. >> live from pier 3 in san francisco, welcome to "bloomberg west" where we cover the future of business, i'm emily chang. ahead, google and barnes & noble share a common rival and that's amsson. now the two are teaming up to get a book in your hands the same day you order it. will this new google barnes & noble partnership take away customers from the e commerce leader? is it game over for zinga? they report the c.e.o. is under pressure to produce results as he enters his second year in charge. we take a look at the history of the gamer from the exclusively i.p.o. to the

massive drop in users and revenue. lift is trying to provoke car pooling with a new feature called lift line and matches riders who are going to the same area and offers them a discount of up to 60% to share a ride. the co-founder john zimmer joins us to share all about it. our lead story, google and barnes & noble are worried about competition from amazon so the companies are teaming up with the aim of swiping some customers away from the e commerce giant. starting today, barnes & noble will offer same-day deliveries from local stores through google shopping express. right now the service is only available here in the bay area, west l.a., and manhattan. the news coming a day after amazon expanded its own same-day service to a total of 10 cities. our editor at large joins us along with a partner from s.k. ventures, a former equities analyst and contributing bloomberg editor, with us from san diego.

paul, could this really get customers from amazon or is it a hail mary? >> i think it's wacky. it makes so little sense i have to assume it's something other than what it seems. my -- the reality is imagine if the records had done things in the age of c.d.'s but in the face of delivery they say wait, we'll find a way to get c.d.'s to your house and you promise now not to buy anything off i tunes? it doesn't change a thing. there's no alternative to getting them delivered, but having them delivered digitly. i don't have to wait and can book it now. i have to assume it's about using barnes & noble's shrinking balance sheet to help google use an experiment that hopefully will have nothing to do with books. >> it's tough. i compared the two sides shopping for books and amazon has almost everything barnes & noble has but at a cheaper price, more vendors, more things to choose from. how do you compete with that?

>> that's obviously been the problem for barnes & noble, the issue for barnes & noble for quite a long time. amazon using its technological heft to make sure when you run those comparisons and the particular things barnes & noble might have a deal going, they'll go a little deeper. >> and a book you want and need the same day. i can see groceries and -- >> records were these things made of vinyl that were round and -- >> i don't recall. >> the 78's back in my -- paul can tell you about the 78's. it was crazy. there were cones before that, panel rolls. >> true. >> i think we see google doing here is partnering with lots of different retailers to create an alternative to amazon. as paul mentioned, using the balance sheet at barnes & noble and using the balance sheet of everyone else like best buy and everyone they're partnering with. you see ebay where they're partnering with the retailers, trying to give the retailers, the big retailers a way to be online and compete with amazon as it marches on.

>> with ebay now, we talked to the c.e.o. john donahoe about this and said it will be a niche business for them and isn't the future of ebay. i wonder, amazon has such a lock on delivery and can google really compete there? >> oh, i think it can but i think you're going to get into the much more interesting long-term story is about alternative ways of distributing things same day, you know, which becomes a story about drones and about self-driving cars and suddenly i'm getting my groceries via drones or self--driving vehicles and this is the ultimate direction those things are going in those mundane things we don't want to do that will become a chunk of how things will get delivered but can't do it with fedex because the economics are broken of having groceries come any other way than drones or self-driving cars. i think this is where it's going. >> i tried google shopping express. it's ok. it's not a ton of inventory but i guess you could see if they build it out, perhaps a way for

retailers to compete. >> one of the reasons it's happening now is because amazon decided to bite the bullet and pay local sales taxes and state taxes and they previously built their entire distribution network around avoiding tax places by building distribution centers in places like nevada and other rural places. now they're coming much closer to the consumer and much closer to urban hubs where they actually can affect this kind of delivery service. i was struck a few weeks ago, running an air and in the middle of the day and going to meet someone at the market in san francisco and saw these google trucks all over the place and are making a concerted effort to be in the business. i wonder what peter lynch used to call deworsification, if google's aim is to provide the information to everyone all over the place, providing stuff is a different business and wonder if they're getting too far field from what they do best. >> what's the biggest threat to amazon now, paul? is it a company like google?

where do they have the biggest challenges ahead? >> it's more companies like wal-mart, because amazon is increasingly moving away from digital products and moving towards physical products and it's about people who have a beach hat in terms of acquiring and distributing physical products and less about google and partly to cory's point in this is a deworsification, google only goes so far down the physical distribution line and wal-mart and target, people live there and those with balance sheets who have a vested interest in maintaining their businesses there. that's where the threat is. >> the biggest threat is amazon, the way amazon dances so close to the edge of the cliff with their financials that amazon doesn't turn a profit, really. they put so much of the money from the cash load they generate into their business that any way they might falter, a stock price collapse we've seen from amazon a couple times in history would affect the ability to recruit the best

people which they've been able to do because of the stock price's rise over time and that's a great risk to amazon as well. >> over the long term, paul, when do you see amazon, the margins getting bigger than they are and when do you see them say it's not about long-term growth but about right now? >> i don't. i think it's the day wal-mart buys them, quite honestly. my long-term scenario for amazon is more about frustrated shareholders eventually punishing the company on share price and the company deciding at some point it wants to be a part of something else, whether it acquires or is acquired. i've said that for some time but will keep saying it until it's right. >> our bloomberg contributing editor paul kedrosky, you are right often so we'll wait and see. cory johnson, our editor at large. i don't know i'd say the same for you. >> i'm not right often but never in doubt. >> ok. hip-hop pioneer russell simmons just got a big venture capital investment for his digital entertainment network. simmons joins us later in the

show to show us how he's using all the money.

>> welcome back to "bloomberg west." netflix replaces hbo in subscriber revenue for the first time. netflix brought in $1.146 billion in subscriber revenue in the second quarter, about $5 million more than time-warner's h.b.o. which reported earnings yesterday. hastings writes they are honored to be in the same league as hbo though hbo still beats it in emmys and prove us. zynga reports earnings and the social gamer was a dominant company in a rapidly growing industry after a big i.p.o.,

zynga became the poster child of a failed media company. don matrik enters his second year as head of zynga. cory johnson is here with more on where mattrick can turn zynga into a good business? >> he's been there long enough to effect some changes but we'll find out more when they report tonight but it was a useful time to look back at what happened with zynga and look at the company they created over the course of the last couple years. take a look. >> in the beginning, social gaming company started by harvardman, mark pincus, named for his bulldog it became zynga and had the good fortune to tie itself to facebook, holding texas hold 'em poker on facebook in 2007. mafia wars followed and farmville in 2009 and quickly zynga became the number one app

maker on the social network. venture investors swarmed to the startup, reid hoffman, ter teal, yuri millman, even google. by the end of 2009, the company had 207 million monthly active users, 28% of them on the site every single day. yet some problems started to emerge, for example, only 2.5% of the users pay zynga anything. and as i.p.o. loomed, the accounting got interesting. zynga made a bunch of legal accounting changes, effectively taking revenues from the future and pulling them forward, without the exchanges, zynga would have lost money every single quarter but with the changes, profits appeared and so did an i.p.o. at a $7 billion valuation. a few months later with the valuation of $10 billion, the company had a secondary offering, c.e.o. pincus sold

$200 million worth of shares. but the stock began falling and in late 2012, sales began falling never to recover. layoffs began inside, they reported 46 employees an fell to fewer than 2000 employees. perkins took a seat on the board and pincus was out at c.e.o. and bumped out the chairman and was replaced by xbox executive mattrick in july of 2013 and got a $1 million sal byry, a $5 million signing bonus and 10 million restrictive stock units in zynga and they cut games and tens of millions fled the platform, down to $123 million by the end of 2013. at the end of the year of mattrick's tenure, the same problems exist. can they draw in more users and launch another hit game and can the company prove that it can launch games with the same skill which it launched a stock? >> that is in question, can they get another big hit over

there? the accounting maneuvers had the effect of pulling revenues forward so when we got to the forward date, it made things look even worse, especially when the new games weren't as successful with some of the older games, don mattrick has a lot of work to do over there and we'll find out tonight how they're doing, the analysts on wall street, you know how much i love them, expect revenues to fall by over 30% and see what they deliver in a few hours. >> the stock hit a high in march and it's back down again, way down, $2.87 a share. i remember when the company went public and it was like $10, $11 a share and it never budged, it was almost like they misread the market. >> and, you know, that's assuming we know what their intentions were. the accounting maneuver they took was beyond aggressive and really made things look good for the i.p.o. and good for the couple quarters after that. remember, there were all those battles within the company about stock options and talk of taking stock options away from certain employees that had been there a long time.

at the same time, i mentioned mark pincus was able to sell shares in a secondary offering, doing it so quickly after the initial public offering meant the other employees were locked up longer. while he was cashing out, people who stayed with the company were unlocked and unable to sell their shares because of the secondary offering as the stock started to klein. >> clearly a lot of people play games and there's money in it somewhere. >> i thought you were talking about the gains, the other gains, yes. >> gamers spend money in the games. some of them do. look at the -- >> one of the things we know is it's a hit-driven business and re-creating hits in the way electronic arts has done so wonderfully with things like madden football and the way act vision has done so incredibly with "call of duty" and other great games, that's the hard thing to do in this business is not get a single hit but do it over and over again and zynga hasn't pulled that off. >> we'll be watching, earnings out today. cory johnson, editor at large. we'll be back with more from

"bloomberg west" after a quick break.

>> what you face is the consumerization of i.t. companies have to be aware of their employee base, consuming of global technology and capability and bringing that into the business and trying to leverage it in their daily work. securities is even more important in the consumerization of i.t. samsung has addressed this by bringing in a security framework to help the

enterprise get the balance. samsung is doing a lot to help our businesses meet those changes and those challenges. i believe we're the right solution. samsung is committed to a holistic approach to meeting the needs of our enterprise customers in the areas of security, software, solutions, and support. >> realize the full potential of mobility. find out more at bloomberg.com/ ad/mobilemax.

>> i'm emily chang and this is "bloomberg west." rod glazer has been named the c.e.o. he founded the company in 1994 and had been serving as interim since 2012 and the digital media company owns real employer cloud and has a stake in the aps oddy service and they had reloss and looking for glazer to lead a turn around. let's get to our editor at large. >> rod glazer, c.e.o. of real did the networks has a ring to it because he was at the helm in the beginning.

what are your plans to get revenues increasing instead of decreasing as they have been for a while? >> we announced concurrent with my announcement of becoming permanent our product real player cloud is up to five million registered users in nine months and up three million two months to two million three quarters three months ago. a little too much caffeine, i guess. we're seeing a lot of -- >> i see seattle, i would expect a lot of caffeine being seattle. >> absolutely. but basically that product, what it lets you do is lets consumers play video, take video from any device and play it on any device and share it and do it all seem -- seamlessly and magically. 9 product is hitting a chord, so to speak and am ape with the uptake and a premium model like drop box for video and optimistic we'll ride that product as the cornerstone of how we revitalize the company. >> how do you size the market, obviously it has a lot of growth in a short period of time but five million is not

the number you want to get it. >> five million in nine months, if you were a startup, we'd be one of the hardest startups in the valley. clearly we have advantages and installed our world player users and getting them to do something very new. our view is to grow that to tens of millions and beyond and when you get a product like that at significant scale, it ought to become a good modernization engine. that's the program companies like drop box have used and obviously facebook and twitter and the like have gotten into hundreds of millions and facebook with a billion users. once we get to the tens of millions and can roll out partnership with a wide range of people and other operators and cloud providers, etc., our goal is to be the premiere way for people to take video and play it on any device on any service and just sort of be that video services application service layer if you will. >> and you're right, the comparisons to you of a public company, a company that's been public for more than a decade, are very different than the startups in the valley. one of the issues, of course,

is the financial issues about ust -- free cash flow and burn rates and things. talk to me about what you need in terms of cash, how long your cash can last. i read stuff on line of people making crazy peck lation of you burning through all the cash you've got. >> we historically have been conservative with our balance sheet and have $200 million in the bank plus our stake in rhapsody and other assets. i'm not worried. we do want to make a great product and we look at the reviews we've gotten for world player cloud and a few other products, we have salingo venture and our listen product which reinvents ringback tones and like those products but what we've seen since real player cloud has been out believe it will be the foundation product for our turn around and the nature of these products, they take a certain amount of money to build and we have a decent sized team we're continuing to invest in but the businesses are scaleable. we don't build our own cloud

infrastructure and aren't spending hundreds of millions on infrastructure and use amazon web services and been in conversation with other cloud providers. the business has fixed costs in terms of building the products but variable costs and the reason venture capitalists like businesses like this because once you get to critical mass they tend to have good long-term return. we measure our return in a different time period than some companies. when i got back involved i said to our investors, and quarterly calls, this is a three or four year process of turning around the company and the first phase is to make great new products and the second phase is to have uptake in the market and third phase is drive modernization and get to the fourth phase, we'd generate enough scale of that to generate profit. we're sort of two years into a four-year process. we've done the first thing and the second thing, now we're on to the third and fourth things. >> all right, rob glacier, the once and future king and c.e.o. of realnetworks. we appreciate your time. emily? >> thanks, coming up, russell simmons, one of the pioneers of

hip-hop, now he's trying to expand his business empire with a new digital platform and joins us to talk about the new venture all decks digital next on "bloomberg west." watch us streaming on your tone, tablet and bloomberg.com. >> 26 after the hour and bloomberg television is on the markets. i'm matt miller. get you caught up on where stocks are trading now. we are up across the board this morning on positive economic news here out of the u.s., or we were, i should say, now turning down after the european markets closed. e s&p down 1/3 of 1% and the nasdaq down at 4347.

i want to highlight a couple individual stocks. first off, carnival corporation, the company which owns 11 cruise lines including carnival and holland america was upgraded to buy from neutral at bank of america, merrill lynch and that has a price target of $45 a share for carnival and wendy's, the company known for its delicious square hamburgers and frosties reported second quarter revenue to beat analyst estimates but earnings missed by a penny. wendy's reaffirmed its 2014 earnings forecast and said it, get, remains confident in its long-term outlook and also announced it is selling all of its canadian operations to franchisees. "bloomberg west" will be right back on the other side of this break. i'm matt miller, on the markets every: 26 and: 56 on the hour. stay with us on bloomberg television. .

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"bloomberg west >> you are watching -- >> you are watching "bloomberg west." i'm emily chang. russell simmons helped hip-hop artist break into the mainstream and he has since founded a business empire with everything from movies to music to clothing. his newest venture is helping new artists achieve success in the digital world and beyond. more -- four more from l.a. by russell simmons and a partner at great cost hundreds -- great cost -- great cross partners.

russell, what are you going to do with the money? >> we want to find important content. we have a lot of young directors, writers, comedians, poet, and people that need exposure, and with the partnership with the music company we are putting out one record week with samsung. so, the money -- we do not need the money. the brilliance we need. we do not need the $5 million. we need the brilliance. looking at the executive pool, these guys know it. the partners they need, they know the answers. i have known these guys for a very long time. myn patrick off is like godfather or something. i am happy to have them because of their brilliance and helping to find great content and create content that will be different

from, special to the marketplace, and make a difference. >> let's talk about the brilliance, because greycroft was an investor in maker studios, which disney recently bought. i know you said that mark knows where the revolution in video is going. mark, where is the revolution in video going? >> it is interesting. the younger demographic -- a study by "variety" showed the top five, you know, recalled stars in the world for kids between 13 and 18 are all youtube stars, and that is replace traditional actors, musicians, sond when russell explains his vision of trying to use these new platforms for short form video to honor amazing new talent that has not been -- to unearth amazing new talent that is not the discovered, with the ability

to create platforms around them and travel the talent from initial platforms into movies, record labels, and television shows, what have you, it was a marriage that was too good to be true. whenhad a funny revelation bush didt said george not like black people. hollywood is such -- so segregated. we had a revolution with jamie foxx, bernie mac -- all of the stars emerged that one moment because there was an integration process, but since then no one, except for some of the older deaf comedy jam guys have emerged. youtube is a place where they can emerge despite the lack of sensibility or creativity in hollywood. i am getting the chance to say yes instead of asking an executive to say yes, and that for me is a process that is

exciting. there are so many young talents that have not gotten a break yet, and hollywood, although it is one of the most aggressive and sweet places in the world, they live in fear, so they have not been a good job of innovation. "scandal" was the first black girl toledo show since "julia." are -- you were not born. there is a giant space. >> is this musical content as well? have records right now. every week we are putting out a record. >> every week is a different release schedule than we would have seen in any era. what is it about the digital era that makes you want to do -- weekly releases? asked the content lay that we put together, this technology -- thets artists

technology that we put together, the technology that lets artists upload music, and the things come to the top of the chart, and we curate from that. these artists that have built themselves huge youtube following tour huge social media, and then they are ready for release, so we put the single out every single week, and a lot of them, some of them are becoming stars already. >> what is really cool is not only the pace, but the platforms are global, so we are finding talent literally all over the world. historically, what people thought of as urban historically, is everybody. it is global. showing -- they are showing right now grew 600% in sales last week. it has everything to do with the collaboration of all of these technology, especially youtube's

support, and samsung. i mention them eight times but they hope to fund this creative ef digital. d >> speaking of collaboration with stars, jay-z was at one time a president of the company you started. we have been covering their tour . of course they are married, but you see other artist pairing up. i wonder, is that kind of boring the only way -- touring the only way for artists to make big money these days? >> they have 360 deals when they get pieces of everything artist do, but the real truth is thai reese is a movie star, and jay-z the business guy, there is a branding exercise -- i create a clothing industry. there are a lot of ways to exploit emerging talent, especially if you are in the various kinds of music or areas

where they want to exploit their celebrity. that is what we do. we are a media company that understands all kinds of media. that is a very important point. at differents studios and many of the music artist desire to be in them, and that makes us a unique company. >> you have got a lot of partnerships. i remember one with cbs records that resulted in a food fight and the beastie boys. >> they are vegan now. no more white castle. [laughter] deals.have done so many >> you have not aged. >> i'm wondering what you learned. >> i have not aged at all. i am wondering what you know now they did not know that -- then about doing deals? >> i note is good to have smart people. greycroft is a smart team.

they have given us great advice and that is live hoping for, more great advice, direction. i have creative ideas. i want to know how to best focus them. having these partners makes all the difference in the world and that is a goal of mine. >> all right, russell simmons, digital and all def mark terbeek, thank you for joining us. we will keep our eye on you guys. coming up, competition heating up as companies announce a new car pooling feature. lift's president joins us to tell us how it works. ♪

>> i'm emily chang, and this is "bloomberg west." carpooling has gone digital. launched liftas line, giving people the chance

to share a ride with strangers. similarer launched a feature. so, how can carpooling help lyft in its battle with uber? john zimmernt joined in the studio. how will this work, how will you coordinate people who need rides? quickly found out 90% of lyft rides have someone going in the same direction in five minutes, so we are matching them up and saving users up to 60%. is testing out something similar later this month. how is it going to be different? flattering to see others follow when we are innovating in the space, but the thing we have created is a sense of community and culture with sharing within lyft, and it fits well in the new product line, and it is true from our vision

from the beginning, where we were doing long distance ride sharing and carpooling, and now we have come full circle with lyft line. to 60%, butave up what if no one else is taking a ride in that direction? >> we will still give you a discount. >> so if you say i agree to allow someone in this car with me, you still get a discount. >> why won't everyone started doing that? >> we hope everyone does. it will be the best way to get around. we are combining of transportation with on-demand rides to create personal transit at your doorstep, and it is really enticing for users. we have seen already hundreds, and today we will cross thousands of rides on lyft line. >> we have a lot of lyft users, there wasr team, but a little bit of -- what if i get into an uncomfortable situation -- how do you handle that? >> people have those questions

when we started lyft at the beginning, and we have created this incredible expanse where you have screening of front of both drivers and passengers that create accounts and have profiles. it has worked out well. we have done over 10 million rides on the platform. we have over 60,000 drivers on the platform, more than fedex has vehicles, some people want this service, they are using it in large amounts, and the social peace, as long as you design for a safe and convenient experience, it works out. driversriters pay less, get more, but fewer drivers are needed. how does it work from a supply and demand perspective? >> at our peak times, the commute, in the mornings and evenings, it is nearly impossible to get enough drivers to serve those needs. also, when you create a five dollar ride, a seven dollar ride, wherever you need to go, that increases demand, so lyft

is about creating your daily ride. when you create at a five dollar rise point, people start getting rid of their cars. a story that has been told previously is that what we are doing in this $11 billion u.s. market, allousine competitors are taxi, limousines, and uber, but we are going after the consumer transportation market, a $1 trillion market in the united states. 95% of which is what people spend on their personal vehicles. on withus what is going the challenges and compromises with regulators. some people say it is not really lyft if you take out the fun stuff, and others have complained you cannot get a ride, there are not drivers available. >> we are seeing incredible demand in new york city. >> is that because there is no supply? highest, andthird

we have only been inactive for two weeks. chicago, which has been live for over a year, has not seen as much a man. we have created a new product that we are calling lyft pro, and that is because regulators said it had to be this way. we are working on bringing. -- peer-ng pere to-peer. >> some of these people might already be driving for taxis or uber. linedre were 1000 people up outside of our office, some people want the opportunity, and we scaled up really fast. >> we will be watching. john zimmer joining us here on bloomberg -- on "bloomberg west ." lawsuits, less than impressive earnings, and deal rejections -- we look at three tech companies having a bad week next

"bloomberg west." -- next on "bloomberg west." ♪

>> welcome back to "bloomberg west." i am emily chang. es and free food aside, it is not all fun and games, and cheezburger network's ben huh joins me. three tech companies having a bad week, what are they? >> linkedin is having a terrible week because they did not do accounting properly, did not treat employees, did not pay overtime, now they have to pay fines and back wages. >> $6 million in unpaid overtime damages. >> is one of those things where as theey is not as bad

credibility. they were known as a professional company, a company about being a great professional, and they have come to the realization that they owed these wages, it was probably reported by the employees, a loss of trust. >> there was a department of labor investigation over this, but linked again -- blinged said said -- but linkedin they were going to pay them anyway. >> you realize it is going to get out of there, we need to get ahead of it. companies of sql usually do not do this in a malicious way. it is not a small business that cannot afford to pay you. it is a company that had systemic errors in the process. it is not a personal thing. >> i also wonder why it went public. >> employees who usually have an argument with a company where they decide if a company is not moving fast enough any to make it public disclosure to an agency -- make it public disclosure to an agency that oversees wages and labor. >> tracking companies having a

bad week -- groupon. >> groupon is having a terrible week, not because it did anything bad, but they are moving too slowly. they need to transition from coupons to actually having to do pre-commerce. they are renting a market in which they used to be first, coupons online, to a market where they have intense competitors like amazon, and they have to learn that expertise in one year that amazon has been doing in 20. >> you wonder if that is the right strategy. you see so much weeding out of the small and medium-sized players, and it is really tough to beat amazon. >> i do not know if they have the many options. they have made a lot of acquisitions and they're probably having some indigestion figuring out how to scale them and integrate them because the benefits of having a large e-commerce business is not materialized and they have not scaled up the business, but the coupon business is still good. they have enough success thereto from their investment.

i think they will need to continue to does for the next five years. >> do you use groupon? >> occasionally. >> really, for what? >> if you're going to do something anyway, or if you're , you go toy a steak a merchant that will give you a better deal. but i thoughts, the deals were not that great, so i stopped subscribing. great, and there budget that you do not care about. >> number three, 21st century fox, having a bad week. >> time warner on the other hand -- >> there is a little bit of nuance. >> exactly. one side is having a good week, one side is not. it is a self filling prophecy where prices drop within a position, and it makes the acquisition more expensive. right now, the problem here is that fox is doing the inflating by creating a deal their

shareholders do not like. >> checking out the stock, fox it went way down, then went back up after they withdrew the bid, but time warner also plummeted. >> and the largest increase after the new ceo took over and they have lost that. >> you run a media company. --re is that in addition innovation in media to be had much my >> it is in two places, premium and mobile. at cheezburger network, we are majority mobile. .> all those cats are on mobile >> all those cats are on mobile. given the last time you had coffee before you had a smartphone? what do you do when you are in the line? we played during those times were reason to start off into space. >> what happens in the basket?

it seems everyone think stick and started new content site. >> sure, why not? it is really cheap. the barrier to entry is zero, it is creating more power because the market is more fragmented. thehe a diversion between sugars and content creators. ceo benburger network huh. great to have you back on the show. you made memes mainstream. it is now time for the one number that tells a whole lot. cory johnson, you have the number for us today. what do you have? >> how about-- 35,000? oami sold 35,000 phones.

they still want to see global smartphone sales go from 20 million last year to $100 million -- 100 million next year. >> we talk about the mobile phone market in china. it is the largest mobile market in the world, but india is such a huge untapped market, even by companies as big as apple. >> yeah, and you know, the issue for more premium smartphone makers like samsung and apple in markets like india and china, the phones are sold without subsidies. paying 190stomed to nine dollars for a phone and signing a contract. that does not happen there. the xiaomi phones are much more affordable, but it is still a lot of money in india. >> india, the next mobile frontier. cory johnson, our editor at large. thank you for watching. and thank you for watching this edition of "bloomberg west." you can get all of the latest

headlines on your phone, tablet, bloomberg.com, and bloomberg radio. we will see you later. ♪

from bloomberg world headquarters in new york, this is bottom line. today, russia bans some food imports in response to u.s. and eu sanctions. in westh toll rises africa's ebola epidemic. we will look at how cap affairs affect a passenger's tip. fares affect a passenger's tip. in the united states and those joining around the world, welcome. we have coverage of the stocks d