>> live from pier 3 in san francisco, welcome to "bloomberg west" where we cover innovation, technology, and the future of business. i am emily chang. first, a check of your top headlines. tech giants are dealt a setback as they try to settle a class action lawsuit over practices. a federal judge said the 324 money and dollar suit is small. -- 300 $24 million suit is small. if apple ate director to the chinese government -- is china a threat to the chinese

government? people familiar with the matter say that apple failed to give papers. iselle is passing near mao we. -- maui. that was the first tropical storm to hit hawaii in 22 years. their reports of downed power lines. lio is expected to pass north of the islands. we will see a robot that goes into the water. first, the u.s. has launched additional rounds of airstrikes on extremist conditions in northern iraq. two additional strikes were anducted on a position at convoy of extremist vehicles. we'll have more on the technology including 500 pound laser bombs coming up. the fight to ensure cyber security.

breach after breach from targeted attacks that hit 100 million customers to the revelation that russian hackers stole one .2 billion user names and passwords. the lens concern is that even airplanes can be -- the latest concern is that even airplanes can be hacked. one hacker showed how easy it is to do just that. i spoke to our editor at large, cory johnson, and a ceo who has been at black hat all week and is gearing up for another conference in vegas. david, who used to work for the nsa, joined us via skype. i asked him is hacking really possible. >> systems are supposed to be independent. unfortunately, if you put the the sametion on network as why high and you can hack into communication systems and cause a blackout on the --ual airplanes

[indiscernible] is damaging to see that. systems.tual dvr >> are you saying for a skilled hacker, it's pretty easy to do? >> that is the problem. that are things default passwords. passwords that are known you can log into. it does not even the -- you do not need to be a skilled hacker to get into the systems. what it shows that sourcing these products from a lot of different companies and are not passing the security and [indiscernible] more connected systems and things like that that introducing more risk. >> david, what does the state of it right now? every year, there are more systems and more freak out woe. what is the state right now?

is the largest hacker conference in the world and that is where i am now. researches come to share their research. what is interesting is there is what we areinding finding. there are breaches all of the time. [indiscernible] we continue to find more and more exposures. that's a big theme. we are not doing enough to protect privacy and health. there's a lot of concern over conference we're are not doing enough to protect people. >> what about safety? whether talking about planes. that's been a big talk at the conference. there was one shocking presentation. are you saying anyone with these skills and will could take down a plane midair? far butd not go as being able to manipulate

communication can cause a lot of issues. coordinate can cause major issues. probably from legal implications but it looks like they can do things to make a plane divert. just by looking at the in-flight wi-fi system, other things you can take control of that are core to the operations, that is what we need to start looking at and holding these companies liable. cory.o not know, things look scary to me. >> it is scary. in terms of mobile, if more places we see, we see an explosion of risk not just the plane but everybody with phones and tablets and increases volatility? >> it does. we are moving to more wearable

devices. and apple will probably release the iwatch. we are making tell technology integrated into every aspect of our life. you continue to see a lot of these technologies, anything from eavesdropping to [indiscernible] there's not a lot to do when it comes to protecting. another story, global a yahoo! teaming up to make e-mail more secure and spy free. what do you think? -- google and a yahoo! teaming up to make e-mail more secure and spy free? a predictive privacy which is .on-type of encryption the problem we have is that the -- bestome of the most

breakers you have. what is show his companies started to take privacy seriously. [indiscernible] there are competitors working together to make sure the information back and forth is done securely. what is interesting with the global, some years ago -- and , youe, some years ago should just allow the internet to be open and free. it is nice to see google for tech -- protect. it's a catch 22. they were a little upset that the nsa was spying on their internal communication. .> david kennedy we look forward to hearing from you on the top topics. coming up, kim kardashian, adding a new title to her resume. videogame icon. the ceo of the company that

brought us this popular video. ♪

>> welcome back to "bloomberg west." kim kardashian has found major success in the gaming world. she has lent her likeness to the latest game, kim kardashian hollywood that lets users go on

tus.s to achieve a-list sta shares have been soaring. cory johnson is with us. the ceo and executive producer of the game was your idea to include kim in the game. tell us about how special this game has been? it is been number one in the apple store. you have made millions of dollars on it. give us the numbers. >> it is probably going to be our biggest game of the year. gluu puts out dozens of games a year. our our biggest ever and best reviewed game at the moment she has been as high as number three and the u.s. apple store and it is consistently in the top five especially the first

game in a year that has been this high as an entry. >> it is hard to knock out other games. it was your idea to get her involved. how involved has she been? >> about 18 months ago, i went down to hollywood and did three or four hardships. "terminator" and "james bond.' kim was part of the partnerships. the idea was to take a gaming engine which will launch before and we knew it monetize and add her branding to it. she really got to the ideal quite quickly and jumped on board. she has been quite involved. or twoably exchange one e-mails a day and talk on the phone every few weeks about new content updates and new events and clothing. >> a gushy come to you with ideas? -- does she come to you with

ideas? >> she is busy but she has been great to work with. andis very commercial responsive. she knows her fan base. she is unique because she is a one-stop shop branding partner for glu. >> you just returned from her home. you refer to the game as a "she." the chasing of the female game player has been a longtime problem for the gaming industry. what did you know about this game engine that is attractive to women who play the game? >> we believe it is a majority female. but not the super majority. you will be surprised at how broad the base is. it is a role-playing game. it is for a broader demographic. it is old and young. fans of hollywood and kim. and fans of those making adult decisions. >> you say guys playing this

again? -- game? >> it has a progressive tone. there are same-sex couples. it was for a broad base. there are millions of people download and play in the biz game. >> what is the key of getting women to play this game? why does it resonate to women? >> it is a mixture of aspiration of her fan base and the fact it is not a dungeon crawler or combat game. there is no shooting. we make those games. but ultimately -- >> that was your most successful game to date. >> it has done to 100 million. kim said this one will get there. it caters to the deeper gamer who was to play all the content. and for those who want to play five or 10 minutes a day. "keepingttedly watch

up with the kardashians." i've heard about the game, there's been some criticism, some players said they were tricked into tweeting about it at some tricked into spending money and their kids paid money. how do you respond? i do not want anybody to know i will be playing this game. no offense. >> some admit that our loyal followers. have the bestle reputation in the consumer technology space of protecting all demographics especially younger ones and minors. they are tight on privacy controls and that is why we do not know was plane for example. when you have a game that is that high up, it's is probably doing 500,000 installs a day or more. the sheer number of people playing and have downloaded means there will always be one parent who probably forgotten

they have given their child the password to their phone was a uy something.y b we have not seen issues on this front. the game would not have such reviews if there was more. >> tweeting is not the -- 1% have had an issue. >> will you get kanye involved? >> most of hollywood is interested in doing something similar. it is not that easy. when i went to find a partner thomas campbell was top of mind partner, kimnd a was top of mind because of her fan base. the game is by making it in hollywood. not every body else's fan base is exactly the same. it is not clear how we branch out. >> who is an ideal new character

for you? >> we have looked at other genres that do not compete with him. maybe the music space or sports. someone with a huge social fan following. >> kanye is a musician. is a case of knowing where he lives. >> he knows shortly. >> it is left to filter through carefully. >> what about other characters in the kim game? khloe kardashian or beyoncé and jay-z? maybe they can duke it out because they did not show up to the wedding. she wouldt sure if approve that. that's not quite the tone. >> also lamar odom. >> will update it very aggressively. there will be a new location every month.

we have done paris and mexico and will have london that is featured on the apple store. we will keep it up. trying to keep the game airing her real life is something unique about the overall experience. .> niccolo de masi, ceo of glu maybe i will play it if nobody knows i am playing it. >> i am don't -- i am downloading it. >> is apple a threat to the chinese government? it appears china sinks so. that is next on bloomberg west. ♪

>> welcome back to "bloomberg west." thrones,game of there's a new show airing on stars that may give the hbo juggernaut some competition. it is called "outlander." 18th centuryet in scotland and combines fantasy with period drama. moore about ron what makes the show different. >> is a great story. it is based on a series of books that have a fan base that love it. visually, it is a handsome production. we shoot on location in scotland and take advantage of the light and the scenery. it is a gripping story and great characters. beautiful to look at. >> it premieres tomorrow night

:00 p.m. eastern on stars. apple isxiaomi that battling in china but to the chinese government. the company failed to release certain documents. apple computers including the macbook are said to have been excluded from products that can be bought from public funds. cory johnson with more. the list has been developed to protect china security and national security interest. do they think apple is a threat? >> the one of the ways the list is compiled are the product have to be opened up quite literally all the way to the way the product is made and apple is not comfortable doing. , chinaion that companies competes with a lot of the technology and the country in a lot of ways and the raw materials to make it at

understanding how the technology works. apple, and a lot of back-and-forth between apple and china. apple was unwilling to give up every product spec. >> not surprising. >> and maybe saw cited as a surprise. i makings like xiaom phones for china and may be scared the secrets could be shared. >> it means apple products cannot be bought with chinese government money? how much will it hurt? how much of the government buys the chat -- apple products? >> it is about the same with the u.s. in terms of gdp. we do not know. we know how important china is to apple. into china, a significant part of apple's overall picture. we see it growing dramatically over the time. .nd it has been a profit center

apple is a company that makes a lot of money and a lot of the money is made in china. $5 billion last year. much of the market is not the government about consumers. >> cory johnson, our editor in large, and thank you. the u.s. military has just conducted airstrikes in iraq. some of the advanced technology that the military isn't using. you can watch us streaming on your tablet, phone, bloomberg.com and apple tv. ♪ >> time for on the market. where stocks ended the day. march.ggest one-day gain since turning around the march. losses we had for the week and turning into a

better game. the dow earned more than 1%. discretionary stocks leading the way we saw in the session. ," e with "bloomberg west next. ♪

>> you are watching "bloomberg west" where we focus on technology and the future of business. i am emily chang. the u.s. military has some of the most advanced technology and the world and that technology is once again use in iraq. just hours after president obama authorized limited airstrikes, two jets dropped 500 pound bombs guided by lasers on areas held by militant groups. usingis instruments were the artillery to shelled positions in the capital of irbil where some u.s. personnel are stationed.

it comes after isis seized large amounts of territory including the largest dam. discuss theo technology use in air stars is a ricky allison, founder of missile defense advocacy. thank you for joining us. is it unusual to get this much detail from the department of defense about what exactly they are doing in iraq and what technology is being used in the airstrikes down to what kind of bombs are being dropped? part of the deterrence of the groups that are fighting. we have the capability to kick them out, so hopefully, with the do decisivefore we actions. >> how exactly do these bombs work? we here they are laserguided. what does it mean? programming.have

they will have that and be dropped and go and that direct should and -- direction and will have ground forces that will be lasering or painting the exact target they want to hit. that information gets added to the bomb and it goes to the laserguided position. it is very surgical technology. it has been developed over the last 10 years in afghanistan to reduce lateral damage on civilians. >> this is technology that hasn't been used over the last decade in other situations in other conflicts? perfectedbeen especially in afghanistan. artillery rounds, go for 100 yards within a 10 yards of accuracy. it has been pushed because of the civilian sensitivity of collateral deaths and trying to exactly pinpoint what you want to target without killing

civilians. >> what about the defense systems on the jet themselves? we saw a commercial airplane shut it down over a war zone and ukraine. what keeps the u.s. jet safe? >> i am pretty sure they would have went over the entire area a system out of place before they put that type of plane into the operating area. orking for any type of radar system in place. the planes have capabilities inside of them for countermeasures that can dissuade any type of a radar seeking missiles. they are pretty safe i believe in this situation with the type of fighters they are fighting. well heard isis is fairly supplied and they have oil and money and military equipment and control over a major down --

dam. what do the insurgents have against the type of air size of the u.s. have? >> i do not think they have much. system.a complicated that would have to acquire and be trained on to be able to apply that. there are systems over in syria that you saw over in ukraine. that wouldtication have an opportunity to shoot down a u.s. aircraft. i do not think they have that source or availability of that kind of weapon. guidederms of where missile technology is going, how is it even offering? -- evo lving? what is the next frontier? >> you try to reduce the amount of bombs or artillery they are using to hit targets.

to get that technology and be able to be as accurate as possible to only use one strike, arehit/it is where we going. there's no one in the world a better than the united states on this technology because of what happened in afghanistan and using that aspect of it. the other bigger technology would be the laser, using the laser as a weapon to take down rockets, mortars, missiles, etc. and will be further down they are looking at systems that can be used half a cup of diesel fuel to shoot a deadly laser. that is one of the big technologies. >> how many years off my that that technology be? well, we have demonstrations and place today. it depends on how much investment we put into the systems.

i see there could be something in the next four years that could be in the battlefield and could take out the rockets and mortars and so forth from a laser position. we have had the lasers being experimented on u.s. ships in outgulf that can take rubber and so forth. there are lots of things, power issues and whether within that system that has got to be developed and put more research into it. technologies coming from traditional military firms, defense contractors, or startups, of stars and companies out there that are developing new things? >> this most likely from defense industry aspects. it takes quite a lot capital and resources invested in this type of energy capability that we are doing. >> we know it is the type of

technology use in the airstrikes right now, if it expands, can you imagine what other technologies they may employ to get the job done that they feel needs to be done? that is the future of the speed of light weapon. it is a weapon that is unlimited. the cause of engagement is very minimal. it is trying to understand how you can put it inside of an atmosphere. once the ray of light that goes, there is no and to it. you have to make sure you are covered when you shoot it and if you mess on that aspect -- miss on a that aspect. that is where we will go to be ahead of everybody else in that type of system. to be able to take out missiles and planes and use offensively. ellison. we will continue to follow what is happening in iraq and bring

you any latest updates throughout the day. makesal storm iselle landfall in hawaii. one robot is navigating the stormy waters gathering information included critical data. we will hear all about it, next. ♪

>> i am emily chang. this is "bloomberg west." came ontotorm iselle the island of hawaii. it was downgraded from a hurricane before hitting land. thousands are without power and a downed trees and power lines have cut off access to part of the island. quicklye julio is coming up behind and could hit landfall this weekend. robotics,y, liquid

said its robot straight into the heart of the storm gathering critical data and live tweeting. joining me is cory johnson and president of liquid robotics. thank you for joining us. i am from hawaii. i slipped my friends at home. they are home and our board up their windows. spoke to my friend at home. what can the robot do in a hurricane? you have 11? >> we have a 11 gliders around the big island and 2 on this side where the brunt of the storm hit. >> what do they do? >> they collect all kind of information and water temperature and current and a goalie to get a better. we are right on the surface of the ocean and collecting all of this data.

forecast from satellite above the clouds and we are right on the surface and gathering real-time data and applying get back to shore. >> what kind of data do scientists not know when hurricanes go across the water? >> this is the first time that something has been on the surface and gathering real-time information. you can put bullies out but they out but theyuoys are not in the deep ocean. all of the hurricanes into the atlantic and there is no measurement. with our wave gliders out. >> like when the temperature change and to monitor wind speed from the air and radars? >> as a can of but it is an estimate. -- as they can, but it is an estimate. parametric pressure, we are right on the surface. >> are you giving it to

meteorologist? are they using get? >> sure. they are using the information. it is on our website. we are tweeting. you can collect weather data. this the first- hurricane and they came close to hitting hawaii in a more than 20 years. what it can do is so different that what you were able to do then. potential for this technology and what else can it do? the waves glider in hawaii a couple of years ago. >> we do a lot of work with the defensive department. we can put sensors on the way the water. there is no engine or fuel. it is solar powered. we drive our communication technology, wi-fi and cellular. a java-based system on board

which is why we can tweak and get information. of these wave gliders can collect information. 71% of theovers ocean surf -- of the earth's surface. >> it is so sustainable. employment, what do they cost? >> they are about $300,000 per vehicle depending on how many sensors you put on the platform. just to give an example, if you put a ship and go 50 miles is $100,000 a day to run the show with fuel and crew and everything else. things it youther are using this technology for light oil spills. tell us about what else. oil and gas we have a joint venture. a lot a regulation in the business as you can imagine. oil cap is leaking, you

want to know that so a wave glider can detect and the surface. also general security. nations, ae island big problem is illegal fishing. we have the gliders. >> hurricane julio is coming up. how kind of indestructible are these? how much can they withstand? very interesting. three weeks ago, will want for a super typhoon and the south china sea. per houre 180 miles winds. we were transmitted data all the time. we want through 15 hurricanes and typhoons. the bigs was three weeks ago. >> it survived? >> it survived and transmitted the whole time. >> was it water all over?

.> we had all of these sensors it did not have a camera. >> what about discovery? there are a lot of issues to find place to drill for oil offshore in the current technology is sort of stoner -- sonar guns. do you guys work like that? >> we do. we help to do seismic testing. sensitive areas. the wave glider, from top to bottom, is about 20 feet in total. we can go in shallow areas. it is quiet and we can listen. the easiest analogy would be the ears of the ocean. we are listening. to ships and they fire off cannons. liquid robotics

president and ceo. thank you very much. we have a live shot on turtle bay. this is the island i grew up on. has hit storm iselle it. all of the islands in the path of hurricane julio which could hit it this weekend. still unsure of how hard it will hit land. it may be traveling more north of the island. there is a satellite shot from up above we were discussing. some of the rarest minerals on the land are used to create some filesh's top items from to electric cars. what are the hottest rocks in cap -- tech? that is next on "bloomberg west ." ♪

>> welcome back to "bloomberg west."

are critical for making everyday technology like smart phones. what are these elements and how do they get into your phone? cory johnson is back with a more. >> american elements sells almost every element on the periodic table. good to see you. this is something we do not talk about much. goeshysical stuff that into all of the technological devices we talk about on the show all of the time. how has he changed over the course of the past 10 years? back 10 years ago and asked if you are in high technology they will say i write code. not realize it is not called algorithm valley but silicon valley. are reflected by guys like elon musk that went from

paypal to building rocket ships. buzzword. is the when you talk about inventing things and modern times. >> i read an article, a great tellson a yale study that about how rare some of these metals are. innovation, the computer of 20 years ago may have used 14 elements and now for five times that and that is why they are so much faster. gowe had to go back, we will back to slower machines as well. where do these things come from? these newer elements? >> all over the world. they tended to be concentrated in special areas. your viewers will know -- 14 elements on the periodic table.

essentially they all come from china. china just won the russian roulette game. they have monopoly on the materials. >> an important development just yesterday where china had a change the game a while back and ofd we will raise the price exporting these raw materials. if you want to make something, you can make them for a lot less in china. on theect of mining economy, is it about that or china trying to capture the manufacturing? >> if you accepted the ruli'sng to control is trying the industry. they were really private plants. processlear that the was to basically drive jobs. if you think about -- to approved deals about

economics. >> if you have a super mining industry, you make rate 10,000 jobs but if you pass it down to automobiles or electric cars, that is million of jobs. is a drop -- and jobs driven decision. >> the electric car uses a lot more raw materials and different kinds of minerals. what kind of things are in electric cars than other cars? >> the most powerful magnet known to man so all electric cars have the magnet. the glass polish. the wavelength. ubiquitous. >> and a cell phone. -- we have aof fun lot of fun about the new iphone about what is inside.

if you look inside of a cell phone, what kind of material is it used? sarnoff to get europium. [indiscernible] it's a magnet. glass.serum in the loads of them. >> michael silver, we appreciate your time. ,hris all right, cory johnson thank you. ed thank you all for watching -- >> all right, cory johnson, thank you. -- and a thank you for watching of "bloomberg west." ♪

>> welcome to "money clip" where we tie together the best stories and video on business news. i am adam johnson. deaths from ebola top 1000. the world health organization calls it a public health emergency of international concern. paul singer -- how he plans to get argentina to pay up. in politics, turkeys prime minister wants to pull a vladimir putin. let's call that a grand plan for circus domination. meanwhile, he is one of the 1%,