live from pier three in san francisco, welcome to "bloomberg west." i'm emily chang. as soon aswill vote tuesday on a bill to approve the keystone xl pipeline and bypass the opposition by president obama. here is wisconsin republican ron johnson. pass in thet will senate. whether president obama signs it or not -- i guess the onus will be on him. then the republicans will not be seen as the party of no. >> democrat mary landrieu pushed

for the keystone ahead of her election runoff next month. worn buffet's berkshire hathaway is buying duracell from proctor and gamble. berkshire has agreed to turn over $4.7 billion in stock in exchange for their battery business. the deal allows buffet to wind down his position in png, which he has been cutting for years. it also fits with their strategy of narrowing their focus. just made ar has significant gift to harvard university. not disclosed but will allow harvard to hire 12 new professors in computer science. themanagement dream for -- theswift is taking saysf the record label

that they received less than $500,000 in the last year from spotify. he says swift made more from streaming sites. amazon web services conference is going on in las vegas right now but there is even bigger news from amazon today. amazon and hachette have finally ended their dan. over e-book and physical book raises. exact terms were not disclosed but they did say that they would .llow hachette to set prices amazon also promised to restore hachette titles. it had been delaying certain titles. malcolm gladwell said that some of the titles are still out of talk -- stock. joining us from las vegas is cory johnson. pe, the founder and ceo

of the ideological company. we do not know the details of the deal, but both sides say they are pleased. what is your take? everybody is glad it is over. the other side of relieved that is being breathed is being done by simon & schuster, who did not deal with amazon. simon and schuster made an agency deal where they control the prices. the nightmare for them would've been that nobody else did and that amazon was cutting their prices and there's would remain high. that & schuster is pleased amazon seems to be moving toward similar deals with all the publishers, where the publishers will be setting the prices. indication for the breakthrough? servicesazon web

business is really separate from the book publishing business, although the publishing and sales of everything run on the same service. this conference is focused on the technologies that make the internet and all technology work, really about those developments. as it relates to this development, both of these companies need each other. there was a suggestion that amazon sales in the last quarter were actually hurt by not being able to sell hachette books. books are still central to amazon. hachette needs the largest retailer in the world if they are going to sell books, so they both needed it to work out, but in terms that would benefit them for the long-term, not just get through the quarter or year. authors say they were hurt, some say they lost 90% of their earnings. i spoke with malcolm gladwell before the deal was done. all five of his books sold on amazon. listen to what he had to say about what he has lost.

>> it cost me a lot of money, that's for sure. little.s my heart a i had thought of amazon as in partnership with writers. for a company to try to make a business point by turning its you know, i have sold through amazon, millions of books. i have contributed mightily to their bottom line. i would have thought they would have seen me as an asset. me and other people have brought people to their site in droves. now they have turned on us. is, to say the least, a puzzling strategy for a business to turn on its assets. i would love to have a conversation with jeff bezos about this self-destructive

nature of this particular strategy. gladwell reach out for to, today, so it is unclear how much you think this is a win. overnight, the price of one of his books dropped about seven dollars, although temporarily out of stock. say thathis titles they could take up to three weeks. mike, for the authors that lost so much money along the way, how much of a win is this? a from the sound of it, it is win for the authors that are published by major houses. actually, it is also a win for the independent authors because the major houseboats will be priced with a real differential between them and the indie books. assumingverybody wins, the deal is, as we understand it to be, one where the publishers

will be able to maintain the purse the originals which they have been trying to do, which was the source of the argument in the first place. >> sales had been lost in the course of this dispute which have been going on for months. though sales are not going to be made up. eightas lost in the last months, unfortunately, is lost. is your take on how this plays out, going forward? they did a deal with hachette, simon & schuster. is the question over how books should be priced, how flexible they should be when it comes to models, is that debate over? >> it is really about control. what does this mean for proctor and gamble, for example, and their ability to sell on amazon, and the other that supply the goods or services sold on amazon, and their ability to

control price. it is a fundamental change for amazon, where they have been about cutting prices for their customers, suppliers be dammed. this is a big change for them. it may suggest other changes in the future from other suppliers of the things that are sold on amazon. at the amazonn web services conference in las vegas, we will be back to you. , ceo you as well to mike of the ideological company. you can catch more of my interview with malcolm gladwell. don't miss the full edition of "studio 1.0" tonight only on bloomberg television. up next, the pilot that survived that virgin galactic crash is telling his amazing story. find out how he lived after the spacecraft broke up midair. ♪

>> welcome back to "bloomberg west." i'm emily chang. virginrvivor of the galactic crash is recovering and is sharing his story of survival he says his parachute opened by itself after he was thrown into the air nine miles above earth. joining me from washington is our bloomberg news reporter. how did he survive when this spacecraft disintegrated midair? >> it's an amazing story. we still only have sketchy details but his story is starting to emerge. the spacecraft disintegrated around him. he was not wearing a pressure suit, which astronauts and fighter pilots normally wear at these altitudes, which are 50,000 feet or there about, where the air is 70 degrees essentially no

oxygen, not enough to sustain life. so he is thrust into this environment. your body remains conscious for perhaps 12 seconds after being thrust into that in air. somehow he managed to unbuckle his seatbelt. he was still attached to his seat. that was critical because the parachute does not work unless you are clear of your seat. then the parachute uploaded automatically as he got to lower altitudes. >> it's absolutely incredible, especially when you think about this spacecraft having no escape hatch. it had exit doors, but it was -- to keep withstand the atmosphere constant, built with carbon fiber, so it is a

very resilient structure, but as survive the not early deployment of its braking system. >> what are we learning in terms of his conversations with ntsb investigators, what are we learning about the cause of the crash and why this happened? in all these investigations, it is still very early. what we do know is that this aircraft has a very unique system for reentry that causes it to behave almost like a leaf or feather. it does so by moving this giant the aircraftear of almost in an upward position. that came up as they were rocketing into space, when it is not supposed to be deployed. that is what broke the ship apart. why that happened, there is a lot to be done to determine the

underlying causes. >> my next question is, when is the next launch? this particular engine, richard branch and -- branson and virgin galactic catalog of hopes on it to do they stick to plans, or what is next? building another spacecraft to replace the one that broke apart. there are no hard dates or testing but they say they plan to continue the program. but i think a lot will depend on what the investigation finds. if, for example, there needs to -- there is just a lot we do not know at this point. for sharing that amazing story with us today. tech giants from apple to google have reported disappointing

diversity numbers about their workforce. so how do numbers of women and minorities affect the workers themselves? ♪

>> welcome back to "bloomberg west." i'm emily chang. companies from apple to microsoft are trying to be more transparent about their struggle to get women and minorities into their workforces. the biggest name recorded diversity numbers this year revealing that men make up 70% of the workforce at apple, google, facebook, and twitter, and when you look at the technical workforces for these companies, blacks and hispanics make up a combined 6%. so how do the numbers shape they workers experience in silicon valley? sarah did an in-depth piece on this talking to many employees experiences and the issue. heard positiveou stories, you heard horror stories. what stood out to you? >> the thing that stood out the

most is it is not about the big instances of racism or sexism. no one will say i'm not going to hire you because you are a woman. it is the everyday things that like being mistaken for somebody's girlfriend at an industry party when you are a developer, being excluded from a conversation that the guys are having during their fantasy football discussions when you're not in that. it is more the unconscious bias that causes some of the rating, over time, causing people to feel uncomfortable. >> we also have with us an air bnb manager. what has been your experience, have you felt excluded, included? >> i have been fortunate to work at companies that are actually very inclusive. i have been very positive

experiences, but i think i'm sensitive to the fact that there are women that have had negative experiences. it's important to talk about it, but it's also important to celebrate the positive stories. >> multiple sources in your , sarah, talk about being dissuaded from speaking up. people who were not anonymous. >> from other women, black people, latinos, they were told not to speak about diversity. if you do, it will ruin your career. you do not want to become one of the activists. as you have gotten to this place, hasn't always been so positive, has it been difficult, challenging? havethink different women had different experiences. it's important for women to speak up on these things because then it makes it easier for women like me. in my experience, i think i have been able to speak up about things. b, we have a series

about getting women together and building a community, having women talk about their experiences and how they have been successful. again, i have been trying to make it so that things are even better for women who have been feeling this way. companies arethe aware of this. they would not be publishing their diversity numbers if they were not. facebook really improving their policies for women, maternity leave, but at the same time, you have a policy that allows women to freeze their eggs, which some say is controversial, a step in the wrong direction according to some. what is your assessment of how well the companies are handling the problem? >> every silicon valley executive will tell you this is a priority. the question is what it feels like on the ground for the individual dealing with other individuals on a day-to-day basis, people who may be make

the side comments or the jokes that rubbed them the wrong way and add to their experience. changing the issue is more than the an issue of releasing numbers and saying you will donate to girls who code. it is about changing the organizational culture, which will take more time. >> what do you think about airbnb's own approach to diversity? >> we have a long way to go, we are trying to do our best, we have an open organization, we have been trying to meet up for lunch, making sure that the people have concerns they are heard. we are also trying to partner with different organizations. i had the pleasure of attending this program run by the state department where these women from the middle east and africa came to visit. so much ithere was

can learn from them. two things that stood out, one of them said that in rwanda, the parliament is 63% women. the women from the middle east said that they do not have a problem with diversity. it is actually 50-50 there. there is so much for us to learn. we enjoyed these collaborations. >> how much do you think it is a pipeline problem, not an of women engineers available, and how much of a problem is it for bias? >> we need to affect each stage of the pipeline. it is important to get girls excited about it from a young age. and then through middle school, taking computer science classes, high school, and then in college, making sure that people are at equal footing when they start. there have been some studies done where they created an introduction to computer science class, and that helped to increase numbers. i think it is important to

tackle each stage. definitely in industry, we want to make sure that women stay in tech and do not leave. it is a pipeline and retention problem. we cannot single out any one place. >> thank you so much for joining us and sharing your personal views. sometimes not the easiest and to do. saraht piece from' today. sony announces a new web tv service for the playstation console. theill talk about that with ceo of sony computer entertainment america. ♪ thet is 26 minutes past hour which means bloomberg tv is on the markets. there is not a lot of movement. the s&p is down a third of 1%. the dowthe indexes have been upd down all day. jcpenney.highlight

shares are falling by the most in a month after that company reported a surprise drop in third-quarter sales. they blame the unseasonably warm fall weather for the drop. a quick break and we are back with more "bloomberg west." ♪

watching "bloomberg west," where we focus on future, innovation, and the technology of business. today, sony announced a web-based tv service. the move comes just days before the one-year anniversary of the launch a playstation 4. castng me now in a broad exclusive to update us on everything playstation, the ceo .f sony computer entertainment welcome. great to have you here. you are introducing the tb service today. how does it work? >> it was a surprise announcement.

we will be going into a beta service later this year in key markets like new york, chicago, mla. -- and l.a. it is bringing all the tv you want into the playstation and your home. >> what kind of tv? >> we have content assigned and contact -- content provided deals. probably about seven channels will be available in the data service in the key markets at the end of the year. but we are looking to bring every channel you would expect. >> how difficult is it to strike these kinds of deals? >> it takes a long time. we are doing something completely new. you look at music and gaming, innovation occurs all the time. now. trying to do it it is a new deal and it will take us a while. >> how much will this cost me? >> we will find a way to bring that price you with as much

transparency as possible. we want to pay for what you watch and let you know exactly what it is. there is no contract. it will just be a monthly subscription. no price yet. >> you are also launching exclusive content. tell me about that. >> right. an exciting series based on the famous graphic novel on the series, shooting now. we hope to bring to the market in 2015. all the way across the playstation network to our user base there. >> you shared with us exclusive video of behind the scenes shows . >> we have the same production company behind it that makes the walking dead. >> i love that show. >> we were able to partner with high-pressure -- high production teams. >> any other shows we should watch out for? >> this is our first foray. you are excited. it hits the heart of the user base.

>> the original content game is not easy. netflix and amazon is there and it is expensive. >> it does cost money. but i think being together our huge base of playstation users with the kind of videos, they do not play games 20 47. they watch tv. >> you have been the ceo of this division of sony for less than a year but you have been at sony for a long time. now that you're in this position, how are you putting your own stamp on the company? is i have been at the company for a very long time, since the clinton administration. japan ande working in europe, working with the network division we established years ago, and now allowing me to take that experience into playstation america, i think i have come a long road to the place i need to be. >> you said you sold more than 13.5 million playstation 4's. what will it be by the end of the calendar year?

>> a larger number. [laughter] larger?uch >> sales are going great. we have been the top-selling nexgen console for the entire 2014 period. going into christmas, we have key titles coming out. granted out of five. there is a huge amount of activity friday into christmas. we are the top-selling next-generation console worldwide and we are trying to maintain that. >> microsoft says xbox one initially sold 10 million units. how do you feel about the lead, the price? the holidays are coming up. >> i think the content is what sells it. in the end, people want game consoles because they want epic on 10. that is what playstation gives them. >> what kind of activity do you expect for the holidays question mark >> respect everyone who has not made the jump from

playstation three into playstation 4 to come across. again, it is because games like little big planet, probably the first true family-friendly game bring out, we will consumers in. >> any special holiday titles? >> the big one, we will bring family friendly games. >> in general, what is your assessment of the house of the console business overall? you about theare rise of mobile and social gaming? that brings people into the concept of gaming is a huge advantage. playstation itself will be selling its 20th anniversary on december 3. anyone at the age of cognizance or 15 or above has had a game console in their life. that is exactly where the market is leading. it has been becoming mainstream and it is only getting faster. >> how do you want to put your

own stamp on the playstation business? >> it is to really open up that. in playstation 4'first-year introduction to the market, we have captured the vest of the market. -- the vast part of the market. a way to broaden that opening to bring everyone into the entertainment experience. >> this is a market that seems to be rife with corruption. what is going on with cable company, the net neutrality, how do you see the business evolving? you have apple trying to get into this business, we think. so far, not successful. it is a tough place to break into. when we started the venture over a year ago, we expected a faster route to market. a always partnerships in year? >> more than that. >> how long?

>> i do not have a number, but it has been a longtime. trying to bring something to the market, to bring stakeholders in and tell them, this is a new way to get to new customers. i think the position will do that. >> all right. a lot to talk about in nine months on the job, eight months on the job. >> there is a lot going on. thank you so much. >> forget robots that can take your job. how about robot that can wear your close? the latest innovation in software body is next. ♪ -- soft robotics is next. ♪

♪ i'm emily chang. this is "bloombert west." with 2014 winding down, sam travels all over the world to give our audience an exclusive look at technology and

innovation set to shape and disrupt their lives in 2016. today, we met with scientist rebecca kramer, creating soft robots that can integrate directly into your clothing. this is the year ahead. ♪ hear the word "robot," a typical image comes to mind. robots today all share something. they are rigid and often made of metal and plastic, which makes it difficult to perform relative tasks. that has been changing things to a new field called "soft robotics." >> a soft robot would be exactly what it sounds like. robots made of all soft .aterials in many applications, it makes perfect sense. >> this is rebecca kramer.

she runs a lab at duke university where she and a small team -- a small team are looking to make different robots, when you can wear. >> our bodies are soft. we want to wear robots or technology. to trys more sense to me to integrate the technologies into what we already wear, our and fabrics. >> the wearable robot is not a new concept. researchers have been working with exoskeletons for some time. their take -- typically made of clunky hard frames and battery packs. rebecca matches wearing a robot you would not even notice is there. >> long-term, we think about what might exist in the far future, i think of completely integrated exoskeletons that will assist with our emotions and do so seamlessly so we do not even know we are wearing the technology. >> in the simplest definition of the world, sensors, which can

monitor things like motion, temperature, and light, and actuators, the muscle that creates movement. >> in our case, our sensors are much further along than actuators. >> it turns out making those mechanical muscles out of soft parts is incredibly difficult. solving the problem comes down to one thing -- material. >> in soft robotics, materials cannot be ignored. it is a central component to how the robot functions. thending on the material, robot will behave completely differently and stretch completed a family. >> a number of material options are being explored that may help create movement, things like pressurized gases or a combination of chemical compounds called hydro-jets. one of the more successful demonstrations is made from a metal that can be demonstrated -- >> robotics fabrics rainout, because you can get them as

liar. we call them threadlike actuators, because we use a sewing machine to incorporate them into fabric. >> what you're seeing here is the shape memory alloy sewn into a clock. when you apply it into wires, it causes them to curl up. while still rudimentary, robotics are getting big attention. rebecca's research has received funding from nasa for its potential in exploration. like yogaetic wear pants that the correct her phone, or clothing that could help patients regain movement after an injury. even if you could take away a small percentage of the energy that goes into every step then over long distances, it has endurance. to think wexciting might be able to change someone's life someday. >> what rebecca is doing is not

bringing a new product and market, but expanding. fabrics has the potential to completely change the way we interact. not be long before even the word robot has a very different meaning. >> be sure to tune into the year ahead special tuesday, november 18, 9:00 a.m. eastern and specific -- and pacific. we will look at 10 innovations that will change everything we know about tech, food, and medicine. "bottom line" anchor mark crumpton joins us now with a preview of what comes up at the top of the hour. >> a battle against islamic militants in iraq was the topic on capitol hill in washington today. chairman general martin dempsey. what are the ramifications and will congress and the american people go along?

former defense secretary bill me.n will join i will see you in a few minutes. it looks ominous behind you. what is going on with the weather? over. indian summer seems foggy and rainy here. thank you so much. we will see you soon. still ahead, the newest tool for biologists. up asbotic rover, dressed a baby penguin. we will show you what they are used for next. ♪

>> welcome back. i'm emily chang. scientists who study wild animals want to get as close as possible to their sus -- to their subjects without stressing them out or disrupting their natural behaviors. a possible solution --

remote-controlled rovers. in a new study, scientists sent a remote-controlled rover disguised as a baby penguin. joining us ahead of the study, a .r. of that university thank you so much for joining us. first of all, i did not realize penguins were so shy. talk to us about the challenge you are facing and why penguins are so afraid of humans. fact, to huddle together, theyve energy in the cold, need not to have defense. because they do not have .efense, they are very shy you build this robot

and get these penguins to not sniff out as being a fake? >> in fact, we worked with a company which was making a movie and we had a common interest. they were interested in using a , but to get significant formation. we built aether, fake cheek -- a fake rover. how successful was it and what kind of data were you able to collect you would not have otherwise gotten? >> the first one we built did not work because it was not a good design. the ones you see everywhere now, it seems, which has so much

attractive,s very apparently, for the penguins, since they even tried vocalization to communicate with it. >> how revolutionary could this kind of robot he and other situations, in other animal observations? important.ry teresa penguins the -- to reach penguins, the [indiscernible] does not reach rovers. as a penguinct approaching.

we paved the way for a new approach. >> how do you plan to adapt this robot you build even further? what can you do better? >> what we do want to do is understand the functioning. know between the inside and the outside of the huddle, we do not know how frequent it is. penguins to read , willelectronic tags answer this equation. university, at the fascinating study and an incredible video there. thank you so much for joining us. for the bwest byte, where we focus on one number that tells a whole lot. cory johnson is back with us

from the amazon web service conference in las vegas. cory, where are you? are you playing craft? >> las vegas, where the amazon web service here at the hotel in las vegas. ♪ people, will you height down? it is 60%. that is the pace of growth for the web service according to our analyst. there are 10,000 programmers and i.t. professionals in las vegas, learning about amazon. scope of this business, it is impossible to fathom. they added 200 features this year alone. a lot of them were announced here today. it is changing the face of i.t.. to dominateming what the internet is with all these new features added, the deed percent growth amazon probably has.

to trackn it is hard is because they keep cutting prices. they cut prices 44 times as 2008. the rest of amazon associate and so too are the services. >> here is the question. what does amazon have to do with a gondola? question much, really, but i figured, when in rome, or venice, you know. >> that means you are off to the craps tables at this. -- after this. i knew it. >> i have got to pay somehow. you can take care of the shopping. i know that. >> ok. cory johnson, our editor at large having fun in las vegas, as we would expect him to, at the amazon web conference. do not miss a full episode of studio 1.0 with malcolm gladwell coming up tonight at 8:30 p.m. and pacific.

♪

bloomberg world headquarters in new york, i am mark crumpton. this is "bottom line." the intersection of business economics with a mainstream perspective. to our viewers here in the united states and those of you joining us around the world, welcome. we have full coverage of the stocks and the stories making headlines on this thursday. humbert's chief washington correspondent peter cook is on capitol hill with details on the senate leadership elections. shelby holliday looks at toymaker hasbro's bid to buy dreamworks.