>> live from pier three, i am cory johnson, emily chang will be back later in the show. this is "bloomberg west. i -- west." next five years, nearly half of all economic growth outside of the united states is projected to come in right here in asia. region andthis incredible opportunity for

creating jobs and economic growth in the united states. >> the president also announced a deal with china. short-term restrictions f chinese students, taurus, and fitness childless. >> the latest organization hit with a huge database. information on 800,000 employees. customers who called also compromised data from window and online transactions. how secure is your iphone or your mac? iphones are increasingly becoming the target of hackers. hackers take advantage of a flaw to allow them to install fake apps on devices. apple is aware of the issue and is fixing it. google following in facebook's

footsteps launching a new campaign for ebola donation. for every dollar a person gives on google, we will get to doubt -- give two dollars. doctors without borders. donate $15will million area president obama tries to drove u.s. business in asia. he is also making point blank comments on key issues for america. the neutrality. kong on the sec to protect net neutrality at all costs because he is opposed to the creation of internet fast lanes which would allow companies to a more for faster internet feeds. independents an agency and the decision is ultimately there's a long, but the public has already commented 4 million times asking them to make sure that consumers and not the cable company just to decide which sites they use. america is making their voices for thed standing up pretzels that make the internet

a powerful force for change their it as long as i'm president, that is what i will fight for as well your request strong words from the president. have sleigh on what principles the sec adopts? joining us now, former commissioners. michael, let me start with you. what did you make of the president's comments? >> i am delighted. the president delivered on his pledge. it will take a backseat to nobody. the strongest possible kind of network neutrality. this shows we are not just talking about an agency or a set of technicalities or rules. we are seeing the president really understand this is important to the well-being of the nation very it is a driver of jobs, technology, democracy. i hope the fccnd and is listening and will vote at the earliest opportunity the

strongest title to reclassification for the internet. >> harold, what is your take? to be here with my friend, but i have a very different view of what is happened. i think it is a sad day for the government. we have the president of the united states visiting china, a company -- a country without a free and open internet, and he is calling on the fcc back in the united states to regulate the internet. network neutrality is all about regulating the internet. i think the president's proposal has also put all of the commissioners, particularly chairman wheeler, in a very awkward position. do what the president has said, they will effectively look like and be out this of the president. they are supposed to be independent ease, as the president said here there is not a lot of precedent for the

president of the united states taking to television to instruct the fcc what to do. it is a very sad day. >> michael, let me ask you about that. when we look at title two, which is not new law at all, just an interpretation of title to, title ii is part of the communications act of 1933, when the internet could've been a fantasy, even. do you make this is healing to the original principles, or is it new law? >> i do and we stray from those often as yes he seated in 2002 when a request the cable modem and went on to reclassify telecommunications generally. that old debate about regulation versus deregulation. about whether consumers or those huge isps will have control over your or my online experiences on the internet.

all the talk about sending the wrong message, i think china is a good place, the fact that the president is in china when he makes the statement. this is about individuals having power over their online experience. if the threat comes from internet gatekeepers at home, or foreign governments abroad, it all comes back to individual human beings and dynamic technology to help us build a better future. >> let me ask you, the notion of silicon valley, that the toll of the fast lane on the internet could denver competition, why forld comcast get to decide me as a consumer that i should be watching comcast or netflix the o's because the amazon videos they did not pay more money for our slower to get to me?

>> let's be clear but all the so-called problems are hypothetical problems in the future. this push right now to regulate the internet is all about having a solution is urgently there there is no today. mostnited states has the tannic and competitive online industry in the world. disagree with you for a second here. right now, comcast has the ability to speed up its own video-on-demand service and effectively so that editors. that is happening right now. >> is this is happening and there is an anti-competitive problem, the federal government has a great many weapons in its arsenal to go after that behavior. we have the department of the federal trade commission staffed by entirely professional people who i think do a very good job here at if there is something on the contest is doing, there are agencies that can go after them. it is not something the fcc

needs to have some new form of regulation to take over the internet. >> does the federal government already have a tool? they have the authority. with this proceeding, it reestablishes and reassert the authority the sec has had for years and years. you cannot say this is a solution in search of a problem. we have had comcast and extremity comcast, data caps, all of this stuff interfering with the internet. ors threat is not potential problematic. this is during the time when isp passes are supposed to be in their good behavior because the fcc is the arena neutrality. imagine if it does not pass open internet rule. let the good times roll for service providers.

>> the good times are certainly rolling here on bloomberg west. >> this is a great issue. all these people are commenting online. online.s thank you very much. threatens to change the way we pay for all sorts of things. how the big banks will keep up with innovation with tech companies moving to the other market. legendary leaders of silicon valley to sit down with with bloomberg west to tell us what they think of chinese tech shot it's -- tech giants. that is later this hour. ♪

>> i am cory johnson in this is bloomberg west. apple pays the latest of products in silicon valley that

need to change the way weeks change our money. companies like paypal have been -- how do big banks and credit card companies take a seat at the table? emily in california has more. how is it going down there? less are you jealous? i am so warm and cozy. blue skies, we have it all. i have a wonderful guest. >> it is known for sun and warmth except when it is not. >> it is not the warmest today. the chief innovation officer at citigroup and ceo of city ventures that really opened the city ventures office or none of the big tanks are doing what you're doing. at thisied to look opportunity as creating a complete system of innovation, and part of that is starting with our investment activity. compete? you

>> we partner with them inhe opportunity we could bring to their companies as we can help their compete? companies scale. we talk about the way we approach investing, to really in the city and find the right place to insert them and stay with them while we hope to commercialize. >> square is focused on finance and the finance industry. where we caning at accelerate the adoption of these technologies or capabilities. >> a company like square has been under a lot of scrutiny lately. they're going into serious areas. there is a lot of question about how big the market can really be. how do you respond? >> the market is huge. i have huge confidence in zak and sara and the way they think about the opportunity. we see them frequently every

quarter and spend time together. approach to solving big customer problems is inspiring. i have confidence and i think he will see great things there. >> how much more will you see than the delivery guy slaking my card? is tohink the opportunity make this ubiquitous throughout the world. in jack anddence his capability to make that happen. with apple pay, there is a whole other thing going on here. allit is all good and exciting. classless about apple pay. working it been like with apple so far? what is the most surprising and? we have been working with apple since the day we landed on the ground here. it has been a phenomenal. . they are fantastic artist. we really explored a lot of different things. >> what about apple pay specifically? >> apple pay is a very intriguing, typical apple,

thinking about it and to and. the unique opportunity is seeing a way of giving customers more of that unique identifier number instead of their credit card number being recorded will be a very interesting play. it may be the breakthrough to finally take multiple payments to a new level. is innovative within the status quo, so not that innovative, but what we have for the short term, how long is apple pay going to be it , and when will it be something else and something new? i think it is the opportunity to finally see breakthrough. we have so much going on. it is not about the technology. it is about the experience. if we can just make this more, we are solving things for tapping yourrsus phone. there is so much of that market

to break into. have been achieved advocate for women and women's initiatives for citigroup. we were speaking during a break about your diversity numbers, which are actually much better than the technology companies. tell me about the numbers at citigroup. classless have half of our community is women. focused on is having more women represented in our seniormost ranks. >> is far less than 50%? by cs we started program several ago about creating a very different way to help women achieve their potential by giving them advocates who work alongside them, and bring their capability to the forefront so when leaders are looking for the next opportunity for events, their names are front and center. we have seen great success. >> apple and facebook are offering benefits.

ago aboutthey will pay for womo freeze their eggs. a good thing or a bad thing? >> i'm having a hard time. so many young women work from the nec people waiting, and you worry about, having first children at much later ages, but maybe it was because i was so young when i had a child at 20 next, it seemed a lot simpler. i am not sure i am an expert on that. it is a tricky time for young people right now trying to figure that all out. >> you think they should not encourage women to wait so long? by setting women will make up their minds. >> all right. see yellow city ventures, thank you so much for joining us today. good to talk about all the stuff you are working on. cori, back to you. >> they have gunfire could there. get warm. singles day coming up.

it started in china. how many billions of people alibaba brings in? we will get the latest from china next. ♪

>> welcome back. i am cory johnson. alibaba'single day. it is a big number. they said they sold $1 billion in goods in the first 20 minutes.

joining me now, my partner ely chang. emily, it has been a long time since you have been signal. me too. >> i would like to buy some stuff for myself as well, though i am not ago. >> lenny lives in china, was singles dating deal? becoming a big deal. ago, they years started offering deep discounts on things like cars, clothes, french wine, chandeliers, you name it here last year, alibaba sold $5.8 billion worth of goods . the year before, only $3 billion. that is nearly a $3 billion jumped in a single year. biggest shopping

year of the world. black friday and cyber monday in the u.s. last year. u.s. consumers spent about $3 billion combined those days. so much money is being spent in ,hina, by chinese consumers which i am totally a huge fan of. we have our producer on the ground that ali baba headquarters today. she spoke with the cfo. take a listen to what he had to say. >> summit people come to our shopping.r a very clear indication we could give them what they want. shopping. it helps us provide value for the consumers. >> you have your pick. some of the most popular brands this year. gap, nike, you want your pair of

shoes? a new phone? it helps us provide value for the consumers. >> the cards do not have the google navigation system. it is interesting to me to see alibaba and other retail efforts getting on board with this thing in the same way they are taking over christmas as a shopping day and not a religious holiday here. knew you would want more than i have to offer. in case you don't realize it, it the date of11, singles day, which dates back 20 years to 1993 at a university in china are they started braiding bachelors a and make it a little more inclusive.

this has been a longtime tradition. but only in recent years has it .e come a mega shopping holiday kind of like an anti-valentine day. >> demographic trends with a number of single people in china. is one of the reasons it stands out as such an attractive -- such an attractive thing. >> right. you have been seeing the rise. they're spending money on themselves because why shouldn't they? and that is what money is for. thank you very much. more later today. up next, the cofounder of linkedin and paypal. what should the e-commerce giant do next? here next on bloomberg west. ♪ is 26 minutes past the hour, which means boomer tv is a -- on the markets. a look at where stocks are

trading here. a rally today. all three major averages gaining. the dow and the s&p gaining and records. helping to lead the game during this session. more bloomberg west is next. ♪

>> you are watching bloomberg west, where we focus on innovation, and the future of business. the annual technology conference underway with the biggest names in technology gathered in the sun with emily chang. their live with the conference. no son still? with thelive conference. no sun still? chris you keep rubbing it in. a great conversation here on

stage. longtime friends but on two completely different ends of the political and ideological spectrum. peter is a little more extreme. one of the interesting things they have been talking about was a founder mindset and a founders meant how -- mentality. if you want may change in a company, you need someone to -- willing to take risks and make hard choices. only bemes, that can the founder. microsoft want to change, they would bring bill gates back. hoffman said not so fast. a founders that's how doris founders mindset, he can make those hard choices as well. i sat down and asked cynically, what about paypal? this company is about beast and off from ebay , where they do not have the original paypal founders. say.n to what he had to >> be successful at paypal, a leader has to take, i understand these are the things for success

, these things we worked on as far, but we need a new thing thing, a lot of technological and organizational change to get there. be successful without a founder capable of doing that. >> i know john has been talking to you, but it is the same for others. public company. a publics -- ebay is company. as soon as he could kindly call me. about whating to me kind of person he should be looking for, and i said, i've never met him. >> he do not know how much confidence you have in him yet. thatea something else is paypal will be better off as a private company first. it does not meet the scrutiny of

a private company right away. how concerned are you? >> i would own hundred percent rate if you said, you can operate paypal the next five years and make the alterations that doing it at a private companies better than a public company. the challenge is it is difficult to get to the right framework to make that happen. it is not clear the capital set up for it would work. if you could offer as a private company, you're not doing quarterly or -- earnings reports. try to figure out massive investment over the first couple years, a much stronger company in five years. with the public is people say, i want a vision, but it creates a lot of tension in terms of laying in desolate in long-term investments. that would be better for paypal to start out in private, but it may not be feasible. >> how concerned are you paypal will become more vulnerable?

think it will certainly be considered as an acquisition target. whether or not anything will happen will depend a little bit forhat the strategies are the acquiring companies and what the price point of a valuable asset is. are a lot of discharge is for an independent paypal that would then play a network effect across these companies and create a lot of value for the ecosystem. a good university plays out that way. of,s also a question innovating a google, or maybe there are complexities around alibaba, but if you integrated with another company, maybe something interesting would happen as well. if you want my adulation him a i have zero inside information, i would expect alibaba to be more likely to go after the marketplace first year he they first.

information, but if i look at how they're trying to play in terms of the global market, that might be the first step. >> i wonder if twitter is a company where, we all know about that rusher is under. a lot of talk of management reshuffling. a place where founder would be in a better position to lead? >> a founders mindset. part of the reason he is doing that was -- reshuffling is he is willing to take criticism to find the right answer. iu have to be willing to say, need to make changes and i know i will get a lot of business, but i will it or it, as i wait. he is aware of the criticism he would get in advance. has been a founder of company and he is capable of making that kind of decision of, here is the new thing, we will entirely on this effort. so i think i would say i am bullish on his ability to at

least bring the founders mindset . i think he is thinking intelligently. >> you are in a perfect position to know how difficult it is to grow users of a social network. twitter's user growth is slowing down. do they need to evolve the product faster? -that is unquestionable yard yes. s.e.c. a lot of the changes didn't -- changes to his making, this, how do i take those the right way with the organization. those were a lot of the shifts he was making over the last six months. he is saying, this is the horse i'm betting on to make that happen. >> how do you feel about having not made that investment now? twitter has always

been one of the ones i list when you say, which one do you wish you had made when you did not. thinktwitter a company i canon reseller user growth, or is it reaching a -- >> unquestionably, but primary, it is a set of questions around product modifications. to any of their internal -- i do not know what their strategy is. could be great, could be indifferent. i do not know. but i think the rob basis of the asset can be built on in interesting ways. >> reid hoffman thinks twitter can be a lot. you and i have talked about, has twitter reached a plateau and is it as they guess it will get, and he does not think so. he thinks as they make the right choices, twitter can growth and verbally. it is just a matter of getting

the right people in place to make the right choices. i asked what twitter can do, and he said, had not thought about that much. he says they are working on it. >> they're growing, just not fast enough. i think that is the issue. emily chang, thank you. internet hase continued to grow. announcement are taking advantage of that. what is he think about investing in china versus silicon valley? ♪

>> sam has traveled all over the world to get an exclusive look at technologies and innovations to disrupt our lives in 2015. you remember the holiday on star

trek tom at a next-generation? aims to bring virtual reality into the rooms, no headset required. this is the year ahead. >> you are getting inside the mental image. -- the the product project is important because this can change the paradigm of how we deal with this and interact with your body. director -- of thehe top floor school of design lab is where the virtual world is slowly emerging with the real world. which stands for hybrid virtual environment treaty. highs creates a virtual environment by projecting it room.nd -- an entire

the technology right now is primarily being used by design firms and architects. hollywood animators also getting on board, using the technology to storyboard fully developed animated world. drawing in 3-d is a much more radical concept than you might think. let's use the example of trying the draw a cube in a two-dimensional space. when you draw a cube, you use and approach, forcing a perspective and tricking your brain into thinking it is seeing a 3-d object, when in reality, it is flat. this perspective, as we in 2014,earn, we are looking for another way to represent it. qubes feelsthe same less like drawing a shape and more like building an object.

another thing you'll notice, no need for special headsets or glasses. >> headmountedanother thing yo'd head and cut your from the reality. >> that is a hybrid part. it is the real you in a virtual space. you don't have to be virtually represented. not just you, but anyone around the growth -- an event around the globe can connect with this virtual world. on this particular morning, we were connected with his colleague in france. >> collaboration is another part of the system because it it's is a good head -- it is existing oe server. we connect people working on a project separated by oceans. teleporting on a construction site, he could be -- you see the project and you are inside the project.

i need to see, i am over that wall. >> it costs around $50,000, a lot less than competing systems, which will earn you up to $1 million. a lot of the hardware it uses is off the shelf. >> we focus more on the user experience. >> you made him an audi. >> redesign a better experience and that is more relevant. about a bunch of new hardware. it is about a new way of interacting with the world around you, virtual and real. >> where does the technology go in five years? >> can be interactive with the system. >> it is the latest it's prescient of virtual reality. let's be honest, those are

buzzwords we have been hearing a lot about over the last decade or so. creativity where people are actually working a whole new set of rules. the technology is already there. thing that may be lacking is us. that was sam taking us inside live 3-d. the bottom line, coming up at the top of the hour among mark crumpton in new york with a preview of the show. what have you got tonight? >> we will continue bloomberg's conference. ken benson will join me to discuss the regulatory environment and high frequency trading. president obama meets world leaders at the asia pacific summit in beijing. we will get his take on what can be achieved during the talks. and if the president's

leadership position has been weakened on the world stage following last week's midterm results. i will see you in a few minutes. back to you in san francisco. >> sounds interesting. cannot wait to see it. >> up next, -- ♪

>> welcome back. i'm cory johnson. hollywood celebrities walked the red carpet in silicon valley yesterday. cameron diaz handed out awards. the researchers focused on innovation in math maddux, & there it among the celebrities, emily chang was there very she joins us now with more.

>> everyone was really excited about cameron diaz. i will say our production team especially. this was a $3 million prize that goes to scientists and people who discover things in the realm of physics. this is something you and i cannot understand. money donated by people like mark zuckerberg, and a euro million., a billionaire tech investor who invested in these companies like facebook, and twitter. milner is a physicist himself. once a physics student, and then dropped out. he went on to tech investing but always was disappointed he did not pursue the physics thing with as much success as he had. spoke with him last night about the progress he hopes to see and what else he will be discovered. >> i think if we do not really , -- we vote how the

budget will be spent. if, the uimate voters are not aware of the things being done, i think we will disconnect. facebook, amazon, google, big tex companies are becoming more interested in science, robotics, and it are they the right companies to lead the charge? can they lead innovation like einstein? >> not really. i think the companies you are talking about, they are really leading the charge in applied science. this particular day is about fundamental science. it means just out of pure people are really

working day and night and tried to understand how everything works. only then, after many years, sometimes, about maybe hundreds of years, it goes into technology. the very first step is really always riven by curiosity. if there were no maxwell and just pure mathematical formula, we would not have radio waves and we would not be talking right now. appreciate them. if you go backwards far enough, you will always find scientists who can see something very early on. only then, technology. this is about celebrating with people who are basically the cutting edge of fundamental science and their thinking about things not because they're seagoing -- seeking applications

or a personal reward or justnition, but they are curious human beings. >> i know you're living in silicon valley full-time now. you are traveling a lot. ea of investment when it comes to technology? where you have invested in things like alibaba? valley, theilicon most innovation is coming out of silicon valley. i think china is catching up weekly. innovative lot of companies, including the ones you mentioned, charging ahead and paving the way for others to come out and innovate. >> raising more money. you are an existing investor. why do you want to be part of the next step? a 40 or $50 billion company? >> we never confirmed we are

participating in this round. it is an amazing company nevertheless. is doing things very differently. compared to other hardware companies. the whole subject of the conversation me other time. >> one more question. not silicon valley or china, where is the next so can valley? you're looking at russia. you are looking at europe with companies like rocket. where the next hotbed? >> the problem is it is very hard to reinvigorate the whole structure, a combination of -- mentors. and investors. venture capitalists. and university. takes thousands of years to build.

but also, it is part of a network effect in a way. it is extremely difficult to have just created this from scratch. takes dozens of years to put all the various pieces together. so i do not know where the next silicon valley is. >> will there be another? >> it is possible but difficult. >> there may never be another silicon valley according to that tech investor there. cory, i will steal your thunder for a second. i'm here with david fitzpatrick, founder of the tech economy package, and he has the bwest bite. came this year for three days. we are excited about it. jeff later this afternoon. we are so excited. >> thank you for having us there next time, we will have to have the sun come out.

>> emily chang, thank you very much. enjoy the sun down there. ♪ . .

>> from bloomberg world headquarters in new york, this is bloomberg "bottom line." the intersection of is this an economics with a main street respective. to our viewers in the united states and those of you joining us from around the world, welcome. we have full coverage of the stocks and stories making headlines today. julie hyman is watching cable stocks after president obama's comment on that neutrality. and shelby holliday