>> live from pier 3 in san francisco, welcome to "bloomberg west," where we focus on innovation, technology, and the future of business. i'm emily chang. first, a check on your bloomberg top headlines. the dow, nasdaq, and s&p are all down. the dow has erased its gain for the year and global equities at a loss of 3.5 trillion dollars since hitting a record last month.

jpmorgan ceo jpmorgan will likely double what it annually spends insecurity within the -- in security within the next five years. they were hit by massive cyber attack that exposed information on 76 million u.s. households. >> we have to be vigilant. there will be a lot of battles. unfortunately, some will be lost. the defense ministry has been going through this. there are a lot of additional protections in addition to people stealing account numbers, but this could be a big deal. >> dimon spoke of institute of international finance of and in washington. -- event in washington. silver lake has shown it attempts to buy shutterfly and snapfish. they decided against buying after performing due diligence. the news comes days after hp announced splitting into two different companies.

and dave and busters is the latest casual dining chain to go public. it operates with games and food pertaining to adults. >> we want to grow at a rate of 10% in the united states and canada. going forward, we are exploring international development. i think we will have a partner signed up sometime during this fiscal year for us. we are excited about that prospect as well. >> the chain will also repay debt in the offering. now to our top story -- microsoft ceo is backtracking and his comments that women should not ask for a raise after sparking a firestorm. this is what nadella told harvey

mudd college president and microsoft board member when asked what women should do when they feel uncomfortable asking for a raise. >> it is not really about asking for the raise, but knowing and having faith that the system will actually give you the right raises as you go along. that might be one of the additional superpowers that quite frankly women who do not ask for a raise half. -- have. that is good karma. it will come back. somebody will know that is the kind of person i want to trust. that is a kind of person i went to really give more responsibility too. >> he was immediately challenged for urging women to ask for their due. he sent a tweet and email saying when it comes to advice, maria advice was the right advice. if you think you deserve a raise, just ask.

maria, i'm curious, what was your thought in that moment as he was speaking? >> well, first of all, i was surprised his response. we were about 45 minutes into the interview. he had been amazing. he is an amazing leader. he's very passionate about supporting women in tech careers. he answered every other question and had gotten applause and cheers. just imagine -- the buzz was incredible. i asked him that question. he gave that answer. uh, don't think so. i wanted to politely disagree. i know it is important -- i think it is important for leaders to expose their own

failings. i have lots of them. my ability to do a good job of asking for raises is one of my failings. i pushed back with a couple of anecdotes about when i had not done my homework and really known what i had to ask for an accepted a lower salary. i did that twice. i was also surprised. my feeling after the interview, i got so much feedback from the attendees about how amazing satya was and how inspired. there were people who said they would go work for microsoft if they didn't already work for microsoft. the response in the room was intensely positive. frankly i was quite surprised at the firestorm that grew on the twitterverse and made it to traditional media.

when i think about male leaders and the role in helping women move forward and being recruited to the advanced and mechanized, i think it is important that we encourage ceos and male executives to take this on as their issue and not just the issue for people like me who have been the first woman in the job for 26 years. i worry that if the first time that we have a male ceo at a harvard conference and he is there because he is passionate and inspired about the issue and blows an answer and the whole world becomes angry at him, that makes it hard for me to encourage male leaders to be part of the group that we need

to make the changes going forward. >> here's my question. on twitter he responded sake he was inarticulate. it's not like he was saying that he -- he was saying that this is a commonly held belief in business. >> and pretty sure it is correct. he grew up in south india. there are cultural values in south india. you work hard to make contributions and your karma will make sure that good things in the end happened to you. it may not happen immediately, but they will happen. his comments were not about women. he would have said the same exact thing. he thinks that nobody should have to ask.

the system should work and recognize contributions fairly. over the last let's say 24 hours or so, he had opportunity to think about a different answer, which is not inconsistent with the answer he gave. the different answer is given that our corporate culture and in academia as well, given that culture rewards people who ask for more responsibility, who ask for help, who ask for promotions, who ask for raises, given that culture disproportionately rewards people who do that, telling people that they do not have to ask is not the right advice.

>> right. >> i think everyone will feel empowered to ask. >> this is a survey where employees submitted their salaries. men made more than women at microsoft. should women and microsoft be asking for a raise? >> yes, they should. absolutely. that is not true just at microsoft. it is true across the tech industry. the disparity is better than it is for industry in general. >> president of harvey mudd college and microsoft board member on nadella's remarks on

women. thanks very much. we will have more on "bloomberg west." ♪

>> i'm emily chang. this is "bloomberg west." has linkedin cracked the china code while other tech companies have had huge clashes in china? linkedin has been quietly building a healthy following there with 4 million members. jeff weiner tells betty liu that the company's expansion in china hasn't been easy. >> to do so means complying with chinese law. that means doing things we not comfortable with and do what we have to to comp mise on some of ourompromise on some of values. we think the value created in china is worth doing business there. >> linkedin is try to push for as much transparency as possible when it comes to nsa

surveillance requests. betty liu took a ride with elon musk after the unveiling. >> how will this refurbished the image of tesla motors and be a car company for the masses? you are using a car that will be more expensive. >> this particular event is about showcasing what electric cars are capable of ensuring that electric car could be the highest performance car. the performance version has acceleration equivalent to one

of the best superpowers ever. it gets pretty close to that. [laughter] >> should we try that? ok. ready? all right. here we go. [laughter] wow. what did you think when you first experienced this? [laughter] >> okay? i'm not touching anything. >> what technology is in here? >> it is a combination of radar and camera with image recognition and ultrasonic sensors.

it is integrated with maps in real-time traffic. it is a synthesis of all of those systems. >> when you were accelerating back there -- >> it brakes by itself by the way. >> i saw that. let's say you were accelerating that quickly and an object flew in your way. what would happen? would it brake on its own? >> yeah. is it detected that something would hit the car, it would do its best to mitigate that. it would brake. if you are going 60 miles down the road and something leaps in front of you -- >> there's nothing you can do about it. >> nothing under any circumstances. it cannot do impossible things. it could improve the safety of where the driver doesn't notice there is a industrial about to

cross the road or there is a car that has come to a stop in front of them. in driver distraction situations, it could be a lifesaver. >> betty liu with tesla ceo elon musk. betty is joining us now. betty, there were great expectations for this unveiling, especially after he tweets unveiling the d. this is going to be some sort of updated version of the model s. i saw one headline that says d is for disappointing. is it? [laughter] >> i thought about that, too. there are people out there on the twittersphere who are saying this is less than they expected. i think internet disappointed itself. they got a lot right. there was so much speculation ahead of time. they got it right it would be an

all-wheel-drive and some autonomous features. they got it right there would he a faster car did everything they expected came true. that may be why you are seeing some disappointment. it wasn't the blowout people were expecting. it had gone done almost 8%. as you recall, elon musk thought the stock price was too high. this might be another excuse for investors to sell into this news. >> cory, are you d for disappointed? >> i thought the car was really cool. i got an audi. at about the same price, an amazing car with a heads-up display. all kinds of electronics that i didn't know luxury cars are coming out with now. this is about tesla catching up to what other cars are already doing. tesla will certainly be playing catch-up.

there's something about elon. there's something about tesla that seems more exciting. >> and no timeline. these features will be added over time? >> there is a timeline. by next year, you will be able to add on the option of all-wheel drive on to your current model s's. he will be rolling this out in the u.s. and overseas. one of the things about this is guys love cars. there has been so much enthusiasm over how cool this car is. cory says he loves it. it looks great. i wanted to know about the practical side of this.

if i'm driving this car down the road, what happens if it is on auto pilot and it hits a barrier and hit someone. who is responsible for that? there are a lot of legal questions that are left unanswered. one thing i want to point out is that elon musk said with or without any of these certainties about what economist driving will look like, he believes it is firmly going to happen in our lifetime, in fact, in this decade. >> betty liu there with elon musk in los angeles. thank you for bringing that interview to us. still ahead, airbnb defends its new logo. ♪

>> welcome back to "bloomberg west." i'm emily chang. vanity fair hosted its summit in connection with the new establishment in san francisco. on that list is the most influential people in technology and media. we spoke with some of those big names. i also moderated a panel called generation next with airbnb and nasty gal and pinterest. >> you guys recently changed your logo. we have a shot of that. you say it looks like an ear. what do you guys think? you are stuck with it. it was controversial.

>> i had some reactions that were pretty amazing. there were some favorite tweets. where on the logo did the bad man touch you? [laughter] honestly i think i like the brand to be so iconic when someone sees it, wow, you look like the airbnb logo. [laughter] the real description of the logo is the first one on the left was an identity came up with in about two weeks. it wasn't meant to be an icon to endure. we need something cap they are about. they have a longing in bringing people together. we wanted a universal icon. if it be replicated.

the logo is simple. anyone can draw it. it could be drawn in the sand. the reason we did that is we do not see ourselves as a mass-produced brand. our products are people here at everyone of them is different here we wanted the expression to be unique. >> my panel at the vanity fair with airbnb's ceo, nasty gal, and pinterest. do not miss studio 1.0 today. only on bloomberg television. we will be right back. ♪ >> time now for bloomberg television's on the markets. u.s. stocks attempted a comeback after yesterday's selloff. the major indexes closed at

their lows. a third straight week down.

>> you are watching "bloomberg west" where we focus on innovation, technology, and the future of business. i'm emily chang. have beents unavailable to customers for a year. the fda ordered a start up to stop offering its genetic information reports. it is still battling with regulators as it tries to look at genetic profiles for medical research. a does the company's ceo see the future of 23andme. i sat with her at the vanity fair summit. >> everyone goes into the hospital or sees the doctor and

t some point. i think the system is fundamentally rogan. one of the core elements is the consumer is not at the center of it. my company, 23andme, we put the consumer at the forefront. >> a year ago, a seems they forced you to stop marketing your product. >> we got a warning letter asking us to stop. the fda saw us as a medical device. when we launch the company, it was about giving you genetic information for education purposes only. as we have evolved, and has become more medical in nature. it makes sense that we are working with the fda and we have submitted an application for

them. we are hoping to be back on the market at some point. >> when do you expect to be back on the market? >> we have submitted an application for one of our reports. i think setting expectations that it will take time is reasonable. >> you have brought in executives. how has that changed the landscape? >> a massive change. before we didn't have a lot of experience. we were a startup. as we grew, we started to understand that there is this whole world that we were getting into and that we need people who really understood how to navigate that. >> do see that as a common problem for many of these destructors who are disrupting industries where they do not

have native experience? >> i think we are unique. health care is more regulated. i look at uber and youtube. i see how the consumer really transforms media. 10 years ago, media companies were not putting content online. because consumers created a competitive channel, there is tons of content coming online. consumers create a whole new system. we own our own medical records. that works in parallel and complementry to the positions that exist. with the researchers who are trying to make discoveries in the world and want to do well, we will connect those. you are now at the center of it. >> and terms of the experts you have brought in come is there a specific example of how they

have helped or changed or encourage you to change things? >> we recently brought in a physician who is incredibly well known. one other thing things she did recently is she held a roundtable for 21 of the leading experts in the country in the field of genetics. i think what was amazing is that it enabled us to really engage in an open dialogue about what specifically should we be doing for the next five years? how do we evolve? genetics is coming. it is feasible to get all of your genetic that it. what is the way to do what the fact that we do not know what all of your genetic data means? >> how do you turn your vision into a business? >> one of the things i want to do that has been near endure to my heart is transforming how we approach research.

you contact the hospital or the physician and you collect -- you find human subjects. it is a long process to run a clinical trial or study. let's make research a real-time experience. 23andme encourages millions of people to participate in having their genetic information and fill out surveys and we engage them with researchers. the average customer and participates in over 230 genetic studies. it is amazing how you do not have to go to 230 centers. just being part of 23andme, we could enable access for them to do research projects. that would significant advance and accelerate the pace of discovery. >> you speak a lot about things are passionate about it i'm guessing you're not passionate about spending time in d.c. with regulators.

>> i have been going to d.c. a lot. it is one of the things i have never been interested in, politics. i'm enjoying the time there in part because i realized the country operates on the structure that is set up. the structure is set up in d.c. it is one of the things i remind people all the time. health care is huge. it is all regulated are the government. we have to have that partnership. i need to understand the different players that are coming in. i have got to be partnering with all of these players. >> 23andme ceo. oh snap. hackers have accessed photos taken on snapchat by users who thought their photos would disappear. there are nude photos.

what could this mean for this messaging startup? ♪

>> i'm emily chang. this is "bloomberg west." symantec will separate cyber security and data storage division to be two independent publicly traded companies by the end of the year. cory johnson is with me in the studio and a bloomberg security reporter. kedrosky. got paul exploringey were

talks. now it is happening. what do you make of it? >> it's an interesting move now. there is an incredible price war going on. there is a site of the business that is driven by headlines. it has been an incredible death spiral. the whole model they pursue has really fallen apart in the face of the internet base service of malware. this will be a tough one. >> what does this mean for the industry? >> it means a couple of things. on one hand you have two businesses that aren't growing. as one analyst put it, there are two businesses that are not growing. the problem is that symantec had

a security system for many years. it was the only thing you needed. antivirus did very well. now you're in a situation where antivirus alone will not catch a lot of anything. they need to adjust that problem parity rapidly. what we have heard is that the split will give them the resources to be able to do that. what we are hearing is that they have been sniffing around the stores division for a wow. i would be surprised to see that division selloff at some point. >> do you look at this as another big failed merger? >> if you look back, there's a reason why tech is trading at high numbers. it is a mature industry.

they've resort to large acquisitions. a large acquisitions have a terrible track record. you get this fall out. you realize it doesn't work and then it is split up again. >> i want to make the transition to another story. they're calling it the snappening. photos from snapchat were hacked. there are thousands of photos from teenagers, including nude photos. >> it is not their fault. they are not the source of the leaks. they were victimized by third-party apps. they prohibit -- there are lot of apps out there that have been popular that

allows snapchatters to save those pics. >> the dissemination of the pictures could qualify as child pornography. jordan, what do you make of this? >> it is another reminder that a lot of these services do not do what they say they will do, which is protector privacy. there have been security researchers that demonstrated that even if they do not save the pictures on its servers, you could still retrace those images from the devices themselves. it really underlines how if you are relying on some of these

services to protect your privacy, you need to be sure that your privacy is protected. at the technology itself doesn't automatically do that. >> paul, your thoughts other than your concern for your teenage children? [laughter] >> we are in a snapchat free zone. i thought it was somewhat reprehensible. you didn't use our client to access your mail. all bets are off. your mail is out there in the ether. it doesn't work that way. >> is this really damaging to their ultimate business? it really is about the notion that the pictures go away and this is a clear sign that is not the case always? >> i think we have seen a number of these stories come out where the service cannot protect users data, their photos, as well as

many people think they can. there is a big difference between what people think technology can do versus what technology actually can do. taking a screenshot of a sensitive photo is simple as hacking into a server. that is easy. the security and privacy mechanism seems to be really strong if you're going to trust services with your sensitive data. it doesn't help the image of these companies. >> a story we will continue to keep our eyes on. thanks so much. well, imagine testing for radioactive material or detecting an explosive from your tablet. we look at how irobot is making its new robots even easier to use. you could watch us streaming on your phone, tablet, and on bloomberg.com. ♪

>> welcome back to "bloomberg west." i'm emily chang. irobot has 6000 robots around the globe. there isn't a lot they cannot do. their defense robots have been used to hunt down armed suspects and clean up nuclear disasters. controlling the robots has been challenging in till now. irobot announced a new android app where users could control

multiple robots from their tablets. tim, what exactly is new here? what can the robots do now? >> we have a history of improving in simple find the control technology. we are taking that next leap. we're moving to tablet technology, specifically the android universe of controllers. we are able to bring a lightweight controller in the form of a tablet controller and provide significantly increased capability in a much simpler and easier interface for that operator in a critical mission scenario.

>> i look at these images you provided for us on how this would work. your military business in terms of revenue is really plummeting. is this something you need to try to get the military and police force more interested in the product? >> certainly with the drawdowns, we are seeing growth in our international markets and growth in our police and domestic markets. the whole idea is how we make it easy to use? how do we expand its radio range it capabilities for urban environments to get downstairs into basements and some places that are really challenged a radio range perspective? >> what is a feature of this? what would you hope down the line? what are you working on to give your robots new capabilities?

what else will they be able to do? >> one of the big things we have really looked for is connecting our operators to the cloud. we get the capability to identify and incorporate procedures on how to disarm them or safely render them safe. that reach back for the operator and ease of use and the ability are the primary things we're looking to get out of those controls. >> what does this mean for your vacuum business? they say there are a lot of competitors from all over the world. >> what we try to do is take advantage of volume associated with our commercial or consumer business, as well as the more expensive and merge those together and leverage those across both businesses. >> we were just doing a story on

hack attacks. it is an accelerating problem. what are you doing to protect your robots from hacks, especially when they are doing important and critical things? >> we have a radio system that forms a network when it is turned on. it is a protected network that we can share that information with those we have got the password out too. swat cams can provide data feeds back to command centers. >> all right. thanks so much for sharing that with us here on "bloomberg west." >> great to be with you. >> it is time now for the bwest byte, where we focus on one number that tells as a whole lot.

what have you got? >> 395. that is the number of dairy queen locations that were hacked. 600,000 customer names, credit card expiration dates were hacked. maybe this wouldn't happen if they owned a dairy queen. [laughter] >> gosh, all the way from dairy queen to neiman marcus. no one is safe. >> it is interesting. they have got to deal with these issues. it is a big deal. >> how good is security in technology at this point? how much more work needs to be

done? there has been criticism on how much innovation is happening. even jpmorgan has 1000 people devoted to this. >> and spending more than any other bank. i talked to people in the security space. i asked what it takes for companies in the future. then we learn that they aren't secure. >> do we know what kind of technology dairy queen was using? >> no. i cannot -- why can't they leave them alone? hackers, do they have no shame? >> thank you all for watching this edition of "bloomberg west." you can get the latest headlines all the time on bloomberg.com. see you later.

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