♪ impair three in san francisco, welcome to "bloomberg west." i am emily chang. twitter is ceo dick costolo says his company is suspending user accounts that share imagery of american journalist james foley's execution. a video of the killing was posted on youtube as well but later removed. the islamic state is claiming responsibility for foley's death in rehab tech -- in retaliation for america's involvement in iraq. uber announced it is making its developersle to all including united airlines, opentable, hyatt, starbucks and

all the users will be able to request an uber without leaving their app on the heels of uber hiring president obama's former campaign manager, david plouffe. square has more cash to give away. victory park capital has made an investment to expand its cash advance for graham, square capital -- it's cash advance program. twitter is taking down images and video of the beheading of u.s. journalist james foley. by islamic militants dick costolo said we have been and are actively suspending accounts as we discover them related to this graphic imagery. a video of the execution was posted on youtube but was taken them hours later. this is the latest example of social media companies increasingly policing user content which is a change from the open internet policy many of

them have embraced for years. video,he release of the it logged over 10,000 tweets. let me bring in a special roundtable. we have a law professor at uc hastings and was a military defense attorney in israel. also with us is courtney radish. currentformerly the test the program manager for the person campaign and is led advocacy missions in libya, and dozens of other countries. -- also with is a david kirkpatrick. thank you all so much for joining us. are there any legal issues here? like there are with child pornography. the legal point of departure

is the first amendment which guarantees free speech is a fundamental right. years were there has been litigation about this, it has mostly focused on fake things like violent videos for and the like and not so much on what happens in real news. the freedom of speech has curtailed mostly in issues of obscene materials. there is a lot less litigation surprisingly on violence and in recent weeks, we have been flooded with violent images rmb all over the world, this being the last series of images we see from gaza and the ukraine and all of these things raise issues that have not been extensively litigated yet in the context of social media. >> so it's not necessarily illegal or legal? >> the question is what is legal? as far as the first amendment and being charged with a criminal offense, that is probably impossible. this is probably covered by free speech but there may be concerns

pertaining to tort law. there is intentional infliction of emotional distress and families of victims are people were closely related to people seen dead or mutilated or violently ravished on tv might have a legal civil claim against the news media outlet saying that just watching the images and having those graphic images out there have caused distress. >> when it comes to the law, there may be a gray area. do you think there is a gray area here, courtney? >> i think the focus should be arehether or not the videos going against the terms of service of each of those organizations. youtube,facebook, google -- they all have their own terms of service. they are within their right to remove content is my understanding of it violates their terms of service. the focus should really be on the horrific case of james foley and what has happened there and on the deadly conflict and the need for journalists to be able to report on this conflict

without being murdered. it is the most deadly country for journalists in the world right now. >> it certainly is such a tragic story. david, we tried to read the fine print and it can get a little confusing on terms of service. twitter says they will remove images or video of deceased individuals. they consider public interest factors. that may not be able to honor all of these requests and facebook says that place to burden on individuals to share responsibly. youtube says they have clear policies that prohibit content like gratuitous violence and hate speech and incitement to commit violent acts. they removed these videos and terminated accounts registered by members of a terrorist organization. you are familiar with the history surrounding incidents

like this print what do you make of what they have decided today? >> i think twitter seems to be on new territory and not just removing the imagery but actively suspending the accounts of people who put up that imagery. they even mistakenly suspended it first journalist who reported the existence of this video even though he never links to the video. they are in a serious gray area. us reading the terms of service of twitter this morning, it's not clear that they have been violated by this video except to the degree that someone's account should be suspended. it seems that the family of someone who is deceased has the ability to request twitter to remove imagery related to their deaths which is probably what happened here in terms of the imagery itself. suspending accounts goes something that

is being defined as we speak and nobody really knows how it is properly handle. these companies have brief -- acquired from our implements over the dissemination of information and yet they are conduits for individuals to be empowered to share. it's a very complex scenario. facebook does have clear rules that allows the company to remove pretty much anything that it determines constitutes hate speech or is excessively violent so facebook has a lot of precedent to remove stuff. suspending an account is a different area. >> facebook has been criticized for removing certain things and then they backtrack. you wrote the book on facebook. how does mark zuckerberg think about these kinds of issues? >> i think all of these companies tend to err on the side of free speech as much as they can. they also have to consider their own legal liability. because of many of these situations are literally brand-new and technology never

made possible in the past, i think they are responding on a case-by-case basis. defined no real clear policy that can be applied in every situation. this is such a horrific incident that it seems like twitter is taking actions of a sort they have not taken the past. i'm sure there is no way you can find any of his imagery on facebook. have 1.3 billion users on the service, no matter how many algorithms you have in place to prevent things from going up, you cannot stop everything the minute it happens. , and ourkirkpatrick guests, thank you very much. it's obviously a story we will continue to follow. coming up, how can you request andber outside of the app how they are partnering with several apps to make your ride

seamless. we will speak with their senior vice president for business next. ♪

>> welcome back to "bloomberg west." 47 people were arrested in ferguson, missouri overnight as protest continued on the shooting related to armed teenager michael brown as and the rest of the city is returning to relative calm. last night was the first time in four days that authorities did not used tear gas and one group of volunteers have been broadcasting from the streets over the last several nights. argus radio has drawn thousands of years by streaming the ferguson protests on the ground. for more on what they are doing and seeing, i am joined on the phone via live stream by mustapha hussein in the streets of ferguson.

thank you for joining us. as we speak to you, we can also watch video of what you are streaming. what is the latest on the ground from your perspective? clayton now, we are in outside the justice center where a small group of protesters have gathered. and a a small police line roping off of the area on the other side of the street to await news of the grand jury hearing. >> what sort of technology are you using to broadcast what you see on the ground? >> we are using -- -100 videocanon xf recorder with a live streaming broadcast box. we use our broadcasting service through life streaming. what has been the reaction to

what you are putting out there? i know you are the most popular live stream channel. was her response have you been getting from people watching? >> the biggest response we have been getting is a gratitude for the dedication and time we have been putting forward in bringing this live stream video uninterrupted to the viewers. it is something that the major networks are not able to do with their scheduled programming. we can provide a continuous feed of the events on the ground. as they unfold. >> obviously, this is such a challenging and controversial story. what sort of legal obstacles have you run into? has anyone tried to stop you? had thelegally, we have officers tell us -- and it's not just the live streamers, its members of the mainstream media

like cnn and msnbc and all the networks who have local affiliates in the area. we have been forced nightly to move out of the zone where the protests are taking place and retreat back to what has been called the command center which is several blocks down the street at the target. that's where the national guard is based. essentially removed from having the ability to record or broadcast live what is going on when the events occur. >> we are actually seeing what you are seeing right now. from the streets of ferguson. it looks peace all right now. things have been flaring up on and off. how do you expect this to play out given that you have been on the ground for so many days? night wereests last

really peaceful. we were live streaming. for an unknown reason, after they had ended their nightly rare and announced -- nightly everyone would get together in clinton at 9:00 in the morning, we lost the signal. many of the individuals in the media that were on the ground where recording that they had no cell service and that was the first time that our broadcasting unit an error with no con activity to our live stream. thing people have been discussing is the idea of more police and this has happened in other parts of the country, wearing cameras on their vests to sort of promote and ensure transparency. how do people feel about this there? >> many of the protesters we have interviewed documented on

camera have been carrying signs and expressing verbally the need camerasameras --dash in vehicles and the need for officers to wear mounted cameras on their uniforms in order to be able to actually document what is happening when these officers make these stops. >> that is something we will continue to follow. that is something the official authorities there are reportedly considering. founder of argus radio, thank you so much. we will continue to monitor your lifestream. an openp, how uber has api and how it will be a game changer. we will speak to an uber executive next. ♪

chang and this is "bloomberg west," on bloomberg television, streaming on your phone, your tablet, and bloomberg.com and now available on apple tv and amazon fire. , the ridesharing app is now available in 44 countries and 170 cities and is launched a major campaign to win over users and regulators support. they announced the hiring of the president obama former campaign manager, david plouffe to reese -- to lead strategy for the company. we talked about the new campaign. take a listen. communication, policy, branding and strategy and weaving that together to tell a story in the cities we are going to come in to get the data out there about the good we are doing and how safe the rides are and the tens of thousands of

jobs we are creating every month and about the economic opportunity for drivers and making sure cities understand the progress that uber represents. >> today, the company also announced they are opening their app to all developers along with 11 launch partners including starbucks, united airlines, hyatt and opentable. joining me now is the senior vice president for business at uber. you guys have an announcement almost every day. >> there is a lot going on and we are moving fast. >> tommy about opening up the api to do -- tell me about opening up the api to other developers. basically, we are allowing third parties to do for the first time ever is get access to the uber platform and network so they can build into their mobile apps the ability to get an uber uber and see how fast they can get from their restaurant to the

hotel and those kinds of different cases for all apps all over the world. >> this is just the beginning, anyone can do this? >> anyone can do this with us. we are starting with 11 big round launch partners but we are opening it up to the dorm room developer and the companies starting today in every country in the world. you will see this proliferation start today and go throughout the rest of the year. partnerso make that will combine 200 million users? >> and growing fast. >> how many of those users could be new uber customers? >> hopefully, all of them. [laughter] i am targeting kind of a different metric. isabel bowl and being used by tens of millions of users and starting today, hopefully it's hundreds of thousands. -- hundreds of millions. we will be on billions of pounds next year. >> there have been reports about integrating with facebook and

messenger. what about something like that? >> if you look at what uber's api can do is it can be integrated into messenger and commerce and maps app where you try to go from one place to another alone or a group. >> you are the guy driving these conversations. what is that like behind the scenes? >> if you are a deal guy, it is deal stuff. also launched corner store which is something you are testing an washington, d.c. to deliver anything in the washington, d.c. area? >> think about when you walk into a walgreens or the corner store to buy what you buy every day. what are the most used items? we will put those in lots of cars around the city so when you push a button, hopefully they will be no more than five minutes away. that is corner store at your door. >> when is this coming to san francisco? >> we are starting with d.c.

first. just like we do everything, we let our city team experiment with ideas when they were, we refine them unroll the not globally. so it's coming soon. >> what else can uber do? ? >> [laughter] i haven't heard that one. . >> travis said anything is possible. seriously, you guys are trying these different things. what's next? what you will see a lot from us in the next six months or so is allowing third parties to bring uber into their app. they will start to deliver things like this corner store and you start to see all kinds of experiments. you have heard the start of get funded and use uber for this or that. save ubergot my first in california e-mail yesterday. there is a bill being voted on soon that would require more

insurance for ridesharing. you are asking people to write to their state senators and asking people to sign petitions. what has been the response? >> it has been incredible. we have dozens of ceos of major corporations in california and have tens of dozens of consumers. we have had tens of thousands of drivers all petitioned their california rep and the governor. insurance is not what it seems to be. its quadrupling in some cases the amount of insurance a driver has to have relative to a taxi. everywhere in the country, we have the same or better insurance than any other taxi company in the country. let me repeat that -- in every city we are in in the u.s., we have better insurance. this is looking to quadruple it beyond what we have today. the cost tested it has to consumer so it makes it tougher -- the cost has to be passed to the consumer so it makes it tougher. >> thanks so much.

are you a small business owner looking for a loan to grow your company? we will tell you about the square partnership that could help. you can watch us on bloomberg television, streaming on your phone, your tablet, and bloomberg.com and now available on apple tv and amazon fire. everywhere. ♪

>> you are watching "bloomberg west." companies are has secured an investment from victoria park capital to expand its cash advance capital, square capital which allows small and medium-size businesses to take a short cash advance from square as opposed to an out right loan. terms were not disclosed but the company says it will use the funds to extend financing to additional sellers who need capital to grow. $1 billion is already been processed britt apple stock has crossed an all-time high today -- still

trading up there and topping the previous record of $100.72. this comes as investors anxiously await new products like bigger screen iphones and a wristwatch device that could be announced as soon as next month. but are these products really the big thing we have been waiting for or is apple struggling to find another hit? i'm joined by an early investor in facebook, yelp and other companies and a cofounder of silver lake partners. as always, great to have you back. >> great to be here. >> we have had some i conversations about apple over the years and you have thought that the innovation has stalled another stock is trading at an all-time high. is it deserved? >> i totally things deserved but my issue with apple is not innovation. the issue is the software is not very good. they have made the experience less attractive and failed to

recognize some of the opportunities and the cloud that are available to them. the stock is still a tremendous discount from the s&p 500. the fact that it is at an all-time high is against the context of being one of the cheapest stocks anywhere in the stock market. investor, i love apple. it's so cheap that as long as the products can plug in and turn on, the stock will be fine. the real question for apple is when are they going to wake up and realize that the cloud is the future of their world and that there cloud product currently is terrible. it does not need to be. they are apple. they can get this right. >> is the phone with a bigger screen enough? >> i don't think it matters. i think new is what matters now. i think apple has several things that went into the most current phone, the 5s, that are tremendously innovative one of which is the fingerprint security and another is air drop, the local sharing of

files. those things were only on one product and now air drop is on a bunch of products but as things spread around, they become much more valuable. i think this generation will take that forward. we are no longer in the early days of cell phones. it is really hard to get people excited about a cell phone today. from apple's point of view, put out new products, ideally they will be great and even if they are only ok, they will still be good enough because the stock is trading for less than the s&p 500. >> you are saying they could be better? >> how about just getting icloud to work equally well? >> i think we have all had those headaches. >> if i were in charge of the company, i would recognize that they have two operating systems today -- macintosh and ios. icloud is a third operating system and i treated it as an -- and if they treated as an equal

partner, the market opportunity there would be at least as big as ios. apple, that would make the cheapest stock in the stark market because i am certain that they focused on the cloud, they would produce something wonderful. >> what do you imagine they could do? >> if you realize that these devices and smart phones have three really important pieces of data -- they know what time it is, exactly where you are, and they have your calendar. if you have all of that stuff available from the cloud, they could sit there and say where in this meeting. you need to leave early because the traffic is really bad on 101 and he will take you longer to get to your next meeting. that kind of thing where these things start to behave like personal assistance and anticipate what you need. they know where you are, what time it is, and where you are supposed to be. >> you don't think this is an innovation question? wonder if that is innovation but it's obvious. it's about execution of an engineering plan.

the apple problem is that they are missing the strategic point which is that the cloud is a stand-alone business opportunity and they should not. think about the original ipod. it only worked with macs at the beginning and it did not take off until they opened it up to the world. with the cloud. who would not buy a cloud product from apple? if i were dropbox, that's the only thing that would scare me if i was running that company. they exist because apple has failed. >> this is software but when it comes to hardware, if apple announces new phones, is that enough? >> if the stock were priced like uber, it would be a huge issue. inexpensive and the cash generation is so high and there is so little risk from a financial perspective in the stock, i don't think it matters that much. >> i'm glad you mentioned uber because we will talk about that

after this break. it seems to be the hot thing that everybody wants to talk about. >> they are right. >> we are getting announcements every day. we will be right back with you after this quick break talking about uber facing serious regulatory hurdles but now the company has political operator david plouffe to help in its fight. we will be back. ♪

i'm emily chang and this is "bloomberg west." we have been talking with roger mcnamee at elevation partners. i want to ask you about uber because obviously the company is facing major regulatory hurdles and they just tired david plouffe to navigate some of the stuff. investors think it is hotter than hot.

given all the challenges they are facing, how have are they? >> i think they are genuinely important. they have looked at a horrible inefficiency in our country which is short-term transportation needs and they have come up with an elegant solution. risk are huge forces at that are trying to protect old markets, cabdrivers and all that. consumers have voted and it feels to me right now as though every regulatory battle will be fierce and uber will win enough of them that they will succeed. what's really impressive about the company is that it fits so well with this really important trend of urbanization and young people in particular moving to tight city places were they don't need to own a car or they don't need to own a home. frankly, they will go to a very interesting personal balance sheet and get rid of the debt.

they have their student loan debts but they will avoid homeownership and car ownership and by playing to that thesis so directly, the convenience and lack of capital required, i think uber with good execution will be a huge company and 10 years. >> more than $18 million worth? >> who knows what the return will be but the opportunity to earn themselves that kind of valuation is absolutely there. i'm not an investor in the company. i just observe it. people feel about uber the way they feel about that become really successful. people of the same attitude about this that they have about the original ipod. >> people rely on it. >> it's like licorice, the people who like it really like it and uber is that way. not everyone has been exposed to get the most of the people who have been exposed to it is awesome. when you see that in the environment, let's look at the

hurdles -- is it possible to get past because most of them are politicals and most of them will i haveness hurdles and to deal with liability when a driver gets into an accident. they will have to figure out if they can afford to own the cars which would really make them incredibly valuable if they could pull that off. there is a lot of issues they have to solve but i'm thinking the smart money says they've got a real shot. you can choose what price you want to pay. as somebody who likes to see companies succeed, you just got done talking to emil and he was impressive and everyone from uber is that way. >> they have pulled together quite a powerful team. >> high-powered for this opportunity. the thing we learned in silicon valley is that success is very situational. someone who has only been moderately successful can be tremendously successful in another. the thing about uber is that the people working there seem to be

really well-suited to be in uber . who knows if they could run general motors but who cares? >> it's not the first company that travis has started but this is the one that is taking off. >> that's the history of silicon valley which is fail, fail, fail, succeed be on your wildest dreams. >> they are delivering things in washington, d.c. and they are talking about taking on fedex. >> they don't have to do anything more to be a really compelling company. what they are doing now is so big that if they simply do it reasonably well, it will be a big company. >> but they could do more. >> yes, the huge opportunity comes from owning the car's. i imagine a scenario 15 or 20 as from now were they on 10% of all the cars on the market they operate in. when you walk down the street, there are all these uber cars and you can decide if you want a driver or a down. if you don't, there are for cars

piled up like zip car. i think that's a secret weapon that causes them to be big enough to be one of the most important companies. with their reservation system, they will be exciting and valuable. you about thesk killing of journalist jim foley on the policy that twitter is now suspending accounts related to this video youtube has taken down. these companies have become so they think they have a certain responsibility to the public in this case. is this right to take the video down? >> this is only my opinion but i look at this and i think that every company is entitled to make a choice whether to have something on their site or not. i respect the decision of youtube and twitter. i also respect the point of view

that in journalism, we should let consumers choose what to watch. it to be available somewhere. it does not need to be on twitter or youtube. i think they are entitled to make those choices and i think society will have to figure out what the new rules are relative to information disclosure. what bothers me is i would like to have a set of rules that alows people to have thoughtful choice on something perfect like the jim foley killing without stifling the absolutely critical to some additive -- dissemination of information about ferguson, missouri and other places were the same rules could be applied in a way that would prevent the truth from getting out. to solveety, we had this problem. that existed before foley. look what's going on in ferguson. these journalists are being arrested. if they can only

selectively enforce this rule? there are potentially hundreds or thousands of tweets that they may be haven't caught. it could be a bigger battle. >> my observation is that they can make their own choices. i think they are entitled to do that. what i think is not clear from a societal perspective is how are we going to choose to deal with information? are we going to live and a first amendment world where it's out there and we can choose to watch or not watch or are we going to live in a different kind of world? i am very concerned because i see an awful lot of forces out there and ferguson is a great example, that people believe it is their right to restrict public access. i look at the obama administration relative to the senate report on the cia spying stuff and the torture stuff. somehow, they think it's ok to restrict the public's right to know what was done in the public's name and i don't agree with that. i don't think the problem here is twitter and youtube. i think the problem at the

society level is with our government and our news organizations who constantly restricted this stuff. toe new york times" refusal use the word torture was a harvell piece of self-censorship. a horrible piece of self-censorship. the news that passes on fox -- you look at the stuff and people make choices. >> every company and every news organization making choices. roger mcnamee, as always, thank you for stopping by. passwords may be a thing of the past very soon. we will introduce you to accompany the post to revolutionize the way we detect our mobile devices right before our eyes, literally next. ♪

imagine you did not have to plug in a password every time you open your phone?

companiesc tech looking to do that by using your items to the password to protect data on your smart the vices. inay, the company closed funding of $6 million with help from sprint and wells fargo. i recently sat down with the i verify ceo. are using these smart phone cameras that already exist and we are taking images of the blood vessels in the whites of your eye. we transform that into a key that can log you into your application like mobile banking or your company's application. >> why the whites of your eyes? >> the whites of the i have this really rich and unique pattern of blood vessels and can capture that with regular cameras. the iris is what most people think of but that needs special lighting. camera regular iphone taking the whites of your eye? >> anything with a one mega

capsule -- megapixel camera better. >> shows how this works. >> this is a mobile banking application and i will login. >> mike the camera toward your face until your eye fills the screen. look up into the left until you feel the phone vibrate. verified. >> that was it. >> that's pretty fast for it >> that was a 50 character complex password that i never have to change or think about. >> where is this technology already integrated? we've got customers in china and australia and customers in the united states. the initial markets that are interesting is where you protect mobile money or your company's information on these devices. >> had as you get into this? mix of crazyight and smart scientists and crazy entrepreneurs. waschief science of us are

a professor at the university of missouri and came up with the idea back in 2006 and it has been six years at the new university and they were looking at airports and border crossing and traditional surveillance-based biometrics and government. i came across him and asked if we could do that here. really it was the right place and right time and passwords are such a pain with other data breaches. that pain has been very pronounced. >> how does this stack up to what apple and samsung are already doing in biometrics? the iphone 5s uses your fingerprint. has a great job done. big bank like wells fargo bank of america and you want to access that, you can only get access to their hardware but we are pure software. we can do whatever the software collar was to do and go across all devices. whenever you have a hardware-based solution, you

will be beholden to whatever the hardware provider lets you do. >> is i scanning technology safer and more secure than fingerprint scanning technology? >> i think it's comparable. we are achieving the same things. we are doing it in a way that is more cost-effective and broader with less restrictions. we can actually calculate this really long key which is an eye-print. >> when it comes to smart phones, what do you see as the main biometric technology to get in and out? >> i think you will see camera-based technologies. i am fastened it -- i am fascinated by image understanding. i don't have to talk out loud. i'm not dependent on hardware. everything will have a camera. >> doesn't the camera technology take more time? upthe thought is to open immediately without restrictions

and then log me in. it is completely passive. the time to get to an application, we are in. does not require me to do anything to open my phone and when i get to something that requires it, they can log in and keep going. verify ceo toby rush. it is time for the bwest byte where we focus on one number. what do you got? nine as in nine major tv content companies in the u.s. which are the companies that own the vast majority of television networks. two of the nine could have merged if fox had reached a deal with time warner. the other seven or disney, conquest, msnbc, and others. this is important because i was thinking about the convergence between media and technology and that you that one of the big technology companies with lots of cash like google or amazon

could buy one of these legacy media companies. i thought about the culture clash that might go with that and i looked at the ages of the ceos at these media companies. they are all fairly old. in fact, the youngest of these legacy media ceos is older than the oldest ceo at a tech company that might buy them like mark zuckerberg or marissa mayer at yahoo! or larry page. they are all younger. what does it mean? maybe it's coincidence that might mean that a culture clash would be on the works. >> it's interesting to imagine mark zuckerberg buying cbs but it certainly seems implausible at this point. it's something that we will certainly continue to follow and thank you so much. watching thisfor edition of "bloomberg west." all the latest headlines on your

phone and tablet at bloomberg.com. ♪

>> from bloomberg world headquarters in new york, i'm mark crumpton. this is "bottom line." the intersection of business and economics with a main street perspective. breaking news, the federal reserve is releasing the minutes of its two-day fomc meeting held at the end of july. nowr cook joins us from with the details. good afternoon. >> good afternoon. these minutes provide us with new insight into the debate around the fed table at that last meeting. they reveal that there was indeed another healthy discussion