear deal. he will not take ownership of an agreement that drastically reduces iran's capability. going forward, that is a huge problem. he establishes red lines in his speech in september. he has maintained those broad red lines and imposed those on his negotiators. if he continues to do so, the negotiations are going to be prolonged. in terms of their actually get

into a final settlement, that might be difficult. >> it is it -- is it simple and provable because these the groceries and have been taking place, and they had restrictions built-in, iran is not at a place in might have been with no negotiations? >> that is probably right. in the absence of negotiations, iran has expanded its capacities more. it it would have installed more centrifuges and develop center -- a second-generation. that would be called located by the fact that the economy would be in more difficult shape. there has been a trade-off. nuclear expansion has come at the price of economic contraction. iran's economy would be worse, but the nuclear capabilities would be more dangerous. >> we always ask this.

how close is iran today? >> i suspect is the same place it was six months ago. because of the freeze in caps imposed on its capacity. depending on who you ask come of the estimates are six months to one year. if they want to, they can move to nuclear weapons capacity with that speed. there is sufficient time for them to be detected. that is the essential deterrent against that move. >> when you talk to members of congress about iran, what really animates them is less the nuclear ambitions and the more its position in the middle east. the rejection of israel's existence and holocaust denial. the support for hezbollah. it is much a domestic policy as a foreign-policy. herein lies the challenge.

the obama administration is trying to reach a technical resolution of what is essentially a political conflict. the supreme leader has made clear these negotiations are not about improving the u.s.-iran relationship. this is an arms control deal. at its heart, the conflict is about mistrust. what ray is talking about is correct. it is difficult to bridge this mistrust gap while maintaining it politically. >> are there any kind of conversations going on in iraq because of the threat of isis that might mean a level of coverage and -- conversation about things beyond the nuclear? >> i suspect john kerry has had

side conversations with iran about iraq. this amplifies the income ruins between the revolutionary -- incongruity between the revolutionary ideology and national interest. when you look at it in terms of national interest, israel is a potential ally. over the last month or so, this was another opportunity for the supreme leader to put national interests ahead of ideology. whenever he has had the opportunity, he has put ideological interests before national interests. that is why i am not optimistic we are in the verge of a diplomatic breakthrough. best case scenario, we can reduce the tension on the nuclear front. >> the tragedy of -- he has subordinated national interest

to ideological interest. opportunities have come and gone because of his feelings. >> we will be right back. stay with us. ♪

>> reid hoffman is here. he is the cofounder and executive chairman of linkedin. he is also a partner in a venture capital firm. where he focuses on a number of opportunities. his new book is called "the alliance." i am pleased to welcome reid hoffman back to the table. >> great to be here. >> did you give justice to my co-authors? >> they are serial entrepreneurs and authors in their own right. ben and i, that was our first cooperation.

>> what did you set out to be in your life? >> there was a version in which i was aspiring to be you. >> really? >> i would rather be you then me. >> a public intellectual. a person who talks about who we are as individuals and who we should be. >> that is what we do here. >> originally, i was the canal was going to be an academic. i realized academia in most of its forms does not resonate. i decided to become a creator of software. >> does the fact that you have been so good at this give you an opportunity to have a voice in the national conversation? >> i hope so. maybe more overtime.

anything from writing books to helping todd park figure out things with healthcare.gov. for example, in order to fund the kind of society we want to live in, whether it is education, health care, you have to have an effective economy. how do you create new jobs? >> i don't know whether it is because of linkedin or whatever it is, but you seem to uniquely among the people i know from silicon valley have an interest in the kind of work environment. the work relationships. those kinds of things. you are about connections and understanding what people do. >> i actually think so. for me, i think in terms of --

who are we as individuals and how do we connect with people? it is one of the reasons i ended up in the social networking space. it is work, how do we work together? i also think about how it is we form a tribe with each other. part of the reason i participate in the public discourse is, how are we as a society? and how to we make ourselves better? part of the reason i think about the work environment, everything from -- i came back from oxford when i was a student. one of the things i thought about doing was writing a book about how to do college better. all the students -- if they understood how to do college better, it would be better for everybody. those kinds of patterns are what attract me. when i think about how we work as individuals, how we invest in ourselves, how we lead more

successful careers -- my first book, "the startup of you," is about how do i make my life better? >> i think about that every day. all the extraordinary opportunities to learn, to have such a satisfying experience, that are out there. whether it is travel or a sense of the variety of cultures that exist. and now, all the devices we have. that give us access to a world we can imagine. all that makes life so much more potentially expensive. >> like the nuance when the invasion of the iraqi was happening, the fact that we could see blog posts from the people who were there. inc. about the connected nature of resume and eyes in the world through that.

>> that is the opposite of the dehumanizing part. seeing it through the pilot's eye. we show that israeli pilots could look down and make decisions. this is about managing talent. the work experience, certainly in silicon valley, is different. >> i came to realize, when i was talking to people about how to manage linkedin, why do you want to be employing people? the short answer is, what makes silicon valley special is the people. and how they organize people. people think it is the technology. but it is people who create and

adapt. make things in the world. it comes down to, if you want to have an adaptive company and be in existence 100 years from now, that will require you re-adapting your self. you can only do that with entrepreneurial talent. people were adaptive. how do you identify those people? how do you recruit them and manage them? we wrote an essay. they said they would like the book. we said, we can write a book from how silicon does it. elements of how you create. adapt. the key thing was, most people have not looked square in the face notion that lifetime

employment is gone. that is not the way the world operates. >> you don't go to general motors and work for 40 years. >> implicitly, underline their hr programs and managing instilled the presumption of a lifetime employment program. everybody knows there is something -- there is a real chance the employee will go work somewhere else. if you don't have that conversation, there is a lie of omission. that leads to distrust. let's have an honest conversation about what it is you might be doing 3-5 years from now. sure, we hope it is at our company. we can still have an alliance. >> you understood it was all most like a tour of duty. >> we talked a lot about what the right term is. we alternately ended up with tour of duty.

some people went to all free agent nation. that does not allow investment in the future. either for the company or employee. you have to have investment and projects. this is what happens at so can valley. typically, you have a four-year stock vesting project. it is this mission oriented, realistic timeframe project that creates mutual investment opportunity. what should we call it? tour of duty. it has some weird -- some people find the military connotations positive, others negative. we don't mean anything other than a co-heretic, mission oriented project within a reasonable amount of time. >> there are three different phases. >> we started, the one we wrote

the article on is transformational. work 2-5 years. do something transformational for the company, we do something transformational for you. then we realize there are other types. one is a foundational to work. i love this company. i'm going to be working there my entire life. even if i don't get increases or a new job, i want to be working here. as a foundational tour. one of the things we have realized is most good companies that went to be adaptive need to have foundational tours and transformational tours. if it is 100% foundational, you don't have enough to be adaptive. it is, how do i have a large

fleet of people with a job with a focus? this is rotational. >> in terms of rotational, transformational, and foundational tour of duty, i think about how did mark zuckerberg pursue -- that was talent. he needed someone. facebook was coming up. >> i was not on thefacebook board but i was an investor. >> he spent a lot of his time there. most ceos spent a lot of time, if there is a valuable person -- it happens to fill a huge and basic need you have.

>> one consequence of the shifting and growing world, mark zuckerberg does this -- you are always recruiting. always talking to people. i believe the way zuckerberg met sheryl is he went over to her house. >> they had a series of meetings. >> it was a consumption of his time. for most ceos out there, if you posit it is the human intelligence and resources that is the critical difference -- >> therefore, i think you are not being -- i think it is probably a true hypothesis universally. certainly in silicon valley. if you are not always spending some time recruiting, you're probably not doing your job. >> that is also why steve jobs got into trouble. there were some idea they were looking to make sure. >> that is a different problem.

his thing was colluding with other organizations. >> the point was not to lose your employees. >> you should always be recruiting be read in terms of attention, a better way to retain them is have a good relationship. >> if you have come to get my people, i will do terrible things. everybody agrees that is bad. does this put the employee in the driver seat and silicon valley in 2014? >> i don't think it changes the balances that exist. sometimes the company is in the driver seat, sometimes the employee is. it facilitates an honest conversation. that's the only way you build trust. it is funny how shocking this is to people. our head of engineering and operations at linkedin, after an employee comes in, asks them

what the first job they want after linkedin is. >> i know about it and care about it. >> he is delighted if a person works there the whole time. it is an alliance. >> in order to get there, what will you do to help me? that is the trade-off. when you look at, is this taking hold beyond silicon valley? >> bits and pieces. general electric has programs. there is a classic industry giant.

>> is the kind of manager they have. >> among some of the lead management we have talked to, there is a component of the tour of duty, different projects. alumni networks. >> whenever i see you, i have a silly little question. what is the future? what excites you? where is your passion be on the company you have already created? >> i will continue to be interested in how software defines human networks. one of my investments was airbnb. i'm always looking for interesting things there. one of the companies i am on the board on is transforming networks for k-12. that is one stack.

the other stack is the new technologies that can also transform our lives. we both saw bitcoin. i am an investor in xapo. >> you have been a supporter and believer in bitcoin. >> people talk about it all the time. they don't realize the most interesting question -- is where there be a new one that is better? there are network effects. the fact that bitcoin is already going makes it interesting. the internet of things. >> and making acquisitions in that pursuit. expand to what the internet of things is -- explain to people

what the internet of things is. >> every object in your house might actually be connected to cloud services. say you have a door sensor. and a camera. you can take a picture every time the door opens when you are not home. your phone knows whether you are home or not. the door opens, who is that? or the smoke detector. they can be connected to any way that they notify you know matter where you are if there is smoke. they can call somebody. it can turn on cameras. all of this stuff means the same kind of improvement we have begun seeing and other technology, because software and circuits apply, we will see interesting patterns in the

home. >> you are seeing people like google make big acquisitions. you have mentioned this thing to me which i can't quite get my hands around. arms around. the intersection between computation and biology. explain to me one more time. >> my apologies. what is happening is, biological systems, dna viruses, are all code. as you can read the code fast and put it in a computational environment -- >> you mean genetic code. >> genetic code. virus code. responsive to drugs and pharmaceuticals. you have a two-way street that is important. on one hand, one of my friends, he saved a child's life because

he sequenced the genome so quickly, he understood there was a remote virus that was killing the child. the rest of the medical procedure had missed it. because he could do the sequencing, he could say, it is this virus. penicillin kills it. the child was alive. >> with the child suffering from? >> is a virus only in the freshwater in the caribbean. they had tested for the major part of the virus. but this was a variant. >> was it luck or science? >> it was science. it is both directions. a reading what is going on.

people are also printing proteins. you will be able to print, not just can i make a heart, i can make a heart for charlie. that is what i am saying is the kind of thing that is going to naturally come about. >> how far off is that? >> there are other people more expert. 10-15 years. >> this has to be an exciting area. the idea of what makes you human. all those questions come into that. the capacity to understand and affect that. >> it's like when software begins to touch some industry.

you begin to see a creativity cycle that picks up speed. this thing about what it is to be human, how it is we live longer and healthier lives, how it is we understand what is going on -- it is a fundamental area. it is going to be the fundamental area. >> it blows your mind. we talked about this, just understanding and now being, moving inside the brain. being able to understand what is going on. seeing it. bringing it alive, the ah ha moment. >> there is a researcher who is figuring out how to connect circuitry to my sprains. you can be reading what is going on and understanding what is going on. the way he introduced himself, i am going to understand the brain.

the science is beginning to get to that point. that is why it is critical to pay more attention to science. >> not because it is going to make you smarter. but because it affects so many diseases. alzheimer's disease. lou gehrig's. depression. and sight and hearing. all connected to the brain. >> exactly. >> let me talk about some of the businesses you are involved in? what are some of the businesses you are involved in? what about linkedin? >> i will start with an anecdote. there are millions of people searching in a networked world.

you have to have the right filter between signal and noise. being found is critical. being found, that is how i did the airbnb investment. they came and found me. correctly knew you would be receptive. >> the new i would be a good investor. that is the kind of thing. it is true for everyone. what is your strategy for being found? >> let's talk about being found. been found as an investor? as someone with a curiosity about elephants? >> exactly.

everybody has something -- if i knew more people that were working on this, how were the people that have this, how can they find me? how can i configure the right way so -- the crazy people can find you, too. but if you have the right kind of filter -- which is how linkedin is designed. if they are referred to you by somebody you know and trust, that is a good filter. >> that is the idea of social media anyway. >> make me contactable by referral. >> it is a more proven basis of a fit. in terms of what you went to buy or friendship. >> let me say one more linkedin thing. most people say, when i am thinking of an expert, they think, who is the person i want to talk to? the ideal person might be two degrees out.

how do you discover that person? that's the idea of linkedin. what i tell people -- they say i'm not looking for a job. i say, is there a problem you are trying to solve? is there someone who is an expert at something you are interested in? >> the key is, about everything having to do with search. how big is your database? all those people who would love to explore what it is like to do something rare and unusual, they have to list it before you can find them. >> network effects. >> this is also about the power of genome therapy. more samples. >> this is why people talk about big data. i don't really like the term. >> if provide you more solid information could read the other

thing i want to talk about, you wrote a book about entrepreneurship. it is alive and well. everybody wants to be one. they read about you or some in the other people. >> one of the things -- i have been thinking about getting more involved on the civic dimension of entrepreneurship. what happens in natural systems, whether big companies or governments, they harden the system against challengers. the incumbents make it more difficult for challengers to come in the read but what entrepreneurship is is the people that challenge the system. i have something i want to offer that is not offered yet already. that is how we create the future. that is how we invent new products and services. how do we -- in the u.s. we are very fortunate in that we are one of the best societies for entrepreneurs.

i think we can still do better. the question is how do we enable them? it is good everywhere in the world. to create new industries, jobs, product and services. i have been digging a lot about how we can do that. >> what has that thinking led you to? >> unsurprisingly, a lot of what the magic of silicon valley is is the network. if there is a network by which you can find other people who know experts, employees, financing, the speed at which you can -- a start up company has to have resources to be there. the speed with which you can assemble that is the strength of the network. how can we strengthen networks? is there something we can do in detroit or new orleans? in order to create a more robust network.

>> this is allied but not close. i have gotten to know larry page. he is interested in viewing the corporation as an alive, viable institution with possibilities. part of it is the kinds of things you're talking about. >> part of his thinking -- most of the people are employed in corporations. >> party make use of the intellectual resources? >> how to get the corporations to do these important tasks that we need as citizens and societies. >> you said it to me this in march, 2012. social media was at its beginning. two years later, is there a general thing you can say about social media. is it in its beginning or

adolescence? >> i would say it is in its first three innings, a baseball metaphor. it is two years older. not yet a teenager. the thing is, what has happened is people are used to the fact that there is social media. it is a way of discovering good information. if something happens right now, people go to twitter. the right now is going to be more reported there. they are still learning to say, what do i do? when should i be posting? how should i judge information and expertise? how do i figure out what information to trust? where does it come from? information reputation. how do we get more really

thoughtful long posts? how do we evolve the social media ecosystem so it creates better results? it is making great progress. but when we look at two years from now, two years ago the linkedin influencer program was not there. two years from now, there'll be new things that will add to the conversation. >> when you take the companies like -- are there growing pains for social media companies? are they going through plateaus? or is it so expensive that the challenge is keeping up with growth? the number of people. >> we have 1.3 billion users.

there are a bunch of logical changes. a lot of the globe is coming onto the internet with smartphones. that gives you a natural rising tide. there are growing pains. more of the world is still coming online than that is online. then there's also, for example, what we learned about what kinds of perks and services can we offer with things like big data. we begin to think about how you can do better traffic navigation, that is important. it is the beginning tip of whether it is genomics, what

career should i pick, what information should i read today, all of this is in its early innings. >> i want to go back to bitcoin. i didn't realize that you had invested -- why you made that investment. >> three reasons. the executive is an awesome entrepreneur. he has worked in banking before. most people in the u.s. do not understand bitcoin because they think the dollar works fine. in fact, there are a number of

regions in the world where people say, i would like to be able to trade into a currency that is more global and stable. whether it is a currency or gold. coming from argentina, he knows that. bitcoin is certain to be there. when you invest as a silicon valley investor, you are not investing where the puck is but where it is moving to. part of the thing is, bitcoin is interesting where it is now but it could become an electronic platform that could create a way that we do electronic contracts. have financial systems that

essentially tie across borders. with bitcoin, the very first time i can e-mail you some money directly. those kinds of possibilities about where the puck is moving towards could be transformative -- where the puck is moving towards could be transformative. >> what about microsoft? >> i thought the announcement that we have to do culture shifts is right. i would say to the ceo's credit, he has met with me and some of my other partners to say what should microsoft be doing. he is engaged.

one of the challenges with any large company, including microsoft, you can just look within your own borders. you have to say, what is going on within the world. he came down and met with us which was impressive. >> paypal and ebay. you came down on the side of -- >> i came down on the side of management. you back management. it is long-term value creation that matters. long-term value creation has a plane. -- a plan. they are both good plans with paypal inside and outside. it comes down to intelligent, good management. >> i know you have to go. you people say you have 17

appointments. there is the thing i don't know the answer to. steve jobs is famous for saying, limit your product line. get better and better at that. that is what he did to apple when he came. that is what apple was when he left. there is google and larry page. we have capacity, we have talent, a whole range of other things. we see connections. we bought android, motorola. their primary thing continues to be search and advertising on search. are those different and contradictory ideas? >> they are both right. here is the unifying framework. in management team can only focus on a limited number of project. hence steve jobs.

we will focus on these things. we will do a small number of things very well. larry does the same thing. he also does a thing where he gets the right people running them and lets them run. what they are doing with the self driving car, is super impressive. they are both right. >> search is not getting any less attention than it was. >> exactly. >> the book is called "the alliance." reid hoffman, chairman of linkedin. great to see you. see you next time. ♪

>> live from pier 3 in san francisco, welcome to "bloomberg west," where we cover innovation, technology, and future of business. i'm emily chang. ahead on "bloomberg west," more on my time warner reject it the initial takeover offer of more than $75 billion. time warner ceo expressed concerns about fox's structure, who would run the company, and the future of cnn that would have to be sold. cnn could fetch as much as $8 billion on the market. ebay seeing a rise even though ceo john donahoe called the corridor "challenging." changes in how they showed